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Nissan Motor Corporation
Contents
Corporate direction
Environmental
Social
Governance
Data
Introduction
The ESG data book 2023 is a tool to demonstrate Nissan`s policies and performance in the areas of Environmental, Social and Governance, which is becoming increasingly critical year by year. This data book enables stakeholders including shareholders, analysts, employees and customers to understand each aspect of our approach and the philosophy behind it.
Makoto Uchida, president and chief executive officer (CEO), regards ESG as a vital part of our overall strategy. In a statement for this data book, the CEO says: lIt is more important than ever that our corporate purpose is embedded in all our endeavors to build a more sustainable organization that is truly needed by customers and society. I am confident we will continue to drive innovation, empower mobility, and set a successful stage for future generations as we work together toward our goals.z
The period covered by the data book coincides with the final year of Nissan Sustainability 2022 including Nissan Green Program 2022. It also reflects the ongoing priorities of Nissan Ambition 2030. The strategic goal of our sustainability strategy is to enhance Nissan`s environmental performance, to ensure the highest standards of respecting human rights in social aspects, and to strengthen corporate governance.
We hope that the information and data provided offers an easy-to-read guide to Nissan ESG, which is an area of continuous development and innovation. We welcome stakeholder feedback on the contents.
Contents
Corporate direction
CEO message 002 CSO message 003 The Alliance 004 Sustainability at Nissan005
Environmental
Environmental policies and philosophy 015 Climate change 023 Air quality 046 Resource dependency 048 Water scarcity 055 Third-party assurance 058 Strengthening our business foundations to address environmental issues060
Social
Social policies and philosophy067 Human rights 068 Traffic safety075 Diversity, equity and inclusion 079 Product safety and quality 091 Supply chain management097 Human resource development 102 Labor practices 107 Employees` health and safety 112 Community engagement 117
Governance
Governance policies and philosophy 121 Corporate governance 122 Risk management 132 Compliance 134
Data
ESG data Corporate overview141 Environmental data 143 Social data 159 Governance data163
Editorial policy 164
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ESG data book 2023
001
Nissan Motor Corporation
Contents
Corporate direction
CEO message
Environmental CSO message
Social
The Alliance
Governance
Data Sustainability at Nissan
CEO message
Guided by our corporate purposedriving innovation to enrich people`s lives we continue to place sustainability at the center of our business. Sustainability is fundamental to the value that we provide to our customers and society as we strive together to empower mobility and beyond. We are delivering exciting vehicles and technologies that empower customer journeys and, through various collaborations, we are building a smart ecosystem to empower society. One of the most pressing challenges we face globally is climate change. At Nissan, we aim to achieve carbon neutrality across all operations and the lifecycle of our products by 2050, and electrification is a fundamental pillar of our strategy towards it. In 2021, we introduced Nissan Ambition 2030, our long-term vision to realize a cleaner, safer, and more inclusive society. We outlined our electrified vehicle goals and market-specific electrification targets. In February this year, we announced that we would be accelerating this with new models and sales targets to meet growing customer needs. We are also
working to develop driver assistance and vehicle intelligence technologies to reduce fatalities as well as empower society by providing mobility choices.
Corporate Purpose
Driving innovation to enrich people's lives
For a cleaner, safer and more inclusive world
EMPOWERING JOURNEYS
Together we empower mobility and beyond
EMPOWERING SOCIETY
Nissan's DNA Do what others don't dare to do
NISSAN WAY
Additionally, Nissan has endorsed the United Nations Global Compact on sustainable and socially responsible initiatives, and our strategy aligns us with the UN Sustainable Development Goals. Participation in initiatives such as these hold us accountable, serving as a reminder as to what we should achieve and how we must actively play our part.
Mitigating risks in Nissan`s own operations and across our global supply chains is also integral. Respecting human rights is fundamental and we have a zero-tolerance policy on human rights violations. This belief is also clearly reflected in the Nissan Human Rights Policy Statement in accordance with the United Nation Guiding Principles on Business and Human Rights. Additionally, our Global Code of Conduct sets the standard for our actions as a global company of influence.
Instilling a rigorous governance system is essential to maintain organizational integrity. Our three statutory
committeesNomination Committee, Compensation Committee, and Audit Committeeprovide oversight and transparency in decision-making. What is critical is ensuring that the frameworks are effective. To that end, we continue to seriously reflect on past incidents to improve our governance practices.
I strongly believe that people are Nissan`s greatest asset. It is my priority to ensure that all employees feel empowered, supported, and can be their authentic selves at work. To do so, we promote diversity, equity, and inclusion as a key part of our culture, and we are proud that more than 100 nationalities are represented within our global workforce. Although diverse, we are united in our purpose.
Working toward these ambitions is no small undertaking, and some of these challenges can`t be addressed by Nissan alone. Carrying out initiatives with our partners, who know their markets and have expertise in each area, will allow us to provide high value to customers and make a difference to the world.
For nearly nine decades, we have done what others don`t dare to do. Nissan has gone through many periods of change and evolution. Today, it is more important than ever that our corporate purpose is embedded in all our endeavors to build a more sustainable organization that is truly needed by customers and society. I am confident we will continue to drive innovation, empower mobility, and set a successful stage for future generations as we work together toward our goals.
Director, representative executive officer, president and CEO
Makoto Uchida
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Corporate direction
CEO message
Environmental CSO message
Social
The Alliance
Governance
Data Sustainability at Nissan
CSO message
Sustainability is positioned as a core component of Nissan`s foundation and culture. It is vital for Nissan to contribute to the creation of a cleaner, safer, more inclusive world. Everything we have done is with respect for the environment, people, society and future generations under the sustainability strategy lNissan Sustainability 2022z.
As we formulate sustainability strategies, we discussed societal and environmental issues and have identified 21 material areas among our ESG factors where Nissan must address. Demonstrating our commitment to prioritizing ESG at a strategic level, these areas are closely tracked by executive members and Board of Directors.
Addressing climate change is a key priority. At Nissan, we aim to become carbon neutral across all operations and product lifecycles by 2050. Our midterm environmental action plan, the Nissan Green Program 2022 (NGP2022) which will be renewed this year outlined goals to reduce emissions in addition to air quality, resource dependency, and water scarcity, which remain key focus areas for Nissan. In fiscal
year 2022, we have reduced 41.2% of CO emissions from new cars (vs fiscal year 2000), and 27.7% of CO emission from corporate activities (vs fiscal year 2005).
By 2030, we plan to introduce 27 new electrified models including 19 new electric vehicles (EVs)as part of Nissan Ambition 2030, our long-term vision to realize a cleaner, safer and more inclusive world.
We are also putting efforts to establish a sustainable EV ecosystem, which will directly address the changes in customer lifestyle and the supply and demand to the power grid that will come with the projected sharp increase in the adoption of electric vehicles.
To accelerate these efforts, we launched the strategic sustainable finance framework in 2022. This new framework will enable material fundraising efforts for accelerating Nissan`s innovations in next-generation electrified vehicles, batteries, environmental technologies, and new mobility services.
We are proud to have received an A list from the global environmental NGO CDP for water security in 2022 for the fourth consecutive year and leadership (A / A-) for climate change for ten successive years. Participating in the Race to Zero campaign supported by the United Nations helps keep us accountable on our quantitative goals.
Nissan conducts its business activities with a constant awareness of society`s needs. We have set six key areas in social dimension - traffic safety, DEI (diversity, equity and inclusion), quality, supply chain, employees and community engagement.
Through materiality assessment, we have designated human rights, fundamental principle to everything we do, as a material factor that must be addressed judiciously. Accordingly, we conduct human rights assessments as part of a due diligence process to ensure practices operated by Nissan as well as our partners globally.
As we continue to evolve, there remains much to address in terms of conducting business through a holistically sustainable lens. We are getting ready to announce the new sustainability strategy including our next Nissan Green Program, which will play a critical role in our business going forward, later in this fiscal year.
As a purpose-led business, providing products, services, and technologies that bring value to customers responsibly and building a more just, equitable company for our people are what drives Nissan toward a more sustainable future.
Nissan Motor Co., Ltd. Senior Vice President, Chief Sustainability Officer
Joji Tagawa
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Contents
Corporate direction
CEO message
Environmental CSO message
Social
The Alliance
Governance
Data Sustainability at Nissan
The Alliance
The Renault-Nissan-Mitsubishi Alliance is one of the world`s leading automotive alliances. Through a creative cooperation business model, the Alliance aims at enhancing the competitiveness and profitability of each of the member companies by capitalizing on individual company`s strengths and complementing their strategies.
In 2020, Nissan started its transformation journey with the Nissan NEXT plan and took a visionary step with Nissan Ambition 2030 to set a north star for its business, with the Alliance positioned as a key pillar. However, the environment surrounding the company is changing dramatically. The company needed to adopt to the new reality and urgently address the issues with agility - whether climate change, geo-political scenarios, raw material hikes, or fragmentation of markets.
Hence, there was a need to move to the next level of transformation, even at the level of the Alliance.
At a press conference in London in February 2023, the leaders of Nissan, Renault and Mitsubishi Motors unveiled steps in three areas to extend collaboration in growth markets, in electrification and next-generation technologies, which will complement the delivery of Nissan Ambition 2030.
The first area is high-value-creation operational projects in Latin America, India and Europe. The high value initiatives will enable each company to fast-track innovations, improve costefficiency and add value.
Already, we are seeing the fruits of our revamped partnership in the form of Nissan and Renault announcing a new longterm vision for India later in February. This initiative will see an initial investment of around US $600m and will support increasing production and R&D activities, introducing electric vehicles, and transitioning to carbon-neutral manufacturing. This will result in the creation of 2,000 new jobs at the Renault Nissan Technology & Business Centre in Chennai.
Second, the partners aim to enhance strategic agility with new initiatives that partners can join.
While Nissan continues to support customers in accelerating the adoption of electrified mobility, the speed of electrification and customer acceptance differs from market to market. Nissan has disclosed its intention to invest up to
15% in Ampere, Renault Group`s EV & Software entity to support its robust electrification strategy in Europe. Ampere would be an enabler for Nissan to participate in a project creating new business opportunities in Europe, promising new collaborations, and generating value.
The third area is a rebalanced cross-shareholding between Nissan and Renault, with reinforced Alliance governance. In the new phase of transformation, the Alliance needed an efficient structure and enhanced governance, which would deepen mutual trust and ensure each member can contribute its strengths in accelerating our shared ambitions for the future of mobility.
Built on a solid foundation and a transformed Alliance with Renault and Mitsubishi Motors, Nissan will continue to leverage the partnership to enhance the delivery of its corporate strategy, by reinforcing its competitiveness, sustainable profitability, and social and environmental responsibilities.
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CEO message
Environmental CSO message
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The Alliance
Sustainability at Nissan
Sustainability strategy
Sustainability at Nissan
To fulfill its corporate purpose of lDriving innovation to enrich people`s lives,z Nissan provides unique and innovative automotive products and services that deliver superior value to all stakeholders. As it evolves as a company through its full range of global activities, Nissan seeks to create economic value and contribute to the resolution of issues facing society as a leading global automaker. Nissan aims to become a truly sustainable company that plays a vital role for its customers, shareholders, employees, as well as for communities, and all other stakeholders. It is committed to achieving a cleaner, safer and more inclusive world .
Analyzing societal issues and assessing materiality
Nissan formulates sustainability strategies and promotes activities that account for stakeholder interests and the latest trends, such as technological innovation. When formulating these strategies, we identified key material issues that we should address on a company-wide level based on an analysis of risks and opportunities. We considered both corporate activities and sustainability from the perspective of the impact of society and the environment on Nissan (financial impact), which is of great interest to investors as well as the new perspective of how Nissan impacts - and benefits - society and the environment, and in doing so demonstrate the value that Nissan creates as well as its priorities. By communicating its approach in greater detail to stakeholders, Nissan hopes to expand opportunities for collaboration in various ways and further strengthen its relationships of trust in the automotive sector as well as further afield in a bid to take its initiatives to the next level.
Governance
Data Sustainability at Nissan
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Governance
Data Sustainability at Nissan
Materiality assessment process
Step 1: Clarifying societal and environmental issues
We assess global agendas by regularly analyzing market-trends, identifying expectations from society through dialogue with stakeholders that include investors, and studying the United Nations Climate Change Conference of Parties (COP), Sustainable Development Goals (SDGs), and risk reports published by the World Economic Forum(WEF).
Step 2: Assessing material issues facing Nissan and the automobile sector as a whole
We assess Nissan's material issues by analyzing risks and opportunities from a global perspective. This perspective incorporates both efforts to achieve the Nissan Ambition 2030 long-term vision and the role of the automobile sector.
Step 3: Prioritizing materiality
We organize priorities based on risks and opportunities into a matrix to identify the value Nissan creates and determine how to enhance initiatives going forward. Experts then conduct a review and provide feedback.
Step 4: Reaching consensus among management and the Board of Directors
We report our materiality assessment -- including background information and the reasons for our selections -- to executives and the Board of Directors to reach a consensus.
Nissan materiality matrix
Having assessed 21 material issues, the items at the top of the vertical axis indicate Nissan`s greatest value and impact on society and the environment, while those in the right-hand column on the horizontal axis indicate the greatest impact on Nissan from society and the environment. Nissan has determined the 12 most important items. Nissan will incorporate each identified into business activities to expand opportunities for collaboration and help promote robust efforts that embody our corporate purpose.
extremely high
Environmental
social
· Community development
governance · Vehicle safety · Cleaner emissions · Privacy and data security
Top 12 prioritized items *No priority in category
· Governance, regulation and compliance · Inclusive mobility solutions · Human rights · Vehicle electrification · Renewable energy
· Ecosystem service and biodiversity
· DEI (Diversity, equity and inclusion)
· Lifecycle management
· Pursue energy efficiency
· Product quality · Supply chain management · Sustainable resource management
Nissan's value/impact on society and the environment
· Engagement with stakeholders · Preservation of water, air and soil
· Wellness and occupational safety/health
· Risk hedge for physical hazards
· Human resource development
High
High
Impact on Nissan from society and the environment
extremely high
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CEO message
Environmental CSO message
Social
The Alliance
Governance
Data Sustainability at Nissan
Materiality description and its importance
Materiality Governance, regulation and
compliance Inclusive mobility solutions
Human rights Vehicle electrification
Renewable energy
Vehicle safety Cleaner emissions Privacy and data security
Community development
Description
Guided by corporate purpose, values and business code of conduct, we will operate with the highest level of business integrity through effective governance based on the transparent framework, comply with respective laws and regulations, and ensure we act consistently with respect and integrity towards people and society.
By providing advanced new mobility technologies and services (e.g., autonomous driving) to more people, we wish to realize an inclusive society where everyone has access to safe and reliable mobility.
Foster an organization where every employee shows utmost respect to individual dignity and human rights. Nissan commits to act in accordance with internal ethical standards set by the United Nations Guiding Principles on Business and Human Rights.
By steadily increasing electrified line-up, offering advanced vehicle and battery technologies and supporting EV eco-system, we are accelerating our efforts toward carbon neutrality.
Through partnerships with various sectors and collaboration with governments and communities, we will promote the use of renewable and alternative energy sources to reduce CO2 emissions. With 4R* including Vehicle-to-everything (V2X), we continue to empower societies with safe energy management solutions. *4R : Battery reuse, refabricate, resell, recycle
Through advanced driver assistance technologies accessible to more customers, we wish to realize zero fatality by eliminating the number of deaths in traffic accidents involving Nissan vehicles.
With the goal of latmosphere-level clean emissions,z we will ensure cleaner exhaust emissions (e.g. NOx, PM, etc.) from our products and facilities.
Committed to safeguarding data protection and privacy rights, protecting stakeholder personal data through appropriate security measures, and will be responsible for secure handling of data in consideration of new technologies and security risks.
Contribute to the development of communities and empower societies through disaster management support and humanitarian aid and social transformation initiatives like Blue Switch.
Product quality
Provide reliable, comfortable, and user-friendly mobility by improving the design and product quality including chemical substance management and in-cabin air.
Supply chain management
Aim to conduct our business activities based on our supplier CSR guidelines in an ethical, socially and environmentally responsible manner at each stage of the supply chain.
Sustainable resource management
Avoid resource price fluctuations and procurement risk, reduce dependence on resources by establishing a vehicle manufacturing system that enables effective and sustainable use of material resources by circular economy such as repair/reuse/rebuild/recycle.
E: environmentalS: socialG: governance
Nissan initiatives Corporate governance (P122) Compliance (P134) Traffic safety (P075)
Human rights (P068)
Climate-change product initiatives (P026)
Climate change (P023)
Traffic safety (P075) Air quality (P046)
Risk management (P132)
Climate change initiatives for partnerships with society (P033) Community engagement (P117) Air quality (P046) Product safety and quality (P091) Strengthening our business foundations to address environmental issues working with suppliers (P064) Supply chain management (P097)
Resource dependency (P048)
ESG
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CEO message
Environmental CSO message
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The Alliance
Governance
Data Sustainability at Nissan
Sustainability strategy: Nissan Sustainability 2022
In 2018, we formulated a sustainability strategy called Nissan Sustainability 2022 (NS2022). In addition to formulating a longterm sustainability vision considering risks and opportunities in our business as well as societal expectations, in NS2022 we identified key initiatives and their targets toward 2022 in each aspect of ESG (environmental, social and governance). Regarding the environment, Nissan has set a new goal for achieving carbon neutrality across the entire life cycle of its products by 2050. As part of this effort, by the early 2030s every all-new Nissan vehicle offering in key markets will be electrified. In reforming our industrial structure to help combat climate change, we will embrace ljust transitionz and aim to realize a lsociety in which no one is left behind.z
Governance
Social Respect for human rights
Environmental
Nissan's activities Climate change
Resource dependency
Air quality Water scarecity
Traffic safety
Diversity, equity and inclusion (DEI)
Quality Supply chain
Employees
Community engagement Corporate governance Compliance Risk management
Sustainability vision
Main goals / approaches for 2022
Achieve carbon neutrality by 2050 across the life cycle of its products by the early 2030s all new vehicles offering in major markets will be electrified
Reducing products and manufacturing CO2 emissions Product CO2 emissions reduction: 40% reduction of CO2 emissions from new cars
(vs. FY2000; Japan, U.S., Europe, China) Overall reduction of CO2 emissions from corporate activities: 30% reduction of CO2
emissions per vehicle sold (vs. FY2005; global)
Zero new material resource use
Minimizing usage of new resources, with the efforts of waste to landfill reduction and
Using materials that do not rely on newly mined resources for 70% of waste reduction, etc.
the materials used in each vehicle in 2050
More than 30% (in weight) of a new vehicle to be non-new material resources
Zero impact
Improving exhaust emissions from products and manufacturing. Cabin air quality improvement: Promote research on technical solutions Reduce VOC from manufacturing: Promote reduction of VOC per paint area (vs.
FY2010)
Zero stress
Reducing water withdrawal from manufacturing : 21% reduction of water withdrawal per global production (vs. FY2010)
Reduce the number of fatalities involving Nissan vehicles to virtually zero
Promote safety technologies evolution and adoption
Achieve sustainable development by creating innovation through building an inclusive organization where individual employees with diverse backgrounds in terms of race, nationality, gender, religion, disability, age, place of origin, gender identity and sexual orientation can demonstrate their potential to the fullest
For female manager ratio, in principle, we will target to get closer to the same level of female ratio in management as indirect employees. (Japan)
Product quality
Strive for top-level quality from the customer`s perspective
Sales and service quality
Achieve top-level quality in all focus markets and maintain top-level quality for sales and service over the longer term
Aim to establish a sustainable supply chain with due regard to the environment and human rights
All of our suppliers follow Renault-Nissan CSR Guidelines for Suppliers Aim to reduce our collective environmental footprint through environmental data survey and collaboration with suppliers
Learning and development
Nurture an ability to cope with a range of potential future developments
Create a continuous learning culture at Nissan by: Launching an integrated development framework Optimizing leadership development programs Providing digital solutions to realize lanytime, anywhere learningz utilizing effective
digital solutions
Occupational health and safety
Realization of a bright and vibrant workplace free from disasters and illnesses
Occupational accident frequency rate to be continuously maintained below previous year`s results. Aim to eliminate fatal accidents Promote health management and aim to remain a company where each and every employee can work with enthusiasm
Realize a cleaner, safer and more inclusive society
All regions are executing philanthropy programs for strategic areas, such as zero emissions, zero fatalities and zero inequalities
We address improvement of corporate governance as one of its most prioritized managerial tasks
A fully functioning framework for the prevention of conduct violations and for compliance at Nissan globally
Enhance monitoring of each compliance risk area, and establish framework to oversee progress of each monitoring activity
Enhance the third-party compliance system to ensure the entire Nissan business process is compliant
Achieve benchmark levels for maintenance and enhancement of information security, prevention of information leaks, damage limitation and maintenance of transparency in the event of leaks
Achieve benchmark levels for maintenance and enhancement of information security in each area, including new environments and areas
Environmental: We steadily executed our medium-term environmental action plan, the Nissan Green Program 2022 (NGP2022) and achieved our objectives in key areas with the exception of some activities impacted by COVID-19 and lower production volumes owing to semiconductor shortages.
Social: We carried out key social initiatives listed in NS2022, implemented the human rights due diligence process for employees and accelerated our human rights activities in the supply chain.
Please refer to each chapter for more details about our fiscal 2022 results.
Governance: We have conducted business activities with impartiality, fairness and transparency by building a new governance system, establishing various internal policies and strengthening rules to strictly comply with law and regulations.
Although NS2022 ended in fiscal 2022, Nissan recognizes the need to accelerate and further evolve its sustainability activities. To that end, we are now developing the next sustainability strategy with an eye on fiscal 2030 to realize our long-term vision, Nissan Ambition 2030.
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Corporate direction
CEO message
Environmental CSO message
Social
The Alliance
Sustainable finance
The Nissan Sustainable Finance Framework will enable Nissan to raise funds needed to further enhance its sustainability efforts. Nissan has obtained a second party opinion from Sustainalytics, an independent organization, stating that Nissan`s framework is in alignment with the Green Bond Principle 2021, Social Bond Principle 2021, Sustainability Bond Guideline 2021, Green Loan Principle 2021 and Social Loan Principle 2021. Funds raised through the framework will be used for a wide range of initiatives, including the development and production of electrified vehicles, and batteries. The scope will also include technology development and infrastructure development for the creation of EV ecosystems and smart cities, and the development of safer and more sustainable mobility. Nissan, under its corporate purpose, ldriving innovation to enrich people`s livesz, is positioning sustainability at the core of its business. Aiming to grow as a company through global business activities and by contributing to solving various issues facing society, Nissan will continue to strive to provide value to stakeholders and support the development of a sustainable society. *1 *2
Nissan signs 200 billion yen green loan for zero emission mobility investments
In November 2022, Nissan signed a syndicated green loan agreement, the first funds raised since launching the Sustainable Finance Framework. *3 The loan, with a contract amount of 200 billion yen and a contract period of five and seven years, will be utilized to support its clean mobility and related projects to progress its long-term electrification and carbon neutrality ambitions. Loan proceeds will fund eligible green projects defined in the framework, such as R&D, investments and expenditures for the design, development, and manufacturing of zero-emission vehicles and components for electric vehicles or other future carbon neutral initiatives, accelerating electrification programs.
Governance
Data Sustainability at Nissan
Nissan issues a total of 200 billion yen in sustainability bonds to fund green and sustainability projects
In January and February 2023, Nissan issued a total of 200 billion yen in sustainability bonds and completed the fundraising.*4 The bonds constitute a second round of fundraising based on the Sustainable Finance Framework, with the issuance comprising lSAKURAz bonds for retail investors and wholesale bonds for institutional investors. The funds will be invested in eligible green and sustainability projects defined in the framework. This covers key areas including the design, development, and manufacturing of electric vehicle and autonomous driving, among others.
*1Nissan and Nissan Sales Finance affiliates Sustainable Finance Framework:https://www.nissan-global.com/JP/IR/STOCK/SUSTAINABLE_FINANCE/ASSETS/PDF/Nissan-and-Nissan-Sales-Finance-affiliates-Sustainable-Finance-Framework_en.pdf *2Second-Party Opinion:https://mstar-sustops-cdn-mainwebsite-s3.s3.amazonaws.com/docs/default-source/spos/nissan-and-nissan-sales-finance-affiliates-sustainable-finance-framework-second-party-opinion-(2022).pdf?sfvrsn=85d89253_1 *3Click her for more information.https://global.nissannews.com/en/releases/release-48b4dcee3ca553fae7e18a40fe024c80-221130-01-e *4Click her for more information.https://global.nissannews.com/en/releases/release-852a2a2cb9af6879ff7b8333991e25d8-230120-02-e
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Data Sustainability at Nissan
Internal efforts to promote sustainability
Companywide management of specific activities under Nissan`s sustainability strategy, from setting goals to monitoring progress, is the responsibility of the Global Sustainability Steering Committee chaired by the company`s chief sustainability officer. The committee meets biannually and includes management representatives from functions for each of the ESG areas. Each function is responsible for advancing its own activities and progress is reported to the committee. Nissan implements the PDCA cycle in pursuit of improved sustainability performance. As in past years, three committee meetings were held in fiscal 2022. Discussions at the Committee are reported and proposed to the Executive Committee, Nissan`s highest decisionmaking body. The contents are then reported to the board of directors.
Nissan`s sustainability decision-making process
Bord of Directors
Executive Committee Proposals / reports
Decisions
Global sustainability steering committee Chairperson
Chief sustainability officer
Representatives from sustainability strategy-related functions at global headquarters and regional offices
Executives` roles on sustainability and its performance assessment
Since fiscal 2021, the company added new performance indicators for sustainability, carbon neutrality and human rights in performance-based cash incentives that form a part of the long-term incentive program. Based on our corporate purpose of lDriving innovation to enrich people`s lives,z Nissan will enhance long-term corporate value and social value, and become a sustainable corporation. These items are particularly important in terms of business strategy and are also drawing the attention of stakeholders as sustainability challenges the company is tackling to improve its mid- to long-term corporate value and social value. *1 *2
Environment: external evaluation on carbon neutrality Social: external evaluation on respect for human rights
(Reflect 10% of performance indicators for the performance-based incentive compensation program.)
Managing the advancement of sustainability
PDCA cycle to promote sustainability
At Nissan, sustainability activities are promoted through the plandocheckact (PDCA) cycle. After the Global Sustainability Steering Committee and Executive Committee (EC) decide the overall direction on sustainability initiatives, progress on activities is managed, societal views are incorporated into corporate activities and external trends are analyzed.
PDCA cycle
Internal management
Plan
Nissan's Global Sustainability Steering Committee and EC define overall direction and measures for the company's sustainability activities.
Based on the two
committees' decisions,
the divisions represented
Do
in the Global
Sustainability Steering
Committee take action
and manage progress.
Act
Nissan defines priority areas of focus based on analysis of social trends, external evaluations and research on competitors.
Check
Nissan considers societal feedback, such as rating agencies and ESG investment.
External communication
*1Please refer to the 2022 Securities Report (P067) for details of the performance indicators for the performance-based incentive compensation program.https://www.nissan-global.com/EN/IR/LIBRARY/FR/2022/ASSETS/PDF/fr2022.pdf#page=69 *2Click here for more information on the Compensation Committee.>>> P127
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Data Sustainability at Nissan
Participation in the United Nations Global Compact
Nissan supports a number of international guidelines and agreements, respecting international policies and standards as it conducts its business. Since January 2004, Nissan has participated in the UN Global Compact, a corporate responsibility initiative built around 10 universal principles regarding human rights, labor, the environment, and anti-corruption. Nissan`s sustainability management aims to enhance the full range of the company`s activities based on these 10 principles. *1
Stakeholder engagement
Dialogue with stakeholders
Nissan defines stakeholders as those individuals and organizations that influence or are influenced by the company`s business. The company aims to align its corporate activities with societal needs. Nissan gathers and integrates stakeholder feedback into its operations to build trustworthy relationships. The company provides various opportunities for dialogue with stakeholders and seeks to identify opportunities and risks in their early stages. These interactions take place at its global headquarters and other facilities in Japan and globally. Nissan established this structure to ensure feedback reaches the company.
Nissan`s stakeholders and engagement opportunities
Shareholders and Investors
Customers
Employees
Nissan`s Stakeholders Local Communities and
Future Generations
Suppliers and Dealers
Governments, industrial NGOs and Associations, business partners,
NPOs and international organizations
*1Click here for more information on the UN Global Compact.https://unglobalcompact.org/
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CEO message
Environmental CSO message
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The Alliance
Governance
Data Sustainability at Nissan
Stakeholders Customers
Employees
Stakeholder engagement
Stakeholder interests, main topics
Customer service interaction, contact through dealers, websites, showrooms, events, customer surveys, media (TV, magazines, social media, etc.), owners meetings, vehicle maintenance, mailing service
· Product and service quality · Customer support
Direct contact (including whistleblowing system), intranet, internal events, interviews, surveys
· Company performance and issues · Workplace diversity · Workplace environment · Career, training
Suppliers and dealers
Suppliers conferences, dealer conventions, business meetings, direct contact, briefings, events, corporate guidelines, websites
· Fair trade · Nissan`s sustainability policies, medium-term
business plan, and purchasing policies
Shareholders and investors
Direct contact with IR team, shareholders meetings, financial results briefings, IR events, IR meetings, websites, mailing service
· Strategies, performance, and sustainability initiatives to enhance corporate value
Major initiatives for 2022
Customer call center response (receives about 200,000 calls in Japan)Quick VOC Quick VOC(P096) Calls for participation in Earth Hour 2022 via SNS
Presidential address Management Information Exchanges (MIEs) by EC members and senior managers Sustainability seminar DEI Fireside Chat (P085)(P110) Dialogues through competency appraisal, performance appraisal lYour Voice,z a suggestion box to collect employees` matters of interests(P110) Global employee survey (P108)
Supplier environmental activity briefing sessions (Japan) Production information meetings (monthly) Suppliers` meetings Purchasing policy briefing sessions NISSAN Global supplier awards (P100) Nissan Green Shop (Japan)(P064)
Shareholder and investor engagement (P013) Sustainability seminar Technology seminar Business strategy briefing Kei EV briefing
Roundtable discussion among outside directors Governments,
industrial associations, business partners, and international organizations
Direct contact, joint research studies, initiatives with industry organizations, roundtables, opinion-exchanges and other events
· Legal compliance · Cooperation with demonstration experiments and
other public measures · Promote joint program
NGOs and NPOs
Direct contact, management of philanthropic programs, donations, disaster relief activities, events, assistance via foundations
· Cooperation and support for the resolution of societal issues
Local communities and future generations
Direct contact with business facilities, local events, plant visits, philanthropic activities, conferences, traffic safety awareness campaigns, assistance via foundations, educational programs, websites
· Local community contributions · Corporate philosophy · Nissan`s sustainability initiatives
Electrify Japan: Blue Switch Program activities: (P117)
Contribution to community development in Fukushima Hamadori utilizing mobility services and energy management Established a NISSAN e-share mobi station that uses renewable energy generated by solar carports at the Hokkaido Hiyama Promotion Bureau. *2 Traffic Safety Future Creation Lab (P078) Participate in UNDP business and human rights project (P073)
Participation as a support member in seven NPOs / NGOs to exchange informations Smile Support Fund (support for seven groups)
Omoiyari Light Promotion activities (urging drivers to turn on headlights) (P077) Conducting of on-site lessons at schools by employees Awarding of the Rikajo (science education grant) development prize (The Nissan Global Foundation)
*1Cumulative total from May 2018 to end of March 2021. Click here for more information on lBlue Switchz. (Japanese only)https://www3.nissan.co.jp/first-contact-technology/blue-switch.html>>> P117 *2Click here for more information. (Japanese only)https://global.nissannews.com/ja-JP/releases/release-3deacb6d976a71e480ed6674022754ea-230322-02-j
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Contents
Corporate direction
CEO message
Environmental CSO message
Social
The Alliance
Governance
Data Sustainability at Nissan
Nissan`s approach to shareholder and investor engagement
Nissan, including its chief financial officer, conducts constructive dialogues with shareholders and investors. To build trustworthy relationships, the company communicates its long-term vision, innovations applied to enhance competitiveness and the latest market trends on a timely basis. Questions and feedback from shareholders and investors are reported to executive management and reflected in the company`s corporate decision making. To mitigate the risk of insider trading, the company refrains from communicating with investors during the period beginning on the quarter-end date and ending at the time of the earnings results announcement.
Communication with shareholders and investors
In addition to disclosing up-to-date information in a timely manner on our IR website, each year we hold events to present our business activities to investors and analysts, focusing on themes most relevant to them and making available our divisional and regional managers to provide the required information. The events held in fiscal 2022 are listed as follows.
Communication with shareholders and investors in FY2022
April
2022: Technology seminar (all-solid-state
batteries, driving assistance technology)
July
2022: Kei EV briefing
(held jointly with Mitsubishi Motors)
September 2022: Sustainability seminar
November 2022: Business strategy briefing
February 2023: Q&A session concerning the Alliance
March 2023: Technology seminar
(electrified powertrains)
The company will continue to disclose information to its stakeholders and investors to increase their understanding of Nissan.
Shareholders meeting
Through its general meeting of shareholders and other gatherings, the company aims to build trust with its shareholders and enhance their understanding of Nissan. The 123rd Ordinary General Meeting of Shareholders was held at Nissan Global Headquarters on June 28, 2022, and was attended by 254 shareholders. The meeting was also webcast live for shareholders. *1
External assessment
Nissan has been recognized by the CDP a globally influential international environmental NPO as an A List company in the Water Security category for the fourth consecutive year. This is the highest rating. We have also earned an A- rating from the CDP for our climate change action and we have been accredited with a leadershiplevel score in both the Water Security and Climate Change categories. We were selected as one of the world`s most socially impactful brands in the Laureus Sport for Good Index for the second consecutive year. *2 *3
Nissan has been a constituent of the FTSE4Good Index Series and constituent of the FTSE Blossom Japan Index for eight consecutive years. Nissan has also continued to be a constituent of the FTSE Blossom Japan Sector Relative Index since its creation in 2021. *4 *5
*1Click here for more IR information.https://www.nissan-global.com/EN/IR/ *2Recognized as an A-List company in the CDP`s Water Security category.https://global.nissannews.com/en/releases/release-7649279cca9d786cbd5af9067235920d-221216-01-e *3Selected for the second straight year in the Laureus Sport for Good Index.https://global.nissannews.com/en/releases/release-4d3e710cf4911c36108b0a44ef21b3f3-221107-01-e *4Click here for more information on the FTSE4Good Index Series.https://www.ftserussell.com/products/indices/ftse4good *5Click her for more information on the FTSE Blossom Japan Index and FTSE Blossom Japan Sector Relative Index.https://www.ftserussell.com/products/indices/blossom-japan
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Key areas Climate change Resource dependency
Sustainability vision
Achieve carbon neutrality by 2050 across the life cycle of its products by the early 2030s all new vehicles offering in major markets will be electrified
Main goals / approaches for 2022
Related materiality issues
Reducing products and manufacturing CO2 emissions Product CO2 emissions reduction: 40% reduction of CO2
emission from new cars (vs. FY2000; Japan, U.S., Europe, China) Overall reduction of CO2 emissions from corporate activities: 30% reduction of CO2 emissions per vehicle sold (vs. FY2005; global)
Vehicle electrification Renewable energy Community development Life cycle management Pursuit of energy efficiency Ecosystem services and
biodiversity
Zero new material resource use
Using materials that do not rely on newly mined resources for 70% of the materials used in each vehicle in 2050
Minimizing usage of new resources, with the efforts of waste to landfill reduction and waste reduction, etc. More than 30% (in weight) of a new vehicle to be non-new
material resources
Sustainable resource management
Air quality
Zero impact
Improving exhaust emissions from products and manufacturing. Cabin air quality improvement: Promote research on technical
solutions Reduce VOC from manufacturing: Promote reduction of VOC
per paint area (vs. FY2010)
Cleaner emissions Product quality Preservation of water, air,
and soil
Water scarcity
Zero stress
Reducing water withdrawal from manufacturing: 21% reduction of water withdrawal per global production (vs. FY2010)
Risk hedge for physical hazards
Preservation of water, air, and soil
SDG areas where Nissan's environmental strategy mainly adds value
Business foundation
Promoting supplier engagement Green purchasing guidelines etc.
Supply chain management Community development
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Environmental policies and philosophy
Environmental policies and philosophy 015 Climate change 023 Air quality 046 Resource dependency 048 Water scarcity 055 Third-party assurance 058 Strengthening our business foundations to address environmental issues 060 Environmental data 143
Environmental principles
We provide customers with innovative products and services, by promoting the effective use of energy and resources, diversifying our sources, and actively using renewable energy and recycled materials. These are just some of the ways in which Nissan is striving to achieve la Symbiosis of people, vehicles, and nature.z To achieve our environmental principles, we have clearly defined our ultimate goal: lTo manage the environmental impact caused by our operations and products to a level that can be absorbed by nature and pass on rich natural capital to future generations.z and set what we want to be: lA sincere eco-innovatorz. This means endeavoring to leave as small an ecological footprint as possible for the Earth`s future. Beyond deepening our awareness of the environment, we strive to conduct all business activities with consideration and kindness for people, society, nature and the Earth, as a means of contributing to the development of a better society.
Sunlight
Higher efficiency Renewables Reduced use Recycling
Energy Resources
More efficient mobility Expansion in distance travelled
Social & economic activities
Emissions & waste Within levels nature can absorb
Thermal radiation * Based on Beyond Growth: The Economics of Sustainable Development, by Herman E. Daly
Nissan`s environmental philosophy: A symbiosis of people, vehicles, and nature
In addition to deepening our understanding of the environment, we conduct all of our operations, including production and sales, with consideration for people, society, nature and the earth, as a means of contributing to the building of a better society.
Ultimate goal
We will reduce the environmental impact and resource consumption of our corporate operations and vehicles throughout their life cycle to a level that can be absorbed naturally by the nature and pass on rich natural capital to future generations.
What we want to be: A sincere ecoinnovator
Sincere: Proactively address environmental challenges and reduce our impact on the environment. Eco-Innovator: Develop a sustainable mobility society through innovative technology in products and services.
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Nissan`s understanding of environmental issues
Environmental and social issues are attracting more and more attention in recent years. With the world`s population expected to reach 9.7 billion by 2050, society faces problems in areas such as poverty and hunger, energy, climate change, and various conflicts. Among these, the issue of climate change is considered to be the cause of widespread natural disasters that occur frequently all over the world every year, thus it is more need than ever to curb the effects of climate change. To address these issues, the UN adopted 17 Sustainable Development Goals (SDGs) and 169 targets, and there are high expectations that corporations as well as nations will play a major role in realizing the SDGs. Nissan supports the SDGs, recognizing the growing importance of delivering safe, secure, and sustainable mobility for all and providing value to society. The auto industry is dependent on the global environment in complex and diverse ways, while also having a significant impact on the environment. Nissan is tackling a range of issues to promote sustainability by advancing measures to mitigate climate change and conserve energy, preserve air quality and other natural capital, use mineral resources efficiently, properly manage chemical substances, efficiently allocate scarce resources, and promote good health. We are also improving our business to reduce our dependence on fossil fuels. As a global automaker, we take active steps to identify direct and indirect environmental impacts of our activities, working with business partners and society to minimize the negative impacts of our products and services throughout their life
cycle. We acknowledge that our activities and efforts must be continuously improved and advanced; we seek to provide greater value for society by delivering sustainable mobility for all while alleviating environmental impacts associated with climate change, natural resource dependency, water use, and other issues.
Nissan`s strategic approach to environmental issues
To solidly contribute to global environmental issues, Nissan engages in direct discussions with environmental experts, investors, NGOs, NPOs and other organizations throughout the world and identifies, we analyze opportunities and risks facing the Company and decide on material issues recognized as important by both stakeholders and Nissan, contributing to the formulation of Nissan`s medium- and longterm environmental strategies. Climate change, resource dependence, and water resources/ air quality were set as the scope of Nissan`s environmental strategy for consideration. These approaches respond to the SDGs*1 and contribute to their attainment. *2
*1Click here for more information on SDGs areas where Nissan`s environmental strategy mainly adds value.>>> P014 *2Click here for more information on the Nissan`s materiality including environmental issues.>>> P005
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Initiatives to specify dependencies on the ecology and impact as a manufacturer
At the 15th United Nations Biodiversity Conference (COP15) held in 2021 and 2022, it was discussed that we are on the verge of an unprecedentedly multifaceted crisis, including significant loss of biodiversity and degradation and pollution of the both land and sea. That same year, University of Cambridge Emeritus Professor Sir Partha Dasgupta published The Economics of Biodiversity: The Dasgupta Review espousing the idea of introducing natural capital into the economy, which was referenced at the G7 Summit and contributed to influencing international politics. These international discussions are backed by scientific evidence acquired in the world`s first Millennium Ecosystem Assessment conducted by the United Nations from 20012005. This assessment focused on two main points, the first was deterioration of global ecosystems, which is progressing at an unprecedented rate and scale, and the second was ecosystems that create many ecosystem services such as food, freshwater supplies, climate control and protection from natural disaster, all of which substantially benefit humanity. At the same time, Nissan incorporated the Corporate Ecosystem Services Review*1 method, which considers the necessity of grasping the impact and dependence of corporate activities on ecosystems, and launched assessments of the overall value chain including vehicle operation. In 2010, the results of research conducted with
the United Nations University were published in the report Ecosystem Services and the Automotive Sector *2. Through these assessments, we identified three priority areas on which we should focus as an automaker: Procurement of Energy, Procurement of Material Resources and Usage of Water Resources. We also estimate that in 2013, the use of water resources in the upstream resource procurement process was more than 20 times the amount of water used by Nissan. Ecosystem and biodiversity assessments are reflected in revised materiality*3 decisions and incorporated into specific actions as Nissan Green Program policies and strategies. Nissan endorsed the TNFD*4`s recommendations and joined the TNFD Forum to support its activities believing that it is important to communicate more clearly and accurately these initiatives to investors and other stakeholders. We will consider further disclosure in line with the recommended framework.
*1Developed by the World Resources Institute (WRI) in cooperation with the World Business Council for Sustainable Development (WBCSD) and the Meridian Institute based on the UN Millennium Ecosystem Assessment (MA). *2Click here to read lEcosystem Services and the Automotive Sectorz.https://www.nissan-global.com/EN/DOCUMENT/PDF/ENVIRONMENT/SOCIAL/ecosystem_services_and_the_automotive_sector.pdf *3Click here for more information on the Nissan`s materiality including Environmental issues.>>> P005 *4TNFD: Taskforce on Naturerelated Financial Disclosures
ESG data book 2023
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Global environmental management framework and governance system
To promote comprehensive environmental management as a global company while responding to a diverse array of environmental issues, Nissan has a governance system built on dialogue and partnership with each region and many corporate functions, as well as with a variety of stakeholders. The Global Environmental Management Committee (G-EMC), co-chaired by a Board member, determines overall policies and the content of reports before the Board of Directors. Its meetings are attended by related corporate officers to cover whole value chain. Executives also clarify risks and opportunities at the corporate level and determine the specific programs to be undertaken by each division, using the PDCA cycle to manage and operate the environmental programs efficiently. Environmental risks are regularly reported in the Internal Control Committee meetings to strengthen corporate governance. We actively communicate with a broad range of stakeholders through our ESG data book and by answering inquiries from various environmental rating agencies.
Global environmental management framework
Dialogue with stakeholders
Major issues
Climate change Resource dependency Air quality Water scarcity
Suppliers Product
Manuf.
and
and tech.
and
procurement development logistics
Sales and offices
Use, service and
ELV
Nissan global and regional environmental management
Environmental management organization
Board of Directors
Global/Corporate
Plan
Function/Regional PDCA
Executive Committee
Global Environmental Management
Committee
Environmental
Act
Strategy
Do
Organization
Check
PDCA PDCA
Customers Employees
NGOs / NPOs
Advisory Meetings, etc.
Business Partners
Shareholders / Investors
Communities / Future Generations
National / Local Governments
ESG data book 2023
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Further alignment with governments and partner companies
Since 2006, Nissan has estimated long-term CO reductions based on the latest Intergovernmental Panel on Climate Change (IPCC) reports, set retroactive medium-term goals in the Nissan Green Program, and made efforts to realize a society that is la Symbiosis of People, Vehicles and Naturez by ensuring these goals are achieved every year. The Paris Agreement was adopted at COP21 in 2015. At that time Nissan recognized the importance of the common goals of lholding the increase in the global average temperature to well below 2^ and pursuing efforts to limit the temperature increase to 1.5^ above preindustrial levels,z and reaffirmed the consistency between these goals and Nissan`s long-term vision. In addition to support and endorsement of the Paris Agreement, from the IPCC special report Nissan recognized the need to further enhance its vision. In January 2021, Nissan declared the goal of carbon neutrality in 2050 across the product life cycle including business operations. Nissan announced Nissan Ambition 2030 in November 2021, which includes promoting electrification initiatives that combine ambitious actions. Activities included the creation of an EV ecosystem require collaborations with governments, and a wide range of partners including companies in other industries. With regard to coordination with governments, Nissan made the decision to participate in the GX League*1 to expand opportunities for collaborations. As one of 440 member companies participating in the GX League, Nissan strives to enhance the efficacy of its climate change initiatives.
We also reviewed the stances of our industry associations on climate change and confirmed that they are in alignment with the direction Nissan should be heading. We will continue to collaborate within the automotive industry through the activities of our industry associations and take on the challenge of becoming carbon neutral together with our partners.
Results of reviews of stances at industry organizations to which Nissan is a member
Group
Paris Agreement Stancethe source*2
Japan Automobile Manufacturers
Association (JAMA)
· All out to achieve carbon neutrality (CN) in 2050 · CN by 2050 is not achievable without breakthrough
technologies, premised on inexpensive and stable CN electricity and requiring strong support incl. policy and financial measures (April 8, 2021: Probing deeper into energy conservation, issues and requests targeting CN in 2050)
Nissan stance alignment with Paris Agreement
· JAMA`s goal of CN in 2050 aligned with Paris Agreement goals and Nissan`s vision
· CEO Uchida is the JAMA vice chair, Nissan executive officers are subcommittee chairs
· Developing fair and equitable LCA evaluations for autos focused on CN, promoting LCA international standardization through its subcommittee
· Nissan and JAMA aligned and will continue to cooperate toward CN in 2050
Japanese Business Federation (Keidanren)
· Environment is the foundation of business activities and daily life; a sustainable society is the business community`s top concern.
· Keidanren works with the government toward lCN by 2050z with unwavering determination (December 15, 2020: Toward CN by 2050 (lSociety 5.0 with CNz) Determination and Actions of the Business Community)
· Confirmed Keidanren`s goal of CN in 2050 is consistent with Paris Agreement and Nissan`s vision
· Nissan and Keidanren aligned and will continue to cooperate toward CN in 2050
Alliance for Automotive Innovation (AAI)
· Auto industry is poised to target a 4050% EV ratio by the end of this decade (October 12, 2021: President and CEO John Bozzella)
· AAI`s ambitious EV ratio of 40-50% consistent with Nissan`s goal for a 40% EV ratio in U.S. by 2030
· Nissan and AAI aligned and will continue to cooperate to achieve these goals
*1Click here for more information on lGX Leaguez. (Japanese only)https://gx-league.go.jp/ *2Following text is translated by Nissan.
ESG data book 2023
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Environmental action plan: Nissan Green Program (NGP)
We first announced the Nissan Green Program (NGP) medium-term environmental action plan in 2002 to achieve our environmental philosophy of la Symbiosis of People, Vehicles, and Naturez and to ultimately reduce our environmental dependence and impact to levels that nature can absorb.
NGP2022 key issues and challenges
Based on environmental materiality analysis, Nissan has identified lclimate change,z lair quality,z lresource dependency,z and lwater scarcityz as important issues under NGP2022*1, started from fiscal 2017. Furthermore, in order to contribute to the resolution of these four important issues and create new value, we also worked to strengthen the business foundation related to environmental issues through stakeholder engagement aimed at understanding the needs of stakeholders.
Evolution of NGP
2002
NGP2005
Reducing environmental impact on urban and regional areas
2006
NGP2010
Reducing global environmental impact to a level which can be absorbed naturally by the Earth
2011
NGP2016
Reducing use of resources and global environmental impact to a level which can be absorbed naturally by the Earth
2017
NGP2022
Resolving social issues to build a better world
2023
NGP2030
Ensure our lives are sustainable and in harmony with nature
NGP2022 discloses indicators and progress on initiatives related to the four identified material issues every year. In addition to the development and production departments involved in car manufacturing, the sales and service departments and Nissan as a whole also accelerated efforts related to environmental issues while strengthening our business foundation and working to create social value. We took on the challenge of addressing the following key issues, striving not just to attain compliance but also to meet society`s expectations and to realize our long-term vision, we achieved our objectives with the exception of some activities impacted by COVID-19 and lower production volumes owing to semiconductor shortages. During 2023, we will launch NGP 2030 as 5th program, which strives for climate change, minimizes resource dependency, and conserves water/air quality by 2030 as key issues.
NGP2030 key issues and challanges Climate change: Toward the goal of carbon neutrality by 2050, strive for electrification potential and Monozukuri advantage. Also, we will start initiatives to aim for 1.5DS level emission on scope 1 and scope 2 by 2030. Resource dependence: Reinforce material circularity and maximize the use of vehicles as a resource through circular a economy. Water resources/air quality: Conduct activities aligned with the water issues of each region. Ensuring compliance with air quality and expanding the scope of the activities.
*1Click here for more information on NGP2022.https://www.nissan-global.com/EN/SUSTAINABILITY/ENVIRONMENT/GREENPROGRAM/
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
NGP2022 action plan
Activities
NGP2022 objectives
NGP2022 result
Climate change (Product)
Long-term vision: Realize carbon neutrality by 2050 1 Product CO emission reduction 2 Solid EV leadership 3 Support driver`s behavior 4 Expansion of vehicle usage
Climate change (Corporate)
40% reduction of CO emissions from new cars (vs. FY2000; Japan, U.S., Europe and China)
Reduced by 41.2%
Nissan LEAF, the first mass production EV, sold accumulated over 640,000 units in global. In
addition to the innovative EV, Nissan Ariya, the new Kei EV, Nissan Sakura was released in 2022
and most sold EV in Japan.
Promote development to improve actual fuel consumption
Completed development of practical fuel efficiency improvement technology by individual driver air conditioning besides automatic support for driving.
Global expansion of V2X for energy management (Japan, U.S. and Europe)
As FY2022 result, V2X charger is ready to provide its service for Nissan Leaf user in US. Nissan conducted V2X pilot projects globally includes UK, US and Japan with various partners in the period of NGP2022.
