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Summary
Initially the top scoring East Asian automaker of the Leaderboard, Nissan has continued its descent down the rankings this year. Last year it was surpassed by Hyundai and, in this year’s edition, Nissan was one of the worst performers: only improving its score against 7 indicators across the entire scorecard. This has caused the company to fall from 11th to 13th place in the rankings, being overtaken by Kia and Geely.
Notably, Nissan scored just 4% in the battery sustainability subsection, the second lowest score of all 18 automakers. The company scores marginally better in the steel and aluminum subsections, scoring 11% for each, primarily due to making some limited progress on low-carbon steel and aluminum procurement. The company should build on this progress by setting ambitious targets to decarbonize its steel and aluminum supply chains, and then taking concrete actions to make progress towards these targets. Joining multi-stakeholder initiatives like ResponsibleSteel, SteelZero and the First Movers’ Coalition would help Nissan to achieve these goals.
Nissan’s performance on human rights was inexcusably poor, improving its score against just two indicators across all four subsections. The company has actually regressed in certain areas, causing its score to be downgraded from an already very low level of achievement. This has caused the company to backslide from 11th to 15th place in the human rights ranking: it is now the fourth worst performing company on human rights overall, after SAIC, GAC, and BYD.
Key Findings
- Has now added an interim 2030 target to its 2050 carbon neutrality commitment but lacks disaggregated emissions reductions targets for its steel, aluminium and battery supply chains.
- Together with GAC, was the only company evaluated that did not improve its score at all this year across the steel, aluminum and batteries subsections.
- One of the industry laggards in the battery sustainability subsections, scoring 0 across all of the indicators on battery recycling. The company should enhance its own efforts on closed-loop battery recycling, following the common scheme established by the Japan Automobile Manufacturers Association (JAMA).
- Extremely poor level of disclosure on human rights due diligence processes and systems, with regressions in certain areas, such as in relation to its risk identification methodology. Has also not disclosed any evidence of having conducted a salient human rights risk assessment since 2017.
- Has established a responsible minerals sourcing policy that applies to all minerals and metals from CAHRAs, but does not translate this commitment into actual requirements on suppliers, and demonstrates very little in the way of actual operationalisation along the supply chain.
- Continues an abysmal record on Indigenous Peoples’ rights, with no action whatsoever to move its performance forward from 0%.
- Commits to the ILO Declaration on Fundamental Principles and Rights at Work and has a collective agreement with workers at headquarter level, but fails on every other workers’ rights indicator.
Score Breakdown
Fossil-Free & Environmentally Sustainable Supply Chains
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Steel
Aluminum
Batteries
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Human Rights & Responsible Resourcing
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Supply Chain News & Progress
Latest on Nissan
Supply chain transformation is a risk management imperative and opportunity for a competitive edge. Leading brands are already securing a first-mover advantage and leveraging their power to transform legacy supply chains into a force for good. The revolution is underway.
Illegal rare earth mining in Myanmar linked to supply chain of major automakers
A new report by Global Witness has documented the harmful impacts of illegal rare earth mining in Myanmar, linked to the supply chains of major automakers – including Volkswagen, Toyota, Tesla, Nissan, Ford and Hyundai.
Nissan to transition to low-CO₂ emission aluminium by 2030
Nissan says it will use low CO2 emission aluminium parts made from green or recycled aluminium in new and current models from fiscal year 2024 onward and aims to complete the full transition to such parts by 2030.
Aluminium accounts for approximately 10% of vehicle weight. By using low CO2 emission aluminium, Nissan says it aims to take a significant step towards achieving carbon neutrality.
It wants to achieve carbon neutrality in the entire lifecycle of its vehicles by 2050.
Green aluminium is produced using non-fossil fuel-derived electricity and can reduce CO2 emissions during production by approximately 50%.
Additionally, recycled aluminium can reduce CO2 emissions by approximately 95%. Nissan has been purchasing low CO2 emission aluminium sheets for vehicle panels produced in Japan from Kobe Steel, Ltd. and UACJ Corporation.
Nissan to use “low-CO₂” steel and green aluminum
From January 2023, Nissan announced plans to use “low-CO₂” steel and green aluminum from Kobe Steel. Kobenable steel claims to significantly reduces CO2 emissions in the blast furnace process and is “the first time Kobenable Steel will be used in mass-produced vehicles.” They state that the aluminum will be made with solar power only and use recycled aluminum.
Allegations of forced labor
The Business and Human Rights Resource Centre has documented allegations of forced labor in Nissan’s supply chains.
Our Vision
01 — Equitably
Respecting and advancing the rights of Indigenous Peoples, workers, and local communities throughout the supply chain.
02 — Sustainably
Preserving and restoring environmental health and biodiversity across supply chains, while reducing primary resource demand through efficient resource use and increased recycled content.
03 — Fossil-free
100% electric and made with a fossil fuel-free supply chain.