Sustainability Report 2015/16

SUSTAINABILITY REPORT 2015/16 foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Contents 04 10 30 38

FOREWORD PROFILE 2015/2016 PEOPLE

06 Statement from the Chairman, 11 Nissan Brazil 31 Economic performance 39 Human resources Nissan Latin America 14 Nissan Way and Blue Citizenship 34 Operating performance indicators 08 Statement from Nissan Brazil 16 Products and infrastructure 36 Innovation programs 40 People management 20 Corporate governance 44 Health and safety 20 Governance framework 23 Ethics and transparency 26 Materiality 26 Stakeholder engagement 52 70 94 103

EXTERNAL STAKEHOLDERS ENVIRONMENT GRI CONTENT SUMMARY 103 ACKNOWLEDGMENTS

53 Customers 73 Environmental management 95 About this report 57 Suppliers and impact mitigation 62 Communities and government 75 Eco-efficiency and resource usage 92 Biodiversity foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS foreword Welcome to the Nissan Sustainability Report, which reviews our social, environmental and economic performance in Brazil in 2015 and 2016.

This Sustainability Report describes nationally recognized standards on Nissan’s most significant achievements corporate sustainability reporting and in the two-year period 2015/2016. We re- management. port to our stakeholders – our customers, employees, partners and commu- We hope you find this report interesting nities – on our progress in the period and informative. in achieving sustainable development across social, environmental as well as Marcia Ribeiro economic aspects. Nissan’s innovation, Head of Government Affairs & Sustainability, human resources initiatives, social re- Nissan Brazil and Executive President, sponsibility programs and environmen- Nissan Institute tal initiatives are reported in detail. We also describe our support for the Rio 2016 Olympic and Paralympic Games and how it has further strengthened the Nissan brand in Brazil. This Report has been prepared in accordance with the Global Reporting Initiative’s inter- foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Statement from the chairman, Nissan Latin America

Nissan has a growing global pres- expectations, we must also build ence and a particularly strong track transparent relations with stakehold- While we faced record in Latin America and Brazil. ers, including employees, customers, We have pursued sustainable growth suppliers and the broader community. many challenges with a strong commitment to people The results presented in this edition and the environment. Guided by our of Nissan Brazil’s Sustainability Report corporate vision of “Enriching People's show that we are progressing in part- in 2015 and 2016, Lives”, Nissan aims to contribute to nership with society. the sustainable development of so- we have grown yet ciety through its full range of global While we faced many challenges in business activities. 2015 and 2016, the period covered by stronger in Brazil. this report, we have grown yet stron- We recognize the important role we ger in Brazil. Nissan has built a solid play in society’s development. Respect foundation that provides us with the for customers, continual improve- confidence to take our growth to the ment of product quality, transparency next level in this market, with a re- toward our employees and product newed social commitment. As we en- development under Nissan’s Intel- ter this new chapter, I have appointed ligent Mobility concept are central to Marco Silva as President of Nissan our business activities. But we know Brazil with the mission of working with we must go further. We contribute the team to bring Nissan closer to social and environmental solutions to Brazilian consumers and help shape the regions where we operate, while the future of this immense and di- also encouraging and enabling oth- verse country, with responsibility. ers to undertake social responsibility initiatives as well. José Valls Chairman Nissan Latin America This approach to corporate social responsibility at Nissan is called “Blue Citizenship”.

Through Blue Citizenship, Nissan aims to be recognized by its stakeholders as a company that lives up to the expectations of society. To meet these foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Statement from Nissan We are growing sustainably, responsibly and in integration with Brazil G4-1 society and the environment.

Our operations in Brazil are still fairly We have enhanced our Compliance We know that in addition to generat- incipient. While we have more than 80 policy and internal management ing employment opportunities and years of global automotive history, we controls with transparency, dialog and revenue streams for Brazil, we need to started operations at our first manu- employee engagement through in- engage with, and in, the communities facturing plant in Resende, Brazil, as creasingly simplified and efficient com- where we do business. By doing our recently as 2014. munication channels. part, we hope to inspire others – busi- nesses, organizations and individuals In this brief timespan, however, our And of course I cannot fail to mention – to think about sustainable develop- roots in Brazil have grown strong. the Social Responsibility programs ment. we have implemented through Insti- Building on our previous report for tuto Nissan, in which employees have Alongside our commitment to building 2013/2014, this report covers the period volunteered with dedication and com- and marketing vehicles, creating job 2015/2016 and demonstrates the rapid mitment in a range of projects and opportunities and shaping the future progress we have made on a wide initiatives that have had a tremendous of mobility, it is also our commitment range of issues. impact on our communities. and responsibility to consistently move forward toward a better, more sus- Our key message is, we are growing One project in particular, called “Caju: A tainable and equal future for the next sustainably, responsibly and in integra- New View", has truly been a source of generations. tion with society, the environment and pride. Developed in collaboration with Brazil’s changing landscape, keen to NGO Fundação Gol de Letra, this project I hope you find our report inspiring. repay the trust that Brazilian consum- has left a real legacy from our support ers have placed in the Nissan brand. as an official sponsor of the Rio 2016 François Dossa Olympic and Paralympic Games. President, Nissan Brazil from January 2013 In the last two years we have pushed to March 2017 and currently Global Head forward in delivering on Nissan's com- As important actors in the Games, we of Innovation Investment, Renault-Nissan mitment to sustainable development in helped ensure society derived social Alliance every production process, in our mar- benefits, in addition to the sheer gran- keting efforts, in our day-to-day inter- deur of the event, for Rio and Brazil. action with communities and in our investment in intelligent technologies, Implemented in Caju, one of Rio de Ja- further solidifying our strategic pillar of neiro's most impoverished regions, with providing mobility for all. the lowest Human Development Index in the state, the project is in its second An example if this, among the many we year of operation and has benefited discuss in the following pages, is the hundreds of youth and adults through energy efficiency RA ating our locally educational support, professional train- manufactured engines have earned in ing and job opportunities. Brazil, which we proudly display on our windscreen labels. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

About Nissan G4-2, profile G4-9

Nissan Motor Company is a global full-line vehicle manufacturer that sells more than 60 models under the Nissan, Infiniti and Datsun brands. In fiscal 2016, Nissan motor the company sold 5.63 million vehicles globally, generating revenue of 11.72 trillion yen. Nissan engineers, manufac- tures and markets the world's best- company selling all-electric vehicle in history, the Nissan LEAF. G4-3 Nissan's global headquarters in Yo- 5.63 generated kohama, Japan, manages operations in six regions: Asia & Oceania; Africa, Middle East & India; China; Europe; Latin million revenues of America; and North America. Vehicles sold globally Nissan has a global workforce of in 2016 247,500 people and has been partnered with French manufacturer Renault 11.72 trillion yen under the Renault-Nissan Alliance since 1999. In 2016, Nissan acquired a cess and operations synergies in key 34 percent stake in Mitsubishi Motors, areas as well as substantial cost sav- which became the third member of the ings, while preserving each company’s in 2016 Alliance – a grouping with combined distinct brand identity and values. In annual sales of almost 10 million units a 2002, Nissan initiated local production year. G4-6 at the Renault plant, which is also home to our Engineering, Purchasing and With a presence in Brazil since 2000, Quality departments. Nissan has since Nissan has more than 166 dealers developed its own manufacturing facili- country-wide and continues to invest ties. G4-8 and build market share. The Renault- Nissan Alliance has benefited both our The Resende Plant, the first Nissan- French partner and Nissan Brazil. This owned plant in Brazil, in southern Rio de unique business model delivers pro- Janeiro State, began operations in April

With a presence in Brazil since 2000, Nissan has more than 166 dealers country-wide. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Resende (RJ) became home to Nissan’s first plant in Brazil in 2014.

2014, in an investment of R$ 2.6 billion. energy efficiency and emissions pro- Strategically located alongside Via Dutra, gram, and have been awarded a CON- Brazil’s most important highway, the PET label for maximum efficiency in the facility also hosts a Parts Storage and light vehicle category of the Brazilian Distribution Center. In 2015, the Resende government’s energy efficiency labeling Plant initiated production of the Nissan program. Versa, a compact sedan and the second model to be produced at the plant (the Nissan Brazil has also prepared to pro- first being the Nissan March, launched duce the new crossover Nissan Kicks in in 2014). Nissan had previously produced 2017, in an investment of R$ 750 million vehicles in Brazil at a plant operated by involving a second shift and 600 new the Renault-Nissan Alliance. hires at the Resende Plant (RJ). The launch strategy for the Nissan Kicks in Also in 2015, the plant initiated prepara- Brazil included sponsorship of the Rio tions for production for the export mar- 2016 Olympic and Paralympic Games in ket and in March 2016 initiated exports August 2016 and the Olympic Torch re- Nissan Brazil is strongly engaged in of the Nissan Versa and March to eight lay convoy, which passed by more than sustainability and social initiatives, and Latin American countries: Argentina, 300 cities all across the country over a uses green manufacturing principles Chile, Bolivia, Costa Rica, Panama, Para- period of 95 days. The Nissan Kicks was at the Resende Plant with its modern guay, Peru and Uruguay. A milestone the official vehicle of the OlympicT orch assembly line and facilities designed of 10,000 exported units was reached relay and Rio 2016 Olympic Games, rais- for responsible use of natural resources one year into the program. Nissan Brazil ing awareness for Nissan and building a such as water and electricity. Our op- has plans to further increase its export closer brand connection to Brazil. erations also seek to minimize waste capacity in 2017. G4-8 and develop solutions to mitigate environmental impacts. March and Versa are two compact models delivering comfort, performance and fuel economy as the only models in the segment equipped with Xtronic Continuously Variable Transmis- R$ 2.6 sion (CVT) systems. Both feature 1.6-liter 16V engines and have been developed within the Nissan Intelligent Mobility billion concept. The two models are also A- rated by Brazil’s INMETRO Invested in the development of the Resende Plant (RJ) foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

The Nissan Way and Blue Corporate Vision Citizenship G4-56 Nissan: Enriching people’s lives. Being cross-functional and cross-cul- enhance performance each day, in tural; transparent; a passionate learner; every task. able to achieve maximum results with Mission minimum resources; and consistently Nissan aims to be the most Brazilian Nissan provides unique and innovative automotive products competitive. These mindsets underpin of local Japanese automakers and, and services that deliver superior measurable values to all the Nissan Way. Nissan’s mission is to through bold innovation, deliver prod- stakeholders in alliance with Renault. provide unique and innovative auto- ucts and services that enrich people’s motive products and services that lives by enhancing mobility and gener- deliver superior measurable value to all ating regional integration and develop- stakeholders in alliance with Renault. In ment. In achieving these goals, we rely mindsets achieving this mission, we have adopt- on the performance and engagement ed a set of guiding principles that aim of our primary asset: our people. All 1. Cross-functional, Cross-cultural to ensure sustainable growth by moti- teams are committed to creating a rich Be open and show empathy toward different views; welcome diversity. vating our employees and partners. cultural environment built on diversity and sustainability, ensuring superior 2. Transparent Our global message that “the power performance in all our operations. Be clear, be simple, no vagueness and no hiding. comes from inside” is more than just a catch phrase. All employees are en- 3. Learner The performance Be passionate. Learn from every opportunity; create a learning couraged to deliver results and leaders and engagement are encouraged to consistently chal- of our employees is company. lenge the status quo to increasingly our primary asset 4. Frugal Achieve maximum results with minimum resources.

5. Competitive No complacency, focus on competition and continuous benchmarking.

actions 1. Motivate How are you energizing yourself and others?

2. Commit and Target Are you accountable and are you stretching enough toward your potential?

3. Perform Are you fully focused on delivering results?

4. Measure How do you assess performance?

5. Challenge How are you driving continuous and competitive progress across the company? foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Blue Citizenship G4-DMA Indirect According to the Resende tax authority, Education is another priority in our economic impacts in addition to supporting infrastructure social initiatives, for we believe that it improvements and creating job oppor- is only possible to contribute to real Blue Citizenship is Nissan’s corporate tunities for communities in the region, societal development through educa- social responsibility platform, encom- Nissan now accounts for 40 percent of tion. A key educational initiative is the Club Metier G4-EC8 passing initiatives to transform and the city’s tax revenue, which previously Parque das Águas Municipal Children’s contribute to the sustainable develop- was largely supplied by truck manufac- Education Center, built and operated in Nissan has developed an initiative ment of society. Inspired by the color of turer MAN. G4-EC8 a public-private partnership between to share best practices across our our blue planet, the platform focuses Instituto Nissan, the municipal govern- global Alliance. Club Metier is an inter- on three areas: Sustainability, Mobility Nissan Brazil also invests heavily in in- ment of Resende and the state gov- nal benchmarking center designed to and Community. novation and in developing the infra- ernment of Rio de Janeiro. Opened in improve manufacturing process per- structure and partners needed to make 2015 in Resende, the day care center formance and reduce costs – especially The concept includes our environmen- electric vehicles a reality in Brazil. and school provides infrastructure and manufacturing costs, including Cost tal stewardship efforts. A global leader educational content developed based per Unit (CPU) – for a higher performing, in zero-emission manufacturing, in 2014 Nissan LEAF, the world’s best-selling on sustainability and environmental more competitive and efficient manu- Nissan started operations at the newly electric vehicle, was brought to Brazil criteria. facturing enterprise. built Resende Plant in Rio de Janeiro through a Pilot Electric Taxi Program State, designed to be one of the most run from 2013 to 2016 in collaboration modern, as well as Nissan’s most sus- with Petrobras Distribuidora (BR) and tainable, plant in the world as part of the municipal government of Rio de Ja- the Nissan Green Program (NGP). neiro. Fifteen Nissan LEAF taxis operating in the city avoided 75 metric tons

of CO2 emissions per year.

