Basic stance and policy

Guided by the AISIN Group's management philosophy of “Inspiring Movement, Creating Tomorrow,” the Company pursues lasting harmony between people and the planet and addresses environmental and social issues. By drawing on the broad product portfolio we have built, which spans automotive applications, construction, greening, and energy, along with our leading technologies and services, we help address global environmental issues and continue to bring prosperity to the Earth of the future. To this end, each employee confronts environmental issues such as climate change and resource depletion head-on so as to pass a sustainable environment on to future generations. Our goal is a society in harmony with nature, where everyone can live with peace of mind.

Resource circulation system to meet our goal of harmonizing with nature and contributing to a sustainable future

Resource circulation system to meet our goal of harmonizing with nature and contributing to a sustainable future

Promotion Framework

We have established two promotional bodies: the Environmental Committee, which deliberates on basic policies for the environment as a whole and oversees the proper execution and progress of related operations, and the CN/CE Promotion Subcommittee, which examines and drives strategies for carbon neutrality (CN), the circular economy (CE), and harmony with nature. Both bodies are chaired by the head of the Carbon Neutral & Environment Promotion Center, and each meets twice a year. Following the policies decided by the Sustainability Conference, each deliberates on and examines matters within its own role. Important matters discussed by the Environmental Committee are submitted and reported to the Board of Directors and, where necessary, reflected in business strategies and plans.

Environmental Committee

Frequency Twice a year in principle
Chair Head of the Carbon Neutral & Environment Promotion Center
Secretariat CN & Environment Promotion Department
Participants President & Executive Officer, Executive Officers, Center/Division heads, Presidents of major Group companies, etc.
Main agenda
  • Deliberating on and rolling out basic policies for the environment as a whole
  • Ensuring proper execution and progress management of environmental operations as a whole

CN/CE Promotion Subcommittee

Frequency Twice a year in principle
Chair Head of the Carbon Neutral & Environment Promotion Center
Secretariat CN & Environment Promotion Department
Participants Center/Division heads, responsible officers of major Group companies, etc.
Main agenda Examining and driving strategies for carbon neutrality, the circular economy, and harmony with nature

Strategy

We established the AISIN Consolidated Environmental Action Plan in 1993 as one of our environmental initiatives and have worked to five-year action plans under the Plan ever since.
Starting in FY2027, we redefined the scope, levels, and items we evaluate against our vision for the future and formulated a new, more challenging plan, the Aisin Environmental Action Plan 2031, which targets FY2031 and spans four domains: carbon neutrality, the circular economy, harmony with nature, and foundations. Carbon neutrality and the circular economy, which bear directly on sustainability management, are positioned as materiality KGIs. The entire AISIN Group is working on them as one entity so that every employee considers and acts on them.

Related materiality issues

Materiality issue Goals (KGI) Indicators (KPI) FY2026 results FY2031 target values
Priority issues Path to realization
Harmony with nature
and contribution to a
sustainable future
Reducing environmental
impact across the
entire value chain
[Carbon neutrality]
FY2051: achieve CN
FY2036: achieve CN for
CO2 from manufacturing
Scope 1 & 2 emissions
(Compared to FY2020)
1.74 million t-CO2e
(37.4% decrease)
46.2% decrease
Scope 3 emissions
(Compared to FY2020)
22.35 million t-CO2e
(3.8% decrease)
27.5% decrease
[Circular economy]
Achieve zero-emission
factories by FY2041
(landfill waste ≤1%
Optimizing resource utilization ―*1 10% efficiency improvement*2
Waste minimization
Waste emissions
(Compared to FY2020)
―*1 11% decrease

Performance evaluation to begin in FY2027

Optimizing resource utilization: the sum of the reduction rate in waste discharged and the rate of increase in waste circulated as a resource within the Group

