CSR Report 2019 - ISUZU · CSR activities that can meet the expectations of stakeholders and...
Transcript of CSR Report 2019 - ISUZU · CSR activities that can meet the expectations of stakeholders and...
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CSRReport
2019
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EDITORIAL POLICY � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 2MESSAGE FROM THE PRESIDENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3CORPORATE PROFILE � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4ISUZU’S CSR ACTIVITIES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7
ENVIRONMENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 18 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �18 ActivityReports � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �20 EnvironmentalPerformanceData � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �30
QUALITY � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 37 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �37 ProductQualityImprovement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �39 ServiceQualityImprovement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �43 OperationalQualityImprovement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �49
RESPECT FOR EMPLOYEES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 51 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �51 Industrialhealthandsafety � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �52 UtilizationofDiverseHumanResources � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �55 PersonnelDevelopment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �58 ImprovingEmployeeSatisfaction � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �62 Labor-managementRelations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �63
KEY ISSUES FOR ISUZU ����������������������������������� 9
SUPPLY CHAIN MANAGEMENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 64 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �64 ActivitiesforWin-winRelationshipswithOurBusinessPartners � �67 VariousGuidelinesforBusinessPartners � � � � � � � � � � � � � � � � � � � � � � � � � � � � �69 CommunicationwithBusinessPartners � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �72
CONTRIBUTIONS TO LOCAL COMMUNITIES AND SOCIETY � � � � 73 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �73 AddressingPoverty � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �75 EducationalSupport � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �77 HarmonywithLocalCommunities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �79
GOVERNANCE � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 83 CorporateGovernance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �83 Compliance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �88 RiskManagement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �92
A THIRD-PARTY OPINION � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 94
GLOSSARY FOR GRI STANDARDS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 95
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED1
CONTENTS
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PublishedAugust2019(Previousreport:PublishedinOctober2018;Nextreport:scheduledforAugust2020)
GRISustainabilityReportingStandards*UnifiedinternationalguidelinesformulatedbyGRI(GlobalReportingInitiative),aninternationalNPO,inanattempttoimprovethequality,reliabilityandcomparabilityofthecontentofCSRreports
IsuzuMotorsLimitedhasnotundergoneanysignificantmajorchangesinscale,structureandownershipduringtheperiodofthisreport.
IsuzuMotorsLimitedCorporateCommunicationsDepartmentCSRPromotionGroupTEL:+81-3-5471-1384
Publication Information
Referenced Guidelines
Significant Changes within the Reporting Period
Inquiries about the Report
IsuzuCSRReportsarepublishedtoprovideanunderstandingofthe“import-antissuesforbothourstakeholdersandIsuzu,”withregardtotheCSRactiv-itiescarriedoutbytheIsuzuGroup.ThereportsareintendedtoreinforcecommunicationwiththeGroup’sstakeholdersandthustofurtherdevelopCSRactivitiesthatcanmeettheexpectationsofstakeholdersandsociety.Inthisyear’sreport,wehavereviewedourpracticeofinformationdisclo-
surewithreferencetotheGRIStandards,theinternationalguidelinesforsustainabilityreports,publishedinOctober2016.WehavealsoincludedinthisreportspecificinitiativesregardingthekeyissuesthatIsuzuGroupshouldaddressidentifiedinFY2017.
ThisreportdescribesactivitiesundertakenbyIsuzuGroup,withafocusonIsuzuMotorsLimited,andbyothergroupcompaniesinJapanandabroad.*“Isuzu”inthisreportrefersto“IsuzuMotorsLimited”alone*Fordetails,seeourSecuritiesReport
ThisreportincludesactivitiescarriedoutbetweenApril1,2018andMarch31,2019inprinciple.However,significantmattersinotherperiodsarealsopartlyincludedinthisreport.PleasevisittheIsuzuwebsiteforourFY2019businesssummaryandfinan-
cialinformation.
Scope of Report
Securities Report (Japanese only)https://www�isuzu�co�jp/investor/yuuka/index�html
Period Covered
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED2
Editorial Policy
https://www.isuzu.co.jp/investor/yuuka/index.html
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thisreason,IsuzuandCumminsInc.enteredacomprehensivepartnershipinMay2019todevelopdesignsfornext-generationpowertrains.Inaddition,wedidnotjuststopatreducingCO2emissionsfromourvehi-
cles.WearealsoactivelyworkingoninitiativesthatonlyIsuzu,asanexpertvehiclemanufacturer,canachieve.Acrossthewholemanufacturingprocess,fromprocessingrawmaterialstoassemblingparts,operatingvehiclesanddisposingofthemafteruse,wearereducingrawmaterialsprocessingasmuchaspossibletoreduceenergyrequirements,andwearerebuildingindividualpartsandenginesafterdisposal.Toensurethetrustofallstakeholders,Isuzuimproveditscorporategov-
ernancestructureattheJune2019BoardofDirectorsMeetingbyestab-lishingtheNominationandRemunerationCommittee,whichactsasanadvisoryfunctiontotheBoardofDirectors.Theaimwastocreateastruc-turethatenablesevengreatertransparencyandaccountabilityinthecor-poratedecision-makingprocess.Inthefuture,wewillcontinuelookingintoenhancingourmonitoringfunctionaswell,withafocusongreateruseofexternaldirectors.Wewillcontinuelearningfromtheopinionsandrequestsofourstake-
holdersaswepursuevariousinitiativestorealizeasustainablesociety,andstrivetobeanexcellentandwidelybelovedcompanyofcommercialandlightcommercialvehicles,supportingsocietyintermsofpeople’slivesaswellasproduction.Wehopethatyouwillcontinuetosupportusevenmoreinthefuture.
IwouldliketoexpressourappreciationforyourcontinuedextraordinarysupportandunderstandingforIsuzu.JapanexperiencedanunusuallevelofnaturaldisastersinFY2018,includ-
ingtheheavyrainsinJuly2018andtheHokkaidoEasternIburiEarthquake.Therewerealsovariousgovernance-relatedissuesacrossanumberofindustriesthatreinforcedtheimportanceoftransparencyandaccountabilityinthedecision-makingprocessofcompanies.Againstthisbackdrop,stake-holderconcernshavealsoexpandedbeyondfinancialfigures,suchassalesandprofits,toincludenon-financialconcernsincludinginitiativesunderESG(environment,societyandgovernance)andtheUnitedNationsSustainableDevelopmentGoals(SDGs),withtheimportanceofESG-relatedinformationdisclosureincreasingenormously.AlongwithourcommitmenttoESGdisclosure,ourcorporatesocial
responsibilityactivitiesforFY2018includedadvancementofourkeyissues(materialities),whichweidentifiedinFY2017,totheconcreteactivityandKPIestablishmentphase.AnexampleofIsuzuresolvingsocialissuesthroughbusinesswasourkey
issueofimprovingtheproductivityofthelogisticsindustry.Throughaco-creationinitiativewithcustomersandbusinesspartners,wedevelopeda25mdoubletrailerconsolidatedtruck.Inthisway,wehelptoimproveefficiencyinthelogisticsindustryandresolvelaborshortagesbydoublingthecarryingcapacityofexistingtrucksandconsolidatingtrailersfromdiffer-entbusinessesintoasingletransportload.Anotherexamplewasourkeyissueofenhancingphysicaldistribution
flow,wherewearedevelopingadvancedsafetydevicestailoredtovehiclecharacteristicsandusageapplications.Inthecaseofthelight-dutyElftruck,whichisusedinurbanenvironments,detectionofpedestriansandobstaclesisveryimportant.Weaimtosupportdriverswithadvancedvisualsupporttechnologies,whichpromoteearlyavoidanceofdangers,inordertoreducebothaccidentnumbersandsubsequentdamage.Goingforward,wewillcontinueorganizingconcreteactivitiesthroughour
businessestoresolvesocialissues.AtIsuzu,ourultimatemissionistoprovidealogisticsinfrastructurefor
peopleandthings.However,thisgenerallyinvolvestheuseofinternalcom-bustionengines,whichimpactsnegativelyournaturalenvironment.Tocon-tinuedeliveringsocialvalueasaleaderintransportation,accordingtotheIsuzuCorporateVision,itisessentialthatwefocusmorethaneverondoingwhatwecantoimprovetheglobalenvironment,thatwepromoteenviron-mentalactivitiesthroughourbusinesses,andthatwecontinueenhancingactivitiestoreduceenvironmentalloadthroughlow-carbontechnologiesandresourcerecycling.Basedonthisawareness,westartedmonitoringthe“ElfEV”inFebruary
2019withtheaimofachievingpracticalapplicationofEVtrucksinadditiontothedevelopmentofCNGandLNGengines,andthecleandieselthatwehavebeenworkingonfromtheoutset.Webelievethathigh-efficiencycleandieselengineswillremainanimport-
antpowertrainchoiceforglobalcustomersinawiderangeofcommercialvehicleandindustrialapplications.Thisisespeciallytrueindevelopedcoun-trieswherepowertrainsareusedinheavy-dutyoperations,aswellasinemergingcountrieswheresocialinfrastructureconditionsaresevere.For
PresidentandRepresentativeDirector
Masanori Katayama
ISUZUMOTORSLIMITEDCSRREPORT2019Copyright(C)ISUZUMOTORSLIMITED3
Message from the President
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Isuzu Corporate Vision
"Isuzu will always mean the best A leader in transportation, commercial vehicles and diesel engines, supporting our
customers and respecting the environment"
Mid/Long-term Vision
Support society in terms of people’s lives as well as production
Be an excellent and widely beloved company in CV, LCV, and power trains
Isuzu Corporate Mission
"Trust, Action, Excellence A global team delivering inspired products and services committed to exceeding expectations"
PRODUCTS: Explore genuine needs and create products and services with strong appeal
CONDUCT: Be responsible, dedicated, and agileORGANIZATION: Achieve goals through global teamwork
Name: ISUZUMOTORSLIMITED
Head Office: 6-26-1Minami-Oi,Shinagawa-ku,Tokyo140-8722JapanTel.:81-3-5471-1141(DirecttoGeneralAffairs&HRDept.)
