CSR Report 2019 - ISUZU · CSR activities that can meet the expectations of stakeholders and society. In this year’s report, we have reviewed our practice of information disclo-

CSRReport

2019

EDITORIAL POLICY � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 2MESSAGE FROM THE PRESIDENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3CORPORATE PROFILE � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4ISUZU’S CSR ACTIVITIES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7

ENVIRONMENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 18 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �18 ActivityReports � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �20 EnvironmentalPerformanceData � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �30

QUALITY � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 37 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �37 ProductQualityImprovement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �39 ServiceQualityImprovement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �43 OperationalQualityImprovement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �49

RESPECT FOR EMPLOYEES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 51 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �51 Industrialhealthandsafety � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �52 UtilizationofDiverseHumanResources � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �55 PersonnelDevelopment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �58 ImprovingEmployeeSatisfaction � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �62 Labor-managementRelations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �63

KEY ISSUES FOR ISUZU �� 9

SUPPLY CHAIN MANAGEMENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 64 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �64 ActivitiesforWin-winRelationshipswithOurBusinessPartners � �67 VariousGuidelinesforBusinessPartners � � � � � � � � � � � � � � � � � � � � � � � � � � � � �69 CommunicationwithBusinessPartners � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �72

CONTRIBUTIONS TO LOCAL COMMUNITIES AND SOCIETY � � � � 73 ManagementApproaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �73 AddressingPoverty � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �75 EducationalSupport � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �77 HarmonywithLocalCommunities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �79

GOVERNANCE � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 83 CorporateGovernance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �83 Compliance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �88 RiskManagement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �92

A THIRD-PARTY OPINION � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 94

GLOSSARY FOR GRI STANDARDS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 95

ISUZU MOTORS LIMITED CSR REPORT 2019Copyright (C) ISUZU MOTORS LIMITED1

CONTENTS

PublishedAugust2019(Previousreport:PublishedinOctober2018;Nextreport:scheduledforAugust2020)

GRISustainabilityReportingStandards*UnifiedinternationalguidelinesformulatedbyGRI(GlobalReportingInitiative),aninternationalNPO,inanattempttoimprovethequality,reliabilityandcomparabilityofthecontentofCSRreports

IsuzuMotorsLimitedhasnotundergoneanysignificantmajorchangesinscale,structureandownershipduringtheperiodofthisreport.

IsuzuMotorsLimitedCorporateCommunicationsDepartmentCSRPromotionGroupTEL：+81-3-5471-1384

Publication Information

Referenced Guidelines

Significant Changes within the Reporting Period

Inquiries about the Report

IsuzuCSRReportsarepublishedtoprovideanunderstandingofthe“import-antissuesforbothourstakeholdersandIsuzu,”withregardtotheCSRactiv-itiescarriedoutbytheIsuzuGroup.ThereportsareintendedtoreinforcecommunicationwiththeGroup’sstakeholdersandthustofurtherdevelopCSRactivitiesthatcanmeettheexpectationsofstakeholdersandsociety.Inthisyear’sreport,wehavereviewedourpracticeofinformationdisclo-

surewithreferencetotheGRIStandards,theinternationalguidelinesforsustainabilityreports,publishedinOctober2016.WehavealsoincludedinthisreportspecificinitiativesregardingthekeyissuesthatIsuzuGroupshouldaddressidentifiedinFY2017.

ThisreportdescribesactivitiesundertakenbyIsuzuGroup,withafocusonIsuzuMotorsLimited,andbyothergroupcompaniesinJapanandabroad.*“Isuzu”inthisreportrefersto“IsuzuMotorsLimited”alone*Fordetails,seeourSecuritiesReport

ThisreportincludesactivitiescarriedoutbetweenApril1,2018andMarch31,2019inprinciple.However,significantmattersinotherperiodsarealsopartlyincludedinthisreport.PleasevisittheIsuzuwebsiteforourFY2019businesssummaryandfinan-

cialinformation.

Scope of Report

Securities Report (Japanese only)https://www�isuzu�co�jp/investor/yuuka/index�html

Period Covered


Editorial Policy

https://www.isuzu.co.jp/investor/yuuka/index.html

thisreason,IsuzuandCumminsInc.enteredacomprehensivepartnershipinMay2019todevelopdesignsfornext-generationpowertrains.Inaddition,wedidnotjuststopatreducingCO2emissionsfromourvehi-

cles.WearealsoactivelyworkingoninitiativesthatonlyIsuzu,asanexpertvehiclemanufacturer,canachieve.Acrossthewholemanufacturingprocess,fromprocessingrawmaterialstoassemblingparts,operatingvehiclesanddisposingofthemafteruse,wearereducingrawmaterialsprocessingasmuchaspossibletoreduceenergyrequirements,andwearerebuildingindividualpartsandenginesafterdisposal.Toensurethetrustofallstakeholders,Isuzuimproveditscorporategov-

ernancestructureattheJune2019BoardofDirectorsMeetingbyestab-lishingtheNominationandRemunerationCommittee,whichactsasanadvisoryfunctiontotheBoardofDirectors.Theaimwastocreateastruc-turethatenablesevengreatertransparencyandaccountabilityinthecor-poratedecision-makingprocess.Inthefuture,wewillcontinuelookingintoenhancingourmonitoringfunctionaswell,withafocusongreateruseofexternaldirectors.Wewillcontinuelearningfromtheopinionsandrequestsofourstake-

holdersaswepursuevariousinitiativestorealizeasustainablesociety,andstrivetobeanexcellentandwidelybelovedcompanyofcommercialandlightcommercialvehicles,supportingsocietyintermsofpeople’slivesaswellasproduction.Wehopethatyouwillcontinuetosupportusevenmoreinthefuture.

