environment - isuzu · isuzu group’s charter on the global environment mid/long-term plan, annual...

ForIsuzu’sbasicideasrelatedtotheenvironment,itestablishedandisimple-mentingthegoalsofpursuingitsbusinessactivitiesinallareaswithanenviron-mentalawareness,anddevelopingandoperatingitsenvironmentalmanagementsystemtoreducetheenvironmentalloadinallofitsbusinessareas.

TheIsuzuGroup’sCharterontheGlobalEnvironmentclarifiesthecompa-ny’senvironmentalvisionfortherealizationofaprosperousandsustainablesociety.Inlinewithdramaticallychangingsocialtrendsandsocialdemands,allIsuzuGroupmembersusetheCharterasaguidelinewhenpursuingenvi-ronmentactivities.

Basic Ideas

Isuzu Group’s Charter on the Global Environment

Basic Policy▶ Realization of a prosperous and sustainable society WethemembersoftheIsuzuGroupregarditasanimportantbusinesschallengeto

preservetheglobalenvironmentsothatourplanetremainsprosperousandsustain-ableandcanbepassedontonextgenerations.Inthisregard,wepursueourbusinessactivitiesinallareaswithanenvironmentalawareness.

▶ Reduced environmental load of all business operations The IsuzuGrouprecognizesourresponsibility insupportingtransportation,offersenhancedproductsandservicestoourglobalcustomersthroughclosecooperationwithallGroupcompanies,anddevelopsandoperatesourenvironmentalmanage-mentsystemtoreducetheenvironmentalloadinallofourbusinessareas.

Action Guidelines1 Create a sustainable society Wecoordinateourbusinessoperationsandenvironmentalinitiatives,therebyoffering

environmentally-aware,high-value-addedproductsandservicestosociety.2 Comply with environmental laws and minimize the environmental load Inanefforttominimizetheimpactontheenvironmentfromourbusinessoperations,

weensurethatwecomplywithenvironmentallawsandengageinkeyenvironmentalissuesinallofourbusinessareasfromdevelopmenttoproduction,distribution,salesandservicing,addressingclimatechange,resourcerecycling,preventionofenviron-mentalrisksfromhazardoussubstances,environmentalmeasuresandconservationofbiodiversity.

3 Promote environmental technology Wepromote thedevelopmentof technology to reduce theenvironmental loadappliedthroughouttheproductlifecycle.

4 Maintain proactive social communication Wemaintainapositiveattitudetowardthedisclosureofproduct,service,andbusi-

nessactivity informationontheenvironment,promotinggoodcommunicationwithmembersof societyandcommunities,andwork toward realizingaprosperoussociety.

5 Foster environmental awareness as corporate citizen Weengage inperpetualefforts to fosterenvironmentalawareness ineachGroupmemberasacorporatecitizenoperatinginalocalcommunity,encouragingthemtolearnaboutandacttowardenvironmentalconservation.

Asamanufacturerandvendorofautomobiles,theIsuzuGrouprecognizestherisksandopportunitiesrelatedtoclimatechangeasincreasinglyimport-antbusinessissuesfortheGroup,consideringthatourproductsaresourcesofcarbondioxide(CO2)andotherexhaustgasesthatexacerbateclimatechange.Thesignificanceattachedtothemwillfurthergrowastheclimateforcorporateactivitieschanges,promptedbyfactorssuchastheParisAgreementandtheUnitedNations’SustainableDevelopmentGoals(SDGs).Isuzuhasbeenproactivelypursuingtheimprovementoffuelefficiencyin

vehiclesofhighcustomerdemand.Wehavealsobeenholdingseminarsonfuel-efficientandsafedrivingsince1995socustomerscanlearnfuel-efficientdrivingtechniquessuitablefortheirvehicleperformance.TheseinitiativesareregardedasimportantactivitiestoworktogetherwithcustomerstoreduceCO2emissionsasmostoftheCO2gasesproducedinacar’slifecycleisduringoperation.Similarly,theMimamoriandothercustomersupportsystemsforfuel-efficientdrivingprovidecustomerswithinformationthatmeetstheirneeds.Today,weareaffectedbymoreextremeweatherconditions,suchas

increasedlocalprecipitationandmorepowerfultyphoons,likelyasaresultofclimatechange.IfIsuzuproductsweresubmergedunderwaterandbecameunusableinawater-relateddisaster,thiswouldposeriskstoourcustomers’businesses.Tosupportquickrecoveryofoperations,IsuzuhasasysteminplacetohelpwiththeinspectionandrepairofIsuzuproductsaccordingtothedamagecausedbyflooding.Meanwhile,thereisamajorchangetakingplaceinthepowertrainbusi-

nesstoday.Isuzuisalsorespondingtothistrendandpursuingthedevelop-mentofEVandsimilarvehicles,includingtheprovisionofanelectricmonitorvehicleduringFY2018.Inaddition,weareinvestigatingoptimalpowertrainsforIsuzuforcommercialvehicleapplications,whichincludesthedevelopmentofLNGtrucksaspartofaresearchprogramoftheMinistryoftheEnvironment.Wefeelthatitisanimportantbusinesschallengetooutplayourcompetitorsinnewtechnologydevelopment,whichinvolvesbothrisksandopportunities.

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ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED18

TheIsuzuGrouphasestablishedfivebodiesundertheGlobalEnvironmentCommitteeinordertoimplementenvironmentalconservationactivitiesinallitsbusinessoperations.ThesefivebodiesarecomposedofIsuzuGroupaffiliatecompaniesoperatinginenvironmentallyrelevantfields,andtheyaddressvariousissuesandpromotebetterenvironmentalactivitiesthroughthegoalstheysetforthemselves.TheGlobalEnvironmentCommittee,composedofmembersfromtop

managementincludingrepresentativeofficersofvariousfields,holdsmeet-ingseveryquartertoaddresstheresolutionofdiverseenvironmentalissues,carryingoutdiscussionsanddecision-makingonmattersofenvironmentalconservation.

Agenda of Global Environment Committee1 IsuzuGroup’senvironment-relatedinitiativepolicyandplan ▶IsuzuGroup’sCharterontheGlobalEnvironment ▶Mid/Long-termplan,annualplan2ProgressofactivitiesthatfollowtheIsuzuGroup’senvironmentalinitiativepolicyandplan

3KeymattersrelatedtoenvironmentalproblemssurroundingtheIsuzuGroup

Goingforward,theIsuzuGroup—domesticandoverseas—willworkunitedasoneundertheIsuzuGroup’sCharterontheGlobalEnvironmentsoastorealizeaprosperousandsustainablesociety.Inaddition,weplantoformulateourlong-termenvironmentalvision

duringFY2019soastofurtherclarifytheenvironmentalaspectstheIsuzuGroupshouldaimforfromalong-termperspective.Throughthisactivity,wewillbuildasystemwhichcanpromotebusiness

activitiestakingintoconsiderationtheenvironmentinallbusinessfields,whereeachandeverypersonintheIsuzuGroupcanachievewhatheorsheshoulddowithreferencetothelong-termenvironmentalvision.

