Environmental Strategy

Global EV Trends and the Current Situation in Japan

In April 2025, I had the opportunity to visit the Shanghai Motor Show and witnessed firsthand the reality of EV development in China. In terms of price, features, driving range, and even design, Chinese EVs have surpassed those made in Japan. Nearly every vehicle running through central Shanghai was an EV; there, electric vehicles have already become the norm. In contrast, what is the situation in Japan today? There remain many challenges to overcome, such as the development of charging infrastructure, and the pace of EV adoption is slower compared to the rest of the world. Of course, if we look globally, the speed has also been affected by US tariff policies, but even so, the movement toward electrification is unstoppable. We are confident that our direction and initiatives toward EVs are correct, and even if the path ahead is challenging, it is vital that we continue to move forward and take the lead within the industry.

Shifting from the Demonstration Phase to the Implementation Phase

In the previous fiscal year, to advance our EV and carbon-neutral strategies, we held SMAS e-PARK events across seven prefectures in Japan, expanding our business collaborations with local governments. Going forward, we will shift gears from the demonstration phase, where customers see and experience EVs firsthand, into the implementation phase. Until now, our focus has primarily been on encouraging customers to adopt EVs, viewing them as individual points of activity. From here on, we aim to connect those points into a continuous line, positioning EVs as one of the key means toward achieving carbon neutrality, and integrating this perspective into our own corporate initiatives as well.

Contributing to the Development of the Automotive Society and the Improvement of the Global Environment

Our goal is not merely to promote the widespread use of EVs. As mentioned earlier, EVs are a means to an end; the essence of our mission lies in our management philosophy: to contribute to the development of the automotive society and the improvement of the global environment. It is vital that each of us embodies this spirit, working to address our customers’ management challenges in the field of mobility and linking those efforts to broader social contribution, while proposing optimal solutions that meet their needs.

SMAS as Synonymous with EVs

In my daily work in sales, I often hear customers say things like, “It’s still too early for EVs,” or “We should wait and see.” On the other hand, I have never once heard anyone say, “I’m not interested in doing good things for the environment.” In other words, many customers are interested in EVs, but simply don’t know where to begin. There may be no perfect answer, but by understanding each customer’s situation and addressing their management challenges one by one, without limiting ourselves strictly to leasing, we can guide them toward effective solutions. At times, it may be necessary to adopt what is best suited to the customer’s needs not all at once, but rather in a partial optimization manner. To that end, in fiscal 2025 we launched SMAS Green-Lab., a new training and human resource development program designed to enhance climate change literacy and promote contributions to a decarbonized society. By improving employees’ literacy, we aim to shift from simple sales to true consulting. Through continued cooperation both inside and outside the Company, we will keep exploring ways to overcome barriers to EV adoption. I firmly believe that the day is not far off when SMAS will be recognized as the leading company synonymous with EVs.

Overview and Objectives of SMAS Green-Lab.

SMAS Green-Lab. is a training and human resource development program designed with the following three main objectives.

• 1. Acquiring Foundational Knowledge on Climate Change and Decarbonization
  This program supports systematic learning about the mechanisms of climate change, international frameworks such as the Paris Agreement, policies and systems related to decarbonization, and topics such as EVs.

• 2. Enhancing Proposal Capabilities from a Decarbonization Perspective
  Participants develop the ability to propose optimal combinations of the Company’s diverse services, including EVs, mobility services, RMS (Risk Management Solutions), and BPO (Business Process Outsourcing), from the standpoint of decarbonization, with the goal of maximizing customer value.
  The program goes beyond the acquisition of knowledge, emphasizing a practical perspective on how to connect the global challenge of climate change to the Company’s business activities.

• 3. Supporting the Acquisition of the Ministry of the Environment–Certified Decarbonization Advisor Qualification
  As part of our concrete initiatives for human resource development, the Company actively promotes the acquisition of the Decarbonization Advisor qualification certified by Japan’s Ministry of the Environment. This certification serves as proof that employees possess recognized expertise and practical skills accredited by an external institution, enabling them to play a highly trusted role in future customer-facing proposals and inter-company collaborations.
  In support of certification acquisition, we will establish a comprehensive and ongoing support system, including developing internal learning support frameworks, financial assistance for examination fees, and post-certification support to facilitate practical application in the workplace.

Future Outlook

SMAS Green-Lab. is a program designed not only for the Sales Unit but also with expansion to the Head Office, Service Unit, and the entire company in mind. Going forward, as a cross-departmental initiative, we aim to raise climate change literacy across the organization. Through this, each employee will develop a mindset that incorporates sustainability into their own work, enhancing the Company’s overall environmental responsiveness.