Sustainability Briefing
MITSUBISHI ELECTRIC CORPORATIONMarch 26, 2024

Contents

1.

Vision for Sustainability
Kei Uruma

Representative Executive Officer, President & CEO

2.

Initiatives for Addressing Social Challenges
Satoshi Takeda

Executive Officer
CSO (In charge of Corporate Strategic Planning, IR and SR, Operations of Associated Companies, Three Key Reforms, and Sustainability)
CDO (In charge of DX, Vice President, Business Innovation)2

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Vision for Sustainability

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PurposeWe, the Mitsubishi Electric Group, will contributeto the realization of a vibrant and sustainable
society through continuous technologicalinnovation and ceaseless creativity.

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M i t s u b i s h i E l e c t r i c G r o u p St r i ve s f o r “ Tr a d e - O n ( m u t u a l b e n e f i t s ) ”
Innovate through Circular Digital-Engineering and grow our business while enriching society and the environment
Realize sustainability together with every employee by striving towards “Trade-On (mutual benefits)”

Realize sustainability

SocietyandEnvironment“Trade-On (mutual benefits)”

Business

Circular Digital-Engineering5F o u n d a t i o n E n h a n c e m e n t a n d Va l u e C r e a t i o n

1. Vision for Sustainability

Value creation by Circular Digital-Engineering is critical to addressing the five key social challenges
Enhance the foundations in all aspects including digital and support continuous value creation
Five key social challenges

Carbon neutrality
Decarbonize society

Circular economy
Build a circular society

Safety/Security
Resilient society

Inclusion

Society that values diversity

Well-being
Vibrant lives

Customers
Integrated Solutions
Systems
Components

Data

Value creation

Create new value with data throughCircular Digital-Engineering

Mitsubishi ElectricGroup
Digital SpaceFoundation enhancement

Strengthen the business foundations of
the Mitsubishi Electric Group6

Re a l i z a t i o n of a G r e e n S o c i e t y

1. Vision for Sustainability

Mid- to long-term targets toward carbon neutrality

FY2031

Aim for net zero greenhouse gas

emissions from factories and offices

Accelerate initiatives to reduce greenhouse gas
emissions by leveraging in-house technology

Factories and offices (Scope1 and 2 *1)

1,046kt-CO2
FY2023 (Actual)

Net zeroemissions in the entire value chain

Contribute to reduction of emissions from society
through technological innovation

Entire value chain (Scope1, 2, 3*1)
 In-house technology
Energy management
system and heat pumpetc.
 Energy conservationof facilities

1,000kt-CO 2

Aim for net zero greenhouse gas

FY2051adoption of clean energy Reduction of emissions
by products
Reduction of power
consumption by products
and offering energy saving& generating solutions
etc.

200,000kt-CO 2

 Clean energy
procurement

FY2031 (Target) Contribution to increased

183,473kt-CO2
FY2023 (Actual)

Net zero Creating new technologies
Carbon recycle, etc.

FY2051 (Target)*1 Scope1: Direct emissions by companies (fuel combustion and industrial processes); Scope2: Indirect emissions from the use of electricity, heat, and steam supplied by other companies;
Scope3: Indirect emissions other than Scope 1 and 2 (emissions from other companies related to the company’s activities)

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Re a l i z a t i o n of a G r e e n S o c i e t y

1. Vision for Sustainability

Invest in green-related sector *1 with an eye on future business opportunities
Reduce greenhouse gas emissions from factories and offices
By the FY2031, Aim to power all factories and offices
with 100% clean energy*2

 Technology development and capital investment for carbon neutrality,
such as an energy management system, energy conservation,
electrification, and review of the manufacturing process

Create and expand businesses that contribute to the realizationof a green society
Seven years between FY2025-FY2031

Green-related R&D investment: Approx. ¥900.0 bn *3
 R&D for carbon recycling and circular use of materials andproducts
 Energy management that contributes to an expanded adoption ofrenewable energy
 R&D for energy conservation & electrification of equipment andnext-generation power semiconductors*4

Electrification of production facilities(Cleaning process, etc.)

In-house test for using hydrogen in the
manufacturing process(Using hydrogen to power brazing burners, etc.)

 Expand adoption of renewable energy

Sites that have achieved 100% green energy by FY2023

Japan

9 sites

Overseas 10 sites*1 Carbon neutrality and circular economy *2 Introduction of renewable energy facilities, procurement of 100% non-fossil fuel power, etc. *3 Estimated figures calculated based on past achievements and growth rates*4 SiC (silicon carbide), Ga2O3 (gallium oxide), etc.

