Mitsubishi Motors Environment Initiative Program 2010

Mitsubishi Motors Global Environment Initiative Program 2010

— Blueprint for co-existing with our natural environment and for helping to build a sustainable society —

Tokyo, July 14, 2006 — Mitsubishi Motors Corporation (MMC) today announced a new program to guide its ongoing efforts in tackling environmental issues: the Mitsubishi Motors Environment Initiative Program 2010 (EIP 2010). MMC began the new program in the beginning of FY2006, following the end of the FY2002-2005 Environment Sustainability Plan (ESP). The new program will guide MMC in its efforts to achieve harmonious co-existence with the environment and also to contribute to a sustainable society as it works toward corporate revitalization and growth.

Introduced in 2002, ESP charted MMC efforts in tackling environmental issues. Initiatives implemented under the plan have produced many tangible results. These include achieving better fuel economy and lower emissions as a result of revamping the car engine family; fitting continuously variable transmissions (CVT) to more models; reducing volatile organic compound (VOC) levels at its manufacturing facilities through the installation of water-based body painting lines; and meeting the requirements of the Automobile Recycling Law (see attached material).

Launched at the beginning of FY2006, EIP 2010 brings revisions in four major areas, reflecting requirements of both the 2005 Kyoto Protocol and increasingly stringent environmental regulations and legislation in Japan , North America and Europe as well as other developments around the world. The four areas are: Environmental Management, Prevention of Global Warming, Prevention of Environmental Pollution and Recycling and Resource Conservation. EIP 2010 also incorporates new measures relating to resources and energy designed from the viewpoint of reducing dependence on oil.

The main thrust of the Mitsubishi Motors EIP 2010 is outlined below.

1. Environmental management

MMC will expand its integrated global environmental management framework beyond manufacturing facilities to include environmental management systems at more of its non-manufacturing affiliates and subsidiaries in Japan and around the world.

2. Prevention of global warming

MMC will improve fleet fuel economy by achieving compliance with the 2010 Japanese Fuel Consumption Standards in FY2007 and by pushing forward its development of clean diesel engines, high-efficiency transmissions and other core next-generation technologies.

Bringing to the operational stage ethanol and other bio-fuel technologies to meet the diversification of energy sources.

· Pushing forward research and development programs for and the commercialization of Mitsubishi Motors' own Green Plastic line of materials and parts made from plant-based resins.

3. Prevention of environmental pollution

MMC will push ahead with R&D programs to bring next-generation electric vehicles to market. It's not only for preventing environmental pollution, but also preventing global warming and reducing society's dependence of oil.

4. Recycling / Resource Conservation

While continuing to design its products so that they are easier to recycle, MMC will work to make all parts and components re-usable^*. It will also work to reduce shredder residue disposal costs at the same time as raising its shredder residue recycling rate and achieve the required rate before relevant legislation comes into force in 2015.

MMC plans to provide details of the achievements made under, and the challenges encountered by, ESP as well as a detailed description of EIP 2010 in the Mitsubishi Motors Social and Environmental Report 2006 to be published this summer.

Mitsubishi Motors Environmental Initiative Program 2010: Outline

Area of focus

Aim

Specific measures, targets

1.
Environmental
management

Build up global environmental management framework

•	Extend application of environmental management systems to non-production affiliates and subsidiaries in Japan and overseas.
•	Promote acquisition of EA21^*1 environmental management certification at sales companies in Japan .

Encourage suppliers to become more eco-friendly

•	Encourage suppliers to acquire ISO14001 or other environmental management certification.

Promote Design for Environment (DfE) principles throughout organization

•	Construct LCA^*2 data analysis systems at production plants in Japan .
•	Set up LCA data analysis systems to monitor suppliers.

Beef up education / awareness / information disclosure

•	Provide more personnel with environmental education in both parent and consolidated companies.
•	Continue to publish and enhance content of Mitsubishi Motors Social and Environmental Report and other such information on the Web and through other media.

Beef up social and environmental projects

•	Expand school lecture program on MMC's social and environmental activities.

2.
Prevention of
global
warming

Improving automobile fuel economy

•	Achieve solid improvements in fuel economy by introducing low-consumption technologies in new models (all world markets).
•	Achieve compliance with 2010 Japanese Fuel Consumption Standards in all weight classes ahead of legislation (by 2007).

Core next-generation low-consumption technologies

•	Develop and bring next-generation clean diesel engines to market.
•	Develop and bring next-generation high-efficiency transmissions to market.

Diversification of energy sources

•	Develop and bring to market biofuel models.

Plant-based plastics

•	Continue development and commercialization of materials and parts made using Mitsubishi Motors proprietary "Green Plastic" plant-based resin technology

Eco-friendly air conditioning

•	Develop and commercialize air conditioning units that use refrigerant other than HFC134a.

Reduce CO² emissions in production and car transportation activities

•	Production: reduce total CO² emissions by more than 20% against 1990 levels (in Japan ).
•	Logistics: Reduce unit CO² emissions by minimum of 1% annually.

3.
Prevention of
environmental
pollution

Next-generation electric vehicles

•	Push ahead R&D programs to bring a minicar category next-generation electric vehicle to the Japanese market by 2010.

Encourage more widespread use of low-emission vehicles

•	Bring majority of registered vehicles(non-minicar) up to SU-LEV level.

