Commitment of Top Management Sustainability Management Environment Social Governance ESG Data

Feature 1: The New Environmental Plan Package

MITSUBISHI MOTORS believes that to realize a sustainable society, we must strike a balance between preservation of the global environment and the progress of humankind. Based on this understanding, we have formulat- ed the New Environmental Plan Package, which defines the directions and targets of our environmental directives. On this basis, we will endeavor to preserve the global environment by leveraging our strengths in such areas as plug-in hybrid electric vehicles and other electric vehicle technologies.

Basic Approach Structure of the New Environmental Plan Package The New Environmental Plan Package has three components: the Environmental Policy, the Environmental Vision 2050 ’ Vision is to “Create a vibrant soci- and the Environmental Targets 2030 ety by realizing the potential of mobility,” and one ele- ment of the Mission for realizing the Vision is to “Make positive contributions to the sustainable development Currently 2030 2040 2050 of our society. “Small but Beautiful,” the mid-term business plan we unveiled in July 2020, identifies our challenges as “Con- 1 Environmental Policy ducting business with an emphasis on contributing to all stakeholders and society” and “Selection and concen- 3 Environmental Targets 2030 2 Environmental Vision 2050 tration in line with our strengths and earnings area.” On this basis, we will decisively complete structural reforms with a view to stabilizing our management foundation. Furthermore, we consider environmental issues to be 1 Environmental Policy material and believe they must be addressed with- Three Environmental Issues →P15 out delay. Given that the problem of climate change is • Directions for universal initiatives MITSUBISHI MOTORS Will Face Head-on now becoming a reality and reflecting social trends, we formulated the New Environmental Plan Package based on our recognition of the need to define the direction of 2 Environmental Vision 2050 Action to • Recognition of social demands Resource Pollution initiatives that anticipate society 30 years in the future. climate →P15 • Ideals for society as a whole Circulation Prevention Acknowledging our responsibility as a company that • Directions for initiatives through 2050 change produces and sells automobiles, we will work toward specific targets in activities that reduce environmental 3 Environmental Targets impact. At the same time, we will reinforce our environ- 2030 mental technologies, hinging on plug-in hybrid electric • Targets for initiatives to be →P16 achieved by 2030 vehicles, and encourage the spread of effective products • Initiatives unique to MITSUBISHI MOTORS and technologies. In this way, we will contribute toward the development of a vibrant and sustainable society. MITSUBISHI MOTORS CORPORATION Sustainability Report 2020 ◀ 13 ▶ Back to Contents ▶▶ Commitment of Top Management Sustainability Management Environment Social Governance ESG Data

Feature 1 The New Environmental Plan Package

Steps to Formulation Gathering of Information  Social and economic conditions Framework for Consideration Such as economic growth and population increases The Environmental Working Group we set up in fiscal  Status of environmental issues We formed the Environmental Working Group, made up 2018 gathered data related to global social changes, Climate change, resource depletion, environmental pollution, loss of biodiversity and of members from across the Company, and proceeded such as economic growth and population increase, as shortage of water resources with considerations. well as environmental issues. In particular, the group  Trends in key regions After certain directions had been determined, a small looked for information on regions of importance to (Japan, ASEAN, Oceania, others) GDP, changes in the population, government circle chaired by the CEO moved forward to specifics. MITSUBISHI MOTORS, ascertaining the status of local environmental policies, etc. These were proposed to the Executive Committee and communities and government environmental policies.  Automobile production and data related to Board of Directors and approved. We also looked at unit sales and the number of vehicles the Company owned in each country, arranging this data to match the Unit sales and number of vehicles owned, globally Company’s business characteristics by looking at our and by region Sustainability Committee business data and results of environmental initiatives. (Chair: CEO; members: Division general managers of relevant divisions) The group also summarized our efforts to date. CO 2 emissions (Scope 1, 2, 3), amount of waste generated, etc. Environmental Working Group Using this data, we then verified each of the environ- (Established July 2018) mental issues and our relationship to them. We identi- Leader: Technical advisor to the chairman*3 fied three environmental issues to face head-on: action  Verify relationships between environmental Subleader: Division general manager of the Development Analysis to climate change, resource circulation and pollution issues and the Company Management Division*3 Identify environmental issues to face head-on prevention. We considered the long-term outlook for Secretariat: Sustainability Promotion Department  Consider long-term outlook for Members: Corporate departments these environmental issues by studying external sce- environmental issues • Strategy management • Asset management narios from the IEA*1 and IPCC*2, as well as by running Gather external scenarios on CO2 emissions, run • Human resources • Finance our own simulations • Public and investor relations our own simulations. We then arranged the issues to  Arrange initiatives to be taken, given our busi- Product and business activities departments be addressed by thinking about how to contribute in a ness characteristics (markets and products) • Technology strategy • Logistics manner tailored to local communities while maximizing • Manufacturing • Procurement • EV business • Overseas sales our strengths, looking at each market from a regional Formulation  Clearly spell out the Environmental Policy and • Development management • Domestic sales perspective and considering plug-in hybrid electric vehi- • Materials technology • After-sales service Environmental Vision 2050 cles and other business characteristics.  Consider initiatives in the Environmental Targets *3 Positions as of March 2020 Based on this analysis, we clearly spelled out the 2030, as well as numerical targets directions for initiatives indicated in the Environmental Board of Directors Policy and Environmental Vision and set numerical tar- gets for the items in the Environmental Targets. In this Executive Committee way, we formulated the New Environmental Plan Pack-

Review  Conduct review via outside experts Small Circle age, which provides an overall summary of our environ- Members: • CEO mental strategies. • Co-COO (in charge of development) In addition, we had outside experts review the draft • Director in charge of manufacturing package we had formulated, looking at it from a stake- • Director in charge of sustainability • Head of corporate strategy holder perspective. • Division general manager of the Development Management Division *1: International Energy Agency • Division general manager of the Product Strategy Division *2: United Nations Intergovernmental Panel on Climate Change • Division general manager of the Production Engineering Division MITSUBISHI MOTORS CORPORATION Sustainability Report 2020 ◀ 14 ▶ Back to Contents ▶▶ Commitment of Top Management Sustainability Management Environment Social Governance ESG Data

Feature 1 The New Environmental Plan Package

Environmental Policy Environmental Vision 2050

MITSUBISHI MOTORS has been acting in accordance with Members of the Paris Agreement, adopted in 2015, As these measures illustrate, awareness of climate its Environmental Policy, which was formulated in 1999. agreed to limit the rise in average global temperatures change and other environmental issues is rising each However, in the 20 years that have passed since that to 2°C above levels before the Industrial Revolution. year. Companies are also being called upon to undertake time the operating environment has changed, prompting From this basis, we established initiatives to pursue more ambitious initiatives. us to revise the policy to reflect current social trends. We from a long-term perspective, leading up to 2050. In Against this backdrop, we formulated the Environ- recognize that responding to environmental issues in our 2018, the IPCC published the Special Report on Global mental Vision 2050, which sets out our vision for so- business activities is essential, and so have newly incor- Warming of 1.5°C, which calls for society as a whole to ciety to be achieved by 2050, as well as directions for porated a medium- to long-term outlook into our policy. achieve a net-zero balance between human-caused our initiatives, with regard to climate change, resource Focusing specifically on climate change, resource greenhouse gas emissions and absorption. circulation and preventing environmental pollution. depletion and environmental pollution, we aim to con- tribute to the preservation of water resources and biodi- versity through initiatives in these areas.

Environmental Policy Environmental Vision 2050 MITSUBISHI MOTORS recognizes that responding to envi- ronmental issues through its business activities is essential. In December 2015, the Paris Agreement was adopted at COP21. Members of this accord agreed to curtail the rise in average Accordingly, we will engage proactively in specific and effec- global temperatures to 2°C above levels before the Industrial Revolution and to work to keep the rise to 1.5°C. Given such tive measures from a medium- to long-term perspective. social demands, MITSUBISHI MOTORS believes it can contribute toward the realization of a sustainable society, achieving a (Directions of initiatives) balance between the progress of humankind and the global environment, through the proliferation of electric vehicles and 1� We will face three specific environmental issues head-on: the promotion of their use in society. climate change, resource depletion and environmental pollution. Action to Climate Change Resource Circulation Pollution Prevention 2. Given that 2050 is an important landmark for climate change Through electric vehicles and the in- We will contribute to a resource-re- We will contribute toward a soci- on a global scale, we have clarified levels to be achieved, in creased use of renewable energy, we cycling-oriented society by minimiz- ety free of environmental pollution 10-year increments, and are pursuing initiatives to this end. will contribute to net-zero CO2 emis- ing input resources and maximizing affecting human health and the 3. We will respond to environmental issues through the sions and the realization of a society resource efficiency. ecosystem by reducing the envi- following activities. that is resilient to climate change. ronmental impact of our products • Unique environmental contributions through our products and the pollution resulting from our • Initiatives at each stage of automobile production, sale business activities. and use • Collaboration with business partners, affiliated institu- tions, governments and local authorities • Initiatives targeting environmental issues rooted in the local community • Initiatives to determine and reduce environmental impact of all related business activities

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Feature 1 The New Environmental Plan Package

Environmental Targets 2030 Examples of Initiatives Unique to MITSUBISHI MOTORS

Environmental Vision 2050 sets out our vision for society in 30 years’ time, as well as the directions for our initiatives. In line with this vision, we have formulated Environmental Targets 2030, which sets forth items to be addressed in Introduction of a Power Storage System the next 10 years. Employing Used Batteries from Electric Vehicles