Isuzu Group Environmental Promotion Scheme

Future initiatives

Structure of Global Environment Committee

PurchasingLogistics

Design & D

evelopment

ProductionSales

Logistics Working Group

Product Development Environment Committee

Production Environment Committee

Sales and Support Environment Committee

Green Procurement Working Group

Composedoflogistics-relatedIsuzuGroupcompanies.Addressesmoreefficient,environmentallyfriendly,andlowerCO2emittinglogisticsactivitiesinordertopromoteenvironmentalawarenessinoperationssuchasthetransportationofcompletedvehiclesorpartsusedinmanufacturing.

ComposedofdesignanddevelopmentrelatedIsuzuGroupcompanies.Addressesactivitiesfordesigningand

developinggreener,cleanerproductswithlowerCO2emissions,inordertoreducetheenvironmentalloadofproducts(vehiclesandcomponents).

ComposedofproductionrelatedIsuzuGroupcompaniesbothinJapanandoversees.Addressesgreenerproductionactivities,inordertopromoteenviron-mentalconservationinproduction.

Composedofsales-relatedIsuzuGroupcompanies.Addressesactivitiesthataregreenerandreducetheenvironmentalloadofdistributors,inordertopromoteenvironmentalconservationinsales.

AddressesenvironmentalawarenessinprocurementactivitiesinordertopromoteenvironmentalconservationtogetherwithIsuzubusinesspartners.

Top Managem

ent

CommitteeMembers:RepresentativeofficersfromeachdivisionChair:SeniorExecutiveOfficer

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ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED19

Environment

IsuzuhasestablishedtheIsuzuGreenProcurementGuidelinesforpromotingenvironmentalconservationtogetherwithitsbusinesspartners,whoIsuzuaskstopromoteenvironmentalconservationactivitiesbasedonanunder-standingoftheseGuidelines.InAprilandOctober2018,weheldourbiannualproductionbriefingsfor

businesspartnerswhereweexplainedouractivityplanfortheperiodandhowtopreparetheEnvironmentalManagementSelf-EvaluationReportthatpartnersareaskedtoprovide.Withabout300partnersattendingthebrief-ings,wehadalivelyexchangeofopinions.

Environmental activity seminarsInJuly2018,Isuzuheldaseminaronenvironmentalactivitiestohelpraisethelevelofenvironmentalactivitiesconductedbybusinesspartners.Aimedatfurtherboostingtheseactivities,theseminarwasattendedby45peoplefrom37targetedbusinesspartners.TheEnergyConservationCenter,Japan,wasinvitedtospeakonthetopic

ofhowtoconductmoreCO2reductionactivitiesbyutilizingtheEnergy-Sav-ingActanditsamendments.Feedbackfromourbusinesspartnersindicatedthattheseminarwillhelpthemintheirfutureenvironmentalactivities.WepartiallyrevisedtheFY2018EnvironmentalManagementSystem

Self-EvaluationReportandrequestedthatour365businesspartnerscon-ductself-assessment.TheresponserateandaveragescoresforFY2018assessmentswerethe

highestever.Theyindicatedanincreaseinsuccessfullymeetingtheirownenergyconservationgoalsandanincreaseinthenumberofinitiativescon-ductedintheareasof“wastereduction”and“logisticsimprovementandpackagingmaterialreduction.”Thisconfirmedagreaterawarenessofourbusinesspartnersinactivitiesfortheenvironment.Wewillcontinuevisitingbusinesspartnersandholdingtheseenvironmental

activityseminarsinthefuturetoraiselevelsacrosstheentiresupplychain.

Environmental initiatives in procurement activities

Business partner visitsBasedontheresultsofEnvironmentalManagementSystemSelf-EvaluationReportsthatwerequestedourbusinesspartnerstoconduct,wedirectlyvisitedanumberofpartners.Weconfirmedthestatusoftheiractivitiesandmanagementsystems,relatedtooverallenvironmentalactivitiesandincreasinglyregulatedchemicalsubstancemanagement,andwehadcon-structivediscussions.Thiswaspartofeffortstoshareinformationonsuc-cessfulactivitiesandimprovements,andtoimproveactivitiestogetherwithourpartners.

Isuzu Green Procurement Guidelines (outline)1Procurementbasicvision/Basicpolicy/Slogan2Ourrequestsforourbusinesspartners ▶Requestsregardingenvironmentalmanagement 1)Structuringenvironmentalmanagementsystems 2)Nominationofpersonnelresponsibleforenvironmentalmatters 3)Compliancewithrelatedenvironmentallawsandregulations 4)Improvementofenvironmentalperformance 5)Submissionofself-evaluationreportsonenvironmentalmanage-

mentsystems,andconfirmationbyIsuzu ▶ Requestsrelatedtoparts,materials,andservicesprovidedto

ourcompany 6)Managingenvironmentallyhazardoussubstances 7)Initiativesformanagementoverlifecycles 8)ReductionofCO2emissionsandpackaging/shippingmaterials

inlogistics

Supply Chain Managementpage 71

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Employee-participatoryactivitiesareindicatedwiththissymbol.

IsuzuengagesinenvironmentallyfriendlylogisticsthroughoutthewholeGroup,streamliningitsvariouslogisticsprocessessuchasthetransportationofcompletedvehicles,partsorsubsidiarymaterialsusedinvehiclemanufac-ture,promotingfuel-efficientdrivingduringtransportation,andsoon.

Reducing CO2 emissions in logistics processesIsuzuisreducingCO2emissionsinitslogisticsprocesses,atthetargetrateof1%peryear,byreviewingthetransportationroutesofparts,promotingfuel-efficientdrivingduringtransportation,andincreasingtheamountofmarinetransportationbydevelopingnewshippingroutes(modalshift).

Environmental initiatives in logistics processes

6,442 7,2828,996 10,058

12,01715,682 16,139

11,903 11,6293,966 4,052

3,9795,462

5,410 7,419

9,000

10,90310,056

17,260

12,246

62 6469 69

65 6256 59 62 59

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18,000

12,000

6,000

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02009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Ratio by sea(No. of vehicles) (%)

(FY)

By sea By land

State of modal shift during product vehicle transportation

Other main initiatives for reducing CO2 emissions▶Improvedtransportationefficiencyduetothoroughtrucktransportman-agementaccordingtoload

▶Increaseduseofreturnableracksthatcanbefoldedwhenreturning▶Increasedtrailertransportationandimprovedfillingratesofgoodswithincontainers

In2016,anewdistributioncenterwasconstructednearFujisawaPlant,centralizingallwarehousesintheFujisawaarea.Thisconsolidatedtranspor-tationbetweenwarehousesandimprovedlogisticsefficiency.Thedistributioncenteritselfisinanenvironmentallyconsciousdesign,

equippedwithLEDlightingandskylightstotheextentpossible.IthasreceivedaratingofB+(Good)fromtheComprehensiveAssessmentSystemforBuiltEnvironmentEfficiency(CASBEE).