Long-term vision: Realize carbon neutrality by 2050 5 Overall reduction of CO emissions from corporate activities 30% reduction of CO emissions per vehicle sold (vs. FY2005; global)
6 Reduction of CO emissions at manufacturing sites
36% reduction of CO emissions per vehicle produced (vs. FY2005; global)
7 Reduction of CO emissions of logistics
12% reduction of CO emissions per production (vs. FY2005; Japan, North America, Europe and China)
8 Reduction of CO emissions at offices (including R&D sites) 12% reduction of CO emissions per floor area (vs. FY2010)
9 Reduction of CO emissions at dealers
12% reduction of CO emissions per floor area (vs. FY2010; Japan)
10 Expansion of renewable energy use Air quality
Expansion of renewable energy introduction
Reduced by 27.7% Although there was impacts due to production volume declining by COVID-19 and semiconductor shortages, steadily promoted corporate activity initiatives for CO reduction. Reduced by 28.8% Manufacturing sites` energy efficiency was significantly improved as a result of conventional energy saving activity, utilizing renewable energy and introducing Nissan Intelligent Factory. Although there was impacts due to production volume declining by COVID-19 and semiconductor shortages, activity was steadily promoted and total CO emission was reduced. Reduced by 40.9% Conducted progressive modal shift in China and Europe, reduction of air transportation and improvement of transport efficiency like a loading containers and packing mode. Reduced by 23.5% Energy consumption was decreased due to declining attendance rate by COVID-19. Also, CO reduction activities such as energy saving(LED replacement, etc.,) were promoted. Reduced by 17.6% Dealer has actively introduced environment friendly facilities(LED, air conditioner and heat shield sheet, etc.,) when renovate shop. Some dealers have started introducing renewable energy. Renewable energy introduction rate 11.9% Expanded renewable energy introduction such as photovoltaic and wind power generation in global site. And in Mexico, purchased electricity from renewable energy such as biomass and wind.
11 Cabin air quality improvement
Promotion of research on technical solutions
Completed technical development and expanded technology application to vehicle.
12 Reduction of VOC emissions at manufacturing sites
Promotion of VOC emission reduction per paint area (vs. FY2010)
Reduced by 35.8% In addition to applying water-based paint, VOC emissions reduced by improving thinner-solvent recycling rates.
ESG data book 2023
021
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Activities Resource dependency Long-term vision: Reduce dependency on new materials by 70%
13 Development of biomaterials
NGP2022 objectives Promotion of research on technical solution
14 Proper use of chemical substances
Implementation of the Alliance policy on chemical substance management
15 New resource usage minimization
More than 30% (in weight) of a new vehicle to be non-new material resources
NGP2022 result
Promoted development of biomaterials for material types which covers more than 70% of the plastics used in vehicles. Maintained material list annually and number of chemical substances became doubled during NGP2022 period. Achieved non-new material resources usage rate over 30%.
16 Expansion of remanufactured parts 17 Expansion of battery reuse 18 Adoption of die- less forming
19 Waste reduction (manufacturing)
20 Waste to landfill reduction (manufacturing) Water scarcity 21 Water withdrawal reduction (manufacturing) Business foundations 22 Governance enhancement
Duplation of remanufactured item coverage (vs. FY2016) Expansion of the EV battery reuse business Plan and implement technical development BAU 2% (Japan) and BAU 1% (overseas) reduction of waste
Landfill ratio reduction
21% reduction of water withdrawal per global production (vs. FY2010)
Implementation of our environmental compliance policy
Remanufactured parts coverage was doubled compared to FY2016. Promoted the secondary use business by expanding the production and application of refabricated batteries. Completed technical development and started application to heritage parts. Achieved reduction rate of below every year Japan more than 2% vs BAU Overseas more than 1% vs BAU Japan:Significantly reduced waste generated at dry booth painting process by reusing at iron
casting process. Overseas:Installed a compressor to make styrofoam salable and promoted waste reduction at a
plant in U.S.A.. Reduced landfill ratio by 4.2% Achieved zero landfill at all plants in Japan and oversea plants in Brazil, Mexico and India etc. A plant in India achieved zero landfill in FY2022 by effectively utilizing the sludge generated from the painting process. Other plants also promoted landfill disposal reduction by thoroughly sorting waste etc.
Reduced by 8.4% Conducted various water reduction activities, including efficiency of water use improvement at manufacturing process and wastewater reuse. Although there was impacts due to production volume declining by COVID-19 and semiconductor shortages, effective use of water resources was steadily promoted.
Conducted global engagement of environmental compliance policy thoroughness.
23 Further application of LCA 24 Engagement with suppliers 25 THANKS activities promotion
Measure lifecycle environmental impact of vehicle and new technology
Totally 35 models were analyzed during NGP2022. 15 models are under disclosing on website.
Implementation of environment data survey to promote engagement and reduce Promoted supplier engagement globally through annual CDP survey and environmental activity
environmental impact
explanation meeting.
Further promotion of Supplier THANKS activities
Promoted of supplier THANKS activities.
26 Nissan Green Purchasing Guidelines 27 Education program for the next generation 28 Collaboration with NGOs for ecosystem conservation
Adoption of updated policy Global expansion of Nissan Waku-Waku Eco school program Enhancement of collaboration and partnerships with NGOs
Strengthened the Nissan Green Purchasing Guidelines and promoted its adoption. Conducted global expansion of Nissan Waku-Waku Eco school (Brazil and Thailand). Provided Waku-eco program more than 630 schools in Japan for 6 years. Global participation in EARTH HOUR started from 2018, and now each region actively joins the campaign with their own plan.
ESG data book 2023
022
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Climate change
Strategy for addressing climate change
Toward a carbon-neutral society
In 2015, the UN Climate Change Conference (COP21) adopted the Paris Agreement to keep the increase in global temperature to lwell belowz 2C. COP26 in 2021 lresolved to maintain efforts to limit temperature increases to 1.5Cz with more emphasis on llimit to 1.5Cz and added lglobal CO emissions to virtually zero by mid-century.z Furthermore, the Sustainable Development Goals (SDGs) adopted by the UN in 2015, like the Paris Agreement, also call for concrete measures to address climate change. Nissan has declared its commitment to achieving carbon neutrality by the 2050 vehicle lifecycle. We are focusing on electrification of vehicles and innovation in corporate activities together with our suppliers to achieve this goal.
Climate change scenario analysis to strengthen strategies for 2050 society
Nissan`s efforts toward the environment have achieved continuous results by consistently reaching milestones backcasted from our Long-term vision. However, compared to 2006 when we formulated the Long-term Vision based on the 2C scenario from the Intergovernmental Panel on Climate Change (IPCC) report, the threat of extreme weather due to climate change is increasing, thus we believe it is necessary to enhance our strategy and make it more resilient amid growing uncertainties. The scenario analysis conducted for the purpose of strategic enhancements assumes societies based on the 4C and 2 C scenarios presented in the International Energy Agency (IEA) time horizon up to 2050 and the 1.5C scenario in the IPCC special report. Furthermore, in consideration of factors including changes in customer and market acceptance, tightening automobile regulations and the transition toward clean energy, Nissan`s business activities, products and services were examined in terms of strategic resilience to the opportunities and risks posed by climate change in the following four steps.
Four steps for review Evaluate past materiality, investigate risk factors with a
decisive impact on the automotive sector due to climate change in documented studies and define main drivers in categories such as population, economy, geopolitics, climate change policy and technology.
Categorizing main drivers into physical risks and transition risks, then considering the trade-off relationships of each, we confirmed the degree of risk in three scenarios where the average temperature on Earth increased by 1.5C, 2C and 4C.
Based on the degree to which the automobile sector was impacted and the timeline, items with a more substantial impact were screened from the main drivers.
Changes, conditions, and effects were adjusted in each scenario to provide guidance based on qualitative evaluation of the elements necessary for enhancing strategies.
As a global automobile company, it will be more than 170 countries and markets where our production facilities operate and our products are provided, therefore we will get the impact from climate change all over the world. When taking a comprehensive perspective of this scenario analysis, even the market infrastructure, regulations and actual usage are different, Nissan`s electrification and other related advanced technologies have the potential to create opportunities for effective capabilities in scenarios other than 2C. Nissan has come to recognize once again the importance of further accelerating efforts toward this realization as well as the fact that activities integrated with the supply chain are essential for responding to risks. In particular, the expansion of zero-emission vehicles is not only a major step towards the shift to a carbon-free society as an automobile sector, it is also a technology that contributes to the resilience of society in power management and disaster mitigation and prevention. Nissan believes this will create value for society and business.
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
However, if the societal response to climate change is delayed, possible risks include transition additional policies and regulations for a decarbonized society, increases in R&D efforts and changes in market demand or corporate reputation among others. Possible physical risks, such as an increase in extreme weather and rising sea levels may lead to cost increases and declines in vehicle sales that have the potential to substantially influence on our financial situation. To avoid risks such as these to the extent possible and create future opportunities, Nissan is leveraging knowledge gained from scenario analysis for use in actual activities and reviewing strategies for expanding resilience. We believe it is important to more clearly and accurately communicate these impacts and the strategies considered to investors and other stakeholders. Nissan supports the TCFD`s recommendations and will strive to disclose information in line with its recommended framework. (TCFD: The Task Force on Climate-related Financial Disclosures)
Envisioned scenarios and associated opportunities and risks
Scenario assumption
1.5C
4C
Area of impact
Business activity opportunities and risks related to ongoing climate change
Policies and regulations
Respond to further tightening of vehicle fuel efficiency and exhaust gas regulations, develop electric powertrain technologies, and may influence production costs Increased burden of energy costs due to expansion of carbon taxes, expand investment in energy-saving equipment as policy
Cost effects of utilizing next-generation
vehicle technologies such as in-vehicle
batteries and other EV-related technologies
Technological changes
as well as expanding autonomous driving technologies
Increased demand will affect supply chains for rare earth metals used for in-vehicle battery material and cause an increase in stabilization costs
Market changes
Changes in consumer awareness leads to reduced new vehicle sales due to the selection of public transportation and bicycles and the transition to mobility services.
Opportunities
Expand the provision of power management opportunities with Vehicle to Everything (V2X), an EV energy charging/discharging technology, and redefine the value of EV, especially with Vehicle to Grid (V2G)
Extreme weather
The impact on the supply chain and the operation of production bases due to extreme weather such as heavy rain and drought will increase property insurance costs and air conditioning energy costs
The need for securing emergency power sources Opportunities using EV batteries is increasing as a disaster
prevention and mitigation measure
Financial impact assessment of carbon tax effects
In fiscal 2021, we have started a financial impact assessment, based on the scenario analysis that we have already disclosed. Below are the results of our assessment of the impact of carbon taxes.
Background of financial impact assessment scenario selection Pricing for CO emissions is progressing, and an increasing
number of countries and regions are introducing carbon taxes. Although the level of taxation and the industries subject to the tax vary by country and region, this analysis will focus on the financial impact of the carbon taxes due to its significant impact on companies.
Evaluation of calculation methods and estimated taxes, assumptions In our calculations, we referred to the IEA report and other reports on carbon taxes as the basis for our carbon tax projection. The carbon tax on GHG emissions in 2030 was calculated by comparing cases where: 1) Corporate activities as of 2018 have been continued, and 2) The Nissan Green Program promotes environmental activities and the impact of annual carbon tax could be curbed
Risk: Expanded impact of carbon taxes
Increased burden of energy costs
2030 Carbon tax generated on CO2 emissions/per single year
If corporate activities as of 2018 are continued
If initiatives to address environmental issues are promoted through the NGP
Impact on carbon tax in a single year: Approx. ¥10 billion
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Impact on business outlook We estimated that the carbon tax impact of Scope 1 & 2 could be kept to approximately ¥10 billion if the environmental issues addressed in the Nissan Green Program were implemented, compared to the case where GHG emissions were not reduced.
Response strategies Nissan has been promoting the Nissan Green Program for about 20 years to address environmental issues and has achieved an average 27.7% reduction in CO emissions from corporate activities per vehicle in fiscal 2022 compared to the fiscal 2005 level. The EV36Zero, announced in July 2021, which creates an ecosystem for EV production, and the Nissan Intelligent Factory, announced in October that year, are concrete examples of Nissan`s future roadmap. We are working toward energy reduction, making manufacturing facilities more efficient, and applying electrification technology while expanding the use of alternative energy sources such as renewable energy, bioethanol, and solid oxide fuel cells (SOFCs). In addition, we will assess the impact of the transition to decarbonization and promote activities that consider a just transition that does not have negative impacts, thereby achieving carbon neutrality. We will continue to improve the accuracy of our scenario analysis methods and expand the scope of clients to be analyzed to ascertain the amount of risk more accurately. We will further enhance our disclosure of information to concretize our vision for 2030 and promote our initiatives while placing importance on dialogue with our stakeholders.
Nissan`s steps to reduce CO emissions
The business structure of the automobile industry is changing greatly in the face of demands to reduce CO emissions and dependence on fossil fuels. Nissan has been proactively engaged in environmental responsiveness and the creation of social value, such as reducing CO emissions and realizing the practical use of electrification technologies. As a global automaker, Nissan considers emissions across the entire value chain it shares with its suppliers, from procurement of raw materials to transportation and operation of vehicles. We understand how important it is to balance environmental initiatives with business activities, and strive to reduce emissions through new technology developments, renewable energy use, and other measures.
Product and corporate activity initiatives
Climate change also greatly heightens customer needs for energy-efficient mobility. We aim to those needs by clearing stringent CO emissions regulations, as outlined in the Nissan NEXT*1 transformation plan calling for annual aggregate sales of 1 million 100% EV and e-POWER vehicles by fiscal 2023. We will further promote global activities targeting carbon neutrality in 2050, aiming for 100% electrification by the early 2030s in key markets. In our corporate activities, we will actively advance energysaving measures, shifting to climate-efficient logistics and introducing renewable energy sources. We will realize a carbon-neutral future by promoting the electrification of automobiles and pursuing the sustainability
of our business activities in line with the expansion of renewable energy and charging infrastructure in society. In addition, Nissan has established a medium-term environmental action plan NGP2022*2 as its strategy, which runs through 2022, and has developed various future climate change scenarios to strengthen the resilience of its climate change strategy.
CO emissions in the value chain*3
Suppliers
19.520 million tons
Production
2.610 million tons
Logistics
1.483 million tons
Offices, dealerships
0.619 million tons
Vehicle usage
180.880 million tons
Recycling
Reducing CO2 emissions from corporate activities Reducing CO2 emissions from products and service
*1Click here for more information on Nissan NEXT.https://www.nissan-global.com/EN/COMPANY/PLAN/NEXT/ *2Click here for more information on the Nissan Green Program 2022 (NGP2022).https://www.nissan-global.com/EN/SUSTAINABILITY/ENVIRONMENT/GREENPROGRAM/
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Product initiatives
Policies and philosophy for product initiatives
Our long-term vision
Based on the IPCC Fourth Assessment Report, Nissan made its own estimation, and in 2006, set a scientifically-based long-term CO emission reduction target for new vehicles by 2050. Recognizing that this would require drastic reduction of lwell-to-wheelz CO emissions from new vehicles, we set about developing a new scenario for powertrain technologies. Additionally, under the Nissan Green Program 2022 (NGP2022), to remain on track with the 2050 target, we aimed to reduce CO emissions from new vehicles by 40% compared to fiscal 2000 by 2022 (in Japan, the U.S., Europe and China). As a global leader in technological advancements through the electrification of our products, we believe we can substantially contribute to global efforts to keep the temperature increase lwell belowz 2C. These initiatives also reinforce the sustainability of our own business. Although NGP2022 has achieved a certain success, the IPCC`s Special Report published in 2018 pointed out the impact of 1.5C of global warming and related global greenhouse gas (GHG) emission pathways on the Earth as a whole. Furthermore, governments, municipalities, and customers in each market have even higher expectations for carbon neutrality. Nissan is working toward higher goals by aiming for carbon neutrality in the vehicle life cycle and all business activities
by 2050. As a milestone toward the realization of this goal, in January 2021 we announced that Nissan has set the goal of achieving carbon neutrality across the company`s operations and the life cycle of its products by 2050. As part of this effort, by the early 2030s every all-new Nissan vehicle offering in key markets will be electrified. The long-term vision Nissan Ambition 2030*1 positions electrification as the core of its long-term strategy, and we have announced an increase in the number of electrified vehicle models to be launched by 2030 to 27, including 19 EV models.
CO Reduction Scenario
This supports our goal of achieving carbon neutrality throughout the product life cycle by 2050. By fiscal 2030, the model mix of electrified vehicles for the Nissan and Infiniti brands combined is expected to increase to over 55% globally, up from the previous forecast of 50%. In Europe in particular, the sales ratio of electrified vehicles is expected to be 98% in fiscal 2026, further accelerating our electrification strategy. After implementing CO emission reduction activities to the full extent possible, we will also consider offsets and other adaptations for unavoidable CO emissions to achieve our goals throughout the entire lifecycle.
CO2 emissions from new cars
% 100
30% 40%
Well-to-wheel CO2 emissions reductions with future powertrains
% 100
80
80
60
60
40 20
0 2000 base
2016 2022
2050 (FY)
Non-hybrid vehicle
Hybrid vehicle
Our focus area of the Nissan Ambition 2030
Renewable
40
electricity
Carbon
20
emissions
offset
Electric vehicle
Fuel-cell
0
electric vehicle
(EV)
(FCEV)
Accelerating electrified mobility with diverse choices and experiences
1. Increase electrification sales mix
Increasing accessibility and innovation in mobility
1. Advanced autonomous vehicle technologies 2. Evolved all-solid-state batteries (ASSB) 3. Create new mobility services for more
efficient and sustainable mobility
Global ecosystem for mobility and beyond
1. EV36Zero 2. Enhance infrastructure and support a circular
economy in energy management 3. V2X
*1Nissan Ambition 2030https://www.nissan-global.com/EN/COMPANY/PLAN/AMBITION2030/
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Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Establishing leadership in EVs towards zeroemissions society
We consider the introduction and adoption of zero-emission vehicles one of the pillars of our corporate strategy. We are taking a comprehensive approach that involves boosting production and sales of zero-emission vehicles along with other activities coordinated with a variety of partners to popularize their use. We are committed to becoming a leader in the field of zero-emission vehicles. Increasing uptake of zero-emission vehicles will bring lifestyle changes that lay the groundwork for a new mobility society. We provide more than just EVs themselves; we also embrace the new values that they represent.
Building a zero-emission society with EVs
Zero-emission vehicle engineering, manufacturing
Battery secondary use
Utilizing renewable energy for charging
Construction of vehicle-charging infrastructure
Secondary use and recycling of batteries
Our 2010 launch of the first Nissan LEAF made us pioneers of mass-produced EVs. Since then, we have sold more than 1,000,000*1 EVs (including joint venture sales) around the world in total, which will contribute to carbon neutrality, enable Nissan to achieve sustainable and profitable growth, and contribute to reducing the environmental impacts of company business activities. Our transformation plan, Nissan
NEXT, calls for even more Nissan EVs, designed to appeal to customers with an ever-wider range of needs.
Launch of 100% renewable energy EV charging services at Nissan dealers and other locations As part of our efforts to create a zero-emissions society utilizing EVs, we have announced that starting September 2023, 100% of the electricity used for quick charging at Nissan dealers will come from renewable energy sources.*2 Through these activities, Nissan is committed to working with everyone toward the realization of a zero-emissions society.
*1Result as of July 25th, 2023. Click here for more information on.https://global.nissannews.com/en/releases/nissan-global-ev-sales-surpass-1-million-unit-milestone *2When quick charging using the Nissan Zero Emission Support Program 3 (ZESP3), a charging support program for owners of electric vehicles (EVs).
Click here for more information on. Japanese onlyhttps://global.nissannews.com/ja-JP/releases/release-33edc71f3a72a841a38960aa7304ed8b-230517-02-j *3Click here for more information on Nissan Intelligent Mobility.https://www.nissan-global.com/EN/INNOVATION/TECHNOLOGY/ARCHIVE/NIM/
Managing actions through products
Key activities in NGP2022
The CO emissions of a vehicle in use are influenced not only by engine performance and fuel type but also by traffic conditions and driving skills. Decarbonizing society will require new vehicle usage patterns. Nissan takes a threefold approach to product development aimed at mitigating real-world CO emissions that addresses vehicle, driver, and new mobility value.
1. Adopt cleaner energy to reduce vehicle CO emissions
Extend electrification across all brands under the Nissan Intelligent Mobility strategy.*3 EV lineup and deploy e-POWER technology in core Nissan products.
2. Promote technology-based driver assistance and accelerate connected car development and commercialization
Develop e-Pedal, which regenerates energy when the driver eases up the accelerator pedal, and e-POWER electric powertrain fusing gasoline engines and electric motors. Promote adoption of route guidance technologies based on real-time information from departure point to final destination.
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Environmental policies and philosophy
Corporate direction Climate change
3. Provide new mobility value Provide new mobility services and expand the value of vehicle use. Pursue global expansion of V2X energy management solutions and engage with stakeholders to support V2X device commercialization.
V2X
Nissan`s Vehicle-to-X (V2X) is a technology that efficiently utilizes the electrical energy stored in the batteries of electric vehicles by transferring it to the Smart Grid via bi-directional chargers.
Renewable energy sources such as solar and wind power will drive carbon neutrality. Still, they are also challenging to manage, as fluctuations in power generation can lead to surpluses or shortages.
Electric vehicles` batteries can absorb fluctuations by charging and discharging this valuable electricity to be used more stably in Smart Grid. Also, with its application in times of disaster, the value and potential of V2X are expanding.
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Product initiatives: Achievements
Toward a 40% reduction in new vehicle CO emissions
In fiscal 2022, CO emissions*1 in Nissan`s main markets of Japan, the U.S., Europe, and China were 41.2% lower than fiscal 2000 levels. These improvements involve the development of technologies that consider cabin space, application, and price in order to adopt the most fuel-efficient technologies for each vehicle, then bring them to market. Improving energy efficiency of engines, transmissions and
electric powertrains Promoting vehicle electrification and the effective capture
and reuse of kinetic energy from braking Adoption of materials replacement, structural optimization,
and development of new manufacturing processes.
We select the optimal fuel economy technologies for particular vehicles, taking into consideration factors like space within the vehicle, usage, and economics, and bring them to market. Our goal is to reduce bot fuel consumption and CO emissions without sacrificing the pleasure and ease of driving, As a result of these initiatives, we achieved over 40% reduction in CO emission compared to fiscal 2000 levels 1 year ahead of target.
CO emissions from new vehicles (Global)*2
% 100 95 90
100
90.1
-41.2% reduction
85
80
75
70
65
62.6
57.5
58.8
60
2000
2005
2020
2021
2022 (FY)
*1From new vehicles in the Japanese, U.S., European, and Chinese markets. *2Reduction in CO emissions calculated by Nissan.
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Nissan`s electrification technologies for achieving carbon neutrality
Accelerating the advancement and promotion of electrification technologies
By the early 2030s every all-new Nissan vehicle offering in key markets will be electrified as we pursue further innovations in electrification. Nissan calculations show that electrified vehicles can reduce CO emissions over their entire life cycle relative to gasoline powered vehicles of the same classfrom the extraction of raw materials, manufacturing, logistics, and use to endof-life disposal. By contributing to the shift to renewable energy, electrified vehicles play an essential role beyond transportation in helping to achieve a low-carbon society. Nissan is working on advances in electrification technologies that can reduce CO emissions, as well as the development of systems that can be installed in various vehicle models. Nissan will promote the spread of electrified vehicles based on the two pillars of EVs and e- POWER, which have the common feature of being 100% motor-driven.
Expansion of electrification lineup
Investment in electrification
2 trillion yen
By 2026
Electrified vehicles
20 models
Global electrification sales mix
44% or more
By 2030
19 EV models among
Global electrified vehicle model mix
27 electrified vehicle models
55% or more
*1Click here for more information on Nissan life cycle assessment.>>> P063
Expanding the EV model lineup
The Nissan LEAF is a Zero-emission vehicle, emitting no CO or other exhaust when driving. Since its launch in 2010, it also earned high praise for the smooth, strong acceleration and quiet operation of its electric motor powered by a lithiumion battery. *1 In 2022, following the Nissan LEAF and Nissan ARYIA, we launched the Nissan Sakura, a completely new massproduced minicar that runs on 100% electricity. In addition to the minicar`s unique small turn radius performance, the Nissan Sakura will offer the quiet, powerful, and smooth acceleration unique to Nissan`s EV, fully leveraging technologies cultivated in developing the Nissan LEAF.
The Nissan Sakura is equipped with the same state-of-theart lithium-ion battery used in the Nissan LEAF. Its universal stack structure, which enhances installation efficiency, facilitates a spacious interior and a cruising range of up to 180 km (WLTC mode), which is sufficient for daily use and provides a high degree of reliability. The Nissan Sakura also won the 20222023 lJapan Car of the Year,z the 2023 lRJC Car of the Year,z and the 2022 2023 lJapan Automotive Hall of Fame Car of the Year.z
EV battery development initiatives
All-solid-state batteries are expected to be a game-changing technology for accelerating the popularity of EV. They have an energy density approximately twice that of conventional lithium-ion batteries, significantly shorter charging time due to superior charge/discharge performance, and the potential to reduce making up mostly battery costs by using less rare metals. With these benefits, Nissan expects to use all-solidstate batteries in a wide range of vehicle segments, including pickup trucks, making its EVs more competitive. Nissan has been developing this technology and aims to bring to market in 2028.
Nissan LEAF
Nissan ARIYA
Nissan Sakura
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Enhancing our 100% electric motorpowered e-POWER drivetrain
The e-POWER system combines an electric motor, which drives the wheels, with a gasoline engine that charges the vehicle`s battery. e-POWER is a technology that achieves both the smoothness and strength of 100% motor drive and top-level fuel efficiency. It also offers driving comfort similar to that of an EV, making e-POWER a new powertrain completely different from the hybrid systems commonly used in previous compact cars.Also, because the engine and tires are not directly connected, power can be generated at the most efficient engine settings (RPM, load), resulting in high fuel economy. The driver can accelerate or decelerate simply by using the accelerator pedal, and the regenerative brake system also helps improve fuel economy by charging the battery.
In order to expand the adoption of e-POWER in the global market, Nissan has added e-POWER-equipped models to the Sylphy in China and the Qashqai in Europe. The Qashqai e-POWER became Nissan`s first best-selling vehicle produced in the U.K. and won the Best Innovation award at the Auto Moto Grand-Prix ceremony. In Mexico, the Kicks e-POWER was classified by the Mexican government in the EV category, making it eligible for various preferential treatment as an EV. Going forward, e-POWER will continue to evolve as a technology that can be installed in a wide range of vehicle models while balancing environmental performance and driving performance at a high level. We are developing technologies that achieve the world`s highest level of 50% thermal efficiency with a next-generation engine dedicated
to power generation for e-POWER and we promote technological developments enabling further reductions in CO emissions (fuel efficiency improvement).
2016:Launched Note e-POWER (compact car equipped with the e-POWER electric powertrain) in Japan
2018:Serena e-POWER 2020:e-POWER expanded to Nissan Kicks
Launch of New Note Equipped with Second Generation e-POWER 2021:Note Aura was launched , won 20212022 lJapan Car of the Year,z l31st Annual (2022) RJC Car of the Year,z and l2021-2022 Japan Automotive Hall of Fame Car of the Yearz, while the second-generation e-POWER installed on both models won the lRJC Technology of the Year 6 Bestz, among many other automotive-related awards. 2022:X-Trail was launched, combining a power generating engine and VC-Turbo with a variable compression ratio to realize a more powerful and quiet e-POWER system. The 4WD models feature its new twin-motor allwheel control technology called e-4ORCE.
Next-generation powertrain X-in-1
In March 2023 Nissan unveiled its new approach to electrified powertrain development, which it calls lX-in-1z. Under the approach, core EV and e-POWER powertrain components will be shared and modularized, resulting in a 30% reduction, compared to 2019, in development and manufacturing costs by 2026. At present, Nissan is developing a 3-in-1 powertrain prototype, which modularizes the motor, inverter, and reducer, which is planned for use in EVs. Also 5-in-1 prototype, which additionally modularizes the generator and increaser, is being developed for use in e-POWER vehicles.
New HEV system equipped with a smart multimodal gearbox
The new JUKE HEV*1 unveiled in Europe operates up to 80% as an electric vehicle in urban areas, thus reducing fuel consumption by up to 40%. The gearbox is controlled by an advanced algorithm, which controls shift points and battery regeneration. Thus, driver can enjoy responsible acceleration as well as efficient low emissions.
*1Click here for more information about JUKE HEV.https://europe.nissannews.com/en-GB/releases/nissan-juke-new-hybrid-powertrain-combines-innovation-driving-fun-and-efficiency?selectedTabId=releases
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
The growing importance of commercial vehicle electrification
It is estimated that commercial vehicle sales, which account for 25% of automobile sales, will increase to 50% in 2030, thus commercial vehicle electrification is important for carbon neutrality*1.
History of commercial electric vehicles at Nissan In June 2014, Nissan sold the EV multipurpose commercial van e-NV200 in European countries and Japan. The e-NV200 has power outlets in two locations drawing up to a total of 1,500 W of electricity from the onboard engine for electrical generation, which can be used to secure power on the road during normal operation, on the go in business, for leisure activities, as well as a power source in the event of a disaster. On construction sites, noise problems can be alleviated as there is no need to use an engine-powered generator. In Europe, Nissan is proposing a concept combining comfort and practicality to enhance outdoor activities in winter with the e-NV200 Winter Camper concept making it possible to charge the 220-volt battery using solar panels mounted on the roof. In 2020, the Tokyo Fire Department began using a zeroemission EV ambulance based on the NV400. Nissan thinks quiet EVs with low vibration ambulances have strong merits. As this vehicle is also equipped with two lithiumion batteries providing 33 kWh and 8 kWh, it is possible to operate electrical equipment and air conditioners for longer periods of time. It also enables these ambulances to be used as a mobile power source in the event of a power outage or disaster.
*1Based on PwC Consulting LLC research
In 2022, Nissan pursued equality and functionality with the launch of the Townstar, based on the Renault-NissanMitsubishi Alliance CMF-C platform. With commercial EV van and wagon configurations, Townstar can flexibly handle delivery operations in urban areas.
Going forward, Nissan will continue to expand its lineup of electric commercial vehicles and promote the manufacture of commercial vehicles with zero emissions.
Progress in plug-in hybrid vehicles
Plug-in hybrid electric vehicles (PHEVs) are hybrid cars that can run on electricity charged from an external source as well as fuel. With this combination of engines and electric motors, they provide motor operation equivalent to EVs. We are actively developing PHEVs, leveraging Alliance technologies with a view to launching them in the future.
As a mobile power source, the e-NV200 has a range of business applications. Zero-emission EV ambulance based on the NV400
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Fuel-cell electric vehicles
Powered by electricity generated from hydrogen and oxygen, fuel-cell electric vehicles (FCEVs) are another type of zeroemission vehicle that does not produce CO or other harmful emissions. We believe that, as part of building a sustainable mobility society, both FCEVs and EVs are viable options from an energy diversity perspective. In alignment with Japanese government policies, we joined forces with Toyota Motor Corporation, Honda Motor Co., Ltd., and other companies to establish Japan H2 Mobility, LLC (JHyM), targeting the full-fledged development of hydrogen stations for FCEVs in Japan. Addressing the key issues raised during the initial stage of FCEV promotion, JHyM will ensure that infrastructure developers, automakers, and investors all do their part to support the successful strategic deployment of hydrogen stations and effective operation of the hydrogen station business in Japan. In June 2016, Nissan unveiled an e-Bio Fuel-Cell system that runs on bioethanol electric power. The new system features a solid oxide fuel-cell (SOFC) power generator. SOFC technology can produce electricity with high efficiency using the reaction of oxygen with multiple fuels, including ethanol and natural gas. SOFCs can use a variety of fuels, enabling the use of existing fuel infrastructure, and have the advantage of presenting relatively low hurdles in terms of infrastructure adoption. Because our technology combines the efficient electricity generation of SOFC with the high energy density of liquid fuels, it can enable driving ranges on par with gasolinepowered vehicles. Commercial users that require higher uptime for their
vehicles should increasingly be able to take advantage of this solution thanks to the short refueling times it offers.
Weight-reduction technologies supporting carbon neutrality
Along with improving the efficiency of batteries, engines, and electric powertrains, reducing the weight of vehicles is important for reducing CO emissions. Nissan is working on weight reduction in three points of view: Materials, Structural optimizations, and Processes.
Materials Nissan is rapidly expanding the use of Ultra-High-Tensile Steel realizing high strength and formability, which is used for the body frame components on a wide range of vehicle models, from lkeiz minicars to the INFINITI. In 2018, we adopted 980 megapascal (MPa) Ultra-High-Tensile Strength Steel with High Formability, which features further improvements in collision energy absorption performance, for the INFINITI QX50, and in 2019, SAE International presented Nissan with the lSAE/AISI Sydney H. Melbourne Award for Excellence in the Advancement of Automotive Steel Sheet,z among other accolades. In 2020, we expanded this material to the Rogue, Qashqai, and Note, then to the Nissan ARYIA in 2022.
Structural optimizations The e-POWER system, which integrates motors and inverters, was adopted in the 2020 Note, achieving a 6% increase in output while reducing the weight of the motor by 15% and the inverter by 30%. The same technology is used in the 2022 Nissan Sakura.
Processes Nissan is engaged in the practical application of a new casting method called vacuum low-pressure die casting (V-LPDC). This method was applied to the 1.5-liter 3-cylinder turbo engine cylinder head of the Rogue and Qashqai, contributing to a 4% weight reduction. Nissan will continue proactively developing lightweight technologies to reduce CO emissions and dependence on newly mined resources in order to achieve carbon neutrality.
Efforts to reduce CO emissions during parts manufacturing through the use of green steel and green aluminum
Since approximately 60% of a vehicle`s weight is made up of steel parts and around 10% of its weight is made up of aluminum parts, the use of green steel and green aluminum is a very effective way to reduce CO emissions during parts manufacturing, which is part of the vehicle`s life cycle. In collaboration with Kobe Steel, Ltd., Nissan has decided from January 2023 to use green steel *1 and green aluminum*2 for Nissan vehicles is due not only to the significant CO emission reductions during manufacturing, but also because they offer same level of high quality as conventional products. In addition, we will further reduce CO emissions during manufacturing by promoting closed-loop recycling*3, which also utilizes recycled materials generated at Nissan production sites.
*1Green steel: Low-CO2 blast furnace steel with significantly reduced CO2 emissions in the blast furnace process *2Green aluminum: Aluminum that is electrolytically smelted using only electricity generated by solar power, thereby reducing CO2 emissions during aluminum ingot production by approximately 50%. *3Closed-loop recycling process: The reuse of waste and scrap generated during manufacturing and used products collected in-house as materials for parts of the same quality or reuse in similar products. Click here for more information on aluminum recycling.>>> P049
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Initiatives for partnerships with society
Nissan energy: Solutions that enrich life and society with EVs
Furthermore, our history with EVs goes deeper than simply manufacturing and selling the vehicles themselves. We helped to establish an environment allowing EVs to become part of our customers` lifestyles and developed the Nissan Energy solution for enjoying life with an EV to the fullest. Together, these initiatives are creating what we call the Nissan EV ecosystem.
Nissan EV ecosystem
Nissan Energy Supply
Nissan Energy Supply includes various electric charging solutions that bring ease and convenience to the lifestyles of our EV customers. The majority of our EV customers find it convenient to charge their EVs at home. To help ensure that our vehicles can be safely charged, we guide customers to use suitable charging equipment and engage qualified installers to install electrical outlets dedicated to EVs. The Nissan LEAF, which offers an ample driving range for daily use, utilizes a fast-growing charging network, providing drivers with confidence during longer distance drives and short outings.
Nissan EV Ecosystem
Nissan EVs
Nissan Energy
Nissan Energy Supply
Provides a range of charging solutions to promote convenience and peace of mind for EV owners.
Nissan Energy Share
Enables customers to use the electricity stored in the high-capacity batteries of Nissan EVs for various purposes. Electricity can be "shared" with homes, workplaces and local communities to provide new value to everyday life.
Nissan Energy Storage
The lithium-ion batteries used in Nissan EVs are highly functional even after the end of their first life powering an EV. With an eye to further adoption of EVs in the future, we are working on initiatives for secondary use.
Our dedicated EV app lets customers find and check the real-time status of charging stations. This not only makes charging easier and more convenient but also provides a seamless charging experience. As of the end of May 2022, approximately 56,000 quick chargers conforming to the CHAdeMO protocol*1 have been installed worldwide.
Nissan Energy Share
The electricity stored in the Nissan EV`s battery can do more than just power a vehicle; it can be shared with homes, buildings, and local communities through bi-directional chargers. Using inexpensive electricity in the evening during off-peak periods and excess electricity generated by solar panels during daytime reduces electricity costs and helps promote a model of local generation of electricity for local-consumption. Furthermore, Nissan Energy Share makes it possible for EVs to provide backup power during blackouts or emergencies. Local communities can connect multiple EVs to regional power grids to charge or discharge electricity in accordance with power supply and demand balance, which contributes to the stability of a community`s power supply and promotes renewable energy use. EV`s high-capacity batteries have high potential for usage as social infrastructure, by storing renewable energy like solar power for which generation is difficult to control.
*1Click here for more information about CHAdeMO protocol.https://www.chademo.com/
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Global spread of Nissan Energy Share
Nissan participates in collaboration with electric power companies and others in demonstration projects around the world to verify how Nissan EV charge and discharge control (V2G or Vehicle to Grid), which is connected to power systems, help stabilize the supply and demand of electricity in society and the extent of economic and environmental benefits.
Based on results obtained from projects in each region, Nissan wants to maximize the efficacy and economic benefits of EV charging and discharging operations and make Nissan Energy Share into a business as soon as possible.
e4Future Project Onsite installation of bi-directional chargers at Nissan Technical Center Europe in conjunction with E.ON, an electric power company, to verify the compatibility of V2G and operational efficiency of company-owned vehicles.
Sciurus Project Verifies economics of optimal control of household electricity consumption by installing bi-directional chargers at the homes Nissan EV owners in conjunction with OVOEnergy, an electric power company.
Vehicle to Building (V2B) Verifies EV added value through building energy management service demonstrations in conjunction with charging service provider Fermata Energy.
REVS Project Verifies frequency stabilization effect in the Australian Capital Territory in conjunction with ActewAGL, a power company, and local government.
Nissan Energy Storage
Nissan EV batteries offer high performance even after being used in cars. As more and more customers switch to EVs, the supply of batteries capable of secondary use is expected to increase significantly. In 2010, Nissan, as an EV pioneer, joined forces with Sumitomo Corporation to establish 4R Energy Corporation, which specializes in repurposing lithium-ion batteries. The intention is to fully utilize resources by promoting the four Rs of lithium-ion batteries reuse, resell, refabricate, and recycle with the aim of building an efficient cycle of battery use.
Reuse system realized using EV batteries
The market for used batteries will expand with the spread of EVs and that their utilization will become an issue in the future. Based on this recognition, 4R Energy Corporation, established together with Sumitomo Corporation in 2010, has promoted the development of technologies for the reuse of used batteries at its plant in the town of Namie, Fukushima Prefecture. 4R Energy is building a business model in which used batteries collected from the market are sorted according to their condition and performance and supplied to various secondary users, passing on the value of reused batteries to customers. Expanding this model into a business and further reducing the hurdles to EV ownership for customers will lead to the further spread of electric vehicles.
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Nissan to start verification tests of energy management system in Namie, Fukushima
EV charging and discharging to aid achievement of carbon neutrality In February 2022 Nissan announced, Nissan began verification tests of the energy management system it has established in Namie. The energy management system utilizes an autonomous control system that generates 100% renewable energy for charging electric vehicles by sending electricity to and from them. *1 This verification will be conducted based on initiatives targeting the utilization of renewable energy and a lowcarbon society in the lAgreement on Collaboration for Community Development Using New Mobility in the Hamadori Region of Fukushima Prefecture.z Specifically, the project will utilize RE power generation equipment and power control system (PCS) owned by Roadside Station Namie, a commercial facility located in the
town of Namie, as well as the Nissan LEAF EV, the official vehicle of Namie Town, to verify efficient energy operations and establish an energy management system to promote the local production for local consumption of clean energy by installing Nissan`s charge and discharge control system in the PCS. Renewable energy generates varying amounts of electricity depending on weather conditions, creating an imbalance between the supply and demand of electricity. Using EVs as storage batteries and combining them with a system that independently charges and discharges EVs is expected to facilitate the effective use of renewable energy and stabilize power grids. Nissan will contribute to Namie Town`s aim of realizing llocal production for local consumption of energyz and the lZerocarbon City Declarationz as well as the achievement of a carbon-neutral society through the practical application and verification of an energy management system in Namie Town.
Demonstration test launched in U.S. and Japan aimed at expanding EV range
California, USA: Aiming for 5 million zeroemission vehicles by 2030
Objective: Expanding from short-distance EV travel such as commuting and shopping, to inter-city travel. Initiative: Nissan and Kanematsu Corporation in partnership with U.S. charging infrastructure service provider EV go are installing 57 fast chargers in 26 new locations along one of California`s most important travel arteries.
Japan: NEDO commissioned business
Objective: To expand the range of EV usage to inter-city travel. Initiatives: Establish information services and other systems to guide EV users to the most appropriate quick chargers, and verify their effectiveness in expanding the range of EV usage (launched in November 2016). By September 2020, survey, analyze, and study various EV usage patterns to establish a model for the spread and expanded use of EVs.
*1Click here for more information about verification tests of energy management system in Namie.https://global.nissannews.com/en/releases/release-b55e8bf1f8f64c95b00977f836063f8e-220112-01-e
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Corporate activity initiatives
Policies and philosophy for corporate activity initiatives
Reducing CO emissions from corporate activities
NGP2022 long-term vision
As announced in January 2021, to realize carbon neutrality in the vehicle life cycle, we are also promoting efforts aimed at achieving carbon neutrality by 2050 through our corporate activities.
NGP2022 long-term vision
100% 100%
20% 30%
Nissan is taking steps to reduce its greenhouse gas emissions from corporate activities by promoting energy efficiency measures and also the use of renewable energy. Based on calculations incorporating the findings of the Fourth Assessment Report from the Intergovernmental Panel on Climate Change (IPCC), Nissan established the goal of reducing its overall corporate CO emissions by 2050. Also, as part of the Nissan Green Program 2022 (NGP2022), we set the midterm goal of a 30% reduction in overall corporate CO emissions by 2022. Manufacturing is our largest emissions source, but we are also aiming to reduce greenhouse gas emissions from logistics, offices and dealerships, by setting targets and taking action in each area.
CO2 per vehicle
2005 base
2016 2022
2050
Management of corporate activity initiatives
NGP2022 objectives
Targets for each link in the value chain under the Nissan Green Program 2022 (NGP2022) aimed at achieving our long-term goal of carbon neutrality in the vehicle life cycle by 2050 are as follows:
Overall (Manufacturing, logistics, offices, dealerships): 30% reduction in CO2 emissions from global corporate activities by 2022 (vs. 2005/per vehicle sold)
Manufacturing
36% reduction in CO2 emissions from global manufacturing sites by 2022 (vs. 2005/per vehicle manufactured)
Logistics
12% reduction in CO2 emissions from logistics in Japan, North America, Europe, and China by 2022 (vs. 2005/per vehicle manufactured)
Offices
12% reduction in CO2 emissions from global offices by 2022 (vs. 2010/per floor area)
Dealerships
12% reduction in CO2 emissions from dealerships in Japan by 2022 (vs. 2010/per floor area)
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Corporate activity initiatives: Achievements
27.7% reduction in CO emissions from corporate activities
The scope of management regarding climate change through corporate activities includes all vehicle and parts production sites, logistics activities, office locations, and sales companies within the consolidation scope, including subsidiaries and affiliates. This represents that Nissan has significantly expanded the scope of its CO emission reduction activities, which previously covered only production sites, and has broadened the scope of initiatives that have been conducted individually, such as the introduction of highly efficient equipment, energy conservation activities, and renewable energy from fiscal 2011. The objective is to strengthen the management level of the entire company`s activities. In addition to overall corporate activities, we have set KPIs and targets for each domain that enable us to identify the progress of each. For overall corporate activities, we have established a target of reducing CO emissions from corporate activities by 30% per unit of global sales compared to fiscal 2005 by fiscal 2022*. In fiscal 2022, we reduced CO emissions (t-CO/unit) by 27.7% compared to fiscal 2005. *1
Trend in energy consumption
The total energy consumption of our global corporate activities during fiscal 2022 was 7,195 thousand MWh, a 4% decrease from 7,495 thousand MWh in fiscal 2021.*2 The total energy consumption from manufacturing processes during fiscal 2022 was 6,462 thousand MWh , a decrease from 6,875 thousand MWh in fiscal 2021.
MWh
10,000,000 9,252,737
8,000,000 3,700,532
6,000,000 2,570,438
4,000,000 1,048,201
2,000,000 1,933,566
0 2018
8,313,893 3,438,939
2,180,450 913,521 1,780,983
2019
7,655,514 3,015,419
1,909,902 888,089 1,842,105
2020
7,495,492 3,149,380
1,982,066 650,003 1,714,043
2021
7,195,408 3,166,269 Japan
2,016,313
North America
676,897 1,335,929
Europe Other
2022 FY
Energy consumption
Total By region Japan North America Europe Other By energy source Primary Natural gas LPG Coke Heating oil Gasoline Diesel
Heavy oil
Unit MWh
MWh MWh MWh MWh
MWh MWh MWh MWh MWh MWh MWh
External Electricity(purchased) Renewable energy*3 Chilled water Steam Internal Electricity(in-house generation) Renewable energy*4 Total renewable energy
Unit
MWh MWh MWh MWh
MWh MWh MWh
2021 7,495,492
3,149,380 1,982,066
650,003 1,714,043
2,907,420 145,717 112,154 69,868 177,147 23,800 22,383
2021
3,859,586*5 229,754 3,598 114,506
59,313 59,313 289,067
(FY) 2022 7,195,408
3,166,269 2,016,313
676,897 1,335,929
2,828,289 130,508 119,767 58,579 120,565 26,016 9,767
(FY) 2022
3,737,002 275,807 3,929 125,761
35,226 35,226 311,033
*1Global CO emissions per vehicle sold by dividing the total volume of CO emissions produced through Nissan`s corporate activities globally by the number of Nissan vehicles sold globally. *2Please refer to the data book for the past 5-year historical trends.>>> P147 *3Volume of renewable energy in electricity purchased by Nissan. *4Volume of renewable energy generated by Nissan at its facilities and consumed for its own purposes.*Please refer to the data book for the past 5-year historical trends. *5Due to an error in the disclosure of last fiscal year`s figures, the figures for fiscal 2021 were revised.
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.>>> P058
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Carbon footprint of corporate activities
In fiscal 2022, the total of Scope 1 and 2 emissions of our global corporate activities was 2,096 thousand tons, a 6% decrease from 2,231 thousand tons in fiscal 2021.*1 Total CO emissions from manufacturing processes were 1,798 thousand tons (Scope 1 emissions: 579 thousand tons ; Scope 2 emissions: 1,219 thousand tons ), a decrease from 1,944 thousand tons in fiscal 2021.
Scope 1 Scope 2 Scope 1 + 2 Japan North America Europe Other Scope 3
Unit t-CO t-CO t-CO t-CO t-CO t-CO t-CO t-CO
2021 690,155*2 1,541,276 2,231,430*2 982,671*2 507,584 112,157 629,019 127,546,646*3
(FY) 2022 661,241 1,435,081 2,096,322 978,051 526,414 105,974 485,882 118,828,370
Manufacturing activities
Manufacturing CO per vehicle produced
In fiscal 2022, our manufacturing CO emissions per vehicle produced were 0.52 tons, 28.8% less than fiscal 2005.
t-CO2/vehicle 0.8 0.73
0.6
0.51 0.52 0.56 0.52
0.4
0.2
Greenhouse gas (GHG) emissions other than energy-derived CO2*4
By type CH4 (methane) N2O (nitrous oxide) HFCs (hydrofluorocarbons) PFCs (perfluorocarbons) SF6 (sulfur hexafluoride) NF3 (nitrogen trifluoride)
Unit
t-COe t-COe t-COe t-COe t-COe t-COe
2021 5,088 1,244 1,320
0 43
1
(FY) 2022 5,054 1,071 1,878
0 43
0
0.0 2005 2019 2020 2021 2022 (FY)
Carbon footprint of manufacturing activities
1,000t-CO2
3,000 2,610 2,408
2,000
1,951 1,944 1,798
1,000
0 2018 2019 2020 2021 2022 (FY)
*1Please check the data book for the past 5-year historical trends.>>> P148
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please
*2The values for fiscal 2021 have changed due to the disclosure of greenhouse gases other than CO2 emissions from energy use as a separate item.
see here.>>> P058
*3Among Scope 3 emissions, the values for fiscal 2021 have changed due to a modification in the calculation method for Category 1 and the determination of fuel efficiency values published by the government for Category 11.
*4GHG emissions from Nissan Motor Co., Ltd. domestic sites calculated based on the Act on Promotion of Global Warming Countermeasures.
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Carbon neutrality roadmap at production plants
Nissan is promoting activities aimed at achieving carbon neutrality at its plants, with the goal of achieving this by the 2050 life cycle. In October 2021, we announced a roadmap to achieve carbon neutrality in 2050 at our plants to steadily promote initiatives to achieve this goal.*1
By 2030: We will first promote the introduction of innovative production technologies and electrification while reducing energy consumption in plants. We will then introduce renewable energy and expand the application of alternative energy sources. 2030-2050: Toward 2050, we will fully electrify plant equipment that operate under various forms of power, including gas and steam. At the same time, we will achieve carbon neutrality at our plants by fully applying electricity generated in-house by fuel cells that use renewable energy and alternative fuels.
2019-2030
Energy reduction, electrification of some equipment and tools Introduction of renewable energy, partial application of alternative energy power generation
2019
2030
2030-2050
Full electrification of plant equipment Full application of renewable / alternative energy power generation
2050
Aiming to achieve carbon neutrality by 2050 through innovation in production technology
Nissan Intelligent Factory, a next-generation vehicle manufacturing concept*2 In line with the acceleration of vehicle electrification, intelligence, and the Nissan Intelligent Mobility concept promoted by Nissan, vehicle functions and construction are becoming increasingly complex. As further technological innovations will be essential in the production process, we announced the Nissan Intelligent Factory vehicle manufacturing concept. Zero-emission production system, a pillar of the Nissan Intelligent Factory: We will promote activities based on the carbon neutrality roadmap at our production plants as we work to achieve carbon neutrality.
