Mazda Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Mon, 06 Mar 2023 13:28:31 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.3 Case study: How Mazda promotes sustainability among its suppliers https://sustaincase.com/case-study-how-mazda-promotes-sustainability-among-its-suppliers/ Wed, 28 Sep 2022 06:05:45 +0000 https://ccprowebs.com/new-sustaincase.com/?p=14113 Mazda is a leading global Japanese automaker based in Fuchū, Hiroshima, Japan, with sales in more than 130 countries and regions across the globe. Mazda bases its assessments of business dealings with its suppliers on a comprehensive evaluation that covers not only quality, technical strengths, pricing, delivery time and management approach, but also the corporate compliance structure and CSR initiatives, including environmental protection activities. This case study is based on the 2020 Sustainability Report by Mazda, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ […]

The post Case study: How Mazda promotes sustainability among its suppliers appeared first on SustainCase - Sustainability Magazine.

]]> Mazda is a leading global Japanese automaker based in Fuchū, Hiroshima, Japan, with sales in more than 130 countries and regions across the globe. Mazda bases its assessments of business dealings with its suppliers on a comprehensive evaluation that covers not only quality, technical strengths, pricing, delivery time and management approach, but also the corporate compliance structure and CSR initiatives, including environmental protection activities.

This case study is based on the 2020 Sustainability Report by Mazda, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

In addition to proactively offering opportunities for communication, Mazda provides support in various forms to its suppliers, to ensure that it can promote CSR initiatives and risk management  Tweet This! in close cooperation with them. In order to promote sustainability among its suppliers Mazda took action to:

  • implement the Mazda Supplier CSR Guidelines
  • evaluate suppliers
  • conduct questionnaire surveys of suppliers

What are the material issues the company has identified? 

In its 2020 Sustainability Report Mazda identified a range of material issues, such as indirect economic impacts, effluents and waste, occupational health and safety, emissions, diversity and equal opportunity. Among these, promoting sustainability among its suppliers stands out as a key material issue for Mazda.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Mazda engages with:

To identify and prioritise material topics Mazda engaged with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Customers

 

 

 ·      Establishment of call centres

·      Mazda Official Website and social media

·      Day-to-day sales activities

·      Customer satisfaction surveys

·      Holding events

·      Interviews with customers

·      Meetings with Mazda vehicle owners
Shareholders and investors ·      Website for shareholders and investors

·      Publication of the asset securities report and the quarterly financial reports

·      Publication of the summary of financial results

·      Quarterly presentation of financial results

·      Holding ordinary general meetings of shareholders

·      Publication of the Annual Report

·      Publication of corporate governance reports

·      Presentations and plant tours for investors
Business partners ·      Hotlines linking Mazda with dealerships

·      Day-to-day purchasing activities

·      Supplier communication meetings

·      Conferences with representatives of dealerships

·      Conferences with supplier executives

·      Commendation of outstanding suppliers and dealerships
Employees ·      Labour-Management Council

·      Direct communication with senior management (MBLD)

·      Global Employee Engagement Survey

·      Career meetings

·      Career Challenge System (in-house recruitment and “Free Agent”)

·      Group and optional training

·      Lectures
Global society and local communities

 

 ·      Opening to the public of the Mazda Museum and plant tours

·      Execution of social contribution activities and participation in and promotion of volunteer activities

·      Dialogue through economic and industry organisations

·      Interaction/exchange of views with the local community

·      Response to hearings, information disclosure, etc.

·      Dialogue, cooperation and support through collaboration of industry, academia and government
Next generation people (environment)

 

 ·      Holding and participating in environmental events

·      Setting targets and reporting the results under Mazda Green Plan 2020, midterm environmental plan

What actions were taken by Mazda to promote sustainability among its suppliers?