Reduced amount of packaging materials through review of packaging configurations

IntheIsuzuGroup,packagingconfigurationsarecontinuallyreviewed,andmeasurestakentoreducetheamountofpackagingmaterialsused.InFY2017,westartedusinggloballystandardizedreturnableracks,and

wearecurrentlyexpandingtheirusestartingfromtheASEANregion.

Returnablerack

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TheIsuzuGrouphasset“SeeTechnology”asitsbaseconceptfordevelop-ment,withtheaimofadvancingtechnologiesinthethreeareasofSafety,EconomyandEnvironment.Fromtheaspectoftheenvironment,Isuzuhasselectedeightpriority

issuesandsetupaspecialcommitteeforeachonetoaddressenvironmen-tallyconsciousproductdevelopment.

•ExamplesareforautomobilemodelssoldinJapan.Youcanfindenviron-mentaldetailsaboutautomobilessoldbyIsuzubelow.

•YoucanfinddetailsaboutproductssoldbyIsuzubelow.

Initiatives for environment in product development

Improvementofairconditioningrefrigerant

Promotionofin-vehicleVOCreduction

Fueleconomyimprovement(globalwarmingprevention)

Promotionofrecycling Developmentanddiffusionofnext-generationvehicles

Reductionofvehiclenoise

Cleaneremissions

Reductionofenvironmentallyhazardoussubstances

Environmental information by vehicle type (Japanese only)http://www�isuzu�co�jp/cv/env/car/index�html

Product informationhttps://www�isuzu�co�jp/world/product/index�html

Fuel economy improvement (global warming prevention)IsuzuisengagedinthedevelopmentoftechnologiesthatwillmeetfutureJapaneseandoverseasregulationsonfueleconomyandCO2emissionsandachievetop-levelfuelefficiency.

Cleaner emissionsIsuzuisengagedinthedevelopmentofhigh-efficiencydieselenginesthatwillcombinecompatibilitywithfutureemissionregulationsandimprovedon-roadfuelefficiency.

Reduction of vehicle noiseIsuzuisengagedinthedevelopmentofnoisereductiontechnologytomeetfutureJapaneseandoverseasnoiseregulations,andthetimelyintroductionontothemarketofsoundregulationcompliantvehicles.

Reduction of environmentally hazardous substancesIsuzuisaddressingthefurtherreductionofenvironmentallyhazardoussubstancesandthereinforcementofitsmanagementsystemusingIMDS.

Improvement of air-conditioning refrigerantIsuzuisengagedindevelopinganewrefrigerantsystemsuitableforbusesandtrucks.

Promotion of recyclingIsuzuisengagedinthepromotionofrecycling-orienteddesignthatwillcontributetothemoreeffectiveuseofresources.

Promotion of in-vehicle VOC reductionIsuzuiscommittedtoreachingtargetsoftheJapanAutomobileManufacturers’Association(JAMA)forreducingin-vehicleVOCemissions.

Development and diffusion of next-generation vehiclesIsuzuisaddressingthemarketpenetrationofnext-generationvehicles,includingxEVs*andnaturalgasfueledvehicles,whichhelptoimprovetheglobalenvironment.*xEVisthegenerictermforelectricvehicles(HEV,EV,etc.).

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http://www.isuzu.co.jp/cv/env/car/index.html

https://www.isuzu.co.jp/world/product/index.html

Diffusion of next-generation vehiclesBotheconomicsanduser-friendlinessarerequiredofcommercialvehicles,whichareproductiveassets.Lookingatthepowersources,webelievethatdieselinternalcombustion

engines,includingbiofuelandhybridconfigurations,willremainapromisingsourceintothefuture.However,thereisalsopotentialforuseofnaturalgasorelectricitydependingonthemarketandapplication,sowearecommit-tedtodevelopingtechnologiesthatdeliveragoodbalanceofvehiclestypesthatrunonawidevarietyofenergies.

DeuSEL® Project: Looking for next-generation fuelsInordertoremainaleaderintransportationinthefuture,Isuzuhasstartedwork-ingonbio-dieselfuel.Webelievethattherewillbeaneedforlowcarbon,sustain-ablenext-generationfuels,andthatbio-dieselwillbeavaluableoption.In2014,welaunchedtheDeuSEL®Project,originallyajointresearchinitiativethatledtotheworld’sfirstlaunchofanext-generationbio-dieseltrialinDecember2018.Goingforward,theDeuSEL®Projectwillworktoincreasethenumberof

interestedbio-fuelmanufacturersandusersacrossJapan,andwillsupporttheGREENOILJAPANdeclarationofJapan’seuglenaCo.,Ltd.topromoteJapanasanadvancedbiofuelnation.Wewillalsocontinueon-roadtrials.

JointannouncementbycompaniesandorganizationssupportingtheGREENOILJAPAN

DeuSEL® Projecthttp://www�deusel�jp/

Elf EV operation monitoring startedIsuzuhasstartedmonitoringoperationoftheElfEV,whichisbasedonthelight-dutyElftruck,forthepurposeofexpandingitsrangeofvehicleswithenvi-ronmentalpowertrains,asisrequiredofcommercialvehiclemanufacturers.Throughthismonitoringactivity,weaimtoensurenotonlyenvironmental

improvementbutalsotheoriginaltruck’seconomicsanduser-friendliness,whiletargetingthegoalofcommercialization.

Policy and approach to clean technologiesIsuzuconsidersitsmissionisco-existenceandharmonywiththeglobalenvironment,andpreparationsforsustainableenergysupplyanddemand,andfuelsecurity.Wedeveloptechnologiesinthebeliefthattransportinggoodsandpeople

withfewCO2emissionsisimportantforcommercialvehicles.

ElfEV

Publicity announcement of monitoring launchhttps://www�isuzu�co�jp/press/2019/2_13�html

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http://www.deusel.jp/

https://www.isuzu.co.jp/press/2019/2_13.html

ToreducetheenvironmentalloadoftheIsuzuGroup’sproductionactivities,itsmanufacturingcompaniesinJapanandoverseasallworktogethertoreducetheenergyandresourcesused,theamountsofharmfulchemicalsubstances,andthewastegeneratedduringmanufacturing.

Promoting green production activitiesCO2 emission reduction activitiesByincreasingtheefficiencyofprocessesinallofourGroupcompanies,review-ingandproperlymanagingouroperationmethods,andpromotingthevisual-izationofourenergyusage,wewereabletosignificantlyreducetheamountofenergyused.WeareproducingsubstantialresultsovertheentireIsuzuGroupbyreviewingourconventionaloperationmethodstodiscoverfurthertypesofenergyconservationactivities,anddeployingthemacrossourcompanies.

