What is LCA? Sustainability Management at Mazda - The Road to Carbon Neutrality Episode 2

CO2 emissions occur at every stage of a vehicle's lifecycle—from manufacturing and transportation to usage and recycling. Even electric vehicles cannot claim to be truly carbon-free when the electricity they consume comes from fossil fuel sources like coal.

This is why calculating and evaluating CO2 emissions across a vehicle's entire lifecycle is so important. From raw material procurement and manufacturing, to disposal and recycling, reducing the environmental impact at every stage is crucial. To this aim, Mazda has incorporated Life Cycle Assessment (LCA) into its business strategy since 2009.

In this article, Mikako Aoyagi (Communication Supervisory Group), who developed a passion for environmental issues during the COVID pandemic, interviews Ryuji Kawamoto (Development Strategy Planning Department) and Takeshi Fukagawa (Carbon Neutral and Resource Circulation Strategy Department), who are working on carbon neutrality initiatives at Mazda. They explore the concepts of LCA and Mazda's current efforts toward carbon neutrality.

Mikako Aoyagi, Communication Supervisory Group, Communication Supervisory Department.

Fukagawa, Kawamoto, thank you for your time today. I'm Aoyagi, from the Communication Supervisory Group. First, I’d like to ask about the initiatives you’re advancing at Mazda. When did it all start and what are they?

I began working on carbon neutrality projects in 2021. My role is to develop strategies aimed at achieving carbon neutrality not just for Mazda itself, but for everyone connected to Mazda, including suppliers, logistics companies, and dealerships.

Takeshi Fukagawa, Carbon Neutral and Resource Circulation Strategy Department.

Ryuji Kawamoto, Development Strategy Planning Department.

I've been involved with Mazda's LCA strategy since 2015. I primarily calculate LCA stats for new vehicles and develop strategic plans based on this data.

LCA is a term we've been hearing a lot of recently. What exactly does LCA mean at Mazda?

LCA or Life Cycle Assessment is a method of calculating and evaluating environmental impact throughout a product's entire life cycle—from creation to disposal or recycling at the end of its useful life. When we think of reducing CO2 in cars, the most obvious area is exhaust emissions.

But we need to go beyond that and look comprehensively at the environmental impact at every stage, from sourcing raw materials for parts, manufacturing the car, all the way to when the car reaches the end of its life and is scrapped. This holistic view is the fundamental concept of LCA.

Mazda’s LCA approach.

The concept of LCA has actually existed for quite some time. Since the Industrial Revolution, humans have consumed energy to create things. While even back then some people were aware of the negative impact, it didn't become a social concern until around the 1960s. Gradually, society began to question whether our planet could remain sustainable on its current path.

After that, LCA research progressed, particularly in Europe and the US. Then in 1990, the International Organization for Standardization (ISO) established international standards for LCA. At the same time in Japan, an LCA project was launched under the Ministry of Economy, Trade and Industry, leading to active research across various companies and university research institutions.

It’s surprising to learn that concepts like LCA have existed for over half a century. At Mazda, we also apply the Well-to-Wheel concept alongside LCA. What exactly is this?

In the car industry, there are two concepts: Tank-to-Wheel and Well-to-Wheel. The former refers to emissions during driving: CO2 emissions produced from when fuel is put into the tank until it drives the wheels. The latter looks at emissions produced from fuel extraction up to and including driving: CO2 emissions produced not only during driving, but looking at all emissions right back to fuel extraction.

For example, electric vehicles (EVs) are generally perceived as environmentally friendly cars. And from a Tank-to-Wheel perspective, EVs that don't emit exhaust gases or CO2 while driving are rated very highly. However, when you look at it from a Well-to-Wheel perspective, the picture changes completely. In countries heavily dependent on thermal power generation, large amounts of coal are burned to produce electricity for charging EVs, emitting significant CO2. So, we can't definitively say EVs are environmentally friendly just because they don't emit CO2 while driving.

Mazda’s Well-to-Wheel approach.

Back when I was a university student, I wondered about Mazda's approach to EVs. Unlike other companies, they didn't seem to be emphasizing electric vehicles, and I questioned whether that was sustainable for their future.

Although perceptions have gradually changed in recent years, I think the narrative that EVs are always the better choice for the environment became particularly strong around 2019. At that time, there were some people with similar concerns as yours, Aoyagi, and we often had inquiries asking why Mazda wasn’t proactively creating EVs.

It’s interesting to know I wasn’t the only one! But after joining the company and having gained a better understanding of Mazda's electrification strategy, I can see why it makes so much sense to have multiple options, and not just focus on EVs.

From a Well-to-Wheel perspective, Mazda doesn't believe that EVs alone are the answer. Instead, we want to provide multiple solutions—from clean diesel engines to hybrids, plug-in hybrids, and electric vehicles—that can adapt to diverse situations in different regions.

Even when EVs were in the spotlight and everyone in the industry was focused on EV development, we advocated for a multi-solution approach* and continued to pursue carbon-reduction initiatives that addressed the fundamentals.

*Mazda’s multi-solution strategy involves providing appropriate powertrains tailored to each country or region's specific energy infrastructure, considering both local electricity generation methods and available fuel options. 

Although the terminology is different, other Japanese manufacturers are also shifting towards approaches based on Well-to-Wheel thinking. What we've been consistently saying seems now to be gaining acceptance by industry peers, investors, and media, and an industry-wide consensus is beginning to form. It's gratifying to see more like-minded partners moving in the same direction.