Targets 2030 Main Initiatives We have installed a large-scale solar power plant at the Okazaki Plant and built a power system that employs Action to 1  Promotion of electric vehicles, centering on PHEVs CO2 emissions from new vehicles* : used batteries from the OUTLANDER PHEV. The system Climate Change (percentage of electric vehicles*2: 50%) -40% (compared with fiscal 2010)  Improved fuel efficiency of ICE vehicles is currently undergoing verification. By making this shift to renewable energy, we aim to reduce the plant’s CO2 3 CO2 emissions from business activities* :  Promotion of energy conservation emissions and lower its peak power consumption. In the  Introduction of renewable energy -40% (compared with fiscal 2014) event of a disaster-related power outage, electricity can  Promotion of V2X*4 (DENDO DRIVE STATION/HOUSE) Implementation of measures be routed from this system to address climate change  Contribution to adaptation through agreements in to our gymnasium, which times of disaster can serve as a local evac- Resource Expanding adoption of plastic  Development of material technologies uation center, contributing Circulation materials not derived from oil  Proactive use in parts to community response in  Reduction of waste generation and promotion of the face of disaster. Achievement of zero direct reuse as resources landfill waste (less than 0.5%)  Appropriate waste treatment  Promotion of recovery and use (BESS*5, etc.) Creating a Structure to Swiftly Provide Electric Reuse of batteries used in  Technology development with a view to reuse Vehicles to Affected Areas in Times of Disaster electric vehicles (battery packs, systems) We are promoting the DENDO Community Support Pollution Prevention Program, under which we aim to create a structure for quickly providing our electric vehicles to local govern- Conformance to regulations  Obtaining information on laws and regulations, ments in times of disaster. Under this program, we aim on regulations on use of enhancing the internal management structure to enter into disaster cooperation agreements with hazardous substances in products  Collaboration with suppliers local governments throughout Japan by fiscal 2022. By providing the Environmental Management OUTLANDER PHEV,  Promotion of LCA*6  Promotion of environmental management within the Group and at sales outlets which can operate on  Expanded environmental information disclosure  Promotion of employee education and awareness activities rough roads and supply  Collaboration with suppliers  Promotion of grass-roots community environmental preservation activities electricity for extended

*1: CO2 emissions per new vehicle while driving *2: Electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles periods, we will con- *3: Scope 1 (direct emissions) and Scope 2 (indirect emissions) tribute to the nation’s *4: A general term encompassing vehicle to home (V2H) and vehicle to grid (V2G), among others. *5: BESS stands for Battery Energy Storage System. resilience. *6: LCA stands for life cycle assessment, which is a technique for calculating the environmental impact of a product from manufacturing to disposal.

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Feature 1 The New Environmental Plan Package

PDCA Cycle

We have positioned the environmental issues set forth Results of initiatives and issues encountered during in the New Environmental Plan Package as material the previous fiscal year are reported to management via issues for MITSUBISHI MOTORS. We are addressing these the Sustainability Committee at the start of the fiscal issues through a PDCA cycle, mainly via the Sustainabili- year. In addition to results during the fiscal year, on the ty Committee, which the CEO chairs. topics of CO2 emissions from new vehicles, percentage

To realize the targets set in the Environmental Tar- of electric vehicles and CO2 emissions from business gets 2030, related departments draft annual action activities, in particular, we report forecasts based on our plans. These plans are gathered throughout the Group mid-term business plan and product plans. Discrepancies and approved by top management at the Sustainability between these figures and the Targets 2030 are shared Committee at the start of the fiscal year. and reflected when formulating the next mid-term busi- Based on these annual plans, individual departments ness plan. We also share the evaluations we receive from work together to promote initiatives aligned with their stakeholders, clarifying issues at the companywide level. business activities. We follow up each quarter on the Taking on board any issues identified in this manner, status of these initiatives and seek to ensure effective- individual departments take the lead in drafting plans ness through reporting to the Sustainability Committee for the next fiscal year. Management reviews these throughout the fiscal year. plans at the Sustainability Committee as part of our effort to ensure improvements are made.

 Promotion of action plans  Establishment of annual plans aligned with individual based on the Environmental departments’ business activities Targets 2030  Quarterly follow-up on Plan Do the status of initiatives

Sustainability Committee

Action  Reporting on the results of  Formulation by individual Check initiatives in each department departments of action plans (twice each year) for the next fiscal year, taking any issues into consideration  Reporting of stakeholders’ evaluations of the Company

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Environmental Management Prevention of Pollution Basic Approach, Management Structure ���������������������������������������������������������������������������������������������������������21 Basic Approach, Purifying Exhaust Gas while Driving ������������������������������������������������������������������������������40 Environment Initiative Program 2019 ����������������������������������������������������������������������������������������������������������������22 Reduction of Hazardous Substances, Reduction of In-Cabin VOCs ������������������������������������������������42 Environmental Management System, Environmental Education and Awareness, Preventing Air Pollution, Management of Chemical Substances �����������������������������������������������������43 External Environmental Communication ������������������������������������������������������������������������������������������������������23 Environmental Risk Management, Life Cycle Assessment (LCA) ������������������������������������������������������24 Preservation of Biodiversity Basic Approach ������������������������������������������������������������������������������������������������������������������������������������������������������������������44 Responding to Climate Change and Energy Issues Ecosystem Surveys at Business Sites in Japan ��������������������������������������������������������������������������������������������45 Basic Approach ������������������������������������������������������������������������������������������������������������������������������������������������������������������25 Overseas Preservation Activities ����������������������������������������������������������������������������������������������������������������������������46 Developing Electric Vehicles ��������������������������������������������������������������������������������������������������������������������������������������26 Promoting the Use of Electric Vehicles as a Way of Adopting to Climate Change ���������������28 Development of Improving Fuel Economy Technologies ����������������������������������������������������������������������29 Efforts in Production ������������������������������������������������������������������������������������������������������������������������������������������������������30 Efforts in Distribution ����������������������������������������������������������������������������������������������������������������������������������������������������31 Office Initiatives, Dealer Initiatives �����������������������������������������������������������������������������������������������������������������������32

Resource Recycling Initiatives Basic Approach, Recycling-Based Design and Development ��������������������������������������������������������������34 End-of-Life Vehicle Recycling ����������������������������������������������������������������������������������������������������������������������������������35 Initiatives to Reduce Waste Generation and Reuse Resources in Production Activities ��36

Deploying Supply Chain Sustainability Initiatives (Environment) Basic Approach, Expansion of Green Procurement Guidelines, Communicating with Suppliers ���������������������������������������������������������������������������������������������������������������������������37

Conservation of Water Resources Basic Approach, Reduction of Water Withdrawal Volume ��������������������������������������������������������������������38 Reuse of Discharged Water, Prevention of Water Pollutio �������������������������������������������������������������������39

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Environmental Management

Basic Approach Management Structure

In order to promote environmental initiatives reliably Since 1993, we have been holding an Environmental and efficiently, MITSUBISHI MOTORS has constructed Council, which is attended by the CEO and officers a framework for environmental management. We are from each division. The Sustainability Committee, promote Group initiatives, including education and chaired by the CEO, has met since fiscal 2017, and awareness activities for employees, and the acquisi- environmental initiatives have been positioned as tion of certifications for environment management key material issues for the Company. The committee systems among affiliated companies. discusses our environmental policies and targets and We also dissemination information about initia- confirms the progress and results from the Environ- tives on our website and through our sustainability ment Initiative Program. Items of particular impor- report. We value opportunities to receive feedback tance are reported to the Board of Directors. from our various stakeholders.

Management Target Companies (21 Companies) Production Affiliates Non-Production Affiliates Country Company Name Country Company Name Japan Pajero Manufacturing Co., Ltd. Japan Mitsubishi Automotive Engineering Co., Ltd. Suiryo Plastics Co., Ltd. Mitsubishi Automotive Logistics Technology Co., Ltd. Thailand Mitsubishi Motors (Thailand) Co., Ltd. (MMTh) Higashi Kanto MMC Parts Sales Co., Ltd. MMTh Engine Co., Ltd. (MEC) Higashi Nihon Mitsubishi Motor Sales Co., Ltd. Philippines Mitsubishi Motors Philippines Corporation (MMPC) Nishi Nihon Mitsubishi Motor Sales Co., Ltd. Asian Corporation (ATC) United States Mitsubishi Motors North America, Inc. (MMNA) Indonesia Mitsubishi Motors Krama Yudha Indonesia (MMKI) Mitsubishi Motors R&D of America, Inc. (MRDA) China GAC Mitsubishi Motors Co., Ltd. (GMMC) Puerto Rico Mitsubishi Motor Sales of Caribbean, Inc. (MMSC) Netherlands B.V.(MME) Germany Mitsubishi Motor R&D Europe GmbH (MRDE) UAE Mitsubishi Motors Middle East and Africa FZE (MMMEA) Australia Mitsubishi Motors Australia, Ltd. (MMAL) New Zealand Mitsubishi Motors New Zealand Ltd. (MMNZ)

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Environment Initiative Program 2019

In March 2018, MITSUBISHI MOTORS formulated the Environment Initiative Program 2019, an environmental action plan through fiscal 2019. The program had two pillars: enhancing environmental management and initiatives to address environmental issues. From fiscal 2020, we have been promoting activities toward the realization of our newly formulated New Environmental Plan Package.

