FY2023 Activity Results (Isuzu Group)

FY2023 results:
[Japan] Total CO₂ emissions 494,000t-CO₂

Both in Japan and overseas, each Group company has set its own reduction targets and is actively engaged in CO₂ emission-reduction activities.
In FY2021, energy consumption decreased significantly throughout the Group as a whole due to the suspension of operations in response to measures to prevent the spread of COVID-19. In FY2022 and beyond, as economic activities recover and production resumes, energy consumption is increasing due to the resurgence, resulting in a rise in energy usage as well. Additionally, with UD Trucks newly joining the Isuzu Group in FY2023, the CO₂ emissions of all domestic production-related Group companies increased by approximately 10% compared to FY2022.
Given anticipated changes in future societal conditions and the expected increase in energy usage, we are committed to pursuing further energy efficiency and operational improvements.
We will continue our efforts to reduce energy consumption by promoting more efficient facility operations and introducing energy-saving equipment when new facilities are installed. Alongside that, we will actively promote the adoption of renewable energy, aiming to decrease energy consumption and achieve both energy efficiency and cleaner operations. This way, we work towards reducing CO₂ emissions.

[Japan & Overseas] Trends in CO₂ Emissions

FY2023 results:
[Japan] Total waste generated　99,362t

Each Group company, both in Japan and overseas, has set its own reduction targets and is actively engaged in activities to reduce waste emissions.
In FY2021, the volume of waste generated from production activities decreased significantly due to the shutdown of operations to prevent the spread of COVID-19.
Since FY2022 and beyond, due to the recovery of economic activities and the resurgence of production, the amount of waste discharge has been increasing. Furthermore, the infection control measures taken by employees generated waste that had not been anticipated. Additionally, with UD Trucks newly joining the Isuzu Group in FY2023, the total waste emissions of domestically related group companies increased by approximately 8% compared to FY2022. We will implement measures such as the further promotion of recycling and review of production methods that generate less waste.

[Japan] Trends in Waste Generation

FY2023 Activity Results (Isuzu)

In the past, Isuzu operated its environmental management structures on a site-by-site basis. With the revision of ISO 14001 in FY2016, the systems were integrated on a Group-wide basis. In December 2016, we expanded ISO 14001 certification to all Isuzu sites, and shifted to ISO 14001:2015.
At present, Isuzu is carrying out uniform environmental initiatives at all sites. Moreover, all companies of the Group work together to reduce the environmental burdens resulting from our business operations and to bolster our environmental management.

Violations and Accidents Related to Environmental Laws and Regulations in FY2023

Isuzu had no violations or environmental accidents related to environmental laws and regulations during FY2023.

• Medium- and long-term target
  Reduce CO₂ emissions from business activities to 205,630 t-CO₂ or less by the end of FY2024
• Targets and results for FY2023
  Target: Reduce CO₂ emissions from business activities to 214,560 t-CO₂ or less by the end of FY2023
• Result: 188,592 t-CO₂

In efforts to reduce the energy consumption and mitigate total CO₂ emissions, both the Fujisawa and Tochigi Plants have continuously put in place measures to enhance efficiency, such as reviewing the production conditions and streamlining production lines. Moreover, we are utilizing clean electricity generated from renewable energy sources such as solar and hydro power for a portion of our purchased power, and we are further expanding the adoption of renewable energy. Additionally, we are increasing the installation of in-house solar panel systems. As of March 2023, we have newly installed approximately 1.1MW of photovoltaic power generation systems on the roof of the third building at Tochigi Plant Building No. 3. As a result, it is anticipated that the annual CO₂ emissions will be decreased by approximately 670 t-CO₂.

Furthermore, in the transportation sector, we are striving to reduce our CO₂ emissions by promoting a modal shift in the distribution of parts and products, and by involving all Group companies in logistics activities to enhance transportation efficiency.

