1. Sustainability TOP
  2. Environment
  3. Climate Change Measures

Climate Change Measures

Basic Approach

Products and Services

We will aim for zero greenhouse gas (GHG) emissions* across the entire life-cycle of Isuzu Group products by 2050
*Zero GHG emissions: Net zero balance of GHG emissions and absorption

Business Activities

We will aim for zero greenhouse gas (GHG) emissions* arising directly from Isuzu Group operations by 2050
*Direct GHG emissions from business activities: Scope1+Scope2

Management Structure

Science-Based Target Setting

Isuzu aims to minimize the risks and maximize the opportunities associated with climate change. To achieve a reduction in GHG emissions in line with the Isuzu Environmental Vision, Isuzu has developed the 2030 Environmental Roadmap, which considers the various measures appropriate for the Group’s current operations. To move toward achieving carbon neutrality for society as a whole, Isuzu supports the Paris Agreement's goal of limiting global temperature rise to within 1.5℃ and is progressing with science-based target setting to achieve this objective. As part of this effort, in 2022, Isuzu approved the international Science-Based Targets (SBT) Initiative in which we committed to aligning our business activities with the goals of the Paris Agreement. We will further clarify our climate change strategy in the future and continue working to become a sustainable company that contributes to a decarbonized society.

Strategy Relating to Climate Change

Many different natural disasters, linked to climate change, are significantly affecting our society and addressing climate change has become a globally recognized urgent and top-critical issue. Based on this awareness, carbon-neutral strategies are rapidly being introduced in Japan and many other countries. The move toward a decarbonized society is gaining momentum worldwide. Isuzu views the response to climate change as an opportunity for growth and has intensified its commitment to the issue. Isuzu performed scenario analysis and specified risks and opportunities on the basis of its long-term environmental scenario up to 2050, based on the IPCC’s climate scenario and the social economy scenario created by the IPCC and IEA. As a result, the global climate change also leads to frequent natural disasters that are increasingly severe. This renewed our awareness of the fact that natural disasters may seriously affect Isuzu’s business activities and its products.
Countering climate change requires the satisfaction of tighter environmental regulations and the development of new technologies. Meanwhile, the society is increasingly anticipating the creation of an innovation to help achieve a decarbonized society. Addressing the issue properly will lead us to new business opportunities. To this end, the Isuzu Environmental Vision 2050 regards measures against climate change as one of the priority issues. Across all of Isuzu’s business activities, with a focus on its production operations, the 2030 Environmental Roadmap establishes the target of a 50% reduction in CO2 emissions (Scope 1 + Scope 2) by 2030 (as compared with emissions in FY2014). We also have the Carbon Neutrality Plan for establishing, by 2040, a full lineup of products compatible with the transition to carbon neutrality, and for expanding the mass production and sales of electric vehicles over our major models in 2030. We will invest 1 trillion yen by 2030 to achieve the Carbon Neutrality Plan alongside implementing connected strategies and other initiatives.

Long-term Environmental Scenarios

4℃ Scenario

In the 4℃ scenario, continued reliance on fossil fuel allows climate change to go unchecked. This entails the aggravation of natural disasters. People and nations scramble for availability of fossil fuel, limited resources. This gives rise to wider gaps and a trend toward anti-globalization, rendering international governance dysfunctional. In the scenario, progression of climate change brings about an undesirable society that is prone to disaster and economically stagnant.

1.5℃ Scenario

In the 1.5℃ scenario, regulations on GHG emissions are tightened and, because of technological innovation and other factors, the rise in temperature is kept at 1.5℃ or smaller.This would make the society carbon-neutral. Tighter regulations and advance of technological innovation would greatly change our social and industrial structure.
Isuzu performed a scenario analysis based on IEA's scenario (e.g.2DS/B2DS/SDS). The 1.5℃ scenario would bring significant changes to Isuzu's products depending on their usage, and to our business activities.