President and Representative Director:
MasanoriKatayama
Establishment: April9,1937
Capital: 40.644billionyen(asoftheendofMarch2019)
Employees: 37,263(consolidated)/8,186(asofendofMarch2019)
Major Products: Heavy-medium-andlight-dutytrucks,buses,Vehicle&industrialdieselengines
Sales: 2,149,168million(consolidated)/1,130,825million(Isuzu)(yearendingMarch2019)
Operating profit 176,781million(yearendingMarch2019)
Ordinary profit 189,001million(yearendingMarch2019)
Consolidated current net income that belongs to the shareholders of the parent company:
113,444million(yearendingMarch2019)
No� of consolidated subsidiaries
92(asofMarch2019)
Corporate Profile
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED4
Corporate Profile
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NorthAmerica6 sites
Central andSouth America4 sites
Oceania1 site
Japan23 sites
China10 sites
Asia23 sites
Europe9 sites
Middle Eastand Africa3 sites
Business deployment by region (Isuzu Group companies)TheIsuzuGrouphasestablisheddevelopment,manufacturingandsalesbasesnotonlyinJapanbutalsoworldwide,sharingourideasonMonozu-kuri,andpromotingthehomogenizationofourservicesandsupport.Atpresent,Isuzuproductsaresoldin120countriesandregions.TheElf,
forexample,theleadinglight-dutytruckbrandinJapan,isrecognizedastheglobalstandardamonglight-dutytruckshavingcapturedthetopshareinnumerouscountriesworldwide.OurD-MAXpick-uptruck,currentlybasedinThailandandexportedtomorethan100countries,isfurtherevidencethatconfidenceinIsuzuisspreadingworldwide.
Consolidated sales composition by region (year ending March 2019)
Consolidated sales composition by business categories (year ending March 2019)
Japan¥819.2billion
38%
Heavy-dutyvehicles¥483billion
22%
NorthAmerica¥166.8billion
8%
Others¥518.6billion
24%
Others¥432.8billion
20%
Partsforoverseasproduction¥57.3billion
3%
PT&Compo¥143.5billion
6%
Asia¥644.6billion
30%
Light-dutyvehicles¥1,032.3billion
49%
Heavy-dutyvehicles:Heavy-andmedium-dutyvehiclesLight-dutyvehicles:Light-dutytrucksandbusesPT&Compo:Vehicleandindustrialdieselengines
AsofMarch2019
2,149�2billion
2,149�2billion
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED5
Corporate Profile
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Isuzu Society
1914 StartofWorldWarI
1916 [Founding]TokyoIshikawajimaShip-buildingandEngineeringCo.,Ltd.andTokyoGasandElectricIndustrialCo.(thepredecessorsofIsuzuMotorsLtd.)initiatedplanstobuildautomobiles1922 CompletedfirstdomesticallyproducedWolseley,amodelA-91936 CompletedJapan’sfirstair-cooleddieselenginesmodelDA4andmodelDA61937 [Establishment]EstablishedTokyoAutomobileIndustriesCo.,Ltd.,thepredecessorofIsuzuMotorsLtd.1939 StartofWorldWarII1949 ListedonTokyoStockExchange,andcompanynamealteredto“IsuzuMotorsLimited”
1950 StartofKoreanWar(startofeconomicboomduetospecialprocurement)1959 UnveiledcompacttruckELF1961 InauguratedFujisawaPlant1966 EstablishedIsuzuMotorsCo.,(Thailand)Ltd.1970 Unveiled4-tonpayloadtruckFORWARD1971 Signedcapitalagreementforfull-scaletie-upwithGeneralMotorsCorporation(GM)1972 InauguratedTochigiPlant
1992LawConcerningSpecialMeasuresforTotalEmissionReduc-tionofNitrogenOxidesandParticulateMattersfromAuto-mobilesinSpecifiedAreasestablishedinJapan
1993 StoppedproductionofIsuzupassengercars1994 Fullmodelchangeofheavy-dutytrucks,andlaunchedastheGIGAseries1996 Announcedheavy-dutysightseeingbusGALA1997 AgreementreachedforIsuzutoleaddevelopmentofdieselenginesfortheGeneralMotorsGroup Asianfinancialcrisis
1998 AgreementreachedforIsuzutotakeonthedevelopmentresponsibilityfortheGeneralMotorsGroup’scommercialvehicles
1999 GeneralMotorsraiseditsequityshareinIsuzuto49%throughathird-partyallocationFullmodelchangeofmedium-dutybuses,andlaunchedastheErgaMioandGALAMioseriesGovernor Ishiharaproclaimed“SayNotoDieselVehicles”strategy
2000 Fullmodelchangeofheavy-dutyrouteandfamilybuses,andlaunchedastheErgaseries2001 AnnouncedIsuzu’smedium-termbusinessplan“VPlan”;developedoperationdiagnosissystemMimamori-kun September11terroristattacksintheUnitedStates2002 Fullmodelchangeofpick-uptrucksinThailand,andunveiledD-MAX2003 ShiftedandconsolidatedFujisawa’sPlantpick-uptruckproductiontoThailand2004 LaunchedcommercialvehicletelematicssystemMimamori-kunonlineservice
2006 Dissolvedcapitaltie-upwithGeneralMotors;signedbasicagreementwithToyotaondevelopmentofthesmalldieselengines,etc.
2008 Startof global financial crisisdue to thebankruptcyofLehmanBrothers2009 GeneralMotorsmadefilingunderfederalBankruptcyAct2011 GreatEastJapanEarthquake;majorfloodsinThailand2012 EstablishedIsuzuMotorsIndiaPrivateLimited
2014 EstablishedIsuzuGlobalCVEngineeringCenterCo.,Ltd.(IGCE)asthegroupcompanytocontroltruckdevelopmentforemergingmarkets2015 Commencedroll-outofadvancedgenuinemaintenanceservicePREISM2018 LaunchedTRAGAlightweighttruckforemergingmarkets;dissolvedcapitaltie-upwithToyota
Company History
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED6
Corporate Profile
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Isuzufulfillsourcorporatesocialresponsibilitywhilebuildinguptrustingrelationshipswithourstakeholdersthroughconversations.Inaddition,westrivetoprovidevaluetopeopleandsociety,andsolvesocialissues.Isuzuseekstoachieveourcorporatevision,andcontributetowardthesustain-abledevelopmentoftheglobalenvironmentandsociety.
Basic Ideas
Sustainable development of the global
environment and society
Corporate Social Responsibilities
Providing value and solving social issues
Trust from the community
Implementation of Isuzu's corporate vision
Stakeholders
Customers
Shareholders
Business partners
Employees
Government
Local Communities
Key issues (materiality)
Areas of activities
Regional/social contributions*Social Contributions
Harmony with Local Communities
QualityEnvironment
Supply Chain Management
Respect for Employees
Governance*
Activities of each employee
Corporate GovernanceCompliance
Risk Management
*Thoseinside[]bracketsareareaspriortosorting/integration
Isuzu Corporate Vision, Mid/Long-term Vision, and Isuzu Corporate Missionpage 4
Key Issues for Isuzu
Improving the productivity of the logistics industry (declining labor population)
Enhancing the physical distribution flow(mitigating traffic accidents and congestion)
Sustaining lifestyle and the environment in emergencies
Mitigating global environmental issues and promoting economic growth
(CO2 and exhaust gases)
Addressing poverty
Improving safety technology and providing reliable products
Respecting employees and promoting diversity
Win-win relationships with local communities and stakeholders
Strengthening governance
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED7
Isuzu’s CSR Activities
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TheIsuzuGroupconductsbusinessanddevelopsCSRactivitieswithitsmainstakeholders(thosewhohaveavestedinterest)inthetablebelow.
Isuzu Group Stakeholders
Main stakeholders Responsibility to stakeholders Main dialog opportunities & information disclosureCustomers ▶ Stablesupplyofproductsandservices
▶ Supplyofsafe,reliable,andworthwhileproductsandserviceswhichareenvironmentallyfriendly
▶ Suitablesupplyofproductinformation▶ Appropriateresponseandsupportforcustomers▶ Improvedcustomersatisfaction▶ Propermanagementofcustomerinformation
▶ Everydaysalesactivities▶ Customersupportcenter(phone,email)▶ Customersatisfactionsurveys▶ CustomerInformation(Isuzuwebsite)
Shareholders ▶ Appropriatereturnofprofitsbacktoshareholders▶ Timelyandsuitabledisclosureofcorporateinformation
▶Maintenanceandincreaseofcorporatevalue
▶ GeneralShareholdersMeeting▶Websiteforshareholdersandinvestors(Isuzu’swebsite)
▶ Publicationofsecuritiesreportsandquarterlyreports▶ Publicationoffinancialhighlights▶ Publicationofannualreports▶ Presentationsonearningreportsforinvestors▶ Factorytoursforshareholders
Businesspartners ▶ Fairandequitableselectionandtrading▶ SupportforCSRactivities
▶ Dailypurchasingactivities▶ Productionbriefing▶ Procurementpolicybriefing
Employees ▶ Fairandequitableassessmentandtreatment▶ Assignment/utilizationandtrainingofsuitablepersonnel
▶ Respectforhumanrights▶ Promotionofdiversity▶ Promotionofwork-lifebalance▶ Considerationforindustrialhealthandsafety
▶ Employeesatisfaction(ES)surveys▶ Compliancequestionnaires▶ Labor-managementcouncil▶ Reportingandadvisoryroute▶ Helpline(Suggestionbox)▶ HealthandSafetyCommittee▶ Companynewsletter
Government ▶ Legalcompliance▶ Paymentoftaxes▶ Cooperationwithmeasures
▶ DialogthroughorganizationssuchasJAMA
LocalCommunities
▶ Protectionandrespectforlocalcultureandcustoms▶ Contributiontolocaldevelopment▶ Cooperationwithlocalactivities▶Workplaceaccident/disasterprevention
▶ Participationinlocalevents▶ Invitationtoworkplaceevents▶OpeningofIsuzuPlazatothepublic▶ Acceptanceofsocialstudiestours(IsuzuPlaza,factorytours)
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED8
Isuzu’s CSR Activities
-
Isuzuhasdevelopeditsbusinessgloballyunderthecorporatevision“Isuzuwillalwaysmeanthebest”whilealwaystakingintoconsiderationtherequestsfromtheinternationalcommunity.Inrecentyears,accompanyingchangesintheeconomicenvironment,thesocialresponsibilitiesrequiredoftheIsuzuGrouphavealsochangedandtheGroupisexpectedtopromotemorestrategicinitiativesbasedontrendsintheinternationalcommunity.
Inresponsetothesesocialrequests,inFY2018,wehaveidentifiedthekeyissues(materiality)thatIsuzushouldfocuson.
Basic IdeasIsuzudivideskeyissuesintotwocategories:socialissuesthatweshouldaddressthroughourbusinessactivitiesandCSRissues.
Asfortheformer,weaimtomakedirectcontributionsthroughourcompany’sactivities.Forthelatter,wehaveidentifiedCSRissuesasthethemeofourcompany'ssocialresponsibilities,whichwillstrengthenourbusinessfoundation.
