"People, automobiles and nature in harmonious coexistence" (Nissan Motor Co., Ltd.)

JFS Newsletter No.29 (January 2005)
"TOWARD A SUSTAINABLE JAPAN - CORPORATIONS AT WORK" ARTICLE SERIES Article No. 22
http://www.nissan-global.com/EN/index.html

Automobiles have improved our lives as a means of transporting people and goods and by fostering economic development. In Japan, more than 60 percent of passenger transportation and more than half of cargo transport depend on automobiles. This makes the auto industry one of Japan's key industries.

On the other hand, automobiles have serious impacts on the environment. To protect the environment while continuing to enjoy the benefits of automobiles is a huge challenge not only for automakers but for society as a whole.

Nissan Motor Co. was established in 1933 and since the 1960s has expanded its production bases worldwide. Nissan now has production plants in 17 countries/regions and sales offices in more than 190 countries.

The company formed a business alliance with Renault of France in 1999 and has become one of the major corporate groups in the auto industry. In 2003, 2.97 million vehicles were sold, earning 7,429.2 billion yen (about U.S. $72.1 billion). Nissan has about 120,000 employees worldwide.

In recognition of the various environmental issues related to automobiles, Nissan decided to work towards making a contribution in the following three areas: restraining global warming, conserving clean air, water and soil, and resource recycling.

In particular, the company has given top priority to helping restrain global warming and is making efforts to develop automobile technology for reducing carbon dioxide (CO2) emissions.

http://www.nissan-global.com/EN/ENVIRONMENT/index.html

The key to reducing CO2 exhaust emissions is to stop using petroleum. Many automakers have been striving to develop clean-energy automobiles, and a variety of alternative energy resources - natural gas, electricity, alcohol and hydrogen - have drawn attention. In particular, fuel cell cars that use a renewable energy source are said to be the ultimate eco-cars because they emit only water.

However, these technologies are still in the process of being developed, and many problems have yet to be resolved, such as cost, feasibility and infrastructure building. We cannot now predict what technology will become the leading post-petroleum player. Thus, Nissan has been simultaneously developing several technologies such as hybrid cars and electric cars while focusing on fuel cell cars.

The development of clean-energy cars is not the only solution for reducing automobile CO2 emissions. Improving current gasoline-fueled cars, that is, getting better mileage, is also highly effective.

When Japan's national government set Automobile Fuel Efficiency Targets for 2010, Nissan determined to achieve these targets by 2005. It already achieved the targets in 2003 for half the cars in the targeted weight classes.

Nissan has endeavored to improve mileage by developing fuel-efficient engines and transmissions as well as light-weight cars.

The company also focuses on real-world fuel efficiency, because in cities cars often stop, carry loads and use air-conditioners. The company's efforts are reflected in its latest compact car, which has achieved 20 percent more real-world fuel efficiency than the previous model in its series.

Nissan has also taken the initiative in developing an exhaust gas cleaning system to promote conservation of clean air, water and soil. In 2000, the company released the Sentra CA, the world's first gasoline-fueled car certified as a Partial Zero Emission Vehicle (PZEV) by the California Air Resources Board (CARB). At that time, the PZEV was the world's most stringent set of emission standards.

Developing this technology motivated Nissan to develop an even more advanced exhaust gas cleaning system, and it succeeded in reducing costs and bringing about the widespread use of low emission vehicles. At present, more than 90 percent of the company's new cars on the Japanese market meet the nation's Ultra-Low Emission Vehicle (ULEV) standards.

Nissan has now set a new goal - to have over 80 percent of its new cars meet the even more stringent Super Ultra-Low Emission Vehicle (SULEV) standards by the end of fiscal 2005.

An automobile that meets ULEV standards emits 75 percent less nitrogen oxides (NOx) and hydrocarbons (HC) than vehicles meeting Japan's 2000 exhaust emission standards. The required ULEV emission level is about one-hundredth the national level required in 1973.

Meanwhile, a vehicle that meets SULEV standards is even more eco-friendly, emitting 75 percent less NOx and non-methane HC than vehicles meeting national standards for 2005. This means that its emissions are about half of what is required by ULEV, making the SULEV exhaust emission standards the most stringent in the world today.

One of Nissan's distinctive environmental approaches is to provide eco-friendly cars that are as affordable as possible by using its highly effective technologies not only in a few special vehicles but also in many other models of cars.

Nissan recognizes that a vehicle with superior environmental performance that is not widely available will have little effect on environmental impacts. In its view, providing cars that are affordable, efficient, and widely available can make more of a contribution to protecting the environment.

As a global car manufacturer, Nissan has a responsibility to transfer its fuel efficiency and exhaust gas purification technologies, which were developed in Japan and western countries, to automobile industries in the developing world, where demand for automobiles is expected to rise.

It also feels responsible for spreading its original high-productivity production methods to other countries, because productivity improvements can help reduce not only labor and energy costs but also environmental impacts as well.

Nissan has also been focusing on resource recycling for a long time. In 1996, it set up a special division for recycling used vehicles, and launched a feasibility study to understand the practical aspects of car disassembly. Based on the results of this study, it established new model design guidelines for making cars easier to disassemble and recycle, and it has also started selling used components and parts.

In addition to its environmental protection activities in the field of production, Nissan is also promoting environmental awareness among its dealers, who are the ones to make direct contact with customers.

In 2000, the company launched an original environmental management certification system, the Nissan Green Shop system, which follows international environmental ISO 14001 standards. As of 2002, a total of 218 dealers were certified nationwide.

To receive Green Shop certification, dealers must properly treat and recycle used vehicles and waste, and make efforts to conserve energy. The Nissan Group as a whole, from manufacturers to dealers, is working to achieve its recycling and all other environmental goals.

With respect to promoting a sustainable society, Nissan predicts that the car industry will have to face further environmental constraints, including restrictions on the use of finite resources such as rare metals and fossil fuels, and more stringent regulations on carbon dioxide and other gas emissions. Nissan believes that any corporation unable to deal with this kind of situation will stop growing.

Based on this recognition and under the leadership of President Carlos Ghosn, Nissan is mapping out global strategies that look ahead to the mid- and long-term future: What shape should a sustainable automobile-based society take in order to ensure safety, comfort, economy and fairness, not to mention environmental protection? What sort of new values will Nissan be creating in such a society? How should it allocate its resources to create these new values?

As it seeks to implement its environmental philosophy of "people, vehicles and nature in harmonious coexistence," Nissan is addressing these difficult challenges with enthusiasm.