Waste reduction activitiesAswellascarefullyseparatingwasteonaroutinebasis,Isuzualsotakesapositiveapproachtowastereductionactivities.Additionally,wearereduc-ingtheamountsofmaterialsthemselveswhichareusedbyproperlymanag-ingtheusageofthosematerialsandpromotingshiftstoreturnableitemsaswellasmaterialrecycling.WearemakingactiveeffortsasaGrouptowardfundamentalresourceconservationactivitieswhichinvolvereducingtheamountofwastethatisgenerated.

Chemical substance reduction activitiesWearetakingtheleadtoworkonactivitiestoreplacechemicalscontaininghazardoussubstancesthatcouldhaveanenvironmentalimpact,withchemi-calsnotcontainingsuchhazardoussubstances.Whilereplacingthesub-stancesweusewiththosewhichhavelesspotentialforharm,wearereducingtheactualamountsofchemicalsubstancesusedbyreviewingourprocesses.

Activities to control emissions of ozone depleting substancesWearepromotingactivitiesaimedatcontrollingtheemissionofozonedeplet-ingsubstancesthroughouttheIsuzuGroupbyreinforcingtheinspectionoffacilitiesusingCFCs,andinstallingnon-CFCequipmentduringfacilityupgrades.

Addressing the environment in production activities Isuzu Group Energy-Saving & 3R AwardsAmongproduction-relatedGroupcompanies,theIsuzuGroupEnergy-Saving&3RAwardhavebeenimplementedsinceFY2013.Entryactivitiesrelatedtoenergyconservationor3RimprovementsaregatheredfromwithintheIsuzuGroup,mainlyitsProductionDivision,thebestofwhichreceiveanaward.ExamplesofentriesaresharedthroughouttheIsuzuGrouptopro-motehorizontaldevelopment.TheseawardsareaimedatprovidingfurthermomentumtotheGroup’senvironmentalactivities.

FY2018 Energy-Saving Award▶NotreceivedinFY2018

FY2018 3R AwardReduction in volume of circulated water in compressors (Isuzu)Throughtherepeatedcycleofheatingandevaporatingfollowedbycoolingandrecirculating,thecoolingwaterusedbyequipmentintheplanttopro-ducecompressedairbecomesconcentrated,eventuallyleavingbehindonlyimpurities.Therefore,theFujisawaPlanthasbeenconstantlyreplenishingitssupplyofindustrialwaterbypumpingupgroundwater.However,waterisalimitedresource.Inordertoreducetheamountofwater

used,theplantstartedusingwaterwithalowamountofimpurities(deionizedwater),whichresultedincoolingwaterthatishardertoconcentrateandcre-atedasignificantreductionintheamountofwaterusedbytheplant.Asanadditionaleffectofthisinitiative,thereductioninwaterusagehas

alsoreducedtheamountofwastewaterproduced,theloadonwastewatertreatmentequipment,andtheamountofpowerandchemicalsrequiredforthetreatmentprocess.Becauseofitshighcost,wedidnotpreviouslyconsiderusingdeionized

waterascoolingwater.Byevaluatingitsoveralleffectivenessthough,werealizedthepositiveoutcomesthatwecouldachieve.Goingforward,wewillcontinuetothinkoutsidetheboxasweimplementarangeofactivitiesaimedateliminatingwaste.

Awardwinningmembers

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TopromoteenvironmentalconservationintheIsuzuGroup’ssalesactivities,itsdistributorsallworktogethertoconductgreensalesandengageinenvi-ronmentalload-reducingactivities.

Environmental load-reducing activities of Isuzu dealers in Japan

Efforts to increase environmentally friendly sitesIsuzuistryingtoincreaseitsenvironmentallyfriendlysitesbyactivelyinstall-ingLEDlightingorskylights,andintroducingreusableenergysystems,whenrenovatingorbuildingnewsalesoffices.Atnewlybuiltsites,wearepromot-ingtransitionstowatertreatmentfacilitiesthataremoreenvironmentallyconsciousthanexistingones,byinstallingbiologicaleffluenttreatmentequipmentfortreatingwaterdischargedduringvehiclemaintenanceorvehiclewashing.

Examples of newly established sites with environmental awareness

Environmental improvement activities in JapanIsuzusalesofficesareoptimizingtheirenvironmentaleffortsthroughevaluationsusingtheirownenvironmentalchecksheetsandpromotionofimprovementactivities.IsuzuaimstoincreaseitsenvironmentallyfriendlydistributorsbyenteringandwinningmoreawardsundertheEco-friendlyAutoRepairShopawardssystemoftheregionaltransportbureausoftheMinistryofLand,Infrastructure,TransportandTourism.

Environmental initiatives in sales activities

IsuzuMotorsTohokuMoriokaBranch IsuzuMotorsTohokuFukushimaBranch

Organizing of green sales activities in JapanIsuzudistributorsaredoingalltheycanfortheenvironmentintheiroverallbusinessactivities.Theyarecontinuouslyaddressingallpossibleenvironmentalactivities,

suchasusinghybridvehiclesandotherenvironmentallyfriendlyvehiclesasnewcompanycars,implementingtheCoolBiz,WarmBiz,andLightDowncampaigns,andholdinglocalareacleanupactivities.

Running courses on fuel efficient and safe driving seminarConsideringthelifecycleofIsuzuproducts,thelargestCO2emissionscomefromusingproducts(vehicles).TheIsuzuGrouphasbeenholdingseminarsonfuel-efficientdrivinginJapanandoverseassince1995,toinformcustom-erswhohaveboughtanIsuzuvehicleaboutwaysofdrivingmoreefficientlyaccordingtotheperformanceoftheirvehicle.

Track record over the past 3 yearsFiscal year Courses No. of Participants

FY2018 116 1,552FY2017 162 2,270FY2016 167 2,447

*DuetotheimpactoftheHokkaidoEasternIburiEarthquake,courseandparticipantnumbersforFY2018werelowerthanaverage.

Safeandecologydrivingpracticeinsession

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TheIsuzuGroupaimstoachieveexcellentenvironment-relatedcommunica-tionwithitsvariousstakeholders,includingitscustomers,businesspartners,surroundingareas,shareholders,investors,andemployees.Todoso,weparticipateinenvironmentalactivitiesinsurroundingareasandactivelyreleaseenvironmentaldata.Byenhancingourenvironment-relatedcommunication,theIsuzuGroup

aimstopromotegreaterrecognitionandunderstandingofourenvironmen-talactivities,sowemaycarryoutfurtherimprovements,andtodevelopouremployeesintooutstandingmembersofsocietybyactivelyreleasinginfor-mationwithinourcompanytoraisetheirawareness.