Key Issues for Isuzu
Social issues that Isuzu should address through its business activities Relevance to SDGs
Improving the productivity of the logistics industry(declining labor population)
Enhancing the physical distribution flow(mitigating traffic accidents and congestion)
Sustaining lifestyle and the environment in emergencies
Mitigating global environmental issues and promoting economic growth (CO2 and exhaust gases)
Addressing poverty
CSR issues Relevance to SDGs
Improving safety technology and providing reliable products
Respecting employees and promoting diversity
Win-win relationships with local communities and stakeholders
Strengthening governance
Key Issues for Isuzu
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED9
Key Issues for Isuzu
-
Toidentifykeyissues,theIsuzuGroupbroughttolightkeyissuecandi-datesforconsiderationbasedontheGroup’sbusinesscharacteristicsandchallenges,internationalguidelines(GRI,ISO26000,SDGs,SASB,etc.)anddailycommunicationwithstakeholders,etc.
Thecompanyrevieweditsperspectiveandkeyissuecandidateswererevisedinconjunctionwiththemedium-termmanagementplan,whichwasunderreviewatthesametime.Intheend,weclassifiedtheimport-antissuesintotwoconcepts:socialissuesthatIsuzushouldaddressthroughitsbusinessactivitiesandCSRissues.
Inordertoverifythevalidityofthekeyissuecandidatesfromthesocialperspectiveandtogaininsightintosociety’sexpectationsforIsuzu,weheldadialogwithtwoexperts.ThedialogwasattendedbythepersoninchargeofmanagingCSRpromotionatIsuzu,whoexchangedideaswiththeexpertstorefinethekeyissuecandidates.
Finally,weconfirmedthevalidityofthekeyissuecandidatesinthedialog,andthenestablishedthemaskeychallengesforIsuzuattheMan-agementMeeting.
First,weformulatedandverifiedhypothesesforkeyissuecandidatesonanevaluationaxisthatincludesasocialperspectiveandourcompany’sper-spective.Thehypothesesarebasedonsocialandindustrytrends,andimportancewasanalyzedfromboththesocialandourcompany’sperspec-tivewithregardtotheexternalenvironment,characteristics,strategies,CSRactivities,andotherfactorsofIsuzu'sbusinesses.
STEP 1Finding and
arranging key issue candidates
STEP 3Linking key issue candidates to the
medium-term man-agement plan
STEP 4Verifi cation and fi nalization from
a social perspective through dialog
STEP 2Forming and analyzing a
hypothesis from the perspectives of society and our company
ThenextstepistodevelopKPIfortheseidentifiedkeyissuesandimplementvariousactivitiesaccordingly.
Future Plans
The state of the dialog is published in the CSR Report 2018.https://www�isuzu�co�jp/world/csr/report/backnumber/pdf/2018�pdf
Business characteristics
Business challenges
Isuzu’s perspective
Social perspective
International guidelines
Organization of similar elements
Key issue candidates
Daily communication
Identifi cation of issues that are of
high importance to both society and our company as candidates for
important issues
ISUZUMOTORSLIMITEDCSRREPORT2019Copyright(C)ISUZUMOTORSLIMITED10
Key Issues for Isuzu
Formulation Process
https://www.isuzu.co.jp/world/csr/report/backnumber/pdf/2018.pdf
-
Inrecentyears,inJapan,thenumberofitemshandledbydeliveryserviceshastendedtoriseyearbyyear,whichiscausingaproblemwiththeongoingshortageoftruckdriversandotherlogisticsproviders.Fur-thermore,theshortageoftruckdriversaccompanyingthelowbirthrate,aging,anddecliningworkingpopu-lationinJapanisalsorecognizedasaseriousfutureproblem.
Truckssupportapproximately99%ofthenumberofitemshandledbydeliveryservices,andwerecog-nizethattheseproblemsareserioussocialissuesthatIsuzu,asupporteroftransportation,mustsolveaswell.Weareworkingontheseissueswiththeaimofoptimizingdistributionandimprovingproductivitythroughcustomervaluecreation.
Relevance to SDGs Byworkingonthiskeyissue,Isuzucontributestotheimprovementofproduc-tivityinthelogisticsindustryandtheconstructionofarobustlogisticsinfra-structurethroughtechnologicalimprovementandinnovationandtherebycontributestotheachievementofgoals8and9oftheSustainableDevelop-mentGoals(SDGs).
Key Issue Promotion SchemeEffortsdirectedatthiskeyissuearepromotedthroughcoordinationacrossgroupsanddivisionscenteringontheEngineeringDivision,SalesPlanningDivision,After-SalesDivision,andIsuzuMotorSalesLtd.(group).
Trends in the number of truck drivers and the number of items handled by delivery services(1,000workers) (millionitems)
780 830
4,2514,212
2,9282,897
1,500
0
5,000
2,500
1,200 4,500
900 4,000
600 3,500
300 3,000
2011 2012 2013 2014 2015 2016 2017201020092008200720062005 (FY)(years)
*Source:2017Surveyandtotalingmethodfornumberofitemshandledbydeliveryservices,etc.(MinistryofInternalAffairsandCommunications) http://www.mlit.go.jp/common/001252227.pdf LaborForceSurveyResults(StatisticsBureauofJapan,MinistryofInternalAffairsandCommunications) https://www.stat.go.jp/data/roudou/index.html
■Numberofdrivers(leftaxis)■Numberofitemshandledbytruckdelivery(rightaxis)■Totalnumberofdeliveries(rightaxis)
Reducing downtime through the spread of vehicles equipped with PREISMAtruckthatrunsdayandnightalwaysrequirestheperfectconditions.ThePREISMconnectedserviceprovidedbyIsuzuconstantlymonitorsvehicledatafromtheengine,DPD(DieselParticulateDefuser),transmission,etc.,andobtainsdatathatcanpredictfailuresbeforetheyoccur.Byimplementingpreventivemaintenancebasedonthispredictivedata,itispossibletopreventfailuresandgreatlycontributetoworry-freeoperationaswellasreducedowntimeandshortenmaintenancetimetothebenefitofourcustomer'scon-tinuedbusiness.
BytheendofFY2018,approximately38,000vehiclessupportedPREISMandwereusedforrelaytrucking*,whichrequiresnearconstantoperation.WithPREISM,weareimprovingvehiclerotationrate,achievingdayandnightoperationthatisnotaffectedbydrivershifts,provid-inganenvironmentwheredriverscanreturnhomeonthesameday,supportingvehiclemaintenance,andreducingtheburdenondrivers.
Improving efficiency and saving labor by providing a 25-meter full trailer (double articulated truck)Followingtherecommendationsonderegulationofthevehiclelengthforthepurposeofefficienttranspor-tationandsavinglabor,theMinistryofLand,Infrastructure,TransportandTourismrelaxedthevehiclelengthstandardfromtheprevious21metersto25metersinJanuary2019.
Againstthisbackground,Isuzujointlydevelopeda25-meterfulltrailerthroughacollaborativeinitiativewithamajortransportcompany.Thisnotonlydoubledtheloadingcapacityoverconventionalheavytrucks,butalsoallowedcombinationsoftrailersfromdifferentoperatorstobeoperatedasasinglevehi-cle,whichwillleadtomoreefficientlogisticsandisaneffectivesolutiontolaborshortages.Inaddition,thereducednumberofvehiclescontributestothereductionofCO2emissions.
Asapartnerthatsupportstransportation,wewillcontinuetoworkwithourcustomersandbusinesspart-nerstocontributetoimprovingtheproductivityofthelogisticsindustry.
Isuzu’s Approach
*Anoperationsystemwherevehiclesaretakenoveratrelaypointswithoutlosstimeinlong-distancetrucktransportation
25-meterfulltrailer(doublearticulatedtruck)
PREISMsupportsrelaytrucking
Relay point
TransferDrivers can return home the same day
Drivers can return home the same day
Outbound truck
Inbound truck
Outbound truck
Inbound truck
Support
D D
ISUZUMOTORSLIMITEDCSRREPORT2019Copyright(C)ISUZUMOTORSLIMITED11
Social issues that Isuzu should address through its business activities Improving the productivity of the logistics industry (decline labor population)
Key Issues for Isuzu
-
ForIsuzu,asupporteroftransportation,thestreamliningoflogistics,thatis,thesafetransportationofpeopleandgoods,isauniversalthemewiththehighestpriority.
AccordingtotheWhitePaperonTrafficSafetyinJapan2018,95.8%offataltrafficaccidentsarecausedbydrivers.Largeandmedium-sizedcommercialvehiclesthatIsuzuprovidestocustomersmaycausemoredamageintheeventofanaccidentwhencomparedtopassengercars.Inadditiontocontinu-ingtopursuecreationofproductsthatdonotbreakdown,wewillcontinuetoworkonreducingtheoccurrenceofaccidentscausedbydriversandreducingthedamagecausedbyaccidents,therebyfulfillingoursocialresponsibility.
Relevance to SDGs Bytacklingthisimportantissue,Isuzuwillhelpachievegoals3and11oftheSustainableDevelopmentGoals(SDGs)byreducingthenumberofcasualtiesfromtrafficaccidentsandprovidingasafeandsustainabletransportationinfra-structureforall.
Key Issue Promotion SchemeEffortsdirectedatthiskeyissuearepromotedthroughcoordinationacrossgroupsanddivisionscenteringontheEngineeringDivision,SalesPlanningDivision,After-SalesDivision,andIsuzuMotorSalesLtd.(group).
Number of traffic accidents involving deaths by type of offense (of the person principally implicated) (2017)
*Source:WhitePaperonTrafficSafetyinJapan2018(Japaneseonly) https://www8.cao.go.jp/koutu/taisaku/h30kou_haku/zenbun/genkyo/h1/h1b1s1_2.html
Speed violation162 (4.5%) Improper operation
505 (13.9%)
Careless driving555 (15.3%)
Violation of obligation of safe driving2,041 (56.2%)
Total3,630
accidents
Inattentive driving398 (11.0%)
Insufficient adherence to safety
387 (10.7%)
Other196 (5.4%)
Intoxicated driving20 (0.6%)
Failure to stop completely[, etc.]131 (3.6%)
Ignoring traffic signals157 (4.3%)
Obstructing pedestrians[, etc.]
238 (6.6%)
Obstructing priority traffic99 (2.7%)
Overtaking violations22 (0.6%)
Other violations425 (11.7%)
Pedestrian147 (4.0%)
Unknown6 (0.2%)
Traffic partition violations182 (5.0%)
95�8% of traffi c fatalities are caused
by drivers
Reducing occurrence of accidents and amount of damage through the development of advanced safety devicesThefunctionsrequiredformountedsafetydevicesaredifferentforpassengercarsandtrucks,duetothedifferenceinsize(trucksarelong,wide)andthedifferenceinmovementcharacteristics(difficultfortruckstomakeasuddenstoporturn),etc.Isuzudevelopsadvancedsafetydevicesthatsuitthesevehiclecharac-teristicsandaimstoreducetheoccurrenceofaccidentsandtheamountofdamage.
