Performance Analysis of Japanese Electric Vehicle Manufacturers in Environmental, Social, and Governance Using Text Mining and Predictive Methods ^†

Abstract

The value of environmental, social, and governance (ESG) has been increasingly emphasized across various industries, particularly in the automotive sector, where its importance has become especially prominent. In this study, the environmental initiatives of Japanese electric vehicle (EV) manufacturers were evaluated from an ESG perspective. Leading Japanese companies in EV production, such as Toyota, Nissan, and Honda, were included in the analysis. Using text mining techniques on sustainability and CSR reports from the past five years, key environmental keywords were extracted, and word clouds were generated to visualize the trends in each company’s environmental efforts. A correlation analysis was conducted between the frequency of environmental keywords and CO₂ emissions data. Based on past trends in keywords and emissions data, predictive analysis was performed to analyze the potential for future emissions reductions and the strategic direction of each company’s sustainability initiatives.

1. Introduction

This study aims to analyze the position of major Japanese electric vehicle manufacturers, Toyota (Japan), Honda (Japan), and Nissan (Japan), in exploring their environmental sustainability in the environmental, social, and governance (ESG) framework. Automobile producers in Japan were investigated in terms of environmental strategies and management strategies. How ESG enabled sustainable innovation and competitive advantage in the automotive sector was also explored.

An equipment learning-based technique was used to identify ESG-related components [1]. Yoshida researched the ESG activities of agricultural firms [2], while Matsubara researched the relationship between ESG investment and corporate governance [3]. Kurokawa explored the decarbonization efforts of automobile manufacturers [4], and Chen analyzed the ESG performance of the Chinese auto business [5]. Text mining technology was used to evaluate financial status [6,7,8]. CEO information was used as an indicator of the firm’s intention [9,10]. The homogeneity and merging of the environmental performance of enterprises in the holding structure were investigated in Ref. [11]. Li used machine learning to restore worldwide daily CO₂ emissions and investigated the correlation between extreme temperatures and exhaust, stressing the seriousness of climate change [12]. The text mining analysis was conducted on Toyota’s sustainability reports to analyze resource management and circular economy principles.

The findings of the previous studies indicate the necessity of the evaluation of the ESG strategies employed by leading Japanese EV manufacturers. Despite the growing number of research, significant gaps remain regarding the ESG practices of Japanese automotive manufacturers, particularly concerning the correlation between their environmental discourse and measurable environmental outcomes. Given the intensifying competition in the global automotive industry, especially in the EV sector, understanding the environmental strategies of leading EV manufacturers is crucial. Japanese vehicle manufacturers have international influence and market leadership and are key players in this increasingly competitive setting. This research was carried out to clarify how Japanese EV manufacturers pursue environmental initiatives and how these initiatives promote long-term strategic sustainability in market dynamics.

2. Methodology

A hybrid method was adopted to evaluate the ecological sustainability campaigns of Japan’s three EV manufacturers—Toyota, Honda, and Nissan in the ESG framework. The analysis incorporated text mining, keyword frequency analysis, correlation analysis, and predictive modeling. Reports on sustainability, ESG, and social responsibility of the three firms between 2019 and 2023 were used in this study.

The analyzed reports were chosen according to the firm’s environmental strategy, including objectives connected to technological progress in CO₂ emission reduction, resource management, and sustainable practices. To recognize the ecological efforts of each firm up and down, the record from 2019 to 2023 was analyzed.

Data preprocessing was conducted to guarantee the consistency and dependability of text data. In labeling, the text was classified into words or phrases, and then stop words such as “the”, “is”, and “and” were excluded. Stem and itemization techniques were applied to standardize word variants (such as “minimize” and “decrease”) into root forms to improve the accuracy of keyword frequency analysis. A collection of predetermined keyword phrases associated with ecological sustainability, such as “carbon dioxide emissions”, “recycling”, “electric vehicles”, and “sustainability”, was included to recognize the ESG framework.

After preprocessing, natural language processing (NLP) was used for keyword frequency analysis for the recognition and metrology of vital ecological terms. The evaluation was conducted to understand different ecological topics such as modern EV technology, recycling plans, and commitment to reducing CO₂ emissions. Word cloud visualization was used, and the relative importance of the environmental themes was compared. All processing and analysis were performed using Python (version 3.10.6), with NLTK (version 3.8.1), scikit-learn (version 1.3.0), and Word Cloud (version 1.9.2).

