Environment
Basic Policy ................................................................. 57
Strategy for Climate Change ................................... 59
The Structure of Our Environmental
Management System ................................................ 66
Environmental Considerations for
Value Chain Management ....................................... 71
Biodiversity Preservation Activities ........................ 83
Environmental Data .................................................. 86Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Basic Policy

Environment

SocialGovernance

About
Mitsubishi Electric Group1 Apply Diverse Technologies in Wide-Ranging
Business Areas to Solve Environmental Issues

The Mitsubishi Electric Group sets forth a clear course of action it shall take toward 2050 inEnvironmental Sustainability Vision 2050, and promotes initiatives to realize sustainability of
the global environment based on an environmental policy that outlines how the Group shallcontribute to the environment.

The Mitsubishi Electric Group shall utilize diverse technologic al assets throughout wideranging business areas, and across the entire value chain, to solve various environmental
issues, including climate change, resource circulation and coexisting harmoniously with nature.

Environmental Sustainability Vision 2050

Climate Change Measures
1) Promoting and disseminating outstanding energy-saving products, systems, services andrenewable energy businesses, together with our stakeholders, we will contribute to
reducing greenhouse gases worldwide.
2) Respecting the global shift toward carbon neutrality, we will promote the reduction ofgreenhouse gases throughout the value chain, from development, design, procurement of
raw materials and production through sales, distribution, use and disposal. Our present
target is to reduce CO2 emissions to net-zero by 2050.
3) Observing changes in the global environment, we will provide solutions that contribute tominimizing the risks of natural disasters.

Key Activities

In recent years, corporations are expected to further continue their long-term efforts to solve
global environmental issues. The Mitsubishi Electric Group’s new Environmental Sustainability
Vision 2050 defines environmental protection as an even greater corporate priority andstipulates increased initiatives toward this end. It establishes Mitsubishi Electric’s future
course toward 2050 in the form of the Environmental Declaration, Three Environmental
Action Guidelines, and Key Initiatives.

Resource Circulation
1) Reducing the size and weight of products, we will consider the use of recycled materials
and recyclability rate of the products and systems we produce.
2) Eliminating resource waste throughout the value chain, we will strive to maximize theeffective use of resources.
3) We will work to expand the supply of safe, clean water globally , as well as to enforce
water treatment that does not pollute oceans and rivers.
4) We will promote the effective use of water taking the water environment of each region
into consideration.
5) We will promote resource recycling businesses globally, such as reuse, repair of products/
systems and waste reduction.
6) We will aim to achieve 100% effective use of wastes, such as plastics, generated during
manufacturing processes.
Live in Harmony with Nature
1) Throughout the Group, we will carry out activities to preserve biodiversity in themountains, rivers, and oceans, and at all business sites, and promote the development oflocal environments and human resources to be passed to future generations.
2) We will work to control, suppress, substitute, and properly dispose of harmful substancesthat may affect the natural environment.

57

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

2 Challenge to Develop Business Innovations for
Future Generations

Environment

SocialGovernance

About
Mitsubishi Electric GroupLive in Harmony with the Region1) We will hold discussions with local residents and municipalities, and contribute to creating
a better local environment, including Satoyama conservation and bio-diversity preservation
activities at business sites.

The Mitsubishi Electric Group shall draw on internal and extern al strengths, combine
them when required to resolve difficult issues, and take on the challenge of developing
technologies and business innovations for future generations.

Environmental Policy

Key Activities

Based on its Purpose, “We, the Mitsubishi Electric Group, will contribute to the realizationof a vibrant and sustainable society through continuous technological innovation andceaseless creativity,” the Mitsubishi Electric Group clearly states its contribution to therealization of sustainability as one of its key management policies. Our aim is to realizeboth a sustainable global environment and a safe, secure, and comfortable society. To findsolutions to environmental problems such as climate change, resource depletion, and theloss of biodiversity, contributing to the protection of the environment is positioned as one of
the most important issues that the Group must address.

Long-term Activities
1) We will set specific indices and action items while considering future prospects in themidterm Environmental Plan formulated every three years.
2) We will verify the validity of long-term goals approximately every five years, doing so
considering international agreements, foreign affairs and business conditions.
Innovation
1) We will cooperate with other companies and institutions, and use our technologicalassets, technologies and business synergies to create innovative technologies andsolutions.
2) We will proactively adopt innovational technologies and solutions that enable us to leadmanufacturing in future generations.

Utilizing our accumulated and newly developed state-of-the-art technologies, and inaccordance with “Environmental Vision 2050,” we will provide products and services througha wide variety of businesses that contribute to resolving climate change issues and creatinga recycling-based society. At the same time, we will draw on strengths, both within andoutside of the Group, and with the passion of all employees, focus on creating innovativetechnologies, products and services while proposing new values that will support future
generations. Particularly, in view of the global trend towards rapid decarbonization, we are
addressing the reduction of greenhouse gas emissions throughout our value chain while also
promoting the recycling of resources globally and making efforts to preserve biodiversity.

Nurturing Human Resources
1) We will foster a corporate culture in which employees, as ordinary citizens, take theinitiative on creating new lifestyles in harmony with nature.
2) We will develop highly specialized human resources who accept diverse values, andproactively work on environmental issues.

As a good corporate citizen, the Group will continue to work with its employees, theirfamilies, and local communities to foster environmental awareness and expand the sphereof its activities that are contributing to society. We will actively disseminate information on
our environmental initiatives in an effort to promote a mutual understanding with society. In
doing so, we will comply with laws and social norms, change the ways we think and act witha keen sensitivity to changes in society, and always conduct business activities while giving
continuous consideration to protecting the environment.

3 Publicize and Share New Values and Lifestyles
The Mitsubishi Electric Group shall promote active dialogue, collaboration, and co-creation
with all stakeholders, publicizing and sharing new values and lifestyles that will result in living
comfortably, in harmony with nature.

Key Activities

Understanding Needs
1) We will work to understand our customers’ needs and expectations for the environment
through sales activities, exhibitions, events, and other initiatives.
2) We will hold discussions with stakeholders, and confirm the validity of our environmental
targets and measures, to promote more effective environmental activities.

Under the Environmental Declaration, “Protect the air, land, and water with our hearts andtechnologies to sustain a better future for all,” all employees of the Mitsubishi Electric Group willcontribute with pride and passion to enrichen people’s lives and improve the global environment.
Co-create and Disseminate New Values
1) We will propose new lifestyles that provide the pleasure of contributing to theenvironment through the use of our products, systems, and services.


58

November 2021

Kei Uruma

President & CEO

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Strategy for Climate Change

Environment

SocialGovernance

About
Mitsubishi Electric Group

4. Communication with stakeholders
To communicate with society, customers, shareholders, employees, and otherstakeholders through highly transparent disclosure of information in a way that reflects
society's expectations, requests, and opinions in our corporate management

Financial Information Based on Recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD)

Promotional System for Sustainability

The policies and planning for the sustainability activities of the Mitsubishi Electric Group are decided
by the Sustainability Committee, which is chaired by the Chief Strategy Officer (CSO), the Executive
Officer in charge of corporate planning and sustainability, and appointed by Mitsubishi Electric’s
Executive Officers meeting. The Sustainability Committee comprises of the heads of Mitsubishi
Electric's corporate divisions and corporate strategic planning divisions (as of April 1, 2023, there
are 34 members in charge of environmental, social and governance aspects from divisions suchas Corporate Strategic Planning and Corporate Human Resources). Based on the materiality, theCommittee discusses monitoring the results of activities, decisions on future activity plans, andresponses to law amendments, and promoting initiatives from a perspective that spans the entire
Mitsubishi Electric Group. In addition, the corporate divisions are responsible for the promotionof specific initiatives such as ethics and legal compliance, quality assurance and improvement,
environmental protection activities, social contribution activities, and stakeholder communication.
The Sustainability Planning Division provides the secretariat for the Sustainability Committee.
We have established the Sustainability Planning Division under the direct control of the President
as the core organization responsible for this task from fiscal 2024 in order to realize sustainability.
The Sustainability Committee generally holds meetings at least three times a year, andthe details on the discussion are reported to the senior executives at the Executive Officers’
Meeting. From fiscal 2022, the details on the discussion are also reported to the Board of
Directors. The Board of Directors regards the statuses of sustainability initiatives as one of the“key agenda items” for the Mitsubishi Electric Group (medium- and long-term management
plan, organizational culture reform, sustainability initiatives, and human capital strategy
from July 2022 to June 2023), and it holds full discussions from the perspective of risk
management and profit-generating opportunities, receiving diverse opinions from independent
outside directors, as well as supervising the status of initiatives by Executive Officers.
The promotion of sustainability initiatives is one of the compensation indicators for
Executive Officers, and the achievement of performance indicators in non-financial areas suchas sustainability and ESG-related areas is reflected in incentive compensation.
In order to deal with sustainability challenges that involve multiple divisions in a crosssectional manner, we also have established ‘Subcommittees’ as permanent meetings and‘Projects’ as temporary meetings under the Sustainability Committee. The two subcommittees,
the “Carbon Neutrality Subcommittee” and the “Human Rights Subcommittee,” promote
initiatives in response to legal and social requirements. In addition, we have established the“Integrated Report/Legal Disclosure Working Group” and “TCFD Working Group” to consider
the clarification of individual categories of activities and the roles of participating divisions,information disclosure in accordance with norms, and other matters. Subcommittees andprojects are led by the relevant corporate division, and the progress of these subcommittees'
initiatives is confirmed at each Sustainability Committee meeting.
Further, to share and execute the policies and plans established by the Sustainability
Committee, we have established the “Sustainability Communication Meeting” aimed atcollaboration between internal divisions and affiliates in Japan and overseas.

Task Force on Climate-related Financial Disclosures (TCFD) The Mitsubishi Electric Group has
expressed its support for the recommendations of the TCFD (Task Force on Climate-related
Financial Disclosures), and as such, the Group promotes efforts and discloses information inline with these recommendations.
We view response to the TCFD as an activity to fulfill our “responsibility to a sustainable
society” and “contribute to a sustainable society through our business” by addressing the global
environmental challenge posed by climate change. Moreover, we view it as “risk management
in response to long-term social and environmental changes” towards the realization ofsustainability, and “communication with stakeholders” to promote the resolution of social issues.

Governance

Basic policy of Sustainability

The Mitsubishi Electric Group implements sustainability-oriented initiatives in all corporate
activities in accordance with its “Purpose,” “Our Values,” and “Commitment.” Our
Management policy states, “we will return to our fundamental principle of ‘addressing
social challenges through our businesses’ and position the realization of sustainability
as the cornerstone of our management. From this approach, we will pursue a sustained
enhancement of our corporate value and fulfill our responsibility to society, to our customers,
shareholders and employees, and to all other stakeholders.” We will pursue initiatives forachieving a sustainable society to incorporate the expectations, requests, and opinions fromsociety into activities, and to minimize the negative impact on society and the environment.

Actions to promote the realization of sustainability

To realize sustainability, we have set the following four points as actions to advance:
1. Contribution to a sustainable society through our businesses
To contribute to the realization of a “vibrant and sustainable society” by solving social andenvironmental issues through our business activities
2. Responsibility for a sustainable society
To conduct business responsibly in a manner that does not cause or exacerbate social
challenges or environmental issues
3. Risk management for long-term social and environmental changes
To adapt to changes in society and the environment not only in the short and medium terms
but also in the long term. To create business opportunities and sustainable development.
To predict risks and to control or minimize their impacts on business management
59

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialKey Feedback from the Board of Directors

ReportReportSustainability Committee

Participating divisions: Corporate Strategic Planning Div., Corporate IR and SR Div., Corporate
Administration Div., Corporate Accounting Div., Corporate Finance Div., Public Relations Div.,
Corporate Risk Management Div., Process & Operation Reengineering Group, Corporate
Environmental Sustainability Dept., Sustainability Planning Div. (Secretariat)
TCFD Working GroupAs a point of reinforcement, the project considered the financial impact assessment basedon scenario analysis and the global environmental risks management in the risk managementof the Mitsubishi Electric Group.

Commission

Carbon Neutrality Subcommittee
Human Rights Subcommittee

Considering the financial impact assessment based on scenario analysis

Integrated Report/
Legal Disclosure Working GroupWe have identified and extracted the corporate divisions that are considered to be relatively
highly sensitive to the impacts of climate change by examining the following documents
and records as well as assessing them from a bird’s-eye view: external assessments (ESG
investment guidelines, various climate-related initiatives, etc.) of the magnitude and sensitivityof the effects that climate change has on industries; greenhouse gas emission amounts
by division; and the business portfolio of each corporate division. We next estimated thefinancial impacts on our current business plans over the long-term in an uncertain future year
based on the assumption of scenarios in which climate change is below 2°C and in whichclimate change is 4°C. We then verified the resilience of these businesses and examined thedegree of impacts on the Mitsubishi Electric Group’s overall business as well as the accuracy
and validity of the information disclosed. In fiscal 2024, with the aim of conducting a financial
impact assessment of the Mitsubishi Electric Group as a whole and disclosing the resultsin fiscal 2025, we will continue this study and expand it into a consistent analysis of all
corporate divisions.

TCFD Working Group

Sustainability
Communication Meeting
Departments

Affiliates in Japan

Opinion
TCFD Working Group

Executive Officers’ meetings

Sustainability Committee

Commission

ReportSupervision

Chairman : Director in charge of Sustainability
Members : Sr. General Managers of corporate divisions,
Sr. General Manager of corporate strategicplanning
Head of the Secretariat : Sr.General Manager of
Sustainability Planning Div.
Secretariat : Sustainability Planning Div.

Supervision
Executive Ofcers’ meetings

Board of Directors

ReportAbout
Mitsubishi Electric Group

Board of Directors

Regarding the agenda items related to the impact of climate change, “Initiatives to carbon
neutrality” and “Response to the TCFD” were discussed at the Sustainability Committee
meetings in April and October 2022 and January and April 2023.
In response, the Board of Directors has provided feedback to the Executive Officer
Responsible for Sustainability, including the following points:
・ Society expects the Mitsubishi Electric Group to “realize a sustainable global environment”
as well as “a safe, secure, and comfortable society.” We must also demonstrate ourstrength in these areas, and it is necessary to promote initiatives with carbon neutrality attheir core.
・ More and more companies are being criticized for “greenwashing” (pretending tocontribute to the environment). There is a need for accurate communication of the facts.

ReportGovernanceOverseas Affiliates

Sustainability Promotion Framework

TCFD Working Group

During fiscal 2023, the TCFD Working Group was established under the auspices of
the Sustainability Committee with the aim of stepping up efforts to address risks andopportunities associated with climate change, both in terms of “risk management in response
to long-term social and environmental changes” and “communication with stakeholders.”

