Be the First to Declare Carbon Neutrality in the Automobile Leasing Industry

Promote Electrification and Accelerate Decarbonization

The automotive industry, which is currently undergoing a major transformation that is said to occur only once in 100 years, is fully committed to an EV strategy toward carbon neutrality.

To achieve carbon neutrality, many issues have to be addressed, such as accelerating infrastructure development and cost control, in addition to the innovations of technological development. We anticipate that it will take a significant amount of time to spread the idea of carbon neutrality and promote it.

SMAS has declared our commitment to carbon neutrality in 2050 in order to progress our EV strategies in collaboration with more partners as a leading company in the automobile leasing industry who support mobility of around 50,000 clients and the fleet of around 1.02 million cars of our Group.Sumitomo Mitsui Auto Service Group is united in its efforts to accelerate the decarbonization of the mobility society in order to promote electrification.

Expand Calculation Scope of GHG Emission to Scope 3

Toward the carbon neutrality in 2050, we have expanded the scope to calculate the GHG emission to include Scope 3 in addition to the emission amount of Scope 1 and 2 since the fiscal year 2022. This expansion of scope is to assess the accurate current status of our company and formulate a challenging and backcasting business plan.

Scope 1 and 2 emissions of SMAS represents only 0.09% of the entire supply chain. But we believe it important to show we take the first initiative of electrification and therefore we are promote electrification of our company cars. We will accelerate the initiative and electrify 50% of the company fleet by 2024 and whole fleet by the fiscal year 2030 to achieve thet carbon neutrality.

Scope 3 emissions is not directly emitted by us. But it accounts for a significant proportion of the entire supply chain. In particular, GHG emissions associated with Category 13: Leased assets (in the downstream), account for more than 60% of the entire GHG emissions. To reduce GHG emissions in our supply chain, we will proactively promote activities to introduce EVs to our clients and to increase their use in auto leasing.

Percentage of GHG emissions (Scope 1,2,3)