Overview of Results for the Environment Initiative Program 2019 1. Enhancing Environmental Management : As planned : Delayed 2. Initiatives to Address Environmental Issues Field Initiative Implementation Items FY2019 Results Evalua- Implementation Items FY2019 Evalua- (Target Year: FY2019) tion Field Initiative (Target Year: FY2019) Results tion Environ- Promote the Use renewable energy consider- Began operating renewable energy Responding Reduce CO2 emissions CO2 emissions per new vehicle while -14% mental use of renew- ing local characteristics facility (solar power generation) at  to climate while driving driving: 8% reduction compared to  manage- able energy the Okazaki Plant change FY2010 ment and energy Conserve water Manage water risks at each pro- Assessed amounts of water used at  Develop technologies for Promote development of motor effi- Promoted the develop- resources duction facility production facilities in Japan issues next-generation environ- ciency improvement methods ment as planned  Environmental Deploy Green Procurement Deployed Green Procurement Guide- mentally friendly vehicles activities in Guidelines to business partners lines to business partners of overseas  Reduce amount of CO2 CO2 emissions at production facilities -41% purchasing of overseas plants plants emitted by production per production vehicle: 37% reduction  Assess environmental manage- Assessed environmental manage- activities compared to FY2005 ment conditions and CO2 emis- ment conditions and CO2 emissions Reduce amount of CO2 Unit CO2 emissions in non-production -8.1% sions of business partners of business partners by means of  emitted by non-produc- facilities: 1% reduction compared to  CDP supply chain program (climate tion activities FY2018 change) Reduce amount of CO2 CO2 emissions per unit of transporta- -9.3% Environmental Promote the acquisition of Four companies have newly acquired emitted by logistics tion in Japan: 9% reduction com-  activities in Eco-Action 21 certification to our and are maintaining certification  activities pared to FY2010 sales dealers Resource Commercialize and Application of technology for reduc- Promoting develop- Emphasize and publicize value New deployment and ongoing oper- recycling expand usage of re- tion in component waste production ment of components of EV/PHEVs to widely expand ation of DENDO DRIVE STATION at 19  source-conserving and expanded use of recycled com- using recycling ma-  their use dealers materials ponent materials terials Environmental Renew environmental data man- Commenced operation of new envi-  Reduce volume of dis- Externally disposed waste of produc- -53% data manage- agement system ronmental data system posal tion activities per production vehicle:  ment Implementation of LCA*1 for Considering assessment of produc- 52% reduction compared to FY2005 new vehicle models and improve tion process data Prevention Improve risk manage- Thorough management of hazardous Continued appropriate reliability of evaluation methods  of pollution ment system for haz- substances management, includ-  for GHG*2 emissions LCA ardous substances in ing response to legal products trends *1 LCA stands for life cycle assessment, which is a technique for calculating the environmental impact Reduce use of hazardous 35g/m2 or less of VOC*3 emissions per 36.5g/m2  of a product from manufacturing to disposal substances painting area in production activities *2 Abbreviation of greenhouse gas Environ- Promote preservation of Conduct biological surveys and Conducted ecosystem mental biodiversity implement conservation activities at survey at the Kyoto  preserva- sites in Japan Plant tion Plant and grow trees at Pajero Forest Conducted activities  twice a year Plant trees at overseas business Planned tree-planting sites activities in the Phil-  ippines *3 VOC stands for volatile organic compounds

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Environmental Management System Environmental Education and Awareness External Environmental Communication

In fiscal 2010, MITSUBISHI MOTORS acquired company- The Company conducts sustainability-related aware- We disclose information about our environmental ini- wide integrated ISO 14001 certification. Major affiliates ness activities throughout the year as part of its aims tiatives through our website and sustainability report. in Japan and overseas have also acquired ISO 14001 of deepening the understanding of sustainability We will continue to take leverage these initiatives to and Eco-Action 21* certification. As of fiscal 2019, ap- among all executives and employees and contribut- engage in dialogue with institutional investors and proximately 55% of companies targeted for environ- ing toward the realization of a sustainable society experts about environmental and other non-financial mental management (including MITSUBISHI MOTORS) through routine business activities. Environmental information. had received certification for their environmental education and awareness are one aspect of these management systems. activities. Release of Environmental Information on As of fiscal 2019, 23 dealers in Japan had received In fiscal 2019, we conducted rank-based training Website and in the Sustainability Report Eco-Action 21 certification. and e-learning to promote an understanding of our The Company releases information on the concepts social responsibility for sustainability, the relationship and details of its environmental initiatives on the *Eco-Action 21 is a certification and registration system based on the Environmental Management Systems guidelines formulated between sustainability and the environment, and the Company website and in the sustainability report by the Japanese Ministry of the Environment for medium-sized relationship between environmental issues and our in order to make its environmental initiatives more companies. business activities. widely known. See page 32 for a list of the dealers that have received Eco-Action Sustainability ebsite “Environment” 21 certification. Please see page 9 for details on our activities to promote an awareness of sustainability. WEB https://www.mitsubishi-motors.com/en/sustainability/ environment/ Status of ISO 14001 Certification (As of June 30, 2020) Development Mitsubishi Automotive Engineering Co., Ltd. Communication with Investors Production We engage in dialogue with investors, exchanging Pajero Manufacturing Co., Ltd. opinions about environmental and other non-finan- Suiryo Plastics Co., Ltd. cial information. Mitsubishi Motors Philippines Corporation (MMPC) In fiscal 2019, we participated in dialogue with Asian Transmission Corporation (ATC) people in charge of stewardship at institutional inves- Mitsubishi Motors (Thailand) Co., Ltd. (MMTh) tors in Japan and overseas. Our executives in charge MMTh Engine Co., Ltd. (MEC) of various areas of sustainability listened to opinions Mitsubishi Motors Krama Yudha Indonesia (MMKI) Distribution and After-Sales Service on such matters as climate change risks and opportu- Mitsubishi Automotive Logistics Technology Co., Ltd. nities, response to TCFD, our CO2 emissions and elec- tric vehicles, among other topics.

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covered 10 cases of legal non-compliance (including systems and infrastructures to facilitate our response Environmental Risk Management delays in notification and inadequate inspections). to regulations and incentives. We responded to these incidents by swiftly taking Having learned from past cases of failing to comply corrective action, introducing measures to prevent Examples of LCA Implementation with environmental regulations such as those aimed recurrence and sharing information with other related Examples of at preventing pollution, MITSUBISHI MOTORS makes LCA Imple- Objectives divisions about the incidents and countermeasures. every effort to comply with relevant regulations. mentation *Refers to 31 environment-related laws and regulations identified Components Body parts • Verifying the effect of We sincerely respond to complaints from neigh- by the Company, including the Water Pollution Prevention Act and technol- employing weight reduction borhood residents after investigating the situation. and the Air Pollution Control Act. ogies plastics Vehicles OUTLANDER • Assessing the effect of In the event that environmental laws and regulations PHEV improvement from the are violated or an environmental accident occurs gasoline engine model Life Cycle Assessment (LCA) • Assessing the impact of (such as if regulatory values are exceeded), or if we components receive a complaint, the corresponding division must ECLIPSE CROSS, • Comparing the effects of We perform life cycle assessment (LCA) to deter- TRITON improvement from the submit a Legal Non-Conformity Report to the Com- previous model and other mine the environmental impact across a product’s pliance Department and take necessary measures vehicles in the same class life cycle. We evaluate total emissions, mainly of CO2, against the cause. The report clarifies the details from such processes as extracting the resources used of the case, measures and more, and appropriate in parts and materials, producing materials, manu- countermeasures are taken. Furthermore, in order to facturing parts, assembling vehicles, producing fuel, prevent recurrence, initiatives are in place to improve driving and disposing of disused automobiles. work processes, enhance the supervision system, and We use LCA to develop environment-friendly parts, increase employee awareness. electric vehicles and new-model vehicles, and com- In fiscal 2019, we were subject to no fines or ad- pare their life cycle CO2 emissions with those of con- ministrative orders stemming from violations of envi- ventional parts and vehicles. Recent examples have ronmental laws and regulations*. However, the plant involved the ECLIPSE CROSS and the TRITON. Results twice exceeded statutory values provided under the are indicated in our sustainability report. Water Pollution Prevention Act, and we received two We recognize that concern about environmental complaints related to odors and sound. impact throughout the life cycle is mounting in indi- Other than those cases mentioned above, vol- vidual countries and regions. We are putting in place untary internal checks and monitoring activities un-

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Responding to Climate Change and Energy Issues

FY2019 Materiality Targets and Results : As planned : Delayed Self- Details of Main Initiatives FY2019 Targets Indicators FY2019 Results Evaluation

Reduce CO2 emissions while driving CO2 emissions per new vehicle while driving: 8% reduction compared to FY2010 CO2 reduction (%) -14% 

Reduce amount of CO2 emitted by produc- CO2 emissions at production facilities per production vehicle: CO2 reduction (%) -41%  tion activities 37% reduction compared to FY2005

Reduce amount of CO2 emitted by Unit CO2 emissions in non-production facilities: 1% reduction compared to FY2018 CO2 reduction (%) -8.1%  non-production activities

Reduce amount of CO2 emitted by logis- CO2 emissions per unit of transportation in Japan: CO2 reduction (%) -9.3%  tics activities 9% reduction compared to FY2010

Promote the acquisition of Eco-Action 21 New certifications: 5 dealers or more Number of certified 4  certification to our dealers dealers

“responding to climate change and energy issues” as Basic Approach a topmost material issue. In the New Environmental Plan Package, we have set new specific targets for In recent years, extreme weather, such as heat waves, addressing this issue. droughts and floods due to heavy rain, has caused To reduce energy consumption and CO2 emissions disasters one after another around the world. The in all business activities, including development, pro- leading culprit behind these extreme-weather events duction and distribution, as well as at and offices, is climate change, and global warming caused by CO2 we are promoting various initiatives, such as electric and other greenhouse gases is a major factor. vehicle technologies, the development of fuel-econ- International frameworks for realizing a sustainable omy-improving technologies, the introduction of society, such as the Paris Agreement and the United low-energy equipment in production processes and Nations Sustainable Development Goals (SDGs) are the use of renewable energy in offices and dealers. making major progress. In particular, the Paris Agree- Our electric vehicles have large-capacity bat- ment has set targets on climate change and fostered teries that can be used in energy management and increased awareness toward corporate responsibility. as emergency power sources in times of disaster. Automobiles generate CO2 throughout the life Through these measures, we are also engaging in cycle, from production to driving and disposal. For measures to adapt to climate change. this reason, MITSUBISHI MOTORS has identified

