Promotion of Sustainability

“SDG Framework Categories” as Priority Sustainability Initiative Areas

Daihatsu formulated “SDG framework categories” relating to people, society, and business as priority areas for its sustainability initiatives. We have incorporated three areas into our annual corporate policies—“developing a safe and secure society in which everyone respects human rights and diversity,” “striving to be a company trusted by society,” and “building a society where everyone can live comfortably for their entire life”—and are steadily implementing sustainability initiatives, mainly through specialized bodies.

Initiative Topics for 2023 Corporate Policies

Setting corporate policy topics based on the “SDG framework categories”

“SDG Framework Category” Formulation Process

To formulate the “SDG framework categories,” Daihatsu selected candidate categories based on international requirements specified by the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) and on Daihatsu’s management policies and issues. From among the candidates, we selected three categories based on the degree of importance to society and the risks and business opportunities for Daihatsu.

My SDG Declaration

To encourage each employee to take ownership of SDG activities, Daihatsu has incorporated corporate policies derived from the “SDG framework categories” into business group, division, and department policies, Group policies, and targets for individual employees. In addition, we deployed the “My SDGs Declaration,” a statement of SDG-related actions to be taken by individual employees, with the aim of raising employee awareness company-wide. Employees stated their declarations on posters and displayed them in their work sites.

Sustainability Initiative Implementation Methods

To achieve our vision of staying close to customers and enriching their lives, we believe implementing the three steps described below will lead to the realization of a sustainable world that leaves no one behind.

Sustainability Promotion Structure

As the automobile industry undergoes what is said to be a once-in-a-century transformation and companies strongly need to contribute to solving social issues including respect for human rights and environmental conservation, Daihatsu has established a structure for promoting sustainability so that we can steadily implement sustainability initiatives in response to those demands. Specifically, we established the “Carbon Neutrality Meeting,” spinning-off carbon neutrality issues from the existing “Daihatsu Environmental Meeting,” to accelerate investigation of and responses to carbon neutrality, a key issue. We also added “human rights” and “social contribution” to the scope of the Daihatsu Environmental Meeting and reorganized it as the Sustainability Meeting. In addition, we established the “Sustainability Committee” as a body to supervise and provide advice on activities by the “Carbon Neutrality Meeting” and “Sustainability Meeting,” which have execution functions. The “Sustainability Committee” periodically reports on the status of progress to the Board of Directors and works to enhance sustainability initiatives based on the opinions of outside expert organizations. Under this structure, we are staying close to customers and other stakeholders while undertaking sustainability initiatives that contribute to environmental conservation through activities unique to Daihatsu.

Organization of Implementing Bodies

Details of Activities by Committees and Meetings to Promote Sustainability

Sustainability Committee

The Sustainability Committee is responsible for proposing policies related to Daihatsu’s sustainability initiatives, their deployment to Daihatsu and its affiliated companies, and supervising and providing advice on the progress of initiatives in response to those policies. The executive vice president chairs the committee and its members are all chief officers, personnel responsible for sustainability at main overseas production sites, and the full-time Audit & Supervisory Board members. The committee announces policies at the beginning of the year and reports on progress to the Board of Directors mid-year and at the year-end. The committee also regularly creates opportunities to obtain opinions from outside expert organizations and works to expand and enhance Daihatsu’s sustainability initiatives in accordance with the “Toyota Supplier Sustainability Guidelines” as members of the Toyota Group.

Carbon Neutrality Meeting

The Carbon Neutrality Meeting, which is chaired by the chief officer of the Corporate Management Group and whose membership comprises all chief officers and relevant executive managers, meets quarterly to promote carbon neutrality throughout the Daihatsu Group. Based on global conditions and the strategies of the Toyota Group, the meeting formulates and implements Daihatsu Group strategies and action measures and follows up on their implementation by regularly sharing information with Toyota. The meeting establishes working groups to address issues such as CO₂ reduction in production, CO₂ reduction in products, and contributing to carbon neutrality in a new mobility society through means such as Mobility as a Service (MaaS) and connected services. The working groups investigate issues, propose solutions, and collaborate with relevant divisions including Group companies to achieve carbon neutrality.

Sustainability Meeting

The role of the previously-active “Daihatsu Environmental Meeting” was changed to that of a body that has execution functions for the Daihatsu Group’s sustainability initiatives. The chief officer of the Corporate Management Group chairs the Sustainability Meeting and its members are executive managers of each business group. We hold the meeting monthly to propose and promote environmental efforts other than those dealing with carbon neutrality, such as harmonious coexistence with nature and the development of a recycling society, and sustainability initiatives as a whole, including human rights and contributions to society and local communities. We circulate the decisions made and the direction of action determined by the meeting among all employees, and deploy to ensure thorough understanding through liaisons selected in advance for each business group.