Aisin Environmental Action Plan 2031

Field Indicator (KPI) Initiatives
Carbon
neutrality
Scope 1 & 2 emissions:
46.2% decrease compared
to FY2020
  • Minimizing energy consumption through power and heat optimization and establishing technologies for recycling and substituting energy inputs
    • Saving energy through higher equipment efficiency, operational optimization, and elimination of waste and losses
    • Demonstration and feasibility assessment of clean energy technologies (bio-briquette coke, perovskite solar cells, CO2 recycling, etc.)
    • Promoting renewable energy
Scope 3 emissions:
27.5% decrease compared
to FY2020
  • Reducing GHG emissions across the value chain through initiatives in key categories
    • Expanding our electrified product lineup and improving product performance (high efficiency, compactness, low weight, etc.)
    • Promoting the use of low-CO2 materials (recycled materials, green aluminum, etc.)
    • Supporting suppliers' CN activities by sharing best practices through GENCHI GENBUTSU (Go and See approach)
    • Improving loading efficiency and optimizing logistics routes in collaboration with suppliers and transporters
Circular
economy
Minimization of resource input
Optimizing resource utilization
10% efficiency improvement
  • Enhancing resource efficiency via full use of materials within each process and factory
    • Pursuing yield improvement (minimizing scrap, reducing defect rates, etc.)
    • Promoting intra-group resource circulation leveraging our Raw materials business
    • Promoting reuse and recycling of products collected from the market
Waste minimization
Waste emissions:
11% decrease compared
to FY2020
  • Minimizing waste volume by
    enhancing the value of
    waste materials
    • Promoting added value and resource recovery through decomposition and sorting
    • Employing advanced treatment technologies to shift from landfill disposal
    • Setting policies tailored to national and regional conditions and translating them into action
Harmony
with
nature
Promoting biodiversity conservation
through water resource
circulation and conservation
1) Minimization of water usage 2) Contribution to climate
change mitigation through
forest conservation activities
Number of trees planted:
800,000 in total
3) Continued implementation of
regional collaboration activities
  • Minimizing water usage
    • Reducing consumption by eliminating waste and losses at production and utility sites
    • Promoting recycling technologies
  • Advancing regional
    biodiversity conservation
    • Global tree planting, afforestation, and management of forests and Satoyama (traditional rural landscape where people live in balance with nature)
    • Biodiversity conservation on company premises and in the surrounding watershed
Foundation Number of serious
environmental incidents:
0
  • Preventing environmental incident
    across the supply chain
    through stronger environmental management
    • Thoroughly identifying potential risks and implementing improvements through the promulgation of unified AISIN Group standards
    • Enhancing environmental personnel performance through the unified certification of ISO 14001 certification
    • Thoroughly managing chemical substances in line with legal and regulatory trends in each country and region

Key initiatives

Carbon neutrality initiatives

We target carbon neutrality by FY2051 on two fronts: production and products. With regard to the production process, we are cutting energy use and switching to clean energy such as renewables through rigorous energy-saving activities and by developing innovative production technologies. On the product side, we are further evolving our products for electrified vehicles and promoting the spread of energy and resource circulation systems, to create new value by fusing mobility and energy technologies.

Scope 1 & 2

AISIN's target is carbon neutrality for CO2 from manufacturing by FY2036. Reducing Scope 1 & 2 emissions lowers our environmental impact and, by cutting energy costs, also strengthens our corporate fundamentals. We are therefore cutting energy use through rigorous energy-saving activities and by introducing innovative production technologies. For the CO2 emissions we cannot eliminate, we are switching step-by-step to renewable energy sources, including solar and wind power, to reduce Scope 2 emissions. As to Scope 1 emissions, we are moving ahead with the electrification of non-electric energy, developing clean energy technologies (bio-briquette coke, CO2 recycling, etc.), and converting to new fuels such as e-methane* to cut CO2 emissions further. In FY2026, we reduced emissions by 37.4% compared to FY2020, keeping us on track for our FY2031 target.

e-methane: a synthetic fuel made by combining CO2 with hydrogen derived from renewables and other energy sources. Because it is made from captured CO2, burning it does not substantially increase atmospheric CO2 versus the baseline.

Scope 1 & 2 reduction scenario

Scope 1 & 2 reduction scenario

Saving energy through higher equipment efficiency, optimized operations, and thorough elimination of waste and losses

AISIN treats productivity gains, such as reductions in defect rates and output increases as an integrated effort with rigorous energy conservation. Alongside our Six Energy-Saving Principles (stop, turn off, recover, switch, fix, and lower), we have focused on the energy consumed to make each individual product and eliminated waste and losses thoroughly. Through our CN Base Camp and CN Caravan programs, which instruct employees in the fundamentals of carbon neutrality, we have also helped employees practice energy saving on their own initiative and raised awareness. In FY2026, we continued to eliminate waste and losses and focus on the global rollout of methodology refinements from Japan. AISIN Group companies will exchange views on improvement examples and challenges by practicing “GENCHI GENBUTSU GENNIN” at one another’s sites (go, see, and verify firsthand) at one another's sites, exchanging views on improvement cases and issues to build up further energy-saving measures.

