Nissan Motor Company

By far the majority of the vehicles sold by Nissan are internal combustion engine (ICE) vehicles. This situation has hardly changed over the last three years and the fuel economy of the company’s ICE vehicles worsened by 14% over the same period. The company’s ‘Nissan Next strategy’ plans to focus sales efforts on the USA, a region with a history of preference for larger vehicles, and on China, where preferences are also shifting towards more prestigious vehicles. Nissan must do more to increase the share of low-carbon vehicles in its sales (just 1.8% in 2020) to avoid a widening gap between its in-use emissions performance and its 1.5°C pathway.

Nissan has set 2030 and 2050 absolute targets for manufacturing emissions reductions (by 30% and 100% respectively from 2018) but these are not ambitious enough to meet its 1.5°C pathway. This requires a significant ramp up in action in the 2020s. The target to reduce in-use emissions intensity by 32.5% by 2030 (from 2018) is also not ambitious enough and, with increasing in-use emissions intensity in recent years, the company is not on track to achieve it. The company should set science-based targets in line with its 1.5°C pathway and set milestone targets, at intervals of not more than 5 years, to maintain focus on near term action.

Nissan should be more transparent on its research and development (R&D) spending. Automotive manufacturers rely heavily on R&D to drive down the costs of low-carbon technologies and increase the market penetration of such technologies. Nissan needs to demonstrate to its stakeholders that it is financially committed to speeding up its low-carbon transition – especially as low-carbon vehicle sales only contributed 1.8% of the sales mix in 2020.

Nissan has set 2030 targets for 30% reduction in manufacturing emissions and 32.5% reduction in in-use emissions intensity, both from 2018. It aims for carbon neutrality in 2050 and 100% electrification in the early 2030s. It has not set a phase-out date for internal combustion engine vehicles.

Nissan will expand its current range of electric vehicles and promote their use through improving infrastructure. It will shift to more renewables for its facilities, expand battery re-use and focus R&D spending on electrification, autonomous systems and connectivity.

Nissan is using internal carbon pricing to test investments. It is collaborating with suppliers to reduce emissions via programs to light weight vehicle components and optimise battery pack designs.

Between 2018 and 2020, the in-use emissions intensity of sold vehicles increased by 11% to 110 grams CO2 per passenger kilometre. The share of low-carbon vehicles in the sales mix remained the same at 1.8%. Manufacturing emissions intensity reduced by 9% from 2015.

Nissan has not committed to phase out internal combustion engines (ICE), it has no programs to preferentially promote low-carbon vehicle sales over ICE vehicles, and emissions reduction success is not a primary driver of executive remuneration. Little detail is shared on transition plan specifics.