Reduce car interior VOC^*3 levels

•	For new models launched in 2006, MMC will achieve compliance with JAMA voluntary targets ahead of their implementation in April 2007

Management and reduction of hazardous materials in MMC products

•	Continue to improve management of information relating to hazardous substances used in parts and materials in MMC products.
•	Continue to stay ahead of regulations prohibiting the use of hexavalent chromium and other hazardous substances
•	Switch to lead-free soldering

Reduce use hazardous materials at factories

•	Continue to reduce unit VOC emissions to less than 70% of 2000 levels.
•	Continue working to achieve major reductions in emissions and transfers of substances prescribed by the PRTR^*4 (Pollutant Release and Transfer Register) Law.
•	Continue efforts to improve disposal of PCB^*5 waste and optimize management of low-contaminated PCB waste

4.
Recycling /
Resource
Conservation

Automobile Recycling Law

•	Continue working to meet the 70% recovery rate target for automobile shredder residue (ASR) before relevant legislation comes into force in 2015.
•	Continue efforts to promote full recovery of all parts from dismantled vehicles (target for end of FY2009 is 20% full-recovery rate)

Reduce/Reuse/Recycle (3R) technology

•	Make wiring harnesses and electric motors easier to remove.
•	Use more parts made from recycled materials.

3R in context of production process

•	Landfill disposal: Continue to work towards a zero landfill disposal rate at all manufacturing plants.
•	In-process recycling: Maintain recycling rate in excess of 98%.
•	Waste reduction: Continue to reduce quantities of spent foundry sand and metal scrap requiring disposal.
•	Water resources: Continue to reduce water use by more than 5% over 2000 levels.

*1	EA21:	Eco-Action 21 (Environmental management system laid down by the Japanese Ministry of the Environment)
*2	LCA:	Life cycle assessment
*3	VOC:	Volatile organic compounds
*4	PRTR:	Pollutant Release and Transfer Registry Law
*5	PCB:	Polychlorinated biphenyls

Achievements under Mitsubishi Motors ESP (FY2002 to FY2005)

1. Environmental management

· ISO14001 certification : Having acquired ISO14001 certification for all its manufacturing plants in Japan in 1998, MMC also completed acquisition of ISO14001 certification for its research and development units in October 2005. MMC also pushed forward certification acquisition at its major affiliates and subsidiaries in Japan and overseas.

· EA21 certification : Under ESP MMC began to introduce environmental management systems at its sales companies in Japan . This will continue under EIP 2010 and MMC will press ahead with EA21 certification at its sales companies.

· DfE : Under ESP MMC promoted the adoption of Design for the Environment (DfE) principles, setting up assessment processes and indices and also implementing life cycle assessment (LCA) for current models in its lineup. MMC will go further in its adoption of DfE principles with a view to applying them in the development of new models.

2. Prevention of global warming

Fuel economy : Under ESP MMC achieved a fleet average fuel economy of 15.5 km/l for its gasoline cars in FY2005, a 28% improvement over the average for 1990. This improvement stemmed in part from the revamping of the car engine family and from fitting continuously variable transmissions to more models in MMC's lineup.
Japanese 2010 Fuel Economy Standards (for all weight classes of gasoline cars) : After a major review of product planning under the Mitsubishi Motors Revitalization Plan MMC revised its target date for early achievement of the 2010 fuel economy standards from 2005 to 2007 and has incorporated this target in EIP 2010.
Corporate carbon dioxide emissions : Total CO² emissions at MMC's production plants in Japan in 2005 were 26% lower than in 1990 as a result of the introduction of more energy-efficient plant equipment and of switching to different energy sources as laid out in ESP. MMC also met its CO² emissions target in the transportation of finished vehicles.

3. Prevention of environmental pollution

LEV ratings : MMC has continued to introduce models that produce significantly lower emissions than regulatory levels. As a result sales of 3- and 4-star rated low-emission vehicles represented 71% of registered car and 92% of minicar sales in 2005. These figures are up 13% and 21% respectively for FY2004.
Clean-energy sources : MMC is a participant in the Japan Hydrogen & Fuel Cell Demonstration Project (JHFC Project), funded by the Japanese government, for which it has developed the Mitsubishi FCV prototype based on the Mitsubishi Grandis minivan model. MMC has also embarked on a research and development program for a next-generation electric vehicle powered by high energy density lithium-ion batteries.
Product VOC : MMC met JAMA voluntary requirements for vehicle interior VOC levels, due for introduction in April 2007, 15 months early with the "i" minicar launched in January this year. MMC will continue to meet VOC requirements with each new model it launches.

· Factory VOC : MMC introduced water-based body painting lines at the Mizushima Plant in August 2004 as part of its program to reduce shop floor VOC levels and meet its FY2010 target.

4. Recycling / Resource Conservation

· ASR recovery rate : MMC is responding fully to the requirements of the Automobile Recycling Law that came into force in January 2005. In FY2005 MMC achieved an ASR recovery rate of 64.2%, 30% higher than the regulatory level for FY2005 and 50% higher than the level for 2010.

· Factory recycling/waste disposal : MMC continues to meet its targets for the recycling of in-process resources and for the Zero Landfill Waste program at its production plants in Japan .