CONTENTS 2 Editorial Policy Highlights of the Mazda Sustainability Report 2018 3 Corporate Vision Top Message: 4 Top Message ■ Akira Marumoto, Representative Director, President and CEO of Mazda, Inspiring People through Cars Sustainable with the discusses his views on CSR and the progress of initiatives to improve Mazda’s Earth and Society brand value. ■ Details specific measures that will help achieve Mazda’s new long-term 8 Feature Story vision for technology development “Sustainable Zoom-Zoom 2030.” Mazda's “Direction of Future Frameworks” and Technologies that Enhance the Value of the Automobile Special Feature: —A compass bearing on sustainable growth and a technology ■ An interview with Kiyoshi Fujiwara, Mazda’s Representative Director and strategy for making car ownership a joyful and life-enriching Executive Vice President, regarding the “Direction of Future Frameworks,” experience— which sets a compass bearing for fundamental initiatives aimed at 14 FY March 2018 Highlights / Financial Information sustainable growth, and Mazda’s “Electrification and Connectivity Strategies” for cars that invigorate the mind and body. 15 Major Product Lineup / Top 10 Markets in Global Sales for FY March 2018 Editorial Policy 16 Corporate Profile / Global Network 17 Mazda CSR ■ This report presents Mazda’s CSR initiatives in the six areas—Customer Satisfaction, Quality, Safety, Environment, Respect for People, and Social 18 CSR Management Contributions—primarily regarding the targets and results of these 27 Stakeholder Engagement initiatives. ■ Aiming to satisfy the needs of readers, Mazda studied the editorial policy 29 Customer Satisfaction and content of this report in reference to the third party opinion and 30 Providing the Mazda Brand Experience to Customers stakeholders’ ideas and views obtained through the questionnaire survey and engagements with stakeholders. 37 Quality 38 Commitment to Quality 44 Safety Report Coverage 45 Safety Initiatives Organizations Covered: The entire Mazda Group, including Mazda Motor Corporation 54 Environment and its Group companies, is covered in this report. (Where the reporting item is not 55 Basic Approach on Environmental Protection applicable to the entire Mazda Group, the organizations covered are specified.) 57 Mazda Green Plan 2020 Mid-term Environmental Plan Period Covered: The report primarily covers the period from April 2017 through March 61 Environmental Management 2018, although some activities after April 2018 are included. 65 Efforts Regarding Product and Technology Development Scope of the Report: Social, environmental, and economic data are included in this report. 73 Efforts Regarding Manufacturing and Logistics ＊ For more details about economic data, see Mazda's website Investor Relations & Annual Report. 80 Collection and Recycling of End-of-Life Vehicles (ELVs) and Used Parts 82 Biodiversity Conservation Referenced Guidelines 83 Environmental communication Sustainability Reporting Standards of Global Reporting Initiative (GRI) Ministry of the Environment’s Environmental Reporting Guidelines (2012 Edition) 85 Mazda’s Corporate Activities and Impact on the Environment Ministry of the Environment’s Environmental Accounting Guidelines (2005 Edition) 87 Respect for People ISO26000 88 Initiatives with Employees Date of Publication (In-depth version) 100 Human Rights Japanese version: October 2018 (The previous report was published in September 2017; 103 Social Contributions the next report will be published in the summer of 2019). ＊ The 2018 digest version (PDF / Booklet) was published in November 2018. 104 Social Contributions English version: November 2018 (The previous report was published in November 2017; 108 Management the next report will be published in the autumn of 2019). 109 Management ＊ The 2018 digest version (PDF / Booklet) was published in November 2018. 120 Implementing CSR in the Supply Chain 123 With Shareholders and Investors Approach to Reporting Information 124 Innovation Mazda discloses information in the following formats.* 134 Major External Evaluations/Awards for FY March 2018 ＊ If any content errors are found after publication, a list of errata will be posted on Mazda’s official website. 