In its 2020 Sustainability Report Mazda reports that it took the following actions for promoting sustainability among its suppliers:

  • Implementing the Mazda Supplier CSR Guidelines
  • Mazda stipulated the Mazda Supplier CSR Guidelines, based on Mazda’s basic approach on CSR initiatives and with reference to the CSR Guidelines of the Japan Automobile Manufacturers Association. The Guidelines outline CSR areas and items that are closely related to the purchasing area. In the Guidelines, CSR activities are categorised into six areas: Customer Satisfaction (Safety/Quality), Environment, Social Contribution, Respect for People (Human Rights/Work), Compliance, and Information Disclosure. The Guidelines request that all Mazda suppliers comply with them in these areas. The Mazda Green Purchasing Guidelines are separately created to indicate the company’s approach on environmental protection in more detail, and Mazda requests that suppliers observe these guidelines. Mazda also conducts periodic surveys of suppliers to confirm their compliance status.
  • Evaluating suppliers
  • When starting business with a new supplier, Mazda’s related departments coordinate together to confirm the supplier’s quality control system, research & development system, technological capabilities, financial conditions, and CSR initiatives, in order to evaluate whether or not the supplier is compliant with the procurement/selection policies of the Mazda Group. For each long-term supplier, Mazda conducts not only an evaluation based on the quality, cost and delivery time of the procured goods or services, but also a comprehensive evaluation of the entire business including the quality control system, research & development system, technological capabilities, and the status of its CSR initiatives. For the supplier quality control system, Mazda employs a system that enables continuous grasping of issues, evaluation of the situation, and provision of guidance for improvement by receiving daily reports on product quality as well as voluntary audit results. When a supplier is in need of quality improvement, Mazda conducts quality auditing that involves on-site confirmation of actual products at both domestic and overseas sites. Also, Mazda comprehensively evaluates its suppliers every year (296 suppliers in 2019) from the perspectives of quality, pricing, delivery time, etc., in order to build more positive business relationships with them, and passes the results of these evaluations back to the suppliers. Outstanding suppliers are recognised with awards. Mazda has also introduced CSR-based evaluation, giving special awards to suppliers that have made outstanding proposals on weight trimming, which greatly affects environmental performance such as fuel efficiency.
  • Conducting questionnaire surveys of suppliers
  • Mazda has conducted questionnaire surveys of its suppliers since FY March 2014, aiming to understand and evaluate the status of their CSR implementation. The survey results confirm that suppliers have appropriately implemented CSR initiatives and established their own CSR promotion systems. In FY March 2020, a questionnaire survey was carried out about fair business practices, which attracted a lot of social interest. The survey was targeted at 114 suppliers, a major percentage of whose sales consisted of products delivered to Mazda. The survey results showed that progress was made since FY March 2019. After analysing these results, Mazda held individual interviews with companies deemed to be in need of further improvement, in order to offer them cooperation in devising improvement methods. Using these surveys, Mazda checked each supplier’s recognition of the Mazda Supplier CSR Guidelines, and confirmed that all the suppliers surveyed were aware of these guidelines.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

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References:

This case study is based on published information by Mazda, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.mazda.com/globalassets/en/assets/csr/download/2020/2020_all.pdf

Note to Mazda: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Mazda promotes sustainability among its suppliers appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How Mazda reduces logistics emissions https://sustaincase.com/case-study-how-mazda-reduces-logistics-emissions/ Tue, 28 Jan 2020 07:57:12 +0000 https://ccprowebs.com/new-sustaincase.com/?p=10225 Mazda is a leading global automaker, with vehicles sold in more than 130 countries and regions worldwide and manufacturing operations in seven. Viewing environmental protection as an urgent issue for humanity, and the highest priority issue facing automakers, Mazda is working with logistics companies, dealerships, and other automakers throughout Japan to provide customers with the volume they require while reducing CO2 emissions during product shipment through highly efficient logistics, across the entire supply chain. This case study is based on the 2018 Sustainability Report by Mazda published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this […]

The post Case study: How Mazda reduces logistics emissions appeared first on SustainCase - Sustainability Magazine.