Examination of global environmental risk management in the risk
management of the Mitsubishi Electric Group

With regard to risk management, we have established a risk management framework
for the Mitsubishi Electric Group, positioned global environmental risks including climatechange within this framework, and improved management processes for risks related to theglobal environment. In fiscal 2024, we aim to further contribute to the global environment
by deepening and clarifying the identification, assessment, and management of risks andopportunities related to climate change.
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Contents /About the ReportManagement Message

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Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

Governance

About
Mitsubishi Electric Group

Table 2 Examples of Climate change-related Opportunities and Initiatives by the Mitsubishi Electric Group

StrategySocial Challenges (Opportunities)

Use of more efficientmodes of transport(modal shift)● Use of more efficient
production anddistribution processes● Promotion of recycling● Relocation to a more
efficient building● Reduction in water usage
and consumption●

Table 1 Examples of Climate-related Risks and Initiatives by the Mitsubishi Electric Group
Examples of the Group’s Initiatives■ Transition Risks
Reduction of GHG*1 emissions through promotion of environmental plans
and setting and taking initiative on SBT*2● Promotion of environmentally conscious design (global warming, resource
conservation, recyclability, hazardous substances, packaging)● Capital investment related to environmental activities, including energy
saving and global warming countermeasures● Implementation of supply chain management (formulation andimplementation of green procurement standards)● Reporting of Scope 1, 2 and 3 emissions and implementation of
third-party certification● Acquisition and maintenance of ISO 14001 certification● Confirmation of legal compliance through environmental audits● Disclosure of initiatives related to climate change and otherenvironmental issues●

Policy and Legal Risks(Short-to-Long Term)

Increase in carbon pricing
Strengthened obligation ofemission reports● Orders and regulations forexisting products and services by
relevant authorities● Litigation●●

Technology Risks (Mid-to-Long Term)● Replacement of existing products
and services with low-emission
alternatives● Failed investment in newtechnologies● Cost of transition to low-emission
technologies
Market Risks (Mid-to-Long Term)● Changes in customer behavior● Uncertainty in market signals● Rise in raw material costs■ Energy Source●

Use energy sources that
contribute to carbon
neutrality● Use of new technologies● Shift toward decentralizedenergy generation●

Development of new technologies through R&D investment
Implementation of intellectual property activities
Mobile capital investment mainly in key growth businesses● Capital investment related to environmental activities, including energy
saving and global warming countermeasures●●

Changes in consumer preferences
Criticisms of the industrial sector● Increased concerns among
stakeholders, or negative
feedback from them●●●

Development and/or
expansion of goods andservices that contributeto carbon neutrality● Development of new
products or services
through R&D andinnovation● Ability to diversify
business activities● Shift in consumer
preferences

Promotion of environmentally conscious design
Capital investment related to environmental activities, including energy
saving and global warming countermeasures● Market research and feedback on product development●●

Reduction of GHG emissions through promotion of environmental plans
and setting and taking initiative on science based targets
Capital investment related to environmental activities, including energy
saving and global warming countermeasures● Promotion of environmentally conscious design● Response to environmental risk management● Implementation of natural environment conservation activities, including
the protection of local biodiversity● Disclosure of initiatives related to climate change and otherenvironmental issues■ Resilience

Chronic Risks (Mid-to-Long Term)
Changes in precipitation patterns
and extreme variations in weather
patterns

Formulation and periodic review of BCPs*3
Implementation of supply chain management (formulation andimplementation of green procurement standards, decentralization of
production sites by purchasing from multiple companies, etc.)● A certain amount of investment every year in environmental activities,
including initiatives against climate change● Reduction of GHG emissions through promotion of environmental plans
and setting and taking initiative on science based targets●●*2 Science Based Targets

Effective use of electricity and response to needs for system stabilization accompanying
the expansion of renewable energy and decentralization of power sources
Contribution to preventing global warming by using observation satellites, strengthening
the monitoring of meteorological phenomena and the global environment,
understanding of disaster situations, and promoting disaster prevention*11● Meteorological radar system● Field Edge® image-based water level measurement device● Provision of BCP solutions, such as data centers, teleworking, and video conferencing services●

Participation in renewableenergy programs andadoption of energy
efficiency measures● Resource
substitutes/diversification●■ Physical Risks
Acute Risks (Short-to-Long Term)
Increased severity of extreme
weather such as cyclones andfloodsDevelopment of energy-saving products optimized for local climate conditions and needs
Development of innovative new products such as the Misola,*7 a lighting fixture that
imitates a deep blue sky and natural light in indoor spaces.
● Development for further improving evergy efficiency of railway vehicles and Railway
LMS on INFOPRISM*8, a solution for streamlining maintenance● Demonstration of ZEB-related technologies, including the construction of demonstration facilities● Development and supply of the EcoMBR*9 filtration membrane cleaning system forwater treatment● Provision of smart meters● Development and supply of energy conservation equipment that facilitates the measurementof energy consumption and the collection and analysis of energy consumption data
● Global supply of high-efficiency equipment, including electric power train systems● Development and supply of low-loss SiC devices● Centralized GHG emissions data management solution “cocono*10”● Localization of production and sales sites● Balanced promotion of short-, medium- and long-term research and development●●●(Mid-to-Long Term)

Effective use of electricity and response to needs for system stabilization accompanying
the expansion of renewable energy and decentralization of power sources- Large energy storage systems- VSC-based high-voltage direct current systems “HVDC-Diamond®*4”- Smart medium voltage DC distribution network system D-SMiree*5- Distributed power supply system/VPP system- Multi-region digital power supply system (multi-region EMS)*5- Heat pump technology*6■ Products and Services●●

Reputation Risks

Development of products suitable for resource conservation, such as thinner materials
and smaller tubes● Promotion of plastic recycling● Verification of plastic sorting technology in collaboration with other companies,
joining the alliance “CLOMA*1”● Energy conservation and reduction of operation costs for buildings as a whole throughZEB (net Zero Energy Building), etc.
● Development of Ville-feuille®*2 and other linked control technologies for mobility andbuilding equipment● Provision of systems for water distribution management, water storage and discharge
through dam management, and water intake management for agricultural water● Promotion of reclaimed water use● Strengthening of products and solutions that support e-F@ctory*3● Promotion of a modal shift● Localization of production and sales bases●

The Mitsubishi Electric Group has identified climate-related risks and opportunities.

Risks

Examples of the Group’s Initiatives■ Resource Efficiency

Climate Change Risks and Opportunities in the Short, Mid-to-Long Term

*1 Greenhouse gas

Social

*1
*2
*3
*4
*5
*6

*3 Business continuity plan

61●

Contributing to Solving the Marine Plastic Waste Problems “Joining CLOMA”
Smart city/building IoT platform “Ville-feuille®” <Japanese site>
Introduction of e-F@ctory
Topics: VSC-based high-voltage direct current systems “HVDC-Diamond®”
Energy & Industrial Systems Group
Topics: “ecodan” series*7 “misola” blue sky lighting <Japanese site>*8 Topics: Solution that supports safe, secure, and efficient railway operations*9 Water treatment technology using membrane bioreactor with ozonated water <Japanese site>*10 Centralized GHG emissions data management solution “cocono” <Japanese site>*11 Observation Satellites

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Promotion of carbon neutrality

Degree of contribution togreenhouse gas reduction in society

Develop internal initiatives
into businesses

Make the entire
value chain
carbon neutral

Contribution
Create/expand
carbon neutral
businesses

Progress toward a carbon
neutral society leads the Groupto become carbon neutral

Basic policy for promoting carbon neutral

The Mitsubishi Electric Group has set out to achieve net zero greenhouse gas emissions in
the entire value chain by 2050. As initiatives to reduce such emissions at factories and offices,
we aim to achieve net zero greenhouse gas emissions from factories and offices by fiscal
2031 by (1) reducing emissions through energy conservation, electrification, and non-energyuse; (2) expanding in-house power generation using solar power, etc.; (3) procuring electricity
from renewable energy sources and non-fossil certificates, etc.; and (4) procuring credits, etc.

Reducing emissions throughenergy conservation,
electriﬁcation, and non-energy use

Expanding in-house power
generation using solar power, etc.
Procuring electricity fromrenewable energy sources andnon-fossil certiﬁcates, etc.
Procuring credits, etc.

2025

2030

Development of energy conservation, electriﬁcation,and greenhouse gas alternative technologies
Application and demonstration
at internal sites

Promotion of procurement
Investigation

Promotion of procurement

CCUS / Carbon recycling
CO2 recovery from atmosphere andfactory exhaust gases
Heat and steam utilization
Full use of waste plastic

Promote R&D to realize circularcarbon use.

Green by Digital

Main R&D Themes

Green by Electronics

Main R&D Themes

Contribute to the improvement of energy
eﬃciency and the expansion of renewableenergy by using advanced digital technology.

Promote energy conservation and electriﬁcationof equipment by promoting the development ofcore components with higher eﬃciency andsmaller size, etc.

2030

Anti-fragile system
Floating-type HVDC
EMS integrating electricity, heat, and chemical substancesand hydrogen
Multi-region EMS
SiC/Ga-based power semiconductor devices
ZEB energy conservation /energycreation solutions
Inverter/motor system for xEVConversion to low-GWP refrigerants

Toward achievement of carbon neutral

CCUS（Carbon dioxide Capture，
Utilization and Storage）, HVDC（High Voltage Direct Current）
EMS（Energy Management System）, ZEB（net Zero Energy Building）, GWP（Global Warming Potential）

Development roadmap for achieving carbon neutral

2050

Net zero emissions from
the Mitsubishi Electric Group
Expansion of application to sites
in Japan and overseas

Expansion of introduction at sites
in Japan and overseas

Investigation

About
Mitsubishi Electric Group

Main R&D Themes

Green by Circular

Toward achievement of the SDGs

Responsibility: Carbon neutral initiatives in the entire value chain- 2022GovernanceTo make society as a whole carbon neutral, we have established a development roadmap up
to 2050 and will accelerate R&D in three innovation areas: Green by Electronics, Green by
Digital, and Green by Circular.
As an example of our efforts, we have established the Mitsubishi Electric Energy & Carbon
Management Collaborative Research Center with Tokyo Institute of Technology to promoteresearch and development of energy and carbon management technologies, including
environmental value trading of electricity, heat, and chemical substances as well as carbon
recycling technologies.

Adopted dual approaches to carbon neutral:
Responsibility and Contribution.

AchievecarbonneutralSocialContribution: Create/expand businesses that contribute to carbon neutral

The Mitsubishi Electric Group is working to achieve carbon neutrality from the aspects of
responsibility and contribution. While continuing and growing our business, we aim to achieve
net zero greenhouse gas emissions from our own operations and to achieve carbon neutrality
throughout our value chain by 2050. In May 2022, we announced an interim target of “reducing
our own emissions to 50% of the fiscal 2014 level by fiscal 2031,” and in May 2023, wechanged the interim target to “aiming for net zero greenhouse gas emissions from factories
and offices by fiscal 2031” to proactively join in the international trend to limit the increase inglobal average temperature to 1.5°C or less. In Japan, we also participate in the GX League,
a collaboration between industry, government, academia, and private citizens to achievecarbon neutrality by 2050, which is led by the Ministry of Economy, Trade and Industry (METI).
We will apply our internal initiatives to our business and return the positive impacts on the
Mitsubishi Electric Group resulting from progress made in these initiatives throughout society to
our business. In this way, we will work to achieve carbon neutrality by mutually reinforcing eachother’s efforts.

Responsibility

Environment

Reduction of emissions
with in-houseand external technologies

Roadmap for reducing emissions from factories and offices

62

2050

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Initiatives that contribute toaddressing social challenges

Sustainability
Management

Scenario-based Analysis and Resilience* IPCC: Intergovernmental Panel on Climate Change

The scenario analysis forecasts up to 2050 with periods classified as shown below.

・Long-term: Period through 2050 (final year of Environmental Sustainability Vision 2050)
・Medium-term: Period through 2030

2050

Period through 2025

Medium term
Period through 2030

About
Mitsubishi Electric GroupAs the 2°C or 4°C scenario progresses, social issues arising from climate change and the needto respond to them are expected to become more apparent.
For example, if the 2°C scenario progresses, it is predicted that the amount of power
generated by renewable energy will increase. The Mitsubishi Electric Group is capable ofcontributing to addressing needs for effective use of electricity and system stabilization thatstem from such expansion of renewable energy and the decentralization of power sources,
by providing large energy storage systems, smart medium- and low-voltage direct current
distribution network systems, distributed power source operation systems / virtual power
plant (VPP) systems, and multi-region digital power delivery systems (multi-region EMS).
If the 4°C scenario progresses, frequent heavy rain and floods are expected. Using observation
satellites, the Group is able to enhance the monitoring of meteorological phenomena and theglobal environment, understand disaster situations, and help prevent disasters.
The Mitsubishi Electric Group has a wide range of businesses. Our strength is our ability
to provide a wide range of products, services, and solutions that contribute to solving social
issues arising from climate change. We therefore believe that we have sustainable growth
opportunities over the short to long term through our solutions to these social challenges asshown in Table 2 “Examples of Climate-related Opportunities and Initiatives by the Mitsubishi
Electric Group.”Long term
Short term

Governance

Examples of climate change-related opportunities and initiatives by the
Mitsubishi Electric Group・Short-term: Period through 2025

2030

Socialin science-based targets. Similarly, the impact of rising raw material costs can be mitigatedby further promoting environmentally conscious design, which is already being implemented
with respect to tackling global warming, resources conservation, and improved recyclability.
We are also making capital investments related to environmental activities, including energy
saving and other measures to combat global warming. Additionally, we are investing in the
research and development of new technologies in a well-balanced manner from the short,medium, and long-term perspectives.
In response to physical risks, such as flooding, which will materialize under the 4°C
scenario, we have formulated a business continuity plan and review it once a year whilemoving ahead with the decentralization of production sites. We are also taking steps toprevent production problems in the supply chain, such as by purchasing from multiple
companies and having our suppliers operate multiple production plants.

The corporate activities of the Mitsubishi Electric Group are assessed through scenario
analysis based on IPCC* representative concentration pathway scenarios. The assessment
is made based on two scenarios: a scenario that shows the state of transition (social trend)
when keeping the global average temperature rise to below 2°C compared to pre-industrial
levels (the 2°C scenario), and a scenario in which the temperature rises nearly 4°C as a resultof continuing with conventional global warming countermeasures (the 4°C scenario).

