MATERIALITY

Identification and Review of Materiality Themes

Based on the opinions of experts and various other external stakeholders as well as opinions from both management and relevant divisions, we identified the social issues that the Mazda Group should address, which were compiled and disclosed as key issues (materiality) in July 2016. Amid the growing worldwide interest in environmental, social, and governance (ESG) issues seen in the subsequent years, expectations from stakeholders became more specific and the social environment affecting the Mazda Group underwent some changes. In response to these changes, the Company commenced a review of its materiality themes in FY March 2018. Through this review, in 2021 we identified the social issues that the Mazda Group should address 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, in response to the updates to the medium-term management plan and Management Policy up to 2030 announced in November 2022, Mazda once again reviewed its materiality theme.

In addition, we have updated the targets for directly operated factories and offices in Japan for FY March 2031 contained in our targets related to the materiality theme of endeavoring toward carbon neutrality by 2050.

Materiality Review and Identification Process

In reviewing its materiality themes, Mazda took into account two perspectives. The first was the perspective of stakeholders in reference to the SDGs adopted by the United Nations and the details of surveys conducted by global ESG rating organizations. The second perspective was the importance to the Mazda Group in relation to, for instance, business initiatives for enacting the Management Policy up to 2030.

Step 1: Selection 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 when selecting social issues.

Step 2: Evaluation of impact and 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 these themes 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 themes

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) cycle.

*1 Expectations for the Mazda Group and the automotive industry
*2 Risks and opportunities for the Mazda Group

Eight Materiality Themes and Related Initiatives
Eight materiality themes

Social issues
(Relevant keywords)

Initiatives, targets, and related statisticsRelevant SDG goals

Earth

Endeavoring toward carbon neutrality by 2050

Climate change issues
(Carbon neutrality)

【Initiatives】

  • Efforts to reduce CO₂ emissions over a vehicle's entire life cycle from the perspective of well-to-wheel and life cycle assessment
  • Accumulation of technological assets in line with Mazda's Building Block concept and utilization of these assets in highly efficient manufacturing
  • Initiatives for achieving carbon neutrality at Mazda's global factories by 2035 based on three pillars of energy conservation, shift to renewable energy, and introduction of carbon-neutral fuels
    (Climate Change)

【Targets】

  • Achieve carbon neutrality across the entire supply chain by 2050
  • Achieve carbon neutrality at Mazda's global factories by 2035
  • Achieve 46% or more decrease in CO₂ emissions at factories and offices in Japan*1 by FY March 2031 in comparison to the level in FY March 2014 (revised from prior target to align with Japanese national target)

【Statistics from FY March 2025】

  • Total Scope 1, Scope 2, and Scope 3 greenhouse gas emissions of 62,978,000 t-CO₂e*2
  • Total Scope 1 and Scope 2 greenhouse gas emissions of 649,000 t-CO₂e (24% reduction in comparison to FY March 2014)*1

 


Promoting resource circulationIncrease in demand for resources and rising amount of waste

Water resources issues
(Circular economy)

【Initiatives】

  • Increase in the recyclability of new vehicles
  • Initiatives to promote the 3Rs (reduce, reuse, and recycle) at plants and global efforts toward achieving zero emissions and expanding resource recycling
    (Resource Circulation)

【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*3 in Japan by 2030

【Statistics from FY March 2025】

  • Resource recycling for materials*4: CO₂ emissions from logistics processes of 59,600 t-CO₂e
  • Resource recycling for water*5: Water intake of 5,869 m3 (reduction of 37% in comparison to FY March 2014)

 


People

Uplifting the mind and bodyChanges in values regarding mental and social health

【Initiatives】

 


Strengthening human capitalDecline in the labor force

Globalization of the market and diversification of customer needs

(Diversity, equity, and inclusion)

【Initiatives】

  • Cultivation of organizational culture encouraging action based on the customer's perspective
  • Promotion of respect for diversity and success of diverse human resources
    (Human Capital)

【Targets】

  • Number of female managers*4: 80 in FY March 2025, 100 in FY March 2026, and 110 in FY March 2027
  • Ratio of applicable male employees taking child-rearing leave (including post-childbirth paternity leave)*4: 60% in FY March 2025, 70% in FY March 2026, and 75% in FY March 2027

【Statistics from FY March 2025】

  • Number of female managers (middle manager or above) of 87*4
  • Ratio of applicable male employees taking child-rearing leave (including post-childbirth paternity leave) of 60%*4

 

 

 

Society

Realizing an automotive society that offers safety and peace of mindFatal road traffic accidents

【Initiatives】

【Targets】

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

 

 


Creating a system that enriches people's livesDeclining 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)

【Initiatives】

  • Build a model for social contribution that will enrich lives by offering safe, secure, and unrestricted mobility to people everywhere
  • Testing of a shared mobility service leveraging mobility technologies
    (Creation of Frameworks for Enriching People's Lives)

 


Common to Earth, People, and Society

Improving qualityQuality issues

【Initiatives】

  • 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
    (Quality)

 

Exploring partnerships for co-creation with othersOnce-in-a-century transformation
(CASE technologies)

【Initiatives】

  • Inter-company collaboration: Promotion of coordination for enhancing technological capabilities and generating synergies
  • Industry-academia-government collaboration: Contribution to communities by developing new creative technologies and fostering human resources capable of bringing about innovation through collaboration with local companies, universities, and government agencies
    (Open Innovation (Exploration of Partnerships for Co-Creation with Others))

 

*1 Sites including Mazda's Head Office and Hiroshima Plant (Aki-gun and Hiroshima City in Hiroshima Prefecture), Hofu Plant (Hofu City, Yamaguchi Prefecture), and Miyoshi Plant (Miyoshi City, Hiroshima Prefecture)
*2 Scope 1 and Scope 2 figures are for Mazda Motor Corporation, 20 domestic consolidated subsidiaries, 10 domestic equity-method affiliates, 24 overseas consolidated subsidiaries, and four overseas equity-method affiliates. Scope 3 figures are for applicable consolidated subsidiaries and equity-method affiliates.
*3 Model plants are pilot plants where new measures are tested ahead of implementation at other facilities.
*4 Figures are for Mazda Motor Corporation (non-consolidated basis).
*5 Figures are for Mazda Motor Corporation, 20 domestic consolidated subsidiaries, and 10 domestic equity-method affiliates.