Issues Surrounding the Automobile Industry

It is becoming increasingly urgent for companies in the automobile industry to take concrete steps to resolving issues facing the earth and society that are a cause of concern to people in their everyday lives. Of particular importance are measures to address climate change. To make meaningful progress in our efforts to shift to a carbon neutral society, vehicle manufacturers like Mazda have a key role to play, and the breadth of this role encompasses a wide range of areas. Furthermore, one of our important missions is to build a safe and secure automotive society in emerging countries where automobile ownership is increasing and in regions where the aging of the population is advancing, especially in developed countries.

Commitment to Resolving Issues

Earth: Achieving Carbon Neutrality

Taking measures to address global warming and other issues related to climate change are urgently needed. To contribute to resolving these issues, Mazda announced its Endeavor for Carbon Neutrality by 2050 in January 2021. To achieve this, we will first strive to realize carbon neutrality at Mazda factories around the globe by 2035. To accomplish our interim target, we will focus our efforts on the following three areas: energy conservation, a shift to renewable energies, and the introduction of carbon neutral fuels for in-house transportation.
As a member of the Carbon Neutral Electricity Promotion Subcommittee, one of the expert subcommittees of the Carbon Neutrality Promotion Council established by the Chugoku Economic Federation in November 2021, Mazda has been participating in activities together with the five prefectural governments of the Chugoku region, local power companies, and businesses in the region. The council brings together various players across diverse industries in the region who are cooperating in promoting the widespread use of renewable energies and a circular economy.
To respond to fluctuating factors in the external environment and future uncertainties in business environment in a flexible manner regarding the electrification, our approach is to divide the period up to 2030 into three phases. In the first phase, we will make use of our technology assets comprising multiple electrification technologies to achieve both a reduction in our environmental footprint and produce attractive products. In the second phase, we will introduce a new hybrid system and battery EV vehicles based on multiple electrification technology while commencing the introduction of battery EV vehicles in the latter half of this phase. In addition, we will introduce battery EV vehicles in China, where electrification is advancing.
In the third phase, we will promote the full-fledged launch of battery EV vehicles and consider investing in battery production. Bearing in mind electrification policies and trends toward tighter regulations in various countries as well as consumers' needs and receptivity, we will proceed with electrification step by step together with our partners.

People: Offering Moving Experiences that Uplift Mind and Body

To drive safely, a driver must recognize potential hazards, exercise good judgment and operate the vehicle in an appropriate manner. Driving a car allows people to continue to maintain a broad range of activities, and the experience of such activities is also mentally and physically uplifting. In developed countries where the aging of the population is accelerating, this is also vital from a well-aging perspective as such activities can also enrich and develop people's potential.
While offering value derived from a human-centered philosophy, which everyone at Mazda gives utmost priority to, we will continue to create moving experiences that uplift and energize people, bringing more enjoyment to everyday life.

Society: Realizing an Automotive Society that Offer Safe and Peace of Mind

Realizing a safe automotive society free of from traffic accidents is an obligation that vehicle manufacturers should adopt at their own initiative.
Guided by Mazda Proactive Safety, our own safety philosophy, we will continue to apply IT technologies to further develop advanced driver assist technology based on research on humans. We will produce vehicles that are safer and more reliable, not only for drivers and passengers, but also for people in the vicinity of vehicles. We aim for no new Mazda vehicle to cause a fatal accident that is avoidable with automotive technologies by 2040.

Ongoing Commitment to Fulfilling Stakeholders' Expectations

To enhance corporate value over the medium and long term, strengthening the management base that serves as the Company's foundation is essential. We will continue to strengthen and enhance our corporate governance so that we can maintain good relationships with all stakeholders, ensure thorough legal compliance, and make fair, transparent, prompt, and decisive management decisions.
In December 2021, we formulated the Basic Policy on Sustainability. Moreover, to share our commitment to reinforcing our governance with outside stakeholders more transparently, we have newly disclosed a skill matrix for all directors, including outside directors. Through measures like these, we are reinforcing our corporate governance and enhancing our disclosure.
In regard to non-financial information related to ESG on the themes earth, people, and society set out in the Basic Policy on Sustainability, and management underpinning these, we will make greater efforts in our communication of information and engaging in dialogue with our stakeholders in both financial and non-financial matters.

Further Growth Through Commitment to Mazda's Unique Value

Aware of the value of an in-depth understanding of people, we will continue to create unique value based on our human-centered development philosophy. In manufacturing, we will continue to refine Joy of Driving, which is a moving experience for people, as our unique value, based on our human-centered development philosophy of believing in human ability, building on human research, and enriching and developing human abilities. To create human connections in areas such as sales and services, we will respect our customers as unique individuals and address their requests and problems promptly and appropriately in efforts to establish enduring relationships. Manufacturing and the creation of human connections based on our human-centered philosophy will generate unique value, which will resonate with customers and other stakeholders and foster emotional ties, resulting in people's long-term association with Mazda. Through the ongoing development of such connections, we will strengthen our brand value management for realizing further growth.
The source of such unique value of Mazda lies in each individual member of the Mazda Group. Through the dedicated pursuit of a comfortable working environment and job satisfaction for employees, we will achieve an attractive corporate environment where all employees can feel proud of their jobs and work enthusiastically and energetically. In addition, we will make a wide variety of investments, including those as support for employees' capacity development, to boost our corporate growth. By doing so, we will facilitate employee's performance and growth.
While continuing to share our determination with the Group's employees, business partners, suppliers, distributors and dealers, we will respect all stakeholders and customers and work hard to enhance our brand value and fulfill the expectations of society. In all our endeavors, we ask for your ongoing support and understanding.