SUSTAINABILITYDATABOOK
2023
For the Year Ended March 31, 2023

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Contents

Sustainability Management
Environment
Society
Governance
Data Section

03 Editorial Policy
05 Sustainability Management06

CEO MESSAGE

07

Sustainability Framework

09

Material Issues

16

Stakeholder Engagement

17

Initiatives and Groups We Participate In

18

Recognition from Society

19 Environment
20

Environmental Management

28

Climate Change

35

Water Risk

37

Biodiversity

42

Waste/Pollution

43 Society

100 Governance44

Human Rights

101 Corporate Governance49

Ensuring Diversity, Equity,and Inclusion in the Workplace

109 Risk Management

54

Human Resources Development

63

Talent Attraction and Retention

70

Occupational Safety and Health77

Product Safety

83

Innovation

86

Customer Relationship Management

91

Supply Chain Management

96

Social Contribution Activity

115 Compliance

123 Data Section
124 Environment
131 Society
142 Governance
143 Third-party Assurance

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Editorial Policy

Sustainability Management■ Reason for Publishing and Positioning of This Report (SUSTAINABILITY DATABOOK)

Environment
Society
Governance
Data Section

Based on the Group Statement, which sums up the Group’s management principles, MHI Group aims to continue its development alongside the changing world by responding to
the present and future issues and needs of society with a variety of technologies and services.
To enhance the understanding of our philosophy among all of our stakeholders, we have integrated financial information, including management strategy and operating
performance, with non-financial information related to the Group’s environmental and social activities into the MHI REPORT (MHI Group Integrated Report). This SUSTAINABILITYDATABOOK serves as a supplement to the MHI REPORT, summarizing non-financial information and presenting it along with detailed performance data to stakeholders who possessa vested interest in the sustainability initiatives of the Group.

■ Structure of Information Disclosure

The MHI REPORT contains financial and non-financial information that is important to understanding MHI Group.
The SUSTAINABILITY DATABOOK and the Company SUSTAINABILITY website contain more detailed non-financial information.
Financial Information
MHI REPORT

Important

MHI FINANCIALREPORT
Detailed(Exhaustive)

Non-Financial Information

Website“INVESTORS”

SUSTAINABILITYDATABOOK

Website“SUSTAINABILITY”

MHI REPORT, MHI FINANCIAL REPORT: https://www.mhi.com/finance/library/annual/
SUSTAINABILITY: https://www.mhi.com/sustainability/■ Coverage

Target organization: In principle, the scope of reporting includes MHI and its consolidated subsidiaries.
The scope of some information is for MHI on a non-consolidated basis, in which case it is identified as such.
Target period: From April 1, 2022, to March 31, 2023 (includes information on some activities after March 31, 2023)
Reporting cycle: Annual
Date published: December 2023 (Partially revised in July 2024)

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Editorial Policy

Sustainability Management■ Third-party Assurance

Environment

To enhance the reliability of data, we have received third-party assurance.

Third-party Assurance ▶ P.143(Note) Environmental and Social data subject to third-party assurance is indicated with ✓.

Society• Assurance Statement on Materiality Disclosure•A ssurance Statement on Environmental and Social Data

Governance■ Reference Guidelines

Data Section• Value Reporting Foundation (VRF) International Integrated Reporting Framework• Global Reporting Initiative (GRI) Sustainability Reporting Standards(Reference) GRI Guidelines Comparison Tables
https://www.mhi.com/sustainability/management/report_gri.html• International Financial Reporting Standards (IFRS) Foundation “IFRS Sustainability Disclosure Standard”•M inistry of the Environment of Japan Environmental Reporting Guidelines (2018 version)•N ational Standards Bodies Guidance on social responsibility ISO26000•T ask Force on Climate-related Financial Disclosures (TCFD)■ Forward-Looking Statements

Forecasts regarding future performance presented in these materials are based on judgments made in accordance with information available at the time this presentation was
prepared. As such, these projections involve risks and uncertainty. For this reason, investors are recommended not to depend solely on these projections for making
investment decisions.
It is possible that actual results may change significantly from these projections for a number of factors.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​>Sustainability Management
CEO MESSAGE
Sustainability Framework
Material Issues
Stakeholder Engagement
Initiatives and Groups We
Participate In
Recognition from Society

Environment
Society
Governance
Data Section

Sustainability Management
06 CEO MESSAGE

16 Stakeholder Engagement
16

Basic Approach

07 Sustainability Framework
07

Sustainability and CSR Policy

08

Sustainability Promotion System

09 Material Issues
09

Basic Approach/Promotion System

10

Processes of Identifying Material Issues

11

Material Issues, KPI, Progress

17 Initiatives and Groups We Participate In
18 Recognition from Society
18

Status of Inclusion in ESG Indexes/External Assessment of Sustainability

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

CEO MESSAGE>Sustainability Management
CEO MESSAGE
Sustainability Framework
Material Issues
Stakeholder Engagement
Initiatives and Groups We
Participate In
Recognition from Society

Environment
Society
Governance
Data Section

Contributing to the Realization of a Sustainable Society
through Business Activities
MHI Group has a corporate mission to “integrate cutting-edge technology into expertise built up overmany years to provide solutions to some of the world’s most pressing issues and provide better lives.”
Global warming, resource depletion, and human rights violations are among the main social issues inrecent years, and the values and purpose required of companies by society have been changing.
Increasingly, people expect corporate management to be practiced with an awareness of sustainability on
a global scale.
MHI Group has identified materiality to be addressed on a medium- to long-term basis in order toraise corporate value through solutions to these types of contemporary issues in society. One is to provide
energy solutions to enable a carbon neutral world. We have declared our carbon neutral goal as MISSIONNET ZERO. The goal calls for reducing CO2 emissions from Group businesses by half by 2030 and to zeroby 2040, when including contributions to emission reductions from use of the Group’s products bycustomers. In addition, MHI Group is enhancing its human capital management and has started humanrights due diligence.
Previously, we published the annual ESG DATABOOK to report on the progress of our sustainability
initiatives. This year we have updated it and renamed it the SUSTAINABILITY DATABOOK in order to gain
the understanding of all stakeholders regarding our management strategies, which are aimed at thesustainability of both society and the Company Group. These changes make the book easier to readand allow it to convey the Group’s thinking, policies, systems and initiatives in a systematic,
easy-to-understand manner.
The book offers an expanded range of information on human capital management and human rights
due diligence, and, regarding risk management, it conveys how we are strengthening initiatives using MHIGroup technologies for business continuity management (BCM) and cybersecurity.
As we engage with our various groups of stakeholders, going forward we will continue to contribute to
the realization of a sustainable society and work for the sustainable growth of MHI Group.

Seiji Izumisawa
President and CEO

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Sustainability Framework>Sustainability Management
CEO MESSAGE
Sustainability Framework> Sustainability and CSR Policy> Sustainability Promotion System

Material Issues
Stakeholder Engagement
Initiatives and Groups We
Participate In
Recognition from Society

Environment
Society
Governance
Data Section

Sustainability and CSR Policy Policy
In accordance with the Three Corporate Principles* that are at the heart of Our Principles,
MHI Group serves as a manufacturing corporation that contributes to societal progress
through its business endeavors of delivering products and technologies in support ofsocial and industrial infrastructure worldwide. MHI shall not only make contributions
through its products and technologies to resolve social issues such as environmental
problems, but shall also work on resolving a wide range of social challenges throughvarious activities in the process of its overall business and promote CSR activities intandem with its business activities. MHI believes the basis of CSR is to engage inbusiness activities that take its diverse range of stakeholders into consideration andreturn profits to all stakeholders in optimum fashion, while at the same time providing
excellent products and technologies to realize a sustainable society and a secure future
for people and the planet.
The MHI Group’s CSR Action Guidelines serve as collective standards for all MHIGroup employees. These guidelines provide a concrete and easy-to-understand way for
employees to consistently keep CSR in mind as the Group contributes to societal progress
through its business endeavors and Our Principles centered on the principles of CSR.

In 2015, we established the MHI Group Global Code of Conduct, a provision ofcommon principles which stipulates how the Group’s employees with various
backgrounds, nationalities and cultures should act and behave. Regarding theenvironment, MHI Group has established the “Basic Policy on Environmental Matters”
and “Action Guidelines” to encourage initiatives to reduce environmental burden basedon them. As for the human rights, we formulated the “MHI Policy on Human Rights,”
while supporting international norms such as the Universal Declaration of Human Rights.
* The Three Corporate Principles
The corporate philosophy set forth in the 1930s by Koyata Iwasaki, the fourth president of Mitsubishi Goshi Kaisha.
Corporate Responsibility to Society “Shoki Hoko”
Strive to enrich society, both materially and spiritually, while contributing towards the preservation of the global environment.
Integrity and Fairness “Shoji Komei”
Maintain principles of transparency and openness, conducting business with integrity and fairness.
Global Understanding Through Business “Ritsugyo Boeki”
Expand business, based on an all-encompassing global perspective.

Our Principles

CSR Action Guidelines- We deliver reliable and innovative solutions
that make a lasting difference to customers
and communities worldwide.
- We act with integrity and fairness, always
respecting others.
- We constantly strive for excellence in ouroperations and technology, building on awide global outlook and deep local insights.

MHI strives to move the world toward a moresecure future. Through our technology, ourbusiness practices, and our people, we:▶ Care for the planet

We are eco-conscious, and engineer environmentallyfriendly technologies that improve sustainability andprotect the Earth▶ Create a more harmonious society
We embrace integrity and proactive participation tosolve societal challenges▶ Inspire the future
We cultivate global talent who share a vision and desire
to move the world forward for generations to come

(Others)
MHI Group Code of Conduct
https://www.mhi.com/company/aboutmhi/policy/conduct.html
MHI Policy on Human Rights
https://www.mhi.com/company/aboutmhi/policy/humanrights.html
Basic Policy on Environmental Matters and Action Guidelines
https://www.mhi.com/jp/company/aboutmhi/policy/environment.
html
Privacy Policy
https://www.mhi.com/privacy.html
Policy of Safety and Healthhttps://www.mhi.com/company/aboutmhi/policy/safety_health.html
Procurement Policy
https://www.mhi.com/company/procurement/policy/index.html
MHI Group Supply Chain CSR Promotion Guidelines and Basic Policy
Concerning Conflict Minerals
https://www.mhi.com/company/procurement/csr/
MHI Group’s Declaration on Biodiversity
https://www.mhi.com/sustainability/environment/pdf/declaration_
on_biodiversity_e.pdf

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Sustainability Framework>Sustainability Management
CEO MESSAGE
Sustainability Framework> Sustainability and CSR Policy> Sustainability Promotion System

Sustainability Promotion System System Activity results
In order to promote management that takes into account the sustainability of society, we developed and reorganized the former CSR Committee into the Sustainability Committee,
and newly established the Materiality Council on October 1, 2021. In consideration of the environmental, social and economic sustainability of companies demanded by the international
community, institutional investors and other stakeholders, we will further strengthen our sustainability management system centered on the issues and values faced by modern society.

Material Issues
Board of Directors

Stakeholder Engagement
Initiatives and Groups We
Participate In

Materiality Council

Recognition from Society

Promote business activities that
achieve materiality goals
Chairman: CEO

Environment
Society
Governance
Data Section

Sustainability Committee

Promotethroughcollaboration

Hold the Group accountable forresponses to issues related tosustainability based on the perspectivesof stakeholders• Discuss promotion of sustainability
management• Further strengthen ESG initiatives
implemented• Promote Social Contribution Activity,
etc.
Chairman: CSO

Established five subcommittees for each Materiality
Provide energy
solutions toenable a carbon
neutral worldTransform
society throughAl anddigitalization

Build a safer
and moresecure world

Promote diversity
and improve
employeeengagement

Enhance
corporate
governanceCSO and Senior
General Manager,
Growth Strategy
OfficeSenior General
Manager, Growth
Strategy Office

CTO

In charge of HRGC

Sustainability Committee
Compliance Committee
Environment Committee
International Trade Control Committee
Business Risk Management Committee
Cybersecurity Committee(established Aug. 2023)

Administrative office: Sustainability Relations Department

Members

PurposeMeetings held
in FY2022

Main agenda items in FY2022

CEO

Chaired by President and CEO, including Executive Vice Presidents,
CSO (executive officer in charge of sustainability), GC, CFO, CTO, officer
in charge of HR, head of Business Strategy Office, domain CEOs andSenior General Manager, Growth Strategy Office.

To follow up on business activities torealize materiality goals and discuss
how to respond going forward2• Detailed decisions on company-wide materiality goals and thescope of initiatives for KPI (progress monitoring indicators)• Monitoring progress of materiality initiatives

CSO (executive

Chaired by CSO (executive officer in charge of sustainability), including
Executive Vice Presidents, GC, CFO, CTO, officer in charge of HR, andhead of Business Strategy Office.

To make management-level
decisions related to how to address
sustainability issues (ESG initiatives,
etc.)

2

• ESG evaluations, reports on ESG initiatives•T CFD planning cycle for FY2022• Human Rights Due Diligence activities report• How to carry out sustainability management

Committee name

Materiality
Council

Sustainability
Committee

Headofficer in chargeof sustainability)* Meetings are convened with domain CEOs as members in accordance withthe agenda.

* CEO: Chief Executive Officer, CSO: Chief Strategy Officer, CTO: Chief Technology Officer, GC: General Counsel, HR: Human Resources

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Material Issues>Sustainability Management
CEO MESSAGE
Sustainability Framework
Material Issues> Basic Approach/Promotion System> Processes of Identifying Material Issues> Material Issues, KPI, Progress

Stakeholder Engagement
Initiatives and Groups We
Participate In
Recognition from Society

Environment
Society
Governance
Data Section

Basic Approach Policy
To enhance corporate value and grow in the medium to long term through solutions to social issues, in fiscal 2020, MHI Group has identified Material Issues it should be addressing.
The identified materiality have been reflected in the 2021 Medium-Term Business Plan (the 2021 business plan announced in October 2020). Progress of each Material Issue ismanaged with progress monitoring indicators (KPIs), and the PDCA cycle is steadily applied.

Promotion System System
Activities involving engagement with Material Issues embody sustainability managementin terms of business. To make the activities effective, we have established subcommittees
with managers and departments for each Material Issue, and the person responsible
and organizing department consider specific measure and roadmaps.
In October 2021, we established the Materiality Council, chaired by the CEO andattended by officers in charge of corporate and domain CEOs, to follow up on businessactivities aimed at realizing company-wide goals for Material Issues and to instructbusiness divisions addressing the goals to take necessary measures. At this time (as of
September 2023), the 4th Materiality Council has been held. During the meeting,information on the progress made with respect to each Material Issue was shared andreported, along with related project examples from business units, and questions andopinions were freely exchanged. These activities are important themes in sustainability
management and are regularly reported to the Board of Directors.
Sustainability Promotion System ▶ P.08

■ Third-party Assurance (AA1000AS)

We have obtained the AA1000AS warranty from an independent third party fordisclosure information regarding the “Mitsubishi Heavy Industries Group MaterialIssues” identified in 2020.
Third-party Assurance (AA1000AS) ▶ P.143

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Material Issues>Sustainability Management
CEO MESSAGE

Processes of Identifying Material Issues Policy

Sustainability Framework■ Approach to Identifying Material Issues

Material Issues> Basic Approach/Promotion System> Processes of Identifying Material Issues> Material Issues, KPI, Progress

Stakeholder Engagement

Step 1
Prioritizing
Social Issues

Step 2

Recognition from Society

Creating a Materiality
Matrix

1. Importance of social issues assessed and mapped along two axes
(Vertical axis: degree of impact on society; Horizontal axis: degree of impact on
the Company)
2. Nine materiality postulated based on the materiality map

Environment
Society
GovernanceStep 3
Verifying
Appropriateness

Data Section

1. Discussion held at Materiality review meetings (consisting of CSR Committee
members), and Material Issues narrowed down to six items
2. Dialogue held with three outside experts
https://www.mhi.com/jp/sustainability/library/pdf/esgdatabook2020_all.pdf#page=12[Expert]Mariko Kawaguchi: Specially Appointed Professor, Graduate School of Social Design Studies,
Rikkyo University
Toshihiko Goto: Chief Executive Officer, Sustainability Forum Japan Board Member
Ichiro Sakata: Professor, Graduate School of Engineering Special Advisor to the President
Institute of Engineering Innovation, School of Engineering, the University of TokyoHigh● Cybersecurity● Prevention of terrorism● Ecosystem conservation● Mitigation of climate change● Stable supply of energy● Development of AI and a digitalsociety● Maintenance and developmentof industrial infrastructure

Degree of impact on society

Initiatives and Groups We
Participate In

We inventoried the Company’s businesses and initiatives, linked them to a list ofsocial issues prioritized in line with international frameworks—including the SDGs,
the Global Reporting Initiatives (GRI) Standards, ISO 26000, the SASB Standards, theEU taxonomy and others, and identified 37 social issue themes related to MHI Group.

● Resource circulation● Security ensured throughdefense● Social infrastructure andcommunity-building toprovide resilience against
disasters● Risk management● Respect for human rights● Fair business practices● Maintenance of labor
environments● Safety, stability, and convenienceof mobility● Prevention of environmental

pollution (atmospheric, aquaticand noise pollution)● Usage of space and the oceans● Cultivation of human resources● Improvement of productivity● Promotion of diversity● Organizational governance* Indicated roles and titles are as of the indicated date.

High
Degree of impact on the Company

Step 4
Identifying MaterialIssues

Step5
Setting Company—
Wide Goals and Progress
Monitoring Indicators(KPIs)CSR Committee members narrowed Material Issues down to five issues, which wereformally finalized after Executive Committee and Board of Directors meetings in
September 2020.