IwouldliketoexpressourappreciationforyourcontinuedextraordinarysupportandunderstandingforIsuzu.JapanexperiencedanunusuallevelofnaturaldisastersinFY2018,includ-

ingtheheavyrainsinJuly2018andtheHokkaidoEasternIburiEarthquake.Therewerealsovariousgovernance-relatedissuesacrossanumberofindustriesthatreinforcedtheimportanceoftransparencyandaccountabilityinthedecision-makingprocessofcompanies.Againstthisbackdrop,stake-holderconcernshavealsoexpandedbeyondfinancialfigures,suchassalesandprofits,toincludenon-financialconcernsincludinginitiativesunderESG(environment,societyandgovernance)andtheUnitedNationsSustainableDevelopmentGoals(SDGs),withtheimportanceofESG-relatedinformationdisclosureincreasingenormously.AlongwithourcommitmenttoESGdisclosure,ourcorporatesocial

responsibilityactivitiesforFY2018includedadvancementofourkeyissues(materialities),whichweidentifiedinFY2017,totheconcreteactivityandKPIestablishmentphase.AnexampleofIsuzuresolvingsocialissuesthroughbusinesswasourkey

issueofimprovingtheproductivityofthelogisticsindustry.Throughaco-creationinitiativewithcustomersandbusinesspartners,wedevelopeda25mdoubletrailerconsolidatedtruck.Inthisway,wehelptoimproveefficiencyinthelogisticsindustryandresolvelaborshortagesbydoublingthecarryingcapacityofexistingtrucksandconsolidatingtrailersfromdiffer-entbusinessesintoasingletransportload.Anotherexamplewasourkeyissueofenhancingphysicaldistribution

flow,wherewearedevelopingadvancedsafetydevicestailoredtovehiclecharacteristicsandusageapplications.Inthecaseofthelight-dutyElftruck,whichisusedinurbanenvironments,detectionofpedestriansandobstaclesisveryimportant.Weaimtosupportdriverswithadvancedvisualsupporttechnologies,whichpromoteearlyavoidanceofdangers,inordertoreducebothaccidentnumbersandsubsequentdamage.Goingforward,wewillcontinueorganizingconcreteactivitiesthroughour

businessestoresolvesocialissues.AtIsuzu,ourultimatemissionistoprovidealogisticsinfrastructurefor

peopleandthings.However,thisgenerallyinvolvestheuseofinternalcom-bustionengines,whichimpactsnegativelyournaturalenvironment.Tocon-tinuedeliveringsocialvalueasaleaderintransportation,accordingtotheIsuzuCorporateVision,itisessentialthatwefocusmorethaneverondoingwhatwecantoimprovetheglobalenvironment,thatwepromoteenviron-mentalactivitiesthroughourbusinesses,andthatwecontinueenhancingactivitiestoreduceenvironmentalloadthroughlow-carbontechnologiesandresourcerecycling.Basedonthisawareness,westartedmonitoringthe“ElfEV”inFebruary

2019withtheaimofachievingpracticalapplicationofEVtrucksinadditiontothedevelopmentofCNGandLNGengines,andthecleandieselthatwehavebeenworkingonfromtheoutset.Webelievethathigh-efficiencycleandieselengineswillremainanimport-

antpowertrainchoiceforglobalcustomersinawiderangeofcommercialvehicleandindustrialapplications.Thisisespeciallytrueindevelopedcoun-trieswherepowertrainsareusedinheavy-dutyoperations,aswellasinemergingcountrieswheresocialinfrastructureconditionsaresevere.For

PresidentandRepresentativeDirector

Masanori Katayama

ISUZUMOTORSLIMITEDCSRREPORT2019Copyright(C)ISUZUMOTORSLIMITED3

Message from the President

Isuzu Corporate Vision

"Isuzu will always mean the best A leader in transportation, commercial vehicles and diesel engines, supporting our

customers and respecting the environment"

Mid/Long-term Vision

Support society in terms of people’s lives as well as production

Be an excellent and widely beloved company in CV, LCV, and power trains

Isuzu Corporate Mission

"Trust, Action, Excellence A global team delivering inspired products and services committed to exceeding expectations"

PRODUCTS: Explore genuine needs and create products and services with strong appeal

CONDUCT: Be responsible, dedicated, and agileORGANIZATION: Achieve goals through global teamwork

Name: ISUZUMOTORSLIMITED

Head Office: 6-26-1Minami-Oi,Shinagawa-ku,Tokyo140-8722JapanTel.:81-3-5471-1141(DirecttoGeneralAffairs&HRDept.)

President and Representative Director:

MasanoriKatayama

Establishment: April9,1937

Capital: 40.644billionyen(asoftheendofMarch2019)

Employees: 37,263(consolidated)/8,186(asofendofMarch2019)

Major Products: Heavy-medium-andlight-dutytrucks,buses,Vehicle&industrialdieselengines

Sales: 2,149,168million(consolidated)/1,130,825million(Isuzu)(yearendingMarch2019)

Operating profit 176,781million(yearendingMarch2019)

Ordinary profit 189,001million(yearendingMarch2019)

Consolidated current net income that belongs to the shareholders of the parent company:

113,444million(yearendingMarch2019)

No� of consolidated subsidiaries

92(asofMarch2019)

Corporate Profile


Corporate Profile

NorthAmerica6 sites

Central andSouth America4 sites

Oceania1 site

Japan23 sites

China10 sites

Asia23 sites

Europe9 sites

Middle Eastand Africa3 sites

Business deployment by region (Isuzu Group companies)TheIsuzuGrouphasestablisheddevelopment,manufacturingandsalesbasesnotonlyinJapanbutalsoworldwide,sharingourideasonMonozu-kuri,andpromotingthehomogenizationofourservicesandsupport.Atpresent,Isuzuproductsaresoldin120countriesandregions.TheElf,

forexample,theleadinglight-dutytruckbrandinJapan,isrecognizedastheglobalstandardamonglight-dutytruckshavingcapturedthetopshareinnumerouscountriesworldwide.OurD-MAXpick-uptruck,currentlybasedinThailandandexportedtomorethan100countries,isfurtherevidencethatconfidenceinIsuzuisspreadingworldwide.

Consolidated sales composition by region (year ending March 2019)

Consolidated sales composition by business categories (year ending March 2019)

Japan¥819.2billion

38%

Heavy-dutyvehicles¥483billion

22%

NorthAmerica¥166.8billion

8%

Others¥518.6billion

24%

Others¥432.8billion

20%

Partsforoverseasproduction¥57.3billion

3%

PT&Compo¥143.5billion

6%

Asia¥644.6billion

30%

Light-dutyvehicles¥1,032.3billion

49%

Heavy-dutyvehicles:Heavy-andmedium-dutyvehiclesLight-dutyvehicles:Light-dutytrucksandbusesPT&Compo:Vehicleandindustrialdieselengines

AsofMarch2019

2,149�2billion

2,149�2billion


Corporate Profile

Isuzu Society

1914 StartofWorldWarI

1916 [Founding]TokyoIshikawajimaShip-buildingandEngineeringCo.,Ltd.andTokyoGasandElectricIndustrialCo.(thepredecessorsofIsuzuMotorsLtd.)initiatedplanstobuildautomobiles1922 CompletedfirstdomesticallyproducedWolseley,amodelA-91936 CompletedJapan’sfirstair-cooleddieselenginesmodelDA4andmodelDA61937 [Establishment]EstablishedTokyoAutomobileIndustriesCo.,Ltd.,thepredecessorofIsuzuMotorsLtd.1939 StartofWorldWarII1949 ListedonTokyoStockExchange,andcompanynamealteredto“IsuzuMotorsLimited”