Correlation analysis was executed to examine the partnership between the frequency of ecological terms and the actual environmental performance, which was determined by CO₂ emissions. CO₂ emission information was obtained from the reports. Terms such as “low carbon” and “battery” associated with a reduction in CO₂ emissions were used in the analysis. The consistency between the company’s environmental communication and the actual efficiency of emission reduction was also examined.

Predictive modeling was adopted to evaluate the prospective impact of these sustainability steps. Historical keyword frequency data were used as an input variable, and CO₂ emissions were regarded as a dependent variable. A prediction model was developed for each firm to predict future emission trends based on the regularity of specific environmental key phrases. For example, Toyota’s prediction model revealed a solid unfavorable correlation among “battery”, “low carbon”, and CO₂ emissions, leading to a mean squared error (MSE) of 1.34, indicating high prediction precision. In contrast, Honda’s showed a weak and more inconsistent relationship. Terms such as “battery” and “recyclable” were favorably associated with emissions, causing a higher MSE of 1094.4. Nissan showed moderate outcomes. Terms such as “battery” and “low-carbon culture” had a solid unfavorable connection with exhausts, although the prediction accuracy of the overall design was moderate, with an MSE of 68.41.

The evaluation results highlighted the differences in the ecological approaches of Toyota, Honda, and Nissan. Toyota had a well-balanced strategy, with significant spending on electricity and hydrogen technology and different situations in terms of clean energy. On the other hand, Nissan positioned itself as a leader in EV technology, concentrating on reducing carbon through electrification. Honda had conventional and less concentrated resource management and electrification with more modern techniques for sustainability.

By incorporating text mining, correlation analysis, and predictive modeling, an extensive structure was constructed to review how sustainability interacted with the automotive market. The positioning of Toyota, Honda, and Nissan was assessed in the context of ESG performance and the transition of the global vehicle industry.

3. Results

Keyword frequencies were determined from the sustainability report from 2019 to 2023. The results were used to assess the sustainability efforts of Toyota, Honda, and Nissan. Top priorities and financial investments made by each firm corresponding to environmental challenges were identified.

3.1. Toyota’s Sustainability Initiatives

Toyota’s sustainability initiative showed solid resource management and innovation related to low-carbon technology. A word cloud was generated to visualize the frequency and prominence of ecological keywords extracted from Toyota’s ESG reports (Figure 1). “Sustainability” appeared 831 times, indicating the core concept of Toyota. This highlighted Toyota’s dedication to sustainability and environmental governance. Keywords related to resource efficiency, such as “Resources” (297 times) and “Recycling” (235 times), were also important for Toyota. Toyota emphasized waste reduction and the circular economy by promoting the reuse and recycling of materials. This was consistent with Toyota’s goal of minimizing environmental impact across its value chain from production to post-consumer recycling.

The word cloud of Toyota`s Environmental initiatives. Word cloud of ecological keywords from Toyota’s sustainability and ESG reports (2019–2023), generated by the author using Python and Word Cloud (v1.9.2). Data source: Toyota Global website (Figure 1).

In terms of technological innovation, the keyword “EV” appeared 261 times and “battery” appeared 62 times. “Electrification” was mentioned 38 times. Those keywords signified Toyota’s investment in EV technology. In total, 224 mentions of “Hydrogen” suggested that hydrogen fuel cell technology is a key component of Toyota’s strategy and demonstrated the balanced approach to low-emission vehicle technologies. Such diversified investment in electric and hydrogen vehicles indicated that Toyota is preparing for various future scenarios to dominate regional markets or regulatory frameworks with both technologies. Terms related to pollution, such as “pollution” (10 mentions) and “deforestation” (2 mentions), appeared less frequently, which suggested that these issues were under control or not the primary focus of Toyota’s current strategy. The emphasis on resource management and technological innovation aligns with Toyota’s well-publicized carbon neutrality by 2050.