Replies to CDP2018Inordertoproperlydiscloseitsmeasurestoaddressclimatechange,IsuzuhasprovidedinformationsinceFY2016totheCDP,anorganizationthatevaluatescorporateeffortsrelatedtoclimatechange.Forthesecondyearinarow,wereceivedascoreofA-inFY2018.Inaddi-

tiontoclimatechangeresponses,wealsostarteddisclosingwaterinformationinFY2017andforestmanagementinformationinFY2018,inanattempttoachievebroaddisclosureofourenvironmentalmanagementactivities.Wewillcontinuetofurtherimproveouractivitylevelsandmakeproactive

effortsininformationdisclosure.

Third-party audits of environmental dataWithincreasingdemandsfortransparencyandtrustinenvironmentalinfor-mation,Isuzuhasbeenconductingthird-partyauditsofitsenvironmentaldatasince2017.TheauditwasconductedincompliancewithISO14064-3forCO2and

withISAE3000forwasteandwaterresources,andtheevaluationhasbeenfullycompleted.Wewillremainawareoftheimportanceofenvironmentaldataandpracticehigh-credibilitydisclosure.

Enhancement of environmental information disclosure Participation in Project for Arrangement of Infrastruc-ture for Environmental Information Disclosure

SinceFY2016,IsuzuhasbeenparticipatingintheMinistryoftheEnviron-ment’sProjectfortheArrangementofInfrastructureforEnvironmentalInformationDisclosure,designedtopromotedialogwithinvestorsandothergroups.Wepublishourenvironmentalinformationontheproject’sportalsite.Participatinginthisprojecthasenabledustohavemorefre-quentindividualdialogswithinvestors,etc.,helpingustopromoteourenvironmentalinitiatives.

Presenting our environmental initiatives to members of local communities

InOctober2018,weorganizedatouroftheFujisawaPlantandinvited68keymembersfromsixlocalresidentsassociationsaroundtheplant.WepresentedtheenvironmentalinitiativesofIsuzuandtheFujisawaPlant,andtheparticipantswereallowedtoobservetheassemblylines.ThisanannualeventisaninvaluableopportunitytopromoteabetterunderstandingoftheenvironmentalinitiativesandothervariousactivitiesofIsuzuamongmem-bersofneighboringcommunities,whosecooperationisvitaltous.Wereceivedverypositivefeedbackfromparticipants,sayingthatit

helpedthemtounderstandIsuzu’sinitiativesbetter.Itisalsoanimportantopportunitytoimproveourcommunicationwiththem.

Communication with Local Communities

Apresentationonourenvironmentalconservationactivities

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IsuzuhasbeenprovidingallemployeeswithcommoneducationalprogramsontheenvironmentsinceFY2016.Thisenvironmentaleducationinitiative,coveringallIsuzuemployees,is

organizedonceeverythreeyears,raisingawarenessofenvironmentalissuesamongemployeesandpromotingabetterunderstandingthecompany’senvironmentalactivities.Aspartofourenvironmentallyconsciousinitiatives,thisprogramcombinese-learningandcollectivelectures,reducingtheCO2emissionsgeneratedbythetransportationforemployeestoparticipateintheprogram.Similarly,theintroductorytrainingprogramsfornewandmid-career

recruitsincludesthiscommonenvironmentaleducationalprogram,whereparticipantslearnthereasonsbehindIsuzu’senvironmentalinitiativesandconsiderwhattheyshoulddoasmembersofIsuzu.Wealsoprovideenvironmentallawsandregulationstrainingandinternal

environmentalauditortrainingtodeepenemployees’understandingandmakethemmorecompetent.

InFY2018,theIsuzuGroupformulatedanewIsuzuGroupPolicyonBiodiver-sitywhilereferringtomaterialssuchastheMinistryoftheEnvironment’s“GuidelinesforPrivateSectorEngagementinBiodiversity”andthe“DeclarationofBiodiversitybyKeidanrenandActionPolicy.”IthasbeenpromotingthispolicyinternallysinceFY2019,withtheofficesofeachcompanywithintheGroupalsoconductingactivitiestoprotecttheuniquenaturalenvironmentsintheirrespectiveareasandpromotingtheconservationofbiodiversity.

Environmental Education

Conservation of biodiversity

Biodiversity conservation activity on the plant sitesIsuzuconductedexpert-ledbiodiversitysurveysonthesitesoftheFujisawaandTochigiPlants.Theresultsrevealedthattheforestswereneglectedonbothsites,negativelyimpactingontheirfunctionashabitatsforlocalspecies,andtheecosystemwaslosingitsequilibriumwhileforeignspecieswerethriving.Inresponsetotheseresearchresults,volunteeremployeesstartedwork-

ingonsitemaintenanceinFY2016andhavecontinuedeffortstorestorethesoundforestenvironmentsincethen.Arecentinvestigationhasfoundthattheseeffortshavehelpedtodiminishtheforeignspeciesandthattheeco-systemisgraduallyregainingitsequilibrium.Wewillcontinuetheseinitiativesinthefuture,leveragingexperts’opin-

ions,torestoreandconserveanevenricherecosystem,andwewillmain-tainanenvironmentthatallowsustocontinueouroperations.

FujisawaPlant:Clearingbambooandpickingupleaves Aftercompletionofactivity

TochigiPlant:ConservationofaJapaneseredpineforest Japaneseredpineforestaftercompletionofactivity

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Participating in tree-planting at the former Ashio copper mine

SinceFY2015,IsuzuTochigiPlantemployeeshavebeenparticipatingintreeplantinginthehillsoftheAshiodistrict,whichweredevastatedbysmokepollutioncausedbytheAshiocoppermine.Itissaidthatitwilltakemorethan100yearsforthegreenerytofully

returntothehillsofAshio,andsovolunteersfromwithintheprefecturehavebeeninvolvedintreeplantingactivitiestheresince1996.Isuzuhad16volunteersparticipateinthe24thSpringTree-PlantingDayheldonApril2019,plantingtreesonsteephills.Seeingthesceneryofthedevastatedhillsbeforetheireyesofferedtheparticipantsavaluableoppor-tunitytoreexamineenviron-mentalissuesnearby.

Participating in activities to develop forests that supply water in Kanagawa Prefecture

Isuzu’sFujisawaPlanthasbeenparticipatingintheforestrestorationpartneractivitiesoftheKanagawaCreatingForestsforWaterSourcesProjectsinceFY2018,includingawatersourceforestconservationactivityintheYadoriki,AshigarakamiDistrict,inDecember2018.Thirty-sixemployeesandtheirfamilieshelpedthintheforestandconduct

natureobservationactivitiestoreturntheneglectedforesttoitsnaturalstate,whichrein-forcedtheimportanceofnatureandofconservingthewatersourceforestsonwhichourlivesdepend.

Treeplantingparticipants

Thinningtheforest

TheIsuzuGroupconsiderstheconservationofwaterresourcestobepartofitskeyenvironmentalissues,sowepromotecontributoryactivitiestobuildasocietyfreeofwaterstress,whereallpeoplecanhaveaccesstosafewaterwithoutconcern.