1. A task force team comprising young and mid-level employees played a central rolein establishing a draft of company-wide goals and KPIs for monitoring progress ofmateriality
2. These were further considered in materiality subcommittees, and decided upon by
the Materiality Council and disclosed

Five Material Issues identified based on social issues
important to MHI Group
Business
Contribution(business-related)●Provide energy solutions to enable a carbon neutral world● Transform society through Al and digitalization● Build a safer and more secure world

Foundation to●Promote diversity and improve employee engagement
Support Business● Enhance corporate governance(corporate-related)

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Material Issues>Sustainability Management
CEO MESSAGE
Sustainability Framework

Material Issues, KPI, Progress Policy System Activity Results
Material Issues, Officer in Charge

Material Issues

Reduce the CO2
emissions of MHI Group> Basic Approach/Promotion System> Processes of Identifying Material Issues> Material Issues, KPI, Progress

Stakeholder Engagement
Initiatives and Groups We
Participate In
Recognition from Society

Environment
Society
Governance
Data Section

Company-wide Goals

Provide energy solutions to enablea carbon neutral world

Achieve Net Zero CO2emissions from its
operations by 2040
(Scopes 1 and 2)

CSO and Senior General Manager,
Growth Strategy Office
In recent years, as the effects of climatechange become more serious, people
eagerly await the realization of acarbon neutral world. In the future,energy infrastructure will bereconstructed in accordance with 3E+S
(Note) based on the characteristics ofeach country, while resource recycling
and decarbonization are expected todevelop on the demand side. To achieve
this transformation of social
infrastructure as quickly as possible,
MHI Group will strive to continue using
existing facilities and promote carbon
recycling by significantly improving
energy efficiency, capturing and fixing
CO2, introducing carbon-free fuels, andexpanding the use of nuclear power
and renewable energies that meet theworld’s highest safety standards.

Contribution to society
throughout the value
chain by 2040

Progress Monitoring Indicator (KPI)

Scope

Initiatives and Progress in FY2022

Reduce total CO2 emissions frombusiness activities (Scopes 1 and 2)
by 50% by 2030 (compared to 2014
levels), and achieve net zero by 2040

MHI Group(Global)• Reduced CO2 emissions in 2021 by 42% (compared to 2014 levels).
•F orecasting a reduction in 2022 CO2 emissions of 47% (compared to 2014 levels).
•D rafted basic concepts and management systems for Carbon Neutral
Management.
•B egan installation of the renewable-energy power generation equipment at
Mihara Machinery Works to achieve a Carbon Neutral Factory. (to be completed
by the end of FY2023)

Reduce CO2 emissions across theentire value chain (Scope 3 + CCUS
contribution for CO2 reduction) by
50% by 2030 (compared to 2019
levels) and achieve net zero by 2040

MHI Group(Global)• Disclosed CO2 emissions for 2021 in ESG DATABOOK 2022.
• Calculating CO2 emissions for 2022.

MHI Group(Global)• Successfully completed the world’s largest hydrogen mixed firing validation testwith 20% hydrogen at Plant McDonough-Atkinson’s high-efficiency large-frame
GTCC facility.
• Formed alliance with ExxonMobil which will advance next-generation carbon
capture technologies and enable integrated CCS offering by deploying MHI’s CO2
capture technology as part of ExxonMobil’s end-to-end CCS solution.
•C ontributed to restarting and safe and stable operation of existing nuclear plants
in Japan. Jointly have been developing advanced light water reactor SRZ-1200,
which will meet the world’s highest standards of safety, with Hokkaido ElectricPower Co., Inc., The Kansai Electric Power Co., Inc., Shikoku Electric Power Co.,
Inc. and Kyushu Electric Power Co., Inc. Also, developing new type reactors(small light-water reactors, high temperature gas-cooled reactors and fast
reactors) to meet the diversified needs in the future.

Develop products and services that
contribute to conservation,
decarbonization, and automation ofenergy use by 2040 (Smart
Infrastructure)

MHI Group(Global)•A
 warded Pre-FEED contract for carbon capture plant at a cement production
facility in UK.
• To expand use of carbon capture in hard-to-abate sectors, signed collaborationagreement with ArcelorMittal, BHP and Mitsubishi Development Pty Ltd*1 fordevelopment of carbon capture in the steel industry.
•S igned a MoU with Fortescue, voestalpine and Mitsubishi Corporation to jointly
evaluate green ironmaking plant using HYFOR*2 process.

Develop and prove new products andservices that contribute to the carbon
cycle

MHI Group(Global)• Working toward demonstration of biowaste utilization (hydrolysis) and recyclingof decommissioned large structures.

Develop products and services that
contribute to decarbonization of theenergy supply by 2040 (energy
transition)

Achieve Net Zero CO2emissions from its
entire value chain by
2040 (Scope 3 +reduction through
CCUS)(Note) The pursuit of energy security, economic efficiency, and environmental conformance on the precondition of safety*1 Mitsubishi Development Pty Ltd: A wholly owned subsidiary of Mitsubishi Corporation that has contributed to global industries for more than 50 years through its developments in the mineral resources sector.
*2 HYFOR: Hydrogen-based fine ore reduction. A new process for directly reducing fine ore occurring in the iron ore sorting process developed by Primetals Technologies

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Material Issues>Sustainability Management
CEO MESSAGE
Sustainability Framework

Material Issues, KPI, Progress Policy System Activity Results
Material Issues, Officer in Charge

Company-wide Goals

Progress Monitoring Indicator (KPI)

Scope

Initiatives and Progress in FY2022

Steadily increase the number of newly
developed advanced AI and digitalsolutions (services, products, R&D) thatsolve customer issues

MHI Group(Global)•C onfirmed the basic performance of the prototype for the next generation
unmanned forklift (based on ∑SynX), and conducting demonstration activities
for an automated picking solution at YHH*3. Further development ofintelligent logistics systems is also continuing.
• An automated material handling system for maritime transportation isunder development.
• An intelligent system for operation of industrial machines is underdevelopment.
• Within our central R&D organization, MHI Group conducts advanced researchand development, and the results are applied widely across our businessareas. This allows us to promote the development of solutions such as AI
and digital products and services for diverse business units.

Propose optimal energy infrastructures
to customers according to thecharacteristics of the region

MHI Group(Global)• Conducted feasibility study of optimal energy infrastructure solutions forSoutheast Asia, considering regional characteristics based on anassessment balancing social, economic, and environmental factors.

Increase the number of products linked
to future-oriented energy management
systems

MHI Group(Global)• Started external verification with expanded control functions for heating
equipment for use in carbon neutral EMS products.

MHI Group(Global)The following were implemented to make MHI a more creative workplace:• Internal community site (EKKYO BASE): Organized collaboration projects(8 times with 3,000 total participants). Expanding opportunities for dialogue
and co-creation between MHI Group employees and other companies tofoster new business development and organizational culture improvement.
• Future Design Task Force: R&D on co-creation is ongoing to establish future
design processes.
• Formulated a human resource development plan in the field of Digital
Innovation, under the strategic goal of developing approximately 20
thousand Digital Innovation experts groupwide.
• Advanced efforts in promoting groupwide use of CRM (Customer Relations
Management), utilization of data foundation, and development of future IT
architecture.
• Started a human resources development system (training system) at YHH
and accepted two trainees in October 2022.

Material Issues> Basic Approach/Promotion System> Processes of Identifying Material Issues> Material Issues, KPI, Progress

Stakeholder Engagement

Transform society through AI anddigitalization

Initiatives and Groups We
Participate In
Recognition from Society

Environment
Society
Governance
Data Section

Expand lineup of usefuland sustainable AI/
digital products
meeting needs ofcustomers and users

Senior General Manager,
Growth Strategy Office
Due to the rapid advancement of AI anddigitalization present day, humanvalues, activities, and lifestyles areundergoing major changes. In the midstof various social concerns such as
climate change, aging societies withlow birthrates, widening disparity
between the rich and the poor, and
COVID-19, two key themes are how toprovide a convenient and comfortable
life to everyone without discriminationand how to live in a sustainable
manner. MHI Group will seek to realize
a society that balances economic
development with the resolution ofsocial issues (Society 5.0) by breaking
away from preconceived notions andmaximizing the use of AI anddigitalization to pursue the question ofwhat it means for people to leadaffluent lives.

Contribute to asustainable society
through future-oriented
energy management
strategies that use AI
and digitalization toappropriately andefficiently manage
power supply anddemandImprove our working
environment toproduce creative
products

Improve employees’ awareness ofcreative time and environments*3 YHH: Yokohama Hardtech Hub. Co-creation space for manufacturing administered by MHI in Honmoku, Yokohama

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Material Issues>Sustainability Management
CEO MESSAGE
Sustainability Framework

Material Issues, KPI, Progress Policy Systems Activity Results
Material Issues, Officer in Charge

Company-wide Goals

Progress Monitoring Indicator (KPI)

Scope

Initiatives and Progress in FY2022

MHI Group(Global)•D eveloped resilience indicators for products and services based on recovery and resistance.
 oal setting is underway for each business unit and has been completed for 8 of the total 31•Gbusiness units.
•A company internal meeting was held on “Risk Assessment and Measures for Resilience andBusiness Development.”• Investigating new business potential in the area of disaster prevention. (Collaboration with
Kyoto University Disaster Prevention Research Institute)• Typhoon damage simulation was presented in the MHI Technical Review and International
Conference (AJK2023).
•D isaster prevention simulations including tsunamis, typhoons and heavy rains were carriedout for seven Japanese factories in the company.
•A study of the disaster countermeasure system was carried out (Nuclear Energy Systems).

MHI Group(Global)•C onfirmed functional performance of the unmanned forklift prototype of the intelligent
logistics system (∑SynX).
• Verifying road-vehicle coordination on an ITS freeway.
•C ontinued to promote the research & development of unmanned defense equipment.
•C ontinued to promote research & development of intelligent operation systems for paper
converting machinery.
•D elivered a monitoring platform (Synx-Supervision) for steelmaking plants.
•A remote monitoring and operation support system (MaiDAS) for a waste incinerator plant
has been verified and presented at a major academic conference.
•D emonstrated a security check patrol with a single-rotor unmanned drone.
•D eveloping a labor-saving system for ferry cargo handling.
•D eveloped a tail-end detection system for ironmaking machinery and a digital service
platform for ironmaking machinery.
•D eveloping a solution for automating the nut tightening work of aircraft panels by humanand robot cooperation.
•D emonstrated the automatic generation function for an inspection map in a catalytic
inspection system of a flue gas treatment unit.

MHI Group(Global)• In FY2022, cybersecurity R&D investments increased 3.0 times the level of FY2020.
 o strengthen the security resistance of our factories, evaluation and verification of network•T
security detection devices were conducted in Sagamihara Machinery Works, YHH, Nagoya
Guidance & Propulsion Systems Works – Komaki North Plant and other locations.
•T he basic security requirements set by Charter of Trust*4 were reflected in the company
standards.
• Industrial control system security manager meetings were held twice to share the security
measures of factory infrastructure.

Material Issues> Basic Approach/Promotion System> Processes of Identifying Material Issues> Material Issues, KPI, Progress

Stakeholder Engagement
Initiatives and Groups We
Participate In

Build a safer andmore secure world

Boost theresilience of
products,
businesses, andinfrastructure

Carry out various disaster
impact assessments, andpromote the development
and practical application ofresilient designs andtechnologies

Recognition from Society

Environment
Society
Governance
Data Section

CTO
Building a safe and secure society isessential for realizing affluent lives.
In recent years, we have faced various
risks including natural disasters,
pandemics, a shrinking workforce, andchanges in the security environment,
including cyberspace. Since its
establishment, MHI Group has
contributed to the development ofsociety by building criticalinfrastructure and taking onchallenges in the unknown worlds ofspace and the deep sea. By drawing on
this wealth of knowledge andexperience, we will build a flexible,
robust, and labor-saving system thatwill contribute to the realization of asafer and more secure society.

Implement fullyautomated andlabor-saving
measures

Continuously
strengthen
cybersecurity
measures for all
MHI products

Promote the development
and practical application oftechnologies that enable theremote operation andautomatic inspection of
products, businesses andinfrastructure

Promote the development
and practical application of
cybersecurity technologies*4 Charter of Trust: Activities at the private-sector company level to build cybersecurity reliability. MHI has participated since April 2019.

14

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Material Issues>Sustainability Management
CEO MESSAGE
Sustainability Framework

Material Issues, KPI, Progress Policy System Activity Results
Material Issues, Officer in Charge

Company-wide Goals

Progress Monitoring Indicator (KPI)

Scope

Initiatives and Progress in FY2022

Material Issues> Basic Approach/Promotion System> Processes of Identifying Material Issues> Material Issues, KPI, Progress

Stakeholder Engagement

Environment
Society
Governance
Data Section

MHI

Double the ratio of women in management
positions by 2030 (compared to FY2021)

MHI Group(Global)

In accordance with the MHI Group Human
Rights Policy, raise awareness of diversity
among Group employees through educationand other efforts

MHI Group(Global)•S
 tarted development of educational materials (e-learning) on the topic
of respecting human rights in MHI Group. About 75,000 employees
world-wide took the course.

Reduce the number of serious accidents
to zeroMHI Group(Global) subcontractor’s fatal accident occurred. The root cause analysis was•Aundertaken immediately to prevent recurrence and measures wereannounced to all departments in MHI.

Maintain a labor (work absence) accident
frequency each year at a rate that is equal
to or lower than the industry average

MHI Group(Global)• The rate of lost-worktime injuries was less than the industry average.
•C onducted early detection and root cause analysis based on data frompast accidents, and studied and developed countermeasures acrossdivisions.

Raise the employee awareness survey’s“engagement” score above the global
average by FY2030

MHI Group(Global)• The 4th MHI Group Employee Survey was undertaken in March 2023.
 resident’s Town Meeting was held at 4 sites in Japan.
•P•A nnounced pulse survey tool to all MHI Group and continuing
operational improvement.

Promote diversity and improve
employee engagement
Project new value throughparticipation of diverse
human resources

Initiatives and Groups We
Participate In
Recognition from Society

Increase the ratio of women on the Board of
Directors to at least 30% by 2030

In charge of HR
Given the globalization of business inrecent years, there is an urgent need todevelop human resources who have afirm awareness of human rights acrossthe supply chain and can operate on theinternational stage. In addition, to
continue creating new value based ondiverse ideas, it is essential to improve
productivity and ensure safety bybuilding a culture in which eachindividual is respected and candemonstrate and develop their abilities.
Therefore, we support the growth andhealth of human resources through thepromotion of diversity and healthmanagement. Our goal is to train
human resources who are full of vitality
and can contribute to society not only
during their employment but also after
retirement.

Ensure safe andcomfortable workplaces

Improve our environmentthat maximizes employee
performance, and develop
human resources who arehealthy, energetic and able
to contribute to society•C ontinued our training program for potential future executive
candidates in collaboration with each business unit.
 xpanded various employee support systems with consideration to•Echildcare and caregiving to enable employees to continue theircareers. Promoting a workplace environment and organizational
culture allowing for a balance of professional and private life.

15

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Material Issues>Sustainability Management
CEO MESSAGE
Sustainability Framework

Material Issues, KPI, Progress Policy System Activity Results
Material Issues, Officer in Charge

Company-wide Goals

Material Issues

Maintain the ratio of independent outside
directors on the Board of Directors at 50%
or more> Basic Approach/Promotion System> Processes of Identifying Material Issues> Material Issues, KPI, Progress

Stakeholder Engagement
Initiatives and Groups We
Participate In
Recognition from Society

Environment
Society
Governance
Data Section

Progress Monitoring Indicator (KPI)

Enhance corporate governanceFurther enhancedeliberations by the
Board of Directors

Scope

MHI

•M
 aintained the percentage of independent outside directors at 50% (6/12)
and worked to speed up decision-making processes and strengthen
oversight functions.

MHI•E
 ngaged in the following initiatives to evaluate the effectiveness of the Boardof Directors in FY2022.
▶ Conducted questionnaires to all members of the board.
▶ Discussed the results of these evaluations in meetings of independent
outside directors and reported the same to Board of Directors meetings.
▶ Established policies based on the results of the effectiveness evaluationand finalized the draft of disclosure, both by the resolutions of the Board of
Directors. Also started planning the agenda schedule for FY2023.

Maintain the number of serious laws/
regulation violations at zero

MHI Group(Global)• There were no serious laws/regulation violations.
• Case studies related to compliance were published monthly to raiseawareness within the company.
• Compliance information tailored to each region was shared with Group
companies outside Japan in an effort to prevent compliance issues.
• Ensuring that overseas group companies set up hotlines for reporting on
compliance issues.

Continue activities that promote an openorganizational culture

MHI Group(Global)• Implemented the following compliance training for employees both within
and outside Japan.
▶ Japan: e-learning, discussion-based training, job grade-based training▶ Outside Japan: e-learning

Promote sustainability and CSR
procurement activities with partners tobuild a sustainable supply chain

MHI Group(Global)• Implemented a CSR questionnaire for overseas partner companies with acertain amount of regular purchase orders from MHI, and obtained theiragreement to the MHI Group Supply Chain CSR Promotion Guidelines.

Offer continuous educative information to
suppliers/business partners in order toestablish and maintain a sustainablesupply chain

MHI Group(Global)• Delivered educational materials on CSR procurement when sending theperiodical CSR questionnaire for partner companies, and confirmed
understanding within each company. Performed CSR procurement education
at business briefings and meetings with partners.

Conduct ESG briefings to investors at least
once a year

MHI Group(Global)• Held an ESG briefing in March 2023 to explain MHI Group’s framework foraddressing sustainability and the progress toward achieving KPIs for eachmaterial issue.

Assess the effectiveness of the Board of
Directors annually to ensure and improve it

GC
For a company to continue to provide
value to society, it is important toearnestly address the issues anddemands of global society and form asound organizational culture. Since wehave a particularly diverse range ofbusinesses, it is essential that westrengthen the governance structure of
the entire Group. We will promotecompliance management andstrengthen internal controls to ensurecompliance with laws and regulations
and promote honest, fair, and equitablebusiness practices. We will promptly
identify opportunities and risks for theorganization and take appropriate
action. In addition, to earn the trust ofsociety, we will implement timely andappropriate information disclosure
regarding management, while ensuring
fairness and transparency.

Promote legal
compliance andhonest and fairbusiness practices

Further promoteresponsible (CSR)
procurement in the
global supply chain

Create opportunities
to explain nonfinancial information

Initiatives and Progress in FY2022

16

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Stakeholder Engagement>Sustainability Management
CEO MESSAGE
Sustainability Framework
Material Issues

Basic Approach Policy
MHI Group prioritizes management initiatives that reflect input from the various stakeholders in its business activities, including customers, suppliers, business partners, Group
employees, and local communities. In addition to seeking out stakeholder input in its everyday activities, MHI engages in dialogue with experts and NGOs having specialized expertise
related to CSR and global issues, striving to incorporate societal viewpoints.