Key examples for FY2026

Energy-saving activities through improved air usage and IT solutions (AISIN)

By shortening air-blow times and optimizing air consumption, we cut CO2 emissions across the whole line by about 112 t-CO2 a year. Using IT to detect whether products are present and available for washing, we also optimized cleaning-machine operation and cut about 73 t-CO2 a year. Each of these initiatives received the Energy Conservation Center Chairman's Award in the energy-saving case category of the FY2026 Energy Conservation Grand Prize, hosted by the Energy Conservation Center.

Finding energy-saving measures and spreading them horizontally through small-group activities categorized by production method (AISIN)

To move beyond conventional plant-by-plant energy-saving activities, we ran small-group exercises organized along a production-method axis and spanning all sites. Small teams were formed for each manufacturing method. Bringing together experts in each production-method from every plant to discuss ideas, we found new energy-saving measures and accelerated their spread to all sites through the production-method subcommittees, review bodies in which the relevant departments participate for each manufacturing method. This initiative also received the Energy Conservation Center Chairman's Award in the energy-saving case category of the FY2026 Energy Conservation Grand Prize, hosted by the Energy Conservation Center.

Winning the Energy Conservation Grand Prize
Winning the Energy Conservation Grand Prize

Utilizing the heat-storage capacity of discarded materials (Art Metal MFG)

Art Metal MFG reduced CO2 emissions from its molten-aluminum holding furnaces, a major CO2 source, by using waste alumina. After confirming that waste alumina retains alumina's heat-storage capacity, the company lined the holding furnaces with it, which limited drops in furnace temperature and reduced LPG consumption. Because it makes use of alumina the AISIN Group previously would have discarded, the approach also lowers purchasing costs.

Hearth of the holding furnace
Hearth of the holding furnace

Joint development of an innovative cleaning agent (AISIN)

In the cleaning process—a proportionally high-CO2-emitting step within AISIN's overall transmission manufacturing process—Kao Corporation and AISIN jointly developed the agent Heatless anti-rust cleaner, which offers three functional benefits: high cleaning power at room temperature, high drying performance without hot air, and high rust prevention that eliminates the need for rust-proofing treatment. As a result, CO2 emissions per cleaning machine fell by 73%, and less rust-prevention material is needed. Extending the service life of the cleaning solution more than threefold also holds water use to less than one-third and eases the wastewater-treatment load. This initiative received the Minister of the Environment Award at the 52nd Environment Awards, presented by the National Institute for Environmental Studies and Nikkan Kogyo Shimbun, Ltd. We are rolling this solution out to overseas sites and across AISIN Group companies.

Promoting the adoption of renewable energy

To reduce Scope 2 emissions, AISIN is switching to renewable energy in stages, with thorough energy saving as the prerequisite. We set out to install solar power at every feasible site in Japan and overseas by FY2026 and have largely accomplished this. In Europe in particular, given local energy sector conditions and characteristics, we adopted renewable energy ahead of other regions. We are continuing to adopt renewable energy through diverse means suited to each region.

Key examples for FY2026

Offsite solar PPA for local production and local consumption using idle land (Aisin Keikinzoku)

Aisin Keikinzoku introduced the AISIN Group's first offsite solar PPA* in Japan to use idle land for local production and consumption, thereby contributing to Scope 2 emissions reductions. The company's head-office plant has introduced onsite solar PPAs in stages since 2023 and, with this addition, its renewable energy capacity reaches about 7 MW. The plant uses about 7.4 GWh of renewable energy a year, cutting CO2 emissions by about 3,700 t-CO2.

PPA: Power Purchase Agreement, an individual contract to purchase electricity.