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Our Risks and Opportunities Related to Climate Developing Electric Vehicles TOPICS Change and Energy Issues Recent years have seen an increase in ESG invest- 10th Anniversary of the i-MiEV Electric Vehicle Automobiles emit CO2 throughout their life cycle, ment*1 that utilizes non-financial information. Based during production, driving and disposal. Emissions are on a final report by the TCFD*2, investors are becoming particularly high during the driving phase. significantly more aware of the long-term risks and op- MITSUBISHI MOTORS positions its technologies for portunities for companies as a result of climate change. producing electric vehicles, which emit little CO2 while MITSUBISHI MOTORS believes climate change presents driving, as core technologies for “responding to cli- the following risks and opportunities for its business. mate change and energy issues,” and we are focusing *1 Environment, social and governance (ESG) investment *2 Task Force on Climate-related Financial Disclosures on development in this area. Risks The MITSUBISHI MOTORS Group’s operating perfor- Electric Vehicles Electric vehicles are powered by electric motors, and so mance and financial condition could be affected June 2019 marked the 10th anniversary of our launch they emit no exhaust gases such as CO2 while driving. significantly by interrupted factory operations due of the i-MiEV, the world’s first mass-produced electric to meteorological disasters, as well as the need for MITSUBISHI MOTORS released the i-MiEV as the vehicle. In addition to customers with high environ- investment to address increasingly stringent regu- world's first mass-produced electric vehicle in 2009. mental awareness, the i-MiEV is being adopted widely We are still improving it today. The i-MiEV performs for use as public vehicles by local and national govern- lations related to automobile fuel efficiency and CO2 ments, and as police cars, taxis and rental cars. They emissions. Furthermore, if we fail to introduce suffi- much better than conventional gasoline engine vehi- can also be used in place of gasoline vehicles to trans- cles, including environmental performance, accelera- cient measures to counter climate change, we could port supplies and people when fuel supplies are cut off tion starting with maximum torque, reduced noise by be forced to withdraw from the marketplace due to during emergencies. a lack of compliance with environmental regulations, the electric motor, and stability with the battery unit In 2011, we adapted the i-MiEV power train for and our reputation could suffer. As a result, we could beneath the floor. These technologies are the foun- commercial vehicles and launched the MINICAB MiEV, a minicar-class commercial electric vehicle. To date (as of experience a decrease in sales, significantly affecting dation of next-generation electric vehicles, such as March 31, 2020), sales of this model have reached more our operating performance and financial condition. plug-in hybrid electric vehicles. than 31,000 units. Opportunities Learning from the Great East Japan Earthquake Sales of electric vehicles and other highly fuel-effi- the previous year, in 2012 we launched the MiEV power cient vehicles could grow, due to incentives set by BOX. This model, which can power household devices various countries and regions and growing environ- through the electricity stored in its battery, set the stage for vehicle to home (V2H) applications. mental awareness. Sales of electric vehicles could also expand due to their ability to serve as power sources in the event of meteorological disasters.

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TOPICS Plug-in Hybrid Electric Vehicles TOPICS Plug-in hybrid electric vehicles are powered by elec- Japan Post Using Mitsubishi Electric’s EVs as tricity stored in drive batteries and by the motor, Launching the OUTLANDER PHEV in the ASEAN Market Delivery Vehicles using the engine to generate electric power when the battery level is low. Concern over the driving range is no longer an issue as it offers the advantages of EVs: powerful driving, superb quietness and high stability. MITSUBISHI MOTORS released the OUTLANDER PHEV in 2013. At low to medium speeds, the Plug-in Hybrid EV System uses electric power from the drive battery, but when the battery level is low, it gener- ates electric power during operation using the engine while also supplying power to the motor and battery. Furthermore, during high-speed driving, the vehicle We have launched the OUTLANDER PHEV in Indonesia, its Since fiscal 2019, MITSUBISHI MOTORS has been provid- is driven by the engine and simultaneously assisted first ASEAN market. Indonesia is introducing measures to curtail CO2 emissions. Through the OUTLANDER PHEV, we ing Japan Post Co., Ltd. with the MINICAB MiEV, a mini- by the battery-powered motor. In this way, the drive are contributing to the country’s national objectives. car-class commercial electric vehicle, for use as delivery mode is automatically selected according to the vehicles. By the end of fiscal 2020, we expect the total In ASEAN markets as well, through the OUTLANDER situation. CO2 emissions are substantially lower than number of vehicles delivered to reach 1,500. These ve- PHEV we aim to increase the value we contribute to society. hicles are well suited for deliveries in large metropolitan conventional gasoline engine vehicles, delivering out- areas, where travel distances are relatively short. They standing environmental performance. make up an estimated 30% of minicar-class electric vehicles used for deliveries. The MINICAB MiEV is equipped with the drive bat- tery and motor used in the i-MiEV. In addition to the superior environmental performance inherent to an electric vehicle, it excels in power, silence, comfort and more. It is highly effective as a delivery vehicle due to the driving range and payload capacity. By using vehi-

cles that emit no CO2 or other exhaust gas while driving, it is helping to promote environmental management by Japan Post, which aims to reduce the emission of greenhouse gases.

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Promoting the Use of Electric Vehicles TOPICS TOPICS as a Way of Adopting to Climate Change Participating in Joint Study on Energy Implementation of V2G Demonstration Project by Management in Indonesia Using Electric Vehicles By leveraging the large-capacity batteries on its electric vehicles and plug-in hybrid electric vehicles to supply We participated in joint study on energy management MITSUBISHI MOTORS took part in the FY2019 V2G Aggre- electricity, MITSUBISHI MOTORS is contributing to mea- on the island of Sumba, in the Indonesian province of gator Project, entrusted by the Ministry of Economy, East Nusa Tenggara. Using solar power generation and Trade and Industry, with providing the employees’ park- sures in various countries and industries to adapt to cli- electric vehicles, the test is aimed at finding a way to ing spaces at the Okazaki Plant as a demonstration site. mate change and energy issues. We are applying these use energy efficiently in islands and other locations V2G is a scheme where the high-capacity batteries to such areas as areas as energy management, V2X* and where gasoline is difficult to obtain. of electric vehicles are utilized to regulate the demand use as emergency power sources in times of disaster. This study, which was designed to deliver a sta- and supply of the power grid through an IT aggrega- *A general term encompassing vehicle to home (V2H) and vehicle to ble supply of electricity generated from a renewable tion system. grid (V2G), among others source, was conducted by Indonesia’s Agency for In FY2019, the second year for this demonstration, the Assessment and Application of Technology and we added 40 electric vehicles (for a total of 50) and TOPICS Kyudenko Corporation, with support from Japan’s established one of the largest demonstration sites in Ministry of the Environment. The test commenced in Japan. In addition, electric vehicles at multiple demon- Commencing Trial Sales of the DENDO DRIVE HOUSE December 2017. In February 2018, MITSUBISHI MOTORS stration sites were simultaneously charged/discharged in Some Regions donated to the Indonesian government two i-MiEVs, via online control, taking into consideration driving eight OUTLANDER PHEVs and four quick chargers. One patterns restrictions, and we concluded that response We began offering i-MiEV and one quick charger were used in the proof- speed could meet the requirements of power supply the DENDO DRIVE of-concept test. The solar power is being used to and demand directives. HOUSE for sale at charge the vehi- There are further needs to realize more stable pow- a particular dealer- cles, which drive er grid to keep the expansion of variable Renewable ship on a trial basis in October 2019. about the island, Energy resources. We believe the realization of V2G will DENDO DRIVE HOUSE is a bundled system that accumulating increase the value of electric vehicles and could help comprises solar panels and V2H equipment. Along with test data. to solve the environmental problems such as climate the purchase of an electric vehicle, we offer a one-stop change and energy issues. service in which dealers provide sales, installation and after-sales maintenance. Clean, solar-derived electricity is used to power a customer’s home and electric vehi- The i-MiEV used in the test cle, reducing everyday fuel and electricity charges and contributing toward a low-carbon society. The solar panels can also be used to generate electricity during power outages, and the power stored in the electric vehicles can be supplied to the home. Commemorative photo from the ceremony We plan to apply the knowledge gained from this ini- tiative to help realize the new-energy society of the future. MITSUBISHI MOTORS CORPORATION Sustainability Report 2020 ◀ 28 ▶ Back to Contents ▶▶ Commitment of Top Management Sustainability Management Environment Social Governance ESG Data

proving the fuel economy because no fuel is consumed Development of Improving Fuel TOPICS when at a stop. When fitted with a coasting stop func- Economy Technologies tion, AS&G stops the engine while decelerating. New Models: the eK CROSS SPACE and eK SPACE

MITSUBISHI MOTORS develops technologies to boost Our new mini-cars that launched in March 2020, the Mechanism the fuel efficiency of vehicles powered by conven- eK CROSS SPACE and the eK SPACE, are mounted with Mitsubishi Innovative Value timing Electronic Control naturally aspirated and turbo engines that use a hy- tional engines. We are developing engine and vehicle System (MIVEC) brid system. This is combined with a CVT to achieve a body technologies to reduce fuel and energy waste. balance between acceleration performance and fuel efficiency. Furthermore, the AS&G fitted with a coasting Exhaust side Continuously Variable Transmission (CVT) stop function stops the engine when travel speed falls Variable lift Drive sensor below around 13km/h. pulley Continuously variable valve lift system Steel Intake side belt Variable lift Variable cam electric actuator Driven phase system pulley MIVEC engine In a low state In an overdrive state The MIVEC is a variable valve timing mechanism for A continuously variable transmission (CVT) varies minimizing fuel consumption. The intake valve lift is transmission ratio by seamlessly changing the effec- continuously varied according to the operating condi- tive diameter of the pulleys. tion to reduce intake resistance. This minimizes air in- Based on throttle position information, driving take energy loss, resulting in improved fuel efficiency. power is controlled in accordance to the driving con- dition to achieve the most efficient balance between Deceleration Energy Recovery the engine and CVT. (Power Generation Control) This technology controls power generation under Idle-Stop “AS&G” various driving conditions such as idling, accelerat- AS&G is an idling stop ing, and cruising by conducting intensive charging function that automati- of the battery using electric power generated while cally stops and starts the decelerating. We are improving fuel consumption by engine when the vehicle reducing the load on the engine during charging and stops or moves off. This power generation. has a major effect on im-