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Re a l i z a t i o n of a G r e e n S o c i e t y

1. Vision for Sustainability

External evaluations and initiatives regarding carbon neutrality
Received top-ratings from CDP*1

Climate and Water“A List”

Supplier Engagement Leader

Sixth time in each category

Fourth consecutive selection andseventh time

Obtained updated certification from SBT Initiative*2

Obtained updated certification with new targets that aim to
keep the average global temperature rise due to climatechange within 1.5°C compared with pre-industrial levels.

*1 An international NGO that surveys, evaluates, and discloses environmental initiatives of corporations and governments*2 An international initiative led by the UN Global Compact(UNGC), World Wide Fund For Nature (WWF), the CDP and World Resources Institute (WRI)

9Recent Activities on Sustainability: Enhancement of Management Structure

1. Vision for Sustainability

Establish the Sustainability Innovation Group for comprehensive and strategic promotion of value creation andfoundation enhancement to strengthen sustainability management (April 2024)
Establishment of the Sustainability Innovation Group
Creation ofsustainability
businesses
Strategy planning

Information
disclosure/
Dialogue

Sustainability
Innovation Group
Philanthropic
activities

Value creation

Create new businesses that
address social challenges[Example: GIST *1 project]
Bring together members from businessdivisions across the company and work on
business creation from a global andsustainability perspective

Foundation enhancement

DE&I/
Human rights
Environment

Strengthen business foundation to enable
sustainable growth[Example: Formulation and promotion of the midterm Environmental Plan 2025]

Formulate specific plans based on the Environmental
Sustainability Vision 2050*2. To achieve carbon neutrality, circular
economy, and nature positivity*3, accelerate the reduction ofenvironmental impact in the entire value chain*1 GIST: Global Initiative for Sustainable Technology*2 The Mitsubishi Electric Group’s long-term environmental vision toward 2050 *3 To stop the loss of and restore biodiversity

10Recent Activities on Sustainability: Industry-Government-Academia Collaboration

1. Vision for Sustainability

To solve complex and diversifying social challenges, enhance organizational collaboration that involves not only
joint research based on specific technology development themes but also comprehensive theme-setting
The University of Tokyo

Waseda University

Established the “Future Design
Committee by Mitsubishi Electricand the University of Tokyo”

Concluded a basic agreement on acomprehensive collaboration for therealization of a sustainable society

Design an ecosystem for achieving a circular
economy and identify challenges and solutions fortheir realization

Explore joint research themes in five social challengeareas, and advance activities for producing R&D
results that contribute to society

Tokyo Institute of Technology

National Institute of Advanced Industrial Science and Technology (AIST)

Established the “Mitsubishi Electric
Energy & Carbon Management
Collaborative Research Hub”

Established the “Mitsubishi Electric-AIST
Human-Centric System Design
Collaboration Laboratory”

Conduct R&D on technologies related to green
transformation (GX), and explore and create newtechnologies based on insights into the future andanalysis of technology trends

Conduct R&D on CPS*1 building technologies andsystem designs that integrate CPS and connect
industries*1 CPS: Cyber-Physical Systems

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2

Initiatives for Addressing Social Challenges

12Mitsubishi Electric Group Contributes to Every Corner of Society

2. Initiatives for Addressing Social Challenges

Address social challenges through our businesses by leveraging the Mitsubishi Electric Group’s strengths
in a wide range of fields, from home to space

EnergyIT
Building
Space &
Defense

Semiconductors

Public Utility

A/C*1 &
Refrigeration

Transportation
House
Appliances

Automotive
EquipmentFA*1 A/C : Air Conditioning13

Addressing Social Challenges Through Our Businesses

2. Initiatives for Addressing Social Challenges

Contribute to green transformation of society across all fields by leveraging the Mitsubishi Electric Group’s
strengths

Green society
Accelerate the reduction of environmental impact in the entire society

Carbon neutrality

Circular economy

Energy conservation

Electrification

Renewable energy

Resource circulation

Promote energy conservation by
developing components withhigher efficiency and offering
energy management systems

Accelerate the transition fromfossil fuels to electricity as theenergy source for vehicles andheating systems

Contribute to increased adoptionof renewable energy and stable
power supply by delivering highly
reliable power systems

