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Suzuki Motor Corporation

Suzuki Motor Corporation is a publicly listed auto manufacturer headquartered in Hamamatsu, Japan. In 2019 it had US$34.9 billion in revenue and sales of over 2.8 million vehicles. Suzuki Motor Company achieves most of its vehicle sales in India (52 percent in 2019). Sales in Japan account for a further approximately 25 percent of the total.

Summary

Suzuki Motor Corporation has a performance score of 5.5 out of 20 against a well below 2-degree pathway. This is lower than the company’s 2019 performance score of 7.8, which was assessed using the less ambitious 2-degree pathway.

The company is focussing its decarbonisation efforts on conventional hybrids and internal combustion engine (ICE) vehicles. It has negligible sales for low-carbon vehicles such as fully battery electric, plug-in hybrid, or fuel cell electric vehicles. Suzuki’s overall vehicle in-use emissions performance improvement was slower between 2014 and 2019 than in the previous assessment period (2012-2017). The proportion of larger, heavier vehicles in sales has increased – particularly in India which is the company’s fastest growing sales region. Suzuki’s ongoing incremental improvements in conventional ICE and hybrid vehicle emissions through engine efficiencies, reducing vehicle body weights and improving air and rolling resistance will not be enough for rapid decarbonisation. Suzuki’s sales of low-carbon vehicles must ramp up – and rapidly.

Total score: 5.5/20
Assessment Note: Suzuki received a full ACT assessment in 2019.

Performance module name	Performance module score	Rank (0-30)
Targets	0.6 / 3	#17
Material Investment	0.2 / 0.4	#9
Intangible Investment	1.2 / 2.4	#10
Sold product performance	2.5 / 7	#22
Management	0.4 / 2.2	#18
Supplier	0.3 / 1.2	#10
Client	0.0 / 0.8	#15
Policy Engagement	0.2 / 1.2	#17
Business Model	0.1 / 1.8	#24

Suzuki’s approach to emissions reduction target setting is very poorly aligned to the low carbon transition required for this sector. The company should establish far-reaching emissions reduction targets with interim milestones, for both vehicle in-use and manufacturing emissions. The “Suzuki Environmental Plan 2020″, published in 2017, is due to be updated in 2020. Suzuki’s new low-carbon transition plan should be informed by the well below 2-degree scenario analysis and stress testing, and the results shared publicly, with key performance indicators and Science Based Targets Initiative-validated targets to hold management to account on decarbonisation.

The company should leverage its board-level influence with trade associations, such as the Japan Automobile Manufacturers Association, which has resisted stronger emissions regulation, to instead promote climate positive policy. Suzuki could also better align to the low-carbon economy by expanding its activities beyond manufacture and sales of passenger vehicles, to also include vehicle-as-a-service (such as car sharing and car-pooling) and low-carbon mass transport alternatives.

See results for

2019

More about the company

Headquarters: Japan
Ownership structure: Publicly listed
Revenue (2019): US$34.9 billion
Number of vehicles sold (2019): 2,882,774
Website: https://www.globalsuzuki.com/