Products and infrastructure

Since 2000, Nissan’s strategy for Brazil Our products are marketed through has focused on producing and market- a network of 166 dealers throughout ing vehicles delivering high value and Brazil. Nissan Brazil’s manufacturing recognized quality. Headquartered in plant in Resende produces the Nissan Rio de Janeiro, the company operates March, the Nissan Versa and (beginning five other business units in Brazil: a in 2017) the Nissan Kicks. In addition to Manufacturing Plant and Part Storage these, we also market another three Facility in Resende (RJ); a Regional Office models in Brazil: Nissan Sentra, Nissan in São Paulo (SP); a Training Center in Frontier and Nissan GT-R. Jundiaí (SP); and a regional office in São José dos Pinhais (PR). foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

State-of- Nissan March Nissan Versa Nissan Sentra Nissan Frontier Nissan GT-R the-art Our first model to be produced The second model produced at Completely redesigned for this Famed in the domestic market Unveiled globally as the GT-R at the Resende Plant in Rio Nissan’s Resende Plant, Versa seventh generation, the Nis- – and globally – for strength, the Concept at the 2005 Tokyo Mo- technology is de Janeiro, the Nissan March is a compact sedan with the san Sentra is a best-selling Nissan Frontier has been com- tor Show, Nissan’s legendary features technologies that are largest interior space and high- midsize sedan in Brazil and pletely redesigned for a March high-performance sports car in every stage unique in its segment, includ- est highway fuel efficiency in its globally. Equipped with a mod- 2017 launch of its top-of-the has kept true to its origins, while ing Nissan Connect© – a global segment in Brazil. It is available ern, 140-horsepower, 2.0-liter, range version. The 12th genera- incorporating next-generation of Nissan’s platform that connects the ve- in versions with three-cylinder, 16-valve flexfuel engine, Sentra tion of the Nissan Frontier pre- tech features. In addition to its hicle to the most popular social 1.0-liter or four-cylinder, 1.6-liter is A-rated by Brazil’s energy ef- miered in Brazil with a modern distinctive four-ring tail light production media – and items such digital engines, both of which feature ficiency program.T he model design and a host of new tech, signature, the GT-R features a air conditioning, electric steering, the Flex Start cold-start system features leather seats in the SL comfort and safety features powerful twin-turbo V6 engine line. GPS, a next-generation sound and an INMETRO “A” rating for top and SV intermediate ver- within Nissan’s Intelligent Mobility and an advanced All-Wheel Drive G4-4 system and other comfort and efficiency. sions and is packed with com- concept, for a safer, more robust system. All of this packaged in safety features. The model is fort, entertainment and safety and intelligent driving experi- a modern exterior design with available in versions with 1.0-li- features. The model’s most ence. It is without question the body lines that are sleek as well ter 12V and 1.6-liter 16V engines, complete package (SL) can also best in our 80-year legacy of as brawny. both of which boast INMETRO’s be purchased with a sunroof. pickup truck leadership. The new “A” rating for fuel efficiency. Frontier is sold in Brazil in its full- feature, LE version, equipped with the all-new 2.3-liter twin-turbo diesel engine that delivers 190 hp.

NISSAN KICKS The Nissan Kicks translates on top-of-the-range versions. in Latin America” by Americar, this concept with a number of "Best Compact SUV” by L'Auto With its bold and dynamic de- features, including a modern Global sales of Nissan Kicks was Preferita (Brazil), “Best Imported sign, the Nissan Kicks is built for powertrain, latest generation launched in Brazil, followed by SUV” by Top Car TV and "The busy city-dwellers to tackle the Xtronic CVT transmission, and Latin American countries. Nissan Best" and "The Best SUV of the intensity of the urban jungle. It is lowest-in-class weight, in addi- Kicks will also be introduced in Year" by Car and Driver Brazil. one of the first models to apply tion to an aerodynamic design more than 80 global markets. Nissan’s concept of "Intelligent that improves efficiency. Packed Mobility," with a combination of with truly useful safety technol- The Nissan Kicks is a sales suc- performance and fuel economy ogy, the Nissan Kicks offers the cess in Brazil and in the region, thanks to advanced engineering 360-degree view camera, Mov- having received a number of ac- and manufacturing processes ing Object Detection (MOD), colades. These include "2017 SUV and the incorporation of innova- Chassis Dynamic Control, Active of the Year" by FIPA (Inter-Amer- tive technology. Trace Control, Active Ride Con- ican Federation of Automotive trol, and Active Engine Braking, Journalists), "Best Crossover foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Corporate governance

T ransparency and ethics are core pil- transparent and conforms to the high- lars of our governance framework and est standards of business conduct and the Nissan Way mentalities. In Brazil, we ethics and market regulations. have adopted the same, best-practice management and governance frame- Governance framework G4-34 work and approach as our global head- Our operations are divided into Market- quarters. All employees and partners ing & Sales, Management & Finance and are expected to adhere to the prin- Industrial Operations functions. These ciples of our global Code of Conduct, functions report to senior manage- including respect for diversity, sustain- ment through regional vice presidents ability and business ethics. for Marketing & Sales, Management & Finance and Industrial Operations. Transparency in our relations with stakeholders is also crucial for the business. We therefore strive to ensure our decision-making is responsible and

president, nissan Vice President Industrial M&S VP LATAM brazil Operations

m&s a&f mzk Our highest governance body is com- Nissan Brazil is committed to fair op- posed of the President & Chief Execu- portunity and transparency and has tive of the Nissan Motor Company, the a performance assessment policy in Chairman for Latin America and the place that covers all levels of the orga- marketing sales communications logistics production President of Nissan Brazil. Decision- nization, including top management. making, control and performance as- Performance is measured at least once sessment and resource management a year against goals that have been strategic committees hold regular meetings with established for the period. Performance after-sales government affairs procurement quality support the President of Nissan Brazil, and deci- assessment results are input into each sions taken are implemented through employee’s profit-sharing bonus calcu- internal integrated management pro- lations. production cesses. legal Finance r&d control Senior and middle management com- municate directly with all employees manufacturing through conference calls, meetings and it hr c osts RESOURCE initiatives such as ‘Bom Dia’ – a weekly PLANNING leadership newsletter providing teams with company news, guidance and re- governance, compliance ports on results. exports and internal controls

foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

COMPOSITION OF GOVERNANCE BODIES AND BREAKDOWN OF EMPLOYEES BY CATEGORY, GENDER, AGE GROUP, MINORITY GROUP MEMBERSHIP AND OTHER INDICATORS OF DIVERSITY: Our compliance program is structured around four pillars: Complete Organization & Senior Governance Governance & Culture; Policies, 2015 2016 Processes & Procedures; People; Gender (%)¹ Men Women Total Men Women Total

Senior Management 88% 12% 100% 88% 12% 100% Monitoring, Reporting & Testing.

Middle Management 78% 22% 100% 85% 15% 100% Ethics and Transparency Nissan Brazil implemented a compli- Leader/coordinator 81% 19% 100% 79% 21% 100% ance program in 2015 that is responsive to our changing society and focuses Technical/supervisor 98% 2% 100% 96% 4% 100% on management based on ethics and transparency. The initiative has advanced Administrative 66% 34% 100% 65% 35% 100% a governance transformation within the company with the implementation Operational 90% 10% 100% 90% 10% 100% in 2017 of a Governance, Compliance & Internal Controls function responsible for Intern/Trainee 61% 39% 100% 49% 51% 100% running the regional Compliance Com- mittee for Latin America. Minor/Young Appren- 71% 29% 100% 48% 53% 100% tice After mapping key risks and integrity 2015 policies, a Nissan Latin America code marked the implementation of Total 81% 19% 100% 79% 21% 100% of ethics was developed based on 27 our Compliance program, followed principles, in line with our global code in 2017 by the creation of our Gov- 2015 2016 of conduct. In 2016, our Compliance ernance, Compliance & Controls program was extended to major mar- function People with Men Women Total Men Women Total kets in Latin America including Mexico, disabilities (%)² Argentina and Chile. each area or function, expected behav- Total 78% 22% 100% 77% 23% 100% Our Compliance program is structured iors and activities, and the organiza- around four pillars: Governance & Cul- tion’s accumulated knowledge. Con- 2015 2016 ture; Policies, Processes & Procedures; trols and tests have also been defined People; Monitoring, Reporting & Testing. and are continuously monitored and Age Under 26 to 36 to Over Under 26 to 36 to Over assessed in response to identified risks, group 25 35 45 46 Total 25 35 45 46 Total Based on these pillars, education and regulatory changes and changes in the (%) culture initiatives were developed and business environment. disseminated through internal cam- Tlota 18.9% 49.0% 24.2% 7.8% 100% 15.4% 49.9% 26.0% 8.7% 100% paigns, compliance ambassadors at A new reporting system, called Speak- each function and mandatory training Up, has also been launched globally. for all employees, including executives. SpeakUp reports can be made anony- mously 24/7 on a dedicated website or Note 1: In 2014, 82 percent of our employees were men and 18 percent were women. Our policies and procedures, in turn, by telephone. All reports are investigated Note 2: In 2014, we had 22 employees with disabilities. Our Programa Incluir platform supports hiring of people with special document methods of operation for by the Compliance department in ac- needs in advocacy – we employed 35 people with special needs as of year-end 2016, and hope to employee 50 in 2017. cordance with the principles of indepen- Note 3: Data on employee numbers by race are not available. dence, neutrality and confidentiality. A foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

total of 29 reports were received in 2015 The Internal Audit and Corporate Gov- and 44 in 2016 – all rated as low or mod- ernance, Compliance & Internal Con- erate severity – and were investigated to trols are independent of each business ensure an appropriate response. unit and report directly to the Chairman of Nissan Latin America and the Chief Nissan’s Three Lines of Defense Nissan uses the Three Lines of Defense Executive of Nissan Motor Company. roles & responsibilities approach to instill a culture of integrity. This involves assigning roles and responsibilities for identifying, preventing and remediating risks at all levels of the Board of Directors board of auditors operation. The first line of defense is operational management; the second is Risk Management and includes Corpo- Internal Controls meeting with chief rate Governance, Compliance & Internal Committee competitive officer Controls; and the third line of defense is the Internal Audit function. global compliance committee

regional compliance committee

local compliance committee

1st line of defense 2nd line of defense 3rd line of defense

OPERATIONAL risk management internal audit MANAGEMENT risk management Provides independent and internal controls FUNCTIONS objective assurance designed ethics/compliance PROGRAMS to create value and improve our REGIONS Supports operational manage- operations. Ensure daily operations are con- ment in establishing and imple- ducted correctly, in compliance menting risk controls and regula- with regulations and policies tory compliance measures. and to the highest standards of performance. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Members of governance bodies informed of and/or trained on anti- EMPLOYEES INFORMED OF AND/OR TRAINED ON ANTI-CORRUPTION PROCEDURES bribery procedures (senior management)

2014 2014 informed 100% informed 100% trained 0% trained 0% 2015 2015 informed 100% informed 100% trained 68% trained 87%

2016 Note 1: A global biennial bribery and corruption training program was launched in 2015 and the results are presented in this Report. No anti-bribery training was delivered in 2016. informed 100% trained 0%

materiality A Materiality Matrix was developed sumer defense specialists. The results G4-18, G4-25 based on online questionnaires sent to from the surveys were then aligned with 1748 respondents, including 1300 em- Nissan Motor Company’s strategy. In accordance with the materiality ployees and contractors, 243 suppliers principle and the guidelines published and 205 dealers. Stakeholder engagement by the Global Reporting Initiative (GRI), Stakeholder engagement is a key fac- Nissan Brazil’s second sustainability We conducted 19 interviews – including tor in our decision-making process and report has been informed by a compre- 7 external interviews – about important seeks to establish dialog involving society hensive assessment of the company’s themes identified as key areas for the and its stakeholders. Functional heads’ re- sustainability performance and by company’s development. This process ports to members of senior management engagement with internal and external involved customers, suppliers, associ- include relevant inputs gathered through stakeholders around key issues. ates and automotive industry and con- stakeholder engagement. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

description: Materiality issues 2015/2016 GRI ASPECTS G4-19, G4-20, G4-21, G4-27 Forms of stakeholder 1. Innovation and disruptive technologies engagement G4-2, G4-24, G4-26 customers employees 2. Creating jobs and income opportunities Indirect economic impacts

Customer service interaction, Direct contact with leadership, contact through dealers, websites, weekly newsletter, wall newspaper, showrooms, motor shows, events, intranet, corporate TV broadcasts 3. Incorporating technologies customer surveys, media (TV, maga- and events. for eco-efficient vehicles zines, social media), vehicle mainte-

nance, mailing service.

