ENVIRONMENTAL SUSTAINABILITY REPORT 2002

ENVIRONMENTAL SUSTAINABILITY REPORT 2002

Introduction to the Mitsubishi Motors

Corporate profile (March 31, 2002)

Environmental Sustainability Report 2002 Company name MITSUBISHI MOTORS CORPORATION

The Mitsubishi Motors Environmental Sustainability Report is a regular report

Establishment and start of business

published by Mitsubishi Motors Corporation

Establishment

April 22, 1970

(MMC) to keep our stakeholders informed of

Start of business

June 1, 1970

the environmental impact of our business activities and the various measures being

Head office 5-33-8, Shiba, Minato-ku, Tokyo 108-8410, Japan

taken to reduce their impact.

TEL: +81-3-3456-1111

Period:

Objectives

This report mainly covers the one-year period

1 To develop, design, manufacture, assemble, sell or purchase,

from April 1, 2001 to March 31, 2002, i.e. fiscal 2001. Activities ongoing since before this period,

export and import and otherwise deal in motor vehicles and components thereof and replacement parts and accessories thereof. 2 To develop, design, manufacture, assemble, sell or purchase,

changes over time and other data from

export and import and otherwise deal in agricultural machinery

before fiscal 2001 are also described where

and industrial engines, etc., and components thereof and

necessary. In order to provide up-to-date information on the situation up to the

replacement parts and accessories thereof. 3 To sell or purchase used motor vehicles and components there of and replacement parts and accessories thereof.

publication of this report, some information

4 To sell test-machines, meters, gauges, etc.

from after March 2002 is also included.

5 To carry out an agent's business of non-life insurance and insurance conformed to the Automobile Accident

Scope: The focus of this report is on MMC’s environmental information in Japan. The environmental impact of all MMC’s

Compensation Security Act. 6 To carry out financial services. 7 To carry out any business incidental or relating to any of the foregoing. * Not currently engaged in the agricultural machinery business.

business activities and its environmental protection activities are described by looking

Asset

at the impact and activities being undertaken

Capital:

at each stage of the vehicle lifecycle. From this year’s report, we also include

252,201,223,926

Outstanding share: 1,470,163,624 Authorized share: 3,220,000,000 Number of shareholders: 42,326

information on MMC’s economic and social activities.

Employees

Some information is also provided

18,498

concerning our affiliates and the situation overseas.

Consolidated subsidiaries, etc. Consolidated subsidiaries: 182 Affiliates accounted for by the equity method: 32

To ensure completeness and accessibility to the reader, this report was produced

Turnover

following the Japanese Ministry of the

Non-consolidated:

Environment’s “Environmental Report Guidelines (2000)”.

Consolidated:

1,848.7 billion

3,200.7 billion

Homepage address http://www.mitsubishi-motors.co.jp/

CONTENTS

PresidentÕs Message Outline of the Environmental Sustainability Report 2002 Economic Activities Business policy Outline of performance in fiscal 2001 Activities within Japan Overseas activities The Mitsubishi Motors Group

Environmental Activities Environmental Management MMC Environmental Guidelines MMC Environmental Sustainability Plan Organizational Structure Measures by Affiliates ISO14001 Certification Environmental Auditing Emergency Measures and Environmental Incidents, etc. Internal Education and Personal Improvement Communication Environmental Accounting

Measures to Reduce Environmental Impact (1) Targets and Performance in Fiscal 2001 (2) Environmental Impact throughout the Vehicle Lifecycle (3) Development and Design (4) Procurement (5) Production (6) Logistics (7) Sales (8) Use of products (9) Recycling (10) Environmental Protection in the Office

Social Activities Consumer Awareness Activities Culture Sports Contribution to the Local Community Making Barrier-Free Products Cover : Airtrek

Employee Safety

Appendix History of Environmental Activities Main Business Establishments and Affiliates

About MMCÕs Environmental Activities Questionnaire

2 3 6 10 11 14 15 16 17 19 20 20 21 21 22 23 24 26 27 28 29 30 44 46 47 58 65 66 67 67 69 69 70 71 73 74

1

President’s Message

Automobiles are vitally important to modern-day society. Whether as a means of transport or the lynchpin of logistics, or as a tool for leisure and recreation, automobiles play an inextricable part in our everyday life. And in Japan and around the world, Mitsubishi automobiles are playing their part in keeping people and goods moving. At the same time, though, automobiles impact on the environment in a variety of ways. Throughout their lifecycle, from their production to their use and disposal, they consume energy and resources, and emit greenhouse gases and environmentally hazardous substances. As a worldwide active company, Mitsubishi Motors Corporation (MMC) is keenly aware that we need to thoroughly consider the impact on the environment of the production, distribution, sale, use and disposal of our products. Environmental problems such as global warming, depletion of the earth’s resources, environmental pollution and the increasing volume of waste generated are growing increasingly serious. Concerns of this nature have led to calls for society to transform itself from a mass production, mass consumption and mass disposal society to a sustainable one capable of continued social and economic growth in harmony with the environment. All kinds of moves are now afoot in this direction, both in Japan and overseas. These include the ratification of the Kyoto Protocol by Japan and other countries, the World Summit on Sustainable Development held in Johannesburg, and the establishment of programs for recycling automobiles and other products. In keeping with this trend, MMC has adopted a mid-term environmental action plan, called the MMC Environmental Sustainability Plan, which places an even greater focus on environmental sustainability in our activities, and sets out to make MMC an environmental pacesetter in the business community. The plan, which started in fiscal 2002, sets concrete targets in 28 categories covering four fields—environmental management, recycling, prevention of global warming, and prevention of environmental pollution—and specifies where possible the means and timescale for their attainment. For example, MMC was the first car manufacturer to commit to achieving the domestic fuel efficiency standards for 2010 by fiscal 2005. Our dream is to produce exciting and attractive automobiles while at the same time preserving the environment for future generations. Achieving this dream will be a challenge. But we are committed to getting there step by step, doing all we can.

Rolf Eckrodt President & CEO Mitsubishi Motors Corporation

Environmental Sustainability Report 2002 Summary

Below are summarized MMC’s main economic, environmental and social activities in FY2001.

Economic Activities (P.6-15) Alliance with DaimlerChrysler

( billion)

Sales and profit in FY2001

55.9

60

MMC’s strategic alliance with DaimlerChrysler (DC) since 2000 was expanded in April 2001 from just passenger car operations to cover trucks and buses as well.

( billion) 4,000

3,735

3,500 3,000 2,500

2,501

3,613

50

3,335 3,277

30

2,334

2,000

2,107

2,013

MMC’s new management plan, the Turnaround Plan, was launched in April 2001. By steadfastly following this plan, MMC aims to achieve a rate of operating profit to consolidated sales of 4.5% in FY2003. In the first year of the plan in FY2001, MMC registered a profit (see right), exceeding the goal for the first year of breaking even.

21.8

20

1,849

22.5 13.4

16.7

3.2

10

1,500

Launch of Turnaround Plan

40.2

40

3,201

0

1,000

-10

500

-20

0 1997

1998

1999

2000

2001 (FY)

15.5

-30

Sales: non-consolidated (left), consolidated (right)

-40 - 50 - 60 - 70

New models in FY2001

85.3

1997

1998

1999

73.9

2000

2001

Operating profit: non-consolidated (left), consolidated (right) Airtrek

(FY)

eK Wagon

Environmental Activities (P.16-65) Environmental management (P.16-25) Environmental Sustainability Plan MMC developed a mid-term environmental action plan called the MMC Environmental Sustainability Plan. Scheduled for completion in five years, the plan went into effect in FY2002. Adopting as a goal the “provision of attractive cars while simultaneously preserving the environment for future generations”, MMC are performing various activities following this plan at each stage for the automobile lifespan, such as ‘produce’, ‘use’ and ‘recycle’. Establishment of Recycling Promotion Office The Recycling Promotion Office was established in March 2002 in order to respond more swiftly to and play a greater part in vehicle recycling, both in Japan and overseas.

Increase in ISO14001 certification The following affiliates newly acquired ISO14001 certification in FY2001: Japan

Overseas

Environment-related recalls One environment-related recall was reported to the Ministry of Land, Infrastructure and Transport.

Mizushima Industries MSC (Thailand) MMPC (Philippines) MTE (Portugal)

Results of external assessment of environmental management system External assessment of each plant resulted in no major non-conformance, two minor non-conformances and 18 observations. Overall, environmental management systems were found to be properly operated and maintained.

FY2001 environmental accounting The total cost to curb and reduce the impact on the environment was approximately 45.0 billion. Environmental damage costs 0.1%

Business area costs 11.0%

Social activity costs 0.7%

Upstream/ downstream costs 0.2% Management activity costs 2.4% R&D costs 85.5%

Breakdown of environmental protection costs

2-3

Measures to reduce environmental impact (P.26-65) Production and logistics

PRTR survey results

Energy use at production stage Total energy use (CO2 emissions) was down 13% from FY2000 to 515,000tCO2, meeting the target of keeping use below 543,000t-CO2.

Release and transfer of pollutants covered by the PRTR system are shown below. Air 33.60% Consumed

Emissions movement

50.85%

2,940t

Use

6,619

Water 0.05% Waste 10.76% Recycled 0.61% Eliminated 4.12%

(1,000t-CO 2) 1000 800 600

Other 3,679t

720 691 690 679 705 706 701 662 626 611 594

515

Public test drive round Shikoku by Eclipse EV In August 2001, an experimental prototype electric vehicle powered by a high-performance motor and battery, the Eclipse EV, underwent public road trials around the island of Shikoku. It succeeded in traveling a distance of 780km, stopping only once to be recharged.

Breakdown of surveyed substances used, releases and transfers, etc. (FY2001)

400

CO2 emissions during domestic transportation of built-up vehicles

200 0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 (FY)

Total CO2 emissions Achievement of zero landfill waste emissions at all plants A recycling rate of 98% was achieved, and 1,100 tons of waste per year disposed of by landfill, a further improvement on the level in FY2000.

67

100 299

51 49 29 24 26 27 21

100

257 50

11 8 4.2 1.1

1992 1994 1996 1998 2000 1990 1991 1993 1995 1997 1999 2001 (FY)

0

Waste emissions and landfill disposal

25,000

50

20,000

48

15,000

46

10,000

44

5,000

42

0

1999

2000

2001

40

Emissions per unit shipped (line graph)

404 342 339

200 0

438 443

Passenger cars Trucks Total emissions (bar graph)

400 300

(1,000t / year) 150 Landfill waste

Waste generated

(1,000t / year) 600 488 498 484 493 500 481

CO2 emissions during domestic transportation of vehicles in FY2001 were down 1.5% from the previous fiscal year to 45.0kg per unit shipped (CO2 weight equivalent) for passenger cars, and down 2.9% to 46.7kg per unit shipped for trucks.

Announcement of GDI-ISA MMC is pushing ahead with development of a GDI-ISA hybrid system combining a compact, highperformance motor and gasoline engine with idling stop and start, deceleration energy recovery and power assist functionality, and a prototype was unveiled at the Frankfurt Motor Show in September 2001.

(FY)

CO 2 emissions during domestic transportation of BU vehicles

Sales of clean energy vehicles

(%)

80

76 78 73 75

82

98 93 95 97

79 80

Sales of clean energy vehicles in FY2001 consisted of sales of 544 CNG vehicles and 802 LPG vehicles.

Use of products

70 60 50

1990

1992 1991

1994 1993

1996 1995

1998 1997

Waste recycling rate

2000 1999

2001 (FY)

Following on from the Nagoya and Kyoto Plants, the Mizushima Plant and the Kawasaki Plant (the main truck and bus plant) also achieved zero emissions of landfill waste at the end of March 2002.

Measures to achieve domestic fuel efficiency standards for 2010

1,000 802

800

The domestic fuel efficiency standards for 2010 were met by three of the eight gasoline passenger car classes and eight of the twelve gasoline commercial vehicle classes. Further improvements will be made to achieve the targets in all classes by FY2005. Reduction of exhaust emissions 21 models of eight types had been certified under the LEV certification system by the end of FY2001. Sales of LEVs in FY2001 are shown below. As can be seen, approximately half of all sales were of certified LEVs. Good LEVs Other

198,322 (51.4%)

70,450 (18.3%)

Excellent LEV

116,887 (30.3%)

Sales of certified LEVs (FY2001)

Unit sales

90

87

547

544 423

400

0

699

619

581

600

200

328

335

221

1997

1998

1999

2000

2001

(FY)

CNG vehicles (left) / LPG vehicles (right)

Recycling Recyclability rate of new models The new Airtrek and eK Wagon models met MMC’s self-targets for recyclability. Recyclability rate

100

Self-target (new models)

(%) 90

At least 90% since end 2000 85

80

FY1997 (Average for new models)

FY2001 (Airtrek)

Measures to reduce environmental impact (P.26-65) Reduction of use of hazardous substances

Development of naturally colored resin door trim

The new Airtrek and eK Wagon models meet MMC’s self-targets for lead use.

A total of 71,944 bumpers were collected from Mitsubishi dealers around the country, and recycled into auto parts.

(g/vehicle) 2000 Lead use

Working in collaboration with parts and material manufacturers, MMC succeeded in developing a highly glossy, metallic colored resin door trim. This has been used for Dion models produced since the summer of 2001.

Collection and recycling of bumpers

Self-targets (new models)

1000

Less than half by the end of 2000

0 FY2001 FY1996 (Airtrek) (Automobile industry average)

Less than one third by the end of 2005 (compared with automobile industry average in FY1996)

(1,000 bumpers) 80

60

40

20

Lead use in Airtrek 0

1997

1998

1999

2000

2001 (FY)

Number of bumpers collected

Social Activities (P.66-70) Automobile information service for schoolchildren MMC’s unique automobile information service for schoolchildren, which has been held every year since 1993, handled 304 inquiries in FY2001. Mitsubishi Fuso Summer Painting Competition

Motor sports The 24th Paris-Dakar rally was won by Hiroshi Masuoka and Pascal Maimon driving a Mitsubishi Pajero, making this the seventh time that MMC has won the overall crown. Second, third and fourth places overall were also won by Team Mitsubishi, completing a clean sweep of the winners’ podium.