Achieving a 100% renewable energy adoption rate (Aisin Tohoku)

In April 2026, Aisin Tohoku signed a power supply agreement with the Tohoku Automotive Industry Green Energy Promotion Association (TAGA), an electricity retailer. Renewable energy supplies commenced under this agreement, and the electricity the company uses in its business is now 100% renewable. Through TAGA, the Company uses renewable energy supplied by the Iwate Prefectural Enterprise Bureau and supplies surplus electricity from its solar generation to automotive companies in Tohoku, thus helping to build a regional circular economy. Funds earned from selling surplus electricity are applied toward regional social issues, such as biodiversity and seagrass-bed restoration.

Achieving 100% renewable energy adoption at all production sites in the European region

The European region has set carbon neutrality by 2040 as its long-term goal, ahead of AISIN's overall worldwide target. As a first step, the Company has been switching to renewable energy, including solar and wind power, on the way toward 100% renewable energy at all European production sites. In April 2025, Aisin Otomotiv Parçaları San. Tic. A.Ş. (Istanbul), a European regional production subsidiary based in Türkiye, built a solar power plant in its home country. When this plant began generating power, renewable energy reached 100% at all production sites in the European region, including Türkiye.

AISIN TURKIYE SOLAR POWER PLANT
AISIN TURKIYE SOLAR POWER PLANT

Demonstrating and assessing the feasibility of clean energy technologies (bio-briquette coke, perovskite solar cells, CO2 recycling, etc.) for adoption

To reduce Scope 1 emissions, AISIN is developing clean energy technologies and converting to new fuels while pursuing energy saving and equipment electrification. Specifically, we are methodically developing and demonstrating bio-briquette coke, perovskite solar cells, CO2 recycling, and other technologies, with future commercialization and deployment in scope. By commercializing these technologies, we are spreading them through society as a means to help cut CO2 emissions at the societal level.

Key examples for FY2026

Mass production of bio-briquette coke commences (Aisin Takaoka)

Aisin Takaoka develops Bio-M-Coke®, a bio-briquette coke that can fully replace the coal coke used to melt iron in cupola furnaces. The Company runs demonstration tests on its own production line, replacing 100% of the coke with bio-briquette coke, confirming the viability of stable operation. By 2030, the Company plans to replace all the fuel it uses with bio-briquette coke. At the same time, it is running external demonstration tests at foundries in Japan. The Company has also established a joint venture, PT. ATP Bio Indonesia (Indonesia), to handle production and sales, with selling to commence in April 2026. Use is planned not only at the company but also at other companies that operate cupola furnaces, to help reduce CO2 emissions across the whole industry.

PT. ATP Bio Indonesia
PT. ATP Bio Indonesia
Bio-briquette coke Bio-M-Coke®
Bio-briquette coke (Bio-M-Coke®)

Launch of a perovskite solar cell demonstration in public–private collaboration (AISIN)

To reduce Scope 2 emissions and expand AISIN's energy value chain business, we began demonstrating perovskite solar cells and are scaling up the demo. Perovskite solar cells are lighter, more flexible, and thinner than conventional solar cells. They can therefore be installed where silicon solar cells cannot be easily placed, such as building walls and roofs with limited load-bearing capacity. AISIN is promoting these demonstrations in partnership with government and industry to bring perovskite solar cells into practical use early.

Perovskite solar cell
Perovskite solar cell

Japan's first joint demonstration of regional CO2-recycling e-methane supply begins (AISIN)

With TOHO GAS Co., Ltd. and DENSO CORPORATION, we began Japan's first joint demonstration of regional CO2-recycling e-methane supply (“regional CO2 recycling”). With regional CO2 recycling, the party that emits the CO2 is the same party that uses the e-methane produced from it. Because the CO2 circulates within the region, traceability is easy to establish. This enables the early presentation of e-methane solutions, including under overseas frameworks and rules in the EU and elsewhere. It can be marketed as energy rated at zero CO2 emissions at the point of use, which should establish its environmental value sooner.

Scaling up the demonstration of CO2 separation and capture technology (AISIN)

At its Nishio Die-Casting Plant, Aisin developed a compact size, high-efficiency unit that separates and captures all the CO2 emitted from one melting furnace (3 t-CO2/day) and began demonstration tests. Evaluation of this system began in 2023, and the current demonstration validates its performance at a larger scale. CO2 from the melting furnace is dissolved into solution within an absorption tower and then released in a stripping tower, where it is recovered as high-purity CO2. The captured CO2 is designated for use as methane fuel and as a raw input for concrete, among other applications, and contributes to resource circulation. The unit's compact size and its integrated heat-recovery system, which uses the melting furnace's waste heat as the heat source for CO2 capture, lower the energy needed to run it.

