2020 Environment Initiative Plan (Fiscal 2016 Targets and Achievements)

CSR Report 2017

Environmental Performance

Hino Motors has formulated its 2020 Environment Initiative Plan, comprised of goals and measures to implement over the period covering fiscal 2016 through 2020. Under the plan, Hino Motors intends to carry out environmental management and measures to help promote low-carbon and recycling-oriented societies as priority tasks over the medium term, based on considerations of social trends and its main policies, including the Hino Credo and its CSR Policy. As a manufacturer of commercial vehicles which supporting people's lives, Hino Motors hopes to help society develop more sustainably by supplying vehicles that it has designed with the environment in mind over the entire product lifecycle.

Special Feature︓Aiming to be a Company that Can Help Society Develop Sustainably 〜Hino Motors Establishes its 2020 Environment Initiative Plan〜 2020 Environment Initiative Plan Copyright © 2014-2017 Hino Motors, Ltd. All rights reserved Designates priority Field Item Specific Action Items/Targets, etc. Fiscal 2016 Achievements and Challenges for the future tasks

Develop technologies to meet world's top- Released new models of HINO Profia heavy-duty trucks and HINO class fuel efficiency standards Ranger medium-duty trucks. The HINO Profia now has 10% greater fuel efficiency than the 2015 fuel efficiency standards, while the HINO Japan: Develop technologies to improve Improve Ranger features 5% greater fuel efficiency.Produced a new model of its fuel efficiency to meet next round of CO medium-duty bus with the release of the HINO Rainbow. Fuel efficiency 2 regulations Improve the performance of emissions standards for heavy vehicles are achieved on all models by adopting a hybrid vehicles and fuel mechanical automatic transmission and reducing truck weight with a United States: Develop technologies for consumption newly developed body. enabling compliance with greenhouse gas performance emission regulations in 2020 of vehicles Europe: Develop technologies to improve fuel efficiency to meet next round of regulations

Product Conduct R&D on electric vehicles Jointly developed fuel cell (FC) buses with Toyota Motor Corporation. development The Toyota FC Bus will be used on bus routes operated by the Bureau Plug-in hybrid vehicles: Conduct R&D of Transportation of the Tokyo Metropolitan Government. intended for making the technology feasible Promote Fuel cell vehicles: Develop fuel cell the vehicles and sell a limited number development Electric vehicles: Conduct R&D intended of vehicles for commercializing electric trucks and that run buses on clean Conduct research on technologies for energy enabling the use of alternative fuels

Develop technologies that enable a switchover to biofuels and other alternative fuels

Carry out initiatives for reducing Steadily promoted the following goals at the CO2 Reduction Working CO2 emissions on both a total and per- Group, which was launched to achieve 2020 goals. vehicle basis by introduce low-CO2 ■ Global Operations production technologies, and reduce CO2 Reduced emissions per unit by 26% compared to FY2008 through daily improvements ■ Consolidated Companies in Japan Building Reduced emissions per unit by 25% compared to FY2008 Low- Consider to exploit renewable energy and ■ Hino Motors, Ltd carbon renewable energy Reduced emissions per unit by 32% compared to FY2008 Society Emissions of fiscal 2015 were 204 thousand tons Energy Derived CO 2 HINO Motors will create technologies and formulate plans to achieve additional long-term goals (30–50 years) Initiatives FY 2020 Region Item for Target reducing 26％ less CO2 Global than FY emissions 2008 in 24 less production Japan Emissions ％ than FY Group per unit yield activities 2008 30％ less than FY Production 2008 and Hino Fiscal 2020 output logistics Emissions target X active mass Control emissions of other greenhouse gases besides CO2

Promote initiatives to reduce CO2 ■ Consolidated Companies in Japan emissions in logistics by improving Reduced emissions per unit of transport volume by 20% efficiency of transportation. compared to FY2008 Further efforts to assess impact due to plant relocation and to promote Make Shorten distribution routes between emissions reduction activities. transportation factories and improve shipping efficiency ■ Overseas Operations more by using tractor-trailers and increasing Promoting reduction activities in each country efficient transport loading rates and reduce Use more fuel-efficient vehicles CO2 Improve efficiency of vehicle parts emissions shipments in logistics FY 2020 Region Item Target Designates priority Field Item Specific Action Items/Targets, etc. Fiscal 2016 Achievements and Challenges for the future tasks