2020

Environment

Period through 2050 (ﬁnal year ofEnvironmental Sustainability Vision 2050)

Risks related to climate change and the Mitsubishi Electric Group’s initiatives

Climate-related risks can be broadly divided into risks associated with the transition to a
decarbonized society (transition risks) and risks associated with the physical impacts ofglobal warming (physical risks). These risks can result in increased expenses (for production,internal administration, financing, etc.) and decreased revenues.
If the 2°C scenario progresses, social demand for reducing greenhouse gas emissions is
expected to grow, raw material costs are expected to rise due to changes in the energy
demand and supply balance, and the amount of generated power by renewable energy
sources is expected to increase, in the transition to a decarbonized society. As a result ofefforts to realize such a society, the likelihood of transition risks arising from the tighteningof laws and regulations on greenhouse gas emissions and an increase in the burden oftechnological development will be relatively high (compared to physical risks).
If the 4°C scenario progresses, there is expected to be a significant increase in thefrequency and severity of heavy rains and floods and a chronic rise in temperature. Physicalrisks such as the suspension of operations and disruption to supply chains due to disasterwill be relatively high (compared to transition risks).
To address these risks, the Mitsubishi Electric Group is implementing the initiatives shownin “Table 1: Examples of Climate-related Risks and Initiatives by the Mitsubishi Electric Group.”
For example, even if laws and regulations strengthen the curtailment of greenhouse gases
under the 2°C scenario, the Group can mitigate the impacts of such a regulatory move, as it
is already working to reduce its emissions through its Environmental Plan and participating

Resilience of Climate change-related Strategies

As a result of this assessment of the risks and opportunities associated with climate change
and our efforts to address them, we believe that the Mitsubishi Electric Group is resilient to
the risks associated with climate change and can achieve sustainable growth by resolvingsocial issues caused by climate change under both the 2°C or 4°C scenarios.

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Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Risk Management

Environment

SocialGovernance

About
Mitsubishi Electric Groupcharge of Corporate Total Productivity Management & Environmental Programs and the
Corporate Environmental Sustainability Department identify and assess risks by subdividing
global environmental risks into smaller risks, taking into account legal trends, technologicaltrends, market trends, external evaluations, and other factors. Based on the results, theExecutive Officer and the Department formulate an environmental plan as a medium-term risk
management measure and an environmental implementation plan as a one-year measure.
Each group organization (business groups, affiliated company, etc.) formulates its own
annual environmental implementation plan based on these plans and reports the results tothe Executive Officer in charge of Corporate Total Productivity Management & Environmental
Programs and the Corporate Environmental Sustainability Department.
The Executive Officer in charge of Corporate Total Productivity Management &Environmental Programs and the Corporate Environmental Sustainability Department thenreview the results of the identifying and assessing of global environmental risks, taking into
account the results of each organization and social trends, and in turn report the results to
the Corporate Risk Management Division and, if necessary, revise the environmental plan andreflect the results in the environmental implementation plan for the following fiscal year.

Processes for addressing climate change-related risks and opportunities

The Mitsubishi Electric Group uses a business strategy decision-making process anda comprehensive risk management process to identify, assess, and manage risks andopportunities related to the global environment, including climate change.
Each of Mitsubishi Electric’s department (business groups, corporate divisions), andaffiliated companies in Japan and overseas will identify climate change-related risks that are
relevant to them, consider how to respond to such risks and turn them into opportunities,
and proactively incorporate them into their business and divisional strategies. The CSO (Chief
Strategy Officer) will also formulate an overall management strategy for the Mitsubishi ElectricGroup based on the formulated business and divisional strategies, the policies for seizing
opportunities related to climate change, the return on investment of measures to achievecarbon neutrality, and the carbon costs estimated by ICP (Internal Carbon Pricing).
At the same time, as part of the Mitsubishi Electric Group’s comprehensive risk
management, we will identify, assess, and properly manage issues that have significant impacts
on management in various risk areas, including risk management related to climate change.

Mitsubishi Electric Group risk management system and positioning of
global environmental risks

The Mitsubishi Electric Group’s global environmental and other risks, including risks related
to climate change, are primarily managed by each corporate division of Mitsubishi Electricand its subsidiaries and affiliates in Japan and overseas. In addition, under the direction of the
Chief Risk Management Officer (CRO), the corporate division (i.e., the division in charge of therisk) identifies, assesses, and manages risks based on its knowledge in each area of expertise.
Risks in each specialty area identified and assessed by the divisions in charge of suchrisks are consolidated by the Corporate Risk Management Division, and their impacts ongroup management are evaluated through relative comparisons among each risk, etc. The
CRO determines their materiality, and all Executive Officers discuss the risks (comprehensive
evaluation of risks/measures).
Risks comprehensively assessed through the above process are shared with relevant
parties, including management. The Group considers global environmental risks, including
climate change, to be highly material because they have significant impacts on the realizationof a sustainable global environment, one of the Group’s materialities.

Management process for risks related to the global environment

Global environmental risks, including climate change, are identified, assessed, andmanaged by the Executive Officer in charge of Corporate Total Productivity Management& Environmental Programs and the Corporate Environmental Sustainability Department,
the department in charge of risk, under the direction of the CRO, in accordance with the
Mitsubishi Electric Group risk management system described above.
Based on the results of such comprehensive risk assessment, the Executive Officer in

Risk Management Framework

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Sustainability
Management

Environment

SocialAbout
Mitsubishi Electric Group

Governance

Progress

Indicators and Targets

Initiatives to achieve greenhouse gas emission reduction targets are making steady progress.
140
CO2 emission (10,000 t-CO2)

Calculating and Understanding Greenhouse Gas Emissions in the Value Chain
The Mitsubishi Electric Group calculates and tracks greenhouse gas emissions (Scope 1, 2
and 3) in its value chain. For calculation and assessment, we refer to the GHG Protocol andthe Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply
Chain published by Japan’s Ministry of the Environment.

Long-Term Target

In our long-term environmental management vision up to 2050, the so-called Environmental
Sustainability Vision 2050, the Mitsubishi Electric Group has set a target to reducegreenhouse gas emissions throughout the entire value chain to net-zero by 2050.

Reduction of 18%

120
100
80

95
92

92

60

Target line of Mitsubishi Electric s science
85

80

89

based targets (formulated in FY2019)

40
20
0

42

2016

33

30

28

24

28

2017

2018

2019

2020

2021

30
2022

2031

(FY)

：Scope 2：Scope 1

Mid-Term Targets

77

Scope 1 and 2 emissions*1 (Mitsubishi Electric Group)

The Mitsubishi Electric Group has reviewed its Scope 1 and Scope 2 targets in order tostrengthen its efforts towards reducing greenhouse gas emissions, and it has set a new target
during fiscal 2024 of “Achieving net zero greenhouse gas emissions from factories and offices
by fiscal 2031.”
In addition, the following greenhouse gas emission reduction targets were approved by
the Science Based Targets initiative in January 2020.
・Scope 1 and 2: Reduce greenhouse gas emissions by 18% by 2030 compared to fiscal 2017
levels・Scope 3* : Reduce greenhouse gas emissions by 15% by 2030 compared to fiscal 2019
levels

25,000CO2 emission (10,000 t-CO2)* Scope 3 emissions cover Category 11 (Use of sold products)

20,00010,000based targets (formulated in FY2019)
21,96820,423
15,279 14,829

16,8575,000

Scope 3 emissions

Since fiscal 1994, the Mitsubishi Electric Group has formulated an Environmental Planevery three years that sets out specific activity targets. We are presently pursuing various
activities in line with the current Environmental Plan 2023 (fiscal 2022 to 2024) which setsout indicators and targets in four areas based on the action guidelines of the Environmental
Sustainability Vision 2050, namely: “environmental contribution through products andservices,” “reducing the environmental impact of business activities,” “pursuing business
innovations,” and "publicizing and sharing new values and lifestyles.”For details, see “Environmental Plan 2023”

Target line of Mitsubishi Electric s science

15,0000

Short-Term Targets

Reduction of 15%

*2

2018

2019

2020

2021

2022

2031

(FY)

(Mitsubishi Electric Group)*1 Scope 2 is location based. The CO2 emission coefficient for electricity is calculated in reference to the following:
Japan—the latest figures published by The Electric Power Council for a Low Carbon Society (ELCS); Overseas—
the latest figures published by International Energy Agency. The global warming potential for greenhouse gases
is calculated in reference to figures published in the IPCC Fifth Evaluation Report.
*2 The scope of third-party verification for Scope 3 emissions includes Category 11 (Use of sold products).

Third-party Verification

Environmental Plan 2023

The Mitsubishi Electric Group has set targets for its greenhouse gas emissions (Scopes 1, 2
and 3*) and amount of water intake and drainage. These targets have been verified by a third
party in compliance with ISO 14064-3 to ensure reliability of the data.
* The scope of third-party verification for Scope 3 emissions includes Category 1 (Purchased goods and services),
Category 6 (Business travel), Category 7 (Employee commuting), and Category 11 (Use of sold products).

For details, see “Third-party Verification Report (Environmental Disclosure of 5 items)”

Third-party Verification Report (Environmental Disclosure of 5 items)

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Sustainability Highlights

Sustainability
Management

The Structure of Our Environmental
Management System
The Mitsubishi Electric Group operates an ISO 14001:2015 compliant environmental
management system that covers Mitsubishi Electric and its major affiliates.

Sharing Information with Environmental
Managers in Each Organization

Environmental Plan

1

Fiscal year
planning

4

Conﬁrmation ofhalf-year progress
and achievements

Within the Mitsubishi Electric Group, in addition to the technology committees for different
issues and meetings held by the people in charge of each organization, general meetings
are held and attended by all people responsible for promoting the environmental practices
for each division in Japan and overseas. The aims of such meetings include confirming key
issues and unifying the approaches to these that the various divisions take, as well as sharing
useful information such as “favorable case examples” of each other’s practices and “mattersto watch out for” on a regular and continuous basis. Such meetings are useful for improving
overall management levels.
The “Company-wide Environmental Managers’ Meeting” and the “Overseas Regional
Environmental Meeting” are representative of this practice. The former brings together allenvironmental managers from across Japan. The latter is held in our four overseas regions (theAmericas, Europe, China and the rest of Asia). In fiscal 2023, almost all of these meetings
were held online to prevent the spread of COVID-19. In Europe, where restrictions werelifted ahead of other regions, we resumed in-person meetings during the latter half of the
fiscal year.

2

Environmental
Management
planning

6

Management
review

About
Mitsubishi Electric Group(6) Management Review
The Executive Officer in charge of Corporate Total Productivity Management & Environmental
Programs carries out the review of activity results and reconsiders environmental plans and/or the environmental implementation plan for the next fiscal year if necessary.
Our activity level is enhanced through the “formulation,” “implementation,” “verification of
results,” and “review” of the plans throughout the fiscal year. In addition to this, audits andinspections on an “as needed” basis ensure that appropriate activities are carried out.

The Mitsubishi Electric Group formulates an environmental plan every three years, comprisedof measures and targets for realizing the Environmental Sustainability Vision.
To achieve the targets of this environmental plan, each management organization
formulates and acts on a yearly environmental implementation plan.

5

Governance(5) Reporting of Annual Environmental Results
The Corporate Environmental Sustainability Department compiles environmental performancedata and other relevant information for the fiscal year to report to the Executive Officer incharge of Corporate Total Productivity Management & Environmental Programs.

Environmental Plan and Environmental
Management Plan

Annualenvironmental
results reportSocial(4) Confirmation of Progress and Achievements
Every six months, the Corporate Environmental Sustainability Department compiles
environmental performance data and other relevant information, and reports them to the
Executive Officer in charge of Corporate Total Productivity Management & Environmental
Programs, who is responsible for environmental management. The Executive Officer thenconducts a review and modifies environmental plans as necessary (e.g., when any significant
change occurs in the business environment related to the Group).

Scope of Environmental Management

Reﬂect in planningfor next period

Environment

3Company-wide
environmental
managers meeting

Implement activities
based on plan

(1) Formulation of a Fiscal Year Plan‒(2) Formulation of an Environmental Management Plan
Based on environmental plans, objectives and action plans are determined for that fiscal year.
(3) Company-wide Environmental Managers’ Meeting
A meeting is held that is attended by all people who are responsible for promoting
environmental practices. Information such as focus issues and policies is shared and confirmed.

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Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Training of Environmental Personnel

Preventing Environmental Incidents

Developing Personnel to Proactively Engage in
Environmental Activities

Preventing Environmental Incidents throughInformation-Sharing and Equipment Inspections

The Mitsubishi Electric Group recognizes “nurturing human resources” as one of its key
activities in accordance with the action guideline to “challenge to develop business
innovations for future generations,” as set forth in the long-term environmental management
vision, “Environmental Sustainability Vision 2050.”
We strive to foster a corporate culture in which each Mitsubishi Electric Group employee
takes the initiative to create a new lifestyle in harmony with nature as an ordinary citizen. To
this end, all employees participate in an annual e-learning program, “Mitsubishi Electric Group
Environmental Management.” We also develop human resources who possess a high degreeof expertise and who accept diverse values and proactively tackle environmental issues, on
a continuous basis. Furthermore, in order to provide effective training, we employ various
educational curricula in accordance with each employee’s role and expertise.

Both within Japan and overseas, the Mitsubishi Electric Group strives to prevent environmental
incidents, such as the leakage of substances that may result in water or soil pollution or
have a negative impact upon the environment. Owing to its efforts, the Group received noadministrative punishments or penalties for any environmental violation in fiscal 2023.
As preventive measures, Mitsubishi Electric ensures that its entire workforce is fully familiar
with the relevant laws and regulations, revises company rules to reflect any updates to suchlaws and regulations, and ensures these updates are made known throughout the Group. In
the case of a problem (e.g., minor oversight) occurring, Mitsubishi Electric shares the cause
and countermeasures throughout the entire Group to prevent it from reoccurring. Aiming toincrease the awareness of environmental risk management, the Mitsubishi Electric Group’s
offices and factories across Japan take measures such as watching internal training videos
that introduce examples of problems and the establishment and renewal of important laws,
thereby firmly instilling environmental management issues across a wider range of occupational
levels. In addition, periodic facilities inspections are carried out at all Group bases, the resultsof which are compiled into necessary measures from time to time and utilized.
Environmental audits are also conducted at major affiliated companies overseas in aneffort to uncover and prevent environmental risks.

Environmental Education System
TargetLecture Name
● Environmental Management Representative Training● Environmental Section Manager Training

Employees Having
Environmental
Responsibilities● New Environmental Section Manager Training● MELCO Seminar Environmental Courses- Waste Management- Energy Saving Law- Chemical Substances Management- Environmental Basic Guidance- Environmental Audits- ISO 14001- Introduction to Environmental Issues- Training Internal Auditors

Responding to Soil and Groundwater Pollution● e-Learning for All Employees, Mitsubishi Electric Group Environmental Management

As stated in our internal rules, the Mitsubishi Electric Group’s business sites (works,
laboratories, etc.) conduct environmental assessments such as when there is a change in landcharacteristics. These assessments are based on a survey method that complies with relevantlaws and regulations, and the necessary countermeasures or solutions are implemented inaccordance with the state of pollution.
In fiscal 2023, we assessed survey results and countermeasures regarding the condition ofsoil and groundwater due to land utilization for a total of eleven cases and have confirmedthat all cases were handled appropriately.
Regarding areas that were recognized as having groundwater or soil pollution problems in
the past, we purify the land using methods compliant with laws and regulations, and continue
to regularly report the results of our monitoring to relevant government organizations.

