Sustainability Report 2010 Contents

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Sustainability Report 2010 Contents SustainabilityNissan: Enriching People’s Lives ReportSustainability2010 Report 2010 NISSAN Sustainability Report 2010 Contents Contents Introduction 001 CEO Statement 002 Nissan’s Approach to CSR Toward Sustainable Development for Nissan and Society 004 ■ Nissan’s CSR Management Way 005 ■ Our Eight Key Areas for CSR 010 ■ Nissan CSR Scorecard 012 Protecting the Environment Achieving a Symbiosis of People, Vehicles and Nature 017 ■ Nissan’s Business Activities and the Environment 018 ■ Environmental Management 020 ■ Reducing CO2 023 ■ Protecting the Air, Water and Soil 033 ■ Toward Sustainable Recycling of Resources 036 ■ Our Ecosystem and Biodiversity Approach 041 Improving Safety Aiming for a Society with No Traffic Accidents 042 ■ Nissan’s Safety Approach 043 ■ Developing Safety Technologies 045 ■ Working Together with Society 049 ■ Our Traffic Safety Activities 050 Enhancing Value for Stakeholders Realizing Sustainable Development for People and Society 051 ■ For Our Customers 052 ■ With Our Shareholders and Investors 056 ■ With Our Employees 057 ■ With Our Business Partners 063 ■ With Society 066 Corporate Governance Maintaining Trust Through Transparency 071 Fiscal 2009 Financial Review 080 Performance Data 081 Business and Other Risks 082 Third-Party Evaluation 084 Blue Citizenship 085 NISSAN Sustainability Report 2010 001 Introduction Introduction Guided by its corporate vision of Enriching People’s Lives, Nissan aims to contribute to the sustainable development of society through its business activities, and is involved in a wide variety of efforts worldwide. We have made pioneering efforts to develop electric vehicles, in response to growing concern about the potential impact of human activities on the environment, and to make mobility more affordable for people in China, India and other emerging economies. In addition to these business activities, we devote our energies to corporate social responsibility initiatives. We believe this lets us align two of our vital management objectives: sustainable, profitable growth for the company and the sustainable development of society as a whole. In fiscal 2005 Nissan formulated a CSR Policy and identified key areas of focus for CSR-related activities. To gauge our progress in these key areas, we created a CSR scorecard, which we have published in this report each year since 2007. Sharing the scorecard with the public in this way both increases the transparency of our actions and gives us a valuable opportunity to incorporate feedback from society. We will continue listening to the views of our stakeholders as we move forward as a global automaker. Out of consideration for the environment, the Sustainability Report is no longer being published in print form. It can be downloaded from our website as PDF files. CORPORATE PROFILE Date of Establishment: December 26, 1933 Vision: Nissan: Enriching People’s Lives Consolidated Net Sales (Fiscal 2009): ¥7.5173 trillion Mission: Number of Employees (As of March 31, 2010): 169,298 Nissan provides unique and innovative automotive products Group Structure and Business Outline: and services that deliver superior measurable values to all The Nissan Group consists of Nissan Motor Co., Ltd., stakeholders* in alliance with Renault. subsidiaries, affiliates and other associated companies. Its *Our stakeholders include customers, shareholders, employees, dealers main business includes sales and production of vehicles, and suppliers, as well as the communities where we work and operate. forklifts, marine products and related parts. The Nissan Group also provides various services accompanying its main business, such as logistics and sales finance. WEB Our Related Websites Corporate Information Corporate Social Responsibility http://www.nissan-global.com/EN/COMPANY/ http://www.nissan-global.com/EN/COMPANY/CSR/ Environmental Activities Quality Initiatives http://www.nissan-global.com/EN/ENVIRONMENT/ http://www.nissan-global.com/EN/QUALITY/ IR Information Safety Activities http://www.nissan-global.com/EN/IR/ http://www.nissan-global.com/EN/SAFETY/ Product Information (by Country) Latest Technologies http://www.nissan-global.com/EN/GLOBAL/ http://www.nissan-global.com/EN/TECHNOLOGY/ Product Information (Japan) Design Activities http://www.nissan.co.jp/ http://www.nissan-global.com/EN/DESIGN/ Citizenship Activities Company Information Library http://www.nissan-global.com/EN/CITIZENSHIP/ http://www.nissan-global.com/EN/COMPANY/LIBRARY/ NISSAN Sustainability Report 2010 002 CEO Statement CEO Statement Carlos Ghosn President and Chief Executive Officer Nissan Motor Co., Ltd. A company’s sustainability is generally viewed from the perspective of its prospects over the long term. Achieving sustainability