- Sustainability TOP
- Environment
- Climate Change Measures
Climate Change Measures
Basic Approach
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. The Isuzu Group has set the goals of 'Zero GHG emissions from operations' and 'Zero GHG emissions across the product lifecycle' as Aspirations in the Isuzu Environmental Vision 2050. We view addressing climate change as an opportunity for further growth for the Isuzu Group and are advancing various initiatives to achieve these goals. Additionally, Isuzu expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in 2021 and is advancing the development of business strategies to address climate change through scenario analysis.
| Isuzu Environmental Vision 2050 | 2030 Environmental Roadmap | |
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| Aspiration | 2030 Challenge | Global Action |
 Zero GHG emissions from operations |
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 Zero GHG emissions across product |
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Disclosure based on the TCFD framework
Governance
To promote sustainability throughout the entire Group, Isuzu has established the Sustainability Committee, which is chaired by a director and comprises officers responsible for each of our business domains as well as other senior management personnel serving as standing members.
The Sustainability Committee meets regularly (at least four times a year) to deliberate and make decisions on a wide variety of matters pertaining to sustainability, such as risks associated with climate change and the Company's response to human rights and diversity issues. Depending on the level of importance of matters discussed, the contents of the deliberations are reported to the Management Meeting and the Board of Directors as necessary.
Specialized environmental and social subcommittees, each chaired by a relevant standing committee member, have also been established under the umbrella of the Sustainability Committee, wherein detailed discussions are held on individual issues.
In particular, with regard to efforts to achieve carbon neutrality, we have established a system for examining specific response policies and activities and implementing them in practice through the Business Carbon Neutral Promotion Subcommittee, which promotes activities to achieve carbon neutrality in business activities with a focus on production, and the Product Carbon Neutral Promotion Subcommittee, which promotes various activities that contribute to the carbon neutrality of products through decarbonization technologies and decarbonized energy.
Risk Management
Overall risks related to climate change are managed under a Groupwide risk management system led by the Group Chief Risk Management Officer (CRMO). The Sustainability Committee identifies and assesses specific climate change risks and manages the progress of countermeasures based on each risk's potential impact on the Company's businesses.
Metrics and Targets
The Company has established Isuzu Environmental Vision 2050 with the aim of realizing zero greenhouse gas (GHG) emissions throughout the lifecycles of its products by 2050. To this end, we have set a target―as outlined in the 2030 Environmental Roadmap―to reduce the Group's Scope 1 and 2 GHG emissions by 50% from FY2014 levels by 2030.
Furthermore, we endorse the Paris Agreement's aim to limit the global temperature increase to 1.5℃, and we are working to set science-based targets to achieve this goal. As part of this pursuit, we have submitted a letter of commitment to the Science Based Targets initiative in 2022 and will continue our efforts to realize a decarbonized society.
Strategy
Isuzu conducted a scenario analysis under the long-term environmental scenarios of a 1.5℃ and 4℃ rise in temperature compared with pre-industrial revolution levels, and identified the risks and opportunities that climate change poses to the Isuzu Group's business activities and products. Measures to address these risks include compliance with strengthened environmental regulations and the development of new technologies. At the same time, society expects the creation of innovations that contribute to a decarbonized society, and Isuzu recognizes that responding appropriately will lead to new business opportunities.
The Group is working to develop multi-pathway carbon-neutral solutions and reduce direct GHG emissions from our business activities, aiming to become carbon neutral by 2050. Through these efforts, we aim to reduce risks and capitalize on opportunities.
Scenario Analysis
Long-term Environmental Scenarios
4ºC Scenario (RCP8.5*1, SSP3*2)
- Society's dependence on fossil fuels continues, climate change progresses, and natural disasters increase.
- There is a scramble for fossil fuels and anti-globalization advances due to increasing inequality, leading to the dysfunction of international governance.
- Economic stagnation due to vulnerability to disasters is anticipated.
1.5ºC Scenario (RCP2.6*1, SSP1*2、2DS*3)
- A carbon neutral society in which social and industrial structures have changed dramatically due to stricter regulations and technological innovation.
- The Isuzu Group's product lineup is expected to undergo major changes depending on the application, and there will be major changes in business activities.