The 23rd Mitsubishi Fuso Summer Painting Competition attracted a total of 69,366 entries from 951 kindergartens and nursery schools around the country, even more than the previous year. Prizes were awarded to three first-place winners, five second-place winners, 10 third-place winners, and 60 runners-up.

Making barrier-free products The lineup of low-floor buses was enhanced with the addition of the Aero Midi MK one-step medium-sized bus.

Aero Midi MK (Mitsubishi Fuso medium-sized bus)

Main changes from the 2001 Environmental Report Items

Relevant pages

Improved ease of understanding through extensive use of illustrations, photographs and graphs

All pages

Addition of ÒSummaryÓ

P.3-5

Addition of ÒEconomic ActivitiesÓ

P.6-15

Redesigned to increase emphasis on product lifecycle (addition of chapter on recycling, etc.)

P.26-65

All-round increase in depth of environmental data (e.g. data on waste and logistics)

P.16-65

More environmental data on individual plants under ÒPlant ReportÓ (PRTR data for each plant added)

P.37-43

Addition of ÒSocial ActivitiesÓ

P.66-70

Addition of results of questionnaire on the Environmental Report 2001

Questionnaire at end of report

4-5

Economic Activities

Mitsubishi Motors Corporation(MMC) was split off and became independent from Mitsubishi Heavy Industries in 1970, making it one of Japan’s youngest car manufactures. At the same time, however, MMC is the heir to a long history as a car manufacture dating back to Mitsubishi Model A*1 first produced in 1917. MMC is unique among the world’s car manufactures in that it develops, manufactures and markets a full line-up of vehicles, ranging from minicars to large trucks and buses. In order to strengthen its competitiveness in the international marketplace, which will only grow more competitive as the 21st century progresses, and to strengthen its global business base, MMC has entered a capital and business alliance with DaimlerChrysler of Germany.

Mitsubishi Model A*1

Space Liner *2

Notes Model A *1: Mitsubishi Modeled on the car produced by Fiat of Italy, a powerhouse at the time in the automobile world, Mitsubishi Model A became Japan’s first mass-produced passenger car when it entered production in 1917. 22 were produced between then and 1921 at Mitsubishi Shipbuilding’s Kobe shipyard. Shown in the photo is a replica built in 1972 based on original materials. 2: Space Liner Concept car for the 35th Tokyo Motor Show (2001).

*

Economic Activities


Business policy Basic business policy

MMC’s corporate philosophy is founded on three principles: 1.To always realize “iimono nagaku” from a customer perspective. 2.To constantly innovate from a global perspective. 3.To be an open, clean and trustworthy company.

Following the series of recall problems from July 2000, MMC received administrative punishment by the authorities in October 2000, and in May 2001 both MMC's directors (past and present) and MMC as a corporation were subject to criminal sanctions. MMC deeply regrets this incident, and is committed to regaining the public trust it lost as a result by (1) providing top-quality products and services without compromising on quality, (2) ensuring that all cost inputs lead to customer satisfaction and all operations yield returns, and (3) engaging in work fairly and reasonably as a law-abiding corporate citizen. In compliance with the corporate morals, all work processes will be subject to root and branch reform in order to provide products and services for the customer that offer real value.

The principle “iimono nagaku” described above was adopted as the corporate policy of the entire Mitsubishi Motors Group in March 1998,reflecting the company’s rethinking of its traditional stance to place greater emphasis on“value for the customer”, currently in a process of transformation, so as to provide products and services that are used more fondly and for longer than in the past. To achieve this, each and every employee involved in all operations throughout the Mitsubishi Motors Group, whether in development, production, sales or services, must be able to see his or her work from the viewpoint of the customer. This will lead to increasing customer satisfaction, which will in turn be reflected in stronger business performance. To embody the idea “iimono nagaku”, we adopted “Heart-Beat Motors, Mitsubishi

Motors” as our new advertising slogan in January 2000. This makes clear our objective of projecting a new brand image for MMC as a car manufacture that provides products and services that make cars exciting to talk about, exciting to drive, and exciting to own. In order to achieve this, all products and services provided by MMC to customers embody the following core values: Earth technology - Earth-friendly technology that makes driving a pleasure Industrial beauty - The attraction of the authentic Next frontier - The creativity to carve out new frontiers Providing these three core values to the customer through all our products and services is our goal in all our activities throughout the company.

Mitsubishi Jeep (1952-1998)

6-7

Economic Activities

MMC Turnaround Plan In April 2001, MMC embarked on implementation of its new business plan, the MMC Turnaround Plan. The objectives of this plan are twofold: - To effect radical reform of MMC’s corporate culture and business structure in order to recover customer confidence. - To improve the capacity of the Mitsubishi Motors Group to generate steady profits in the years ahead and to restore the group to growth. By steadfastly following this plan, MMC aims to achieve a rate of operating profit to consolidated sales of 4.5% in fiscal 2003.

MMC President Katsuhiko Kawasoe and DC Chairman Jurgen Schrempp sign a basic agreement in March 2000

Partnership with DaimlerChrysler Since 2000, MMC and DaimlerChrysler (DC) have been in a strategic alliance to cooperative actively in the passenger car business In April 2001, a strategic partner in the truck and bus business changed hands from AB Volvo of Sweden to DC, as a result of which DC formally acquired 3.3% of MMC’s shares, which were owned by Volvo, and contracts on business cooperation. This also resulted in both the passenger car and truck and bus operations coming under the umbrella of cooperation with DC. The intention is for extensive cooperation between DC and MMC in fields where there exist merits for both parties and to maximize the synergies generated, thus enabling MMC to focus its business resources on core business and technologies essential to its survival and development.

A variety of concrete steps are currently being taken to achieve the main targets laid down by the plan, which are as follows: - 15% cut in material costs by around 2003. - Cut of at least 28% in surplus capacity. - 14% cut in total workforce of the Mitsubishi Motors Group (equivalent to 9,500 jobs). - Concentration on core business, strengthening of product lineup, and reduction in number of platforms.*1 - Provision of maximum customer service through development of robust and close relations with dealers. - Establishment of processes to ensure quality and provision of high-quality vehicles through introduction of “Quality Gate”. (See P.9.) In fiscal 2001, which was the first year of the Turnaround Plan, action throughout the Mitsubishi Motors Group to meet the above targets resulted in the group registering a consolidated profit, exceeding the target for the first year of the plan of breaking even. (For details of business results, see P.10.)

Economic Activities

Enhancement of Quality Control Reflecting MMC’s deep regret concerning the recall issue described above, a particular focus of the Turnaround Plan is on drastic reform of MMC’s quality control structures. To begin with, MMC has introduced a new development process control system called “Quality Gate”, which employs techniques of quality control developed by DC. A number of “check gates” are established at every stage from the product conception and development stage to the production and launch stage, and strict examinations performed at each gate. Unless all the necessary standards concerning quality and other factors are met, the next step is not commenced. This system has been in use since the new Airtrek and eK Wagon models launched in fiscal 2001.

In order to improve quality after launch, an automatic register management system will be introduced so as to prevent variations in judgments due to human factors and omissions of information on defects regarding vehicles already on the market. Information on defects will in addition be processed to create a database to speed up response measures and improve quality. In order to achieve quality beyond customer expectations, information and quality targets will be shared by the development, production and marketing divisions, and under no circumstances will products be allowed to go on sale unless they clear the necessary quality targets. MMC will in addition adopt a swift and open, customer - oriented response to quality defects in products on the market.


Challenges Faced MMC made a successful start to reform by attaining its target for fiscal 2001, the first year of the Turnaround Plan, of breaking even. Building on this platform, MMC will continue to steadily implement measures to achieve the targets set out under the plan. The three main challenges that need to be addressed by MMC in the future are as follows: Products - Further pursuit of customer-oriented approach to business decisions and reform of corporate culture and climate. - Continuation of production of high-quality vehicles by a new quality gate - based quality control system. - Reduction and sharing of platforms*1 with DC. - Strengthening of measures to protect the environment e.g. through improved fuel efficiency, cleaner exhaust emissions and recycling. Sales structure - Provision of the maximum customer services through robust and close relations with dealers. Efficient management - Rapid attainment by fiscal 2003 of targeted cuts to material costs, workforce and surplus capacity. - Greater concentration on core business through increased outsourcing of noncore business. - Development of IT infrastructure to improve efficiency of operations, promote sharing of information (e.g. customer information and management information), strengthen internal communication and implement SCM.*2 - Entry into new markets leveraging alliance with DC.

Notes

*1: Platforms Chassis shared by different models. 2: SCM (supply chain management) * A method used in business of integrated management of order placement and receipt and the operations of divisions within the company. The procurement of materials, production control, logistics and marketing are all treated as comprising one continuous system. The aim is to achieve optimum management of materials and products, and so reduce costs.

4 8-9

Economic Activities

Outline of performance in fiscal 2001 The world economy in fiscal 2001 was hit by the global downturn caused by the collapse of the IT bubble in the United States and by concerns about the impact of the terrorist attacks on the U.S. in September 2001. By the end of the fiscal year, however, there had emerged signs of a recovery, such as progress in inventory adjustment, with the U.S. and Asia leading the way. In Japan, on the other hand, the situation remained as difficult as ever. The decline in capital investment continues, unemployment was high, employment conditions were worsening, and personal consumption and share prices were weak. In the automobile industry, domestic sales fell 3% from the previous year to 5.8 million units in fiscal 2001, and exports fell 3% to 4.3 million units. Amid this harsh market climate, MMC launched some highly individual new products, and took steps to enhance and strengthen its distribution and service structures from a customer-oriented perspective. Regarding consolidated results for fiscal 2001, performance was good in North America, Asia and other regions. Because of the impact of a decline in unit sales in the Japanese and European markets, however, sales slipped 2.3% from the previous fiscal year to 3.2 trillion on a consolidated basis. On the profit front, the effects of the implementation of the Turnaround Plan from April 2001 saw consolidated operating profit of 40.2 billion, ordinary profit of 11.9 billion and current profit of 11.3 billion, meeting the target for the first year of the plan of breaking even in fiscal 2001.

( billion)

( billion)

4,000

3,613

50

3,335 3,277

3,500

3,201

40.2

40 30

2,501

3.2

10

2,334

0

2,107 2,013 1,849

2,000

-10 -20

22.5 13.4

21.8

20

3,000 2,500

55.9

60

3,735

16.7

15.5

-30

1,500

-40 1,000

-50 -60

500

85.3 73.9

-70 1997

1998

1999

2000

2001

1997

(Fiscal year)

Sales

(left: non-consolidated, right: consolidated sales)

Operating profit

( billion)

60

60

50

50

40

40

30

30

5.2

10

11.9 4.7

6.3

4.2

3.7

-40 -50

11.3

5.7 5

10

-20 22.2

-30

23.3

257

-40

54.5

-50

278.1 70.5 356.9

-60

-60 82.4 94.0

-70 1997

2001

(Fiscal year)

-10

-20 -30

2000

22.1

20

0

0 -10

1999


( billion)

20

1998

1998

1999

Ordinary profit

2000

2001

(Fiscal year)


-70

101.8 1997

1998

1999

Current profit

2000

2001

(Fiscal year)


Economic Activities


Activities within Japan Development and production MMC develops and manufactures vehicles ranging from minicars to large trucks and buses, automobile parts, industrial engines and other products at locations throughout Japan. Research and development work is undertaken at car research and development centers (centered in Okazaki) and truck and bus research and development centers (centered in Kawasaki), while production is concentrated at four plants (three car plants and one truck and bus plant).

1

1 Tokachi Proving Ground Equipped with one of Japan’s largest test courses

10

2

10 Pajero Manufacturing (see P.15)

Manufactures Pajero 11 Shiga Plant

Manufactures passenger car engines

Truck and Bus R&D Center (Kawasaki)

4 3

5

9

9 Oye Plant Manufactures small buses

4 Kawasaki Plant Manufactures engines for trucks and buses of all sizes

12 Kyoto Plant

Conducts R&D on new trucks, buses and diesel engines.

8

13

Conducts R&D on new passenger cars

3 Head office (Minato-ku,Tokyo) Responsible for coordinating production, export and marketing activities of company as a whole

6 11

Car R&D Center (Okazaki)

2 Kitsuregawa Proving Ground Equipped with a test course

7

12

8 Okazaki Plant Manufactures Galant,Legnum, Chariot Grandis,etc.

Manufactures passenger car engines and transmissions,etc.

5 Nakatsu Plant Manufactures gear parts, etc.

Car R&D Center (Kyoto) Conducts R&D on engines and transmissions

6 Tama Design Center Designs cars,trucks and buses.

13 Mizushima Plant

7 MMC Automotive Bus

Manufactures Airtrek,Lancer Cedia, Minica and Pajero Mini,and also minicars, small cars and industrial engines.

Manufacturing (see P.15) Manufactures large and medium-sized buses.

Development operations

Car R&D Centers

Establishment

Okazaki region

Okazaki City,Aichi

1969

Basic research~ product development

Kyoto region

Kyoto City,Kyoto

1969

Power plant R&D

Tokachi Proving Ground

Otofuke-cho, Kato-gun,Hokkaido

Kawasaki region

Truck and Bus R&D Centers

(

Location

Kitsuregawa Proving Ground

Tama Design Center

Functions

1996

Road tests,assessment

Kawasaki City, Kanagawa Kitsuregawa-cho, Shioya-gun,Tochigi

1976

Basic research~ product development

1980

Vehicle research,development, road tests,assessment

Tama City,Tokyo

1996

Advanced design research

Production operations Location

Nagoya Plant

Main products

1977

Nagoya City,Aichi

1920

Transmissions

1943

Passenger cars,minicars, minicar engines,transmissions

Oye

Kyoto

Kyoto City,Kyoto

1944

Automobile engines,transmissions

Shiga

Kosei-cho, Koga-gun,Shiga

1979

Automobile engines

Kawasaki City, Kanagawa

1940

Trucks,truck and bus engines, industrial engines

Aikawa-cho, Aiko-gun,Kanagawa

1975

Transmissions,gear parts

Nagoya City,Aichi

1982

Small buses

Kawasaki Plant

Truck and bus Nakatsu division Oye Bus Plant

104

1997

1998

1999

98

101

2000 2001 (Fiscal year)

R&D spending (non-consolidated)

Passenger cars

Okazaki Okazaki City,Aichi

Passenger Kurashiki City, car Mizushima Plant Okayama division Kyoto Plant

Establishment

billion) 126 120

Closure of Maruko Plant (May 2001). Transfer of Kawasaki Plant casting division to Mitsubishi Automotive Techno-Metal (May 2001). Closure of Oye Plant car body production line (September 2001). Partial transfer of Oye Plant component production operations to parts makers (from November 2001). Transfer of Yagi Plant to Diamondmatic (April 2002).