Isuzu Gives Water�for LifeWiththoughtsoftheIsuzuRiverfromwhichIsuzutookitsname,21IsuzuaffiliatesandpartnersinThailandhavebeenparticipatingsince2013intheIsuzuGivesWater...forLifeprojectthatdeliverswatertreatmentsystemstoschoolsinruralareas.AsofMay2019,theprogramhasbeenimplemented33times.Throughtheprogram,watertreatmentsystemsareinstalledatschoolsin

areaswherethewateriscontaminated,givingtheschoolaccesstodrink-ablewater.Teachersandstudentslearnhowtomanageandmaintainthesystemsothatthedrinkingwaterwillbeensuredforgood.Runincollabora-tionwithThailand’sDepartmentofGroundwaterResources,theprogramhasbeenthesubjectofgreatinterest,includingbeingchoseneveryyearsince2015astheBestCSRProjectaspartofThailand’sCaroftheYearawards.Wewillcontinueparticipatingintheseactivitiestohelpimprovethelives

ofpeopleinschoolsandtheirneighboringcommunities.

Conservation of Water Resources

Withtheschoolchildren

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IsuzuGroup’scompaniesinThailandareinstallinglargephotovoltaicpowergenerationsystems.InAugust2018,IsuzuEngineManufacturingCo.,(Thailand)Ltd.(IEMT)

startedgeneratingpowerusinga980kWsolarpanelsystem,whileotherGroupcompaniesinThailandareplanningtoexpandtheiruseofphotovol-taicpowergenerationsystemsinthefuture.

Using renewable energy

IsuzuEngineManufacturingCo.,(Thailand)Ltd.(IEMT)solarpanels

IsuzuEngineManufacturingHokkaidoCo.,Ltd.isworkingtoreduceitsresourceinputs,andtheenergyitusesinproduction,initsengineandpartsrebuildingoperations.Rebuildingincludesthedisassemblyofusedparts,cleaningandinspec-

tion,replacementofwornpartswithnewones,andreassembly.TheIsuzuGroupprovidescustomerswithrebuiltproductsthatmeetthesameinspec-tioncriteriaasnewpartsstraightofftheproductionline,meaningproductsthatarebetterfortheenvironmentbutmaintainthesamehighquality.Weaimtocontinueofferingrebuildsinoureffortstofurtherreducetheresourceandenergyinputsinouroperations.

Initiatives for reducing resource inputs

Rebuiltengineinthemidstofbeingreassembled

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WeactivelyengageinactivitiestomitigateCO2emissionsbothinJapanandoverseas,meetingourtargetsconsecutively.TheJapanproductiongrouprevieweditstargetlevelinFY2017and

changedtheindextoabsolutevolume,whichwasmoresuitabletoillustratetheresultsofcarbonmitigationmeasures.InFY2018,group-wideproduc-tionincreasedfromFY2017,andforthisreason,energyconsumptionalsoincreased.Asaresult,thetotalCO2emissionsforallaffiliateproductioncompaniesinJapanincreased3%comparedtoFY2017.However,wehaveachievedouroveralltargetbydiligentlypursuingthe

enhancementofefficiency,suchasstreamliningproductionlines,selectingenergy-efficientmodelsfornewlyinstalledequipment,andothermeasurestoreduceenergyconsumption.

CO2 Emissions Mitigation Activities

Mid/Long-term target:[Japan]BringthetotalCO2emissionsdownto510,086tons-CO2or

lowerbyFY2018[Overseas]Pursueeachcompany’sowninitiatives

FY2018 achievements:[Japan]TotalCO2emissions:464,479tons-CO2

185185

186186

143143

182182

178178

141141

182182

174174

146146

194194

259259

160160

196196

268268

171171

371371 360360 356356

453453 464464

600

400

200

0

(1,000 tons)

(FY)2015Isuzu main Domestic production group Overseas production groupTotal domestic emissions

2016 2017 20182014

[Japan＆Overseas] Trends in CO2 emissions

TheJapanproductiongrouprevieweditstargetlevelinFY2017andchangedtheindextoabsolutevolume,whichwasmoresuitabletoillustratetheresultsofwastereductionmeasures.InFY2018,group-wideproductionincreasedfromthepreviousfiscalyear,andforthisreason,production-re-latedindustrialwastealsoincreased.Asaresult,thetotalwastegeneratedbyallaffiliateproductioncompaniesinJapanincreased7%comparedtoFY2017,failingtomeetthetarget.Wewilltryhardertopromoterecyclingandreviewproductionmethods

toreducewastegenerationtomeettargetsinthefuture.

Waste reduction activities

Mid/Long-term target:[Japan]Bringtotalwastedownto85,647tonsorlessbyFY2018[Overseas]Pursueeachcompany’sowninitiatives

FY2018 achievements:[Japan]Totalwastegenerated:90,471tons

7,8037,803

83,72283,722

7,1657,165

77,41177,411

6,5956,595

75,56675,566

5,7375,737

79,18979,189

5,9515,951

84,52084,520

91,52591,52584,57684,576 82,16182,161 84,92684,926 90,47190,471

100,000

80,000

60,000

40,000

20,000

0

(tons)

(FY)2015Isuzu main Domestic production group

2016 2017 20182014

Total domestic emissions

[Japan] Trends in waste generation

FY2018 Activity Results (Isuzu Group)

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Environmental Performance Data30


TogetherwiththerevisionofISO14001inFY2015,wehaveintegratedallenvironmentalmanagementsystems(EMS)beingpursuedateachsite.InDecember2016,weexpandedISO14001certificationtoallIsuzusites,andshiftedtoISO14001:2015.Now,Isuzuiscarryingoutuniformenvironmentalinitiativesatallsites,

makingconcertedeffortstoreducetheenvironmentalloadderivedfromourbusinessoperations,andbolsteringourenvironmentalmanagement.OuraffiliatecompanieswithISO14001certificationalsoupdatedtothe

2015versionsonebyone,andallofthemarenowuptodate.

Violations and Accidents related to Environmental Laws and Regulations in FY2018

IsuzuhadnoviolationsorenvironmentalaccidentsrelatedtoenvironmentallawsandregulationsduringFY2018.

InresponsetotheActforControlofChlorofluorocarbonEmissions(ActonRationalUseandProperManagementofFluorocarbons)effectivefromApril2015,Isuzuispromotingproperrefrigerantmanagementforbusiness-userefrig-erationairconditioningequipmentandotherequipmentusingchlorofluorocar-bonsatallofitsbases,andisimplementinginspectionsofallsuchequipment.Whilethisactrequiresbusinessoperatorstoreportiftheirestimated

leakageofchlorofluorocarbonexceeds1,000tons-CO2/year,Isuzuhasveri-fiedthatitsleakagevolumeforFY2018waslowerthanthislevel.