By type of vehicle
  • Forsmall commercial vehicles to support short-distance, small-quantity transportation, EVs and other next-generation, power-train vehicles are increasingly developed and offered
  • Electrification and other trends emerged in mid to-to large-sized commercial vehicles.
  • Internal-combustion engines will continue to play significant roles in mid- and large-sized commercial vehicles which support long-distance, large-quantity transportation.
Utilization of sustainable, decarbonized clean energy
  • We need to develop and market power trains with much greater fuel efficiency and smaller energy loss than conventional ones and the products equipped with such power trains.
  • We are currently conducting a demonstration test of automatic driving, platooning and full-trailer trucks, all of which have become popularized.
  • More efficient means of transportation become common.
Business Activities
  • In production and other business activities, we transition to decarbonized clean energy.
  • We thoroughly practice minimization of resource input and efficient use of emissions with an aim to achieve carbon neutrality.

Risks and Opportunities

Risks brought by climate change are divided into transition risk and physical risks: the former accompanies a transition to a decarbonized society while the latter takes such forms as the aggravation of natural disaster and may exert physical impacts.
The climate change risks and opportunities anticipated in Isuzu's operations are as follows:

Classification Risks Opportunities Action Impact on our operations
Risks and opportunities associated with transition to a decarbonized society
  • Decrease in our market share due to delay in reacting to tighter environmental regulations
  • Increase in demand for zero-emission vehicles
  • Advance the efforts to establish a full lineup compatible with the transition to carbon neutrality
  • Increase in development and production costs for building compatibility with diverse power trains such as those for EVs and FCVs
  • Expansion of open innovation
  • Widespread use of reasonably priced clean energy
  • Utilization of alliance in pursuing efficient, collaborative development
  • Switching to reasonably priced clean energy to achieve low-carbon operations and reduce costs
  • Shrinkage of market of internal combustion vehicles using fossil fuel
  • Using next-generation fuel (carbon-neutral fuel) to utilize existing internal-combustion technologies and infrastructure
  • Decline in our brand power due to the incapability to address diverse needs of logistics infrastructure
  • Increase in needs for automatic driving, platooning and full-trailer trucks
  • Creation of logistics innovation contributing to carbon neutrality through co-creation with customers
  • Increase in energy costs and in reputational risks due to delays in the introduction of GHG reduction measures and renewable energy in our business operations overall
  • Early introduction of renewable energy to reduce costs and boost our corporate image
  • Expansion of introduction of renewable energy
  • Continued encouragement of energy-saving activities to reduce energy costs
Risks and opportunities concerning phenomena such as the aggravation of natural disasters and depletion of water resources
  • Damage to business operations due to the rising occurrences of abnormal weather (e.g. flood, typhoon)
  • Increase in demand for disaster-proof vehicles
  • Expansion of needs for infrastructure services resistant to natural disasters
  • Providing disaster-proof vehicles
  • Repair of flooded vehicles
  • Expansion of BCP to strengthen our corporate culture

Information Disclosure Based on the TCFD Recommendations

Isuzu is committed to the disclosure of climate change-related information in line with the framework recommended by the TCFD.
For the specific recommended disclosure items, see the relevant page.

Recommended disclosure item Page
Governance a) Explain the system for the organization’s board of directors to supervise efforts to address climate-related risks and opportunities.
b) Explain the roles of management in the evaluation and management of climate-related risks and opportunities.
Strategy a) Explain the short-, medium- and long-term climate-related risks and opportunities identified by the organization.
b) Explain the impact of climate-related risks and opportunities on the business, strategic and financial planning of the organization.
c) Explain the impact of many different scenarios such as the 2 °C scenario on business, strategic and financial planning.
Risk Management a) Explain the process the organization uses to identify and evaluate climate-related risks.
b) Explain the process the organization uses to manage climate-related risks.
c) Explain how the process the organization uses to identify, evaluate and manage climate-related risks is integrated into the organization’s general risk management.
Indicators and Targets a) Disclose the indicators used to evaluate climate-related risks and opportunities in line with the organization’s strategy and risk management processes.
b) Disclose greenhouse gas (GHG) emissions and related risks in Scope 1, Scope 2 and, if applicable, Scope 3.
c) Disclose the goals the organization uses to manage climate-related risks and opportunities and its track record for the achievement of the goals.