● Training for Specific Ranks

General
Employees- Training for New Section Chiefs for All Companies- Common Basic Training for New Employees● Environmental Course for Employees Dispatched Overseas● Initiatives to Live in Harmony with Nature and Foster Environmental Awareness- Preserving Biodiversity at Business Sites- Satoyama Woodland Preservation Project- Mitsubishi Electric Outdoor Classroom● Outdoor Classroom Leader Development/Satoyama Preservation Projects,
Mitsubishi Electric Outdoor Classroom Promotion Meetings

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Sustainability
Management

Appropriate Storage and Processing of PCB Waste
and Devices Containing PCBs

Environment

SocialGovernance

About
Mitsubishi Electric Group

Overview of the Four Types of Environmental Audits

Mitsubishi Electric conducts inspections at all bases that store PCB waste (waste containing
polychlorinated biphenyl) and/or handle devices containing PCBs at least once a year to
confirm the status of PCB storage and usage.
In fiscal 2023, we completed disposal of waste having a high PCB concentration that had
been stored by Mitsubishi Electric.
With respect to low-concentration PCB waste and devices containtaining PCBs, Mitsubishi
Electric and its domestic affiliates disposed of 522 units (114.5 tons) and 41 units (45 tons) ofdevices respectively in fiscal 2023.
Customers can confirm whether or not an electrical device manufactured by a Mitsubishi
Electric Group company contains PCB by referring to a list available on the corporate website.

Internal auditing at
business sites

Mutual auditing
between businesssites

Auditing of affiliatedcompanies

Auditing by theaudit division

Implementing
body

All Mitsubishi Electricbusiness sites (headoffice, branches,
works and R&D
centers) andaffiliated companies

All Mitsubishi Electricbusiness sites (headoffice, branches, works
and R&D centers)

Mitsubishi Electric(head office andworks)

Mitsubishi Electric(head office audit
division)

Subject ofauditsOther organizations
within the samebusiness site

Other business sites

Affiliatedcompanies

Mitsubishi Electricand affiliatedcompanies

Once a year

Once a year

Once every two to
three years

Once every threeyears

Frequency ofauditsISO Certification
Mitsubishi Electric has obtained company-wide multi-site (collective) ISO 14001:2015
certification. This certification structure was chosen as part of our attempt to strengthen
compliance by the company as a whole and to further strengthen our contribution to theenvironment through business operations based on our environmental plans.
Please refer to “ISO 14001 Certificate of Registration (Scope: Mitsubishi Electric
Corporation” for details of sites included in the multi-site certification. Among all Group
companies required to report on their environmental management system, roughly 50% haveacquired ISO 14001 certification.

ISO 14001 Certificate of Registration (Scope: Mitsubishi Electric Corporation)

Environmental Audits
The Mitsubishi Electric Group combines the multiple types of environmental auditing shown
below in order to carry out checks from various perspectives. These audits are performed ateach business site to confirm their compliance with laws and regulations, the operational statusof the environmental management system, and the progress of environmental action plans.

68Contents /About the ReportManagement Message

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Initiatives that contribute toaddressing social challenges

Sustainability
Management

Formulation Background and Concept
Environmental Plan 2023 (FY2022–2024) is the first environmental plan formulated based on
Environmental Sustainability Vision 2050. In order to achieve “carbon neutrality” and a “circular
economy,” we will promote innovation in development and accelerate the reduction of our
products’ environmental impact through their entire lifecycles. Since implementing this plan, we
have also started to track progress towards the target effective utilization rate of plastic waste.

Activity

About
Mitsubishi Electric Group

KPI

Target set in
Environmental Plan
2023

Fiscal 2023 results

Environmental contribution through products and services

Starting from fiscal 2022, we have been assessing the extent of reduction of
the environmental impact of newly developed products (or improvement rates
from previous models) over our entire product range, using indices specified foreach product.
We will centrally manage the energy consumption of each product and theenvironmental data of materials that are used as well as packaging materials,
and apply the PDCA cycle to raise our level of environmentally conscious
designs.

Expanding our contribution toCO2 emission reduction withnew products

Improvement rate of new
products over previous
models

1% or more in fiscal
2024

2.8％

Improving the usage rate ofrecycled plastics

Usage rate of recycledplastic (molding materials)

10% or more infiscal 2024

8.1％

Reduction of the environmental impact of our business activities＋
Expansion of environmental solutions and services
We will make energy-saving proposals for systems using integrated solutions,strive to extend the service life of equipment through maintenance, andpromote the modernization of elevators and escalators. We will also enhance
our resource recycling solutions, including the reuse of air-conditioning piping,and further expand the “closed-loop recycling” of plastics.

Reducing CO2 emitted from ourcompany

CO2 emission(Scopes 1 and 2)

Reduction of 30%
or more comparedto fiscal 2014

27% reduction

Improving the effective usage
rate of plastic waste

Effective usage rate ofplastic waste (in Japan)

90% or more infiscal 2024

92.5%

Using water effectively

Water consumption perunit of sales in high-risksitesReduction of 4% ormore by fisical2024 compared tofiscal 2020

16% reduction

39 areas

38 areas

Publicizing and sharing new values and lifestyles
Promoting the “Mitsubishi
Electric Outdoor Classroom”
and “Satoyama” Woodland
Preservation Project”＋

Business
Activities

GovernanceTargets for Environmental Plan 2023 and Fiscal 2023 Results

Environmental activities starting from product development

Services

SocialThe targets of Environmental Plan 2023 and the results of fiscal 2023 are as shown in thechart below. Steady progress is being made in reducing CO2 emission from our products andfrom our plants and offices. Toward the realization of a circular economy, we will promote
the effective utilization of plastics with an eye on achieving the FY2024 targets.
Note that the target for reducing CO2 emission from our company has been changed fromthe initial target that had been established at the time of formulation of the plan to reflect
the new fiscal 2031 target established in 2022.

Environmental Plan 2023

Products

Environment

Maintaining/improving measures to reduce the environmental
impact of business activities

Number of areas where
activities are held

We have set indexes and targets in order to measure the progress of product improvement
initiatives undertaken by the Mitsubishi Electric Group as a whole and by our businesssites. With respect to items that may require creative efforts by each business site, we willencourage participation from all business sites and employees, without setting across-theboard targets.

When constructing new buildings and introducing energy-saving equipment, we
will ensure strict compliance with all relevant energy-efficiency guidelines. We
will also continue to manage the reduction of energy usage by establishingtargets to improve the operations of our facilities. Furthermore, we will strive to
introduce renewable energy that is suited to each area, and strengthen ourgovernance of waste.

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Sustainability
Management

Measures Regarding “Environmental Contribution
through Products and Services” and “Pursuing
Business Innovations”

SocialGovernance

About
Mitsubishi Electric Group

Measures Regarding “Initiatives to Reduce
Environmental Impact of Business Activities”

Setting CO2 Emission Targets in Annual Plans and Formulating Measures

Business groups in charge of production works formulate CO2 emission reduction plans andmeasures as part of their annual business plans. Based on these plans, they strive to reduce
their CO2 emissions.

Making Our Environmental Contribution Visible and Setting Targets

We will make our environmental contribution visible and set targets by following the below
procedure. In doing so, we aim to instill in our employees awareness of environmentallyfriendly design, particularly among our designers, and to strengthen this awareness.

Thorough Efforts to Improve Energy Efficiency in Buildings and Facilities

We strictly observe the Building Energy-saving Guidelines when planning the constructionof new buildings or the refurbishment of existing structures, and the Production Facilities
Energy-saving Guidelines when introducing new production facilities at our factories.

(1) Define the operating conditions and evaluation items* for carrying out an environmental
performance evaluation of each product group (including systems and solutions).
(2) Centrally manage the environmental performance of products using an electronic system.
This will facilitate the collection and analysis of data.
(3) Set targets for each product group and assess their achievement at the development anddesign stages (during design reviews).
Further improvements will be made based on the results of the above.

Expanding the Introduction of Renewable Energy

We will expand the introduction of renewable energy using the following two approaches.
(1) Examine the best means for each region, including the installation of solar power
generation systems, examination of other renewable energy sources, and utilization of thegreen electricity certificate, and identify issues.
(2) Examine how to effectively utilize any surplus electricity from solar power generation,
including the use of self-consignment systems.

* Global warming countermeasures and resource-saving efforts are mandatory evaluation items. Other than these,
appropriate items are selected for each product group from recyclability, volume of chemical substances used,
and weight of packaging materials used.

Examples of Environmental Performance Evaluation Items
Classification

Environment

Effective Utilization of Plastic Waste

We will aim to achieve a 100% effective usage rate of used plastics by 2035. Toward thisend, we will promote the visibility of waste sources and the quantitative management ofplastic waste by setting target values. We will also survey and share information about
recycling contractors possessing the required technologies.

Evaluation item(1) Global warming(mandatory)

・Contribution to reducing greenhouse gas emissions
・Power consumption during operation(2) Resource saving(mandatory)

・Amount of recycled plastics used

(3) Recyclability

・Number of components
・Standardization of materials
・Non-use of flame retardants(4) Chemical substances

・Reduction of substances of concern contained in products(5) Packaging materials

・Packaging materials (plastics, etc.)
・Weight and volume of packaging materials

・Weight of product/ component

Measures Regarding “Publicizing and Sharing New
Values/Lifestyles”

・Improvement of ease of disassembly・Material labeling・Reduction of instruction manuals

We will further enhance our interaction with and contribution to local communities by holding
the Satoyama Woodland Preservation Project and the Mitsubishi Electric Outdoor Classrooms
in an integrated manner. We will also focus on environmental activities such as the cleaning of
local areas, which will also help to spread information about plastic pollution in the world’s seasand oceans. The outcomes of our initiatives in Japan and overseas will be published as andwhen needed, and the Group’s contribution to environmental improvement will be made visible.
From the perspective of proposing new lifestyles, we will begin our efforts from within
the Group, such as by making active use of remote working to save energy and optimize
work-life balance, and encouraging the use of reusable cups/bottles to establish the habitof being environmentally conscious in all aspects of everyday life. By having each employee
practice an environmentally conscious lifestyle, we hope to eventually spread these activities
to local communities.

Expansion of Recycled Plastic Use

In order to expand the use of recycled plastics, we will promote the development and trial
production of products using recycled plastics at relevant business sites.

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Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Environmental Considerations for Value Chain Management
Design/Development

Procurement

Production

Packaging/Transportation

Usage

Resource recycling initiatives

Disposal/
Recycling

Implementation of Environmentally Conscious
DesignTo contribute to the circular economy, we promote resource recycling initiatives throughproduct design for environment. Under the Environmental Plan 2023, we promote suchinitiatives mainly for plastic materials, which have a high environmental impact.

To ensure proper disclosure of product environmental information to outside the company
and to respond to environmental laws and regulations in each country, a productenvironmental information collection system (e-Pro System) has been established that
centrally manages such data as CO2 emissions from product use and the environmental dataof raw materials and packaging materials, among others. This system conforms to customer
requirements to provide product data. It also contributes to promoting eco-conscious design,
by enabling environmental assessment and LCA* to be implemented within the e-Pro systemand fed back to design departments.
Additionally, to strengthen product designs that respond to social needs for decarbonization,an eco-design subcommittee engages in internal activities for sharing best practices and otherinformation on laws, regulations, and eco-conscious designs in each country. It also examines
the validity of LCA calculations and examines product assessment items.

For plastic parts to be used in products, we can effectively utilize resources and help reduce
environmental impacts by increasing the use of recycled plastics and by reducing plastic use.
Under the Environmental Plan 2023, we use the following new indexes to evaluate theusage rate of recycled plastics and to promote resource recycling initiatives.

Evaluating improvements in the usage rate ofrecycled plastics

Utilization of a product environmental informationcollection system

Usage rate of recycled plastics (%)=
* Procurement volume at main sites* LCA: Life Cycle Assessment. Quantitative assessment of the environmental load generated from throughout thelife cycle of products and services.

LCA

Other
assessments

Head oﬃce &branch oﬃces
Sales companies,
etc.

Head oﬃce &branch oﬃces
Certiﬁcation bodies…

Product data reports

Product
environmental
data…

DesignProduct
environmental
data
Product environmental
information collection
system (e-Pro System)

Product datasubmission destinations
Feedback of analysis results

Utilization of product environmental data based on the product environmental information collection
system (e-Pro System)

71

Procurement volume of recycled plastics*
Procurement volume of plastics*

×100

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Sustainability
Management

Targets and achievements of our efforts to improvethe usage rate of recycled plastics

ExampleIn fiscal 2023, the usage rate of recycled plastics reached 8.1%, which fell short of thetarget for fiscal 2024. However, we are promoting the use of recycled plastics in a variety of
products, including vacuum cleaners and heat pump cooling and heating systems, and wewill continue to expand our initiatives.
We are also working to reduce plastic use and promoting initiatives for a variety of
products, including heat pump electric water heaters and general-purpose motors.

8.1%

Target: 10%(as of FY2024)

5%

FY2022Governance

About
Mitsubishi Electric Group evelopment and Operation of ZEB for Net-Zero Energy
DConsumption

In October 2020, Mitsubishi Electric completed theconstruction of a net-zero energy building test facility,
SUSTIE, on the premises of the Information Technology
R&D Center (Kamakura City, Kanagawa Prefecture). This
new facility conducts research and development aimed
toward the further spread of ZEBs *1. Looking ahead tothe future of ZEB, we are working to realize Mitsubishi
Electric’s original ZEB+ ® (zeb plus) *2 concept and to
ZEB testing facility “SUSTIE”
enhance the functionality of buildings, for example byincreasing the efficiency of working environments.
SUSTIE received the highest rating, five stars, and ZEB *4 under the BELS *3 energysaving certification; the highest rank of S from the CASBEE Wellness Office*5, which is acertification of health and comfort; and the highest platinum rank of the WELLBuildingStandard® (the “WELL certification”), an international certification program to evaluatebuilding environments. This makes SUSTIE the first in Japan to receive the highest ranks
from each of BELS, the CASBEE Wellness Office, and the WELL certificate*6.

We will continue to contribute to society by striving to increase the use of recycled plastics
and reducing plastic use.

8.9%

SocialResearch and Development of Products andTechnologies to Solve Environmental Issues

Under the Environmental Plan 2023, we are working to improve the usage rate of recycledplastics by 10% or more by fiscal 2024.