Stakeholder Engagement> Basic Approach

Initiatives and Groups We
Participate In

Pick Up

Main Initiatives in FY2022 Activity Results

Recognition from Society

Environment
Society

Experts
Sustainability Dialogue (Takashi Nawa and CSO Kaguchi)
Visiting Professor Takashi Nawa of Hitotsubashi University Business School and CSO Hitoshi

Governance
Data Section

Kaguchi (CSO of the Company at the time) held a dialogue on purpose, sustainability, andmateriality.

Institutional Investors
In addition to various reports and information disclosed at briefings, we hold interviews with theparticipation of officers and employees to improve communication with institutional investors
inside and outside Japan.
Also, in fiscal 2022, we held ESG briefings for ESG analysts from domestic institutional

MHI Sustainability Dialogue
https://www.mhi.com/jp/sustainability/management/stakeholder_dialogue01.html

investors and explained the progress we are making on promoting sustainability management.
MHI ESG briefing materials
https://www.mhi.com/jp/sustainability/library/pdf/esg_materials2022.pdf

Suppliers
Employees

At platforms such as business partner meetings and business policy briefings, we explain theGroup’s CSR promotion guidelines and offer educative information on the conduct expected of

The Sustainability Relations Office holds regular discussion sessions to further raise thesuppliers by introducing cases of ESG risks in the supply chain.

awareness of employees with regard to sustainability. In fiscal 2022, discussions were held with

In addition, to reduce risks in the supply chain, we conduct a CSR survey to confirm the CSR

employees at the level of foreman and deputy foreman in manufacturing divisions. We sharedpromotion initiatives of suppliers, and based on the results we reconfirm laws related to CSR

how interest in sustainability and the SDGs is rising throughout the world and discussed how to

and ESG, conduct onsite surveys on the status of compliance systems and initiatives, andrespond to social issues from a manufacturing perspective and how to contribute to society

consult with suppliers on making improvements.

through products.

NPOs
Since 2015, in Tanegashima, a key location for the Group’s rocket launch transport business,
MHI Group has offered its support for the Tanegashima Loggerhead Turtle Survey, an event
sponsored by Earthwatch Japan, an authorized NPO. The Group participates in the survey
each year.

17

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Initiatives and Groups We Participate In>Sustainability Management
CEO MESSAGEMHI Group participates in initiatives and groups inside and outside Japan related to sustainability to help realize a sustainable society.

Sustainability Framework
Material Issues

UN Global Compact

Task Force on Climate-related
Financial Disclosures (TCFD)

GX League

Keidanren Initiative for Biodiversity

MHI became a signatory to the UN
Global Compact in 2004 and put into
practice the compact’s ten principles.
In 2015, we created the MHI Group
Global Code of Conduct to provide a setof action guidelines for all MHI Group
employees to follow. We also participate
in subcommittees on the environment,
human rights and the supply chain
established by Global Compact Network
Japan, a local network in Japan, which
is helping us to plan our own initiatives
and solve issues.

MHI has a mission of leading the way inclimate action and in February 2019
announced its support for disclosure
based on the TCFD recommendations.

MHI is boldly taking on the challenge oftransitioning to carbon neutrality. It
participates in the GX League, aframework through which successfulinternational companies drive the green
transformation.
We also plan to participate in avoluntary emissions trading scheme(GXETS), which is a pledge and review
framework for achieving the voluntaryemission reduction targets thecompanies have set.

A total of 283 companies and groups(as of August 21, 2023) participate in
the initiative by engaging in a least
several of the seven items that make up
the Declaration of Biodiversity by
Keidanren and Action Policy (Revised
Edition) or by expressing their support
for the initiative overall. As aparticipating company, we are involvedin promoting biodiversity initiatives.

Stakeholder Engagement
Initiatives and Groups We
Participate In
Recognition from SocietyGroups andinitiatives inwhich weparticipate

Environment
Society
Governance
Data Section
Activities

18

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Recognition from Society>Sustainability Management
CEO MESSAGE
Sustainability Framework
Material Issues
Stakeholder Engagement
Initiatives and Groups We
Participate In
Recognition from Society> Status of Inclusion in ESG Indexes/
External Assessment of Sustainability

Environment
Society

Status of Inclusion in ESG Indexes Indexes
MHI Group promotes management with an emphasis on sustainability and is focused on various activities and information disclosure. Thanks to these
initiatives, we have been selected for the sixth consecutive year for inclusion in the Asia Pacific Index of the Dow Jones Sustainability Index (DJSI),a globally leading index for environmental, social, and governance (ESG) investing (as of September 2023).
In addition, the Government Pension Investment Fund (GPIF), a Japanese pension fund that is one of the largest institutional investors in the world,
has selected MHI for all six of its ESG-related indices used for Japanese stocks.
• MSCI Japan ESG Select Leaders Index• MSCI Japan Empowering Women Index (WIN)• FTSE Blossom Japan Index• FTSE Blossom Japan Sector Relative Index• S&P/JPX Carbon Efficient Index• Morningstar Japan ex-REIT Gender Diversity Tilt Index

Governance
Data Section

External Assessment of Sustainability Ratings and certifications
CDP Climate Change 2022 Score B

MHI Obtains “Kurumin” Mark Certification

CDP, an international non-profit organization, conducts global
assessments of companies’ efforts in terms of climate change and water
security. There are nine levels of scoring: A, A-, B, B-, C, C-, D, D- and F(declined to answer or no response). MHI received a score of B in the CDP
Climate Change 2022 assessment.

Companies that have formulated action plans for supporting employee
child rearing based on the Japanese law the Act on Advancement of
Measures to Support Raising Next-Generation Children, enacted in April
2005, and that have been recognized for their results, receive the“Kurumin” mark certification. MHI obtained this certification in 2007.

MHI Obtains “Eruboshi” Mark Certification

Certified Excellent Health and Productivity
Management Corporation

Based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace (the “Act to Promote Women’sParticipation”), the “Eruboshi” certification is granted by the Minister of
Health, Labour and Welfare of Japan to those companies making
outstanding contributions under certain standards for promoting
women’s participation. In July 2020, MHI obtained a three-star rating, thehighest of three possible levels. This certifies that MHI has fulfilled thescreening criteria for all items concerning elements of the workplaceenvironment that make it easier for women to demonstrate their ability.

An “Excellent Health and Productivity Management Corporation” is acertification system launched by the Ministry of Economy, Trade andIndustry in 2015 to promote “health management.” Corporations that arerecognized for considering and practicing employee health managementfrom a managerial perspective are recognized. In 2019, our company
issued the President’s Declaration on Health Management and promoted
health management. As a result, the company was recognized as an“Excellent Health and Productivity Management Corporation 2023.”

19

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Sustainability Management>Environment
Environmental Management
Climate Change
Water Risk
Biodiversity

Environment

Waste/Pollution

Society
Governance
Data Section

20 Environmental Management

35 Water Risk

20

Basic Policy on Environmental Matters and Action Guidelines

35

Basic Approach and Policy/Management System/Initiatives

21

Environmental Management

36

Quantity of Water Intake Data

22

Environmental Targets

23
25

ESG FinanceISO 14001 (environmental management system)/
Education and Collaboration with Local Communities

37

Basic Policy on Biodiversity/Biodiversity Goals/
Corporate Structure on Biodiversity

26

Product Stewardship Initiatives

38

Biodiversity Initiatives

28 Climate Change
28

Basic Approach and Policy

29

GHG Emissions/Energy Consumption Data

30

Activities that Mitigate Climate Change

31

TCFD Disclosure

37 Biodiversity

42 Waste/Pollution
42

Basic Approach and Policy/Management System/
Waste Generation/VOC Emissions Data

20

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Environmental Management

Sustainability Management>Environment
Environmental Management> Basic Policy on Environmental Mattersand Action Guidelines> Environmental Management> Environmental Targets> ESG Finance> ISO 14001 (environmental management
system)/Education and Collaboration with
Local Communities> Product Stewardship Initiatives

Climate Change
Water Risk

Basic Policy on Environmental Matters and Action Guidelines Policy
With environmental problems gaining recognition on a global scale, MHI Group established the Environment Committee in 1996 in order to clarify its attitude toward the environment,
to express its stance to people both inside and outside the Company, and to direct and promote its environmental activities. At its first meeting, the Environment Committee formulated
the Basic Policy on Environmental Matters and Action Guidelines (refer below), in line with the MHI Group’s Principles: “We deliver reliable and innovative solutions that make a lasting
difference to customers and communities worldwide.” Since that time, the entire Group has worked to promote environmental initiatives through maintaining a dialogue with suppliers
and other stakeholders in accordance with this Basic Policy and these guidelines. MHI Group made partial revisions to its Basic Policy on Environmental Matters and Action Guidelines
in January 2018 with the approval of the Executive Committee, chaired by the President and CEO.

Basic Policy on Environmental Matters
Provision 1 of MHI Group’s principles reads: “We deliver reliable and innovative solutions that make a lasting difference to customers and communities worldwide.” This means thatour primary purpose is to contribute to society through R&D, manufacturing and other business activities. The company shall undertake all aspects of its business activities with the

Biodiversity

understanding that it is an integral member of society and will strive to reduce its burden on the environment, contributing to the development of a sustainable society.

Waste/Pollution

Action Guidelines

Society
Governance
Data Section

1. Prioritize environmental protection within company operations, and take steps across the entire MHI Group to protect and enhance the environment.
2. Clarify roles and responsibilities regarding environmental protection by developing an organizational structure to deal with matters related to environmental protection,and to define environment-related procedures, etc.
3. Strive continuously to improve and enhance environmental protection activities not only by fully complying with environmental laws and regulations but also,
when necessary, by establishing, implementing and evaluating independent standards and setting environmental goals and targets.
4. Strive to alleviate burden on the environment in all aspects of company business activities, from product R&D and design to procurement of raw materials, manufacture, transport,
usage, servicing and disposal, through pollution prevention, conservation of resources, energy saving, and waste reduction.
5. Strive to develop and market advanced and highly reliable technology and products that contribute to solving environmental and energy challenges.
6. Strive to preserve the environment in partnership with our stakeholders and gain their understanding of this policy.
7. Take steps to raise environmental awareness among all group employees through environmental education, etc., while delivering environment-related information to the public
and taking part in CSR activities.
Formulated in 1996 (Revised in January 2018)[Paragraph 6 Supplementary Information] Stakeholders include suppliers, joint venture partners, licensees, external outsourcing companies, and other business partners. In addition, cases involving environmental due diligenceand M&As will be taken into consideration.

21

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Environmental Management

Sustainability Management>Environment
Environmental Management> Basic Policy on Environmental Mattersand Action Guidelines> Environmental Management> Environmental Targets> ESG Finance> ISO 14001 (environmental management
system)/Education and Collaboration with
Local Communities> Product Stewardship Initiatives

Environmental Management System
At MHI Group, the Environment Committee is chaired by the Chief Technology Officer (CTO), who takes charge of environmental management, and made up of members selected fromthe domains and segments, and corporate units. The committee plans and drafts policies and initiatives shared throughout the Group and deploys them across all Group companies via
the domains, segments of each business, and corporate units.
The MHI Group’s Environmental Management Organization (As of April 1, 2023)
Environment Committee
Chaired by CTO and composed of 15 members.
Meetings: Once per year (FY2022)

CTO

Climate Change
Person in charge of environmental management

Water Risk
Biodiversity

Secretariat

Waste/Pollution

Society
Governance

Energy Systems
DomainNuclear Energy
Systems Segment

Plants & Infrastructure
Systems Domain

Engineering
Segment

Machinery Systems
Segment

Logistics, Thermal &Drive Systems
DomainGroup
Companies

Group
Companies

Group
Companies

Group
Companies

Group
Companies

Integrated Defense &Space Systems
Segment

Commercial Aviation
Systems Segment

Each Corporate
Department

Group
Companies

Group
Companies

Data Section
DivisionsGroup
Companies■ Environmental audit system

At MHI Group, two levels of audits are conducted including one by each domain,
segment, and corporate unit on their respective organization as well as one by theenvironmental secretariat at MHI headquarters on the environmental management
division of each domain, segment, and corporate unit. As a general rule, the respective
domains, segments, and corporate units conduct internal environmental audits at theworks, plants, and other facilities in Japan they oversee to ensure compliance withenvironmental laws and regulations and to conduct physical, on-site verification ofoperational conditions. Based on the Group’s environmental policy, these audits confirm
that environmental management associated with addressing climate change andDivisionsGroup
Companies

pollution as well as water conservation have been properly employed. The
environmental secretariat at MHI headquarters conducts audits on the status ofcompliance and environmental management of the environmental management divisionof each domain, segment, and corporate unit.
■ Reporting on breaches

Regarding the number of environment-related violations, their details, and measurestaken, there was no significant breach of the sort that would cause the company to be
fined (as of July 31, 2023; coverage is Japan).

22

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Environmental Management

Sustainability Management>Environment
Environmental Management> Basic Policy on Environmental Mattersand Action Guidelines> Environmental Management> Environmental Targets> ESG Finance> ISO 14001 (environmental management
system)/Education and Collaboration with
Local Communities> Product Stewardship Initiatives

Climate Change

Environmental Targets Target
The Long-Term Environmental Target and the Fifth Environmental Targets, which represent the medium-term goals, were established at a meeting of the Environment Committee heldin March 2021. The Long-Term Environmental Target aims at decarbonizing the business activities of the MHI Group by 2040. The Fifth Environmental Targets aim for reductions in CO2emissions, reductions in water usage, and reductions in waste generation by fiscal 2023. MHI Group will continue to contribute to solve environmental problems that are importantsocial issues and work as one to achieve these goals.
Item
The Long-Term Environmental Target (FY2040)

Scope of target

Target (FY2021-FY2040)

Entire MHI Group

Reduction in CO2

Decarbonize MHI Group's business activities by 2040

(Note) Consolidated Group Companies will be subject to this target

KPI Items

Scope of target

Target (FY2021-FY2023)

1. Reduction in CO2 emissions

Entire MHI Group

Reduction in CO2 emissions per unit from offices and plants by 9% in FY2023 relative
to FY2014.

2. Reduction in water usage

Entire MHI Group

Reduction in water usage per unit in FY2023 by 7% relative to FY2014.
(Water: industrial water, tap water, groundwater, rivers, lakes; excludes seawater).

3. Reduction in waste generation

Entire MHI Group

Reduction in waste generation per unit in FY2023 by 7% relative to FY2014(Excluding valuable materials; including hazardous waste.)

Water Risk
Biodiversity
Waste/Pollution

The Fifth Environmental Targets(FY2021–FY2023)

Society
Governance
Data Section(Note) Consolidated Group Companies will be subject to this target■ Progress on Environmental Targets (KPI: per unit)

1. CO2 emissions/Amount of sales

2. Water usage/Amount of sales
–10

20
15

0.20

0.184

3. Waste generation/Amount of sales

0.183
0.160

15.1
–22.2

13.2

10

12.3

10.5

–32.8
–37.8

5

–20

0.15

–30

0.10

–40

0.05

–50

0

–11.4

–11.4

–22.8
–30.9

–44.4
0

2019
Result (left axis)

2020

2021

Vs. FY2014 (right axis/%)2022*1

Climate change ▶ P.28

[Scope] : * 1 MHI and 163 domestic and overseas Group companies*2 MHI and 143 domestic and overseas Group companies*3 MHI and 116 domestic and overseas Group companies

0.143

2019
Result (left axis)

2020

2021

Vs. FY 2014 (right axis/%)2022*2
Water risk ▶ P.35

0

2.0

–10

1.5

–20

1.0

–30

0.5

–40

0

1.91

1.82

0

1.71

1.53

–10

–11.9
–16.1

–20

–21.1
–29.4

2019
Result (left axis)

2020

2021

Vs. FY2014 (right axis/%)2022*3–30–40

Pollution/waste ▶ P.42

23

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Environmental Management

Sustainability Management>Environment
Environmental Management> Basic Policy on Environmental Mattersand Action Guidelines> Environmental Management> Environmental Targets> ESG Finance> ISO 14001 (environmental management
system)/Education and Collaboration with
Local Communities> Product Stewardship Initiatives

Climate Change
Water Risk
Biodiversity

ESG Finance Initiatives
MHI has defined two growth areas to focus on in its 2021 Medium-term Business Plan,announced in October 2020: “Energy Transition,” which aims to decarbonize the energy
supply side, and “Smart Infrastructure,” which aims to realize decarbonization andpromote energy efficiency, manpower saving in the energy demand side. As part of thefinancing necessary for focusing on businesses in these areas, and promoting
decarbonization, electrification and intelligence in its existing businesses, MHI isutilizing ESG finance such as green bonds and transition bonds.
ESG finance is not merely a means of financing for investments but presents us withvaluable opportunities for dialogue and communication with investors and society atlarge. Through continuous dialogue with investors and our broader stakeholders we will
enhance corporate value by accelerating our energy transition efforts and utilizing
financing arrangements appropriate to these areas.

Waste/Pollution

Society
Governance■ Green Bonds

MHI issued green bonds (Note) in November 2020 and September 2021. All funds procured
through issuance of the MHI Green Bond in 2020 were allocated in full toward theCompany’s business in renewable energy (partial refinancing of investment relating to
offshore wind power systems). Funds raised from the 2nd Series MHI Green Bond issued in
2021 were allocated to the Company’s renewable energy business (wind power systems
and business) and clean energy business (hydrogen power systems and business).
(Note) Green Bonds are unsecured corporate bonds where the proceeds or an equivalent amount will be exclusively applied tofinance or re-finance, in part or in full, new and/or existing eligible Green Projects and which are aligned with the four corecomponents of the Green Bond Principles.

Bond name

Issue date

Outstandingbalance

Interest rate

Redemption
date

38th unsecured corporate bond(2nd Series MHI Green Bond)

September
1, 2021¥15.0 billion

0.090%

September
1, 2026

36th unsecured corporate bond
(MHI Green Bond)

November24, 2020¥25.0 billion

0.140%

November21, 2025

Information on past issues can be found on our website.
https://www.mhi.com/finance/stock/esg/greenbond

Data Section<

Takasago Hydrogen Park, a validation facility for hydrogen power generation>

Establishment and External Evaluation of Green Bond Framework
In preparation for issuance of its green bond, MHI Group has established the MHI Green
Bond Framework in accordance with the Green Bond Guidelines of the International
Capital Markets Association (ICMA).
With respect to evaluation of the green bond’s suitability, the Company has received asecond party opinion (SPO) from Sustainalytics, a third-party
institution, attesting to the bond’s conformity with ICMA’s“Green Bond Principles 2021” and the “Green Bond
Guidelines” (2020 edition) issued by the Japanese Ministry of
the Environment.