1950 StartofKoreanWar(startofeconomicboomduetospecialprocurement)1959 UnveiledcompacttruckELF1961 InauguratedFujisawaPlant1966 EstablishedIsuzuMotorsCo.,(Thailand)Ltd.1970 Unveiled4-tonpayloadtruckFORWARD1971 Signedcapitalagreementforfull-scaletie-upwithGeneralMotorsCorporation(GM)1972 InauguratedTochigiPlant

1992LawConcerningSpecialMeasuresforTotalEmissionReduc-tionofNitrogenOxidesandParticulateMattersfromAuto-mobilesinSpecifiedAreasestablishedinJapan

1993 StoppedproductionofIsuzupassengercars1994 Fullmodelchangeofheavy-dutytrucks,andlaunchedastheGIGAseries1996 Announcedheavy-dutysightseeingbusGALA1997 AgreementreachedforIsuzutoleaddevelopmentofdieselenginesfortheGeneralMotorsGroup Asianfinancialcrisis

1998 AgreementreachedforIsuzutotakeonthedevelopmentresponsibilityfortheGeneralMotorsGroup’scommercialvehicles

1999 GeneralMotorsraiseditsequityshareinIsuzuto49%throughathird-partyallocationFullmodelchangeofmedium-dutybuses,andlaunchedastheErgaMioandGALAMioseriesGovernor Ishiharaproclaimed“SayNotoDieselVehicles”strategy

2000 Fullmodelchangeofheavy-dutyrouteandfamilybuses,andlaunchedastheErgaseries2001 AnnouncedIsuzu’smedium-termbusinessplan“VPlan”;developedoperationdiagnosissystemMimamori-kun September11terroristattacksintheUnitedStates2002 Fullmodelchangeofpick-uptrucksinThailand,andunveiledD-MAX2003 ShiftedandconsolidatedFujisawa’sPlantpick-uptruckproductiontoThailand2004 LaunchedcommercialvehicletelematicssystemMimamori-kunonlineservice

2006 Dissolvedcapitaltie-upwithGeneralMotors;signedbasicagreementwithToyotaondevelopmentofthesmalldieselengines,etc.

2008 Startof global financial crisisdue to thebankruptcyofLehmanBrothers2009 GeneralMotorsmadefilingunderfederalBankruptcyAct2011 GreatEastJapanEarthquake;majorfloodsinThailand2012 EstablishedIsuzuMotorsIndiaPrivateLimited

2014 EstablishedIsuzuGlobalCVEngineeringCenterCo.,Ltd.(IGCE)asthegroupcompanytocontroltruckdevelopmentforemergingmarkets2015 Commencedroll-outofadvancedgenuinemaintenanceservicePREISM2018 LaunchedTRAGAlightweighttruckforemergingmarkets;dissolvedcapitaltie-upwithToyota

Company History


Corporate Profile

Isuzufulfillsourcorporatesocialresponsibilitywhilebuildinguptrustingrelationshipswithourstakeholdersthroughconversations.Inaddition,westrivetoprovidevaluetopeopleandsociety,andsolvesocialissues.Isuzuseekstoachieveourcorporatevision,andcontributetowardthesustain-abledevelopmentoftheglobalenvironmentandsociety.

Basic Ideas

Sustainable development of the global

environment and society

Corporate Social Responsibilities

Providing value and solving social issues

Trust from the community

Implementation of Isuzu's corporate vision

Stakeholders

Customers

Shareholders

Business partners

Employees

Government

Local Communities

Key issues (materiality)

Areas of activities

Regional/social contributions*Social Contributions

Harmony with Local Communities

QualityEnvironment

Supply Chain Management

Respect for Employees

Governance*

Activities of each employee

Corporate GovernanceCompliance

Risk Management

*Thoseinside[]bracketsareareaspriortosorting/integration

Isuzu Corporate Vision, Mid/Long-term Vision, and Isuzu Corporate Missionpage 4

Key Issues for Isuzu

Improving the productivity of the logistics industry (declining labor population)

Enhancing the physical distribution flow(mitigating traffic accidents and congestion)

Sustaining lifestyle and the environment in emergencies

Mitigating global environmental issues and promoting economic growth

(CO2 and exhaust gases)

Addressing poverty

Improving safety technology and providing reliable products

Respecting employees and promoting diversity

Win-win relationships with local communities and stakeholders

Strengthening governance


Isuzu’s CSR Activities

TheIsuzuGroupconductsbusinessanddevelopsCSRactivitieswithitsmainstakeholders(thosewhohaveavestedinterest)inthetablebelow.

Isuzu Group Stakeholders

Main stakeholders Responsibility to stakeholders Main dialog opportunities & information disclosureCustomers ▶ Stablesupplyofproductsandservices

▶ Supplyofsafe,reliable,andworthwhileproductsandserviceswhichareenvironmentallyfriendly

▶ Suitablesupplyofproductinformation▶ Appropriateresponseandsupportforcustomers▶ Improvedcustomersatisfaction▶ Propermanagementofcustomerinformation

▶ Everydaysalesactivities▶ Customersupportcenter(phone,email)▶ Customersatisfactionsurveys▶ CustomerInformation(Isuzuwebsite)

Shareholders ▶ Appropriatereturnofprofitsbacktoshareholders▶ Timelyandsuitabledisclosureofcorporateinformation

▶Maintenanceandincreaseofcorporatevalue

▶ GeneralShareholdersMeeting▶Websiteforshareholdersandinvestors(Isuzu’swebsite)

▶ Publicationofsecuritiesreportsandquarterlyreports▶ Publicationoffinancialhighlights▶ Publicationofannualreports▶ Presentationsonearningreportsforinvestors▶ Factorytoursforshareholders

Businesspartners ▶ Fairandequitableselectionandtrading▶ SupportforCSRactivities

▶ Dailypurchasingactivities▶ Productionbriefing▶ Procurementpolicybriefing

Employees ▶ Fairandequitableassessmentandtreatment▶ Assignment/utilizationandtrainingofsuitablepersonnel

▶ Respectforhumanrights▶ Promotionofdiversity▶ Promotionofwork-lifebalance▶ Considerationforindustrialhealthandsafety

▶ Employeesatisfaction(ES)surveys▶ Compliancequestionnaires▶ Labor-managementcouncil▶ Reportingandadvisoryroute▶ Helpline(Suggestionbox)▶ HealthandSafetyCommittee▶ Companynewsletter

Government ▶ Legalcompliance▶ Paymentoftaxes▶ Cooperationwithmeasures

▶ DialogthroughorganizationssuchasJAMA

LocalCommunities

▶ Protectionandrespectforlocalcultureandcustoms▶ Contributiontolocaldevelopment▶ Cooperationwithlocalactivities▶Workplaceaccident/disasterprevention

▶ Participationinlocalevents▶ Invitationtoworkplaceevents▶OpeningofIsuzuPlazatothepublic▶ Acceptanceofsocialstudiestours(IsuzuPlaza,factorytours)


Isuzu’s CSR Activities

Isuzuhasdevelopeditsbusinessgloballyunderthecorporatevision“Isuzuwillalwaysmeanthebest”whilealwaystakingintoconsiderationtherequestsfromtheinternationalcommunity.Inrecentyears,accompanyingchangesintheeconomicenvironment,thesocialresponsibilitiesrequiredoftheIsuzuGrouphavealsochangedandtheGroupisexpectedtopromotemorestrategicinitiativesbasedontrendsintheinternationalcommunity.

