HIROSHIMA, Japan— Mazda Motor Corporation (“Mazda”) today specified the medium-term targets and roadmap towards achieving carbon neutrality at its plants and operational sites in Japan, which account for approximately 75% of its global total CO2 emissions, as part of its efforts to attain carbon neutrality at all Mazda plants globally by 2035 and across the whole supply chain by 2050. The medium-term goal is to reduce, by FY2030, its CO2 emissions by 69% in comparison to FY2013 levels. Mazda will work steadily, in line with its roadmap, to follow through on the policies it already has in place and achieve this medium-term goal.

Mazda positions the achievement of carbon neutrality as one of its key initiatives of management policy up to 2030. To achieve carbon neutrality at all of its plants around the world, Mazda will be focusing on three pillars: energy conservation, shifting to renewable energy, and introducing carbon neutral fuels. Along with the details of these three pillars, Mazda specified the roadmap for its domestic plants and operational sites which have a strong effect on its ability to achieve carbon neutrality.

In terms of energy conservation, Mazda will be introducing Internal Carbon Pricing² as one of the capital investment criteria. As a result, investment decisions will take the future price of carbon trading into account and prioritize investments with a major contribution to CO2 emissions reduction. Mazda will continue working in all areas, including production and indirect departments such as infrastructure, to improve the efficiency of our facilities and transform our technology.

In terms of introducing renewable energy, Mazda will be switching the fuel used to supply the power generation facilities of MCM Energy Service Co., Ltd. (Hiroshima City, Hiroshima Prefecture), at Hiroshima plant Ujina District (Hiroshima City, Hiroshima Prefecture) from fossil fuels to liquid ammonia*3, while also making use of corporate PPA⁴ signed with other local parties, and increasing the purchase of non-fossil fuel derived sustainable energy from power companies. As a result of these policies, Mazda plans to achieve a usage ratio for non-fossil fuel power of 75% by FY2030.

To introduce carbon neutral fuels, Mazda will be switching the fuel used to power vehicles for transport within the company from diesel to a next-generation biofuel. In cases where generating power from alternative fuel sources proves difficult, we will make use of J-credits⁵ to promote forestry preservation and re-forestry to absorb CO2 in the Chugoku region and other regions.

Commenting on this latest announcement, Takeshi Mukai, Director and Senior Managing Executive Officer (Oversight of Quality, Purchasing, Production, Business Logistics and Carbon Neutrality; Assistant to the Officer overseeing Cost Innovation) said "Mazda will move forward with carbon neutral initiatives in line with our plans to contribute to the reduction of CO2 emissions and the prevention of global warming across all of our processes including manufacturing transportation, usage, and recycling/disposal, as we believe that such efforts are a core responsibility of automotive manufacturers. Through these three pillars, Mazda is aiming to achieve carbon neutral at all of its global plants by 2035 and will attempt to achieve carbon neutral throughout the entire supply chain by 2050, contributing to the lasting coexistence with our planet."

For factories outside Japan, Mazda will be investigating optimum approaches appropriate to each region using the carbon neutral initiatives in Japan as a reference model. The company will also join with local organizations such as the subcommittee for the promotion of carbon neutral electricity, and the Hiroshima committee for the promotion of coordination between industry, academia, and the government in the automotive industry, working together to take on the challenge of achieving carbon neutral at all Mazda factories around the globe by 2035.

Mazda is committed to promoting human centric values, advancing the joy of driving, so as to deliver emotional mobility experiences to our customers, helping them experience the joy of living.

1. Energy Conservation

Approach

• Mazda is working steadily to achieve improvements in all of these areas, including production and indirect departments such as infrastructure

Major initiatives contributing to the achievement of our medium-term goal for FY2030 (Scope1-2⁶)

• Accelerating facilities investment through the introduction of Internal Carbon Pricing (ICP)
• Improve productivity and operational efficiency (greater productivity, improved quality, improved operations, feasibility simulations, etc.)
• Improve efficiency of our facilities (switch lights to LEDs, introduce inverter control into motor-driven facilities, improve efficiency of air conditioning units etc.)
• Technical innovation (improve efficiency of paint spraying process, reduce temperature of heat treatment furnace etc.)

2. Introduce renewable energy

Approach

• Achieve decarbonisation of power generation within our plants, and procure power from third parties

Major initiatives contributing to the achievement of our medium-term goal for FY2030 (Scope1-2⁶)

• Switch fuel for Hiroshima plant’s power source from coal to liquid ammonia³
• Make use of corporate PPA⁴ concluded with local parties in each region
• Purchase renewable energy and other non-fossil fuel derived energy from power companies

3. Introduce carbon neutral energy

Approach

• Introduce carbon neutral fuel for in-company transportation needs
• Make use of CO2 credits, etc.

Major initiatives contributing to the achievement of our medium-term goal for FY2030 (Scope1-2⁶)

• Switch fuel used for in-company transportation to next-generation biofuel⁷, etc.
• Acquire J-credits generated in the Chugoku region (forestry CO2 absorption)⁵