Develop business models thatcreate resource circulation suchas carbon recycling

Solutions / Systems / Components

14Addressing Social Challenges Through Our Businesses

2. Initiatives for Addressing Social Challenges

Power semiconductors
Contribute to the green transformation (GX) of the world by pursuing technological evolution in power semiconductors,

which are key devices for reducing energy consumption of electronic equipment, electrifying vehicles, improving renewableenergy conversion efficiency, and others.
Features
Contribute to the achievement of carbon neutrality by leveraging

New SiC/Si power semiconductor modules for xEV
J3 Series

technological synergy within the Mitsubishi Electric Group
Infrastructure BA

Carbon neutrality
Energyconservation

Powersemiconductors

Industry &- High performanceand high quality- Advanced
technology (SiC)

Mobility BA

Electrification
Renewableenergy…

Life BA Since the start of mass production in 1997, Mitsubishi Electric’s power
semiconductor modules for xEV have contributed to the widespread use ofEVs. By 2022, they were installed in power trains for more than 26 million*1
cars around the world The new products contribute to making inverters smaller, with SiCMOSFET*2 and RC-IGBT*3(Si) installed in the same package and the module
size reduced to approx. 40% of conventional products*1 Aggregated the number of xEVs equipped with Mitsubishi Electric’s power semiconductors for automotives *2 MOSFET: Metal Oxide Semiconductor Field Effect Transistor*3 RC-IGBT: Reverse Conducting Insulated Gate Bipolar Transistor

15Addressing Social Challenges Through Our Businesses

2. Initiatives for Addressing Social Challenges

ZEB*1 solutions
Contribute to the achievement of carbon neutrality while both conserving energy and improving comfort in buildings
Features

Example of renovating existingbuilding into ZEB: As a ZEB planner, offer one-stop support from planning to design,
construction, and maintenance, for both the construction of newbuildings and the renovation of existing buildings

Nishishinjuku Sanko Building Offer solutions that integrate facilities necessary for ZEB (air conditioners,
lighting fixtures, ventilatiors, hot water supply systems, and elevators)
with digital technologies, as well as field knowledge of maintenance andoperation management
Systems and components that contribute to improving the value of buildings
Air conditioners

UPS,*2 etc.

Lighting fixtures

Ventilators

Building management systems

Hot water
supply systems

Elevators

Smart city/building IoT platform Reduced primary energy use by 62%
through efficient facilities (airconditioners, lighting fixtures, andventilatiors), centralized air conditioning
control and other measures.
 Achieved energy conservation and acomfortable office environment*1 ZEB: Net Zero Energy Building *2 UPS: Uninterruptible Power Supply

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Addressing Social Challenges Through Our Businesses

2. Initiatives for Addressing Social Challenges

Contribute in all fields to create a safe, secure, and comfortable society by leveraging the Mitsubishi ElectricGroup’s strengths

Safe, secure, and comfortable society

Contribute to realizing a safe, secure, and comfortable society in 133 countries and regions *1 in the world

Safety/Security

Disaster prevention andmitigation
Contribute to the maintenance andmanagement of aging infrastructure,

as well as early recovery after disasters

Inclusion

Improving transportation
accessibility
Develop highly convenienttransportation networks that ensure
comfortable mobility for everyone

Well-being

Resolving labor shortages

Comfortable lifestyle

Automate on-site operations to saveCreate an environment where everyonelabor and utilize digital technology tofacilitate the transfer of skills fromcan live a healthy and vibrant life

experienced engineers

Solutions / Systems / Components*1 Number of countries and regions where our products and systems are sold17

Addressing Social Challenges Through Our Businesses

2. Initiatives for Addressing Social Challenges

3D measurement app “Rulerless”
Contribute to improving the efficiency of disaster damage investigation and preventing and mitigating disasters,with an application that utilizes a LiDAR *1 scanner installed on smartphones
Features Make 3D models of and measure close-by space and objects, basedon photos taken and 3D point cloud data acquired with a LiDAR *1
sensor built into smartphones
 Contribute to prompt support of disaster victims by improving theefficiency of house damage investigation, facility inspection, andother measurement work at the time of disasters
Intended occasion of use

Disasterinvestigation

Facility inspection

Equipment delivery
simulation

Received the CES 2024 Innovation Award in the Mobile Devices,
Accessories & Apps category*1 LiDAR (Light Detection and Ranging): A technology to measure the distance to and shape of an object, based on the time until the irradiated laser bounces back18