Products and Services

Efforts to Achieve Carbon Neutrality

To realize a decarbonized society, the achievement of carbon neutrality is the highest-priority social issue. Isuzu is thus aggressively pursuing carbon neutrality.
The achievement of carbon neutrality by 2050 requires that Isuzu successfully shift to carbon neutrality by shifting from fossil-fuels to carbon-neutral energy sources to power all of its new vehicles that will be available worldwide before that time. For that purpose, Isuzu is strongly pushing forward with its development of electric cars with a view toward mass production. In 2023, we released a mass-produced battery electric vehicle (BEV) as part of our new ELF model series, adding it to our new product lineup. Furthermore, we are conducting experiments on the introduction of FCVs in wider society to identify the technologies. At the same time, we are preparing to introduce some of these products to the market. We are assuming there will be situations where, for commercial vehicles, internal combustion engines will continue to be necessary. So we will continue to develop high-performance internal combustion engines, including hydrogen internal combustion engines, as we prepare for future carbon-neutral fuels such as biofuels and renewable energy-derived synthetic fuels.


Isuzu has launched a total solution program called "EVision" to support commercial EV adoption, resolve implementation challenges, quantify the effects of the decarbonization initiatives, and formulate further decarbonization proposals in a plan-do-check-act (PDCA) cycle to achieve carbon neutrality for customers.

Various issues may arise when customers seek to introduce commercial EVs relating to battery charging facilities, electricity prices, and quantifying the benefits of lowering vehicles’ environmental burden. Through EVision, Isuzu will address these issues by providing solutions at each phase of EV adoption from the initial review of commercial EV introduction to actual introduction and post-introduction.

Development and Diffusion of Next-generations Vehicles

Light Electric Truck
In 2019, we started monitoring the use of the light electric truck for home deliveries, deliveries to convenience stores, and waste collection. As we verify the economic rationality and convenience of the truck, a new battery electric vehicle (BEV) was added to the product lineup in March 2023 with the release of the new ELF model.
The new ELF's BEV can flexibly adapt to users’ needs by aligning its functionality with that of diesel vehicles.

Light Electric Truck

Heavy-duty Fuel Cell Truck
The collaborative development with Honda R&D Co., Ltd. began in 2020. A heavy-duty fuel cell truck is being developed and a monitoring program for the truck will begin in FY2024. Additionally, in May 2023, we signed a new contract to act as a development and supply partner for the fuel cell system scheduled for introduction in 2027. These efforts will contribute to the goal set by the Japanese government of introducing 5,000 electric heavy-duty commercial vehicles by 2030.

Heavy-duty Fuel Cell Truck

Light Fuel Cell Truck
In 2021, we launched a joint project called Commercial Japan Partnership Technologies (CJPT). Through this project, we will cooperate in efforts for the social implementation of hydrogen technology in Fukushima Prefecture. In 2023, we also participated in projects in Tokyo Metropolis.

Light Fuel Cell Truck

BEV Full-flat Route Bus
To meet the need for zero-emission public buses, we are developing BEV full-flat Route buses with the aim of starting production in FY2025.

North American Medium-duty Electric Trucks
As part of the Isuzu Cummins Powertrain Partnership Agreement, a prototype vehicle equipped with a Cummins electric system was built and monitoring is being conducted. We will proceed with the verification of convenience and performance for future product development.

North American Medium-Duty Electric Trucks
Working toward Next-generation Fuels

Isuzu recognizes that the use of next-generation fuels such as carbon-neutral synthetic fuels and biofuels (CN fuels) in vehicles is a technical issue that should be addressed at the same level as electrification to realize a carbon-neutral society. Carbon-neutral synthetic fuels are CN fuels refined from hydrogen that is, in turn, refined from renewable energy sources and carbon dioxide from the atmosphere or emitted by factories using a synthetic process powered by renewable energy. Biofuels are made from biomass that absorbs CO2 from the atmosphere. They can also be CN fuels when renewable energy is used in the refining process. Japanese government subsidies have been made available for carbon-neutral synthetic fuels, including for the development of refining technology for social implementation. Society can expect the following benefits from the successful introduction of CN fuels.