Forexample,advancedviewassisttechnology,whichpromotesearlyavoidanceofpotentialrisks,sup-portsdrivercognition,judgment,andmaneuverabilitywithforwardobstacledetectiontechnologyusingmillimeter-waveradarandstereocamerasaswellasvehicleoperationconditiondata.Inparticular,detec-tionofpedestriansisimportantintheELFlight-dutytruck,whichplaysanactiveroleinurbanareas,sowehavedesignedthecameramountingpositiontomakeiteasiertodetectpeopleinthevicinity.
Wearealsopromotingthedevelopmentofappro-priatesafetytechnologiesinaccordancewiththevehiclecharacteristicsandapplicationincluding,usingasystem*thatsuppressesabnormalbehavior(jackknifing,rollovers,etc.)uniquetoconnectedvehicles.
Erga Duo contributes to the improvement of transportation efficiency and safetyInadditiontosafety,busesthatcarrymanypeoplearerequiredtoimprovetransportefficiencyinworkandschoolcommutingrushhoursandintouristareaswheretherearemanyvisitorsthroughouttheday.
In2019,inresponsetotheseexpectations,IsuzubegansellingtheErgaDuohybridarticulatedbuswithatotallengthof18metersandamaximumcapacityof120people*1.Inadditiontothesignificantimprove-mentoftransportationefficiencyfromthearticulateddesign,thebusisEmergencyDrivingStopSystem(EDSS)*2andisdesignedtoimprovesafetyaswell.
EDSSisasystemthatallowspassengersorcrewmemberstodecelerateandstopthevehiclebypressingtheemergencybrakeswitchwhensuddenillnessorotherreasonspreventthedriverfromcon-tinuingtooperatethevehicle.Intheeventofanemergency,thevehicledeceleratesandstops,andatthesametime,thehornsoundsandthehazardandbrakelightsareturnedontonotifyothersaroundthevehicleofaproblem,therebypreventingaccidentswithothervehiclesinadditiontoconsideringthesafetyofthestandingpassengers.
Isuzu’s Approach
*IESC(IsuzuElectronicStabilityControl) Asystemwithvarioussensorsthatdetectssuddenchangesinthepositionofthemovingvehicleandsuppressesengineoutput,activatesthenecessarywheelbrakesandalsoalertsthedriverwithanalarmandindicatorlightstohelpthemrecovercontrolthevehicle
*1Capacitymaydifferwithindividualspecifications*2StandardequipmentfortheErgaheavy-dutybusandtheErgaMio
medium-dutybus
ErgaDuohybridarticulatedbus
PedestriandetectionbystereocameramountedonELF
ELF with camera on dashboard
Easy to detect small children ○ Hard to detect small children ×
Camera installed at the top of the window
ISUZUMOTORSLIMITEDCSRREPORT2019Copyright(C)ISUZUMOTORSLIMITED12
Social issues that Isuzu should address through its business activities Enhancing the physical distribution flow (mitigating traffic accidents and congestion)
Key Issues for Isuzu
-
Japanisacountrywithmanynaturaldisasters,suchasearthquakesandtyphoons.Inrecentyears,thenumberofoccurrencesandtheamountofdamagehasgreatlyexpanded,andwhencomparingthedecadesofthe1970sand2000s,thenumberofoccurrenceshasmorethandoubledandtheamountofdamagehasincreasedover25times.
Asacompanythatsupportstransportationforpeople’slivesandsocialproductionactivities,Isuzubelievesthatitsmissionistoensurethattransportationdoesnotstopduringdisastersandemergencies.Evenwiththeincreasingthreatofnaturaldisasters,wewillcontributetotherealizationofamoresecuresocietybyprovidingvehiclesandservicesthatmakeuseofthelessonslearnedfrompastdisasters.
Relevance to SDGs Byaddressingthisimportantissue,theIsuzuGroupwillprovidevehiclesandservicesthatareresilientindisastersandemergenciesandwillcontributetotheachievementofgoals11and13ofSustainableDevelopmentGoals(SDGs).
Key Issue Promotion SchemeWeregardthiskeyissueasanissuethatrequiresthewholegroupinordertosolvethroughourbusinessandwearetacklingitwithaninterdivisionalresponse.
0.91 1.74 0.80 7.9118.53
49.67
17.99
220.84
12
2024
17
2824
37
23
39
113.67
250
0
50
0
200 40
150 30
100 20
50 10
1991-1995 1996-2000 2001-2005 2006-2010 2011-20151986-19901981-19851976-19801971-1975 (years)
■Amountofdamage(leftaxis) ■Numberofoccurences(rightaxis)
Change in the number of natural disasters and the state of damages in Japan(billiondollars) (incidents)
*Source:2016WhitePaperonSmallandMediumEnterprisesinJapan,SmallandMediumEnterpriseAgency(Japaneseonly) https://www.chusho.meti.go.jp/pamflet/hakusyo/H28/h28/index.html
Mimamori data contributes to rapid transportation in the event of a disasterThroughpastexperienceswithdisasters,Isuzuhasrecognizedtheimportanceoftransportationnetworksthattransportpersonnel,sickandinjuredpeople,andemergencysuppliesindisasters.However,trafficroutesmaybecutoffduetovariousfactorssuchasheavyrainorsnow,earthquakes,tsunamis,etc.,andappropriatemeasuresmustbetakenpromptlyaccordingtothesituation.
Mimamori,anadvancedreal-timeoperationmanage-mentsystem,collectsandanalyzestrafficdata,andprovidesittoITSJapan,anNPOthatprovidestrafficmapsduringdisasters.Theroadswherevehiclescanmovearevisualizedbasedontheprovidedtrafficdata,andthiscontributestotherealizationofemergencyanddisastertransportation.
Sales of industrial diesel engines that support people’s livesIntheeventofapowerfailure,emergencygeneratorspoweredbydieselenginesareinstalledatsiteswherehumanlivesareinvolved,forexampleatairportsorhospitals.Inaddition,manypowershovelsrequiredforreconstructionindisaster-affectedareasandconstructionmachinesthatsupportourlivesaswellassnowblowersusedintheeventofsnowdamage,etc.arealsodrivenbydieselengines.Withoutdieselengines,itisnoexaggerationtosaythatbuildingandroadconstructionwouldnotbepossible.
Asaleadingmanufacturerofdieselengines,Isuzuwillcontributetosupportinglifestylesandtheenvironmentduringdisastersandemergenciesthroughthemanufac-tureandsaleofindustrialdieselengines.
Isuzu’s Approach
Isuzu’sdieselengineusedforavarietyofapplications
ITSJapanpassengercarandtrucktrafficmap
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Social issues that Isuzu should address through its business activities Sustaining lifestyle and the environment in emergencies
Key Issues for Isuzu
-
According to the Ministry of Land, Infrastructure, Transport and Tourism, of Japan's carbon dioxide emis-sions 1.19 billion tons in FY2017, 17.9% of emissions came from the transportation sector (213 million tons). Automobiles accounted for 86.2% of emissions (15.4% of total emissions in Japan) and Isuzu’s truck business makes up 36.5% of the transportation sector (6.5% of total emissions in Japan).
In addition to contributing to the development of the logistics industry, Isuzu believes that it has a responsibility to contribute to the resolution of global environmental issues through its business activities.
Relevance to SDGs By tackling this key issue, the Isuzu Group is working to reduce environmental impact throughout the product life cycle, from material input to disposal, and is contributing to the achieve-ment of goals 7, 12 and 13 of the Sustainable Development Goals (SDGs).
Key Issue Promotion SchemeThis key issue is led by the Global Environment Committee and is an issue that the group as a whole should address and we are tackling it with an interdivisional response.
CO2 emissions in the transportation sector
* Source: Carbon dioxide emissions in transportation sector (Ministry of Land, Infrastructure, Transport and Tourism)https://www.mlit.go.jp/sogoseisaku/environment/sosei_environment_tk_000007.html
Business freight trucks42.4 million tons(19.9%)
Private freight trucks35.32 million tons(16.6%)
Private passenger car98.5 million tons(46.2%)
1.19 billion tons of CO2 emissions (FY2017)
Domestic sector0.186 billion tons
(15.6%)
Industrial sector0.413 billion tons
(34.7%)
Other0.171 billion tons
(14.4%)
Transportation sector (cars, ships, etc.)0.213 billion tons
(17.9%)
Other business sectors0.207 billion tons
(17.4%)
All vehicles account for 86.2% of the
transportation sector (15.4% of Japan
overall)Freight vehicles
account for 36.5% of the transportation sector (6.5% of Japan
overall)
Transition to renewable energy The Isuzu Group is promoting the transition to cleaner energy. In FY2018, a group company in Thailand introduced a large-scale solar power generation facility.
Engine rebuilding business Isuzu Engine Manufacturing Hokkaido Corporation is promoting its engine and parts rebuilding business. Isuzu recognizes the size of its responsibilities as a manufacturer and promotes the rebuilding of engines while replacing parts to save resources.
Promotion scheme for measures against climate change The Isuzu Group is promoting measures against climate change at all points in the value chain, under the watch of the Global Environment Committee. Please refer to each committee page for their activities.
Activities to realize fuel-efficient drivingThe largest source of CO2 emissions in Isuzu product life cycles are emissions from product use. Fuel effi-ciency improvement, which is directly linked to these emissions, is also always high on the list of customer needs and Isuzu believes that working with customers to achieve fuel-efficient driving is also important to solve environmental problems.
The Mimamori operation management system presents customers with a fuel consumption report to assist fuel-efficient driving based on nine evaluation items such as vehicle speed, shift-up RPM, and the degree of accelerator depression of the vehicle equipped with the system. The reports generated by this system also contribute to the reduction of CO2 emissions by helping drivers understand the ideal driving opera-tions that achieve fuel-efficient driving.
Isuzu’s Approach
Use of renewable energypage 29
Efforts to reduce resource inputpage 29
Isuzu Group Environmental Promotion Schemepage 19
Mimamori fuel consumption report
Fuel efficient and safe driving seminarspage 25
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED14
Social issues that Isuzu should address through its business activities Mitigating global environmental issues and promoting economic growth (CO2 and exhaust gases)
Key Issues for Isuzu
-
The poverty rate (proportion of people living at US $1.90 or less per day) provided by the World Bank in 2015 was 9.9% worldwide, and or nearly half, 46%, at US $5.50 per day. Currently, Isuzu products are sold in over 120 countries worldwide. Isuzu's production business is also spreading around the world, including products exported to about 100 countries around the world from our base in Thailand, and poverty is one key issue for Isuzu to address, especially in emerging countries. Through our business activities, we plan to address poverty by contributing to the economic growth of emerging countries.
