MATERIALITY

Reviewing and Identifying Key Issues (Materiality)

Mazda has worked to identify the social issues that the Mazda Group should address while reflecting the external opinions of experts and various other stakeholders and taking into account opinions from both management and the relevant divisions. In July 2016, Mazda identified and disclosed the key issues (materiality). In subsequent years, which saw growing worldwide interest in environmental, social, and governance (ESG) issues, expectations from stakeholders became more specific and the social environments surrounding the Mazda Group underwent some changes. Given these circumstances, in FY March 2018, the Company started to review materiality. In 2021, Mazda identified the social issues that the Mazda Group should resolve through its business and clarified and disclosed the relationship between these issues and the Sustainable Development Goals (SDGs) and targets adopted by the United Nations. Then, given the update to the Medium-Term Management Plan and Management Policy up to 2030, announced in November 2022, Mazda once again reviewed its materiality.

Materiality Review and Identification Process

In reviewing materiality, Mazda took into account two perspectives. One is the stakeholders' perspective in reference to the SDGs adopted by the United Nations and the details of surveys conducted by global ESG rating organizations. The other perspective is the importance to the Mazda Group, for instance, business initiatives toward realizing the Management Policy up to 2030.

Step 1 Extraction of social issues

To select social issues from the stakeholders' perspective, Mazda analyzed and clarified what investors and the global society expect of the Company from the details of surveys conducted by global ESG rating organizations. As for the importance to the Mazda Group, specific issues described in the Management Policy up to 2030, "Sustainable Zoom-Zoom 2030,"and the Company's securities report were analyzed so as to select the social issues.

Step 2 Evaluation of the impact / prioritization of social issues

Mazda identified potential priority issues to be tackled by evaluating the social issues selected in Step 1 according to two axes: Impact on stakeholders*1 and impact on the Mazda Group.*2 The Company also clarified the themes to be addressed from a long-term viewpoint by correlating with the 169 targets of the SDGs.

Step 3 Validation

To validate the priorities of themes identified in Step 2, discussions were held with management to reach a consensus regarding the priorities.

Step 4 Disclosure of materiality

A specific action plan is currently being prepared to ensure steady implementation of the materiality themes identified in Steps 1-3 and follow up on the progress. The materiality themes that Mazda recently identified and an action plan that will be formulated henceforth will be disclosed to stakeholders. By periodically evaluating and revising the materiality themes and plan, Mazda will implement a plan-do-check-act (PDCA)  process.

*1 Expectations for the Mazda Group and the automotive industry

*2 Risks and opportunities for the Mazda Group

Mazda will carry out initiatives to address the eight themes of materiality that the Company has identified.

 

Eight themes of materiality

Social issues

(Relevant keywoods)

Mazda's initiatives/targetsSDGs goals

Earth

Endeavoring toward carbon neutrality by 2050

Climate change issues

 

(Carbon neutrality)

  • Efforts to reduce CO₂ emissions over a vehicle’s entire life cycle from the perspective of well-to-wheel and Life Cycle Assessment (LCA).
  • Accumulation of technological assets in line with Mazda’s Building Block concept and utilization of these assets in highly efficient manufacturing.
  • Three pillars for achieving carbon neutrality (hereinafter, "CN") at Mazda's global factories: "Energy Conservation," "Shift to Renewable Energies," and "Introduction of Carbon-Neutral Fuels."
 

[Targets]

  • Achieve CN across the entire supply chain by 2050.
  • Achieve CN at Mazda's factory globally by 2035.
  • Achieve 69% decrease in CO₂ emissions at plants and operational sites in Japan by FY March 2031, in comparison to the level in FY March 2014, and a usage rate of electricity generated from non-fossil fuel sources of 75%*1

 


Promoting resource circulation

Increase in demand for resources and rising amount of waste

 

 

Water resources issues

 

(Circular economy)

  • Increase in the recyclability of new vehicles.
  • Initiatives to promote the three Rs (reduce, reuse, and recycle) at plants and global efforts for zero emissions and the expansion of resource recycling.

 

[Targets]

  • Resource recycling for materials: Achieve zero emissions in manufacturing and logistics processes on a global basis by 2030.
  • Resource recycling for water: Implement an optimal approach to water resources recycling and circulation at model plants*2 in Japan by 2030.

 


People

Uplifting the mind and bodyChanges in values regarding mental and social health
  • Creation of moving experiences in driving and mobility through human-centered approach

 


Strengthening human capital

Decline in the labor force

 

Globalization of the market and diversification of customer needs

 

(Diversity, equity, and inclusion)

  • Respect for the diversity of its employees, Mazda fosters a corporate climate in which every employee can express their individuality while working alongside others to contribute to the Company and society.
  • Work on a variety of health & wellness programs— a diverse range of people with different values and lifestyles— to enjoy their work by finding a healthy balance between their work and personal lives.

 

[Targets]

  • Number of female manager: 80 in FY March 2025, 100 in FY March 2026, 110 in FY March 2027
  • Ratio of applicable male employees taking child-rearing leave (including post-childbirth paternity leave): 60% in FY March 2025, 70% in FY March 2026, 75% in FY March 2027

 

 

 

Society

Realizing an automovie society that offers safety and peace of mindFatal road traffic accidents
  • Promotion of technology development based on Mazda Proactive Safety original safety concept

 

[Targets]

  • Reduce deaths caused by new vehicles to zero through automotive technologies by 2040

 

 


Creating a system that enriches people's lives

Declining population, falling birthrate and aging society, and concentration of population in urban centers

 

Traffic jams and congestion in urban areas and expansion of rural areas where no public transportation is available

 

(MaaS)

  • Building a model of social contribution that will enrich lives by offering safe, secure and unrestricted mobility to people everywhere.
  • Testing a shared mobility service leveraging mobility technologies.

 


Common

to

Earth,

People

and

Society

Improving qualityQuality issues
  • Promotion of consistent quality in all stages, from planning to production.
  • Early detection and early solution of market problems.
  • Building of special bonds with customers.

 

Exploring partnerships for co-creation with others

Once-in-a-century transformation

 

(CASE)

  • Inter-company collaboration: Joint development of technical specifications for next-generation vehicle communication devices.
  • Industry-academia-government collaboration: Hiroshima "Your Green Fuel" Project.

 

*1 Mazda is currently reevaluating these targets in light of the latest situations.

*2 The model plant is a pilot plant where new measures are tested ahead of implementation at other facilities.