MITSUBISHI MOTORS GLOBAL ENVIRONMENTAL POLICIES

The following is a summary of the key environmental issues facing the corporation today and how we plan to address them.

As a corporation we are committed to continual reduction of negative environmental impacts resulting from our operations. We will give priority in the following areas:

Reduction of waste and efficient use of resources by promoting conservation of resources and recycling as appropriate,
Prevention of pollution by restricting emissions of substances harmful to the environment.
Prevention of global warming by reducing emissions of greenhouse gases.
Improvement of environmental management practices as part of ongoing efforts to maintain the environment.
Compliance with environmental regulations and agreements, and protection of the environment by establishing voluntary management targets.

Encouragement of our suppliers and customers both in Australia and other countries to cooperate in working to protect the environment.

POLLUTION PREVENTION

We have introduced several major changes in our manufacturing process which have, among others, abolished CFCs, cut down our water usage, and prevented the risk of contaminants being flushed into stormwater systems. We have made several major changes in our automobile manufacturing process which have directly benefited the environment.

These changes include:

The total abolition of CFCs
The total replacement of 1-1-1 trichloroethane
Introduction of an on-site effluent treatment system which removes heavy metals and adapts pH levels
Monitoring of energy use to determine the scope for improvement
Introduction of energy saving mode to the operation of all spray booths to reduce energy and water use.
Recycling of hot water from steam production to cut down on total water usage
Installation of a regenerative thermal oxidizer to remove 98% of odours and VOCs from the paint shop oven stacks.
Adoption of the refrigerant R134a, which does not contain ozone-depleting chlorine.
Stormceptor installation to prevent the risk of intercepted contaminants being flushed through during storms

MANUFACTURING RECYCLING

Our on-site recycling system, the first of its kind in Australia, stops thousands of tonnes of materials from going into landfills each year. In our initiative to minimise the company's impact on the environment, we have installed the first Australian on-site recycling system.

The facility, which was completed in 1996, was a joint venture between MMAL and Pacific Waste Management. Our three-station conveyor system segregates dry waste into cardboard, plastic and general waste, and uses a magnetic roller for the removal of all ferrous material.

The aims of this facility are three-fold:

To minimise our waste for disposal to landfill
To maximize our return on recyclable materials
To reduce our cost for waste disposal

This system has stopped at least 500 tonnes of cardboard, plastic and wood going to landfill each year.

The majority of the wood from packing crates has been given to Jeffries Garden Soils in Adelaide to be used in compost, and some of it has even been returned to our own garden beds. Today, however, we use fewer wooden crates as the containers are now increasingly made of collapsible steel and are re-used internally or sold for re-use. The steel off-cuts are baled and sent back to our Lonsdale plant where they are recycled through our grey iron foundry.

All non-ferrous material - such as copper, brass and aluminium - is sold to scrap metal dealers for recycling.

We have also initiated a reusable cardboard box program for parts shipments through which the large, heavy-duty shipping boxes can be returned and reused for anywhere up to 10 additional trips. Once deemed unusable, this cardboard, along with plastic materials, is recycled and much of our plastic finds its way into resin outdoor furniture.

VEHICLE RECYCLING

Currently, up to 90% of the parts that make up our vehicles can be recycled, and our engineers are continually striving for ways to reuse more of these materials.

When designing new cars, our engineers plan for the future by thinking of ways to reuse the materials that make up a vehicle when it reaches the end of its service life. Between 75% and 90% of the total weight of our vehicles can currently be recycled.

We plan years ahead by making cars more suitable for future recycling. For example, plastic parts are increasingly being made of easily recyclable plastic and are being installed in ways that make them easier to remove and identify.

LEAD-FREE PAINT SYSTEM

Our paint process is now entirely lead-free, which simplifies our waste treatment and recycling as well as protecting the environment.

In the year 2000 we removed all lead from our electrocoat primer material. Since our primer tank holds almost a quarter of a million litres of paint, it took a year to fully change-over the tank. This made MMAL the first Australian car plant to introduce the lead-free material when the conversion was completed at the beginning of February 2002. This is a very important step as it makes our paint process entirely lead-free, simplifies our waste treatment process and recycling of painted parts, and protects the environment.

PREVENTING GLOBAL WARMING

At Mitsubishi Motors, we understand the movement to break away from fossil fuels. That’s why we’re developing a range of innovative systems designed to ensure our vehicles run better and cleaner.