requires hard work every step of the way. For Nissan, this means taking steps in the short term that build and reinforce sustainable business objectives over longer periods. Making sure our short-term decisions are part of a long-term strategy is especially important in times of crisis. The financial and economic crisis that has unfolded since autumn 2008 hit the global automobile industry particularly hard. It was initially clear that a business slowdown would confront us, but as the depth of the problems became evident, we moved swiftly to take recovery actions. We suspended Nissan GT 2012, our midterm business plan, in February 2009 and began to implement short-term controls to protect our free cash flow and improve our business performance. We also focused on private-public dialogue, delivering clear messages to governments and various stakeholders around the world about the risks facing our industry. During this period, we also kept our eye on priorities for the medium and longer term. For example, Nissan remains firmly committed to leadership in zero-emission vehicles and to affordable cars that will bring mobility to more people than ever. These objectives are linked. We know that human populations and incomes will continue to rise; as incomes rise, people will seek the mobility that only cars can provide. Giving them access to mobility in ways that minimize the impact on the global environment is our duty as a responsible automaker. Sustainability comes from offering cars that are the most environmentally friendly, most fuel-efficient and most affordable possible. Our work in zero-emission mobility is an important pillar in our sustainability strategy. We remain on track to bring new electric vehicles to the Japanese, U.S. and European markets in 2010 and to mass-market our zero-emission lineup globally two years later. The basic technology of a battery-powered motor is decades old, and many firms today are building electric cars in limited numbers and putting them on the road. Nissan’s approach is entirely different. With our Alliance partner, Renault, we are putting in place a zero-emission mobility system. We are not selling electric cars as stand-alone products. With many different entities, we are involved in every single aspect surrounding electric cars. We are developing batteries with partners. We are investing in battery and vehicle production. We are involved in the infrastructure for charging and recycling the batteries. We are working with governments that are acting to offer financial incentives and educate EV car buyers. Our zero-emission lineup is being presented as an integrated part of an entire mobility system that will fully serve and satisfy our customers. Governmental support will influence the acceptance of zero-emission cars and help to create a zero-emission society. Our recognition of this has driven us to work closely with national and local governments around the world. To date, Nissan has agreements with more than 60 governments that are eager to make EVs part of the transportation landscape. Governments and societies in general are becoming increasingly concerned about the threat of climate change and the price and availability of oil. Zero-emission cars bring a solution that many governments are open to receive. The way forward is growing clearer, and Nissan is helping to chart this course. NISSAN Sustainability Report 2010 003 CEO Statement Another pillar of Nissan’s approach to sustainability is a commitment to providing access to mobility to as many people as possible. Demand for cars is growing rapidly in emerging automotive markets like India and China. Once people reach a certain level of prosperity, they look to the automobile as a safer, more reliable way to transport their families and as a means to achieve greater autonomy. Through our Alliance with Renault and our cooperative ties with other automakers spanning the globe, we are developing V- platform cars—fuel-efficient compact cars for global markets—and entry-price and ultra-low-cost cars, thus putting more affordable cars within the reach of more consumers. From the environmental perspective, putting vast numbers of new vehicles on the road may appear to be a heavy burden for the planet to bear. Indeed, we will need a fresh outlook on ways to develop products appropriate to these markets without compromising on the environmental front. Our role is to meet the demand by creating affordable, safe cars that do not fall short in terms of eco-friendliness. This means EVs, certainly, but we are also working on a range of low-carbon and low-emission technologies called “PURE DRIVE” for our gasoline and diesel engines. By continuously advancing technologies in a range of products, we can meet the different needs of consumers in different markets. Making cars
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