24

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Environmental Management

Sustainability Management>Environment
Environmental Management> Basic Policy on Environmental Mattersand Action Guidelines> Environmental Management> Environmental Targets> ESG Finance> ISO 14001 (environmental management
system)/Education and Collaboration with
Local Communities> Product Stewardship Initiatives

Climate Change
Water Risk
Biodiversity
Waste/Pollution

Society
Governance
Data Section■ Transition Bonds<Selection of Model Example for 2021 Climate Transition Finance Model Projects ofMinistry of Economy, Trade and Industry>In March 2022, MHI applied for the 2021 Climate Transition Finance Model Projects of
the Ministry of Economy, Trade and Industry (METI)(Note), and was selected as a model
example. One of the unique features of this model example is that MHI not only plans toachieve emission reduction from its own economic activities but also attempts to enable
the realization of transition strategies of other parties through its products and services.
(Note) A project of METI which provides information on and reduces the assessment costs for examples that are deemed to havemodel qualities in order to promoting the spread of transition finance. Examples that conform to the “Basic Guidelines on
Climate Transition Finance,” formulated by the Ministry of the Environment (MOE) and the Financial Services Agency (FSA),
and have model qualities will be selected as model examples.

In September 2022, MHI issued its first transition bond (Note). Procured funds are being
allocated to development of hydrogen-fired gas turbines and hydrogen manufacturing(blue, turquoise, etc.).
(Note) A type of bond issued by companies seeking to reduce greenhouse gas emissions in order to raise funds for projects
intended to facilitate the transition to a decarbonized society.

40th unsecured corporate bond(1st Mitsubishi Heavy Industries
Transition Bond)

Issue date
September
8, 2022

Guidelines 2020
• LMA, APLMA, LSTA Green Loan Principles• Ministry of the Environment Japan Green Loan andSustainability Linked Loan Guidelines 2020
• ICMA Climate Transition Finance Handbook 2020
• Financial Services Agency, Japan; Ministry of Economy,
Trade and Industry, Japan; and Ministry of the Environment
Japan Basic Guidelines on Climate Transition Finance (May 2021)■ Positive Impact Finance< Issue of 1st Mitsubishi Heavy Industries Transition Bond >Bond name• ICMA Green Bond Principles 2021
• Ministry of the Environment Japan Green Bond

Outstandingbalance

Interest rate

¥10.0 billion

0.310%

Redemption
date
September
8, 2027

Information on past issues can be found on our website.
https://www.mhi.com/finance/stock/esg/transitionbond.html<Establishment and External Evaluation of Green/Transition Finance Framework>
MHI has developed “Mitsubishi Heavy Industries, Ltd. Green/Transition Finance
Framework” for the issue of transition bonds and has obtained a second party opinion
from DNV Business Assurance Japan K. K., an independent external reviewer, that thisframework is aligned with the principles and guidelines at right.

In March 2022, MHI concluded a loan agreement for Positive Impact Finance (financial
products for corporate with unspecified use of funds) with MUFG Bank, Ltd. (contract
amount JPY 2.0 billion yen) (Note).
In concluding this agreement, MHI selected themes from its materiality and othertopics as activities that will contribute to achieving the SDGs (Sustainable Development
Goals). Mitsubishi UFJ Research and Consulting Co., Ltd. carries out qualitative andquantitative evaluations, and MHI has obtained third-party opinions from the Japan
Credit Rating Agency, Ltd. regarding the compliance of its evaluation procedures with
the Principles for Positive Impact Finance and the reasonableness of the performanceindicators used for evaluation.
(Note) Positive Impact Finance (PIF), based on the Principles for Positive Impact Finance and implementation guidelines
formulated by the United Nations Environment Programme Finance Initiative (UNEP FI), is a loan intended to provide
continuous support for corporate activities while comprehensively analyzing and evaluating the impacts (both positive andnegative) those activities have on the environment, society, and the economy.

See here for details.
https://www.mhi.com/finance/stock/esg/positive_impact_finance.html

25

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Environmental Management

Sustainability Management>Environment
Environmental Management> Basic Policy on Environmental Mattersand Action Guidelines> Environmental Management> Environmental Targets> ESG Finance> ISO 14001 (environmental management
system)/Education and Collaboration with
Local Communities> Product Stewardship Initiatives

Climate Change
Water Risk
Biodiversity
Waste/Pollution

Society
GovernanceISO 14001 (environmental management system) Initiatives
The MHI Group operates an environmental management system (EMS) to reduce its environmental impact and contribute to the sustainable development of society. As of March 2024,
our group companies, which account for approximately 80% of our sales, have manufacturing bases that have acquired ISO 14001 certification, the international standard for EMS.
In addition, some group companies have acquired Eco Action 21 certification, an environmental management system standard established by the Ministry of the Environment, andKEMS certification, an environmental management system standard operated by the Kobe Environmental Forum. All of us, including smaller group companies, are working to operate
and maintain EMS practices.

Education and Collaboration with Local Communities Initiatives< Environmental Education for Suppliers >■ Environmental education< Environmental Education and Training for Employees>
We have created an environmental education curriculum based on e-learning and othermethods to educate our employees on the environment and to raise employee
awareness of our Basic Environmental Policy, which calls for efforts to reduce
environmental impact, efforts to reduce energy and water consumption and waste
emissions, and realize the Group’s environmental goals. In addition, training programsfor internal environmental auditors are organized by the Training Center, and specialized
training on daily management procedures and emergency treatment methods isprovided to personnel engaged in painting and the handling of hazardous materials.

Data Section
Record of environmental education for employees in FY2022
Details

TargetEnvironmental
e-learning

MHI and Group companies

All employees

Seminar on
environmental law

MHI and Group companies

Environmental mangers

Participants
Approx. 16,000
851

MHI Group’s Action Guidelines stipulate that we “strive to preserve the environment in
partnership with our stakeholders and gain their understanding of this policy.” Under
these guidelines, we created a section titled “Respect for the Environment” in the MHIGroup Supply Chain CSR Promotion Guidelines, and we communicate that content with
our suppliers.
Supply Chain Management ▶ P.91
■ Coordination with local communities

We are involved in major environmental preservation initiatives that include support fora conservation survey on loggerhead turtles in danger of extinction and forest
conservation activities with local governments and NPOs.
Biodiversity ▶ P.37

26

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Environmental Management

Sustainability Management>Environment
Environmental Management> Basic Policy on Environmental Mattersand Action Guidelines> Environmental Management> Environmental Targets> ESG Finance> ISO 14001 (environmental management
system)/Education and Collaboration with
Local Communities> Product Stewardship Initiatives

Climate Change
Water Risk
Biodiversity
Waste/Pollution

Society
Governance
Data Section

Product Stewardship Initiatives Initiatives■ Life-cycle assessment<

Environmental Standards for Product Development and Assessment ofEnvironmental Impact>

In 2005, we formulated the Basic Guidelines for Environment-Friendly Product
Fabrication as a reference for manufacturing products that contribute to environmental
protection and CO2 reduction.
For example, the Guidelines provide information on environmental impact
assessments throughout the product life cycle and on the creation of products designed
to reduce environmental impact, as follows:• Reduction of energy input at any stage of the product lifecycle, including electricity andsteam used at a factory when manufacturing a product or parts; fuel consumed during
product/parts transportation by truck, etc.; and electricity/fuel used as a power source
when using a product.
• Reduction of material input at any stage of the product life cycle.
• Management easiness, e.g., in terms of parts replacement during a service; easiness of
disassembly or sorting out for collection, recycling and disposal; and safety level of work.

< Reduction to Hazardous Substances in Products>
In accordance with the regulations of the countries and regions in which we provide
products and services, we are working to reduce or eliminate hazardous substances ineach of our businesses. For example, we are working to reduce the lead content of brassmaterial bearings used in medium- and large-sized turbochargers for industrial
machinery to less than 4% (the final target is less than 0.1%) in order to meetcustomers’ needs subject to the EU’s RoHS Directive. This is an application exempt fromthe RoHS Directive and the expiration date is 2024, so it will be reduced by 2024.

■ Environmental Product Declaration< Environmental Product Declaration >Since the majority of our products are industrial products for BtoB sales, we need
confirmation with each customer regarding the precise details required for producttests, provisions, and contracts by going beyond the general Environmental ProductDeclaration in order to ensure the environmental standards and performance to be met.
As for products for the general public, we have air conditioners that are fully compatible
with the Energy Saving Labeling Program authorized by the Ministry of Economy, Tradeand Industry (METI) by meeting 100% of the set energy-saving standards. In addition,certain centrifugal chillers, heat pumps, gas engines, and other units have beenrecognized with the LD-Tech certification of the Ministry of the Environment in Japan for
their leading decarbonization technology. The sales ratio of products subject to theEnvironmental Product Declaration is less than 10%.

27

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Environmental Management

Sustainability Management>Environment
Environmental Management> Basic Policy on Environmental Mattersand Action Guidelines> Environmental Management> Environmental Targets> ESG Finance> ISO 14001 (environmental management
system)/Education and Collaboration with
Local Communities> Product Stewardship Initiatives

Climate Change
Water Risk
Biodiversity
Waste/Pollution

Society
Governance
Data Section■ Collection and Recycling of Used Products< Collection and Recycling of Used Products >Although the majority of our products are industrial products targeted for business tobusiness (BtoB) use, we promote product management throughout their entire life cycle,
including disposal and recycling, through project stewardship centered on eco-designand eco-labeling.
As for products targeted for the general public (BtoC), air conditioners are subject tothe Home Appliances Recycling Law of Japan, and are therefore collected in compliancewith relevant laws and regulations. Furthermore, our rental forklifts are selected fromregistered Rental UP vehicles, inspected, and have parts replaced based on our
in-company standards. These vehicles are then divided into three ranks according to
replacement parts, painting, and warranty period for sale as a “certified second-handvehicle.” We are currently developing this business model as the first of its kind in Japan.
The sales ratio of products subject to product recovery/reuse and recycling is lessthan 10%.

Pick Up[Initiative Example] Recycling processed wastematerial from the composite aircraft wing inhousehold application

Waste materials from composite wings produced for Boeing’s 787 mid-size aircraft isbeing recycled in household application. Carbon fiber waste material generated during
the wing production process is commercially repurposed for use in the pipes andhandles of the “iNSTIK ZUBAQ,” a cordless stick cleaner produced by Mitsubishi Electric
Corporation. The move has put MHI in the lead in building a supply chain that includes
reuse of difficult-to-recycle carbon fiber waste material in a mass-manufactured
product. Effective use of resources has contributed to mitigation of environmental
impact and protection of the global environment, thereby enhancing the Company’s
corporate image.

< Recognizing Outstanding Environmental Contributions through MHI’s Best
Innovation Awards >As part of the Best Innovation Award, the in-house award program, the Environment/
Sustainability Award recognizes products and business activities that contribute to
global environmental conservation and protection, and reduction of environmental loads.
In fiscal 2022, the awards went to two projects: reduction of carbon emissions
through provision of large-capacity centrifugal chillers for high-efficiency districtcooling; and reusing processed waste material from the composite aircraft wing inhousehold application
See here for more details.
MHI website: Products and Initiatives That Contribute to the Environment
https://www.mhi.com/sustainability/environment/commendation.html

Composite material wing of a Boeing 787

Mitsubishi Electric iNSTICKZUBAQ cordless cleaner

28

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Climate Change

Sustainability Management>Environment

Basic Approach and Policy Policy

Environmental Management

MISSION NET ZERO, Our Declaration to Achieve Carbon Neutrality

Climate Change

a carbon neutral society.

We hereby make the declaration of achieving Carbon Neutrality by 2040.

> Basic Approach and Policy> GHG Emissions/Energy Consumption Data
> Activities that Mitigate Climate Change> TCFD Disclosure

Realizing a carbon neutral society is a global issue and we believe that as a technology leader,

MHI has defined two growth areas to focus on in its 2021 Medium-term Business Plan,announced in 2020 : “Energy Transition,” which aims to decarbonize the energy supply side, andwith a proven track record in the field of decarbonization, it is MHI’s responsibility to help lead the“Smart Infrastructure,” which aims to realize the decarbonization, and promote the energy

fight against climate change.
To this end, each and every one of us will be embracing and internalizing MISSION NET ZERO

Water Risk

efficiency, manpower saving in the energy demand side. MHI Group is committed to promoting thebusiness strategies of these two areas, and to advancing the decarbonization of the existing

and will act to implement a Net Zero future, working closely with all of our stakeholders, including

Biodiversity

businesses, electrification, and intelligence, in order to achieve Net Zero by 2040, and to help createclients, partners, academia and local and national governments.

Waste/Pollution

CO2 Emission Reduction Target

Society
GovernanceRoadmap to Achieve Carbon Neutrality

Reduce CO2
emissions across
MHI Group Scope
1&2

Reduce CO2 emissions
across MHI’s value chain
Scope 3 + reductions from
CCUS

2030

–50%
(compared to 2014)–50%(compared to 2019)

2040

Net Zero

Net ZeroTargetYear

Data Section

Scope 1&2: The calculation standard is based on the GHG Protocol.
Scope 3: The calculation standard is based on the GHG Protocol. However, we
also account for reductions achieved by CCUS as an MHI original index.

Mar 2024▼

Oct 2020▼

2021 MTBP

2030
▼

2040
▼

Future MTBPs
50% reduction(compared to 2014)
Reduce CO2 emissions
across MHI Group
Scope 1&2

2050▼

Energy conservation/Implement proprietary technologies/
Implement decarbonized energy sources
Decarbonize factories

Japan & othercountries plan toachieve Net Zero

2040:
Achieve Net Zero

50% reduction(compared to 2019)
Reduce CO2 emissions
across MHI’s value chain
Scope 3 + reductions
from CCUS

Develop and commercialize decarbonization businesses(fuel conversion/energy conservation/electrification)
Expand CCUS business

2040:
Achieve Net Zero

Environmental Targets
The Long-Term Environmental Target (2021–2040) and the Fifth Environmental Targets (FY2021–FY2023) have been established as targets for reducing CO2 emissions, and we areworking to solve the problem of climate change through business activities, products and services. By promoting energy saving activities and improving work processes we are
reducing the energy load and continuing to work to reduce CO2 emissions.

■

Environmental Targets ▶ P.22

29

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Climate Change

Sustainability Management>Environment

GHG Emissions/Energy Consumption Data Results Data

Environmental Management■ GHG Emissions

Climate Change

Direct GHG emissions (Scope 1)*1

> Basic Approach and Policy> GHG Emissions/Energy Consumption Data
> Activities that Mitigate Climate Change> TCFD Disclosure

Water Risk

Indirect GHG emissions (Scope 2)*1
(Unit: kt-CO2)(Unit: kt-CO2)

200

185

173
151

150

168

Society

500

495
399

419

371

411

362

300

100

200

50

100
0

0

2019

2020

2021

2019

2022
Location-based*2

Governance
Data Section

526

400

Biodiversity
Waste/Pollution

577

600

Energy consumption*1

2021

2022

Total energy consumption/Renewable energy consumption*1(Unit: GWh)

(Unit: GWh)

2,500

150

2,115
1,835

2,000

1,882

(Unit: %)

15
117

1,862

6.4

1,000

109

99

100

1,500

10
5.3

50

500
0

2020

Market-based*3

5.9

5

18

2019

2020

2021

2022

0.9

0

2019
Total energy consumption (left axis)

2020

2021

2022

0

Renewable energy consumption (right axis)*1 Coverage: MHI and domestic and overseas Group companies (157 companies in FY2019, 156 companies in FY2020, 158 companies in FY2021, and 163 companies in FY2022 [accounting for 98% of net sales])*2 Calculated using the national average emission factors published by the Ministry of the Environment and country average emission factors from IEA Emission Factors published by the International Energy Agency (IEA).
*3 Calculated using emission factors by electricity utility operator. However, if emission factors by electricity utility operator are not available, country emission factors from IEA Emissions Factors are used.

■ Other indirect GHG emissions (Scope 3)

Refer to the Data Section.
Data Section ▶ P.126

Refer to the Data Section for electricity purchase volumes, energy usage records (domestic) and third party-verified data.
Data Section ▶ P127-128

30

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Climate Change

Sustainability Management>Environment
Environmental Management
Climate Change> Basic Approach and Policy> GHG Emissions/Energy Consumption Data
> Activities that Mitigate Climate Change> TCFD Disclosure

Water Risk
Biodiversity
Waste/Pollution

Society
Governance
Data Section

Activities that Mitigate Climate Change Initiatives■ Initiatives in Business Activities<>

Energy-saving Activities
To reduce emissions of CO2 and other greenhouse gases from our operations, MHI Group
conducts a range of activities to conserve and raise the efficiency of energy at each site,
including the shift to LED lighting and highly energy-efficient substation equipment.
In addition, in accordance with the Act on Rationalization of Energy Use and Shift to
Non-fossil Energy, the Company (*non-consolidated) is aiming to reduce unit energy
consumption by an average of 1% per year.

<Introduction of renewable energy>
MHI Group, at some of its business sites, works to reduce emissions of CO2 and othergreenhouse gases by shifting to renewable energy and using electricity. Each site has
installed photovoltaic (PV) systems and purchases electricity generated throughhydroelectric power. In March 2018, PV systems were installed on the rooftop of theThailand plant of Mitsubishi Turbocharger Asia Co., Ltd, reducing annual CO2 emissions
by nearly 3,000 tons, for which the company received high acclaim from the Thaigovernment as it contributed to the country’s reduction of CO2 emissions. Furthermore,
the electricity generated by the White Deer Wind Farm operated in the group exceeded
the electricity used by Group companies in the United States in fiscal 2022. In fiscal
2022, electricity consumption in the United States was derived from 100% renewableenergy through a Renewable Energy Certificate (REC),and is reducing CO2 emissions by
about 32,000 tons per year. Furthermore, at our Mihara Works, in order to achieve a“carbon neutral factory” with completely zero CO2 emissions within the plant by the endof fiscal 2023, we work with electric utilities to introduce solar power generationequipment and other measures.

■ Product and service initiatives<Development of Various Products>
MHI Group is working to create a low-carbon society across a broad spectrum of fields,
including large-scale power generation technologies such as highly efficient thermal
power generation plants and nuclear power plants; power generation systems thatutilize wind, geothermal, and other renewable energies; ships and transportation
systems for improving the efficiency of the transportation sector; and high energysaving air-conditioning systems that use heat pump technology; and CCUS that captures
CO2 for utilization or storage.