3.2. Honda’s Environmental Strategy

Although Honda’s sustainable development initiatives are consistent, strategic concerns were revealed compared with those of Toyota and Nissan. Honda’s interest in “sustainability” was presented by its appearance (284 mentions) but less than Toyota or Nissan. This low frequency indicated that sustainability might not be integrated into Honda’s business strategy or Honda had alternate strategies to create its environmental initiatives. “Resources” and “recycling” appeared 78 and 57 times, which were less than Toyota and Nissan. This reflected diverse strategic priorities or business concepts. Although resource efficiency remained crucial in sustainability, Honda’s environmental management showed its focus on energy efficiency and emission reduction.

Honda’s commitment to EVs is represented by 117 appearances of “EV”, 20 appearances of “electrification”, and 9 appearances of “batteries”. For Toyota and Nissan, the frequency of these terms was considerably lower, indicating that Honda had broadened the scope out of EV technology. Similarly, “Hydrogen” was mentioned eight times, indicating that hydrogen fuel cell technology plays a relatively minor role in Honda’s strategy, contrary to Toyota’s.

This difference in emphasis indicated that Honda was balancing its investments in EVs and hydrogen vehicles with other priorities, such as resource efficiency. With 78 mentions of “Resources” and 57 mentions of “Recycling”, Honda focused on broader sustainability initiatives, including waste reduction and resource optimization, potentially diverting attention from the rapid expansion of low-emission technologies.

3.3. Nissan’s Environmental Strategy

Nissan’s sustainability reports revealed a strong commitment to sustainability and technological innovation. “Sustainability” appeared 1346 times, which was more than Toyota and Honda. This indicated that Nissan placed a substantial emphasis on its sustainability initiatives. Nissan was positioning itself as an industry leader in environmental responsibility, leveraging its sustainability efforts as a competitive advantage.

Nissan’s focus on resource management was evident with “resources” (957 mentions) and “recycling” (342 mentions). This indicated that Nissan had taken substantial measures to improve resource efficiency and embrace the circular economy, along with its broader commitment to reducing environmental impact across its operations. In terms of technological innovation, Nissan showed 797 mentions of “EV”, which reflected its significant investment in EV technologies. This was supported by 355 mentions of “battery” and 240 mentions of “electrification”, further highlighting Nissan’s strategic focus on electrification to reduce emissions and enhance energy efficiency. Frequent mentions of “Carbon” (589) and “carbon neutral” (496) demonstrated Nissan’s commitment to reducing its carbon footprint and achieving carbon neutrality.

3.4. Comparison

The analysis of the sustainability reports of the three companies allows for their understanding of ecological methods.

3.4.1. Sustainability Emphasis

Nissan has been supporting sustainability, which was confirmed by a considerable mention of “sustainability” in its reports. Toyota affixed value to sustainability with evenly distributed interest in resource management and technical advancement. On the other hand, Honda did not pay much attention to sustainability; instead, it targeted alternative environmental management techniques.

3.4.2. Resource Management and Recycling

Toyota and Nissan showed much interest in resource management and recycling following the global trend of the circular economy. Honda’s interest was lower, which mirrored various tactical priorities such as energy efficiency, emission reduction, and resource optimization.

3.4.3. Technological Focus

Nissan showed “carbon” and “carbon neutrality” frequently to reveal its dedication to carbon neutrality, which was reinforced by its enormous financial investment in EV technology. Although Toyota also focused on carbon emission reduction, Nissan looked for diverse remedies, including hydrogen technology, to achieve carbon neutrality. Honda paid less attention to carbon-related terms, suggesting various strategies or the early stages of carbon reduction initiatives.

3.5. Strategic Positioning Based on ESG Keyword Frequency

The distinctive sustainability strategies of the three firms were reflected in their business goals, market positioning, and investment in technology (

Table 1. Comparative Frequency of Environmental-Related Keywords in Toyota, Honda, and Nissan’s Sustainability Reports.

