SUZUKI CSR & ENVIRONMENTAL REPORT SUZUKI AIMS TO CONTRIBUTE TO THE SOCIETY AND BECOME A COMPANY LOVED AND TRUSTED THROUGHOUT THE WORLD Suzuki CSR & Environmental Report 2018 CONTENTS Introduction Corporate Philosophy 4 Top Message 3 CSR Policy 6 Environmental Initiatives Efforts in Production and Offices 47 Environmental Initiatives 11 Transportation 57 Design, Development, and Procurement 29 Efforts by Sales Distributors 59 CSR Initiatives Efforts for Product Quality 64 With Local Communities 88 With Our Customers 65 Efforts by Domestic Plants and Technical Centers 96 With Our Business Partners 73 Efforts by Domestic Sales Distributors 103 With Our Employees 75 Efforts by Overseas Group Companies 106 With Our Shareholders and Investors 83 Suzuki Foundation Activities 115 Corporate Governance Corporate Governance 119 Compliance System and Risk Management System 123 Data Company Profile 130 History of Environmental Initiatives 144 Environmental Data 132 Company Data 146 Guidelines Reference Table GRI Standards Reference Table 149 Editorial Policy About this report Suzuki CSR & Environmental Report 2018 introduces various CSR and environmental initiatives conducted by the Suzuki Group. For this fiscal year, we have further upgraded its contents, aiming to deepen understanding of the Group’s initiatives among our stakeholders. Suzuki Website Information Covered The report can be viewed in HTML version at Suzuki’s corporate website. This report covers information about not only Suzuki Motor http://www.globalsuzuki.com/corporate/environmental/ Corporation, but also domestic and overseas Suzuki Group ESG (Environment, Social, and Governance) index is also available at this page, companies. (Unless “related companies”, “dealers”, or “overseas” is which enables easy access to ESG information according to their contents. indicated in each description, the information is related to Suzuki Motor Corporation.) Period Covered "Domestic plants" in this report refers to 6 plants in Japan: Kosai Plant, Iwata The period covered by this report is the FY2017 (from 1 April 2017 Plant, Sagara Plant, Takatsuka Plant, Toyokawa Plant, and Osuka Plant. through 31 March 2018). However, this report also contains descriptions on some activities taking place before or after that time period. Disclaimer ∙ Please note that the website addresses indicated in this report may Date of Publication be changed without notice. September 2018 ∙ Forecasts and plans covered in this report are judged by the Company, (Date of previous publication: January 2018, Scheduled date of next based on currently available information and assumptions. Please note publication: Autumn 2019) that the actual results may greatly vary by the changes of various factors. Referred Guidelines Publisher “Environmental Reporting Guidelines 2012” by the Ministry of the Corporate Communications Department, Suzuki Motor Corporation Environment, 300 Takatsuka-cho, Minami-ku, Hamamatsu, Shizuoka, Japan 432-8611 Global Reporting Initiative (GRI) Standards, etc. TEL: 053-440-2030 2 SUZUKI CSR & ENVIRONMENTAL REPORT 2018 Introduction Corporate Guidelines Environment CSR Data Governance Reference Table Top Message The Group has been placing “Develop products of superior value by focussing on the customer” as the first paragraph of the mission statement. We will constantly make the best effort to create truly valuable products that satisfy our customers. Under the slogan “Small cars for a big future”, we will work toward manufacture of “small cars” and “environmentally-friendly products” which are wanted by our customers. We will also work on lean, efficient and sound management by emphasising the “Smaller, Fewer, Lighter, Shorter, and Neater” concept in all areas. The automobile industry is undergoing a period of great transformation. In such transformation, it is necessary to open up the future in long-term outlook by imaging the targeted aspect of 10 years and 15 years ahead, and tracing back to the present to think about what should be done from now. Of the activities toward this long-term outlook, CSR initiatives introduced in this report are strengthened through ESG (environmental, social, and governance) point of view, which is receiving increased attention and expectations from the stakeholders, as per below. As for climate changes, we clearly recognise it as a risk and an opportunity related to the business of the Company. For example, while various regulations including those for exhaust gas and CO₂ / fuel consumption levels are becoming stricter, increase in burden of research expenses to comply with these regulations is a risk that may largely affect the performance of the Company. On the other hand, small cars, which Suzuki excels in, require fewer materials and energy in