SUSTAINABILITYREPORT2021(IN-DEPTHVERSION)2MazdaSustainabilityReport20213AboutMazda/EditorialPolicy4TopMessage6CorporateVisionrsetc8BasicPolicyonSustainability9SustainabilityInitiativesEARTHEARTHApproachtotheenvironment,climatechangeandresourcecirculationinitiatives,biodiversity,etc.29BasicApproachtoEnvironmentalProtection,andEnvironmentalPromotionFramework31IssueEndeavorforCarbonNeutralityby2050sueResourceCirculation44EnvironmentalManagement47InitiativesforReducingEnvironmentalImpact51BiodiversityConservationPEOPLEPEOPLECommitmenttocustomers,initiativeswithemployees,safetyandhealth,respectforpeople,etc.54IssueContributiontoPeople’sMentalWellnessobSatisfaction73RespectforHumanRightsSOCIETYSOCIETYSafetyinitiatives,socialcontributions,etc.77IssueRealizingaMotorizedSocietyFreeFromTraicAccidentsesPeoplesLivesEARTHEARTHPEOPLEANDSOCIETYCommitmenttoqualityindustryacademiagovernmentcollaborationinitiatives92IssueQualityImprovement98IssueExploringPartnershipsfor“Co-CreationwithOthers”MANAGEMENTMANAGEMENTCorporategovernance,supplychaininitiatives,commitmenttoshareholdersandinvestors,etc.104Management115ImplementingSocialResponsibilityintheSupplyChain118WithShareholdersandInvestorsltsinbusinessactivitiesetc120AchievementStatusofFYMarch2021Targets125EnvironmentalPerformanceData130MajorProductLineup131CorporateProfile/GlobalNetwork132HistoryofMazda134Third-PartyVerification135Third-PartyAssurance136TableofComparisonswithGuidelines3MazdaSustainabilityReport2021nicatederstonicatederstoPDFwebsiteCD(https://wcom/en/sww.mazdaustainability/(PDFBoottestinforMazda'sbaowardsustmationandsicapproacainability.hftointerpretedAhuraMazda,thegodofwisdom,intelligence,andoasasymbolofautomotivecultureItieveworldpeaceandthedevelopmenttheautomobilemanufacturingindustryItalsoderivesfromtheoMatsudadedicationtocontinuousgrowthandimprovement.ItisasymbolicdevelopmentoftheMazda“M”,andshowstheCompanystretchingitswingsasitsoarsintothefuture(EstablishedinJune1997).Mazda’screativityandinnovationcontinuouslydeliversfunandexhilaratingdrivingexperiencestocustomerswhoremembertheemotionofmotionfirstfeltasachild(AnnouncedinApril2002).dathroughitsAimingtosatisfytheneedsofreaders,Mazdastudiedtheeditorialpolicyandcontentofthisreportinreferencetothethirdpartyopinionandstakeholders’ideasandviewsobtainedthroughthequestionnairesurveyandengagementswithstakeholders.CorporationanditsGroupcompaniesiscoveredinthisreport.(WherethereportingitemisnotapplicabletotheentireMazdaGroup,theorganizationsperiodfromAprilthroughMarch2021,althoughsomeactivitiesafterApril2021areincluded.aareincludedinthisreport.option.JapaneseMinistryoftheronmentalAccountingGuidelinesEditionISO2020;thenextreportwillbepublishedintheautumnof2022.)ishedinDecember2020;thenextreportwillbepublishedinthewinterof2022.)Mazdadisclosesinformationinthefollowingformats.