Products
<Vehicles>
- The development and provision of next-generation powertrains continues for light commercial vehicles that support short distance, low-volume transportation, such as electric vehicles
- New trends such as electrification emerge for medium- and heavy-duty commercial vehicles
- Internal combustion engines continue to play a major role in vehicles that support long-distance, high-volume transportation, such as medium- and heavy-duty commercial vehicles
<Powertrain>
- The use of sustainable, decarbonized clean energies
- A need arises to develop and market energy loss-free powertrains with unprecedented fuel-efficiency, as well as products equipped with such powertrains
Service
- Automated driving, platooning, and full trailer trucks currently undergoing demonstration tests become commonplace
- More efficient transportation methods are routinely used
Business Activities
- The Company switches to decarbonized clean energy in production and other business activities
- The Company minimizes resource input volumes and strictly enforces the efficient use of waste with a view to achieving carbon neutrality
- *1Climate scenario created by the United Nations Intergovernmental Panel on Climate Change (IPCC)
- *2Socioeconomic scenario created by the United Nations IPCC
- *3Socioeconomic scenario created by the International Energy Agency (IEA)
Risks and Opportunities
| Category | Risks | Opportunities | Countermeasures | Level of Impact on Operations | |
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| Risks and opportunities associated with transition to a decarbonized society | Government policy regulations |
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High |
| Technology |
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High | |
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High | ||
| Market |
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High | |
| Reputation |
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Moderate | |
| Material risks and opportunities that arise from increased natural disasters, depleted water supplies, and other such events |
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High | |
Initiatives
Products and Services
To achieve zero greenhouse gas (GHG) emissions across the entire lifecycle of Isuzu Group products by 2050, the Isuzu Group aims to make all new vehicle lineups sold worldwide carbon-neutral by transitioning from fossil-derived energy to carbon-neutral energy sources. In 2023, Isuzu advanced the development of electric vehicles with an eye towards mass production and launched the new production model of the BEV (Battery Electric Vehicle) N-Series. Additionally, for FCVs (Fuel Cell Vehicles), we are conducting demonstration experiments for social implementation and preparing for market introduction.
On the other hand, commercial vehicles used in various market conditions may still require internal combustion engines. Additionally, Isuzu Group's products are used worldwide, and in some countries or regions, electrification may be challenging. Therefore, Isuzu Group continues to advance the development of internal combustion engines that are compatible with carbon-neutral fuels*.
- *Carbon-neutral fuels, including biofuels and synthetic fuels derived from renewable energy, are referred to as CN fuels.
Development and Diffusion of Next-generations Vehicles
Light-duty EV Truck
In March 2023, the new N-Series underwent a full model change, and BEV has been added to the product lineup.
In January 2024, addressing the current issue of chronic driver shortages, we began selling the ELFmio EV, a light-duty BEV truck with a gross vehicle weight of under 3.5 tons, which can be driven with a noncommercial driver's license.
Additionally, we are advancing the development of special-purpose vehicles equipped with an electric PTO.
Heavy-duty FCV Truck
Since 2020, we have been collaborating with Honda R&D Co., Ltd., and began public road testing in December 2023.
Through this demonstration experiment, which will continue until September 2024, we will work on collecting data, accumulating insights, and identifying technical challenges in preparation for market introduction in 2027.
We will continue development efforts to contribute to the Japanese government's goal of introducing 5,000 electric heavy-duty commercial vehicles by 2030.
Light-duty FCV 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. We will continue to provide vehicles to promote social implementation in other cities in the future.
BEV Flat-floor Route Bus
In May 2024, we launched Japan's first fully flat BEV route and shuttle bus, the ERGA EV.
Isuzu believes that for route buses, which often travel on predetermined routes, BEVs are one of the most promising options as a carbon-neutral power source.
In anticipation of the upcoming 2025 World Exposition in Japan (hereafter, Osaka-Kansai Expo), which will serve as a global showcase, there is growing interest in domestically produced, advanced BEV route bus. Leveraging its long-standing experience in product development, Isuzu has developed a BEV route bus designed with consideration for passengers, drivers, and road conditions.
North American Medium-Duty Battery Electric Trucks
To contribute to GHG reduction in North America, Isuzu announced its plan to launch medium-duty battery electric trucks equipped with Accelera by Cummins powertrains, aiming for a 2026 release.
Leveraging the strengths of both Cummins Inc. and Isuzu, we will support our customers in achieving zero emissions.
Provision of the total solutions program for BEV introduction and operational support, EVision
In 2022, Isuzu began offering EVision, a total solutions program for the introduction and operational support of BEVs, in conjunction with the market launch of the mass-produced BEV, the ELF EV.
EVision is a solution program designed to support customers in evaluating the introduction of commercial EVs, resolving implementation challenges, quantifying effects, and proposing further improvements to achieve carbon neutrality.
