MAZDA:Mazda Publishes Social and Environmental Report 2006

News Release

2006/08/30

Mazda Publishes Social and Environmental Report 2006

HIROSHIMA, Japan—Mazda Motor Corporation today issued its Social and Environmental Report 2006 in Japanese* which features the results of its corporate social responsibility (CSR) initiatives and environmental protection activities conducted during fiscal year 2005 (April 2005—March 2006).

Mazda has produced an annual environmental report since 2001, and an annual CSR report that contains supplemental social information since 2004.

The Social and Environmental Report (SER) 2006 is the most diverse to date, with information on Mazda's international cultural exchange projects and contributions towards the promotion of human rights. It also introduces projects being led by women in quality circles and contains enhanced environmental information, such as the mid-term environmental plan "Mazda Green Plan 2010." Additionally, contents include local community initiatives and environmental information concerning overseas affiliates of the Mazda Group. Every page also features stakeholders' comments.

Special features on Mazda's original initiatives, such as "Global Society and Mazda" and "The Global Environment and Mazda", have been put together for the report. The report also contains information on Mazda's efforts for its stakeholders, environmental achievements, and the "Fiscal 2005 Performance Report."
* The English version will be released at a later date

Highlights of the SER 2006 report include:
Global Society and Mazda
- This includes an international procurement project undertaken in collaboration with Ford Motor Company to contribute toward the promotion of human rights and support environmental concerns worldwide, and this section also highlights efforts towards:
- Promoting a workforce in Mazda's China operations that respects diversity.
- Initiatives led by women who formed quality control circles and proposed changes to make the assembly line more friendly to female workers.
- Development of advanced safety technologies such as Mazda's "Pre-crash Safety System".

Global Environment and Mazda
- This section includes a transcript of the discussion between the project manager of the Mazda RX-8 Hydrogen RE, the world's first hydrogen-powered car to be leased commercially and a representative from one of its customers, Iwatani International Corporation.
- Development of the automobile industry's first high-strength, heat-resistant bioplastic that can be used for vehicle interiors.

Achievements in FY2005
This section showcases initiatives for stakeholders, including information on:
- Customers: introduction of the Visual IT Presentation system, a tool that explains various features of a vehicle in a way that is easy to understand for potential customers.
- Suppliers: Green Plan Procurement guidelines were issued in May 2005.
- Shareholders/investors: Mazda achieved a "FTSE4 Good" rating in recognition of its CSR activities.
- Employees: introduction of the "Family of Experts" system that promotes employment after retirement.
- Community/Society: Mazda supported social action initiatives, including a program to protect wildlife in South Africa and a non-profit organization that supports sick children in Italy. Our overseas organizations, such as the Mazda Foundation of New Zealand (which was established in November 2005) also undertake various activities.

Environmental Initiatives
- The report also highlights the "Mazda Green Plan 2010", a mid-term environmental plan which is focused on achieving more eco-friendly emissions.
There are a total of 33 environmental targets set for 2010, such as the drive to recycle vehicles and reduce global warming. It also includes the results from FY2005.
- Environmental accounts have been extended to include overseas data.
Funds allocated to environmental conservation (by Mazda Motor Corporation in Japan) totaled 47.87 billion yen (180 million yen more than last year).
- Emissions of chemical substances (Pollution Release and Transfer Register (PRTR) listed substances) have been reduced by 52 percent since FY1998.