Scope 3

Scope 3 emissions account for about 90% of AISIN's total CO2 output, and their reduction is essential to reaching carbon neutrality by FY2051. Across the product life cycle from resource extraction to disposal, we are concentrating our reductions on categories 1, 4, 11, and 12, which emit the most heavily. Specifically, we are reducing CO2 emissions in the consumer use phase by improving product performance and, across the entire supply chain, we are adopting more low-CO2 materials, supporting suppliers' carbon-neutrality efforts, and improving load efficiency and optimizing routes together with suppliers and transporters. These efforts combine to reduce our environmental impact and strengthen the company's competitiveness.

Expanding our electrified product lineup and improving product performance (higher efficiency, smaller size, lower weight, etc.)

We are bringing to market a broad lineup of products offering high efficiency and compact size and includes electric drive units, Cooperative Regenerative Brake System, thermal management systems, and aerodynamic devices. Our energy value chain business contributes to reducing CO2 emissions across society.

eAxle
eAxle
ENE-FARM
ENE-FARM

We also work from the earliest stages of development to strengthen product competitiveness and reduce CO2 emissions across the entire supply chain (Scope 3). As part of this, we incorporate Life Cycle Assessment* into our product design process. Using a calculation tool based on our internal assessment guidelines, we quantify the environmental impact of each product. We also train employees to deepen their understanding and sharpen their calculation skills. By considering low-CO2 materials and smaller, lighter products from the earliest stages of development, we reduce CO2 emissions across the entire product lifecycle. In recognition of these efforts, the China Automotive Technology and Research Center Co., Ltd. (CATARC) gave us its most favorable low-carbon supplier rating in March 2025.

Life Cycle Assessment: a quantitative evaluation of the environmental impact of a product or service across its entire life cycle.

Supporting suppliers' CN activities by sharing best practices on-site through a GENCHI GENBUTSU (go and see) approach

About 40% of Scope 3 emissions are traceable to raw materials and parts, so reducing them requires working with suppliers. Under the slogan “Leave no one behind,” Aisin works continuously on three pillars: (1) CN Open Campus, where participants learn the fundamentals of carbon neutrality and other companies' initiatives; (2) sector-specific working groups, in which Aisin plant operators and suppliers learn from one another; and (3) CN Activity Support, where they put what they have learned into practice onsite. We are now extending this support globally in a manner tailored to local supplier relationships and other regional characteristics to reduce CO2 emissions across the entire supply chain.

Key examples for FY2026

Co-hosting a CN workshop (AISIN)

The automotive industry has an expansive supply chain with an enormous number of suppliers, so automakers and parts makers need to promote carbon neutrality together. To this end, four companies—Toyota Motor Corporation, SANGO CO., LTD., Aisin, and TOYOTA BOSHOKU CORPORATION (in order of participation)—have been examining how to disseminate our carbon-neutrality initiatives throughout the entire supply chain. In connection with this, three of the companies jointly held a CN workshop (sponsored by Toyota Motor Corporation) that was attended by about 140 people from 77 suppliers and three government agencies. The workshop gave each company a chance to share and recognize its challenges and priorities in CN, encouraging action across the entire supply network. Participation by senior management also deepened understanding of carbon neutrality and fostered a sense of ownership.

Supporting 12 suppliers at an overseas site (AISIN ASIA PACIFIC)

AISIN ASIA PACIFIC (Thailand), together with Aisin Group companies, is helping 12 suppliers that sell a high proportion of their output to the company reduce their CO2 emissions. We are working out support methods suited to each company's challenges, have begun site visits and training for each, and are extending the program across the entire supply chain.