Trends in CO₂ Emissions from Energy

Trends in CO₂ Emissions from Logistics

Trends in Energy Consumption

Reduce and Control Emissions

• Medium- and long-term target
  By the end of FY2024, reduce the amount of waste generated by our business activities to 6,290 tons or less, and strive to optimize all emissions
• Targets and results for FY2023
  Target: By the end of FY2023, reduce waste generated from business activities to 7,700 tons or less, and strive to optimize all emissions
  Result: 6,894 tons

In addition to encouraging the effective use of waste generated from its business operations, Isuzu takes step to reduce and mitigate waste which includes valuable waste.
Isuzu has already achieved zero emissions with no landfill disposal since FY2012.
Additionally, since FY2020, we have worked on activities to optimize plastic use as part of our efforts to combat the problem of marine plastic pollution. From FY2024, we are working towards reducing industrial waste related to plastic usage by establishing new reduction targets based on the "Act on Promotion of Resource Circulation for Plastics" and other relevant laws. Due to the characteristics of Isuzu's products, it is unlikely that marine plastic pollution is generated from our waste products. However, our business activities, particularly in the manufacturing process, involve the use of plastics in various ways. Isuzu promotes the responsible use of plastic products and the reduction of emissions by reviewing single-use and other measures.

Trends in Waste Generation

Trends in Plastic Product Waste Emission

Isuzu Motors began its initiatives in FY2022 to establish goals for reducing and recycling industrial waste emissions from plastic products. This move is in accordance with the "Act on Promotion of Resource Circulation for Plastics," as the company's plastic product industrial waste emissions exceeded 250 tons. In FY2023, our primary focus is conducting a survey to assess the actual state of waste emissions. Additionally, we are considering measures to further enhance the acceleration of emission reduction and recycling, which we have been consistently implementing.

Trends in Recycling Performance Based on Automobile Recycling

Reduction of Water Consumption

• Medium- and long-term target
  Reduce water consumption in business activities to 2,330,900 tons or less by the end of FY2024
• Targets and results for FY2023
  Target: Reduce water consumption in business activities to 2,336,900 tons or less by the end of FY2023
  Result: 2,162,872 tons

Isuzu uses a large amount of water in vehicle manufacturing, plant maintenance, wastewater treatment, and other processes. To preserve our limited water resources, Isuzu promotes the reuse of water employed in business processes, along with the use of treated wastewater. We are also working to reduce water consumption and utilize rainwater.

Trends in Water Resource Consumption

Control Chlorofluorocarbon Emissions

In response to the Act for Control of Chlorofluorocarbon Emissions (Act on Rational Use and Proper Management of Fluorocarbons) effective from April 2015, Isuzu is promoting proper refrigerant management for business-use refrigeration air conditioning equipment and other equipment using chlorofluorocarbons at all of its bases, and is implementing inspections of all such equipment.
While this act requires business operators to report if their estimated leakage of chlorofluorocarbon exceeds 1,000 tons-CO₂/year, Isuzu has verified that its leakage volume for FY2023 was lower than this level.

Reduction of VOC Emissions

• Medium- and long-term target
  Maintain VOC emissions per painted area of 19.2 g/m² or less in the cab painting process
• Targets and results for FY2023
  Target: Maintain VOC emissions per painted area of 19.2 g/m² or less in the cab painting process
  Result: 18.2 g/m²

Isuzu is reducing emissions through the recovery of volatile organic compounds (VOC), has reduced VOC emissions from its plants and reviewed and improved its painting processes, which entail particularly large VOC emissions.
This activity is promoted through voluntary efforts to reduce VOC emissions by the Japan Automobile Manufacturers Association, Inc.

Trend in Total VOC Emissions

Managing Land Contamination

To prevent health hazards resulting from land contamination, Isuzu surveys land contamination conditions based on the Soil Contamination Countermeasures Act and ordinances whenever it performs construction of a certain scale or constructs a new building.
In FY2023, no projects requiring investigations of soil contamination were implemented. Isuzu will continue efforts to unfailingly investigate pollution in its construction projects and will take appropriate measures where necessary.

Proper Management of Emissions and Wastewater

By properly maintaining boilers and other smoke-generating facilities, we ensure that the amount of air pollutants from emissions such as NOx (nitrogen oxides) and SOx (sulfur oxides) is within regulatory standard values^*.
Further, wastewater from our plants is processed in a wastewater treatment facility before being discharged to sewer systems or public water areas. The discharged water is analyzed on a regular basis to ensure that it is within regulatory standard values.