Keyword	Toyota	Honda	Nissan
Global Warming	19	39	24
Greening	0	0	0
Carbon	104	64	589
Carbon Neutral	80	57	496
Recycling	235	57	342
Logistics GX	0	0	0
Resources	297	78	957
Sustainability	831	284	1346
Logistics Climate Change	0	0	0
Biodiversity	99	62	40
Pollution	10	18	62
Resource Utilization	0	0	13
Hazardous Waste	0	0	0
Recyclable	0	0	4
Collection	89	18	157
Deforestation	2	0	0
Water Pollution	0	1	0
Marine Pollution	0	0	3
EV	261	117	797
EVs	5	3	110
Battery	62	9	355
Hydrogen	224	8	35
New Energy	4	0	2
Energy	372	213	885
Environmental Consideration	7	0	13
Storage Battery	14	1	80
Charging Facilities	0	0	6
Electrification	38	20	240
Carbon Footprint	13	0	40
Low Carbon Society	0	0	7
Low Carbon	29	9	21

). Nissan affixed its value to sustainability, particularly in EVs. The firm positioned itself as a leader in environmental management and low-emission technology. Nissan mentioned “EV” 797 times and “carbon” 589 times, indicating its interest in electrification and carbon emission reduction. Its 496 mentions of “carbon neutrality” confirmed its commitment to carbon neutralization, and Nissan had developed its business models with its goals. This emphasis allowed Nissan to significantly transition to sustainable mobility to meet the growing market demand for low-emission vehicles and stringent regulatory requirements.

Toyota showed well-balanced EV and hydrogen technology. In their sustainability reports, “EV” appeared 261 times, and “hydrogen” was revealed 224 times. Toyota identified the markets and areas of low-emission technologies depending on the regulations and consumer preferences. Toyota’s sustainability method was additionally focused on resource management and recycling, which was shown by 297 mentions of “resources” and 235 mentions of “recycling”. By prioritizing the circular economy, Toyota minimized the environmental impact of the entire product process from production to post-consumption recycling. Toyota reacted to ecological challenges and provided future-oriented innovation and investment.

Although Honda was committed to sustainability, it took a careful and steady step. Honda mentioned “EV” 117 times and “electrification” 20 times, and the terms related to low-emission technology appeared much less apparent. This showed their mindful approach. However, its focus on resource management was validated with 78 mentions of “resources” and 57 mentions of “recycling” Honda focused on resource efficiency and reducing waste. This extra-traditional strategy made Honda gradually improve its sustainability practices rather than technical adjustments. The low frequencies of “carbon” and “carbon neutral” (64 and 57, respectively) showed that the progress was slower than that of the others, though Honda took carbon neutrality measures.

The analysis results highlighted the different priorities of Toyota, Honda, and Nissan established by their objectives, market strategies, and technical choices. Toyota concentrated on electrification and hydrogen with an emphasis on the circular economy in the rapidly changing market. Nissan’s commitment to electrification and carbon neutrality made it a leader in low-emission vehicles. Honda’s extra cautious strategy showed its concentration on resource effectiveness and gradual adaptation to market development. However, its strategies had been executed gradually.

By studying their strategies for environmental governance, a data-driven initiative of an ecological approach provided important information on how each firm managed the strategies. Ecological terms such as “sustainability”, “recycling”, “carbon”, and “EV” presented priorities and dedication to environmental initiatives. Toyota, Honda, and Nissan have taken various measures in environmental strategies. Their corresponding techniques reflected the global automotive industry’s strategies for sustainability. As the market continues to grow, governance issues and consumer preferences are transforming to force firms to readjust their sustainability methods for their future success.

Different environmental management approaches were taken by Toyota, Honda, and Nissan. Toyota used terms such as “resources” (297 mentions) and “recycling” (235 mentions), stressing its interest in the circular economy, while Nissan used the terms “carbon” (589 mentions) and “carbon neutral” (496 mentions), highlighting its pursuit of carbon neutrality. Honda revealed a conventional or targeted sustainable goal, especially in electrification and carbon emission reduction. Therefore, each firm’s approach reflected its goals and investment in technologies and had different trajectories in the automotive market makeover.

3.6. Strategic Implications from CO₂ Emission Predictive Modeling

The relationship between CO₂ emissions and keyword appearances with sustainability showed the influence of each firm’s environmental initiatives on CO₂ emissions (

Table 2. Relationship with CO₂ Emissions.

Company	Relationship with CO2 Emissions	Predictive Model (MSE)
Toyota	Strong negative correlation (Battery, Low Carbon)	1.34
Honda	Weaker, inconsistent correlation (Battery, Recyclable—positive correlation)	1094.4
Nissan	Mixed results, some strong negative correlation (Battery, Low-Carbon Society)	68.41

).