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Efforts in Production TOPICS TOPICS Establishment of a Large-Scale Solar Power Introducing Servo Locators MITSUBISHI MOTORS is upgrading its production facili- Facility at the Okazaki Plant to Body Transport Equipment ties, introducing new equipment and improving oper- ations in an effort to conserve energy and reduce CO2 Utilizing the energy solutions service provided by Mit- The body transport equipment used in the welding and emissions from production activities. subishi Corporation and Mitsubishi Corporation Power assembly processes at the Okazaki Plant had previ- In fiscal 2019, at our production facilities we Ltd., we installed a solar power plant capable of gen- ously used air cylinders for the section that receives erating around 3MW (3GWh per year) at the Okazaki the body. Instead, we adopted more general-purpose brought on line a servo locator for our body transport Plant, our mainstay factory for electric vehicles. The electric servo locators and robotic controls. device, upgraded from a hydraulic to an electrical power generated there is used at the Okazaki Plant, Transitioning the segment that had been driven by molding machine and introduced efficient replaceable creating a lower-carbon, cleaner production environ- an air cycling powered by compressed air to electric coil to billet heater. ment for electric vehicles. In fiscal 2020, we expect to power succeed in reducing demand on the air com- People involved with production sites, production expand the generating plant’s capacity and introduce a pressor, lowering CO2 emissions by around 200 tons technologies and power supply are also taking part in power storage system (1MWh capacity) employing used per year. batteries from the OUTLANDER PHEV that are produced energy-conservation activities. We are improving the and sold by the Okazaki Plant. operation of production facilities by focusing on ener- This initiative introduces a third-party ownership gy-intensive processes, such as painting and forging. scheme for the solar power plant, in which Mitsubishi We are improving the operation of boilers, compres- and Mitsubishi Corporation Power install and own the sors and other equipment that supplies power. Also, solar power plant and the power storage system that we are working to optimize the operation of various employs used batteries from electric vehicles, while Mit- subishi Motor provides the space for installation on the types of motor. In these ways, we are introducing roof of its plant and buys the electricity produced by measures, starting from areas where we expect re- the plant. Rather than footing initial investment costs Body being transported sults to be greatest. and owning the facility, under this scheme MITSUBISHI In an effort to introduce renewable energy, we MOTORS pays only for the electric power charges and are also setting up solar power facilities at plants in has access to CO2-free electricity. Japan and overseas. This solar power plant and power stor- age system are ex-

pected to reduce CO2 emissions by approxi- mately 1,600 tons per year and reduce peak Newly introduced servo locators power consumption. Large-scale solar power plant

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ing to increasing the load factor, and consolidating Collecting CO2 Emissions Data in Distribution Efforts in Distribution transport routes, reducing the number of trucks. among Overseas Affiliates Other activities include modal shifts such as We understand the importance of collecting and dis- MITSUBISHI MOTORS sets reduction targets for unit improving rail utilization rates and requesting the closing CO2 emissions volumes throughout the sup- CO2 emissions (kg-CO2/1000t km) during the transport introduction of ecologically-friendly vehicles and ply chain, including overseas, and we are promoting of procured parts and products to promote initiatives promotion of eco-driving by our business partners’ initiatives in this regard. for achieving these targets. transport subcontractors. Following on from the Mitsubishi Motors (Thailand) We strive to shorten transport distances through Co., Ltd. (MMTh) plant in fiscal 2018, in fiscal 2019 the use of less distant procurement sources and Mitsubishi Motors Krama Yudha Indonesia (MMKI) increasing direct deliveries. We also work to decrease also began to collect and calculate CO2 emissions in the number of transport trips by improving the pack- distribution including local land transport in Indonesia during sea/air transport.

Target Distribution Routes for CO2 Emissions Results

Finished Vehicle Supply Route Trailer Distribution, etc. Port Trailer Trailer Truck Distribution Completed Boat vehicles Base Train (Including Dealers Ports and Transportation of vehicles (Thailand) Train Stations) MITSUBISHI Truck Supplier MOTORS Vehicle dealers Parts Plant Truck Parts dealers Train MITSUBISHI Engines and MOTORS Plant transmissions Truck Knock-down Port parts Truck

Waste disposal contractors Waste Sea transport

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Dealers That Have Acquired Eco-Action 21 Certification Office Initiatives Dealer Initiatives (As of June 1, 2020)

MITSUBISHI MOTORS is also promoting the use of We encourage the acquisition of Eco-Action 21 to our Company renewable energy and introducing various types of dealers in Japan. Dealers that have acquired certifica- Hokkaido Mitsubishi Motor Sales Co., Ltd. energy-saving equipment in areas other than manu- tion carry out activities such as reducing the amount Aomori Mitsubishi Motor Sales Co., Ltd. facturing, such as at research and head office locations. of energy and water they use, lowering the amount of Yamagata Mitsubishi Motor Sales Co., Ltd. Part of the electric power used at the Research waste they produce, and promoting the widespread and Development Building (Okazaki, Aichi Prefecture) use of electric vehicles. Higashi Nihon Mitsubishi Motor Sales Co., Ltd. and our head office (Minato-ku, Tokyo) is supplied Also, we are promoting the development of the Ibaraki Mitsubishi Motor Sales Co., Ltd. by renewable energy, thanks to the erection of so- “DENDO DRIVE STATION” next-generation dealers to Sawara Mitsubishi Motor Sales Co., Ltd. lar panels and making use of the Tradable Green introduce the value brought by EV/PHEV toward the Sobu Mitsubishi Motor Sales Co., Ltd. 1 Certificates System* . Also, CO2 emissions are being spread of electric vehicle. By fiscal 2019, we opened Tokai Mitsubishi Motor Sales Co., Ltd. reduced by using energy-saving electrical equipment 83 DENDO DRIVE STATIONs nationwide. Sunen Mitsubishi Motor Sales Co., Ltd. and air conditioners. “DENDO DRIVE STATION” Nishiowari Mitsubishi Motor Sales Co., Ltd. WEB https://www.mitsubishi-motors.co.jp/special/dendo/index.html *1 This system is used to trade environmental added value of renewable energy generated from natural energy sources using Toyama Mitsubishi Motor Sales Co., Ltd. renewable energy certificates issued by a certificate issuer and Toyama Diamond Motors Co., Ltd. confirmed by a third party organization. Fukui Mitsubishi Motor Sales Co., Ltd.

Kanazawa Mitsubishi Motor Sales Co., Ltd.

Kyoto Mitsubishi Motor Sales Co., Ltd.

Nishi Nihon Mitsubishi Motor Sales Co., Ltd.

Shiga Mitsubishi Motor Sales Co., Ltd.

Fukuyama Mitsubishi Motor Sales Co., Ltd.

Kyushu Mitsubishi Motor Sales Co., Ltd.

Oita Mitsubishi Motor Sales Co., Ltd.

Kumamoto Mitsubishi Motor Sales Co., Ltd.

Nagasaki Mitsubishi Motor Sales Co., Ltd.

Kagoshima Mitsubishi Motor Sales Co., Ltd.

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TOPICS TOPICS

Rolling out the DENDO DRIVE STATION across Japan’s Prefectures Signing a Memorandum of Understanding on the Opening of DENDO DRIVE STATIONs in the Philippines MITSUBISHI MOTORS seeks to put DENDO DRIVE STATIONs into operation in In January 2020, Mitsubishi Motors Philippines Corpo- prefectures across Japan. In fiscal 2019, we opened these stations at seven ration (MMPC), which is our automotive assembler and locations, each of which were the first in their prefecture: Toyama Main distributor in the Philippines, signed a Memorandum Branch (Toyama Prefecture), Ichinoseki Interchange Branch (Iwate Prefecture), of Understanding with five MMPC’s authorized dealers, Yamagata Branch (Yamagata Prefecture), Nagasaki Main Branch (Nagasaki on the opening of next-generation dealerships (DENDO Prefecture), Tokushima Main Branch (Tokushima Prefecture), Hinode-machi DRIVE STATIONs). In addition to standard dealership Branch (Miyagi Prefecture) and Kisarazu Branch (Chiba Prefecture). By deploy- functions (selling new vehicles and providing after-sales ing DENDO DRIVE STATIONs across Japan, we will increase the significance service), DENDO DRIVE STATIONs are equipped with solar of electric vehicles (EVs and PHEVs) by diversifying their energy sources and Toyama Main Branch power generation systems and V2H* equipment. These communicating their value as sources of electric power in times of disaster. Toyama Mitsubishi Motor Sales Co., Ltd. stations can be used to charge electric vehicles from solar power generation. Alternatively, electric vehicles can provide power to the dealerships. Like Japan, the Philippines is prone to natural disasters. Our DENDO DRIVE STATIONs are expected to help build up the coun- try’s national resilience (ability to recover from disasters). MMPC plans to launch the OUTLANDER PHEV in 2020. The company is undertaking efforts aimed at encour- aging an understanding and affinity for electric vehicles. Ichinoseki Interchange Branch Yamagata Branch Nagasaki Main Branch Rolling out the DENDO DRIVE STATION should facilitate Iwate Mitsubishi Motor Sales Co., Ltd. Yamagata Mitsubishi Motor Sales Co., Ltd. Nagasaki Mitsubishi Motor Sales Co., Ltd this effort, as well as contributing to automotive industry and economic development initiatives in the Philippines. *V2H stands for vehicle to home and this system can power household devices through the electricity stored in its battery.