Inresponsetothesesocialrequests,inFY2018,wehaveidentifiedthekeyissues(materiality)thatIsuzushouldfocuson.

Basic IdeasIsuzudivideskeyissuesintotwocategories:socialissuesthatweshouldaddressthroughourbusinessactivitiesandCSRissues.

Asfortheformer,weaimtomakedirectcontributionsthroughourcompany’sactivities.Forthelatter,wehaveidentifiedCSRissuesasthethemeofourcompany'ssocialresponsibilities,whichwillstrengthenourbusinessfoundation.


Social issues that Isuzu should address through its business activities Relevance to SDGs

Improving the productivity of the logistics industry(declining labor population)

Enhancing the physical distribution flow(mitigating traffic accidents and congestion)

Sustaining lifestyle and the environment in emergencies

Mitigating global environmental issues and promoting economic growth (CO2 and exhaust gases)

Addressing poverty

CSR issues Relevance to SDGs

Improving safety technology and providing reliable products

Respecting employees and promoting diversity

Win-win relationships with local communities and stakeholders

Strengthening governance




Toidentifykeyissues,theIsuzuGroupbroughttolightkeyissuecandi-datesforconsiderationbasedontheGroup’sbusinesscharacteristicsandchallenges,internationalguidelines(GRI,ISO26000,SDGs,SASB,etc.)anddailycommunicationwithstakeholders,etc.

Thecompanyrevieweditsperspectiveandkeyissuecandidateswererevisedinconjunctionwiththemedium-termmanagementplan,whichwasunderreviewatthesametime.Intheend,weclassifiedtheimport-antissuesintotwoconcepts:socialissuesthatIsuzushouldaddressthroughitsbusinessactivitiesandCSRissues.

Inordertoverifythevalidityofthekeyissuecandidatesfromthesocialperspectiveandtogaininsightintosociety’sexpectationsforIsuzu,weheldadialogwithtwoexperts.ThedialogwasattendedbythepersoninchargeofmanagingCSRpromotionatIsuzu,whoexchangedideaswiththeexpertstorefinethekeyissuecandidates.

Finally,weconfirmedthevalidityofthekeyissuecandidatesinthedialog,andthenestablishedthemaskeychallengesforIsuzuattheMan-agementMeeting.

First,weformulatedandverifiedhypothesesforkeyissuecandidatesonanevaluationaxisthatincludesasocialperspectiveandourcompany’sper-spective.Thehypothesesarebasedonsocialandindustrytrends,andimportancewasanalyzedfromboththesocialandourcompany’sperspec-tivewithregardtotheexternalenvironment,characteristics,strategies,CSRactivities,andotherfactorsofIsuzu'sbusinesses.

STEP 1Finding and

arranging key issue candidates

STEP 3Linking key issue candidates to the

medium-term man-agement plan

STEP 4Verifi cation and fi nalization from

a social perspective through dialog

STEP 2Forming and analyzing a

hypothesis from the perspectives of society and our company

ThenextstepistodevelopKPIfortheseidentifiedkeyissuesandimplementvariousactivitiesaccordingly.

Future Plans

The state of the dialog is published in the CSR Report 2018.https://www�isuzu�co�jp/world/csr/report/backnumber/pdf/2018�pdf

Business characteristics

Business challenges

Isuzu’s perspective

Social perspective

International guidelines

Organization of similar elements

Key issue candidates

Daily communication

Identifi cation of issues that are of

high importance to both society and our company as candidates for

important issues



Formulation Process

https://www.isuzu.co.jp/world/csr/report/backnumber/pdf/2018.pdf

Inrecentyears,inJapan,thenumberofitemshandledbydeliveryserviceshastendedtoriseyearbyyear,whichiscausingaproblemwiththeongoingshortageoftruckdriversandotherlogisticsproviders.Fur-thermore,theshortageoftruckdriversaccompanyingthelowbirthrate,aging,anddecliningworkingpopu-lationinJapanisalsorecognizedasaseriousfutureproblem.

Truckssupportapproximately99%ofthenumberofitemshandledbydeliveryservices,andwerecog-nizethattheseproblemsareserioussocialissuesthatIsuzu,asupporteroftransportation,mustsolveaswell.Weareworkingontheseissueswiththeaimofoptimizingdistributionandimprovingproductivitythroughcustomervaluecreation.

Relevance to SDGs Byworkingonthiskeyissue,Isuzucontributestotheimprovementofproduc-tivityinthelogisticsindustryandtheconstructionofarobustlogisticsinfra-structurethroughtechnologicalimprovementandinnovationandtherebycontributestotheachievementofgoals8and9oftheSustainableDevelop-mentGoals(SDGs).

Key Issue Promotion SchemeEffortsdirectedatthiskeyissuearepromotedthroughcoordinationacrossgroupsanddivisionscenteringontheEngineeringDivision,SalesPlanningDivision,After-SalesDivision,andIsuzuMotorSalesLtd.(group).

Trends in the number of truck drivers and the number of items handled by delivery services(1,000workers) (millionitems)

780 830

4,2514,212

2,9282,897

1,500

0

5,000

2,500

1,200 4,500

900 4,000

600 3,500

300 3,000

2011 2012 2013 2014 2015 2016 2017201020092008200720062005 (FY)(years)

*Source:2017Surveyandtotalingmethodfornumberofitemshandledbydeliveryservices,etc.(MinistryofInternalAffairsandCommunications) http://www.mlit.go.jp/common/001252227.pdf LaborForceSurveyResults(StatisticsBureauofJapan,MinistryofInternalAffairsandCommunications) https://www.stat.go.jp/data/roudou/index.html

■Numberofdrivers(leftaxis)■Numberofitemshandledbytruckdelivery(rightaxis)■Totalnumberofdeliveries(rightaxis)

Reducing downtime through the spread of vehicles equipped with PREISMAtruckthatrunsdayandnightalwaysrequirestheperfectconditions.ThePREISMconnectedserviceprovidedbyIsuzuconstantlymonitorsvehicledatafromtheengine,DPD(DieselParticulateDefuser),transmission,etc.,andobtainsdatathatcanpredictfailuresbeforetheyoccur.Byimplementingpreventivemaintenancebasedonthispredictivedata,itispossibletopreventfailuresandgreatlycontributetoworry-freeoperationaswellasreducedowntimeandshortenmaintenancetimetothebenefitofourcustomer'scon-tinuedbusiness.