Relevance to SDGs By tackling this key issue, the Isuzu Group provides vehicles and services that meet the needs of the various countries and regions in which we operate and provide economic value including job creation, thereby contributing to the achievement of goals 1, 8, and 10 of the Sustainable Development Goals (SDGs).
Key Issue Promotion SchemeWe regard this key issue as an issue that requires the whole group in order to solve through our business and we are tackling it with an interdivisional response.
World poverty rate (living on less than US $1.90 a day
* Source: Global population poverty rate (2015) World Bank https://data.worldbank.org/indicator/si.pov.dday?type=shaded&view=map&year=2015
Introduction of strategic products into markets in emerging countriesIsuzu launched Isuzu Philippines Corporation (IPC) in 1997 and began assembly, production and sales in the region. We have maintained a high market share of over 50% in the sales of new trucks in the catego-ries corresponding to Japan's small and medium-sized cars. In recent years, we have rapidly expanded the share of large cars. Under these circumstances, we also started manufacturing and selling Jeepney substitute vehicles in 2018 in collaboration with IPC and a major local option manufacturer.
Isuzu strictly adheres to production in the Philippines, and rather than just offering products that are competitive in price, we provide high-quality, environmentally-conscious products based on the trust in quality that IPC has cultivated locally span-ning more than 20 years and through the excellent local employ-ees who have maintained and supported the entire Isuzu Group .
Educational Support for Philippines Auto Mechanic Vocational SchoolFrom November 2008, Isuzu has been involved in an educational program organized by the Technical Education and Skills Development Authority (TESDA) in Tacloban City on the island of Leyte in the Philip-pines. This program is held at an automobile mechanic vocational school, designed for economically disad-vantaged youths.
A total of 266 people graduated through this program, finding work in auto dealers and garages in the Philippines, Japan and other countries. Some of them are hired as trainers at Isuzu Global Service Corpora-tion (IGSC), an after-sales support company founded in the Philippines.
In 2018, the Philippines was the first to comply with the Euro 4 exhaust gas control in Southeast Asia. After-sales support is a growth business that is expected to expand from the Philippines to the Middle East and other regions.
These activities that started with the aim of severing the chains of poverty and contributing to the development of the country have become important activities for Isuzu's business.
Isuzu’s Approach
Jeepney substitute Isuzu display car
Scene of class at auto mechanic vocational school
Contributions to Local Communities and Societypage 75
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED15
Social issues that Isuzu should address through its business activities Addressing poverty
Key Issues for Isuzu
-
Theworking-agepopulationinJapanisexpectedtodecreasebynearly10%overthenext50yearsorso.Nowmorethaneverbeforeinorderforcompaniestocontinuetoincreasethecorporateandsocialvaluetheyprovide,theyneedtocreateenvironmentswhereadiverserangeofpeoplecanwork.
Isuzuisstrivingtobeacompanythatgrowswithemployeesbynotonlyrespectingtheirhumanrightsanddiversity,butalsobyprovidinganenvironmentthatissafeandcomfortableinwhichemployeecapa-bilitiescanbemaximized.
Relevance to SDGs Bytacklingthisimportantissue,theIsuzuGroupwillcreateanenvironmentinwhichadiverserangeofpeoplecanworkwithenthusiasmandwillcontributetotheachievementofgoals5,8and10oftheSustainableDevelopmentGoals(SDGs).
Key Issue Promotion SchemeTheAdministrationDivisionisinchargeofthepromotionschemeforthiskeyissueandincooperationwithbusinessdivisionsandgroupcompanies,theentirecompanywillworktogethertopromotetheinitiatives.
60.3%51.4%
126.93 million peopleActual value (National census, etc.) 2017 estimated value
(future estimated population in Japan)88.08 million people
150
0
120
90
60
30
1950 1960 1970 1980 1990 2000 2010 2016 2025 2035 2045 2055 2065 (year)
Working-age population transition(millions)
*Source:Environmentandissuessurroundingemployment(2017)EmploymentSecurityBureau,MinistryofHealth,LaborandWelfare https://www.mhlw.go.jp/file/05-Shingikai-11601000-Shokugyouanteikyoku-Soumuka/0000062121_1.pdf
■Populationunder14yearsold■Populationbetween15-64yearsold■Populationover65yearsold■Percentageofworkingagepopulation(15-64)
Isuzu’s Approach
Employment of non-Japanese personnelpage 56
Work style reformpage 51
Promoting opportunities for womenpage 56
InJapan,thereisarecallsysteminplacetopreventaccidentsandproblemswherebyautomobilemanufacturersthatdetectissuesinthedesignormanufacturingprocessofanautomobilewill,basedontheirownassessment,carryoutvehiclerecallorrepairaftersubmittingpriornotificationtotheMinisterofLand,Infrastructure,TransportandTourism.BasedonannouncementsbytheMinistryofLand,Infrastructure,TransportandTourism,thereisanincreasingtrendofvehiclerecallnotificationsbeingsubmittedinrecentyears.Thisreflectssociety’sincreasingdemandstowardproductquality,andtheproactivestancebeingundertakenbyautomobilemanufacturersinviewofsuchdemands.
ThesameistrueforIsuzu,andwewillcontinuetopursueimprovementsinsafetytechnologyandfulfilloursocialresponsibilitybycontinuingtoprovidereliableproducts.
Relevance to SDGs Bytacklingthisimportantissue,theIsuzuGroupwillfurtherpromotethedevelopmentofthelatestandmostadvancedsafetytechnolo-giesandprovidetrustedproducts,therebycontributingtoachievinggoals3,9and11oftheSustainableDevelopmentGoals(SDGs).
Key Issue Promotion SchemeTheQualityAssuranceDivisionisinchargeofthepromotionschemeforthiskeyissueandincooperationwithbusinessdivisionsandgroupcompanies,theentirecompanywillworktogethertopromotetheinitiatives.
756 492 1,129
4,417 5,3517,979
9,558
18,991
15,846
7,700
43 5593
204
295 303355 368
364
377
0
500
400
300
200
100
0
20,000
16,000
12,000
8,000
6,000
1988 1993 1998 2003 2008 2013 2014 2015 2016 2017 (FY)■Totalnumberofcases(leftaxis)■Totalnumberofvehicles(rightaxis)
Number of car recall cases and affected vehicles(cases) (thousandvehicles)
*Source:Numberofrecallnotificationseachyearandtargetnumberofvehicles MinistryofLand,Infrastructure,TransportandTourism http://www.mlit.go.jp/jidosha/carinf/rcl/data_sub/data004.html
Isuzu’s Approach
Organizing fuel efficient and safe driving seminarspage 46
Next-generation vehicle diffusion activitiespage 23
PREISMpage 48
ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED16
CSR issues CSR issues Respecting employees and promoting diversityImproving safety technology and providing reliable products
Key Issues for Isuzu
-
Isuzuhas92consolidatedsubsidiariesandoperatesallaroundtheworld.Asatrustedpartner,westronglyrecognizethatcoexistenceandcoprosperityineachregionandwithstakeholders,aswellasthevaluechainthatincludesourbusinesspartnersisessentialforIsuzuanditsaffiliatestocontributetothecreationofricherlifestyles.
Wewillcontributetosocietybyproperlyrecognizingandrespondingtorequestsfromlocalcommuni-tiesandstakeholders.
Relevance to SDGs Byaddressingthisimportantissue,theIsuzuGroupwillensureappropriatecommunicationwithlocalstakeholderstoachieveasustainablesociety,therebycontributingtotheachievementofgoals4,8and17oftheSustainableDevelopmentGoals(SDGs).
Key Issue Promotion SchemeTheCorporatePlanning&FinanceDivisionandthePurchasingDivisionareinchargeofthepromotionschemeforthiskeyissueandincooperationwithbusinessdivisionsandgroupcompanies,theentirecompanywillworktogethertopromotetheinitiatives.
Consumers’ recognition of corporate responses
*Source:22ndSurveyonTrusttowardCorporations(2018)KeizaiKohoCenter https://www.kkc.or.jp/data/release/00000150-1.pdf
Coexistence with local
communities
Corporate patronage
initiatives (sports, culture, art
support) and social
contribution
●Supported●Somewhatsupported●Supportedalittle●Notsupported●Notknown
2% 2%7% 8%
8% 11%
47% 47%
35%
31%“Not supported” replied by
62%
“Not supported” replied by
66%
Isuzu’s Approach
Contributions to Local Communities and Societypage 73
Supply Chain Managementpage 64
Recently,withtheoccurrenceofaseriesofcorporatescandals,improvementstomanagementeffectivenessandtransparencyaremorenecessary.WiththeestablishmentoftheCorporateGovernanceCodein2015,societalconcernsandrequestshavebeenincreasingandIsuzurecognizestheseasimportantsocialrequests.
Inordertoestablishagovernancesystemtoserveasasolidfoundationtosupportbusinessactivitiesandcorporatevalues,weplantostrengthenoursupervisoryfunctionsandoptimizeourdecision-makingtofulfillourresponsibilitytobeaccountabletoallstakeholders.
Relevance to SDGs Bytacklingthisimportantissue,andbymakingclearandtransparentdecisionsandfulfillingourresponsibilityforaccountability,theIsuzuGroupcontributestotheachievementofgoal16oftheSustainableDevelopmentGoals(SDGs).
Key Issue Promotion SchemeTheAdministrationDivisionisinchargeofthepromotionschemeforthiskeyissueandincooperationwithbusinessdivisionsandgroupcompanies,theentirecompanywillworktogethertopromotetheinitiatives.
27272121 2424
32322727
3738 4042
6060
4243
6464
80
0
60
40
20
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (FY)
Trend in number of companies with inappropriate accounting disclosures(companies/cases)
*Source:Fiscal2017TrendinNumberofCompanieswithInappropriateAccountingDisclosures(TokyoShokoResearch,Ltd.) https://www.tsr-net.co.jp/news/analysis/20180420_02.html
■Numberofcompanies■Numberofcases
Isuzu’s Approach
Risk Managementpage 92
Compliancepage 88
Corporate Governancepage 83
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CSR issues CSR issues Win-win Relationships with Local Communities and Stakeholders Strengthening governance
Key Issues for Isuzu
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ForIsuzu’sbasicideasrelatedtotheenvironment,itestablishedandisimple-mentingthegoalsofpursuingitsbusinessactivitiesinallareaswithanenviron-mentalawareness,anddevelopingandoperatingitsenvironmentalmanagementsystemtoreducetheenvironmentalloadinallofitsbusinessareas.