Tokushima Main Branch Hinode-machi Branch Kisarazu Branch Tokushima Mitsubishi Motor Sales Co., Ltd. Miyagi Mitsubishi Motor Sales Co., Ltd. Chiba Mitsubishi Colt Car Dealership Co., Ltd. Signing ceremony for a Memoran- dum of Understanding

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Resource Recycling Initiatives

FY2019 Materiality Targets and Results : As planned : Delayed Self- Details of Main Initiatives FY2019 Targets Indicators FY2019 Results Evaluation Commercialize and expand usage of Application of technology for reduction in Expanded usage Developing parts made of recycled materials resource conserving materials component waste production and expanded  use of recycled materials

Reduce waste material in production Externally disposed waste from production Reduction of external waste disposal -53% activities activities per production vehicle:  52% reduction compared to FY2005

production processes into reusable resources and Basic Approach TOPICS reducing the volume of waste discharged. *Land reclamation rate below 0.1% Using Thermoplastic Resin The consumption of resources is increasing due to the rise in populations and economic growth in DELICA D:5, which was launched in 2019, uses easily recy- emerging countries. Countries and industry groups clable thermoplastic resin for exterior and interior parts. Recycling-Based Design and Development are formulating various initiatives in order to promote automobile recycling and correct processing. Main parts (indicated in green) that use Under vehicle recycling legislation in Japan, Europe Based on the above, MITSUBISHI MOTORS consid- thermoplastic resin and China, automobile manufacturers are obligated to ers effective resource use as our task and promotes consider recycling when developing products. initiatives for recycling and resource conservation. MITSUBISHI MOTORS conducts design and develop- MITSUBISHI MOTORS set targets to improve the ment that actively incorporates not just recycling, but ease of recycling, reduce the use of lead, and introduce all aspects of the 3Rs including reduction and reuse. recycled parts for new vehicles when the MITSUBISHI Since 1999, we have implemented the 3Rs in the stage MOTORS Recycling Initiative was established in 1998, starting with conceptual design in accordance with which we are engaged in continuously. Exterior our unique Recycling Plan Guidelines. At production plants, with the aim of realizing a With regard to wires and harnesses, and motors, recycling-oriented society that gives consideration we have improved detachability and ease of recycling to the environment and resources, we are promoting in accordance with the Harness Design Guidelines. the effective use of resources. We are achieving a At dealers, bumpers replaced during repairs are landfill waste disposal rate of zero* at every plant by Interior recycled for undercovers and battery trays. We are also converting industrial waste materials generated from increasing the use of recycled materials in other parts.

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increasing the recycling rate by conducting efficient Response to the EU’s Directives on Approval End-of-Life Vehicle Recycling recycling and proper processing of these three items. for Vehicle Models for Recyclability *1 Automobile Shredder Residue Recycling Promotion Team es- In the EU, satisfying the minimum 95% recyclability MITSUBISHI MOTORS encourages the recycling of end- tablished by Motor Co., Ltd., Mazda Motor Corporation, rate is a requirement for type approval of vehicle of-life vehicles to reduce the environmental impact MITSUBISHI MOTORS and others. models, and the company established a system that of waste from these vehicles. In Japan, the Europe- satisfies the requirements of this directive. Our ve- an Union and other regions, we promote recycling Recycling Promotion in the EU hicles sold in the EU meet the requirements of the in accordance with the automobile recycling laws of Response to the EU’s Directive on the Recycling of directive under this system. We will continue to ac- each country. We comply carefully with the evolving End-of-Life Vehicles quire recyclability approval for all new models sold in automobile recycling laws that are being introduced In the EU, in accordance with the End-of-Life Ve- the EU. in emerging countries in Asia. hicles Directive*2 established in 2000, automobile manufacturers or importers must accept and recycle 3 Collection of Drive Batteries in Electric Vehi- Response to Automobile Recycling Laws end-of-life vehicles. Also, in 2003, the ELV Directive* cles/Construction and Operation of the Recy- in Japan was enacted, specifying ease of recycling as a certifi- cling System After the End-of-Life Vehicle Recycling Law was en- cation requirement. In Japan, Europe, and North America, the company acted in 2005, the company has been accepting used The company built a system of acceptance and established and operates a battery collection system automobile shredder residue (ASR), airbags, and fluo- recycling in line with the actual situation of EU mem- for the purpose of recycling technology development rocarbons for recycling. ber countries centering on our European subsidiary and proper treatment of end-of-life batteries in elec- Regarding ASR recycling, we participate in ART*1 in Mitsubishi Motors Europe B.V. (MME). tric vehicles and plug-in hybrid vehicles. order to jointly process ASR. As a result of the creation *2 “Directive of the European Parliament and of the Council on End-of- Life Vehicles” of new processing facilities and other measures, the *3 Abbreviation of End-of-Life Vehicles. ASR recycling rate in fiscal 2019 was 96.5%, substan- tially above the statutory standard of 70% in effect Provision of Dismantling Information since 2015. We will continue to develop new recycling In the EU, automobile manufacturers must provide facilities to ensure the stable processing of ASR. dismantling information for new model vehicles to The company outsources the treatment of airbags treatment operators. The company provides such in- and fluorocarbons to the Japan Auto Recycling Part- formation on a timely basis by using the International nership (JARP). Dismantling Information System (IDIS) jointly devel- In addition, for the effective use of recycling fees oped by automobile manufacturers. deposited from customers, we proactively works on

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Initiatives to Reduce Waste Generation and TOPICS Reuse Resources in Production Activities Reducing Waste Generation by Transitioning Casting to the Aluminum Die-Casting Process By improving its production processes, MITSUBISHI MOTORS is working to reduce the amount of waste it In recent years, aluminum die casting has been widely generates through manufacturing. For the waste we adopted in the manufacture of engine blocks for pas- senger cars to make them more lightweight than when do generate, while curtailing treatment costs we con- using conventional cast iron. The die-casting of alumi- tinue to review and improve the ways in which we sort num generates substantially less waste casting sand and treat waste, using it more effectively as resources. than the casting of iron. At the Kyoto Plant, which mainly manufactures Effective Use of Resources and Recycling engine and powertrain parts, we are moving to consol- idate our production line for cast iron engine blocks, as High the production of aluminum die-cast parts is growing Reused within while that of cast-iron products is decreasing. Our last

Rate of Effective Use the process cast iron line ceased operations in June 2019, and we Reused within stopped producing cast iron engine block at the Com- the company Valuable pany. As a result, the amount of waste casting sand we Sold for consideration materials generate fell by around 10,000 tons per year. Material recycling Waste Thermal recycling Simple incineration

Low Direct to landfill

Production line for cast iron engine blocks

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Deploying Supply Chain Sustainability Initiatives (Environment)

FY2019 Materiality Targets and Results : As planned : Delayed Self- Details of Main Initiatives FY2019 Targets Indicators FY2019 Results Evaluation Reinforcement of CSR in the supply chain • Expansion of Supplier CSR Guidelines to • Promoting the purpose of Supplier CSR • Rolled out Supplier CSR Guidelines to the MITSUBISHI MOTORS’ overseas production Guidelines business partners of MMTh/MMKI/MMPC bases • Recommendation of supplier on CSR • Explained the purpose of third-party  • Support for supplier CSR evaluations by evaluations by third-party organization. evaluations to business partners and have third-party organization. begun conducting evaluations

Collection of Materials and Hazardous Basic Approach Expansion of Green Procurement Guidelines Substance Data through IMDS Applying the International Material Data System Automobiles are composed of a wide variety of ma- We requests business partners to acquire and renew (IMDS), we ask business partners to disclose hazard- terials and parts which are developed and produced of external certifications of environment manage- ous substance data, etc. regarding materials and parts by our business partners. For that reason, MITSUBISHI ment systems, as well as to manage hazardous sub- based on the Green Procurement Guidelines. We also MOTORS believes that it is important to reduce the stances, promote the 3Rs (reduce, reuse and recycle), have our business partners construct their own inter- impact on the environment not only from our own submit LCA data to allow us to understand the life- nal management systems for hazardous substances. business activities but also in all other processes from cycle environmental impact, reduce environmental Through these processes, we confirm compliance the production of materials and parts to delivery. impact in business activities, and reduce their envi- with use regulations regarding hazardous substances Insufficient responses could put us into conflict with ronmental impact related to logistics. used in new vehicles and vehicles in ongoing produc- various national and regional regulations and harm In addition to Japan, we have introduced the tion, and we confirm that their usage decreases. our reputation, affecting our operations. Green Procurement Guidelines at major bases over- Under the basic concept of purchasing materials seas—Mitsubishi Motors (Thailand) Co., Ltd. (MMTh), and parts with low impact to the environment from Mitsubishi Motors Krama Yudha Indonesia (MMKI) and suppliers who continuously work to reduce their envi- Mitsubishi Motors Philippines Cor- Communicating with Suppliers ronmental impact, Parts Purchase Agreement we enter poration (MMPC)—to ascertain con- into with business partners stipulate compliance with ditions in each country and opera- Our business partners cooperate with us in various our Green Procurement Guidelines. Our Supplier CSR tional details at each location. These initiatives, including meeting the requirements of our Guidelines and Green Procurement Guidelines are companies are also applying the Green Procurement Guidelines. We believe that ongo- posted on our portal site for suppliers, which they guidelines to their business partners. ing communication is an important part of the steady can readily access. In these ways, we are working to implementation of initiatives by business partners. reduce the environmental impact of our entire supply We explain the importance of environmental initia- chain and address risks to our business on the envi- Green Procure- tives at our Suppliers Meetings, for example, which ronmental front. ment Guidelines are attended by our business partners, and strive to engage in communications to reduce the environ- mental impact of our entire supply chain. MITSUBISHI MOTORS CORPORATION Sustainability Report 2020 ◀ 37 ▶ Back to Contents ▶▶ Commitment of Top Management Sustainability Management Environment Social Governance ESG Data

