Six Priority Areas for Sustainability

Identification Process for the Six Priority Areas for Sustainability

Previously, the SUBARU Group had promoted initiatives in the Six Priority Areas for CSR: People-oriented Car Culture, Resonance and Coexistence, Peace of Mind, Diversity, Environment, and Compliance.
To select the priority areas, the SUBARU Group first identified 41 priority topics for which social needs were high and then conducted a questionnaire among experts and investors in North America and Japan. The responses and opinions we received were used in an assessment and exploration of these areas from two perspectives: areas in which we can engage the community by leveraging our business strengths, and areas related to the demands of society. As a result, the SUBARU Group selected People-oriented Car Culture, Resonance and Coexistence, Peace of Mind, and Diversity as the four areas where SUBARU could engage our communities by leveraging our business strengths, and Peace of Mind, Diversity, Environment, and Compliance as the four areas where the SUBARU Group could work to meet the demands of society.

Now, we have evolved these Six Priority Areas for CSR into the Six Priority Areas for Sustainability in response to the changing social environment and shifting mindsets toward sustainability. To contribute to the sustainability of the SUBARU Group and society, we will go beyond CSR perspectives to further leverage SUBARU’s values and strengths.
This evolution also updates our People-oriented Car Culture to a People-oriented Mobility Culture, while Diversity is updated to Diversity, Equity & Inclusion (DE&I).
In our People-oriented Mobility Culture, we aim to become a company whose presence and appeal differentiate from its competitors by expressing the diversity of products as the SUBARU Group, including the aerospace business. Also, we will provide a means of transportation based on SUBARU’s DNA in response to the changing times. In terms of Diversity, Equity & Inclusion (DE&I), we will develop our organization to maximize the diverse individuality of our workforce and create comfortable workplace environments. These efforts to create an environment of equity where everyone can access fair opportunities will lead to innovation, allowing diverse individuals to collaborate to create SUBARU’s unique sustainable value.
In addition, we will further deepen our efforts by setting new visions, priority themes, goals and KPIs for each area. Within this, the vision will not include a time frame so as to express the SUBARU Group’s unchanging direction from a longer-term perspective. Meanwhile, the priority themes will be items to be addressed with a focus on the SUBARU Group’s strengths, and goals and KPIs will be set to promote medium- to long-term initiatives.

The SUBARU Group will share its commitment to sustainability with all employees in the Group and globally based on the SUBARU Global Sustainability Policy. We will pursue value creation for “Delivering Happiness to All ” through initiatives based on the Six Priority Areas for Sustainability.

Six Priority Areas for Sustainability

Activities in the Six Priority Areas for Sustainability

The SUBARU Group seeks to become an organization that is trusted by society by fulfilling its social responsibility as a corporate group, aiming for sustainable growth and contributing to the creation of an enjoyable and sustainable society.
To achieve our vision of being a company “Delivering Happiness to All,” we will incorporate the Six Priority Areas for Sustainability and work toward the Sustainable Development Goals (SDGs) that the international community is pursuing for 2030. One example of this is our efforts connected to the SUBARU Group’s target of aiming for zero fatal traffic accidents^* in 2030, which contribute to Target 3.6 of the SDGs: “By 2020, halve the number of global deaths and injuries from road traffic accidents.”
We will continue to contribute to the achievement of the SDGs by leveraging our business strengths and responding to the demands of society while pursuing value creation unique to the SUBARU Group.

*: Aim for zero fatal traffic accidents among occupants of SUBARU vehicles and people involved in collisions with SUBARU vehicles, including pedestrians and cyclists.

Vision / Priority Themes / Goals / KPIs in the Six Priority Areas for Sustainability