4. Macro-economic effects on customers’ Economic performance purchasing power

5. Social and environmental responsibility toward Local communities communities Suppliers and Dealers Governments, Industrial NGOs and NPOs Associations and Business Partners Direct contact, briefings on our cor- Direct contact, financial support for 6. Urban mobility solutions porate values and guidelines, dealer philanthropic activities and social conventions and conferences, busi- Direct contact, leadership and programs, events, partnerships, do- ness meetings, dedicated portal site. spokespersons, joint research and nations and disaster relief activities. projects, participation in tests, work- 7. Greenhouse gas emissions Emissions ing groups and events.

8. Energy consumption in operations Energy

9. Customer and dealer satisfaction Product labeling Local communities Future generations Media

Contact through donations, activi- Contact through philanthropic pro- Contact with PR team, local mailing Employment, Training 10. Attracting and retaining talent ties, partnership, sponsoring, and grams supported by Instituto Nis- service, press releases published on and education

Instituto Nissan initiatives and proj- san, plant visits, volunteer-facilitated our website, press conferences, PR ects. Resende Plant visitation pro- workshops, events and websites. events, scheduled interviews with gram (RJ). Sponsoring local events. company spokespersons. 11. Operations waste management Effluents and waste Support for traffic safety awareness and reverse logistics campaigns. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Financial performance G4-9, G4-DMA Financial performance Marked by a severe economic slow- down, major political upheaval, loss of purchasing power and lengthy periods of exchange rate oscillations, in 2015 and 2016 the entire manufacturing industry and automotive sector, in particular, underwent the worst crisis in recent memory. Automakers saw sales dive by 26% in 2015 and 20% in 2016, 2016 with most forced to downsize production and assembly lines as a result. all operating targets and vehicle and parts sales targets were met Brazil’s economic crisis hit the automotive industry hard, leading to its worst performance in over 15 years. Despite these headwinds, Nissan grew its market share from 2.3% to 2.6% in The end of the Brazilian currency's de- fiscal 2015.T his remarkable record was valuation run against the US dollar soft- surpassed in fiscal year 2016, when ened the financial impact on imported the company achieved a 3.4% market parts and models and helped dealer- share - equal to sales growth of 12% ships improve margins. These positive over 2015. results were also driven by sales of models manufactured in Brazil (March Excellent after-sales and continual in 2014 and Versa in 2015) following the enhancement of customer service opening of the plant in Resende (RJ) processes and communications chan- in 2014 and aggressive marketing and nels brought us closer to our customers, advertising campaigns in recent years. building word-of-mouth about Nissan The strategy led Nissan to achieve its 2015/2016 product quality. The company sold operating targets and its vehicle and more parts and provided more services. parts sales targets in 2016. Despite economic headwinds, Nissan In fiscal year 2016 Nissan grew its sales volume by has grown in the 12% over the previous past two years year. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Strengthening the first time in the Games' history the Olympic torch toured a manu- our brand and facturing plant, in the presence of all expanding market employees. The Nissan Kicks, launched worldwide during the relay of the Rio G4-9 share 2016 Olympic torch, became the bestselling SUV in its price bracket in the The positive results over the two-year first few months of sales. period are also due to Nissan’s strategic brand positioning in Brazil, During the Rio 2016 Games, Nissan through initiatives such as officially was also the sponsor most mentioned sponsoring the Rio 2016 Olympic and in the press, with over 4,500 articles Paralympic games. published in Brazil - one in every three Brazilians was aware of Nissan’s Between the announcement of the participation in the event. In addi- sponsorship in 2012 and the Games tion, nearly 5 million people visited the time, Nissan’s initiatives centered on Olympic Boulevard and Olympic Park, the theme of mobility, raising aware- where Nissan had special and exclu- ness of and disseminating positive sive areas to engage with the public, impressions about the brand. such as the Nissan Bungee Jump and Nissan House in the Olympic Park in Nissan was the sponsor that received the Barra district. the most mentions in the press during the relay of the Olympic and Para- Our initiatives at the Rio 2016 Paralym- lympic torches. More than 55 million pic Games had a major impact on tele- people were reached through social vision. The Nissan brand could be seen media. This initiative also became a ref- in 13.8% of all broadcasts, generating a erence for future initiatives, because for media value of USD 66 million.

525 2 billion 184 million thousand 20 thousand global impressions in social me- Brazilians were reached through people aware of the celebrations kilometers traveled by the Nissan dia – the third best performance in the Olympic torch relay held in 325 Brazilian cities during Kicks during the Olympic global hash tags – during the Rio the Olympic torch relay Torch Relay 2016 Olympic Games foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Operating performance G4-9

Nissan did not reduce the pace of its plant in 2016, but the whole process This strategy has also benefited pro- strating the group of investors’ interest investments in Brazil. In early 2014 it was set in motion much earlier. duction for the domestic market, as it in acquiring and promoting the Nissan announced R$ 2.6 billion would be keeps the assembly line running during brand. invested in the manufacturing plant The operation was planned over the a time of economic contraction and in Resende (RJ). In 2017, the company course of the year, including trips to our falling sales in the automotive sector, Another achievement for the com- announced an additional investment headquarters in Japan and consumer which helps absorb the plants’ fixed pany in the period was the growth of R$ 750 million to commence pro- markets, in addition to adapting prod- costs. in direct sales - whereby vehicles are duction of the Nissan Kicks in Brazil. ucts to local legislation and cultural purchased directly from the automaker Because of this, the company is prepar- requirements in each country. The Our risk management endeavors posi- without the involvement of third par- ing to initiate a second shift at the Sul vehicles were first exported to Bolivia, tively impacted the company’s results ties - thanks to the implementation Fluminense plant midway through 2017, Peru, Chile, Uruguay, Argentina and in the two-year period, by permit- of an aggressive strategy in 2015 to creating some 600 new jobs. Paraguay and subsequently to Panama ting management to map out critical penetrate this sector. By focusing on and Costa Rica. Starting in March 2016, market signs and plan strategies to segments like taxi drivers, the disabled, The first March and Versa models 10 thousand vehicles were exported in face the recession. The market share outsourced fleets and car rental firms made in Brazil for export began rolling the project’s first year, a figure expected gain was crucial to turning around fall- (including major groups like Localiza off the production line at the Resende to rise in 2017. ing sales and keeping dealerships and and Unidas, which helped raise the representatives in the game. In the last brand’s visibility), Nissan has seen its to- two years, during which all competi- tal sales to these sectors rise from 10% tor brands have closed points of sale to 30% in the last ten years. in Brazil, Nissan has managed to exceed the number of resales achieved in 2014, currently having 166 such establishments. Despite ownership of the establishments changing hands, the number of them did not drop, demon-

The Resende manufacturing plant is continuing to expand: the plant is receiving investment of R$ 750 million from 2017 onwards. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Innoa v tion programs G4-2

Innovation plays a crucial role in Nis- visual and audible warnings for moving san’s strategy, as can be seen in the objects. What used to seem like sci- brand’s global endeavor “Innovation ence fiction is now a reality: launched in that Excites”. The group is producing Japan in 2016, the Nissan Serena is the cars today with an eye on tomorrow, brand’s first model to be equipped with using advanced technologies and sur- ProPILOT autonomous drive technology prising its customers. designed for highway use in single-lane traffic.T he Serena won the 2016-2017 The global intelligent mobility concept Japan Car of the Year Innovation Award. embraces three important areas of The award was presented by the Au- innovation inspiring how cars move, tomotive Researchers' and Journalists' drive and integrate with society. This Conference of Japan (RJC). In 2017, the ranges from self-driving cars which new model of the SUV Nissan X-Trail park themselves to cars that charge was also equipped with ProPILOT. their electric battery whilst on the move. You can now drive a Nissan with All this innovation is compliant with state-of-the-art technology, such as sustainability requirements. This vision blind spot warnings, 360° cameras and has led to the Nissan LEAF becoming the bestselling electric vehicle in the world, with instant torque - torque de- notes the engine’s capacity to produce power - i.e. there is no lag, the full power is there the second you touch the pedal - and 0% gas emissions, making it a more sustainable vehicle.

The company is also investing in partnerships to make electric cars take off in Compared with a petrol-driven medi- Since 2015 concession operators have Brazil. Nissan launched the electric taxi um-size car traveling the same dis- been able to use the GVN (Nissan ve- program in São Paulo (SP) in 2011 - with tance, each electric taxi avoided the hicle management) system, which can

a fleet of 10 Nissan LEAFs - and in Rio emission of 13.6 metric tons of CO2. be used to see the features of models de Janeiro (RJ) in 2013 with a fleet of 15 in production for up to two months in Nissan Nissan LEAFs -, projects ending in March The program was conducted in part- the future. Representatives can use 2016. In order to assess the feasibility of nership with the Rio de Janeiro and São this system to advance their sales and LEAF electric vehicles (EVs) in Brazil, during the Paulo municipal governments, state offer the exact vehicles customers are period the 25 fully electric Nissan LEAFs transportation departments, Petrobras looking for, without only having to offer is the bestselling electric traveled more than 2.2 million kilometers Distribuidora, AES Eletropaulo, Light vehicles in stock. vehicle in the world without emitting pollutants. and Adetax (São Paulo Municipal As- sociation of Fleet Taxi Companies) and showed it is possible to foster sustainable mobility in Brazil.

The innovation is not just present in vehicles and accessories but all platforms aiming to make the Nissan customer experience as positive as possible. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Our global message that “the power building team capabilities. Nissan Way comes from inside” expresses the mentalities encourage employees to importance of each of our team mem- achieve goals, and the company values bers in Brazil and globally. They make merit and performance in a culture the difference in fulfilling our goal of based on a sustainable business model manufacturing and marketing innova- that welcomes diversity. tive products recognized for quality. Our board and senior management take In fiscal year 2016, Nissan Brazil em- employee safety and quality of life seri- ployed approximately 1,816 people, all ously, and this is directly reflected in our registered employees. internal processes and rewards and benefits policies.

Nissan Brazil engages and integrates employees around continuously developing skills and competencies and

people G4-2, G4-9

workforce G4-10

“The power comes Site Number of employees from inside”: Head Office – Rio de Janeiro (RJ) 148 Resende Plant (RJ) 1,322

Resende Part Storage and Distribution Center 16 encouraging (RJ)

Sao Paulo Offices (SP) 127 continuous Sao José dos Pinhais Offices (PR) 200 improvement in Jundiai Training Center (SP) 3 Total 1,816* skills and *All Nissan employees are covered by collective bargaining agreements. G4-11 competencies foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

T alent retention and development are key goals are entitled to health and dental insur- eteria is also available to employees at ance and private pension plans. the Renault Plant. Employees in Rio de within our people Janeiro (RJ) and São Paulo (SP) receive It is a policy at Nissan not to hire part- meal vouchers. management strategy. time employees or directly higher temporary employees. Temporary Employees at the Resende Plant (RJ) employees working at Nissan are hired commute to and from work on char- through outsourcing firms. G4-LA2 tered buses traveling fixed routes passing no more than one kilometer People Resources department then validates At the Resende Plant (RJ), an on-site from employees’ homes. In the spring managers’ feedback with other mem- cafeteria seating 620 people offers a and summer, all buses are air-condi- management bers of the relevant function, ensuring varied menu of well-rounded meals tioned. Employees also have access that performance assessments are prepared by nutritionists, with nutrition to a recreation and lounge facility Nissan recruits, develops and retains well-rounded. Employees then receive facts on display for each menu item. equipped with videogame consoles, talent through continuous capacity feedback from their managers and Meal expenses are defrayed by the ping-pong tables, pool tables, foosball building programs and a rewards and work to create individual development company, with employees paying only tables, lounge chairs and television benefits policy aligned with our strate- plans. The process helps to identify and a symbolic, payroll-deducted fee. At our sets. Other companies in the region gic goals. In 2016, the human resources reward top talent and assists under- offices in São José dos Pinhais, a caf- have since followed suit. departments at Nissan and Renault performing employees in achieving were grouped into a single function better results. responsible for operations across the Alliance in Brazil. This has streamlined In addition to productivity-based pay our processes and helped to dissemi- and excellent career prospects, em- nate best practices peer to peer, while ployees in Brazil enjoy a range of ben- respecting each company’s local cul- efits with a focus on health and quality ture and characteristics. of life, a differentiator that improves talent retention. Along with benefits Nissan has changed its approach to packages that are mandatory under assessing hourly paid manufacturing Brazilian labor regulations, employees workers. Assessment processes previously performed by date of hire have now been unified and are performed concurrently in September.