BytheendofFY2018,approximately38,000vehiclessupportedPREISMandwereusedforrelaytrucking*,whichrequiresnearconstantoperation.WithPREISM,weareimprovingvehiclerotationrate,achievingdayandnightoperationthatisnotaffectedbydrivershifts,provid-inganenvironmentwheredriverscanreturnhomeonthesameday,supportingvehiclemaintenance,andreducingtheburdenondrivers.

Improving efficiency and saving labor by providing a 25-meter full trailer (double articulated truck)Followingtherecommendationsonderegulationofthevehiclelengthforthepurposeofefficienttranspor-tationandsavinglabor,theMinistryofLand,Infrastructure,TransportandTourismrelaxedthevehiclelengthstandardfromtheprevious21metersto25metersinJanuary2019.

Againstthisbackground,Isuzujointlydevelopeda25-meterfulltrailerthroughacollaborativeinitiativewithamajortransportcompany.Thisnotonlydoubledtheloadingcapacityoverconventionalheavytrucks,butalsoallowedcombinationsoftrailersfromdifferentoperatorstobeoperatedasasinglevehi-cle,whichwillleadtomoreefficientlogisticsandisaneffectivesolutiontolaborshortages.Inaddition,thereducednumberofvehiclescontributestothereductionofCO2emissions.

Asapartnerthatsupportstransportation,wewillcontinuetoworkwithourcustomersandbusinesspart-nerstocontributetoimprovingtheproductivityofthelogisticsindustry.

Isuzu’s Approach

*Anoperationsystemwherevehiclesaretakenoveratrelaypointswithoutlosstimeinlong-distancetrucktransportation

25-meterfulltrailer(doublearticulatedtruck)

PREISMsupportsrelaytrucking

Relay point

TransferDrivers can return home the same day

Drivers can return home the same day

Outbound truck

Inbound truck

Outbound truck

Inbound truck

Support

D D


Social issues that Isuzu should address through its business activities Improving the productivity of the logistics industry (decline labor population)


ForIsuzu,asupporteroftransportation,thestreamliningoflogistics,thatis,thesafetransportationofpeopleandgoods,isauniversalthemewiththehighestpriority.

AccordingtotheWhitePaperonTrafficSafetyinJapan2018,95.8%offataltrafficaccidentsarecausedbydrivers.Largeandmedium-sizedcommercialvehiclesthatIsuzuprovidestocustomersmaycausemoredamageintheeventofanaccidentwhencomparedtopassengercars.Inadditiontocontinu-ingtopursuecreationofproductsthatdonotbreakdown,wewillcontinuetoworkonreducingtheoccurrenceofaccidentscausedbydriversandreducingthedamagecausedbyaccidents,therebyfulfillingoursocialresponsibility.

Relevance to SDGs Bytacklingthisimportantissue,Isuzuwillhelpachievegoals3and11oftheSustainableDevelopmentGoals(SDGs)byreducingthenumberofcasualtiesfromtrafficaccidentsandprovidingasafeandsustainabletransportationinfra-structureforall.

Key Issue Promotion SchemeEffortsdirectedatthiskeyissuearepromotedthroughcoordinationacrossgroupsanddivisionscenteringontheEngineeringDivision,SalesPlanningDivision,After-SalesDivision,andIsuzuMotorSalesLtd.(group).

Number of traffic accidents involving deaths by type of offense (of the person principally implicated) (2017)

*Source:WhitePaperonTrafficSafetyinJapan2018(Japaneseonly) https://www8.cao.go.jp/koutu/taisaku/h30kou_haku/zenbun/genkyo/h1/h1b1s1_2.html

Speed violation162 (4.5%) Improper operation

505 (13.9%)

Careless driving555 (15.3%)

Violation of obligation of safe driving2,041 (56.2%)

Total3,630

accidents

Inattentive driving398 (11.0%)

Insufficient adherence to safety

387 (10.7%)

Other196 (5.4%)

Intoxicated driving20 (0.6%)

Failure to stop completely[, etc.]131 (3.6%)

Ignoring traffic signals157 (4.3%)

Obstructing pedestrians[, etc.]

238 (6.6%)

Obstructing priority traffic99 (2.7%)

Overtaking violations22 (0.6%)

Other violations425 (11.7%)

Pedestrian147 (4.0%)

Unknown6 (0.2%)

Traffic partition violations182 (5.0%)

95�8% of traffi c fatalities are caused

by drivers

Reducing occurrence of accidents and amount of damage through the development of advanced safety devicesThefunctionsrequiredformountedsafetydevicesaredifferentforpassengercarsandtrucks,duetothedifferenceinsize(trucksarelong,wide)andthedifferenceinmovementcharacteristics(difficultfortruckstomakeasuddenstoporturn),etc.Isuzudevelopsadvancedsafetydevicesthatsuitthesevehiclecharac-teristicsandaimstoreducetheoccurrenceofaccidentsandtheamountofdamage.

Forexample,advancedviewassisttechnology,whichpromotesearlyavoidanceofpotentialrisks,sup-portsdrivercognition,judgment,andmaneuverabilitywithforwardobstacledetectiontechnologyusingmillimeter-waveradarandstereocamerasaswellasvehicleoperationconditiondata.Inparticular,detec-tionofpedestriansisimportantintheELFlight-dutytruck,whichplaysanactiveroleinurbanareas,sowehavedesignedthecameramountingpositiontomakeiteasiertodetectpeopleinthevicinity.

Wearealsopromotingthedevelopmentofappro-priatesafetytechnologiesinaccordancewiththevehiclecharacteristicsandapplicationincluding,usingasystem*thatsuppressesabnormalbehavior(jackknifing,rollovers,etc.)uniquetoconnectedvehicles.

Erga Duo contributes to the improvement of transportation efficiency and safetyInadditiontosafety,busesthatcarrymanypeoplearerequiredtoimprovetransportefficiencyinworkandschoolcommutingrushhoursandintouristareaswheretherearemanyvisitorsthroughouttheday.

