Policies and Philosophy for Corporate Activity Initiatives
Reducing CO2 Emissions from Corporate Activities
Nissan is taking steps to reduce its greenhouse gas emissions from corporate activities by promoting energy efficiency measures and also the use of renewable energy. Based on calculations incorporating the findings of the Fourth Assessment Report from the Intergovernmental Panel on Climate Change (IPCC), Nissan established the goal of reducing its overall corporate CO2 emissions by 80% compared with 2005 levels by 2050. As part of the Nissan Green Program 2022 (NGP2022), we set the midterm goal of a 30% reduction in overall corporate CO2 emissions by 2022. Manufacturing is our largest emissions source, but we are also aiming to reduce greenhouse gas emissions from logistics, offices and dealerships, setting targets and taking action in each area.
Long-Term Vision and Road Map
Long-Term Vision of Reducing CO2 Emissions from Corporate Activities
NGP2022 Long-Term Vision
As a long-term vision for climate change, we aim to realize an 80% reduction in CO2 emissions from corporate activities by 2050 (vs. 2005).
Management of Corporate Activity Initiatives
The Nissan Green Program 2022 (NGP2022) includes the following objectives for each link in the value chain as we progress toward our long-term goals in 2050:
A 30% reduction in CO2 emissions from global corporate activities by 2022 (vs. 2005/per vehicle sold)
A 36% reduction in CO2 emissions from global manufacturing sites by 2022 (vs. 2005/per vehicle manufactured)
A 12% reduction in CO2 emissions from logistics in Japan, North America, Europe and China by 2022 (vs. 2005/per vehicle manufactured)
A 12% reduction in CO2 emissions from global offices by 2022 (vs. 2010/per floor area)
A 12% reduction in CO2 emissions from dealerships in Japan by 2022 (vs. 2010/per floor area)
Corporate Activity Initiatives: Achievements
30% Reduction in Emissions from Corporate Activities
In fiscal 2011, Nissan broadened the scope of its CO2 reduction objectives to include logistics, offices and sales companies, as well as production sites. We expanded our emission-related initiatives, introducing high-efficiency equipment, energy-saving measures and the use of renewable energy, and also strengthened our management of these initiatives. Our objective is to reduce CO2 emissions associated with corporate activities by 30% globally by fiscal 2022 compared to fiscal 2005 levels, as measured by the index of CO2 emissions per vehicle (total emissions generated from Nissan global corporate activities divided by total Nissan vehicles sales volume). In fiscal 2018, we achieved a 31.4% reduction from the fiscal 2005 t-CO2/vehicle level.
Saving Energy in Global Production
Most CO2 emissions in the manufacturing process come from the consumption of energy generated by fossil fuels. We engage in a variety of energy-saving activities in the manufacturing process in pursuit of the lowest energy consumption and CO2 emissions of any automaker. In the realm of production technology, we are introducing highly efficient equipment, improving manufacturing techniques and using energy-saving lighting in our assembly plants. Another key approach is our three-wet paint process. Vehicle painting is responsible for approximately 30% of all CO2 emissions from plants; and shortening or eliminating baking stages substantially reduces emissions. The three-wet paint process adopted by Nissan removes the need to bake between the primer and the topcoat layers. Instead, layers are applied successively before baking, reducing CO2 emissions by more than 30%, according to our calculations. Starting in 2013, we introduced this process at Nissan Motor Kyushu (NMK), the Smyrna Plant in the United States, the second Aguascalientes Plant in Mexico (operational since November 2013), the Resende Plant in Brazil (operational since February 2014) and the COMPAS (Cooperation Manufacturing Plant Aguascalientes) manufacturing complex, a joint venture with Daimler México that started operations in December 2017, as well as the Sunderland Plant in the United Kingdom (operational since September 2018). At NMK, we were able to adopt the three-wet process with no shutdown of production lines, and as a result successfully shortened total production time. We also adopted dry paint booths at our Sunderland Plant in the United Kingdom. Previously, systems for recycling air expelled from booths for reuse needed dehumidifying processing to ensure that the air was at the humidity required. Dry paint booths can reuse air without dehumidifying it, reducing energy consumption to less than half its previous levels.
Three-Wet Paint Process (Combined Primer and Topcoat Application)
Reduces CO2 emissions by applying primer and topcoat (base coat and clear coat) layers in succession, combining two processes: (1 and 2 in the upper diagram) into one (1 in the lower diagram).
