Outlining the company's ambitious journey toward its 2030 vision, Nissan Motor Company has released its Integrated Report 2024 giving details of its business strategies and financial performance and long-term impact on society and the environment. The key initiatives are the Nissan Green Program 2030 (NGP2030) and the Nissan Social Program 2030 (NSP2030), both of which support Nissan’s business strategy and commitment to sustainability.
NGP2030
Initiated in 2002, the Nissan Green Programme (NGP) reflects the company's environmental philosophy of fostering a harmonious relationship between people, vehicles, and nature. It focuses on three critical areas: climate change, resource dependency, and air and water quality. The programme's targets are aligned with global efforts to limit temperature increases to 1.5 degrees Celsius and to move toward carbon neutrality and a circular economy.
Joji Tagawa, Chief Sustainability Officer at Nissan, said the key sustainability goals under NGP2030 include achieving a 30% reduction in per-vehicle lifecycle CO2 emissions, cutting down emissions generated during the manufacturing process by 52%, and targeting a 50% reduction in per-vehicle driving CO2 emissions for new models in major markets such as Japan, the US, Europe, and China, with a global reduction goal of 32.5%. Additionally, the programme aims to enhance the use of sustainable materials in vehicle production across major markets, targeting a 40% increase in sustainable material use.
NSP2030
According to Tagawa, NSP2030 builds on Nissan’s existing social initiatives, aiming to create a positive societal impact and support the company's long-term vision, Ambition 2030. The programme is structured around six key pillars: safety, quality, responsible sourcing, intellectual property, communities, and the power of employees. Each pillar is supported by specific goals and action plans, ensuring the social value of the program is clearly defined.
Responsible Sourcing
About the challenges in making the entire supply chain green, Tagawa told Mobility Outlook, that “In our definition, responsible sourcing involves materials that are not sourced from newly mined or created sources. Instead, these materials can be recycled or rehabilitated, such as using green steel or green aluminium, which are produced using carbon-neutral energy sources. As of 2023, we aim for 30% of our materials to be renewable or zero-carbon, with a target to increase this to 40%. However, these materials are currently challenging to produce and are significantly more expensive than traditional materials. This situation is similar to the challenges faced by the battery and electric vehicle industries, where the lower production volume compared to conventional vehicles leads to higher costs.
As we strive to secure adequate volumes and maintain the quality of green materials, the cost implications are significant. This raises the question of whether customers are willing to pay the additional costs for vehicles made from responsibly sourced materials. Of course, we seek support from the government and collaboration with other industries, as steel and aluminium companies are making significant investments—often amounting to billions of dollars—to produce greener materials, which presents challenges and impacts for consumers.”
Managing Non-compliance
What happens when a country is unable to cater to Nissan’s unique requirements? Tagawa said that governments worldwide are striving to increase the share of safer and renewable energy sources in their energy mixes, despite the challenges of higher costs and the difficulty of securing these resources. For instance, Japan has set targets to increase its use of renewable energy. However, transitioning energy sources, particularly within supply chains, is complex and not solely the responsibility of companies like Nissan.
The energy mix of a region plays a crucial role, not only in achieving carbon neutrality but also in meeting regulatory requirements such as the Carbon Border Adjustment Mechanism (CBAM) in Europe, which considers the sources of energy used in producing imported goods. For example, if Japan relies more heavily on fossil fuels for electricity, it may face additional taxes or penalties under such systems, he noted.
According to him, governments are motivated to improve their energy mixes to meet carbon-neutral goals by 2050. It is essential for countries, especially those involved in producing parts and vehicles, to develop a balanced energy portfolio. Companies must carefully monitor the mid to long-term energy procurement strategies of each country, as switching from one energy source to another is not straightforward. This careful consideration will help ensure compliance with international standards and contribute to global sustainability efforts, he added.
People
The automaker places a strong emphasis on people, with respect for human rights forming the foundation of its corporate culture. The 'power of employees' pillar is particularly significant, encompassing diversity, equity, and inclusion (DEI), employee rights, learning and development, and health and safety. Nissan strives to create a work environment where all employees feel empowered and supported, fostering innovation and corporate growth.
The company’s commitment to DEI is demonstrated through various employee resource groups (ERGs) that promote inclusivity and innovation. These ERGs support LGBTQ+ individuals, working parents, multiculturalism, and more, ensuring a diverse and dynamic workplace.
The NGP2030 and NSP2030 are integral to Nissan's business plan, The Arc, which serves as a strategic bridge toward achieving Ambition 2030. Tagawa highlighted the importance of collaboration with partners and stakeholders to foster a sustainable future. He emphasises that Nissan's corporate purpose, 'Driving innovation to enrich people's lives,' aligns with the company's efforts to contribute to a cleaner, safer, and more inclusive world.
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