Conservation of Water Resources

FY2019 Materiality Targets and Results : As planned : Delayed Self- Details of Main Initiatives FY2019 Targets Indicators FY2019 Results Evaluation Manage water risks at each Manage the amount of water used based on water risks Understanding the Determined the amount of water used at produc-  production facility at each production facility amount of water used tion facilities in Japan

As an initiative to preserve water resources in each Basic Approach Reduction of Water Withdrawal Volume country and region, we strive to reduce the amount of water withdrawal and to monitor the quality of dis- Due to the increasing population and changes in We are striving to reduce water withdrawal volumes charged water, for example. the natural environment caused by climate change, by reusing washing water used in production process- the demand for water is expected to increase, and es for pre-washing and by circulating cooling water Water Withdrawal Source and Drainage of Each Plant social concern for the preservation of water resources and temperature control water. Water With- Plant Drainage are increasing. drawal Source At the Okazaki Plant, rainwater storage tanks have MITSUBISHI MOTORS requires a large amount of Okazaki Plant Yahagi River Kanda River been set up in order to reuse rainwater. We have also industrial water, city water, and groundwater, etc., for (Okazaki, Aichi Pref.) Tributary → set up equipment to filter groundwater so that it can Kanori River the automobile production process and discharge of be used to supply drinking water during disasters to Kyoto Plant –Kyoto Lake Biwa Sewage line water into sewage lines and rivers, etc. In fiscal 2019, (Kyoto, Kyoto Pref.) employees and people nearby the plant. we conducted water risk surveys in regions where our Kyoto Plant –Shiga Lake Biwa Sewage line (Konan, Shiga Pref.) main production plants are located. In regions where Mizushima Plant Takahashi River Hakken River water risk is high, it is essential to consider the impact (Kurashiki, Okayama Pref.) → Mizushima that water withdrawal and discharge from our busi- Port ness activities have on the surrounding environment. Pajero Manufacturing Co., Kiso River Kiso River Ltd. (Sakahogi-cho, Gifu Also, as water is required for the operations of our Pref.) business partners. MITSUBISHI MOTORS is aware of Mitsubishi Motors Nong Pla Lai Sewage line (Thailand) Co., Ltd. (MMTh) Reservoir, etc. the importance of water risk management through- Rainwater storage tanks Groundwater membrane Mitsubishi Motors Krama Lake Jatiluhur Sewage line (Okazaki Plant) filtration equipment out the entire value chain. Yudha Indonesia (MMKI) (Okazaki Plant)

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Reuse of Discharged Water Prevention of Water Pollution TOPICS Improving the Combined Wastewater Method Mitsubishi Motors Krama Yudha Indonesia (MMKI) In order to take precautions against any effects on the is making efforts to recycle wastewater and reuse areas surrounding plants, we regularly conduct surveys In old sewer systems, rainwater and domestic waste- rainwater in order to reduce water withdrawal. In and confirmations regarding the quality of groundwa- water flow together and are eliminated through the fiscal 2019, roughly 50% of the water processed in its ter and soil pollution. In this way, we confirm that no same pipes as “combined sewerage.” During typhoons and heavy rains, water volumes can exceed the capac- wastewater treatment plant is reused within MMKI. toxic substances are being discharged to the outside ity of downpipes and water treatment facilities. In such In line with the construction of a new paint plant, area. If contamination is found, we take immediate cases, water is diverted into rivers and other public Mitsubishi Motors (Thailand) Co., Ltd. (MMTh) is mov- measures to prevent its dispersion, report to authori- waterways. This pollution load is an issue from the ing forward with a project to upgrade its wastewater ties, and disclose the information to the communities. standpoint of environmental preservation. treatment plant. On this project, as well, plans call for In order to detect abnormalities in discharge water Remnants of this old sort of combined sewerage the introduction of a system to reuse treated water. quality, surface oil detectors* have been set up in system were intact at the Kyoto Plant (established in 1944). To address this situation, we are proceeding with front of outlets leading from the plant to public wa- phased construction to install new wastewater-specific ter. We carry out continuous monitoring so that water piping to allow for the complete separation of rainwa- discharged from the plant does not affect the envi- ter and other wastewater. In fiscal 2019, we had com- ronment outside the site. pleted construction to separate piping at around 30% *Detects the presence of oil by capturing changes in reflectance of our site area. We plan to finish this construction in as the reflectance of oil is greater than that of water. fiscal 2020.

Industrial water and wastewater treatment plant (Indonesia)

Observation well (Okazaki Plant) General effluent treatment facilities (Okazaki Plant)

Underground construction to install separate wastewater piping (Kyoto Plant) For details on the issues with combined sewerage, see the City of Kyoto website (Japanese only). WEB https://www.city.kyoto.lg.jp/suido/page/0000008679.html

Surface oil detector (Okazaki Plant)

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Prevention of Pollution

FY2019 Materiality Targets and Results : As planned : Delayed Self- Details of Main Initiatives FY2019 Targets Indicators FY2019 Results Evaluation Properly manage hazardous substances Properly manage hazardous substances Reflection in in-house management Continued correct management  in products system including legal movements

Curtail emissions of VOCs in production 35g/m2 or less of VOC* emissions per painting area in pro- VOC emissions 36.5g/m2 activities duction activities  *: VOC stands for Volatile organic compounds

Improving Gasoline Engine Vehicles Basic Approach Purifying Exhaust Gas while Driving Since the 1960s, emissions of carbon monoxide, hy- drocarbons, and nitrogen oxides (NOx) have been It is possible that the air pollutants and chemical sub- Vehicles powered by gasoline and diesel engines steadily restricted by regulations. stances emitted due to business activities will have an inevitably emit combustion gases from the engine MITSUBISHI MOTORS has taken various measures impact on human health and biodiversity. while driving. since such regulations were first introduced. We cur- In order to contribute to the realization of a sus- In addition to developing and popularizing electric rently comply with these regulations by applying elec- tainable society, MITSUBISHI MOTORS considers the vehicles, which emit little exhaust while driving, we tronically controlled fuel injectors and advanced cata- prevention of pollution to be one of the material are endeavoring to develop and encourage the use lyst technologies to the combustion control system. issues for the Company. In the stage of product devel- of gasoline and diesel vehicles that have emissions opment, along with promoting the development of containing fewer hazardous substances. fuel economy improving technologies and electric vehicle technologies, we strive to manage to haz- ardous substances. In production processes, we are endeavoring to reduce air pollutants emitted from out plants by voluntarily enacting activity standards that are stricter than legal requirements. In order to reduce the impact on the environment from air pollutants and chemical substances, we engage in the prevention of pollution throughout all of our business activities.

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Improving Vehicles VG TOPICS For diesel engine vehicles, carbon monoxide, hydro- The VG turbocharger helps to improve fuel economy carbons, NOx, and particulate matter have been regu- and suppress emissions of particulate matter through The Clean Diesel Engine on the ECLIPSE CROSS lated in some countries, such as Japan, United States optimum supercharging across the engine’s operat- and European countries, since the 1970s. ing range. Since such regulations were first introduced, we have taken measures including improving the com- bustion technology. To comply with these regulations, we have developed and produced clean diesel engines by systemizing technology such as VG , controlling combustion with a common rail fuel injec- tion system, introducing after-treatment using NOx Common Rail System trap catalysts, and diesel particulate filters. Particulate matter and NOx can be generated due to incomplete combustion. In MITSUBISHI MOTORS vehi- The ECLIPSE CROSS, which launched in June 2019, is cles, this is suppressed using a high-pressure fuel pump, equipped with a clean diesel engine. Its 2.2-liter com- mon-rail DI-D*1 clean diesel turbo engine achieves a bal- common rail accumulator that stores highly pressurized ance between environmental and driving performance. fuel, and electronically controlled fuel injectors. A urea SCR*2 system is used to purify the diesel engine’s emissions. Nitrous oxides (NOx) are stably puri- fied by AdBlue®*3, an aqueous urea solution.

*1 Abbreviation of direct-injection diesel *2 Abbreviation of selective catalytic reduction *3 AdBlue® is a registered trademark of Verband der Automo- bilindustrie (VDA).

Diesel Particulate Filter (DPF) This substantially reduces particulate matter.

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Co., Ltd. (MMTh), we utilize the collected data under Please see the JAMA website for details regarding Reduction of Hazardous Substances a globally centralized internal system for reducing the Voluntary Guidelines. hazardous substances. WEB http://www.jama-english.jp/release/release/2005/050214.html In accordance with the reduction targets of the Japan In cooperation with suppliers, we are complying Automobile Manufacturers Association, Inc. (JAMA) with the REACH regulation, a general system for the Progress and EU end-of-life vehicles directive, MITSUBISHI MO- registration, evaluation, authorization, and restriction We are working to reduce in-cabin VOCs by developing TORS is working to reduce the use of four substances of substances used in the EU. materials with low VOC emissions and technologies to (lead, mercury, cadmium, and hexavalent chromium). reduce VOCs generated inside the cabin. We have established internal technical standards to voluntarily reduce hazardous substances. We are Flow of Data Collection through IMDS Example of Measures to Reduce VOCs also taking measures to comply with regulations on Carpet Reduced aldehydes in pile adhesives the use of hazardous substances in each country in Mitsubishi Motors Suppliers Data input Seat Reduced organic solvents in fabric adhesives request Data input compliance with the REACH regulation* concerning Ornaments Reduced VOCs by using spun-dyed high- Hazardous Internal gloss interior parts substances. At present, in addition to four substances Substance system IMDS control Data and other heavy metals, the use of VOCs (volatile or- download Air- Reduces VOCs with clean air filter with de- conditioner odorizing function ganic compounds), bromine-based flame retardants and various other substances is regulated. Regula- tions similar to European ones are being enforced in Reduction of In-Cabin VOCs developing countries in Asia as well. We are working to voluntarily reduce hazardous To provide customers with a healthy and safe cabin substances by setting internal technical standards. space, MITSUBISHI MOTORS works to reduce volatile *REACH stands for "Registration, Evaluation, Authorisation and organic compounds (VOCs) inside the cabin. Restriction of Chemicals." Enacted on June 1, 2007, the REACH regulation is a general system to register, evaluate, authorize and VOCs are organic compounds that are easily vola- restrict the use of substances tilized at room temperature such as formaldehyde and toluene. These compounds are thought to cause sick Material Data Control by the International building syndrome, and may irritate the eyes, nose, and Material Data System (IMDS) throat. In an automobile cabin, they are mainly gener- Data on the hazardous substances contained in ve- ated by adhesives and paint used in interior parts. hicle parts delivered by suppliers are collected by the JAMA established voluntary guidelines for reduc- International Material Data System (IMDS), an interna- ing vehicle cabin VOC concentration levels applicable tional system for collecting such data. Together with to new model passenger cars marketed starting from overseas plants such as Mitsubishi Motors (Thailand) the 2007 fiscal year.