To reach our defined objectives for CO2 emissions and energy use, we solicit facility proposals from each global site, preferentially allocating investment based on the potential CO2 reduction compared to project costs. Making the value of carbon a key factor in internal evaluations lets us invest more efficiently and be more competitive. In Japan, we converted outdated facilities into cutting-edge high-efficiency facilities with investments to improve energy efficiency, including energy-saving roof insulation upgrades. Our plants use finely controlled lighting and air conditioning for low-energy-use and low-energy-loss operations. We promote CO2 emission reduction activities and introduced cutting-edge energy-conservation technology from Japan in our plants worldwide. Around the globe, our plants learn and share best practices with each other, while Nissan Energy Saving Collaboration (NESCO) diagnoses energy loss at plants in regions where it is active and proposes new energy-saving countermeasures. These proposals amount to a potential reduction in CO2 emissions of some 53,000 tons in fiscal 2018, according to our calculations. A NESCO team was established for Japan in 2003, and activities have gradually been initiated in other countries starting in 2013. A NESCO team has also been launched to support energy-saving efforts at Alliance partner Renault. When sourcing energy, we consider the balance of CO2 emissions for the entire company alongside renewable energy usage rate and cost, choosing suppliers best suited for achieving each goal. Through such activities, CO2 emissions per vehicle produced in fiscal 2018 were brought down to approximately 0.50 tons, a reduction of 33.7% from the fiscal 2005 level.
Electricity (in-house generation)
Total renewable energy
Volume of renewable energy in electricity purchased by Nissan.
Volume of renewable energy generated by Nissan at its facilities and consumed for its own purposes.
Global Energy Consumption
The total energy consumption of our global corporate activities during fiscal 2018 was about 9.253 million MWh, a 3% decrease from fiscal 2017. This reduction was primarily due to the promotion of energy-saving activities at facilities and a decline in total production volume. Production sites globally accounted for 8.161 million MWh* of total energy consumption.
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.
Carbon Footprint of Corporate Activities
In fiscal 2018, the total of Scope 1 and 2 emissions was 3.229 million tons. Total CO2 emissions from manufacturing processes were 2.610 million tons (Scope 1 emissions: 0.759 million tons; Scope 2 emissions: 1.850 million tons).*
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.
Carbon Footprint of Manufacturing Activities
Manufacturing CO2 per Vehicle Produced
In fiscal 2018, our manufacturing CO2 emissions per vehicle produced were 0.49 tons, 33.7% less than fiscal 2005, representing steady progress toward our fiscal 2022 goal.
Promoting Renewable Energy
Nissan takes three approaches toward promoting the adoption and integration of renewable energy in line with the characteristics of each region: (1) generating our own power in company facilities; (2) sourcing energy with a higher proportion of renewables; and (3) leasing land, facilities and other assets to power companies. As an example of the first approach, our Sunderland Plant in the United Kingdom introduced 10 wind turbines supplying up to 6.6 MW of power. The plant also has a 4.75-MW solar farm, installed in 2016, and together these renewable sources account for about 8% of the power it uses. At our Iwaki Plant, the guest hall for plant visitors is powered by solar energy. By storing surplus electricity in secondhand Nissan LEAF batteries, the plant both stabilizes the energy supply and uses resources more effectively. At the Huadu Plant of Dongfeng Nissan Passenger Vehicle (DFL-PV) in China, solar panels with a total capacity of 30 MW have been in operation since 2017, providing roughly 8% of the electricity used at the plant. In India, plans are underway to build a 2 MW solar generation facility, scheduled to start operation in September 2019 at the Renault Nissan Automotive India (RNAIPL). These projects are part of our efforts to expand the use of renewable energy globally. Regarding the second approach, our first Aguascalientes Plant in Mexico actively uses energy generated from biomass gas and wind power and has achieved a renewable energy usage rate of 50% since 2013. Finally, we leased approximately 350,000 square meters of unused land in Oita Prefecture for solar power generation in May 2013, and the roof of group company Nissan Kohki’s Samukawa Plant was leased for the same purpose in January 2014. Through these efforts, we have enhanced the renewable energy usage rate at our production plants as part of reducing CO2 emissions. In fiscal 2018, our renewable energy usage rate reached 10%.
More Efficient Logistics and Modal Shifts
In 2000, Nissan began sending chartered trucks for pickup and delivery of parts. This approach—adopted widely across the company, including at overseas manufacturing sites—has increased global operational efficiency. We work together with suppliers to optimize the frequency of deliveries and transport routes and improve packaging specifications for better loading ratios so fewer trucks are required. We are also pursuing a modal shift from trucks to rail for transport. Through a 2014 expansion of this approach to include cooperative transport of production parts with other original equipment manufacturers (OEMs), in addition to complete vehicles and service parts, we are seeking further efficiency in this area. We work from the design stage of new vehicles to reduce transportation distances by sourcing necessary production components for plants through localization as much as possible. Our engineers devise efficient packaging for the huge number of parts of different shapes and materials that go into automobiles. Through simultaneous-engineering logistics, we work from the design stage to create parts and develop new vehicles that enhance transportation efficiency, as well as reduce parts shipments per vehicle. In container transport, we have taken a range of measures to improve container filling rates for parts transport, from 40-foot “high cube” containers to software simulations that reduce wasted container space. We constantly review transport methods and are currently undertaking a modal shift to rail and maritime transport. Some 80% of completed vehicles in Japan are now transported by sea. Parts shipments to NMK from the Kanto area in and around Tokyo are nearly all conducted by rail and ship. The Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has recognized Nissan as an outstanding enterprise for this modal shift to sea transport. At Nissan sites outside Japan, transport methods are selected to best match the local geographical conditions. Transport of completed vehicles is increasingly shifting from truck to rail or ship, depending on the destination. In China, we are increasing the proportion of completed vehicles that are transported domestically by ship or rail. Since 2010, we have also been promoting the use of energy-efficient vessels for sea shipments of our vehicles. Today, our fleet has grown to include seven energy-efficient car carriers.*1 As we expand our global logistics operations, we will continue to increase efficiency and effect a modal shift in transportation, targeting a 12% reduction in CO2 emissions by fiscal 2022 compared to fiscal 2005 levels, as measured by the index of CO2 emissions per vehicle.*2 In fiscal 2018, CO2 emissions per global vehicle were approximately 0.37 tons—a reduction of about 14.3%.