In2019,inresponsetotheseexpectations,IsuzubegansellingtheErgaDuohybridarticulatedbuswithatotallengthof18metersandamaximumcapacityof120people*1.Inadditiontothesignificantimprove-mentoftransportationefficiencyfromthearticulateddesign,thebusisEmergencyDrivingStopSystem(EDSS)*2andisdesignedtoimprovesafetyaswell.

EDSSisasystemthatallowspassengersorcrewmemberstodecelerateandstopthevehiclebypressingtheemergencybrakeswitchwhensuddenillnessorotherreasonspreventthedriverfromcon-tinuingtooperatethevehicle.Intheeventofanemergency,thevehicledeceleratesandstops,andatthesametime,thehornsoundsandthehazardandbrakelightsareturnedontonotifyothersaroundthevehicleofaproblem,therebypreventingaccidentswithothervehiclesinadditiontoconsideringthesafetyofthestandingpassengers.

Isuzu’s Approach

*IESC(IsuzuElectronicStabilityControl) Asystemwithvarioussensorsthatdetectssuddenchangesinthepositionofthemovingvehicleandsuppressesengineoutput,activatesthenecessarywheelbrakesandalsoalertsthedriverwithanalarmandindicatorlightstohelpthemrecovercontrolthevehicle

*1Capacitymaydifferwithindividualspecifications*2StandardequipmentfortheErgaheavy-dutybusandtheErgaMio

medium-dutybus

ErgaDuohybridarticulatedbus

PedestriandetectionbystereocameramountedonELF

ELF with camera on dashboard

Easy to detect small children ○ Hard to detect small children ×

Camera installed at the top of the window


Social issues that Isuzu should address through its business activities Enhancing the physical distribution flow (mitigating traffic accidents and congestion)


Japanisacountrywithmanynaturaldisasters,suchasearthquakesandtyphoons.Inrecentyears,thenumberofoccurrencesandtheamountofdamagehasgreatlyexpanded,andwhencomparingthedecadesofthe1970sand2000s,thenumberofoccurrenceshasmorethandoubledandtheamountofdamagehasincreasedover25times.

Asacompanythatsupportstransportationforpeople’slivesandsocialproductionactivities,Isuzubelievesthatitsmissionistoensurethattransportationdoesnotstopduringdisastersandemergencies.Evenwiththeincreasingthreatofnaturaldisasters,wewillcontributetotherealizationofamoresecuresocietybyprovidingvehiclesandservicesthatmakeuseofthelessonslearnedfrompastdisasters.

Relevance to SDGs Byaddressingthisimportantissue,theIsuzuGroupwillprovidevehiclesandservicesthatareresilientindisastersandemergenciesandwillcontributetotheachievementofgoals11and13ofSustainableDevelopmentGoals(SDGs).

Key Issue Promotion SchemeWeregardthiskeyissueasanissuethatrequiresthewholegroupinordertosolvethroughourbusinessandwearetacklingitwithaninterdivisionalresponse.

0.91 1.74 0.80 7.9118.53

49.67

17.99

220.84

12

2024

17

2824

37

23

39

113.67

250

0

50

0

200 40

150 30

100 20

50 10

1991-1995 1996-2000 2001-2005 2006-2010 2011-20151986-19901981-19851976-19801971-1975 (years)

■Amountofdamage(leftaxis)　■Numberofoccurences(rightaxis)

Change in the number of natural disasters and the state of damages in Japan(billiondollars) (incidents)

*Source:2016WhitePaperonSmallandMediumEnterprisesinJapan,SmallandMediumEnterpriseAgency(Japaneseonly) https://www.chusho.meti.go.jp/pamflet/hakusyo/H28/h28/index.html

Mimamori data contributes to rapid transportation in the event of a disasterThroughpastexperienceswithdisasters,Isuzuhasrecognizedtheimportanceoftransportationnetworksthattransportpersonnel,sickandinjuredpeople,andemergencysuppliesindisasters.However,trafficroutesmaybecutoffduetovariousfactorssuchasheavyrainorsnow,earthquakes,tsunamis,etc.,andappropriatemeasuresmustbetakenpromptlyaccordingtothesituation.

Mimamori,anadvancedreal-timeoperationmanage-mentsystem,collectsandanalyzestrafficdata,andprovidesittoITSJapan,anNPOthatprovidestrafficmapsduringdisasters.Theroadswherevehiclescanmovearevisualizedbasedontheprovidedtrafficdata,andthiscontributestotherealizationofemergencyanddisastertransportation.

Sales of industrial diesel engines that support people’s livesIntheeventofapowerfailure,emergencygeneratorspoweredbydieselenginesareinstalledatsiteswherehumanlivesareinvolved,forexampleatairportsorhospitals.Inaddition,manypowershovelsrequiredforreconstructionindisaster-affectedareasandconstructionmachinesthatsupportourlivesaswellassnowblowersusedintheeventofsnowdamage,etc.arealsodrivenbydieselengines.Withoutdieselengines,itisnoexaggerationtosaythatbuildingandroadconstructionwouldnotbepossible.

Asaleadingmanufacturerofdieselengines,Isuzuwillcontributetosupportinglifestylesandtheenvironmentduringdisastersandemergenciesthroughthemanufac-tureandsaleofindustrialdieselengines.

Isuzu’s Approach

Isuzu’sdieselengineusedforavarietyofapplications

ITSJapanpassengercarandtrucktrafficmap


Social issues that Isuzu should address through its business activities Sustaining lifestyle and the environment in emergencies


According to the Ministry of Land, Infrastructure, Transport and Tourism, of Japan's carbon dioxide emis-sions 1.19 billion tons in FY2017, 17.9% of emissions came from the transportation sector (213 million tons). Automobiles accounted for 86.2% of emissions (15.4% of total emissions in Japan) and Isuzu’s truck business makes up 36.5% of the transportation sector (6.5% of total emissions in Japan).

In addition to contributing to the development of the logistics industry, Isuzu believes that it has a responsibility to contribute to the resolution of global environmental issues through its business activities.

Relevance to SDGs By tackling this key issue, the Isuzu Group is working to reduce environmental impact throughout the product life cycle, from material input to disposal, and is contributing to the achieve-ment of goals 7, 12 and 13 of the Sustainable Development Goals (SDGs).

Key Issue Promotion SchemeThis key issue is led by the Global Environment Committee and is an issue that the group as a whole should address and we are tackling it with an interdivisional response.