10%

Environment

FY2023

Usage rate of recycled plastics*1 ZEB: Net-Zero Energy Building*2 ZEB+®: Mitsubishi Electric’s unique initiative that aims to enhance building functionality by adding such values
as productivity, comfort, convenience, and business continuity to ZEB, and managing a building throughout its
lifecycle.
*3 Building-Housing Energy-efficiency Labeling System: An evaluation program for displaying the energy-saving
performance of buildings with high energy-saving efficiency in Japan.
*4 ZEB: The highest rank of the BELS certification system.
*5 Tools for evaluating the office parts of buildings with respect to how healthy they are for their users, building
specifications that help maintain and promote comfort, their performance, and initiatives.
*6 As of July 29, 2022, according to internal research.

Learn more about SUSTIE on our website.

SUSTIE (ZEB test facility)
ZEB test facility SUSTIE achieves platinum level WELL certification

72

Contents /About the Report

ExampleManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

Design/Development

 ynchronous Reluctance Motor system for railway vehicles
S
successfully saves energy for the first time in the world

Procurement

Social

Production

Packaging/Transportation

Usage

Disposal/
Recycling

Evaluating the Status of Environmental
Initiatives by Our Suppliers

Mitsubishi Electric collaborated with Tokyo Metro Co., Ltd. to install the synchronous
reluctance motor (SynRM) with high energy-saving performance and the synchronous
reluctance motor system (SynTRACS®)* composed of inverters to control the motor
on the model 13000 vehicles of the Hibiya Line on a trial basis in order to carry out along-term evaluation test of energy consumption during commercial operation, etc.,
confirming that they can save approximately 18% more energy than the induction
motor system.
The SynRM runs on the reluctance torque generated by the interaction between thestator’s magnetic field and the magnetic poles created by the difference in magnetic
resistance in the rotor iron core. Compared to the induction motors widely usedin railway vehicles, these motors feature lower rotor heat loss as well as superior
efficiency and mass characteristics.
This quantitative confirmation through commercial operation of the energy-saving
effects of a SynRM for railway vehicles is a world first.

The Green Accreditation System Is Introduced in
Consideration of Biodiversity and Environmental Risk
In April 2006, the Mitsubishi Electric Group introduced a Green Accreditation System basedon the Green Procurement Standards Guide established in September 2000 and revised inJuly 2020. Under the system, suppliers in and outside of Japan are evaluated with respect totheir status of acquisition of environmental management system accreditation, compliancewith statutory and regulatory requirements, management of chemical substances containedin products, and biodiversity initiatives, and suppliers that meet the Company’s criteria andstandards are certified. With regard to suppliers who do not meet the Company’s criteria andstandards, efforts are made to minimize environmental risks by engaging them in discussion
and providing guidance for improvement as necessary so they can make relevant corrections.
New suppliers are also asked to comply with the Green Procurement Standards Guide before
commencing transactions.
Major suppliers accounting for the top 80% of total purchase amount are evaluated once
every three years to renew their accreditation. In fiscal 2023, approximately 400 companies(including offices) were evaluated. 87% of them acquired and/or renewed their Green
Accreditation, but 46 companies that were not up to standard were subject to guidance andimprovement requests from Mitsubishi Electric.

* SynTRACS is a trademark of Mitsubishi Electric Corporation.

Green accreditation
Long-term evaluation of model 13000
vehicles of the Hibiya Line

About
Mitsubishi Electric Group

GovernanceInstallation of SynRM on a trial basis

73

Contents /About the Report

Design/Development

Management Message

Procurement

Production

Sustainability Highlights

Packaging/Transportation

Initiatives that contribute toaddressing social challenges

Usage

Sustainability
Management

Environment

SocialAbout
Mitsubishi Electric Group

GovernanceInitiatives to Reduce CO2 Originating from Energy
and Their Results

Disposal/
Recycling

Toward reducing CO2 originating from energy, we systematically introduce and update high-efficiency
and energy-saving equipment, improve operations, and extend energy conservation measures to
production lines. In fiscal 2023, these and other energy conservation-saving measures reduced
emissions by 18 kt, which, together with a reduction of 102 kt through the use of renewable energy
and other measures, resulted in a reduction of 120 kt compared to the previous year.
Half of the major achievements were realized through the introduction of high-efficiency
machinery, while activities to develop energy-efficient technologies implemented by an internal
technical committee also produced solid results. These activities also focus on visualizing andreducing the wasteful use of utilities and production equipment during nonoperational hours.
In the classification system (SABC assessment) based on Japan’s Energy Savings Law, 6 out
of 19 specific Group companies in Japan, including Mitsubishi Electric, have been recognized
as excellent business operators (S Class) in terms of energy conservation.

Reducing CO2 from Plants and Offices
Targets and Achievements
The Mitsubishi Electric Group is working to realize Environmental Sustainability Vision 2050
by promoting activities to reduce the emission of greenhouse gases (CO2, SF6, HFCs, PFCs
originating from energy) from plants and offices.
Under the Environmental Plan 2023 (FY2022–2024), we aim to reduce greenhouse gas
emissions by more than 30% by fiscal 2024 compared to fiscal 2014. Toward achieving thistarget, we will step up our efforts to thoroughly save energy in our plants and offices and to
expand the use of renewable energy.
Since we included small offices overseas, etc. in the calculations for fiscal 2022, CO2
emissions increased compared to fiscal 2021, but the greenhouse gas emissions for fiscal
2023 decreased to a CO2-equivalent of 1.05 million tons. In fiscal 2023, we accelerated our
initiatives to deploy photovoltaic equipment and to procure renewable energy as well as toreduce CO2 emissions originating from energy by deploying high-efficiency devices and to
reduce non-CO2 greenhouse gas emissions by switching to gases with a lower GWP.
In addition to establishing and operating energy-saving guidelines for buildings andproduction facilities, and promoting thorough energy saving in plants and offices, Mitsubishi
Electric is also placing a focus on utilizing renewable energy. Going forward, we will flesh out
further details of the road map for greenhouse gas reduction and promote measures for evengreater reduction, toward the steady achievement of our targets.

Initiatives to Reduce SF6, HFCs and PFCs, and the Results
Three types of non-CO2 greenhouse gases are emitted by the Mitsubishi Electric Groupin its business activities: SF 6 (sulfur hexafluoride), HFCs (hydrofluorocarbons), and PFCs
(Perfluorocarbons). SF6 is used inside gas-insulated switchgear for electrical insulation, as
well as in the etching process during semiconductor and liquid-crystal display production.
HFCs are used as refrigerants in air conditioners and refrigerators, while PFCs are usedduring the etching process in production of semiconductors and liquid-crystal displays.
In fiscal 2023, emissions were reduced by 93 kt due to the switch to lower GWP
refrigerants, operational improvements and continued gas recovery and capture, butemissions were 140 kt, partly due to the impact of increased production.
10,000 tons-CO2
Emission ofgreenhousegases otherthan CO2*2
CO2
emissions

26

20

16

15

13

13

117

105

105

97

92

102

2014

2018

2019

2020

2021

2022*

14
91
1

2023*1FY(Note) T he CO2 emission coefficient for electricity and global warming potential used in the calculations foreach fiscal year are as follows.
●C O2 emission coefficient for Japan: The figure published by The Electric Power Council for a Low Carbon Society●O verseas CO2 emission coefficient: Figure based on the figure published by International Energy Agency● Global warming potential: Figure published in IPCC’s Fifth Assessment Report*1: Expanded the calculation scope for CO2 emissions from FY2022.
*2: Emissions of SF6, HFCs, PFCs from production sites

CO2 emissions from plants and offices (Mitsubishi Electric Group)74

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialAbout
Mitsubishi Electric Group

GovernanceCase Example Net-zero greenhouse gas emission achieved by Mitsubishi
Electric Automation Manufacturing (Changshu) Co., Ltd.

Adoption of renewable energy
The Mitsubishi Electric Group utilizes renewable energy at 103 business sites. In addition, asof fiscal 2023, we had completed our transition to 100% renewable energy for the power
used at offices and plants (manufacturing facilities) at 19 business sites (9 in Japan (Mitsubishi
Electric: 7, affiliates: 2), 10 overseas).

In China, the manufacturing industry accounts for roughly 70% of total power
consumption, befitting its moniker as “the world’s factory.” In recent years, however, it
has begun promoting decarbonization of the manufacturing industry as a national policy,
based on a declaration to “achieve carbon neutrality (net-zero CO2 emission) by 2060.”
Mitsubishi Electric Automation Manufacturing (Changshu) Co., Ltd. (MEAMC), which
operates in China, has also been directing its efforts to save energy and reduce CO2,
taking advantage of the Mitsubishi Electric Group’s environmental solutions such as the
E-JIT* System. It has also introduced renewable energy, purchased renewable energy
certificates, and achieved net-zero greenhouse gas emissions in June 2021 as the firstplant to do so within the Group.
Greenhouse gas emissions
Utilization of environmental
solutions(energy savings, CO2 reduction)

Industrial Mechatronics
Systems WorksIntroduction ofrenewable energy,
purchasing renewableenergy certiﬁcates

Net-zerogreenhousegas emission0

Nakatsugawa Works(Center Factory,
Iida Facyory)
HQ*E -JIT (Environment & Energy Just in Time): Mitsubishi Electric’s comprehensive solution to simultaneously optimize
the efficiency of environmental measures, maximize energy efficiency, and strengthen production efficiency.

Nagoya Works(Center Factory, Shinshiro Factory, Kani Factory)

Case Example

Helping Customers to Reduce CO2 emissions using theenergy-saving analysis & diagnosis application EcoAdviser

The Mitsubishi Electric Group offers an application
called EcoAdviser to contribute to saving energy inentire plants. EcoAdviser comprehensively supports
customers engage in continuous energy saving
activities by visualizing the status of power usage by
each production facility and automatically analyzingenergy loss and its causes via AI.
Mitsubishi Electric Fukuyama Works has achieved
an annual energy savings of roughly 10% with certain
facilities by using this application. Moreover, the timerequired for data analysis and for identifying causes ofenergy loss has been reduced by approximately 90%
compared to conventional methods.

Business sites using 100% renewable energy (Mitsubishi Electric business sites in Japan)

75

Monitoring and analysis ofpower consumption status

EcoAdviser
Assessmentof current
energy use

Automatic
detection ofenergy loss

Supporting
the PDCA ofenergy saving
activities

Examinationof the eﬀects ofenergy saving
measures

Causaldiagnosis ofenergy loss

Contents /About the ReportManagement Message

Initiatives that contribute toaddressing social challenges

Sustainability Highlights

Sustainability
Management

In Environmental Plan 2023 that has been newly launched in fiscal 2022, we have set forth atarget of achieving effective plastic utilization rates of 90% or more in Japan by fiscal 2024.
This target is based on the Ocean Plastics Charter that was adopted at the G7 Summit andthe Resource Circulation Strategy for Plastics formulated by the Ministry of the Environment.
It also conforms to the Act on Promotion of Resource Circulation for Plastics that went into
force in April 2022.
Target values have been individually established for each site according to their actual(average) effective utilization rates from fiscal 2018 to 2020, instead of applying uniform
targets across all sites.

The Mitsubishi Electric Group specifies hazardous wastes as follows, monitors their output
and appropriately disposes of them in compliance with the laws and regulations of theregions in which our facilities are located. We also carry out material recycling and thermal
recycling where we can in order to reduce final disposal (landfill) volume.

100
90%

89.6%

25,00090
80

20,00070

15,00060

10,000

50

5,000

40

0

FY2019FY2020Recycled plastic

FY2021

FY2022

Non-recycled plastic

FY2023

FY2024(plan)

0 itsubishi Electric and affiliates in Japan: “Specially-controlled industrial wastes” specifiedMby the Japanese Waste Disposal Law● Overseas affiliates: Hazardous wastes defined by local laws and regulations●

Wastes containing polychlorinated biphenyl (PCB) are managed separately based on the “Lawconcerning Special Measures for Promotion of Proper Treatment of PCB Wastes, PCB Special
Measures.”In fiscal 2023, total hazardous waste emissions of Mitsubishi Electric Group companies inJapan amounted to 1,445 tons, of which 436 tons were recycled. That of overseas affiliates
totaled 5,192 tons, of which 3,251 tons were recycled.

Eﬀective utilization rate of plastic waste (%)

Generation of plastic waste (t)30,000

92.5%

87.4%

About
Mitsubishi Electric GroupSpecification, Disposal and Transportation ofHazardous Wastes

Toward improving the effective utilization rate of plastic waste, we conducted a survey ofthe present state of plastic waste at our business sites in fiscal 2022, and we are considering
ways to enforce proper sorting and to conduct a review of plastic recycling companies.
In fiscal 2023, 270,000 tons of plastic waste were generated, which was 9.5% more thanthe previous year, but the effective utilization rate of plastic waste in Japan reached 92.5%,
achieving the target for fiscal 2024.
Going forward, we will endeavor to further control plastic waste output by promoting
sharing of information on recycling companies among our business sites and visualization ofplastic waste. We will also strive to increase the ratio of material recycling for plastics, etc.
88.4%

GovernanceOverseas laws, regulations, and waste treatment situations vary according to country andregion. Therefore, we plan to address the plastic waste issue overseas by assessing theactual state of plastic waste and the status of material and chemical recycling. Then we will
establish targets suitable for each region’s situation and work toward achieving them.

Status of initiatives by the Mitsubishi Electric Group (in Japan)

90.7%

SocialStatus of initiatives by the Mitsubishi Electric Group(overseas)

Effective Usage of Plastic Waste

35,000

Environment

Eﬀective utilization rate

Plastic waste output, effective utilization rate, and target values

76

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric GroupHigh

Reducing Water Usage

High-risk site

Water risk interms of regional
characteristics

Managing Water Risk

100%
FY2020

Water risk is increasing worldwide with ever-more serious water shortages and pollution, as
well as abnormal weather caused by climate change. This also affects the production of bothraw materials and products, making corporate water risk management more important.
Water risk within the Mitsubishi Electric Group is evaluated as part of our corporaterisk management framework. The evaluation factors in the influence on stakeholders,
as well as the impact on ecosystems. We use the results of this assessment to prioritizecountermeasures for each business site and take clear action. We also take measures tominimize any impact on the surrounding environment, such as by ensuring compliance with
wastewater standards in each region. Furthermore, during product development, we evaluate
product impact on water sources and their lifecycles and strive to minimize the impact.

Water risk in terms of business characteristics High

Conceptual diagram of water risk analysis

84%
FY2023

Water usage per unit of sales in reference
to fiscal 2020 (five high-risk sites)

Status of Water Usage and Water Intake/Drainage/
Reuse

Status of Water Usage

The water usage of the Mitsubishi Electric Group in fiscal 2023 was 14,980,000m³, and theamount per unit of sales was 3.0m³/million yen.
In Japan, in addition to reusing water in production processes, we promoted the use of
greywater by treating wastewater for water purification to use as toilet water and as supply
water for cooling towers. In addition, our efforts to reduce groundwater consumption throughrainwater harvesting resulted in water consumption of 13,036,000m³, of which 3,969,000m³
was reused (reuse rate of 30%). Overseas, we focused on reducing water intake by reusing
water and expanding use of greywater.