Fujisawa Plant: 8 Tsuchidana, Fujisawa City, Kanagawa Prefecture

Air

Water Quality Discharge Destination: Hikiji River

Tochigi Plant: 2691 Hakuchu, Ohira-Machi, Tochigi City, Tochigi Prefecture

Air

Water Quality　Discharge Destination: Nagano River

Replies to CDP2022

With an aim of properly disclosing its measures on climate change, Isuzu has provided information since FY2017 to the CDP, an organization that evaluates corporate efforts related to climate change.
Our score for CDP2022 was B. Since FY2018, in addition to climate change, Isuzu has also responded to Water Security and since FY2019 to Forest, widely disclosing its environmental management activities. Isuzu will continue to raise the level of its activities in this regard and information disclosure.

Third-Party Audits of Environmental Data

As demand for transparency and reliability in environmental information grows, Isuzu has been conducting third-party audits of its environmental data since FY2018. In FY2022, concerning CO₂ emissions, we expanded the scope to include the Group company, IJTT, and conducted an audit in accordance with ISO 14064-3. Additionally, for waste and water resources, an audit was conducted in accordance with ISAE 3000, and the verification process was successfully finalized. In FY2023, the implementation schedule was expedited to promptly disclose the results. Concerning Isuzu's CO₂, new measures were concentrated on Category 11 of Scope 1, Scope 2, and Scope 3, as well as waste and water resources. The third-party assurance in accordance with ISAE 3410 for CO₂ and ISAE 3000 for waste and water resources, ensuring compliance with environmental data verification, was conducted and successfully completed.
We will remain aware of the importance of environmental data and will disclose such data in a reliable manner.

Participation in the GX League

Isuzu Motors aligned with the "GX League Basic Concept" newly introduced by the Ministry of Economy, Trade and Industry in FY2023, and became a participating company in the GX League. Subsequently, in FY2024, we have decided to take part in the newly established "GX League" and have become a participating company in the GX League starting from May 15th. Isuzu will continue to collaborate with industry, academia, and government stakeholders to advance the transformation of the entire economic and social system toward carbon neutrality (GX: Green Transformation), thereby contributing to the realization of a carbon-neutral and sustainable society in the future.

Participation in Project for Arrangement of Infrastructure for Environmental Information Disclosure

Since FY2017, Isuzu has been participating in the Ministry of the Environment’s Project for the Arrangement of Infrastructure for Environmental Information Disclosure with the aim of promoting dialogues with investors and other stakeholders. We publish our environmental information on the project’s portal site.
Participating in this project has enabled us to have more frequent individual dialogues with investors and other entities, helping us to promote our environmental initiatives.

Isuzu Eco-activities

In July 2021, Isuzu published an environmental leaflet, Isuzu's Eco-Katsu (Eco-Activities), to inform stakeholders about the various environmental activities Isuzu is implementing.
In addition to being available on the Internet, the printed version is also available for elementary school students on social studies tours and families visiting Isuzu Plaza to read at their leisure. The leaflet has been well received by employees who can easily understand the activities thanks to the easy-to-understand summaries provided. Volume 2 was published in February 2022. We will continue to make Isuzu's environmental activities known to as many people as possible through regular publications and updates.

To conduct environmental activities efficiently and continuously, Isuzu has calculated the costs and effects of environmental conservation.
We have disclosed information with the aim of helping to make management decisions for carrying out efficient investments in environmental activities, and as an evaluation index for businesses as well.

Environmental Conservation Costs

Total investment was 22,514 million yen, a 19,652 million yen increase YOY.
Total expenses were 48,679 million yen, a 2,503 million yen increase YOY.
Details are shown in the table below.