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Management of Air Pollutants Appropriate Management of Hazardous Waste Preventing Air Pollution We follow laws and regulations to manage the con- MITSUBISHI MOTORS manages hazardous waste to centrations and amounts of such air pollutants as avoid importing or exporting hazardous waste that Reduction of VOC Emissions from Production Nitrogen oxides (NOx), Sulfur oxides (SOx) and soot is restricted by the Basel Convention on the Control Processes emitted in production processes. (For details, see the of Transboundary Movements of Hazardous and MITSUBISHI MOTORS is applying the waterborne 3WET ESG Data on page 97.) Their Disposal*2. paint method*1 to its painting process to reduce To lower NOx emissions, we introduce low-NOx- We also transport and treat waste produced in Ja- VOC emissions. In Japan, we use this method at the content boilers and burners when upgrading or in- pan appropriately, based on various legal requirements. Mizushima Plant and the Okazaki Plant. Overseas, the stalling new equipment. To reduce Sox emissions, *2 This convention stipulates international frameworks and proce- system is used on the No. 3 paint line at Mitsubishi Mo- we are transitioning to the use of lower-sulfur boiler dures related to restrictions on the movement of certain types tors (Thailand) Co., Ltd. (MMTh). MMTh also plans to use of waste across national boundaries. fuels, such as kerosene or natural gas this approach at a new paint plant it is constructing. We are also upgrading our robotic and other paint- Appropriate Management of ing systems, reducing the amount of paint used by Waste Containing PCBs Management of Chemical Substances adjusting production lots and increasing the amount Harmful polychlorinated biphenyls (PCBs) are con- of used thinner we recover. Through these moves, we tained as insulation oil in transformers and condens- Appropriate Management of are reducing VOC emissions from vehicle production. ers that were manufactured a long time ago. Based Chemical Substances *1 With this method, water-soluble paints are used for the on the Act on Special Measures concerning Promotion When using chemical substances, we employ a sys- middle and top coats. Solvent-based paint is used only for the of Proper Treatment of PCB Waste, we promote the clear overcoat. tem of examining substance toxicity before introduc- correct processing of equipment that uses low-con- ing them. We examine their physical properties and centration PCB and waste that contains PCB, and we the details of usage plans, as well as legal require- plan for disposal by the processing deadline. ments, conduct risk assessments, judge whether they can be used and educate workers. In fiscal 2019, aug- menting the functionality our conventional system, we updated our chemical substance management system by introducing systematic risk assessment of Deodorizing equipment for electrodeposition drying fur- chemical substances and centralized management of naces to reduce VOC emissions the most recent Safety Data Sheet (SDS) information. (Okazaki Plant) We are using this system to manage chemical sub- stances appropriately.

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Preservation of Biodiversity

FY2019 Materiality Targets and Results : As planned : Delayed Self- Details of Main Initiatives FY2019 Targets Indicators FY2019 Results Evaluation Conduce ecosystem surveys and expand • Conduct ecosystem survey at the Kyoto Plant Initiatives • Conducted ecosystem survey at the Kyoto Plant the scope of biodiversity preservation • Plant and grow trees at Pajero Forest Conducted • Performed activities twice during the year  activities at domestic business sites (Yamanashi Prefecture) • Planned afforestation activities in the Philippines • Plant trees in the Philippines

MITSUBISHI MOTORS is collaborating with OISCA to aim to protect metropolitan water sources and spread Basic Approach preserve forests in Hayakawa-cho, Yamanashi Pre- awareness of the environment among our employees. fecture, while interacting with the local community We are also promoting preservation activities at All living things are intricately connected in various through volunteer employee activities. These activities affiliated companies overseas. relationships and live in balance. We benefit from this biodiversity in our lives. MITSUBISHI MOTORS Group MITSUBISHI MOTORS both directly and indirectly Guidelines for the Preservation of Biodiversity impacts on biodiversity due to land use (including the construction of plants), the release of chemical sub- The MITSUBISHI MOTORS Group will continue to track and reduce its impact on biodiversity, recognizing that the activ- ities of humankind can both benefit from and affect the diversity of living organisms. To this end, the entire Group will stances from plants, and the greenhouse gas emitted take on initiatives for preventing global warming and environmental contamination, and promote the recycling and from the use of the company’s products and business efficient use of resources, while engaging in activities that pay consideration to biodiversity. activities. We believe it is a priority to protect biodi- 1. Consideration to biodiversity in business activities versity so that we can continue to enjoy the blessings We will track and reduce the impact of business activities on biodiversity by conserving energy, reducing the genera- of biodiversity. tion of waste, and curtailing the release of chemicals. At the same time, we will also pay consideration to neighboring communities when making use of land for factory construction and other purposes. The company formulated the “MITSUBISHI MOTORS 2. Consideration to biodiversity in products Group Guidelines for the Preservation of Biodiversity” We will promote fuel efficiency, exhaust gas countermeasures and recycling-friendly design of our products, while in August 2010 and promotes conservation activities. striving to select and use materials that pay consideration to the environment. None of our business sites in Japan are located in or 3. Education, understanding and self-awareness adjacent to protected areas according to the Nature We will continue to educate the entire Group from management to employees on the front lines to share a common Conservation Act and prefectural codes. However, we understanding and develop a self-awareness of the relationship between business activity and biodiversity. have been progressively conducting surveys on eco- 4. Cooperation and collaboration with society systems in order to understand the impact our busi- These activities will be promoted in cooperation with all stakeholders including the supply chain, stockholders, local governments, local communities, non-profit organizations (NPOs) and non-governmental organizations (NGOs). ness activities have on biodiversity. 5. Information disclosure We will strive to disclose and disseminate the content and results of these activities to customers and local communities.

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Ecosystem Surveys at Business Sites in Japan TOPICS Ecosystem Survey at the Kyoto Plant Production of vehicles requires largescale plants. MITSUBISHI MOTORS believes that assessing the The Kyoto Plant is located in the Kyoto metropolitan area, surrounded by nu- Unusual Flora Discovered in the City during Our Survey impact that the use of land in company business has merous houses and factories. At first glance, the environment appears inhos- on local biosystems is important to our biodiversity pitable to living things, but we conducted a survey from April through October 2019 to ascertain the impact of land use at the Kyoto Plant on the area’s biodi- protection initiatives. versity and in an effort to preserve that biodiversity. Based on this concept, we conduct ecosystem As a result of the survey, we discovered 367 varieties of flora and fauna at surveys at our domestic business sites with large- the Kyoto Plant. Although we discovered no rare species or alien species of a scale land, such as our factories with support from particularly urgent nature, we did find Ranunculus japonicas and Carex doniana, consultancies related to biodiversity. Ascertaining bio- species that grow mainly in mountain villages but are unusual in urban areas. systems not only in domestic business sites but also We assume the plants are a legacy of the mountainous environment that for- merly surrounded the area. in the surrounding environment by means of field sur- Another factory stood on this location before the Kyoto Plant was estab- Ranunculus japonicus veys and documentary research leads to maintenance lished in 1944. At that time, the surrounding area was dotted with paddy fields. measures that are in harmony with local biodiversity. The area around the Kyoto Plant later urbanized, and the environment that supported this mountain flora gradually disappeared. However, some remnants Locations of past initiatives of this greenery has survived on our premises despite the urbanization. As we have regularly cut the grass and otherwise managed the area, it has managed Kyoto to survive to this day. Plant-Kyoto Accordingly, we believe the Kyoto Plant serves as a refuge where certain Tokachi Tokachi Research & Research & plants can survive locally. We consider this an important environment in terms Development Development Center Center of preserving regional biodiversity. Mizushima Mizushima Mizushima On the site of the Kyoto Plant, we work to preserve the region’s biodiversity Carex doniana Plant Plant Plant through such efforts as cultivating Asarum caulescens, a native species that Okazaki Plant Okazaki Plant Okazaki Plant Okazaki Plant is deeply rooted in the culture of Kyoto. Going forward, we will also nurture the Kyoto Kyoto Kyoto Kyoto Kyoto Plant-Shiga Plant-Shiga Plant-Shiga Plant-Shiga Plant-Shiga connections between the Kyoto Plant and the natural surroundings we discov- ered during this survey. Through ongoing maintenance of the site’s greenery, we 2013 2015 2017 2018 2019 will maintain biodiversity and strive to preserve the regional ecosystem.

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Overseas Preservation Activities

The overseas affiliate Mitsubishi Motors Philippines Corporation (MMPC) and the Department of Environ- ment and Natural Resources (DENR), in accord with the Sustainable Integrated Area Development (SIAD), began a joint afforestation project in March 2018. This project aims to realize sustainable development that is essential for people in poverty, who are particularly susceptible to climate change, and local communities that have been left behind by society. The plan is to plant trees in a total area of 100 hectares in approxi- mately five years in Luzon. In the second phase of this project, in fiscal 2019 we signed a memorandum of understanding with DENR regarding land preparation, afforestation and farmland production on a 30ha site in Laguna Province.

Signing the Memorandum of Understanding

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