10 - 11

Economic Activities

Activities within Japan Sales Within Japan, vehicles are sold through 267 dealers (as of July 1, 2001) nationwide. (Passenger cars are sold through two channels — the Galant channel and the Car Plaza channel — while trucks and buses are sold though the Fuso channel.) Customers range from individuals to corporations and government bodies. (See P.14 regarding unit sales.)

Mitsubishi dealers Passenger cars Trucks and buses Total

(as of July 1,2001)

Galant channel Car Plaza channel

118companies 113companies

Fuso channel

38 companies

267companies

Akita Ishikawa Gifu

7

1

6

1

5

1

1

0

3

1

2

1

3

1

2

1

0

6

1

3

0

15

2

0

2

0

Miyagi

1

Fukushima

4

1

Gunma

5

0

Tochigi

1

Ibaraki

Shiga

4

Aomori

1

3

1

4

1

6

1

5

1

4

1

7

1

17

1

13

2

12

1

15

1

3

1

6

1

9

2

2

1

2

0

Saitama Tokyo

Fukuoka

Chiba

Nagasaki

Kanagawa

Yamanashi

Kumamoto

Kochi

Kagoshima

Ehime

Okinawa

Miyazaki Oita

3

0

3

0

3

0

3

1

Osaka 8

1

2

1

2

1

2

0

(underlined models are new models introduced in fiscal 2001)

Aichi

Kagawa

Mie

Tokushima

New models launched in fiscal 2001

Galant channel Car Plaza channel Fuso channel Sedans Sedans Trucks Lancer Cedia Diamante Aspire

Super Great Fighter Canter

Recreational vehicles

Buses

Airtrek Lancer Cedia Wagon Pajero Pajero Io Chariot Grandis Dion Legnum Delica Space Gear

Airtrek Lancer Cedia Wagon Pajero Io Chariot Grandis Dion Legnum Delica Space Gear

Aero Aero Aero Aero Rosa

Minicars

Minicars

eK Wagon Pajero Mini Toppo BJ Minica Town box Minicab

eK Wagon

Queen Bus Star Midi

Airtrek

Shizuoka

Wakayama

Main MMC models and distribution channels

Recreational vehicles

2

Iwate

Yamaguchi Saga

Lancer Cedia Diamante Galant

2

Toyama

Shimane 1

8

Hokkaido

0

4

Fukui

Tottori 3

0

Nagano

3

Hiroshima

2

Niigata

Hyogo Okayama

0

1

2

Kyoto

Passenger cars Trucks and buses

4

Yamagata

eK Wagon

Nara

Economic Activities


Other data

(

billion)

(Employees)

24,348

78.4

23,734

22,666 21,076

36.9

1997

1998

38.7

35.8

1999

18,498

33.3

2000

2001

(Fiscal year)

Capital investment (non-consolidated)

1997

1998

1999

2000

2001

(Fiscal year)

Number of employees

(non-consolidated, not including employees on leave or on loan)

Fuso reaches 70th anniversary Fuso came into the world in May 1932. The first vehicle to bear the Fuso name was the B46 bus,produced at Mitsubishi Shipbuilding’s Kobe shipyard. The B46 bus measured 7 meters in length, had a 7. 1 liter gasoline engine, a maximum speed of 70km/h, and could carry 38 passengers. When the company called for suggestions from within the company for a nickname for the bus,the name adopted was “Fuso”, which was used as another name for Japan in the Chinese classic Sengaikyo. The name was proposed by one of the engineers at the Kobe shipyard, Hidetoshi Ishizuka, who is said to have chosen the name “Fuso” because of its smooth and familiar ring and its powerful image. 70 years later, “Fuso” remains the name of MMC’s truck and bus brand.

First ever Fuso (B46 bus built in 1932)

12 -813

Economic Activities

Overseas activities MMC is aggressively expanding its presence outside Japan. Overseas, it has development centers in the U.S. and Germany, and production plants in Southeast Asia and other parts of the world. It also has sales and service operations in over 170 countries, and around half of all vehicles produced domestically are exported. In addition to exports of built-up (BU) vehicles, MMC also exports parts and components for knockdown (KD) vehicles that are assembled using parts procured locally, such as tires and batteries, as a means of increasing local production and employment to assist the development of industries in host countries.

Overseas development centers

Unit sales (consolidated)

(1,000 units)

MRDA (Illinois, U.S., established 1996) MRDE (Hessen, Germany, established 1993)

Top: Overseas Bottom: Domestic

1,600 1,400

Countries with production plants

1,200

939

Countries Asia

Indonesia, Philippines, Thailand, Malaysia, Taiwan, Bangladesh, India, Vietnam, China

Oceania Australia, New Zealand

1,000

897

905

621

608

593

1997

1998

1999

937

937

507

468

800 600

Europe

Portugal, Netherlands, Turkey, Italy

400

Africa

Kenya, Côte d’Ivoire, Morocco, South Africa, Egypt, Zimbabwe

200 0

South Colombia, Venezuela, America Costa Rica, Brazil

2000

2001

(Fiscal year)

North United States of America America

Main overseas production plants

Comparison between domestic and overseas sales

Other overseas operations

Vehicles produced overseas

Eclipse Spider (North America only)

Space Star (Europe only)

Economic Activities


The Mitsubishi Motors Group The Mitsubishi Motors Group consists of Mitsubishi Motors Corporation, 182 subsidiaries, 32 affiliates and two other associates (as of March 31, 2002). The group develops, manufactures and markets automobiles (passenger cars, trucks and buses), automobile parts and industrial engines, with MMC playing the lead role in development work. Mitsubishi standard and small passenger cars and minicars are produced mostly by MMC, though some recreational vehicles (such as the Pajero) are made by Pajero Manufacturing Co., Ltd.. These products are marketed in Japan by passenger car dealers such as Tokyo Mitsubishi Motors Sales Co., and overseas by companies such as Mitsubishi Motor Sales of America, Inc. (in the U.S.) and Mitsubishi Motor Sales Europe B.V. (in the Netherlands).

Production (Japan) Pajero Manufacturing Co., Ltd. Pabco Co., Ltd. Mitsubishi Automotive Techno-Metal Corporation, etc.

Trucks and buses are produced by MMC. In addition, bus bodies are made by Mitsubishi Automotive Bus Manufacturing Co., Ltd., while Pabco Co., Ltd. and others produce bodies for some truck models. Cast and forged parts for trucks are mainly made and supplied to MMC by Mitsubishi Motors Techno-Metal Co., Ltd. In Japan, these are sold by truck and bus dealers such as Tokyo Mitsubishi Fuso Sales Co., while overseas, they are sold by Mitsubishi Fuso Truck of America, Inc. and other sales companies. Overseas, Mitsubishi vehicles are produced at Mitsubishi Motor Manufacturing of America, Inc. (in the U.S.), Netherlands Car B.V. (in the Netherlands), Mitsubishi Motors Australia, Ltd. (in Australia) and MMC Sittipol Co., Ltd. (in Thailand) for sale in local markets.

Some of the parts and components used for these vehicles are supplied by MMC. Service parts for the Japanese market are manufactured by MMC and sold by the above MMC dealers and parts dealers such as Tokyo Mitsubishi Parts Sales Co., Ltd. Some of the development on MMC products is undertaken by Mitsubishi Motors Engineering Co., Ltd., while Mitsubishi Automotive Logistics Co., Ltd. is responsible for the transportation of Mitsubishi auto products in Japan. Inspection and servicing of certain new Mitsubishi vehicles is undertaken by Mitsubishi Motors Techno-Service Co., Ltd. Auto lease and financing services are provided by Mitsubishi Auto Credit and Lease Corporation in Japan, and by Mitsubishi Motors Credit of America, Inc. in the U.S.

Other related companies

Engineering & information systems Mitsubishi Automotive Engineering Co., Ltd.

DaimlerChrysler AG. Mitsubishi Heavy Industries ., Ltd.

MMC Computer Research., Ltd. MMC System Service Co., Ltd., etc.

Mitsubishi Motors Corporation

Overseas production & sales

Logistics & other services

Mitsubishi Motor Sales of America, Inc. Mitsubishi Motor Manufacturing of America, Inc. Mitsubishi Motors Europe B.V. Netherlands Car B.V. MMC Sittipol Co., Ltd. Mitsubishi Motors Australia Ltd., etc.

Mitsubishi Automotive Logistics Co., Ltd. Mitsubishi Automotive Techno-Service Co., Ltd. Ryoto Estec Co., Ltd. etc.

Sales (Japan) Tokyo Mitsubishi Motor Sales Tokyo Mitsubishi Fuso Sales Tokyo Mitsubishi Auto Parts,etc.

Auto finance Mitsubishi Auto Credit & Lease Corporation (Japan) Mitsubishi Motors Credit of America, Inc (U.S.)

Customers Finished and semi-finished autos and parts Services, etc.

14 - 15

Environmental Activities - Environmental Management

MMC engages in a wide range of activities to minimize the environmental impact of its products and services throughout the vehicle lifecycle. In order to ensure the efficiency of these activities, MMC is constantly enhancing its environmental management structure.

MMC Environmental Guidelines In order to clarify group policy on environmental protection, MMC replaced its “Basic Philosophy on the Environment” in August 1999 with the “MMC Environmental Guidelines”. These guidelines reflect one of MMC business principles, i.e. to constantly innovate from a global perspective, and the corporate policy “iimono nagaku”. The MMC Environmental Guidelines consist of two parts: basic policy and behavioral standards. The basic policy affirms environmental protection as a priority and commits MMC to doing everything in its power to protecting the environment, while the behavioral standards lay down concrete measures for doing so. As one of the core values behind the slogan of “Heart-Beat Motors, Mitsubishi Motors”, MMC has adopted the idea of “Earth technology — Earth-friendly technology that makes driving a pleasure”, which is reflected in all Mitsubishi Motors products and services provided to customers. (See P.7 regarding “iimono nagaku” and “Heart-Beat Motors, Mitsubishi Motors”.)

ENVIRONMENTAL GUIDELINES OF MITSUBISHI MOTORS CORPORATION Basic Policy Mitsubishi Motors recognizes that protection of the global environment is a priority for humankind and as such makes the following undertakings: (1) From a global viewpoint, we are committed to continual reduction of negative environmental impact of our corporate activities with all our strength, these including development, procurement, production, sales, and after-sale servicing activities related to automobiles. (2) As a good corporate citizen, we are committed to action to protect the environment at the level of local communities and society as a whole. Behavioral standards (1) We will endeavor to protect the environment by forecasting and assessing the environmental impact of our products at all stages in their life cycle. Priority is given to the following areas Prevention of global warming by reducing emissions of greenhouse gasses. Prevention of pollution by restricting emissions of substances harmful to the environment. Reduction of waste and maximizing efficient use of resources by promoting conservation of resources and recycling. (2) We will endeavor to improve our environment management practices as part of ongoing efforts to ameliorate the environment. (3) We will comply with environment regulations and agreements, and will work to protect the environment by establishing voluntary management targets. (4) We will encourage our affiliates and suppliers, both in Japan and overseas, to cooperate in working to protect the environment. (5) We will actively disclose environment - related information and will seek the understanding of local communities and of society at large.

Notes

*1: Sustainability Although originally used in the sense of meeting the conditions for long-term continued use of natural resources (such as forests and marine resources), the term is now used in the wider sense of proper



1

MMC Environmental Sustainability * Plan MMC has adopted a mid-term environmental action plan called the MMC Environmental Sustainability Plan. Scheduled for completion in five years, the plan went into action in fiscal 2002. “Sustainability” means achieving continued social and economic development while preserving a healthy environment, and it will be a key concept in business from now on. Environmental sustainability for MMC means the “provision of exciting and attractive cars while simultaneously preserving the environment for future generations”. To achieve this goal, MMC undertakes a variety of activities following this plan to protect the environment at each stage of the vehicle lifecycle, such as “produce”,“use”and“recycle”. Outline The plan sets concrete targets in 28 categories covering four fields— environmental management, recycling, prevention of global warming, and prevention of environmental pollution—and specifies as far as possible the means and timescale for their attainment. The main categories of activity are as follows:

(1) Environmental management DfE (Design for Environment) MMC will establish by the end of fiscal 2002 a new development process to effectively reduce the environmental impact of products throughout their lifecycle. Comprehensive and quantitative assessment of environmental impact by means such as LCA will be incorporated into “Quality Gate” (see P. 9), and measures taken to increase concern for the environment at the development and design stages. (2) Recycling Promotion of vehicle recycling In order to comply with vehicle recycling legislation in Japan and the EU, steps are taken to simplify the recycling of products and reduce use of hazardous substances. Reduction of waste emissions at production stage Zero emissions of landfill waste at all plants (achieved by the end of fiscal 2001) will be maintained. (3) Prevention of global warming Improvement of vehicle fuel efficiency The new domestic standards on fuel efficiency for 2010 will be met more rapidly by fiscal 2005. Energy conservation at plants CO2 emissions at plants will be reduced by at least 20% (compared with 1990) by the end of fiscal 2010.