Toyota revealed the relationship between “battery”, “reduced carbon”, and CO₂ emissions. Toyota’s prediction model confirmed the relationship, and the average square mistake (MSE) was 1.34. Toyota’s sustainability initiatives were efficiently advertised for CO₂ emission reduction. Honda showed that such a relationship was weaker, and the terms “battery” and “recyclable” were positively related to CO₂ emissions. The MSE was 1094.4, and other variables influenced Honda’s sustainability initiatives. Although “battery” and “low-carbon society” were strongly correlated with CO₂ emissions, the prediction accuracy of the prediction model was moderate, with an MSE of 68.41. This revealed the potential for improvement in forecasting CO₂ emissions. Toyota’s sustainability report was related to quantifiable CO₂ emission reduction, while Honda and Nissan need to have well-defined environmental strategies.

4. Discussion

The analysis of the sustainability records of Toyota, Honda, and Nissan highlighted various methods for environmental sustainability. Toyota’s focus on EVs and hydrogen technology was closely related to CO₂ emissions reduction, and the MSE was 1.34. Toyota’s sustainability strategy corresponded well with the actual ecological performance, making it a leader in low-emission technology. Honda stressed resource management with a weak connection to CO₂ emissions reduction. The high MSE (1094.4) showed a discrepancy in Honda’s sustainability and outcomes. The positive correlation between “battery” and carbon dioxide emissions shows that functional or market influence was important for the firm. Nissan showed a moderate commitment to EVs and carbon neutrality with an MSE of 68.41. Although Nissan’s initiatives were consistent with CO₂ emissions reduction, its sustainability initiatives needed to be strengthened.

The results of this study showed a regularity of keywords used to assess sustainability initiatives. Information restrictions affected Honda and Nissan and improved forecast precision and sustainability measures with environmental efficiency.

5. Conclusions

We explored the environmental performance of Toyota, Honda, and Nissan by analyzing their sustainability reports from 2019 to 2023. The keyword appearance was analyzed using text mining, correlation analysis, and predictive modeling, and the uniformity of using the keywords was explored. Significant differences were observed in the firm’s reports. Toyota showed a relationship between “battery” and “low-carbon” and CO₂ emissions and its emphasis on environmental measures related to CO₂ emissions reduction. Toyota’s prediction model showed a reduced MSE of 1.34, highlighting Toyota’s sustainability strategy for CO₂ emission reduction. Honda showed a weak and inconsistent connection between its strategies and CO₂ emissions reduction. “Battery” and “recyclable” were positively but weakly related to CO₂ emissions reduction. This suggested the inefficiency of Honda’s environmental initiatives and a discrepancy between the firm’s initiatives and execution. Honda’s prediction model revealed that the MSE was 1094.4, which revealed its environmental strategy was restricted to CO₂ emissions reduction. This highlighted Honda’s need to readjust its sustainability strategy for CO₂ emissions reduction.

Although a strong relationship was observed between “battery”, “low-carbon society”, and CO₂ emissions reduction, the MSE of the prediction model was 68.41, reflecting a moderate relationship. Although Nissan’s sustainability initiatives were consistent with CO₂ emissions reduction, further optimization is needed to boost the impact of its environmental strategy. Nissan’s partial success showed that it was appropriate and required more sustainability to accomplish significant long-lasting exhaust decreases.

The results stressed the effectiveness of keyword frequency analysis in evaluating the firm’s sustainability initiatives, especially CO₂ emissions reduction. This method enables an understanding of the partnership between the firm’s communication efficiency. Toyota showed more concrete and consistent goals for sustainability and CO₂ emissions reduction than Honda and Nissan and presented an example of environmental concerns and measurable results.

An increasing number of firms in the vehicle industry concentrate on the effectiveness of ESG strategies. Internal coordination and external accountability for sustainable information delivery and practical implementation are emphasized in attaining global environmental goals. As the global automotive industry is transitioning to EVs and sustainability-driven products, additional research is needed to explore how they can fulfill stringent ecological policies and customer demands. It is also necessary to explore hydrogen and advanced battery solutions and the corresponding environmental strategy. Such initiatives are required for the sustainability of the automobile industry and the mitigation of climate change.