Response to High-Risk Sites
Mitsubishi Electric Group uses WRI Water Aqueduct *1 and other risk assessment tools tokeep track of current and future water risk at business sites both in Japan and abroad(including the presence of water stress*2). Based on this data, overseas business sites withparticularly high water risks have been identified as high-risk sites in consideration of theirregional characteristics (i.e., seasonal high water/drought conditions of oceans and rivers
from which water is taken) and business characteristics (i.e., water usage accompanying
production activities).
To reduce water usage in high-risk sites (total of five sites), Environmental Plan 2023
sets forth a target of “reducing water usage per unit of sales by 4% or more by fiscal 2024
compared to fiscal 2020.” The five selected sites together account for roughly 5% of tot alwater usage by the Mitsubishi Electric Group as a whole and roughly 8% of total sales.
By distributing survey sheets to high-risk sites, we confirmed the status of water
conservation at facilities that use water and their efforts to reuse water. Additionally, basedon the results of these surveys, water faucets were replaced with water-saving faucets, andthe use of recycled water was promoted. As a result, water usage per unit of sales was
reduced by 16% in fiscal 2023 compared to fiscal 2020. By implementing effective waterrisk measures in consideration of regional characteristics and circumstances at each Groupbusiness site, we aim to co-exist in harmony with local communities.
We will continue to strengthen our efforts based on this policy with a focus on high-risk sites.

Status of Water Intake

At business sites of the Mitsubishi Electric Group, water is taken to be used mainly forcooling, cleaning and adjusting the concentration of water-based paints, and as a solvent, an
additive to materials and a heat medium. In fiscal 2023, the production increase associatedwith the resumption of economic activities that had fallen due to the COVID-19 pandemic
resulted in a water intake of 10,878,000m³, which is an increase of approximately 134,000m³
compared to the previous fiscal year.

Status of Water Drainage

To avoid exceeding standard values set for each drainage point, the Mitsubishi ElectricGroup’
s business sites have established even more stringent voluntary standards, based on
which water is treated before it is discharged. When there is a certain drainage standard inplace according to properties specific to the water area, such a standard is also incorporated
into our standards. Compliance with these standards is confirmed through measurements
conducted on a regular basis. Water drainage in fiscal 2023 was 8,467,000m³.

*1 WRI Aqueduct: Water risk assessment tool developed by the World Resources Institute (WRI).
*2 Water stress: Water stress levels can be defined by an index that indicates how close the relationship is
between the supply and demand of water. When maximum water availability per capita falls below 1,700 m³,
it is considered that water stress is present.

77

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Status of Water Reuse

Case Example

At Mitsubishi Electric Group’s business sites, not only fresh intake water, but water that has
been used once is reused after it is treated and recycled.
In fiscal 2023, since the closure of the liquid crystal display manufacturing plant resulted
in lower production of LCDs, which use a high volume of recycled water, water reuse acrossthe entire Mitsubishi Electric Group fell to 4,102,000m³, making the water reuse ratio 27%.
Meanwhile, at our sites in Southeast Asia, because we deployed water reprocessing facilities,
the water reuse ratio improved to approximately 6% from the previous fiscal year.

15.20

14.98

10.73

10.87

FY2022

FY2023

FY2022

FY2023

million m³

million m³

Water Usage (Mitsubishi Electric Group)

8.38

8.46

million m³

SocialGovernance

About
Mitsubishi Electric Group

Reducing water use by recycling wastewater

In Thailand, economic development has brought about a serious water shortage, andthere has been a rising awareness of the importance of water resources. In January
2020, the Thai Ministry of Industry has even issued a request to manufacturingindustries for their cooperation in reducing the amount of wastewater that isdischarged outside of factories and promoting efficient water use.
Under this situation, Mitsubishi Electric Automation (Thailand) Co., Ltd., an affiliatedcompany based in Bang Chan Industrial Estate in Bangkok, succeeded in reducing theamount of wastewater discharged outside the plant and in reducing 600 m3 of annual
use of water supply, by recycling wastewater at its wastewater treatment facility
and using the recycled water to nurture a wall garden (approx. 228 m2) installed in a
rest area within its site. Recognized for its environmental initiatives including the wall
garden, the company has been certified as an ECO Factory in Thailand.

million m³

Water Intake (Mitsubishi Electric Group)

million m³

million m³

29%

27%

FY2022

FY2023

FY2022

FY2023

Water Drainage Volume(Mitsubishi Electric Group)

Environment

Wall garden using diskidia (foliage plant)

Water Reuse Ratio(Mitsubishi Electric Group)

For the details of water usage, please refer to “Material Balance.”

Material Balance78

Mitsubishi Electric Automation(Thailand) Co., Ltd.

Contents /About the ReportManagement Message

Initiatives that contribute toaddressing social challenges

Sustainability Highlights

Sustainability
Management

Managing chemical substances released frombusiness sites

Emitted to atmosphere

Shipped as products

Mitsubishi Electric 140 tons
Aﬃliates in Japan 227 tons

Mitsubishi Electric 1,478 tons
Aﬃliates in Japan
558 tons

Mitsubishi Electric 2,783 tons
Aﬃliates in Japan 1,066 tons

For details on the release and transfer of chemical substances, please refer to “Material
Balance.”

Material Balance

2,036 tons

Disposed of as waste

1,015 tons

Mitsubishi ElectricAﬃliates in Japan

Recycled

Removal processes

Mitsubishi Electric 21 tons
Aﬃliates in Japan 36 tons

Mitsubishi Electric 188 tons
Aﬃliates in Japan 185 tons

57 tons

956 tons
59 tons

373 tons

Released into public waters

0 tonsMitsubishi ElectricAﬃliates in Japan0 tons0 tons●Regulated substances
are not released into
the soil or sent tolandﬁll.

Released into sewage system

1 ton

Mitsubishi ElectricAﬃliates in Japan

About
Mitsubishi Electric Group*1 PRTR Law: Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment
and Promotion of Improvements to the Management Thereof.
*2 PRTR: Short for Pollutant Release and Transfer Register. A system under which companies track the quantityof substances potentially harmful to human health or the ecosystem which are released into the environmentor transferred outside a business establishment through waste materials, and report this data to government
authorities. The authorities then use these reports and other statistics to produce estimates on release andtransfer, and announce them publicly.
*3 VOC：Short for Volatile Organic Compounds.
*4 RoHS Directive: Directive on the restriction of the use of certain hazardous substances in electrical andelectronic equipment.
*5 REACH Regulation: Regulation on registration, evaluation, authorisation and restriction of chemicals.

We utilize an internal system to manage the release and transfer of chemical substances
regulated by the PRTR Law*1 (PRTR*2) and VOC*3 that are released from our business sites.
In fiscal 2023, the Mitsubishi Electric Group (Japan) used 3,849 tons of chemical substances.
In fiscal 2024, we will update the system in accordance with the revision of the PRTR Law.
Sulfur oxide (SOx) and nitrogen oxide (NOx) are also managed using our voluntary standards
based on the laws and regulations of the regions where our business sites are located.

3,849 tons

GovernanceIn order to comply with EU RoHS Directive*4, EU REACH Regulation*5, and other regulations
on chemical substances contained in products, we globally register purchase information
for materials and parts in our internal system in order to manage them. We carry out
system updates as needed in anticipation of strengtheining regulations. and we work tosystematically reduce the usage amounts of chemical substances that are expected to be
subject to regulation.

Regulations on chemical substances to prevent pollution are becoming stricter by the year.
The Mitsubishi Electric Group is promoting initiatives to control and reduce emissions
through the management of chemicals released from our business sites and those containedin products.

Chemical substances
handledSocialManaging the chemical substances contained in productsManaging Chemical Substances

367 tons

Environment

1 ton
0 tonsFiscal 2023 Release and Transfer of Substances Regulated by the PRTR Law (Mitsubishi Electric Group
Companies in Japan)

79

Contents /About the Report

Design/Development

Management Message

Procurement

Production

Sustainability Highlights

Packaging/Transportation

Initiatives that contribute toaddressing social challenges

Usage

Sustainability
Management

To improve product logistics (distribution), we strive to eliminate irrational, irregular, andwasted efforts by visualizing logistics work by quantification, with the ultimate goal of
realizing Economy & Ecology Logistics (Eco-Logistics) that improve transport efficiency andeconomy and to reduce environmental impact.

Improvements in logistics are part of Mitsubishi Electric Group’s Just-In-Time improvement
activities. Our basic policy is to reduce the weight of transport packaging while ensuringthat products are delivered safely to customers. Based on this policy, we practice the 3Rs in
packaging: reduce (simplify packaging), reuse (more returnable containers and packaging),
and recycle (recycling of used packaging material).
At Mitsubishi Electric Group companies in Japan, simpler packaging is promoted, and theuse of returnable containers and packaging has been expanded. Owing to these initiatives,
the amount of packaging materials used was 55 kt, and the amount per unit of sales was
14.1 kg/million yen.
The amount of packaging materials used by our 23 overseas affiliates was 58 kt, and theamount per unit of sales was 43 kg/million yen.

FY2022

FY2023kt

Fiscal 2023 Achievements of Mitsubishi ElectricGroup Companies in JapanAt Mitsubishi Electric Group companies in Japan, the following measures continued to be
implemented throughout fiscal 2023. As a result, CO2 emissions totaled 97 kt-CO2, and theamount per unit of sales was 2.41 t-CO2/100 million yen.
Reviewing transportation routes
Switching from truck transportation to rail transportation (modal shift)● Reducing the number of trucks by improving load ratios (including Container Round Use)
●
●

98

kt

Usage of Packaging Materials (Mitsubishi
Electric Group Companies in Japan)

FY2022

About
Mitsubishi Electric Group

Governance

Basic Policies on Logistics (Distribution)

Achievements of Mitsubishi Electric Group
Companies in Japan in Fiscal 2023

55

SocialReducing CO2 from Logistics

Disposal/
Recycling

Reducing the Use of Disposable Packaging Materials

58

Environment

FY2023

Packaging Materials Used per Unit of Sales(Mitsubishi Electric Group Companies in Japan)

97

kt-CO2

kt-CO2t-CO2/
100 million
yen

FY2022

FY2023

FY2022

Total CO2 Emissions from Distribution(Mitsubishi Electric Group Companies in Japan)

For details of the usage of packaging materials, please refer to “Material Balance.”

2.61

2.41

t-CO2/
100 million
yen

FY2023CO2 Emissions per Unit of Sales from Distribution(Mitsubishi Electric Group Companies in Japan)

Regarding overseas affiliates, the amount of CO2 emitted by a total of 24 companies was 509
kt, amount per unit of sales amounted to 0.376 t-CO2/100 million yen.

Material Balance

For details of CO2 emissions from distribution, please refer to “Material Balance.”

Material Balance80

Contents /About the Report

Design/Development

Management Message

Procurement

Sustainability Highlights

Production

Packaging/Transportation

Initiatives that contribute toaddressing social challenges

Usage

Sustainability
Management

Environment

As more CO2 is emitted during product usage than during production, the Mitsubishi ElectricGroup has identified “reducing CO2 from product usage” and “contributing to reducing CO2
by product usage” as priority issues, and is working to improve its products.

3.0%

Evaluation of Reducing CO2 from Product Usage

2.0%

Power consumed during product use is viewed as corresponding to the amount of CO2
emissions resulting from generating that power. Increasing product energy efficiency can leadto a reduction of CO2 from product use.
Environmental Plan 2023 promotes initiatives to increase product energy efficiency by
evaluating improvements in product energy efficiency using the new indicator shown below,
beginning with models that are newly developed in fiscal 2022.

annual power consumption of previous models(as of FY2024)

FY2023

Annual energy consumed by newly developed models and average rate of
improvement of contribution to reducing to CO2 over previous models
Breakdown of products relevant to “reducing CO2 from product usage” and “contribution to reducing CO2 by product usage”

Among products of the Mitsubishi Electric Group, there are some that can help customers
reduce CO2 by being used. For example, using the Group’s heat pump system has greater
potential to reduce CO2 emissions compared to using combustion-type heating and hot water
systems. The Group’s inverters and power devices, as well, can reduce CO2 by being used, since
they contribute to enhancing the energy efficiency of the final products they are embedded in.
Contribution to reducing CO2 is calculated by comparing the use of a relevant product withthe use of an alternative product that would likely be used if the relevant product did not exist.
It is based on the following formula, with the alternative product as the reference product.

Evaluation item

Product examples

Indicator used to evaluate improvement
rate over previous models

Reduction in annual energy consumed
during product usage

Reducing CO2
from productusage

Monitoring, control, and protection
devices for power generation plants andsystems, railcar air-conditioning systems,
electrical equipment for railcars, movable
platform gates, vacuum circuit breakers,
elevators, escalators, intelligent transportsystems (ITS; ETC, smart interchanges), airconditioners, refrigerators, ventilation fans,electric fans, processing machines, LED
light bulbs, residential lighting fixtures, etc.
Turbine generators

Improvement of power conversion efficiency

Optical communication network systems,
wireless communication systems

Reduction in annual energy consumed
per product performance

Car electronic products

Reduction from the incorporation of
products with power energy use,
proportionally divided by weight

Water heating systems(heat pump electric water heaters,
electric water heaters)

Improvement of the contribution to
reducing CO 2 by using heat pumps, inreference to combustion-type heatingand hot water systems

Inverters, power devices(power modules, high power devices)

Improvement in the contribution to
reducing CO2 gained by the incorporationof products with lower power loss

Total heat exchanging ventilationequipment, electrical equipment for
railcars (control devices)

Improvement in the contribution to
reducing CO2 expected from theintroduction of said products

Contribution to reducing CO2 = (CO2 emission from using a “reference product”) –(CO2 emission from using the relevant product)

In Environmental Plan 2023, the improvement in contribution to reducing CO2 when acustomer chooses to use a Mitsubishi Electric product is calculated using the new indicator
shown below, beginning with models newly developed in fiscal 2022.

contribution to reducing CO2 by previous model

2.8%

Target 1%
FY2022

Evaluation of Our Contribution to Reducing CO2 by Product Usage

Improvement rate over previous model (%) =

1.7%

1.0%

× 100

(contribution to reducing CO2 by newly developed model– contribution to reducing CO2 by previous model)

About
Mitsubishi Electric Group

Under the Environmental Plan 2023, we are working to reduce CO2 emissions from productusage and to increase our contribution to reducing CO2 emissions due to product usage byan average of 1% in total compared to the previous model. In fiscal 2023, we achieved anaverage improvement rate of 2.8% compared to the previous model thanks to improvements
in a variety of products, including pressure ventilation fans and general purpose motors.
We will continue our efforts to pursue greater energy efficiency and contribution to reducing
CO2 throughout the process of developing new models as our contribution to society.