135 History of Mazda 137 Third-Party Opinion ■ In-depth version* ■ Official website 138 Third-Party Verification (146 pages) http://www.mazda.com/ ● PDF en/csr/ 139 Third-Party Assurance Covers comprehensive In addition to the contents of the 140 Table of Comparisons with Guidelines Specialized information and data on PDF (In-depth version), the latest Mazda’s CSR initiatives information is posted in a timely manner. Information is available ■ Digests version* in a searchable format. Disclaimer: This report includes future projections for Mazda (Corporate Profile) Motor Corporation and its Group companies’ performance (32 pages) based on plans, forecasts, management plans, and strategies ● PDF ● Booklet* at the time of publication, in addition to actual past and Includes information Mazda resent facts. Such forward-looking statements are predictions strongly wishes to communicate to its stakeholders based on information or assumptions available at the time of edit, and may differ from future operational results due to Comprehensive changes in circumstances. ＊ Available on our website at http://www.mazda.com/en/csr/report/download/ 2 Mazda Sustainability Report 2018 Corporate Vision* We love cars and want people to enjoy fulfilling lives through cars. We envision cars existing sustainably with the earth and society, and we will continue to tackle challenges with creative ideas. 1. Brighten people’s lives through car ownership. 2. Offer cars that are sustainable with the earth and society to more people. 3. Embrace challenges and seek to master the Doh (“Way” or “Path”) of creativity. ＊ Mazda revised its Corporate Vision in April 2015, with the following objectives, aiming to be recognized as a corporate group gaining sincere trust of its stakeholders. ・Clarify the attributes of the Mazda brand, and make concerted efforts across the Mazda Group to realize the Corporate Vision. ・Promote the Group-wide dialogue process to share, understand and agree the goal of the Corporate Vision through the continuous thorough discussions. ・Closely link the Corporate Vision to our daily business activities. The Origin and Meaning of “Mazda” The Company’s name, “Mazda,” derives from Ahura Mazda, a god of the earliest civilizations in western Asia. The Company has interpreted Ahura Mazda, the god of wisdom, intelligence, and harmony, as a symbol of the origin of both Eastern and Western civilizations, and also as a symbol of automotive culture. It incorporates a desire to achieve world peace and the development of the automobile manufacturing industry. It also derives from the name of the Company’s founder, Jujiro Matsuda. Mazda Brand Slogan, “Zoom-Zoom” Mazda’s creativity and innovation continuously delivers fun and exhilarating driving experiences to customers who remember the emotion of motion first felt as a child (Announced in April 2002). Mazda Brand Symbol The brand symbol expresses Mazda’s dedication to continuous growth and improvement. It is a symbolic development of the Mazda “M,” and shows the Company stretching its wings as it soars into the future (Established in June 1997). Mazda Corporate Mark Mazda developed its corporate mark as a symbol for Mazda’s communications in 1975. It was later positioned as an easy-to-read corporate mark, in line with the establishment of the brand symbol in 1997. 3 Mazda Sustainability Report 2018 TOP MESSAGE Inspiring People through Cars Sustainable with the Earth and Society Akira Marumoto Representative Director, President and CEO Mazda Motor Corporation My name is Akira Marumoto, and I was appointed Representative Director, President and CEO of Mazda Motor Corporation in June 2018. I would like to thank all of the Mazda Group’s stakeholders for their ongoing understanding and support. I would like to extend our deepest sympathy to all who were affected by a series of natural disasters that hit different parts of Japan this summer. Hiroshima was no exception. Mazda's hometown was severely affected by the record rainfalls in July 2018. As a car company founded and based in Hiroshima, we've taken actions to help those in need and speed up recovery. We've dispatched employees as volunteers, provided vehicles, and supplied goods and materials to affected suppliers. We will continue supporting the reconstruction and recovery effort in partnership with local communities and suppliers (see p. 7). To our stakeholders, I would like to apologize again for the concern we caused with the improper handling of test data in final vehicle inspections, an issue uncovered by our investigation into sample testing of fuel economy and emissions during final vehicle inspections. We have reported the results to Japan’s Ministry of Land, Infrastructure, Transport and Tourism and are committed to taking all necessary actions and measures to ensure it never happens again (see p.43). Laying a solid foundation for qualitative growth and higher brand value In the March 2018 fiscal year, under the Structural Reform Stage Frameworks” as the basic direction of our future initiatives for 2 medium-term business plan, Mazda worked to offer appealing sustainable growth (see pp. 8-13). Mazda regards the next three products that provide both driving pleasure and outstanding years as a time to secure a solid foundation for strong growth environmental and safety performance, to