CO2 emissions in the transportation sector

* Source: Carbon dioxide emissions in transportation sector (Ministry of Land, Infrastructure, Transport and Tourism)https://www.mlit.go.jp/sogoseisaku/environment/sosei_environment_tk_000007.html

Business freight trucks42.4 million tons(19.9%)

Private freight trucks35.32 million tons(16.6%)

Private passenger car98.5 million tons(46.2%)

1.19 billion tons of CO2 emissions (FY2017)

Domestic sector0.186 billion tons

(15.6%)

Industrial sector0.413 billion tons

(34.7%)

Other0.171 billion tons

(14.4%)

Transportation sector (cars, ships, etc.)0.213 billion tons

(17.9%)

Other business sectors0.207 billion tons

(17.4%)

All vehicles account for 86.2% of the

transportation sector (15.4% of Japan

overall)Freight vehicles

account for 36.5% of the transportation sector (6.5% of Japan

overall)

Transition to renewable energy The Isuzu Group is promoting the transition to cleaner energy. In FY2018, a group company in Thailand introduced a large-scale solar power generation facility.

Engine rebuilding business Isuzu Engine Manufacturing Hokkaido Corporation is promoting its engine and parts rebuilding business. Isuzu recognizes the size of its responsibilities as a manufacturer and promotes the rebuilding of engines while replacing parts to save resources.

Promotion scheme for measures against climate change The Isuzu Group is promoting measures against climate change at all points in the value chain, under the watch of the Global Environment Committee. Please refer to each committee page for their activities.

Activities to realize fuel-efficient drivingThe largest source of CO2 emissions in Isuzu product life cycles are emissions from product use. Fuel effi-ciency improvement, which is directly linked to these emissions, is also always high on the list of customer needs and Isuzu believes that working with customers to achieve fuel-efficient driving is also important to solve environmental problems.

The Mimamori operation management system presents customers with a fuel consumption report to assist fuel-efficient driving based on nine evaluation items such as vehicle speed, shift-up RPM, and the degree of accelerator depression of the vehicle equipped with the system. The reports generated by this system also contribute to the reduction of CO2 emissions by helping drivers understand the ideal driving opera-tions that achieve fuel-efficient driving.

Isuzu’s Approach

Use of renewable energypage 29

Efforts to reduce resource inputpage 29

Isuzu Group Environmental Promotion Schemepage 19

Mimamori fuel consumption report

Fuel efficient and safe driving seminarspage 25


Social issues that Isuzu should address through its business activities Mitigating global environmental issues and promoting economic growth (CO2 and exhaust gases)


The poverty rate (proportion of people living at US $1.90 or less per day) provided by the World Bank in 2015 was 9.9% worldwide, and or nearly half, 46%, at US $5.50 per day. Currently, Isuzu products are sold in over 120 countries worldwide. Isuzu's production business is also spreading around the world, including products exported to about 100 countries around the world from our base in Thailand, and poverty is one key issue for Isuzu to address, especially in emerging countries. Through our business activities, we plan to address poverty by contributing to the economic growth of emerging countries.

Relevance to SDGs By tackling this key issue, the Isuzu Group provides vehicles and services that meet the needs of the various countries and regions in which we operate and provide economic value including job creation, thereby contributing to the achievement of goals 1, 8, and 10 of the Sustainable Development Goals (SDGs).

Key Issue Promotion SchemeWe regard this key issue as an issue that requires the whole group in order to solve through our business and we are tackling it with an interdivisional response.

World poverty rate (living on less than US $1.90 a day

* Source: Global population poverty rate (2015) World Bank https://data.worldbank.org/indicator/si.pov.dday?type=shaded&view=map&year=2015

Introduction of strategic products into markets in emerging countriesIsuzu launched Isuzu Philippines Corporation (IPC) in 1997 and began assembly, production and sales in the region. We have maintained a high market share of over 50% in the sales of new trucks in the catego-ries corresponding to Japan's small and medium-sized cars. In recent years, we have rapidly expanded the share of large cars. Under these circumstances, we also started manufacturing and selling Jeepney substitute vehicles in 2018 in collaboration with IPC and a major local option manufacturer.

Isuzu strictly adheres to production in the Philippines, and rather than just offering products that are competitive in price, we provide high-quality, environmentally-conscious products based on the trust in quality that IPC has cultivated locally span-ning more than 20 years and through the excellent local employ-ees who have maintained and supported the entire Isuzu Group .

Educational Support for Philippines Auto Mechanic Vocational SchoolFrom November 2008, Isuzu has been involved in an educational program organized by the Technical Education and Skills Development Authority (TESDA) in Tacloban City on the island of Leyte in the Philip-pines. This program is held at an automobile mechanic vocational school, designed for economically disad-vantaged youths.

A total of 266 people graduated through this program, finding work in auto dealers and garages in the Philippines, Japan and other countries. Some of them are hired as trainers at Isuzu Global Service Corpora-tion (IGSC), an after-sales support company founded in the Philippines.

In 2018, the Philippines was the first to comply with the Euro 4 exhaust gas control in Southeast Asia. After-sales support is a growth business that is expected to expand from the Philippines to the Middle East and other regions.

These activities that started with the aim of severing the chains of poverty and contributing to the development of the country have become important activities for Isuzu's business.

Isuzu’s Approach

Jeepney substitute Isuzu display car

Scene of class at auto mechanic vocational school

Contributions to Local Communities and Societypage 75


Social issues that Isuzu should address through its business activities Addressing poverty


Theworking-agepopulationinJapanisexpectedtodecreasebynearly10%overthenext50yearsorso.Nowmorethaneverbeforeinorderforcompaniestocontinuetoincreasethecorporateandsocialvaluetheyprovide,theyneedtocreateenvironmentswhereadiverserangeofpeoplecanwork.

Isuzuisstrivingtobeacompanythatgrowswithemployeesbynotonlyrespectingtheirhumanrightsanddiversity,butalsobyprovidinganenvironmentthatissafeandcomfortableinwhichemployeecapa-bilitiescanbemaximized.

Relevance to SDGs Bytacklingthisimportantissue,theIsuzuGroupwillcreateanenvironmentinwhichadiverserangeofpeoplecanworkwithenthusiasmandwillcontributetotheachievementofgoals5,8and10oftheSustainableDevelopmentGoals(SDGs).

Key Issue Promotion SchemeTheAdministrationDivisionisinchargeofthepromotionschemeforthiskeyissueandincooperationwithbusinessdivisionsandgroupcompanies,theentirecompanywillworktogethertopromotetheinitiatives.