Electricity Compressor Air
Cogeneration
Gas/fuel Boiler
Steam
Electricity Compressor
Alternative energy
Air LB
Generator SOFC
Gas/fuel company
Gas/fuel Boiler
Steam
Zero CO2
Alternative energy
LB
Generator SOFC
Zero CO2
*1Click here for more information on our roadmap for carbon neutrality at production plants.https://global.nissannews.com/en/releases/release-c252360e116720126985295f9d7480af-new-nissan-intelligent-factory-opens-in-tochigi *2Click here for more information on the Nissan Intelligent Factory.https://www.nissan-global.com/EN/INNOVATION/TECHNOLOGY/ARCHIVE/NIF/ Click here for more information on a next-generation vehicle manufacturing concept. (Japanese only)https://global.nissannews.com/ja-JP/releases/191128-02-j
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Key initiatives toward carbon neutrality by 2050 at production plants
1Global energy-saving activities (adoption of new technologies, improved processes)
Most CO emissions in the manufacturing process come from the consumption of energy generated by fossil fuels. We engage in a variety of energy-saving activities in the manufacturing process in pursuit of the lowest energy consumption and CO emissions of any automaker.
Initiatives in automotive production technology In the realm of automotive production technology, we are introducing highly efficient equipment and improving manufacturing techniques. Other key approaches are the three-wet paint process and low-temperature baking technology used for vehicle painting, which enables the body and bumpers to be painted at the same time. Approximately 30% of CO emitted from manufacturing plants comes from the painting process, thus shortening or eliminating processes and lowering temperatures during the process will lead to a reduction in CO emissions. The low-temperature three-wet painting technology introduced by Nissan enables the body and bumpers, which were previously painted separately, to be painted at the same time, reducing CO emissions from the painting process by 25% or more.*1 Nissan has implemented this technology in the new production line at the Tochigi Plant in the Nissan Intelligent Factory (launched in 2021) and will gradually expand its
*1Source: Nissan
roll out as painting facilities become more sophisticated in the future. Also, systems for recycling air expelled from booths for reuse needed dehumidifying processing to ensure that the air was at the humidity required. Dry paint booths can reuse air without dehumidifying it, reducing energy consumption to less than half its previous levels. This technology was adopted for the dry paint booths at our Sunderland Plant in the U.K. (operating since September 2018).
Three-wet paint process (Combined primer and topcoat application)
Baking process
Painting process
Body paint baked at 140°C
Baking process
Baked at 85°C
Painting process
Bumper paint baked at 85°C
Body + bumper painted simultaneously
Simultaneous Painting of Body and Bumpers CO emissions have been reduced by simultaneously painting the body and bumpers using a new technology and consolidating them into one process (right) and drying at a low temperature (85^) instead of the conventional two-step process (left).
Initiatives in the field of powertrain production technology In the powertrain production technology area, Nissan is working to reduce holding furnace energy usage in cast iron melting processes conducted by the Casting Division. Conventionally in the melting process, two holding furnaces were used to store two types of cast iron melts with adjusted carbon and sulfur component contents. Now, intermediate molten metal with a low carbon and sulfur content is stored in one holding furnace. When transporting from the holding furnace to another process, the ingredients are adjusted by adding additive materials, creating two types of molten metal and making it possible to eliminate one holding furnace. As a result, power consumption was reduced by approximately 3,600 MWh per year (CO conversion: Approximately 1,700 tons per year; oil conversion amount: Approximately 900 kiloliters per year). This corresponds to about 11% of the power consumed in the melting processes conducted by the cast iron factory located on site at the Tochigi Plant. In light of this achievement, Nissan won the Agency for Natural Resources and Energy Award in the Small Group Activities category at the Energy Conservation Grand Prize Awards for fiscal 2019, sponsored by The Energy Conservation Center, Japan (ECCJ).
Cast Iron melting process
Before
Cupola
After
Cupola
Gray cast iron
Desulfurization / carburization
process
Desulfurization process
Two kinds of molten metal Gray cast iron
Improvement
Intermediate molten metal
Ductile cast iron
Ductile cast iron
Holding furnace
Holding furnace
Holding furnace
Adding additives
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Energy-saving activities at Nissan Energy Saving Collaboration (NESCO) To reach our defined objectives for CO emissions and energy use, we solicit facility proposals from each global site, preferentially allocating investment based on the potential CO emission reduction compared to project costs. In Japan, we converted outdated facilities into cutting-edge, high-efficiency facilities with investments to improve energy efficiency, including energy-saving roof insulation upgrades. Our plants use finely controlled lighting and air conditioning for low-energy consumption and low-energy-loss operations. We promote CO emission reduction activities and introduced cutting-edge, energy-conservation technology from Japan in our plants worldwide. Around the globe, our plants learn and share best practices with each other, while Nissan Energy Saving Collaboration (NESCO)*1 diagnoses energy loss at plants in regions where it is active and proposes new energy-saving countermeasures. These proposals amount to a potential reduction in CO emissions of some 40,115 ton*2 in fiscal 2022, according to our calculations. When sourcing energy, we consider the balance of CO emissions for the entire company alongside renewable energy usage rate and cost, choosing suppliers best suited for achieving each goal. As a result of these activities, CO emissions at production plants in fiscal 2022 amounted to 0.52 tons per vehicle, a reduction of 28.8% from the fiscal 2005 level.
2Expanded electrification of production facilities
Electrification of fossil fuel facilities is indispensable to achieving carbon neutrality. We have therefore begun electrifying aluminum melting furnaces and gas heating equipment used for casting, while are also planning to convert various heat treatment furnaces and cupolas that use coke as fuel into electric furnaces. Electrification of compressed air, which has low energy efficiency, is also effective in reducing CO2 emissions. For this reason, we are reducing our compressed air usage by converting air tools in the assembly process to electric tools and migrating from water removal by air blowing to vacuum drying in the machining process. We will continue to expand production facility electrification in these and other ways.
Electrification (Aluminum melting ladle heating)
Electrification (Iron casting)
Electrification (Tools)
Direct gas heating
Electrification (Far infrared heater)
Coke
Current (Cupola)
Furnace cover
Outlet
Coil Yoke Furnace wall electrode
Electrification (High frequency induction furnace)
Air tool Electric tool
3In-house power generation using alternative fuels
We are developing SOFC*1 fuel cell systems, which are being developed as vehicle fuel cell systems, for energy storage system applications while also developing applications for the generated electricity at factories. The use of carbon neutral alternative fuels such as bioethanol in SOFCs is expected to contribute significantly to the carbon neutrality of plants.
e-Bio Fuel-Cell
Existing
Regional
infrastructure energy
Carbon neutral cycle
Bioethanol
Alternative fuels that contribute to carbon neutrality Bioethanol, etc.
CO2
SOFC system
Stack
Fuel tank Air
SOFC system Fuel cell system
Sugarcane, etc
*1Established in Japan in 2003, then in Europe, Mexico, and China in 2013 *2Source: Nissan
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
4. Promoting renewable energy
Nissan takes three approaches toward promoting the adoption and integration of renewable energy in line with the characteristics of each region: (1) generating our own power in company facilities; (2) sourcing energy with a higher proportion of renewables; and (3) promote the introduction of renewable energy through contracts with PPA*1 providers. As an example of the first approach, our Sunderland Plant in the U.K. introduced 10 wind turbines supplying 6.6 MW of power. In fiscal 2022, an additional 20 MW of solar power generation capacity was installed, bringing the total amount of power generated by solar power generation to 25 MW. At our Iwaki Plant, the guest hall for plant visitors is powered by solar energy. By storing surplus electricity in secondhand Nissan LEAF batteries, the plant both stabilizes the energy supply and uses resources more effectively. At the Huadu Plant of Dongfeng Nissan Passenger Vehicle (DFL-PV) in China, solar panels with a total capacity of 30 MW have been in operation since 2017, providing roughly 8% of the electricity used at the plant. Additional solar power capacity of 18MW was introduced at the Huadu Plant and of 3MW at the Changzhou Plant in 2022.
Regarding the second approach, Renault Nissan Automotive India Private Limited in India actively uses energy generated from wind power and biomass, achieving a renewable energy usage rate of 72% in 2022. Under contract with a PPA operator, we installed and commenced operation of a solar power generation system on the roof of a parking lot at our India plant in October 2020, and 5.5 MW system at our Thailand plant in January 2022. Through these efforts, we are enhancing the renewable
*1Power Purchase Agreement
energy usage rate at our production plants, which reached 11.9% in fiscal 2022.
5.5 MW of solar power generation at the Thailand Plant
Data
Strengthening our business foundations
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
EV36Zero, an electric vehicle (EV) hub to achieve carbon neutrality
Nissan is a pioneer in not only the development and production of EVs, but also in comprehensive efforts to utilize the onboard battery as a storage battery and for secondary use, with the aim of achieving carbon neutrality throughout the entire life cycle of a vehicle. In July 2021, we unveiled EV36Zero as the world`s first hub to create an ecosystem for electric vehicle (EV) manufacturing in order to advance the next phase of the automotive industry together with our partners and achieve carbon neutrality in Europe. New-generation Nissan electric crossover to be
manufactured at the Nissan Sunderland, U.K. Plant Envision AESC will build a new giga-factory with an
annual production capacity of 9GWh adjacent to the Nissan Sunderland Plant Renewable energy bMicrogrid` to deliver 100% clean electricity for the Sunderland Plant 2nd life EV batteries used as energy storage for ultimate sustainability This comprehensive project represents 6,200 jobs at Nissan and at its U.K. suppliers Centered around the plant in Sunderland, U.K., Nissan EV36Zero will supercharge the company`s drive to carbon neutrality and establish a new 360-degree solution for zero-emission motoring. The transformational project has been launched with an initial g1 billion investment by Nissan and its partners Envision AESC and the Sunderland City Council. Comprised of three interconnected initiatives, Nissan EV36Zero brings together EVs, renewable energy and battery production, setting a blueprint for the future
of the automotive industry. The experience and knowhow gained through the project will be shared globally, enhancing Nissan`s global competitiveness. Nissan will continue to leverage its strengths in electrification to become a company that continues to provide value to its customers and society.
ESG data book 2023
043
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Initiatives in the logistics field
Nissan is optimizing the frequency of deliveries and transport routes, improving packaging specifications (load shapes), and engaging in cooperative transport with other companies to promote better loading ratios and realize efficient transportation requiring fewer trucks. From the new vehicle development stage, we make efforts to source components as close to our plants as possible to reduce transportation distances. In addition, we incorporate parts shapes that take transportation efficiency into consideration during parts design, thereby reducing the number of parts procured per vehicle, which in turn reduces transportation volume.
In response to social trends in workstyles, such as driver shortages and shorter working hours, we are constantly reviewing our logistics methods and proactively promoting a modal shift to rail and marine transport. In Japan, parts shipments between the Kanto and Kyushu areas are conducted by rail and ship to the maximum extent possible.
In the future, we will collaborate with carriers that are working on environmental measures and introduce ships powered by LNG to establish logistics with a lower environmental impact. We are targeting a 12% reduction in CO emissions by fiscal 2022 compared to fiscal 2005 levels, as measured by the index of CO emissions per vehicle.*1 In fiscal 2022, CO emissions per global vehicle were 0.25 tons, a reduction of 40.9%.
CO Emissions from Logistics
Total Inbound*2 Outbound*3
Sea Road Rail
Air
Unit t-CO t-CO t-CO
2021 874,936 366,190 508,746
20.8 65.6
7.1 6.5
FY 2022 771,102 316,541 454,561
27.7 57.8
7.1 7.1
In fiscal 2022, CO emissions from logistics were 771 k-tons, down approximately 12% from the previous fiscal year.
CO emissions per vehicle transported
In fiscal 2022, CO emissions per vehicle transported were 0.25 tons.
t-CO2/vehicle
0.5 0.43
0.38 0.4
0.31 0.29
0.3
0.25
0.2
0.1
0.0 2005 2019 2020 2021 2022FY
*1Total CO emissions from transportation of parts to our manufacturing bases in Japan, United States, Mexico, Europe, China, Thailand, and India, and transportation of vehicles from our manufacturing bases to dealerships, divided by the number of vehicles produced. *2lInboundz includes parts procurement from suppliers and transportation of knockdown parts. *3lOutboundz includes transportation of complete vehicles and service parts. * Please check the data book for the past 5-year historical trends.>>> P150
ESG data book 2023
044
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Office initiatives
Nissan promotes efforts to reduce CO emissions at Nissan offices in Japan, North America, Europe, and China. In Japan, through Nissan Trading, we operate the Nissan Power Producers and Suppliers (PPS) scheme, sourcing clean energy for which CO emissions and costs have been taken into account through Japan`s PPS system. Nissan Energy Saving Collaboration (NESCO) teams have also expanded the scope of their activities beyond production plants to contribute to reducing emissions in the Nissan Technical Center in Atsugi. Our efforts for environment go beyond just CO management. Employees are encouraged to use online meeting tools as much as possible to reduce the number of business trips required worldwide, which also improves workplace efficiency and reduces the costs.
Renewable energy introduction initiatives at Nissan global headquarters
At our Global Headquarters, we are promoting energy conservation activities through daily improvements that include turning off lights and installing LEDs, as well as reducing CO emissions through the introduction of renewable energy. In 2011, we installed a solar power generation system providing approximately 40kW and Nissan LEAF lithiumion batteries. The electricity generated is stored in batteries housed in the Global Headquarters building, then used for electric vehicle charging systems installed onsite. Surplus power generated is effectively used as electricity for the building.
Using a FIT Non-Fossil Certificate with Tracking, approximately 7,000 MWh of electricity used annually at the Global Headquarters will be converted to 100% renewable energy, which is expected to reduce annual CO emissions by approximately 40 tons.
Green building policy
Based on ISO 14001 management processes to evaluate environmental impact, we make it a key task to optimize our buildings during construction or refurbishing to make all our structures greener. Evaluation metrics in this area include environmental footprint, such as CO emissions; waste and emissions from construction methods; and use of hazardous materials and other quality control issues. Furthermore, one performance index for Nissan in Japan is MLIT`s Comprehensive Assessment System for Built Environment Efficiency (CASBEE). *1 Among our current business facilities, our Global Headquarters in the city of Yokohama, Kanagawa Prefecture, has earned CASBEE`s highest lSz ranking, making it the second Nissan structure to do so following the Nissan Advanced Technology Center (NATC) in Atsugi, which is located in the same prefecture. Our Global Headquarters gained a Built Environment Efficiency Rating of 5.6, the highest CASBEE rating for a new structure, making it one of Japan`s greenest office buildings. The building`s use of natural energy sources to reduce its energy usage and its CO emissions were evaluated highly, as were its methods of water recycling and its significant reduction in waste produced.
Dealership initiatives
Nissan promotes efforts to reduce CO emissions at dealerships. Our retail outlets also work continually to increase energy efficiency. Many have adopted highefficiency air conditioning, insulation films, ceiling, fans and LED lighting. During renovation work, some outlets have installed lighting systems that make use of natural daylight, as well as insulated roofs. In April 2000, we introduced the lNissan Green Shopz certification system, a proprietary environmental management system based on ISO 14001 certification, to promote energy conservation and other CO reduction activities as one of our environmental initiatives. A set of standards has been established enabling CO reduction activities to be conducted in accordance with a unified concept based on the Nissan Green Program (NGP), and specific measures such as reducing electricity consumption and switching to LED lighting have been incorporated into the activity plans of each company.
*1Comprehensive Assessment System for Built Environment Efficiency.
ESG data book 2023
045
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Air quality
Air quality policies and philosophy
Nissan approaches air quality by focusing on two points: greener exhaust emissions and providing a pleasant in-cabin environment to customers. In this way, we will strive to consider ecosystems while pursuing mobility that provides more comfort and security to customers. According to the State of Global Air 2018 report issued by the U.S.-based Health Effects Institute (HEI), 95% of the world`s population currently live in regions where particulate matter smaller than 2.5 m (PM2.5) exceeds the 10 g/ m3 basic level specified by World Health Organization (WHO) Air Quality Guidelines. Furthermore, the Organisation for Economic Co-operation and Development (OECD) predicts that the global population will exceed nine billion by 2050, with around 70% of people concentrated in cities, making air pollution in urban areas an even more pressing issue. For an automaker, air pollution stands alongside climate change and congestion as an issue for cities in particular that must be remedied. Nissan is advancing its efforts to improve air quality with two approaches:
1. Promoting zero-emission vehicles EVs such as the Nissan LEAF, which has cumulative global sales of 640,000 units (as of the end of March 2023), are an effective tool for reducing air pollution in urban areas. As a leader in this field, we are promoting zero-emission mobility and infrastructure construction in partnership with national and local governments, electric power companies, and other industries.
2. Enhancing internal combustion engines We have proactively set voluntary standards and emissionreduction targets for internal combustion engines. With the ultimate goal of making automotive emissions as clean as the atmosphere itself, we have developed a wide range of technologies and achieved the results listed below through cleaner combustion technologies, catalysts for purifying emissions, and countermeasures against gas vapors from gasoline tanks.
Sentra CA (released in the U.S. in January 2000): The world`s first gasoline-powered vehicle that satisfied all the exhaust gas requirements set by the California Air Resources Board to receive Partial Zero Emissions Vehicle (PZEV)*1 certification.
Bluebird Sylphy (released in Japan in August 2000): The first passenger vehicle made in Japan to achieve UltraLow Emission Vehicle (U-LEV)*2 certification.
We will continue our efforts to ensure cleaner exhaust emissions from internal combustion engines, which remain the most commonly used in the automotive market.
*1PZEV: Certification set by the California Air Resources Board *2U-LEV: Vehicle that produces 75% less nitrogen oxide (NOx) and nonmethane hydrocarbon (NMHC) than the 2000 emission standards level in Japan. *3Results were verified using specific bacteria and usage environments, and are not guaranteed to be effective against all bacteria. *4VOCs: Organic chemicals that readily evaporate and become gaseous at normal temperature and pressure conditions.
Improving in-cabin air quality
With circumstance of spreading advanced driver assistance systems and developing fully autonomous driving technologies, drivers are expected to spend more time in their vehicles, making it even more important for that space to be pleasant and safe. Under NGP2022, we conducted research and development aimed at cleaner vehicle emissions, as well efforts to improve the cabin environment, including better air quality, to enhance comfort. As part of these efforts, starting with specification enhancements in April 2021 for the Nissan LEAF, several vehicle model interiors are equipped with materials providing verified*3 antibacterial properties.
As part of our continued efforts concerning volatile organic compounds (VOCs)*4 such as formaldehyde and toluene, Nissan is further reviewing and reducing materials for seats, door trim, floor carpet, and other parts as well as adhesives. We voluntarily set more stringent standards than those of the Japanese government and automotive industry body regulations, and have applied them to all new vehicles introduced to the market from July 2007 onward.
ESG data book 2023
046
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Reduced emissions from production activities
Nitrogen oxide (NOx), sulfur oxide (SOx), and VOCs are recognized as common forms of emissions created by vehicle manufacturing facilities. We are taking firm measures to ensure that management standards and systems for atmospheric emissions are thoroughly followed; and working to reduce both VOC exhaust volumes and the use of VOCemitting substances to levels lower than required by national regulations.
Air quality: Achievements
Compliance with Air quality emissions regulations (Passenger cars only)
Nissan not only works to develop and promote zero-emission EVs but continues to promote cleaner exhaust emissions from all of our engines. For example, the Qashqai released in Europe in October 2018 has a new fuel-efficient 1.3-liter turbo gasoline engine fitted with a particulate filter that meets the Euro 6d-Temp*1 emissions standard. In Japan, our product with electrification technology, e-POWER has achieved 75% reductions in exhaust emissions from 2018 standards and improved fuel economy at the same. As part of these efforts, our compliance with air quality emissions regulations goes far beyond current legal requirements to meet more stringent specifications. The following table shows the percentage of Nissan vehicles in each location produced to the strictest local standards.
Compliance with Exhaust emissions regulations (By region) *2
Country
Standard
unit
Japan
50% lower than 2018 standard
(FY) 2022
90.2
Europe Euro 6d
100
U.S. U-LEV / SULEV / ZEV
100
China National 6
100
Plant emission management
We thoroughly implement systems and control standards at our production plants to reduce the amount of air pollutants emitted during operation. Our air pollution control targets are more stringent than those mandated by the countries in which we operate. In Japan, we have promoted strict countermeasures for emissions of NOx and SOx as air pollutants. We have lowered NOx and SOx emissions by introducing low-NOx burners in the ovens and boilers that provide heat for painting lines, and by switching the fuel used by those burners from heavy oil and kerosene to alternatives with low SOx emissions. From a carbon-neutral perspective, facilities that use fuel will be increasingly electrified. As a result, emissions from production plants are expected to be further reduced. We will continue to implement appropriate management on an ongoing basis.
*1Euro 6d-Temp: All Euro 6 standards and the initial Real-Driving Emissions (RDE) limit for new car models. *2Passenger cars only. *3VOCs: Organic chemicals that readily evaporate and become gaseous at normal temperature and pressure conditions.
Click here for more information on air quality.>>> P152
Reduced VOC from production processes
Volatile organic compounds (VOCs)*3, which readily evaporate to become gaseous in the atmosphere, account for approximately 90% of the chemicals generated as the result of our vehicle production processes. Lowering VOC emissions is a challenge that we are working to address. We strive to increase our recovery of cleaning solvents and other chemicals in order to limit the amounts of these substances emitted from our plants ahead of implementation of new regulations in each country where we operate, while also advancing planned measures to increase the recycling rate for waste solvents. We are also introducing water-based paint lines that limit VOC emissions to less than 20 grams per square meter of painted surface. We have adopted these lines in the Nissan Motor Kyushu Plant as well as at two plants in Aguascalientes in Mexico, the Resende Plant in Brazil, the Smyrna Plant in the U.S., the Huadu Plant in China, and the Sunderland Plant in the U.K. We achieved a reduction of 35.8 in fiscal 2022 in VOC emissions per painted surface area compared with fiscal 2010 levels.
ESG data book 2023
047
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Resource dependency
Resource dependency policies and philosophy
With the aim of maximizing the value of resources, Nissan has been targeting green growth while raising the efficiency of resource use to the ultimate level and using more renewable resources and recycled materials. In working toward the long-term vision of using materials that do not rely on newly mined resources for 70% of the materials used in each vehicle in 2050, we will strive to minimize the use of natural resources and maintain new resource usage at 2010 levels.
Long-term vision for reducing resource dependency
Resource usage per vehicle
100%
20%
Non-new material resources, such as recycled materials and biomaterials
70%
80%
New material resources
2010
30% 2050
Resource dependency management
In order to use the earth`s precious and limited resources efficiently, we have focused our efforts on the closed-loop recycling of steel, aluminum, and plastic three kinds of material which account for a large proportion of vehicle content yet also have a major impact on the environment. As part of the Nissan Green Program 2022 (NGP2022), Nissan is developing systems for using resources efficiently and sustainably across their entire life cycle and has adopted the concept of the lCircular Economyz to maximize the value it provides to customers and society. In an attempt to use resources efficiently with less energy, we will promote the use of recycled materials and recycling end-of-life vehicles, while striving to incorporate reusable resources in our
Nissan`s circular economy concept
activities at the design, purchasing, and manufacturing stages. We are using fewer resources overall, both through appropriate use of chemical substances and by making vehicles lighter. We will continue to promote the efficient use of resources with further reduced energy requirements and the expanded use of repaired and rebuilt parts for customers` repairs as well as the secondary use of EV batteries in the vehicle use stage, and foster the development of biomaterials and dieless forming technology for practical use. Another focus is to increase the value cars manufactured in this way provide to society and ensure that cars can be put to best use by promoting electrification and autonomous drive in our products, pursuing connectivity and providing mobility services such as ride sharing.
Promote reuse and resource
efficiency
Design Purchase Manufacturing
Less energy, more efficient material usage Recycle Remanufacture Reuse Repair
Wider range of applications for cars Mobility services Connected
ESG data book 2023
048
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Resource dependency: Achievements
Reducing dependence on newly extracted resources to 70% by 2022
Nissan has implemented a policy of minimizing the use of newly extracted natural resources and maximizing the use of recyclable materials from the early development stage while also making structural improvements to facilitate recycling. We are also reducing the use of resources in the manufacturing process and making more efficient use of resources. In NGP2022, our goal was to cut the use of newly extracted resources to 70% per vehicle in fiscal 2022. We intended to increase the use of recycled materials in our vehicles on a global scale, including Japan, Europe, and North America, in cooperation with our suppliers.
Initiatives to expand use of recycled materials (Ferrous and nonferrous metals)
In fiscal 2022, ferrous metals accounted for 61% of the materials used in our automobiles by weight. Nonferrous metals made up another 15% and resins 13%, with miscellaneous materials making up the final 11%. To further reduce our use of natural resources, we are advancing initiatives to expand the use of recycled materials in each of these categories. We are taking steps to reduce the steel and aluminum scrap left over in the manufacturing process, and working globally with business partners to collect and reuse this scrap as material for new vehicles through closed-loop recycling initiatives.
Currently, at Nissan Motor Kyushu and plants in North America and Europe, where X-Trail, Rogue and Qashqai are manufactured, we are collaborating with aluminum manufacturers to adopt a closed-loop recycling process that recycles aluminum scraps generated during manufacturing into aluminum alloy sheets for automobiles. The sorting and collecting of scrap in this process control impurities, realizing horizontal recycling without quality deterioration, which contributes to reductions in the amount of newly mined resources (aluminum ingots) used.
Recycling scrap aluminum saves more than 90% of the energy that would be needed to produce metal with comparable quality from raw materials.
Press process
The hood and doors are stamped from aluminum alloy.
New Rogue
Aluminum sheets
The scrap is made into aluminum alloy sheets. It's then redelivered to Nissan for use in Rogue production.
Scrap material is shredded and collected through a pneumatic conveyance system.
The separated and reprocessed aluminum scrap is delivered to the aluminum supplier.
Aluminum grades separation process
Nissan separates the different grades of aluminum in order to ensure high-quality scrap is collected and returned to suppliers. Different grades of aluminum are used for different parts of the car.
ESG data book 2023
049
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Initiatives to expand use of recycled materials (Resins)
In addition to our initiatives to expand the use of recycled steel and aluminum, Nissan also strives to use more recycled resins. As a closed-loop recycling initiative, we are collecting finished bumper scrap generated at our plants and sending it to our Oppama Plant, where we process it by removing the paint film and recycling it. These recycled resins have been given new life as bumpers in the Nissan LEAF and many other new vehicles. This initiative was expanded to Dongfeng Motor Co. (DFL), our joint venture in China, where they have been used to produce replacement bumpers since 2014. Additionally, exchanged bumpers collected from dealerships are being recycled as materials used in under covers and for other components. We collected and recycled approximately 87,000 bumpers in fiscal 2022, representing 57% of bumpers removed at Japanese dealerships. Furthermore, 30% of the automotive shredder residue (ASR) processed at dedicated processing plants is made from resins. In order to use these resins in automobiles, we are running a number of R&D projects on topics such as optimizing the recycling process for resins recovered from ASR, and conversion of auto waste plastic into oil. *1
Research on optimization of ASR recovered resin recycling process. Left photo is ASR and right photo is resin recovered from ASR.
End-of-life vehicle recycling
Nissan considers the three Rs reduce, reuse, and recycle from the design stage for new vehicles. Since fiscal 2005, all new models launched in the Japanese and European markets have achieved a 95% or greater recyclability rate.*2 We have also joined forces with other automotive companies to promote the recycling of end-of-life vehicles (ELVs) through dismantling and shredding. Based on Japan`s End-of-Life Vehicle Recycling Law, Nissan has achieved at least 95% effective recycling rate of ELVs in Japan since fiscal 2005. In fiscal 2022, we achieved a final recovery ratio for ELVs of 99.5*3 in Japan, greatly exceeding the target effective recycling rate of 95% set by the Japanese government.
ELV processing flow
Dismantle
Collect flat steel, cast aluminum, bumpers, interior plastic parts, wire harnesses, and precious metals
Collect specific items
Collect specific items such as lithium-ion batteries individually
Shred
Crush residues from the dismantling process and recover metallic portions
Turn resulting ASR into recycled materials
Dedicated recycling process
Since 2004, Nissan and 12 other Japanese auto manufacturers have supported ASR recycling facilities, as called for in Japan`s End-of-Life Vehicle Recycling Law, as an integral part of a system to recycle ASR effectively, smoothly, and efficiently. Nissan is taking an important role in this joint undertaking. We have also established a take-back system for ELVs in Europe. This network of Authorized Treatment Facilities was developed for individual countries in collaboration with contracted dismantlers, contracted service providers, and governments in alignment with a European ELV directive. Additionally, Japan Automobile Manufacturers Association, Inc. (JAMA) established a common scheme for recovering used lithium-ion batteries along with a system for processing these batteries appropriately, and put both into operation in fiscal 2018.
*1These R&D projects are undertaken as part of our recycling optimization support business using surplus money from recycling fees deposited for three specified components (refrigerant, airbags, ASR) based on Japan`s End-of-Life Vehicle Recycling Law. Click here for more information on the implementation of Nissan`s project to advance recycling (Japanese only).https://www.nissan-global.com/JP/SUSTAINABILITY/ENVIRONMENT/A_RECYCLE/R_FEE/SAISHIGEN
*2Calculated based on 1998 JAMA definition and calculation guidelines (in Japan) and ISO 22628 (in Europe). *3Based on Nissan research
ESG data book 2023
050
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Developing biomaterials Nissan is promoting technical research to replace plastics and other resin materials used in automobiles with biomaterials derived from plants. NGP2022 contained concrete goals for biomaterials development, and these materials are already being used in cars. For example, the coverings on the seats in the Nissan LEAF are made using biomaterials.
Seat coverings made from biomaterials in Nissan LEAF
Proper use of regulated chemical substances
Nissan revised its standard for the assessment of hazards and risks in the Renault-Nissan Alliance, actively applying restrictions to substances not yet covered by regulations but increasingly subject to consideration around the world. As a result, the number of defined chemical substances covered in fiscal 2022 rose to 7,593. These steps are thought to be necessary for future efforts in the repair, reuse, remanufacture, and recycle loop for resources. *1
Defined Chemical Substances (Substances) 10,000
8,000
7,593
6,000 4,000
5,290
4,043
5,304
4,069
Expansion of remanufactured parts
Parts with the potential for recycling include those reclaimed from ELVs, as well as those replaced during repairs. In Japan, we collect and thoroughly check the quality of these secondhand parts. These parts are sold as Nissan Green Parts in two categories: remanufactured (recycled) parts, which are disassembled and have components replaced as needed, and reusable (used) parts *2, which are cleaned and tested for quality. In NGP2022, we enhanced the deployment of Nissan Green Parts in Japan, Europe and North America, aiming for twice the parts coverage in 2022 compared to 2016. This initiative provides customers who seek to use cars for a long period of time with the new option of using remanufactured parts.
Example of Nissan Green Parts in Japan
Alternator
Air conditioning compressor
Starter motor
2,000 0 2018 2019 2020 2021 2022FY
*1Click here for more information on chemical substances governance.>>> P060 *2Not available at some retail outlets.
ESG data book 2023
051
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Promotion of 4R for second-life use for
lithium batteries
Lithium-ion batteries used in Nissan`s EVs retain capacity well beyond the useful life of the vehicles themselves. The l4Rz business models which reuses, refabricates, resells, and recycles lithium-ion batteries allows for their effective use as energy storage solutions in a range of applications, thus creating a much more efficient energy cycle of battery use. 4R Energy*1 is actively engaged in the development and production of various battery storage systems built with used Nissan LEAF batteries at the Namie facility. One example of these efforts is the development of stationary power storage systems that reuse batteries used in the Nissan LEAF for the purpose of enhancing resiliency. Since September 2019, this reuse stationary power storage system (40 kWh) has been used in trials for procuring electricity using renewable energy at ten 7-Eleven convenience stores in Kanagawa Prefecture. Additionally, in conjunction with IKS Japan Co., Ltd., we are developing new models with Vehicle to Everything (V2X) functions that can also utilize electric power from EVs, sales of which launched in fiscal 2020 and are proceeding apace.
Overview of proof of concept for procuring electricity through renewable energy
Nissan LEAF Battery recovery
Daytime use
Solar panel
Building
Storing a portion of electricity
Transmission is possible even in the 45kWh event of a disaster
Original storage battery + V2X
Nissan LEAF 40kWh/62kWh
In addition, recycled lithium-ion storage batteries lEneHand Green (the trading name of 4R Energy)z were developed for East Japan Railway Company (JR East) as a power source for railroad crossing security equipment by reusing modules from the used 24kWh batteries recovered from the Nissan LEAF. The system features longer service life and lower operating costs compared to conventional lead-acid battery power supplies. Field trials began in January 2021 on the Joban Line, followed by trial installations (5 units) at train crossings on the Joban and Mito Lines, and advanced installations (10 units) of the production version. In fiscal 2022, the system was introduced at approximately 160 train crossings with high battery use and therefore high impact. The system will be used at more train crossings over time.
Reused Nissan LEAF batteries be utilized at JR East train crossings
Train crossing
Power supply cable
From power supply cable
Internal Utility box details
From power supply cable
Battery
To train crossing
At the same time, 4R Energy acquired the world`s first UL1974*2 certification in June 2019, which is an international evaluation standard for evaluating repurposing batteries and has been certified by a third-party organization for reusage and refabricating processes and product manufacturing with an emphasis on safety. Furthermore, in recognition of these activities, in October 2019 4R Energy was presented with the Frost & Sullivan*3 l2019 Strategy Innovation and Leadership Award,z and in March 2020, in conjunction with Nissan, 4R Energy and Nissan won the lSixth Annual Japan Resilience Award 2020,z sponsored by the Association for Resilience Japan.*4 Further, in recognition of efforts to reduce CO emissions, Nissan and 4R Energy received the lMinister
*14R Energy Corporation was launched in 2010 as a joint venture between Nissan and Sumitomo Corporation in anticipation of the increasing need to utilize reusable lithium-ion batteries more effectively as the EV market expands. Given Nissan`s engagement in establishing EV battery reuse and refabrication technologies and the increasing number of used batteries collected, in March 2018, operations commenced at Japan`s first base and plant for the reuse and refabrication of used lithium-ion batteries, located in the town of Namie, Fukushima Prefecture.
*2The UL1974 Standard for Evaluation for Repurposing Batteries defines the process for determining and classifying the suitability of usage when battery packs, modules, or cells used to drive EVs have finished their intended period of use. Evaluating reused batteries in accordance with this process enables the provision of reused batteries that are safe and give a clear understanding of remaining capacity to meet a variety of demands.
*3Frost & Sullivan provides research and consulting services in 80 countries and over 300 major markets through a global network of more than 40 locations. *4In light of the results of the National Resilience Minister`s Private Advisory Committee National Resilience Roundtable, to ensure the Fundamental Plan for National Resilience is executed smoothly, the council aims to build a resilient nation with cooperation among industry, academia, government, and the
private sector.
ESG data book 2023
052
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
of the Environment Award in the Development and Commercialization Category, Mitigation and Adaptation Divisionz for lCO reductions through the spread of electric vehicles and Japan electrification action bBlue Switch` activities.z We are extensively involved with 4R business model activities globally as well.
Recycled resource circulation facilitated by the Nissan LEAF
Battery module structure will be redesigned to create new packages that satisfy the varying voltage or capacity needs of customers.
After their primary automotive use is over, the lithium-ion batteries retain enough energy capacity for secondary use.
Refabricated batteries can be used for multiple purposes, such as clean energy storage or as backup batteries in case of emergency.
Used batteries can be recycled to recover useful resources.
Reducing use of scarce resources
Permanent magnet motors for EVs, HEVs, and e-POWER use scarce resources called rare earth elements. Reducing their usage is important because rare earth elements are unevenly distributed around the globe, and the shifting balance of supply and demand leads to price fluctuations. Nissan has continuously reduced the use of heavy rare earth elements, and in 2020, the Note e-POWER adopted magnets with 85% less heavy rare earth elements compared to 2010. Furthermore, the 2022 Nissan ARIYA uses an electrically excited synchronous motor without permanent magnets. As a new initiative, Nissan is also promoting the development of rare earth metal recovery technologies from drive motor magnets. Up to now, in order to recycle magnets used in
motors, multiple processes including manual disassembly and removal of the magnets have been required, making economic efficiency an issue. Nissan and Waseda University collaborated to establish technologies for recovering rare earth metals in highly pure states through direct dissolution using borate as a flux, eliminating the need to dismantle the motor rotors. Currently, we are conducting trial testing using motors that did not meet our shipping standards in order to put them to practical use. In these ways, with respect to motors, which are a key technology, Nissan is engaged in developments corresponding to the circular economy concept, from reducing the amount of rare earth metals used to reuse that utilizes resources efficiently and sustainably.
Recycling process for rare-earth elements (REEs) used in electrified vehicle motors
Motor is melted
Motor
Carburizing material
Pig Iron
REEs are oxidized
Iron oxide
Electrified vehicle motor
REEs
Fe O Re C
Flux Flux is added
Recover rare earth elements
Separated REEs float to the top and are recovered
ESG data book 2023
053
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Resource dependency: Achievements in waste reduction
Thorough measures for waste materials
Nissan actively promotes measures based on the 3R (Reduce, Reuse, Recycle) approach in its production processes whenever possible, striving to minimize the waste generated and maximize recycling efficiency by thorough waste sorting. At the end of fiscal 2010, we achieved a 100% Recycling rate at all of our production sites in Japan, including five manufacturing plants, two operation centers, and five affiliates. Overseas, we have reached 100% Recycling rates at plants in Mexico, Brazil, and elsewhere. Under NGP2022, we undertook initiatives to reduce waste from our production factories by 2% annually in Japan and 1% annually worldwide as compared to business as usual (BAU*1). As part of such efforts, we are reducing packaging materials used in import and export parts shipping, working with Renault to repeatedly use plastic and returnable containers*2 for the distribution of parts between overseas bases. Furthermore, we have optimized parts shape at parts design stage which is called logistics simultaneous activities to reduce the volume of packaging materials used. We also contribute to waste reduction by selecting recyclable materials at the packaging material selection stage and are actively engaged in the development of recycling technologies for carbon fiber reinforced plastics (CFRP).
Promoting recycling with dry paint booths
Recycling is also being promoted at the Nissan Intelligent Factory, which began operations in 2021. Conventionally, residual paint in the air during the painting process has been mixed with water and disposed of as waste. By employing dry booths that do not use any water, 100% of the paint mist is collected in the plant and recycled as a substitute for the auxiliary agent used to remove impurities in the iron casting process.
External air supply
Air circulation system Exhaust
Paint waste
B
E
F
O
Disposal
R
E
temp2426 Humidity6570%
water
Paint waste separation system
Water is used to collect paint mist.
Exhaust air is heated and therefore
can't be efficiently recirculated
Air circulation system
Runoff paint separation system
Reuse
A
Air recycling
Primary dust layer
Filter bag
F
system
(pre-coat)
(dust collector)
T E
2365%
High-efficiency air recycling process
Paint mist
Cleaned gas
Paint waste
is collected
R
Secondary dust layer
in blocks
(pre-coat)
Paint mist collected using dry powder Highly efficient air recycling process
100% reuse of paint waste through collecting paint mist with powder Recycling air in the paint booth reduces energy consumption by 25%
Waste
Waste generated globally in fiscal 2022 amounted to 157,982 tons, same level as 158,199 tons in fiscal 2021. Waste generated globally from production sites in fiscal 2022 was 149,999 tons , same level as 150,945 tons in fiscal 2021. *3
Unit
Total
ton
By region
Japan
ton
North America
ton
Europe
ton
Other
ton
By treatment method
Waste for disposal ton
Recycled
ton
2021 158,199
52,386 51,062 33,895 20,857
7,208 150,991
2022 157,982
51,069 52,007 36,577 18,329
8,688 149,293
*1Business As Usual *2Returnable containers: Containers for packing parts that can be returned to the sender after parts delivery and used repeatedly. Nissan has adopted a folding structure in consideration of transportation
efficiency at the time of return. *3Click here for more information on Resource dependency (Facility waste).>>> P154
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.>>> P058
ESG data book 2023
054
Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Water scarcity
Policies and philosophy for water resource management
Demand for water is expected to continue to increase globally, driven by rising populations and economic development. With rain patterns also changing due to extreme weather events, the stability of water supplies is likely to become a more pressing social concern with every passing year. lClean Water and Sanitationz is also one of the Sustainable Development Goals (SDGs) adopted by the United Nations in 2015. The 1.5^ Special Report*1 released by the Intergovernmental Panel on Climate Change (IPCC) in 2018 reported that risks and effects from extreme weather events, such as heavy rain and drought, would increase if temperatures rose by 1.5^, and that such risks and effects would be even more severe and become widespread if temperatures rose by 2^. Water resource management to mitigate water shortages, flooding, and many other challenges is a key factor in promoting sustainable development. We believe that reducing dependence on water resources is important to being a sustainable company and are taking steps to improve water quality management and reduce water usage across our production sites.
Water resource management
Nissan manages wastewater quality to even stricter standards than required by local regulations at its main production sites. At sites in Japan, we have further strengthened measures against water pollution by attaching water quality sensors to the discharge points of our wastewater treatment facilities to automatically suspend water discharge if water quality problems are detected. Processing recycled water using reverse osmosis (RO) membranes*2 has allowed some sites to achieve zero wastewater discharge. Under the Nissan Green Program 2022 (NGP2022), by 2022 we aimed to reduce water usage per vehicle produced at global production sites by 21% compared to 2010. In order to achieve this, we took steps to reduce water usage, such as sharing best practices among plants, investing in equipment, and expanding the Nissan Energy Saving Collaboration (NESCO) team into lr NESCOz (r[esource] NESCO). Additionally, since the water resource situation varies considerably from region to region, we assess water risk using our own methods for each of our production sites throughout the world. At sites where a high level of risk is found, we effectively use rainwater and improve wastewater recycling rates in addition to prioritizing initiatives to reduce external water intake.
Global water risks
Created based on the World Resources Institute`s Aqueduct Water Risk Atlas (aqueduct.wri.org).
*1Full title: An IPCC Special Report on the Impacts of Global Warming of 1.5^ Above Pre-Industrial Levels and Related Global Greenhouse Gas Emission Pathways, in the Context of Strengthening the Global Response to the Threat of Climate Change, Sustainable Development, and Efforts to Eradicate Poverty. *2Reverse osmosis (RO) membrane: A type of filtration membrane that filters impurities such as ions and salts from water.
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Water resource achievements
Reducing water used in corporate activities
Nissan strives to manage and reduce water usage at every plant. Water used per vehicle produced in fiscal 2022 was reduced by 8 from the 2010 level. We will continue our efforts to reduce water usage. To reduce water usage, we built reservoirs to collect rainwater at the Chennai Plant in India and the second Aguascalientes Plant in Mexico, and installed wastewater recycling equipment at the Chennai Plant, the Huadu Plant in China, and the Oppama Plant in Japan. Our efforts at the Chennai Plant, in particular, were recognized as an excellent example of water resource management by the Confederation of Indian Industry (CII). At Nissan North America (NNA), plants are competing among themselves to
find new ideas for reducing water usage, such as by filtering wastewater from pre-painting processes and thus improving water quality. We are also working to reduce water usage at Nissan`s Global Headquarters in Yokohama, Japan, by processing rainwater and wastewater from kitchens and other internal sources to be reused for flushing toilets and watering some plants.
Chennai plant, honored by the CII.
Examples of efforts to reduce water usage at manufacturing plants and offices in India
In India, where the handling of water resources has a significant impact on people`s lives, our manufacturing plant has installed water treatment facilities using an RO membrane to reduce water consumption. After treating domestic wastewater, it is reused as cooling for the manufacturing process and cooling towers. As a result, we are able to reduce approximately 78,000 kiloliters of water consumption per year, which is equivalent to the amount of water used by about 320,000 households a day. In addition, India is working to revitalize lakes and ponds around its plants with consideration of the use of water in the local community to be important. India completed revitalisation of Sitheri Lake in 2020 and commited to revitalise ten lakes and ponds, including Oragadam lake which is the primary source of water for six villages, in 2023. Dredging and increasing the capacity of lakes and ponds contributes to securing drinking water and sustains biodiversity. Moreover, Nissan Motor India`s service centers provide customers with car wash services using the latest foam car wash technology. This reduces the amount of water used by 45%, from approximately 160 liters to approximately 90 liters per car washed. As well as saving water, the foam car wash service reduces wash time as it does not use strong chemical detergents and improves a car`s gloss by approximately 40%.
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Water input for corporate activities
In fiscal 2022, water input for our global corporate activities was 20,208 thousand m³, same level as 20,090 thousand m³ in fiscal 2021. In fiscal 2022, water input from global production sites was 19,065 thousand m³ , the same level as 19,495 thousand m³ in fiscal 2021.
Total
Japan North America
Europe Other
Unit thousand m³
thousand m³ thousand m³ thousand m³ thousand m³
2021 20,090
10,317 4,047 1,404 4,322
FY 2022 20,208
10,472 4,235 1,270 4,231
Water discharge from corporate activities
Nissan thoroughly processes wastewater at its various plants. Wastewater from two Nissan plants in Aguascalientes, Mexico, is used to maintain landscaping on the sites, with no off-site discharge. We also are strengthening water pollution prevention measures in our Japanese plants. In preparation for unexpected occurrences, such as the discharge of oil, we have attached water quality sensors to the discharge points of wastewater treatment facilities. Discharge of water outside the sites is automatically suspended if water quality problems are detected. In addition, we installed water quality sensors on rainwater drainage outlets which automatically close floodgates even for heavy rains. *1
Total
Unit thousand m³
Japan North America
Europe Other
thousand m³ thousand m³ thousand m³ thousand m³
Quality
Chemical oxygen
demand (COD)
kg
Japan only
2021 13,620*1
8,771 2,565
707*1 1,577
19,941
FY 2022 13,219 8,902 2,610
596 1,110
24,884
Water consumption in corporate activities
The total amount of water consumed in global corporate activities in fiscal 2022 was 6,989 thousand m³ *2, an increase from 6,470 thousand m³ *1 in fiscal 2021.
Total
Japan North America
Europe Other
Unit thousand m³
thousand m³ thousand m³ thousand m³ thousand m³
2021 6,470*1
1,546 1,481
697*1 2,745
FY 2022 6,989
1,570 1,625
674 3,121
*1Due to an error in the calculation of last fiscal year`s figures, the figures for fiscal 2021 were revised. This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.>>> P058 *2Based on GRI 303, total water consumption is total water withdrawn minus total water discharged as calculated by Nissan.
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Third-party assurance
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Independent Assurance Report
To the Representative Executive Officer, President and CEO of Nissan Motor Co., Ltd.
We were engaged by Nissan Motor Co., Ltd. (the "Company") to undertake a limited assurance engagement of the environmental performance indicators marked with a star (the "Indicators") for the period from April 1, 2022 to March 31, 2023 included in its ESG data book 2023 (the "ESG data book") for the fiscal year ended March 31, 2023.
The Company's Responsibility The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria (the "Company's reporting criteria"), as described in the ESG data book.
Our Responsibility Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures we have performed. We conducted our engagement in accordance with the `International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements other than Audits or Reviews of Historical Financial Information' and the `ISAE 3410, Assurance Engagements on Greenhouse Gas Statements' issued by the International Auditing and Assurance Standards Board. The limited assurance engagement consisted of making inquiries, primarily of persons responsible for the preparation of information presented in the ESG data book, and applying analytical and other procedures, and the procedures performed vary in nature from, and are less in extent than for, a reasonable assurance engagement. The level of assurance provided is thus not as high as that provided by a reasonable assurance engagement. Our assurance procedures included: Interviewing the Company's responsible personnel to obtain an understanding of its policy
for preparing the ESG data book and reviewing the Company's reporting criteria. Inquiring about the design of the systems and methods used to collect and process the
Indicators. Performing analytical procedures on the Indicators. Examining, on a test basis, evidence supporting the generation, aggregation and reporting
of the Indicators in conformity with the Company's reporting criteria, and recalculating the Indicators.
Visiting the Fuji Area of JATCO Ltd selected on the basis of a risk analysis. Evaluating the overall presentation of the Indicators.
Conclusion Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that the Indicators in the ESG data book are not prepared, in all material respects, in accordance with the Company's reporting criteria as described in the ESG data book.
Our Independence and Quality Management We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. In accordance with International Standard on Quality Management 1, we design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
/s/ Kazuhiko Saito Kazuhiko Saito, Partner, Representative Director KPMG AZSA Sustainability Co., Ltd. Tokyo, Japan July 18, 2023
Notes to the Reader of Independent Assurance Report: This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
[Remarks] Basis of calculation for CO emissions, waste generated and water input subject to third-party assurance
CO emissions from production sites: Calculated based on Nissan internal standards. The energy use data of each site is based on invoices from suppliers, which are multiplied by a CO emissions coefficient publicly available for each production site.
CO emissions from purchased goods & services: Calculated by multiplying the amount of CO emissions per vehicle by the annual global production volume in fiscal 2022, covering raw materials purchased in conjunction with automobile production. CO emissions per vehicle are calculated by applying the Database on GHG Emission Factors (ver.3.0) for Carbon Footprint of Products Pilot Project to the amount of raw material input per typical vehicle as of 2010.
CO emissions from the use of sold products: Calculated using the average regional CO emissions per vehicle multiplied by the regional estimated average lifecycle mileage and multiplied by fiscal 2022 sales volumes. The average CO emissions for the use phase (including direct emissions only) per unit are calculated for each of our main regions (Japan, U.S., EU and China) and extrapolated from average emissions of these markets for other markets. Estimated average lifetime mileages are set based on published country-by-country market average lifetime mileage data.
Scope 3 emissions figures are estimates subject to varying inherent uncertainties. Waste generated from production sites: Calculated based on Nissan internal standards.
The discharged waste within production sites is based on data from truck scales at the sites or data reported by disposal contractors. However, materials recycled in-house, used in reproduction (reused by Nissan) or recycled (as salable, valuable materials) are not categorized as generated waste. In addition, non-steady and irregular generated waste, waste generated in canteens, waste from permanently stationed companies at the sites, waste generated by external vendors and waste from construction are excluded. Water input from production sites: Calculated based on Nissan internal standards. Water input is the water withdrawal amount according to billing meters or company meters installed on site. The water withdrawal amount includes drinking water (tap water), industrial-use water, underground water (spring/well water) and rainwater or the like.