Circular economy initiatives

Resource circulation strengthens our corporate fundamentals by reducing our environmental impact through the efficient use of finite resources and the production of less waste. This practice cuts raw material costs and waste treatment expenses. We are therefore using resources effectively and minimizing waste to achieve zero-emission factories by FY2041. For every resource involved in our business, including raw materials, auxiliary materials, production equipment, molds, jigs, and packaging, we are making materials recyclable and recycling them through disassembly and sorting and through eco-design (environmentally conscious design). Because there are limits to what we can do on our own, we are also adopting more recycled materials through industry–government–academia collaboration and Toyota Group task forces. These initiatives reduce not only Scope 3 but also Scope 1 & 2 emissions, and we treat them as key measures for achieving carbon neutrality.

Circular resource usage diagram

Circular resource usage diagram

Optimizing resource utilization based on using materials fully within each process and plant

To make the circular economy a reality, we use resources effectively and consistently from design through production, guided by the root policy of using materials fully in the context of each process and plant. At the design stage, we develop products that generate fewer offcuts and less waste, make them smaller and lighter to use less material, and design them for easy disassembly and reuse. At the production stage, we extend the life of molds, jigs, and cutting tools and use them maximally for their intended applications. We also recycle the offcuts and cutting chips generated in manufacturing. We are continuing to minimize resource input and maximize reuse through both product design and production technology.

Key examples for FY2026

Optimizing inspection standards (Aisin)

Since FY2024, Aisin has run a special program to optimize the quality and performance of electrified products, identifying over-quality and rationalizing inspection standards. As a result, we cut the number of parts being scrapped by more than half. We standardized the approach so that other sites and products can apply it, and we are extending it from our plants in Japan to all Aisin Group companies and overseas sites.

Production of remanufactured products through the remanufacturing business (Awquis Japan, AISIN EUROPE, AISIN Aftermarket & Service of America)

We disassemble and remanufacture automatic transmissions recovered from the market in Japan, Europe, and North America. By supplying customers with quality-assured remanufactured products, we make effective use of resources. In FY2026, we remanufactured about 25,000 units (Aisin Group total).

Disassembling a product
Disassembling a product

Minimizing waste emissions by increasing the value of waste

Aisin's basic approach is not just to reduce waste but to increase its value as a resource. Starting with measures at the source, we raise the value of landfill and industrial waste through disassembly and sorting, including by developing treatment technologies.

Key examples for FY2026

Upcycling and commercializing waste (CVTEC)

CVTEC is upcycling sludge from automotive-parts manufacturing into plant pots. The Company noticed that barrel-polishing sludge, which had been handled as industrial waste, has a high affinity with ceramic materials. It now supplies the sludge to Marushun Ceramic Ltd., a local company in Aichi Prefecture, a region known for its pottery, which converts it into plant pots. This transforms waste that previously imposed treatment costs into a new, valuable commodity while also reducing waste and revitalizing local industry.

Plant pots upcycled from sludge
Plant pots upcycled from sludge

Initiatives for harmony with nature

Aisin's business depends heavily upon natural capital, so we must minimize our impact on nature by reducing our environmental load. Given our particularly close relationship with water resources, Aisin has established its Six Water Reduction Principles and is reducing water use in its business to minimize its dependence on natural capital. Under the Aisin Group Biodiversity Guidelines, and as part of revealing the value of our host regions, we also conserve biodiversity on our premises and in nearby watersheds together with local communities on an ongoing basis. Our goal is to maximize harmony with nature.

Key examples for FY2026

Okazaki East Plant biotope Yukyu-no-Mori granted the status of Nationally Certified Sustainably Managed Natural Site (Aisin)

At Yukyu-no-Mori biotope, which was conceived as a community-rooted habitat, we conserve rare native species and maintain and improve their habitats. Besides using the biotope to train new employees, we hold events there for employees and their families, including wildlife observation sessions and hands-on invasive-species removal. We thus embed biodiversity conservation into the fabric of the community. In recognition of this work, the site was accorded Nationally Certified Sustainably Managed Natural Site* status in December 2025.

Nationally Certified Sustainably Managed Natural Site: an area where biodiversity is conserved through private-sector and other initiatives. Certification is conferred by the Minister of the Environment, the Minister of Agriculture, Forestry and Fisheries, and the Minister of Land, Infrastructure, Transport and Tourism.