Six Priority Areas	Vision	Priority Theme	Target	KPI	Target/KPI-related Initiatives
People-oriented Mobility Culture	Offer unfading emotional value from spending time with SUBARU and become a company that enriches people’s lives and minds as a partner	Offer mobility services and experiences that provide “Enjoyment and Peace of Mind”	-	-	-
Resonance and Coexistence	Broaden the circle of person-to-person communication and become a company that widely resonates and coexists with society	Offer mobility services and experiences that provide “Enjoyment and Peace of Mind”	-	-	-
Resonance and Coexistence		Promotion of activities that lead to solutions to issues faced by local communities	-	-	-
Peace of Mind	Become a company that provides the utmost peace of mind to all stakeholders	Be close to customers and pursue activities that always offer peace of mind	Aim for zero fatal traffic accidents^*1 in 2030	Ratio of fatal traffic accidents^*2 avoidable with SUBARU’s latest technologies introduced into the market	Social > Making Safe Vehicles
Diversity, Equity & Inclusion (DE&I)	Continuously create innovation and values through spontaneous networking of the individual with the organization	Develop an organization where diverse individuals can demonstrate their abilities and work together respecting each other	Achieve 70% of engagement score by FYE March 2029	Employee attitudes survey (SUBARU) Engagement score	Social > Human Resources: Approach to Human Capital
			Achieve 100 number of female managers by FYE March 2031	Number of Female Managers (SUBARU)	Social > Human Resources: Diversity, Equity & Inclusion (DE&I)
			Achieve 3.0% of employees with disabilities by FYE March 2031	Employment rate of people with disabilities (SUBARU, SUBARU Living Service Co., Ltd., and SUBARU BLOOM Co., Ltd.)
Environment	Cherish and protect the environment –the earth, the sky and nature– through Group-wide activities	Mitigating climate change (Achieve carbon neutrality in the entire life cycle)	Reduce Scope 1 and 2 emissions by 60% by FYE March 2036, compared with FYE March 2017 (total volume basis)	CO₂ emissions versus the base year	Environment > Mitigating Climate Change
		Realizing a circular economy (Aim for zero environmental impact from resource extraction and disposal)	Reduce the total amount of waste by 1% annually versus BAU^*3 emissions	Amount of waste generated	Environment > Realizing a Circular Economy
			Achieve zero emissions^5 at production plants in Japan and overseas^4	Amount of final disposal
			Aim for a 25% use rate of recycled plastics by FYE March 2031	Use rate of sustainable materials
		Coexistence with nature (Aim for net zero impact on the natural environment)	Proper management of environmental impacts on the natural environment	Violations of regulation values/voluntary standard values	Environment > Coexistence with Nature
			Expansion of protected areas aimed at reducing environmental impact	Number of protected areas aligned with management levels	Environment > Coexistence with Nature
Compliance	Act in good faith and become a company that is trusted by and resonates with society	Permeating “Insightful Compliance”	Maintain zero serious compliance violations^*6	Employee ethics	Governance > Compliance
Compliance		Permeating “Insightful Compliance”	Maintain zero serious compliance violations^*6	Supplier CSR survey	Social > CSR Procurement

*1: Aim for zero fatal traffic accidents among occupants of SUBARU vehicles and people involved in collisions with SUBARU vehicles, including pedestrians and cyclists.

*2: Excluding accidents involving violation of traffic rules or significant dangerous behavior by the other party, etc.

*3: Emissions under the current policy without further action (business-as-usual).

*4: SUBARU: Gunma Plant, Tokyo Office, Utsunomiya Plant; Group companies in Japan: Fuji Machinery Co., Ltd., Kiryu Kogyo Co.,Ltd., Ichitan Co., Ltd., Subaru Logistics Co., Ltd., Yusoki Kogyo K.K.; and Group companies overseas: Subaru of Indiana Automotive, Inc.

*5: Final disposal amount (total amount of direct landfill waste + landfill waste after intermediate processing) less than 0.5% of the total amount of waste (total amount of valuable resources + industrial waste + specially controlled industrial waste + general business-related waste).

*6: Compliance violations that could shake the foundations of SUBARU’s business.

The SUBARU Group’s Initiatives Connected to Priority Themes in the Six Priority Areas / Relevant SDGs / Why It Is Important to Us

Priority Area: People-oriented Mobility Culture

Priority Theme	The SUBARU Group’s Initiatives	Relevant SDGs
Offer mobility services and experiences that provide “Enjoyment and Peace of Mind”	Development of technology to enhance predictability of vehicle behavior through the driver’s five senses
	Development of products in accordance with market needs and changing times
	Research and development of air mobility technology
	Development of high-quality accessories integrated with new models
	Design of parts that can be used in multiple vehicle models
	Provision of digital services (MySubaru, SUBAROAD, etc.)
	Planning of customer services using vehicle data
Why It Is Important to Us
The SUBARU Group has contributed to increasing customers’ options by respecting people’s diverse values and offering distinctive products tailored to diverse forms of market value. We believe that a car is more than just a means of transport, but rather a partner that enriches people’s lives by understanding and meeting their expectations. The SUBARU Group will continue to connect vehicles with changing lifestyles and life stages, and cherish the human emotions of “Enjoyment and Peace of Mind” experienced by each and every one of our customers. We will play a role in the development and spread of a people-led mobility culture through the provision of comfortable transportation spaces.

Priority Area: Resonance and Coexistence

Priority Theme	The SUBARU Group’s Initiatives	Relevant SDGs
Offer mobility services and experiences that provide “Enjoyment and Peace of Mind”	Promotion of Monozukuri through plant tours and exhibitions
Promotion of activities that lead to solutions to issues faced by local communities	Planning and promotion of plans to realize sustainable local communities
	Continued Love Promise activities in the U.S.
	Proactive engagement in the Cherishing Every Life Project in Japan
	Review of work assignments to reduce the burden on logistics workers
	Road traffic safety awareness activities
	Conducting community support activities during disasters and pandemics
	Planned delivery of disaster prevention and rescue helicopters, etc.
Why It Is Important to Us
At SUBARU Group, when it comes to our business activities, we regard customers and local communities as some of our most important stakeholders. Over the years, SUBARU Group has been sustained not only by our own efforts to put the customer first but also by the efforts of many people in the communities where we do business. SUBARU Group will form communities of resonance and coexistence to secure our sustainable growth as a company through routine communication, ensuring that our products and services resonate with and are trusted by our customers, and that SUBARU Group’s corporate activities resonate with and are trusted by the local communities in which they take place.