<Incentives Toward Management Activities Related to the Issue of Climate Change>
MHI Group introduced as part of its “Best Innovation” in-house award program theEnvironment/Sustainability Award, which recognizes products and business activities
that contribute to global environmental conservation and protection, and reduction ofenvironmental loads. Award winners receive rewards of up to several hundred
thousands of yen. In fiscal 2023, awards were given for products or activities aimed at
mitigating climate change, including “A liquefied CO2 handling system that accelerates
building of a CCUS value chain” and “Factory decarbonization project at Mihara
Machinery Works demonstrating how CO2 emissions can be significantly reduced.”
See here for more details.
MHI website: MHI Group Presents “Best Innovation 2023” Awards
https://www.mhi.com/news/240221.html

31

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Climate Change

Sustainability Management>Environment
Environmental Management
Climate Change> Basic Approach and Policy> GHG Emissions/Energy Consumption Data
> Activities that Mitigate Climate Change> TCFD Disclosure

Water Risk
Biodiversity
Waste/Pollution

Society
Governance

TCFD Disclosure
MHI Group has endorsed the Task Force on Climate-Related Financial Disclosures’(TCFD) recommendations and discloses climate-related information in accordance with
the TCFD recommendations.
■ 1. Governance System

MHI Group has identified the “provision of energy solutions to enable a carbon-neutral
world” as a material issue under our materiality framework (“materiality”), which
responds to the important global issue of climate change.
Our materiality initiatives help us to realize sustainability management throughout
our business operations. Through this approach to materiality, we aim to increase ourcorporate value and drive medium- and long-term growth. The Materiality Council,
which was established on October 1, 2021, and is chaired by the MHI Group President,

meets twice a year to monitor business activities aimed at achieving materiality targets
and to direct business divisions to take appropriate actions. In addition, ourSustainability Committee, which is chaired by the Chief Strategy Officer (CSO), generally
meets twice a year to address sustainability issues raised by our stakeholders. In orderto further strengthen ESG initiatives, the committee’s members are made up of
corporate officers in our corporate-center functions and officers in charge of domains
and segments in accordance with the agenda. The CSO is responsible for the analyses
based on the TCFD recommendations and reporting within the Sustainability Committee.
Climate change-related risks and opportunities are factors that each business unit
considers when developing their respective business plans. The committee also reports
to the Board of Directors regularly on the status of the Sustainability Committee’s
activities, including disclosures in accordance with TCFD recommendations.

Sustainability Promotion System

Data Section

Board of Directors

Materiality Council

Sustainability Committee

Promote business activities that achievemateriality goals
Chairman: CEO

Hold the Group accountable forresponses to issues related tosustainability based on the perspectivesof stakeholders• Discuss promotion of sustainability
management• Further strengthen ESG initiatives
implemented• Promote corporate philanthropy, etc.
Chairman: CSO

Established five subcommittees for each Materiality
Provide energy
solutions to enablea carbon neutral
worldTransform society
through Al anddigitalization

Build a safer andmore secure world

Promote diversity
and improve
employeeengagement

Enhance
corporate
governance

CSO
Senior General
Manager, Growth
Strategy OfficeSenior General
Manager, Growth
Strategy Office

CTO

In charge of HR

GC

Administrative office: Sustainability Relations Department

32

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Climate Change

Sustainability Management>Environment
Environmental Management
Climate Change> Basic Approach and Policy> GHG Emissions/Energy Consumption Data
> Activities that Mitigate Climate Change> TCFD Disclosure

Water Risk
Biodiversity
Waste/Pollution

Society■ 2. Strategies (Scenario Analysis)<Climate Scenarios>

MHI Group has developed the following two climate change scenarios and assessed
their future impact on each business in 2030.

1 Decarbonization Scenario

A “scenario to promote decarbonization through stricter climate change policies,” which aims
to achieve economic growth while limiting the global average temperature rise to a maximumof 1.5°C above pre-industrial levels in the year 2100.
2 Fossil Fuel Dependency Scenario

A “scenario in which climate change policies are not made stricter and the dependence on
fossil fuels proceeds,” which assumes a global average temperature increase of 4.0°C above
pre-industrial levels in the year 2100.

Governance
Data Section<Risks and Opportunities under the Hypothetical Climate Scenarios>
As a transition risk shared by the Group, the Decarbonization Scenario assumes that
regulations such as carbon taxes will be escalated, and the cost of carbon emissions
will rise significantly. However, we believe there are numerous business opportunities
to be had by leveraging the strengths of our emission reduction-supporting products
and technologies.
The Fossil Fuel Dependency Scenario, on the other hand, focuses on the physicalrisks associated with climate change.
In terms of opportunities, as it is difficult to imagine that future regulations will beeased in developed countries that are already promoting various environmental
regulations, we can assume that business opportunities will arise by offering thebenefits of our emission reduction technologies.

<Selection of Analysis Scope and Determination of Risk/Opportunity Impact>
We have conducted an examination of the risks and opportunities associated with thetwo climate scenarios described at left in terms of what should be addressed as a wholeGroup and what should be incorporated into the strategies of each individual business.
In the strategy by business, businesses were selected for analysis based on thefollowing criteria.
• Businesses of a certain size (generally ¥200.0 billion) or larger that aresubstantially impacted by decarbonization• Businesses that may be small currently but are expected to grow significantly on
the impact of decarbonization
Also, regarding the determination of the relative impact of risks and opportunities,
the difference in business profit between end-FY2023 and 2030 was estimated andbusinesses categorized as follows.
Large: Impact on business profit of ¥10.0 billion or more
Medium: Impact on business profit between ¥5.0 billion and less than ¥10.0 billion
Small: Impact on business profit of up to ¥5.0 billion
Going forward, we will work to expand and refine the scope of analysis for risks andopportunities based on changes in the business environment.

33

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Climate Change

Sustainability Management>Environment
Environmental Management
Climate Change> Basic Approach and Policy> GHG Emissions/Energy Consumption Data
> Activities that Mitigate Climate Change> TCFD Disclosure■ 2. Strategies (Scenario Analysis)

Risk and opportunity analysis results for major products organized by business domain in a decarbonization scenario.
Regarding the determination of the relative impact of risks and opportunities, the difference in business profit between end-FY2023 and 2030 was estimated and businesses
categorized as follows.
Large: Impact on business profit of ¥10.0 billion or more

Waste/Pollution

Energy Systems

Data Section

Technology

Content• Delayed development ofhydrogen gas turbines

ImpactResponse

Small• Adhere to the development schedule

Steam Power—• No significant risk exists under
this precondition(Note)——

Nuclear power—• No significant risk exists under
this precondition——

Plants and Infrastructure Systems
Type

Content

Impact

CO2 Capture
SystemTechnology•D ecline in the competitiveness of
our current CO2 capture
technology• Emergence of innovative
alternative technologies

Small

Metals
Machinery—• No significant risk exists under
this precondition(Note)—

Response• Improve the current CO2 capture
technology• Expand our CO2 capture technology
lineupLogistics
Systems

Type

Content

ImpactMarket/Customer
Trends• Reduced demand for conventionalmodels due to the shift tocarbon-neutral fuels andelectrification of vehicles

Medium• Possible reduction of service
revenue due to the shift fromengine to battery forklift trucks

Small

Market/Customer
TrendsType

Response• Introduce products compatible withcarbon neutrality to the market-Hydrogen-powered engines-Electric compressors for fuel cells• Consider ways to expand service
revenue from battery-powered forklifts

Content

ImpactMeasures

GTCC

Market/Customer
Trends• Increased demand for products
and services that promote
carbon neutrality

Small• Promote development of hydrogen gas
turbines• Promote solutions that combine GTCC
and CCUS

Steam Power

Market/Customer
Trends• Increased demand for products
and services that promote
carbon neutrality

Small• Promote ammonia co-firing/mono-firing conversion

Nuclear power

Changes inpolicyandlegislation.
Market/Customer
Trends• Promote policies aimed at
maximizing nuclear power use
in Japan• Increasing importance of energy
security• Increased demand for products
and services that promote
carbon neutrality

Large• Promote the new construction ofadvanced light water reactors, provide
support for restarting existing plants(PWR/BWR), and provide maintenancefor restarted plants

ImpactMeasures

Plants and Infrastructure Systems
Type

Content

CO2 Capture
SystemChanges inpolicyandlegislation.
Market/Customer
Trends• Development of legal/tax systems
in various countries and regions• Increased demand for products
and services that promote
carbon neutrality

Large

•P
 romote CO2 capture business in North
America, Europe, etc., where progresshas been made in establishing thelegislation, tax systems•E xpand our CO2 capture-related
product lineup and develop new
business model• Promote strategic partnerships

Metals
MachineryMarket/Customer
Trends• Increased demand for products
and services that promote
carbon neutrality

Small• Promote the development of hydrogen
reduction steelmaking equipment, andencourage the replacement of existing
plants—

Logistics, Thermal & Drive Systems

Engines andTurbochargers: Impact on business profit of up to ¥5.0 billion

Energy Systems
Type

GTCC

Small

<Opportunities>

Society
Governance: Impact on business profit between ¥5.0 billion and ¥10.0 billion<Risks>Water Risk
Biodiversity

MediumLogistics, Thermal & Drive Systems(Note) In determining the impact of risks and opportunities, we compared the impact on business profit between the end of
FY2023 and 2030. Based on this, the risks associated with declining demand for coal-fired power plants and carbonintensive steelmaking plants have been factored into the FY2023 figures (base plan figures).
GTCC: Gas Turbine Combined Cycle

Type

Content

ImpactMeasuresEngines andTurbochargers

Market/Customer
Trends• Increased demand for products
and services that promote
carbon neutrality• Tightening of environmental
regulations in emerging
countries

Small• Introduce products compatible withcarbon neutrality to the market-Hydrogen-powered engines-Electric compressors for fuel cells• Expand sales to new customers,
especially those in emerging countries

Logistics
Systems

Market/Customer
Trends• Increased demand for products
and services that promote
carbon neutrality

Small• Provide competitive battery-powered
forklift trucks as well as eco-friendly
port handling equipment (RTG)

34

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Climate Change

Sustainability Management>Environment
Environmental Management
Climate Change> Basic Approach and Policy> GHG Emissions/Energy Consumption Data
> Activities that Mitigate Climate Change> TCFD Disclosure

Water Risk
Biodiversity
Waste/Pollution

Society
Governance
Data Section■ 3. Metrics and Targets(1) Our Declaration to Achieve Carbon Neutrality by 2040
In October 2021, MHI Group planned and announced two new targets aimed at achieving
a carbon neutral society.
The first target is to reduce the Group’s CO2 emissions (Scope 1, 2 (Note 1)) to net zeroby 2040. As an interim target, we also plan to reduce emissions by 50% by 2030 (versus
2014 levels). This represents a reduction of CO2 emissions from production activities at
the Group’s plants and other facilities. Through such efforts, we are committed toachieving carbon neutral plants by applying our developed technologies and promoting
further energy saving.
The second target is to achieve net zero CO2 emissions across the entire value chain by
2040. As an interim target, we also plan to reduce emissions by 50% by 2030 (versus 2019
levels). This is primarily based on our customers reducing CO2 emissions (Scope 3 (Note 2)),through the use of our Group’s products, as well as reduction contributions from thewidespread use of CCUS.
The Group possesses a broad selection of technologies and solutions in all businessareas, including the decarbonization of customers’ existing equipment, and will continue
contributing to the reduction of global CO2 emissions by offering a variety of solutions.
(Note 1) Scopes 1 and 2 of the GHG Protocol, an international standard for the accounting and reporting of greenhouse gas(GHG) emissions.
(Note 2) Scope 3 of the GHG Protocol, an international standard for the accounting and reporting of greenhouse gas(GHG) emissions.

Target Year

Reduce CO2 emissions across
MHI Group
Scope 1&2

Reduce CO2 emissions across
MHI’s value chain
Scope 3 + reductions from CCUS

2030

–50% (compared to 2014)–50% (compared to 2019)

2040

Net Zero

Net ZeroSee here for more details

MISSION NET ZERO, Our Declaration to Achieve Carbon Neutrality ▶ P.28

(2) Progress
We are making steady progress toward our interim target for CO2 reductions by 2030.
As of the end of fiscal 2022, we have reduced emissions by approximately 530,000 tonsin Scope 1 and 2 and by approximately 1.2 billion tons in Scope 3.
Scope 3 has a total of 15 categories, but the Company’s Scope 3 emissions arearound 99% accounted for by CO2 emissions from product use (Category 11), and ourmain activities are aimed at reducing these emissions. Going forward, we will refine
measurements for the other categories as well and consider reductions.
■ 4. Risk Management System

Transition risks and physical risks are factors we consider when developing amanagement plan in all business divisions. The Sustainability Committee verifies thefindings of analyses related to the aforementioned climate change risks andopportunities.
The activities of the Sustainability Committee, including the aforementioned, are also
regularly reported to the Board of Directors.
See here for details.
MHI website: Disclosures Based on TCFD Recommendations
https://www.mhi.com/sustainability/environment/climate_tcfd.html

35

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Water Risk

Sustainability Management>Environment
Environmental Management
Climate Change
Water Risk
> Basic Approach and Policy/
Management System/Initiatives> Quantity of Water Intake Data

Biodiversity
Waste/Pollution

Society

Basic Approach and Policy Policy
The MHI Group set targets for reducing water consumption in the Fifth Environmental Targets (FY 2021 to FY 2023). We are working to reduce the amount of water used in our businessactivities by carrying out early repairs and process improvements through water leakage surveys. At some sites, wastewater from production activities is treated using on-sitewastewater treatment facilities and a portion of the water is reused to flush toilets. In addition, from the viewpoint of ensuring the quality of wastewater, regular monitoring is
conducted to prevent water pollution.

Management System Systems
In the Fifth Environmental Targets, which were set by the Environment Committee, reduction targets were set in relation to the effective use of water resources, and measures arebeing undertaken on a Groupwide basis. We have created an action plan to reduce water consumption and appropriately manage water resources through each Group subsidiary’s
environment-management program and similar measures. We monitor the progress of the effort by each subsidiary, using an IT system that allows for compilation and reporting ofwater-related data.

GovernanceInitiatives Initiatives

Data Section■ Water Risk Assessment at Main Production Sites

MHI Group conducted a water-stress survey of production bases with highwater intake in Japan and abroad using the Aqueduct Water Risk Atlas(ver. 3.0). Four of the surveyed facilities (17%) are in regions rated“high-risk” and above. Based on the survey results and analysis, we will
identify high water-risk facilities, specify water risks, strengthen measuresand raise the level of risk-management to best fit each facility.

Source: World Resource Institute’s Aqueduct tool

36

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Water Risk

Sustainability Management>Environment
Environmental Management■ Products contributing to the reduction of water use

For example, desalination plants for converting sea water into plain water are often built in combination with power plants constructed in Saudi Arabia, where water resources arelimited. Combining our products from a wide range of areas, MHI has been delivering solutions for issues pertaining to water resources.

Climate Change
Water Risk
> Basic Approach and Policy/
Management System/Initiatives> Quantity of Water Intake Data

Biodiversity
Waste/Pollution

Society
Governance
Data Section

Quantity of Water Intake Data Results■ Water Usage(ten thousand m3)

1,000

840

800

741

682

674

175

169

250

233

230

293

274

274

2019

2020

2021

2022

Industrial water

Groundwater

207

198

600
315

400
200

318

0
Tap water[Coverage] MHI and domestic and overseas Group companies (142 companies in FY2019, 139 companies in FY2020, 144 companies in FY2021, 143 companies in FY2022 [accounting for 94% of net sales])See here for other water-related data

Data Section ▶ P.129

37

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Biodiversity

Sustainability Management>Environment
Environmental Management
Climate Change
Water Risk
Biodiversity> Basic Policy on Biodiversity/
Biodiversity Goals/Corporate Structure
on Biodiversity> Biodiversity Initiatives

Waste/Pollution

Society

Basic Policy on Biodiversity Policy
Today, rapid loss of biodiversity and natural capital is recognized internationally.
The Kunming-Montreal Global Biodiversity Framework adopted at the 15th meeting of
the Conference of the Parties to the UN Convention on Biological Diversity (COP-15) in
December 2022 called for nature-positive initiatives to halt and reverse biodiversity loss
to put nature on a path to recovery as its mission for 2030, and to achieve a world thatlives in harmony with nature as its vision for 2050.
MHI Group’s business activities both depend on and have potential to impact
biodiversity and natural capital in various ways. In keeping with the Kunming-Montreal
Global Biodiversity Framework, the Group profoundly recognizes the importance ofadopting nature-positive initiatives, and to realize a world that lives in harmony withnature by 2050. MHI Group will undertake the initiatives to conserve and restore
biodiversity and natural capital.

Governance
Data Section■ MHI Group’s Declaration on Biodiversity

MHI Group issued the “MHI Group’s Declaration on Biodiversity” in April 2023.
MHI Group’s Declaration on Biodiversity April 2023
Recognizing that our business activities both depend on and have potential to impact biodiversity
and natural capital, MHI Group aims to realize the vision of a world that lives in harmony withnature by 2050 and declares that we will undertake the following initiatives:
1. Identify dependencies and potential impacts of Group business activities on biodiversity and natural capital
2. S trive to mitigate negative impacts on biodiversity and natural capital in all aspects of our businessactivities, including product R&D, design, procurement of raw materials, manufacture, transport, usage,
service, and disposal
3. R ecognize that biodiversity loss and climate change are closely linked and treat biodiversity loss as one of
the most important management issues together with climate change
4. P romote recovery of nature and revitalization of regions through environmental stewardship initiatives topreserve biodiversity and natural capital
5. S hare knowledge through collaboration with stakeholders to improve effectiveness of initiatives forbiodiversity and natural capital
6. R aise awareness on biodiversity and natural capital among all Group employees through environmental
education

MHI Group’s Declaration on Biodiversity
https://www.mhi.com/sustainability/environment/pdf/declaration_on_biodiversity_e.pdf

Biodiversity Goals Goals■ Realize a world in harmony with nature

To realize a world in harmony with nature by 2050, we will strive to mitigate negative impacts of business activities on biodiversity and natural capital and contribute to recovery of
biodiversity and natural capital through our businesses and environmental stewardship initiatives.