(4) Prevention of environmental pollution Development and promotion of low emission vehicles, etc. From fiscal 2003, the proportion of unit sales of domestically registered automobiles that are high fuel efficiency U-LEVs will be raised to at least 70%, and the proportion that are Green Purchasing Law compliant will be raised to at least 80%. The Environmental Sustainability Plan is implemented by repeating the PDCA cycle shown below in order to achieve an upward spiral of continuous improvement in environmental protection activities. PLAN

:Development of annual action

plans based on theEnvironmental Sustainability Plan :Concrete action by individual DO divisions throughout the company in accordance with these action plans CHECK :Regular assessment and verification of progress by the secretariat of the Environmental Council (see P. 19) ACTION:Revision and modification of targets and attainment schedules, etc.of action plans

Details of the Environmental Sustainability Plan (1) Environmental management

Item

Target

Further information

1.1 DfE (Design for Environment)

Establishment of arrangements for DfE

Establishment of development process to effectively reduce the environmental impact throughout the lifecycle of products (by end FY2002)

P.28

1.2 Cooperation with suppliers (green procurement)

Promotion of Acquisition of ISO14001 certification

Promotion of acquisition of ISO14001 certification by all suppliers (by end fiscal 2004)

P.29

1.3 Cooperation with dealers

Support for introduction of environmental management systems by dealers

Establishment and operation of environmental management systems by all dealers

P.46

1.4 Collaboration with domestic and overseas production affiliates

(1) Promotion of acquisition of ISO14001 certification

Expansion of the acquisition of ISO14001 certification at domestic and overseas plants, and promotion of the environmental activities as well as MMC, which had acquired it at all plants in Japan.

P.20

(2) Cooperation with domestic production affiliates

Enhancement of “Environmental Sustainability Plan” and promotion of the certain action by Mitsubishi Motors Group Plant Environment Liaison Council (twice a year)

P.20

(3) Cooperation with overseas production affiliates

Regular monitoring of state of compliance with official regulations and regulatory trends (twice per year) Action to protect the environment in accordance with the demands of societies in host countries Strengthening of collaboration on environmental and recycling issues at International Production Conference with major affiliates

P.20

Disclosure of environmental information

Regular publication and improvement of environmental reports Improved disclosure of information via the Internet

P.23

Category

1.5 Disclosure

16 - 17


(2) Recycling

Item

Category 2.1 Promotion of vehicle recycling

2.2 Reduction of waste emissions and improved resource conservation at production stage

Compliance with Japanese and EU legislation on vehicle recycling/ improvement of recyclability/ reduction of use of hazardous substances

Target

Further information

Activities for achieving 95% recycling rate (1) Active involvement in development of recycling systems through collaboration with central and local governments and other related entities Development of network for collection of End-of-life vehicle(ELV)s through collaboration with related companies such as DaimlerChrysler in the EU (2) Promotion of easily recyclable products (Development of recyclable materials, design of easily recyclable constructions, expansion of use of recycled materials) (3) Reduced use of hazardous substances (lead, mercury,hexavalent chromium, cadmium, etc.)

P.58

(1) Zero emissions of landfill waste

Maintenance of zero emissions of landfill waste at all plants (achieved in fiscal 2001)

P.32

(2) Promotion of recycling

At least 98% recycling of waste (by end fiscal 2005)

P.32

(3) Reduction of emissions of byproducts

Reduction of metal scrap and waste casting sand

P.33

(4) Effective use of water resources

Reduction of water use through greater recycling, etc.

P.33

(3) Prevention of global warming

Item

Category 3.1 Improvement of vehicle fuel efficiency

3.2 Reduction of use of air conditioner refrigerant

3.3 Production and logistics

3.4 Improvement of traffic flow

Target

Further information

(1) Compliance with new domestic fuel efficiency standards

Early attainment of new domestic fuel efficiency standards for 2010 (by FY2005)

P.48

(2) Attainment of self-targets for EU fuel efficiency

Steady action to achieve self-targets for EU fuel efficiency in 2009

P.48

(3) Truck and bus measures

Further improvements in fuel efficiency

P.49

(1) Reduction of use of HFC134a

Expansion of use of air conditioning systems using less refrigerant

P.50

(2) Promotion of development HFC 134a-free air conditioners

Promotion of development of CO 2 refrigerant (jointly with airconditioning equipment manufacturers)

P.50

(1) Reduction of emissions of CO 2 (energy conservation at plants)

Reduction of CO 2 emissions by at least 20% compared with FY1990 (by end FY2010)

P.31

(2) Reduction of CO 2 emissions at logistics stage

Reduction of CO2 emissions per unit shipped by at least 10% compared with FY2000 by improving transportation efficiency (by end FY2005)

P.45

(3) Reduction of packaging and packing materials

Reduction by at least 15% compared with FY2000 in use of wooden cases per knockdown unit sold (by end FY2005)

P.45

Improvement of transport environment through use of ITS technology

Promotion of R&D and diffusion of ITS in-car equipment

P.55

(4) Prevention of environmental pollution

Category 4.1 Development and propagation of low emission vehicles, etc.

Item

Target

Further information

(1) Promotion of R&D on fuel cell vehicles (FCVs)

Continuation of research and application of technologies with DaimlerChrysler

P.53

(2) Market launch of clean energy vehicles

Development and launch of compressed natural gas vehicles (CNGVs) and hybrid electric vehicles (HEVs)

P.53

(3) Expansion of high fuel efficiency low emission vehicles (LEVs)

At least 70% of domestically registered vehicle sales from FY2003 to be LEVs approved for government use (high fuel efficiency U-LEVs) At least 80% of domestically registered vehicle sales from FY2003 to be Green Purchasing Law compliant At least 45% of domestically registered minicar sales from FY2003 to be Green Purchasing Law compliant

P.54

Timely release of vehicles compliant with exhaust emission regulations

P.50

Domestic passenger car electrodeposition paint lines to be leadfree (by end FY2002)

P.36

(2) Reduction of VOC emissions

Reduction of VOC use on passenger car paint lines to 35g/m 2 or less through adoption of waterborne paints (by end 2007)

P.34

(3) Reduction of dioxin emissions

Reduction of dioxin emissions from waste incinerators to 10% or less of allowed limit (by end 2002)

P.34

(4) Compliance with Japanese and overseas exhaust emission regulations

4.2 Reduction of use of hazardous (1) Use of lead-free paint for electrodeposition coating substances at production stage



Organizational structure Environmental Council MMC has been committed to environmental protection through every aspect of its activities since establishing the Environmental Council chaired by the president in 1993. The Environmental Council determines basic corporate policy on the environment, e.g. Environmental Sustainability Plan (See P.17), and discusses and reaches decisions on matters put forward by its various committees. The Car Product Committee, Truck/Bus Product Committee, Production Committee and Environmental Management/Recycling Committee are under the control of the Environmental Council.These committees enforce environmental activities based on Environmental Sustainability Plan, and Environmental & Technical Affairs Department as the secretariat confirms the

situation of those activities regularly. In order to coordinate MMC’s response to the Automobile Recycling Law in Japan (see P.58), a cross-committee Automobile Recycling Law Task Force has also been established immediately under the Environmental Council. This has been in action since August 2001. In April 2002, the DfE Promotion Working Group was established in the Environmental Management/Recycling Committee so as to promote even more environmentally friendly car production and improve the methods of assessment used to achieve this aim. (See P.28) Dedicated Environmental Organization Environmental Department was established in May 1999 to take overall responsibility for environmental protection activities throughout the company. (In April

Environmental Council

2000, the department’s staffing was boosted and it was renamed Environmental & Technical Affairs Department.) The department’s main functions are to coordinate the overall direction of MMC’s environmental protection activities and to act as a secretariat for the Environmental Council. In November 2001, the post of Environmental Officer was changed to the full-time one in order to promote MMC’s environmental activities more positively. With the enactment of automobile recycling related legislation in Japan and the EU, Recycling Promotion Office was established in March 2002 in order to respond more swiftly and to play a greater role in vehicle recycling, a field likely to grow massively in the years ahead, both in Japan and overseas.

Chairman : President Secretariat: Environmental &

Technical Affairs Department

Automobile Recycling Law Task Force

Car Product Committee

Truck/Bus Product Committee

Production Committee

Environmental Management/ Recycling Committee

Kyoto Nagoya subcommittee subcommittee

DfE Promotion Bumper Recycling Working Group Working Group

Mizushima Truck/Bus subcommittee subcommittee

Improvement of fuel efficiency Reduction of exhaust emissions Development of clean-energy vehicles Improvement of traffic flow

Improvement of fuel efficiency Reduction of exhaust emissions Development of clean-energy vehicles Improvement of traffic flow

Introduction of more environmentally friendly production processes Prevention of global warming through energy conservation Reduction of waste emissions and efficient use of earthÕs resources PRTR compliance Environmentally friendly location and construction of new facilities Improvement of logistics Cooperation with production affiliates in Japan and overseas

Market Working Group

Environmental Information Working Group

Improvement of recyclability of new vehicles Reduced use of hazardous substances Greater use of recycled materials in new vehicles Improvement of environmental management system Disclosure of information on environmental matters Promotion of environmental management at dealers Response to requirements for greater use of used / recycled parts Green procurement Expansion of sales of clean energy vehicles

Organization of Environmental Council and main activities (from April 2002 to present)

18 - 19


Measures by Affiliates Collaboration with Domestic Affiliates The Mitsubishi Motors Group Plant Environment Liaison Council meets twice a year. These meetings bring together MMC’s five main affiliated plants, which are requested to take steps to protect the environment on a par with MMC. They also provide an opportunity for MMC and its affiliates to share information on matters such as trends in legislation. The newsletter entitled “Plant Environment Topics” is published twice a year for distribution to 110 suppliers to keep them abreast of legislative developments and other trends.

Mitsubishi Motors Bus Manufacturing Co., Ltd. Mizushima Industries Co., Ltd.

Mitsubishi Automotive Techno-Metal Corporation

Monitoring of overseas plants The Production Committee of the Environmental Council (see P.19) conducts regular surveys (twice a year) of the state of environmental protection at the main plants overseas. In the future, MMC will actively promote exchanges with overseas plants as part of actions to protect the environment at a global level.

Information on overseas plants surveyed

Pajero Manufacturing Co., Ltd. Main Domestic Affiliated Plants

Energy use Environmental standards and emissions Establishment of specific facilities Waste disposal Logistics-related matters Laws and regulations State of ISO compliance

MTE (Portugal) NedCar (Netherlands)

Pabco Co., Ltd.

Environmental Reports of Affiliates Mitsubishi Automobile Engineering (MAE) and NedCar (Netherlands) produce their own environmental reports, and actively provide information regarding their environmental activities.

MSC (Thailand) MMMA (USA)

ATC (Philippines) MMPC (Philippines)

Mitsubishi Automobile Engineering Environmental Report (http://www.mae.co.jp)

MMAL (Australia)

Main Plants Overseas

ISO14001 Compliance In order to ensure the transparency and reliability of its environmental protection activities, MMC is actively promoting the acquisition of ISO14001 certification, which is the international standard for environmental management systems. As can be seen below, all domestic plants are now ISO14001 compliant. MMC’s main affiliates in Japan and overseas are also pushing ahead with acquiring certification, and those still without certification aim to acquire certification during 2003. The Nagoya Plant-Okazaki is additionally accredited under the ISO14001-based

Okazaki Business Establishment Environment ISO scheme introduced by the Okazaki City in April 2002, showing how environmental activity at the corporate level is spreading to the local community. (Details in Japanese of the Okazaki Business Establishment Environmental ISO can be found at the city’s homepage at http://www.city.okazaki.aichi.jp/). “Okazaki Business Establishment Environmental ISO” registration certificate

State of ISO14001 compliance Plant Environment Topics

Plants in Japan

Domestic affiliates

Nagoya Plant Nov. 1998 Kyoto Plant Nov. 1998 Mizushima Plant Dec. 1998 Truck & Bus Production Office, Kawasaki Plant Dec. 1999

Pajero Manufacturing Co., Ltd. July 1999 Mitsubishi Automotive Engineering Co., Ltd. Feb. 2000 Pabco Co., Ltd. June 2000 Mizushima Industries Co., Ltd. Oct. 2001

Overseas affiliates NedCar (Netherlands) Sep. 1999 ATC (Philippines) Oct. 2000 MMMA (U.S.) Mar. 2001 MSC (Thailand) June 2001 MMPC (Philippines) July 2001 MTE (Portugal) Feb. 2002


Emergency Measures and Environmental Incidents,etc.

Environmental Auditing In order to confirm that environmental management systems are functioning effectively and so maintain and improve their operation, each of MMC’s plants is audited internally by MMC at least once a year and also examined once a year by an outside third party. The internal audit consists of a check sheet of 600-700 items, which are checked by qualified internal auditors who have undergone internal and external training under the internal auditor license scheme. Non-conformances are checked and reviewed by the senior officer, and appropriate corrective action is taken. Arrangements are also in place for

adoption by other divisions when measures being taken by a particular division are found to be especially effective. External auditing of each of the plants in fiscal 2001 resulted in no major nonconformance, two minor nonconformances and 18 observations. Overall, environmental management systems were found to be being operated and maintained properly. Regarding the minor non-conformances, MMC will conduct an immediate review of systems. Active steps will also be taken to address the observations in order to maintain the efficiency of environmental management.

Review

Organization (plant)

Senior officer ( Plant general manager ) Audit instructions

Report of findings

Environmental officer ( Senior executive ) Report of findings

Audit instructions

ISO secretariat Preparation of auditing plan Instructions on points for auditing

Findings compiled Announcement of practices for wider introduction

Report of findings

Audit instructions

Audit team

*

Audit team

Audit team

Audit team

Audit team

Audit teams made up of 3-4 members

Confirmation of corrective measures

Audit

Department A

Department B


Department C

Department D

Department under inspection System of internal environmental auditing of MMC plants

Emergency Measures MMC constantly strives to maintain the safety and stability of production operations at its plants in line with appropriate operational and work standards to ensure safety and reduce the impact of its activities on the environment. In order to cope in the best possible way with natural disasters such as earthquakes and emergency situations that may foreseeably arise during everyday operations, the company has established guidelines to be followed in an emergency, and in addition conducts regular training exercises. Incidents In fiscal 2001, there were no environmental incidents. Complaints There were 14 complaints by residents in fiscal 2001. Most of them were sensory and concerned, for example, noises and smells. In such cases, we strive to identify the cause so as to take appropriate countermeasures. In some cases, however, no causal relationship can be identified, and monitoring is continued through, among other things, regular patrols of plant environments. Legal action An environmental legal action concerning automobile exhaust emissions is currently in progress. Environment-related recalls Of the recalls notified to the Ministry of Land, Infrastructure and Transport in fiscal 2001, one concerned the environment.

