MITSUBISHI MOTORS’ Materiality

MITSUBISHI MOTORS, with recognition of importance of the United Nations Sustainable Development Goals (SDGs), identified material issues as the important issue that we should wrestle from various challenges in the fields of environment, social and governance in FY2018.

During the identification process, we conducted repeated examinations from the perspective of stakeholders’ concern and impact on the Company, and held hearings with experts. After that, we repeated discussions about our material issues at the Sustainability Committee, and the decision was made at the Executive Committee.

In recent years, social trends related to sustainability have changed substantially and rapidly. After carefully considering the most salient impacts our Company has on the economy, environment and human rights, we are flexibly reviewing material issues and enacting measures as necessary. We aim to respond to stakeholders’ needs and expectations as a result.

In FY2020, in light of changes in social conditions due to the aggravation of environmental problems and the COVID-19 pandemic, MITSUBISHI MOTORS’ material issues were reviewed after discussions at the Sustainability Committee and resolved by the Board of Directors.

In FY2020, considering our responses to the new normal triggered by the COVID-19 pandemic, we have reviewed the material issues of "Work style reform" and "Diversity" and merged them into "Promoting work style reform in response to new normal conditions (Diversity, Work-life balance)." Through the review, we have presented the directions to enhance organizational capabilities and corporate value by creating an environment where diverse employees can maximize their individual abilities and play an active role.

In FY2022, given the need to enhance human capital investment toward our sustainable growth and higher corporate value, after discussions in the Sustainability Committee, we reviewed our material issues and made the following resolutions in the Executive Committee.

The response to the material issues we set in FY2020, "Promotion of work style reforms in response to the new normal (diversity, work-life balance)," achieved certain results during the period of COVID-19 pandemic by expanding flexible work styles based on remote work. As economic activity around the world has gradually returned to normal, we recognize that the need for employee engagement is more important than ever before. Understanding that "employees are capital that support the Company’s growth, we acknowledge the importance of recruiting and promoting diverse talent, recognizing each individual's differences, and providing a workplace environment and equal opportunities where they can thrive.

Based on this understanding, we have revised "Promotion of work style reforms in response to the new normal (diversity, work-life balance)" to "Promoting diversity and inclusion, and enhancement of employee engagement" and have indicated a direction to further strengthen initiatives related to human resources.

MITSUBISHI MOTORS needs to reinforce its management base in order to respond to the various changes taking place in the automotive industry, look at the business environment from a long-term perspective, and respond to medium- to long-term risks and opportunities. To achieve these goals, we recognize the importance of setting annual targets on materiality initiatives from a medium- to long-term perspective.

In FY2021, we took the following steps to set annual targets for individual materiality initiatives.

First, we took a long-term perspective, using 30 years as our time horizon (the period used when formulating Environmental Vision 2050) for responding to environmental issues we consider essential in order to conduct business activities. In the Environmental Policy, we particularly focused on climate change, resource circulation and pollution prevention. For other material issues, we looked ahead to 2030, which is the target year for the United Nations’ Sustainable Development Goals (SDGs). We clarified the social issues (risks) the Company recognizes from a long-term perspective, as well as the effects (opportunities) that could be obtained by addressing these issues. After deliberating with the division general managers in charge of implementing the material issues, we clarified the direction of response.

Looking from the medium-term perspective, or three years into the future, we worked with the division general managers responsible for implementing the material issues to identify the external environment and stakeholders’ needs and expectations. We then set medium-term action targets. The Sustainability Committee deliberated the medium- to longterm aspects of respective material issues, including risks and opportunities, as well as the appropriateness of the annual targets and indicators.

Starting FY2022, we have been reviewing the medium to long-term aspects of each material issue and setting annual targets and indicators. We are progressing with our initiatives based on this review.