Building a Recycling-Oriented Society

Basic Philosophy

In order to mitigate resource depletion and water risks, we not only take measures for defects and yield, which are the focus of our manufacturing divisions, but also work on emission control and recycling involving material and production technologies in the sourcing divisions for contributing to the attainment of a recycling-oriented society. For water, we identify risks in each country and region where we conduct business globally while also striving to reduce risks by reducing water usage, recycling water, and returning cleaner wastewater to the community.

Risks and Opportunities Related to Resource Recycling

We consider risks and opportunities related to resource recycling as important management issues, and we are working on them company-wide as one of our priority issues to be addressed.

Issue	Risks	Opportunities	Response
Resource depletion (shortage)	Reduced earnings and production hindered by difficulty in procurement of raw materials and price hikes	Improved earnings through recycling technology and reduced material usage volume Improved corporate value through development of the above-mentioned technologies	Development of more lightweight products Development of recycling technology for raw materials Expanding the use of plant-derived biomaterials and recycled materials
Water risk (quantity and quality)	Production hindered by difficulty in securing water necessary for production Drop in product quality due to deterioration in water quality Production hindered by water damage	Improved earnings through reuse of water and reduced water usage Improved corporate value through development of the above-mentioned technologies	Development of water reuse technology Expanding the use of rainwater Review of production system and installation locations of electrical facilities

Waste Reduction

Establishment of 2030 Milestones

We are working to effectively use resources such as by curbing emissions, source measures, reducing wastes by recycling rubber and plastic chips, and reducing wastes by thoroughly sorting them.

■Scenario for Minimizing Amount of Waste (Waste Reduction Diagram) [Non-consolidated]

■Waste Volume (non-consolidated)

■Waste Volume per Unit Sales (index^*1) (Overseas affiliates)

*1 Figures based on the base year as 100

Data for the past three years >>> Environmental Data

Reduction of waste materials in the production stage

Manufacturing
Collection/recycling

The company’s production engineering and manufacturing divisions are working together to reduce waste in the production stage, combating waste at its source and encouraging recycling. At each plant, we are conducting inspections for all types of waste to identify items for reducing waste by using the genchi-genbutsu system (collecting facts and data at the actual site of the work or problem) to implement waste reductions. We also share examples of waste reduction with both domestic and international Group companies to implement waste reduction throughout the entire Group.

■Waste Generation and Disposal (FY2022 result) (non-consolidated)

Examples:(5) Building a recycling-oriented society_Reduction of waste materials in the production stage

Reduction of Packaging Materials in the Distribution Stage

Collection/recycling

By washing returnable boxes^*2 more frequently and keeping them clean, we are reducing the amount of packaging materials used to prevent products from being soiled. We are also reducing packaging materials by putting lids on returnable boxes and making other changes while maintaining a balance between ensuring product quality and reducing the amount of packaging materials used.

*2 Boxes for transporting products

Satisfying the Plastic Resource Circulation Act

The Plastic Resource Circulation Act went into effect in April 2022, and with a view to our contribution to carbon neutrality, we are committed to designing and manufacturing environmentally friendly 3R + Renewable products.

■Plastic Industrial Waste Volume (non-consolidated)

Development of Product Recycling Technology

Materials
Design
Manufacturing
Recovery/recycling

We develop and design easily recyclable products and materials by taking into consideration the entire lifecycle of automobiles. We are also developing recycling technology for waste material.

■Technology Development for Recycling ELV^* Parts

Key item	Measures implemented
New recycling	Composite material separation technology New recycling technology (high-quality material recycling)
Use of recycled materials in vehicles	ELV parts recycling technology Development of uses for recycled materials
Design of easily-recyclable products	Product design for easy dismantling Materials and composition changes for easy recycling

* ELV: End of Life Vehicle

Examples:(6) Building a recycling-oriented society_Development of product recycling technology

Reducing Water RisksManufacturing

Establishment of 2030 Milestones

We are assessing risks in both water usage and water quality in Japan and international locations, and making improvements at high-risk locations. Even in locations where risks are low, we are trying to reduce water intake amounts for the effective use of resources.

Since FY2021, we have been working to reduce water use by reducing leakage and implementing wider recycling.

We are also working to systematically upgrade our wastewater treatment facilities to produce even cleaner wastewater.

■2030 Milestones for Water Risk Reduction [Global]

	Item	FY2030 Target
High risk area	Water quality	Measures completed at four locations
High risk area	Water intake	Measures completed at seven locations
Low risk area	Water intake per sales unit	11% decrease vs. FY2019

■Water Intake per Unit Sales (index^*4) (non-consolidated)

*4 Figures based on the base year as 100

Data for the past three years >>> Environmental Data

Examples:(7) Building a recycling-oriented society_Reducingwater risks