  • Utilization of existing internal-combustion engine technologies
  • Immediate contribution to the achievement of carbon neutrality as soon as supply begins (utilization in already available vehicles)
  • Utilization of existing fuel supply infrastructure such as existing fuel stations

In preparation for the social implementation of CN fuels and to accelerate its adoption, we are engaging in activities such as assessing and improving the conformity of vehicles and conducting demonstration tests to evaluate performance, durability, reliability, and other properties. Additionally, we are identifying issues and proposing improvements regarding fuel quality and other related matters. Moreover, we will actively participate in and vigorously advance efforts to promote CN fuels alongside our initiatives to engage with CN fuel manufacturers. We will also be actively involved in the establishment of systems that do not require additional investments in the distribution process, such as supply and sales, which the Japanese government and other entities are working on. Commercial vehicles serving people and their logistics needs, the products that Isuzu manufactures, are available in many different types and are used in many different situations and environments. Some of these vehicles may be hard to electrify. The utilization of CN fuel in these vehicles can accelerate the shift to carbon neutrality. Commercial vehicles are global products that are sold worldwide. Depending on national or regional situations, however, it may be difficult to switch to electric vehicles. In these situations, the use of already available vehicles will continue. In these countries and regions, the availability of CN fuels with the potential to leverage the existing fuel-supply infrastructure would effectively facilitate carbon neutrality.
In April 2021, Isuzu set up a department to advance and accelerate the utilization of CN fuels and has been promoting their aforementioned broad range of applications. In April 2023, we established a department to oversee and promote the CN strategy, further strengthening our efforts and expanding our promotion activities. In pursuit of a globally carbon-neutral society, Isuzu will continue to encourage the use of CN fuels. At the same time, it will accelerate the future of transport.

Business Activities

Use Less Energy

We will continue to implement energy conservation initiatives throughout our business activities and our activities to reduce energy consumption by streamlining processes, reviewing and optimizing the operations of facilities, etc., and visualizing energy consumption at all Group companies.
We are producing substantial results throughout the Isuzu Group through our review of our conventional ways of using energy to identify more opportunities to conserve energy and deploying these solutions across our companies.
Furthermore, the Isuzu Group supports climate-related regulations such as the "Basic Policy on the Rationalizing Use of Energy and Shifting to Non-fossil Energy (Energy Conservation Law)" and the "Act on Promotion of Global Warming Countermeasures (Global Warming Prevention Law)" in the case of domestic regulations and responds appropriately through various reports to government agencies based on laws and policies.

Efforts to Increase the Environmental Friendliness of Our Dealers’ Sites

Isuzu is trying to increase the environmental friendliness of its sites through proactive efforts such as the installation of LED lighting and skylights and the introduction of reusable energy systems when renovating or building new sales bases. Our newly built sites employ an effluent treatment system using microorganisms to prevent environmental pollution which may result from the wastewater generated during vehicle maintenance or washing. In such a way, we are promoting the transition to water treatment facilities that are more environmentally conscious than the existing ones.

Creating Clean Energy

To actively generate clean energy through the proactive introduction of renewable energy, a new 1,156 kW solar power generation facility was installed at the Tochigi Plant in FY2023. Additionally, Isuzu Group companies in Thailand are currently installing large photovoltaic power generation systems. In and after FY2019, Isuzu Motors Co., (Thailand) Ltd., Isuzu Engine Manufacturing Co., (Thailand) Ltd., and Isuzu Logistics (Thailand) Co., Ltd. installed solar panel systems capable of a total output of 3,460 kW. Other Group companies in Thailand are similarly planning to introduce energy-saving equipment and photovoltaic power generation systems.