(Target Period: April 1, 2022 to March 31, 2023)

Environmental Conservation Effects

(Period: April 1, 2022 to March 31, 2023)

Primary Environmental Impact of Isuzu

GHG emissions

Material Flow

Calculation Standards

Calculation Period	FY2023 (April 2022 - March 2023)
Metrics Calculation Scope	Non-consolidated: ISUZU MOTORS LIMITED
	Consolidated: ISUZU MOTORS LIMITED and its domestic and overseas subsidiaries

Energy Usage	Scope	Units	Calculation Standards
Electricity Usage, Fuel Usage, and Heat Usage	Non-consolidated	GJ	Total energy usage of electricity, fuel (city gas, liquefied natural gas, diesel oil, etc.), and heat (steam, chilled water) [Calculation Standards] The Act on Promotion of Global Warming Countermeasures (Global Warming Prevention Law), and the Basic Policy on the Rationalizing Use of Energy and Shifting to Non-fossil Energy (Energy Conservation Law) [Calculation Method] Energy Usage = Usage Amount × Heat Conversion Factor*1 *1Heat Conversion Factor: Act on the Rational Use of Energy Periodic Report and Medium to Long-Term Plan (Specific Operators, etc.) Filing Guidelines.

Greenhouse Gas (GHG)	Scope	Units	Calculation Standards
Scope1	Non-consolidated	t-CO2	CO2 emissions from fuel usage [Calculation Standards] GHG Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Global Warming Prevention Law, Energy Conservation Law. [Calculation Method] Scope 1 Emissions = Each Fuel Usage × CO2 Emission Factor*1 *1CO2 Emission Factor: Ministry of the Environment "List of Calculation Methods and Emission Factors for the Reporting System"
Scope2	Non-consolidated	t-CO2	CO2 emissions from externally supplied electricity and heat [Calculation Standards] GHG Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Global Warming Prevention Law, Energy Conservation Law. [Calculation Method] Scope 2 Emissions (calculated based on market standards) = Electricity & Heat Usage × CO2 Emission Factor*1 *1CO2 Emission Factor (Heat/Electricity): Ministry of the Environment "List of Calculation Methods and Emission Factors for the Reporting System" / "Emission Factors by Electricity Providers"
Scope3 Category 11 (The use of sold products)	Non-consolidated	t-CO2	CO2 emissions from the use of sold products (vehicles, engines) [Calculation Standards] GHG Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard, [Calculation Method] 1) Vehicles CO2 Emissions = Annual Fuel Usage*1 (L) × Sales Volume (units) × Average Years of Use*2 (years) × CO2 Emission Factor for Fuel Usage*3 *1Annual Fuel Usage = Annual Driving Distance ÷ Fuel Efficiency Translates to "Annual Driving Distance: Refer to the Ministry of Land, Infrastructure, Transport and Tourism's "Survey on Motor Vehicle Transport" Fuel Efficiency: Refer to the Ministry of Land, Infrastructure, Transport and Tourism's 'List of Automobile Fuel Efficiencies' *2Average Years of Use: Refer to the 'Initial Registration Year Performance of Collected Vehicles' published by the Japan Automobile Recycling Promotion Center (JARC) *3CO2 Emission Factor for Fuel Usage: Refer to the Ministry of the Environment's "List of Calculation Methods and Emission Factors for the Reporting System" 2) Engines CO2 Emissions = Representative Product's CO2 Emissions During Use*4 (t-CO2) × Sales Volume (units) × Allocation Ratio*5 *4CO2 Emissions During Use of Representative Product (Construction Machinery) in t-CO2: Refer to the Ministry of the Environment's 'Technical Guide for Calculating Greenhouse Gas Emissions in Road Construction Projects (Draft)' *5The allocation ratio is based on the weight proportion of the engine in the representative product

	Scope	Units	Calculation Standards
Water Usage	Non-consolidated	thousand m3	Total Water Usage (tap water, groundwater, industrial water) [Calculation Standards] Isuzu Group Environmental Activity Guidelines [Calculation Method] Based on the calculation standards, the following values are aggregated. Tap water & industrial water: Usage amount as per the invoice. Groundwater: Measured values based on meters or similar devices managed according to measurement laws. Reference Legislation, etc.: Ministry of the Environment 'Environmental Reporting Guidelines'

	Scope	Units	Calculation Standards
Waste generation	Non-consolidated	thousand t	Total Emissions of Industrial Waste and General Waste [Calculation Standards] Isuzu Group Environmental Activity Guidelines [Calculation Method] Aggregated figures and other data are based on the calculation standards and are recorded in the manifest. Manifest: Control manifest for industrial waste as stipulated by the Waste Management and Public Cleansing Act (Waste Management Law) Reference Legislation, etc.: Waste Management Law

Independent Assurance Report (PDF)