Notification date Vehicles No. of models affected Production period No. of vehicles affected Defects/ Grounds for recall

Department E

Corrective action taken

January 29, 2002 Canter, Fighter 14 July 5, 2000~February 28, 2001 1,144 Malfunctioning of the exhaust gas recirculation valve due to a vacuum caused by breakage of the vacuum pump shaft used in the EGC unit in the motor because of insufficient strength due to improper heat treatment, resulting in NOx concentrations in exhaust emissions in excess of the limit. Replacement of vacuum pumps affected

20 - 21


Internal Education and Personal Improvement In order to make each and every employee fully understand trends in environmental issues and to raise awareness of environmental protection, a variety of educational and personal improvement activities are undertaken. Education of Employees of All Levels Educational activities are organized for employees of all levels. At the center of such activity are the organization responsible for environmental issues and the ISO Secretariats (see P.21). Education also continues to be provided for mid-level sales and service employees at dealers by MMC’s environmental staff. Employees covered

Frequency (times per year)

New employees

1

Middle management

1

New assistant managers

1

New managers

2

General managers and above New foremen, new assistant foremen, health and safety directors

1 2~4

Environment Month Activities June each year has been designated “Environment Month” by the Ministry of the Environment. During this month, MMC organizes the following activities to increase environmental awareness within the company. Type of activity

Details

1. PR targeted at all employees Personal regarding events during Environment development

Month (Publication in the company newsletter and on the intranet of related articles, posting of posters and signboards) 2. Organization of briefings on environmental guidelines by environmental officers and the Environmental Council Secretariat (from fiscal 2002) 3. Participation in Environment Month symposiums 4. Environment Month poster competition

Practical activities

Other activities

1. Inspection patrols at environmental facilities and environmental testing 2. Inspection of state of management of waste disposal and treatment contractors 3. Voluntary community cleanup activities (participation in local cleanup activities, etc.) 1. Inspection of greenery at sites and planting of commemorative trees 2. Participation in events organized by various organizations 3. Donation to nearby elementary schools of colored carp raised in factory effluent

Promotion of Acquisition of Internal and External Environment-Related Qualifications MMC encourages employees to gain official environment-related qualifications. The table below shows how many employees currently hold such qualifications. MMC has also introduced its own qualification systems at some of its operations. At the Nagoya Plant, for example, over 70% of employees (1,205 as of March 2002) had qualified under the “Waste Paper Recycling Qualification System” launched as part of efforts to eliminate landfill waste emissions (see P.32).

Category Pollution control manager

Total (no. of employees) Chief Air Dioxins Water quality Noise and vibration

Energy manager

Total

7 63 61 183

Heat

26

Electricity

27

Total

53

Employee education

Environment education for new employees

9 43

Briefing on environmental guidelines by environmental officer (for management)

Poster competition entries (on the theme of zero emissions in fiscal 2001)



Communication Main events attended in fiscal 2001

MMC is striving to enhance its environmental communication, primarily by publishing environmental reports and publishing information on its website. Publication of Mitsubishi Motors Environmental Report MMC publishes the Mitsubishi Motors Environmental Report in order to provide information on MMC and the environment. The content concerns mainly the environmental impact of MMC and its products during the previous fiscal year and details of the measures being undertaken to reduce this impact. Since the first report was published in September 1999, the report has been published annually. This report is the fourth. (The next issue is scheduled to be published in around autumn 2003.) The environmental report includes a questionnaire, the responses to which are analyzed to improve the content of future issues. 1st issue (1999)

September 1999

2nd issue (2000)

August

3rd issue (2001)

September 2001

4th issue (2002)

October

2000

2002

Publication of past environmental reports

Provision of Information via the Internet Up-to-date environmental information that cannot be covered by the environmental report is published by means of press releases to media organizations and through constant updates to the “Mitsubishi Motors News” section at MMC’s website. In order to raise awareness of MMC’s environmental activities both within and outside the company, MMC has also launched an environmental homepage entitled “MMC’s Environmental Activities”. In it can be found all past environmental reports, information on individual models described below, and other environmental information concerning MMC. In June 2002, the site was redesigned to make it more accessible, and an “Environmental Sustainability Plan” page (see P.17) was added.

Organizers

Date

Region

E-Car Festival 2001

Chunichi Shimbun, Chubu-Nippon Broadcasting

3/31~ 4/1

Aichi

Eco-Car World 2001

Ministry of the Environment, etc.

6/2~3

Tokyo

LEV Fair in Osaka

Osaka City

6/22~ 24

Osaka

2001 Rengo Aichi Campaign (Environmental Recycling Action)

Rengo Aichi

9/15

Aichi

LEV Fair Nagoya 2001

Nagoya City, etc.

2001 Truck Show (Japan Gas Association booth)

Nisshin Shuppan

Eco-Town Kanagawa

Kanagawa Prefecture

Hyogo Prefecture LEV Fair 2001

Hyogo Prefecture

Osaka LEV Fair

Osaka Prefecture

Odawara City LEV TestDrive Event

Odawara City

Japan EV Festival 2001

Japan EV Club

Yamanashi Prefectural ResidentsÕ Day 35th Tokyo Motor Show (Japan Electrical Vehicle Association booth)

Yamanashi Prefecture Japan Automobile Promotion Association

9/29~ 30 10/9~ 11 10/27~ 28 10/27~ 28 11/10~ 11

Kanagawa

11/11

Kanagawa

11/17~ 18 11/17~ 18 10/24~ 11/7

Aichi

Tokyo

Hyogo

Osaka

Kanagawa

Yamanashi

Chiba

Environmental homepage (http://www.mitsubishi-motors.co.jp/ECO/)

Provision of Environmental Information on Individual Models In order to promote green purchasing within and outside the company, MMC participates in the Green Purchasing Network (GPN). Among the activities targeted outside the company, MMC provides environmental information on its main models (regarding, for example, fuel efficiency, exhaust emissions and recycling) by means of the GPN’s publications and homepage and on MMC’s own homepage in order to assist prospective car buyers make green purchasing decisions. (See P.66 regarding green purchasing.) Cooperation in External Events In order to publicize and encourage the spread of low pollution vehicles, MMC exhibits low emission vehicles of various kinds at exhibitions and fairs throughout Japan. In fiscal 2001, MMC participated in the following events. MMC’s cooperation in external events also includes the provision of panelists and speakers for forums and symposiums organized by various organizations. In October 2001, staff from the Nagoya Plant spoke on the subject of “Measures to

Eco-Car World (Yoyogi, Tokyo)

Improve Environmental Performance” at a lecture organized by the Nihon Fukushi University’s Environmental Management Research Group, where they described how the plant had achieved its objective of eliminating emissions of landfill waste. Inquiries Regarding Communication Activities The following customer advice centers handle inquiries regarding environmental matters and MMC in general. The address for inquiries concerning this report and for returning the attached questionnaire is the Environmental Technology Department. (See the back cover for the address.) Nature of inquiry

Times Toll-free nationwide (except holidays)

Mon.~Fri.: 9:00am~6:00pm MMC and 9:00am~12:00pm passenger cars 0120-324-860 Sat./Sun.: /1:00pm~5:00pm

Fuso trucks and 0120-324-230 buses

Mon.~Fri.: 9:00am~12:00pm /1:00pm~5:00pm

22 - 23


Environmental accounting

MMC'S approach to Environmental accounting Environmental accounting is currently still at the developmental stage, and there do not exist any common standards regarding the scope and calculation of effects as in the case of financial accounting. For this reason, individual companies and organizations are developing their own methods of accounting by a process of trial and error. Since publication of the 1999 Environmental Report (first version), MMC has published environmental accounting data. The data is compiled and published based on the Ministry of the Environment(MOE) Environmental Accounting Guidelines (2002 version)*1. The data are calculated on a non-consolidated basis for MMC alone, and cover the period from April 2001 to March 2002. Environmental Accounting in FY2001 (1) Environmental protection cost Costs relating to activities serving to curb and reduce the impact on the environment were calculated focusing principally on the cost of waste disposal and energy conservation measures at plants and the cost of R&D in the R&D division. The environment-related portion of combined costs — i.e. spending on activities designed to meet other objectives as well

as protection of the environment — was calculated by differential costing (i.e. the deduction of costs not relating to environmental protection from the total). Where this was not possible, costs were calculated by estimating the proportion contributing to environmental protection. As a car manufacture, MMC places a strong emphasis on reducing the

environmental impact of the products themselves, and also on environmental action at the production stage. Related costs comprise the majority of environmental protection costs (R&D costs: 87%, business area costs:10%), and the increase in the total cost since FY2000 has been due largely to the increase in R&D costs. These costs account for 2.4% of sales.

YOY % change

Value ( million)

Category * 2 (1) Business area costs Breakdown

When undertaking activities to protect the environment, in order to analyze and assess these activities, it is important to determine that appropriate spending is allocated to each activity and what effects are obtained. By introducing environmental accounting, MMC aims to further improve the sophistication and efficiency of its environmental protection activities.

4,305

97.5%

(2,116)

(100.4%)

Protection of the global environment

(120)

(98.2%)

Resource recycling

(2,069)

(94.8%)

140

160.0%

1,113

98.2%

39,233

110.2%

157

179.6%

49

74.2%

44,997

108.7%

Pollution prevention

(2) Upstream/ downstream costs (3) Management activity costs (4) R&D costs (5) Social activity costs (6) Environmental damage costs Total Environmental protection costs

(

billion)

45 Business area costs 9.6%

Environmental damage costs 0.1% Social activity costs 0.7%

42

41.4 38

Upstream/ downstream costs 0.3% R&D costs 87.2%

Management activity costs 2.5%

1998

1999

2000

2001 Ī FY ī

Breakdown of environmental protection costs

Change in total cost of environmental protection


(2)Environmental protection effects*3 The principal quantitative data used as indices of environmental protection effects are shown in the table below. A new item this year is “CO2 emissions during domestic truck transportation”. Data on fuel efficiency by vehicle weight class have not been included this year because of the large number of classes of gasoline passenger car and commercial vehicle. (See P.48 for details.) For data not shown in the table, please refer to the relevant pages in this report.

Category

(3)Economic benefits accompanying environmental protection measures*4 The economic benefits accompanying environmental protection measures are shown in the table below. From this it can be seen that a reduction in various costs was achieved in comparison with the previous fiscal year. The table this year includes a new item: reduction in cost of purchase of water (city water and industrial water) The above comprise only a tiny portion of the economic benefits, and effects are likely to be found in a wide range of other fields. Like last year, however, we wish to keep this report as objective as possible, and so have not included data on


economic benefits that are based on conjecture. For example, environmental measures may also yield benefits in the form of reduced environmental risks, but it is not possible at this stage to put an exact figure on these benefits. Value Item

(

million)

Reduction of energy

1,688

costs

Reduction of waste

142

disposal costs

Reduction of the cost

60

of purchase of water

Economic benefits accompanying environmental protection measures

Item

Effects relating to inputs into business activities

Energy consumption in production process (total CO 2 emission) Water use

Effects relating to environmental impact and waste resulting from business activities

Quantity of waste for final disposal

Effects relating to goods and services produced by business activities

Average fuel efficiency by vehicle weight category (gasoline passenger cars and commercial vehicles) Number of old bumpers collected

Effects relating to transportation, etc.

CO 2 emissions during domestic transportation of BU vehicles (passenger cars) (trucks)

FY2001

YOY% change

Related page

515,000tCO 2 6,950,000m 3

86.7%

P.31

90.9%

P.33

1,100t

26.2%

P.32

---

---

P.48

71,900

105.8%

P.64

18,200tCO 2 2,900tCO 2

93.5% P.45 99.8%

Environmental protection effects

Notes MOE Environmental Accounting Guidelines (2002 version) *12:: The terms and table classifications used in this chapter are based on these guidelines. Main categories of environmental protection costs * certification (1) Costs on energy conservation, saving resources, and waste disposal, etc. at each plant. (2) Costs on collection of used parts, etc. (3) Costs on ISO14001 and employee education concerning the environment, etc. (4) Costs on R&D related to improving fuel efficiency, reducing exhaust emissions, development of clean energy vehicles, and recycling, etc. (5) Costs on donations and membership fees paid to external environmental organizations , etc. (6) Costs on taxes and other charges paid to national and local governments,etc. 3: Environmental protection effects Defined by MOE guidelines as “the quantitative impact on the environment of an organization’s operating activities and the increase or decrease therein”. 4: Economic benefits accompanying environmental protection measures Defined by MOE guidelines as “the returns and the reduction and avoidance of costs to an organization arising from its environmental protection activities”.

* *

24 - 25

Environmental Activities - Measures to Reduce Environmental Impact

(1) Targets and Performance in Fiscal 2001 Category and policy

Performance in fiscal 2001

CO2 emissions: Reduction by at least 8% from fiscal 2000 (under 543,000t CO2)(Includes reduction from restructuring of production operations)

13% reduction (515,000t - CO2)

P.31

Achieved at all four plants (already achieved at Nagoya and Kyoto Plants in March 2001)

Zero landfill emissions at all four plants due to elimination at Mizushima and Kawasaki Plants

P.32

Reduction in proportion of use of wooden cases

Use of wooden cases maintained at fiscal 2000 level (0.2%)

Fiscal 2000 level

P.45

Reduction of CO2 emissions

CO2 emissions: Reduction by at least 1% from fiscal 2000(45.5kg - CO2 per passenger car shipped in Japan)

1.5% reduction (45.0kg - CO2 / unit)

P.45

Proper disposal of waste, etc.