Addressing Social Challenges Through Our Businesses

2. Initiatives for Addressing Social Challenges

Product delivery service using self-driving robots
Contribute to addressing social challenges, such as labor shortages in the transportation and delivery industry, by working on
the social implementation of delivery robots with excellent driving performance that can seamlessly move vertically andhorizontally both indoors and outdoors
Features Improve customer convenience by delivering products using
high-performance self-driving robots with excellent outdoor
driving performance

Business partnership with Uber Eats Japan and Cartken

 Ensure smooth indoor movement by operating together withelevators, entry/exit control systems, etc. (under development)
Facility status

IoT platform

Control eachfacility

Building facilities

・Elevators
・Entry/Exit control systems,
etc.

Requestdispatching/opening
Give direction toboard/proceed

Smoothindoormovement

Robot Formed a business partnership with Uber Eats Japan and Cartken tooffer online delivery services using self-driving robots.
 Started offering services in a select part of Tokyo from March 2024

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Creating New Solutions to Address Social Challenges

2. Initiatives for Addressing Social Challenges

Energy & Facility solutions
Utilize digital technologies and create integrated solutions that cover from procurement and optimal management of energy to efficient
operation and maintenance of facilities to realize carbon neutrality that has economic rationality, as well as a safe and secure society
Features[In-house test case]Utilize IoT, AI, and other digital technologies to accumulate and analyze data from

Multi-region EMS *1

customers, and address all challenges customers face in relation to energy and facility
Industry

Building

Data center

Publictransportation

Cities/Regions

Fukuyama, Hiroshima

Multi-region
EMS

Ako, Hyogo

Electricity

Energysolutions

DX

(Data
infrastructure)

Facility

solutions

Create new customer value
Carbon neutrality

Safety/Security

Environmental
value

Marugame, Kagawa

Kobe, Hyogo

 Connect multiple factories and offices in different electricity supply areas,
and test self-consignment of renewable energy, optimal operation of

power storage systems, and management of environmental value over two
years starting from March 2024

*1 An energy management system that optimizes the transferring of renewable power between multiple locations and helps companies achieve decarbonization targets

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Open Innovations for Addressing Social Challenges

2. Initiatives for Addressing Social Challenges

Accelerate initiatives in fields of innovation for addressing social issues by leveraging co-creation with startups

and customers, as well as investments and M&As, including corporate venture capitals

Create innovation by collaborating with startups

Social challenges

Technologies
and knowledgeof the Mitsubishi
Electric Group

Innovation

Invest in and collaborate with startups to address social challenges

Technologies andideas of customers
and partners

Co-creation

Ensures the safety of and optimizes
urban transportation by leveraging
image analysis technology

Solves water pollution problems
with wastewater treatment andpurification technology

Offers solutions to support theachievement of carbon neutrality in the
manufacturing industry

Resolves shortages of workers forvisual inspections at manufacturing
sites by leveraging AI technology

Co-creation with customers and partners
Create new value through by
co-creation with customers andpartners by leveraging the Mitsubishi
Electric Group’s technology assets

Contributes to the realization of acircular society by leveraging knowhow in the plastic recycling business21

Human Capital as a Driving Force for Addressing Social Challenges

2. Initiatives for Addressing Social Challenges

Globally secure and develop human capital that will be a driving force for promoting sustainability management,
accelerate human capital strategies that are linked to management strategies, and promote DE&I *1 and otherinitiatives to maximize the value of human capital
Human capital as a driving force for addressing social challenges
Maximize the value of human capitalStrengthen adiverse andversatile
human capitalfoundation

Transform
talentmanagement

Encourage self-initiative and challenging spirit, and enhancecareer ownership Enhance in-house job offering/application systems and personal career development
support programs

 Revamp the salary and compensation system to incorporate job-based human capitalmanagement

Human capital strategies
Transform
corporate
culture andmindsetRecent initiatives and strategies

Transform HR
divisions withdigitaltechnology

Investment in people
Secure diverse and versatile human capital globally,enhance development systems,
and introduce job-based human capital management

Enhance DE&I initiatives

 Promote diversity in senior management*2 based on global succession management

 Early appointment of personnel for managerial positions linked with a management
candidate development system

KPI for DE＆I
Ratio of female/non-Japanese in senior
management
Ratio of female
in managerial
positions