EVision Cycle Concept (Commercial Vehicle Battery Swapping EV Concept)
As a new option for achieving carbon neutrality, Isuzu is developing and exploring battery swapping solutions. By separating the operation of the vehicle and the battery, this approach is expected to address various societal challenges. We are advancing the development of vehicles and battery stations with the goal of conducting demonstration experiments by FY2026.
Promotion and Adaptation of Carbon-neutral Fuels
Isuzu established a dedicated department to promote the use of carbon-neutral (CN) fuels in 2021. In April 2023, this department was expanded into a division responsible for overseeing and advancing the Isuzu Group's CN strategy. The Company is actively working on the proliferation and adaptation of CN fuels, including evaluating the impact of CN fuel use on vehicle performance and durability. These initiatives are aimed at advancing the societal implementation of CN fuels.
As a specific example, Isuzu, together with Itochu Corporation, Itochu Enex Co., Ltd., Kajima Corporation, Konoike Construction Co., Ltd., Shimizu Corporation, and Takenaka Corporation, applied for and was selected in Osaka Prefecture’s Carbon Neutral Technology Development and Verification Project 2023 (Japanese only). In preparation for the 2025 Osaka-Kansai Expo, we are procuring fuel from Neste, the world's largest producer of renewable fuel*, and advancing demonstration projects for decarbonization in the construction and transportation sectors using this fuel.
Additionally, to accelerate the adoption of CN fuels, we will engage with CN fuel producers to address fuel quality issues and propose improvements. We will also actively participate in creating systems that do not require additional investments in distribution processes, such as supply and sales.
- *A fuel produced from used cooking oil, waste animal and plant oils, and other materials, which has lower GHG emissions compared to petroleum-derived diesel when assessed on a lifecycle basis.
Business Activities
To achieve zero direct GHG emissions from business activities by 2050, the Isuzu Group is working on reducing overall energy consumption and expanding the use of renewable energy.
Reduction of Total Energy Consumption
We are continuing to implement energy-saving activities, including streamlining processes, reviewing and optimizing the operation of equipment, and visualizing energy consumption.
By reassessing our conventional operating methods and applying successful initiatives across the Group, we are contributing to a reduction in total energy consumption throughout Isuzu's business activities.
The Isuzu Group supports climate-related regulations in various countries, including domestic laws such as the Energy Conservation Law*1 and the Global Warming Prevention Law*2, and addresses energy reduction through various reports to administrative agencies based on these laws and policies.
- *1The Energy Conservation Law, which relates to the rationalization of energy use and the shift to non-fossil energy
- *2The Act on Promotion of Global Warming Countermeasures
Expansion of Environmentally Conscious Sales Bases
When establishing or renovating sales bases, we are advancing the reduction of energy use by adopting LED lighting, skylights, and renewable energy systems. Additionally, during the establishment of new sites, we are promoting the expansion of environmentally conscious bases by adopting more environmentally friendly wastewater treatment equipment to prevent environmental pollution from wastewater generated during vehicle maintenance and washing.
Creating Clean Energy
To generate clean energy, in Japan, we installed a 1,156 kW solar power generation facility at the Tochigi Plant in FY2023, bringing the total solar panel capacity at both the Fujisawa and Tochigi plants to 1,389 kW.
Additionally, Isuzu Group companies in Thailand are also promoting the installation of large-scale 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.
In the future, the Isuzu Group plans to continue actively introducing energy-saving equipment and expanding the installation of clean energy generation systems, including solar power facilities.
Switching to Clean Energy
We are also progressively transitioning to clean energy for the energy used at our business sites.
Since FY2020, Isuzu has been using the Aqua Premium electricity rate plan from TEPCO Energy Partner, Inc., which applies 100% hydroelectric power to a portion of the electricity purchased. 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, starting in FY2023, Isuzu began purchasing electricity with non-fossil certificates and has been expanding its purchase of electricity derived from renewable energy sources.
Starting from FY2023, Isuzu's Yokohama headquarters switched all of its electricity usage to power certified by non-fossil certificates. As a result, all electricity used by Isuzu Group offices located in the same building now comes from renewable energy sources. Through these efforts, approximately 25% of Isuzu's electricity consumption was decarbonized in FY2024.
As for fuels, clean energy technologies such as electricity have not been established yet. In response to the current situation, Isuzu has been using carbon-neutral LNG as part of the fuel at its factories since FY2022.
Carbon-neutral LNG is liquefied natural gas that offsets the greenhouse gases emitted during the entire process from natural gas extraction to combustion using CO2 credits (carbon offsets), thus being considered as not generating net CO2 emissions on a global scale even when 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.