Integration of action by individual dealers Support for establishment of mechanisms for proper handling of air-conditioner refrigerant, etc. from repaired vehicles

P.46

Worsening of average fuel efficiency in some gasoline passenger car weight categories Improvement of engine fuel efficiency, reduction of aerodynamic drag, promotion of expanded use of INOMAT vehicles, etc. Use for two new models

P.48

Certification of two new models and four modified models as low emission vehicles Launch of Tokyo ordinance compliant vehicles Progressive introduction as planned of EURO3 compliant vehicles, etc.

P.50

Assessment of prototype hybrid vehicles (such as GDI-ISA), assessment of electric hybrid drive system for large buses Continuation of development of technologies for electrical vehicles, public test drive round Shikoku by an electric vehicle Assessment and modification of fuel cell vehicles, revision of development plans following capital alliance with DaimlerChrysler Launch of natural gas vehicles, development of technologies for natural gas vehicles

P.53

Attainment of target for reduction of lead use (for new models) From end 2000 : 50% or less of 1996 From end 2005 : 33% or less of 1996

2005 target met by two new models

P.61

Attainment of recyclability targets (new models) - At least 90% from 2000 Prior assessment of recyclability Promotion of recycling of waste materials produced in other industries Expansion of collection of bumpers

Targets met by two new models Prior assessment of recyclability of models developed in fiscal 2001 Use of recycled materials for soundproofing materials Increased by 300/month compared with previous fiscal year

P.60 P.60

Energy conservation at plants Reduction of CO2 emissions

Reduction of waste emissions at plants Elimination of landfill waste

Assessment

Further information

Targets in fiscal 2001

Rationalization of logistics

Measures by dealers Support for environmental activities of dealers

P.62

Prevention of global warming Early achievement of domestic 2010 fuel efficiency targets (by FY2005) Further improvements in truck and bus fuel efficiency

Pursuit of early achievement Development of high fuel efficiency components

Reduction of use of air-conditioner refrigerant

Use of air conditioners using less refrigerant for new models

P.49 P.50

Reduction of exhaust emissions Early compliance with emission standards

Progressive acquisition of certification under LEV certification programs Compliance with exhaust emission standards in various countries

Clean energy vehicles Development of clean energy vehicles

Reduction of use of hazardous substances Reduction of lead use

Promotion of development of hybrid vehicles, electric vehicles, fuel cell vehicles and natural gas vehicles, etc.

P.51 P.50

P.52 P.53 P.53

Promotion of recycling Improvement of recyclability

Expansion of use of recycled materials

Recycling of replaced bumpers

P.61 P.64

The attainment of fuel efficiency targets in fiscal 2001 is rated as “ ” because of a deterioration in the average fuel efficiency in some weight classes of gasoline passenger cars due to the priority placed on reducing exhaust emissions of new models and some modified models. Measures are underway and on course for the early attainment of domestic 2010 fuel efficiency targets (by fiscal 2005) under “Category and policy”. The above categories and policies have been supplemented and revised under the Environmental Sustainability Plan (see p.17) from fiscal 2002.



(2) Environmental Impact throughout the Vehicle Lifecycle Vehicles impact on the environment in a variety of ways throughout their lifecycle. The diagram below shows the vehicle lifecycle and the main inputs (of energy, etc.) and outputs (emissions into the environment) generated as a result of MMC's business activities and the use of vehicles. Of the total impact on the environment of automobiles throughout the lifecycle, most occurs at the production and use stages. However, MMC is taking steps to reduce the environmental impact at these and every other stage of the vehicle lifecycle. In the following pages, we describe the environmental impact at each stage of the lifecycle and the concrete steps being taken to reduce this impact.

Japanese emissions of CO2 Japanese emissions of CO2 in fiscal 1998 came to 1.188 billion tons (CO2 equivalent), an increase of 5.6% on fiscal 1990. At 21.1%, the rate of increase in the transport sector, which accounted for some 20% of the whole, was especially high. A large proportion of CO2 emissions in the transport sector is due to automobiles (87.8%). Raising fuel efficiency, improving logistics and easing traffic congestion are thus important for reducing emissions.

CO2 emissions by sector Waste 2%

Industrial processes 5% Energy conversion 7% Commercial 12%

Industry 39%

Total: 1.188 billion tons

Breakdown of transport-related emissions Aviation Coastal 4.0% shipping 5.6% Buses 1.8% Taxis 1.8%

Rail 2.7%

Privately-owned cars 55.6%

Commercial vans 16.8%

Household 13% Transport 22%

Privately-owned vans 11.8%

(Prepared from Ministry of the Environment, “2001 Environmental White Paper”)

(10) Environmental protection

Physical flow

(Particular focus on recycling and reduction of environmental impact of use at the product development stage)

in the office (P.65)

Inputs Outputs

Energy (electric power, city gas, oil, etc.), water, etc.

(3)

Gasoline, light oil, etc.

(5)

Development

Production

and design

(6)

Vehicles

Logistics

Gasoline, light oil, etc.

(7) Sales

Parts, etc.

P.28

P.30

(8)

Vehicles Parts, etc.

P.44

P.46

Use of products

P.47

End-of-life vehicles Waste parts, etc.

Parts Materials, etc.

CO2,SOx,NOx,VOC wastewater, noise, chemicals, industrial waste, etc.

(9) Recycling

P.58

Airbags Fluorocarbons, Automobile shredder residue, etc. Proper disposal

CO2,NOx,CO HC,PM, noise,etc.

Recyclable materials

CO2,NOx,CO HC,PM, noise,etc.

by contractors, etc.

Used parts, recycled parts, etc.

(4) Procurement

Parts and materials manufacturers

Recyclable materials, used bumpers, etc.

P.29

26 - 27


(3) Development and design DfE (Design for Environment) In order to make products and services more environmentally friendly, MMC has traditionally chosen easily recyclable parts and materials, developed lighter weight designs, and improved fuel efficiency through the use of new technologies. In order to develop products that are even more environmentally friendly, however, MMC will establish a development process integrating DfE*1 principles by the end of fiscal 2002. DfE is the integration into the design and development of products of concern for the environment throughout the entire product lifecycle. Estimating in advance the probable effect on the environment at each stage of the lifecycle and incorporating appropriate countermeasures into the design of products offers an effective means of reducing the environmental impact of vehicles. One means of assessing the environmental impact of a product throughout its lifecycle currently attracting strong interest is LCA (see Consideration for the environment throughout the entire product lifecycle Reduce/Reuse/ Recycling in products

Reduction of use of hazardous substances in products

Prevention of depletion of resources

Proactive prevention of environmental pollution

Reduce/Reuse/ Recycling at production stage

Reduction of use of hazardous substances in production process

DfE

Energy conservation at production stage Prevention of global warming

Priorities of DfE process

below). MMC will make active use of such means and approaches. More concretely, the following functions will be incorporated into the “Quality Gate” development process management system introduced from DaimlerChrysler (see p.9): - Establishment of appropriate targets for - assessment indices - Reconciliation of environmental targets - with all the other requirements of vehicles - Use of databases of hazardous - substances, etc. when - considering designs - Confirmation of the condition of attaining - targets and revising them according to - the condition. In April 2002, MMC established a working group to promote DfE. The working group, whose members are involved in a variety of fields, including recycling, materials and production, comes under the Environmental Management/Recycling Committee of the Environmental Council, and is examining DfE in earnest.

Study of LCA Life Cycle Assessment is a method for comprehensively and quantitatively forecasting and evaluating the impact of products on the environment throughout their lifecycle, from the extraction of oil and ores to final disposal and recycling. In fiscal 2000, an LCA study team was established under the Environmental Management/Recycling Committee of the Environmental Council to investigate the introduction of LCA. In fiscal 2001, MMC collected data on the environmental impact of products at the manufacturing stage in order to perform LCA. LCA having been identified as an important means of implementing DfE, the LCA Study Team is incorporated into the DfE Promotion Working Group as described above, and development models tested and databases developed in order to apply LCA to the DfE process.

Database

Concept planning QG (quality gate) F

Study of framework

Background database*2

DfE assessment indices Recyclability index Hazardous substance index Energy conservation index

QG E

Consideration of specification QG D

Design and prototype QG C

Testing QG B

DfE items under study and recommended design requirements Easily recyclable materials Reduction of number of parts, etc.

DfE tools (assessment, design support)

Inputs Materials Weight Scenario at each stage (manufacture use disposal recycling)

Dismantling database Database of hazardous substances contained in parts LCA, etc.

Extraction of resources Fuel manufacture Materials manufacture Power generation

Foreground database*2

Outputs Energy consumption Emissions of CO2, NOx and SOx,etc.

Manufacture of parts Manufacture of vehicles Pressing Welding Coating Assembly

Quality confirmation

Use

QG A Disposal Recycling

Launch QG (follow-up)

Environmental consideration in development process

Outline of LCA calculation process

Notes for Environment) *1: InDfEthe(Design narrow sense, DfE is concern for the environment in the design of products. More broadly, however, it refers to all activities undertaken throughout the company to achieve this. As of June 2002, work was proceeding on international standardization of DfE as ISO/TR14062 (integrating environmental aspects into product design and development). 2: Foreground and background data Foreground data consist of data relating directly to the manufacture, use and disposal of products assessed by LCA, and are generally only available to manufacturers. Background data, on the other hand, concern the manufacture of materials and fuel and the generation of electricity, and are difficult for manufacturers to obtain.

*



(4) Procurement Vehicles consist of many parts, a large proportion of which are purchased from suppliers. In order to reduce the environmental impact of these parts and materials, the cooperation of suppliers is essential. To make procurement more environmentally friendly, MMC began to engage in what is called “green procurement” in November 2000. As part of this, MMC calls on its 400 or so main suppliers of parts and materials to acquire ISO14001 certification, which is the international standard for environmental management. Acquisition of certification enables suppliers to efficiently establish their own environmental management systems, continuously reduce the environmental impact of their products and

business activities, and at the same expand the scope of their operations from a global perspective. To assist them, MMC distributes to suppliers a guidebook called “A Guide to Environmental Management System ISO14001 Certification” that explains in a straightforward manner how to acquire ISO14001 certification. According to a survey conducted in March 2002, 164 of the 366 companies that responded have already acquired ISO14001 certification, and another 130 plan to do so in the future. Under MMC’s medium-term environmental action plan, the Environmental Sustainability Plan (see P.17), all 600 or so parts suppliers are expected to acquire ISO14001 certification by the end of fiscal 2004.

Green Procurement Guidelines

Surveys are also conducted regarding the use of hazardous substances that are banned in Europe, such as mercury, lead, hexavalent chromium and cadmium, and measures taken to cease their use or find substitutes in cooperation with suppliers.

Under consideration, etc. 20%

Already acquired 45%

Will acquire 35%

State of ISO14001 compliance of main suppliers

Guide to Environmental Management System ISO14001 Certification

28 - 29


(5) Production Automobile production activities have a bearing on everything from environmental problems at a local level to global environmental concerns. Recognizing this, MMC is taking concerted action to continuously reduce the impact on the environment.

Global environmental problems Destruction of the ozone layer

Environmental problems over a wide area

Acid rain

Photochemical smog Local environmental problems

Setup of Environmental Protection Activities MMC produces all kinds of vehicles, including passenger cars, commercial vehicles, mini cars, and trucks and buses of all sizes, at four plants in Japan. A number of production processes take place at plants, including casting, forging, machining, heat treating, resin forming, stamping, welding, painting and assembly. Core parts, such as engines and car bodies, are manufactured within the company, while other component parts are procured from specialist makers for assembly into vehicles. MMC takes proactive measures to reduce and, where possible, eliminate the environmental impact of activities at plants, and the leading role in this is played by the Environmental Council’s Production Committee. As can be seen in the diagram, the Production Committee is composed of four subcommittees, each of which has a number of teams working on specific issues . Restructuring of Production System The main changes to the production system in FY2001 were as follows: Closure of Maruko Plant

May 2001

Transfer of Kawasaki Plant casting division to Mitsubishi Automotive Techno-Metal

May 2001

Closure of Oye Plant car body production line

September 2001

Partial transfer of Oye Plant component production operations to parts maker

From November 2001

Soil pollution

Global warming

Noise

Depletion of earth's resources

Vibration Water pollution

Bad smells Ground subsidence

Air pollution

Environmental problems surrounding production activities

Production Committee (Meets twice a year)

Secretariat (Secretariat Council)

Nagoya subcommittee Kyoto subcommittee Mizushima subcommittee Truck / Bus subcommittee

Environment protection steering team Saving energy steering team Logistics steering team

Organizational structure of the Environmental CouncilÕs Production Committee

Production Committee (Functions)

Environmental Council (deliberation of policy)

Policy Reports and proposals

Auditing of environmental measures Horizontal communication of information Deliberation of direction of measures

Policy Reports and proposals

(Categories of measures)

District subcommittees (at each plant)

Protection of plant environments Energy conservation measures Reduction of industrial waste Improvement of production processes (reduction of environmental impact) PRTR compliance Improvement of logistics Cooperation with domestic production affiliates Concern for the environment in relation to overseas operations Instructions Reports

Working groups Groups of specialists at each plant established to consider specific issues

Activities of the Environmental CouncilÕs Production Committee



Energy Conservation (Prevention of Global Warming) In order to conserve energy so as to preserve the earth’s resources and prevent global warming, MMC is working to cut energy use (such as use of electricity and fuels) and to curb emissions of the greenhouse gas CO2 generated as a result of such use. Main energy conservation measures in FY2001

- Expansion of cogeneration system*1 - Use of surplus steam as heat source for - absorption-type refrigerators used on - electrodeposition coating lines - Concentration of carburizing furnace operations - Control of number of pneumatic machines and - switch to inverter pumps - Disclosure at plants of information on power use - to raise awareness of energy conservation As a result of energy conservation at plants in FY2001, total energy use at the production stage (total CO2 emissions) was down 13% from FY2000 to 515,000t-CO2, meeting the target of keeping use below 543,000t-CO2. CO2 emissions in relation to sales were 27.9t-CO2 per 100 million, a reduction of 5% from FY2000. MMC will continue to revise work patterns to suit the operating status of production lines and to conduct detailed checks on energy use by means of activities such as energy conservation patrols in order to further reduce CO2 emissions.