26% less Japan Emission per than FY Group unit of transport 2008 Set target and promote reduction measures according International to the highest standards in each country

Initiatives Create and execute plan to reduce energy Achieved reductions by installing low-energy-consumption lighting and for consumption per unit by at least 1% per placing restrictions on air conditioning usage Decreased total energy Sales ⇒ reducing year at Japanese sales offices; consumption per unit by 1.3% compared to the previous fiscal year and CO Assist customers in reducing CO after- 22 emissions emissions during driving through eco- sales in driving seminars and other initiatives service sales activities Designates Fiscal 2016 Achievements and Challenges for the priority Field Item Specific Action Items/Targets, etc. future tasks

Develop technologies Reduce the amount of precious metals Excavated precious metal substitutes for gas that enable elimination used in exhaust-cutting catalytic emission reduction catalysts of the use of scarce converters resources Product development Initiatives to create assembled structures Incorporated considerations for recycling and Develop new vehicles that are easy to disassemble disassembly in the design of vehicle structural with a higher ratio of components and created manuals explaining recyclable components disassembly Contributed to effective use of resources by reducing vehicle body weight.

Adopt waste reduction technologies and ■ Consolidated Companies in Japan promote waste reduction in regular Reduced amount of waste generated per unit by 42% improvement activities compared to FY2008 Achieved a final disposal rate of 0.17% Facilitate more effective usage of resources by improving yield rates and We will continue reducing activities through each managing the sources of waste conference Promote the usage of the Hino Motors Group’s resource ■ Overseas operations Set targets for waste matter in each country and Waste proceeded to make reductions

Reduce waste from FY Region Object Item 2020 production and Target logistics, and use resources effectively 43% Generated less waste per unit than Japan yield FY Group 2008 Final Zero disposal ※ Integrate waste reduction International performance in management ※ Definition of Zero: Landfill amount including ash after incineration is not more than Creation of 0.5%,compared with total waste including Closed Loop recyclable. Economy ■ Consolidated Companies in Japan Promote activities for reducing water Reduced water usage per unit by 39% compared to consumption in consideration of water FY2008 Production supply conditions in each country and Further water-saving equipment to be installed and and region where the Group operates recycling promoted. logistics Conserve water through actively introduce ■ Overseas operations water-saving technologies and continual Set targets in each country and proceeded to make improvement reductions Initiatives for reducing water usage in Water usage production activities FY 2020 Region Item Target Japan Water use 40% less Group per unit yield than FY 2008 Integrate water usage International reduction performance in management

Reduce usage of packing and shipping ■ Consolidated Companies in Japan materials by making them returnable and Reduced amount of packaging materials used per more lightweight unit of shipment volume by 62% compared to FY2008 Further efforts to assess impact due to plant Enable use of returnable racks in more relocation and to promote emissions reduction countries activities. Improve methods of packing vehicle parts ■ Overseas operations Initiatives for reducing Promoting reduction activities in each country usage of packaging Packaging Materials materials and use FY 2020 resources effectively Region Item Target Use per unit of 57% less Japan shipment than FY Group volume 2008 Designates Fiscal 2016 Achievements and Challenges for the priority Field Item Specific Action Items/Targets, etc. future tasks

Calculate the amount of packaging materials used and International expand activities to reduce them

Designates Fiscal 2016 Achievements and Challenges for the Field Item Specific Action Items/Targets, etc. priority tasks future

Introduce vehicles with lower gas Released new models of the HINO Profia heavy-duty emissions to help improve urban air trucks and HINO Ranger medium-duty trucks. These quality in each country and region trucks’ new engines employ technology that reduces two-stage supercharging and frictional resistance. Japan: Release vehicles to the market that They conform to 2016 gas emission regulations comply with Japan’s 2016 exhaust thanks to further improvements in their after-treatment emission regulations Research and systems. Released small-duty trucks with improved develop new technologies to comply with Reduce gas performance. A model compliant with 2016 gas new exhaust regulations starting in 2016 emissions to help emission regulations was also added to the lineup. United States: Bring vehicles to market that improve urban air comply with US13, and Develop vehicles quality in each that comply with U.S. exhaust emission country and region Product standards effective from 2016 development Europe and developed countries: Develop and release vehicles to the market that comply with EURO 6 exhaust emission standardsIn general: Introduce low-emission vehicles (EURO4 or 5 level)