Corporate Structure on Biodiversity Corporate Structure■ Officer in charge: CSO■ Deliberative body: Sustainability Committee (meets twice a year)■ Department in Charge: Sustainability Relations Department

As one of the EGS measures being undertaken by MHI Group on a priority basis, we are promoting biodiversity initiatives led by the Sustainability Committee.
The activities of the Sustainability Committee, which include biodiversity initiatives, are regularly reported to the Board of Directors.

38

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Biodiversity

Sustainability Management>Environment
Environmental Management
Climate Change
Water Risk

Biodiversity Initiatives Initiatives■ Biodiversity Risk Assessment

Risk assessment process utilizing the LEAP approach

Recognizing the importance of location-based analysis for understanding dependencies
and impacts on nature, we are working on biodiversity risk assessment through theprocess at right, referring to the LEAP*1 approach presented in the TNFD framework.

STEP 1 Locate our interface with important areas to nature
STEP 2 Evaluate dependencies and impacts on nature
STEP 3 Assess risks and opportunities related to dependencies and impacts on nature

Biodiversity> Basic Policy on Biodiversity/
Biodiversity Goals/Corporate Structure
on Biodiversity> Biodiversity Initiatives

Waste/Pollution

Society
Governance
Data Section

STEP 4 Prepare to respond to nature-related risks and opportunities<Locate Interfaces with Areas of Biodiversity Importance Utilizing IBAT* >2

As STEP 1, we used IBAT*1, a tool recommended by the TNFD, to investigate the interface with areas of biodiversity importance within a 3 km radius of 99 MHI Group operational sites,
mainly major production sites around the globe.
The targets of our investigation were protected areas for biodiversity (World Heritage Sites, Ramsar Convention wetlands, UNESCO MAB biosphere reserves, IUCN Protected Area
Categories Ia, Ib, II and III), and Key Biodiversity Areas (KBA).
As a result, we spotted 3 Ramsar Convention wetlands, 1 UNESCO MAB biosphere reserve, 2 IUCN Category Ia areas, 1 IUCN Category II area, 1 IUCN Category III area and 11 KBAs
within a 3 km radius of the operational sites.
Investigation results: Number of areas of biodiversity importance close to MHI Group sites
Areas of biodiversity importanceProtected areas

Locations ofoperational
sites
investigated(number ofsites)Key Biodiversity Areas(KBA)

IUCN Protected Area Categories

World Heritage sites

Ramsar Convention
wetlands

UNESCO MAB

Ia

Ib

II

III

1. Japan (36 sites)

0

1

0

0

0

0

0

3

2. Asia (31 sites)

0

0

0

0

0

0

0

3

3. Europe (8 sites)

0

2

0

2

0

1

0

3

4. North America (21 sites)

0

0

1

0

0

0

0

2

5. South America (3 sites)

0

0

0

0

0

0

1

0

Total operational sites
investigated (99 sites)

0

3

1

2

0

1

1

11

*1 LEAP: An assessment process for nature-related risks and opportunities, comprised of the following 4 phases: Locate the organization’s interfaces with nature, Evaluate dependencies and impacts, Assess risks and opportunities, and Prepare to respond to naturerelated risks and opportunities and report.
*2 IBAT (Integrated Biodiversity Assessment Tool): One of TNFD’s recommended tools, it can survey protected natural areas, habitats of endangered species, etc. around a target location based on latitude and longitude information.

39

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Biodiversity

Sustainability Management>Environment
Environmental Management

Mediation of sensory
impacts

Flood and storm
protection

Mass stabilizationand erosion control

L

VL

M

VL

M

VL

Auto Parts & Equipment

M

M

VL

M

L

L

VL

M

VL

M

VL

Construction Machinery& Heavy Trucks

M

M

VL

M

L

L

VL

M

VL

M

VL

Industrial Machinery

M

M

VL

M

L

L

VL

M

VL

M

VL

Heavy Electrical
Equipment

M

M

VL

M

L

L

VL

M

VL

M

VL

Household Appliances

M

M

VL

M

L

L

VL

M

VL

M

VL

Very High

High

MediumLow

Pest control

Filtration

L

Disease control

Dilution by atmosphere and ecosystem

M

Climate regulation

Water quality

Buffering and attenuation of mass flows

Water flow
maintenance

VL

Bio-remediation

Ventilation

M

Soil quality

M

Pollination

Data Section

Aerospace & Defense

Maintain nursery
habitats

GovernanceProtection from Disruption

Surface water

Society

Sub-industry

Waste/Pollution

Mitigates Direct
Impacts

Enables Production Process

Groundwater> Basic Policy on Biodiversity/
Biodiversity Goals/Corporate Structure
on Biodiversity> Biodiversity Initiatives

Heat map on
dependencies

Genetic materials

Biodiversity

Direct Physical Input
Fibres and othermaterials

Water Risk

Ecosystem Services>

Animal-basedenergyClimate Change<

Evaluate Potential Dependencies andImpacts on Nature Using ENCORE*
Next, as STEP 2, we used ENCORE asrecommended by TNFD to evaluate themateriality of potential dependencies
and impacts of our business on nature
at the operational sites confirmed in
STEP1 as located close to areas of
biodiversity importance, as Very High,
High, Medium, Low, or Very Low.
As a result, no material items wereidentified as High or Very High forpotential dependencies on nature. On
the other hand, five material items wereidentified as High for potential impacts
on nature.
We will conduct detailed risk
assessment based on the results of
STEP1 and STEP2 and continue businessactivities with even further
consideration given to biodiversity.

Very Low

Impact Drivers
Land/freshwater/ocean usechangeClimatechangePollution

Other

GHG
emissions

Non-GHG air
pollutants

Waterpollutants

Soilpollutants

Solid waste

Disturbances

H

H

H

M

Auto Parts & Equipment

H

H

M

H

H

H

M

Construction Machinery& Heavy Trucks

H

H

M

H

H

H

M

Industrial Machinery

H

H

M

H

H

H

M

Heavy Electrical
Equipment

H

H

M

H

H

H

M

Household Appliances

H

H

M

H

H

H

M

Sub-industry

Very High

High

MediumLow

Very Low

Other
resourceuse

M

Water use

H

Marineecosystemuse

H

Freshwater
ecosystem
use

Aerospace & Defense

Heat map on impacts

Terrestrial
ecosystemuse* ENCORE (Exploring Natural Capital Opportunities, Risks
and Exposure): One of TNFD’s recommended tools,
potential dependencies and impacts on nature can beassessed for each of 11 sectors and 157 sub-industries.

Resource use

40

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Biodiversity

Sustainability Management>Environment
Environmental Management
Climate Change
Water Risk
Biodiversity> Basic Policy on Biodiversity/
Biodiversity Goals/Corporate Structure
on Biodiversity> Biodiversity Initiatives

Waste/Pollution

Society
Governance
Data Section■ Collaboration with Stakeholders<Collaboration with NPOs>

Tanegashima: Supporting conservation survey for loggerhead turtles in danger of extinction
Since 2015, in Tanegashima, a key location for the Group’s rocket launch business, MHI Group has offered its support
for the Tanegashima Loggerhead Turtle Survey, an event sponsored by Earthwatch Japan, an authorized NPO. The
loggerhead turtle is in danger of global extinction. Although Tanegashima is the second largest spawning ground forthe loggerhead turtle, there have been very few individual identification surveys conducted in the past for the
purpose of preservation. Accordingly, we anticipate that the Tanegashima Loggerhead Turtle Survey will not only help
to clarify the ecology of the loggerhead turtle but also lead to its conservation.
In local surveys, our employees participate as volunteers. Under the guidance of the NPO Sea Turtle Associationof Japan, they put identification tags on mother turtles that laid eggs and check the scute and weights of newly
hatched turtles.

<Collaboration with Local Governments>
Forest conservation
In recent years, MHI Group has been an active supporter of corporate forestry programs together withlocal governments and other organizations. We are involved in ongoing local government forest
conservation programs. Centering on employees and their families, tree planting and thinning efforts
are underway to protect the forests that provide habitats for diverse organisms.
• At the Sagamihara Machinery Works, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. hasworked with Kanagawa prefecture as partners in forest rebuilding through the Kanagawa Water
Forest Creation Project every year since 2009, assisting with planning and carrying out forest
conservation activities. The purpose of this partnership is to raise awareness for the conservation of
the natural environment among employees.
• Since 2009, Mitsubishi Heavy Industries Thermal Systems, Ltd. has endorsed the initiative by namingthe “Corporate Forest” in Mie Prefecture “Beaver Forest Kihoku”. The employees regularly visit thesite to plant trees and maintain the side road.
• At Mitsubishi Power Gas Turbine Engineering Technology (Nanjing) Co., Ltd. in China, around 100
employees and their family members planted 50 Chinese tallow trees at the Laoshan National Forest
Park on the outskirts of Nanjing.

Researchers putting on a tag*

A mother turtle came to lay eggs** Infrared photo

Identification tags to be put on motherturtles that lay eggs

Using a drone to study loggerhead turtle
footprints from the sky (indicated by thearrow)

Reforestation work on slopes

Participants doing thinning

Forest planting outside of Nanjing, China

41

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Biodiversity

Sustainability Management>Environment
Environmental Management
Climate Change
Water Risk
Biodiversity■ Conservation initiatives at operational sites■ Participation in initiatives

At Takasago Machinery Works, we created a greening mound for native species at the
Takasago combined cycle plant validation facility in consideration of the ecosystem.
We have also established flowerbeds to preserve and grow Salvia plebeia and Carex
neurocarpa Maxim, rare plants.

MHI is an active participant in the “Declaration of Biodiversity by
Keidanren and Action Policy (Revised Edition).” As of August 21,
2023, a total of 283 companies and organizations are either
carrying out a multiple number of the 7 items listed under thisinitiative launched by Keidanren (Japan Business Federation),or agree with its overall idea and purposes.

<Takasago Machinery Works: Flowerbeds that Take in Account the Ecosystem Created
Based on an Environmental Assessment>> Basic Policy on Biodiversity/
Biodiversity Goals/Corporate Structure
on Biodiversity> Biodiversity Initiatives<Participation in “Declaration of Biodiversity by Keidanren”>

Keidanren: Declaration of Biodiversity Initiative
https://www.keidanren-biodiversity.jp/logo_en.php

Waste/Pollution■ Raising awareness of biodiversity and natural capitalSociety<Environmental Education for Employees>

GovernanceThrough e-learning-based environmental and sustainability education, we are working
to raise the awareness of employees with regard to biodiversity and natural capital.

Data Section“Green road” at Takasago Machinery Works■ Consideration for biodiversity across the supply chain

MHI Group has included items related to consideration for the environment in the MHIGroup Supply Chain CSR Promotion Guidelines and requests its business partners to
conduct activities with consideration for biodiversity and ecosystems.
MHI: Promotion of CSR Procurement
https://www.mhi.com/company/procurement/csr

42

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Waste/Pollution

Sustainability Management>Environment
Environmental Management
Climate Change
Water Risk
Biodiversity
Waste/Pollution> Basic Approach and Policy/
Management System/Waste Generation/
VOC Emissions Data

Society
Governance
Data Section

Basic Approach and Policy Policy
As part of the Fifth Environmental Targets (FY2021–FY2023), we set targets to reduce waste generation, including hazardous waste, promote thorough separation and reuse of waste,
and reduce waste generation by minimizing resources. Regarding volatile organic compounds (VOCs), which are important air pollutants, we set internal targets to reduce levels of
xylene, toluene, and ethylbenzene—chemicals that are emitted in large volumes—in the atmosphere, while continuously monitoring air emissions.

Management System System
In the Fifth Environmental Targets, which were set by the Environment Committee, consistent Groupwide reduction targets were set in relation to reducing waste discharge,
and measures are being undertaken on a Groupwide basis. We have created an action plan to reduce waste discharge through each Group subsidiary’s environment-management
program and similar measures. Regarding data related to waste and volatile organic chemicals (VOC), an IT system is used for compilation and reporting to review the progress ofeach company.

Waste Generation/VOC Emissions Data Results Data
■ Waste generation* 1,2■ Hazardous waste generation* 2■ VOC emissions* 3

Waste generation

Waste generation

Total(Unit: thousand tons)(Unit: thousand tons)(Unit: tons)

200

15

1,000

160
150

137

144

133

10

10

11

11

9

100

815
750
500

5

50

182
339

250
294

0

2019

2020

2021

2022

0

2019

2020

2021

2022

0
Toluene*1 Including valuables.
*2 C overage: MHI and domestic and overseas Group companies (116 companies in FY2019, 119 companies in FY2020 and FY2021, and 116 companies in FY2022[accounting for 91% of net sales])See here for other pollution and waste data

Data Section ▶ P.130

741
155
274
312

2019

2020

XyleneEthylbenzene

558

585

104

129

217

229

237

227

2021

2022

*3 Coverage: MHI and domestic Group companies (28 companies in FY2019, 25
companies in FY2020, 27 companies in FY2021, and 25 companies in
FY2022 [accounting for 72% of net sales])43

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace

Society

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management

44 Human Rights
44
45

Basic Approach46
48

77 Product Safety

63

Basic Approach and Policy/
Recruitment System and Initiatives

77

Basic Approach/Product Safety andQuality Management

Improve Engagement78

Human Rights Due Diligence64
66

Quality and Safety Programs for
Key Products

Human Rights Awareness
Dissemination and Education

67

Main Systems and Initiatives toPromote Autonomous Workstyles
among Employees

System for Promoting Respect for
Human Rights

49 Ensuring Diversity, Equity, andInclusion in the Workplace

49
50

Basic Approach and Policy/System

Governance

51

Data Section

Initiatives to Promote theAdvancement of Female

53

Efforts beyond Female Empowerment

Social Contribution Activity

63 Talent Attraction and Retention

68

Major Systems and Measures to
Support a Good Work-Life Balance

69

Approach to Work Conditions/
Data on Workstyles and Support for
Work-Life Balance

Data Related to Diversity andEqual Opportunity

54 Human Resources Development
54
55

Basic Approach and Policy

57
58

Training Hours and Training Costs

60

Human Resource Development
Initiatives for Mid-Level Employees

61

Human Resource Development
Initiatives for Junior Employees

62

Human Resource Development
Initiatives to Strengthen Business
Operations through Digital Technology

Human Resource Development
Structure

Initiatives to Develop Leadership
Human Resources

Initiatives for Career-Development
and Feedback

70 Occupational Safety and Health70

Basic Approach and Policy/
Safety and Health System

71

Data on Occupational Safety
and Health72
73

Safety and Health Initiatives

74

MHI Group Health and Productivity
Management Structure

75

Health Promotion Programsand Initiatives

Health and Productivity Management
Declaration

83 Innovation
83
84

Basic Approach/Promotion System

85

Examples of Activities

R&D Data/Intellectual Property
Management/IP Data

86 Customer Relationship Management
86
88
89

Basic Approach/Management System
Responsible Advertising Activities
Example of Initiatives

91 Supply Chain Management
91
92
93

Basic Approach/Promotion System

94

Initiatives on Human Rights,
Occupational Safety, and Procurement/
Supply Chain Monitoring/
Conflict Minerals

95

Our Improvements in the Supply Chain/
Participating in Initiatives

Data about the Supply Chain
Initiatives on Sustainability andCSR Procurement

96 Social Contribution Activity
96
97
98

Basic Approach
Performance Data
MHI Group Initiatives

44

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Rights

Sustainability Management
Environment>Society
Human Rights> Basic Approach> System for Promoting Respect for
Human Rights> Human Rights Due Diligence> Human Rights Awareness Disseminationand Education

Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management

Basic Approach Policy
MHI Group is committed to respecting human rights and workers’ rights of employees in accordance with international treaties and other guidelines relating to human rights. In May
2015 we established the MHI Group Global Code of Conduct as the common standard for MHI Group. Through establishment of this standard, which was compiled making reference tothe UN Guiding Principles on Business and Human Rights, OECD* Guidelines for Multinational Enterprises, and OECD Guidance, we aim to cultivate a shared corporate culture, one thatis rooted in mutual trust and affords dignity and respect to all employees. MHI Group values the individual contributions of all people irrespective of race, color, religion, politicalconvictions, gender, age, nationality, sexual orientation, marital status, or disability. * OECD (Organisation for Economic Co-operation and Development)■ MHI Group Human Rights Policy

We have formulated the “MHI Group Human Rights Policy” in 2013 to ensure respect for
the human rights of all stakeholders involved in our business activities and to contributeto the development of a sustainable society. In today’s globalized society, we recognize
the importance to protect human rights not only within our own company, but
throughout the entire value chains of our businesses. In 2021, we revised the Policy andestablished a system to address a variety of human rights issues. Under this policy,
which is based on the UN Guiding Principles on Business and Human Rights, we arebuilding the mechanisms to enhance human rights due diligence, identifying potential
adverse impacts on our Group stakeholders, and setting down measures to prevent andmitigate any such impacts.

Supply Chain Management
Social Contribution Activity

Governance
Data Section

Cycle of Human Rights Initiatives
Share response to impacts withstakeholders

52

Conduct assessments of human rights
impacts in our corporate activities,
including supply chain and employee
involvement, to identify and evaluate risks

1
6

Corporate policy
Integrate into
management
Continuously monitor the status of
our actions and their outcomes4

Implement corrective measuresand establish mechanisms foraddressing grievances (remedies)

3

Take steps to prevent andreduce human rights risks

Reference: OECD Guidance■ Participation in the UN Global Compact Network Japan’s Human Rights

MHI Group Human Rights Policy
1. Comply with Laws and Regulations on Respecting Human Rights
2. Targets and Education
3. Responsibilities on Respecting Human Rights
4. Human Rights Due Diligence
5. Dialogue and Consultation
6. Information Disclosure
The full text is available for reference on the MHI website.
https://www.mhi.com/company/aboutmhi/policy/humanrights.html

Due Diligence Subcommittee
Since fiscal 2018, we have been participating in the UN Global Compact Network Japan’s
Human Rights Due Diligence Subcommittee conference together with other companies
to discuss human rights issues in the business context and to promote human rights
due diligence in line with the UN Guiding Principles on Business and Human Rights.
Among the topics covered were commitment to company policies on protecting humanrights, assessing the possibility of human rights violations in the company and its
supply chain and the potential impact thereof, establishing measures for preventing,mitigating and resolving human rights violations, and disclosing progress of humanrights-related initiatives. Specifically, the conference involved lectures by experts inhuman rights issues, assessments of progress of related company initiatives,
workshops, and group work on topics of interest.