IneffortstoreducetheenergyconsumptionandmitigatethetotalCO2emissions,boththeFujisawaandTochigiPlantshaveputinplacemeasurestoenhanceeffi-ciency,suchasreviewingtheproductionconditionsandstreamliningproductionlines.Wepromoteamodalshiftinthedistributionofpartsandproducts,

therebyimprovingtransportationefficiency,withallaffiliatecompaniesengaginginlogistics,inordertoreduceourCO2emissions.

Isuzu’s Environmental Management Systems

Initiatives to Control Chlorofluorocarbon Emissions

CO2 Emissions Mitigation Activities

233,128233,128 229,287229,287 221,526221,526 217,714217,714

148,000148,000 142,366142,366 136,608136,608 133,024133,024

81,40081,400 83,61483,614 81,14681,146 80,53080,530

3,7283,728 3,3073,307 3,7723,772 4,1604,160220,462220,462

133,882133,882

82,58282,582

3,9983,998

250,000

200,000

150,000

100,000

50,000

0

(t-CO2)

(FY)2015Fujisawa Plant Tochigi Plant Omori Headquarters, etc.

2016 2017 20182014

Trend in CO2 emissions from energy

39,65839,658 39,69839,698 39,26739,267 37,76837,768 37,41337,413

50,000

40,000

30,000

20,000

10,000

0

(t-CO2)

(FY)2015 2016 2017 20182014

Trend in CO2 emissions from logistics

4,3814,381 4,2984,298 4,2644,264 4,2354,235 4,3374,3375,000

4,000

3,000

2,000

1,000

0

(TJ)

(FY)2015 2016 2017 20182014

Trends in energy consumption

FY2018 Activity Results (Isuzu)

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Byproperlymanagingboilersandothersuchplantfacilitieswhichproducesootandsmoke,wemeasuretheamountsofairpollutantssuchasNOx(nitrogenoxides)andSOx(sulfuroxides)inouremissiongases,toconfirmthattheyarewithinregulatedvalues*.Furthermore,wastewaterfromourfactoriesisprocessedbytreatment

equipmentbeforebeingdischargedtosewersystemsandpublicwaterareas.Thedischargedwaterisanalyzedonaregularbasisandconfirmedtobewithinregulatedstandardvalues.

Proper Management of Emissions and Wastewater

*Regulatedstandardvaluesaredeterminedusinglawsorordinances,whicheveristhestricterregulation.

Fujisawa Plant: 8 Tsuchidana, Fujisawa City, Kanagawa Prefecture[Air]

Item Equipment Regulatory value

Measured ValueMaximum Average

NOx（ppm）

Boilers 60 20 14.2Metalmeltingfurnaces 180 32 27Paintbakingfurnaces 230 125 110.5

Sootanddust（g/Nm3）

Boilers 0.3 0.001 0.001Metalmeltingfurnaces 0.2 0.001 0.001Paintbakingfurnaces 0.2 0.004 0.003

*Sinceallfacilitiesproducingsootandsmokeusecitygasastheirfuel,SOxisexcludedfromthescopeofmeasurement.

[Water quality] Discharge destination: Hikiji River

Item Regulatory value

Measured ValueMaximum Minimum Average

pH 5.8-8.6 8.0 7.2 7.7COD(mg/L) 60 39.0 11.0 26.3BOD(mg/L) 60 27.0 1.9 16.0SS(mg/L) 90 30.0 5.0 8.5Oilcontent(mg/L) 5 3.0 1.0 1.3

IsuzuiscurbingemissionsbytherecoveryofVOC(volatileorganiccom-pounds),andhasreducedVOCemissionsfromitsplantsandreviewedandimproveditspaintingprocesses,whichhaveparticularlylargeVOCemissions.

Tochigi Plant: 2691 Hakuchu, Ohira-Machi, Tochigi City, Tochigi Prefecture[Air]

Item Equipment Regulatory value

Measured ValueMaximum Average

NOx(ppm)

Boilers 150 74 34Metalheatingfurnaces 180 150 54Gasengines 600 145 145

SOx(Nm3/h) Totalvolumeregulation 14.5 2.1 0.6

Sootanddust(g/Nm3)

Boilers 0.1 0.004 0.001Metalheatingfurnaces 0.2 0.005 0.002Gasengines 0.05 0.002 0.002

[Water quality] Discharge destination: Nagano River

Item Regulatory value

Measured ValueMaximum Minimum Average

pH 5.8-8.6 7.6 7.2 7.3BOD(mg/L) 20 18.2 1.1 3.4SS(mg/L) 40 11.2 1.6 2.1Oilcontent(mg/L) 5 0.7 0.0 0.1*TheCODisexcludedfromthescopeofmeasurementasplantwastewaterisdischargedintorivers.

VOC emission reduction activities

637,038637,038 642,112642,112 579,084579,084 561,200561,200 606,389606,389

800,000

600,000

400,000

200,000

0

(kg)

(FY)2015 2016 2017 20182014

Trend in total VOC emissions

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Astheprocessesofvehiclemanufacturing,plantmaintenanceandeffluenttreatmentconsumealargequantityofwater,Isuzupursuesactivitiestocon-servethesefinitewaterresources,suchaspromotingtheuseofrecycledwaterintheprocessesandeffluenttreatmentaswellassavingtheusedwater.

However,giventhatrecenteventsofextremeweatherposeincreasedwater-relatedriskstoourplant/businessoperations,Isuzustartedsurveyingwater-relatedrisksinFY2015usingAqueduct,aglobalwaterriskevaluationtool.Asaresult,wehaveverifiedthattherearenourgentissuesintermsof

Isuzu’susageofgroundwaterandpublicwater.However,someriskswereidentifiedwithplantoperationsandsupplychainsintheeventoftorrentialrainsandextremeweather,dependingongeographicalandothercondi-tions.Inresponsetothesefindings,wehaveimplementednotonlymea-surestoreducewaterresourceconsumptionbutalsoactivitiestomitigatewater-relatedrisksinviewoftheplant/businessoperations.

Water consumption reduction activities

68.768.7

2,029.62,029.6

67.067.0

2,109.42,109.4

66.066.0

2,105.92,105.9

56.856.8

2,040.12,040.1

47.647.6

2,132.62,132.6

2,500

2,000

1,500

1,000

500

0

(1,000m3)

(FY)2015Public water

* As water resources were redefined and the calculation method updated internally in FY2017, the actual figures for up to FY2016 differ from those printed in pre-FY2017 CSR reports.

Industrial water2016 2017 20182014

Trends in water resource consumption (*excludingOmoriHeadquarters)

Topreventhealthhazardsresultingfromlandcontamination,IsuzuperformsstudiesonlandcontaminationconditionsbasedontheSoilContaminationCountermeasuresActandordinanceswhencarryingoutnewconstructionorconstructionworklargerthanaspecifiedscale.InFY2018,weconstructedthefoundationsforvariousequipment,the

demolitionofbuildings,andotherfacilitiesintheFujisawaarea.Wealsoperformedgroundcontaminationsurveysandverifiedthattherewasnosoilcontamination.