Tochigi Plant
Tochigi Plant
Switching to Clean Energy

For energies used at business sites, we will sequentially switch to clean energy derived from renewable sources.
Since FY2020, Isuzu has utilized the Aqua Premium rate plan, which applies 100% hydroelectric power to a portion of the electricity purchased from TEPCO Energy Partner, Inc.
Through this plan TEPCO Energy Partner, Inc. sells the CO2-emission-free electricity that it generates hydroelectrically, offering an option for customers who want a portion of the electricity they purchase to be carbon-free.
Additionally, in FY2023, Isuzu started purchasing electricity with non-fossil certificates and expanding the purchase of electricity derived from renewable energy sources. Isuzu will continue to utilize various mechanisms to further expand its use of clean energy. In FY2023, approximately 12% of Isuzu’s electricity consumption was decarbonized. As for fuels, clean energy technologies such as electricity have not been established yet. Given the above, Isuzu began using carbon-neutral LNG as part of the fuel used at its factories in FY2022. Carbon-neutral LNG is liquefied natural gas that offsets the GHG emissions generated during the entire process from natural gas extraction to combustion using CO2 credits (carbon offset), resulting in no net CO2 emissions on a global scale even when the gas is burned. The CO2 credits are voluntary credits issued by internationally reputable organizations, and are the result of projects that meet the procurement requirements, quality standards, and other criteria of the adoption destination, ensuring that they have no significant adverse effects on the region or ecosystems. Isuzu will continue to utilize various clean energy mechanisms and expand the introduction of clean energy in the future.

Reducing CO2 Emissions in Logistics Processes

Isuzu is reducing the CO2 emissions in its logistics processes at the target rate of 1% per year by reviewing the routes it uses to transport parts, promoting fuel-efficient driving during transportation, and adding more shipping routes to increase marine transportation (modal shift).

Modal shift for product vehicle transportation
Main Initiatives for the Reduction of CO2 Emissions
  • Improved transportation efficiency as a consequence of efforts such as the thorough implementation of load-based truck transport management
  • Increased use of returnable racks that can be folded during return
  • Increased trailer transportation and increased container fill rates

In 2020, a new parts center was added next to the Tochigi Plant, centralizing all of the warehouses that had been scattered around the surrounding area. This centralized transportation between warehouses and improved logistics efficiency. Further, an elevated bridge was installed between two existing parts center warehouses enabling truck transportation to be replaced by automated tractors, which further reduced CO2 emissions.

Increasing Container Round Use

Isuzu works on the Container Round Use (CRU) system which diverts empty import containers to be used as export containers. The increase of CRU eliminates the need to transport empty containers, which reduces the CO2 emissions from transportation and can also ensure the availability of containers.
This helps to stabilize logistics.

Introduction of Biomass Materials

The Isuzu Group has introduced biomass materials containing sugarcane-derived bio-based "Green Polyethylene (Braskem)" to the packaging materials for KD shipments to overseas assembly plants. The main raw material of Biomass materials, sugarcane, absorbs CO2 through photosynthesis during its growth process, offsetting the CO2 emissions generated by its disposal and incineration.
Since FY2018, we have switched the production of approximately 9 million A4-size polyethylene bags, which are the most commonly used bag type, from petroleum-based to plant-based sources, resulting in a reduction of approximately 7% in the CO2 emissions generated by their manufacture. We subsequently expanded the use of plant-based materials to other sizes of polyethylene bags, and as of FY2024, all 10 sizes of polyethylene bag are now made of biomass materials. Additionally, starting from FY2023, all 16 sizes of bubble wrap cushioning materials are now fabricated in biomass materials containing approximately 15% bio-based content, resulting in a reduction of approximately 5% in CO2 emissions. As of FY2024, we have reduced our overall biomass material emissions by approximately 120 tons of CO2 per year. Moving forward, we will continue to promote the transition from petroleum-based packaging materials to plant-based packaging materials and aim for a GHG emission-free lifecycle for packaging materials.