45

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Rights

Sustainability Management
Environment>Society
Human Rights> Basic Approach> System for Promoting Respect for
Human Rights> Human Rights Due Diligence> Human Rights Awareness Disseminationand Education

System for Promoting Respect for Human Rights System
We have established a governance structure for the entire Group, with the Chief Strategy Officer (CSO) serving as chair of the Sustainability Committee, responsible for driving our ESG
initiatives. As part of our ESG efforts, we are addressing business and human rights.
Furthermore, to ensure timely and appropriate responses, taking into consideration the legal frameworks in each country, we will facilitate cross-departmental information sharing
through the Human Rights Due Diligence Liaison Meeting held quarterly.

Board of Directors

Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

Materiality Council

Sustainability Committee

Chairman: CEO

Chief executive (Committee chair): CSO (Sustainability Committee chair)
Name: Sustainability Committee
Members: C haired by the CSO (Chief Strategy Officer, the officer in chargeof sustainability), the committee comprises the GC (GeneralCounsel), CFO (Chief Financial Officer, director), CTO (Chief
Technology Officer), the officer in charge of HR (humanresources), and the Head of the Business Strategy Office, as
well as other officers in charge of domains and segments inaccordance with the agenda.
Meeting frequency: Semi-annually (based on FY2021)

Talent Attraction and Retention
Established five subcommittees for each Materiality

Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Provide energy
solutions toenable a carbon
neutral worldTransform
society throughAl anddigitalization

Build a safer
and moresecure world

Promote diversity
and improve
employeeengagement

Enhance
corporate
governanceCSO and Senior
General Manager,
Growth Strategy
OfficeSenior General
Manager, Growth
Strategy Office

CTO

In charge of HR

GC
Human Rights Due Diligence Liaison Meeting

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Rights

Sustainability Management
Environment>Society
Human Rights> Basic Approach> System for Promoting Respect for
Human Rights> Human Rights Due Diligence> Human Rights Awareness Disseminationand Education

Human Rights Due Diligence System Initiatives■ Roadmap for human rights initiatives

In order to ensure our commitment to business and human rights, we have created a roadmap for our human rights due diligence (DD) efforts, in consultation with relevant
departments. This roadmap also draws upon the framework established by the United Nations Guiding Principles. We will continue to advance our efforts in line with this roadmap,
taking into account stakeholder requests and societal trends, and periodically reviewing it to minimize the negative impact on human rights.
Human rights DD implementation items

Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

1. Implementation structure

Establishment and operationof implementation structure

Talent Attraction and Retention
Occupational Safety and Health
Product Safety

2. Training and development ofinternal personnel

Innovation

Dissemination and integrationof human rights policy

Supply Chain Management

Governance

Entrenchment of activities
FY2023

Deepening and advancement of activities
FY2024~2025

Establishment of Human Rights Due
Diligence Liaison Meeting (convenes fourtimes/year)

Entrenchment of operations (report and discussion at the
Human Rights Due Diligence Liaison Meeting and reportat the Sustainability Committee before submission to theBoard of Directors)

Consideration of how to enhance system

Formulation of human rights global policies
and procedures*

Establishment of human rights promotion structures ineach department and Group company

Review of internal audit proceduresInternal audit implementation (process establishment/
verification) and reporting to the Sustainability Committee

Development of human rights policy
Commencement of human rights education(e-learning)

Improvement of participation rates and content revisionin human rights education
Identification of relevant stakeholders, and maintenanceand disclosure of completed actions

Stakeholder engagement

Customer Relationship Management

Social Contribution Activity

Initial phase of activities~FY2022 (results)

3. Human rights risk identification,assessment, mitigation,
prevention, and remediation

Assessment and improvementof human rights risks and risk
response status in each Group
company

Initiation of due diligence for suppliers(questionnaires and on-site investigations)focused on high-risk regions and domains
identified in the risk assessment results

4. Establishment of a consultation
and reporting mechanism forhuman rights violations in theGroup and by business partners

Exchange of views with NGOs,international organizations, and experts

Expansion of scope of due diligence for supplier
Consideration of interviews for non-Japanese workers
among our suppliers’ domestic employees (technicalintern trainees) to ascertain presence and risks

Expansion of scope of due diligence for
employees
Clarification of salient human rights issues
in the Group and consideration of
measures (identification and response)

Response to salient humanrights issues in the Group

Data Section

Monitoring of activities

Information disclosure(voluntary)

Disclosure of information on initiatives through our
website and various reports

Compliance with information
disclosure (mandatory)

Collecting information and ensuring appropriate responseto Statutory Disclosure
Establishment of a consultation and reporting
mechanism for human rights violations by business
partners (refer to page 71)
JaCER membership ▶ P.48

* Human rights global policies and procedures: Policies and manuals that establish the structure and processes for conducting human rights due diligence based on Our Principles and Code of Conduct.

47

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Rights

Sustainability Management
Environment>Society
Human Rights> Basic Approach> System for Promoting Respect for
Human Rights> Human Rights Due Diligence> Human Rights Awareness Disseminationand Education

Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section■ Human Rights Risk Assessment■ Initiatives for Suppliers

We conducted an investigation into human rights risks in our value chain, including ourown operations, across the 39 countries where MHI Group has business locations.
The assessment covers risks for workers at our companies and suppliers, as well as for
women, migrant workers, and local communities that we believe will be particularly
affected. The assessment, conducted under the supervision of external experts,
involved internal discussions in which we identified potential human rights issues.
At present, we believe that the following two risks related to MHI Group’s businessand human rights should be prioritized for action:
1. Human rights violation risks within our supply chain in high-risk regions
2. Human rights violation risks concerning non-Japanese workers (particularly
foreign technical intern trainees) within Japan
We will periodically review these issues as needed in the future.

Based on the assessment results, the areas where human rights risks within the supply
chain are presumed to be high are shown in the table below.
Specific risk
Human rights indicators tokeep in mind

RegionAffected entities

Forced labor, occupationalsafety and health, freedom of
association, discriminatory
practices, etc.

Asian Region

Supplier workers, business
partner workers, in-house group
workers, local residents

Starting from fiscal 2022, we have been conducting questionnaire surveys andfact-finding surveys in high-risk areas with a high impact on human rights as part of ourimpact assessment.
Specifically, we conducted a questionnaire survey of 25 suppliers in Southeast Asia andan additional on-site survey of certain suppliers and found no human rights risks of note.
In fiscal 2023, we will expand the scope of suppliers under investigation andcontinue our due diligence efforts. We will be examining targeted suppliers primarily in
the Procurement Division and business divisions, and we plan to continue conducting
investigations on a total of 19 companies, with a focus on the Asian region.
Initiatives Related to Human Rights, Occupational Safety, and Procurement ▶ P.94

■ Initiatives for technical intern trainees

Starting from fiscal 2023, we have initiated surveys across our domestic locations togain insight into the presence and circumstances of technical intern trainees among ourGroup employees in Japan. Based on these results, we aim to comprehend and mitigate
human rights risks through employee surveys and individual interviews.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Rights

Sustainability Management
Environment>Society
Human Rights> Basic Approach> System for Promoting Respect for
Human Rights> Human Rights Due Diligence> Human Rights Awareness Disseminationand Education

Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section■ Grievance mechanism

MHI Group has established internal and external reporting channels to whom all Group
employees (including part-time), business partners, etc. can report issues pertaining tocompliance including human rights issues. These reporting channels, including thoseestablished overseas, can accommodate a total of six languages, including Japanese,
English, and Chinese. Reports can also be submitted anonymously online, by telephoneor by regular post. In response to submitted reports, the Compliance Committee
Secretariat investigates matters swiftly and takes appropriate responses. At all times,
measures are taken to protect whistleblowers while maintaining their anonymity. In thecase of outside stakeholders, their grievances are handled through the Company’s
website or other contact points.
To deal with harassment issues, “Harassment Consultation Helplines” have been
established internally and externally to respond to all employees. Measures are taken tostrictly ensure the privacy and confidentiality of whistleblowers, to prevent them from
suffering any retaliation and disadvantage as a result of their consultation. Anonymous
consultations are also accepted.

In fiscal 2023, we joined JaCER (Japan Center for Engagement and Remedy on Businessand Human Rights) in order to go about establishing remedy mechanisms for all of our
stakeholders based on the United Nations Guiding Principles and OECD Guidance forstakeholders worldwide. This organization provides a collaborative platform for nonjudicial grievance handling based on the United Nations Guiding Principles on Businessand Human Rights. It provides support for complaint
resolution for participating companies from a specialized
perspective, and we also utilize this collaborative platform toaim for improved access to remedies related to human rights.
JaCER website
https://jacer-bhr.org/en/index.html

MHI Group website: Contact MHI
https://www.mhi.com/inquiry

Human Rights Awareness Dissemination and Education System Initiatives■ Internal awareness and educational outreach initiatives<>

awareness at the workplace. The training covers the fundamentals of human rights andharassment and is targeted at new employees and new appointees at the managerial
level, including deputy managers and section managers. In fiscal 2022, about 340 new
employees and some 1,400 newly appointed managers and supervisors underwent thehuman rights awareness training. Furthermore, in an effort to heighten awareness ofand prevent power harassment (workplace bullying and harassment), we introduced an
online learning course in fiscal 2010 that continues to this day.

Development of Company-wide content on respect for human rights in MHI GroupIn fiscal 2022, we introduced an e-learning course for all members of MHI Group to promotea deeper understanding of our philosophy on business andhuman rights and our commitment to respecting humanrights in the Group. This content is available in four
languages: Japanese, Chinese, English, and Thai. In fiscal
2022, approximately 75,000 individuals, representing 99.6%
of all Group members, completed the course.

■ External awareness and educational outreach initiatives<

We are actively working on initiatives to ensure that our business partners, including
suppliers, are well-informed of our policies.

>

Implementation of human rights training
Discrimination will not be tolerated by MHI Group, and to prevent any discriminatory
incidents from occurring, each year we conduct training to promote human rights

Supply Chain Management ▶ Promotion system P.91, P.94

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Ensuring Diversity, Equity, and Inclusion in the Workplace

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace> Basic Approach and Policy/System> Data Related to Diversity and Equal> Initiatives to Promote the Advancementof Female> Efforts beyond Female Empowerment

Basic Approach and Policy Policy
MHI Group aims to contribute to the resolution of societal challenges through its business activities to achieve sustainable growth. To sustain the Group’s ongoing development andmaximize the creation of shared value with society, we consider diversity, such as gender, age, nationality, disability status and other factors, is an asset among our workforce and the
backbone of our business. We are committed to fostering an environment where each employee, with diverse backgrounds, can collaborate while acknowledging each other’s
differences under a common corporate culture. In cases where there are social disparities, we will work to eliminate barriers and achieve fairness and equality.
We have a zero-tolerance policy for discrimination and harassment. This commitment is outlined in the MHI Group Global Code of Conduct, which serves as a standard that all employees
must adhere to. In addition, in the Harassment Prevention Leaflet posted on the Company’s internal website, which is accessible to all employees, MHI proscribes all forms of discriminatory
treatment and harassment, including sexual harassment. Disciplinary action for infringement of good labor practices are clearly defined in the MHI Employ Work Regulations.
MHI website Global Code of Conduct
https://www.mhi.com/company/aboutmhi/policy/conduct.html

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation

System System■ Diversity Promotion Framework■ Employee penetration on diversity

Promoting diversity, along with improving engagement, has been positioned as an MHIGroup Material Issues. We have also established a diversity promotion organization tocoordinate related initiatives.

We offer diversity education as a mandatory course for management-level employees.
Additionally, we have established a dedicated website on our intranet for disseminating
information to promote diversity.

Customer Relationship Management

Materiality Council■ Employee education on harassment

Formulates objectives related to diversity

Supply Chain Management
Social Contribution Activity

We provide education on harassment as one of the topics in compliance training for
all employees and position-based training, such as onboarding and after promotion toa management position. In fiscal 2022, approximately 2,000 employees at MHI took
the course.
In addition, we conducted 360-degree feedback assessment for about 2,500
managers including the key Group companies, in fiscal 2022. This provides anopportunity to reflect their way of management from various perspectives.

HR Strategy Department Work-style Innovation Group
Compiles specific measures

Governance
Data Section

Recruitment, evaluation, and other processes■ Harassment consultation services

MHI has set up an internal consultation office and harassment consultation office on its
website, enabling internal and external stakeholders to consult as needed.
Employee

Employee

Employee

Employee

Employee

Employee

MHI website Harassment consultation services
https://www.mhi.com/inquiry

49

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Ensuring Diversity, Equity, and Inclusion in the Workplace

Sustainability Management
Environment>Society

Data Related to Diversity and Equal Opportunity Performance Data
Data Related to Diversity and Equal Opportunity
Data

Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace> Basic Approach and Policy/System> Data Related to Diversity and Equal> Initiatives to Promote the Advancementof Female> Efforts beyond Female Empowerment

Human Resources Development

Unit

Total
Executive*

1

2020

2021

2022

63

61

51

51

Number of males (ratio)(%)

61 (96.8)

58 (95.1)

49 (96.1)

49 (96.1)

Number of females (ratio)(%)

2 (3.2)3 (4.9)2 (3.9)2 (3.9)Manager (in positions of section manager
and higher*2)

3,265

3,396

5,498

5,455

Number of males (ratio)(%)

3,159 (96.8)

3,273 (96.4)

5,336 (97.1)

5,298 (97.1)

Number of females (ratio)(%)

106 (3.2)

123 (3.6)

162 (2.9)

157 (2.9)

Differently abled people employment rate

Employment rate

%

2.29

2.24

2.34

2.45

1.02

1.02

1.05

1.05

Talent Attraction and Retention

Total

Managers (basic salary only)

Occupational Safety and Health
Product Safety

2019

Wage equality*2, 3Innovation

Managers (basic salary + otherincentives such as bonuses)
Non-managers

Customer Relationship Management

Male
Female

1

1

1

1

Male

1.01

1.01

1.03

1.03

1

1

1

1

Male

1.03

1.03

1.05

1.05

Female1111Female̶

Coverage: MHI

Supply Chain Management
Unit

2019

2020

All employees

̶

̶

13.4

13.8

GovernanceNon-managers

̶

̶

15.3

16.1

Data Section

Managers*̶̶

4.7 (4.5)

4.6 (4.5)̶̶

3.4 (3.7)

3.4 (3.6)

̶

̶

4.5

4.2

̶

̶

4.4 (4.1)

4.2 (4.0)

Social Contribution Activity

Ratio of Females in Each Position

4

General managers*
Executives*

%

4

1

Profit center managers*

4, 5

Coverage: MHI Group (accounting for 89.8% of consolidated employees in FY2021 and 91.3% in FY2022)*1 Including executive officers*2 Managers are defined as section managers and above*3 The lowest average wages for men and women in each tire is 1.00, and the difference is displayed in the index*4 Aggregate figures including higher positions in parentheses*5 Profit centers are defined as non-corporate organizations

2021

2022

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Ensuring Diversity, Equity, and Inclusion in the Workplace

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace> Basic Approach and Policy/System> Data Related to Diversity and Equal> Initiatives to Promote the Advancementof Female> Efforts beyond Female Empowerment

Initiatives to Promote the Advancement of Female Initiatives
In order for MHI Group to grow sustainably, it is crucial to achieve gender diversity and increase the participation of females at manager and executive roles.
However, according to the Global Gender Gap Report 2023, Japan’s Gender Gap Index rank was ranks 125th out of 146 countries. In addition to the global challenges ofpromoting the advancement of females and achieving gender equality, it is clear that Japan’s unique society also contributes to the low index. In order to overcome thesechallenges and realize a company that can play an active role regardless of gender, MHI Group is working to promote the advancement of females by focusing on three elementsof the employee experience cycle—increase of female employees, career support for female employees, and strategic promotion of female managers—and the fourth element offostering a corporate culture that supports them.

Theme

Human Resources Development

Approach

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation

Strategicalpromotionof femalemanagers

It is important to increase the representation of femalesin leadership and management positions responsible formaking organizational decisions to ensure gender
diversity. In particular, increasing the number of female
executives who can demonstrate leadership in the MHIGroup, a conglomerate, is a crucial task to ensure
diversity at the executive level.

Examples• Assign females to management
training held by an externalorganization• Strengthen follow-up to nurture
promotion candidates

Approach

Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance

Careersupportfor female
employees

Fostering a
corporate
cultureApproach
In order to promote career advancement for females
working in MHI Group, it is important to establish
mechanisms to prevent career interruptions due tochildcare, infertility treatment, caregiving, and otherfactors.

Examples• Developing and strengthening
systems to support work-life balance• Holding childcare and caregiving
support seminars
Human Resource Acquisition▶ P.68and Retention

Data Section

Promoting the advancement offemales requires not only anapproach directed towards
working females themselves but
also the understanding,
acceptance, and support of theircolleagues, supervisors, and thebroader work environment.

ExamplesIncrease of
femaleemployees

Approach

ExamplesInitiatives to expand the number of female employees
focus on providing a foundation for the participation of
females in all layers of the organization, including
general employees, middle management, and executive
leadership. In particular, it is crucial to expand the poolof female engineers, which is currently lacking in theentire Japanese labor market.

• Reinforcement of female employment(Our works tours, round-tablediscussions, and pamphlet creation
for female science students)• Activities aimed at achieving a female
ratio of 10% among technical students
hired• Awareness reform of managers(various briefings and training)• Awareness reform of all
employees (dissemination of
information such as introductionof employee interviews)

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Ensuring Diversity, Equity, and Inclusion in the Workplace

Sustainability Management
Environment>Society

Pick Up

Examples of specific initiatives for the advancement of females

Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace> Basic Approach and Policy/System> Data Related to Diversity and Equal> Initiatives to Promote the Advancementof Female> Efforts beyond Female Empowerment

Strategic
promotionof femalemanagers■ Setting a target number of female executives

MHI Group has set a goal for gender diversity at the executive
level to achieve a female executive* ratio of 30% by 2030.

