Isuzu Motors Limited (headquartered in Yokohama, Kanagawa, Japan; Shinsuke Minami, President & COO; hereinafter "Isuzu") has committed to the adoption of green steel^*1, which is the manufacturing process of steel that reduces CO₂ emissions, partially in mass-produced vehicles as well as building materials for The EARTH lab., an electric vehicle development and testing facility under construction at the Fujisawa plant (Fujisawa, Kanagawa). The company will start to order green steel from April. This is the first time in Japan green steel will be used as raw material for commercial vehicles.

The Japanese government has declared the goal of achieving net zero greenhouse gas emissions by 2050. Within this context, since the steel industry supports the backbone of automobile manufacturing and accounts for 38 percent of CO₂ emissions from the country's industrial sector, reducing CO₂ emissions associated with steel making is critical. To drive reductions in greenhouse gas emissions, Isuzu is emphasizing close cooperation with its purchasing partners and will procure green steel applying the mass balance approach from three steelmakers, JFE Steel Corporation, Kobe Steel, Ltd., and Nippon Steel Corporation (in alphabetical order). The company will start to adopt green steel as part of the raw material for mass-produced vehicles including the battery EV (BEV) light-duty ELF EV truck. Isuzu will also use approximately 1,000 tons of green steel for construction frames used in The EARTH lab., which is scheduled for completion in June 2026. Thus, the company's CN efforts in relation to green steel will encompass both product development and facility construction.

The green steel mass balance approach is a system where steel manufacturers allocate the benefits of their decarbonization efforts to a portion of their production, effectively creating a certified product line. The green steel products Isuzu will adopt, namely Kobe Steel's Kobenable^® Steel^*2, JFE Steel's JGreeX™^*3, and Nippon Steel's NSCarbolex™ Neutral^*4, all allocate CO₂ emission reductions through third-party certification, which contributes to carbon neutrality efforts for society as a whole.

GX Acceleration Declaration^*5
Adhering to the principles of the GX Acceleration Declaration, a framework launched by the Ministry of Economy, Trade and Industry in December 2024 to accelerate the creation of a market for green transformation (GX) at a nation-wide level, Isuzu has made its own GX Acceleration Declaration along with the adoption of green steel. Through the procurement and purchasing of green steel, a key initiative that will drive a reduction in carbon emissions, the company will promote the creation of GX products throughout the supply chain.

In line with its Purpose of Moving the World - for You, Isuzu will continue to promote carbon neutrality initiatives across the product lifecycle and all its business activities, continuously working to minimize environmental impacts.

End

November 29, 2023

Electric Vehicle Development and Testing Facility to be Established at Fujisawa Plant- Towards a full lineup of carbon-neutral vehicles by 2030, with operations commencing in 2026 -

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