To widely inform users of natural gas vehicles about these initiatives, Isuzu supplies carbon-neutral LNG to the natural gas station located at the Fujisawa Plant. All natural gas supplied at this station is derived from carbon-neutral LNG.
Reducing CO2 Emissions in Logistics Processes
Isuzu aims to reduce CO2 emissions in its logistics processes by 1% annually and is implementing measures to achieve this goal.
Main initiatives
- Reviewing transportation methods
- Promoting fuel-efficient driving during transportation
- Increasing marine transportation (modal shift) through the development of new shipping routes
- Strict management of truck transport according to cargo volume
- Expanding the use of returnable racks that can be folded during return
- Expanding trailer transport and improving cargo fill rates within containers
- Increasing the use of container round trips
Review of Transportation Methods
In 2020, Isuzu established a new overseas shipping hub called the Global Center near the Tochigi Plant. Simultaneously, the Company carried out a reorganization of the Tochigi area facilities, resulting in a significant reduction in warehouse-to-warehouse transportation due to the consolidation of external warehouses and a substantial improvement in transportation efficiency. Previously, truck transport was used for parts delivery between adjacent parts centers; however, a new logistics route was created by installing an overpass between warehouses. By switching from truck transport to unmanned tow vehicles, the company reduced the fuel used by trucks and decreased CO2 emissions.
Additionally, the Isuzu Group is continuously reviewing and optimizing the transportation routes for products and parts, and is working to reduce CO2 emissions associated with transportation by engaging in joint transportation within the Group.
Increasing Container Round Use
Isuzu is implementing carbon-neutral activities across the entire logistics sector and is currently working on the Container Round Use (CRU) system, which reuses empty containers from imports as export containers after unloading.
Previously, empty export containers for KD parts packed at the Tochigi Plant were retrieved from Yokohama Port. However, now, the Company picks up import containers unloaded by other companies at a depot in an inland area near the Tochigi Plant, as designated by the shipping company, and reuses them as export containers for KD parts at the Tochigi Plant. In the Fujisawa area, Isuzu collaborates with other companies to implement Container Round Use (CRU) by bringing empty containers, after unloading, to Isuzu Group warehouses near the Fujisawa Plant instead of returning them to Yokohama Port. These containers are then reused for the export of KD parts. This initiative has enabled stable logistics and reduced fuel consumption during transportation, leading to a decrease in CO2 emissions.
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 this biomass material is sugarcane, which absorbs CO2 through photosynthesis during its growth, resulting in CO2 being offset during disposal and incineration.
Since FY2018, we have switched approximately 9 million A4-size polyethylene bags, the most commonly used type, from petroleum-based to biomass materials, reducing CO2 emissions by approximately 7%. Subsequently, we expanded the use of biomass materials to other sizes of polyethylene bags, and by FY2024, all 10 sizes of polyethylene bags have been switched to biomass materials.
Additionally, starting from FY2023, we have switched all 16 sizes of bubble wrap cushioning materials to biomass materials containing approximately 15% bio-based content, resulting in a reduction of approximately 5% in CO2 emissions.
Through these initiatives, we have reduced CO2 emissions by approximately 120 tons per year.
Holding Fuel Efficient and Safe Driving Seminars
Considering the lifecycle 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
| Number of times | Number of participants | |
|---|---|---|
| FY2024 | 76 | 999 |
| FY2023 | 65 | 885 |
| FY2022 | 60 | 1,128 |
Fuel-efficient and safe driving seminar
Efforts with Our Business Partners
Isuzu conducts procurement activities based on the Isuzu Group Supplier Sustainability Guideline and requests our business partners to follow this guideline as well, including signing an agreement to confirm compliance. Additionally, we have established the Isuzu Green Procurement Guideline, which outline environmental requests by industry sector, to strengthen environmental management across the entire value chain in collaboration with our partners.
Since FY2023, we have participated in the CDP Supply Chain Program, advancing efforts related to climate change and GHG emissions tracking, and further strengthening our collaboration with our business partners.
Initiatives with Yokohama City
In October 2023, Isuzu signed a Collaboration Agreement for Achieving Carbon Neutrality in the Commercial Vehicle Sector in Yokohama City with Yokohama City. The agreement aims to promote the adoption of carbon-neutral vehicles in the commercial vehicle sector within Yokohama City and to collaborate on initiatives to enhance transportation efficiency contributing to decarbonization.
As part of this initiative, starting December 21, 2023, Isuzu will participate in a demonstration project of the first public road charging station in Japan for BEV trucks. This project focuses on collaborative activities to establish an efficient network of charging stations and aims to create a regional model case.
