Response to large-scale disasters

Nissan defines a risk as “a barrier to the achievement of a business objective.” We strive to reduce

probability of risks and minimize damage if risks arise by promptly perceiving and assessing them and

examining and implementing necessary measures. We identify risk factors related to business continuity

and make a risk map. As for an individual risk, we implement the PDCA cycle. In this cycle, an executive

in the Operations Committee level forms an organization as an owner in charge and hearing is conducted

with almost all executives including the owner to identify new risk factors and implement measures for

them. This includes lage-scale disaster countermeasures and BCP (business Continuity plan).

At Nissan, we conducted a disaster simulation drill in February, 2011, for the first time after the new

headquarters has moved, and thus we were able to quickly set up the Global Disaster Control Headquarters

within 30 miniuts at the time of Great East Japan Earthquake. The Office responded the situation that

changed day by day – confirming the safety of employees across Japan, grasping the damage status of

offices, evaluating alternatives for those unable to return home, providing support for the affected plants

and sharing information with suppliers.

Almost one year after the Great East Japan Earthquake on March 5, 2012, a disaster simulation drill was

conducted at the Global Headquarters and the Oppama Plant with an affiliate company, JATCO*2. With

the difficulty level of the simulation drill increased year by year, the drill this year included formulating an

evacuation plan taking tsunami damage into consideration, ensuring means of communication,

coordinating with the supply chain, dealing with those who are unable to return home including non-

employees.

Cooperating with Suppliers

Following the earthquake last year, Nissan asked Tier1 suppliers to make BCP. We will also work on

important challenges including clarifying measures for high-risk parts on the assumption of Tokyo-

metropolitan-area, Tokai/Tonankai/Nankai earthquakes.

Risk Management for NISSAN*1

Simulation drill conducted on March 5, 2012 COO Shiga (center) receiving a report at the simulation drill

01Blue Citizenship NISSAN CSR NEWSLETTER

March 2012

Blue Citizenship

NISSAN CSR NEWSLETTER

Although Nissan plants had no direct effect from the massive flooding that affected the industrial

district in Thailand, a number of suppliers’ facilities were flooded and over 3,500 kinds of parts and

materials were thought to be difficult to be obtained. For these items, Nissan’s cross-functional team

consisting of staffs from various divisions facilitated the operations that include consideration of

substitute procurement, quality verification and decision on transportation routes. We were also able to

quickly make a shift to substitute parts because of parts commonization that we have been working

on globally.

We think it is very important to expand the scope of assumptions and conducting risk management on

the assumption of every possible case by conducting drills repeatedly and strengthening cooperation

with suppliers in preparation for unexpected major disasters.

Related Links

*1 As for Nissan’s risk management, refer to the following page:http://www.nissan-global.com/EN/COMPANY/CSR/CORPORATE_GOVERNANCE/

*2 As for the simulation drill on March 5, 2012, refer to the following page:http://reports.nissan-global.com/EN/?p=3351

We will share information on Nissan CSR “Blue Citizenship” through NISSAN CSR NEWSLETTER.

・Community - The Great East Japan Earthquake Continuous support for the affected area -Future issues

* An article on Nissan’s support activities for the affected area scheduled to be posted on this issue will be on the next one.

March 2012

02Blue Citizenship NISSAN CSR NEWSLETTER