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Strengthening our business foundations to address environmental issues
Environmental governance
Enhancing environmental management based on ISO 14001
As of January 2011, the Nissan global headquarters and all other main Nissan facilities in Japan have acquired ISO 14001 certification for environmental management systems. We have appointed an environmental management officer to oversee our environmental activities. The coordinated goals set by the environmental management officer for the Companywide management system are cascaded down to the employees working in all facilities in Japan through local offices. Nissan`s ISO secretariat oversees companywide efforts, while local offices in Japan are responsible for activities at each facility and division, and for coordinating the proposals submitted by employees. By engaging in discussions at least once a month, the ISO secretariat and local offices confirm progress made toward established goals, to share best practices, to improve management systems, to develop plans for the next fiscal year, and to communicate requests from local facilities and divisions. The items discussed are reported to the environmental management officer twice a year (once in the management review conference) so that Nissan can decide on needed improvements. To confirm that management is functioning properly with respect to environmental management, we periodically retain third-party organizations to conduct audits. Additionally, to strengthen compliance, we conduct internal audits with
respect to areas covered by third-party audits as well as all other environmental activities, prioritizing adherence to government reporting requirements and identifying risks. Nissan`s overseas production plants have also acquired ISO 14001 certification. Nissan`s policy is to establish environmental management systems in all regions where we operate in accordance with the same standards. *1
Nissan`s voluntary operational standards
Stricter controls on environment-impacting substances are being implemented in countries around the world. Examples include the European ELV directive, the European Union`s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation, which went into effect in June 2007, and Japan`s Act on the Evaluation of chemical substances and regulation of their manufacture. The Japan Automobile Manufacturers Association (JAMA) has launched a voluntary program to help minimize the potential release of formaldehyde, toluene, and other volatile organic compounds (VOCs)*2 in vehicle cabins. This program utilizes the VOC guidance value established by the Ministry of Health, Labor and Welfare for specific substances in January 2002 to be met for all new models manufactured or sold by Nissan in Japan after April 2007. In accordance with the Ministry`s guidance value revision in January 2019, new guideline values have been met from new models released in 2022 or later. Nissan is strengthening its management of environmentimpacting substances, adhering to a planned schedule
*1Click here for more information on our Environmental governance.>>> P018 *2VOCOrganic chemicals that readily evaporate and become gaseous at normal temperature and pressure conditions. *3Excluding non-consolidated OEM plants
for their reduction and advancing the use of alternative substances. In 2005, we drew up policies regarding the use of substances scientifically recognized as being hazardous or carrying high hazard risks, as well as those identified by NGOs as dangerous. In 2007, these policies, which restrict environment-impacting substances even more than the domestic laws of the countries where we operate, were rolled out globally. Based on the above-referenced policies, Nissan developed a specific Nissan Engineering Standard (NES) for the Restricted Use of Substances, which identifies the chemical substances whose use is either prohibited or controlled. The NES is applied in material selection and also in the components and parts used in our vehicles from initial development onward. For example, four heavy metal compounds (mercury, lead, cadmium, and hexavalent chromium) and the polybrominated diphenyl ether (PBDE) flame retardant have been either prohibited or restricted in models*3 (excluding OEM vehicles) launched globally since July 2007. To control VOC use in car interiors, Nissan adopted the voluntary targets of JAMA as our own standards for global operations, and we are reviewing and reducing the use of prohibited and controlled chemical substances in materials and adhesives for seats, door trim, floor carpet and other parts. Every year, we revise the Restricted Use of Substances standards to reflect changes in international laws and regulations and to add new substances covered by our voluntary internal standards. For the 2017 revision, the
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
members of the Renault-Nissan Alliance implemented shared standards based on a reassessment of select criteria for hazards and risks that enhance the level of compliance, strengthening alliance activities by anticipating regulations. We build and maintain communication and management systems throughout the supply chain. For example, we disclose information to users and submit REACH reports to the relevant authorities about the vehicles and parts produced in or exported to Europe from Japan and other countries (including some from the U.S.). We also comply with Classification, Labeling and Packaging of Substances and Mixtures regulations.
Sanctions and government guidance at Nissan production facilities
During fiscal 2022, in relation to the environmental management system, none of Nissan`s production facilities received notifications or sanctions from the government regarding significant violations of environmental laws or regulations. However, there was one environmental incident (total nitrogen level in factory effluent exceeding the standard value) at a manufacturing site in Japan for which government guidance was received. The root cause was poor condition of the septic tanks, and we will prevent recurrence by reviewing septic tank maintenance and management methods and strengthening the monitoring system.
Raising employee awareness
Nissan`s environmental activities are enabled by the knowledge, awareness, and competency of its employees. Based on ISO 14001 standards, we have conducted employee education rooted in the Nissan Green Program 2022 (NGP2022) regarding CO emission reductions, energy, water consumption, and waste. In addition, education regarding environmental accident prevention and the
management of hazardous materials is provided every year to employees, including those from affiliated companies working in our production facilities. Training programs with quantitative evaluation are deployed to improve the skills and knowledge of each employee on how to reduce environmental impact in their activities. The content of these training programs is updated every year. In Japan, we have original educational curriculums to deepen their understanding of NGP2022 and environmental issues surrounding the auto industry through an orientation for new employees, seminars for middle managers and town hall meetings between managements and employees. Employees can stay up to date on our latest environmental attempts through features in the intranet, internal newsletters, and inhouse video broadcasts. Overseas, we provide information and education to employees through the intranet, videos, events, and various other communication approaches suited to each region.
Employee-initiated activities and evaluation system
In fiscal 2008, we added lenvironmentz to the range of kaizen issues addressed by quality control (QC) circles. This offers opportunities for employees to think proactively and propose ideas to improve environmental aspects of our business. Managers encourage the active participation of employees by communicating how these activities of QC circles are linked to the achievement of our midterm business plan. The ideas proposed by employees are evaluated by managers and QC circle secretariats for their potential contribution to environmental improvement, among other factors, after which we may implement those with the highest potential. The knowledge and skills of the frontline employees on CO emission reduction, energy management, water conservation, and waste and landfill reduction have been compiled in a best-practices manual and shared among
global facilities. We hold contests in some facilities during officially designated months in Japan to keep employees motivated about participating in environmental activities. These include the Energy Use Reduction Idea Contest in February (energy-efficiency month), the Water Usage Reduction Idea Contest in June (environment month), and the Waste Reduction Idea Contest in October (3R promotion month). We also use various methods to reward employees for their contributions to environmental improvement activities. These activities are included in the annual performance goals used at some Japanese and overseas locations. This system assesses employees` achievement of goals, reflecting this in performance-related elements of employee bonuses. Employees are also recognized for environmental improvement through Nissan prizes presented by the CEO or other executives, awards given by plant heads, and lTHANKS CARDz recognition from managers for excellent work or achievements.
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Lifecycle assessment to reduce environmental impact
Nissan conducts environmental risk management based on solid environmental policy by assignment personnel in each facility, validation by supervisors, and regular inspections. We also identify potential risks by conducting life cycle assessments (LCAs). The LCA method is used to quantitatively evaluate and comprehensively assess environmental impact, not just when vehicles are in use, but at all stages of their life cycle, from resource extraction, manufacturing, and transport to disposal. Our LCA methods have been certified by the Japan Environmental Management Association for Industry since 2010 and since 2013 by third party TÜV Rheinland in Germany (renewed in November 2021). The latter certification is based on ISO 14040 / 14044 standards and validates the environmental impact calculations in our product LCAs. In NGP2022, LCA was conducted for new vehicles and technologies based on this calculation procedure to further reduce the environmental impact over the vehicle life cycle by improving efficiency during both manufacture and operation of vehicles.
Raw material extraction
Manufacturing
Global top-selling model`s LCA improvements
We have been expanding the application of the LCA method and enhancing the understanding of the environmental impact of our products in quantitative terms, especially our best-selling models worldwide. Coverage on a unit basis has reached approximately 80% of models globally and approximately 90% in Europe. With the Rogue (X-trail) and Qashqai, for example, improvements in internal combustion engine efficiency and vehicle weight reduction have led to both enhanced safety features and lower CO emissions.
Lifecycle CO equivalent emissions (CO, CH, NO, etc.)
% 100
% 100
80
80
60
60
40
Current model:
40
Current model:
1.5 liters, CVT
1.3 liters, 6MT
20
Previous model: 2.5 liters, CVT
20
Previous model: 2.0 liters, CVT
0 Previous model
Current model
0 Previous model
Current model
Rogue (X-Trail)1
Qashqai2
Production & logistics Fuel & electricity production Usage Maintenance ELV
1 Production in the U.S., 120,000 miles driven in the U.S. (basis for comparison). 2 Production in EU, 150,000 km driven in EU (basis for comparison).
VEHICLE LIFE CYCLE
End-of-life vehicle recycling
or reuse
Vehicle use
LCA comparison for e-POWER models
Nissan introduced its new e-POWER powertrain in 2016, marking another significant milestone in the electrification strategy with life cycle emission improvements. For example, the Note e-POWER, Nissan Kicks e-POWER, X-Trail e-POWER, and Serena e-POWER have achieved 18% to 27% reductions in CO emissions compared to their gasoline-powered counterpart models. Electrified e-POWER vehicles use a system in which a gasoline engine operates only under certain circumstances and is used to generate electricity. As a result, e-POWER vehicles achieve lower exhaust emissions and better fuel efficiency for driving than conventional gasoline engines. Also, since an e-POWER vehicle only requires a small battery (unlike one that is 100% electric), emissions from the manufacture of dedicated EV parts such as batteries can be kept at a level only slightly above that for parts for conventional vehicles. There is future potential for further reductions in CO emissions through additional weight reductions and the optimization of lrunning energy management by e-POWERz.
Lifecycle CO equivalent emissions (CO, CH, NO, etc.)
% 100
% 100
80
80
60
60
40
e-POWER : 1.2 liters
40
Base model : 1.2 liters
20
20
e-POWER : 1.4 liters Base model : 2.0 liters
0 Base model e-POWER Note
0 Base model e-POWER Serena
Production & logistics Fuel & electricity production Usage Maintenance ELV Production in Japan, 100,000 km driven in Japan (basis for comparison).
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
LCA comparison of EV models
The Nissan LEAF reduces its lifecycle CO emissions by approximately 32% compared to conventional vehicles of the same class in Japan. The Nissan ARIYA and Nissan Sakura launched in 2022, further improve EV product appeal
and reduce environmental impacts. Compared to Japanese gasoline-powered vehicles in the same class, the Nissan ARIYA and Nissan Sakura reduce lifecycle CO emissions by 17-18%.
Initiatives to reduce CO emissions at each stage of the lifecycle
In Nissan ARIYA production at the Tochigi Plant, we have strengthened efforts to reduce CO emissions at each stage of the lifecycle. In the production stage, we contributed to the reduction of CO equivalent emissions through ongoing efforts that include increasing the yield of materials and utilizing recycled raw materials. Through the Nissan Intelligent Factory method introduced at the Tochigi Plant in 2021, we are engaged in efforts to ensure all production plants are carbon neutral by promoting innovations that improve production efficiency during vehicle assembly, increasing the efficiency of energy and materials used in plants, electrifying plant equipment, and utilizing renewable energy sources. To reduce environmental load in vehicle use, Nissan is continually reducing CO emissions by improving efficiency of electric powertrains including battery, power savings on accessories and increasing renewable energy usage. Nissan is also promoting vehicle battery reuse to help realize the decarbonization of society as a stationary battery for distributed power supply to store various renewable energies. Nissan will keep reducing the environmental impact from the entire life cycle of electric vehicles.
Lifecycle CO equivalent emissions (CO, CH, NO, etc.)
Production & logistics Fuel & electricity production Usage Maintenance ELV
Production in Japan, 100,000 km driven in Japan (basis for comparison).
% 100
80
60
40
Nissan LEAF
% 100
80
60
40
20
20
0 Same
class model: Gasoline 1.8 L
Nissan LEAF: 40 kWh Battery
0 Same
class model: Gasoline 2.0 L
Nissan ARIYA: 66 kWh Battery
Nissan ARIYA
% 100
80
60
40
20
0 Same
class model: Gasoline 0.66L
Nissan Sakura: 20.6kWh Battery
Nissan Sakura
Lifecycle improvements beyond climate change
Nissan is expanding the scope of LCAs to include not just greenhouse gases but also a variety of chemicals. Our calculations show that, compared to conventional gasoline engines, the new Qashqai achieves reductions in emission 5-19% for all targeted chemical substances, and reduces environmental impacts throughout its life cycle.
Emissions improvement in the New Qashqai over
its lifecycle
NMVOC
95%
CO2 100%
81%
80%
60%
40%
CH4
82%
20%
0%
89%
PM
81%
N2O
87%
SO2
94%
NOx
Conventional Mild Hybrid
Production in EU, 150,000 km driven in EU.
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Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Data
Strengthening our business foundations
Stakeholder engagement
Working with suppliers
As part of NGP2022, we are working to improve suppliers` environmental performance via the following initiatives.
Suppliers` environmental performance improvement initiatives
Nissan Green Purchasing Guidelines
2008 Newly published Nissan Green Purchasing Guideline as globalized edition.
2010
Document edited according to the revised EU regulations for environment impacting substances (EU REACH regulation, MSDS report requests) Document edited according to the publication of the Renault-Nissan CSR Guidelines for Suppliers.
2011 Document edited according to the announcement of the NGP 2016.
2016 Unification of Engineering Standards of Renault and Nissan (RNESB-00027)
2018 Alignment with NGP2022
2019 Mandate self-diagnostic assessment requirement added
2021 Revise of corporate purpose, data submission for LCA, description of CDP survey
2022 Revision of CO2 emission reduction through value chain, technical standard and regulation revision
Supplier environmental data surveys in global
2012-13 Conducted Nissan`s original survey (CO2, water, waste)
2014- Participate in the CDP supply chain program (FY2022 response rate Climate change: 81%, Water security: 74%)
THANKS activities
2009 Promoted joint improvement THANKS activities*1 with suppliers
Working with consolidated production companies
We encourage our consolidated production companies in a variety of markets to acquire ISO 14001 certification and to undertake other environmental initiatives based on their respective policies. Meetings with major consolidated companies in Japan were held to exchange views on cooperation toward the goals outlined in NGP2022 as well as to work toward to a deeper understanding of the details of NGP2022 and sharing of the environmental initiatives undertaken by each company.
Working with dealerships
We believe that concern for the environment at our dealerships is essential to earning the trust and appreciation of our customers for Nissan`s environmental activities. Our dealerships in Japan have introduced an original approach to environmental management based on ISO 14001 certification called the lNissan Green Shopz certification system. This program is managed through internal audits conducted by the dealerships every six months, in addition to annual reviews and certification renewal audits carried out every three years by Nissan Motor Co., Ltd. (NML). As of the end of June 2023, the system has certified approximately 2,700 dealerships of 150 dealers, including parts dealers, as Nissan Green Shops. Certified dealers introduce and proactively communicate their environmental initiatives to customers.
*1THANKS is abbreviation of Trusty and Harmonious Alliance Network Kaizen activity with Suppliers. Click her for more information.>>> P099
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Nissan Motor Corporation
Contents
Environmental policies and philosophy
Corporate direction Climate change
Environmental Air quality
Social Resource dependency
Water scarcity
Governance Third-party assurance
Working with future generations
We are working to share information on environmental issues with the younger generation, and to raise awareness among tomorrow`s leaders. We have been conducting environmental programs for students in school visits in Japan since 2008 in which more than 123,000 students had participated as of March 2023. In NGP2022, we have expanded the program in Japan and in other countries.
Key activities in NGP2022 Youth education programs, such as Nissan Waku-Waku Eco School, an interactive program delivered by Nissan employees to schoolchildren, have been expanded globally to:
Share knowledge of global environmental issues Introduce our environmental initiatives, such as the
Nissan LEAF EV and our other green technologies
Through environmental education, the program encourages participants to adopt eco-friendly activities in their daily lives.
Working with NGOs
Nissan believes that environmental activities are critical in social contribution activities, thus we are engaged in various activities to realize a low carbon society, including implementing educational programs to deepen understanding of global environmental issues. At the same time, in order to respond to the increasing complexity of environmental issues, we believe that it is effective to collaborate with NGOs, NPOs, governments, and various other stakeholders to enhance these activities while making the most of our mutual strengths. In contributing to local communities, Nissan aims to create a society that is cleaner, safer, and offers equal opportunities to all. NGP2022 sought to support local communities through various projects by collaborating globally with NGOs to respond to issues such as climate change and water scarcity.
Key activities in NGP2022 Fostering employees` environmental awareness through
participation in World Wide Fund for Nature Japan (WWF Japan) campaigns Continue participation in WWF Japan`s worldwide Earth Hour environmental awareness-raising campaign toward greenhouse gas emission reduction Support the lWalk in Her Shoesz campaign organized by Care International Japan to build awareness of water scarcity and human rights issues in developing countries, and promote employees to participate in the campaign.
Data
Strengthening our business foundations
ESG data book 2023
065
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Social
Respect for human rights
Key areas
Sustainability vision
Main goals / approaches for 2022
Related materiality issues
Traffic safety
Reduce the number of fatalities involving Nissan vehicles to virtually zero
Promote safety technologies evolution and adoption
Inclusive mobility solutions Vehicle safety
Diversity, equity and inclusion (DEI)
Quality
Achieve sustainable development by creating innovation through building an inclusive organization where individual employees with diverse backgrounds in terms of race, nationality, gender, religion, disability, age, place of origin, gender identity and sexual orientation can demonstrate their potential to the fullest
For female manager ratio, in principle, we will target to get closer to the same level of female ratio in management as indirect employees. (Japan)
Product quality
Strive for top-level quality from the customer`s perspective
Sales and service quality
Achieve top-level quality in all focus markets and maintain top-level quality for sales and service over the longer term
Supply chain Employees
Aim to establish a sustainable supply chain with due regard to the environment and human rights
Learning and development
Occupational health and safety
All of our suppliers follow Renault-Nissan CSR Guidelines for Suppliers Aim to reduce our collective environmental footprint through environmental data survey and
collaboration with suppliers
Nurture an ability to cope with a range of potential future developments
Realization of a bright and vibrant workplace free from disasters and illnesses
Create a continuous learning culture at Nissan by: Launching an integrated development framework Optimization of Leadership Development Programs Providing digital solutions to realize lanytime, anywhere
learningz utilizing great digital solutions
Occupational accident frequency rate to be continuously maintained below previous year`s results. Aim to eliminate fatal accidents
Promote health management and aim to remain a company where each and every employee can work with enthusiasm
DEI
Product quality
Supply chain management
Human resource development
Wellness & occupational safety/health
Community engagement
Realize a cleaner, safer, and more inclusive society
All regions are executing philanthropy programs for strategic areas, such as lzero emission,z lzero fatalityz and lzero inequalityz
Community development
Material issue: human rights
SDG areas where Nissan mainly adds value
ESG data book 2023
066
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Social policies and philosophy
Social policies and philosophy 067 Human rights 068 Traffic safety 075 Diversity, equity and inclusion 079 Product safety and quality 091 Supply chain management 097 Human resource development 102 Labor practices 107 Employees' health and safety 112 Community engagement 117 Social data 159
Nissan`s business activities are supported by various stakeholders. As well as respecting the rights of all stakeholders, as a global company we conduct our business activities with a constant awareness of society`s needs and social responsibility in order to contribute to the sustainable development of society. Through an assessment of various business risks and opportunities, we have set six key areas in the social dimension as part of Nissan Sustainability 2022, and we are conducting related initiatives in these areas. The six areas are traffic safety, diversity, equity and inclusion, quality, supply chain, employees, and community engagement. In traffic safety, our goal is zero fatalities: reducing the number of deaths from accidents involving Nissan vehicles to virtually zero. To this end, we continue working to help reduce traffic accidents. Regarding diversity, equity and inclusion, we are proactively hiring more diverse talent with different backgrounds to embrace gender and diverse nationalities as a strength for the organization. We also aim to be a truly inclusive company so that employees can demonstrate their potential to the fullest. Quality is fundamental to Nissan`s activities. Employees at all levels of the organization are sincerely listening to each one of our customers to improve quality. We are strengthening our sustainability initiatives in all phases of our supply chain, from the procurement of raw materials to manufacturing, distribution, sales, and aftersales service, covering all the activities involved until the finished product reaches our customers. With respect to employees, we are expanding opportunities for our employees to learn so that they can each achieve their maximum potential. We aim to make continuous learning a part of our corporate
culture to encourage talent development and achieve sound labor practices and thus create a dynamic work environment where the health and safety of our staff is a top priority. Furthermore, Nissan recognizes local communities are an essential part of its business in every region, and is working to promote community engagement around the world in three strategic areas: environment, traffic safety, and diversity. In ESG data book 2023, we report on activities in those six areas and the human rights initiatives which are fundamental principles to all of them.
ESG data book 2023
067
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Human rights
Human rights policies and philosophy
Nissan has long regarded valuing people and respecting human rights as fundamental to its management, and this stance is clearly stated in the Global Code of Conduct established in 2001. All Nissan employees share the recognition that compliance with the laws, regulations, standards, and company rules applicable in all countries and regions is fundamental to conducting business, that the human rights of all stakeholders are respected, and that it is essential that they act in accordance with the highest ethical standards. We do not condone discrimination on the basis of race, nationality, gender, religion, disability, age, place of origin, gender identity, sexual orientation or any other characteristic nor infringement on human rights in the supply chain, such as forced labor and child labor. This respect for human rights is reflected in our corporate purpose, lDriving innovation to enrich people`s livesz. In addition, the Nissan Way (revised in 2019), a guideline for action common to all employees, defines lRespect others, respect societyz as one of the five values, positioning respect for human rights as the foundation of our corporate culture. In the process of formulating the long-term vision Nissan Ambition 2030 announced in November 2021, many executives, including the CEO, engaged in lively discussions on various issues and initiatives related to human rights. The participants reaffirmed their commitment to further strengthen their efforts to respect human rights and ensure
that they are put into practice in order to realize our corporate purpose. In fiscal 2021, a special project team for human rights was established reporting directly to the CEO. For about eight months, team members selected from various departments across the company exchanged opinions pertaining to respect for human rights with external experts, confirmed social trends and demands, and discussed the direction Nissan should take. The team`s proposal was submitted to and approved by the Executive Committee, the company`s highest decision-making body. The proposal defines lNissan`s Human Rights Want-to-be Statementz and clarifies key issues, measures, and internal systems for strengthening human rights management. In response, we established the human rights working group in fiscal 2022 to further strengthen efforts to respect human rights and resolve human rights issues. Nissan will continue working to instill the lNissan`s Human Rights Want-to-be Statementz throughout the company and promote even fuller respect for human rights on a global scale.
*1Click here for more information on the Nissan Human Rights Policy Statement (revised version).https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/HUMAN_RIGHTS/
Nissan`s Human Rights Want-to-be Statement
· To address various issues and risks through proactive and open communications with our stakeholders and ensure that human rights are respected and naturally incorporated into our daily work.
· To allow each individual, including Nissan employees and business partners, to maximize their abilities in a diverse and inclusive workplace with a peace of mind.
Human Rights Policy Statement
In addition to being a signatory of the UN Global Compact, Nissan is committed to respect all human rights as set out in the Universal Declaration of Human Rights (UDHR), as well as the International Covenant on Civil and Political Rights (ICCPR), the International Covenant on Economic, Social and Cultural Rights (ICESCR), and the International Labour Organization Declaration on Fundamental Principles and Rights at Work (ILO Core Labour Standards). Based on the UN Guiding Principles on Business and Human Rights (UNGP), we formulated and published the Nissan Human Rights Policy Statement*1 (First Edition) in June 2017 to actively prevent adverse human rights impacts and updated it in July 2021.
ESG data book 2023
068
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Also in 2021, Nissan formulated and published the Nissan Global Guideline on Human Rights,*1 which outlines specific measures for employees regarding respect for human rights, with the aim of ensuring compliance with and thorough implementation of the Nissan Human Rights Policy Statement. The guideline is intended to help Nissan employees in the countries and regions where Nissan operates feel more secure in their work and to ensure
consistency between Nissan`s activities and the way the company addresses human rights issues as required by international and local communities. Under the revised policy statement and newly formulated guideline, Nissan is fulfilling its corporate responsibilities, practicing its mission, conducting business activities, and promoting initiatives to respect human rights in order to realize its corporate purpose.
Milestones related to respect for human rights
2001 2004 2010 2013 2015 2016 2017 2018 2019 2020
2021
2022
Policies and philosophy
Approaches
Formulates Global Code of Conduct Signs United Nations Global Compact Publishes Renault-Nissan CSR Guidelines
for Suppliers
Formulates action against conflict minerals
Publishes revision to Renault-Nissan CSR Guidelines for Suppliers
Formulates and publishes Nissan Human Rights Policy Statement
Updates Global Code of Conduct Announces Nissan Sustainability 2022
Updates Global Minerals Sourcing Policy Statement Publishes Customer Privacy Policy
Publishes Nissan Global Guideline on Human Rights Publishes revision to Nissan Human Rights Policy
Statement Publishes lRenault-Nissan CSR Guidelines for
Suppliersz Supplementary Handbook for Nissan Suppliers Publishes revision to Global Code of Conduct *2
Establishes diversity development office
Starts the research for conflict minerals and publishes results (published annually thereafter)
Starts third-party assessment of suppliers` sustainability activities
Introduces SpeakUp internal reporting system
Implements corporate impact assessment Conducts a human rights assessment at Nissan South Africa (Pty) Conducts a human rights assessment at Nissan Motor Thailand (NMT) and
group companies (Nissan Powertrain (Thailand) Co., Ltd. and SNN Tools & Dies Co., Ltd.) Conducts a human rights assessment at Nissan North America Inc. (NNA) Launches a special project team for human rights reporting directly to the CEO to strengthen human rights management
Conducts a human rights assessment at Nissan (China) Investment Co., Ltd. Establishes the cross-function human rights working group to further
strengthen efforts to respect human rights
*1Click here for more information on the Nissan Global Guideline on Human Rights.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/HUMAN_RIGHTS_GUIDELINE/ *2Click here for more information on the Global Code of Conduct.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/NISSAN_GCC_E.pdf
Human rights management
Governance related to human rights
At Nissan governance related to human rights is directed by the Global Sustainability Steering Committee chaired by the Chief Sustainability Officer (CSO) in accordance with the Nissan Human Rights Policy Statement. In fiscal 2022, the governance structure was revised and examined. Specifically, as part of day-to-day management, related functions and overseas regional headquarters regularly report progress to the Sustainability Development Department, which oversees human rights initiatives. The Sustainability Development Department reports or makes proposals to the Global Sustainability Steering Committee and the Executive Committee, which also reports as well as to the Board of Directors. We will strengthen our human rights governance system from day-to-day management to the board level to ensure that human rights are respected at all levels of Nissan`s business activities. In fiscal 2022, the newly established human rights working group addressed and strengthened four human rights issues clarified by the human rights special project team in fiscal 2021. (1) Expand the scope of employee human rights due diligence; (2) expand and strengthen human rights training; (3) establish grievance mechanisms for suppliers; and (4) conduct and strengthen stakeholder engagement (including responses to serious allegations), and Sustainability, HR, Purchasing, Communication and other related functions including regions have been working on solutions in a global and cross-functional manner. The progress and results of these efforts were reported twice to the Global Sustainability Steering Committee and also to the Executive Committee,
ESG data book 2023
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
the highest decision-making body.
Nissan regularly reviews Nissan Human Rights Policy Statement and the Nissan Global Guideline on Human Rights in accordance with relevant internal policies and rules as well as external laws, regulations, guidelines, and social demands. We continuously conduct human rights due diligence based on these policies, in order to enhance efforts to respect human rights and reduce risks of human rights issues. We also disclose and report the status of these human rights initiatives both internally and externally in a timely and appropriate manner. In addition, we have also incorporated lhuman rightsz into our corporate risk map based on the Global Risk Management Policy. The status of these initiatives is regularly reported to the Corporate Risk Management Committee. In fiscal 2022, the status of the
initiatives was also reported to the Audit Committee and the Board of Directors. *1
Human rights management for employees and in collaboration with suppliers
The Nissan Human Rights Policy Statement and the Nissan Global Guideline on Human Rights are applicable to all of Nissan`s executives and employees. Nissan`s fundamental ethical expectations from society are also clarified in the Global Code of Conduct. All executives and employees recognize the importance of applying the aforementioned statement beyond Nissan`s own operations. At every level of our global supply chain, we aim to conduct ethically, socially, and environmentally conscious business activities. We also work together with suppliers, contractors,
Human rights governance structure
Board-level Governance
Senior-level Governance
Board of Directors
Reports
Supervision
Executive Committee
Reports/Proposals
Decisions
Global Sustainability Steering Committee
Reports/Proposals
Decisions
Day-to-day management
Sustainability Dev. Dept.
Related Dept.(HR, PUR, etc.)
Regional Headquarters
and other business partners to achieve this goal. Since 2006, Nissan has shared a set of common values and processes around purchasing known as The Renault-Nissan Purchasing Way with its worldwide network of suppliers. Common values regarding human rights and labor are also shared via the Renault-Nissan CSR Guidelines for Suppliers. It details our expectations and request implementation regarding respect for human rights and prohibition of child labor and forced labor. We also evaluate our suppliers` sustainability activities including respect for human rights through third-party assessment. In addition, we require businesses we deal with to take the initiative and carry out due diligence on responsible minerals sourcing. Please refer to the supply chain management section for further information on human rights initiatives in the supply chain. *2 We are also strengthening communication with our sales companies and promoting consistent sustainability management, including on human rights issues. At the same time, Nissan has grievance mechanisms and processes in place and it allows collecting and remedying various types of complaints, including complaints related to allegations of potential human rights abuses. The whistleblowing system provides for anonymity in accordance with legal requirements. We are committed to investigating, addressing, and responding to concerns raised, and employees who make inquiries are protected from retaliation as defined in whistleblowing processes. *3
Human Rights Governance Level
*1Click here for more information on risk management enhancement efforts.>>> P133 *2Click here for more information on supply chain-related human rights initiatives.>>> P099 *3Click here for more information on a globally integrated reporting system.>>> P136
See below for more details about our policies and guidelines. Global Code of Conducthttps://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/NISSAN_GCC_E.pdf Renault-Nissan CSR Guidelines for Suppliershttps://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/SUPPLIERS2015/ lRenault-Nissan CSR Guidelines for Suppliersz Supplementary Handbook for Nissan Suppliershttps://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/SUPPLIERS_SH/ Global Minerals Sourcing Policy Statementhttps://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/Minerals_Sourcing_Policy_e.pdf Nissan Global Guideline on Human Rightshttps://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/HUMAN_RIGHTS_GUIDELINE/index.html
ESG data book 2023
070
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Human rights achievements
Nissan recognizes the need to take a comprehensive approach to managing human rights. After respecting local laws and identifying actual or potential risks related to human rights that we might have inadvertently caused or contributed to cases of human rights violations, we consider it vital to monitor and assess such risks, as well as to develop appropriate response strategies.
Human rights due diligence
Nissan has established and operates the human rights due diligence process in accordance with the United Nations Guiding Principles on Business and Human Rights (UNGP) and the OECD*1 Due Diligence Guidance for Responsible Business Conduct. We conduct regular human rights
assessments to identify, prevent, and mitigate human rights risks, take corrective actions, track implementation and results, and communicate how we have addressed impacts, thus implementing a PDCA cycle for human rights management. We also apply the same process to our supply chain and regularly conduct third-party sustainability assessments based on the lRenault-Nissan CSR Guidelines for Suppliersz and its supplementary handbook. The results are monitored and improvements are made with suppliers. *2 In fiscal 2017, in addition to formulating the Nissan Human Rights Policy Statement, we cooperated with Business for Social Responsibility (BSR), a U.S. NPO promoting sustainability to implement a human rights assessment that identified areas of requiring focus in Nissan`s efforts to respect human rights.
Human rights due diligence process
GUIDIN G PRINCI PLES ON BUSINESS
AND HUMAN R IGH TS
OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE
BUSINESS CONDUCT
Implementing the United Nations "Protect, Respect and Remedy" Framework
Human rights policy
Human rights assessment
Strategy &
integration
Monitoring* &
reporting
Communication &
stakeholder engagement
*1Organization for Economic Co-operation and Development *2Click here for more information on supply chain-related human rights initiatives.>>> P099
** Inccll.. GgrieevvaanncceeMmecehcahnaisnmism
Specifically, in order to identify factors that impact human rights as an automobile manufacturer, we conducted a human rights impact assessment from two perspectives: the impact on human rights risks and the potential impact caused by Nissan, and classified them into priority areas and areas requiring a response. Four priority focus areas that Nissan should address by incorporating business strategies and business activities from among the elements identified as priorities were specified, namely 1) employee labor conditions, 2) supplier labor conditions, 3) product safety and 4) customer privacy. Based on the results of this impact assessment, as part of human rights due diligence, we worked with outside NPOs to conduct human rights assessments at Nissan South Africa (Pty) in fiscal 2019 and again in fiscal 2020 at Nissan Motor Thailand (NMT), group companies (Nissan Powertrain
Four priority focus areas identified
High Extremely high important areas
Supplier labor
conditions
Employee labor
conditions
Product safety
High important areas
Customer privacy
Severity of risk or impact on human rights
Important areas
Low
Potential impact caused by Nissan
High
ESG data book 2023
071
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
(Thailand) and SNN Tools & Dies), and in fiscal 2021, Nissan North America. We confirmed human rights risk was generally low at all companies assessed. We formulated action plans to remediate items requiring improvement identified in the assessments and are improving them on an ongoing basis by executing those plans.
In fiscal 2022, as in previous years, we conducted human rights assessments at Nissan (China) Investment Co., Ltd. as part of human rights due diligence in accordance with the Nissan Human Rights Policy Statement and the Nissan Global Guideline on Human Rights. In this human rights assessment, we continued to gain support from third parties, leveraging their expertise. We conducted a self-assessment using a questionnaire, as was done in the previous assessments, then gained more comprehensive knowledge of the situation through interviews with local employees. In selecting interviewees, we considered attributes such as employment status, job title, gender, and race in order to include diverse perspectives. The assessment criteria incorporated international standards from the International Labor Organization (ILO) and the Organization for Economic Cooperation and Development (OECD), as well as the Nissan Global Guideline on Human Rights while also incorporating compliance with local laws and regulations. The assessment did not suggest any inconsistencies with local laws. The assessment identified potential areas which the targeted bases could consider revising to better reflect the seven themes*1 outlined in the Nissan Global Guideline on Human Rights. We considered and implemented mitigation measures for each of those that were recognized as being at actual risk. As a specific example, in relation to the theme of labor management systems and access to
remedy, the interviewees raised the concern that employees were not fully aware of the existence of the Nissan Human Rights Policy Statement. In response, we decided to once again review our internal communications and training regarding the Policy Statement to ensure that all employees understand its contents, and conducted additional awareness activities and training to this end. In deciding on improvement activities, we engage in dialogue with the affected local employees and make proposals which are reviewed and approved at the Global Sustainability Steering Committee.
In fiscal 2022, we also developed a human rights assessment process based on past human rights due diligence performance and experience. Considering the size and geography of our business, we plan to further expand the scope of employee human rights due diligence to cover at least 80% of our global workforce each year. Going forward, for each theme, we will continue to check the progress and effectiveness of the improvement activities with the local employees, while at the same time monitoring and managing the process through the Global Sustainability Steering Committee.
Employee: Human rights assessment process
Apr. - May.
HRDD
Questionnaire distribution
Evaluation(taking into account the evaluation index and the points raised)
Jun. Jul. Sep. Oct. Mar.
A Grade
B Grade
C Grade Prioritized entity
Scoped entity
Send feedback report Make
Improvement plans by the
entity
Low risk
H R D D
HRDD selection of entity for implementation
High risk
With comment
Interview
Evaluate
Provide guidance for improvement
Conduct follow-up No comment
Next fiscal year process
SAQ With comment
No comment
Grade of HRDD
Out of 10points A8 B6 & <8 C5
*1Seven themes(evaluation items): Labor management system & access to remedy, forced labor, child labor & young workers, working conditions, discrimination, freedom of association, and health and safety
ESG data book 2023
072
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Employee education and training related to human rights, internal reporting system
lNissan Human Rights e-Learning,z a mandatory training program for all global employees established in fiscal 2021, focuses on introducing the contents of Nissan Human Rights Policy Statement and the Nissan Global Guideline on Human Rights and consists of a CEO/CSO message, a definition of human rights, business and human rights, respect for human rights at Nissan, case studies, and tests. The training content is designed so that participants can learn basic knowledge related to human rights systematically and practice respect for human rights in their daily work. This training program was first introduced to indirect employees in Japan, and in fiscal 2022, it was in the middle of expanding to all directors and indirect employees at overseas consolidated bases, with a participation rate of 87.3% in Japan, 100% in China (NCIC) and 99.3% in ASEAN region. In addition, direct employees working at plants learned about concepts and approaches pertaining to respect for human rights, focusing on the Nissan Human Rights Policy Statement and the Nissan Global Guideline on Human Rights during video training on the Global Code of Conduct. Training was conducted at regular shift start meetings at all global plants or through an in-person classroom format. Furthermore, as described in the Global Code of Conduct, employees can submit inquiries related to human rights issues via the SpeakUp*1 global reporting system. We are committed to investigating, addressing and responding to any concerns reported, and employees who make inquiries are protected from any form of retaliation. With the aim of promoting efforts to respect human rights together with suppliers, we plan to establish a supplier contact point
to receive reports of human rights violations by Nissan employees during fiscal 2023. We have also established an internal process for human rights serious allegations, and are working with our overseas offices to strengthen our response.
Stakeholder engagement on human rights
<External stakeholder initiatives> In fiscal 2022, we held several dialogues with external stakeholders. Specifically, in September 2022, we invited four outside experts, Mr. Ryusuke Tanaka of the International Labor Organization (ILO), Ms. Emi Sugawara of Osaka University of Economics and Law, Mr. Daisuke Takahashi (Japan Federation of Bar Associations), and Mr. Keiichi Ujiie of Global Compact Network Japan, to hold a dialogue on the topic of lBusiness and human rights.z Several Nissan representatives from departments in charge participated in the meeting and introduced specific activities to strengthen initiatives, including defining a Roadmap to 2030 and Human Rights Want-to-be Statement, a governance structure to increase the commitment of internal stakeholders, and efforts to improve information disclosure. In addition to advice on Nissan`s activities in response to the above, there was also a broad exchange of views on the identification and assessment of serious human rights issues that Nissan should address. Specific feedback noted that lcompanies need to address highly vulnerable migrant workers and gender equality in employment, which is attracting attention from society,z lcompanies need to look at the link between human rights and business as a whole and further assess how rights holders in the supply chain are affected,z and lthe premise
*1Click here for more information on the SpeakUp.>>> P136 *2Click here for more information related to these sessions.>>> https://www.nissan-global.com/EN/SUSTAINABILITY/SOCIAL/HUMANRIGHTS/INITIATIVES/
for promoting business and human rights activities is to integrate human rights policies into management systems with the proactive participation of management.z *2
Engagement conducted with outside experts
Further, in March 2023, we held a follow-up session with stakeholders who participated in the dialogue held in September 2022, where in addition to reporting on the status of subsequent Nissan`s activities, we once again exchanged opinions and received evaluations and feedback on our activities. In addition to the above, we participated in the 2022 UNDP lBusiness and Human Rights Projectz (supported by the Japanese government), where we had the opportunity to deepen our understanding of the UNGP, review each of our own initiatives, and discuss prospects through group training and individual guidance by human rights experts (themes included human rights policies, mechanisms such as human rights due diligence and grievance mechanisms, and communication). On this project, Nissan was highly commended for its internationally recognized policies and management systems that respect human rights and its establishment of a cross-
ESG data book 2023
073
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
functional structure to address human rights issues. Nissan also received advice on addressing potential risks, strengthening activities according to their impact and priority, and enhancing the disclosure of information on human rights activities.
<Internal stakeholder initiatives> In fiscal 2022, we further systematized and strengthened internal communication on human rights promoted up to now, and proactively communicated messages on respect for human rights from CSO and the executive in charge of human resources to employees, introducing social topics and internal initiatives related to human rights. There have been approximately 8 communication opportunities, both large and small.
continue to send out messages from top management and implement educational programs as further actions through fiscal 2023. In addition, as new measures to further deepen employees` understanding, we will consider specific measures to expand the educational program and strengthen internal public relations. We will further strengthen efforts in the area of human rights by reflecting internal and external stakeholder feedback in human rights risk assessment, reporting, and communications. We will also promote initiatives through ongoing internal dialogues as well as dialogues with all Nissan stakeholders, including mentionable rights holders in the supply chain.
Sustainability seminar held for employees
Rather than conducting human rights-related training and information sharing, as in fiscal 2021, Nissan conducted a human rights awareness survey of its employees again in fiscal 2022 to ascertain their level of recognition and understanding of Nissan`s initiatives, their opinions and wishes, and to further elevate the level of human rights activities. Analysis of the survey results in fiscal 2022 show that employee awareness of human rights policies and guidelines has increased, and that we have been able to raise awareness of human rights within the company and expand these activities in many areas. Given the effectiveness of the educational programs conducted in fiscal 2022, we will
ESG data book 2023
074
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Traffic safety
Traffic safety policies and philosophy
The automobile has transformed people`s lives, bringing mobility, convenience, and the pleasure of driving. In recent years, the automotive industry has made significant advances, particularly in autonomous driving technologies and driver-assist features. The world is also undergoing major structural shifts due to aging populations and the rapid progression of urbanization. Technological innovation in the automotive sector is expected to help realize societies with less urban traffic congestion and more ways for senior citizens to move about safely. Nissan designs and engineers cars that embody the pleasure and richness of driving while offering a high level of safety. More than 90% of traffic accidents are caused by human error. Our goal is zero fatalities: reducing the number of deaths from accidents involving Nissan vehicles to virtually zero. To this end, we continue working to help reduce traffic accidents.
Traffic safety management
In 2022, there were 2,610 fatalities in Japan caused by traffic accidents. While this is 26 fewer than in 2021, there are still more than 2,000 deaths per year due to traffic accidents. According to the World Health Organization (WHO), approximately 1.30 million people die each year in traffic accidents globally. Nissan is working to develop vehicle control technologies aimed at significantly reducing accidents by utilizing nextgeneration LIDAR technology. We are working to enhance technologies that help lessen the severity of unavoidable accidents and bolster occupant protection. While pushing forward with technological advancements on the vehicle side, we are also conducting educational initiatives to help raise safety awareness for the motoring public.
Traffic safety achievements
Enhancements to Nissan`s safety technology and external ratings received*1
Intelligent Emergency Braking*2 is available on nearly all vehicle categories sold in Japan, including EVs and commercial vehicles, and standard on all major models. In the U.S., Automatic Emergency Braking is standard equipment on substantially all light duty vehicles and trucks. Otherwise in North America and Europe, Intelligent Emergency Braking is available on key models. Our vehicles have earned high safety ratings on many public and governmental tests held in various regions. Nissan is actively participating in industry activities such as those organized by the Japan Automobile Manufacturers Association (JAMA) to promote the vehicle safety measures activities and the strategic standardization activities. Nissan contributes to the creation of the international regulations (WP29) and de jure standards (ISO) of lperformance evaluation test methodsz for various safety technologies such as lintelligent emergency brakingz.
*1Click here for more information on major external safety ratings (Based on 2022 assessments)>>> P160 *2Automatic emergency braking in North America
ESG data book 2023
075
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Aiming for Virtually Collision-Free Cars
Our Safety Shield concept helps support the safety of vehicle occupants in a variety of scenarios from a comprehensive perspective, from accident prevention and avoidance to occupant protection. For example, during normal driving or parking, sensors and cameras can monitor vehicles and pedestrians that may be difficult for drivers to see; this supports drivers and allows them to drive with peace of mind. We are committed as an automobile manufacturer to widespread availability of our safety technologies.
Safety Shield *1
Dissemination of Advanced Driver Assistance Technologies: ProPILOT/ ProPILOT Assist
ProPILOT/ProPILOT Assist was originally brought to market in 2016. In September 2019, ProPILOT2.0/ProPILOT Assist2.0 was equipped as standard in the all-new Nissan Skyline hybrid. The technology is highly acclaimed, winning Best Innovation Award in the 2019-2020 Japan Car of the Year awards and the RJC Technology of the Year at the RJC Car of the Year awards. We are progressively deploying ProPILOT/ProPILOT Assist globally in a wider range of vehicle types. In total, more than 2,273,000 vehicles equipped with ProPILOT/ProPILOT Assist have been sold as of the end of March 2023.
Risk has not yet appeared Intelligent Around View Monitor, etc.
Risk has appeared Blind Spot Warning (BSW), Lane Departure Warning (LDW), etc.
Crash may occur Intelligent Emergency Braking, Emergency Brake for Pedal Misapplication, etc.
Collision is unavoidable / Crash SRS Airbag System, Zone Body Construction, etc.
Post-crash Automated Airbag-Linked Hazard Lamps, etc.
Expansion of ProPILOT As of March 31, 2023
Driver-assistance technology leading to a dramatic enhancement in collision avoidance performance
Nissan believes that driver-assistance technology, by which some highly complex accidents can be avoided, will be instrumental in enabling its customers to use their vehicles with confidence in the upcoming era of autonomous driving. We have therefore announced ground truth perception technology, which is a driver-assistance technology that can lead to dramatic enhancements in the collision avoidance performance of vehicles. Aiming to complete the development of this technology by the mid-2020s, Nissan will first make ground truth perception technology available on selected new models, and on virtually every new model by fiscal 2030.
Others
CAN, MEX, GCC
*1Click here for more information on Nissan`s Safety Technology Development Concept.https://www.nissan-global.com/EN/INNOVATION/TECHNOLOGY/ARCHIVE/SAFETY_TDC/
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Installation of SOS Call (HELPNET)
SOS Call (HELPNET), an advanced automatic accident reporting system that enables data and voice communication to a dedicated operator in case of emergencies such as a traffic accident, sudden illness, risk of an accident, and tailgating and other forms of road rage, is now installed in the Nissan DAYZ, the first in the minicar segment in Japan. We will be successively expanding the number of models where the system is available, including the Nissan ROOX, Nissan Kicks, Note, Note Aura, X-Trail, Serena, Nissan Ariya, and Nissan Sakura in Japan. There are two types of notifications: automated notification when the airbag is triggered in a traffic accident, etc., and manual notification using the SOS call switch. After the call is made, a dedicated operator uses the information obtained from the vehicle to quickly contact the fire command center or the police, and supports the driver for example by arranging for ambulances.
Applying NASA technology to develop AI for autonomous vehicles
To realize fully autonomous city driving, we are developing the Seamless Autonomous Mobility system (SAM). SAM will be able help cars navigate unforeseen situations like accidents, road construction, and other obstacles. When autonomous decision-making is difficult, a remote operator can draw up an ideal route to help manage the situation and send it to the vehicle for execution.
Promote educational initiatives for traffic safety activities
Traffic accidents are statistically more likely to occur during the dusk hours from 4:00 to 6:00 p.m. As part of the Hello Safety Campaign*1, Nissan`s Omoiyari Light Promotion*2 urges drivers to turn on their headlights earlier in the evening. We have actively supported this campaign since 2010 and promote civic activities with two-way communication to raise public awareness of traffic safety. Furthermore, we launched a traffic safety project*3 in 2018 together with a research department in Niigata University. One of the outcomes from these efforts is the lWheel Spinning (Guru-Guru) Exercise,z *4 developed in March 2020, which promotes and encourages safe driving among senior drivers. Furthermore, in March 2021, in collaboration with Niigata University, Kitasato University, and Sagami Women's University, we established a virtual laboratory called the Traffic Safety Future Creation Lab. *5 We aim to realize a mobile society with virtually zero traffic fatalities through standing by anyone who has concerns or inconveniences in their daily life and mobility.
Omoiyari Light Promotion
Nationwide voluntary participation in the campaign to turn on headlights
On and around November 10, designated lDay of Good Lighting,z we supported people in 96 locations nationwide from Hokkaido to Kagoshima in taking the initiative to encourage drivers to turn on their headlights before dark. In addition, the TRY-LIGHT CHALLENGE debriefing session was held in December 2022 where participants from around Japan shared their ideas and tips to get drivers to turn on their headlights. The participants encouraged each other, and the session gave rise to new insights.
*1Click here for more information on the Hello Safety Campaign. (Japanese only)https://www.nissan-global.com/JP/SUSTAINABILITY/SOCIAL/SAFETY/HELLOSAFETY/ *2Click here for more information on the Omoiyari Light Promotion. (Japanese only)https://www.omoiyari-light.com *3ToLiTon (Town, Life, and Transportation) Safety Initiative This project was named to promote proposals to town, life, and transportation that are not bound by past conventions. *4Click here for more information on the lWheel Spinning (Guru-Guru) Exercisez. (Japanese only)https://www.nissan-global.com/JP/SUSTAINABILITY/SOCIAL/SAFETY/HELLOSAFETY/TAISOU/ *5Click here for more information on the Traffic Safety Future Creation Lab. (Japanese only)https://www.nissan-global.com/JP/SUSTAINABILITY/SOCIAL/SAFETY/HELLOSAFETY/LAB/
TRY-LIGHT CHALLENGE debriefing session
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Throughout the year, the Global Headquarters Gallery hosts daily presentations at dusk by lNissan PR specialistz staff members about the Omoiyari Light Promotion. These activities have helped our Omoiyari Light Promotion steadily gain broad acceptance among the public. Traffic safety future creation lab This laboratory is prioritizing reduction of the number of traffic accidents caused by elderly drivers, which has become a major social problem. Activities this year included performing an evaluation experiment with the participation of elderly drivers on the leffective field of view*1 measurement systemz developed last year, as well as a visibility evaluation experiment of colors of pedestrian clothing using character figures and an actual car. Research results will be published on an ad-hoc basis.
Visibility evaluation experiment of colors of pedestrian clothing using character figures and an actual car
lWheel Spinning (Guru-Guru) Exercisez connecting the real to the Metaverse.
Also, to help the lWheel Spinning (Guru-Guru) Exercise,z to become more widely known, we implemented 1) a nationwide online experiential session and 2) a simultaneous real and virtual experiential session by connecting lNISSAN CROSSINGz in Ginza with a virtual gallery in the Metaverse. From now on, we will continue to create and disseminate information on traffic safety solutions that will help elderly drivers to drive safely and with greater confidence for many years to come.
Proof-of-concept experiment for community development with using new mobility
Nissan is involved in the lNamie Smart Mobilityz proof-ofconcept experiment for on-demand vehicle dispatch services in the Hamadori Region of Fukushima Prefecture. To build a new mobility service that will serve as a transportation infrastructure to support regional activities, this year we will validate public transportation services with a view toward future commercialization through proof-of-concept
*1Effective field of view refers to the range at which drivers are able to discern objects that they need to identify.
experiments to be conducted throughout the year. From October 2022, lmini digital stopsz for actual retail stores were introduced to improve and expand convenience for users and support driving customers to such stores. Furthermore, in January 2023, the lNamie Smart Mobilityz fare was established moving the project into the final stage of proof-of-concept experiments toward commercialization. By making the service for-pay, we will verify the degree to which users and the community are willing to accept a service with fares. We also aim as build a model to commercialize sustainable mobility services, including future service expansion, even in areas with low population density. We are also pleased to note that in October 2022, this initiative received the lGOOD DESIGN AWARDz sponsored by the Japan Institute of Design Promotion.
