Nissan Motor

No leading practices were identified for this company.

Nissan has developed a comprehensive transition plan informed by climate scenario analysis, including the 1.5℃ scenario from the Intergovernmental Panel on Climate Change (IPCC) Special Report. The plan incorporates a carbon price aligned with a low-carbon pathway and integrates it into the financial scenarios used for key business decisions.

No leading practices were identified for this company.

No leading practices were identified for this company.

Nissan commits to reduce its absolute scope 1 and 2 greenhouse gas (GHG) emissions by 52% by 2030 from the 2018 baseline. The company also commits to reduce scope 3 CO2 emissions by achieving a 32.5% reduction in emissions per kilometer driven by its products and a 30% reduction in total emissions over the entire lifecycle of vehicles sold, both using 2018 as the baseline year, though the former target remains unassessed due to insufficient data. All three targets fall short of the ambition needed for a 1.5°C pathway, with the scope 3 emissions target being particularly challenging as the company’s in-use emissions intensity rose in 2023, leading the company off track. While Nissan states that it strives to achieve carbon neutrality in the vehicle life cycle and all business activities by 2050, the company should develop a long-term target that aligns with its 1.5°C pathway. It should also set intermediate targets at gaps of no more than five years to incentivise near-term action on its longer-term decarbonisation goals.

While Nissan has implemented board-level oversight of climate change, its board does not have significant expertise in the low-carbon transition. Furthermore, although executives, including the CEO, are eligible for incentives related to managing climate change issues, there are no specific GHG emissions reduction key performance indicators directly tied to executive compensation. Despite a comprehensive transition plan, there is no clear evidence that Nissan is actively developing business models for a low-carbon future with associated growth plans. The company targets a 60% electrified model mix by 2030 but has not set a goal to fully phase out ICE vehicle sales.

In 2023, Nissan invested USD 4.3 billion in R&D, with only about 10% directed towards low-carbon technologies. The company does not disclose its total or low-carbon capital expenditure (CapEx) or its low-carbon revenue. Nissan’s sales of low-carbon vehicles have also not seen an increase. In 2021, only 3% of Nissan’s sales consisted of low-carbon vehicles and this remained the same in 2023. The company needs to substantially step up its ambition to align with its 1.5°C pathway, which requires 67% of automobile sales in 2030 to consist of low-carbon vehicles

Nissan’s Green Purchasing Guideline for suppliers includes various decarbonisation action levers. However, there is an opportunity for the company to strengthen this strategy by incorporating quantified, science-based GHG emissions reduction targets and requiring suppliers to report their GHG emissions. Similarly, the company can expand the scope of its client engagement strategy and include quantified GHG emissions reduction targets. Nissan publicly publishes a process to review its memberships in associations, alliances, coalitions and think tanks. However, there is no evidence of the company having a publicly available action plan addressing its response when these membership associations are found to take a climate-negative stance.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.  No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups. 

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.  No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers. 

The company commits to respecting human rights and the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. The company also does not disclose the proportion of its direct workforce covered by collective bargaining agreements or its required working hours. It does disclose the proportion of its total direct operations workforce for each employee category by gender. However, no relevant disclosure was found of additional indicators of workforce diversity. The company has a commitment towards gender equality and women’s empowerment. 

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in each relevant jurisdiction. The company does not have a policy prohibiting bribery and corruption, but it includes anti-bribery and anti-corruption clauses in its contracts with business relationships. No company policies or commitments related to lobbying were found in the public domain.