60.3%51.4%

126.93 million peopleActual value (National census, etc.) 2017 estimated value

(future estimated population in Japan)88.08 million people

150

0

120

90

60

30

1950 1960 1970 1980 1990 2000 2010 2016 2025 2035 2045 2055 2065 (year)

Working-age population transition(millions)

*Source:Environmentandissuessurroundingemployment(2017)EmploymentSecurityBureau,MinistryofHealth,LaborandWelfare https://www.mhlw.go.jp/file/05-Shingikai-11601000-Shokugyouanteikyoku-Soumuka/0000062121_1.pdf

■Populationunder14yearsold■Populationbetween15-64yearsold■Populationover65yearsold■Percentageofworkingagepopulation(15-64)

Isuzu’s Approach

Employment of non-Japanese personnelpage 56

Work style reformpage 51

Promoting opportunities for womenpage 56

InJapan,thereisarecallsysteminplacetopreventaccidentsandproblemswherebyautomobilemanufacturersthatdetectissuesinthedesignormanufacturingprocessofanautomobilewill,basedontheirownassessment,carryoutvehiclerecallorrepairaftersubmittingpriornotificationtotheMinisterofLand,Infrastructure,TransportandTourism.BasedonannouncementsbytheMinistryofLand,Infrastructure,TransportandTourism,thereisanincreasingtrendofvehiclerecallnotificationsbeingsubmittedinrecentyears.Thisreflectssociety’sincreasingdemandstowardproductquality,andtheproactivestancebeingundertakenbyautomobilemanufacturersinviewofsuchdemands.

ThesameistrueforIsuzu,andwewillcontinuetopursueimprovementsinsafetytechnologyandfulfilloursocialresponsibilitybycontinuingtoprovidereliableproducts.

Relevance to SDGs Bytacklingthisimportantissue,theIsuzuGroupwillfurtherpromotethedevelopmentofthelatestandmostadvancedsafetytechnolo-giesandprovidetrustedproducts,therebycontributingtoachievinggoals3,9and11oftheSustainableDevelopmentGoals(SDGs).

Key Issue Promotion SchemeTheQualityAssuranceDivisionisinchargeofthepromotionschemeforthiskeyissueandincooperationwithbusinessdivisionsandgroupcompanies,theentirecompanywillworktogethertopromotetheinitiatives.

756 492 1,129

4,417 5,3517,979

9,558

18,991

15,846

7,700

43 5593

204

295 303355 368

364

377

0

500

400

300

200

100

0

20,000

16,000

12,000

8,000

6,000

1988 1993 1998 2003 2008 2013 2014 2015 2016 2017 (FY)■Totalnumberofcases(leftaxis)■Totalnumberofvehicles(rightaxis)

Number of car recall cases and affected vehicles(cases) (thousandvehicles)

*Source:Numberofrecallnotificationseachyearandtargetnumberofvehicles MinistryofLand,Infrastructure,TransportandTourism http://www.mlit.go.jp/jidosha/carinf/rcl/data_sub/data004.html

Isuzu’s Approach

Organizing fuel efficient and safe driving seminarspage 46

Next-generation vehicle diffusion activitiespage 23

PREISMpage 48


CSR issues CSR issues Respecting employees and promoting diversityImproving safety technology and providing reliable products


Isuzuhas92consolidatedsubsidiariesandoperatesallaroundtheworld.Asatrustedpartner,westronglyrecognizethatcoexistenceandcoprosperityineachregionandwithstakeholders,aswellasthevaluechainthatincludesourbusinesspartnersisessentialforIsuzuanditsaffiliatestocontributetothecreationofricherlifestyles.

Wewillcontributetosocietybyproperlyrecognizingandrespondingtorequestsfromlocalcommuni-tiesandstakeholders.

Relevance to SDGs Byaddressingthisimportantissue,theIsuzuGroupwillensureappropriatecommunicationwithlocalstakeholderstoachieveasustainablesociety,therebycontributingtotheachievementofgoals4,8and17oftheSustainableDevelopmentGoals(SDGs).

Key Issue Promotion SchemeTheCorporatePlanning&FinanceDivisionandthePurchasingDivisionareinchargeofthepromotionschemeforthiskeyissueandincooperationwithbusinessdivisionsandgroupcompanies,theentirecompanywillworktogethertopromotetheinitiatives.

Consumers’ recognition of corporate responses

*Source:22ndSurveyonTrusttowardCorporations(2018)KeizaiKohoCenter https://www.kkc.or.jp/data/release/00000150-1.pdf

Coexistence with local

communities

Corporate patronage

initiatives (sports, culture, art

support) and social

contribution

●Supported●Somewhatsupported●Supportedalittle●Notsupported●Notknown

2% 2%7% 8%

8% 11%

47% 47%

35%

31%“Not supported” replied by

62%

“Not supported” replied by

66%

Isuzu’s Approach

Contributions to Local Communities and Societypage 73

Supply Chain Managementpage 64

Recently,withtheoccurrenceofaseriesofcorporatescandals,improvementstomanagementeffectivenessandtransparencyaremorenecessary.WiththeestablishmentoftheCorporateGovernanceCodein2015,societalconcernsandrequestshavebeenincreasingandIsuzurecognizestheseasimportantsocialrequests.

Inordertoestablishagovernancesystemtoserveasasolidfoundationtosupportbusinessactivitiesandcorporatevalues,weplantostrengthenoursupervisoryfunctionsandoptimizeourdecision-makingtofulfillourresponsibilitytobeaccountabletoallstakeholders.

Relevance to SDGs Bytacklingthisimportantissue,andbymakingclearandtransparentdecisionsandfulfillingourresponsibilityforaccountability,theIsuzuGroupcontributestotheachievementofgoal16oftheSustainableDevelopmentGoals(SDGs).

Key Issue Promotion SchemeTheAdministrationDivisionisinchargeofthepromotionschemeforthiskeyissueandincooperationwithbusinessdivisionsandgroupcompanies,theentirecompanywillworktogethertopromotetheinitiatives.

27272121 2424

32322727

3738 4042

6060

4243

6464

80

0

60

40

20

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (FY)

Trend in number of companies with inappropriate accounting disclosures(companies/cases)

*Source:Fiscal2017TrendinNumberofCompanieswithInappropriateAccountingDisclosures(TokyoShokoResearch,Ltd.) https://www.tsr-net.co.jp/news/analysis/20180420_02.html

■Numberofcompanies■Numberofcases

Isuzu’s Approach

Risk Managementpage 92

Compliancepage 88

Corporate Governancepage 83


CSR issues CSR issues Win-win Relationships with Local Communities and Stakeholders Strengthening governance


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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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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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

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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

30,000

0

24,000

18,000

12,000

6,000

100

80

60

40

20

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.htmlhttps://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 DisclosureSinceFY2016,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-tainanenvironmentthatallowsustocontinueouroperat

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CSR Report 2019 - ISUZU · CSR activities that can meet the expectations of stakeholders and society. In this year’s report, we have reviewed our practice of information disclo-