Namie Smart Mobility
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Diversity, equity and inclusion
Diversity, equity and inclusion (DEI) policies and philosophy
Nissan is committed to be a truly diverse, equitable and inclusive company that empowers everyone to challenge themselves and drive innovations that make a difference. As we transform the way people live and drive, our ambition is to further deepen and advance Nissan`s diversity, equity and inclusion (DEI) initiatives, ensuring that everyone is valued and respected while actively contributing to a more inclusive world.
Our statement
Nissan`s commitment to DEI starts with our people and culture. We aim to give everyone a voice and the opportunity to realize their full potential. In an increasingly complex and changing world, we need to bring together diverse teams to address and cater our products to the different needs of customers and societies. The emphasis on DEI will help us to be truly inclusive with our innovations as we continue to deliver the future of mobility and enrich the world we live in.
Diversity We define diversity as the need to embrace differences. This means recognizing and respecting different values and backgrounds such as race, ethnicity, national origin, culture, religion, gender, sex, sexual orientation, gender expression and identity, disability, marital status, age, career or academic background and lifestyle, among others. Different and varied perspectives are necessary to promote innovation.
Equity We see equity as the need to provide fair opportunities for everyone based on each individuals` situation. Equity also empowers the inclusion of different values and backgrounds within Nissan helping create greater value through bold and diverse innovations.
Inclusion We define inclusion as the need to create a work environment where every individual can maximize their potential. At Nissan, we seek to foster an inclusive culture by actively bringing everyone across the business together. Furthermore, we want to ensure that everyone has a part to play in the decision-making process and their voices can be heard no matter their role in the company.
Diversity, equity and inclusion work together to ensure that Nissan maximizes its diverse talent to drive innovation.
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Our actions
With an aim to achieve our mission, Nissan establishes its core principles for every employee to value and respect one another. With an inclusive mindset, we uphold a diverse work culture that provides equitable opportunity with greater work life balance for all, and our employees are expected to empower and help each other to deepen understanding of different cultures, people and experience. Our suppliers, customers and the communities where we operate are to be respected in the same way. Alongside this, each region and country where Nissan is present follows our global policy that defines roles each individual should play, while also developing their own approach to focus on diverse local environments.
DEI Mission
Nissan diversity, equity and inclusion mission To foster a diverse and inclusive environment where we value and respect employees to drive innovation in automotive products and services that enrich people's lives
Diversity, equity and inclusion (DEI) management
DEI decision-making and action-driving bodies
Nissan has a framework to promote DEI worldwide through collaboration between the corporate organization and each region.
Global DEI Council Chaired by the CEO. Members are executives representing divisions and regions. Share, discuss and make decisions on DEI strategies and direction.
Regional DEI Council Organizations for promoting DEI in each region Chaired by the senior management of each region. Members are executives representing each division. Makes decisions on DEI strategies and direction in each region aligned with that of the corporate organization.
Organizations promoting DEI In Japan and each region where we have a business presence, the promotion of DEI is spearheaded by dedicated organizations or specific individuals. They manage the DEI Council, collaborate among departments, and lead the development and execution of DEI strategies in each region aligned with the global DEI strategy.
Global DEI Council
Sharing direction
Report
- Determine and implement a global strategy
- Monitor global progress and discuss global issues
- Lead corporate communication of DEI
Regional DEI Council Regional DEI Council
Americas
ASEAN
NML DEI Council Japan
- Determine and implement regional strategy aligned with global strategy - Monitor regional progress and discuss regional issues
Regional DEI Council Regional DEI Council
AMIEO
(Africa, Middle East, India, Europe, Oceania)
China
ESG data book 2023
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Diversity, equity and inclusion (DEI) achievements
Enabling diverse human resources
Gender diversity initiatives Nissan continues to implement gender diversity initiatives as a key component of enhancing diversity. As a result of those initiatives, the percentage of women among Nissan managers globally has increased from 6.7% in 2008 to 15.5% in March 2023. Nissan empowers women global-wide. *1 *2 *3
Development and retention measures (Japan) We support women`s careers in terms of recruitment, development and retention enhancement.
Career development meetings Discuss and provide career-support measures
tailored to individual situations
Individual counseling sessions on career with in-house career advisors
Mentoring program
Internal and external elective training
Tailored career support in Japan We hold career development meetings for female employees to ensure support during key life stages. The attendees include the employee`s manager, the human resources department, and a career advisor to discuss development plans and measures to enable ensure continued success.
Training for Monozukuri *4 divisions The career roundtable discussion and career development training have been held in the Monozukuri divisions since 2020.
Roundtables with executives For female leaders and mid-level female employees, we provide roundtables with senior management to allow deeper dialogue regarding leadership and executive management.
Networking and introducing role models We encourage networking between external female talent and female managers within Nissan. In addition, through an intranet dedicated to DEI, employees can watch interviews and gain perspectives from successful female employees who are building careers in their own way.
As a result of these various initiatives, women now comprise 10.4% of managers in Japan as of March 2023. This compares favorably to the average of 5.1% for Japanese manufacturers with 1,000 or more employees (according to the 2022 Basic Survey on Wage Structure from Japan`s Ministry of Health, Labor and Welfare). As of March 2023, a total of 8.6% of positions from the level of general manager and up are filled by women 4.3 times larger than the 2008 level of 2.0%. Nissan aims to bring the ratio of women in management closer to the overall percentage of female indirect employees in Japan. To accomplish this, we aim to raise the female ratio of indirect employees to 30% by actively accelerating the hiring and development of women in an effort to enrich the pipeline. (As of March 2023, the ratio of female managers was 10.4% and the female ratio of indirect employees was 19.8%.*5)
Female manager ratio in Japan (as of March 2023)
Female indirect employees ratio:19.8%
Female manager ratio:10.4%
Female general managers and above:8.6%
*1Refer to our Corporate Governance Report (Principle 2-4-1). Click here for more information on ensuring diversity in core human resources.https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/g_report.pdf *2Click here for Nissan`s action plan based on the Act on Promotion of Women`s Participation and Advancement in the Workplace. (Japanese only) https://positive-ryouritsu.mhlw.go.jp/positivedb/detail?id=727 *3Nissan is supporting Keidanren`s goal of having females make up 30% of executives by 2030.Click here for more information on Challenge Initiatives for 30% of Executives to be Women by 2030.https://challenge203030.com/EN.php *4Includes Manufacturing, R&D, Purchasing, Design, Total Customer Satisfaction. *5The female manager ratio, previously listed as of April, has been changed to as of March for consistency with the collation of corporate governance data.
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
At the NML DEI Council a body that deliberates on topics unique to Japan officers representing each division discussed the state of affairs and issues in each division based on the fiscal 2022 topic gender gap. Going forward, measures will be ramped up with the development and execution of activities for each division and the company as a whole. The ratio of the average pay of female to that of male is 81.9%. (The ratio is among all employees as of March 2023) Although there is a gap in average pay per person due to differences in composition between male and female, such as the ratio of managers, there is no difference in treatment between male and female in the pay. Continuing the initiatives previously described will narrow both the gap in the gender ratio at each job level and the average pay difference of male and female.
Enhancement of recruiting activities
Career development
Managers
retention
Group leaders retention
Staff level
retention
Initiatives at car development/production sites and dealers (Japan)
Car development stage We listened carefully to the voices of our female customers throughout the design and development process of the Nissan X-Trail. It went on to be named the Best Large SUV in the Women`s World Car of the Year 2023. It is the only international award made up exclusively of female automotive journalists. *1
Production sites We are helping to create production lines that allow anybody to work regardless of age or gender. We are also developing processes in which not only women but people with special physical needs can play an active role. In 2016, the Nissan group`s first female forewoman and supervisor was appointed at the Oppama Plant (Yokosuka, Kanagawa prefecture). In such an environment, other employees also feel they can further their careers. Also, with the aim of promoting the acceptance of diversity and creating comfortable workplace environments for all employees, informative videos are provided to technicians and seminars are conducted for foremen and general foremen. The videos and seminars explain what inclusion actually means and how it can be implemented in the workplace.
Dealers Many female car-life advisors (CAs) are active in our dealers nationwide in Japan. As of the end of February 2023, 1,183 female CAs were employed across Japan. The ratio of female CAs increased from 10.5% in February 2022 to 11.4%. In addition, female technical advisors (TAs) have been appointed to serve as bridges between customers and dealer technicians.
Woman Act (Japan)*2 As an activity in collaboration with the local community, Nissan has been participating in Woman Act for female active participation enhancement in Kanagawa since 2015. CEO Makoto Uchida has published a declaration of this project.
wacot.man
Development of female leaders Following the appointments of Michelle Baron in November
woman 2022 and Allyson Witherspoon in April 2023, there are now act. six female executives (directors and executive officers) in
Nissan`s management team (as of June 2023. Twofemale executives are outside directors). The Woman Leadership Program has been implemented to develop female leaders.
*1Click here for more information on the award.https://global.nissannews.com/en/releases/release-0cbaaa35cd823cb7d80b7f6fb01f3d71-nissan-x-trail-awarded-best-large-suv-by-ww-car-of-the-year-2023 *2Click here for the declaration. (Japanese only):https://www.pref.kanagawa.jp/osirase/0050/womanact/cheer-menb.html
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Initiatives on mid-career hires and senior employees Nissan has been hiring, developing and promoting talented individuals with various career backgrounds on a regular basis. We provide necessary training to employees with prior experience at other companies to enhance their performance at Nissan. Nissan`s mid-career recruitment ratio for management is higher than the average Japanese company and is even higher for indirect employees. (The mid-career recruitment ratio in management is 34.8% and for indirect employees 31.1% in Japan as of March 2023.) We also provide opportunities to senior employees. *1
Initiatives for hiring people with disabilities At Nissan, we create workplace environments and systems to provide opportunities in which people with disabilities can work to their full potential.
Cross-cultural cooperation Nissan`s global workforce is composed of more than 100 nationalities. The senior management and team leadership levels also include diverse nationalities. The percentage of non-Japanese in management positions working for Nissan in Japan (5.8% as of March 2023) is among the highest of all Japanese corporations. Also, 46.2% of Nissan`s executives are non-Japanese nationals. We provide opportunities to enhance skills and experience in working collaboratively across diverse cultures by acquiring knowledge through cross-cultural e-learning and other programs, personnel exchanges among offices outside Japan and project collaborations.
Support for work-life balance (Japan) · We provide trainings and seminars to support employees
balancing work and childcare as well as employees responsible for elder care. · We also provide trainings and seminars for managers to learn how to support subordinates who are engaged in balancing work and childcare. · We have also invested in infrastructure development, including programs and facilities. We are introducing effective measures by approaching worklife balance from these three directions. Since 2022, with the aim of fostering a culture in which it is easier for male employees to take paternity leave, the following actions have been implemented: distributing messages of support to employees from executives and managers, hosting seminars for employees and managers, organizing companywide awareness activities encouraging employees to take leave and conducting interviews with employees who have previously taken paternity leave. In addition, activities are also conducted from a bottomup approach, such as Escargot, an employee-led resource group set up by working parents as a forum to exchange information.
Creating an environment conductive to worklife balance
Comprehensive support for employees: For themselves, managers, mindset and infrastructure
Supporting employees: Career development and worklife balance support
Seminar for expectant parents before maternity and childcare leave Reinstatement seminar
Provide employees with opportunities to think about their career paths and workstyles before and after maternity and childcare leave Nursing-care seminar
Supporting managers who have employees engaged in worklife balance
Guidance on offering promotion exams before parental leave Seminar for managers with employees returning from childcare leave Training on balancing work and childcare for employees engaged in childcare Management training on paternity leave for managers Diversity management training for managers Support for paternity leave
Developing programs, facilities and other infrastructure conducive to the work-life balance of employees and fostering a culture that is supportive of employees taking childcare leave
Remote work program (all employees are eligible except those in manufacturing processes)
Super flextime without core time (core time exists at some sites) Short-hour work programfor employees engaged in childcare or nursing care Family-support leavespecial paid holidays for marriage, childbirth by spouse,
childcare, nursing care and fertility treatment available by the hour) Childcare leave (with splitting option), nursing care leave and maternity protection
leave Accompanying leave (three years maximum) Re-employment policy In-house childcare center (at five sites)
1. Supports employees by helping them balance work and childcare and perform at their best
2. Supports employees' return to work when they wish rather than when care waiting lists in Japan allow it
Lending of personal computers to employees on leave (for intranet and email access) MM care room (lactation room) External nursing-care hotline
*1Click here for more information on lSupport for the engagement of senior human resourcesz.>>> P103
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Creating programs, facilities and other infrastructure for employees balancing work with childcare or nursing care
Establishment of in-house childcare centers The number of centers has been increasing since Nissan opened its first childcare center at the Nissan Technical Center in 2005. In 2017, the first childcare center in a plant was opened at the Oppama Plant. In April 2022, Nissan opened its fifth in-house childcare
Support systems for childbirth and childcare (Japan)
Leave
Pregnancy Childbirth 1year old
2
3
6
6 weeks before due date 8 weeks after birth
Maternity leave
End of first April 2 years old after child turns 2
Maternity protection leave
Childcare leave (with splitting option)
9
12
center at the Yokohama Plant. We currently have in-house childcare centers at the Nissan
Days off
Childcare support holiday (FamilySupport Leave): From pregnancy to childs' 6th grade of elementary school; 12 days / year (5 paid, 7 unpaid)
Technical Center, the Nissan Global Information System Center, the Global Headquarters, the Oppama Plant and
Short-hour Work Program
Short-hour Work Program for childcare: For employees with children through the 6th grade of elementary school; 3 hours / day
the Yokohama Plant. Their operating hours are line with the working times of each site to support the continued
Childcare centers on company sites
employment of employees.
Other
Allowance for babysitting
Remote work program*
* Available to all employees (excluding those in manufacturing processes) regardless of their reasons for childcare or nursing care.
Legally mandated
decided by Nissan
for parents of both sexes
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
LGBTQ+ related initiatives Nissan is making both internal and external effort to support LGBTQ+ people, creating a corporate culture that embraces difference in gender identities and sexual orientations, introducing systems and facilities considerate of them and releasing supportive message to the public.
LGBTQ+ related programs and facilities
LGBTQ+ related Programs and Facilities
Recognition of same-sex marriages
and common-law marriages
Accommodation
Marriage leave program
for non-traditional
Congratulatory payment gender health check
Locate of multipurpose
restrooms
External consultation
hotline
Examples of activities to promote understanding of LGBTQ+
Nissan is engaged in comprehensive LGBTQ+related understanding and promotion activities. In recognition of these initiatives, the private organization work with Pride gave Nissan the top gold rating in the PRIDE Index, which recognizes corporate initiatives to support LGBTQ+ employees. Nissan received six consecutive gold ratings from 2017 to 2022.
LGBTQ+ seminars Held annually since 2014, guest speakers from outside the company are invited to provide a forum for employees to actively learn and think.
LGBTQ+ e-learning Mandatory training for all employees.
Event participation Nissan has participated in the Tokyo Rainbow Pride the largest LGBTQ+ event in Japan since 2017.
LGBTQ+ employee networking In fiscal 2016, members of the LGBTQ+ community and allies (those supportive of LGBTQ+) within the company launched a self-initiated employee network as part of bottom-up activities.
Embed DEI in corporate culture
We believe that embracing the diversity of our employees leads to the creation of greater value that meets the diverse needs of customers. We will seek to embed DEI as the foundation of our organization and respect different values to ensure every individual can maximize their potential.
Internal and external communication activities Communicating the thoughts and activities of senior management can prompt behavioral change by facilitating a common understanding of the significance of promoting DEI. We also are making efforts to enhance our corporate brand image and recruiting.
Internal communications: Interviews with executives
We promote understanding of DEI by sharing experiences and thoughts of senior managements as well their expectations for employees.
DEI forum In fiscal 2022, forums were held in which employees could take the stage as panelists to talk about their experiences and opinions on the topics of paternity leave and female careers in the Monozukuri functions. The forum was attended online by approximately 300 Nissan employees and provided an excellent opportunity for everyone to revisit the topics of work-life balance and career.
Global diversity awareness month We have opportunities to reconsider and discuss the importance of DEI through executive officer messages, employee interviews and panel discussions.
Intranet website and email newsletter Notices on various events and training programs, reports and content related to DEI are posted on the website. We also issue email newsletters on a regular basis to embed DEI within the company.
External communications: DEI page on the corporate website
Nissan`s vision and initiatives, as well as messages from Nissan`s senior management, are available on the corporate website and state DEI as a key pillar of our business strategy. lIku-Boss declarationz*1 In February 2022, CEO Makoto Uchida announced Nissan`s Iku-Boss Declaration. Iku-Boss is an initiative led by the Ministry of Health, Labor and Welfare in Japan to create workplaces where diverse employees can perform to their full potential.
*1The term lIku-Bossz refers to executives and managers who consider the work-life balance of their subordinates and support their careers and lives while achieving results in organizational performance and enjoying their own work and personal lives. By making an Iku-Boss declaration, the top management and executives of an organization state their aim to become an Iku-Boss.
ESG data book 2023
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Diversity management in leadership We are developing leaders who can manage diverse employees and maximize performance as a diverse team.
Fostering mindsets We continue to hold DEI-themed events in each region and run training sessions for employees worldwide.
Diversity Management in Leadership
Category
Executive workshop
Diversity management training
Detail
In November 2021, an external lecturer was invited to speak on Team Strategies for Diverse Organizations. Positive discussions ensued, and all executives in attendance made declarations of action. Following the workshop, senior management sent communications to employees in each division.
This training is incorporated into the training module for newly appointed managers, to deepen their understanding of diversity in management styles and issues at the workplace and to learn skills to deal with them.
Seminars for managers
This program teaches how to be creative in dayto-day management from the point of view of balancing work with childcare and paternity leave.
Unconscious bias e-Learning
This training is provided to all indirect employees, so they can learn the influence of the unconscious biases that everyone has as well as techniques to mitigate their effects. Following its introduction in Japan in fiscal 2018, this training has been gradually rolled out to global sites.
Gender diversity e-learning (Japan)
The content was updated in fiscal 2019 and is being implemented to realize each individual maximizing their abilities as part of a diverse team.
LGBTQ+ e-Learning (Japan)
Aiming to make everyone feel comfortable at work, we are implementing this as mandatory training for all employees to learn about LGBTQ+
Paternity leave and revised childcare leave law e-learning (Japan)
This training is being implemented to provide an understanding of the childcare leave system based on the June 2021 revisions to Japan`s Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Members. The aim is to enable managers, supervisors, and users of the system and their colleagues to take appropriate action, adopt the right mindset, and effectively utilize and promote the system.
Fostering mindsets
*1Click here for more information on our lCommunity Engagementz.>>> P117
Nissan is also committed to enhancing diversity and inclusion as one of the focus areas in its social contribution activities. We are promoting diversity and inclusion as an important value with the aim of realizing a cleaner, safer and more inclusive society where everyone is given equal opportunities. *1
Promotion of inclusive workstyles
We are committed to create a working environment in which diverse employees can maximize their performance.
Remote work program with no upper limit of hours*
*For all employees except those in manufacturing processes
Super-flextime without core time*
*There is core time at some sites
Standard meeting times that take into account time differences between global locations (between local hours of 7 a.m. and 8 p.m.)
Nissan`s remote work program has evolved since the introduction of the telecommuting system for employees balancing childcare and nursing care in 2006. Since then, reflecting the opinions of employees and management, we are expanding locations to work, setting minimum increment for working and widening the scope of eligible employees. In 2021, the upper limit of hours was eliminated, moving beyond a provisional measure in response to the COVID-19 pandemic.
Workstyle reform Happy 8
Happy 8 program In 2015, we introduced the lHappy 8z program a time-conscious workstyle reform emphasizing the ideal of an eight hour workday. It aims to increase individual and organizational productivity while also improving work life, private life and health by increasing awareness among all employees of working for eight hours a day.
Happy Friday In February 2017, we introduced our Happy Friday program, which encourages employees to leave the office at 3 p.m. on the last Friday of each month. Through this we`re promoting an enhanced work-life balance.
Happy 8 survey We conduct an employee survey on workstyles every year to review and revise the programs that meet employees` needs and actual conditions conveyed from the survey.
Items from previous Happy 8 surveys incorporated into the program
May 2019
October 2020 January 2021 June 2021
Remote work locations expanded to include places considered the same as one`s home (house of spouse or family member within the 2nd degree of kinship)
Remote work locations expanded to include public places
Option of taking Family Support Leave in onehour units
Removal of the upper limit of remote work time
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Achievements at sites outside Japan
Initiatives in Americas
Nissan Group of the Americas is committed to creating a culture where everyone belongs and employees, customers and partners feel respected, valued and heard. Our mission is fueled by the many people who make, sell and use our products. We are striving to create a culture that helps unlock every employee`s full potential by focusing on initiatives that equip our workforce to appreciate differences, investments to support the communities where we do business, and partnering with organizations that align with our DEI values.*1
Initiatives in AMIEO (Africa, Middle East, India, Europe, Oceania)
The AMIEO (Africa, Middle East, India, Europe, Oceania) region, established in April 2021, is a geographically wide and diverse region. We operate in 140 countries, which offers a tremendous opportunity to leverage the inherent diversity within the region. AMIEO is represented by an 11% female population across the business (both direct and indirect employees), with four females in key leadership roles.
Our mission to build a strong DEI culture both internally and externally is supported by four strategic pillars: establish accountability, foster an inclusive culture and workplace, communicate and celebrate, and governance. In early fiscal 2022, the AMIEO DEI Council was established under the leadership of Friederike Kienitz, regional senior vice president corporate affairs and sustainability. DEI committees were also created in each AMIEO entity to ensure that every employee feels secure, embraced and supported in bringing their true authentic selves to work.
Americas DEI Annual Report
Initiatives / Strategic Pillar Diverse pipeline
Local DEI committees Leadership forums
Talent development
Learning
Coaching
Internal awareness
STEM*2
Local practices
Details
Pipeline enhancement via graduate and mid-career hires. Regular monitoring of gender and the cultural diversity of succession plans and promotions.
Established DEI committees by each business entity headed by MDs to implement and promote the region`s DEI strategy at the local workforce level, as well as establish locally relevant initiatives that are tailored to specific needs and interests. Each entity will also have a DEI custodian who will act as the bridge between the local and regional DEI councils.
Skip-level meetings and employee roundtables on sustainability and DEI topics were held with top executives throughout the year.
Diverse participant representation on regional talent development program`s through to director level. Launch of reverse mentoring program pilot with nine executives partnered with millennial employees to allow executives to gain a wider organizational
and generational perspective and create safe spaces for candid feedback. Mentoring program continues to flourish with talents to support with career development which 31% of mentees are female.
DEI virtual instructor-led training launched in FY22. Twelve female employees attended the Women`s Automotive Winter Meet up, a virtual global event with speakers from across the automotive industry.
Development and launch of five coaching packages including; parental leave transition significant life changing events transition executive coaching for underrepresented groups, female executive presence 1:1 coaching and development of personal brand.
Establishment of a celebration calendar to bring awareness and educate our teams. In March 2023 we celebrated International Women`s Day. Three virtual workshops facilitated by an external expert on DEI with around 2,000 employees attending across the region. Launch of Nissan`s Got Talent` in fiscal 2022 where everyone is invited to show their personalities and individual expression to demonstrate and
celebrate their achievements. A number of local entity level initiatives established for different strands of DEI including male and women`s health, fertility and retirement.
Engaged more than 77,398 students in career development and engineering or STEM events*1. Female students accounted for approximately 49% of participants.
Nissan Central Europe (NCE) ensure new building and structures are accessible to all. Nissan Motor Manufacturing (NMUK) provide lactation rooms for new mothers returning to work. Nissan Motor Great Britain (NMGB) rewrites policies to become gender neutral and more inclusive where appropriate.
*1Click here for more information on the initiatives in Americas.Link to Americas DEI Annual Reporthttps://www.nissanusa.com/content/dam/Nissan/us/responsibility/diversity/pdf/2022-Nissan-Group-of-the-Americas-DEI-Report.pdf *2Click here for more information on the Nissan Skills Foundation.https://www.nissan-global.com/EN/SUSTAINABILITY/SOCIAL/CITIZENSHIP/DIVERSITY/
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Initiatives in China (NCIC and Nissan China JVs)
In China, we are committed to creating a truly diverse, inclusive and equitable environment in which individuals can demonstrate their potential to the fullest.
DEI penetration Various communication channels were established in China for DEI concept penetration. Regional DEI Council: DEI concept and strategy were cascaded and implemented in regional senior management through the China regional DEI council. Regional initiatives are monitored and regional issues are discussed as needed. Company DEI council: NCIC established a DEI council to cascade global and regional strategy and to gain each division heads` support on company initiatives. Regular DEI engagement toolkits were issued in the company. DEI e-Community set up in NCIC, which was a platform for employees to exchange viewpoints and to share good practices. A group of leaders in NCIC were interviewed and videoed to interpret what DEI is and how DEI enables the creation of a company where all employees can demonstrate their potential to the fullest.
Meanwhile, multiple learning resources were provided to ensure a better understanding of DEI. Unconscious bias e-learning was rolled out in NCIC and
three joint venture companies with a 100% completion rate. Cross-culture training was conducted to inbound and outbound expatriates to facilitate a smooth landing.
Leadership development in DEI Facilitate leaders to motivate and engage team members through workshops and trainings. DEI leadership training was held in Nov. 2022 for China region senior managers and higher level local leaders to deepen their understanding of DEI and assist mindset shifting. The concept was demonstrated in daily behavior and interactions to inspire team members and drive team performance. Intergeneration leadership workshops for NCIC and DNFL managers were held to enable leaders to foster more inclusive and empathetic perspective in young generations to enhance their motivation and engagement. Performance-feedback training for all people managers in NCIC to provide tools on how to effectively communicate with and provide feedback to team members with various workstyles, background, etc. Introduced the DEI concept in the Regional Leadership Program, which aims to empower talented employees in the China region.
Gender diversity Special cubicle setup for new mothers, maternity / paternity leave implemented to support female employees. Also, mental health workshops were held on International Women`s day.
Inclusive workstyle promotion A flexible working scheme has been implemented and optimized that allows employees more flexibility based upon their personal needs and supports coping with the pandemic situation. Employee Assistance Program (EAP) is a company resource that provides employee with support for mental health issues.
Young generation development We engage the young generation with exposure through our culture ambassadors` program, Cross Functional Team (CFT) projects and lunch meetings with the management team. Supporting their career development with an internal transfer policy and rotation programs.
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Initiatives in ASEAN
In ASEAN we are committed to creating and respecting the value of people through diversity, equity and inclusion. The key activities are as follows:
Women`s Month and International Women`s Day celebration
During Women`s Month we embraced equity by raising awareness about what diversity, equity and inclusion mean for Nissan. This was done through leadership communication, motion graphics and promoting Nissan`s new DEI policy. Employees were also invited to join a webinar on improving emotional quotient to enhance gender equality in the workplace.
Flexible workstyle During and after the pandemic, we promote flexible and remote workstyles where applicable. To encourage flexibility and prioritize employees` well-being, we launched a hybrid work arrangement guideline called F.A.S.T. (flexible and safe teams).
Equal opportunities: We provide equal opportunities to employees regardless of their background to drive their own careers. To encourage employees build their skills, we launched a learning for all program called Learners` Circle where employees are encouraged to take e-learning courses to be eligible to attend virtual webinars, facilitated by external speakers. Employees are also empowered to driver their careers by
taking charge of their career development and individual development plans. Managers are trained in a leaders forum on how to support their employees through career discussions.
Inclusion and safe mindset training: We launched a training for key leaders on inclusion, allyship and team psychological safety as part of our efforts to transform corporate culture and build a better workplace.
In addition, unconscious bias e-learning was launched to indirect employees to develop knowledge and skills to work effectively across borders of culture, gender, generations and workstyles.
External recognition for DEI at Nissan
Both Nissan`s DEI initiatives and focused emphasis on employee diversity have resulted in considerable external recognition.
Japan Kurumin certification In 2015, we became the first company in Kanagawa Prefecture to earn Platinum Kurumin certification, which is granted to Kuruminaccredited companies (certified as supporting childcare) that provide an even higher standard of childcare support. Nissan was the first transportation equipment company to be certified.
Eruboshi The Ministry of Health, Labor and Welfare recognizes companies that successfully promote female participation in the workplace. We received the highest third-level Eruboshi accreditation in 2017.
PRIDE Index This is an award that recognizes efforts to support LGBTQ+ employees. After becoming the first Japanese automotive company to receive the top gold rating in the PRIDE Index in 2017, we have received the gold rating for six consecutive years.
LinkedIn Talent Awards 2022 Diversity Champion finalist NML was recognized as a finalist in the Diversity Champion category as one of the companies that actively released corporate/employee messages about DEI and inspired others. This is an award to recognize and celebrate companies that are paving the way for the future of work.
ESG data book 2023
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Outside Japan*1
Region
Awarded company Nissan Americas
Americas
Nissan North America, Inc. Nissan Canada Inc.
Nissan Mexicana, S.A. De C. V., NR Finance Mexico
all Nissan South America countries, Argentina, Chile, Brazil and Peru
Nissan South America
Nissan
AMIEO
Nissan Motor (GB) Ltd.
Africa/Middle East/India/
Europe /Oceania
Renault Nissan Technology Business Centre
(RNTBCI)
China
Nissan (China) Investment Co., Ltd. (NCIC)
Awarded year (in calendar year)
Title of the Award
Sponsor
2022
DEI Impact Award: Systemic Change Organization
Center for Automotive Diversity, Inclusion & AdvancementCADIA
2022
Regional Corporate OEM Of The Year
Southern Region Minority Supplier Development CouncilSRMSDC
2022
America`s Top Corporations for Women`s Business Enterprises: Resiliency Edition
Women`s Business Enterprise National CouncilWBENC
2022
Top Supplier Diversity
Black EOE Journal Hispanic Network Magazine Professional WOMAN`s Magazine
2022
GJCP Excellence in Diversity Award
Greater Jackson Chamber Partnership
2022
Corporate Partner of the Year
Tennessee Latin Chamber of CommerceTLACC
2022
Great Place to Work Canadafourth consecutive year
Great Place to Work Canada
2023
Best Places to Work LGBTQ+ Mexico (Third consecutive year for NR Finance Mexico, second consecutive year for Nissan Mexicana, S.A. De C. V. )
Human Rights Campaign Equidad MX
2022
Top Company for Women
Top Companies Expansion
2022
Great Place to Work Latin America
Great Place to Work
2022 2022 2022 2022 2022 2022 2022
2022
2022
2022
Diversity and Intersectionality LATAM Women`s Network Corporate Sponsor of the Year Pride 365 Certifiedsecond time Valuable 500 Top 100 Best Companies for Women in India 100 Best Hall of Famefifth time 2022 Best employer
2022 The Most Attractive EmployerTop 100
1.Best CSR Strategy 2.Best CSR Brand3rd time 3.Public Recognition Award Best Class Digital Learning Application
Women in Management 100 Black Men of Greater Dallas Fort Worth chapter InterPrideUK Valuable 500 AVTAR Group & Seramount Best of Best Conference 2022 by Avtar and Seramont Human Resources Association for Chinese & Foreign Enterprises Shixiseng.com Local job board for intern & campus recruiting Shixiseng.com
CSR China Education Award,
BOOAOO Award
*1Click here for more information on other external recognition of our diversity, equity and inclusion initiatives to date.>>> P161
ESG data book 2023
090
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Product safety and quality
Product safety and quality policies and philosophy
Product evaluations and automaker brand value are dependent on customer perception of quality. Rapid technical innovations are seeing customers demand ever-higher levels of quality. As mobility needs rise worldwide, driven by increased urbanization and structural changes in the global economy, Nissan is fulfilling its mission of offering people everywhere the rich benefits of mobility. At the same time, we believe that automakers have an important responsibility to always offer customers the kind of quality they expect. Nissan aims to earn its customers` trust by addressing quality as a companywide issue. This means providing top-level quality to customers at every stage, from the planning of new vehicles through development, manufacturing, logistics, and sales to aftersales service.
Quality policies and philosophy
Quality has many aspects, and we seek to provide high quality at all stages of the customer experience: how it feels to use the product itself, the way customers are treated by sales staff in showrooms, the response if problems arise with the product. To achieve this, we pursue effective companywide cooperation at the cross-functional and crossregional levels. Based on a customer-centric ethos, Nissan places the
*1Excluding non-consolidated OEM plants
highest priority on customer feedback and aims to enhance the quality of products and services that provide customers with a deep sense of satisfaction to ensure they choose Nissan vehicle over the long term through efforts focused on product, sales and service quality. Vehicle product quality is essential for safe and comfortable long-term use. We aim to provide a high level of quality that meets customer expectations over the entire life cycle of the product. This includes the perceived quality when a customer opens the vehicle`s door in the showroom, sits in the seat, and takes a test drive; the initial quality when the vehicle is delivered to the customer; and the durability that allows the vehicle to provide many years of use. We also conduct initiatives to increase customer satisfaction (CS) regarding sales and service quality. Our aim is to exceed expectations at every customer contact point, including dealership visit, purchase, maintenance, inspection, and repurchase. We listen to customers and incorporate their feedback in every process throughout the company in our pursuit of CS.
Product safety and quality management
Ensuring the safety of customers and providing the quality they expect are both important issues. To achieve sustainable growth as a trustworthy company, Nissan has created organization to promote quality improvement globally, and all Nissan employees are engaging in activities as one. Clearly defined by an ISO9001-compliant quality management system, the persons in charge are assigned and the processes applied to a wide range of quality improvement activities on a global basis. A manual addressing all quality items is prepared and updated as necessary to ensure thorough quality management. Annual training on the guidelines for establishing and implementing a quality management system is also conducted. This training is mandatory for all employees. 24 out of 24 vehicle production bases*1, including consolidated and non-consolidated sites, have acquired ISO9001 certification.
Management systems for product safety and quality
To achieve top-level quality, we have assigned a number of Senior Vice Presidents, headed by the Chief Quality Officer (CQO), to focus exclusively on quality issues. A CQO meeting, chaired by the CQO, is held every month and attended by executives representing each division and region.
ESG data book 2023
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
These meetings work to promote the swift solution and improvement of issues related not just to product quality but also to sales and service quality experiences before and after purchase. Additionally, in order to fully implement compliance, we have established a three-layer monitoring and audit system and are working to strengthen our audit activities. The first layer consists of each division implementing monitoring activities to ensure strict observance of laws and standards. In the second layer, the Conformity Audit Office conducts audits of those efforts to observe laws and standards. And in the third layer, the Internal Audit Office conducts risk-based audits in accordance with annual plans.
Product safety and quality achievements
Reflecting customer feedback in activities to enhance quality
To provide the value that customers expect and respond rapidly if they are not satisfied, we listen to all feedback and put what we learn to use in measures to improve quality at every stage, from design and development to aftersales service.
Responding rapidly to customer feedback and timely sharing of information
We receive and respond to customer comments and questions worldwide through a range of contact points, including dealers, call centers, and surveys. Our customer call center in Japan, for example, receives around 200,000 comments and questions from customers annually. To respond rapidly to customer feedback, we are utilizing digitized catalogs and technical materials from the past 50 years and a frequently asked question (FAQ) search system. A portion of this FAQ is made available to customers so they can solve problems themselves, saving them the trouble of making inquiries. Opinions and comments received by our customer call center in Japan are anonymized and shared companywide on the intranet, where employees can access and view them at any time. Information is also promptly sent by email to executives and senior managers. Employees who buy Nissan vehicles are also customers and important stakeholders. Having installed the lQuality Listening Boxz on our intranet, we are utilizing employee feedback in promoting activities designed to raise the quality of products and services.
Incorporating customer feedback into products and services
We have implemented a system for reflecting customer feedback in our products and services. Reliable information sharing ensures that this feedback is incorporated in the work of all functions, including product planning, R&D, manufacturing, and sales. Product quality is about more than just a lack of mechanical faultsit includes any factors that could lead customers to feel dissatisfied. We see these factors as issues requiring action and strive to improve quality across all areas. The value that customers expect from products varies according to their region, age, and personal tastes and can also be affected by market factors, such as product diffusion levels or even climate. Although we have basic specifications for global design, we fine-tune these to meet regional needs. The Chief Quality Engineer (CQE) performs this role, participating in the vehicle manufacturing process from the product planning stage in order to reduce customer dissatisfaction and defects. We glean customer perspectives from market information and employee monitors and prioritize our response to these from the planning and development stages for both products and services.
Adopting a customer perspective
We believe all employees must have a customer-centric perspective and are implementing a variety of activities, including companywide training to foster this mindset and efforts to provide opportunities to experience customer feedback on a daily basis. Since 2003, we have also held Nissan Quality Forums for executives, employees, and suppliers. These annual forums use information displays, video presentations and actual vehicles, and parts to showcase our latest quality results, customer feedback, and activities aimed at meeting targets.
ESG data book 2023
092
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
The forums are organized cross-functionally by all divisions from R&D to service. In recent years, experiential events that lead to actions being taken have been organized to raise all employees` focus on customers and the importance of quality and to help them think and act from the customer's perspective. They are held globally in Japan, North America, Europe, China, Southeast Asia, and other regions.
Improving product quality
Product quality is a basic feature in allowing customers to use a product safely and comfortably over the long term. For Nissan, which has played a key role in monozukuri , Japan`s tradition of careful craftsmanship, product quality is the foundation for our sustainability as a company. We consider quality from the customer`s perspective at all times and respond quickly if a defect occurs, striving to prevent recurrence. In addition, we are improving product quality to satisfy as many customers as possible by reliably identifying customer dissatisfaction and implementing countermeasure activities in all processes to eliminate any issues.
Approaches in development and at manufacturing plants
Improving perceived quality and developing vehicles with valued designs Perceived quality is the quality felt when seeing, touching, and operating a vehicle. The perception of quality is a particularly subjective matter, and applying objective criteria requires thorough studies. We conduct consumer research around the world targeting customers who have purchased or are considering purchasing a Nissan car in order to understand their perceptions better and incorporate those perceptions in new vehicles. Our perceived quality specialists communicate the voice of customers around the world and support us
to develop attractive stylish vehicles that are valued by our customers.
Producing products of consistent quality worldwide At Nissan, we will continue to produce products of a quality that exceeds our customers` expectations. At the Tochigi Plant, we launched the Nissan Intelligent Factory to meet environmental considerations, such as carbon neutrality and the effective use of resources, and to meet the needs for electrified, intelligent cars, and are realizing monozukuri that places less of a burden on our employees. The Intelligent Factory will be deployed horizontally to global plants in the years to come. Including these activities, Nissan will deploy quality initiatives in four areas, make comprehensive efforts from the development stage of new vehicle offerings to the pipeline that delivers vehicles to customers, and stably supply highquality products.
Four areas in Nissan production/Supply Chain Management (SCM)
New model quality
initiatives
At the digital stage of a new model, we will simulate a virtual factory, utilize simulation and virtual reality, and collaborate with design departments to create vehicle designs in digital form. The Global Production Engineering Center is also making efforts to realize high-quality vehicle production from the outset at all plants worldwide through the verification of the structural construction method of prototype vehicles.
Power Train quality
initiatives
To complete quality manufacturing in each process, we set Quality Gates for each process, establish non-defective product conditions, and carry out activities designed to deliver non-defective products to the next process. We will also reflect the opinions of our customers in product and process designs, work to further improve the quality of new products, and contribute to the realization of stable quality.
Production vehicle quality initiatives
Having developed highly reliable forming and joining techniques and tools that can reliably comply with quality requirements, we are improving the Built in Quality of each process. In addition, to leverage the Global Training Center and to devise ways to stabilize the quality brought about by manual labor, we are promoting the global development of advanced skills through the Master Trainer training program, and aiming to realize stable quality at all global plants.
Logistics quality
initiatives
In the transport process that delivers completed vehicles to customers, we utilize the same global evaluation index to rate the quality of the accessory installation work and logistics transport operations. Through benchmarks at each site, we are promoting further improvements, maintaining factory shipping quality, and promoting the provision of high-quality vehicles to our customers.
ESG data book 2023
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Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Implementing quality tests envisioning a myriad of situations Each of our production cars and development models is evaluated using a system called AVES*1 to monitor quality on a daily basis. Feedback from customers is incorporated in standardized evaluation criteria, which are used to train quality assessment specialists. Only these company-certified experts, known as lAVES Masters,z can perform our strict daily assessments. The assessment process evaluates the vehicle`s interior and exterior and tests it while it is in operation, focusing on whether it meets quality standards defined in terms of customer requirements. During the running tests, carried out on actual roads, assessors check the vehicle in areas including unexpected noise, vibration, stability of handling, and the functionality of its various advanced systems. Final responsibility for overall quality is the responsibility of the CQE, who envisages different use scenarios for Nissan vehicles and carries out stringent quality checks accordingly.
Activities to improve market quality
Swiftly improving quality in local markets We are strengthening direct communication with sales companies and customers to promptly identify and respond to customer dissatisfaction and defects. Our Total Customer Satisfaction Function Division (TCSX) addresses customer dissatisfaction and quality issues based on information from sales companies and the customer call center. It shares information with the R&D and manufacturing divisions to investigate the causes and come up with countermeasures. These countermeasures are incorporated in production models on the market. In this way, we seek permanent
solutions to prevent outflow of quality issues. The global expansion of our corporate activities has increased our potential exposure to customer dissatisfaction and quality issues in more regions around the world. In response, we have established Field Quality Centers (FQCs) with the goal of promptly gaining an understanding of regional quality issues and analyzing their causes locally. There are now 15 FQCs in Japan, the U.S., Europe, China, Mexico, Brazil, South Africa, India, Australia, Thailand, and other locations. Our FQCs conduct market quality research and analysis in five phases.
Conceptual representation of the five phases of market quality research and analysis
Phase 1
Clarification of the fact
Collecting and analyzing information
Confirmation of the phenomenon with parts and vehicles
Phase 2
Sharing the fact and decision of investigation items and responsibilities
Sharing the facts with R&D / manufacturing / suppliers
Agreement on investigation items/ responsibilities with R&D / manufacturing / suppliers
Phase 3
Root cause analysis & planning countermeasure
proposal
Identification of the root cause from failure cause analysis & Test result
Planning countermeasure proposal based on technical standard (design / manufacturing) and failure effect analysis
Phase 4
Validation of countermeasure content
Agreement and decision of countermeasure with R&D / manufacturing / suppliers
Countermeasure adoption at production line and deployment in market
Phase 5
Recurrence prevention and horizontal deployment
Revision of the technical standard (design / manufacturing)
Revision of the management process
Improving initial quality We are strengthening our efforts to deliver high-quality new vehicles to our customers. The Chief Vehicle Engineer (CVE), who is responsible for development, meets with the CQE to share information from the market in order to promptly respond to customers` wishes and potential satisfaction concerns. We confirm quality improvements for each process and explore necessary risk-reduction measures by visualizing potential risks at the planning stage. Applying all of these processes with transparent criteria lets us ensure that new models offer high quality from the outset.
Enhancing durability So that our customers are able to continue enjoy driving in our vehicles for many years, we are promoting efforts to address the deterioration caused over time by long-term vehicle use, such as the discoloration or deformation of resin, abrading of the surface materials, stripping away of chrome plating, and abnormal noises due to material fatigue. We consistently obtain data of warranty after the initial sale and conduct quality checks on recovered vehicles and parts actually used by customers to identify defects earlier. Analyzing this data helps us develop technologies that are more resistant to durability issues.
Fair and prompt response to material quality issues While we consider it our responsibility to do our best to prevent product defects from occurring, it is also our duty to be prepared for any contingency in the manufacture of cars, which are complex industrial products. Nissan`s basic stance on recalls is to respond in a transparent, fair, and prompt manner. It is our policy that decisions on recalls should be
*1AVES stands for lAlliance Vehicle Evaluation Standard.z AVES is a quality evaluation system used across the Renault-Nissan-Mitsubishi Alliance, in which specially trained experts assess vehicles using more than 300 quality assessment criteria established from the customer`s perspective.
ESG data book 2023
094
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
made from the perspective of compliance with laws and regulations, as well as from the perspective of how the issue affects customer safety. Specifically, Nissan makes decisions on recalls with the highest priority on ensuring customer safety, minimizing customer inconvenience, and complying with laws and regulations. When the recall decision is made, Nissan encourages customers to receive prompt repair information and visit repair facilities. If a problem is found in a vehicle manufactured or sold by Nissan, a recall decision is made in accordance with internal regulations together with representatives from the region closest to the customer. After a recall decision is made, the following measures will be implemented to enable prompt repairs with top priority given to customer safety and security. Notification will be sent in a prompt and fair manner by
postal mail to customers who own vehicles covered by the recall. Dealers will also contact customers, if necessary. Recall notifications will be posted on the website and on the mass media to inform the customer. We also make the required reports, including notifications to the authorities in accordance with the laws and regulations of each country.
Recalls in FY2022*1
Country / Region Japan
North America Europe Other Global
Number of recalls
14 22
2 21 46*1
Recalled vehicles (1,000 units) 781 2,439 0 278 3,490
Approaches with suppliers
Nissan is working with suppliers to improve the quality of parts from the design stage at all production sites, including addressing risks related to parts quality and supply.
Promoting risk evaluation and reduction management among suppliers We work to enhance our own global quality management. Nissan representatives visit each supplier`s plants and check the quality control conditions on their production lines. We also offer support for suppliers` efforts to meet the quality control standards we require. In addition to these activities, we work not only with direct suppliers but also with tier-2 suppliers to implement quality improvement measures.
Supplier inspections and training for improving product safety and quality To ensure product safety, we work together with suppliers and conduct inspections for products as well as components. Each component from our suppliers represents the endproduct of a complex manufacturing process that includes planning and development validation, turning design blueprints into prototypes, performance testing, and mass production. We have created a system called Alliance New Product Quality Procedure (ANPQP)*2 for regulating the necessary quality assurance across this entire series of activities. The ANPQP requires tests to be carried out on every component delivered to confirm their high quality. We developed the Alliance Supplier Evaluation Standard (ASES)*2 system. The ASES contains 240 evaluation criteria to determine if a
component is defective and analyze the systems in place to prevent problems occurring. The ASES is applied on-site, at the supplier`s factory. We also ensure that all parts are material certified through a quality control system that coordinates with suppliers, both in the manufacturing process as well as for component materials. All suppliers are trained in ANPQP, which is then rolled out and implemented by suppliers to ensure that accurate parts are delivered. For all Nissan suppliers, we are implementing a lSupplier Score Cardz containing an assessment of diagnostic measurements such as delivered quality and market quality as well as the Supplier Health Check (SHC)*2 supplier audit to check their management system. This ensures that suppliers maintain their systems for consistently delivering high-quality components and conduct new initiatives to further improve quality.
*1Each recall action is counted as one case, so the total number of recalls in each country and region is not equal to the global number of recalls. We respond to all safety-related investigation requests from authorities in each country. *2Click here for more information on ANPQP, ASES, and SHC.https://www.nissan-global.com/EN/SUSTAINABILITY/SOCIAL/QUALITY/PRODUCTS/ASSURANCE/
ESG data book 2023
095
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Improving sales and service quality
Nissan continues to improve not only vehicle quality but also quality of services at Nissan dealerships seeking to exceed customer expectations at all touch points. Certainly, it`s not an easy task as customer expectations are constantly evolving. However, at Nissan we have a clear plan on how to manage it. Operational excellence will be continuously focused to address the basics of customer satisfaction. Additionally, we strive to provide our customers with an enriched dealership experience that is seamless and personalized, through innovative management of sales and service quality at dealerships around the world.
Global dealership guideline updates
Several examples out of many are explained below to showcase how Nissan exerts its efforts to exceed customer expectations. First, Nissan Sales and Service Way (NSSW) is a set of global process guidelines aiming at constantly improving customer experiences especially during his/her vehicle purchasing and servicing process, which involves any dealership interactions. We regularly revise these guidelines to reflect the evolution of customer trends and needs, and ultimately offer a better experience at all touch points whether it is physical or digital, or both. Nissan Academy, our Learning and Development team for dealers, creates and conducts various training programs to support dealer personnel from dealership staff to management, to better serve our customers now and in the future. We have created a diverse set of programs including brand, product, and behavior trainings.
To enhance our activities at the dealership, we also continue training our field team members, who support our dealer partners to be successfully sustainable by analyzing dealer operations, developing improvement plans based on their individual situations, and supporting their implementation. Nissan Retail Concept (NRC) is a new dealership layout and design that has been rolled out globally with an intention to appeal to all customers. Customers that come for purchasing new vehicles or the ones coming to service their cars can be hosted in a welcoming and comfortable environment. The key elements of the brand such as Nissan Intelligent Mobility,*1 Electrified vehicles, NISMO performance sub-brand, light commercial vehicles, Nissan Intelligent Choice (Certified Pre-Owned vehicle program) are all showcased in the NRC environment. We continuously develop this concept around the world.
*1Click here for more information on Nissan Intelligent Mobility.https://www.nissanusa.com/experience-nissan/intelligent-mobility.html
Quick Voice of Customer (QVOC) to reflect customer voice
Focusing on the voice of each individual customer and quick problem resolution, we implemented QVOC. It is not a survey but rather a powerful tool to capture customer`s feedback with simple questions and free comment. In case a customer shows any concern, QVOC provides the Dealer / Nissan a hot alert and allows the Dealer to quickly resolve the specific customer`s concern and thereby increases customer promotion for Nissan. It is still one of our important focus initiatives to consistently improve customer satisfaction. At Nissan, we are always thinking of the customer and QVOC is just one of the tools that we use to provide customers unparalleled customer experience.
New logo Nissan dealer outlet
ESG data book 2023
096
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Supply chain management
Supply chain strategy
The challenges facing modern societies, such as climate change and energy issues, are increasingly global in their scope. To meet these challenges, it is essential for Nissan to identify relevant issues at each stage along the supply chain and make ongoing efforts to address them. Nissan`s business and supply chain expand across the globe. We share Nissan`s vision and policies with business partners, with whom we strategically collaborate to achieve our goals through the promotion of consistent procurement activities on a global scale. We aim to achieve sustainable growth built on a foundation of mutual trust with our business partners. We listen closely to and work with our suppliers as equal partners, developing and maintaining cooperative and competitive relations that enable us to implement best practices.
To optimize purchasing activities, the Alliance partners established a common purchasing company, the RenaultNissan Purchasing Organization (RNPO), in 2001 and have steadily increased the scope of its activities in the years since then. Its name was changed to the Alliance Supply Chain Management Purchasing Organization (APO) in April 2018, after Mitsubishi Motors joined the Alliance. The new organization aims to help each company in the Alliance achieve sustainable performance through the steady development of the Alliance as well as through the advantage of economies of scale.