Contribution to Reducing CO2 from Product Usage

Improvement rate over previous models (%) =GovernanceTargets and Achievements of “Reducing CO2 from Product
Usage” and “Contribution to Reducing CO2 by Product Usage”

Disposal/
Recycling(annual power consumption of previous models –annual power consumption of newly developed models)SocialContribution to
reducing CO2
by product
usage

× 100

81

Contents /About the Report

Design/Development

Management Message

Procurement

Production

Sustainability Highlights

Packaging/Transportation

Initiatives that contribute toaddressing social challenges

Usage

Sustainability
Management

Disposal/
Recycling

Environment

SocialAbout
Mitsubishi Electric Group

Governance

Closed-Loop Recycling of Plastic

Recovery/Recycling of Used Home Appliances at aSpecialized Recycling Plant

Since 2010, the Mitsubishi Electric Group has been fully implementing “closed-loop recycling,”
in which plastic recovered from used home appliances is reused in Mitsubishi Electric’s new
home appliance products. Green Cycle Systems Corporation utilizes Mitsubishi Electric’s
original technology for advanced sorting of crushed mixed plastics to recycle them into highpurity plastics that are equivalent to virgin materials.

Coinciding with the enforcement of the Home Appliance Recycling Law, Hyper Cycle Systems
Corporation commenced operations in Ichikawa City, Chiba Prefecture in May 1999 as
the industry’s first recycling plant, and has since engaged in recycling home appliances.
Information obtained from this plant is fed back to product designs, to enhance therecyclability of products and to contribute to environmental conservation.

Manually dismantled plastic
parts(single type of plastic)

Metals(Iron,Copper,Aluminum)

Fine
grinding
andsorting

Crushing
andsorting

Wet specificgravity
separation

specific

Mixed plastics gravity＜1

Removal of non-plastics
Home appliances

specific gravity＞1
Removal of non-plastics

Electrostatic
separation−＋

Moldedproducts
PP flakes

Learn more about the Mitsubishi Electric Group’s home appliance recycling efforts andperformance on the following website.

Recycling Home Appliances

PP pellets
PS pellets
ABS pellets

Pelletizing

PS flakes

ABS flakes

Removal of brominatedflame retardants(substances
restricted by the RoHS
Directive)by X-ray sorting

The mixed plastic after crushing waste home appliances is recovered in high purity
for each type of plastic through sorting processes such as specific gravity separation,
electrostatic separation, and X-ray sorting, and is used again for new home appliances.

Flow chart of Mitsubishi Electric Group closed-loop plastic recycling

By utilizing our advanced plastics sorting technology cultivated over many years in the fieldof home appliance recycling, Mitsubishi Electric is promoting efforts to solve the problem ofwaste plastics in collaboration with companies in a variety of industries.

Co-creation with External Parties

For detailed information on closed-loop recycling, see the website “Plastic Recycling Comesof Age.”Plastic Recycling Comes of Age82

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Biodiversity Preservation Activities

Environment

SocialGovernance

About
Mitsubishi Electric Group

Understanding & Action
We will deepen our understanding of the importance of biodiversity and our relationship toit, and will actively and voluntarily take actions necessary to coexist in harmony with nature.

Biodiversity Action Guidelines

Cooperation
All companies in the Mitsubishi Electric Group, including overseas affiliates, will act as one, in
cooperation with local communities, NGOs and governments.

The Earth’s ecosystem is made up of diverse living organisms. All aspects of humancivilization benefit from this ecosystem, but at the same time, we affect it in both direct
and indirect ways. Today, damage to the ecosystem is said to be driving many species toextinction and otherwise eroding biodiversity.
In recognition of this, the Mitsubishi Electric Group has established Biodiversity Action
Guidelines, which add the perspective of biodiversity as a means for living in harmony withnature to the Group’s conventional measures against climate change and environmental
activities aimed at achieving resource recycling. These guidelines define the role of businessactivities in preserving biodiversity, and outline the Group’s efforts toward the developmentof a sustainable society through its business activities.

Biodiversity Preservation Measures at Business
Sites
Visualizing the Relationship between Business Activities and Biodiversity
to Implement Proper Action

To deepen employee understanding of biodiversity, Mitsubishi Electric has summarized therelationship between the company’s business activities and biodiversity in a chart as shownon the following page. Using this chart, the Mitsubishi Electric Group’s business sites both inJapan and overseas are renewing their awareness of relations between their own businessactivities and the biodiversity and natural environment of their surrounding region, and arelinking this awareness to concrete actions that contribute to communication with local
communities and to the preservation of biodiversity.

Resources & Procurement
Recognizing that we utilize globally procured natural resources such as minerals, fuels andplants, we shall aim to preserve biodiversity in Japan and around the world by carrying out
green procurement activities.
Product Design
In designing our products and services, we shall promote the effective utilization of resources
and the efficient use of energy, as well as aim to prevent the emission of substances thatpose a risk to the environment.
Manufacturing & Transportation
When commencing or making changes to land use, such as when con structing factories
or warehouses, we will give due consideration to protecting the biodiversity of the landin question. In manufacturing and transportation, we aim to minimize energy use, waste
generation and the emission of chemical substances.
Sales, Usage & MaintenanceIn our sales activities, we will work to promote better understanding among our customers of
the impact that product/service usage and maintenance can have on biodiversity.
Collection & Recycling
We will actively develop recycling technologies and apply them to collected end-of-life
products.

83

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Improving the Quality of Greenery in Line with Three Courses of Action

The Mitsubishi Electric Group has set forth three courses of action as guidelines for all
business sites. They are: (1) reducing negative impact on living creatures, (2) aiming
for more fruitful symbiosis with other living creatures, and (3) restoring the relationshipbetween employees and nature in the working environment. At each business site, actionplans provide for the preservation of local indigenous species, control of alien species, anddevelopment of green space in consideration of the surrounding ecosystem, to ensure these
initiatives are steadily addressed in all businesses.
Three Courses of Action
Courses of Action

Examples
1. Control development
pressure and alien species
pressure*

A
Reducing negative
impact on living
creatures

Biodiversity Preservation Activities
Activity
Mitsubishi Electric Outdoor
Classroom

Mitsubishi Electric
Outdoor Classroom“Satoyama” Woodland
Preservation Project“Satoyama” Woodland
Preservation Project<Japanese site>
Preserving biodiversity atbusiness sites

Preserving biodiversity atbusiness sites

Purpose

Details

Foster environmental
awareness among
employees

In natural classroom settings such as
woodlands, parks, waterways, and seacoasts,
employees who serve as leaders invite families
to experience nature to learn about theinterrelationship between living creatures.

Contribute to society,drawing on thevoluntary efforts of
employees

Employees strive to restore parks, woodlands,
rivers, and other natural areas located close tobusiness sites.

Activities centeredaround co-existencewith nature carriedout at business sites

Confirmation and appropriate management ofrare species, endemic species, and non-native
species; promotion of co-existence withnature; and gaining an understanding of ourinvolvement with the surrounding naturalenvironment.

(1) Assessment of impacts on living creatures(2) Alien species control(1) Disclosure of list of living creatures on premises

2. Call attention to andpreserve rare species andendemic species(2) Preservation of rare species and endemic
species

3. Manage pesticides,
preserve greenery andnatural resources(1) Control the killing/harming of living creatures(3) Cooperation in regards to conservation issues
for surrounding areas(2) Consideration to natural resources, such as
water and soil
(1) System to manage green space(2) Management of land used by flying organisms

B
Aiming for more
fruitful symbiosis
with other living
creatures

4. Set up functional greenery(4) Provision of continuity of greenery with areas
surrounding business sites(5) Contribution to biodiversity preservation
activities in areas surrounding business sites

5. Break away fromagricultural orientations
such as simplifying/specifying greenery

C
Restoring therelationshipbetween employees
and nature in
the working
environment(3) Development of priority land for greenery andliving creatures(1) Diversification/multi-stratification of vegetation(2) Management of greenery that accords with thecharacteristics of plants, etc.
(3) Contribution/consideration to regions

6. Proactively utilize
ecosystem services in theworkplace (break rooms,
individual floors)(1) Provision and utilization of opportunities for
cultural services

7. Change situation fromeveryone being
disinterested andunrelated to everyone
being involved(1) Education for understanding and promoting
action(2) Provision and utilization of opportunities for
supply services(2) Creation of relationships through the workplace
or work duties* Activities are carried out pursuant to the regulation on raising, planting, storing, carrying, or other handling ofspecified IAS in the Invasive Alien Species Act.

84

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Enhancing Corporate Value through a Long-term
Commitment to Environmental Initiatives

Specific initiatives for biodiversity preservation
The Mitsubishi Electric Group engages in initiatives that give specific consideration to all
species of living creatures. These initiatives include the Mitsubishi Electric Outdoor Classroom,
the Satoyama Woodland Preservation Project, and measures to reduce the impacts ofdevelopment pressure*1 and alien species pressure*2 on ecosystems. As the basis of these
initiatives, we have been promoting biodiversity preservation activities at business sites
since fiscal 2015, with a focus on improving the quality of greenery within the premises of all
business sites. The initiatives aim for all employees to make a direct contribution to regional/
urban ecosystems in areas around their site by working to preserve biodiversity at their own
workplace. It also encourages employees to take positive and voluntary action by regarding
biodiversity as a personally relevant issue.
As these initiatives have spread, since fiscal 2020, we have been working to establish a
structure to visualize the initiatives of each of Mitsubishi Electric’s domestic business sites
and consistently improve. In March 2020, we formulated the Biodiversity Guidelines (a checksheet) in line with the three courses. Since then, the implementation level of activities andthe quality of greenery at each of our business sites in Japan have been assessed in numbers
for quantitative monitoring. Each business site evaluates the situation of activities by fiscal
year based on the Guidelines and calculates the improvement rate in the implementationlevel compared to the baseline fiscal year. By visualizing the improvement and outcomesof measures, we endeavor to establish the activities and improve outcomes throughout theorganization.
Since fiscal 2022, we have been implementing the Guidelines at affiliated companies inJapan in order to widen their scope.

Since it takes many years to maintain and improve biodiversity, we must work continuously
to this end.
The Mitsubishi Electric Group is committed to contributing to the attainment of the SDGs *1
and to implementing biodiversity preservation activities as part of its business activities.
Through initiatives related to the above, we will further contribute to preserving regional
ecosystems, and by earning respect and trust from local communities, we will strive toenhance our corporate value.
*1 S
 DGs (Sustainable Development Goals): Sustainable development goals to be achieved by 2030 included in the2030 Agenda for Sustainable Development adopted by the United Nations General Assembly in September 2015.

Dialogue

Local
communities
residents/
municipalities(*1 Development pressure: An action resulting in the destruction of habitats. The construction of a new businesssite and development (including that in the supply chain) intended to extract natural resources are deemed assuch behaviors. One such example is when the use of water by operations affects the surrounding area, thesource of water, and subsequently the habitats of living creatures.
*2 Alien species pressure: When ditches, greenery at the side of buildings, and hedges are created, non-native
species of insects, vegetation, etc. may be introduced. The unintentional transfer of living creatures could posea threat to the habitats of indigenous species or trigger genetic pollution.

)

Businesssites of the
Mitsubishi
ElectricGroup

DialogueContributing to local
communities throughour initiatives

Furtherenhancement ofcorporate value

Maintenance andimprovement oflocal ecosystems

Employees
andtheir families

Correct
understanding
and actions
for biodiversity

Activities Contributing to Local Ecosystems

85

Guidance

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environmental Data

FY 2021

FY 2022

FY 2023

2,111 kt

2,249 kt

2,495 kt

124 kt137 kt130 kt

Japan

56 kt

59 kt

54 kt

Overseas

68 kt

78 kt

76 kt

Weight of all products sold*5

Weight of packaging materials*6

FY 2021

FY 2022

FY 2023■ Emissions (from manufacturing)
Emissions into the atmosphere■ Manufacturing
Materials*1

Total energy input*2*3
Electricity*3
Traditional electric power
Electric power from renewableenergy sources
City gas

2,420 kt

2,570 kt

2,920 kt

19,030,000 GJ

21,150,000 GJ

20,920,000 GJ

1,740 GWh

1,912 GWh

1,894 GWh

1,715 GWh

1,870 GWh

1,624 GWh

25 GWh42 GWh270 GWh34,930,000 m³

LPG*3

Other greenhouse gases

37,960,000 m³

Greenhouse gas emissions (CO2-equivalent)

3,725 t3,989 t3,780 t10,484 kl

19,811 kl

18,659 kl

6,720 t8,217 t9,271 t152,060,000 m³

149,800,000 m³

Intake103,140,000 m³

107,440,000 m³

108,780,000 m³

Reuse

45,470,000 m³

44,630,000 m³

41,020,000 m³

1,048 kt-CO2

1,161 kt-CO2

1,046 kt-CO2

CO2*7*9923 kt-CO2

1,033 kt-CO2

910 kt-CO2

HFCs*8*937 kt-CO2

35 kt-CO2

19 kt-CO2

PFCs*8*922 kt-CO2

24 kt-CO2

22 kt-CO2

SF6*8*967 kt-CO2

68 kt-CO2

95 kt-CO2

Controlled chemical substances*4

814 t

389 t

515 t

Volatile organic compounds

792 t

645 t

882 t

NOx

25 t

28 t

40 t

SOx

1 t

0.6 t

0.3 t

Chemical substances

35,780,000 m³

148,600,000 m³

*9

About
Mitsubishi Electric Group

Governance■ Products

Manufacturing (Input)

Water usage

SocialManufacturing (Output)

Material Balance

Oil (crude oil equivalent)

Environment

Discharge into water
Water

3,153 t4,236 tVolatile organic compounds

2,018 t2,123 t2,440 t8,467,000 m³

Controlled chemical substances*4

8.0 t

7.2 t

5.7 t

BOD

101 t

65 t

81 t

COD

109 t

57 t

73 t

187,137 t

269,306 t

292,814 t

181,689 t

263,197 t

286,177 t

5,448 t6,109 t6,637 tWaste treatment subcontracted out

101,605 t

84,639 t

134,100 t

757 t

824 t

835 t

Amount recycled

147,258 t

69,984 t

223,258 t

Final disposal

121 t

1,562 t1,561 t

Japan

28 t

445 t

117 t

Overseas

93 t

1,117 t1,445 t0.02 ％

0.24 ％

0.06 ％

0.1 ％

1.3 ％

1.4 ％

EmissionsNon-hazardous waste

2,614 t8,386,000 m³■ WasteChemical substances
Controlled chemical substances*4

8,068,000 m³

Chemical substances

Hazardous waste
In-house weight reduction*1 Total value for shipping weight of products, plus amount of product packaging materials used, plus total
amount of waste.
*2 Includes electricity, city gas, LPG, oil, etc.
*3 Figures include commercial vehicles and other company-owned vehicles (the figure for FY2021 includes thenumber of such vehicles for sites in Japan only, while the figures for FY2022 and FY2023 include the numbers
for sites in Japan and overseas).

