Toward a Carbon-Neutral Society
In 2015, the United Nations Climate Change Conference (COP21) adopted the historic Paris Agreement to keep the increase in global temperature to “well below” 2 degrees Celsius.
At COP24, held in 2018, parties agreed on concrete guidelines to achieve the goals of the Paris Agreement, namely, to achieve the peaking of global greenhouse gas (GHG) emissions as early as possible and to strike a balance between GHG emissions from human activity and carbon absorption by nature by the second half of this century.
One of the United Nations’ Sustainable Development Goals (SDGs), announced in 2015 as part of its 2030 Sustainable Development Agenda, is to “take urgent action to combat climate change and its impacts.” Nissan is responding to these developments by focusing on electrification and other innovative technologies and by promoting decarbonization through reductions in CO2 emissions across the value chain, including by suppliers.
Nissan’s Steps to Reduce CO2 Emissions
The business structure of the automobile industry is changing greatly in the face of demands to reduce CO2 emissions and dependence on fossil fuels. As a global automaker, Nissan considers emissions across the entire value chain it shares with its suppliers, from procurement of raw materials to transportation and operation of vehicles. We understand how important it is to balance environmental initiatives with business activities, and strive to reduce emissions through new technology development, renewable energy use and other measures.
Building a Resilient Climate Change Strategy
The incremental move toward decarbonization could generate major new risks for businesses. In addition to transition risks resulting from changes in policies and regulations, technologies, markets and reputation, there are also growing physical risks, as climate change raises the frequency of extreme weather conditions. Recognizing climate change as a risk for the financial system, the G20 Financial Stability Board established the Task Force on Climate-related Financial Disclosures (TCFD) to encourage disclosures that would enable investors to make informed decisions. In its June 2017 final report, the Task Force proposed a recommendations framework for information disclosure.
Nissan considers climate change to be an issue that goes to the heart of its operations. The Global Environmental Management Committee (G-EMC), co-chaired by a board member, identifies trends in climate-related risks and business opportunities and adopts strategies accordingly. Climate change and other environmental risks comprise a category of risks for corporate management and are regularly monitored by the Internal Control Committee to strengthen corporate governance.
We analyze climate-related risks on an ongoing basis, and have specified as major risks tighter regulations on fuel economy and CO2 emissions, intensifying competition in the EV market and physical damage due to extreme weather conditions. We determine specific measures to be taken by each division after clarifying the risks and opportunities—including those relating to climate change—for our company.
Additionally, climate change also greatly heightens customer needs for energy-efficient mobility. We are meeting those needs by clearing stringent CO2 emissions regulations, as outlined in the Nissan M.O.V.E. to 2022 midterm plan calling for annual aggregate sales of 1 million 100% EV and e-POWER vehicles by fiscal 2022. In our corporate activities, we are actively advancing energy-saving measures, shifting to climate-efficient logistics and introducing renewable energy sources.
In the light of these climate-related risks and opportunities, we established a long-term vision for climate change*1 and drew up the Nissan Green Program 2022 (NGP2022)*2 midterm environmental action plan. We will reinforce the resilience of our climate change strategy to enable responses to multiple climate change scenarios and seek to disclose information in line with the TCFD framework in order to facilitate the understanding of investors and other stakeholders.
- Long-term vision for climate change:
- Products: Reduce CO2 emissions from new vehicles by 90% compared to 2000 levels by 2050.
Click here for more information on Policies and Philosophy for Product Initiatives.
- Corporate activity: Reduce overall corporate CO2 emissions by 80% compared with 2005 levels by 2050.
Click here for more information on Policies and Philosophy for Corporate Activity Initiatives.
- Climate change indices, targets and achievements, along with Scope 1, 2 and 3 emissions are contained in this report under “NGP2022 Framework and Action Plan,” “Product Initiative: Achievements” and “Environmental Data.”
- Click here for more information on NGP2022.