Overview of Mazda Green Plan 2010

Initiatives	FY2010 targets	FY2005 achievements
Cleaner exhaust emissions	Japan - Achieve the Super Ultra Low Emission Vehicle (SU-LEV) standard in most passenger vehicles.	Japan - The Super Ultra Low Emission Vehicle standard was achieved in the MPV, Mazda5, Mazda2, Mazda6, Verisa, and Mazda3. - Mazda achieved the standard for 92.3% for passenger vehicles (75.1% for SU-LEV and 17.2% for U-LEV).
	US - Promote introduction of low emission vehicles that meet Tier2/LEV2 regulations.	US - The Tier2/LEV2 regulations were met for most vehicles.
	Europe - Develop and launch next-generation clean diesel vehicles.	Europe - DPF engine models were introduced for the Mazda3, Mazda5, and Mazda6.
Improved Fuel economy	Japan - Continue to meet the fuel economy standard for 2010 for all weight classes of passenger vehicles, and promote further improvements in fuel economy for the Japanese market.	Japan - The 2010 fuel economy standards were achieved for all passenger vehicles except for the 1.5-ton passenger vehicle class.
	US - Continue to meet the Corporate Average Fuel Economy (CAFE) regulations, which are expected become stricter in the future.	US - For both passenger vehicles and commercial vehicles, CAFE fuel efficiency standards were achieved.
	Europe - To promote reduction of the corporate average CO₂ emissions	Europe - Corporate average CO₂ emissions were reduced by 4.6g/km from the FY2004 level (internal calculation).
Vehicle weight reduction	- Achieve Mazda's target vehicle weight.	- Plans to reduce vehicle weight were pursued, such as installing aluminum bonnets and trunk lids on the Roadster (MX-5).
Noise reduction	- Meet Mazda's voluntary standards for noise reduction, which are stricter than the latest noise reduction regulations.	- The noise reduction level for all vehicles met Mazda's voluntary standard figures.
Development of alternative fuel vehicles	- Develop and introduce more vehicles equipped with the hydrogen rotary engine.	- The Mazda RX-8 Hydrogen RE, which is equipped with a rotary-engine that can run on both gasoline and hydrogen fuel, was delivered to two companies in the energy sector. - The Premacy Hydrogen RE Hybrid was exhibited at the Tokyo Motor Show.
	- Promote development of hybrid vehicles.	- Ten Tribute Hybrids were donated to the Orange County Fire Authority in California, in the United States.
	- Promote development of alternative fuel technologies for biomass or synthetic fuels.	-Technology that enables use of B5, a blend of 5% biomass fuel and 95% petroleum diesel fuel, was introduced in Europe.
Reduction of environmentally unfriendly substance use	- Hexavalent chromium: zero use by the end of 2006	- Hexavalent chromium: Use of hexavalent chromium in some parts was eliminated through development of a substitution technique.
	- Lead: zero use (except for use in soldering, batteries, as a steel additive to improve machinability etc).	- Use of lead was eliminated for parts subject to regulations.
	Mercury: zero use (except for use in LCD displays, and high-intensity-gas-discharged headlights etc).	- Use of mercury was eliminated except for LCD displays and high-intensity-gas-discharged headlights.
	Cadmium: zero use	Use of cadmium was eliminated for parts subject to regulations.
	- Reduce the amount of refrigerant used in car air-conditioners: reduce the use of hydrofluorocarbon (HFC) by 20% or more from the FY1995 level.	- Technology which reduces the amount of HFC by 10% or more compared to the FY1995 level was installed in the Verisa, Mazda3, Mazda5, Mazda6, MX-5, RX-8 and the MPV.
	- Promote development and application of new alternative refrigerants less harmful than CFCs, such as HFC134a.	-Mazda carried out research into new refrigerants for car air-conditioners that are less harmful to the environment.
Reduction of Volatile Organic Compounds (VOC) used in cabin interiors	- Conform to cabin interior concentration levels set by the Japanese Ministry of Health, Labor, and Welfare for all new products.	- A body sealer with reduced VOC emissions was adopted. - Methods to lower VOC emissions were employed for some interior parts. - A deodorizing filter with an aldehyde removal feature was offered as an option on core models.
Vehicle recycling (at the development stage)	- Create new vehicles that are easy to disassemble and recycle.	- 90% recyclability was achieved with the all-new MPV and the Roadster (MX-5).
	- Develop state-of-the-art bumper recycling technology and to use recycled materials for new vehicle parts.	- Recycled bumper material was used for the all-new MPV as well as the RX-8.
	- Promote development of bioplastics that have sufficient quality, strength and heat resistance to be used for interior parts.	- A high-strength and heat-resistant bioplastic was developed thanks to a joint industry-government-academia project.
Reduction of industrial waste	- Reduce the total volume of landfill waste resulting from domestic production to zero.	- Direct landfill waste volume was reduced by 0.5% compared to the FY1999 level. (365 tons per year). - Incineration was totally eliminated.
Reduction of industrial waste	- Reduce use of packaging materials by 30% from to the FY1999 level.	- Use of packaging materials was reduced by 20.5% compared to the FY1999 level.
Measures to combat global warming	- Reduce CO₂ emissions from domestic production by 10% from the FY1990 level.	- CO₂ emissions from domestic production were reduced by 24.2% from the FY1990 level.
Measures to combat global warming	- Reduce CO₂ emissions from distribution by 15% from the FY1990 level.	- CO₂ emissions from distribution were reduced by 12% from the FY1999 level.
Vehicle recycling	- Achieve the 2015 standards ahead of schedule: Automobile Shredder Residue (ASR) (waste produced through destruction of end-of-life-vehicles): make 70% recyclable Vehicle: 95% recyclable	ASR: 63% recyclable Vehicle: 94% recyclable
Vehicle recycling	- Increase volume of waste bumpers collected from Mazda associated dealerships.	- Collected 52,476 bumpers.
Reduction of VOC emissions from paints.	- Reduce the concentration of VOC emissions to 30g/m².	- Reduced the concentration of VOC emissions to 34.3g/m².
Projects with suppliers	- Promote EMS (Environment Management System) development among suppliers. Design a plan to maintain and improve EMS for suppliers.	- 97% of major suppliers achieved ISO14001.
Conservation projects with sales companies	- Implement a unified EMS target for 19 sales companies (initial target). Started in FY2006 with the major sales companies, and proceeding in order.	Materials and management techniques were advanced in preparation for the introduction of MECA21 (Mazda's Environment Care Approach 21) in FY2006. To prepare for the introduction of MECA21 in the first half of FY2006 Mazda also commenced a training exercise. (MECA21 is a set of independent environmental guidelines designed in conjunction with the Mazda Dealership Association.)
Conservation projects with parts sales companies	- Introduce EMS to Mazda's parts sales companies (13 companies)	Started to introduce EMS to parts sales companies (Mazda carried out EMS training seminars and implemented leadership seminars with five companies as a start.
Communication with the community	- Hold environmental events and proactively promote participation.	- Made a presentation in a month-long environmental exhibition and "Eco Car World" - Published the Social and Environmental Report 2005
Community projects	- Organize a voluntary local area clean-up - Organize environmental education by dispatching lecturers.	- Participate - volunteer cleam-up in local. - Dispatch lecturers to environmental talks.
Community projects

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