Final waste disposal ratio (Japan)

Final waste disposal ratio (Overseas)*4 Japan: Substances subject to Japan’s PRTR law. Overseas: Controlled chemical substances designated by
Mitsubishi Electric and used in amounts of 18 kg or more.

*5 Shipping weight of products.
*6 Total of disposable and returnable packaging materials.
*7 C
 O2 emission coefficient for electricity calculated in reference to: <Japan> figures published by the Federationof Electric Power Companies; <Overseas> figures published by International Energy Agency.
*8 Global Warming Potential (GWP) for greenhouse gases other than CO2 is calculated in reference to figures
published in the IPCC 5th Evaluation Report.
*9 Figures for FY2022 have been re-calculated.

86

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Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Transporting (Input)
FY 2021Japan
Overseas

FY 2022

FY 2023

5,679 kl

5,725 kl

6,091 kl

5,675 kl

5,725 kl

6,091 kl

4 kl

0 kl

0 kl

55,635 kl

58,778 kl

57,535 kl

Japan

41,969 kl

48,183 kl

41,185 kl

Overseas

13,666 kl

10,595 kl

16,350 kl

Fuel for rail (electricity)
Japan
Overseas

Fuel for air transport (jet fuel)1.3 GWh

1.5 GWh

1.4 GWh

1.3 GWh

1.5 GWh

0 GWh

0 GWh

0.0 GWh81,514 kl

Energy consumed during
product use*13*15

FY 2021

FY 2022

FY 2023

311,016 GWh

304,427 GWh

336,341 GWh

FY 2021

FY 2022

FY 2023

154,650 kt-CO2

151,769 kt-CO2

168,568 kt-CO2■ Emissions
Greenhouse gas emissions during
product usage (CO2-equivalent)*14*15*13 The total amount of power consumed (estimated value) over the operating periods of finished products whenusing products targeted for CO2 reduction. The operating period, which is determined for each product, is set
using the product’s statutory useful life (years), its number of operating years based on its design, statisticalvalues, and other values.

525 kl397 kl333 kl81,117 kl

91,608 kl

20,833 kl

44,838 kl

69,255 kl

511 kl602 kl558 kl20,322 kl

44,236 kl

68,697 kl*14 CO2 emission during product usage (CO2 equivalent): Sum of CO2 emitted during the operation of final
products. CO2 emission coefficient for electricity calculated in reference to: <Japan> figures published by theFederation of Electric Power Companies; <Overseas> figures published by International Energy Agency.
*15 Figures for FY2021 and FY2022 have been re-calculated.

*10 Figures for overseas affiliated companies include transportation between countries.

Transporting (Output)
FY 2021

FY 2022

FY 2023■ Emissions*11 *12CO2

About
Mitsubishi Electric Group

Using (Output)

91,941 kl

59,512 kl

Japan
Overseas

1.4 GWh

60,037 kl

Japan
Overseas

Governance■ Energy Consumption

Fuel for trucks (gasoline)

Fuel for marine transport (bunker oil)SocialUsing (Input)■ Sales and Logistics*10

Fuel for trucks (diesel)

Environment

384 kt-CO2

515 kt-CO2

607 kt-CO2

Japan

124 kt-CO2

141 kt-CO2

126 kt-CO2

Overseas

260 kt-CO2

375 kt-CO2

481 kt-CO2*11 Figures for overseas affiliated companies include transportation between countries.
*12 The sum of these figures and CO2 emissions from procurement/logistics (1 kt-CO2) make up Scope 3 Category
4 emissions (see next page).

87

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Reducing Greenhouse Gases Emitted in the
Value Chain
Accounting (kt-CO2）(Bottom row: Total emission ratio)

Category

FY 2021

FY 2022

242（0.1%）

276（0.2%）FY 2023272（0.1%）

Location based*3
Scope 1 + Scope 2
(Location based)

732

819

679

Calculated using the power emission coefficient based on the contract★

806（0.5%）

885（0.6%）

774（0.4%）

Calculated using the average emission coefficient of power
generated in the area

1,048
（0.6%）

1,161（0.7%）

1,046（0.6%）

Coverage: 99% (energy usage based)

★

Group

Japan*11 Overseas

Water usage (water intake plus reuse)

14,98013,036

1,943

727

937

115

41

47

76

Intake10,878

9,068

1,810

668

880

113

41

46

62

China

Southeast Asia Europe

US

Latin America others*12■ FY 2023 results

Accounting Summary*1★

Unit: 10,000 m³
Item

Scope 2：Indirect emissions associated with use of electricity and heat purchased by our company*4Market based

About
Mitsubishi Electric Group

Governance

Scope 1：Direct emissions from fuel use and industrial processes at our company*2*3★

SocialAmount of Water Intake/Drainage/Reuse

The “ ★ ” symbol denotes Mitsubishi Electric Group greenhouse gas emissions for which third-party verification has
been carried out by SGS Japan Inc.
Scope

Environment

Surface water

86

85

1

0

0

0

0

0

0

Groundwater

5,422

5,395

27

0

8

3

0

0

16

Seawater

0

0

0

0

0

0

0

0

0

Water discharged during development/mining processes

2

2

0

0

0

0

0

0

0

Water purchased from third parties

5,369

3,586

1,783

667

872

110

41

46

46
34

Drainage volume

8,467

7,122

1,345

580

556

101

40

35

Surface water

2,489

2,487

2

0

0

2

0

1

0

Groundwater

1,159

1,159

0

0

0

0

0

0

0

Seawater

Scope 3：Indirect emissions outside the scope of our company’s operational activities*4

54

54

0

0

0

0

0

0

0

4,765

3,422

1,343

580

556

99

40

34

34

Water reused

4,102

3,968

133

59

57

3

0

1

14

Water consumption (water intake minus drainage volume)

2,411

1,947

464

87

325

11

1

11

29

Reuse ratio (reused/used) (%)

27

30

7

8

6

2

0

1

18

Water usage per unit of sales (Water usage/sales) (m³/million yen)

3.0

―

―

―

―

―

―

―

Water discharged into third-party drainage facilities

9,454（5.8%）

10,099（6.3%）

11,947（6.5%）

Emissions associated with activities up to the manufacturingof materials, etc. relating to raw materials, parts, purchased
products, and sales*6

Category 2
Capital goods

334（0.2%）

549（0.3%）

1,048（0.6%）

Emissions generated by the construction and manufacturingof own capital goods

Category 3
Fuel- and energy-related activities*5

146（0.1%）

166（0.1%）

148（0.1%）

Emissions associated with procurement of fuel necessary for
power generation, heat supply, etc. and power such as
electricity supplied by other parties■ FY 2022 results

Category 4
Upstream transportation and distribution

386（0.2%）

513（0.3%）

607（0.3%）

Emissions associated with logistic processes up to thedelivery to our company of materials, etc. relating to raw
materials, parts, purchased products, and sales*7

Water usage (water intake plus reuse)

15,206

13,302

1,904

752

899

124

48

47

34

Intake10,744

8,948

1,796

670

881

121

48

47

29

Category 5
Waste generated in operations

0.4（0.0%）

0.4（0.0%）

0.6（0.0%）

Emissions associated with transporting and processing waste
produced by our company*8

Category 1
Purchased goods and services*5★

Category 6
Business travel*5★

4.8（0.0%）

6.1（0.0%）

15.7（0.0%）

Emissions associated with employee business travel*9

Category 7
Employee commuting*5★

40（0.0%）

36（0.0%）

41（0.0%）

Emissions associated with employees commuting to andfrom their respective workplaces*10――

Emissions associated with operation of leased assets hiredby our company (Calculated by Mitsubishi Electric under
Scope 1 and Scope 2)

5.9
Category 9
Downstream transportation and distribution*5 （0.0%）

5.2（0.0%）

5.9（0.0%）

Emissions associated with the transportation, storage, cargohandling and retailing of products

Category 10
Processing of sold products*5

2.4（0.0%）

2.2（0.0%）

Emissions associated with the processing of interim products
by business operators

Category 8
Upstream leased assets

Category 11
Use of sold products*3―

2.1（0.0%）★

5.6（0.0%）

5.3（0.0%）

5.4（0.0%）

Emissions associated with the transportation and processing ofproducts for disposal by users (consumers/business operators)*6

Category 13
Downstream leased assets

13（0.0%）

12（0.0%）

14（0.0%）

Emissions associated with operation of leased assets

Category 14
Franchises

―

―

―

Emissions at companies operating as franchises (Notapplicable to Mitsubishi Electric)

Category 15
Investments

38（0.0%）

26（0.0%）

26（0.0%）

Emissions associated with operation of investments

Scope3 total

163,223 159,711 182,427（99.4%） （99.3%） （99.4%）

Total（Scope 2 is location based.)

164,271 160,872 183,473（100.0%）（100.0%）（100.0%）*1 Excerpt from Basic Guidelines published by the Japan’s Ministry of theEnvironment and Ministry of Economy, Trade and Industry.
*2 CO2, SF6, HFCs, and PFCs emissions associated with the use of citygas, heavy oil, etc., and with product manufacturing.
*3 CO 2 emission coefficient for electricity calculated in reference to:<Japan> annual figures published by the Federation of Electric Power
Companies; <Overseas> annual figures published by International
Energy Agency.
*4 CO2 emissions associated with the use of electricity, etc.
*5 Figures have been calculated using the CO2 emission coefficient foreach fiscal year specified in the “emission in tensity database forcalculating greenhouse gas emissions of the organization throughout
the supply chain.”

3,067

2,057

1,010

209

757

16

0

28

0

5,336

5,310

26

0

7

5

0

0

14

Seawater

0

0

0

0

0

0

0

0

0

Water discharged during development/mining processes

0

0

0

0

0

0

0

0

0

Water purchased from third parties

2,341

1,582

759

461

117

100

48

19

15

Drainage volume

8,385

7,221

1,164

524

489

68

43

34

7

Surface water

3,930

3,928

1

0

0

1

0

0

0

Groundwater

43

29

13

3

0

5

1

4

0

Seawater

0

0

0

0

0

0

0

0

0

Water discharged into third-party drainage facilities

152,794 148,292 168,568 Emissions associated with the use of products by users（93.0%） （92.2%） （91.9%） (consumers/business operators)

Category 12
End-of-life treatment of sold products*5

Surface water
Groundwater

4,412

3,263

1,149

521

488

61

42

30

7

Water reused

4,463

4,354

109

83

18

3

0

1

4

Water consumption (water intake minus drainage volume)

2,359

1,727

632

146

392

53

6

13

22

Reuse ratio (reused/used) (%)

29

33

6

11

2

2

0

1

13

Water usage per unit of sales (Water usage/sales) (m³/million yen)

3.4

―

―

―

―

―

―

―

Water usage (water intake plus reuse)

14,86013,143

1,717

736

868

28

48

36

―

Intake10,314

8,734

1,580

639

831

26

48

36

―

■ FY 2021 results

Surface water

2,998

2,022

976

217

733

1

0

25

―

Groundwater

5,185

5,178

7

0

7

0

0

0

―

Seawater

0

0

0

0

0

0

0

0

―

Water discharged during development/mining processes

0

0

0

0

0

0

0

0

―

Water purchased from third parties

2,130

1,534

596

423

90

25

48

11

―

Drainage volume*6 Excludes some regions.
*7 CO2 emissions associated with product distribution/circulation(sales distribution). Subject to accounting: 53 companies(manufacturing companies).
*8 CO2 emissions associated with transportation of waste (waste
distribution). Subject to accounting: Mitsubishi Electric.
*9 Results for Japan. Excludes CO2 emissions associated with actualuse of taxis and accommodation.
*10 Assuming that all employees use passenger rail services.

8,068

6,986

1,082

498

493

13

48

29

―

Surface water

3,925

3,925

0

0

0

0

0

0

―

Groundwater

38

29

8

3

0

1

0

4

―

Seawater

0

0

0

0

0

0

0

0

―

4,105

3,032

1,074

495

493

12

48

25

―

Water reused

Water discharged into third-party drainage facilities

4,547

4,410

137

97

38

2

0

0

―

Water consumption (water intake minus drainage volume)

2,246

1,748

498

141

337

13

0

7

―

Reuse ratio (reused/used) (%)

31

34

8

13

4

7

0

1

―

Water usage per unit of sales (Water usage/sales) (m³/million yen)

3.5

―

―

―

―

―

―

―

―

*11 Sum of Mitsubishi Electric Corporation (non-consolidated) and affiliated companies in Japan.
*12 Areas classified as “others” from FY2022 onward due to an increase in the number of business sites in scope for the survey.

88

Contents /About the ReportManagement Message

Sustainability Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Verification Statement

Environment

SocialGovernance

About
Mitsubishi Electric Group

Environmental Accounting
Environmental Conservation Costs

In order to ensure reliability of our reports, Mitsubishi Electric gets third party verification by SGS
Japan Inc. for our greenhouse gas emissions, energy consumption and water usage and drainage.

Third Party Verification Report (Environmental Disclosure of 5 items)

FY 2021

FY 2022

Costs

CapitalInvestment

42

68

Pollution
prevention

3

Globalenvironmental
conservation

FY 2023
Costs

52

64

55

68

14

7

12

2

13

Updating of processing facilities
for emissions, sewage water,
deodorization, etc.

35

25

39

25

50

28

Updating of air conditioning
equipment, switch to low
fuel-consumption vehicles

Resource
recycling

5

29

6

27

3

28

Consignment of the disposal ofwaste, construction of additional
recycling facilities

Upstream anddownstream
production

0.0

2

0.1

2

0.0

2

Sewage expenses, reduction of
the environmental impact of
packaging

Management
activities

0.8

16

0.3

18

0.4

20

Personnel expenses, employee
education

R&D activities

0.9

39

0.8

26

0.6

44

Improvement of energy/
resources efficiency, designs to
reduce size and weight

Community activities

0.0

0.5

0.0

0.6

0.0

0.6

Outdoor classrooms, Satoyama
woodland preservation
activities, cleaning and greening
activities in the suburbs

Environmental
damagecountermeasures

0.0

0.2

0.0

0.2

0.0

0.1

Purification of contaminatedsoil/groundwater, measuringcontamination levels

44

126

54

111

56

135

Total

Environmental Conservation Benefits
FY 202189

Main Costs

Costs

CapitalInvestment

Business area
activities

CapitalInvestment

Unit: 100 million yen

FY 2022

FY 2023

Unit: 100 million yen
Main Costs

Earnings

37

68

72

Profit on sale of valuable
materials (mainly metals)

Savings

7

13

12

Results of energy savings, reuseof materials/water, andintroduction of equipment to
reduce the input of resources

Total

44

81

84