Priority Area: Peace of Mind

Priority Theme	The SUBARU Group’s Initiatives	Relevant SDGs
Be close to customers and pursue activities that always offer peace of mind	Instilling a customer-centric and quality-first mindset among employees
	Further provision of customer-oriented quality
	Development of technologies aimed at zero fatal traffic accidents and integration of these technologies into vehicles
	Sale and popularization of EyeSight-equipped vehicles
	Provision of high-quality maintenance and service by dealerships
	Provision of peace of mind from being watched over by connected technology
	Pursuit of flight safety through autonomous technology
Why It Is Important to Us
SUBARU will deliver the peace of mind that cars must offer by manufacturing vehicles and providing associated services. SUBARU will tirelessly review all quality-related processes in our aim to be the No. 1 company for quality, whose products customers can rely on for a long period. Attaching particular importance to protecting lives, SUBARU will work to aim for the goal of zero fatal traffic accidents in 2030. In addition, we must ensure that the local communities where our plants are based know that they can rely on SUBARU to offer peace of mind in our manufacturing operations. Creating safe workplace environments that offer all SUBARU Group workers peace of mind is also essential. Furthermore, SUBARU will contribute to resolving the problem of traffic accidents and other social issues associated with cars. SUBARU Group will aspire to become a company that provides customers, local communities, employees, and all other stakeholders with the utmost peace of mind.

Priority Area: Diversity, Equity & Inclusion (DE&I)

Priority Theme	The SUBARU Group’s Initiatives	Relevant SDGs
Develop an organization where diverse individuals can demonstrate their abilities and work together respecting each other	Promoting women’s empowerment
	Promoting employment of people with disabilities
	Support for senior employees to take on more active roles
	Promotion of DEIB in the U.S.
	Examination and promotion of creating workplaces where female employees in production departments can play an active role
	Examination and promotion of a workplace environment that pays due consideration to non-Japanese human resources
	Examination and promotion of a workplace environment that pays due consideration to LGBTQ+ persons
	Fostering employee resonance and acceptance of management direction and initiatives
	Construction and implementation of flexible work styles and systems
Why It Is Important to Us
Most companies today face social demand for diversity among their employees and diverse ways of working. SUBARU believes that continuing to offer products that contribute to increasing options for our customers and respecting diverse forms of market value will lead to sustainable growth for the company. Achieving this requires diversity of perspective among those who work for the SUBARU Group. SUBARU Group aims to create an organization that makes the most of the individuality of its workers and maximizes their potential, to develop a facilitative workplace, to create an equitable environment where everyone has fair opportunities, and to proactively innovate in a way that is unique to SUBARU.

Priority Area: Environment

Priority Theme	The SUBARU Group’s Initiatives	Relevant SDGs
Mitigating climate change (Achieve carbon neutrality in the entire life cycle)	Expansion of electric vehicle models, especially BEV development
	Improvement of fuel/power efficiency
	Initiatives for the popularization of low-carbon fuel
	Energy conservation through facility upgrades
	Generation of renewable energy (on-site/off-site)
	Purchase of carbon-neutral electricity (use of certificates, etc.)
Realizing a circular economy (Aim for zero environmental impact from resource extraction and disposal)	Design for recycling
	Effective use of resources (recycled resins/biomass/recycled materials)
	Recycling and achieving zero emissions
	Proper treatment processing of end-of-life vehicles
Coexistence with nature (Aim for net zero impact on the natural environment)	Compliance with environmental laws and regulations
	Water discharge quality management
	Utilization of the Landscaping Guidelines
	Promoting green space conservation activities
Why It Is Important to Us
In its Environmental Policies, SUBARU states that our fields of business are “the earth, the sky and nature” and focuses on efforts aimed at coexistence with nature. These words encapsulate our desire to take the greatest possible care of “the earth, the sky and nature,” since they are the fields in which our automotive and aerospace businesses—the pillars of our enterprise—operate. With the concept that sustainability of both society and SUBARU only becomes possible with the existence of a rich environment, that is “the earth, the sky and nature,” the entire SUBARU Group will make the greatest possible efforts to undertake environmental conservation activities.

Priority Area: Compliance

Priority Theme	The SUBARU Group’s Initiatives	Relevant SDGs
Permeating “Insightful Compliance”	Updating regulations and rules, and strengthening compliance with them
	Continued activities to promote autonomous employee behavior
	Promoting proper business practices
	Promoting initiatives to respect human rights
	Conducting CSR surveys and awareness-raising activities for suppliers
	Responsible raw material procurement
	Compliance with various laws and regulations
	Enhancing employee cybersecurity literacy
	Strengthening cybersecurity measures in systems
Why It Is Important to Us
Having reflected on the previous lack of awareness of social norms in the execution of our duties, flaws in our internal rules, and the inadequate understanding of laws and regulations relevant to our operations, SUBARU is keenly aware of the need to change ways of thinking and completely change the culture. SUBARU will dedicate the whole of the SUBARU Group to promoting initiatives focused on compliance as a priority, with the aim of ensuring that SUBARU resonates with and inspires trust in our customers and all other stakeholders.

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