Subaru Voluntary Plan for the Environment

The 6th Voluntary Plan for the Environment sets 2020 as its target year and is made to link with fiscal year plan of the Prominence 2020, Subaru’s Mid-term Management Plan. The Voluntary Plan’s activity content is deepened so that it links with global approach to the environment.

Organization

Subaru established an environmental management structure across the organization with two pillars of the Company-wide Environmental Management System (EMS) and the Environmental Committee in order to reach the goals of our Environmental Policy and Voluntary Plan for the Environment.
Serving as the head of the Company-wide EMS and the chairperson of the Environmental Committee, the director responsible for environmental issues conducts reviews twice a year, and reports important problems to the Executive Management Board Meeting and the Board of Directors. The director proactively promotes environmental conservation activities, comprehensively managing the progress and the direction of our efforts.

Subaru Group Environmental Management Organization

☆Companies participate in the domestic affiliated company meeting
*Group certification

Status of Establishing the Environmental Management System

Subaru, actively engaging in establishing an environmental management system for the entire Subaru Group, has established environmental management systems at offices, business partners, foreign and domestic consolidated manufacturing companies, and foreign and domestic Subaru dealerships, and is acquiring third-party certification.

Since FYE2018, Subaru, its eight domestic consolidated manufacturing and transport companies (among them, six companies with * obtained group certification) and three north American consolidated manufacturing and sales companies have obtained ISO14001:2015 certification, and have started its operation. In March 2011, all of our 44 domestic dealerships and their 700 outlets obtained Eco Action 21 (EA21) certification, which was the first in Japan among all automobile manufacturers. And we introduced the “Eco Action 21 Value Chain Model Business” promoted by the Ministry of the Environment of Japan. In addition, in May 2012, Subaru of Indiana Automotive, Inc. (SIA), the US production site for Subaru, became the first automobile production plant in the US to obtain ISO50001 certification, which is the international standard for energy management systems (EnMS), and continues to actively promote their activities.

Furthermore, Subaru Logistics Co., Ltd. obtained ISO39001 certification, the international standard for road traffic safety management systems, in August 2015, and ISO39001, the quality management systems standard, in February 2016.

In addition to these achievements, Subaru Group, through global business activities, will continue to promote green procurement in the supply chain, establishment of a company-wide environmental management system covering nine company offices, and green procurement to reduce environmentally hazardous substances.

Status of Subaru Group’s EMS/EnMS Establishment

Factories and Offices Dealerships/​Distributors
Category Subaru Corporation Business Partners Domestic Consolidated Production and Distribution Companies Overseas Consolidated Production Company Domestic Consolidated Dealerships Overseas Consolidated Distributors
Divisions Gunma plant
Tokyo Office
Utsunomiya Plant
Handa Plant
West Handa Plant
Headquarters
Green procurement Raw material procurement vendors *Fuji Machinery Co., Ltd.
*Kiryu Industrial Co., Ltd.
*Yusoki Kogyo K.K.
*Subaru Logistics Co., Ltd.
*FAS Corporation
*Industrial Products Co., Ltd.
Ichitan Co., Ltd.
Fuji Jukou House Corporation

Total: 8 companies
SIA All domestic Subaru dealerships

Total: 44 dealerships
SOA
SCI

Total: 2 distributors
Acquired
EMS/EnMS
ISO14001: 2015 version Either
ISO 14001 or Eco Action 21
ISO14001 ISO14001
ISO50001
Eco Action 21 ISO14001

* Group certification

Introduction of Eco Action 21 Value Chain Model Business

Subaru was the first automobile manufacturer to acquire Eco Action 21 certification for all domestic dealerships and outlets in March 2011 and are promoting operation under these guidelines. In November 2016, this achievement was recognized and approved as the “First Value Chain Model Business” for further promotion of the certification by the Ministry of the Environment of Japan. We plan to develop and promote Eco Action 21 to the Group while receiving instruction and support from Institute for Promoting Sustainable Societies (IPSuS)*, an accreditation institute for eco action. Last fiscal year, we supported 20 Tier2 business partners’ Eco Action 21 certification registration in order for the value chain as a whole to promote the certification.

* IPSuS: Institute for Promoting Sustainable Societies
This organization studies, plans and implements new initiatives for building sustainable societies by integrating initiatives related to business, such as Eco Action 21, and initiatives related to products and services that make use of the supply chain.

Scope 3 Calculation

Regarding greenhouse gas emissions, it is a demand of society for companies to calculate and disclose emissions of their entire supply chain. Subaru has participated in the Ministry of the Environment “Support for Calculating Supply Chain Greenhouse Gas Emissions toward an Environmental Information Disclosure Infrastructure,” and receives assistance from NTT Data Institute of Management Consulting, Inc. in Scope 3 calculations. We will continue to promote identifying and managing GHG emissions. For detailed performance of Scope 1, Scope 2, and Scope 3, please refer to the section on climate change.