We use common, transparent processes and criteria worldwide to select suppliers and are open to doing business with new partners, regardless of nationality, size, or transaction ties in the past. Suppliers are selected after the relevant Nissan divisions meet to examine submitted proposals from a range of perspectives. We explain our decisions to every supplier that takes part in the supplier selection process as part of a thoroughly fair, impartial, and transparent system. Transactions with suppliers are based on the three values that the Alliance regards as important: trust (work fairly, impartially, and professionally), respect (honor commitments, liabilities, and responsibilities) and transparency (be open, frank, and clear). Nissan and Renault have produced a booklet, The RenaultNissan Purchasing Way*1, outlining the values and processes the Alliance sees as important when doing business. This booklet has been shared with tier-1 Renault and Nissan suppliers since 2006. In Japan, we also adhere to the lproper trading guidelinesz issued by the Ministry of Economy, Trade and Industry for the automotive industry.
The Alliance Purchasing Organization (APO) created by Renault, Nissan, and Mitsubishi Motors
Alliance Purchasing Organization
Purchasing domains: All (components, materials, equipment, molds, service support)
Purchasing functions: All (planning, procurement, projects vehicles/units, management, supplier quality, etc.)
Processes from supplier selection to mass production
Choice of supplier candidates
Sourcing
Selection of suppliers
Design Prototype production Evaluation for mass production
Mass production
Performance monitoring
*1Click here for more information on The Renault-Nissan Purchasing Way.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/Renault_Nissan_Purchasing_Way_English.pdf
ESG data book 2023
097
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Supply chain management policies and philosophy
Initiatives with suppliers
To build a sustainable supply chain, Nissan is committed to conducting business in an ethically, socially, and environmentally responsible manner at every stage of its global supply chain. In addition to the values the Alliance should respect as set forth in The Renault-Nissan Purchasing Way (2006)*1, which is the procurement policy of the Alliance, Nissan aims to build a sustainable supply chain and realize responsible procurement of all parts and raw materials. To this end, Nissan established the Nissan Green Purchasing Guidelines (2008)*2 , the Renault-Nissan CSR Guidelines for Suppliers (first published in 2010, revised in 2015)*3 , and Supplementary Handbook for Nissan Suppliers (2022)*4 defining the initiatives expected of suppliers. We request our suppliers and their business partners be aware of, manage, and practice these policies. The Renault-Nissan CSR Guidelines for Suppliers (revised in 2015) explain expected initiatives in 26 categories across five areas with the aim of encouraging suppliers to review their corporate activities from a sustainability perspective and implement CSR initiatives.(Refer to the table in right) We require suppliers to undergo assessments by third-party organizations and provide a written commitment ensuring that suppliers and their business partners will maintain the same levels of management. Further, if suppliers are found to be in a state of non-compliance, the guidelines prescribe required responses, such as filing a report immediately,
investigating, and formulating corrective measures. In the case of a noncompliance incident, we will take firm action based on our regulations and do everything necessary to prevent a recurrence. The lRenault-Nissan CSR Guidelines for Suppliersz Supplementary Handbook for Nissan Suppliers (2022) is aimed at promoting an understanding and further clarifying important issues that must be taken into consideration and addressed regarding compliance and social issues represented by human rights and labor. When issuing each policy, we distributed booklets that were explained at supplier meetings to ensure that suppliers and business partners were fully aware of these policies. In
addition to Japanese and English language booklets, we also publish Chinese language versions as appropriate. Additionally, in Japan, we have provided opportunities with a series of dialogues to deepen mutual understanding on the importance of activities and the future direction regarding human rights. We plan to establish an whistleblowing system for suppliers to report human rights violations by Nissan and its employees during fiscal 2023 to further promote respect for human rights throughout the supply chain.
In fiscal 2022, no human rights violations, such as discrimination, occurred, and no supplier was found to be at serious risk of forced labor or child labor.
Supply chain management policies and philosophy
Supply chain management policies and philosophy
The Renault-Nissan Purchasing Way Basic Alliance principles for purchasing
Shared values with suppliers (trust, respect, transparency) Supplier sourcing process Support for suppliers
Renault-Nissan CSR Guidelines for Suppliers Five Areas and 26 Categories of Expected Initiatives Under The Renault-Nissan Supplier CSR Guidelines
Compliance
Compliance with laws and regulations, compliance with the Competition Law, ensure anti-corruption, management and protection of confidential information, export trade controls, and protection of intellectual property, in accordance with Japanese government guidelines and ordinances, elimination of anti-social forces in Japan, and responsible mineral procurement
Safety and Quality Provide products and services meeting customer needs, ensure the safety of products and services, as well as the
quality of products and services
Human Rights and Labor Prevent discrimination, respect human rights, prohibit child labor, prohibit forced labor, ensure wages, working
hours, conduct dialogues and consultations with employees, ensuring a safe and healthy working environment
Environment
Environmental management, reduction of greenhouse gas emissions, prevention of air, water, soil and other environmental pollution, resource conservation, waste reduction, chemical substance management, protection of ecosystems
Information Disclosure Open and fair communication with stakeholders
aspects
"Renault-Nissan CSR Guidelines for Suppliers" Supplementary Handbook for Nissan Suppliers
Additional detailed explanation regarding compliance, human rights and labor issues aspects
Nissan Green Purchasing Guidelines
Compliance with regulations and Nissan's basic environmental principles Establishment of management system Management of chemical substances Activities to reduce environmental load Completion of surveys on CO emissions, water usage, other environmental factors
Nissan Human Rights Policy *
*1Click here for more information on The Renault-Nissan Purchasing WayPDF.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/Renault_Nissan_Purchasing_Way_English.pdf *2Click here for more information on collaborations with suppliers within lStrengthening Our Business Foundations to Address Environmental Issues.z>>> P064 *3Click here for more information on lthe Renault-Nissan CSR Guidelines for Suppliersz.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/SUPPLIERS2015/ *4Click here for more information on the lRenault-Nissan CSR Guidelines for Suppliersz Supplementary Handbook for Nissan Suppliers.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/SUPPLIERS_SH/index.html *5Click here for more information on Nissan human rights policies and initiatives.>>> P068
ESG data book 2023
098
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Supply chain management
Evaluation, monitoring, and auditing of suppliers` sustainability practices
Nissan has been confirming suppliers` commitment of the Renault-Nissan CSR Guidelines for Suppliers and check their environmental management systems and their willingness to advance environmental activities with us at the time of supplier selection. Among newly selected suppliers in fiscal 2022, 100% of them met both Nissan`s social standards and basic environmental principles. In 2016 the Renault-Nissan Alliance began third-party assessment of suppliers` sustainability activities to raise standards through mutual confirmation. When results do not meet Alliance standards, suppliers are requested to draw up plans for improvement. We then monitor their implementation. We held a seminar for suppliers, where a rating organization spoke to them directly how to answer assessment questions and formulate improvement plans. By now, more than 90% of Nissan`s purchase demands are covered by a third-party assessment. We also conduct sustainability training in our purchasing department to ensure that employees conduct checks of suppliers` sustainability activities in their daily work. In addition, Nissan requires all employees to attend e-Learning courses on the Subcontractors Act*1 and the Anti-Monopoly Act*2 as mandatory training every year in order to maintain fair and impartial relationships with suppliers. If there are issues with the supply of parts and materials, they may lead to problems not only for Nissan`s production but also the supply chain as a whole. We therefore position the following measures as part of sustainability activities
and implement; (1) confirming supply risks under normal circumstances; (2) following up annually on quality, cost, delivery, development, management, sustainability, and risk (QCDDMSR) performance; and (3) working with suppliers to craft response plans for natural disasters to ensure production continuity or early restoration of capacity. We monitor compliance from the perspective of supplier management, constantly assessing the situation at each supplier based on a range of factors. When high risk is identified, we work with the supplier to rapidly draft and implement countermeasures. In fiscal 2022, there were no suppliers whose compliance was problematic, and no supplier contract was terminated for such a reason. *3
*1Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors *2Act on Prohibition of Private Monopolization and Maintenance of Fair Trade *3Click here for more information on the detail of Nissan Human Rights management and its structure.>>> P070
Promotion of Monozukuri activities with suppliers
We work to continually improve the competitiveness of our products through the Monozukuri Activities program, a collaboration between suppliers and Nissan that was launched in 2008. Since 2009, these activities have expanded through the joint THANKS Activities initiative, which emphasizes trust and cooperation between Nissan and its suppliers. With the goal of working with suppliers to become cost leaders under today`s challenging market conditions, we strive to improve product quality, reduce costs, and rationalize manufacturing through measures that include increasing production volume per part, promoting localization, and improving logistics. In fiscal 2013, we introduced the Total Delivered Cost (TdC) Challenge, aiming to optimize all fluctuating costs, including for specifications, materials, exchange rates, and logistics. Our various functional departments, together with suppliers, are continuously working to proactively promote the TdC Challenge and improve both quality and supply.
ESG data book 2023
099
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Engagement with suppliers
Providing suppliers with timely and accurate information is a key task for Nissan. Suppliers` meetings are held in Japan and overseas to spread understanding of Nissan`s purchasing policy for the fiscal year, midterm business plan, and other matters. In Japan, we hold monthly meetings and directly inform suppliers of our production plans, activities, and requirements. The meetings are also an opportunity for Nissan to respond to supplier questions and requests.
Recognizing supplier contributions worldwide
Each year we recognize the contributions of our suppliers to the development of our business and improvement of our performance with awards presented at the global level as well as in each of the regions where we operate. The purpose of this awards program is to ensure that Nissan`s concept of balanced management in terms of social and environmental*1 considerations as well as quality*2, cost reduction, technological development, and other economic activities, permeates the entire supply chain on a global level. At the Nissan Global Supplier Awards, we present Global Quality Awards to suppliers showing exceptional performance in quality for the year, and Global Innovation Awards to suppliers whose innovative initiatives improved Nissan`s brand and product power. Global Quality Award recipients are selected by Nissan`s purchasing, quality and other divisions using standard criteria applied worldwide. Global Innovation Award recipients are selected from suppliers nominated by Nissan`s production, development, and other divisions in two categories: product technology and process management. In fiscal 2022, five companies received Global Quality Awards, while Global Innovation Awards went to 13 projects and 15 companies.
*1Click here for more information on collaborations with suppliers within lStrengthening Our Business Foundations to Address Environmental Issues.z>>> P095 *2Click here for more information on initiatives with suppliers within lProduct Safety and Quality.z>>> P064
ESG data book 2023
100
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Responsible minerals sourcing
Minerals sourcing policy
In 2013, Nissan moved quickly to establish a policy against use of conflict minerals and published the policy on its website. Following this, in July 2020 it formulated and published its new Global Minerals Sourcing Policy Statement*1 and expanded the scope from the conflict minerals known as 3TGs (tin, tungsten, tantalum, and gold) to all minerals including cobalt from conflict-affected and high-risk areas. Nissan requests that suppliers ensure similar controls.
Nissan`s goal is to conduct ethical, social, and environmentally conscious business practices at every level of our global supply chain. We monitor our supply chain to assess whether the mineral resources contained in materials or components used to manufacture our products have any harmful social effect, such as on human rights or the environment. When there are concerns about the minerals being used, Nissan actively works to end that use.
Responsible minerals sourcing management
Referring to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict and High-Risk Areas, Nissan carries out due diligence on highrisk minerals sourced from conflict and high-risk areas, including 3TGs (tin, tungsten, tantalum, and gold) and cobalt. Since 2021, the Renault-Nissan-Mitsubishi Alliance has joined the RMI*2 to assess risks together with suppliers and further strengthen activities to correct problems when they are identified. With regard to 3TGs, we began conducting conflict mineral surveys in our major areas of operation (Japan, North America, and Europe) in fiscal 2013. Starting in fiscal 2014, we gradually expanded the scope of these surveys to other areas. Surveys on a massive scale are required to grasp the status of minerals usage throughout the global supply chain. We therefore collaborate with organizations including the Japan Automobile Manufacturers Association, Inc., the Japan Auto Parts Industries Association, and the Japan Electronics and Information Technology Industries Association to hold regular working group sessions to consider methods for investigation and analyzing the results of those investigations. The surveys track minerals back through the chain of suppliers using CMRT (Conflict Mineral Reporting Template) provided by the RMI. This enables Nissan to identify smelting and refining companies that are not procuring minerals that are a source of funds for armed groups in their regions. We provide the suppliers we survey with manuals describing how to fill in required forms and what tools to use to collate results. In this way, we work to increase understanding of conflict mineral issues throughout the supply chain.
In fiscal 2022 we conducted surveys in nine markets Japan, the U.S., Mexico, Europe, China, Thailand, India, South Africa and Brazil. No suppliers were found to be using minerals from smelters / refineries believed to be connected to armed groups. Going forward, we plan to make our surveys more effective by improving its methodology in conjunction with the member companies of the Japan Automobile Manufacturers Association, Inc., and the Japan Auto Parts Industries Association. We will also continue to seek responses from suppliers that did not reply to the survey. We are aware that cobalt poses geopolitical risks, environmental damage and human rights issues during mining. We have conducted interviews with lithium-ion battery suppliers, from the viewpoint of cobalt content, and since 2018, we have been working to identify supply chains and smelters and refiners. The results are disclosed annually in our lActions for minerals sourcingz report.*3 The head of the Purchasing Department is responsible for conducting supply chain due diligence with the cooperation of the R&D Division, Sustainability Development Department, and other related divisions, and reports the results to the Global Sustainability Steering Committee. The results are also appropriately reported to the Executive Committee (EC), Nissan`s highest decision-making body, for use in determining future initiatives.
*1Click here for more information on the Global Minerals Sourcing Policy Statement.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/Minerals_Sourcing_Policy_e.pdf *2RMI stands for Responsible Minerals Initiative, an organization with member companies and associations from the information and communications technology and other industries that works to improve global social and environmental awareness. *3Click here for more information on our Actions for minerals sourcing.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/Minerals_e.pdf
ESG data book 2023
101
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Human resource development
Human resource development policies and philosophy
We value a self-directed stance toward learning by employees, and are working to foster a corporate culture in which they can demonstrate their abilities and potential and in which both the company and employees can continue to grow together, as well as to develop human resources. We encourage employees to take ownership of their own careers and promote skill development. We also promote active collaboration and teamwork with others, in addition to the development of team members by their supervisors in their respective workplaces. Specifically, the five values of the NISSAN WAY which evolved in fiscal 2020 as a symbol of the new Nissan, and the appraisal system, which emphasizes the development of human resources and promotion of collaboration, was revised in fiscal 2020 to ensure sustainable growth and development of the organization and human resources. In addition, to provide employees with effective learning opportunities even in remote work environments, we provide over 20,000 types of e-learning content on a global basis and are also promoting the expansion of digital learning infrastructure by preparing an environment so that employees can take courses on their own mobile devices.
Human resource development management
Continually improving human resource systems
Nissan is working constantly to improve its human resource systems to achieve growth for its people and organization over the medium to long term. We updated these systems in fiscal 2020 and established three pillars of appraisal, namely appraisal metrics based on the evolved NISSAN WAY, People & Collaborative Leadership (metrics for leadership skills such as employee development and collaboration), and expertise required in each area. Based on these systems, we have introduced lCompetency Appraisal,z which captures behavioral attributes based on each employee`s skills and knowledge, and lPerformance Appraisal,z which reviews their results to determine how well tasks were accomplished. In the lCompetency Appraisal,z the degree of contribution the employee has made to the company is appropriately assessed to determine wages or annual compensation. In the lPerformance Appraisal,z results are linked to compensation in the form of bonuses or variable compensation (VC)*1. In addition, the company offers an employee stock ownership plan as part of its fringe benefits.
NISSAN WAY Competency
The value and action standards which is commonly set across the company are represented by the five principles of"NISSAN WAY".
People & Collaborative Leadership Competency
The value and action standards related to people management, collaboration, and leadership.
Technical Competency
The action standards based on specific skills that employees are required in each organization.
*1Incentive compensation that fluctuates.
ESG data book 2023
102
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Support for self-designed careers
At Nissan, all employees have an opportunity three times a year to discuss their own careers with their supervisors to support their career designs. Together with lPerformance Appraisalz and lCompetency Appraisal,z employees and their supervisors reach a consensus through dialogue. Aiming to enhance measures for career development as well as growth in their dialogues, training programs are provided to improve supervisors` skills. In addition, guides and e-learning are available for employees to voluntarily consider their own careers. We use dedicated tools for evaluation to keep track of evaluation records so that even a newly instated supervisor can immediately confirm employees` growth progress, which makes it possible to maintain consistency within the human resource development. We conduct surveys to gain employee input regarding the evaluation dialogues and to learn their level of understanding and satisfaction with the system. Based on the results, we implement necessary measures and make improvements. We monitor employee satisfaction regarding the dialogues with their supervisors, and there has been an improvement in employee understanding and acceptance of the evaluation system. Employees in Japan have a chance to take on the challenge of a new position through the Shift Career System (SCS) and the Open Entry System (OES). The SCS enables employees to apply for positions in other departments or areas in which they are motivated to work in, regardless of whether there is a position immediately available. The OES allows them to apply for all openly publicized positions. During fiscal 2022, a total of 301 employees applied for approximately 520 open posts, and 186 of them succeeded in getting the positions they applied for.
Support for the engagement of senior human resources
Following the principles of diversity, equity, and inclusion, Nissan introduced the lSenior Partner Systemz in April 2013 as a career stage for senior employees with a high level of expertise and experience, enabling them to continue working regardless of their age. This system is designed to establish a flexible work style that balances the diverse needs of employees regarding their second careers with the needs of the company and provides employment opportunities after retirement at age 60 up to age 65. The number of senior partners has grown from over 200 when the program began to over 2,700 as of the end of 2022, and these partners are active in a variety of occupations and positions. In April 2023, Nissan revamped its framework of compensation and periodic interviews and related matters. It has built an environment in which employees are highly motivated to do their work and foster their successors as a member of the organization by posting expectations more in line with each individual`s duties and providing compensation in accordance with the level of their contribution. At the same time, the company introduced a system that allows senior partners who meet certain criteria to continue to be active beyond age 65 until age 70, thereby broadening the range of life plan options for senior employees.
Offering learning opportunities
Based on our firm belief that employees are our most important asset and that nurturing them is critical, we support them by providing a large number of learning opportunities. We have developed various programs to help employees improve their management and business skills, and to develop leadership skills. In these ways, employees are encouraged to enhance their skills, their knowledge, and their mindset in order to realize their career visions. Specifically, in addition to mandatory trainings for each career stage, we implement elective trainings which allow employees to choose what they want to learn. We also expand global common e-learning content to encourage self-learning. With these measures, we strive to foster a corporate culture of continuous learning and development. In response to changing times, we are actively shifting from face-to-face training conducted in groups to online training to build an effective learning environment that enables each individual to learn using their mobile devices under remote working conditions.
ESG data book 2023
103
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Nissan Learning Center In the automobile industry, in which technological innovation is rapidly advancing, in order to maintain and develop Japanese manufacturing that leads global competition, talents are required who not only understand advanced vehicle manufacturing and technology but also have management skills and maturity. We founded Nissan Learning Center with the aim of continuously developing capable leaders to play a central role in monozukuri and pass down our technologies and skills to future generations. This is another example of how we offer learning opportunities and promote activities to develop human resources. Nissan Learning Center consists of three organizations: Nissan Technical College, Genba Kanri (shop-floor management) School, and Engineering School. It offers a variety of programs aimed at developing engineers and technicians who carry forward the lNissan DNAz and achieve continuous success through the implementation of the evolved NISSAN WAY. In addition, Nissan Learning Center is responding to remote working by offering online technology training including AI and IoT for approximately 10,000 employees.
Nissan Software Training Center (STC) In 2017, we established the Nissan Software Training Center (STC) within our Nissan Advanced Technology Center (NATC) and have been working on training engineers to develop skills for both cars and software development. As software holds the key to our competitiveness in an age where CASE is progressively expanding, we continue to develop talent who are well-adapted to digitalization through our STC programs in which we offer necessary knowledge and skills. To date, a total of 479 employees have graduated the program (completed reskilling) over a period of 15 semesters since the center`s establishment in 2017.
Engineering and technical skill training around the world
To strengthen our efforts to expand our business globally, we must further improve the engineering skills of individual employees working across the globe. We offer opportunities for personal growth equally to all employees in both R&D and manufacturing, whether they work in Japan or elsewhere, to help them enhance their capabilities.
Training for engineers Since 2012, we have implemented the Global Training Program (GTP), a common global basic training program for engineers at R&D sites worldwide. Furthermore, in recent years, we have moved forward with plans for more advanced and specialized training, including training in the areas of electric vehicles, autonomous driving technologies and connected car services, in order to develop talent that can lead R&D related to autonomous vehicles and connected cars.
Training for technicians In order to improve the day-to-day management skills of foremen and general foremen in all of the plants operated by Nissan, Renault, and Mitsubishi around the world, a common production method known as the Alliance Production Way (APW) has been defined. We are also developing a shared Alliance framework for APW training, which we aim to implement worldwide.
Improving management quality
We are working to improve the quality of management at the global level. We have further emphasized strengthening human resource management within the organization by introducing values of the evolved NISSAN WAY and People & Collaborative Leadership into the appraisal system. In the introduction of the new system, corporate officers and general managers themselves acted with strong leadership, holding dialogues and workshops to promote understanding in their respective departments and to communicate the will to change. In fiscal 2021 and afterwards, we include the contents related to expected roles in companywide trainings by job level (for new employees, for newly promoted managers, etc.), and continue to promote understanding of the new appraisal system and encourage employees to take expected actions. In addition, we have revised the existing training program structure in line with the new NISSAN WAY and People & Collaborative Leadership, creating an environment where employees can take training that strengthens relevant skills and leadership. From 2023, we will introduce a common global framework called Nissan Charge to increase opportunities for learning and growth and improve the quality of management for all employees.
ESG data book 2023
104
Nissan Motor Corporation
Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Training future leaders
To continually foster future leaders and specialists who will lead the company, we take a strategic and systematic approach to training, job rotations, and recruitment. Specifically, we identify future business leader candidates at an early stage and implement various training programs by clarifying their strengths and development areas according to their growth stage, including young employees, middle managers, and corporate officers. Staff rotations beyond divisions and regions are strategically and systematically implemented to give candidates for future leaders opportunities to work in management posts or global functions so that they can acquire the experience needed to become a management member or a leader. Furthermore, we are in the midst of a period of transformation from the era of owning a car to the era of creating new mobility services, such as electrification, autonomous driving, car sharing, and connectivity with the internet. We are therefore working to develop leaders who can lead new businesses beyond the boundaries of the conventional automobile business. Furthermore, to cultivate a pipeline of future leader candidates, we provide the lGlobal Challenge Program,z in which younger employees travel to Nissan`s overseas sites for extended periods to work with local teams to solve problems. We also offer the lVenture Challenge Program,z in which they learn work processes and know-how through operations at startup companies in Japan. Candidates are encouraged to apply for both programs through selfnomination from the viewpoint of supporting employees who take initiative. We are reinforcing our human resources not only through the recruitment of new graduates but also by actively hiring
mid-career talent and mid-level management candidates from outside the company. To effectively operate these talent management schemes, meetings dedicated to human resources are regularly held with corporate officers. There, talents are identified, then development plans and succession plans are created. In addition, corporate officers have opportunities for direct dialogue with future leader candidates and actively participate in discussions on human resource development measures across divisions and regions. These strategic human resource management systems are also being actively discussed at the regional and departmental levels, with human resources and systems coordinated across regions under a common global framework.
*1In addition, we have prepared more than 100 in-person and e-learning courses for specialized knowledge and skill development. *2Training on lV-upz Program, the problem-solving program developed by Nissan.
Company-wide training system
Compulsory training
New general manager training
New manager training
New assistant manager training Leader training
3rd year employee training New graduate induction training
Training for mid-career hires
Customer First
Orientation Personnel Evaluation Advanced Management Diversity Management/Cultural Inclusion Diversity Management / Inclusion Harassment Prevention Customer First Role / Evaluation System / Management Basics Customer First Role Customer First
Career
Onboarding Training
Onboarding Training /e-Learning
Elective training *1
Face-toface/Online
General employees
Management-level employees
Leader
Assistant manager
Manager
General manager
Quality Management
Team Leadership
Building a Culture of Trust
Advanced Coaching for Managers
Coaching
Training
Project Management
V-Expert Training *2
V-Pilot Training *2
i-Pilot Training *2
V-FAST Facilitator Training *2
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
The Nissan Expert Leader System: Passing down Nissan`s technologies and expertise
Helping employees develop specialized skills over the medium to long term is vital for a company to achieve sustainable growth. The Nissan Expert Leader System is a means of strengthening and fostering further development of specialized skills in a wide range of technical and nontechnical areas such as purchasing and accounting. In fiscal 2023, the system`s 18th year, 46 Expert Leaders and one Fellow are playing an active role in a total of 80 fields of specialization. The Expert Leaders and Fellows make use of their specialized knowledge to contribute to Nissan`s business endeavors overall. In addition to sharing their knowledge with others via the corporate intranet and other communication tools, they contribute to the fostering of the next generation of experts by passing on their expertise in seminars and training courses.
Human resource development achievements
Training program achievements at Nissan Motor Co., Ltd.
Performance indicators for training
programs
FY2020
FY2021
FY2022
Number of learners
304,225
395,448
519,905
Total hours of training
Average hours per learner Learner satisfaction (out of 5.0) Investment per employee (¥)
250,251 11.1
over 4.2 64,000
328,783 14.3
over 4.2 67,000
392,294 16.5
over 4.2 75,000
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Labor practices Respecting the rights of workers
Policies and philosophy on respecting the rights of workers
Nissan has been a member of the United Nations Global Compact since 2004, observing its universal principles on human rights, labor, the environment, and anti-corruption. Nissan promotes the management of sustainability strategies pursuant to the Compact`s 10 principles. We have expanded and enhanced our wide-ranging activities to ensure that employees` basic rights are respected.*1
Management that respects the rights of workers
Under the lValue Diversity and Provide Equal Opportunityz code within the Global Code of Conduct,*2 Nissan requires its employees to respect and value the diversity found among the company`s employees, business partners, customers, and communities, while rejecting discrimination and harassment in all forms, regardless of magnitude. Nissan executives and employees must respect the human rights of others and may not discriminate against or harass others based on race, nationality, gender, religion, disability, age, place of origin, gender identity, sexual orientation, or any other reason; nor may they allow such a situation to go unchecked if discovered.*3 We also work to ensure that all employees, regardless of gender (male, female, other), can work in an environment free from sexual and other forms of harassment. As a specific measure to achieve this goal, we have introduced mandatory e-learning programs on human rights and compliance with the aim of advancing employees` awareness of such issues.*4 In addition, we have implemented a system called SpeakUp,*5 which enables internal reporting of any suspected breaches of all internal policies, including the Global Code of Conduct.
Building a workplace environment where employees can work with peace of mind
Based on the idea of fostering a people-centered corporate culture, Nissan is cultivating a workplace environment where employees can work with peace of mind. To that end, it is essential that employees` human rights are respected throughout the organization, and Nissan is building a framework to address this issue in a systematic way. In 2021, we released the lNissan Global Guideline on Human Rightsz,*6 which is a compilation of specific action points on how to respect employees` human rights. The document covers seven themes in light of Nissan`s business activities. Based on these guidelines, we are working to further strengthen our initiatives for respecting the human rights of employees throughout our business.
*1Click here for more information on the Nissan Human Rights Policy Statement.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/HUMAN_RIGHTS/ASSETS/PDF/nissan_human_rights_policy_e.pdf>>> P068 *2Click here for more information on the Global Code of Conduct.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/NISSAN_GCC_E.pdf *3Click here for more information on our human rights initiatives.>>> P071 *4Click here for more information on business ethics: management.>>> P136 *5Click here for more information on the globally integrated reporting system.>>> P136 *6Click here for more information on the Nissan Global Guideline on Human Rights.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/HUMAN_RIGHTS_GUIDELINE/index.html
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Achievements in respecting the rights of workers
Diversifying workstyles with lHappy 8z
Nissan has striven to create workplaces that let individual employees choose from a wide range of workstyles to suit their values and life needs through its lHappy 8z workstyle reform.*1
Human rights due diligence / Assessment
Nissan conducts human rights assessments as part of its human rights due diligence to ensure that employees` human rights are respected at each of its global sites and to create an environment where its employees can work with peace of mind and where Nissan respects local laws and incorporates international standards, as necessary. The following process is being implemented at all sites: determining whether improvements need to be made based on the results of the assessment, planning and implementing those improvements, and then disclosing the results outside of the company. In fiscal 2022, a human rights assessment was conducted at Nissan (China) Investment Co., Ltd., starting with a selfassessment questionnaire followed by performing a more in-depth assessment with the cooperation of a thirdparty organization. The assessment did not suggest any inconsistencies with local laws and identified potential areas the assessed entity could consider revising. The assessment details are being scrutinized internally, and we proceeded to propose and implement a response. *2
Labor practices Employee engagement
Global employee survey
Nissan aims to create an inclusive organization in which each of its diverse talent can demonstrate their abilities and grow over the medium to long term. Toward this end, we have conducted a Global Employee Survey annually since 2005 and actively utilized employee feedback gained through the survey. In addition to continuously setting lEmployee Engagement and Satisfactionz*3 as a key performance indicator of the company, the results of a recent global employee survey identified five priority areas*4 including lEnablementz*5 impacting the company as a whole. We are seriously taking improvement actions for corporate culture transformation under the direct ownership of top management aiming to exceed the global benchmarking scores as a medium-to long-term goal. These key indicators are also set as one of the evaluation metrics in determining annual bonuses for executives and managers. Survey results are shared on an internal portal used by all employees. Each function and region then closely examine the results and works on their own improvement actions. In recent years, we are seriously taking improvement actions for the speed of decision making and psychological safety. We regularly review the status of implementation for the actions to continuously enhance employee engagement. Based on the results of these actions, the Global Employee Survey*6 conducted in February 2023 showed a two-point year-on-year improvement in the lEmployee Engagement and
Satisfactionz score, which is used as an indicator. Scores also improved steadily in all five priority areas.
Employee engagement satisfaction score
100
80 68
67
69
60
40
20
0 FY2020 FY2021 FY2022
results
results
results
Score for the entire Nissan Group, including affiliated companies
*1Click here for more information on lHappy 8z workstyle reform.>>> P086 *2Click here for more information on human rights due diligence / assessments conducted in fiscal 2022.>>> P071 *3lEmployee Engagement and Satisfactionz consists of two parameters: lSatisfaction with working at Nissanz and lI can recommend Nissan as a great place to work.z *4Five priority areas: Enablement; Corporate ethics; Leadership; Corporate culture; and Diversity, equity, and inclusion. *5Enablement: Environment that supports employee motivation, ease of working to express their full capabilities. *6Approximately 97,000 people responded globally. (90% participation rate)
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Labor practices Dialogue with employees
Policies and philosophy on dialogue with employees
For a company to continue offering new value in the face of rapid changes in the social and business climate, it is essential for its employees to embrace the company`s corporate purpose as well as its mission and consciously work toward realizing them. Nissan conducts its internal and external communication activities with the aim of enhancing and maintaining the company corporate and brand values while at the same time enabling the company to achieve its short- and long-term business goals. In terms of internal communication, we are delivering a variety of information to our employees globally to foster a genuine interest and fondness for the company, which will encourage them to engage in tackling challenges as well as proactively enhance the value of the company as lambassadorsz of Nissan.
Guidelines for dialogue with employees
We established two guiding principles for communication that aim to encourage higher employee engagement: lbuilding trustz and lincreasing employee motivation.z We utilize various communication tools to deepen employees` understanding of our business, products, and brand, as well as to explain the direction in which we are heading in order to generate employee confidence in their day-to-day activities and in the future of the company. By organizing events and offering opportunities for employees to increase their motivation and realize that they are an integral part of the company, we nurture a sense of pride in our employees, which in turn will encourage them to contribute to Nissan`s sustainable growth.
Enhancing employee engagement
Management of dialogue with employees
Nissan is deploying messages in a thoughtful manner, such as through the corporate intranet system that delivers information to all employees globally, materials cascaded from senior managers or information shared in each region. Employeeexecutive exchange is also held on a regular basis with the aim of building trust. Furthermore, we offer opportunities for employees to voice their views and share them with company executives in an effort to promote continuous improvement. An annual action plan for internal communication activities is created with the aim of improving communication both quantitatively and qualitatively. Surveys are conducted on these communication initiatives on an annual basis, as well as on individual communication activities. Survey results are reflected in future communication activities and action plans for the following fiscal year.
Building trust with employees
Increasing employee motivation
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Achievements in dialogue with employees
Strengthening communication to build trust and increase motivation
We are currently working to achieve the objectives of the Nissan NEXT*1 business transformation plan calling on all employees to embrace our corporate purpose and understand the significance of the plan. Employees` confidence in the company`s activities and performance is essential for the plan`s success. At the same time, we also need to motivate employees, encouraging them to take selfinitiated action. Therefore, internal communication activities focus on building trust among employees and increasing their motivation.
Enhancing communication channels
We punctually provide our employees with information on business results including financial announcements. To encourage employee engagement and motivation, swift communication of information regarding the company`s products, services, and technologies such as on electrification and vehicle intelligence is provided, which enables employees to deepen their understanding of these important initiatives. We are enhancing coordination among our various departments and with executives and actively sharing information that contributes to relationships of mutual trust and higher employee motivation. Every new fiscal year starts with the CEO delivering a presidential address, reflecting on the past year`s
performance and highlighting the direction for the new year. Topics based on employee interest are also broadcast through live web conferences called Management Information Exchanges (MIEs), which encourage engagement between Executive Committee (EC) members and general managers. Employee motivation is also raised through participation in new model announcements and seminars, where employees gain a deeper understanding of Nissan`s products and activities and learn to convey product features and attractiveness to their friends and families more effectively. We also hold seminars for employees on a variety of topics, including advanced technology, which is a pillar of Ambition 2030, and diversity, which is one of Nissan`s strengths. These events not only promote employee understanding of these topics but also foster their confidence in the future of Nissan. They have been highly effective in developing lambassadorsz for Nissan.
Tech seminar
DEI Fireside chat
*1Click here for more information on Nissan NEXT.https://www.nissan-global.com/EN/COMPANY/PLAN/NEXT/
Since we introduced a corporate intranet system accessible by all employees globally called WIN (Workforce Integration @ Nissan), it has been used to promote communication, information sharing, and collaboration among employees. WIN has expanded beyond the Nissan Group, and the audience has now begun to include Nissan`s major affiliates as well. At the end of fiscal 2022, to further promote communication between employees and management, we launched lYour Voice,z a suggestion box to collect employees` matters of interests. We also provide the lExecutive Dialoguez series, in which executives in charge answer questions and listen to comments from employees gathered through lYour Voicez and other channels. Furthermore, lExecutive Personality Piecez is an ongoing series on our website, which focuses on the personal side of our executives. The Global Internal Communications Department will continue listening to employee opinions with the aim of further improving intranet (WIN) quality.
Executive Dialogue
Executive Personality Piece
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Nissan is issuing Engagement Kits summarizing its global operations, business performance and major achievements, and corporate direction. These kits are distributed to general managers every month and are used as communication tools for information sharing. In addition, in Japan, employees are provided with the necessary information in a timely manner through such means as a printed in-house monthly newsletter called Nissan News for employees at Nissan production sites and an in-house broadcast program on TV monitors in employee cafeterias and in offices.
We are making efforts to communicate information that will lead to greater employee trust toward the achievement of Nissan NEXT business transformation plan objectives. These efforts are monitored on an ongoing basis through key performance indicators (KPIs) and reflected in internal communication activities. For these activities, we conduct regular surveys of employees, and the results are conveyed to company executives. The survey results are also used to run a PDCA cycle, leading to future planning that clarifies the scope of the audience and content of communications.
Plan
Plan based on employee feedback
Act
Implement improvement actions based on survey results
Do
Define audience and implement communication
activities
Check
Convey survey results to executives
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Employees` health and safety
Employees` health and safety policies and philosophy
To demonstrate that occupational health and safety are the top priorities in Nissan business activities regardless of country, region, or division, as well as cultivate a corporate culture that respects human health and safety in all aspects of business, we established the Global Policy on Occupational Health and Safety. Our Basic Policy states that lFrom top management to each individual employee, Nissan recognizes that the health and safety of everyone is our top priority. The company continuously and aggressively strives toward realizing zero-accidents, zero-illness, and vigorous workplace safety by optimizing the working environment and business processes and promoting individual physical and mental health.z Nissan also stipulates the following specific policies as the main items in eight areas, as well as the roles and responsibilities of all officers and employees regarding health and safety.
1. Compliance 2. Health and safety activity planning and monitoring 3. Preliminary health and safety evaluations when planning
equipment and operations 4. On-site partner company management 5. Health and safety education, work guidance 6. Accident reports and similar accident prevention
7. Health promotion 8. Infectious disease control At bases in Japan and overseas, Nissan uniformly implements management with regard to workplace environment health and safety based on the Global Policy on Occupational Health and Safety. Nissan places great importance on occupational health and safety promotion in the collective agreements concluded with labor unions and promotes various health and safety practices in the workplace.
Positioning of the Global Occupational Health and Safety Policy
Global Occupational Health and Safety (OHS) policy
Global common
OHS policy of region, site, plant
OHS management system
OHS Action plan of Function, region, site, plant
Objective(Outcome) Objective(Strategy)
Number of injury, fire absent rate, etc
Actual result of risk assessment, safety training, etc
Region
Hoshin Kanri Internal audit
*1In fiscal 2020, fiscal 2021, and fiscal 2022, the group meeting was suspended to prevent the spread of COVID-19 infection. *2ISO 45001: An international standard for occupational health and safety management systems.
Employees` health and safety management
In Japan, we hold a Central Health and Safety Committee meeting each year chaired by the executive in charge of human resources and attended by management and labor union representatives from Nissan facilities. Activities over the past year are reviewed in such areas as workplace safety, fire prevention, mental health, health management, and traffic safety, and then plans are laid out for the following year. The Health and Safety Committee at each facility meets each month, and these meetings are attended by labor union representatives. A health and safety officer and a traffic safety officer are assigned at each workplace to ensure the effectiveness of day-to-day safety activities. Globally, each facility applies the PDCA cycle. Twice a year, remote meetings with all global Nissan facilities are held to share information and discuss key issues. Regional managers for employee health and safety also meet every other year for a Global Safety Meeting.*1 Many facilities both in Japan and globally have introduced occupational health and safety management systems including the ISO 45001*2. These efforts create a strong structure for ensuring the implementation of employee health and safety activities. Such management systems cover all workers in the workplace. In addition, our Japan offices have been conducting management system evaluations for some
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
time. For our overseas offices, we conducted voluntary assessments at each office in fiscal 2022, and plan to do so through our Global Headquarters from fiscal 2023. All Nissan Group employees globally are subject to NS4*1, and all workers, including those from other companies on site, are subject to the serious accident count (GUR) to monitor workplace conditions.
Employees` health and safety achievements
Employee safety initiatives
Global standardization of occupational safety standards
Nissan has introduced its own safety and fire risk management diagnostic method to proactively identify potential occupational accident risks in the workplace and is taking measures to address them.
Creating safe workplaces
Two tools developed internally by Nissan to identify the risks associated with work accidents at all sites in Japan and overseas are the Safety Evaluation System (SES), and to identify the risks of fire accidents, the Fire-Prevention Evaluation System (F-PES). They call for workplace patrols in accordance with established evaluation standards to identify potential dangers and fire risks. The use of these has been effective in achieving these aims. Since 2011, we have continued to systematically carry out Kiken Yochi Training (KYT) literally lrisk-prediction trainingz at plants in Japan to raise awareness among individual workers of the risk of accidents and thereby help prevent their occurrence. Activities to prevent accidents through hazard prediction have taken root widely, where they are continuously and systematically implemented on equipment and operations in the workplace. We have established global common standards for reporting
on work accidents or outbreaks of fire that occur in any of the production sites. The person in charge where the accident or fire occurred must report without delay to Nissan Motor Co., Ltd. (NML). We promptly share information on the occurrence and response measures with our global sites to prevent the recurrence of similar accidents. Nissan has adopted the occupational accident frequency rate (FR1)*2 and serious accident count (GUR)*3 indicators for the purpose of comprehensive monitoring of occupational accidents and manages the progress of each. We have set the goal of continuously achieving an occupational accident frequency rate below the previous year`s results for the entire company and aim to reduce the number of fatal accidents to zero. As a result of monitoring in fiscal 2022, we confirmed that the occupational accident frequency rate was 0.91, lower than the previous year, and the serious accident count was 44, of which the number of fatal accidents involving employees was zero, but there was one fatal accident involving an onsite cooperating company. As a result of this, the risk assessment procedures for tasks handled by onsite cooperating companies have been strengthened.
*1NS4 (Nissan Safety 4): Internal KPI for monitoring workplace health & safety. *2Occupational accident frequency rate (FR1: Frequency Rate 1): Frequency rate of accidents with predefined symptoms (Number of accidents with predefined symptoms) x 1,000,000/ total working hours x 1.1 *3Serious accident count (GUR): Fatal accidents (G: Grave), accidents resulting in residual disability (U: Unrecoverable), number of serious injuries with no aftereffects but with predefined symptoms (R: Recoverable but serious)
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Occupational accident frequency rate and serious accident count (Global)
(Incidents)
60
1.5
50 1.18
1.2
40
0.98 0.91
0.9
30
20
51
39
44
0.6
10
0.3
0
0
2020 2021 2022 (FY)
Serious accident count (GUR)
Occupational accident frequency rate (FR1)
Improved production line environment
Nissan seeks to fulfill its mission of engaging in lhumanfriendly productionz by continuously improving the workplace environment at its manufacturing facilities worldwide. At workplaces with high summer temperatures, for example, the physical burden on employees is heavy and there is the risk of suffering from heatstroke. We have installed internal cold-air ducts and ensured there are set breaks to drink water, particularly in locations with considerable workloads. Constant improvements are being made to allow employees to work in a comfortable environment.
Countermeasures against COVID-19
Nissan formulated and implemented its Global Guidelines for COVID-19 Countermeasures to protect employees and their families from infection with preventative measures aimed at avoiding the spread of COVID-19 infections both within the company and in wider society.
Employee health promotion and management
Basic approach
In accordance with its global policy, Nissan considers the health and safety of employees to be not only an issue for individuals but also an important issue for Nissan to grow as a company that continues to contribute to society. In the Basic Policy on Health and Safety, we make the Health Declaration: lHealth and Safety is a core value and the highest priority at Nissan.z We are thus working on the realization of health and productivity management, in which we consider the health of our employees from a management perspective and implement measures strategically and honestly.
Nissan`s health and productivity management
Contribution for society
Work productivity
Individual Capability
Improvement of brand value &
Better individual performance performance
Mental health
Physical health
Vibrant and fulfilling
workplace
Diet / Sleep / Exercise / Non-smoking /
Stress tolerance
Better corporate performance
New workstyle Promoting health Improving working
culture Maintain work environment
Risk management
Diversity Physically and psychologically safe and healthy workplace
Shared core value
Health and safety is our core value and top priority
Coordinate Coordinate
Organizational Capability
Organizational structure for health promotion
Nissan`s health promotion activities are carried out to promote the physical and mental health of employees in cooperation with the Nissan Health Insurance Association (Workplace Health Promotion Center), Tokio Marine & Nichido Medical Service Co., Ltd., the Health and Safety Departments of both headquarters and related departments at each site, and other medical professionals.
Promotion structure
Nissan Motor Co., Ltd.
Nissan Health Insurance Association
HR Department, local HR
Diversity Development Office
Sustainability Development Department
Executive
Coordinate
Chairman
HR Division Safety & Health Administration Department
Chief Industrial Doctor
Health Promotion
Offices
Business Departments
Local Health and Safety Administration Industrial Doctor
Tokio Marine & Nichido Medical Service
EAP Employee Assistance Program
Local Health and Safety Promotion Center (In-site clinic)
Affiliate companies
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Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Approaches to health issues
Under the health promotion organization in Japan, we visualize the health status of employees through data, and based on the data we analyze and predict the risk of disease, then implement health promotion activities and individual improvement programs. In order to engage in more effective efforts, we create a health management strategy map to visualize company health issues and promote companywide efforts, while also creating strategy maps for each site to conduct health promotion activities incorporating regional characteristics and conditions at each site. We also hold regular meetings on health management to strengthen the implementation of health promotion efforts.
Companywide medium-term business plan efforts
Health Management Strategy Map
Health issues
Health investment efficacy
Health investments
Indicators regarding Indicators on
health investment employee awareness
implementation
and behavioral
efforts
changes
Indicators on health-related
targets
Management issues to resolve with health
management
Increase in mental health leaves
Increased risk of specified diseases (similar to lifestyle-related diseases)
Implement activities based on health management promotion
Create healthy people
Health investment outcome indicators
· Event participation rates
· Follow-up on results of health checks
· Improved activity rate based on results of stress checks, etc.
· Health surveys
· Improvements in diet, sleep and exercise
· Increase number of thorough medical exams
· Increased satisfaction due to expansion of work-life balance support
· Implement survey after workplace improvement activities, etc.
· Improve work engagement *1
· Improve health literacy *2
· Reduce presenteeism *3
· Reduce absenteeism *4
Realize corporate purpose
Realization of a company where each person can work energetically
Leveraging the best characteristics of each site so the entire company can work as one
Promoting health activities based on strategic maps at each site
Solid efforts toward physical healthcare
In Japan, Nissan is focusing efforts on the following physical healthcare initiatives:
Disease prevention
Employees
Managers & supervisors
Professionals HR and H&S and medical
institutions
Primary Prevention Not to get ill
Health promotion activities targeting COVID-19 Collaborative health
Health literacy improvement activities Introduction and utilization of the health application "Pep Up" Approach to exercise, sleep, and diet Smoking cessation activities
Collaborative health
Early detection
Secondary Prevention Likely to get ill
Enhancement of healthcare guidance based on the results of regular health examinations Specific health guidance Health promotion activities for under 40-year-olds
Thorough promotion of detailed medical exams
High-risk approach in line with business-site specific issues in medical examination results
Disease treatment
Tertiary Prevention After getting ill
Enhancement of balanced support
Due to lifestyle changes caused by COVID-19, weight gain became noticeable in fiscal 2020 medical examination data.
Company-wide and facilityspecific walking rally events
Online exercise video streaming
Onsite exercise lessons
3 Level prevention Workplace culture improvement
Data health
We will also continue the steady implementation of physical health care, including preventing illness through a heightened awareness of health, while reducing the number of employees taking leave by strengthening efforts toward the early detection of illnesses through medical examinations and treatments supporting a work-life balance. In this way, we will realize workplaces where all employees can work with enthusiasm.
Comprehensive mental healthcare
Mental healthcare in Japan includes the following features:
Four types of care
Self-care by employees
Line care by managers & supervisors
Zone care by HR and H&S
Professionals and medical organizations
Disease prevention
Primary Prevention
Not get ill
Training / learning Stress check Counseling
Early detection / Treatment
Secondary Prevention
Likely to get ill
Training / learning Stress check Counseling
Disease management / Reinstatement /
Tertiary Prevention
Relapse prevention
After getting ill
Reinstatement program
Work rehabilitation
Stress check report Workplace consultation Managers meeting Study session Hotline experience Supervisor zone care
Achieve the lFour Types of Carez and lPrimary, Secondary, and Tertiary Preventionz within the EAP *5
* Enhancement of lself-carez through implementation of stress checks
* Promotion of lline care,z workplace climate improvement
*1Work EngagementA positive and fulfilling psychological state related to work, meeting the following three criteria: lWork makes me feel energetic and alivez (vitality) lI am proud and feel my work is rewardingz (enthusiasm) lI am enthusiastic about my workz (devoted) *2Health LiteracyThe power to determine one`s health by making decisions based on health information, defined as follows:
Knowledge, motivation and ability to obtain, understand, evaluate and utilize health information Judgment and decision-making regarding healthcare, disease prevention and health promotion in everyday life Maintaining and improving quality of life throughout one`s lifetime *3PresenteeismDespite being in poor health, employees come to work, and efficiency suffers as a result. *4AbsenteeismChronic leave-taking or absence from the workplace due to poor mental or physical health that prevents work from getting done. *5EAPEmployee Assistance Program
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Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
activities based on the results of in-house questionnaires * Introduction of stratified lzone carez * Comprehensive reinstatement support program * Enhanced prevention of recurrence through in-house
rework facility
For many years, Nissan has been proactively working on line care, which is an improvement in workplace culture, by analyzing stress levels through using in-house questionnaires.
Number of debriefing sessions on results of organizational analysis
(Sessions) 250
200
230
150
108
100
76
50
49
22 22
0 2017 2018 2019 2020 2021 2022 (FY)
Debriefing sessions on the results of organizational analysis are held in all departments. In promoting improvement activities, the point is for superiors (managers, supervisors) to acknowledge the results of their own organizational analysis and motivate activities according to the results.
Accordingly, in recent years, Nissan has been expanding improvement activities by holding organizational analysis result report meetings in as small a format as possible, rather than being particular about departmental or divisional level meetings.
Scene from a debriefing session
Amid close examination of organizational analyses and the promotion of activities, recent mental health leave numbers and the stratified analysis of stress levels reveal a remarkable need for care among some employees. Nissan calls this lzone carez and has recently implemented the following:
Hotline experience for new graduate and mid-career hires
Online sessions for indirect employees Youth round-tables, sessions Round-tables and coaching activities as a supervisor
zone care
In addition to self-care and line care (vertical axis), we will work on improving mental health along the horizontal axis as zone care
Line care
Zone care
Supervisor
Examples
Supervisors, Senior managers, etc.
Axis of workplace improvements up
to now
Care based on the creation of opportunities for horizontal cooperation and empathy,
where feelings can be expressed in the same position and environment.
Subordinates Self-care
Examples
New employees (within first 3 years), female direct workers, instructors, etc.
Social evaluation of health promotion activities
In Japan, Nissan positioned the excellent health management corporation certification system of the Ministry of Economy, Trade and Industry as our health management system, and we have been promoting health improvement activities accordingly. As a result, Nissan has been certified as an excellent health management corporation since 2019. In 2022, the Japan Sports Agency certified Nissan as a Sports Yell Company actively engaged in sports to improve the health of employees.
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Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Community engagement
Community engagement policies and philosophy
In addition to delivering innovative, exciting vehicles and outstanding services to customers worldwide, Nissan believes it is important to play an active role as a community member, applying its special characteristics to contribute further to society. When a company provides a range of resources to communities, supporting their development and proactively tackling issues, it is, in part, fulfilling its social responsibility as a good corporate citizen. Such actions also benefit the company`s own operations, fostering a better business environment and creating new markets that can grow sustainably. We work with a variety of stakeholders, both governmental and nongovernmental, pooling our respective strengths to address increasingly complex social issues. In line with Nissan`s corporate social contribution policies, regional offices and affiliates work on initiatives that address issues relevant to their operations and the communities in which they operate.