Bio bubble wrap cushioning materials
Bio bubble wrap cushioning materials
(On the right is the bio-based bubble cushioning wrap material, and on the left is the conventional bubble cushioning wrap material made from petroleum-derived plastic.)
Organizing of Green Sales Activities

Isuzu dealerships are doing all they can for the environment in every aspect of their business activities. They are continuously working to implement all possible environmental activities, including the selection of hybrid vehicles and other environmentally friendly vehicles for use as company cars, implementing Cool Biz and Warm Biz campaigns, and taking part in local cleanup activities.
Dealerships are also promoting efforts to reduce carbon dioxide emissions at sales offices and service centers, further promote the use of recycled automobile parts, etc., and promote proper waste management. To this end, we are working toward acquiring certification as an environmentally friendly auto body shop, which is awarded to business sites that are actively engaged in environmental measures and comply with related laws and regulations. In FY2023, two sites received the Branches Director's Award.

New Branches Director's Award won by
Mie Isuzu Motor Co Ltd. Ueno Sales Office
Mie Isuzu Motor Co Ltd. Ueno Sales Office
Mie Isuzu Motor Co Ltd. Nansei Branch
Mie Isuzu Motor Co Ltd. Nansei Branch
Holding Fuel Efficient and Safe Driving Seminars

Considering the life cycle of Isuzu products, the majority of CO2 emissions comes from product (vehicle) use.
The Isuzu has been holding seminars on fuel-efficient and safe driving in Japan and overseas since 1995, to provide Isuzu vehicles’ buyers with tips on fuel-efficient driving in accordance with the performance of their vehicles.

Seminar Participation over the Past 3 Years
Courses Number of participants
FY2023 65 885
FY2022 60 1,128
FY2021 54 884
Fuel-efficient and safe driving seminar
Fuel-efficient and safe driving seminar
Efforts with Our Business Partners

Up to the present, Isuzu has been collaborating with business partners on carbon reduction activities by following the "Isuzu Green Procurement Guideline" as the foundation for initiatives such as "Environment Activity Seminars." In December 2022, Isuzu revised the "Isuzu Supplier Sustainability Guidelines" and added requests for compliance with environmental regulations and efforts to reduce greenhouse gas (GHG) emissions. We kindly ask our business partners to sign an agreement as confirmation of compliance with the Guidelines' requirements. In FY2023, we joined the CDP Supply Chain Program and have been strengthening our collaboration with our business partners by advancing efforts related to climate change and GHG emissions tracking. We will continue to advance efforts to achieve decarbonization throughout the entire supply chain.

Efforts Toward Achieving Carbon Neutrality in Thailand

There are various approaches to achieving carbon neutrality depending on the conditions and characteristics of a country or region. In April 2023, Isuzu Motors, together with Commercial Japan Partnership Technologies Corporation (CJPT), is collaborating with the Charoen Pokphand Group and the Siam Cement Group to advance collaboration toward achieving carbon neutrality in Thailand by promoting unique carbon-neutral initiatives tailored to the country. To initiate these efforts, we have organized carbon-neutral mobility test drives. We will now expand the scope of the collaboration and continue to work on Thailand's unique carbon-neutral initiatives, leveraging resources in the energy, data, and mobility sectors. Furthermore, to further accelerate CJPT's efforts toward carbon neutrality in Asia, we will establish a new subsidiary called "CJPT-Asia" (tentative name) in Thailand as soon as the necessary procedures and preparations are in place. Through this subsidiary, we aim to share our commitment with like-minded partners and cooperate extensively to achieve carbon neutrality.

Experience of test-driving at the carbon-neutral mobility event
Experience of test-driving at the carbon-neutral mobility event.
Reforestation Activities in Thailand

The reforestation project launched in Thailand as the "Happiness Green Earth Project" reached its 10th year in 2022. On this occasion, 372 members of various Isuzu Group companies planted approximately 2,000 trees. Additionally, in 2022, we registered with the greenhouse gas emission reduction program set by the Thai government and have since obtained certification for carbon credits. This project contributes to achieving carbon neutrality through ESG-focused management and has led to increased environmental conservation awareness among our employees, including greater respect for biodiversity. Even through small steps, we will contribute to building a sustainable society.

Reforestation Activities in Thailand
Reforestation Activities in Thailand
Reforestation Activities in Thailand

Happiness Green Earth Project