More information can be accessed on Nissan’s energy-efficient car carriers’ page.
Total emissions generated from transportation to Nissan manufacturing sites and retail outlets in Japan, North America, Europe and China divided by the total number of vehicles transported.
CO2 Emissions from Logistics
“Inbound” includes parts procurement from suppliers and transportation of knockdown parts; “Outbound” includes transportation of complete vehicles and service parts.
In fiscal 2018, CO2 emissions from logistics were 1,482,982 tons, down approximately 5.4% from the previous fiscal year. Emissions from transportation of parts declined due to the localization of complete vehicle assembly and parts procurement, making a substantial contribution to the reduction of our overall CO2 emissions.
CO2 Emissions per Vehicle Transported
In fiscal 2018, despite an expansion in global production, CO2 emissions per vehicle transported were 0.37 tons, an improvement over the previous fiscal year.
We promote efforts to reduce CO2 emissions at Nissan offices in Japan, North America, Europe and China. In Japan, through Nissan Trading, we operate the Nissan Power Producers and Suppliers (PPS) scheme, sourcing clean energy for which CO2 emissions and costs have been taken into account through Japan’s PPS system. In 2018, approximately 26,657 MWh of clean energy was supplied to five Japanese business locations.* NESCO teams have also expanded the scope of their activities beyond production plants to contribute to reducing emissions in the Nissan Technical Center in Atsugi. Our efforts go beyond just CO2 management. We are pursuing other environmentally-friendly policies, such as improving our video and telephone conference facilities and using software to bring participants in multiple locations together when they need to share documents. This reduces the number of business trips required worldwide, improves workplace efficiency and reduces costs.
Global Headquarters, Sagamihara Parts Center, Nissan Education Center, Customer Service Center and Honmoku Wharf (all in Kanagawa Prefecture).
Green Building Policy
Based on ISO 14001 management processes to evaluate environmental impact, we make it a key task to optimize our buildings during construction or refurbishing to make all our structures greener. Evaluation metrics in this area include environmental footprint, such as CO2 emissions; waste and emissions from construction methods; and use of hazardous materials and other quality control issues. Furthermore, one performance index for Nissan in Japan is MLIT’s Comprehensive Assessment System for Built Environment Efficiency (CASBEE). Among our current business facilities, our Global Headquarters in the city of Yokohama has earned CASBEE’s highest “S” ranking, making it the second Nissan structure to do so following the Nissan Advanced Technology Center (NATC) in Atsugi, Kanagawa Prefecture. Global Headquarters gained a Built Environment Efficiency Rating of 5.6, the highest CASBEE rating for a new structure, making it one of Japan’s greenest office buildings. The building’s use of natural energy sources to reduce its energy usage and its CO2 emissions were evaluated highly, as were its methods of water recycling and its significant reduction in waste produced.
Nissan promotes CO2 management at dealerships with the aim of reducing total emissions per floor area by 1% each year. Our retail outlets also work continually to increase energy efficiency. Many have adopted high-efficiency air conditioning, insulation films, ceiling fans and LED lighting. During renovation work, some outlets have installed lighting systems that make use of natural daylight, as well as insulated roofs. In addition, to source electricity with low environmental load, we have broadened supply from PPS systems, including our own, to provide 143,183 MWh of power (equivalent to an annual reduction of some 3,278 tons in CO2 emissions) to 1,023 retail outlets in the Kanto, Chubu, Tohoku, Kansai and Kyushu regions. Since April 2000, we have run a unique environmental facility certification system based on ISO 14001 for dealerships called “Nissan Green Shop.” Our environmental policy requires all dealerships in Japan to meet certain standards and undergo annual audits performed by our teams. The dedicated evaluation sheet has a total of 84 key performance indicators (KPIs) and is regularly revised to reflect the requirements of national legislation, local communities and the Nissan Green Program (NGP).