]]> Mazda is a leading global automaker, with vehicles sold in more than 130 countries and regions worldwide and manufacturing operations in seven. Viewing environmental protection as an urgent issue for humanity, and the highest priority issue facing automakers, Mazda is working with logistics companies, dealerships, and other automakers throughout Japan to provide customers with the volume they require while reducing CO2 emissions during product shipment through highly efficient logistics, across the entire supply chain.

This case study is based on the 2018 Sustainability Report by Mazda published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Mazda is making efforts to reduce environmental impact throughout the entire product life cycle  Tweet This! and has achieved, in FY March 2018, a 41% reduction in transportation CO2 emissions per ton-kilometre (compared with FY March 1991 levels). In order to reduce logistics emissions Mazda took action to:

  • reform transportation by consolidating logistics centres
  • improve the ratio of modal shift for the transportation of service parts
  • promote “straight” logistics without distribution centres
  • reduce the transportation distance for procured parts for overseas production
  • reduce the transportation distance for repair parts
  • improve transportation efficiency for procured parts

What are the material issues the company has identified?

In its 2018 Sustainability Report Mazda identified a range of material issues, such as indirect economic impacts, effluents and waste, occupational health and safety, diversity and equal opportunity. Among these, reducing logistics emissions stands out as a key material issue for Mazda.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Mazda engages with: 

Stakeholder Group                Method of engagement
Customers

 

 

 ·      Establishment of call centres

·      Mazda Official Website and social media

·      Day-to-day sales activities

·      Customer satisfaction surveys

·      Holding events

·      Interviews with customers

·      Meetings with Mazda vehicle owners
Shareholders and investors ·      Website for shareholders and investors

·      Publication of the asset securities report and the quarterly financial reports

·      Publication of the summary of financial results

·      Quarterly presentation of financial results

·      Publication of shareholder reports

·      Holding ordinary general meetings of shareholders

·      Publication of the Annual Report

·      Publication of corporate governance reports

·      Presentations and plant tours for investors
Business partners ·      Hotlines linking Mazda with dealerships

·      Day-to-day purchasing activities

·      Supplier communication meetings

·      Conferences with representatives of dealerships

·      Conferences with supplier executives

·      Commendation of outstanding suppliers and dealerships
Employees ·      Labour-Management Council

·      Direct communication with senior management (MBLD)

·      Global Employee Engagement Survey

·      Career meetings

·      Career Challenge System (in-house recruitment and “Free Agent”)

·      Group and optional training

·      Lectures
Global society and local communities

 

 ·      Opening to the public of the Mazda Museum and plant tours

·      Execution of social contribution activities and participation in and promotion of volunteer activities

·      Dialogue through economic and industry organisations

·      Interaction/exchange of views with the local community

·      Response to hearings, information disclosure, etc.

·      Dialogue, cooperation and support through collaboration of industry, academia and government
Next generation people (environment)

 

 ·      Holding and participating in environmental events

·      Setting targets and reporting the results under Mazda Green Plan 2020, midterm environmental plan

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Mazda engaged with its stakeholders through a questionnaire survey, obtaining their opinions and evaluations.

What actions were taken by Mazda to reduce logistics emissions?

In its 2018 Sustainability Report Mazda reports that it took the following actions for reducing logistics emissions:

  • Reforming transportation by consolidating logistics centres
  • Mazda consolidated its logistics centres nationwide, with the aim of combining delivery routes with low shipping volumes while ensuring timely shipments. Continuously reviewing the operation of car carriers (domestic vessels) according to their shipping volumes has enabled Mazda to improve loading efficiency. To make more effective use of the domestic vessels on the return journey, collaborative transportation has also been promoted with other companies. In February 2016, Mazda started the operation of a new domestic vessel and in May of the same year existing vessels were modified, resulting in a 30% improvement in transportation capacity. In FY March 2018, Mazda reduced CO2 emissions by around 3,800 tons, by enhancing fuel economy as well as transportation capacity through full-fledged operations of these domestic vessels. Moreover, by loading completed vehicles into ships as directly as possible from their manufacturing sites, Mazda succeeded in curbing around 17 tons of CO2 emissions.
  • Improving the ratio of modal shift for the transportation of service parts
  • Mazda is seeking to improve the rate of modal shift regarding the transportation of service parts and, in May 2016, started to use large returnable containers, originally introduced to transport parts overseas, for domestic transportation. This was aimed at reducing transportation CO2 emissions by improving the load efficiency of JR (JapanRail) In FY March 2018, Mazda promoted the use of JR for domestic transportation, in accordance with the relocation of parts sales companies beginning in FY March 2016. As a result, Mazda increased the rate of transportation by JR from 25% to 45% per transportation volume (ton-kilometre), reducing CO2 emissions by around 400 tons.
  • Promoting “straight” logistics without distribution centres
  • After the manufacture of parts to be exported to overseas assembly plants is completed, they are packaged and loaded into containers at the same location, eliminating the need for shipment between production locations and distribution centres. At present, the coverage of this logistics system is expanding to engines, transmissions and auto body parts produced at the Hiroshima Plant and the Hofu Plant. In FY March 2018, Mazda also expanded the quantity of transmissions vanned at plants to be exported to the Mexico plant.
  • Reducing the transportation distance for procured parts for overseas production
  • Previously, the parts procured in Asia to be used for overseas production were transported via Japan to Mazda’s Mexico plant. In July 2016, this was changed to direct transportation, so that now these parts are transported from existing distribution centres in Thailand and China, leading to a reduced transportation distance. In Japan, in FY March 2017 Mazda started to land parts imported from overseas at the ports close to production sites, in order to reduce the transportation distance between the Hiroshima Plant and Hofu Plant. In FY March 2018, Mazda enlarged the scope of models to which this measure is applied, reducing CO2 emissions by about 8 tons.
  • Reducing the transportation distance for repair parts
  • When Mazda’s Mexico plant started to run, repair parts were transported via North America to Europe, since their transpiration volume was small. Three years after the plant’s startup, however, the volume was on the rise. For this reason, the shipping method was changed to direct transportation to Europe. By reducing the transportation distance through straight logistics, Mazda succeeded in reducing CO2 emissions by approximately 1,400 tons.
  • Improving transportation efficiency for procured parts
  • For domestically produced parts, deployment of the Milk-Run system was completed throughout Japan by FY March 2008. Today, Mazda is introducing the same system in overseas production sites, with deployment in the Mexico plant completed in FY March 2014 and in the transmission plant in Thailand completed in FY March 2016, aiming to reduce CO2 emissions by further promoting efficiency in the purchasing and logistics processes across the entire supply chain. Mazda is continuing its initiatives to optimise its packaging volume for purchasing parts, reflecting the logistics needs at the beginning of the product development process, so as to further improve the load efficiency of trucks and reduce the number of trucks required. In Japan, Mazda introduced the Cloud-based Transportation/Delivery Progress Management Service for Logistics Operators in 2016. This service has been proven effective in reducing delivery time and costs and improving the quality of transportation, as well as in mitigating the burden on drivers, easing traffic congestion, and reducing CO2 emissions through efficient transportation. Mazda plans to apply this service to 600 vehicles in five years after its launch. In FY March 2018, the number of vehicles covered by this service increased to 350 from 220 at its inception.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 302-2 Energy consumption outside of the organization

Disclosure 302-2 Energy consumption outside of the organization corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

FBRH GRI Standards Certified & ISEP recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified & ISEP recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

 

References:

1) This case study is based on published information by Mazda, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Mazda: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Mazda reduces logistics emissions appeared first on SustainCase - Sustainability Magazine.

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