Nissan`s approach to community engagement
We reviewed our policies for social contribution activities in 2017, deciding to push forward with activities focused on the three areas of zero emissions, zero fatalities and zero inequality. In addition to zero emissions and zero fatalities, areas where any automotive manufacturer should make sincere efforts, we are promoting zero inequality (in other words, diversity and inclusion) as an important corporate value with the aim of realizing a cleaner, safer, and more inclusive society where everyone is given equal opportunities. We will not only provide financial assistance for activities in these areas but also ensure that those activities are ldistinctly Nissan,z making full use of our automotive heritage, expertise, products, and facilities. We emphasize communicating and working with specialized NPOs and NGOs that have extensive expertise in their fields to ensure that their social contributions are effective. We actively support the involvement of our employees in social contribution activities.
Blue Switch Program: Contributing to Sustainable
and Resilient Society with EVs
Launched in Japan in 2018, Blue Switch is a program to promote the use of electric vehicles (EVs) to address local issues, such as disaster relief, energy management, tourism, and other points, in collaboration with local governments and companies. Since Nissan launched the Blue Switch initiative in Japan, 216 cooperations have been realized with local governments and private companies to collaborate on projects as of the end of March 2023, and many more regional partnerships are planned. In January 2022, Nissan launched Blue Switch in the ASEAN regionthe first expansion outside Japan starting in Thailand and the Philippines. As a pioneer in EVs, Nissan is committed to promoting new ways to use them to contribute to a cleaner world and a sustainable society.
*1Click here for information on Blue Switch Program. Japanese Onlyhttps://www3.nissan.co.jp/first-contact-technology/blue-switch.html
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Community engagement management
Nissan`s production sites have expanded globally, increasing the company`s engagement with various communities through its businesses. Nissan is active in promoting social contribution activities and recognizes that contributing to the development of communities by sharing its own management resources also enhances the business environment and promotes market growth. In such activities, policies are decided at the global level and implemented in each region. We developed a wide range of activities to meet the needs of regions centered on the three focus areas of zero emissions, zero fatalities, and zero inequality that were set forth in the policy revision of 2017.
Company organization for community engagement
Nissan`s corporate social contribution policies are discussed and approved by the Global Sustainability Steering Committee*1 and shared globally. These corporate policies provide the basis on which initiatives are implemented across each country and region.
Three focus areas for Nissan`s social contributions program
Zero emissions Nissan`s environmental philosophy is la Symbiosis of People, Vehicles, and Nature.z We actively engage in efforts to reduce the environmental burden on the planet and prioritize the environment in our social contribution activities. Central to our approach are educational programs that cultivate
a deeper understanding of environmental issues toward achieving a decarbonized society.
Zero fatalities In addition to making vehicles safer through autonomous driving technology, we also promote traffic safety through activities to raise the safety awareness of drivers and pedestrians and to protect the socially vulnerable, including children and senior citizens.
Zero inequality We embrace diversity as a management strategy in recognition of its crucial role in boosting corporate competitiveness. Nissan`s social contribution activities share this awareness and are aimed at mitigating poverty, providing assistance to the financially and socially disadvantaged, and sending emergency relief to disaster-stricken communities. *2
Nissan as a community member
We aspire to be a good corporate citizen that people are glad to have in their community. As such, we strive to be a valuable member of and active contributor to local communities wherever we operate. We support communities in a variety of ways, such as by assisting with local events, sponsoring neighborhood cleanups and other environmentimprovement activities near Nissan facilities, and opening those facilities to public tours. Many employees actively participate as volunteers. We engage in activities during ordinary times and also contribute to resolving social issues by supporting local communities during the natural disasters and pandemics that occur with frequency around the world.
*1Click here for more information on the Global Sustainability Steering Committee.>>> P010 *2Click here for more information on diversity, equity and inclusion.>>> P079
Contributing to local communities: Achievements
Social contribution achievements in fiscal 2022
Global social contributions (Fiscal 2022): 2.79 billion yen Social contributions include:
Expenses for implementing philanthropic activities (excluding labor costs)
Monetary donations and NPO membership fees for philanthropic purposes
Cash equivalents of in-kind donations Sponsorship fees for philanthropic initiatives
Breakdown of Fiscal 2022 global social contributions
Philanthropic activities
Monetary donations
In-kind donations (cash equivalent)
Sponsorships, etc.
Amount (¥ million) 918
1,580 67
227
% of total 32.9 56.6 2.4 8.1
Total
2,792
100
<Other humanitarian support> Nissan announced an aid package of up to 1 million to support the humanitarian crisis caused by major earthquakes in Turkey. 750,000 out of 1 million was donated to Turkish Red Crescent . Additional funds of up to 250,000 are matching donations from its employees and partners who want to help directly.
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Contents
Social policies and philosophy
Corporate direction
Human rights
Traffic safety
Environmental
Diversity, equity and inclusion
Product safety and quality
Social
Supply chain management
Human resource development
Governance Labor practices
Data
Employees' health and safety
Community engagement
Social contribution achievements *1
Even though the COVID-19 pandemic continued in 2022, Nissan provided environmental education and leadership development activities for children in each country to meet the needs of local communities, while making efforts to minimize the risk of infection through utilizing online activities and other means.
Leadership Development Program for Teenagers in Cooperation with Care International Japan (Thailand) Since 2017, we have been offering programs for middle and high school students in Ayutthaya, Rayong and Samut Prakan provinces to develop leadership, teamwork, and other qualities necessary to be leaders in community development, as well as incorporating elements of science, technology, engineering, and mathematics (STEM*2).
Achievements
Cumulative number of students participating: 2,237
School-visit Program for Environmental Education: Nissan Waku-Waku Eco School (Japan)
The program promotes understanding of global environmental issues, introduces Nissan`s environmental initiatives, and provides participants with experience of the latest green technologies through test ride in the Nissan LEAF and other activities.
Achievements
Number of schools visited: 90 (FY2022) Cumulative number of participants: 124,348 Recipient, 29th Yokohama Environmental Activity Award
Educational Support for Children and Youth: Nissan Dream Classroom (China)
Nissan Dream Classroom, an educational program to support elementary school students, has been implemented since 2013. The program has gradually expanded its content and regions of operation, and now offers a wide variety of lessons including the environment, manufacturing, design, painting, intelligent driving, and the fundamentals of automotive culture and engineering.
Achievements
Cumulative number of students participating: Over 2 million Winner in 3 divisions, FY2022 CSR China Education Special Award
Partnership with Habitat for Humanity (U.S. and Canada)
Since 2005, we have continued to partner with the NGO Habitat for Humanity (Habitat), an international aid organization that has a vision of la world where everyone has a decent place to livez. The nonprofit works to build homes and support self-sufficiency in more than 70 countries around the world. NNA and NCI employees have volunteered at Nissan-funded build sites.
Achievements U.S.
Cumulative number of hours of employee participation: Over 110,00
In 2022, we participated in the construction and handover ceremony of 4 residences
Cumulative donations: Over $19 million
Providing Educational Opportunities to Children: Nissan Skills Foundation (U.K.)
Established in 2014, the Foundation has provided school children with Nissan`s own environment and monozukuri programs, as well as supported local teams in schools through three external international STEM*2 education programs: VEX IQ Robotics, FIRST LEGO League, and F1 by providing equipment, funding, and knowledge.
Achievements
Cumulative number of students supported: Over 80,000
*1Click here for more information on social contribution activities in each country.https://www.nissan-global.com/EN/SUSTAINABILITY/SOCIAL/CITIZENSHIP/ *2STEMScienceTechnologyEngineeringMathematics
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Contents
Corporate direction
Governance policies and philosophy
Governance
Environmental Corporate governance
Social Risk management
Governance
Key areas
Sustainability vision
Main goals / approaches for 2022
Corporate governance
We address improvement of corporate governance as one of its most prioritized managerial tasks
Related materiality issues
Governance, regulations, and compliance
Risk management Compliance
Achieve benchmark levels for maintenance and enhancement of information security, prevention of information leaks, damage limitation and maintenance of transparency in the event of leaks
Achieve benchmark levels for maintenance and enhancement of information security in each area, including new environments and areas
Risk hedge for physical hazards
Privacy & data security
A fully functioning framework for the prevention of conduct violations and for compliance at Nissan globally
Enhance monitoring of each compliance risk area, and establish framework to oversee progress of each monitoring activity
Enhance third-party compliance system to ensure entire Nissan business process is compliant
Governance, regulations, and compliance
Data Compliance
SDG areas where Nissan mainly adds value
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Governance policies and philosophy
Governance policies and philosophy 121 Corporate governance 122 Risk management 132 Compliance 134 Governance data 163
In addition to the semiconductor shortage, geopolitical risks escalated with the Russia-Ukraine conflict. Exchange rate volatility and the weakened yen resulted in prices of raw materials and energy to increase. In addition, electrification fragmented markets. It was a year of unprecedented challenges. The Inflation Reduction Act enacted in the United States includes tax credits for the purchase of electric vehicles, which is likely to accelerate electrification in the United States. Also, the business environment in China is undergoing major changes. As such, finely tuned management is required for companies. In order to create unique and innovative automotive products and services, and deliver superior measurable value to all stakeholders, Nissan will enrich people`s lives as a company that is trusted by society, and address improvement of corporate governance*1 as one of its most prioritized managerial tasks. In addition to addressing risks and opportunities associated with climate change, we will conduct our business while considering society`s expectations and our social responsibilities and devote ourselves to the development of a sustainable society by aiming for sustainable growth of our business. To be a sustainable company, Nissan must display a high level of ethics and transparency, as well as a strong foundation for the organization. It is also expected that we will actively disclose our initiatives to this end. We have extensive global operations with numerous stakeholders around the world.
It is essential that we continue to earn their trust while ensuring the high ethical standards and compliance of all employees. In 2001, we established the Global Code of Conduct*2, which is rigorously followed by Group companies around the world.
*1Click here for more information on the Corporate Governance Guidelines.https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/Guidelines_EN.pdf *2Click here for more information on the Global Code of Conduct.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/NISSAN_GCC_E.pdf
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Contents
Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Corporate governance
Corporate governance system
Nissan has caused inconvenience and concern to its stakeholders due to the misconduct by the former management that occurred in 2018. We recognize that this was caused by an excessive concentration of authority and a lack of transparency in governance, and we are working to prevent a recurrence by raising awareness within the Company and improving governance to ensure that this will not recur. Nissan has selected a lcompany with three statutory committeesz as its governance system, which clearly separates execution, supervision, and auditing. It ensures transparency in decision-making, prompt and flexible business execution, and the effectiveness of internal control, compliance, and risk management systems. The Board of Directors has a majority of outside directors. Outside directors make up the majority of each committee, with the Compensation Committee is comprised only of outside directors. Similarly, the Chair of the Board of Directors and each committee chair are independent outside directors. We announce clear management targets and policies to all stakeholders and disclose our performance promptly with a high degree of transparency. We have established a governance system that maintains sound management. The system allows us to implement various monitoring systems, as well as to assess and manage internal and external risks that could impact the achievement of our business goals.
Corporate governance is an important fundamental for Nissan. In order to make it effective, we also work on awareness-raising for employees and business partners to ensure that it permeates throughout the organization. Under our long-term vision Nissan Ambition 2030, we aim to transform Nissan into a sustainable company that is truly needed by its customers and society, by expanding the opportunities of mobility and society while delivering exciting electrified vehicles and technological innovations. We are committed to regaining the trust of our stakeholders by changing our corporate culture, acting with transparency and an attitude of respect and deference, from executives to employees.
Role of the Board of Directors
General Shareholders Meeting
SUPERVISING ROLE
Responsible Board of Directors
Nomination Committee Compensation Committee Audit Committee
EXECUTING ROLE
Supervise
Report & proposal
Executive Officers
Execute or delegate Perform & report
Corporate officers and other employees
Roles of the Board of Directors
The Board of Directors has primary responsibility to shareholders for the welfare of the company.
The Board of Directors, led by the independent outside directors, decides the basic direction of management by taking a variety of perspectives into account and plays the role of supervising the executive directors.
Major authorities of the Board of Directors
Basic management policy
Medium-term plan / annual business plan Strategic / important alliances
General Shareholders Meeting
Convocation Agendas
Appointment of board chair and representative
executive officers
Appointment /dismissal Appointment / dismissal of executive officers
Appointment / dismissal of committee chair and
committee members
Finance
Financial statement Dividends
Others
Basic policy for internal control, etc.
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Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Board of Directors system
The Board of Directors led by independent outside directors, decides basic management policies by taking a variety of perspectives into account and plays the role of supervising the execution of duties by executive directors and other officers. A majority (six) of the 10 members are independent outside directors, including the Chairman of the Board, creating an environment driven by independent outside directors. Each director has diversity *1 in terms of nationality, gender, specialization or other traits, and Nissan aims to realize lively discussions and swift decision-making through their inclusion.
Signifcant items
The Company positions Sustainability, Risk management, and Internal control/Compliance as important matters that affect the management of the Company, and has established and operates processes for communicating these initiatives to the Board of Directors in accordance with the policies and structure stated as below. Following items were reported to the Board of Directors during fiscal 2022, and it was confirmed that there are no critical concerns.
Sustainability
Policies and structure Corporate Governance Guidelines*2 (Chapter III
Appropriate Cooperation with Stakeholders)
Items reported to the Board of Directors Report on the Sustainability Report: 1 time Business execution report: 6 times (Global and regional
operations, electrification, DX, etc.)
Risk management Policies and structure Corporate Governance Overview *3 (Corporate risk
management, annual process of corporate risk management) Items reported to the Board of Directors Corporate Risk Management Report: 1 time
Internal control/Compliance Policies and structure Corporate Governance Report *4 (IV-1. Internal Control
System) Corporate Governance Overview*3 (Nissan corporate
structure, internal control, compliance system)
Items reported to the Board of Directors Internal Control Report: 2 times Audit Committee Report: 2 times Corporate Governance Report approval: 1 time
Data Compliance
*1Click here for more information on diversity.>>> P079 *2Click here for more information on the Corporate Governance Guidelines.https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/Guidelines_EN.pdf *3Click here for more information on the Nissan Corporate Governance Overview.https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/Overview_EN.pdf *4Click here for more information on the Corporate Governance Report.https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/g_report.pdf
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Contents
Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Board of Directors skills matrix
The Board of Directors skills matrix is as follows.
Board of Directors skills matrix (As of July 1st, 2023
Global Management
Automobile Industry
Government
Legal / Risk Management
Finance / Accounting
ESG
Products / Technology
Sales / Marketing
Digital Transformations
1
Yasushi Kimura
2 Jean-Dominique Senard
3
Keiko Ihara
4
Motoo Nagai
5
Bernard Delmas
6
Andrew House
7
Pierre Fleuriot
8
Brenda Harvey
9
Makoto Uchida
10 Hideyuki Sakamoto
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Board members` responsibilities and duties as of July 1st, 2023
Independent outside director
Director
Yasushi Kimura
Jean-Dominique Senard
Bernard Delmas
Keiko Ihara
Independent outside director,
chair of the board of directors
Director,
vice-chair of the board of directors
Independent outside director,
lead independent outside director
Independent outside director,
chair of Compensation Committee
Nomination
Audit Director since June 2019
Nomination
Director since Apr 2019
Compensation
Audit Director since Jun 2019
Nomination
Compensation Director since Jun 2018
Motoo Nagai
Independent outside director, chair of Audit Committee
Nomination Compensation
Audit Director since Jun 2019
Andrew House
Independent outside director, chair of Nomination Committee
Brenda Harvey
Independent outside director
Nomination
Compensation Director since Jun 2019
Audit
Director since Jul 2023
Pierre Fleuriot
Director
Audit Director since Feb 2020
Makoto Uchida
Director, representative executive officer, president and CEO
Hideyuki Sakamoto
Director, executive officer, executive vice president
Director since Feb 2020
Director since Feb 2020
Board features as of July 1st, 2023
Highly independent representation in Board and committee composition
All chairs of the Board of Directors and three committees are independent outside directors.
Board of Directors
Majority of the Board of Directors (6 out of 10) are independent outside directors*1 *2
Committee
Nomination Committee : Majority (4 out of 5) are independent outside directors
Compensation Committee : All (4 out of 4) are independent outside directors
Audit Committee : Majority (4 out of 5) are independent outside directors
Diversity of nationality and gender
Nationality
4 Nationalities
Gender
20%
Female
Female 2
Male 8
*1Click here for more information on each member of the Board of Directors.https://www.nissan-global.com/EN/COMPANY/PROFILE/EXECUTIVE/ *2Click here for reasons of appointment of Board members, on the Corporate Governance Report, Outside directors` relationship with the Company(2).https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/g_report.pdf
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Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Director independence standards
To ensure highly independent representation on the Board of Directors, Nissan strictly defines the qualification of independent directors. They must not fall into any of the following categories: *1
Prohibited categories
1 Executive or employee of Nissan (within last 10 years)
2 Major shareholder of Nissan (within last 5 years)
Director, corporate auditor, statutory accounting advisor 3 or executive of a company of which Nissan is a major
shareholder
4 Major business partner of Nissan
5
Executive of an organization that received a significant amount of donations and contributions from Nissan
Director, corporate auditor, statutory accounting advisor or 6 executive of a company that has a director who was seconded
from Nissan
7 Major creditor of Nissan
8
Certified public accountant or tax attorney appointed as statutory accounting auditor / advisor of Nissan
Attorney, certified public accountant, tax attorney or any other
9 type of consultant who has received significant business from
Nissan
Member, partner or any other executive of an accounting
10 firm, tax firm, or consulting firm that has received significant
business from Nissan
11 Family member of any of the above categories
12
Person who has served as director of Nissan (for more than 8 years)
13
Person who may otherwise consistently have substantial conflicts of interest with the shareholders of Nissan
Status of the Board of Directors` activities in fiscal 2022
The Board of Directors resolves important matters related to Group management based on laws and regulations of the Board of Directors itself, including drafting proposals for the General Meeting of Shareholders, selecting members for each committee, preparing quarterly and full-year financial statements and formulating business plans and product strategies. In the fiscal year under review, agenda item submitted to the Board of Directors included the following. Business execution status update and progress report on
the Nissan NEXT transformation plan Confirmation on new Alliance framework agreement Report on withdrawal from Russian business Activity report on internal control and risk management Revisions to the Corporate Governance Report, etc. Additionally, to enhance the Board of Directors discussions, regular meetings with outside directors that are chaired by the lead independent outside director are held to discuss a wide range of matters related to Nissan corporate governance and business. Major activities during the fiscal year under review included multiple discussions with the executive side to agree on a new Alliance framework announced on February 6, 2023, and the subsequent conclusion of individual agreements based on that framework. Also, two meetings were held during the fiscal year under review between the independent outside directors and the independent auditors to exchange opinions on sustainability disclosure and supply chain trends associated with the recent geopolitical risks. *2
Nomination Committee system and authority
Authority / Role
To determine the content of the General Shareholders Meeting agenda concerning the appointment and dismissal of directors as provided for in the Corporate Law
To determine the content of the Board of Directors` meeting agenda concerning the appointment and removal of the representative executive officer
To formulate an appropriate succession plan regarding the president and CEO and review it at least once a year
RESOLUTION ITEMS
Proposal of election / dismissal of director candidates Proposal of election / removal of representative executive
officer Succession plan for CEO Proposal of appointment / dismissal of Board of Directors`
chair and vice chair Proposal of appointment / dismissal of committee chair and
members
As of March 31, 2023, the Nomination Committee chaired by independent outside directors consists of six directors, five of whom are independent outside directors (of whom one is a woman). The committee has the authority to determine the content of the General meeting of shareholders` agenda concerning the appointment and dismissal of directors. In addition, the committee has the authority to decide on the content of the Board of Directors` meeting agenda concerning the appointment and dismissal of the representative executive officer and the authority to formulate an appropriate succession plan regarding the president and chief executive officer.
*1All items stated above are summaries of the full qualifications as defined in Nissan director independent standards. Click here for more details of each categorieshttps://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/Standards_EN.pdf *2Click here for more information on the Board of Directors` activities in fiscal 2022.>>>P163
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Contents
Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Nomination Committee: Number of meetings and participation rate in fiscal 2022
The Nomination Committee met 9 times in fiscal 2022.*1 Average participation per meeting was 100%.
Main activities in fiscal 2022
Deliberated proposals for representative executive officer appointments
Deliberated proposals for director appointments / dismissals at the 124th Ordinary General Meeting of Shareholders
Deliberated president and chief executive officer succession plan
Compensation Committee system and authority
Authority / Role
To determine the policy of individual compensation of the company`s directors and executive officers and the contents of individual compensation for directors and executive officers
To determine the aggregate and individual amounts of director and representative executive officer compensation
Resolution Items
Policies and systems regarding compensation for directors and executive officers
Specific amount or (in the case of noncash compensation) specific content of compensation for each individual director and representative executive officer
Specific amount or content of compensation for each individual executive officer
As of March 31, 2023, all four members of the Compensation Committee are independent outside directors (of whom two are women), including the chair. The Compensation Committee has the statutory authority to determine the policy of individual compensation of the company`s directors and executive officers and the contents of individual compensation for directors and executive officers.
Compensation Committee: Number of meetings and participation rate in fiscal 2022
The Compensation Committee met 12 times in fiscal 2022.*2
Average participation per meeting was 100%.
Main activities in fiscal 2022
Confirm a policy for compensating directors and executive officers
Select benchmark companies and discuss the level of compensation based on the benchmark results of these companies and the results of surveys conducted by external compensation consultants
Determine the aggregate and individual amounts of director and executive officer compensation for fiscal year *3 *4
*1From April 1, 2022 to March 31, 2023 *2From April 1, 2022 to March 31, 2023 *3Click here on the 2022 Securities Report (P67-76), for details on the performance indicators of the compensation program.https://www.nissan-global.com/EN/IR/LIBRARY/FR/2022/ASSETS/PDF/fr2022.pdf#page=69 *4Click here for more information on the executives` role and performance assessment.>>> P010
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Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Audit Committee system and authority
Authority / Role
To audit (monitor and supervise) executive officers` business execution and directors` performance of their duties
To make executive officers and employees / subsidiaries report on business execution and investigate the status of operation and financial conditions
To seek injunctions against illegal acts of directors, executive officers, and employees
To produce annual audit reports To select / dismiss external auditors (Appointed Audit
Committee member) to represent the company in any litigation brought against directors / executive officers
Resolution Items
Annual audit reports to be submitted to shareholders meeting Audit policy / rules and annual audit plan / budget of the
Audit Committee Proposal for shareholders meeting concerning the
appointment / dismissal of external auditors Assignment of staff employees of Audit Committee secretariat Annual audit plan, budget and HC of Global Internal Audit
Office, assignment and evaluation to the head of Global Internal Audit Office Filing of litigation against directors / executive officers
As of March 31, 2023, the Audit Committee chaired by independent outside directors consists of five directors, four of whom are independent outside directors (of whom one is a woman). As part of audits on business execution including the organization and operation of Nissan`s internal control systems, the Audit Committee receives reports from executive officers, corporate officers, and employees on their
business execution for Nissan and its group companies, in accordance with the Audit Committee`s annual audit plan and on an ad-hoc basis as necessary. In addition, the Chair has meetings with executive officers including the president and chief executive officer periodically and exchanges opinions in various areas. Furthermore, the Chair attends important meetings, etc., to state his opinions, reviews internal approval documents and other important documents, and, when necessary, requests explanations or reports from executive officers, corporate officers, and employees. The Chair shares his collected information with other members of the Audit Committee in a timely manner. The Audit Committee, in conducting its audits, cooperates with the internal audit department and the independent auditors in an appropriate manner, making efforts to enhance the effectiveness of ltri-partiesz audit. Under the leadership of the Audit Committee, collaboration among three parties is contributing to the enhancement of the effectiveness of internal control systems by sharing information on the issues pointed out by their respective audits and the status of their remediation in a timely manner. Furthermore, the Audit Committee supervises the internal audit department, periodically receives reports from them on the progress and results of their internal audit activities conducted in accordance with their internal audit plan and, as necessary, gives them instructions regarding internal audit. The Audit Committee is the contact point for whistleblowing with doubts regarding the involvement of management such as executive officers, and deals with whistleblowing by establishing a system where relevant executive officers cannot know the whistleblower and the content of whistleblowing.
Audit Committee: Number of meetings and participation rate in fiscal 2022
The Audit Committee met 12 times in fiscal 2022 Average participation per meeting was 100% *1
Main activities in fiscal 2022
During the fiscal year under review, the Audit Committee designated the following as priority audit items, and each was reviewed and deliberated at committee meetings and other forums. Recommendations were made to the execution team and others as necessary. *2
Monitoring of business execution by executive officers, etc. Receive reports on and appropriately monitor the status
of progress of the Nissan NEXT transformation plan as well as major management issues such as sales quality improvement and electrification initiatives and issues and semiconductor shortages and supply chain disruptions and other challenges facing the company. Confirmation of activities of the internal audit department Have the internal audit department attend Audit Committee meetings frequently so committee members can receive reports on major audit findings and to identify problems as early as possible. In addition, direct the internal audit department to closely follow up on the implementation of corrective action plans based on these findings to ensure that the execution team faithfully implements them.
*1From April 1, 2022 to March 31, 2023 *2Click here on the 2022 Securities Report (P64), for details on the status of the Audit Committee` major activities in every month of this fiscal year.https://www.nissan-global.com/EN/IR/LIBRARY/FR/2022/ASSETS/PDF/fr2022.pdf#page=66
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Supervision of the operation of internal control and risk management systems In addition to regular activity reports on the overall
operation of the internal control system, the Audit Committee also receives individual reports on key items such as the integrated risk management system, cyber security, and group governance. Furthermore, the committee directs the internal audit department to conduct audits of each department in charge of these items to appropriately supervise the operation of such matters.
The committee conducted the following activities during the fiscal year in addition to the above-mentioned priority audit items.
Response to fraud cases Responded to a lawsuit for damages filed against the
former chairman and former representative director and took other appropriate measures to pursue accountability and recover damages for serious misconduct by the former chairman and others. Deepening ties with accounting auditors In addition to receiving reports from the accounting auditors on the results of their quarterly reviews during the fiscal year under review, the Audit Committee exchanged opinions with the accounting auditors on key audit matters (KAMs) and the impact of stricter regulations on accounting auditors. The committee also verified the appropriateness of the accounting auditors` audit quality from various perspectives. Initiatives to strengthen group internal controls The Audit Committee conducted on-site inspections of
sites and major subsidiaries in Japan and overseas (5 sites and 23 companies) (on-site visits were resumed). The committee holds a semi-annual liaison meeting for auditors of group companies with the aim of improving the quality of audits at each group company.
Executive officer system
Executive officers decide on business activities which are delegated in accordance with the resolutions of the Board of Directors and execute the business of the Nissan Group. Several conference bodies have been established to deliberate on and discuss important corporate matters and the execution of daily business affairs. Furthermore, in the pursuit of more efficient and flexible management, the authority for business execution is clearly delegated as much as possible to corporate officers and employees. As of March 31, 2023, six executive officers (including two representative executive officers) have been appointed. *1
Basic principles of the internal control system
We aim to provide superior value to all stakeholders, consider healthy governance the foundation for this, and are engaged in a range of activities to achieve it. In line with this principle, and in accordance with Japan`s Companies Act and its related regulations, the Board of Directors has decided on internal control systems to pursue these goals and its own basic policy. The Board continually monitors the status of implementation regarding these systems and the policy, making adjustments and improvements if necessary. The internal control system that was established in 2007 is
chaired by the CEO under the monitoring and supervision of the Board of Directors. All executive officers, corporate officers, and departments, as well as group companies, cooperate closely under the CEO to improve the internal control system. *2
Audit system
We have adopted a system under which the outside directors, Auditing Committee, department for internal audit, and outside accounting auditors coordinate to improve the effectiveness of our internal control systems. Independent outside directors lead the Board of Directors, deciding the basic direction of management and supervising the execution of duties by directors, executive directors, and others with similar responsibilities. The Audit Committee takes charge of the department for internal audit and instructs it with regard to auditing, and the department for internal audit shall report to the Audit Committee the status of the performance of duties and any findings therefrom on an ongoing basis. The Audit Committee also receives similar reports from the accounting auditors, as well as detailed explanations on the status of the quality control of internal audits, to confirm whether their oversight is at a suitable level.
*1Click here for more information on each executive officer.https://www.nissan-global.com/EN/COMPANY/PROFILE/EXECUTIVE/ *2Click here for more information on the Nissan Corporate Governance Overview, for the internal control system.https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/Overview_EN.pdf
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Contents
Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Independent internal audits
The Company has the global internal audit function, as an independent group to conduct internal auditing tasks under the Audit Committee. Regional audit teams are in each regional headquarters, and for sales finance, and IT and monozukuri auditing which requires a higher level of expertise, global specialty audit leadership was set up to conduct related audits across the regions. Under the control of the Chief Internal Audit Officer, all audits are carried out efficiently and consistently on a global basis.
Nissan`s corporate governance system
Make proposal to appoint / dismiss directors
General Meeting of Shareholders
Appoint / dismiss directors
Appoint / dismiss
Accounting auditor
Supervision
Make proposal to appoint /dismiss representative executive officer
Board of Directors
Determine committee members
Accounting audit report
Coordinate
Audit / report
Determine compensation
Nomination Committee
Board of Directors / committee operation
Board of Directors Office
Compensation Committee
Delegate, appoint / dismiss representative executive officers / executive officers
Determine compensation (representative executive officers / executive officers)
Audit Committee
Audit Report
Global Internal Audit Office
Make proposal to appoint / dismiss accounting auditor
Execution
Supervise
Report / submit
Representative executive officer
Report
Audit
Executive Committee, executive officers
Delegate
Report / propose, etc.
Internal Control Committee Monitor
Regional Management Committees, individual functions, Group companies
Delegation of authority outline
Delegation of authority (DOA) is a part of Nissan`s decision-making rules that defines who must be involved in important corporate decisions
Role of DOA
Clarify decision-making process
DOA provides a clear framework for the decision-making process and defines who is responsible for the decision.
Maintain and enhance management quality
DOA improves overall management quality at Nissan by increasing the speed and efficiency of decision-making.
Overall decision-making rule
BOD* regulation
DOA
Function / department rule
Scope of DOA
.DOA covers only important corporate decisions.
.Besides DOA, there are other decision-making rules such as
the business process standard document.
.DOA also applies to Nissan`s consolidated subsidiaries
including foreign companies except where there are special
circumstances.
.DOA is classified as global, regional, or local DOA according to
its scope of application.
*BOD: Board of Directors
Delegation of authority governance
For the purpose of enhancing management quality as well as clarifying the process of decisionmaking, fair and transparent delegation of authority (DOA) is appropriately implemented and strictly controlled.
01
Robustness Any revisions, creation and deletion are strictly controlled by the DOA Committee, which is chaired by corporate officers
02
Transparency DOA defines the appropriate individuals who must propose, validate and decide, are disclosed in the Nissan Group employee`s intranet
03
Fairness Aside from Proposer and Decider, the Validator, who provides expertise to a Decider in the Validator`s relevant area, is set in the DOA items
04
Effectiveness DOA representatives and coordinators are assigned in each function and region for efficient operation and for enhancing global management
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Avoidance of conflict of interest
In case of any transaction that involves any conflict of interest between the company and a director or executive officer, the Board Regulations provide that Board approval, as well as a post-facto report to the Board of important facts associated with the transaction, are required. In addition, in 2019 the company established a Director Conflict of Interest Resolution Policy which defines conflict of interest between a director and the company, conducts annual conflict of interest questionnaires, requires directors to report any actual, potential or perceived conflicts, and also establishes procedures to resolve such conflicts. Further, the Global Conflict of Interest Code came into force in March 2022 and applies to all officers and employees.*1
Three key pillars of director conflict of interest resolution policy
Three key pillars of director conflict of interest resolution policy *1
Duty to report
Mandates two affirmative duties for directors: . Timely reporting of actual and potential conflicts; . Advance disclosure of interested transactions
Resolution group
Establishes the Director Conflict Resolution Group, comprising (of at least) three independent directors, led by the chair of the Audit Committee. The chair can prevent a director, with consensus among the members of the Conflict of Interest Resolution Group, from: . Receiving materials, . Presenting at any discussion, and, . Participating in any vote, related to any specific conflict of interest reported.
Resolution procedure
Establishes procedures to resolve director conflicts before and during Board / committee meetings including: . Maintaining a database of all specific conflicts of interest identified, . Suspending or postponing the matter in question, and, . Excluding the conflicted member from the meeting
Data Compliance
*1Click here for more information on the Corporate Governance Report, for the director conflict of interest resolution policy.https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/g_report.pdf
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Risk management
Risk management systems
Our Global Risk Management Policy defines risk as levents or situations that could prevent Nissan Group from achieving its corporate purpose, strategies, business objectives.z Accordingly, Nissan promotes group-wide risk management activities. Detecting risks as early as possible, evaluating the magnitude of impact and probability of occurrence, and examining and implementing the requisite measures reduces the probability and likelihood risk events will occur. In the event that risks occur, we strive to minimize losses and ensure the risk is managed commensurately with its magnitude. Specifically, to respond to changes in our business environment within and outside the company, we have carried out periodic interviews of corporate officers and conducted hearings in each corporate function by department in charge of risk management. Furthermore, in cooperation with the Corporate Strategy Department, we have carefully investigated various potential risks and revised the lcorporate risk mapz by evaluating impact, likelihood, and control level quantitatively and qualitatively. The Corporate Risk Management Committee, chaired by the CEO, makes decisions on risk issues that must be handled at the corporate level and designates lrisk ownersz to manage these risks. Under the leadership of these owners, we design appropriate countermeasures. The head of risk management assesses the control level of each risk and determines the effectiveness of each risk management activity. The progress of these activities is regularly reported to The Corporate Risk
Management Committee and the Internal Control Committee, and also to the Audit Committee and the Board of Directors, when appropriate. With respect to individual business risks, each division is responsible for taking the preventive measures necessary to minimize the probability of risk issues and their impact when they do arise as part of its ordinary business activities. The divisions also prepare emergency measures to put in place when risk factors materialize. In addition, Nissan
Corporate risk management
Board of Directors
Biannual reporting
Audit Committee
Chairperson: CEO (executive officer in charge of internal control)
Internal Control Committee
has established a system to comprehensively respond to business continuity risks*1 by creating a specialized department which deals with disasters and operational risks, to take prompt and coordinated responses when a crisis occurs. Nissan Group companies in Japan and overseas are strengthening communication to share basic processes and tools for risk management, as well as related information, throughout the Group. The business environment in which we operate has been increasingly volatile in recent years, including such aspects as the widespread adoption of new technologies and growing geopolitical risks. We will continue to bolster our activities in this area so we can appropriately address these changes.
Biannual reporting Chairperson: CEO
Corporate Risk Management Committee Regular reporting and monitoring
PMO: Corporate Management Office
Risk owner*2
Responsible Executive
Specific committees / line functions
Risk owner*2
Responsible Executive
Specific committees / line functions
Risk owner*2
Responsible Executive
Specific committees / line functions
...
Risk owner*2
Responsible Executive
Specific committees / line functions
Risk owner*2
Responsible Executive
Specific committees / line functions
Each region / Group company
Risk owner*2
Responsible Executive
Specific committees / line functions
Risk owner*2
Responsible Executive
Specific committees / line functions
(As of March 31, 2023)
*1Click here for more information on Securities report lBusiness and other risksz. (P25-31).https://www.nissan-global.com/EN/IR/LIBRARY/FR/2022/ASSETS/PDF/fr2022.pdf#page=27 *2In principle, risk owners are Executive Committee members.
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Risk management enhancement efforts
To realize the long-term vision Nissan Ambition 2030 announced in 2021, Nissan is continuously revising and enhancing risk management processes and frameworks. Based on the principle lthree lines of defensez as a systematic enhancement, the PMO of Risk Management was precisely positioned to function as the second line and the personnel system was enhanced. To support this new basic company policy, we have positioned the objective of risk management as activities supporting the realization of our corporate purpose from a longer-term perspective rather than limiting it to short-term objectives such as achieving business targets. Accordingly,
we have taken a wider view of targeted risks from the perspectives of enhancing corporate value and contributing to the environment, human rights, and sustainability, and also created a system for ascertaining risks in a timely manner. Regarding the evaluation of risks, in addition to transitioning away from conventional subjective and qualitative evaluations to more objective and quantitative evaluations, we referenced the international framework and engaged in more concrete risk assessments and monitoring activities to control and manage risks. These process and tool improvements have been appropriately reflected in our Risk Management Manual.
Annual process of corporate risk management
Control / mitigation activities by 1st line
Risk identification (Regular survey)
Interview with Executives Interview with function (GM level)
Risk assessment
Assess & prioritize risks Consider candidates of corporate risk & owners Confirm control activity
Risk control review & validation
Interim reporting
Review control activity Control level validated by owner
Reporting to CRMC Semiannual reporting to ICC/ AC/ BOD RM disclosure (Quarterly financial report)
Risk identification (Regular survey)
Interview with Executives Interview with function (GM level)
Risk assessment
Risk control review
& validation
Assess & prioritize risks Consider candidates of corporate risk & owners Confirm control activity
Review control activity Control level validated by owner
Year end reporting
Reporting to CRMC Semiannual reporting to ICC/ AC/ BOD RM disclosure (Securities Report/ ESG Data Book)
Reflect
Reflect Emerging risk searching & identification
Carry out PDCA cycle annually
CRMC: Corporate Risk Management Committee ICC: Internal Control Committee AC: Audit Committee BOD: Board of Directors (As of March 31, 2023)
Reinforcing information security
We share our Information Security Policy with group companies worldwide as a basis for reinforced information security, implementing via the Information Security Committee measures enhanced through the PDCA cycle. We reliably address issues by identifying internal and external information leaks as they occur worldwide and reinforce information security on a timely basis. To thoroughly educate and motivate employees to adhere to relevant policy, we institute regular in-house educational programs. There were no major instances of loss or leaking of personal information at any Nissan Group companies during fiscal 2022.
Protecting personal data
We recognize our social responsibility to properly handle customers` personal information in full compliance with the respective personal information protection law in each region. We have set up internal systems, rules, and procedures for handling personal data. All Nissan Group companies are fully enforcing these processes. We formulated the Basic Policy on Customer Privacy to ensure a unified global approach to the use of customer data and privacy information. This policy ensures that the handling of information is consistent and treated as an important duty at all Nissan sites. This new policy sets out Nissan`s commitment to privacy and its basic privacy policy.
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Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Compliance
To raise compliance awareness throughout the company and all employees to act with integrity and high standards, Nissan has established a Global Compliance Office, as well as specialized departments, and appointed officers to promote compliance in each region where it operates. In fiscal 2022, the third Nissan Ethics Day was held globally in December to enhance a culture of ethics and compliance in the company. This event focuses upon reinforcing both Nissan`s tone at the top and tone in the middle. Employees at all levels of the company had an opportunity to discuss Nissan`s Global Code of Conduct and the Whistleblowing process.
Enhancing compliance
Preventing a recurrence of nonconforming final vehicle inspections at Nissan`s plants in Japan
After the discovery in September 2017 of nonconformities in the final vehicle inspection process at its plants in Japan, Nissan began a full and comprehensive investigation of the facts, including the causes and background. We have since implemented appropriate countermeasures based on the results. Strict compliance is a top priority for our management, and we have taken it upon ourselves to examine the current situation with regard to compliance in every area of our business. *1
Executing an overhaul of compliance checks
At Nissan, following the discovery of nonconformities in the final vehicle inspection process at vehicle assembly plants in Japan, we were determined to ensure that such a thing could never happen again. Accordingly, in fiscal 2018, an overhaul of compliance checks was carried out, and since fiscal 2019, the Global Compliance Office and relevant functions monitor those items periodically twice a year.
In fiscal 2019, comprehensive compliance checks for major subsidiaries in Japan was undertaken, and they have continued to be carried out on a regular basis since then. In fiscal 2021, the Global Compliance Office started compliance risk monitoring oversight of the regions` risk monitoring including the residual risk remediation plans.
Working with dealerships
Nissan undertakes various measures to ensure that its approach to compliance is shared with dealerships and to enhance its internal controls. While strengthening lines of communication with dealership, we are carrying out activities to enhance their compliance at dealerships in Japan. Specifically, Nissan arranges a self-assessment program (Control Self-Assessment) for dealerships to enhance understanding of compliance matters and improve their compliance management status. We supply check items which is reflected in our internal audit results to all dealerships. They check their current compliance status and issues through the check item and use the PDCA cycle to make voluntary improvements. When major compliance issues occur, the legal, communications, external and government affairs and other applicable Nissan departments work together with dealers to take prompt and appropriate action.
*1Click here for more information on nonconforming final vehicle inspections.https://www.nissan-global.com/EN/SUSTAINABILITY/VEHICLE_INSPECTIONS/
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Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Anti-bribery
Anti-bribery: Policies and philosophy
Nissan does not tolerate corruption of any kind, whether individual or systemic, committed by a company or a government. *1 The Nissan Global Anti-Bribery Policy establishes a global framework for preventing and responding to corruption. Different cultural contexts may result in what seem to be gray areas, and Nissan respects local customs and traditions, but corrupt practices are never acceptable.
Anti-bribery: Management
Nissan has established a Global Code of Conduct*2 and Global Compliance Office as well as departments and officers at each of its operations worldwide with responsibility for promoting compliance measures. Moreover, all group-affiliated companies have introduced their own codes based on the Global Code of Conduct. The Code of Conduct is supported by training courses to ensure full understanding of its content. Nissan has created a series of internal regulations that are applied globally, covering areas such as decisionmaking, insider trading, personal information management, information security, bribery and corruption, use of social media, and customer privacy. With these policies in place, Nissan is working to heighten awareness and reduce infractions. Employee education programs to promote compliance are held regularly in all regions in which Nissan operates. For example, training sessions based on the Global Anti-Bribery Policy have been conducted in all regions.There were no major instances of violating the laws and regulations at any Nissan Group company during fiscal 2022.
*1Click here for more information on the Avoidance of Conflict of Interest.>>> P131 *2Click here for more information on the Global Code of Conduct.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/NISSAN_GCC_E.pdf
Business ethics
Business ethics: Policies and philosophy
Employees and compliance
In 2001, Nissan established a Global Code of Conduct containing practical guidance for employees. Today, this Code of Conduct is applied at all Nissan Group companies worldwide. We also provide guidance on compliance for directors and corporate officers, holding regular seminars and educational activities to ensure strict adherence to the rules. The Global Compliance Committee (GCC), co-chaired by the CEO and Global Compliance Officer, is held twice a year, where global compliance strategies are deliberated, annual programs are validated, and compliance issues are discussed. The results of the GCC is reported to the Executive Committee (EC) and the Audit Committee. Under the oversight of our Global Compliance Committee, we have established a Regional Compliance Committee in each region of operation, forming a worldwide system for detecting and deterring illegal and unethical behavior. The Global Headquarters works with all regions and bases of operation to ensure full awareness of compliance issues and prevent illegal activity, and has processes in place to take appropriate disciplinary action against those who violate or infringe the Global Code of Conduct or the law. Our Global Compliance Office further increases the rigor of our compliance management. In addition, to enhance compliance at the regional level, standalone, independent, regional compliance officers are appointed in Japan-ASEAN, China, Americas, and AMIEO (Africa / Middle East / India / Europe / Oceania) regions.
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Contents
Corporate direction
Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Global Compliance Committee Organization (As of April 1st, 2023)
Nissan Motor Co., Ltd. Board of Directors
Internal Control Committee
Executive Committee (EC)
Audit Committee
Global Compliance Committee (GCC)
Global Compliance Committee Global Compliance Officer
Management Committees (MCs)
Regional Compliance Committees*1
Japan-ASEAN
China
Americas
AMIEO
Global Code of Conduct
The Global Code of Conduct*2 contains our core principles for doing business with honesty and integrity, in full compliance with established laws and regulations in all locations in which we operate. The Code of Conduct`s standards apply to all employees within Nissan Group companies, and every employee is responsible for upholding and adhering to the Code. The Code of Conduct is reviewed for revision at least once every three years to ensure that it evolves along with the company and society. In fiscal 2021, updated Global Code of Conduct training material was delivered to all regions. The e-learning material for indirect employees was available in approximately 20 languages. In fiscal 2022, the completion ratio for indirect employees was 96.5%. Factory-focused training material was prepared for factory workers, who received the training via regular shift-start messaging or in a seminar setting. This global Code of Conduct training is mandatory for all Nissan employees every year as well as Board members and Corporate officers. Compliance and dissemination status of Global Code of Conduct is self-assessed by responsible departments and independently evaluated by the internal audit. The results are reported annually to the Internal Control Committee and also to the Board of Directors.
Business Ethics: Management
Internal Reporting System for Corporate Soundness
Nissan has established a globally integrated reporting system to promote thorough understanding of compliance among employees worldwide and facilitate sound business practices. The system, known as SpeakUp*3, is operated by an independent third party, NAVEX Global, which specializes in ethical hotlines. SpeakUp can be used by employees to ask questions or voice concerns to the company, thereby improving workplaces and operations. SpeakUp permits anonymous reporting and two-way confidential communication. It is available 24 hours a day, 365 days a year, in more than 20 languages. SpeakUp is promoted to employees through various internal communication means, such as posters, intranet banners, internal articles, and events such as Nissan`s annual Ethics Day. Employees are encouraged to report violations of the Code of Conduct or other company rules, and are protected from retaliation by our Global Whistleblowing Policy, a cornerstone of our compliance program.
*1Each Regional Compliance Committee oversees various local compliance committees as appropriate. *2Click here for more information on Global Code of Conduct.https://www.nissan-global.com/EN/SUSTAINABILITY/LIBRARY/ASSETS/PDF/NISSAN_GCC_E.pdf *3Click here for more information on the Nissan Corporate Governance Overview, for the Global whistleblowing system, SpeakUP.https://www.nissan-global.com/EN/SUSTAINABILITY/GOVERNANCE/ASSETS/PDF/Overview_EN.pdf
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Reports are assigned by compliance personnel to the appropriate team for handling, such as HR, security, or legal. Compliance cases are handled by independent compliance officers, and substantiated cases are presented to a crossfunctional compliance committee. In fiscal 2022, 2078 concerns were reported globally. Among those, 19% were compliance-related matters while 62 were human resource related. These figures include 238 inquiries, making lInquiryz the second most common report category. In addition to inquiries, the most recurrent types of reports are lHuman Resource Concernz, lOffensive or Inappropriate Communicationz, and lOther Company Policy Violationsz. Measures taken range from termination of employment to procedural improvements.
Security-related export controls
To help maintain both national and international peace and security, we rigorously comply with export control laws and regulations in Japan and regions where we operate to keep sensitive goods, software, and technologies from reaching sponsors of terrorism, espionage, or human rights violators. Our export compliance program is implemented under a system headed by the representative executive responsible for export control. Specifically, our Export Control Global Secretariat, consisting of a Global Director and Regional Managers, works with each of our businesses to set control and monitoring mechanisms ensuring compliance with security-related export controls, and these mechanisms are strictly applied to all operations. In 2022, we finalized and published our Global Export Regulatory Compliance Policy to ensure compliance with regulations across the Nissan Group. We respond in a timely manner to export control regulation changes and related developments around the world. One of our primary focal points this fiscal year has been management of the Russia / Ukraine crisis and the quickly changing regulatory landscape. With the overall aim of improving our level of internal control, we strive to conduct regular risk-assessment activities in connection with export controls in each region, create monitoring mechanisms aligned with regulatory requirements and business demands, and continually improve our operations.
To make employees more familiar with compliance risks, we are reviewing our training system and materials, including information about complying with relevant customs and trade laws. We have been addressing export control of advanced technologies on a global level to prepare for the future of the company. We continue to promote export control for advanced technologies, such as electrification, autonomous driving and connected car technologies at Nissan sites in Japan, the U.S., and Europe as well as other locations around the world. By making export control procedures an integral part of our development and design operations, we aim to strengthen our compliance. In addition, we are renewing and collecting information on controlled goods, software, and technologies in each region and are implementing comprehensive and sound export controls for each business operation through the systematic sharing of this information.
Global export control policy framework
Representative executive responsible for export controls
Export Control Global Secretariat
Japan-ASEAN, China Americas AMIEO *1
Functions
Marketing and sales, R&D, supply-chain management, IT,
production, etc.
Regions
Japan-ASEAN, China Americas AMIEO *1
*1AMIEO (Africa / Middle East / India / Europe / Oceania)
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Data Compliance
Nissan`s commitment to tax transparency
Nissan`s approach to tax
In line with its Global Code of Conduct, Nissan is committed to complying with the laws and regulations of all countries in which Nissan operates, as well as with international tax treaties and tax-related financial reporting rules. To conduct business properly and efficiently in many markets across the globe, Nissan established a documented tax policy from 2015. The policy is continuously revised in order to keep up with the legislative and regulatory changes. The policy includes details of Nissan`s governance arrangements, tax risk management strategy and its approach to dealing with tax authorities. Nissan is consistently fulfilling all tax disclosure requirements under domestic and international rules (such as OECD Country-by-Country Reporting) and other countryspecific transparency requirements such as those in Australia or the U.K.*1. Nissan effectively manages its tax risks by involving its Tax Department into key business decisions. Nissan`s Tax Department collaborates with and supports other functions to ensure tax implications are properly evaluated and addressed in operational and strategic decision-making on a timely basis. Input from the Tax Department is particularly critical in relation to transactions, restructurings, legal entity modifications, legislative changes and other business changes, as necessary to support Nissan`s business strategy. Through a formal delegation of authority process, the Tax Department validates key business decisions from a tax perspective, thereby ensuring the tax strategy is aligned
with the wider business objectives, in a consistent and timely manner. Nissan applies established international standards (such as those developed by the Organisation for Economic Cooperation and Development (OECD)) for the pricing of transactions between the companies within the group. Intercompany transactions are priced on an arm`s-length basis, which means that Nissan entities transact with each other as if they were independent entities. Nissan is transparent about its approach to tax. Nissan aims to pay the appropriate amount of taxes in the jurisdictions in which it operates, and to avoid tax-related interest payments and penalties for failure to comply with local and international tax rules. Nissan`s business is structured according to the commercial substance of its operation. No artificial or unusual business structures are used to evade taxes. Nissan does not engage in any transaction aimed at tax avoidance or not aligned with its normal course of business. The CFO reviews and approves the tax strategy. The Global Head of Tax and the CFO update annually the Board of Directors on Nissan`s tax risks, its risk management tools and overall adherence to the group`s tax strategy.
