Subaru Corporation

Subaru has yet to sell a low-carbon vehicle and has released its first plug-in hybrid electric model in California, US, only in 2019. Other low-emissions vehicles are not to be on market until 2021. Subaru is at risk of not achieving the increasingly pressing targets to reduce manufacturing emissions in the short term, as set for the low-carbon pathway.

Subaru does not appear to be expanding its business model beyond passenger vehicle manufacturing. Though it has been involved in some collaborative efforts with other auto manufacturers to produce hybrid vehicles, Subaru’s focus remains on internal combustion engine vehicles. Unless the company adapts its business model and product portfolio, it risks being left behind in a low-carbon economy.

Low-carbon transition plan

Subaru has not disclosed a low-carbon transition plan for the period following 2020. Moreover, while Subaru has climate oversight at the highest level of management, it does not appear to have integrated its climate change mitigation efforts into a comprehensive strategy. Subaru could better align itself with the low-carbon pathway by setting robust and long-term commitments and embedding them into a publicly available low-carbon transition plan. This plan would also help Subaru communicate its climate resilience to the investor community.

Subaru is committed to reducing its manufacturing emissions until 2020 and to selling conventional hybrid vehicles mainly in Japan, the US and Europe.

At present, Subaru is not on track with the pathway towards a low-carbon economy. Without any low-carbon vehicle sales, Subaru risks remaining an electrification laggard and falling further behind.

Subaru share of sales from internal combustion engine vehicles is 100 percent. The company is not currently engaging in any alternative business activities that would permit it to succeed in a low-carbon economy. Subaru also does not support any policy initiatives that would help decarbonise the automotive industry.

Subaru was previously one of the largest emitters of carbon dioxide among auto manufacturers globally in regard to its emissions per vehicle produced. While Subaru has steadily reduced its emissions per vehicle over the last five years, it has yet to manufacture or market any low-carbon advanced hybrid, battery electric or hydrogen fuel cell electric vehicles.