Environment

Scope 1 & 2

We are reducing energy consumption through rigorous energy-saving activities and the development and introduction of innovative production technologies. Furthermore, we are progressively switching our electricity supply to solar and wind power and renewable sources. We are advancing the replacement of non-electric energy by way of electrification while promoting CO₂ separation, capture, reuse, and substitution with new energy sources.

Our energy conservation initiatives dictate the strengthening of groupwide efforts to assess the energy consumption of each piece of equipment and process used in producing a single product and eliminate waste. Among these efforts, the Energy Conservation Center Chairman's Award was presented for an idea involving the intermittent operation of cleaning equipment at that organization’s FY2025 Energy Conservation Awards ceremony. By shifting to small-lot cleaning processes, powering down idle equipment, and applying inverter control tactics, we reduced annual electricity consumption by approximately 27% (a decrease of 12,453 kWh compared to previous levels).

Furthermore, the executives responsible for sustainability matters tour domestic and international factories to personally verify CN and CE initiatives on-site. They engage directly with personnel to identify challenges and implement countermeasures. We will continue devising new energy-saving initiatives and share existing ones beyond the Group with external parties in an effort to contribute to CO₂ reduction at the societal level.

We are reducing CO₂ emissions while maintaining production capacity through innovative production technologies, such as power and heat source reduction, unmanned operation, and the development and use of ultra-eco equipment.
This time, the “Room-Temperature Rust-Preventing Cleaner” jointly developed with Kao Corporation has received the Grand prize of Minister of Economy, Trade and Industry at the 52nd Environment Awards hosted by the National Institute for Environmental Studies and Nikkan Kogyo Shimbun, Ltd. Combining three key functions—high cleaning effectiveness at room temperature, high drying efficiency without the need for hot air, and high rust prevention that obviates the need for rust treatment—this process achieves a 73% reduction in CO₂ emissions versus conventional cleaning machines and reduces the need for rust prevention materials.
Furthermore, extending the usage period of the cleaning solution reduces water resource consumption to less than one-third and lightens the load on wastewater treatment.

Europe has set its long-term target deadline for carbon neutrality at 2040, which is earlier than Aisin's goal. As a first step toward achieving 100% renewable energy usage at all European production sites, the Company has advanced its transition to renewable energy sources, such as solar and wind power generation. In April 2025, Aisin Otomotiv Parçaları San. Tic. A.Ş (Istanbul), an Aisin production subsidiary based in Türkiye, constructed a solar power facility within Türkiye. The commencement of power generation at this facility pushed the renewable energy adoption rate to 100% across all production sites in the European region, including Türkiye.

Aisin handles raw materials and runs a variety of heat-intensive production processes, which presents challenges for Scope 1 reduction. Aisin Takaoka has developed a biofuel, Bio-M-Coke, as an alternative to coking coal used in iron smelting. The company has conducted demonstration tests replacing 100% of its production line with bio-briquette coke, confirming stable operation under normal conditions. Concurrently, demonstration tests are progressing at domestic partner foundries, with sales of this product scheduled to begin around autumn 2025.

Scope3

We are focusing emissions reduction activities on the four categories (1, 4, 11, 12) that account for the largest share of CO₂ emissions across the entire production lifecycle, from resource extraction through disposal.
Specifically, in addition to reducing CO₂ during use by improving the performance of our products, we are working on CO₂ reduction activities across the entire supply chain. This includes promoting the adoption of low-CO₂ materials, supporting suppliers’ carbon neutrality programs, and collaborating with suppliers and transport services to improve loading rates and optimize routes. These initiatives lessen our environmental impact while also raising our competitiveness as a company.

To tackle CO₂ reduction from the initial stages of development, we incorporate lifecycle assessment (LCA) into our product designs. We use measuring tools in accordance with internal assessment guidelines to quantitatively evaluate the LCA of our products. Moreover, we have integrated LCA education into our companywide training system to enhance our employees’ understanding and improve their assessment skills. By adopting low-CO₂ materials and introducing smaller, lighter products starting at the early development stage, we reduce CO₂ emissions throughout the entire product lifecycle.
Our efforts have been recognized and, in March 2025, we were certified as a Five-Star Low-Carbon Supplier by the China Automotive Technology and Research Center (CATARC).

Life Cycle Assessment (LCA): Quantitatively evaluates the environmental impact throughout the entire life cycle of a product or service.