TheIsuzuGroup’sCharterontheGlobalEnvironmentclarifiesthecompa-ny’senvironmentalvisionfortherealizationofaprosperousandsustainablesociety.Inlinewithdramaticallychangingsocialtrendsandsocialdemands,allIsuzuGroupmembersusetheCharterasaguidelinewhenpursuingenvi-ronmentactivities.
Basic Ideas
Isuzu Group’s Charter on the Global Environment
Basic Policy▶ Realization of a prosperous and sustainable society WethemembersoftheIsuzuGroupregarditasanimportantbusinesschallengeto
preservetheglobalenvironmentsothatourplanetremainsprosperousandsustain-ableandcanbepassedontonextgenerations.Inthisregard,wepursueourbusinessactivitiesinallareaswithanenvironmentalawareness.
▶ Reduced environmental load of all business operations The IsuzuGrouprecognizesourresponsibility insupportingtransportation,offersenhancedproductsandservicestoourglobalcustomersthroughclosecooperationwithallGroupcompanies,anddevelopsandoperatesourenvironmentalmanage-mentsystemtoreducetheenvironmentalloadinallofourbusinessareas.
Action Guidelines1 Create a sustainable society Wecoordinateourbusinessoperationsandenvironmentalinitiatives,therebyoffering
environmentally-aware,high-value-addedproductsandservicestosociety.2 Comply with environmental laws and minimize the environmental load Inanefforttominimizetheimpactontheenvironmentfromourbusinessoperations,
weensurethatwecomplywithenvironmentallawsandengageinkeyenvironmentalissuesinallofourbusinessareasfromdevelopmenttoproduction,distribution,salesandservicing,addressingclimatechange,resourcerecycling,preventionofenviron-mentalrisksfromhazardoussubstances,environmentalmeasuresandconservationofbiodiversity.
3 Promote environmental technology Wepromote thedevelopmentof technology to reduce theenvironmental loadappliedthroughouttheproductlifecycle.
4 Maintain proactive social communication Wemaintainapositiveattitudetowardthedisclosureofproduct,service,andbusi-
nessactivity informationontheenvironment,promotinggoodcommunicationwithmembersof societyandcommunities,andwork toward realizingaprosperoussociety.
5 Foster environmental awareness as corporate citizen Weengage inperpetualefforts to fosterenvironmentalawareness ineachGroupmemberasacorporatecitizenoperatinginalocalcommunity,encouragingthemtolearnaboutandacttowardenvironmentalconservation.
Asamanufacturerandvendorofautomobiles,theIsuzuGrouprecognizestherisksandopportunitiesrelatedtoclimatechangeasincreasinglyimport-antbusinessissuesfortheGroup,consideringthatourproductsaresourcesofcarbondioxide(CO2)andotherexhaustgasesthatexacerbateclimatechange.Thesignificanceattachedtothemwillfurthergrowastheclimateforcorporateactivitieschanges,promptedbyfactorssuchastheParisAgreementandtheUnitedNations’SustainableDevelopmentGoals(SDGs).Isuzuhasbeenproactivelypursuingtheimprovementoffuelefficiencyin
vehiclesofhighcustomerdemand.Wehavealsobeenholdingseminarsonfuel-efficientandsafedrivingsince1995socustomerscanlearnfuel-efficientdrivingtechniquessuitablefortheirvehicleperformance.TheseinitiativesareregardedasimportantactivitiestoworktogetherwithcustomerstoreduceCO2emissionsasmostoftheCO2gasesproducedinacar’slifecycleisduringoperation.Similarly,theMimamoriandothercustomersupportsystemsforfuel-efficientdrivingprovidecustomerswithinformationthatmeetstheirneeds.Today,weareaffectedbymoreextremeweatherconditions,suchas
increasedlocalprecipitationandmorepowerfultyphoons,likelyasaresultofclimatechange.IfIsuzuproductsweresubmergedunderwaterandbecameunusableinawater-relateddisaster,thiswouldposeriskstoourcustomers’businesses.Tosupportquickrecoveryofoperations,IsuzuhasasysteminplacetohelpwiththeinspectionandrepairofIsuzuproductsaccordingtothedamagecausedbyflooding.Meanwhile,thereisamajorchangetakingplaceinthepowertrainbusi-
nesstoday.Isuzuisalsorespondingtothistrendandpursuingthedevelop-mentofEVandsimilarvehicles,includingtheprovisionofanelectricmonitorvehicleduringFY2018.Inaddition,weareinvestigatingoptimalpowertrainsforIsuzuforcommercialvehicleapplications,whichincludesthedevelopmentofLNGtrucksaspartofaresearchprogramoftheMinistryoftheEnvironment.Wefeelthatitisanimportantbusinesschallengetooutplayourcompetitorsinnewtechnologydevelopment,whichinvolvesbothrisksandopportunities.
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TheIsuzuGrouphasestablishedfivebodiesundertheGlobalEnvironmentCommitteeinordertoimplementenvironmentalconservationactivitiesinallitsbusinessoperations.ThesefivebodiesarecomposedofIsuzuGroupaffiliatecompaniesoperatinginenvironmentallyrelevantfields,andtheyaddressvariousissuesandpromotebetterenvironmentalactivitiesthroughthegoalstheysetforthemselves.TheGlobalEnvironmentCommittee,composedofmembersfromtop
managementincludingrepresentativeofficersofvariousfields,holdsmeet-ingseveryquartertoaddresstheresolutionofdiverseenvironmentalissues,carryingoutdiscussionsanddecision-makingonmattersofenvironmentalconservation.
Agenda of Global Environment Committee1 IsuzuGroup’senvironment-relatedinitiativepolicyandplan ▶IsuzuGroup’sCharterontheGlobalEnvironment ▶Mid/Long-termplan,annualplan2ProgressofactivitiesthatfollowtheIsuzuGroup’senvironmentalinitiativepolicyandplan
3KeymattersrelatedtoenvironmentalproblemssurroundingtheIsuzuGroup
Goingforward,theIsuzuGroup—domesticandoverseas—willworkunitedasoneundertheIsuzuGroup’sCharterontheGlobalEnvironmentsoastorealizeaprosperousandsustainablesociety.Inaddition,weplantoformulateourlong-termenvironmentalvision
duringFY2019soastofurtherclarifytheenvironmentalaspectstheIsuzuGroupshouldaimforfromalong-termperspective.Throughthisactivity,wewillbuildasystemwhichcanpromotebusiness
activitiestakingintoconsiderationtheenvironmentinallbusinessfields,whereeachandeverypersonintheIsuzuGroupcanachievewhatheorsheshoulddowithreferencetothelong-termenvironmentalvision.
Isuzu Group Environmental Promotion Scheme
Future initiatives
Structure of Global Environment Committee
PurchasingLogistics
Design & D
evelopment
ProductionSales
Logistics Working Group
Product Development Environment Committee
Production Environment Committee
Sales and Support Environment Committee
Green Procurement Working Group
Composedoflogistics-relatedIsuzuGroupcompanies.Addressesmoreefficient,environmentallyfriendly,andlowerCO2emittinglogisticsactivitiesinordertopromoteenvironmentalawarenessinoperationssuchasthetransportationofcompletedvehiclesorpartsusedinmanufacturing.
ComposedofdesignanddevelopmentrelatedIsuzuGroupcompanies.Addressesactivitiesfordesigningand
developinggreener,cleanerproductswithlowerCO2emissions,inordertoreducetheenvironmentalloadofproducts(vehiclesandcomponents).
ComposedofproductionrelatedIsuzuGroupcompaniesbothinJapanandoversees.Addressesgreenerproductionactivities,inordertopromoteenviron-mentalconservationinproduction.
Composedofsales-relatedIsuzuGroupcompanies.Addressesactivitiesthataregreenerandreducetheenvironmentalloadofdistributors,inordertopromoteenvironmentalconservationinsales.
AddressesenvironmentalawarenessinprocurementactivitiesinordertopromoteenvironmentalconservationtogetherwithIsuzubusinesspartners.
Top Managem
ent
CommitteeMembers:RepresentativeofficersfromeachdivisionChair:SeniorExecutiveOfficer
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IsuzuhasestablishedtheIsuzuGreenProcurementGuidelinesforpromotingenvironmentalconservationtogetherwithitsbusinesspartners,whoIsuzuaskstopromoteenvironmentalconservationactivitiesbasedonanunder-standingoftheseGuidelines.InAprilandOctober2018,weheldourbiannualproductionbriefingsfor
businesspartnerswhereweexplainedouractivityplanfortheperiodandhowtopreparetheEnvironmentalManagementSelf-EvaluationReportthatpartnersareaskedtoprovide.Withabout300partnersattendingthebrief-ings,wehadalivelyexchangeofopinions.
Environmental activity seminarsInJuly2018,Isuzuheldaseminaronenvironmentalactivitiestohelpraisethelevelofenvironmentalactivitiesconductedbybusinesspartners.Aimedatfurtherboostingtheseactivities,theseminarwasattendedby45peoplefrom37targetedbusinesspartners.TheEnergyConservationCenter,Japan,wasinvitedtospeakonthetopic
ofhowtoconductmoreCO2reductionactivitiesbyutilizingtheEnergy-Sav-ingActanditsamendments.Feedbackfromourbusinesspartnersindicatedthattheseminarwillhelpthemintheirfutureenvironmentalactivities.WepartiallyrevisedtheFY2018EnvironmentalManagementSystem
Self-EvaluationReportandrequestedthatour365businesspartnerscon-ductself-assessment.TheresponserateandaveragescoresforFY2018assessmentswerethe
highestever.Theyindicatedanincreaseinsuccessfullymeetingtheirownenergyconservationgoalsandanincreaseinthenumberofinitiativescon-ductedintheareasof“wastereduction”and“logisticsimprovementandpackagingmaterialreduction.”Thisconfirmedagreaterawarenessofourbusinesspartnersinactivitiesfortheenvironment.Wewillcontinuevisitingbusinesspartnersandholdingtheseenvironmental
activityseminarsinthefuturetoraiselevelsacrosstheentiresupplychain.
Environmental initiatives in procurement activities
Business partner visitsBasedontheresultsofEnvironmentalManagementSystemSelf-EvaluationReportsthatwerequestedourbusinesspartnerstoconduct,wedirectlyvisitedanumberofpartners.Weconfirmedthestatusoftheiractivitiesandmanagementsystems,relatedtooverallenvironmentalactivitiesandincreasinglyregulatedchemicalsubstancemanagement,andwehadcon-structivediscussions.Thiswaspartofeffortstoshareinformationonsuc-cessfulactivitiesandimprovements,andtoimproveactivitiestogetherwithourpartners.