Related information

Climate Change

Management of Chemical Substances (Operation of the IMDS)

Since the enforcement of the European Union’s Registration, Evaluation and Authorization of Chemicals (REACH) regulation, End-of Life Vehicles (ELV) Directive, Chemical Substance Control Law of Japan, etc. various chemical substances have been regulated, and at the same time, the automobile industry has been required to disclose information and foster proper management regarding the use of chemical substances in automobiles.

Subaru is promoting strengthened supply chain management by using the IMDS in order to identify the names and amounts of chemical substance used in every one of several tens of thousands of parts that are in automobiles.

Through this initiative, we are managing the restricted substances (lead, mercury, cadmium, hexavalent chromium, etc.) before use, promoting replacement of regulated substances with alternatives, and establishing a management system that can promptly disclose information regarding the usage of substances requiring management according to EU REACH, etc.. Furthermore, Subaru promotes reduction and management of environmentally hazardous substances in cooperation with entire supply chain.

Environmentally Hazardous Substances Management System through IMDS

Environmental Risk Management

Subaru works to prevent and minimize environmental risk in our business activities (such as environmental accidents, pollution, or non-compliance with laws and regulations) by periodic sampling/identification and promoting management of environmental risks.

In addition, by standardizing the management process when an environmental risk is discovered and by carrying out training during normal times, we strive to quickly implement emergency measures and measures to prevent recurrence so that secondary risks due to confusion can be avoided.

In November 2017, the Tokyo Office implemented emergency response training with 165 participants to minimize contamination that occurs with soil and sewage inflow with gasoline or oil leaks on the roads onsite. We will continue to conduct regular trainings to prevent accidents in the future.

Status of Implementation of Environmental Audits

(1) Regular audit in accordance with the ISO14001 Environmental Management System
(2) On-site review at the contractors for the proper treatment of industrial wastes
(3) Review of compliance status with environmental laws and regulations

Process When An Environment-related Accident Occurs

Environmental Compliance

Status of Compliance with Environmental Laws and Regulations

Subaru strives to be in compliance with environmental laws and regulations, and to eliminate environment-related accidents and complaints. The figure below shows the results of the last five years.


Status of Compliance with Environmental Laws and Regulations in Fiscal Year Ending on March 31, 2018

Subaru sets self-imposed voluntary standards, which are 20% higher than the standards set by environmental laws. We are committed to achieving “zero non-compliance” with both the legal and voluntary standards. There was one case of exceeding water quality-related legal standards in FYE2018, so measures were taken to prevent a recurrence.

Name Number of Cases Details of Main Corrective Measures
Gunma Plant 1 case Immediately took measures including chemical processes.

Environmental Complaints Received in Fiscal Year Ending on March 31, 2018

We are striving to achieve the goal of zero environmental complaints. However, we received 8 complaints and took corrective measures in FYE2018.

Name Number of Cases Details of Main Corrective Measures
Gunma Plant Noise: 1 case Time of parking lot use restricted and change of parking lots.
Odor: 3 cases Facilities checked.
Utsunomiya Plant Noise: 3 cases Soundproofing measures, muffling measures and daily inspection.
Facilities repaired and addition of daily inspection.
To reduce noise from the facility when it operated.
Measures to be taken within FYE2019.
Tokyo Office Noise: 1 case Facility’s operation noise level reduced.
Addition of regular voluntary noise check at night time.

Status of Environmental Accident Occurrences in Fiscal Year Ending on March 31, 2018

We are striving to achieve the goal of zero accidents, both on and off site. While there were no off-site accident, there were four incidents of on-site water flow accidents, and we took measures to prevent recurrence.

Name Number of Cases Details of Main Corrective Measures
Gunma Plant 2 cases Implemented preventive education.
Reviewed part of work procedure document and implemented its thorough dissemination.
Parts Distribution Center 2 cases Called attention to all suppliers.
Made preliminary assumption of measures against effluent risk.

Environmental Education

Subaru regards initiatives for environmental issues as one of social responsibilities as a corporation, and provides employees at all levels and of all tasks with a range of environmental education programs.
In April 2017, we implemented “New Employee Environmental Conservation Education” for the 574 new employees. Our personnel in charge of environment gave lectures on global environmental issues and Subaru’s environmental policy and conservation activities, including the importance of each employee’s participation in these initiatives using case studies.

We also held the ISO14001 New Internal Auditors Training Seminar to enhance the internal auditing system for the ISO14001 environmental management system and to strengthen environmental conservation activities conducted at workplaces. In this seminar, external lecturers were invited for the two-day session, in which participants gained knowledge necessary as internal auditors.

We believe it is important for employees to be fully aware of environmental problems and environmental efficiency on a daily basis, and to exercise this awareness in business and environmental activities. To this end, we continue to promote environmental education and enlightenment for employees.