Others(purchased steam, gasoline, light oil, coke) 7%

Kerosene/fuel oil 5% City gas 12%

Purchased electricity 61%

293,000kl/year

(crude oil equivalent)

City gas for cogeneration 15%

Breakdown of energy consumption, FY2001

Cogeneration (Kawasaki Plant)

Introduced No.2 unit at Main Truck and Bus Production Plant-Kawasaki (Oct.2001)

(%) 20 Introduced at Kyoto Plant-Kyoto (Oct. 1997)

15

11

10 Introduced at Nagoya Plant-Oye (Oct. 1992)

5 0

1

1990

1991

1992

6 2

2

2

2

1993

1994

1995

1996

1997

11

16

13

Introduced at Main Truck and Bus Production Plant-Kawasaki (Jul. 2000)

1998

1999

2000

2001 (FY)

Percentage of total electricity output generated by cogeneration (whole company) 32 30

29.4 27.6 27.0

28

28.6

CO2 emissions to sales 27.2

27.4

26.7

29.0

29.5 27.9

26.5

26.8

662

626

611

594

1998

1999

2000

26 (1,000t-CO2) 1000 800

679

Total CO2 emissions 705

706

701

720

691

690

600

515

400 200 0

1990

1991

1992

1993

1994

1995

1996

1997

Trends in energy consumption (CO2 equivalent)

2001

(FY)

Notes Cogeneration System *1: Cogeneration is a means of efficiently extracting energy by simultaneously generating electricity by turbine (such as gas turbines powered by city gas) and using the waste heat as a heat source for uses such as air conditioning and water heating facilities.

30 - 31


Plant

Waste

Reuse (91.8%)

ŜRecycled metals ŜRecycled oil ŜRecycled paper ŜRoadbed material ŜCement feedstock, etc.

Incineration Incineration ash (8.0%) Heat recovery

Sludge Waste plastics Waste oil, waste alkalis Waste paper, waste wood

Direct landfill (0.3%) Glass and ceramic waste, other slag

Thermal recycling (6.3%) ŜSteam, etc.

Reduction Landfill (1.5%)

(0.4%)

Waste disposal process in FY2001

600

500

481 488 498 484 493

400

300

67

200

51 49

100

0

Waste 438 443

150

404

342 339

Landfill disposal 29 24 26 27 21

100

299

257 50

11 8 4.2 1.1

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Landfill disposal (1,000t /year)

Making the reduction of landfill waste a major priority, MMC has taken steps to eliminate emissions of such waste by curbing emissions and increasing recycling. As a result of such action, the target of achieving zero emissions*1 at all our plants was reached in March 2002, when the Mizushima Plant and Kawasaki Plant (the main truck and bus plant) joined the Nagoya and Kyoto in achieving zero emissions. As well as maintaining zero emissions at these plants, MMC will continue to reduce waste emissions further.

Metal scraps Waste oil Waste paper Slag Glass and ceramic waste

Recycling (91.7%)

Waste (1,000t / year)

Reduction of Waste Measures to reduce the amount of waste generated during the production stage focus mainly on increasing the recycling rate and reducing the amount of landfill waste produced. The main forms of waste produced are metal scrap, slag (waste casting sand, etc.), waste oil and sludge. Emissions of these are being reduced by improving production methods and improving material yields. Waste that is still generated is recycled and reused wherever possible, and the residue that is left disposed of by landfill. As a result of such measures, 98% of total waste in FY2001 was recycled, and 1,100 tons of waste disposed of in landfills. This represents a further improvement on the level in FY2000.

(%) 100

90

80

82 79 80 78 76 75 73

70

60

0

Waste emissions and landfill disposal

50

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Waste recycling rate

(FY)

General waste 2% Sludge 2%

Waste plastics 2% Other waste 1%

Waste oil 5%

2001/3

Mizushima Plant Truck & Bus Production Office (Kawasaki Plant)

2002/3

(FY)

Other waste 15% Slag 53%

Metal scraps 60% General waste 1% Waste oil 3%

Slag 28%

Total 257,000t/year

Metal scraps 4% Waste plastics 5%

Zero emissions achieved

Nagoya Plant Kyoto Plant

87

97 98 93 95

Total 1,100t/year

Sludge 8% Glass and ceramics 11%

Breakdown of waste emissions in FY2001

Breakdown of waste for landfill, FY2001

Notes Zero landfill emissions *1: MMC defines emissions as “zero emissions” if the proportion of waste generated disposed of by landfill is 0.1% or less of the total. 2: Tailored blanks * A technique for manufacturing parts such as panels for vehicles whereby steel sheets of different thickness or strength are welded to form a single blank that is then processed in a press. By using a thicker or stronger sheet for parts that require greater strength and a thinner sheet for other parts, it is possible to reduce weight while at the same time maintaining strength. Other advantages of this method are that it reduces the number of parts used and cuts material and processing costs.


(1) Reduction of byproduct emissions As part of moves to cope with waste emissions, MMC is paying particular attention to reducing emissions of metal scraps and waste casting sand (which accounted for 86% of waste emissions in FY2001) in proportion to production output (emissions to sales) by 2% from the level in FY2001 by the end of FY2006. (Details of this project were submitted to the Ministry of Economy, Trade and Industry in June 2002 under the title of “Plan Regarding Curbing of Emissions of Byproducts”, which was submitted pursuant to the Law for the Promotion of the Effective Use of Resources.)


Rationalization of Water Use During the production process, use is made of water such as industrial water, well water and city water. In order to conserve resources, we are continuously working to rationalize water use through measures such as the following:

Well water 26.0%

City water 15.8%

6,950,000 m3 /year Industrial water 58.2%

- Multistage water use (e.g. reuse of used washing - water as backup washing water) - Reduction of water use through changes to - production methods

Breakdown of water use (FY2001)

- Recycling of water used for coolant and - temperature control

(1,000m3/year) 14,000 Well water Industrial water City water

12,000

Main measures: 1. Improvement of yield through use of tailored 2. blanks*2 2. Improvement of yield by shaping two parts 2. together in presses 3. Reduction of waste shavings through reduction 2. of machining area

(2) Recycling As a means of recycling waste as raw materials, a form of recycling known as “material recycling”, MMC is promoting the recycling of waste casting sand as roadbed material, the use of chemical sludge from the painting process to make cement, and the reduction and recycling of waste paper generated by offices. MMC is also promoting thermal recycling by recovering the waste heat produced when combustible materials such as waste plastics, paper and wood are incinerated using waste heat boilers to generate steam for use at plants. Generate source

Kinds of wast

Examples of recycling uses

casting shop

waste casting sand iron material, roadbed material

stamping shop

metal scraps

casting material

chemical sludge

cement materials

paint sludge

fuel, oil absorption materials

washing thinner

recycled thinner, fuel

waste oil

recycled oil, fuel

plastic waste

plastic material, cement materials, fuel

waste water treating sludge

cement materials

glass and ceramic waste

glass material, roadbed material

dust

cement materials

grinding sludge

cement materials

incineration ash

roadbed material

paper

recycle paper materials

painting line

whole plant

office, etc.

10,000

8,000

6,000

4,000

2,000

0

1990

1991

1992

1993

1994

1995

Trends in water use

1996

1997

1998

1999

2000

2001 (FY)

Nature at plant Plants have green spaces and manmade ponds to provide places where employees can relax. However, it is not just humans that make themselves at home in these spaces. The fountain at the Nagoya Plant-Okazaki is home to a family of spot-billed ducks. In July this year, employees were delighted to see the mother swimming at the pond again with a brood of 10 ducklings in tow.

The family of spot-billed ducks at the Okazaki Plant

(after melting and solidification)

32 - 33


Prevention of air pollution (1) Sulfur oxides (SOx) Cleaner energy sources containing less sulfur, such as kerosene and city gas, for use as fuels for combustion facilities, such as boilers and industrial furnaces, has enabled SOx emissions to be kept extraordinarily lower than regulation. MMC will continue to take steps to curb SOx emissions by reducing fuel consumption through energy-saving measures in the future. (See P.37-43 regarding emissions at each plant.) (2) Nitrogen oxides (NOx) We have made every effort in the past to minimize NOx emissions, such as by installing low NOx boilers, and using low NOx burners, and will continue taking active steps to conserve energy and cut fuel use and NOx emissions in the future too. (See P.37-43 regarding emissions at each plant.)

(4) VOCs*1 MMC is working to curb emissions of solvents during the body painting process. Measures taken include the introduction of high transfer efficiency painting equipment, the adoption of new painting methods, reduced use and increased recovery of paint gun cleaning thinner, and the equipping of ovens with exhaust treatment equipment. To curb VOC emissions at the coating stage, use is made of waterborne paints and powder, which use virtually no solvent, for coating machine parts, while paints are in addition recovered for reuse. As part of our body painting shop renewal project, we plan to curb emissions of VOCs further by introducing low-solvent technologies using, for example, waterborne paints. (Index) 120 100

Measures to cut paint oven formaldehyde emissions In order to curb emissions of formaldehyde unintentionally produced when paint is baked at the coating stage, MMC has introduced the use of regenerative exhaust treatment equipment. This breaks down and removes 95% of the formaldehyde.

20%

Outside exhaust (Treated gas) 110 Paint oven 150

40

Combustion furnace Burner

20

Burner

Fan Ceramic regenerator

0 1995

1997

1999

2000

2001

2002

2005

Past and projected per unit emissions of VOCs

2007

(FY)

Reduction of use of thinner for changing paint colors At the painting stage, we have always worked to recover and reuse more of the paint gun cleaning thinner used when changing colors. By improving the design of cleaning equipment (by mixing pressurized air into cleaning thinner), we have also succeeded in reducing thinner use by an average of 35% without reducing the cleaning performance. Air Mixer (improved)

Melting furnace dust collector (Kyoto Plant)

adhesives in order to improve the work environment and reduce the impact on the Attachment of glass environment.

80 60

(3) Dust We are working to cut emissions of dust generated by casting facilities, boilers and waste incinerators, etc by capturing dust with high-performance dust collectors such as bug filters and removing it using afterburners, and also limit emissions by proper maintenance and control of combustion.

Use of non-solvent-based adhesives for glass At the vehicle assembly stage, adhesives are used to affix the front, rear and quarter glass. As these contain substances such as xylene, we are switching to the use of non-solvent

Cleaning thinner (for changing colors)

Air-mix cleaning thinner

Paint

(Color A) (Color B) (Color C)

Color change valve

Paint gun

Outside air

20

Fan

150

800 200 Fan

Regenerative direct combustion unit

Outside air

20

(5) Dioxins MMC is taking comprehensive action to curb emissions of dioxins. Measures include the improvement of waste incineration facilities, proper control of combustion and management of waste for incinerations (such as the sorting of waste containing chlorine and reduction of the quantity of waste produced). Because of the dramatic reduction in the quantity of waste for combustion resulting from measures to eliminate waste emissions, MMC is closing down and suspending operation of some of its incinerators, and is considering closing down four of its five waste incinerators during FY2002. (One of these was closed down in FY2001.) Regarding the waste incinerators that continue to be used, MMC’s aim is to reduce dioxin emissions to one tenth of the regulation (1ng-TEQ/m3N).


Prevention of water pollution Sources of water pollution at plants include process wastewater generated during production processes such as painting, and domestic-grade wastewater from cafeterias and toilets. As the pollution load varies depending on the process, the wastewater from each process is first put through appropriate primary and secondary treatment before going through advanced wastewater treatment (such as activated carbon filtration) in a general wastewater treatment facility. The quality of water discharged into public bodies of water is controlled in accordance with voluntary standards that are stricter than legal requirements. The quality of discharges is constantly monitored using colored carp and goldfish and by automatically measuring BOD*2 and COD*3. We have also taken every possible precaution to deal with emergencies, such as installing emergency water tanks. MMC is working hard to prevent eutrophication*4 , Ways of doing so include the use of byproducts that do not contain nitrogen and phosphorus, which cause eutrophication of lakes and seawater, so as to cut emissions of such substances, and the introduction of wastewater treatment facilities equipped with General wastewater denitrification treatment facility (Mizushima Plant) facilities. (Tons per year) 60

COD

Prevention of noise and vibrations In order to reduce the impact on localities around plants from main sources of noise and vibrations, such as stamping, compressors, blowers and engine test sites, we are making increasing use of quiet, non-vibrating equipment, improving layout and improving sound insulation of buildings, and soundproofing and vibration-proofing of production facilities. When establishing new facilities, we also conduct simulations of noise and vibration levels off-site to enable appropriate countermeasures. Reduction of bad odors Casting shops, painting lines, wastewater treatment facilities and waste incinerators etc. are all sources of bad odors. These smells are dealt with in various ways depending on their individual properties. Solutions include activated carbon adsorption, afterburning (direct, catalytic and regenerative combustion) and deodorization by chemical dosing. Action is also taken in the course of day-to-day management to prevent bad odors by, among other things, monitoring odors around plants by conducting patrols and simulations of bad odors.


Prevention of Soil and Groundwater Pollution To prevent impacts on human health beforehand, MMC has always surveyed levels of hazardous substances in groundwater (using existing wells) to confirm the absence of pollution. Because of the recent rise in public interest in soil pollution, however, we plan to establish more wells for observation purposes and to step up monitoring of groundwater. In order to ensure appropriate action regarding this issue, MMC established a Soil Environmental Protection Study Taskforce in July 2001, and is taking voluntary action to prevent soil and groundwater pollution by formulating a company-wide position on the issue, investigating pollution risks at each plant, drawing up manuals on proactive preventative measures, and establishing monitoring wells.