Employee training at Yukyu-no-Mori
Employee training at Yukyu-no-Mori
A biotope conservation event
A biotope conservation event
Nationally Certified Sustainably Managed Natural Site certification
Nationally Certified Sustainably Managed Natural Site certification

Conservation of rare wild plants in the Aso Manganji Nature Reserve recognized as a Nationally Certified Sustainably Managed Natural Site (Aisin Kyushu)

In the Aso Manganji Reserve, a groundwater source area on Mt. Aso, we work with local communities to protect the rare wild plant Ogura-sennou (Silene kiusiana). This protects the local ecosystem and gives us an opportunity to learn about and reflect on how ecosystems and our business are connected. In recognition of this work, the site was deemed a Nationally Certified Sustainably Managed Natural Site in March 2026.

Conservation activities
Conservation activities
The rare wild plant Ogura-sennou
The rare wild plant Ogura-sennou
Nationally Certified Sustainably Managed Natural Site accreditation
Nationally Certified Sustainably Managed Natural Site accreditation

Promoting the “Green & Blue Project” (Aisin)

Other initiatives

Key examples for FY2026

Applying automotive-parts manufacturing technology to agriculture (Art Metal MFG)

Prompted by management and regional challenges, Art Metal MFG began growing cold-climate coffee seedlings in greenhouses on idle land. To meet winter heating demand, it applied the sensing, quality-control, and data-analysis technologies it had built up in automotive-parts manufacturing to agriculture, installing a ground-source heat pump and an automatic control system for the greenhouse environment. This greatly reduced CO2 emissions and labor compared with heating by conventional fossil-fuel boilers. For this contribution to climate action, the initiative received the Minister of the Environment Award for Climate Change Action, organized by the Ministry of the Environment, in December 2025, the Company's first such award.

Greenhouse for coffee cultivation
Greenhouse for coffee cultivation
Coffee cherries being cultivated
Coffee cherries being cultivated
Winning the Minister of the Environment Award for Climate Change Action
Winning the Minister of the Environment Award for Climate Change Action

Foundational activities

Environmental management

To ensure that environmental initiatives take hold at every site, Aisin shares its AISIN Group Environmental Policy across the Group. In 2008, the Company launched its EMS* study group, which meets four times a year and focuses on three domains: standardization, human resource development, and assessment. Through monthly meetings with environmental managers at our six overseas headquarters, the Company ensures compliance with environmental laws and prevent major environmental incidents.

EMS: Environmental Management System

Standardization

To identify environmental risks such as accidents, pollution, and legal violations, Aisin has established its Aisin Global Environmental Standards (AGES). The Company prevents and minimizes environmental risks in seven domains: wastewater, air, waste, noise and vibration, soil and groundwater, odor, and management of co-located companies. To prevent environmental incidents from recurring, in FY2026 Aisin focused on buried piping, one of the aging-related risks affecting our physical plant and environmental protection facilities. The Company took such measures as moving piping above ground and adding redundancy. We also extended our wastewater measures to Aisin Group companies in Japan and overseas and began corrective action at the roughly 30% of sites that did not meet the standards. We plan to complete revisions to our operating procedures by FY2029 and to wrap up corrective actions that require equipment modifications by FY2031.

EMS enhancement cycle

EMS enhancement cycle

Human resource development

To bring environmental management to the same standard across the entire AISIN Group, we have been unifying manuals and standards since FY2023. Operations directly linked to environmental law violations, accidents, or abnormalities are restricted to company-certified personnel, with mandatory education and on-the-job-training every three years. We will continue to develop expert staff for operations requiring specialized knowledge and skills to prevent environmental law violations and accidents. After a near-miss involving waste treatment in FY2026, we made sure all employees in Aisin's production engineering divisions completed in-house training. As a result, no further near-misses originated with these divisions. In FY2027, we will extend this initiative to other divisions and Aisin Group companies to enhance our management of legal and compliance.

Assessment

At Aisin, 91% of consolidated companies have obtained and maintain certification of their environmental management systems under the international standard ISO 14001. However, the systems, procedures, and management standards had taken root unevenly across the companies, which made it hard to detect environmental incidents and abnormalities early. In FY2025, we began unifying management reviews and the priority themes of internal audits based on results across the whole Aisin Group, and by the end of FY2026, 44% of companies had joined the unified program, as planned. To further upgrade our EMS effort, we will also bring the auditors at each company up to a common standard.