We have been working with suppliers since FY2022 to reduce CO₂ emissions within the supply chain. To date, we have established three platforms for continuous engagement: CN Base Camp for learning the fundamentals of carbon neutrality, CN Open Campus for learning about other companies' initiatives and new information, and CN Activity Support for practical application leading to results. Starting in FY2024, we have strengthened our framework for advancing initiatives together with suppliers by matching our factories with suppliers by industry sector. This enables onsite, hands-on sharing of best practices and activities for mutual learning. Moving forward, under the slogan “Leave no one behind,” we will continue to promote CN activities across the entire supply chain in consultation with our suppliers.

As part of our efforts to reduce material usage, we have been working to achieve cascade use resin runners created during reservoir tank manufacturing for other products within the group. As a result, we have successfully utilized this excess material as a core input for sheet products. This reuse of runners is practiced across the entire group. Through the circular use of resources in the smallest possible cycles, we are reducing purchases of new materials and minimizing CO₂ emissions.

Effective resource use

We effectively use resources by cutting material usage through product weight reduction and miniaturization, waste minimization, value enhancement, reduced use of auxiliary materials, and a lower ratio of new materials and products introduced. Our products and manufacturing technologies are designed from the outset to minimize scrap and waste. For unavoidable manufacturing byproducts like scrap and chips, we rely on recycling and enhance value through waste separation.
At Aisin’s Handa electronics plant and Aisin Tohoku, the initial work-in-process (WIP) items used the same resin and metal used in the final products, resulting in metal waste. To address this, we replaced the metal parts with dummy components made from recycled materials for the WIP, thereby reducing wasted metal. We are spreading improvement techniques like this across all of our factories and Group companies, working groupwide to optimize our use of resources.

Minimizing waste

As part of our Group’s effort to convert industrial waste that would otherwise end up as landfill into usable materials, which is achieved by reducing the amount of waste created and improving production process technology, Aisin Takaoka, found that during casting approximately 5% of waste from sand molds was not recyclable and destined for landfill disposal. This non-recyclable landfill waste was sorted, cleaned of foreign matter, and used as a raw material for cement. As a result, recycling rates increased by 80% compared to the previous year.

Reduced water usage

Aisin's business activities rely heavily on natural capital, making the lighteing our environmental impact an essential goal. Aisin has established six principles for water reduction and is working to cut water usage. Focusing particularly on a Stop, Reduce, Substitute, and Recycle model, we implement measures such as ensuring thorough shutdowns when lines are idle to reduce water pressure and flow rates, switching to waterless processes, recycling wastewater, and using rainwater and drainage runoff. To illustrate the “Substitute” perspective, at the Nishio Die Casting Plant, water had been used for cooling when applying release agents to high-temperature molds. However, the adoption of conformal cooling molds enabled efficient internal cooling and eliminated the need for water altogether. Additionally, release agent aerosol was previously recovered and treated using water. However, by employing special filters for processing, waterless recovery is now possible. We are promoting the expansion of such advances across our various factories to reduce water consumption.

Harmony with nature

Aisin promotes activities that promote harmony with nature according to three pillars: watershed conservation, collaboration with local stakeholders, and contribution to ecosystem network development. In FY2025, we expanded our global natural harmony activities beyond the cleanup activities conducted around many manufacturing sites to include tree planting, protection of rare species and removal of invasive species, and river and coastal cleanup. Furthermore, under the “Green & Blue Project,” which aims to plant 800,000 trees by FY2031, we achieved a cumulative total of 359,000 trees planted as of end-FY2025.
We define facilities that comply with all three pillars described above as Aisin Group Nature-Harmonized Factories. In FY2025, we certified one new facility, bringing the total to five. We aim to have certified a total of 10 facilities by FY2031. Moreover, we have begun to educate all employees, including management, to provide a platform for everyone working at Aisin to learn about nature positivity and understand its connection to our business.

Global implementation status of activities aimed at harmonizing with nature

Circle size indicates number of activities

Human resource development

To achieve a consistent level of environmental management across the Group, we have promoted the harmonization of manuals and standards since 2022. Operations directly linked to environmental law violations, accidents, or abnormalities are restricted to company-certified personnel, with mandatory education and on-the-job-training every three years. We will continue to develop expert staff for operations requiring specialized knowledge and skills to prevent environmental law violations and accidents.

Assessment

At Aisin, 90% of our Group companies have obtained and maintain certification for their Environmental Management System (ISO 14001 international standard). However, we have discovered inconsistencies in the implementation of systems, procedures, and management standards across Group companies that pose challenges to the early detection of environmental incidents and aberrations. Therefore, starting in FY2025, we strengthened our control structure by initiating the integration of management reviews and standardizing key themes for internal audits.