Results as of FY2023 end

3%Target for FY2031 (non-consolidated)
Results for 2H FY2023 2.6%
Target for FY2031 (non-consolidated)

30%
12%

*1 DE&I: Diversity, Equity & Inclusion *2 Senior management: Executive Officers and Directors

22Strengthen Business Foundation for Sustainable Growth

2. Initiatives for Addressing Social Challenges

Fulfill corporate social responsibility and strengthen business foundations for sustainable growth
Human rights

Corporate Governance

Sustainability-oriented corporate culture

Promote continuous improvement
activities to ensure that our businessactivities do not have a negative impact
on human rights

Further improve the flexibility andtransparency of management, andstrengthen the supervisory function

Proactively communicate with stakeholders
and foster a corporate culture that aims toaddress social challenges from a mid- tolong-term perspective

Human rights initiatives based oninternational norms

Improvement of the effectiveness of
the Board of Directors

Activation of internal communication

 Continue to carry out Human Rights Due
Diligence Conduct third-party evaluation of theeffectiveness of the Board of Directors andpursue sustainable improvements

 Continue activities to identify and addressrisks involving major human rights violationsin the supply chain

 Ensure that independent outside directors
account for more than half of the Board of
Directors and the three statutory committee
members
 Appointed independent outside directors tochairpersons of the Board of Directors and thethree statutory committees

 Implement the Purpose Project, which
provides every employee with theopportunity to think about their “MyPurpose”

Active engagement in IR/SR *1 activities
 Hold enhanced dialogues withshareholders, investors, and otherstakeholders through IR Days, briefings,
and other events*1 IR・SR： Investor Relations ・ Shareholder Relations

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Major Non-financial Indicators
Materiality
Realize a sustainableglobal environment
Realize a safe, secure,and comfortable society

Respect for all people

Targets/Initiative indicators
Achieve carbon neutral

Create a sustainabilityoriented corporate culture FY2031 : Aim for net zero greenhouse gas emissions from factories and offices
 FY2051 : Aim for net zero greenhouse gas emissions in the entire value chain
 Provide products, services and solutions that contribute to carbon neutrality

Achieve circular economy

 FY2036 : 100% effective use of wasted plastics

Contribution through business activities in the areas ofsafety/security, inclusion, and well-being Provide products, services and solutions that contribute to safety/security, inclusion and well-being

Promote human rights initiatives that are based oninternational norms

 FY2031 : Establish human rights initiatives based on international norms
 FY2031 : Realize a responsible supply chain

Realize workplace where diverse and versatile humancapital gathers and works together
Increase effectiveness of the Board of Directors

Strengthen corporate
governance and complianceon a sustainable basis

2. Initiatives for Addressing Social Challenges

 FY2026 : Employee engagement score*1 70% or more (non-consolidated)

 FY2031 : Ratio of female/non-Japanese in senior management*2 30% or more (non-consolidated)
 FY2031 : Ratio of female in managerial positions 12% or more (non-consolidated) Maintain the ratio of independent outside director at 50% or more

Prevent recurrence of improper quality control practices

 Promote three key reforms (quality assurance, organizational culture and governance),
monitoring of the three reforms by the Board of Directors, and appropriate information disclosure

Understanding and practices of a compliance motto“Always Act with Integrity”

 Provide compliance education on a continuous basis

Improve the Cybersecurity maturity level FY2029 : Achieve level 2 or higher*3 in the Cybersecurity Maturity Model Certification across theGroup

Understanding and practices of sustainability
by employees

 FY2026 : Understanding on the operation of business in line with the corporate purpose and goals
according to the results of the employee awareness survey 75% or more (non-consolidated)

Promote communication with stakeholders both inside  Issue the Sustainability Report and the Integrated Report, hold dialogues with experts, and conductsustainability report questionnaires
and outside the company*1 Ratio of employees who respond that they feel that they are proud and motivated to work for the Company in the employee awareness survey*2 Senior management: Executive Officers and Directors *3 Framework for Cybersecurity Maturity Model Certification set forth by the U.S. Department of Defense (CMMC 2.0)24

Summary
Mitsubishi Electric Group’s Sustainability Management
 Pursue the realization of sustainability by striving for “Trade-On (mutual benefits),”
where we grow our business while solving social challenges
 Strengthen business foundations and create new value by accelerating sustainability
initiatives and investments
 Taking on the challenge of sustainability innovation by bringing together thetechnological capabilities nurtured in a wide range of fields and the creativityof each employee

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