*＊Ifanycontenterrorsarefoundafterpublication,alistoferratawillbepostedoncialwebsiteAvailableonourwebsiteat/en/sustainability/report/sclaimerThisreportincludesfutureprojectionsforMazdaMotorCorporationanditsGroupcompanies’performancebasedofpublicationinadditiontoactualpastandresentfacts.Suchforward-lookingstatementsarepredictionsbasedoninformationorassumptionsavailableatthetimeofedit,andmaydifferfromfuturences4MazdaSustainabilityReport2021AchieveFurtherGrowthMazdaMotorCorporationwould?rstliketooferoursincerestcondolencestothefamiliesandlcoronavirusCOVIDAtthesametime,ourdeepestsympathygoestoallthoseafectedbytheglobalpandemic,whichcontinuestospreadaroundtheworld.Wewouldalsoliketoexpressourprofoundrespecttoallofthepeoplewhoareworkingeverydaytocombatthevirus,includinghealthcareprofessionalsandmembersofthecentralandlocalgovernments.oursocialawarenessandvaluesenvironmentalproblemsandhumanrightsissues,bytakingownershipofthesechallenges.Asacorporatecitizen,MazdahasstrengtheneditscommitmenttoresolvingsocialissuesthroughitsbusinessactivitiesIn2021,MazdaformulateditsBasicPolicyonSustainabilityandclari?edtheeightsustainabilitythemestobeaddressedbytheCompanyfromnowon.ThisbasicpolicydeclaresthatMazdawillcontributetoachievingtheSDGsandgrowtogetherwithsocietybyimplementinginitiativestobrightenpeopleslivesthroughcarsthataresustainablewiththeearthandsociety,assetoutinouroftheearthpeopleandsociety.Thereby,contributingtotherealizationofasustainablesociety.Oneofthecurrentenvironmentalchallengesistoachievecarbonneutralityby2050.ThisendeavorrequiresustoreduceCO2emissionsthroughoutavehicleslifecycle,fromwhenitismanufactured,throughtowhenitisshippedout,usedand?nallyrecycled/repurposed.ItalsorequiresustoswitchotonlycompaniesbutalsolocalgovernmentsMazdahasparticipatedintheCarbonNeutralElectricityPromotionSubcommittee,whichwasset5MazdaSustainabilityReport2021upasoneofthespecialsubcommitteesundertheChugokuRegionCarbonNeutralityPromotionCouncil,establishedbytheChugokuEconomicFederation.Incooperationwithmemberpartners,theCompanywillhenceforthdiscusshowtoexpandthesupplyanddemandofelectricityderivedfromrenewablesources.Overseas,wewillhelppromotethespreadofrenewableenergiesinlinewiththepoliciesoftheregionsinwhichoursitesarelocated.Thechallengehereistoimproveemployeejobsatisfaction.Changesinrecentyearshavebroughtmanynewandsuddenuncertaintiesforcompanies.Undersuchcircumstances,inorderforcompaniestosustaingrowthandaccomplishtheirmanagementstrategies,itisbecomingmoreimportanttosecureadiverserangeofhumanresourcesandcreateaworkingenvironmentthatenablesemployeestomaximizetheircapabilities.Mazdarecognizesthatpeopleareitsmostimportantresource.Laborandmanagementaremakingconcertedefortstoensurethatindividualemployeescanenjoytheirworkbyexercisingtheirpotentialtothefullestextentpossible.TheCompanyalsounderstandsthesigni?canceoffosteringethatrespectsdiversetalentsandvaluesandweconsiderdiversityandinclusiontobekeyelements.Forexample,inJanuary2021,MazdaMotorCorporationjoinedtheValuable500,aninternationalinitiativetopromoteactiveinclusionofpeoplewithdisabilities.Here,Mazdaaimstorealizeamotorizedsocietythatisfreefromtraicaccidents.ThisisamissionMazdashouldful?llnotonlyasagoodcorporatecitizenbutalsoasavehiclemanufacturer.TheCompanyhascarriedoutresearchonanddevelopmentofitssafetytechnologiesinkeepingwithMazdaProactiveSafety,oursafetyphilosophybasedonunderstanding,respectingandtrustingthedriver.ThisphilosophyaimstosupportdriversindrivingsafelyandhelptopreventorreducethedamageresultingfromanaccidentifitweretooccurduetoadriversmistakeIn017,wedeclaredtheMazdaCo-PilotConceptforourhuman-centeredadvanceddrivingsupporttechnology.Itisintendedtodevelopadrivingsupportsystemthatoferspeaceofmindnotonlytodriversbutalsototheirfamilyandthosearoundthem.Wearealsohopefulthat,ifthesystemdetectsthatthedriverhassuferedasuddenhealthcomplicationrenderingthemunabletodrive,whichcouldhappentoanyone,itwillreducetheriskofaccidentsandthedamagetothedriveraswellasthesurroundinglizethistechnologyandplantointroduceitsrststage,called“MazdaCo-Pilot1.0,”inthenewSUVmodelstobelaunchedin2022.UndertheMedium-TermManagementPlanthatwasputinmotionin2019,weregardedthepastthreeyearsasaphaseforfoundation-building,duringwhichMazdahassteadilypromotedtheinitiativestoreinforceitsmanagementbaseasplanned,despitetheimpactoftheCOVID-19pandemic.Nowwearemovingintothephaseof“stronggrowth.”Toachievefurthergrowth,theCompanywillcontinueendeavoringtoresolveissuesregardingtheearth,peopleandsocietybyacceleratinginitiativesintandemwithlike-mindedpartners,basedonthetechnologiesandtedthusfarMazdawillinspirepeoplethroughcarswhileemphasizingdialogueswithitsstakeholdersaroundtheworld.WewouldliketoaskforyourcontinuedsupportandhopetomeetyourcontinuedexpectationsofMazda,whichremainscommittedtotacklingallthechallengesweface.AkiraMarumototorPresidentandCEOMazdaMotorCorporation6MazdaSustainabilityReport2021Welovecarsandwantpeopletoenjoyfulfillinglivesthroughcars.Weenvisioncarsexistingsustainablywiththeearthandsociety,andwewillcontinuetotacklechallengeswithcreativeideas.inablewiththeearthandsocietytomorepeoplevity7MazdaSustainabilityReport2021SustainabilitygementEarthPeopleSocietySustainabilitygementtherequestsandexpectationsofallstakeholderswiththeaimatevisionMazdapromotessustainabilityinitiativesthroughitscyonsustainabilitySustainabilityInitiatives8MazdaSustainabilityReport2021SustainabilitygementEarthPeopleSocietySustainabilitygementWhilestrivingtosincerelymeettheneedsandexpectationsofallstakeholdersunderourcorporatevision,Mazdaaimsforsustainablegrowthasacompanythroughourglobalbusinessactivities.Wearedeterminedtocontributetothesustainabledevelopmentofsocietythroughefortstoresolvevarioussocialissuesbymakingthemostofourstrengths.Throughenvironmentalconservationinitiatives,weaimtopreventglobalwarming,realizeasoundmaterial-cyclesociety,andcreateasustainablefutureinwhichpeopleandvehiclescoexistwithabountiful,beautifulearth.Respectingdiversetalentsandvalues,Mazdaunderstandsthatindividualsworkingtogethereachplayanactiveroleintheirownway.Thisleadstoinnovationinproductsandservicesthatofertruedrivingpleasureandemotionalenrichmenttoourcustomers.Wewillrealizevehiclesandasocietywhereallpeople,wherevertheylive,canenjoyunrestrictedmobilitythatoferssafetyandpeaceofmindandcontributestoenrichinglivesandthesustainabledevelopmentoflocalcommunities.Whileworkingtobuildagoodrelationshipwithallstakeholders,wewillcontinueourefortstoenhancecorporategovernancebyensuringcomplianceandmakingfair,transparent,prompt,anddecisivedecisions.9MazdaSustainabilityReport2021EndeavorforcarbonneutralitybyEndeavorforcarbonneutralityby2050ResourcecirculationContributiontopeople’smentalwellnessImprovingemployeejobsatisfactionSustainabilitygementEarthPeopleSocietySustainabilitygementroupshouldaddressofexpertsandvariousotherstakeholdersandtakingintoaccountopinionsfrombothmanagementandtherelevantdivisions.InquentironmentalsocialandgovernanceheseidentifiedthesocialissuesthattheMazdaGroupshouldresolveedbytheUnitedNationssgmaterialityMazdatookintoaccounttwoperspectivesOneisthedNationsupforinstancebusinessinitiativesannouncedinNovember2020.dapectingintothedetailsofsurveysconductedentPlanSustainableZoomZoomandSecuritiesMazdaidentifiedpotentialpriorityissuestobetackledbyevaluatingctontheMazdaGroupTheCompanyalsoclarifiedthethemestobeaddressedfromalong-termviewpointbycorrelatingwiththetargetsoftheSDGs.datetheprioritiesofthemesidentifiedinStepconsultationswereheldwithmanagement,whichapprovedthepriorities.implementationofthematerialitythemesidentifiedinSteps1-3heprogressThematerialitythatMazdarecentlyidentifiedandanactionplanthatwillbeformulatedhenceforthwillthismaterialityandplan,MazdawilldevelopthePDCA(plan-do-essnMazdawillcarryoutinitiativestoaddresstheeightthemesofmaterialitythattheCompanyhasidentified.RealizingRealizingamotorizedsocietyfreefromtrafficaccidentsCreatingasystemthatenrichespeople’slivesQualityQualityimprovementExploringpartnershipsfor“co-creationwithothers”*1Fordetails,refertothefollowingURL:/en/investors/policy/mid-term/*2ExpectationsfortheMazdaGroupandtheautomotivetry*3RisksandopportunitiesfortheMazdaGroup10MazdaSustainabilityReport2021Meetings:TwiceannuallyChairpersonMeetings:TwiceannuallyChairperson:RepresentativeDirector,President,andCEOVice-Chairperson:ExecutiveOfferinchargeofCSRandenvironmentalaffairsMembers:MembersoftheExecutiveCommittee(CSR&EnvironmentDepartment,CorporateServicesDivision)Meeting:HeldasrequiredMembers:WorkingmembersofprimarydepartmentsinvolvedincarryingoutsustainabilityinitiativesMazdaGroupcompaniesinJapanSustainabilitygementEarthPeopleSocietySustainabilitygementSustainabilityPromotionOrganizationabnsformulatedwithCSRManagementStrategyCommittee,whichthepresidentchairs,andincooperationwithotherGroupsabilityactivitiesthatareexpectedofMazdafromaglobalesinsocialenvironmentEstablishmentofCSRtargetsandfollowupoftheprogressineffortsseepp.120-22)pp.123-124)rialityseepbbhhhhndComplianceAdministrationDepartmenthhhhhhytheUnitedNationsatainabilityPromotionOrganizationaMazdaMazdaGroupcompaniesoverseasSustainabilityPromotionthroughouttheEntireValueChainotionsystemthroughouttheentirevaluechainTheCompanyplacesderstoensurethatitssustainabilityinitiativeslesaswellasthelawsandregulationsofeachountryregionbutalsorespectlocalhistorycultureandcustomsDevelopmentManufacturingImplementationofahqualityPursuitofend-of-lifeanufacturinginatotalnvehiclerecyclingandeintandemwith1,061of7countries,includingportationmorethan30countriesastereductionandChinaforprovidingproductsrandMexicotailoredtothemarketsharmoniouscoexistenceandco-prosperity11MazdaSustainabilityReport2021EarthEarthSustainabilitygementEarthPeopleSocietySustainabilitygement“SustainableZoom-Zoom2030”In2007,Mazdaannouncedthe“SustainableZoom-Zoom”long-termvisionfortechnologydevelopmentBasedonthatvision,MazdahasworkedtoprovidebothmentalandsafetyperformanceInAugust2017,Mazdaannounced“SustainableZoom-Zoom2030,”itslong-termvisionfortechnologydevelopmentthatlooksaheadtotheyear