The assessment of monthly paid workers uses tools such as Performance Management and Development (PMD) to help set career goals in discussions between managers and reports and in measuring results. Managers perform an initial assessment and the Human 2016 The human resources departments at Nissan and Renault were grouped into a single function responsible for operations across the Alliance in Brazil. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS Business partners act as mediators between employees, human resources and people management.

Diversity

As a global company, diversity perme- Nissan has also engaged around inclu- ates all levels of management, and sion through our sponsorship of the Rio employees are encouraged to seek 2016 Olympic and Paralympic Games to understand, accept and relate with and our Team Nissan mentoring pro- different cultures. While no established gram, which supported 29 Olympic criteria are in place for hiring from dif- and Paralympic athletes. In 2016, many ferent social, age, ethnic and gender Paralympic athletes on the Team visited groups, our executive leadership is the Resende Plant and shared their committed to maintaining diversity at experiences with employees, enhanc- all business units, and this is reflected, ing engagement around issues such as during selection periods, in our internal diversity and inclusion. Human Resources processes. Our support for diversity is widely disseminated to all employees and we have a policy In 2016, a Marketing & Sales initiative relations. BPs operate at all levels and of respect for cultural, sexual and gen- offered 400 vehicles to plant employ- in all functions of the organization and der diversity. ees at a price of R$ 399.00 per month. handle all aspects of hiring, assess- All employees who registered for the ment, training and ethical concerns. In We seek to balance the proportion program are now proud owners of new 2016, Nissan worked with two busi- of men to women company-wide, Nissan vehicles. G4-EC8 ness partners at the Resende Plant including in manufacturing. Human (one for manufacturing and the other Resources makes a continuing effort to Business partners who act as me- for administrative, quality and logistics overcome social barriers such as the diators between employees, Human functions), one at each office in Rio difficulty in finding women candidates Resources and management are and São Paulo and one in São José available for the second shift, which be- 29 another differentiator in our employee dos Pinhais. gins late afternoon and ends at night. Olympic and Paralympic People with special needs are also athletes were supported by the valued at Nissan Brazil. Partner NGOs Team Nissan mentoring program assist us in training and increasing the from 2012 to 2016 number of people with disabilities at our business units. Our Programa In- cluir platform supports hiring of people with special needs in advocacy – we employed 35 people with special needs as of year-end 2016, and hope to employ 70 in 2017. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Positive safety performance is achieved company. In 2016, a safety dojo was In 2016, Nissan’s global compliance pro- health & safety through compliance with both internal completed near the Resende Plant as- gram was extensively reformulated and and external standards and regulations sembly line where accident prevention initiatives were implemented with a and through wide-ranging prevention rules are demonstrated in a practical focus on employee relations, organiza- initiatives with a focus on the following way, and employees are reminded of tional culture, and compliance with our Health is both a priority at Nissan and pillars: Training, User-Friendly Operation, key safety pointers. Code of Ethics, anti-bribery and corrup- one of our greatest sources of pride: Benchmarking, Policies and Procedures tion and other applicable regulations. the Resende Plant ended the previous and Risk Analysis. Training on Brazilian regulations was two-year period as one of the saf- structured and organized alongside the Our goal for 2017 is to provide training est plants in the world. At the close of Safety training is mandatory for all em- start of plant operations in 2014. and retraining on all statutory subjects; 2016, we had recorded 640 days with ployees and for senior leadership. Nis- expand our training initiatives by 5 no lost time injuries and more than 63 san runs both statutory training (such During the following year, due to high percent to 10 percent; and strengthen days with no incidents (incidents are as training on Brazilian labor standards turnover levels and the crisis, our team our top-level leadership development any doctor’s cases, however minor the NR 05, 06, 10, 11 and 12) and special train- training, capacity building and qualifi- program. injury or illness). Continuous developing programs. Reminders of safety rules cation programs continued alongside ment of safety-oriented processes is are provided through a wide range of inclusion, diversity, employee relations embedded in our culture and ensures visual aids, such as dashboards and and career development initiatives. our managers put safety first. posters placed in all areas around the

Key accident prevention activities

• Daily inspections and patrols to • Documenting and investigating in- eliminate or mitigate workplace cidents, injuries and near misses; risks; • Recording statistical data: DART, • Definition and development of per- First Aid Cases, Incidents and Near sonal protective equipment (PPE); Misses;

• Compliance with Brazilian health • Organizing and maintaining the and safety regulations (NRs), includ- Internal Accident Prevention Com- ing NR-12 – Machine safety; mittee (CIPA);

• Hosting Ministry of • Coordinating Safety Programs: Labor inspections; PPRA, Health Hazards Report, Safety Hazards Report, LTCAT, Lighting Re- • Awareness raising, education and port and Heat Assessment. training on prevention of occupational injuries and diseases (induction training, toolbox talks and safety programs);

• Awareness raising on occupational injuries and illnesses; foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

theory Health is also among our people management priorities at Nissan Brazil. The Resende Plant (RJ) has a rehabilitation • THE NISSAN WAY • 5S center where employees who return • Lecture on preparing to enter the • Genba Kanri from medical leave, or who are recover- job market ing from an injury, can strengthen their hours • Kaizen muscles under the care of a physio- 40 • Health, environment and quality therapist. of training required in Nissan’s • NTWI (Nissan Training within Professional Training Program • Nissan Production Way Industry) Preventive initiatives are also implemented with a focus on providing employees with appropriate, ergonomic workstations. Public health awareness campaigns are conducted throughout hands-on the year at Nissan Brazil, on topics such as smoking, drugs and using condoms. Our “360° Mother” program at Nissan Professional training program • PPE sash tape application Brazil helps expecting mothers enjoy a G4-EC8 • Technical English • Electrode replacement healthy pregnancy. Nissan runs a professional training program called “Formasan” as part of our • Visual inspection at conveyor; • Weld testing These initiatives were recognized by recruiting process, using a hands-on clamping; spraying/painting important accolades during the retraining approach to foster continuing • Bolt welding porting period, rewarding the team’s development. The program includes 40 • Visual inspection of equipment; efforts and commitment to safety and hours of theory and 80 hours of hands- panel grinding; sealant application • Nut welding public health. In 2015, Nissan Brazil won on, process-specific training. its second Proteção Brasil award and • Bench inspection; spot first Dupont Health and Safety Award. Training is delivered at the industry-led welding; grinding and polishing In 2016, Nissan again won the two training service SENAI, and participants accolades as well as the Sesi-Senai receive an allowance for meals and • Dent repair; electrode grinding; Safety Innovation Contest. transportation.

hands-on PLASTIC, ASSEMBLY AND LOGISTICS

• PPE • Grinding and polishing; tube assembly • Technical English • Nut assembly; torquing • Bumper masking; bolt torquing; materials handling • Parcel shelf assembly Our health and safety • Bumper inspection; nut torquing; • Aerial assembly forklifts and trolleys

practices were recognized in • Deburring and inspection; bolt 2015 and 2016 by important torquing; kit assembly accolades. • Paintwork; electrical connections foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Tto al hours of employee training on human rights policies or proce- Total number and rates of new employee hires and dures concerning aspects of human rights that are relevant to opera- employee turnover, by age group, gender and region. G4-LA1 tions, including the percentage of employees trained

T raining on human rights policies Terminations by or procedures concerning aspects age group 2015 2016 of human rights that are 2015 2016 relevant to operations Under 25 137 98

T otal hours of training 13,946:50 16,081:30 26 to 35 264 154 35 to 45 118 79 Percentage of employees 47% 69% trained Over 45 47 26

Note: The training initiatives described are related to operations at the Resende Plant (RJ). Training initiatives at the SP, RJ TOTAL 566 357 and SJP business units were delivered within a compliance program.

Number of employees by age group 2015 2016

Programs for skills management and lifelong learning that support the continued employability Under 25 324 264 of employees and assist them in managing career endings G4-LA10 26 to 35 837 880 Programs No Yes Description Target audience 35 to 45 410 457 offered Over 45 138 159 Manager training to improve management Supervisors and TOTAL 1,709 1,760 Internal training courses - x quality on the factory Coordinators floor T urnover by age group (%) 2015 2016 Funding support for external x - - - training or education Under 25 44.0% 42.8%

Provision of sabbatical periods 26 to 35 28.0% 17.7% with guaranteed return to em- x - - - ployment 35 to 45 24.8% 15.9% Over 45 25.7% 12.6% Pre-retirement planning for in- x - - - tended retirees New employee hires Retraining for those intending to 2015 2016 x - - - by age group continue working Under 25 148 128 Severance pay - x - - 26 to 35 204 157 Job placement services - x - - 35 to 45 85 66

Assistance (such as training, Over 45 24 14 counseling) on transitioning to a x - - - non-working life TOTAL 461 365 foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

men women

T urnover by gender (%) 2015 2016 1. terminations by region 2. New employee hires by region 29.2% 19.7% 3. Total workforce by region 33.6% 23.7% 4. rate of new employee hires by region (%)

TOTAL 566 357 s ãO PAULO SÃO JOSÉ DOS PINHAIS RIO DE JANEIRO/RESENDE New employee hires by gender 2015 2016

367 259

94 106 1 2 TOTAL 461 365 2015 2016 2015 2016 Rate of new employee hires 2015 2016 by gender (%) São Paulo (SP) 8 19 São Paulo (SP) 66 9

São José dos Pinhais (PR) 33 30 São José dos Pinhais (PR) 39 45 79.6% 71.0% Rio de Janeiro (RJ) 84 41 Rio de Janeiro (RJ) 61 48

20.4% 29.0% Resende (RJ) 441 267 Resende (RJ) 295 263

TOTAL 566 357 TOTAL 461 365 Terminations by gender 2015 2016

447 291

119 66 3 4

TOTAL 566 357 2015 2016 2015 2016

Number of employees São Paulo (SP) 129 124 São Paulo (SP) 14.3% 2.5% by gender 2015 2016 São José dos Pinhais (PR) 172 195 São José dos Pinhais (PR) 8.5% 12.3%

1,392 1,397 Rio de Janeiro (RJ) 146 152 Rio de Janeiro (RJ) 13.2% 13.2% Resende (RJ) 1,262 1,289 Resende (RJ) 64.0% 72.1%

317 363 TOTAL 1,709 1,760

TOTAL 1709 1760

*Data not available for 2014 (ND) foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

External Stakeholders G4-2 See how Nissan engages with its customers, suppliers, COMPLETE partners and society at large.

DEDICATION Customers It is only natural that a company whose suppliers and dealerships, especially for vision is to enrich people’s lives views imported items, to ensure customers the customer as its top priority. Nissan did not face delays for spare parts or TO ENRICHING accordingly strives to produce afford- having their vehicles serviced. able vehicles with high technological quality, providing a lengthy warranty. The inauguration of the Parts Distri- The company continually invests in bution Center in Resende (RJ) helped PEOPLE’S LIVES customer relations, tailoring services to expedite the inventory replacement pro- the customer’s profile. cesses and made delivery logistics more dynamic. With a fill rating of 97%(im- The unwavering focus on quality mediate availability of parts) in 2016, the means the company can offer customers a three-year after-sales warranty, with unlimited mileage, in addition to programs like Nissan Way Assistance, a free 24/7 roadside assistance service during the first two years of ownership. This tailored customer service is possible thanks to Nissan 360, a method for integrating digital databases. Be- ing able to view a customer’s entire background, since buying the vehicle through after sales, enables quick prob- lem solving and efficient servicing. 3 Nissan’s communications channels are years of warranty for all vehicles always open to its customers, such as after purchase: commitment to the customer satisfaction Top Box and consumers the customer service center (SAC), We also reach out directly through social networks and our sales and after sales teams. In the midst of an economic recession and lengthy period of exchange rate volatility, the company intermediat- ed in the negotiation of parts between foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

publishes an SSI and CSI quality perfor- F or After Sales, the CSI benchmark rose vices at the network of Nissan dealer- mance bulletin, distributed to all deal- by 1.4 p.p. from CY15 to CY16. This growth ships; (2) SERNissan Academy - a new erships across Brazil. In 2015 Nissan also significantly impacted the ranking strategy, tools and training content achieved an SSI score of 80.6 (ranking of the Brazilian market satisfaction sur- provided to the dealership network it second in the sector) and a CSI score vey, where Nissan rose from third posi- (3) Customer Experience Meeting of 65.4 (ranking it third in the sector). In tion to second in the national ranking. - meetings to enhance quality per- 2016, the SSI score was 84.0 (ranking it formance in customer services with second in the sector) and the CSI 72.1 These excellent results were due to the sales and after-sales field teams 84.0 (rising to second in the sector). the formation of a consistent qual- (4) Quality Performance Program - a score achieved in 2016 in the CSI ity strategy founded upon four pillars: rewards program for the dealership benchmark measuring customer In 2016 the company also created a (1) SERNissan - a program aiming to network based on SSI and CSI bench- satisfaction program to serve customers with vehi- enhance the quality of customer ser- mark performance. cles no longer covered by the warranty period or discontinued models, offer- Center enabled the company to main- ing cheaper services at dealerships. tain smaller inventories, whilst meeting This initiative brought many former consumer requirements faster. The new customers back into the fold, creating logistics enhanced internal operations business opportunities and growing and improved customer satisfaction. market share.