Managing land contamination

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Isuzupromotesrecyclingofthewastegeneratedthroughitsbusinessopera-tionsandpursuesactivitiestoreduceandmitigatethegenerationofwasteandusablewastes.Wealsoobserveused-carrecyclingpursuanttotheAutomobileRecycling

Law(theActonRecycling,etc.ofEnd-of-LifeVehicles),aswellastherecy-clingofthethreedesignateditems(ASR,airbags,andchlorofluorocarbon).Isuzucontinuesitsdiligenteffortstoreducewasteproductionthroughout

productlifecyclesandfindingeffectiveusesforthem,tocontributeasamemberofsustainablesociety.

Waste minimization activities

*Isuzuhasalreadyachievedzeroemissions,withnolandfillsince2011.

5050

70708585

94.894.897.797.7 97.597.5 97.997.9 98.098.0

94.394.397.897.8

93.593.5 93.693.6 93.993.9100

80

60

40

20

0

Recycling rate (%)

(FY)ASR standard value

* The ASR standard value was lifted from 50% to 70% in FY2015.

ASR recycling rateStandard value for airbags Airbag recycling rate

2015 2016 2017 20182014

Trends in recycling performance based on the Automobile Recycling

7,3377,337

394394

7,2357,235

382382

6,2046,204

385385

5,3825,382

355355

5,5745,574

370370

87,28187,281 84,35484,354 77,27277,272 76,56276,562 80,98080,98010,000 100,000

8,000 80,000

6,000 60,000

4,000 40,000

2,000 20,000

00

Valuables emissions (tons) Waste emissions (tons)

(FY)Industrial waste Ordinary waste Valuables

2015 2016 2017 20182014

Trends in waste production (*excludingOmoriHeadquarters)

About recycling Isuzu Vehicles (Japanese only)https://www�isuzu�co�jp/company/csr/recycle/index�html

About initiatives related to the Automobile Recycling Law (Japanese only)https://www�isuzu�co�jp/company/csr/recycle/activity/index�html

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https://www.isuzu.co.jp/company/csr/recycle/index.html

https://www.isuzu.co.jp/company/csr/recycle/activity/index.html

Toconductenvironmentalactivitiesefficientlyandcontinuously,Isuzuhasaddedupitsenvironmentalconservationcostsandenvironmentalconserva-tioneffects.Wehavedisclosedinformationwiththeaimofhelpingmakemanagement

decisionstocarryoutefficientinvestmentinenvironmentalactivities,andasanevaluationindexforbusinesses.

Environmental accounting

Environmental conservation costs (Target period: April 1, 2018 to March 31, 2019)Totalinvestmentwas¥6,231million,¥2,434milliondowncomparedtoFY2017.Totalexpenseswere¥44,123million,¥565millionupcomparedtoFY2017.Detailsareshowninthetablebelow. (Unit:¥1million)

Investment Expenses Main activities

Businessareacosts

Pollutionpreventioncosts 0 155 Implementingairpollutionprevention,watercontaminationprevention,etc.

Globalenvironmentalconservationcosts 929 700 Implementingenergy-savingactivities,climatechangestrategy,etc.

Resourcerecyclingcosts 57 447 Implementingproperdisposalofwaste,upgradestowastedisposalsites,etc.

Upstream/downstreamcosts 0 3,114 Implementingreuseofusedautomobiles,promoting3Rsforwaste,etc.

Managementactivitycosts 0 334 Promotingenvironmentalmanagement,updatingsystemforgatheringinforma-tionsuchasenvironmentaldata,etc.

R&Dcosts 5,246 39,404 R&Dofeco-friendlyproductsintermsofemissioncontrol,etc.

Socialactivitycosts 0 40 Supportingenvironmentalconservationactivitiessuchastreeplanting,donat-ingtoenvironmentalconservationorganizations,etc.

Environmentaldamagecosts 0 19 Leviesonpollutionimpact,conservationmeasuresrelatedtosoilandground-waterpollution,etc.

Total 6,231 44,213

Environmental conservation effects (Target period: April 1, 2018 to March 31, 2019)

Category Kind of effect Effect

Economiceffect(millionsofyen)

Reductioninenergycostthroughenergyconservation 586

Profitonsaleofvaluables 2,220Quantitativeeffect(tons) CO2reduction(tonsofCO2) 7,305

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FY2018 Material flow (Isuzu only)

GHG emissions

INPUTRaw material input amount▶Iron&steel……………………………… 68,000tons▶Aluminum ………………………………… 9,000tons▶Rawmaterials ……………………… 230,000tonsEnergy input ……………………111,895kL(crudeoilequivalent)▶Powerconsumption ………… 331,317,000kWh▶Renewableenergy………………… 367,000kWh▶LPG ……………………………………………… 586t▶LNG …………………………………………… 16,033t▶Citygas ………………………………28,068,000m3

Water resource input ……………… 2,180,000m3

OUTPUT

Greenhouse effect gas▶CO2emissions ………………… 220,000tons-CO2

Emissions▶Waste……………………………………………5,900t▶Finallandfill ………………………………………… 0t▶Valuables …………………………………… 81,000tVOC emissions …………………………………… 606tWastewater …………………………… 2,180,000m3

Scope292,529t-CO2 0.3%

Scope1127,933t-CO2 0.4%

Scope332,739,919t-CO2 99.3%Output by category (Isuzu has no operations-related outputs in categories not listed below.)1. Purchasedgoodsandservices 4,911,174t-CO2

3. Fuel-andenergy-relatedactivities(notincludedinScope1or2) 33,513t-CO2

4. Upstreamtransportationanddistribution 17,241t-CO2

5. Wastegeneratedinoperations 6,381t-CO2

6. Businesstravel 1,078t-CO2

7. Employeecommuting 14,846t-CO2

9. Downstreamtransportationanddistribution 37,413t-CO2

10.Processingofsoldproducts 678,873t-CO2

11.Useofsoldproducts 27,039,004t-CO2

12.End-of-lifetreatmentofsoldproducts 397t-CO2

Throughaproductlifecycle(development,procurement,manufacturing,logis-tics,productoperation,anddisposal),Isuzureducesenvironmentallyhazardoussubstances.Theyareanalyzedineachprocesswithfocusontheoneslikelyhigh.

Business activity and environmental hazard

FromFY2018,wehavecalculatedGHGemissionsaccordingtoScope1,2,and3oftheGreenhouseGasProtocol(GHGP),andforeachoftheScope3categories.Wehavealsoobtainedexternalthird-partycertificationofourGHGPresults(seep.26).

*CO2emissionswerecalculatedaccordingtotheEnergy-SavingAct.

Development /Design

Procurement

Production

Transportation

Sales/use/service

Recycling

Products Shipped products in units………306,000(CVonly)

CO2 emissions from transportation … 37,413t-CO2

Recycling result▶ASR ………………………………………………97.8%▶Airbags……………………………………………94.3%

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