2030.Inlightoftheiontakesalongerandpeople.SustainableZoom-Zoom2030AtMazda,weseeitasourmissiontobringaboutabeautifulearthandtoenrichpeople’slivesaswellassociety.Wewillcontinuetoseekwaystoinspirepeoplethroughthevaluefoundincars.PPeoplehthesatisfactionthatcomesfromprotectingtheearthandcontributingtogpleasureSocietySocietyfutureinwhichpeopleandfutureinwhichpeopleandcarscoexistwithabountiful,beautifulearthunrestrictedmobilitytopeopleeverywherennnCurrentwarmingrate2017Huwaman-rminglimateintyObservedwarmin19601980200020202040206020802100“FrequentlyAskedQuestions”,CoordinatingEditors:SarahConnors,RosPidcock,p8,https://www.ipcc.ch/site/assets/uploads/sites/2/2019/05/SR15_FAQ_High_Res.pdfltemperaturechangerelativeto1850-1900(°C)for1.5Cpathwinduced°gSustainabilitygementEarthPeopleSocietySustainabilitygementsries*FordetailsoftheactivitiescarriedoutbytheCarbonNeutralElectricityPromotionSubcommitteeintheChugokuRegion,refertothefollowingURL:/ja/publicity/release/2021/202111/211130a.pdf(Japaneseonly)COWell-to-WheelFuel-relatedcyclefromFuelextractionextractionCOCOduringCOCOElectricitygenerationRe?neryVehicle(productElectricitygenerationRe?neryresourceextractiontodisposalCOChargingFuelingChargingFuelingCOCOCOCOCOCOCOCOCOCOExtractresourcesProducematerialsManufacturevehiclespartsTransportvehiclespartsDrivingDrivingMaintenance/servicesRecycling,disposal12MazdaSustainabilityReport202113MazdaSustainabilityReport2021chemicalsandpollutionchemicalsandpollution (7.3)Doubletheimprovementinenergyeiciency. nternationalcooperationtofacilitatenologySKYACTIVMulti-SolutionScalableArchitectureSKYACTIVGSKYACTIV-DSKYACTIVBODYCHASSISSKYACTIV-DRIVE/MTSustainabilitygementEarthPeopleSocietySustainabilitygementMazdahasconsistentlyfolloweditsBuildingBlockStrategytoeicientlydelivermoresuperiortechnologiesbybuildingupelectri?cationtechnologiesinstageswhilere?ningfundamentaltechnologies,includingengines,transmissionsandvehiclebodies.Mazdaiscontinuouslyenhancingitsinternalcombustionenginesandelectri?cationtechnologiesaspartofthe“SkyactivMulti-SolutionScalableArchitecture.”Basedonthisarchitecture,theCompanywilldelivermultipleelectri?cationsolutionstomeetvariouscustomers'needs,environmentalregulationsandtheelectricpowergeneratinginfrastructureineachmarket.Mazdaexpectsthat100%ofitsproductswillhavesomelevelofelectri?cation,anditsratioofEVswillaccountfor25%ofitsmodelsby2030.Inaddition,theCompanyplanstointroduceitsuniqueEVplatform“SkyactivEVScalableArchitecture”in2025forEVswithvariousvehiclesizesandbodytypes.Basedonthesestrategies,Mazdawillre?neitshighlyefficientdevelopmentmethods,namelyCommonArchitecture,BundledPlanningandModelBasedDevelopment,toenrichitstechnologicalassetsforthefull-scaleelectri?cationeraincollaborationwithothercompanies.MILDVVStraight6SKYACTIV-G/D/MILDHEV24VScalableArchitectureii-STOP/i-ELOOPTOPICTOPICSMazdahasbeenactivelyintroducingandutilizinggreenelectricityinitsconstantendeavorstoachievecarbonneutralityby2050.Aspartofitsefortstopromotegreenmanufacturinglinesandoicesatfactories,theCompanyhasinstalledsolarpanelsatitsplantinHiroshima.InJuly2021,Mazdainitiatedoperationofthesolarpowergenerationsystem,whichboastsanoutputof1.1MWofelectricity.ThepowergeneratedbythesolarpanelsisusedtochargethebatteriesofMX-30EVmodelsproducedattheplantandforothermanufacturingsesthereHiroshimaPlant'srooftopsolarpanelssForthestateofpowergeneration,refertothepanelsexhibitedattheMazdaMuseumandthefollowingURL:/globalassets/ja/assets/sustainability/pv_system/pv_generated_energy.pdf(Japaneseonly) (9.4) (11.6) (13.2)g14MazdaSustainabilityReport2021SustainabilitygementEarthPeopleSocietySustainabilitygementResourceCirculationInthecontextofagrowingworldpopulation,theglobalcommunityisfacingchallengesduetoanincreaseindemandforresourcesandtheworseningenvironmentalissues,includingtherisingamountfwasteToaddressthesechallengesitisnecessarytotransitiontoacirculareconomythatconsidersmedium-andlong-termoutlooks,butalsotopromotetheconventional3R(reduce,reuse,andrecycle)initiativesinalleconomicactivities.Acirculareconomyintendstogeneratenewvaluewhilereducingresourceinputsandconsumptionandmakingefectiveuseofsocialstock.Plasticrecyclingisindispensableinachievingacirculareconomy.InJapan,currentlyanestimated60%ofplasticwastegoesthroughthermalrecycling,whichmeansthatthewasteiscombustedinincineratorstoproduceenergy.InWesterncountries,however,usuallycombustionisnotincludedintheconceptofrecycling.Also,aminuteamountofdioxinisgeneratedduringtheprocessofcombustion.Forthesereasons,companiesarerequiredtocontributetothecircularuseofresources(materialrecycling/chemicalrecycling)ortheuseofbiomassplastics.Ofthetotalvolumeofwaterexistingontheplanet,only0.01%isuseablebyhumans.Thissmallamountofwaterisnotdistributedaroundtheworld,soanumberofcountriesandregionsfacehighessIftheearthstemperaturecontinuestoincreaseduetoclimatechangeinthefuture,thesealevelswillriseowingtothethermalexpansionoftheoceansandmeltingicecaps.Thiswillresultinriversbeingcontaminatedwithsaltwater,ariseingroundwaterlevelsandotherdisastersthatwillreducetheamountoffreshwateravailabletohumans.Meanwhile,theUnitedNationsWorldWaterDevelopmentReport2018statesthatby2050,globaldemandforwaterisexpectedtoincreaseby20-30%from2010,drivenbypopulationgrowth,economicdevelopmentandchangingconsumptionpatterns,amongotherfactors.Companiesmustaddresstheissuesregardingglobalwaterresourcesinordertoconductsustainablebusinessactivities. Material MaterialNon-utilized(Incinerationwithoutenergyland?lling)micalrecyclingingtwascreatedbyMazdabasedon“AnIntroductiontoPlasticRecycling2021”publishedbythePlasticWasteManagementInstitute.AnIntroductiontoPlasticRecycling2021,editedbyPlasticWasteManagementInstitute,2021,p7Low(<10%)High(40-80%)AridandlowwateruseNodataMedium-highNodataLow-medium(10-20%)“17Countries,HometoOne-QuarteroftheWorld'sPopulation,ourcesInstituteAqueduct,/insights/17-countries-home-one-quarter-worlds-population-face-extremely-high-water-stressAround2030,Mazdaforecastsprogressinvariousinitiativestorealizearecycling-orientedsocietyfromtheperspectiveofnaturalcapital.Thiswillbeachievedthroughusingresourceswithoutanylosses,promotingthe3Rstoencouragethereuseofwater,plasticandotherresources,andestablishingresourcecirculationsystems,suchasacirculareconomy.Meanwhile,asigni?cantreductioninenergyandresourcelossesthroughouttheentirevehiclemanufacturingsupplychainmaybeexpectedasaresultofefortstomakeprocessmoreeicient