New Employee Environmental Conservation Education

ISO14001 New Internal Auditors Training Seminar

Overall Image of Subaru’s Environmental Impact concerning Automobiles

Note: These are the main environmental impacts arising from our automobile manufacturing, sales, etc. In addition to this, we carry out LCA and Scope 3 calculations.
Target: Tokyo Office, Gunma Plant
Energy use, CO2 emissions: Calculated according to the Mandatory Greenhouse Gas Accounting and Reporting System based on the Act on the Promotion of Global Warming Countermeasures.
PRTR: Chemical substances listed under the PRTR Law of Japan

Environmental Accounting

Our Approach to Environmental Cost and Its Calculation Method

Referencing to the Guidelines of the Ministry of the Environment, Subaru’s independent guidelines had been established for our environmental conservation activity organizations (Calculation methods have been changed partially starting in Fiscal Year Ending on March 31 2006), and environmental costs are calculated and summarized according to these guidelines (Group companies also use the same guidelines for calculations.).
Detailed calculation methods can be found on pages 9-13 in 2006 Report on the Environment and Society, separate volume DATA.

Environmental Cost and Capital Investment Calculation Method

Capital investments and related expenses for environmental facilities (investments of 25 million yen or more) and labor costs are calculated on a differential or pro-rata basis. For example, investment and environmental cost for energy conservation of a production facility are calculated as follows:

Capital investment and environmental cost =
{(Total investment – Investment not for energy conservation)/Total investment} x (Capital investments in the production facility, maintenance costs, etc.)

For smaller facilities with investments of less than 25 million yen, all the capital investments and maintenance costs limited to environmental purposes are totaled.

In addition, depreciation of equipment for which an investment was made is not included in the environmental cost from the viewpoint of cash flows. Other small expenses, such as fixed assets taxes and insurance costs, are also omitted from the total. Environmental cost and economic effect of environmental facilities are included only for three years from the year after the facilities are put into operation.

FYE2018 Calculation Results

Environmental cost came to 36.2 billion yen on a non-consolidated basis, up 1.69 billion yen (4.9%) from the previous fiscal year, and 38.0 billion yen on a consolidated basis, up 1.83 billion yen (5.1%).
The cost increase was mainly due to an increase in research and development (R&D) costs (1.97 billion yen on a non-consolidated basis).
Environmental Costs and Effects Calculation Results (Fiscal year ending March 2018)

Environmental Costs and Effects Calculation Results (Fiscal year ending on March 31, 2018)

(Unit: million yen)

Item Category Subaru (non-consolidated) Consolidated
FYE2017 FYE2018 FYE2017 FYE2018
​Investment ​Cost ​Investment ​Cost ​Investment ​Cost ​Investment ​Cost
(1)
Cost in the business area
①Pollution prevention cost 1,346 410 452 316 1,372 677 452 742
②Global environmental conservation cost 175 49 112 42 228 77 139 75
③Resource recycling cost 9 617 0 618 9 1,176 4 1,410
(2)
Upstream and downstream costs
Recycling related cost Cost arising from changes in product materials - 340 - 259 - 340 - 322
(3)
Administration cost
Cost for monitoring environmental impact Cost for the Environmental management Cost for environmental education - 80 - 71 - 159 - 152
(4)
R&D cost
R&D cost for environmental impact reduction 4,017 32,535 2,773 34,504 4,232 33,238 2,884 34,889
(5)
Social Activity Cost
Cost related to donation, etc. for environmental conservation groups - 98 - 121 - 102 - 124
(6)
Environmental remediation cost
Cost to remedy soil and underground pollution 0 359 0 244 0 381 0 262
(7)
Other cost
  - 0 - 0 - 0 - 0
Grand total 5,547 34,488 3,337 36,176 5,841 36,150 3,479 37,976
40,035 39,512 41,991 41,455

Note: Due to rounding, the sum may not exactly match the corresponding total.

Economic Effect Calculation Results (Fiscal year ending on March 31, 2018)

Item Economic effect (Millions of yen)
Non-consolidated Consolidated
Reduction in energy cost from energy conservation 16 20
Sales from recycling (sales of valuable items: metals, waste liquids, and cardboard boxes) 1,820 3,633
Reduced raw material cost due to recycling (packaging cost, etc.) 0 0

[Companies included in the consolidated calculation]
Six domestic subsidiaries: Yusoki Kogyo K.K., Fuji Machinery Co., Ltd., Ichitan Co., Ltd., Kiryu Industrial Co., Ltd. , Subaru Logistics Co., Ltd., Industrial Products Co., Ltd.
Four overseas subsidiaries: Subaru of Indiana Automotive, Inc., Subaru of America, Inc., Subaru Canada、 Inc., Subaru Research & Development, Inc.