To maintain high quality standards and All of these factors helped the company monitor customer satisfaction, the achieve its commercial goals in the group compiles monthly company- last two years and improve customer specific metrics. Segregated into sales satisfaction with products and services. and after sales, the satisfaction bench- In 2016 Nissan was ranked third in an marks follow the Nissan customer sat- independent survey on sales and after- isfaction Top 2 Box, with high standards sales satisfaction for factors including targeting scores of 9 and 10. The main process quality, experience with sales benchmarks used to gage customer staff and product launches. opinions are the Sales Satisfaction Index (SSI) and Customer Satisfac- For Sales, the SSI benchmark rose by tion Index (CSI): the former evaluates 0.8 p.p. from CY15 to CY16. This growth customer satisfaction from the time significantly impacted the ranking of customers arrive at the dealership to the Brazilian market satisfaction survey, receipt of their vehicles, while the CSI in which Nissan rose by 3.4 p.p., leaving measures the quality of after-sales the "2nd tier" for the "1st tier" along with services. Every month the company other Japanese automakers.

Company-specific metrics compiled monthly evaluate customer satisfaction. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

The aim of NP88 to achieve the "Top The Nissan culture 2" position in sales and after sales was achieved. The global targets assigned permeates our relationship to Nissan Brazil were achieved for both sales and after sales, with Nissan rank- with the value chain. ing in the top 3 brands for the best customer services. suppliers G4-12 Nissan’s global guidelines aim to position it amongst the top three brands in The same concern for quality instilled suppliers that can meet quality stan- terms of sales and after-sales satisfac- in Nissan’s employees and leadership is dards. In just over two years of operation in Brazil by 2022. G4-PR5 shared with its suppliers, resellers, part- tions the company has established ners and service providers. The com- itself as one of the main players in the pany’s culture permeates the entire automotive cluster in southern Rio business chain, and sustainability and de Janeiro, in terms of the economic diversity are championed as an essen- and social development of surround- tial part of its activities. ing communities. This preference for local products and services also helps Since opening its plant in Resende, Nis- reduce the emissions of polluting gases san has stuck by its commitment of during transportation, based on logis- giving priority in procurements to local tics synergies made possible by the alliance with Renault.

Results of surveys measuring customer satisfaction G4-PR5 Satisfaction and After Sales, 2015 vs. 2016 Suppliers and partners are subject to the same standards of conduct and transparency as Nissan. Contracts ssi cy15 signed from 2016 onwards now con- Customer satisfaction with the The Sales index rose from 88.3% in 88.3% tain requirements based on the new experience of buying a Nissan vehicle SSI CY15 to 89.1% in SSI CY16. code of ethics and compliance policy (Sales Satisfaction Index - SSI) implemented by the company. The companies have also undertaken to ssi cy16 abstain from activities involving abusive 89.1% labor practices, such as slave-like labor and/or child labor. They all undergo constant evaluation and according to csi cy15 the type of service and product being % supplied, representatives from the pur- The After-sales index rose 80.4 Customer satisfaction with the chasing department or sector making from 80.4% in CSI CY15 to 81.8% in experience of services provided the order visit the supplier’s facilities by the Nissan network (Customer CSI CY16. to check they are complying with the Satisfaction Index - CSI) existing legislation. csi cy16 81.8% One of Nissan’s core requirements when procuring companies and service providers concerns their conduct. Such entities must sign a statement of re- Note 1: SSI CY15: 88.3% (10,628 scores of 9 and 10 out of 12,032 interviews between January and December 2015). SSI CY15: Sales Satisfaction Index in 2015 Note 2: SSI CY16: 89.1% (10,576 scores of 9 and 10 out of 11,868 interviews between January and December 2016). CSI CY15: Customer Satisfaction Index in 2015 Note 3: CSI CY15: 80.4% (23,459 scores of 9 and 10 out of 29,195 interviews between January and December 2015). SSI CY16: Sales Satisfaction Index in 2016 Note 4: CSI CY16: 81.8% (24,443 scores of 9 and 10 out of 29,884 interviews between January and December 2016). CSI CY16: Customer Satisfaction Index in 2016 foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS Several programs handle supplier After-sales coaching and workshop development. Held in October 2016 and February 2017 in six cities, the After-sales Workshops were created for all of Nissan’s suppli- sponsibility undertaking not to engage Committed to enhancing processes Several of these activities are shared ers in Brazil. During the events, special in activities involving abusive labor and to continually improve quality by the quality department with other financing and price conditions were practices, such as slave-like labor and/ and performance, Nissan created the company sectors: in charge of logistics, negotiated between the parts manufac- or child labor. Thanks (Trusty and Harmonious Nissan Parts Control attends a monthly meet- turers and the dealerships’ representa- Kaizen Activity with Suppliers) approach, ing with suppliers, also addressing mat- tives, which strengthened the relation- Depending on the type of service or which assists in supplier develop- ters related to the Alliance. Other more ship between the company, its supply product provided, representatives from ment by applying the Kaiser method. in-depth approaches are directed at chain and the dealership network. the Purchasing Department or from This approach enables losses to be suppliers with high risk potential, – SQD the sector that made the order visit the cut by identifying rates of rejection (Supply Quality Development) – so that The strategy not only improved the supplier’s facilities to evaluate whether due to defects and lengthy lead times. partners can better understand their network’s profitability, but also made they are abiding by the applicable laws The company also has a Supplier Risk level of performance and have a clear it possible for the automaker to make and regulations. Management Team, that manages sup- vision as to how they can implement long-term plans for inventories and pliers’ risks and takes responsibility for any points for improvement. deliveries of vehicle parts, accessories, The company also has a Supplier Risk monitoring partners’ activities and de- tires, batteries and lubricants, amongst Management Team, that manages sup- tecting potential threats to the group’s other items. pliers’ risks and takes responsibility for performance. managing and monitoring suppliers’ activities during the development of new With the incessant pursuit of quality products for the Resende plant (RJ). firmly instilled in Nissan’s employees, the approach in 2017/2018 will center around suppliers through meetings, training and workshops with partners.

6 in 2016 and 2017 cities received After-Sales Workshops for suppliers foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS dealer network

The network of Nissan dealerships has Training 168 points of sale across Brazil. The ac- To assure service excellence and opera- creditation process for new dealers is tional satisfaction, we invest in coach- 175 extremely rigorous. ing of the sales and operating teams, in-person training groups engaging professionals from the sales Planning for dealership launches sector with complete demonstrations respects Nissan's global sustainabil- of products - services - after sales - and ity practices. Such practices include operational workshop technicians. A conscious consumption and reuse of range of online courses is also available consumables and proper disposal of to train our professionals. waste generated by products. Our Training Center in Jundiaí (SP) pe- The stores are tailored to customer re- riodically offers in-person courses to quirements, with qualified teams offer- the entire dealership network, including ing a unique experience for purchasing advanced technical training at its fully vehicles and services - sales of parts equipped Training Center, administered 27,855 and servicing. by expert instructors. people trained in online modules

89.2%

total customer satisfaction with sales

83% total customer satisfaction with after sales foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

The Nissan Gold Team

Initiated in 2016, the Gold Team is a field relationship program involving dealerships and the marketing department. Dealers with the best performance are awarded quarterly prizes and trips and the best performing professionals attended events during the Rio 2016 Games. An unqualified success in terms of engagement and encouraging the 87 meeting of targets, the Gold Team is being continued in 2017. thousand people benefited in Brazil by the work of Nissan Institute between 2014 and 2016

Communities and government G4-DMA Indirect economic impacts Organizational structure of Nissan Institute In addition to its commercial perfor- Created in 2013 with the mission of mance, Nissan do Brasil is concerned transforming human lives, through Nissan do Brasil CEO about its relationship with local com- education, Nissan Institute carries out munities. It accordingly carries out social programs and volunteer initia- programs and initiatives with the aim of tives - involving employees, third par- Board of Government Affairs creating social value. ties and relatives - in the cities of Rio de Janeiro (RJ), Resende (RJ), São Paulo (SP) Management This work is carried out by Nissan In- and São José dos Pinhais (PR). Social Responsibility Department stitute, a non-profit organization that is the first project of its kind within our global matrix.

Since 2013, Nissan NISSAN INSTITUTE Institute has been working STRATEGIC on social programs and DECISIONS BOARD*

voluntary initiatives. *Nissan employees from a range of departments, hierarchical levels and loca- tions. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

In the last three years, 90 initiatives PEOPLE IMPACTED southern district of São Paulo, Casa do and events have taken place, engaging Zezinho nurtures the development of some 87 thousand people and generat- 42,915 the identity, talents, self-esteem and ing investments in the areas surround- 2016 critical thinking skills of more than 1,000 9,889 ing Nissan’s plants of R$ 11.5 million. children and youngsters from the local 27,116 community on a daily basis, affection- pairs of glasses donated In 2016 alone, the programs implement- 2015 ately referred to as “Zezinhos”. In this ed engaged more than 200 volunteers sizable population, Nissan Institute con- and involved a social investment of R$ 16,949 tributes to the living standards of the 3,735 million. 2014 students and their relatives by sponsoring the “Se Cuida, Zezinho” Health Care 29 PARTNERSHIPS WITH NGOs TOT AL: 86,980 Center. Built in 2013, the center offers As an agent of transformation, Nissan preventive and integrative medicine participating schools and NGOs Institute sponsors the work of NGOs based on natural treatment methods fostering education and social inclu- eration of income for women through such as acupuncture, naturology, yoga sion. More than 18 thousand lives are the “Commercial Cooking” and “Sewing and others. changed for the better every day by the House” courses. associations Borda Viva, Casa do Zez- Miratus Badminton Association: lo- inho and Miratus de Badminton. The program is one of the initiatives cated in the Chacrinha community, in 18,619 implemented by the Renault-Nissan Jacarepaguá (RJ), Miratus promotes Associação Borda Viva: in São José dos Alliance, created by Renault Institute in the social inclusion of impoverished people served Pinhais (PR), the Association promotes partnership with Nissan Institute. children and youth through sports. social development on two main fronts: Since its foundation in 1998, athletes food security for local children, who are Associação Casa do Zezinho: since have won gold medals in international given free, healthy meals, and the gen- its foundation in 1994, in the extreme badminton championships and out- performed in terms of overcoming difficulties. A prime example of this is As a supplement to sport and with the the athlete Ygor Coelho, who was dis- support of Nissan Institute, the institu- covered by Miratus and in 2016 became tion implemented an educational proj- the first Brazilian in history to secure ect offering activities in the areas of art, a place in the badminton finals at the IT, gastronomy and English etc., intro- Olympic Games. ducing new forms of social interaction and training. The partnership with Nis- san Institute has also made it possible to provide a preuniversity course open to everyone in the community.

LEGACY PROGRAMS In addition to sponsoring social institutions, in 2015 and 2016 Nissan Institute delivered other important programs.

Como Você Vê o Mundo?: a partnership between Nissan Institute and Instituto Ver e Viver, the social division of the contact lens company Essilor, created to provide visual health care to social institutions and schools in socially vulnerable areas in cities where Nissan operates. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Since August 2015, communities without access to exams due to a lack of funds or ophthalmologists and opti- 194 cians in the vicinity have been selected children benefited for examination by an ophthalmologist in mobile clinics set up on site. Stu- dents needing visual correction choose the roof with a capacity of 30 kWh. By their own frames and receive their free using solar energy the school is avoid- glasses within a month. In 2016, the pro- ing emissions of 12 kg of CO2 per hour, gram was extended to employees of with further emissions saved by using the Resende plant and closed the year environmentally friendly gases in air having benefited 18,619 people, exceed- conditioning appliances. ing the target of 17 thousand. Under the partnership that made the “Parque das Águas” Education Cen- school’s construction possible and ter for ChildrenG4-EC8: in just seven under the signed arrangement, Nissan months, the city of Resende (RJ) was Institute will monitor the educational bestowed a school built by Nissan development and maintenance of the Institute. Delivered to the municipal building and its equipment for 10 years. government in 2015, the “Parque das Águas” Education Center for Children is Caju, Um Novo Olhar: in 2016 Nissan a public nursery school with the capac- opened a professional training and ity for up to 194 children aged between education center on the premises of the three months and six years Fundação Gol de Letra foundation (RJ). Referred to as “Caju: Um Novo Olhar”, the The architectural plans prioritized sus- program was created to provide training tainability and the concept of a green courses to further the inclusion of youth building. The large windows improve from the Caju district in the employment The technical courses were formatted natural lighting and ventilation and market, junior and high school and the in partnership with Fundação Gol de solar panels have been installed on Enem nationwide exams. Letra and Serviço Nacional da Apre- ndizagem Industrial (Senai), and are certified by the Rio de Janeiro State Federation of Industry (Firjan).

