Products and Services

Business Activities

• Management Structure

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.

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

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:

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.

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.

EVision

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.

• EVision

Development and Diffusion of Next-generations Vehicles

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.

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).

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.

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.

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

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

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.

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.

Happiness Green Earth Project