Further reduce the Collect and manage information on Collected and managed all material data including that use of increasing regulations in each country for unregulated substances. environmentally where the Group operates, and take the harmful materials lead in switching to alternative materials

Promote reduction of VOCs through ■Hino Motors, Inc. constant improvement Achieved 18 grams of VOCs per square meter of Environmental painted surface area Promote initiatives relating to Conservation Reduce the use of painting materials and renovation plan for painting equipment and facilities & thinners in vehicle painting work and continued efforts to reduce volatile organic Creation of compounds (VOC) through constant improvements. Society Body Painting ■ Overseas Operations Coexisting in Currently compiling results Harmony with FY 2020 Region Item Nature Target Other Painting-related Initiatives Reduce substances Less than 22 Production that impact the VOC grams of Further efforts to assess the current status of other Emissions VOCs per and environment in Hino components and implementation of detailed study into per surface square meter logistics production activities items for reduction. area painted of painted (VOC) surface area Broaden initiatives for reducing International emissions of VOCs

Other Paintings

Set annual reduction targets on a Hino per-vehicle basis every year Integrate VOCs reduction Japan/Intl. performance in management

Promote initiatives based on biodiversity Carried out initiatives in consideration of ecosystems guidelines surrounding workplaces incountries worldwide Implement -Hino- Weed clearing in Ome City Carry out regular activities in consideration biodiversity -Koga- Weeding using goats of the unique ecosystems surrounding the preservation -USA- Clean-up along the Ohio River Social factories in each country and region activities locally at Further efforts to spread awareness of the Guidelines contribution (including forest conservation and factories in every within the Company and promote related activities. protection of local habitats) region where the Undertake environmental conservation Group operates initiatives together with local residents and children Designates Fiscal 2016 Achievements and Challenges for the priority Field Item Specific Action Items/Targets, etc. future tasks

Japan/Intel.: The Company's activities are listed below. Issued Activities to ensure No.1 of environmental periodic reports on environmental performance and performance in each country and region improvement initiatives at group companies in and Strengthen and Comply with environmental laws in each outside Japan Made progress in eco-factory initiatives at promote group country and region, and enhance activities to group companies in and outside Japan environmental prevent environmental risk Compiled list of requests and created diagnostic tools in management order to launch environmental management systems (EMS) diagnosis at overseas production sites. Achieve further improvements by holding interactive seminars and workshops to improve capabilities

Promote Suppliers: Compliance with laws by suppliers, Suppliers environmental and enhance management of substances that Began improving and employing in-house chemical activities in impact the environment contained in parts, management systems to account for stricter global collaboration with raw materials, secondary materials, chemical substance regulations business partners production equipment, etc. Request for (Our suppliers) environmental performance activities

Sales in Japan: Promote environmental ■ Consolidated subsidiaries in Japan activities by sales companies via each Implemented environmental activities at 222 dealers Promote Environmental Management System. across Japan to facilitate related improvements and environmental Sales outside Japan: Grasping the burden upgrades Certified two more dealers as Eco- activities in on the environment and act continually to Management Dealers, bringing the total to 221 collaboration with raise awareness of the environment nationwide business partners ■ Overseas Sales Operations (Dealers and Shared environment-related data monthly with overseas Environmental Management distributers) sales offices Management Held events to promote environmental awareness during World EnvironmentMonth in June

Systematically implement environmental The Company's activities are listed below. Implemented education and awareness training online environmental education, carried out graded programs for every employee training programs, and provided education and tests on ISO internal environmental audits Designed graded training courses Improve global Conducted an environmental awareness survey human resources Distribution of president message to employee and development and affiliated companies. training programs Held environmental exhibitions and presented various awards Implemented an in-house eco-point system and presented related awards Continue to actively promote initiatives that boost environmental awareness, including the planning of participatory events for employees.

Enhance provision of information on The Company's activities are listed below. Exhibited Hino product environmental technologies in Motors’ new fuel-efficient engines and introduced the Actively disclose each country and region (e.g. exhibiting at Company’s environmental technologies at the environmental expos) Automotive Engineering Exposition. information and Continually publish CSR reports and other Four subsidiaries worldwide issued CSR reports Carried enhance documents in each country and region, and out interactive events with community residents at communication publish at more sites subsidiaries around the world Continue to actively Enhance environmental communication in engage in information provision outside the company each country and region