The works were overseen by Nissan engineers, also Institute volunteers, who upgraded the new facilities with accessibility and sustainability solutions in place at the Resende plant (RJ) – Nissan’s greenest plant in the world – and the “Parque das Águas” Education Center for Children, which includes the use of natural lighting and ventilation, Nissan Institute engages classrooms adapted for the disabled and solar panels in partnership with the communities directly through utilities EDF and EGPE, with the capacity to supply the building’s entire energy years its legacy programs. requirement. 10 period for which Nissan Institute SPECIAL PROGRAMS has undertaken to monitor the 2015 and 2016 were marked by partner- “Parque das Águas” Education ships with huge impacts. Center for Children (RJ) foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Todos Juntos: Cuidando e Educando VALUABLE VOLUNTEERS PROGRAM com Alegria: the program is a partner- This program is open to all Nissan Brazil ship between Nissan Institute, the Re- staff in addition to third parties and rela- sende municipal department of educa- tives. In aid of education, they work both tion and CECIP (Centro de Criação de internally - as employees - and externally. Imagem Popular), and was created to RIO 2016 OLYMPIC provide coaching and training to infant At Nissan they work as ambassadors school teachers in the municipality of helping share the values adopted and AND PARALYMPIC In the same period, the guests at the Resende based on integrated actions. promoting integration and awareness GAMES Nissan Kicks Hotel, located on Copaca- raising actions. It is through them that bana beach, included representatives Since July 2015 a series of meetings other colleagues are engaged about The partnership between Nissan and the from 55 social institutions across Brazil, and workshops have taken place with matters of everyday importance. Rio 2016 Organizing Committee made selected by a process previously orga- monitors, teachers and managers of 17 it possible for more than 2,500 children nized by Nissan Institute. The initiative nurseries and infant schools, in addition Outside the company they carry out and youth from NGOs to visit Olympic was a celebration of the work carried to student teachers. activities to benefit the local community, competitions, where they learned about out by social organizations and an such as clean-up activities, cultural, en- self-improvement, determination, cour- engagement initiative for the matters The endeavor resulted in a renewal of vironmental and educational activities, age and the love for sport, the classical of social inclusion and accessibility. The the surroundings and practices of nurs- bringing knowledge and information lessons of any sporting event. Tickets package included accommodation, eries through a process of working and to the local community and improving were donated so they could watch bas- meals, transportation and tickets for thinking together. living standards. ketball, slalom canoing, soccer, rugby and Paralympic events. other events. In addition to participating in all the Tickets for the Rio 2016 Paralympic Games experiences, the NGOs Casa do Zezinho, were given to more than 8,000 people Fundação Gol de Letra and Miratus also 13 from 17 NGOs in Rio de Janeiro, neighbor- had the opportunity to carry the Olym- ing cities and partnering programs. pic torch and showcase their programs. volunteer programs carried out in 2016

2,500 8,000 tickets for Olympic Games donat- tickets for Paralympic Games do- ed to children from 17 NGOs nated to children from 41 NGOs 55 NGOs accommodated at the Nissan Kicks Hotel fOrEWOrd PrOfILE EXtErNAL GrI CONtENt sUstAInABILItY RePoRt StAtEMENt frOM tHE CHAIrMAN 2015/2016 StAKEHOLdErS SUMMArY 2015/16 StAtEMENt frOM tHE PrESIdENt PEOPLE ENVIrONMENt ACKNOWLEdGEMENtS

the environment rests as one of the the company provides customers with pillars in Nissan’s sustainability strategy. innovative products and promotes eff ective use of energy and resources the increasing global population and by increasing sourcing diversity, such the rapid growth of the world economy as with renewable energy and recycled have complex and diverse connections materials. In this way, Nissan is aiming with the global environment. they can to achieve its environmental philoso- also negatively aff ect the environment in phy of “a Symbiosis of People, Vehicles numerous ways. It is essential to protect and Nature.” the world’s irreplaceable natural capital – biodiversity and the air, water and soil Nissan takes active steps to identify that sustain it – for future generations. the direct and indirect environmental eff ects of its activities, as well as those to balance economic growth with envi- of its business partners throughout ronmental preservation, Nissan and the the value chain. the company pursues wider automotive industry are tackling needed technologies and processes a range of sustainability issues. these to help minimize the impact of its include climate change and energy products on people and communities measures, preservation of air quality throughout their lifecycle, while also en- and other natural capital, effi cient use gaging in communication with society. of mineral resources, management of chemical substances, resource scarcity and health issues.

enVIRonMent G4-2, G4-dMA GENErAL COrPOrAtE VISION nIssAn: enRICHInG PeoPLe’s LIVes

impact BLUE CItIZENSHIP reduction SUStAINABLE and preServation StrAtEGIES are a StrateGic SAfEtY ENVIrONMENt PHILANtHrOPY priority at niSSan SUPPLY ECONOMIC CHAIN CONtrIBUtION

QUALItY EMPLOYEES COrPOrAtE GOVErNANCE

dEVELOPMENt Of A SUStAINABLE SOCIEtY foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Nissan’s Global Environmental Environmental management and impact Framework mitigation G4-DMA Emissions

As the industry leader in zero-emission Spanning an area of 220,000 square mobility, Nissan invests continually in meters, the Resende Plant has been Environmental Corporate ways to reduce environmental impacts developed with innovative and sus- from our operations and the emissions tainable solutions. The facilities have Philosophy Policy from our vehicles. Our Resende Plant been designed to make optimal use of (RJ) is one of the most modern, and natural light and ventilation, reducing Symbiosis of People, Vehicles Sincere Eco-Innovator aims to be the most sustainable, of Nis- electricity consumption. and Nature san’s industrial plants globally. Another innovative and sustainable The plant’s environmental manage- solution is the painting process at the ment department implements initia- plant, one of the best performing in tives and standards aimed at resource Brazil’s automotive industry in material, Note 1: Sincere – To address proactively environmental challenges and reduce impact on the environment. efficiency and reducing environmental water and energy savings. The paint- Note 2: Eco-innovator – To develop a sustainable mobility society, we will provide customers with innovative impacts from the production process, ing robots at the unit use water-based technology in our products. based on NGP2016. paint – which is less environmentally aggressive – and paint cartridges to Environmental targets at the new plant reduce waste when switching colors, include reducing waste streams and delivering average material usage ef-

water consumption, and reducing CO2 ficiency of 80 percent.T he painting T o achieve the goals of its environmen- in both automotive development and emissions particularly by minimizing booths and ovens are more compact tal philosophy, Nissan launched its six- manufacturing as well as sales, service consumption of electricity and natural compared with conventional models, in year environmental action plan, Nissan and all other departments. gas. a system that saves on both space and Green Program 2016 (NGP2016), in fiscal resources, especially water and gas. 2011. The program involves activities The process also applies a thinner coat of primer, reducing the amount of solvent required and therefore emissions of Volatile Organic Compounds (VOCs).

Water recycling systems are used in water-tightness testing to reduce water consumption.

The Resende Plant aims to be Nissan’s most sustainable facility globally. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

The plant is also surrounded by a green vehicles by 90 percent by 2050 and belt to help preserve local biodiversity, to transparent disclosure of environ- neutralize greenhouse gas emissions mental information. In just two years and enhance the landscape. of operations, the Resende Plant (RJ) has earned important certifications Initiatives such as these around the such as ISO 14.001:2004 Environmental world have led Nissan to be included Management System certification and among the 5 percent of global corpora- an Environmental Merit Award from the tions participating in the Carbon Dis- Resende Municipal Council for its Tur- closure Project (CDP) climate change feira Lagoon preservation initiatives. program in 2015. CDP provides a global system for companies and cities to All newly hired Nissan employees un- measure, disclose, manage and share dergo an induction training process vital information about the environ- that includes an environmental module, ment. Nissan was also selected for and environmental awareness is also inclusion in the Climate Disclosure raised through our communication Leadership Index (CDLI) A List based on channels. We also organized events our commitment to reducing “well- such as Blue Citizenship Week and to-wheel” CO2 emissions from new events to mark Environment Week in

2015 2016

Item Average Unit Item Average Unit

Water 3 M3/vehicle Water 2.2 M3/vehicle Eco-efficiency KWH/ KWH/ and resource Electricity 554.43 Electricity 576.96 Vehicle Vehicle usage

While we maintain high standards of Higher production rates in 2015 resulted Natural Gas 39.3 M3/vehicle Natural Gas 43.12 M3/vehicle eco-efficiency at all our facilities and in higher consumption of electricity, processes, Nissan Brazil works continu- natural gas and fuels by plant vehicles/ ously to further reduce waste streams, equipment, directly affecting green- resource usage, CO2 emissions and house gas emissions. G4-EN15 2015 in 2016, and Internal Auditor train- VOC emissions from our operations. ing on the Integrated Management In July 2016, Nissan Brazil migrated System (ISO 14001:2015; ISO 9001:2015; Initiatives directly focused on reducing to the free electricity market, which

OHSAS 18001:2007) in April 2016. costs and CO2 emissions at the Resende sources all electricity from renewable, Plant (RJ) are implemented by a cross- hydroelectric sources with a near-zero functional Reduction Cell team called emissions factor according to the rel- the Energy Drive Committee (CAEN). evant GHG Inventory published on the Brazilian GHG Protocol Platform. G4- Nissan was selected for inclusion in the EN16 Climate Disclosure Leadership Index 2050 (CDLI) A List based on our commitment Nissan’s time frame for reducing to reducing “well-to-wheel” CO2 emis- 90 percent of CO2 emissions from sions from new vehicles by 90 percent new vehicles by 2050 and to transparent disclosure of environmental information. G4-EN5 foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Tto al direct greenhouse gas emissions by weight G4-EN15

Gases included in calculation Global warming potential (GWP) Direct greenhouse gas emissions (scope 1) by source, in mtCO2e 2015 2016 Carbon dioxide (CO ) 2 1, mtCO2eq

Methane (CH4) Generation of electricity, heating, cooling and steam (resulting from 25, mt of CO2 eq combustion of fuels in stationary sources (such as boilers, furnaces, tur- 3,441.54 3,786.62 bines) and from other combustion processes such as flaring) Nitrous oxide (N2O) 298, mt of CO2 eq

Note: Emissions for this item were calculated using the Brazilian GHG Protocol platform. Note 2: The reporting period covers operations at the Resende Plant from January to December 2015 and 2016. Physical or chemical processing(resulting from the manufacturing or Volumes are reported based on invoice data from the supplier. processing of chemicals and materials (such as cement, steel, alumi- - - num, ammonia, and waste processing) Tto al indirect greenhouse gas emissions by weight. G4-EN16

Direct greenhouse gas emissions (scope 1) by source, in mtCO2e 2015 2016 T ransportation of materials, products, waste, employees, and pas- sengers (resulting from the combustion of fuels in mobile combustion sources owned or controlled by the organization (such as trucks, trains, 826.61 824.14 ships, airplanes, buses, cars) Electricity, heating, refrigeration and steam purchased for own consumption 2,911.71 957.73

Tlota 2,911.71 957.73

Fugitive emissions (resulting from intentional or unintentional releases, such as equipment leaks from joints, seals, packing, and gaskets; meth- Note: The reporting period covers operations at the Resende Plant from January to December 2015 and 2016. ane emissions from coal mines and venting; hydrofluorocarbon (HFC) - - Volumes are reported based on invoice data from the supplier. emissions from refrigeration and air conditioning equipment; and methane leakages from gas transport)

Gases included in calculation Global warming potential

Tlota 4,268.15 4,610.76 Carbon dioxide (CO2) 1, mt of CO2 eq

Methane (CH4) 25, mt of CO eq Biogenic CO2 emissions (from biomass burning or biodegradation), in 2 mtCO2e Nitrous oxide (N2O) 298, mt of CO2 eq

Note: The reporting period covers operations at the Resende Plant from January to December 2015 and 2016. Note 1: Emissions for this item were calculated using the Brazilian GHG Protocol platform. Volumes are reported based on invoice data from the supplier. Note 2: Targets for 2017 include reducing consumption of electricity and natural gas. Note 3: The reporting period covers operations at the Resende Plant from January to December 2015 and 2016. Volumes are reported based on invoice data from the supplier. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Other relevant indirect greenhouse gas emissions by weight G4-EN17