Nissan`s tax management
Nissan effectively manages tax risks within the group by participating in and through the delegation of authority process at local, regional, and global level validating key business decisions from a tax perspective in a consistent manner. Nissan`s global brand reputation and the continuing success of its manufacturing, distribution and financing operations
*1Click here for more information on Nissan`s U.K. tax strategy.https://www.nissan.co.uk/legal/nissan-uk-tax-strategy.html
are of paramount importance. Nissan seeks to close tax audits by reaching an agreement with the tax authorities on the appropriate tax treatment of items under review. In case Nissan is unable to reach an agreement with the tax authorities, Nissan will take necessary actions to defend its tax positions, including seeking recourse to litigation. Nissan has several methods for identifying and managing tax risks. For example, the Tax Department maintains a global database containing a list of the group`s ongoing audits, uncertain tax positions and topics that may represent a tax risk in the future (such as new tax rules and inconsistent application of existing rules by tax authorities). It includes all potential tax risk: both direct and indirect taxes. All such risk items are extensively documented and qualified. Reports can be produced as needed and key findings are discussed quarterly with global senior management. Specifically for income tax, Nissan has a process in place at local, regional, and global level to recognize uncertain tax positions as required by the Interpretation No. 23 of the International Financial Reporting Interpretations Committee (IFRIC 23). Nissan adopted IFRIC 23 from the beginning of fiscal 2019. Regarding transfer pricing topics, Nissan`s Tax Department has internal procedures and controls in place to identify transfer pricing risks, assess, monitor, and mitigate such risks, and report material risks to all stakeholders. Profitability by product basis and by company basis is monitored regularly to identify potential risks. Once identified, the risks are reported to Nissan`s finance leadership team. The executive-level position within the organization accountable for compliance with the tax strategy is the
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Governance policies and philosophy
Environmental Corporate governance
Social Risk management
Governance
Global Head of Tax, reporting to the CFO. Compliance with the tax governance and control framework is evaluated regularly by the following departments, at local, regional, and global level: Tax, Compliance, and Internal Audit. Global policies on tax governance and control are published on Nissan`s internal website and available to all employees globally. The Compliance Department checks with the Tax Department regularly to assess how the policies are enforced and whether they reflect the latest business operations in Nissan. Nissan has a hotline which is called SpeakUp where employees can anonymously report unethical or illegal activities they have witnessed or that they suspect may exist. It is a means to bring potential tax-related violations to the attention of management.
Nissan`s stakeholder engagement and management of concerns related to tax
Nissan seeks to build and maintain long-term, open, and constructive relationships with national tax authorities by proactively engaging with them, as well as other governmental and industry bodies, directly and indirectly. First, Nissan strives to develop cooperative relationships with tax authorities through regular meetings and partnership programs. Nissan has ongoing communication with tax authorities including, where applicable, use of advance rulings and Advanced Pricing Agreements (APAs). Nissan regularly engages with policy makers to support the development of tax rules and regulations based on sound tax policy principles that reflect the business reality of its operations. Nissan also provides technical input to industry groups and international economic organizations, such as the Tax Executives Institute (TEI) and the Business and Industry Advisory Committee to the OECD. As a Japanese automaker, Nissan is a member of Keidanren, one of Japan`s major private-sector business associations and part of the Japan Automobile Manufacturers Association (JAMA). Finally, Nissan`s Investors Relations Department engages with the Global Tax Department each time there is a question from stakeholders related to tax topics. The Tax Department will ensure that such questions are answered in a satisfactory way.
Data Compliance
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Environmental
Corporate overview
Environmental data
Data
ESG data Corporate overview 141 Environmental data 143 Social data 159 Governance data 163
Social Social data
Governance Governance data
Data Editorial policy
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Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Corporate overview
Corporate profile
Date of establishment
December 26, 1933
Location of organization`s headquarters
Group structure and business outline
1-1, Takashima 1-chome, Nishi-ku, Yokohama, Kanagawa 220-8686, Japan
The Nissan Group consists of Nissan Motor Co., Ltd., subsidiaries, affiliates and other associated companies. Its main business includes sales and production of vehicles and related parts. The Nissan Group also provides various services accompanying its main business, such as logistics and sales finance.
Brands
Nissan, Infiniti
Consolidated number of employees (as of March 31, 2023)
Global network (as of March 31, 2023)
131,719
R&D: 16 markets (Japan, U.S., Mexico, U.K., Spain, Belgium, Germany, Russia, China, Taiwan, Thailand, Vietnam, India, South Africa, Brazil, Argentina; total of 44 sites) Design: 5 markets (Japan, U.S., U.K., China, Brazil; total of 7 sites) Automobile Production: 28 sites in 13 markets (excludes plants providing OEM vehicles to Nissan [Renault, Mitsubishi Motors, Fuso, Suzuki, etc.].)
Financial data *1
Net sales Operating income (loss) Ordinary income Profit (loss) before tax Net income (loss) attributable to owners of the parent Capital expenditure Depreciation Research and development costs
FY2020 7,862.6 (150.7) (221.2) (339.3)
(448.7)
405.4 270.3 503.5
FY2021 8,424.6
247.3 306.1 384.2
215.5
345.0 289.4 484.1
¥ billion FY2022 10,596.7
377.1 515.4 402.4
221.9
350.8 316.8 522.2
*1Click here for more information on financial data.https://www.nissan-global.com/EN/IR/
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Global sales volume and production volume
Global sales volume Japan China North America Europe Others
FY2020 4,052 478 1,457 1,213 391 513
FY2021 3,876 428 1,381 1,183 340 544
Global production volume Japan North America Europe Others
FY2020 3,634 517 953 336 1,828
FY2021 3,404 446 930 276 1,751
Thousand units FY2022
3,305 454
1,045 1,023
308 475
Thousand units FY2022
3,381 597 992 288
1,504
Others 14.4% Europe 9.3
North America 31.0
Others 44.5
Europe 8.5
Governance Governance data
Data Editorial policy
FY2022 Global sales volume
3,305
thousand units
Japan 13.7
China 31.6
FY2022 Global production volume
3,381
thousand units
Japan 17.7
North America 29.3
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Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Environmental data
Climate change (Products) 143 Climate change (Corporate Activities) 147 Air quality 152 Resource dependency: Achievements in reuse 153 Resource dependency (Facility Waste) 154 Water resource management 155 Strengthening our business foundations to Address environmental issues 157 Material balance 158 Environmental conservation cost 158
Climate change (Products)
CO emissions from new vehicles (Global)
In fiscal 2022, CO emissions in Nissan`s main markets of Japan, the U.S., Europe, and China were 41.2% lower than fiscal 2000 levels, as measured by Corporate Average Fuel Economy (CAFE), and NGP`s original goal of 40% reduction was achieved one year ahead of schedule.*1
%
100 95 90 85 80 75 70 65 60
100
90.1
-41.2% reduction
62.6
57.5
58.8
2000
2005
2020
2021
2022 (FY)
*1Reduction in CO emissions calculated by Nissan.
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Corporate average fuel economy (CAFE, JC08/WLTC Mode) in Japan
km/L 25 21.2 22.6 23.1 23.6 23.0 20 15
In fiscal 2022, the corporate average fuel economy*1 in Japan was 23.0 km/L. The reason of slight deterioration is the increase of WLTC mode evaluation vehicles.
10
5
0 2018 2019 2020 2021 2022FY
Corporate average fuel economy (CAFE) in the United States
mpg
In fiscal 2022, the corporate
50 PC
39.9
41.4
40.7
41.7
43.3
40
28.8
27.8
29.7
30.7
28.9
30
LDT
20
average fuel economy (CAFE) of Nissan`s passenger cars in the US was 43.3 mpg, a 3.8% improvement over fiscal 2021 by switching to a new downsized turbo engine In the light-duty truck segment, the CAFE was exacerbated 5.9% to 28.9 mpg by
effect of sales model mix.
10
0 2018 2019 2020 2021 2022FY
*1Provisional values calculated in-house; some models include WLTC mode fuel consumption values. *2Official figures for 2022 have not been published yet, so it is shown by provisional values. *3No data due to no import car sales in 2021.
CO emission index from Nissan vehicles in Europe
g-CO2/km
160
140 120 115 114
119 (117)
96
100
80
In 2021 and beyond, average vehicle CO emissions in Europe are exacerbated by the change in evaluation mode from NEDC to WLTP, but the CO value is considered to be almost the same as 2020 in the same NEDC mode.*2
60
40
20
0 2018 2019 2020 2021 2022CY
Corporate average fuel consumption in China
L/100km
12
10 Import
9.2
8.0
7.9
7.8
8
6.3
5.8
5.5
6.1
5.6
6 Domestic
Production
4
In 2022, average fuel consumption of domestic production models*3 in China was improved by approximately 8% due to increase of EV sales. (The figure of import car in 2022 is from 627 units` lowvolume model)
2
0 2018 2019 2020 2021 2022CY
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Revenue, global sales volume and production volume data
Revenue*1
FY2021 9,743.3
FY2022 11,811.8
¥ billion
Global Sales Volume*2 Japan
North America Europe Asia Other
FY2021 3,876 428 1,183 340 1,572 353
FY2022 3,305 454 1,023 308 1,201 318
k unit
Global Production Volume*2 Japan
North America*3 Europe*4 Asia*5 Other*6
FY2021 3,404 446 930 276 1,646 105
FY2022 3,381 597 992 288 1,378 125
k unit
In Japan, where customers` interest in electrified vehicles is relatively high, e-POWER models account for 36.5% of total shipments in Japan. Combined with electric and hybrid vehicles, entire electrified vehicles account for 60%, almost two-thirds of the total. This trend is expected to continue, given the strong sales of the new Nissan Sakura Kei-EV, which went on sale in fiscal 2022. We see this as a situation where more sustainable product lines are becoming the core of Nissan`s business in pursuit of environmental values.
Powertrain type ratios (Shipment-based)
Gasoline-
Unit
powered
vehicles
Japan
29.2
North America
97.6
Europe
29.4
Dieselpowered vehicles
0.3
0.3
3.5
e-POWER vehicles
36.5 0.3
15.4
Asia
91.2
3.5
2.8
Other
80.8
15.0
0.9
Global
77.6
3.2
7.8
Electric vehicles
11.7 1.8
11.6 1.7 0.2 3.9
Hybrid drive Natural-gas
vehicles
drive vehicles
22.2
0.1
0.0
0.0
40.1
0.0
0.8
0.0
3.0
0.0
7.5
0.0
*1Management pro-forma basis (includes Chinese joint ventures in proportionate consolidation). *2Global sales volume and global production volume for China and Taiwan consider values from January to December. *3Production in the U.S. and Mexico. *4Production in the U.K. and France. *5Production in Taiwan, Thailand, China and India. *6Production in South Africa, Brazil, Egypt and Argentina.
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EVs
In fiscal 2022, EV sales volume increased thanks to strong sales of the new Sakura and Ariya, e-POWER sales increased due to the effects of the new Qashqai and the new X-Trail. *1
100% EV and e-POWER vehicle sales
k unit
500
400
373
300 257
279
219 204
200
Hybrid electric vehicles
In fiscal 2022, vehicle numbers increased due to the launch of the all-new Juke and Qashqai in Europe.
Hybrid vehicle sales *2
k unit 400
300
217
200
167 180
120
100 76
100 0 2018 2019 2020 2021 2022 FY
0 2018 2019 2020 2021 2022 FY
Data Editorial policy
*1There have been changes in historical figures due to the recalculation of sales volume. *2There have been changes in historical figures due to the change in the counting method from the number of units shipped to the number of units sold.
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Climate change (Corporate activities)
Energy input
Unit
Total
MWh
By region
Japan
MWh
North America MWh
Europe MWh
Other
MWh
By energy source
Primary
Natural gas MWh
LPG
MWh
Coke
MWh
Heating oil MWh
Gasoline MWh
Diesel
MWh
Heavy oil MWh
2019 8,313,893
3,438,939 2,180,450
913,521 1,780,983
3,079,723 175,559 154,961 90,078 243,166 23,246 16,303
2020 7,655,514
3,015,419 1,909,902
888,089 1,842,105
3,089,803 144,478 100,144 69,618 184,021 25,315 22,816
2021 7,495,492
3,149,380 1,982,066
650,003 1,714,043
2,907,420 145,717 112,154 69,868 177,147 23,800 22,383
FY
2022 7,195,408
3,166,269 2,016,313
676,897 1,335,929
2,828,289 130,508 119,767 58,579 120,565 26,016 9,767
Unit
External
Electricity (purchased)
MWh
Renewable energy*1
MWh
Chilled water MWh
Steam MWh
Internal
Electricity (in-house generation)
MWh
Renewable energy*2
MWh
Total renewable energy
MWh
2019
4,384,282 123,225 5,086 125,662
43,668 43,668 166,893
2020
2021
FY
2022
3,851,011 3,859,586*3 3,737,002
181,815
3,530 96,960
229,754
3,598 114,506
275,807
3,929 125,761
65,183 65,183 246,998
59,313 59,313 289,067
35,226 35,226 311,033
Trend in energy consumption
The total energy consumption of our global corporate activities during fiscal 2022 was 7,195 thousand MWh, a 4% decrease from 7,495 thousand MWh in fiscal 2021. The total energy consumption from manufacturing processes during fiscal 2022 was 6,462 thousand MWh , a decrease from 6,875 thousand MWh in fiscal 2021.
MWh
10,000,000 9,252,737
8,000,000 3,700,532
6,000,000 2,570,438
4,000,000 1,048,201
2,000,000 1,933,566
0 2018
8,313,893 3,438,939
2,180,450 913,521 1,780,983
2019
7,655,514 3,015,419
1,909,902 888,089 1,842,105
2020
7,495,492 3,149,380
1,982,066 650,003 1,714,043
2021
7,195,408 3,166,269 Japan
2,016,313
North America
676,897 1,335,929
Europe Other
2022 FY
Energy per vehicle produced
In fiscal 2022, energy per vehicle produced was 2.13 MWh reduced by 3.4% compared to fiscal 2021. Data for the Japan region includes the manufacture of powertrains and other components for overseas assembly. Since the denominator is vehicles produced in the region, this tends to result in higher values for Japan.
MWh/vehicle 3.0
2.5
2.11 2.20 2.13
2.0 1.73 1.75
1.5
1.0
0.5
0.0 2018 2019 2020 2021 2022 FY
By region Japan
North America Europe Other
Unit MWh/vehicle MWh/vehicle MWh/vehicle MWh/vehicle
2022 5.30 2.03 2.35 0.89
FY
*1Volume of renewable energy in electricity purchased by Nissan. *2Volume of renewable energy generated by Nissan at its facilities and consumed for its own purposes. *3Due to an error in the disclosure of last fiscal year`s figures, the figures for fiscal 2021 were revised.
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.>>> P058
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Energy per revenue
In fiscal 2022, global Nissan facilities saw energy per revenue result of 0.61 MWh, decreased by 21% from 2021. We are taking ongoing steps toward decoupling financial capital generation from energy use.
MWh/million 1.2
1.0
0.84
0.8 0.71 0.74
0.77
0.61
0.6
0.4
0.2
0.0 2018 2019 2020 2021 2022 FY
Carbon footprint of corporate activities
In fiscal 2022, the total of Scope 1 and 2 emissions of our global corporate activities was 2,096 thousand tons, a 6% decrease from 2,231 thousand tons in fiscal 2021. Total CO emissions from manufacturing processes were 1,798 thousand tons (Scope 1 emissions: 579 thousand tons ; Scope 2 emissions: 1,219 thousand tons ), a decrease from 1,944 thousand tons in fiscal 2021.
Unit Scope 1*1 t-CO
2018 879,534
2019 764,929
2020
2021
746,677 690,155
(FY) 2022 661,241
Scope 2 t-CO
Scope 1+2*1
t-CO
Japan*1 t-CO
North America
t-CO
Europe t-CO
2,339,883 2,105,700 1,631,551 1,541,276 3,219,417 2,870,630 2,378,228 2,231,430 1,198,393 1,138,452 941,493 982,671
738,234 648,754 529,044 507,584 221,692 163,553 156,442 112,157
1,435,081 2,096,322
978,051 526,414 105,974
Other t-CO 1,061,098 919,871 751,250 629,019
485,882
Scope 3 t-CO 203,106,900 173,138,601 135,068,055 127,546,646*2 118,828,370
Greenhouse gas (GHG) emissions other than energy-derived CO*3
By type
CH4 (methane) N2O (nitrous oxide) HFCs (hydrofluorocarbons) PFCs (perfluorocarbons) SF6 (sulfur hexafluoride) NF3 (nitrogen trifluoride)
Unit
t-COe t-COe t-COe t-COe t-COe t-COe
(FY)
2018 2019 2020 2021 2022
4,846 4,750 4,620 5,088 5,054
1,425 1,334 1,238 1,244 1,071
3,594 3,106 1,873 1,320 1,878
0
0
0
0
0
43
43
43
43
43
2
1
1
1
0
Carbon footprint of manufacturing activities
In fiscal 2022, overall corporate emissions were reduced by 27.7 compared to fiscal 2005.
100 100
80
72.3 66.0 66.3 67.1
60
40
20
0 2005 2019 2020 2021 2022FY
*1The values for the past four years have changed due to the disclosure of greenhouse gases
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.>>> P058
other than CO emissions from energy use as a separate item.
*2Among Scope 3 emissions, the values for fiscal 2021 have changed due to a modification in the calculation method for Category 1 and the determination of fuel efficiency values published by the government for Category 11.
*3GHG emissions from Nissan Motor Co., Ltd. manufacturing sites calculated based on the Act on Promotion of Global Warming Countermeasures.
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Manufacturing CO per vehicle produced
In fiscal 2022, our manufacturing CO emissions per vehicle produced were 0.52 tons, 28.8% less than fiscal 2005.
t-CO2/vehicle 0.8 0.73
0.6
0.51 0.52 0.56 0.52
0.4
0.2
0.0 2005 2019 2020 2021 2022 (FY)
Carbon footprint of manufacturing activities
1,000t-CO2
3,000 2,610 2,408
2,000
1,951 1,944 1,798
1,000
0 2018 2019 2020 2021 2022 (FY)
Scope 1 and 2 emissions per revenue
In fiscal 2022, CO emissions from our global operations were 0.18 ton per ¥1 million of revenue.
t-CO2/million 0.35
0.30 0.25 0.25
0.26
0.26
0.23
0.20
0.18
0.15
0.10
0.05
0.00 2018 2019 2020 2021 2022FY
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Logistics volume
Total Inbound*1 Outbound*2
Unit mil ton-km mil ton-km mil ton-km
2018 34,903 10,164 24,739
2019 28,288
8,083 20,205
2020 21,168
5,518 15,651
2021 22,835
7,643 15,192
FY 2022 25,550 8,782 16,768
Sea
Road
Rail
Air
60.9
63.8
60.2
61.7
69.5
23.3
23.0
25.0
24.1
19.3
14.9
12.7
14.3
13.8
10.9
0.9
0.6
0.5
0.4
0.3
In fiscal 2022, global shipping increased by around 12% compared to the previous fiscal year, to 25.6 billion ton-km.
CO emissions from logistics
Total Inbound*1 Outbound*2
Unit t-CO t-CO t-CO
2018 1,482,982
762,314 720,667
2019 1,144,338
582,957 561,381
2020 900,234 397,822 502,412
2021 874,936 366,190 508,746
FY 2022 771,102 316,541 454,561
CO emissions per vehicle transported
In fiscal 2022, CO emissions per vehicle transported were 0.25 tons.
t-CO2/vehicle
0.5 0.43
0.38 0.4
0.31 0.29
0.3
0.25
0.2
0.1
0.0 2005 2019 2020 2021 2022FY
Sea
Road
Rail
Air
19.9
21.1
19.9
20.8
27.7
60.3
64.1
66.2
65.6
57.8
6.7
5.9
6.6
7.1
7.1
13.1
8.9
7.3
6.5
7.1
In fiscal 2022, CO emissions from logistics were 771 k-tons, down approximately 12% from the previous fiscal year.
*1lInboundz includes parts procurement from suppliers and transportation of knockdown parts. *2lOutboundz includes transportation of complete vehicles and service parts.
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Environmental data
Scope 3 emissions by category
We conducted a study based on standards such as the Corporate Value ChainScope3Accounting and Reporting Standard from the GHG Protocol and found that about 90 of our Scope3 emissions were from the use of sold products.
Category
Unit
1.Purchased goods & services
kt-CO
2.Capital goods
kt-CO
3.Fuel- and energy-related activities kt-CO
4.Upstream transportation & distribution
kt-CO
5.Waste generated in operations kt-CO
6.Business travel
kt-CO
7.Employee commuting
kt-CO
8.Upstream leased assets
kt-CO
9.Downstream transportation & distribution
kt-CO
10.Processing of sold products
kt-CO
11.Use of sold products
kt-CO
12.End-of-life treatment of sold products
kt-CO
13.Downstream leased assets
kt-CO
14.Franchises
kt-CO
15.Investments
kt-CO
Total
kt-CO
FY 2022 11,840 1,066
246
768
118 66
134 0
523
6 103,391
253
417 0 0
118,828
Social Social data
Governance Governance data
Data Editorial policy
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.>>> P058
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Air quality
Emissions
In fiscal 2022, NOx and SOx emissions from Nissan manufacturing facilities in Japan were 340 tons and 2 tons.
Unit 2018
2019
2020
2021
FY 2022
NOx
ton 418
380
364
373
340
SOx
ton 34
14
10
7
2
Volatile organic compounds (VOCs)
In fiscal 2022, VOC*1 emissions from manufacturing plants were 7,990 tons globally, an increase from fiscal 2021 owing to a higher number of vehicles manufactured at sites in Japan*2. We actively continue to promote activities to reduce VOCs, such as switching to materials including water-based paints.
Total
Unit 2018 ton 14,900
2019 9,266
2020 7,186
2021 6,790
FY 2022 7,990
Japan ton 4,482 4,028 3,107 3,019 3,987
North America
ton
4,474
3,960
3,097 3,112
3,156
Europe ton 5,945 1,278 982 658 847
VOCs per vehicle produced
In fiscal 2022, VOCs per vehicle produced were 2.36 kg.
kg/vehicle 4.0
3.0 2.78 2.36
1.95 1.98 1.99 2.0
1.0
0.0 2018 2019 2020 2021 2022 FY
By region Unit Japan kg/vehicle North America kg/vehicle Europe kg/vehicle
2022 6.68 3.18 2.94
FY
*1VOC: Organic chemicals that readily evaporate and become gaseous at normal temperature and pressure conditions. *2The transition values for 2018 have been revised due to a change in the aggregation method for VOCs. *3The table shows chemical substance emissions calculated based on the Japanese government PRTR guidelines. PRTR emissions show total volume excluding substances adherent to the product.
Released substances designated by PRTR Law (Japan)
In fiscal 2021, released substances designated by the the PRTR (Pollutant Release and Transfer Register) *3 Law in Japan were 2,183 tons, the same level as 2,173 ton in fiscal 2020.
By region
Unit
Japan site total ton
Oppama
ton
Tochigi
ton
Kyushu
ton
Yokohama
ton
Iwaki
ton
NTC
ton
Zama Operation Center ton
2018 3,406
715 655 1,573
25 54 378
7
2019 3,339 1,022
467 1,391
21 62 351 26
2020 2,173
697 394 1,042
9 6 3 22
FY 2021 2,183
881 323 942
4 4 3 26
PRTR emissions per vehicle produced (Japan)
In fiscal 2021, PRTR emissions per vehicle produced in Japan were 4.90 kg, a increase from fiscal 2020.
kg/vehicle
4.90
5.0
4.41 4.20
4.0 3.94 3.78
3.0
2.0
1.0
0.0 2017 2018 2019 2020 2021 FY
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Resource dependency: Achievements in reuse
Proper use of regulated chemical substances
Nissan revised its standard for the assessment of hazards and risks in the Renault-Nissan Alliance, actively applying restrictions to substances not yet covered by regulations but increasingly subject to consideration around the world. As a result, the number of substances covered by the Nissan Engineering Standard in fiscal 2022 rose to 7,593 . These steps are thought to be necessary for future efforts in the repair, reuse, remanufacture, and recycle loop for resources. *1
(Substances) 10,000
8,000
7,593
6,000 4,000
5,290
4,043
5,304
4,069
Recycled plastic usage in vehicle
We are making efforts to expand the use of recycled plastic in our vehicles, as well as developing technologies for this. Recycled plastic use in fiscal 2022 was 5%, based on the rate achieved by our best-selling model in Europe.
Automotive shredder residue to landfill ratio
After removing ferrous and nonferrous metals from ELVs, in accordance with the End-of-Life Vehicle Recycling Law in Japan, the ratio of ASR taken to landfills for final disposal was zero in fiscal 2022 as same as 2021`s result.
Material ratio
In 2022, ferrous metals accounted for 61% of the materials used in our automobiles by weight. Nonferrous metals made up another 15% and resins 13%, with miscellaneous materials making up the final 11%. To further reduce our use of natural resources, we are advancing initiatives to expand the use of recycled materials in each of these categories.
2,000 0 2018 2019 2020 2021 2022FY
Recovered bumpers
The number of bumpers collected in fiscal 2022 was 87,000, and the recovery rate decreased by 6.0%.
parts / year 250,000
Number of parts recovered Recovery rate
80.0%
200,000 164,800 67.9% 67.2% 63.0%
57.0%
150,000
122,000
100,000
98,000 93,000 87,000
50,000
0 2018 2019 2020 2021 2022 FY
1Click here for more information on chemical substances governance.>>> P051
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Resource dependency (Facility waste)
Waste
Waste generated globally in fiscal 2022 amounted to 157,982 tons, same level as 158,199 tons in fiscal 2021. Waste generated globally from production sites in fiscal 2022 was 149,999 tons , same level as 150,945 tons in fiscal 2021.
Total
Unit 2018
2019
2020
2021
FY 2022
ton 206,645 199,470 153,160 158,199 157,982
By region
Japan ton 69,829 63,294 48,921 52,386 51,069
North America
ton
64,514
58,970
48,043
51,062
52,007
Europe ton 49,662 50,205 31,868 33,895 36,577
Other ton 22,639 27,001 24,328 20,857 18,329
By treatment method
Waste for disposal
ton
7,231
6,365
6,539
7,208
8,688
Recycled ton 199,414 193,105 146,621 150,991 149,293
Waste per vehicle produced
In fiscal 2022, waste per vehicle produced was 46.73 kg same level as fiscal 2021.
Waste for disposal per vehicle produced
In fiscal 2022, the volume of waste for disposal was increased to 2.57 kg per vehicle produced.
kg/vehicle
60
50
46.47 46.73 38.54 41.93 42.15
40
30
20
10
kg/vehicle 10
8
6
4
2.57
2 1.35 1.34 1.80 2.12
0 2018 2019 2020 2021 2022 FY
0 2018 2019 2020 2021 2022 FY
By region Unit
Japan kg/vehicle
North America
kg/vehicle
Europe kg/vehicle
Other kg/vehicle
2021 117.46
54.90
122.81 11.91
FY 2022 85.54
52.43
127.00 12.19
Responding to the Plastic Resource Circulation Act
The amount of industrial waste generated from plastic products in fiscal 2022 was 3,567 tons.*1
Plastic-related targets
FY2022 Achievements
Continue actions to reduce waste emissions of plastic packaging, etc.
Continued to reuse returnable containers
Maintain a 100% recycling rate for industrial waste from products Maintained a 100% recycling rate
using plastic
*1Plastic Resource Circulation Act : Law for plastic waste
This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.>>> P058
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Contents
Corporate direction
Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Water resource management
Water input for corporate activities
In fiscal 2022, water input for our global corporate activities was 20,208 thousand m³, same level as 20,090 thousand m³ in fiscal 2021. In fiscal 2022, water input from global production sites was 19,065 thousand m³ , the same level as 19,495 thousand m³ in fiscal 2021.
Total
Unit
2018
thousand m³ 26,420
2019 23,656
2020 21,159
2021 20,090
FY 2022 20,208
Japan thousand m³ North America thousand m³
Europe thousand m³ Other thousand m³
13,022 4,930 2,093 6,376
11,918 4,768 1,792 5,178
10,797 3,888 1,373 5,101
10,317 4,047 1,404 4,322
10,472 4,235 1,270 4,231
Water withdrawal by source
Total Surface water Groundwater Third-party water
Unit thousand m³ thousand m³ thousand m³ thousand m³
2022 20,208
1,229 6,331 12,648
FY
Water discharge from corporate activities
The total amount of water discharged in global corporate activities in fiscal 2022 was 13,219 thousand m³, same level as 13,620 thousand m³*1 in fiscal 2021.
Total
Unit
2018
thousand m³ 17,345
2019 15,391
2020 13,624
2021 13,620*1
FY 2022 13,219
Japan thousand m³ North America thousand m³
Europe thousand m³ Other thousand m³
10,472 3,190 1,539 2,143
9,496 2,746 1,389 1,760
8,474 2,351 1,094 1,705
8,771 2,565
707*1 1,577
8,902 2,610
596 1,110
Quality
Chemical oxygen demand (COD) kg Japan only
25,965 22,269 18,017 19,941 24,884
Water discharge by destination
Total Surface water Underground
seepage Third-party water
Unit thousand m³ thousand m³
thousand m³
thousand m³
2022 13,219
8,519
0
4,700
FY
Water discharge from corporate activities (Per vehicle produced)
In fiscal 2022, water discharge per vehicle produced was 3.91 m³, same level as 4.00 m³*1 in fiscal 2021.
/vehicle 10
8
6 3.75 4.00*1 3.91
4 3.23 3.24
2
0 2018 2019 2020 2021 2022 FY
Japan North America
Europe Other
Unit m³/vehicle m³/vehicle m³/vehicle m³/vehicle
2021 19.67
2.76 2.56*1 0.90
FY
2022 14.91
2.63 2.07 0.74
Data for the Japan region includes the manufacture of powertrains and other components for overseas assembly. Since the denominator is vehicles produced in the region, this tends to result in higher values for Japan.
*1Due to an error in the calculation of last fiscal year`s figures, the figures for fiscal 2021 were revised. This figure is subject to assurance by KPMG AZSA Sustainability Co., Ltd. For details, please see here.>>> P058
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Contents
Corporate direction
Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Water consumption in corporate activities
The total amount of water consumed in global corporate activities in fiscal 2022 was 6,989 thousand m³*1, an increase from 6,470 thousand m³*2 in fiscal 2021.
Water consumption in corporate activities (Per vehicle produced)
In fiscal 2022, water discharge per vehicle produced was 2.07 m³ , which was an increase from 1.90 m³*2 in fiscal 2021.
Total
Unit thousand m³
2018 9,075
Japan thousand m³ North America thousand m³
Europe thousand m³ Other thousand m³
2,550 1,740
554 4,233
2019 8,265
2,422 2,022
403 3,418
2020 2021 7,535 6,470*2
FY 2022 6,989
2,323 1,537
279 3,396
1,546 1,481
697*2 2,745
1,570 1,625
674 3,121
/vehicle 10
8
6
4 1.69 1.74 2.07 1.90*2 2.07
2
0 2018 2019 2020 2021 2022 FY
Region Japan North America Europe Other
Unit m³/vehicle m³/vehicle m³/vehicle m³/vehicle
2021 3.47 1.59 2.53*2 1.57
FY
2022 2.63 1.64 2.34 2.07
Data Editorial policy
*1Based on GRI 303, total water consumption is total water withdrawn minus total water discharged as calculated by Nissan. *2Due to an error in the calculation of last fiscal year`s figures, the figures for fiscal 2021 were revised.
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Contents
Corporate direction
Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Strengthening our business foundations to address environmental issues
Global top-selling model`s life cycle improvements
We have been expanding the application of the LCA method and enhancing the understanding of the environmental impact of our products in quantitative terms, especially our best-selling models worldwide. Coverage on a unit basis has reached approximately 80% of models globally and approximately 90% in Europe.
Lifecycle CO equivalent emissions (CO, CH, NO, etc.)
% 100
% 100
80
80
60
60
40
Current model:
40
Current model:
1.5 liters, CVT
1.3 liters, 6MT
20
Previous model: 2.5 liters, CVT
20
Previous model: 2.0 liters, CVT
0 Previous model
Current model
0 Previous model
Current model
Rogue (X-Trail)1
Qashqai2
Production & logistics Fuel & electricity production Usage Maintenance ELV
1 Production in the U.S., 120,000 miles driven in the U.S. (basis for comparison). 2 Production in EU, 150,000 km driven in EU (basis for comparison).
LCA comparison for e-POWER models
Nissan introduced its new e-POWER powertrain in 2016, marking another significant milestone in the electrification strategy with lifecycle emission improvements. Compared to their gasoline-powered counterpart models, the Note e-POWER and Serena e-POWER have achieved a 18% and 27% reduction in CO emissions, respectively.
Life Cycle CO Equivalent Emissions (CO, CH, NO, etc.)
% 100
% 100
80
80
60
60
40
e-POWER : 1.2 liters
40
Base model : 1.2 liters
20
20
e-POWER : 1.4 liters Base model : 2.0 liters
0 Base model e-POWER Note
0 Base model e-POWER Serena
Production & logistics Fuel & electricity production Usage Maintenance ELV Production in Japan, 100,000 km driven in Japan (basis for comparison).
LCA comparison of EV models
The Nissan LEAF reduces its lifecycle CO emissions by approximately 32% compared to conventional vehicles of the same class in Japan. The Nissan ARIYA and Nissan Sakura launched in 2022, further improve EV product appeal and reduce environmental impacts. Compared to Japanese gasoline-powered vehicles in the same class, the Nissan ARIYA and Nissan Sakura reduce lifecycle CO emissions by 17-18%.
Lifecycle CO equivalent emissions (CO, CH, NO, etc.)
% 100
% 100
80
80
60
60
40
Nissan LEAF
40
Nissan ARIYA
20
20
0 Same
class model: Gasoline 1.8 L
%
100
Nissan LEAF: 40 kWh Battery
80
60
40
20
Nissan Sakura
0 Same
class model: Gasoline 2.0 L
Nissan ARIYA: 66 kWh Battery
Production & logistics Fuel & electricity production Usage Maintenance ELV
Production in Japan, 100,000km driven in Japan (basis for comparison).
0 Same
class model: Gasoline 0.66L
Nissan Sakura: 20.6kWh Battery
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Contents
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Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Lifecycle improvements beyond climate change
Nissan is expanding the scope of LCAs to include not just greenhouse gases but also a variety of chemicals. Our calculations show that, compared to conventional gasoline engines, the new Qashqai achieves reductions in emission 5-19% for all targeted chemical substances, and reduces environmental impacts throughout its lifecycle.
Emissions improvement in the New Qashqai over
its life cycle
NMVOC
95%
CO2 100%
81%
80%
60%
40%
CH4
82%
20%
0%
89%
PM
81%
N2O
87%
SO2
94%
NOx
Conventional Mild Hybrid
Production in EU, 150,000 km driven in EU.
Material balance
Input
Raw materials Energy
Renewable energy Water withdrawal
Unit ton MWh MWh thousand m³
2021 3,065,721 7,495,492
289,067 20,090
FY
2022 3,351,577 7,195,408
311,033 20,208
Output
Vehicles produced Global production
volume CO emissions Water discharge Emissions
NOx SOx VOC Waste For recycling For final disposal
Unit
k unit t-CO thousand m³
ton ton ton
ton ton
2021
FY 2022
3,404 2,231,430*1
13,620*2
373 7
6,790
150,991 7,208
3,381 2,096,322
13,219
340 2
7,990
149,293 8,688
Environmental conservation cost*3
Total Business area Upstream/ downstream Management R&D Social activities Damage repairs
Unit mil ¥ mil ¥
FY
2021
2022
Investment Cost Investment Cost
4,144 125,145 6,955 134,697
91 1,713 392 1,829
mil ¥
0
407
0
436
mil ¥ mil ¥ mil ¥ mil ¥
0 4,053
0 0
12,899 109,824
87 215
0 6,563
0 0
12,370 119,909
124 29
Total Cost reduction
Profit
Unit mil ¥ mil ¥ mil ¥
2021 8,816
192 8,623
FY 2022 10,465
478 9,987
*1The values for fiscal 2021 have changed due to the disclosure of greenhouse gases other than CO emissions from energy use as a separate item. *2Due to an error in the calculation of last fiscal year`s figures, the figures for fiscal 2021 were revised. *3All environmental costs are based on the guidelines provided by Japan`s Ministry of the Environment, and calculated for activities in Japan only.
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Contents
Corporate direction
Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Social data
Employee data
Nissan Motor Co., Ltd.
Number of employees
Average age
Average length of service
Number of new hires
Employee turnover rate*1 Disabled employment ratio Number of unionized employees*2
Unit
Male Female
Male Female
Male Female
Male Female
Voluntary Resignation
People People
Age Age Years Years People People
People
2020
22,827 20,199
2,628 41.6 42.0 38.5 16.9 17.4 13.4 828 715 113 4.6 2.4
2.3
26,503
2021
23,166 19,862 3,304
41.9 42.1 40.7 17.0 17.8 12.0 986 860 126
5.3 2.6
2.5
26,108
FY
2022
23,525 20,174 3,351
41.7 41.8 40.9 16.4 17.1 12.3 1,527 1,316 211 6.2
2.7
2.5
26,434
Average annual salary*3
Yen 7,965,467 8,110,304 8,509,353
All employees
-
Male and female average pay
Regular employees
-
difference*4
Non-Regular employees
-
81.1
81.9
76.9
78.0
85.5
88.1
Ratio of employees subject to personnel evaluation Days of paid holiday taken*5 Taken paid holiday ratio*5
Average overtime *5
Number of employees taking childcare leave
Ratio of male employees taking childcare leave*6
Ratio of employees those who return from childcare leave
Number of employees taking nursing care leave
Number of female managers
Of which, equivalent to GM
Non-Japanese indirect employee ratio Non-Japanese manager ratio
Unit
Male Female
Days
Hours/ month People
People
Male Female
Male Female
Female ratio
Female ratio
People People People
People
2020
2021
100
100
17.5 89
18.8
413 96 317
24.0
98.3 100 96.6
17 13 4 334 10.4 92 8.6 5.7 6.5
20.0 102
24.1
430 122 308
20.6
98.9 98.5 99.0
8 6 2 331 10.3 92 8.5 5.2 5.7
2022
100
19.7 96
25.6 373 246 127
42.3
94.2 94.3 94.1
13 11 2 330 10.4 92 8.6 5.8 5.8
Training sessions
Annual number of participants
Total hours of training
Average hours per employee
Participant satisfaction (out of 5)
Unit People Hours Hours
Score
2020 304,225 250,251
11.1
Above 4.2
2021 395,448 328,783
14.3
Above 4.2
2022 519,905 392,294
16.5
Above 4.2
Investment per employee
Yen
64,000 67,000 75,000
Corporate officers and Board of Directors
Non-Japanese executive ratio Number of female corporate officers
Number of female Board of Directors
Of which, internal
Of which, external
Unit FY2020 FY2021 As of July 1st, 2023
46.7
46.7
46.2
People
2
2
4
Female ratio
3.9
3.9
7.7
People
2
2
2
Female ratio
16.7
16.7
20.0
People
0
0
0
Female ratio
0
0
0
People
2
2
2
Female ratio
28.6
28.6
33.3
*1Employee turnover rate includes retirement. *2Number of unionized employees includes full-time employees, Senior Partners (reemployment after retiring) and contract employees. Number of unionized employees includes those of Nissan Motor Kyushu. *3Average annual salary for employees includes bonuses and overtime pay. *4Ratio of the average pay of female to that of male, calculating the average pay by dividing the total amount paid, including salaries, allowances, and bonuses, by the number of employees. Although there is a gap in average pay per person due to differences in composition between male and female, such as the
ratio of managers, there is no difference in treatment between male and female in the pay. *5While the average for the calendar year (January to December) was stated before 2021, it is changed to the average for the fiscal year (April to March) from 2022. The figures exclude managers. *6Ratio of male employees taking childcare leave: (Numerator) Number of male employees who take childcare leave at least 1 day in the year. (Denominator) Number of male employees whose spouses give birth in the year.
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Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Unit Global
People
Japan
North
Consolidated number America
of employees*1
Europe
Asia
Other overseas regions
Number of new hires
Japan*2
North America
Europe
Asia
Other overseas regions
Employee turnover rate
Japan
North America
Europe
Asia
Ratio of female managers
Other overseas regions
Global employee survey *3 (engagement)
Number of days lost to strike action
Score
Response rate
Serious accident count (GUR)
Occupational accident frequency rate (FR1)
People People People People People People People People People People People
Days
2020
2021
FY
2022
131,461 16,092
58,577
134,111 15,743
60,145
131,719 15,397
60,423
35,120
36,969
37,745
13,891 18,745
12,826 18,367
10,037 17,649
5,128
5,804
5,865
-
-
-
-
8,067 1,464
-
-
4,995
-
-
638
-
-
204
-
-
766
-
-
5.3
-
-
2.6
-
-
6.9
-
-
7.3
-
-
3.9
-
-
5.6
14.7
14.9
15.5
68
67
69
88
88
90
-
-
0
51
39
44
1.18
0.98
0.91
Trade union
Most of the company`s employees are affiliated with the Nissan Motor Workers` Union, for which the governing body is the All Nissan and General Workers Unions, and the Japanese Trade Union Confederation (RENGO) through the Confederation of Japan Automobile Workers` Unions. The labor management relations of the company are stable, and the number of union members was 26,434 including those of Nissan Motor Kyushu as of March 31, 2023. At most domestic Group companies, employees are affiliated
with their respective trade unions on a company basis, and the governing body is the All Nissan and General Workers Unions. At foreign Group companies, employees` rights to select their own trade unions are respected according to the relevant labor laws and labor environment in each country. The percentage of countries with unionized operations (only countries with consolidated vehicle assembly plant) is 70% (7/10 countries) and that of union members covered by collective bargaining agreement is approximately 62% (excluding UK).
Major external safety ratings (Based on 2022 assessments)
Regions External Assessments
Models
Japan
JNCAP*4Car Safety Performance 2022
NCAP*5 U.S.
IIHS*6
Sakura
Nissan LEAF, Nissan LEAF Plus, Murano, Altima, Maxima, Sentra, Versa, INFINITI QX50, Rogue, Rogue Sport AWD TITAN (Crew Cab), Frontier(Crew Cab), Rogue(Early Release), Nissan Kicks, Rogue, Rogue Sport FWD
Pathfinder, QX60
Rogue
Europ Euro NCAP
Ariya
Australia ANCAP
Latin America
Latin NCAP
China C-NCAP
Pathfinder, Qashqai, X-Trail Qashqai X-Trail
Rating 5 (Highest score) 5 Overall Rating(2022 model year) 4 Overall Rating(2022 model year) 2023 Top Safety Pick+ 2023 Top Safety Pick 5 5 5 5
Ratio 1/1 10/15 5/15 2/3 1/3 1/1 3/3 1/1 1/1
*1Numbers in brackets denote part-time employees not included in the consolidated number of employees. *2Total of new hires of Nissan Motor Co., Ltd. and Nissan Motor Kyushu Co., Ltd. *3A maximum score of 100 points, average score of 91 domestic and overseas companies that participated in the employee awareness survey. *4JNCAP: Japan New Car Assessment Program. An automobile assessment program run by the Ministry of Land, Infrastructure, Transport and Tourism and the National Agency for Automotive Safety and Victims` Aid (NASVA). *5NCAP: U.S. National Highway Traffic Safety Administration`s New Car Assessment Program *6IIHS: U.S. Insurance Institute for Highway Safety
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Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Diversity, equity and inclusion
External recognition*1
Region
Awarded company
Awarded year (in calendar year)
2022
Japan
Nissan Motor Co., Ltd
Nissan Americas
2022 2017 2017 2015 2015 2015 2015 2022 2022
2022
Americas
Nissan North America, Inc. Nissan Canada Inc.
AMIEO Africa/Middle East/India/Europe
/Oceania
Nissan Mexicana, S.A. De C. V., NR Finance Mexico
all Nissan South America countries, Argentina, Chile,
Brazil and Peru Nissan South America
Nissan
Nissan Motor (GB) Ltd.
Renault Nissan Technology Business Centre (RNTBCI)
China
Nissan ChinaNCIC
2022
2022 2022 2021 2017 2022 2021 2023 2022
2022
2022 2022 2022 2022 2022 2022 2022
2022
2022
2022
Title of the Award LinkedIn Talent Awards 2022 Diversity Champion category finalist Gold Award in PRIDE Index (sixth consecutive year) Level-three Eruboshi accreditation Nadeshiko Brand (fifth consecutive year) Incentive prize, Empowerment Award Platinum Kurumin Mark Prize for excellence, 15th Telework Promotion Awards Japan's Minister of State for Special Missions Prize, Advanced Corporation Awards for the Promotion of Women DEI Impact Award: Systemic Change Organization Regional Corporate OEM Of The Year
America`s Top Corporations for Women`s Business Enterprises (WBEs) (second consecutive year)
Top Supplier Diversity
GJCP Excellence in Diversity Award Corporate Partner of the Year
Regional Automotive Corporation of the Year Perfect Score (100) in Corporate Equality Index (fifth consecutive year) Great Place to Work Canadafourth consecutive year
Top 100 Ideal Employer for Interns (sixth consecutive year) Best Places to Work LGBTQ+ Mexico(Third consecutive year for NR Finance Mexico, second consecutive year for Nissan Mexicana, S.A. De C. V. ) Top Company for Women
Sponsor
LinkedIn
Work with Pride
Kanagawa Labor Bureau, Ministry of Health, Labour and Welfare (MHLW)
Ministry of Economy, Trade and Industry(METI) and Tokyo Stock Exchange(TSE)
Japan Productivity Center
Kanagawa Labor Bureau, MHLW
Japan Telework Association
Gender Equality Bureau, Cabinet Office
Center for Automotive Diversity, Inclusion & AdvancementCADIA
Southern Region Minority Supplier Development CouncilSRMSDC Women`s Business Enterprises National Council (WBENC) (U.S.) Black EOE Journal Hispanic Network Magazine Professional WOMAN`s Magazine Greater Jackson Chamber Partnership
Tennessee Latin Chamber of CommerceTLACC Southern Region Minority Supplier Development Council. Inc. (U.S.)
Human Rights CampaignU.S.
Great Place to Work Canada The Canadian Universum Survey (Canada)
Human Rights Campaign Equidad MX
Top Companies Expansion
Great Place to Work Latin America
Great Place to Work
Diversity and Intersectionality LATAM Women`s Network Corporate Sponsor of the Year Valuable 500 Pride 365 Certified (second consecutive year) Top 100 Best Companies for Women in India 100 Best Hall of Famefifth time 2022 Best employer
2022 The Most Attractive EmployerTop 100
1.Best CSR Strategy 2.Best CSR Brand3rd time 3.Public Recognition Award Best Class Digital Learning Application
Women in Management 100 Black Men of Greater Dallas Fort Worth chapter Valuable 500 InterPrideUK AVTAR Group & Seramount Best of Best Conference 2022 by Avtar and Seramount Human Resources Association for Chinese & Foreign Enterprises Shixiseng.com Local job board for intern & campus recruiting Shixiseng.com
CSR China Education Award
BOOAOO Award
*1In the United States, Nissan has also received awards other than those listed above.
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Contents
Corporate direction
Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Product safety and quality
Recalls in FY2022*1
Country/Region Number of recalls Recalled vehicles (1,000 units)
Japan
14
781
North America
22
2,439
Europe
2
0
Other
21
278
Global
46 *1
3,490
Contributing to local communities
Social contribution achievements in FY2022
Global social contributions (FY2022): 2.79 billion yen Social contributions include:
Expenses for implementing philanthropic activities (excluding labor costs)
Monetary donations and NPO membership fees for philanthropic purposes
Cash equivalents of in-kind donations Sponsorship fees for philanthropic initiatives
Breakdown of FY2022 global social contributions
Philanthropic activities
Monetary donations
In-kind donations (cash equivalent)
Sponsorships, etc.
Amount (¥ million) 918
1,580 67
227
% of total 32.9 56.6 2.4 8.1
Total
2,792
100
Data Editorial policy
*1Each recall action is counted as one case, so the total number of recalls in each country and region is not equal to the global number of recalls. We respond to all safety-related investigation requests from authorities in each country.
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Contents
Corporate direction
Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Governance data
Status of attendance at meetings of the Board of Directors and committees in FY 2022 (April 2022 through March 2023)
Number of times Board of Directors meetings were convened
13
Average attendance ratio per meeting
98.7%
Board of Directors
Committee
Nomination Committee
Compensation Committee
Audit Committee
Number of times Nomination Committee meetings were convened
Average attendance ratio per meeting
Number of times Compensation Committee meetings were convened
Average attendance ratio per meeting
Number of times Audit Committee meetings were convened
Average attendance ratio per meeting
9 100%
12 100%
12 100%
Overview of corporate governance (as of end of March 2023)
Organization form
Chairperson of the Board of Directors
Number of directors
Number of independent outside directors
Number of female directors
Chairperson of the Nomination Committee
Number of directors
Number of independent outside directors
Number of female directors
Chairperson of the Compensation Committee
Number of directors
Number of independent outside directors
Number of female directors
Chairperson of the Audit Committee
Number of directors
Number of independent outside directors
Number of female directors
Company with three statutory committees
Independent outside director 12 7 2
Independent outside director 6 5 1
Independent outside director 4 4 2
Independent outside director 5 4 1
Data Editorial policy
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Contents
Corporate direction
Environmental
Corporate overview
Environmental data
Social Social data
Governance Governance data
Data Editorial policy
Editorial policy
ESG data book 2023 editorial policy
Nissan intends to present its initiatives with enriched data disclosure in its annual ESG data book so that stakeholders can gain a better understanding of Nissan`s sustainability initiatives. The ESG data book 2023 reports on Nissan`s sustainability strategy and management based on Nissan Sustainability 2022, the sustainability strategy established in June 2018. It also reports on results achieved in fiscal 2022 in terms of the following three key aspects: Environmental, Social, and Governance, or lE,z lS,z and lGz for short.
Scope of the report
Period Covered: The report covers fiscal 2022 (April 2022 to March 2023); content that describes efforts outside this period is indicated in the respective sections. Organization: Nissan Motor Co., Ltd., subsidiaries and affiliated companies in the Nissan Group.
Referenced reporting guidelines
GRI (Global Reporting Initiative) standards Nissan has prepared this report in accordance with the GRI Standards for the period April 1st, 2022 through March 31, 2023.
Publication of GRI content index Please visit the following website for the GRI content index.
https://www.nissan-global.com/EN/SUSTAINABILITY/ LIBRARY/SR/2023/GRI/
TCFDTask Force on Climate-related Financial Disclosures recommendations
SASBSustainability Accounting Standards Board
Date of previous report
Sustainability Report 2022, issued July 30, 2022.
Reporting cycle
Annually since 2004
Third-Party assurance
For more information on the third-party assurance. >>> P058
Forward-looking statements
This ESG data book contains forward-looking statements on Nissan`s future plans and targets and related operating investment, product planning and production targets. There can be no assurance that these targets and plans will be achieved. Achieving them will depend on many factors, including not only Nissan`s activities and development but also the dynamics of the automobile industry worldwide, the global economy and changes in the global environment.
For further information
Nissan Motor Co., Ltd. Sustainability Development Department Email:NISSAN_SR@mail.nissan.co.jp
ESG data book 2023
Publication date: July 31, 2023
Our related websites
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