BOD

50 40

Casting facility deodorizing facility

30 20 10 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 (FY)

Changes in COD, BOD Notes VOCs *1: Volatile organic compounds (Xylene, Toluene, etc.) 2: BOD (biological oxygen demand) * An indicator of water pollution that measures the amount of dissolved oxygen consumed by the oxidation and decomposition of organic matter (waste) by aerobic microorganisms in water over a certain period of time. 3: COD (chemical oxygen demand) An indicator of water pollution that measures the amount of oxygen consumed by the oxidation of organic matter in water. 4: Eutrophication Oversupply of nutrients such as nitrogen and phosphorus in enclosed bodies of water such as lakes, marshes and bays results in an abnormal proliferation of plankton and the occurrence of red and blue tide, which harms the fishing industry and reduces water quality by causing it to smell.

* *

34 - 35


Chemical substances management As well as examining the pros and cons of the use of chemical substances before their actual introduction under a “system of screening for toxicity of chemical substances” as in the past, MMC is also taking positive action to control chemical substances by, for example, limiting emissions of harmful chemical substances. (1) Compliance with PRTR*2 system MMC’s plants have been involved in the Environmental Agency’s pilot PRTR project since FY1997, and Keidanren’s voluntary PRTR program. MMC is currently developing a database of chemical components, and is monitoring emissions and movements of chemical substances. The PRTR survey results for FY2001 were as shown in the table. Of the 354 substances of the PRTR system, 28 are used by MMC. (21 substances if the type 1 designated chemicals whose use is below the five tons per year interim legal cutoff point are not included.) A breakdown of the release and transfer of pollutant shows that 34% of the amount used is emitted into the environment, 11% is moved as waste, and the remaining 55% is recycled, consumed or eliminated. The data on the release and transfer of pollutants at individual plants are described in the Plant Report on subsequent pages. Quantity used 6,619kg Consumed 50.85% Other 3,679% Eliminated 4.12%

Air 33.60% Emissions Movements 2,940t Water 0.05% Waste 10.76% Recycled 0.61%

Breakdown of surveyed substances used, releases and transfers, etc. (FY2001) Ethyl benzene 5% Toluene 38%

Other 1% Xylene 56%

Emissions into the environment (air and water) in FY2001

Division using substance

5

Delivery order

Division making delivery (Coding/setting)

Prior survey of toxicity at time of initial delivery

4

Survey form sent at time of new introduction

Planning division

7

6

Delivery

Delivery order

2 3

Health and safety division Environmental management division

Decision and directions concerning pros and cons of use

Toxicity Pre-Screening Committee

(according to circumstances)

Health and Safety Committee

1

Supplier

Acquisition of MSDS*1

System for pre-screening of toxicity of chemical substances Substance

Substance name

No.

1 9 13 16 29 30 40 43 63 68 101 109 176 198 224 227 230 232 253 266 272 283 299 307 309 310 311

Zinc compounds (water-soluble) Bis (2-ethylhexyl) adipate 2,2’-azobisisobutyronitrile 2-aminoethanol, Monoethanol-amine Bisphenol A Bisphenol A type epoxy resin Ethylbenzene Ethylene glycol Xylene Chromium and chromium( ) compounds Ethylene glycol monoethyl ether acetate Diethanol amine Organic tin compounds Hexamethylenetetramine 1,3,5-trimethylbenzene Toluene Lead and its compounds Nickel compounds Hydrazine Phenol Bis (2-ethylhexyl) phthalate Fluorine compounds ( Hydrogen fluoride) Benzene Poly(oxyethylene) alkyl ether Poly(oxyethylene)nonylphenyl ether Formaldehyde Manganese and its compounds Total

179

Dioxins (mg-TEQ/year)

Quantity used 50,392 10,797 8,640 21,021 1,507 20,121 227,420 1,651,935 2,148,105 57,227 6,757 2,330 5,671 99,867 10,504 2,121,077 14,099 10,868 1,057 11,055 1,726 4,178 39,851 1,756 6,015 12,340 72,996 6,619,311 1,259.08

Unit: kg/year (mg-TEQ/year for dioxins) Movements

Emissions Air 0 0 0 0 887 0 111,732 0 1,249,811 0 5,592 0 0 0 1,179 836,736 0 0 0 6,507 0 2,720 266 0 0 8,530 0 2,223,960 514.00

Public water Sewerage system

765 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,119 0 0 0 955 0 18 37 0 530 3,423 0.02

36 0 0 9,572 0 0 0 0 0 0 0 0 0 0 0 0 3 86 0 0 0 0 0 0 231 0 0 9,928 0.00

Waste

9,119 324 432 5,207 19 1,835 7,271 137 260,937 5 440 1,290 284 99,867 4,600 294,150 772 5,749 0 138 52 228 0 1,739 4,643 0 3,135 702,373 745.00

Recycled

Eliminated

0 0 6 0 0 0 6,242 0 0 0 2 0 4,902 0 0 0 29,190 105,610 0 0 726 0 0 0 0 0 0 0 164 0 11,262 150,103 0 0 0 0 0 0 0 0 0 0 275 0 0 0 0 0 1,105 0 3,810 0 0 0 40,452 272,943 0.00 0.00

*

Results of FY2001 pollutant release and transfer register (PRTR) survey * (2) Storage of PCBs*3 The PCBs used as insulating oil for sealing transformers and condensers are kept properly as required by law. The total number of used transformer and condensers in storage at the end of FY2001 was 2,072. Because of plant closures and the partial dismantling of casting facilities, the number of condensers in storage has more than doubled compared with the number in FY2000.

Measures to Reduce Lead Use (Lead Free Electrodeposition Coating) We have adopted and are progressively expanding the use of lead-free electrodeposition coating technology at the undercoating stage. By the end of 2002, we plan to have made all electrodeposition coating lines at domestic passenger car production plants Electrodeposition coating (undercoating) lead free.

MSDS (material safety data sheet) *1: Data sheet containing information on the hazardous substances contained in chemical products, the percentage content, and important information regarding their safe handling. 2: PRTR (pollutant release and transfer register) Under the PRTR system, businesses themselves survey and report to the authorities emissions into the atmosphere and transfers of waste from plants and business establishments. These data are compiled by the authorities and published together with information on toxicity. 3: PCBs (polychlorinated biphenyls) Chemically stable substances with excellent insulating properties that are widely used for insulating oil, insulating media and plasticizers. Because of their accumulation in the human body and the difficulty of disposing of them due to their toxicity and chemical stability, however, their production and use has been banned in Japan since 1972.

*

40,472 10,467 8,208 0 601 18,284 103,514 1,651,798 502,557 57,223 0 1,040 5,388 0 4,560 828,826 13,324 3,914 1,057 4,410 1,674 0 39,585 0 0 0 69,331 3,366,233 0.00

:Shown in the table are those substances among the 354 substances surveyed under the PRTR Law (“Law Concerning the Promotion of Improvements in Ascertaining and Controlling Amounts of Emissions of Specified Chemical Substances into the Environment”) and whose annual use is at least 1 ton.

Notes

*

Consumed



Plant Report On the following pages data can be found on

various laws, ordinances and environmental

the state of emissions regarding the main

protection agreements. In the case of

indicators of air and water quality and use of

emissions into the atmosphere, maximums are

substances covered by the PRTR system at

shown. Shown in following PRTR tables, type 1

each of MMC’s plants in FY2001. (The limits

designated chemicals whose annual use is

shown are the strictest laid down under the

below 1 ton per are not included.)

Technical terms used in tables

NOx SOx BOD COD SS ND

Nitrogen Oxide Sulfur Oxide Biochemical Oxygen Demand Chemical Oxygen Demand Concentration of suspended solids in water Not detectable

Nagoya Plant (ISO14001 certified: November 1998) Oye Plant

Address

2, Oye-cho, Minato-ku, Nagoya, Aichi

Established Total site / building area Employees Main products Production process Car body production line closed in September 2001

The air

NOx

Regulation

Actual value

Substances

Boiler

ppm

64

59

Oven

ppm

37

31

Incinerator

ppm

74

71

BOD SS Oil

ppm

39

35

Boiler

g/Nm3

0.2

0.008

Oven

3

g/Nm

0.2

0.003

Incinerator

g/Nm3

0.4

0.130

Gas Turbine

Sulfur oxide (sulfur rate in fuel) Incinerator Dioxins

3

g/Nm

0.04

wt% 3

ng-TEQ/Nm

2,600 transmission machining

The water

Unit

Gas Turbine

Dust

222,000 / 164,000m2

Progressive partial transfer of component production to parts maker from November 2001

Equipment

Substances

1920

0.003

80

11

Max.

Min.

Average

20

15.0

1.4

4.1

20

19.0

7.7

8.4

5

1.5

0.5

0.7

60

16.0

4.1

7.8

8

1.6

0.09

0.62

Copper

1

0.01

ND

0.01

Total chrome

2

ND

ND

ND

0.1

ND

ND

ND

10

0.40

ND

0.13

Total nitrogen Total phosphate

0.005

0.05

Regulation

Unit

Lead Manganese

Substances covered by PRTR Substance name

Quantity used

Emissions

Movements Sewerage system

Public water

Air

Recycled

Waste

Consumed*3

Eliminated*2

Zinc compounds

8,757

0

140

0

963

0

0

7,654

Bis(2-ethylhexyl) adipate

5,110

0

0

0

153

0

0

4,957

Bisphenol A type epoxy resin

1,997

0

0

0

0

0

0

1,997

Ethylbenzene

2,789

268

0

0

0

0

0

2,521

Ethylene glycol

123,030

0

0

0

0

0

0

123,030

Xylene

247,503

213,727

0

0

5,350

10,602

4,762

13,062

Toluene

105,059

67,602

0

0

11,211

8,497

1,481

16,269

Nickel compounds

2,410

0

292

0

1,289

0

0

829

Fluorine compounds

1,183

0

955

0

228

0

0

0

Benzene

1,742

138

0

0

0

0

0

1,604

Manganese compounds Total Dioxins*1

2,384

0

130

0

736

0

0

1,518

501,964

281,735

1,516

0

19,931

19,099

6,242

173,441

204.40

124.30

0.00

0.00

80.10

0.00

0.00

0.00

Unit: kg/year Data on air, water and PRTR substances include data for Oye Bus Plant. 1: Unit for dioxins: mg-TEQ/year 2: Elimination: Quantity changed to another substance as a result of incineration, decomposition or reaction, etc. 3: Consumption: Quantity changed to another substance as a result of reaction or contained in product and removed from plant

**

*

36 - 37


Okazaki Plant

The air

Equipment

Unit

Regulation

Actual value

Small boiler

ppm

120

59

Boiler

ppm

100

70

Oven

ppm

250

96

Incinerator

ppm

200

130

Small boiler

g/Nm3

0.1

0.004

Boiler

g/Nm3

0.1

0.001

Oven

g/Nm3

0.1

0.015

Incinerator

g/Nm3

0.1

0.09

wt%

1

0.003

ng-TEQ/Nm3

80

2.3

Substances

NOx

Dust

Sulfur oxide (sulfur rate in fuel) Incinerator Dioxins

Substances covered by PRTR Substance name

Quantity used

Air

Address Established Total site / building area Employees

1, Nakashinkiri, Hashime-cho, Okazaki, Aichi

Main products

passenger cars (DIAMANTE, GALANT, CHARIOT GRANDIS, LEGNUM, PAJERO IO, RVR)

Production process

stamping, welding, painting, assembling, resin forming

1977 425,000 / 140,000m2 1,700

The water

Substances

Unit

BOD COD SS Oil Total nitrogen Total phosphate

Copper

Manganese Total chrome

Lead

Emissions Public water

Movements Sewerage system

Regulation

Max.

Min.

Average

10

5.1

1.0

2.7

10

7.8

3.6

5.2

10

2.0

1.0

1.1

2

1.0

0.5

0.6

60

12.0

5.8

8.1

8

0.84

0.02

0.17

0.5

0.01

0.01

0.01

3

0.2

0.1

0.13

0.1

0.07

0.02

0.03

0.1

0.005

0.005

0.005

Recycled

Waste

Eliminated*2

Consumed*3

Zinc compounds

4,858

0

15

0

598

0

0

4,246

Bis(2-ethylhexyl) adipate

5,687

0

0

0

171

0

6

5,511

5,298

0

0

0

56

0

0

5,240

32,261

10,287

0

0

0

0

0

21,974

Bisphenol A type epoxy resin

Ethylbenzene Ethylene glycol

118,031

0

0

0

0

0

0

118,031

Xylene

262,372

87,455

0

0

1,395

685

67,505

105,332

Toluene

369,520

58,228

0

0

4,207

2,765

137,751

166,569

914

0

7

0

390

0

0

517

Benzene

8,999

83

0

0

0

0

0

8,916

Manganese compounds

1,467

0

73

0

479

0

0

916

809,409

156,054

94

0

7,295

3,450

205,263

437,252

974.70

340.10

0.00

0.00

634.60

0.00

0.00

0.00

Nickel compounds

Total Dioxins*

1

Unit: kg/year 1: Unit for dioxins: mg-TEQ/year 2: Elimination: Quantity changed to another substance as a result of incineration, decomposition or reaction, etc. 3: Consumption: Quantity changed to another substance as a result of reaction or contained in product and removed from plant

**

*



Kyoto Plant (ISO14001 certification: November 1998) Kyoto Plant

Address

1, Uzumasa, Tatsumi-cho, Ukyo-ku, Kyoto

Established Total site / building area Employees

The air

Substances

Equipment

Unit

Regulation

Actual value

Boiler

ppm

150

70

Melting furnace Heating furnace

ppm

200

110

ppm

180

120

Oven

ppm

230

40

Gas Turbine

ppm

70

52

NOx

Dust

g/Nm3

0.1

0.003

g/Nm3

0.1

0.028

g/Nm3

0.2

0.001

Oven

g/Nm3

0.2

0.005

wt%

0.5

0.13

ng-TEQ/Nm3

20

0.031~0.14

Substance name

Quantity used

Air

2,400

Main products

passenger car engine, transmission

Production process

casting, machining, assembling

The water

Substances

Unit

Total nitrogen Total phosphate

Boiler

Substances covered by PRTR

299,000 / 259,500m2

BOD COD SS Oil

Melting furnace Heating furnace

Sulfur oxide (sulfur rate in fuel) Aluminum Dioxins melting furnace

1944

Copper Zinc

Manganese Total chrome

Regulation

Max.

Min.

20

6.7