Other direct greenhouse gas emissions by source, in mt- Other direct greenhouse gas emissions by source, in mt- CO2e 2015 2016 CO2e 2015 2016

Upstream - - Investments - - Purchased goods and services - - Wastewater treated by third parties - - Capital goods - - Other downstream - waste transportation from plant to final disposal - 16.67 F uel- and energy-related activities (those that are not in- - 968.26 cluded in Scope 1 or Scope 2 emissions) Waste generated in operations 243.29 270.62

Upstream transportation and distribution - - TOTL A 243.29 1,255.55 Waste generated in operations - -

Business travel - - Biogenic emissions (from biomass burning or biodegradation), in mtCO2e - 68.23 Employee commuting - -

Upstream leased assets - - Gases included in calculation Global warming potential

Other upstream - - Carbon dioxide (CO2) 1, mt of CO2 eq

Downstream Methane (CH4) 25, mt of CO2 eq

Downstream transportation and distribution - - Nitrous oxide (N2O) 298, mt of CO2 eq

Processing of sold products - - Note 1: The sustainability report period is from January to December 2015 and 2016. Not all scope 3 emissions could be monitored, but available data has improved. Strength - all wastewater generated by the company is Use of sold products - - treated at an off-site, third-party wastewater treatment plant.T he treatment plant uses a physical and chemical process followed by biological treatment by aeration, which produces less GHG emissions. The challenge going End of life treatment of sold products - - forward is to expand available scope 3 emissions data from areas such as imports, exports, downstream transportation, and other areas. Note 2: Data has been calculated using the GHG Protocol platform. Downstream leased assets - -

F ranchises - - foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Greenhouse gas (GHG) emissions intensity G4-EN18 Reduction of greenhouse gas (GHG) emissions G4-EN19

Direct greenhouse 2015 2016 Greenhouse gas (GHG) emissions intensity, gas emissions in kgCO2e/vehicle produced¹ (scope 1) by source, 131.62 in mtCO2e 3,864.95 2,911.71 957.73 3,864.95 2,911.71 957.73 2016

169.93 Migration to free 2015 electricity market - - - 1,036.63 CO2 2 na 2014 Process improvements 279.94 CO2 1 and 2 426.99 CO2 1 and 2 Note 1: Calculated based on the number of vehicles built per year, including vehicles pending quality tests. T otal direct and indirect emissions 279.94 - - 1,463.62 - - (in mtCO2e)

Note 1: The emissions data in item G4-EN6 and the GHG Protocol platform are used as the basis for emissions calculations, as applicable. Emissions reductions through migration to Brazil’s free electricity market, in which all electricity is derived from renewable, hydroelectric sources, were also taken into account. Emissions calculations were based on the emissions factor published in the supplier’s GHG Inventory. Note 2: The data demonstrate Nissan’s commitment to improving our industrial processes and CO2 emissions. The company’s goal from 2017 is to reduce CO2 emissions from new vehicles by 90 percent by 2050.

Emissions intensity per vehicle decreased by 33.1 percent in 2016 compared with 2015. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Another short end medium-term sus- landfill and develop alternative meth- Municipal waste volumes generated at goal is to reduce current volumes by tainability priority is a cross-functional ods, best practices and solutions for the plant were also reduced, although approximately 1 percent, despite the effort to reduce the amount of waste waste disposal. this was offset by construction waste new work shift and increased produc- generated at each stage of the produc- going to landfill from dismantling the tion volumes. G4-EN23 tion process. Waste segregation sys- In a recent improvement, the amount plant construction site facilities. Plas- tems are in place at our facilities, and of wood materials used for parts pack- tic film, wood and cardboard materi- our teams are highly engaged around aging per vehicle decreased by 50 per- als used as packaging for parts and properly separating waste materials to cent. The initiative, which involved the components decreased substantially maximize recycling. Sustainability and Packaging Engineer- through the use of returnable packaging departments, developed packaging ing. Non-recyclable waste is sent to a using less structural wood materials licensed landfill in neighboring Barra while maintaining the same efficiency, The company has set a target cap on Mansa. The plant works continuously to safety and content protection attri- municipal waste going to landfill per reduce the amount of waste going to butes. manufactured unit (kg/vehicle). Our

Plant waste streams

Nonhazardous waste 2015 2016 TOTAL Hazardous waste 2015 2016 TOTAL

Paper and cardboard Recycled waste (mt) 880.28 691.61 1571.89 Paint Sludge Recycled waste (mt) 87.12 131.03 218.15

Wood waste Recycled waste (mt) 1050.02 694.21 1744.23 Lube Oil Recycled waste (mt) 15.68 9.86 25.54

Plastic film Recycled waste (mt) 152.56 108.16 260.72 Solvent Recycled waste (mt) 81.41 36.69 118.10

Rigid plastic Recycled waste (mt) 139.53 113.33 252.86 Water-based solvent Recycled waste (mt) 0.00 101.04 101.04

Municipal waste Landfilled waste (mt) 158.93 139.53 298.46 Other Landfilled waste (mt) 0.00 3.47 3.47

Miscellaneous Contami- F errous scrap metal Recycled waste (mt) 3819.15 5368.72 9187.87 Recycled waste (mt) nated 139.09 166.14 305.23 Nonferrous scrap metal Recycled waste (mt) 66.00 28.74 94.74 Other Recycled waste (mt) 0.00 22.41 22.41 Organic waste Composted waste (mt) 110.35 122.09 232.44 Medical Waste Composted waste (mt) 0.05 0.01 0.06

Other Recycled waste (unit) 9.20 10.66 19.86 TOTL A 323.35 470.65 794 Other Co-processed waste (mt) 0.00 7. 6 3 7. 6 3 (*) From dismantling temporary construction site facilities.

Construction waste (*) Landfilled waste (mt) 3.52 122.78 126.30

TOTL A 6389.54 7407.46 13,817 foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Tto al weight of waste by type and disposal method G4-EN23

Nonhazardous waste recycling (in metric tons) 2015 2016 TOTAL Disposal method Metal 2,188.63 3,885.15 5,397.46 R ecycling Municipal waste 121.92 158.93 139.53 Landfilling Organic waste 83.47 110.35 122.09 Composting 2016 Wood 647.92 1,050.02 694.21 R ecycling 96.7% Paper and cardboard 640.57 880.28 691.61 R ecycling 2015 97.6% Rigid plastic 72.99 139.53 113.33 R ecycling Plastic film 58.84 152.56 108.16 R ecycling

Construction 0.00 3.52 122.78 total 2015/2016: 97.1% waste R ecycling and co- Other 0.00 9.20 18.29 processing

Total 3,814.34 mt 6,389.54 mt 7,407.46 mt -

Hazardous waste (in 1 metric tons) 2015 2016 TOTAL Disposal method landfill Paint Sludge 65.97 87.12 131.03 Co-processing Lube Oil 0.00 15.68 9.86 R ecycling Solvent 0.00 81.41 36.69 R ecycling Water-based solvent 0.00 0.00 101.04 Co-processing Medical Waste 0.00 0.05 0.01 Incineration 2015 Miscellaneous contami- 24.61 139.09 166.14 Co-processing 2.4% nated 2016 R ecycling and co- Other 0.00 0.00 25.88 3.3% processing Total 90.58 mt 323.35 mt 470.65 mt - total 2015/2016: 2.9% Note 1: Disposed of directly by the reporting organization or by third parties, provided it is confirmed directly by the reporting organization. Note 2: The reporting period covers April to December 2014. Data are collected from the company responsible for managing the relevant waste material. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

We also organize workshops on re- improved our water consumption per ducing electricity, gas and water con- vehicle indicators. sumption. Implementation of a water recycling system at the vehicle quality Production rates were affected by the testing (Soft Rain) area in December automotive industry’s poor perfor- 2015 was another significant resource mance, reflecting a decline in domestic efficiency initiative. sales, but resumed growth in mid-2016 when exports out of Resende com- With production rates increasing year menced. by year, water withdrawal volumes have increased concurrently over the past Details on consumption targets are not three years of continuing expansion. provided in this report as further adjustments will be required to account As a result, one of our challenges in the for the second production shift. near future will be to implement actions to reduce water consumption while sustaining company growth. During the reporting period, we successfully

Tto al water withdrawal by source

T otal water withdrawal by source 2015 2016

Plant water 104742.23 72800.34

Potable water 22779.58 22359.97 Percentage and total volume of water recycled and reused Tto al water withdrawal by source 127,521.81 m³ 95,160.31 m³ Water recycled and reused 2015 2016 T otal water withdrawal by source 2015 2016 T otal volume of water recycled or reused (m³) Not available Not available Surface water (wetlands, rivers, lakes, and Recycling rate (%) Not available Not available oceans) 104742.23 72800.34

Groundwater 22779.58 22359.97 Note 1: The company’s production processes have water recycling systems but no metering or other data are available for assessment. Harvested rainwater 104742.23 72800.34 Note 2: The data refers to operations at the Resende Plant. Waste water from another organization 22779.58 22359.97

Municipal water supplies or other 22779.58 22359.97 water utilities Nissan successfully improved Tto al water withdrawal by source 127,521.81 m³ 95,160.31 m³ its water consumption per Note 1: The reporting period covers operations at the Resende Plant from January to December 2015 and 2016. vehicle performance in Note 2: Volumes are reported based on invoice data from the supplier. 2015/2016. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Ttao al w ter discharge by quality and destination

T otal Destination Water quality Volume (m³) Whether reused All forklifts and trolleys delivering parts Brazil, with only a limited number of water (if necessary, and treatment by another or- to the assembly line have electrical forklifts using this technology currently discharge add method ganization (yes drives (80 percent of part handling operating in the country. Thanks to its additional rows) or no) equipment), and only the vehicles used high fuel efficiency, CO2 emissions are for transfers between buildings run on reduced by 60 percent (compared to Sewage - 28093.72 m³ no LPG, reducing greenhouse gas emis- other models). sions. Our fleet also includes a 4.5-ton 2015 hybrid LPG forklift truck with an electric Industrial - 56387.37 m³ no power transmission for energy recov- wastewater ery. The forklift’s powerful but fuel-efficient drive train combines two systems for energy storage. The energy recovery Sewage - 32466.51 no system, coupled with the most efficient 2016 internal combustion engine concept, Industrial delivers potential energy savings and - 61666.6 no % wastewater fuels savings as high as 15 percent. 100 This technology is the state of the art of equipment delivering Note 1: The reporting period covers operations at the Resende Plant from April to December 2014. Data is based in internal combustion forklifts. Nis- parts to the assembly line have on invoice data from the relevant third-party company. san is pioneering the new concept in electric drives Note 2: No targets have been set for this indicator.

In 2015, work began on replacing fluo- rescent lamps at the Resende Plant with more energy efficient and durable LED lamps. The project is currently in progress and will ensure adequate Energy intensity G5-EN5 lighting levels are delivered as appropriate for the tasks at each workstation. In Energy July 2016, the Resende Plant migrated intensity 2015 2016 from the captive to the free market for electricity supply, with all electricity now 554.43 kWh/ 576.96 kWh/ Electricity sourced from renewable, hydroelectric vehicle vehicle generation facilities. Natural gas Our Engineering Department has un- % 39.3 m³/vehicle 43.12 m³/vehicle dertaken studies on the use of alterna- 100 tive energy sources, such as solar en- Note: Calculated based on the number of vehicles built per year, including vehicles ergy. Financial feasibility will be insured of the electricity supplied to the pending quality tests. through partnerships with other com- Resende Plant is derived from panies and organizations. renewable hydroelectric sources foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Energy consumption within the Nissan Brazil has an Energy Saving pro- organization G4-EN11, EN12, G4-DMA gram to drive continuous improvement ENERGY of production processes. Examples of these improvements include the The Resende Plant has not yet reached installation of LED lamps at the admin- Nissan’s Energy Saving program full production capacity and continues istrative office; start-up adjustments to expand. Production began at the on process equipment; among other delivers continuous improvement Nissan plant in April 2014 and produc- improvements. tion rates increased in 2015, resulting in higher electricity and natural gas con- 2017 promises to be a challenging year in energy efficiency throughout sumption. Process changes were also as the Resende Plant introduces its implemented in 2015/2016 and new second work shift for the production of our production processes. equipment was installed in preparation the Nissan Kicks (across its wide range for the production of models such as of available versions) and continues the Nissan Versa (in 2015) and Kicks (in to expand to accommodate vehicle 2016, with production starting in 2017). exports to Latin America. Even so, the Plant has set a target of reducing elec- Total Energy - fuel G4-EN3 2015 (GJ) 2016 (GJ Production rates were affected by the tricity and natural gas usage by 1.5 per- automotive industry’s poor perfor- cent for the added production volumes. T otal combustion of non-renewable fuels 97165.01 GJ 92881.33 GJ mance, reflecting a decline in domestic sales, but resumed growth in mid-2016 *Nissan’s fiscal year covers the period T otal combustion of renewable fuels when exports out of Resende com- from April 1 to March 31. 63596.23 GJ 96261.96 GJ menced. Total fuel consumption 160761.24 GJ 189143.3 GJ