Isuzu Green Procurement Guidelines (outline)1Procurementbasicvision/Basicpolicy/Slogan2Ourrequestsforourbusinesspartners ▶Requestsregardingenvironmentalmanagement 1)Structuringenvironmentalmanagementsystems 2)Nominationofpersonnelresponsibleforenvironmentalmatters 3)Compliancewithrelatedenvironmentallawsandregulations 4)Improvementofenvironmentalperformance 5)Submissionofself-evaluationreportsonenvironmentalmanage-
mentsystems,andconfirmationbyIsuzu ▶ Requestsrelatedtoparts,materials,andservicesprovidedto
ourcompany 6)Managingenvironmentallyhazardoussubstances 7)Initiativesformanagementoverlifecycles 8)ReductionofCO2emissionsandpackaging/shippingmaterials
inlogistics
Supply Chain Managementpage 71
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IsuzuengagesinenvironmentallyfriendlylogisticsthroughoutthewholeGroup,streamliningitsvariouslogisticsprocessessuchasthetransportationofcompletedvehicles,partsorsubsidiarymaterialsusedinvehiclemanufac-ture,promotingfuel-efficientdrivingduringtransportation,andsoon.
Reducing CO2 emissions in logistics processesIsuzuisreducingCO2emissionsinitslogisticsprocesses,atthetargetrateof1%peryear,byreviewingthetransportationroutesofparts,promotingfuel-efficientdrivingduringtransportation,andincreasingtheamountofmarinetransportationbydevelopingnewshippingroutes(modalshift).
Environmental initiatives in logistics processes
6,442 7,2828,996 10,058
12,01715,682 16,139
11,903 11,6293,966 4,052
3,9795,462
5,410 7,419
9,000
10,90310,056
17,260
12,246
62 6469 69
65 6256 59
62 59
30,000
0
24,000
18,000
12,000
6,000
100
80
60
40
20
02009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ratio by sea(No. of vehicles) (%)
(FY)
By sea By land
State of modal shift during product vehicle transportation
Other main initiatives for reducing CO2 emissions▶Improvedtransportationefficiencyduetothoroughtrucktransportman-agementaccordingtoload
▶Increaseduseofreturnableracksthatcanbefoldedwhenreturning▶Increasedtrailertransportationandimprovedfillingratesofgoodswithincontainers
In2016,anewdistributioncenterwasconstructednearFujisawaPlant,centralizingallwarehousesintheFujisawaarea.Thisconsolidatedtranspor-tationbetweenwarehousesandimprovedlogisticsefficiency.Thedistributioncenteritselfisinanenvironmentallyconsciousdesign,
equippedwithLEDlightingandskylightstotheextentpossible.IthasreceivedaratingofB+(Good)fromtheComprehensiveAssessmentSystemforBuiltEnvironmentEfficiency(CASBEE).
Reduced amount of packaging materials through review of packaging configurations
IntheIsuzuGroup,packagingconfigurationsarecontinuallyreviewed,andmeasurestakentoreducetheamountofpackagingmaterialsused.InFY2017,westartedusinggloballystandardizedreturnableracks,and
wearecurrentlyexpandingtheirusestartingfromtheASEANregion.
Returnablerack
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TheIsuzuGrouphasset“SeeTechnology”asitsbaseconceptfordevelop-ment,withtheaimofadvancingtechnologiesinthethreeareasofSafety,EconomyandEnvironment.Fromtheaspectoftheenvironment,Isuzuhasselectedeightpriority
issuesandsetupaspecialcommitteeforeachonetoaddressenvironmen-tallyconsciousproductdevelopment.
•ExamplesareforautomobilemodelssoldinJapan.Youcanfindenviron-mentaldetailsaboutautomobilessoldbyIsuzubelow.
•YoucanfinddetailsaboutproductssoldbyIsuzubelow.
Initiatives for environment in product development
Improvementofairconditioningrefrigerant
Promotionofin-vehicleVOCreduction
Fueleconomyimprovement(globalwarmingprevention)
Promotionofrecycling Developmentanddiffusionofnext-generationvehicles
Reductionofvehiclenoise
Cleaneremissions
Reductionofenvironmentallyhazardoussubstances
Environmental information by vehicle type (Japanese only)http://www�isuzu�co�jp/cv/env/car/index�html
Product informationhttps://www�isuzu�co�jp/world/product/index�html
Fuel economy improvement (global warming prevention)IsuzuisengagedinthedevelopmentoftechnologiesthatwillmeetfutureJapaneseandoverseasregulationsonfueleconomyandCO2emissionsandachievetop-levelfuelefficiency.
Cleaner emissionsIsuzuisengagedinthedevelopmentofhigh-efficiencydieselenginesthatwillcombinecompatibilitywithfutureemissionregulationsandimprovedon-roadfuelefficiency.
Reduction of vehicle noiseIsuzuisengagedinthedevelopmentofnoisereductiontechnologytomeetfutureJapaneseandoverseasnoiseregulations,andthetimelyintroductionontothemarketofsoundregulationcompliantvehicles.
Reduction of environmentally hazardous substancesIsuzuisaddressingthefurtherreductionofenvironmentallyhazardoussubstancesandthereinforcementofitsmanagementsystemusingIMDS.
Improvement of air-conditioning refrigerantIsuzuisengagedindevelopinganewrefrigerantsystemsuitableforbusesandtrucks.
Promotion of recyclingIsuzuisengagedinthepromotionofrecycling-orienteddesignthatwillcontributetothemoreeffectiveuseofresources.
Promotion of in-vehicle VOC reductionIsuzuiscommittedtoreachingtargetsoftheJapanAutomobileManufacturers’Association(JAMA)forreducingin-vehicleVOCemissions.
Development and diffusion of next-generation vehiclesIsuzuisaddressingthemarketpenetrationofnext-generationvehicles,includingxEVs*andnaturalgasfueledvehicles,whichhelptoimprovetheglobalenvironment.*xEVisthegenerictermforelectricvehicles(HEV,EV,etc.).
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Diffusion of next-generation vehiclesBotheconomicsanduser-friendlinessarerequiredofcommercialvehicles,whichareproductiveassets.Lookingatthepowersources,webelievethatdieselinternalcombustion
engines,includingbiofuelandhybridconfigurations,willremainapromisingsourceintothefuture.However,thereisalsopotentialforuseofnaturalgasorelectricitydependingonthemarketandapplication,sowearecommit-tedtodevelopingtechnologiesthatdeliveragoodbalanceofvehiclestypesthatrunonawidevarietyofenergies.
DeuSEL® Project: Looking for next-generation fuelsInordertoremainaleaderintransportationinthefuture,Isuzuhasstartedwork-ingonbio-dieselfuel.Webelievethattherewillbeaneedforlowcarbon,sustain-ablenext-generationfuels,andthatbio-dieselwillbeavaluableoption.In2014,welaunchedtheDeuSEL®Project,originallyajointresearchinitiativethatledtotheworld’sfirstlaunchofanext-generationbio-dieseltrialinDecember2018.Goingforward,theDeuSEL®Projectwillworktoincreasethenumberof
interestedbio-fuelmanufacturersandusersacrossJapan,andwillsupporttheGREENOILJAPANdeclarationofJapan’seuglenaCo.,Ltd.topromoteJapanasanadvancedbiofuelnation.Wewillalsocontinueon-roadtrials.
JointannouncementbycompaniesandorganizationssupportingtheGREENOILJAPAN
DeuSEL® Projecthttp://www�deusel�jp/
Elf EV operation monitoring startedIsuzuhasstartedmonitoringoperationoftheElfEV,whichisbasedonthelight-dutyElftruck,forthepurposeofexpandingitsrangeofvehicleswithenvi-ronmentalpowertrains,asisrequiredofcommercialvehiclemanufacturers.Throughthismonitoringactivity,weaimtoensurenotonlyenvironmental
improvementbutalsotheoriginaltruck’seconomicsanduser-friendliness,whiletargetingthegoalofcommercialization.
Policy and approach to clean technologiesIsuzuconsidersitsmissionisco-existenceandharmonywiththeglobalenvironment,andpreparationsforsustainableenergysupplyanddemand,andfuelsecurity.Wedeveloptechnologiesinthebeliefthattransportinggoodsandpeople
withfewCO2emissionsisimportantforcommercialvehicles.
ElfEV
Publicity announcement of monitoring launchhttps://www�isuzu�co�jp/press/2019/2_13�html
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ToreducetheenvironmentalloadoftheIsuzuGroup’sproductionactivities,itsmanufacturingcompaniesinJapanandoverseasallworktogethertoreducetheenergyandresourcesused,theamountsofharmfulchemicalsubstances,andthewastegeneratedduringmanufacturing.
Promoting green production activitiesCO2 emission reduction activitiesByincreasingtheefficiencyofprocessesinallofourGroupcompanies,review-ingandproperlymanagingouroperationmethods,andpromotingthevisual-izationofourenergyusage,wewereabletosignificantlyreducetheamountofenergyused.WeareproducingsubstantialresultsovertheentireIsuzuGroupbyreviewingourconventionaloperationmethodstodiscoverfurthertypesofenergyconservationactivities,anddeployingthemacrossourcompanies.
Waste reduction activitiesAswellascarefullyseparatingwasteonaroutinebasis,Isuzualsotakesapositiveapproachtowastereductionactivities.Additionally,wearereduc-ingtheamountsofmaterialsthemselveswhichareusedbyproperlymanag-ingtheusageofthosematerialsandpromotingshiftstoreturnableitemsaswellasmaterialrecycling.WearemakingactiveeffortsasaGrouptowardfundamentalresourceconservationactivitieswhichinvolvereducingtheamountofwastethatisgenerated.
Chemical substance reduction activitiesWearetakingtheleadtoworkonactivitiestoreplacechemicalscontaininghazardoussubstancesthatcouldhaveanenvironmentalimpact,withchemi-calsnotcontainingsuchhazardoussubstances.Whilereplacingthesub-stancesweusewiththosewhichhavelesspotentialforharm,wearereducingtheactualamountsofchemicalsubstancesusedbyreviewingourprocesses.
Activities to control emissions of ozone depleting substancesWearepromotingactivitiesaimedatcontrollingtheemissionofozonedeplet-ingsubstancesthroughouttheIsuzuGroupbyreinforcingtheinspectionoffacilitiesusingCFCs,andinstallingnon-CFCequipmentduringfacilityupgrades.