Next-generation Clean Diesel Engines:
The excellent fuel efficiency of diesel engines means they improve fuel consumption by 20-30% compared to petrol engines.

Exhaust gasses can be a problem for diesel engines, which is why MMC is promoting the development of new, clean, diesel engine technology. These engines will aim to produce the same level of emissions generated by petrol engines while using less fuel.
The new clean diesel engine already meets the standards imposed by EURO5, Europe’s next-generation emissions regulations, and the next step is to market the engine in North America and Japan. MMC will continue to aim for top output and fuel efficiency in diesel engines.

Development of Bio-ethanol Fuel-compatible Vehicles:
Bio-ethanol fuel, which is produced from plants that absorb CO2 in the atmosphere as they grow, has been designated as a zero-emission or ‘carbon-neutral’ fuel by the Kyoto Protocol-based method of calculating carbon dioxide emissions.

Mitsubishi Motors is developing flexible fuel vehicles (FFVs) that can run on petrol, bio-ethanol, and fuels that combine the two. In 2007, we launched our first FFVs into the Brazilian market.

The FFV system achieves optimal fuel combustion by estimating the ratio of bio-ethanol in the fuel based on the output of an exhaust gas density sensor fitted in the exhaust system. As a result, the engine can handle petrol-ethanol mixes with proportions of ethanol from 0% to 100% while achieving performance and exhaust emissions on par with petrol vehicles.

Development of the Twin Clutch SST - A Next-generation High-efficiency Transmission
The Twin Clutch Sports Shift Transmission is a high-efficiency transmission developed by MMC. It combines the sportiness and fuel efficiency of a manual transmission with the convenience of an automatic. Mitsubishi plans to fit the Twin Clutch SST to new high-performance sports sedans.

Improving Petrol Engine Efficiency
MMC has promoted innovations in our passenger car petrol engine line-up since 2004. We aim to pair our common design concepts with features such as high performance, low fuel consumption, lower exhaust emissions, and lighter, more compact engines. In 2006, we launched the 3.0L MIVEC (Mitsubishi Innovative Valve timing Electronic Control system) engine in the new Outlander.

This new engine series delivers a high level of performance, including top-class maximum power output and maximum torque, through the MIVEC system. It is also paired with an aluminium cylinder block to make it lighter and more fuel-efficient than conventional engines.

Reduction in Power Consumption of Automotive Air Conditioning
MMC understands that reducing the power consumed by automotive air conditioning helps to improve fuel efficiency and reduce CO2 emissions. The new Power-saving Automotive Air Conditioning Unit that we have developed in conjunction with Mitsubishi Heavy Industries won the US Environmental Protection Agency Climate Protection Award in 2007 for achieving a reduction in power usage.

Green Plastic

MMC is in the process of developing a plant-based resin with broad practical applications. As it is a carbon-neutral material, it not only preserves petroleum resources, but also reduced CO2 emissions. We are currently exploring its uses in producing car interior components.

REGENERATION

As the concerns about global climate change increase, MMC has become involved in protecting and rehabilitating areas of vegetation around the world. We are currently working on projects in Japan, the United States and Australia.

Pajero Forest
The Pajero Forest covers over three hectares of mountain woodlands in Japan. MMC has launched an initiative to conserve and cultivate this area for at least seven years, dating from June 2007. We will be joining the local community in tree-planting and other activities to ensure that the forest continues to flourish.

On June 14, 2007, Mitsubishi held opened the Pajero Forest and Local Mountain Restoration Initiative with a ceremony, in which Mitsubishi Motors President Osamu Masuko and local officials planted trees to mark the occasion.

North American Prairie Restoration Project
Since 1999, Mitsubishi Motors North America Inc. has promoted prairie restoration activities through participation in the Illinois Department of Natural Resources’ Prairie Restoration Project. Involving the cultivation of warm season wild grasses and 26 types of wildflowers, the project covers 3.9 acres around the MMNA factory, and has resulted in natural prairie in the surrounding region being substantially restored.

Environmental Conservation Activities in Australia
In 2006, Mitsubishi Motors Australia Ltd. in conjunction with the Australian Carbon Biosequestration Initiative held an event to plant enough trees to cover the carbon emissions generated by the Mitsubishi cars owned by the South Australian State Government. MMAL workers and volunteers planted over 7000 trees, resulting in 22 hectares of land becoming forest.