production, and emit less CO₂ while in use. We have the strength in developing and popularising these technologies, and by continuing to enhancing these technologies, we are able to make climate changes into a big opportunity. From this point of view, as for environmental problems, we not only need to boost the extension of conventional technologies but initiatives for new technologies as well. Along with making of small cars and development of high-efficiency powertrain which Suzuki excels in, we will proactively make efforts in expansion and strengthening of hybrids and new development of EVs. The Group is applying the Suzuki Environmental Plan 2020 and working for the development and adoption of environmental technologies and reduction of CO₂ emissions. As for social issues, we are making efforts in quality problem by considering it as the most important issue for the Group. Customer safety and security is the top priority for the Group, and we are working to develop and produce high-quality products which customers can use safely and securely and to provide after-sales services. The Group will continue to make the utmost effort to ensure that customers can use our products safely and securely. Also, we will actively work on contribution to the community, investment in people, development of human resources, and work safety, so that we can respond to expectations by the stakeholders. As for governance, through fair and efficient corporate activities, we wish to continuously be a sustainably developing company that will gain trust from the stakeholders and contribute further in the international society. In order to realise this, we will advance our corporate governance and compliance systems and strengthen our initiatives on management systems and legal compliance. We are committed to disclose information concerning these CSR initiatives comprehensively through this report and promote communication with the stakeholders. We will also actively make efforts for achieving new target of SDGs (Sustainable Development Goals adopted by the United Nations) through CSR activities. In the midst of necessity to stand on long-term outlook and accelerate investment for growth centred in India, by balancing between investments for such growth and strengthening of its management base through each initiative in environment, social, and governance, the Group will consistently promote efforts for enhancing corporate value. With respect to the case regarding sample testing of fuel economy and emissions, we would like to offer our sincere apologies for the concern this matter has caused to our customers and business partners. We deeply regret on this matter and will make efforts in structuring preventive measures by having thorough research and verification by the outside experts through securing objectivity and neutrality, not only on this matter, but on the whole final inspection process. We aim to become a Group loved and trusted throughout the world and will continue working on contributions to the environment and the society. We ask for your continued support. Representative Director and President Toshihiro Suzuki 3 SUZUKI CSR & ENVIRONMENTAL REPORT 2018 Introduction Corporate Guidelines Environment CSR Data Governance Reference Table Corporate Philosophy Basic policy for company management The Group has been placing “Develop products of superior value by focussing on the customer” as the first paragraph of the mission statement. We will constantly make the best effort to create truly valuable products that satisfy our customers. Under the slogan “Small cars for a big future”, we will work toward manufacture of “small cars” and “environmentally- friendly products” which are wanted by our customers. We will also work on lean, efficient and sound management by emphasising the “Smaller, Fewer, Lighter, Shorter, and Neater” concept in all areas. Our executive officers and employees will strictly adhere to all statutes, social norms, and in-house rules, etc., act fairly and with sincerity. Mission statement In 1962, Suzuki established the “Mission Statement” which indicates the Corporate policy of Suzuki. It sets goals to strive for accomplishing corporation’s social missions, for the corporate organisation that the one belongs to, and for the one’s own self. With the motto “products of superior value”, all employees are making daily efforts in creating value-packed products. Suzuki Group mission statement (established in 1962) 1. Develop products of superior value by focussing on the customer 2. Establish a refreshing and innovative company through teamwork 3. Strive for individual excellence through continuous improvement 4 SUZUKI CSR & ENVIRONMENTAL REPORT 2018 Introduction Corporate Guidelines Environment CSR Data Governance Reference