Sustainability TOP
Promotion of Sustainability

Promotion of Sustainability

Message from the Chairperson of the Sustainability Committee
Sustainability Promotion System
Material Issues

Message from the Chairperson of the Sustainability Committee

Director of the Board, and Managing Executive Officer Naohiro Yamaguchi — Naohiro Yamaguchi
Director of the Board, and Managing Executive Officer

In ISUZU Transformation―Growth to 2030, the medium-term business plan formulated in April 2024, Isuzu has set forth a detailed vision and path to be followed by 2030 in order to realize its corporate philosophy, the ISUZU ID. As a commercial mobility solutions company that aims to resolve issues faced by customers and society, such as achieving carbon neutral and logistics-focused digital transformation, we will strive to enhance our corporate value by creating both social and economic value. In ISUZU Transformation, we have set forth seven areas for realizing the ISUZU ID and linked them to the four elements of our mission—becoming No.1 in customer satisfaction, sustainability, social impact, and employee engagement. To achieve this mission, the Isuzu Group will actively address global environmental issues, including climate change, with respect for human rights as the foundation of everything we do.
In FY2024, the Sustainability Committee engaged in extensive discussions on the implementation of climate change measures and progress on human rights due diligence, and existing initiatives were enhanced and strengthened. In addition, since FY2024, the Isuzu Group Sustainability Liaison Conferences has been held for key subsidiaries in Japan and overseas to share information and collaborate with each other to promote efforts from a global perspective.
We will continue to promote sustainability-related initiatives in our pursuit of realizing the ISUZU ID.

Sustainability Promotion System

Isuzu Group has established a Sustainability Committee chaired by a director, with permanent membership composed of executives responsible for each area, in order to promote sustainability throughout the Group.

The Sustainability Committee meets regularly (more than four times annually) to discuss and decide on matters related to sustainability, such as addressing climate change risks, human rights, and diversity. The matters discussed by the Sustainability Committee are reported to the Management Meeting and the Board of Directors as necessary, depending on their importance.

Under the umbrella of the Sustainability Committee, specialized environmental and social subcommittees, each chaired by a relevant standing Committee member, have been established to address specific issues.

Additionally, to establish a cross-group sustainability promotion structure, we hold the Isuzu Group Sustainability Liaison Conference, targeting consolidated subsidiaries.

Composition of Sustainability Committee, Board of Directors, Management Meeting, reported, supervise, The Sustainability Committee

Sustainability Committee Meetings in FY2024

Meetings held	5
Main Agenda Items	Deliberation on the review of sustainability-related policies, among other matters Deliberation and reporting on the promotion of the environmental roadmap Progress report on human rights due diligence Activity reports of each Subcommittee

Material Issues

Isuzu Group has established eight material issues that it aims to resolve through its business activities. By addressing these issues, we will create both social and economic value.

Process for Setting Material Issues

STEP 1: Identify and organize issues

Isuzu Group drew up a list of issues based on the Isuzu Group's business characteristics, business challenges, and daily communication with stakeholders. International guidelines such as the GRI Standards, ISO 26000, the Sustainable Development Goals (SDGs), and the SASB Standards were also considered in the process.

STEP 2: Prioritize issues and identify potential material issues

Taking into consideration the external environment, characteristics, strategies, and CSR activities of the Isuzu Group's businesses, we mapped out and prioritized issues from the perspectives of both Isuzu Group and society before identifying potential material issues.

STEP 3: Engage in dialogue with experts

To assess the validity of the potential material issues and gain insight into society's expectations for Isuzu, we held a dialogue with two experts and refined our list of potential material issues based on this dialogue. At the Management Meeting in 2018, we decided on nine material issues for Isuzu Group.

STEP 4: Revise list of chosen material issues

In 2021, after much deliberation by the Sustainability Committee and other internal bodies, we organized the issues into the two themes of 'value provided to society,' which takes an offensive stance, and 'cornerstones supporting value creation,' which takes a defensive stance, and decided at the Management Meeting to proceed with only eight material issues.

	Material Issues	Approach to Resolving Issues
Value provided to society	Realization of a society in which people and goods can be transported safely, securely, and efficiently	Create innovation in the fields of automated driving and connected technologies while leveraging business collaborations with trusted partners Enhance after-sales service networks in addition to supplying products equipped with state-of-the-art safety features
	Balance between global environmental sustainability and global economic growth	Reduce environmental impact of manufacturing processes and promote recycling-oriented business while providing economically friendly products and services that have low environmental impact through the creation of innovation geared toward decarbonization, such as the development of products with advanced environmental performance that contribute to efficient transportation
	Enrichment of livelihoods and stimulation of economies in emerging countries	Popularize commercial vehicles by expanding sales channels and the customer base for commercial and light commercial vehicles Provide products and services that contribute to the enrichment of livelihoods and the development of economic infrastructure in a manner suited to the needs of each country and region
	Maintenance of suitable living environments during times of disaster and emergency	Provide products and services that are reliable in times of disaster and emergency, including emergency vehicles and products that are compatible with a variety of energy sources as well as an after-sales service network to assist in the restoration of damaged vehicles
Cornerstones supporting value creation	Improvement of technologies and provision of reliable products and services	Make quality our top priority and pursue safety and environmental technologies tailored to the needs of the times Ensure the quality of our products and services by establishing a system to ensure quality throughout our value chains
	Respect for and among employees and promotion of diversity	Respect the human rights and diversity of our employees, strive to maximize their abilities, and create an environment in which they can work safely and with peace of mind Develop a comprehensive human resource management infrastructure to realize human capital management based on the ISUZU ID
	Coexistence and co-prosperity with local communities and stakeholders	Engage in two-way communication with the various business partners involved in our supply chains and build relationships of trust by conducting open and fair business transactions Gain an accurate awareness of the needs of local communities and our stakeholders and respond accordingly by respecting national and regional cultures and working to engage and harmonize with local communities and society through our business activities
	Appropriate governance	Strengthen oversight functions and ensure accountability to all stakeholders by enhancing the rationality and speed of decision-making