ENERGY CONSUMPTION, BY SOURCE Total energy consumption within the organization G4-EN3 (valid only if units of 2015 2016 measure are consistent) Non-Renewable Sources G4-EN3 2015 (GJ) 2016 (GJ Total fuel consumption 160,761.24 189,143.30 Natural Gas 61131.79 GJ 67206.05 GJ Total energy consumption within the organization 160,761.24 189,143.30 Electricity (local utility) 20637.19 GJ 10341.41 GJ

LPG (forklifts) 1104.76 GJ 1814.7 GJ

Diesel (generators/on-site vehicles) 570.44 GJ 558.12 GJ T otal consumption of purchased electricity G4-EN3 2015 2016 Gasoline (fleet) 13720.83 GJ 12961.06 GJ Electricity - Mwh 23,398.17 24,415.80

Renewable Sources G4-EN3 2015 (GJ) 2016 (GJ Note 1: Data are for the Resende Plant from April to December 2014 and January to December 2015 and 2016. Electricity 63596.23 GJ 96261.96 GJ Note 2: Electricity and natural gas consumption data are based on invoice information. foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Reduction of energy CAEN has narrowed its focus to the usage G4-DMA Energy production process, improving equip- T otal environmental The Reduction Cell team at the Utilities ment performance and implement- protection expenditure 2015 2016 department – which is responsible for ing good practices developed by the and investment by type initiatives focusing on reducing costs Nissan Energy Saving Collaboration G4-EN31 and greenhouse gas emissions at the (NESCO) group. Resende Plant in Rio de Janeiro, work- Waste Management R$ 2,689,726.31 R$ 2,054,143.44 ing closely with the relevant electricity, Future challenges include broadening gas and water consumer departments leadership engagement, raising em- Wastewater Treatment R$ 5,062,776.68 R$ 5,673,379.47 – was renamed the Energy Drive Com- ployee awareness (especially among mittee (Comitê de Animação de Ener- new hires for the second shift), expand- Environmental Monitoring R$ 61,116.87 R$ 138,256.87 gia, CAEN) in 2016. ing CAEN activities, and implementing good practices and recommendations Environmental Prevention R$ 4,264.17 R$ 12,708.61 from studies on alternative energy sources, such as solar energy. Environmental Consulting R$ 20,507.14 R$ 106,502.69

Energy reduction and energy efficiency R$ 78,000.00 R$ 50,005.77

T otal reductions in energy consumption 2015 (GJ) 2016 (GJ Environmental Fees R$ 9,000.00 R$ 28,983.65 achieved as a direct result of conservation and efficiency initiatives (GJ) G4-EN6 6956.33 GJ 9343.33 GJ R eforestation R$ 48,856.63 R$ 210,872.04

T raining on safety R$ - R$ - Note 1: The energy sources accounted for in the reductions reported above are: electricity and the environment and natural gas at the Resende Plant (RJ). Independent management Note 2: The reporting period covers operations at the Resende Plant from January to system certification R$ - R$ - December 2015 and 2016. Reduction data was compiled from each department’s kaizen records. Tlota R$ 7,974,247.80 R$ 8,274,852.54

Biodiversity

Nissan’s Brazil’s decision to locate its Nissan also works to preserve wildlife experience and supporting govern- tion since March 2015, the facility was first wholly-owned plant in Resende (RJ) in the Turfeira Lagoon area, which was ment environmental education initia- developed using sustainable build- was a way of repaying the community designated a protected area by a Rio tives. In Resende, recycling, clean energy ing concepts such as large windows for its engagement with the company. de Janeiro state government decree and collective clean-up activities help to providing natural light and rooftop solar Prior to construction, the company had in February 2016. The Turfeira Lagoon raise awareness about the importance panels providing electricity. already committed to the local environ- Wildlife Refuge, as it is called, covers a of protecting the environment. Nissan mental regulator to develop a 12-hect- total area of 665 acres. employees also volunteer to work in are green belt around the plant. A total initiatives aimed at enhancing environ- of 4,000 saplings will be planted in the As part of its commitments to the state mental protection and awareness. region as part of a project running from government and environmental au- 2014 to 2017. Following completion, Nis- thority, Nissan will also develop environ- This sustainability experience was put san has committed to maintaining the mental studies supporting the protec- to practical use in creating the Parque green belt. tion and preservation of biodiversity in das Águas Municipal Children’s Educa- the area. tion Center, which has been built and Over the next few years, the channel operated in a public-private partnership draining from the lagoon will be repop- Environmental initiatives are also devel- between Instituto Nissan, the municipal ulated with native species, in a project oped by Instituto Nissan in surrounding government of Resende and the state expected to run from 2017 to 2021. communities, with a focus on sharing government of Rio de Janeiro. In opera- foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

GRI Content Summary About this report Nissan Brazil’s Sustainability Report economic performance and impacts. 2015/2016 provides key information Nissan Brazil’s sustainability report is in about the company’s financial, corpo- accordance with the ‘Core’ option of the rate governance and social and envi- Global Reporting Initiative ronmental performance. The Report combines information on financial, (GRI) G4 reporting guidelines. It has not non-financial and sustainability aspects been GRI-checked or independently as- into a single publication. G4-30 sured. GRI G4-32

This report has been developed with It includes information about the information for the period from January strategies, initiatives, products, ser- 1, 2015 to December 31, 2016. The Report vices, projects, operations and business is available in print and digital (PDF) ver- activities of all business units within Nis- sions and is distributed to key stake- san Brazil. Information and limitations holders: customers, employees, suppli- relating to specific GRI disclosures are ers, dealerships, governments, industry specified in the GRI content summary associations, business partners, local (on the following pages) or in the body communities, non-government civil of the report. Any questions, critiques society organizations and the media. and suggestions about the content of Report content was defined based on this report can be submitted by e-mail the material issues identified for Nis- to [email protected]. san Brazil. There have been no scope GRI G4-31 changes from previous editions. GRI G4-22, G4-23, G4-28, G4-33

This Report has been prepared in accordance with the guidelines laid down by the Global Reporting Initiative (GRI), an internationally recognized source of authority on disclosures about organizations' management approach and their environmental, social and foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

General standard disclosures Page where addressed General standard disclosures Page where addressed

As a closely held company, Nissan G4-1 Statement from the most senior decision-maker of the G4-17 List all entities included in the organization’s consoli- organization (such as CEO, chair, or equivalent senior posi- Brazil does not publish financial 8 dated financial statements or equivalent documents tion) about the relevance of sustainability to the organization statements and the organization’s strategy for addressing sustainability G4-18 Explanation of the process for defining the report con- 26, 27 G4-2 Description of key impacts, risks, and opportunities: tent and aspect boundaries focus on the organization’s key impacts on sustainability and 11-19, 28, 36, 38-50, 52-69, 70-93 G4-19 List of all material aspects identified in the process for effects on stakeholders. 29 defining report content G4-3 Name of organization 11 G4-20 For each material aspect, report the aspect boundary 29 within the organization G4-4 Primary brands, products, and services 18-19 G4-21 For each material aspect, report the aspect boundary 29 G4-5 Location of organization's headquarters Rio de Janeiro (RJ) outside the organization

G4-6 Number of countries where the organization operates, G4-22 Effect of any restatements of information provided in and names of countries either with major operations or that 95 11 previous reports, and the reasons for such restatements are specifically relevant to the sustainability issues covered in the report G4-23 Significant changes from previous reporting periods in 95 the scope and aspect boundaries A closely held subsidiary of Nissan G4-7 Nature of ownership and legal form Motor Company G4-24 List of stakeholder groups engaged by the organiza- 28 tion G4-8 Markets served (including geographic breakdown, sec- 11, 12 tors served, and types of customers and beneficiaries) G4-25 Basis for identification and selection of stakeholders 26, 27 with whom to engage G4-9 Scale of organization 11-13, 30-35, 38-39 G4-26The organization’s approach to stakeholder engage- G4-10 Total number of employees UNGC 39 ment, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the 28 engagement was undertaken specifically as part of the re- G4-11 Percentage of total employees covered by collective 100% of employees port preparation process bargaining agreements UNGC G4-27 Key topics and concerns that have been raised G4-12 Description of organization's supply chain 57-59 through stakeholder engagement, and how the organization has responded to those key topics and concerns, including 29 G4-13 Significant changes during the reporting period re- through its reporting. Report the stakeholder groups that garding the organization’s size, structure, ownership, or its None raised each of the key topics and concerns supply chain G4-28 Reporting period (such as fiscal or calendar year) for 95 G4-14 Whether and how the precautionary approach or prin- The precautionary approach is not information provided ciple is addressed by the organization addressed at Nissan Brazil G4-29 Date of most recent previous report (if any) July 1, 2015 Nissan Brazil is a signatory of the G4-15 List externally developed economic, environmental and Business Pact for Integrity and social charters, principles, or other initiatives to which the Combating Corruption and the G4-30 Reporting cycle (such as annual, biennial) 95 organization subscribes or which it endorses Clean Company program G4-31 Contact point for questions regarding the report or its 95 G4-16 List memberships of associations (such as industry Nissan Brazil is a member of the contents associations) and national or international advocacy organi- Brazilian Association of Vehicle zations Manufacturers (ANFAVEA) G4-32 'In accordance' option the organization has chosen 95 foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

General standard disclosures Page where addressed Page/where Aspect Description addressed Omission G4-33 Policy and current practice with regard to seeking ex- 95 ternal assurance for the report G4-EN15 Direct green- G4-34 Governance structure of the organization, including house gas (GHG) emis- 75, 76 committees of the highest governance body. Identify any sions (Scope 1) 20 committees responsible for decision-making on economic, environmental and social impacts G4-EN16 Energy indirect greenhouse 75, 76 G4-56 The organization’s values, principles, standards and gas (GHG) emissions norms of behavior such as codes of conduct and codes of 14, 15 (Scope 2) ethics G4-EN17 Other indirect greenhouse gas (GHG) 78 emissions (Scope 3)

Economic G4-EN18 Greenhouse gas (GHG) emissions 80 Page/where intensity Material aspects DMA and disclosures addressed Omission G4-EN19 Reduction of Economic G4-DMA Management greenhouse gas (GHG) 81 31, 34-35 performance UNGC approach emissions

Indirect economic G4-DMA Management G4-DMA Management 16, 62 Effluents and waste 82, 83 impacts approach approach G4-EC8 Significant indirect economic G4-EN23 Total weight 16, 42, 46, 66 impacts, including the of waste by type and 83 extent of impacts disposal method

Page/where G4-DMA Management Aspect Description Omission General 72 addressed approach

G4-DMA Management Electricity 90, 92 G4-EN31 Total envi- approach ronmental protec- 95 tion investments and G4-EN3 Energy con- expenses by type sumption within the 90, 91 organization G4-DMA Management Employment 40-47 G4-EN5 Energy inten- approach 76, 89 sity G4-LA1 Total num- G4-EN6 Reduction of ber and rates of new 92 employee hires and energy consumption 49 employee turnover by G4-DMA Management age group, gender and Emissions 73-81 approach region foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Page/where Page/where Aspect Description addressed Omission Aspect Description addressed Omission

G4-LA2 Benefits pro- Product and service G4-DMA Management 53-56 vided to full-time em- labeling approach ployees that are not provided to temporary 41 G4-PR5 Results of or part-time employ- surveys measuring 56 ees, by significant loca- customer satisfaction tions of operation

Training and G4-DMA Management 46-47 education approach

G4-LA10 Programs for skills management and lifelong learning that support the con- 48 tinued employability of employees and assist them in managing career endings

G4-LA11 Percentage of employees receiving regular performance and career develop- 40 ment reviews, by gender and by employee category

G4-DMA Management Local communities 62-69 UNGC approach

G4-SO1 Percentage of operations with implemented local com- General munity engagement, 64 impact assessment, and development programs foreword PROFILE EXTERNAL GRI CONTENT SUSTAINABILITY REPORT Statement from the chairman 2015/2016 STAKEHOLDERS SUMMARY 2015/16 Statement from the President PEOPLE ENVIRONMENT ACKNOWLEDGEMENTS

Credits and Acknowledgements

project oversight Head of Government Affairs and Sustainability - Marcia Ribeiro Project management Nissan Institute – Ana Carolina Andrade and Juliana Rosas; Health & Safety Department – Ivana Ribeiro

c ontent and gri reporting Report Sustentabilidade

graphic design Report Sustentabilidade

Editorial revision Corporate Communications Department – Rogerio Louro and Mila Poli

photos Nissan Brazil archives

Special thanks to all departments involved in reviewing the contents of this report. WWW.NISSAN.COM.BR FACEBOOK.COM/NISSANBRASIL TWITTER.COM/NISSAN_OFICIAL