Addressing the environment in production activities Isuzu Group Energy-Saving & 3R AwardsAmongproduction-relatedGroupcompanies,theIsuzuGroupEnergy-Saving&3RAwardhavebeenimplementedsinceFY2013.Entryactivitiesrelatedtoenergyconservationor3RimprovementsaregatheredfromwithintheIsuzuGroup,mainlyitsProductionDivision,thebestofwhichreceiveanaward.ExamplesofentriesaresharedthroughouttheIsuzuGrouptopro-motehorizontaldevelopment.TheseawardsareaimedatprovidingfurthermomentumtotheGroup’senvironmentalactivities.
FY2018 Energy-Saving Award▶NotreceivedinFY2018
FY2018 3R AwardReduction in volume of circulated water in compressors (Isuzu)Throughtherepeatedcycleofheatingandevaporatingfollowedbycoolingandrecirculating,thecoolingwaterusedbyequipmentintheplanttopro-ducecompressedairbecomesconcentrated,eventuallyleavingbehindonlyimpurities.Therefore,theFujisawaPlanthasbeenconstantlyreplenishingitssupplyofindustrialwaterbypumpingupgroundwater.However,waterisalimitedresource.Inordertoreducetheamountofwater
used,theplantstartedusingwaterwithalowamountofimpurities(deionizedwater),whichresultedincoolingwaterthatishardertoconcentrateandcre-atedasignificantreductionintheamountofwaterusedbytheplant.Asanadditionaleffectofthisinitiative,thereductioninwaterusagehas
alsoreducedtheamountofwastewaterproduced,theloadonwastewatertreatmentequipment,andtheamountofpowerandchemicalsrequiredforthetreatmentprocess.Becauseofitshighcost,wedidnotpreviouslyconsiderusingdeionized
waterascoolingwater.Byevaluatingitsoveralleffectivenessthough,werealizedthepositiveoutcomesthatwecouldachieve.Goingforward,wewillcontinuetothinkoutsidetheboxasweimplementarangeofactivitiesaimedateliminatingwaste.
Awardwinningmembers
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TopromoteenvironmentalconservationintheIsuzuGroup’ssalesactivities,itsdistributorsallworktogethertoconductgreensalesandengageinenvi-ronmentalload-reducingactivities.
Environmental load-reducing activities of Isuzu dealers in Japan
Efforts to increase environmentally friendly sitesIsuzuistryingtoincreaseitsenvironmentallyfriendlysitesbyactivelyinstall-ingLEDlightingorskylights,andintroducingreusableenergysystems,whenrenovatingorbuildingnewsalesoffices.Atnewlybuiltsites,wearepromot-ingtransitionstowatertreatmentfacilitiesthataremoreenvironmentallyconsciousthanexistingones,byinstallingbiologicaleffluenttreatmentequipmentfortreatingwaterdischargedduringvehiclemaintenanceorvehiclewashing.
Examples of newly established sites with environmental awareness
Environmental improvement activities in JapanIsuzusalesofficesareoptimizingtheirenvironmentaleffortsthroughevaluationsusingtheirownenvironmentalchecksheetsandpromotionofimprovementactivities.IsuzuaimstoincreaseitsenvironmentallyfriendlydistributorsbyenteringandwinningmoreawardsundertheEco-friendlyAutoRepairShopawardssystemoftheregionaltransportbureausoftheMinistryofLand,Infrastructure,TransportandTourism.
Environmental initiatives in sales activities
IsuzuMotorsTohokuMoriokaBranch IsuzuMotorsTohokuFukushimaBranch
Organizing of green sales activities in JapanIsuzudistributorsaredoingalltheycanfortheenvironmentintheiroverallbusinessactivities.Theyarecontinuouslyaddressingallpossibleenvironmentalactivities,
suchasusinghybridvehiclesandotherenvironmentallyfriendlyvehiclesasnewcompanycars,implementingtheCoolBiz,WarmBiz,andLightDowncampaigns,andholdinglocalareacleanupactivities.
Running courses on fuel efficient and safe driving seminarConsideringthelifecycleofIsuzuproducts,thelargestCO2emissionscomefromusingproducts(vehicles).TheIsuzuGrouphasbeenholdingseminarsonfuel-efficientdrivinginJapanandoverseassince1995,toinformcustom-erswhohaveboughtanIsuzuvehicleaboutwaysofdrivingmoreefficientlyaccordingtotheperformanceoftheirvehicle.
Track record over the past 3 yearsFiscal year Courses No. of Participants
FY2018 116 1,552FY2017 162 2,270FY2016 167 2,447
*DuetotheimpactoftheHokkaidoEasternIburiEarthquake,courseandparticipantnumbersforFY2018werelowerthanaverage.
Safeandecologydrivingpracticeinsession
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TheIsuzuGroupaimstoachieveexcellentenvironment-relatedcommunica-tionwithitsvariousstakeholders,includingitscustomers,businesspartners,surroundingareas,shareholders,investors,andemployees.Todoso,weparticipateinenvironmentalactivitiesinsurroundingareasandactivelyreleaseenvironmentaldata.Byenhancingourenvironment-relatedcommunication,theIsuzuGroup
aimstopromotegreaterrecognitionandunderstandingofourenvironmen-talactivities,sowemaycarryoutfurtherimprovements,andtodevelopouremployeesintooutstandingmembersofsocietybyactivelyreleasinginfor-mationwithinourcompanytoraisetheirawareness.
Replies to CDP2018Inordertoproperlydiscloseitsmeasurestoaddressclimatechange,IsuzuhasprovidedinformationsinceFY2016totheCDP,anorganizationthatevaluatescorporateeffortsrelatedtoclimatechange.Forthesecondyearinarow,wereceivedascoreofA-inFY2018.Inaddi-
tiontoclimatechangeresponses,wealsostarteddisclosingwaterinformationinFY2017andforestmanagementinformationinFY2018,inanattempttoachievebroaddisclosureofourenvironmentalmanagementactivities.Wewillcontinuetofurtherimproveouractivitylevelsandmakeproactive
effortsininformationdisclosure.
Third-party audits of environmental dataWithincreasingdemandsfortransparencyandtrustinenvironmentalinfor-mation,Isuzuhasbeenconductingthird-partyauditsofitsenvironmentaldatasince2017.TheauditwasconductedincompliancewithISO14064-3forCO2and
withISAE3000forwasteandwaterresources,andtheevaluationhasbeenfullycompleted.Wewillremainawareoftheimportanceofenvironmentaldataandpracticehigh-credibilitydisclosure.
Enhancement of environmental information disclosure Participation in Project for Arrangement of Infrastruc-ture for Environmental Information DisclosureSinceFY2016,IsuzuhasbeenparticipatingintheMinistryoftheEnviron-ment’sProjectfortheArrangementofInfrastructureforEnvironmentalInformationDisclosure,designedtopromotedialogwithinvestorsandothergroups.Wepublishourenvironmentalinformationontheproject’sportalsite.Participatinginthisprojecthasenabledustohavemorefre-quentindividualdialogswithinvestors,etc.,helpingustopromoteourenvironmentalinitiatives.
Presenting our environmental initiatives to members of local communities
InOctober2018,weorganizedatouroftheFujisawaPlantandinvited68keymembersfromsixlocalresidentsassociationsaroundtheplant.WepresentedtheenvironmentalinitiativesofIsuzuandtheFujisawaPlant,andtheparticipantswereallowedtoobservetheassemblylines.ThisanannualeventisaninvaluableopportunitytopromoteabetterunderstandingoftheenvironmentalinitiativesandothervariousactivitiesofIsuzuamongmem-bersofneighboringcommunities,whosecooperationisvitaltous.Wereceivedverypositivefeedbackfromparticipants,sayingthatit
helpedthemtounderstandIsuzu’sinitiativesbetter.Itisalsoanimportantopportunitytoimproveourcommunicationwiththem.
Communication with Local Communities
Apresentationonourenvironmentalconservationactivities
Environment
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Environmental Performance Data
Management Approaches18
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Activity Reports20
Employee-participatoryactivitiesareindicatedwiththissymbol.
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IsuzuhasbeenprovidingallemployeeswithcommoneducationalprogramsontheenvironmentsinceFY2016.Thisenvironmentaleducationinitiative,coveringallIsuzuemployees,is
organizedonceeverythreeyears,raisingawarenessofenvironmentalissuesamongemployeesandpromotingabetterunderstandingthecompany’senvironmentalactivities.Aspartofourenvironmentallyconsciousinitiatives,thisprogramcombinese-learningandcollectivelectures,reducingtheCO2emissionsgeneratedbythetransportationforemployeestoparticipateintheprogram.Similarly,theintroductorytrainingprogramsfornewandmid-career
recruitsincludesthiscommonenvironmentaleducationalprogram,whereparticipantslearnthereasonsbehindIsuzu’senvironmentalinitiativesandconsiderwhattheyshoulddoasmembersofIsuzu.Wealsoprovideenvironmentallawsandregulationstrainingandinternal
environmentalauditortrainingtodeepenemployees’understandingandmakethemmorecompetent.
InFY2018,theIsuzuGroupformulatedanewIsuzuGroupPolicyonBiodiver-sitywhilereferringtomaterialssuchastheMinistryoftheEnvironment’s“GuidelinesforPrivateSectorEngagementinBiodiversity”andthe“DeclarationofBiodiversitybyKeidanrenandActionPolicy.”IthasbeenpromotingthispolicyinternallysinceFY2019,withtheofficesofeachcompanywithintheGroupalsoconductingactivitiestoprotecttheuniquenaturalenvironmentsintheirrespectiveareasandpromotingtheconservationofbiodiversity.
Environmental Education
Conservation of biodiversity
Biodiversity conservation activity on the plant sitesIsuzuconductedexpert-ledbiodiversitysurveysonthesitesoftheFujisawaandTochigiPlants.Theresultsrevealedthattheforestswereneglectedonbothsites,negativelyimpactingontheirfunctionashabitatsforlocalspecies,andtheecosystemwaslosingitsequilibriumwhileforeignspecieswerethriving.Inresponsetotheseresearchresults,volunteeremployeesstartedwork-
ingonsitemaintenanceinFY2016andhavecontinuedeffortstorestorethesoundforestenvironmentsincethen.Arecentinvestigationhasfoundthattheseeffortshavehelpedtodiminishtheforeignspeciesandthattheeco-systemisgraduallyregainingitsequilibrium.Wewillcontinuetheseinitiativesinthefuture,leveragingexperts’opin-
ions,torestoreandconserveanevenricherecosystem,andwewillmain-tainanenvironmentthatallowsustocontinueouroperat