In 2009 Mazda adopted an LCA approach and began to double-down on CO2 reduction efforts. How did you go about integrating LCA into Mazda’s business strategy?

Our first objective was to gain a clear picture. We conducted LCA calculations combining various data to understand the environmental impact of our products: Mazda's new vehicles. Based on the factors that became apparent, we continued to examine ways to reduce CO2.

Later, in the long-term technology development vision "Sustainable Zoom-Zoom 2030" announced in 2017, Mazda introduced a multi-solution strategy based on LCA and Well-to-Wheel thinking. At the same time, to support this strategy, we decided to conduct research on LCA calculations and assessment for various regions worldwide, including Japan.

What did the research entail? And what were your findings?

We calculated the CO2 emissions when gasoline, diesel, and electric vehicles each drove 200,000 km in five regions: the United States, Europe, Japan, China, and Australia. For EV charging, we used region-specific electricity values.

Looking at the differences between vehicles, in Japan, China, and Australia—where dependency on thermal power generation is high and fossil fuel usage is substantial—the CO2 emissions of gasoline vehicles at the 200,000 km point are actually lower compared to EVs.

LCA data across the globe. Mazda takes a multi-solution approach to adapt to electricity conditions, environmental regulations, and customer needs in each country and region. By continuing to evolve internal combustion engines that balance Jinba-ittai driving with excellent environmental performance and expanding electrification technologies, Mazda has been working toward fundamental CO2 reduction.

So, from an LCA and Well-to-Wheel perspective, gasoline vehicles actually have lower CO2 emissions than EVs in some regions?

Exactly. Conversely, the US and Europe data revealed the opposite: due to greater renewable energy generation and regional driving patterns, EVs have lower CO2 emissions than gasoline vehicles.

The research shows how when we consider calculations from multiple perspectives, and go beyond during driving as the focus, the environmental impact of each vehicle changes significantly depending on regional energy conditions. From this, we can see how important Mazda’s multi-solution strategy is to ensure we introduce the right vehicles to each location, and adapt to each region's energy situation.

Very insightful. However, this data is from 2018 and the energy situation and infrastructure development across countries has changed significantly. This must mean you have to continuously monitor global trends and revise strategies accordingly, right?

Exactly. Even looking just at the environment surrounding EVs, there have been major changes: battery capacities are increasing while manufacturing efficiency is improving and costs are falling. As you highlighted, we need to be looking at the current reality, and establish strategies based on this. This is where I see my role.

With the results from this data in mind, what initiatives are Mazda taking to reduce CO2?

We have broadly two approaches to reducing CO2 emissions at Mazda: one, how we can avoid using energy; two, where energy must be used, how to switch to cleaner energy. The first approach is basically energy conservation, or how to manufacture with minimal energy. But energy conservation isn't something new for Mazda; we've continuously improved to maximize production efficiency in car manufacturing. And by being consistent in our efforts, we can move closer to our carbon neutrality goals.

https://www.youtube.com/watch?v=3-_HJx1sXRk

High school students from Hiroshima visited Mazda headquarters to observe Mazda's clean energy initiatives.

We're also implementing various initiatives to consider how to switch to clean energy. Mazda is unique in that we’ve established power plants within our factories to generate the energy used for car manufacturing. We're also working to move from coal-fired power to cleaner alternatives for this energy.

For instance, in 2021, we installed our first solar panels at our headquarters factory, contributing to CO2 reduction equivalent of about 240,000 cedar trees. We also have plans to build a new power plant fueled by ammonia (a zero-carbon fuel when burned), as we gradually reduce our dependence on fossil fuels.

The Energy Center at Mazda’s Hiroshima Plant. Mazda’s Hofu Plant in Yamaguchi also has an onsite power plant, generating much of the power used in the factory.

What strategy has Mazda implemented to achieve the Japan government's goal of carbon neutrality by 2050?

Achieving carbon neutrality isn't something Mazda can accomplish through its efforts alone. From an LCA perspective, we need to aim for carbon neutrality across the entire supply chain, including our parts suppliers, logistics companies that transport our vehicles, and dealerships that sell our cars. For this reason, while Mazda must take the initiative in promoting energy conservation and clean energy alternatives, we also need to demonstrate that doing so not only benefits the global environment but also creates opportunities for business growth.

I see. Now, for my final question, how do you both hope to contribute to achieving carbon neutrality, as Mazda employees and as individuals? 

Achieving carbon neutrality might feel like an enormous goal, but it doesn’t have to be. We can start small, just doing what we can. For example, turning off lights at home when not needed. These actions, repeated over time, all add up and ultimately lead to carbon neutrality. When everyone participates, we can reach our goal faster. More than as a Mazda employee, this is something I take to heart as an individual sharing this planet.

The results of LCA calculations change significantly with global trends. That’s why it's important to constantly monitor what's happening in the world and incorporate that into our work. I plan to keep this in mind as I continue developing cars.

Beyond that, it's about creating a network of like-minded partners and collaborators. Carbon neutrality isn't something that can be achieved alone. We need to work in cooperation and partnership not just with team members but also with people outside Mazda, which is why it’s so important to have a community of partners who support LCA, Well-to-Wheel, and Mazda's multi-solution strategy. Expanding this community is my priority right now.