Yasushi Kimura

Earlier this year in Japan, Nissan received a recommendation from the Fair Trade Commission regarding Japan’s Subcontract Act. The board of directors takes this very seriously and has confirmed that top management are committed to resolution, identifying the cause, preventing any recurrences and communicating with transparency. Nissan has swiftly issued refunds to the relevant business partners and discontinued rebates.

Furthermore, Nissan has established a dedicated hotline for its business partners as well as a new specialized department, enabling the company to proactively gather partners’ concerns and requests. The board will supervise whether these measures are implemented and managed effectively.

It is crucial that all companies in the supply chain exist in mutual prosperity, practicing appropriate business transactions and responsible sourcing. This is a prerequisite for us to drive innovation and grow as a sustainable company while solving societal issues through the development and distribution of valuable and safe products along with services.

Acting with high ethical standards, the board vows to fulfill its responsibility by thoroughly reviewing not only the effectiveness of Nissan’s governance structure but also the implementation of a compliance mindset as part of our corporate culture transformation, and maintaining it beyond what is needed just to prevent recurrences.

Since the Nissan NEXT business transformation plan was launched in fiscal 2020, Nissan has been strengthening its corporate governance, which it considers a top priority. Nissan NEXT ended in fiscal 2023, when a new medium-term plan was formulated and much discussed by the board.

As the management team put together the new plan, the board asked for the plan’s position to be clear in a medium- to long-term time frame, in terms of prioritization and focus. The team were also asked to consider what value would be provided, based on achievements under Nissan NEXT. In planting the seeds for future growth, it was important to have the management team consider what was needed, and, in light of the equal capital relationship with Renault, to demonstrate how the Alliance will be used for a “new Nissan.”

Announced at the end of fiscal 2023, the new business plan, The Arc, is truly a bridge connecting Nissan NEXT and Nissan Ambition 2030, the long-term vision. Determined to remain a global player, we will make every effort to boost sales between fiscal 2024 and fiscal 2026, supported by our product portfolio and financial discipline. Beyond fiscal 2026, the plan comprises initiatives based on partner strategies and new businesses. In preparation for the transition to EVs in the future, the ambitious yet fully executable business plan builds on Nissan’s tireless work in electrification. The board will continue to oversee efforts on the executive side from various angles, to achieve and support The Arc.

The members of Nissan’s board represent a range of specialties, genders, and nationalities. 8 of the 12 members are independent outside directors, and with myself as an independent outside director chairing the board we ensure that oversight has maximum transparency. In addition, a substantial amount of authority has been delegated to executives to make management decisions quickly and flexibly. Nissan thus has one of Japan’s most advanced systems of governance.

The Board’s supervisory function includes monitoring the execution of day-to-day business, discussing Nissan’s direction in terms of important issues, and ensuring that all discussions are transparent and fair. As chairperson, I ask management to provide concise explanations and to report information promptly, especially when it is of an adverse nature. In this way, management helps invigorate deliberations, which leads to productive, constructive board discussions. We encourage independent outside directors to proactively offer management advice and opinions, based on their respective areas of expertise. By so doing, the directors help enhance Nissan’s corporate value by representing the interests of all shareholders.

This enables management and the board to continue discussing Nissan’s sustainable growth in a mutually respectful manner, as well as to fulfill responsibilities to all stakeholders.

Nissan places sustainability at the core of its corporate foundation and culture, as it works to create a cleaner, safer, and more inclusive world. The board has been involved in formulating management policies to enhance corporate value over the medium to long term. This has been done to meet sustainability-related needs of the environment, society and Nissan’s customers. The board has identified critical issues requiring priority attention, and has asked management to think about whether Nissan can grow into a truly sustainable company. The Arc is designed to enable the company to achieve carbon neutrality by 2050, as set out in its long-term vision, Nissan Ambition 2030. As the plan’s building blocks, we have launched two programs: Nissan Green Program 2030 and Nissan Social Program 2030. Together, they are expected to help solve issues ensuing from environmental and societal changes. Nissan is ready to accelerate its efforts to prioritize sustainability in all aspects of its business, including in the provision of products, technologies, and services, as well as throughout the entire life cycle of its products. Our request is for management to continue proactively communicating about its initiatives and efforts, so that society and our stakeholders are both aware of and understand them. At the same time, the board will closely monitor the progress of Nissan toward its goals, and contribute to a more sustainable future.

Published in September 2024 (Excerpt from the Integrated Report 2024)