Ratio of female executives
2022 result* Executive refers to directors, accounting advisors, and corporate auditors according to theCompanies Act in Japan

16.7

%

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety

Careersupportfor female
employees

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Increasing
femaleemployees

Governance■ JEES MHI Mirai Scholarship (for female engineers in science and technology)

Considering that in the Japanese society, the proportion of females working in STEM (Science, Technology, Engineering,and Mathematics) fields are among the lowest compared to OECD member countries, MHI Group makes donations toJapan Educational Exchanges and Services (JEES), a public foundation, to support their scholarship program.
This program aims to broaden the base of female engineers in Japan, especially those in STEM disciplines andgraduate programs.
Since the initiation of donations in fiscal 2015, 40 scholarship recipients have been supported, thereby contributing
to the development of exceptional female engineers who play a significant role in society.

Data Section■ External evaluation of gender diversity initiatives

MHI received the highest “Eruboshi” certification of “Three Stars”, in July 2020, by fulfilling criteria in all five evaluation categories: recruitment, continued
employment, work style such as working hours, proportion of females in management positions and diverse career courses. We have been continuously meetingthese criteria even after the certification.

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Ensuring Diversity, Equity, and Inclusion in the Workplace

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace> Basic Approach and Policy/System> Data Related to Diversity and Equal> Initiatives to Promote the Advancementof Female> Efforts beyond Female Empowerment

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health

Efforts beyond Female Empowerment Initiatives■ Initiatives for differently abled people■ Efforts to support the active participation of senior employees

For differently abled people, we aim to promote social independence and provide
opportunities to play active roles in accordance with their abilities and aptitudes.
We continuously consider a working environment, equipment, and facilities, that support
our employees and provide consulting services. In December 2018, we also created newworkplaces where differently abled people can play active roles and conducted
recruitment activities in collaboration with the Employment Support Center, which is a
public institution that helps differently abled people to find work and supports
companies in employing such people. In 2021, we began operating workplaces with afocus on beautification of the premises in two regions. We plan to expand the number ofworkplaces that are friendly to these employees in more regions. Through these efforts,
we are working to ensure that more and more differently abled people become
interested in our company and make them feel at ease in applying to work with us.

We have introduced an extended employment program up to the age of 65 that allows
employees who wish to continue working beyond the retirement age of 60 years to haveflexible work arrangements and a well-balanced treatment. We aim to create anenvironment where the rich knowledge and skills cultivated through years of experiencecan be put to good use. In the future, considering aspects such as the transfer oftechnical and skill expertise, we will continue to develop systems and structures toensure that senior employees can work even more enthusiastically than before.

Product Safety■ Efforts in gender diversity

We will promote employee engagement in various workplaces, irrespective of gender,and ensure that same-sex couples receive the same benefits as legally married couples.
We have also installed multi-purpose restrooms in multiple locations.
■ Efforts related to religion and faith

We have prayer rooms in several locations to accommodate the diverse faiths of ouremployees and their need for various worship spaces.

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Certain merchandise for the social rugby team Mitsubishi Heavy Industries Sagamihara Dynaboars is created by differently
abled employees in MHI Group.

53

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management

Basic Approach and Policy Policy■ Basic Approach■ MHI Group Talent Development Guidelines

The environment surrounding MHI Group’s business is in an accelerating process ofchange driven among other things by increasingly diverse values and increasingly
complex social issues. So that the Group can continue its sustained development nomatter what challenges the environment presents, each of our employees must be able
to respond to customer needs by thinking and acting as an individual. MHI Group ispursuing focused initiatives to develop human resources with the relevant abilities.

In order to fulfill MHI Group’s mission of “integrating cutting-edge technology intoexpertise built up over many years to provide solutions to some of the world’s mostpressing issues and provide better lives,” MHI has established the MHI Group Talent
Development Guidelines. It serves as a guideline to indicate the direction of medium tolong term efforts for talent development. MHI Group is promoting a variety of talentdevelopment measures while sharing the Group’s values of ownership, collaboration,and challenge and its attitude toward talent development throughout the Group.

MHI Group Talent Development Guidelines
MHI Group’s mission is to ‘integrate cutting-edge technology into expertise built up over many years to provide solutions to the world’s most pressing
issues and provide better lives.’ Towards the fulfilment of its mission, MHI Group works to upgrade the abilities of each Group employee,
provides support for career development, and creates an environment where all can learn and grow.

MHI Group Values
To achieve MHI Group Mission we share three values,
for which each and every member of MHI Group willtake action.
Ownership• Recognize one’s role, and take ownership as afirst-person mindset.
• Identify issues proactively and think thoroughly to

Role of employees
Grow with autonomy. Take advantage of opportunities
to grow, self-learn, and challenge proactively.

provide solutions.

Supply Chain Management
Social Contribution Activity

Approach to the Talent Development
The growth of each member of MHI Group is the source of sustainable development for the MHI Group.
We will work to develop our talents continuously from a medium to long term perspective.
Through dialogues, we identify each person’s challenges and set goals.
Through feedback, we support growth and career development by daily work experience (OJT: On the Job Trainings)
as well as by complementary trainings (Off-JT: Off the Job Trainings) and self-development.

• Collaborate with each other with a future orientation.
Collaboration

Governance
Data Section
Challenge•

Contribute to society through further development oftechnologies cultivated over a long history.
Respect and learn from each other to drive results
as a team.

• Without being bound by the past, gain insights into•

the true nature of the current issues. Never give up
despite difficulties.
Continue to grow by communicating with others tocreate opportunities.

Understand that talent development is
one of the most important tasks for
management. Support members’
growth by setting goals, and byproviding opportunities and feedback
for OJT/Off-JT. Not only playing
managerial roles, but also striving
humbly for one’s own growth.

Clarify skills and mindset that every
MHI Group member is expected tohave. Actively provide growth
opportunities to employees whowish to grow by themselves.

Role of the Company

Role of managers

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

Structure of Human Resources Development Programs for Technical and Non-technical staff
Career training

New employees

Data Section
In addition to the above system diagram, we are working to further strengthen the globalization and diversification of our senior management personnel with regard to thedevelopment of next-generation management personnel and the development of overseas group company employees, which will be particularly important in the future.
Initiatives to Develop Leadership Human Resources ▶ P.58-59

Personal development

Technical training

AI/IoT/DX

Project management

Problem-solving/
thinking strategies

Communication

Organizational
management

Business administration

GovernanceMid-level
JuniorPractical Knowledge& Skills

Social Contribution Activity

Business skills

Overseas dispatch

Supply Chain Management

English-language study

Customer Relationship Management

Career training

Deputy Managers

Global business training

Managers
Engineering
Managers/Chief
Staff Managers

Product Safety
Innovation

Global training

General Managers
Deputy General
Managers

Position-based training

Occupational Safety and Health

MHI Group recognizes the growth of individual Group employees as the source of the MHI Group’s sustained development. We therefore offer a wide range of programs to support Group
members in proactive learning and career ownership based on the MHI Group Talent Development Guidelines.
As core initiatives for human resource development, we focus on enhancing the management capabilities of management-level employees, supporting employees’ career ownership,
developing global human resources, promoting DX education, supporting the onboarding of junior employees, training junior technicians for the forefront of manufacturing, andproviding training activities to Group company employees.
For technical and business skill training, our training center in Nagoya plays the central role in initiatives to enhance skills across the Group.

Career management
training

Talent Attraction and Retention■ Structure of Human Resource Development Programs

Business skills for
managers> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Human Resource Development Structure Initiatives

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace

Structure of Human Resources Development Programs for Technical Staff

The training of the technical staff who take charge of our manufacturing functions is ofvital importance. By providing appropriate education and training targeted by job
position and title, we work to maintain and improve technology capabilities and enhance
managers’ ability to lead unified teams.
Improvement ofteam-leading andsupport abilities

Human Resources Development

management•Frontline
training

Reinforce professional
attitude

employee follow-up•2nd-year
training
Ability upgrading> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Workplaceleaders•

Step-up training

Instill professional attitude

New
employees

Improve team-leading(management) ability

appointed foreperson training•Newlyappointed deputy foreperson•Newlytraining
appointed Grade 1 technical•Newlyskills expert training

Mid-level
employeesof basic technical•Acquisition
skills and knowledge

Talent Attraction and Retention
Occupational Safety and Health

Improve ability to act
on initiative

2nd-year
employees

Juniortechnical
staff

Supervisoryandspecialist
positions

Enhance leadership and frontline
improvement abilities

employee leadership training•Mid-level•Essential Technician Training

Product Safety
Innovation
Years of experience

Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section■ Chief Engineer and Master Technician Designation System

With the aim of demonstrating in and out of house our commitment to valuing thetechnologies and technical skills fundamental to our manufacturing, we have createdthe designations ‘Chief Engineer’ and ‘Master Technician’ to recognize outstandingachievement.
The designation ‘Chief Engineer’ honors top-grade technicians in a specific area oftechnology, while ‘Master Technician’ distinguishes employees who have demonstrated
top-level technical skills at the manufacturing frontline.
We will continue working to improve staff abilities in order to maintain a solid
manufacturing base, built on outstanding technical skills and technologies, that
contributes to social progress and a brighter future.

2019

2020

2021

2022

Chief Engineer

3

3

4

6

Master Technician

2

3

3

4

No. of new designations

Coverage: MHI

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society

Training Hours and Training Costs Performance Data
Training hours and training costs

Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace

Total training hours

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

2019

2020

2021

2022

Hours

470,055

317,769

703,521766,933

Training hours

Human Resources Development> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Unit

Training hours per employee

Hours/Employees

19.4

13.1

13.6

16.0

Total costs

Thousands of yen

682,041

477,354

1,326,638

1,881,621

Training costs per employee

Yen/Employees

28,184

19,63325,70839,22824,20024,31351,60547,966

29.6

30.4

66.2

62.4

Training costs

Number of eligible employees
Scope of calculation
Employee coverage ratio
Coverage: MHI and domestic Group companies%

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Talent Attraction and Retention
Occupational Safety and Health

Initiatives to Develop Leadership Human Resources Initiatives■ Next-Generation Managerial Human Resource Development

Given the great changes in the business environment driven by the urgent issue of climate change, increasing levels of geopolitical risk, and other factors, cultivating managers who
can set out a reliable business strategy and steer a successful course for the Group as a whole is a major focus of our human resource strategy. MHI Group has been working steadily
to foster next-generation managerial human resources in the medium to long term.
This initiative consists of creating a talent pool so as to identify human resources with managerial potential Group-wide at an early stage, then implementing a managerial humanresource development program targeted at this talent pool. To further drive the globalization and diversification of senior management human resources going forward, we are taking
steps to introduce more wide-ranging evaluation criteria into the selection process and to open the opportunity to a wider range of employees, including by promoting use of the selfrecommendation system introduced in fiscal 2022.
We will continue to put in place and operate structures for human resource development that enable us to begin fostering candidates with strong potential at an early stage. In thisway we will build a steady global-level pool of outstanding human resources to serve as senior management candidates.

Managerial Human Resource Talent Pool
• Early-stage selection from a wide candidate pool at Group-wide level(partial introduction of self-recommendation)• Formulation of development plan, assessment, participation in managerial humanresource development programs, intensive training through assignment tochallenging management positions

Managerial Human Resource Development Program

Product Safety
Innovation
Customer Relationship Management

Corporate officers

Department managers

Supply Chain Management
Social Contribution Activity

Section managers

Governance
Data Section

Deputy managers/
Supervisors

Managerial humanresource development
programs for eachtalent pool

• Acquisition of management knowledge and skills, stimulation ofmanagerial ambition• Position-based programs• The overseas program is conducted on a global basis and includes
partnerships with business schools around the world• To further challenge candidates, we have introduced a system to build
experience by transferring candidates to important positions in otherdepartments based on regular review.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Building a Managerial Human Resource Talent PoolMHI Group is building a managerial human resource talent pool, in general throughselection by recommendation from the various departments. In fiscal 2022,
we introduced a system of selection based partly on self-recommendation in order toencourage employees to challenge themselves by opening the opportunity to a wider
range of candidates and at the same time to ensure the diversity of future management
and leadership human resources. By formulating individual development plans,
undergoing assessment, participating in managerial human resource development
programs, and engaging in other activities, the candidates in the human resource talentpool are encouraged to develop literacy as managers and a managerial mentality.
Additionally, we stimulate them to refine the qualities required of managers and to
broaden their experience by appointing a selection of the top-ranking candidates in thetalent pool to a series of important management positions in Japan and overseas aspart of a challenging assignment program.
Managerial Human Resource Development Program
To systematically cultivate the next generation of senior management, we select humanresources with the potential to take on leadership positions in Group and business
management at an early stage from a wide candidate base across the Group.
The selected candidates then take part in an intensive off-the-job training anddevelopment program, which includes partnerships with business schools around theworld, to acquire management knowledge and skills and to stimulate managerial
ambition. In fiscal 2022, more than 200 employees took part in the program in Japanand overseas. We also operate an initiative whereby the candidates are transferred toimportant positions in other departments based on regular review in order to build
broad-based operational experience. Through programs of this kind, we are building a
successor generation of managerial human resources able to win through in whateversituation, thus continuously adding to our corporate growth potential.

Pick Up

MHI Leadership Program

To accelerate globalization and diversity, it is essential to upgrade theabilities and skills of diverse human resources, including at overseas Group
companies. In partnership with renowned overseas business schools,
MHI Group is strengthening selection-based training programs for senior
management candidates in order to cultivate managerial human resources foroverseas Group companies and regions.

Scene from MHI Leadership Program
In our group-based development programs, recommended candidates from Japan interact withoutstanding human resources from all overseas regions recommended by local Group companies,
bringing a rich and stimulating element of diversity.

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Human Resource Development Initiatives for Mid-Level Employees Initiatives■ Courses in Business Administration

In order to acquire a broader operational perspective, junior to mid-level employees, who are the core of every workplace, learn the basic knowledge necessary to take charge of future
departmental management in areas such as management strategy, marketing, and accounting and finance.
This ensures that employees gain a broad overview of workplace operations and acquire a wide perspective enabling them to adapt to global business expansion.
■ Global Management Training (Outsourced to Educational Institutions and International Universities)

Course participants, who are prospective global managers aiming for success at overseas Group companies, acquire the MBA-based practical knowledge and presentation skills
necessary for business execution.
The program, in which all meetings and discussions are held in English, provides instruction in a number of areas* over a five-day period. A special feature of this demanding andintensive training is interaction with the overseas students who participate in meetings as facilitators, which not only imparts knowledge but also offers contact with a range ofdiffering values.
* Cross-Cultural Communication, Organizational Behavior, Corporate Finance, Marketing Strategy, Strategic Management, Presentation

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Scene from global management training

60

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Human Resource Development Initiatives for Junior Employees Initiatives■ Group Interdepartmental Program

We have launched a new initiative to provide junior employees with opportunities toexperience different divisions for a fixed term. In fiscal 2023, the first year of the
program, the program is being implemented for 3 to 8 years of clerical employment.
With the increasingly rapid pace of change in society, there is nowadays a stronger
than ever demand for companies to achieve ceaseless innovation and for individuals
to shape their careers independently. In response, we promote the development ofdiverse human resources equipped with wide-ranging insights and perspectives andsupport autonomous career building. This in turn contributes to new value creation
within MHI Group.

■ O n-the-Job Training at Overseas Group Companies(Overseas posting of junior employees/MHI Global Training (MGT)This initiative offers junior employees the opportunity for on-the-job training at overseas
Group companies, mainly in developing countries. The aim is for participants toappreciate the resilience and other qualities needed in a global environment throughpractical hands-on experience, improve their ability to respond at a global level, andstimulate at an early stage an awareness of their position in the context of global
human resources.
Launched in 2012, the program was suspended during the COVID-19 pandemic but
reopened to applicants in fiscal 2022 with a change from a recommendation to a selfrecommendation system. It now once again offers personal growth opportunities tojunior employees wishing to gain overseas operational experience.
Number of postings since 2019

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Europe, Middle
East, Africa,
former Soviet
Union:

North America,
CentralAmerica, SouthAmerica:

10

22
AsiaPacific:

25

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Human Resources Development

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development> Basic Approach and Policy> Human Resource Development Structure> Training Hours and Training Costs> Initiatives to Develop Leadership Human
Resources> Human Resource Development Initiatives
for Mid-Level Employees> Human Resource Development Initiatives
for Junior Employees> Human Resource Development Initiatives toStrengthen Business Operations throughDigital Technology

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance

Human Resource Development Initiatives to Strengthen Business Operations through Digital Technology Initiatives■ Training in Digital Innovation (DI)MHI Group has identified ‘transforming society through AI and digitalization’ as one of its
material issues. As part of this, we aim to work co-creatively with customers to present
a series of solutions based on smart connectivity with complex mechanical systems andto develop new value chains utilizing digital technology. As the Group works together topromote digital innovation, MHI is also actively cultivating digital human resources.
In the process of digital human resource development, we put in place a digital
human resource model compliant with the various standards and guidelines, establish
unitary standards for tasks and skills, and make an accurate assessment of the required
human resources before formulating relevant development programs. The programs are
conducted by our dedicated technical training center, which conducts over 500 training
sessions a year made up of 240 different courses designed in-house. These include
courses on AI and IoT dealing with their business applications and other aspects.
We have additionally introduced an external education program offering around2,000 course options at beginner, basic, or practical level. We publish a list ofrecommended courses and support of all employees to participate, whether in technicalor non-technical grades.
To drive digital innovation, we consider it important to improve digital literacy—having basic digital knowledge and being open to digital approaches to operational andorganizational innovation—across the MHI Group. We are therefore progressing withdigital literacy training for all 75,000 MHI Group employees.
The above training is supplemented where appropriate with a development program
focused on training digital human resources to match the latest business requirements.
By working in this way to develop digital human resources across the MHI Group,
we will accelerate Group-wide digital innovation leading to business value creationand growth.

MHI Group Digital Human Resource Development Process
2 Simulated practical

1 Basic education

3 On-the-job training

training

E-learning-centeredacquisition ofrequired knowledge
and skills

Practical work experience toimprove utilization of knowledge
and skills

Active learning to findout how to use
knowledge and skills

Business

Training in
use ofknowledge
and skills

Training toacquireknowledge andskills

Projects dealing with customer
issues and needs

Creating Business Value through Digital Innovation
Nuclear Power

Gas/SteamPower

Renewables
EnergyEnvironmental
SystemLogistics

Aerospace

w
Ne

sal
ropo
on p
i
t
u
sol
Manufacture

Service expansion/
adaptation
Supply chain management
Procurement

Servicing

EPC

FinanceStandard systems

IoT/AI
Human
resources

Data management and analysis planning

DesignAnalysisdata

Procurement
data

IoT data
Manufacturing
data

Financial
data

Personnel
data

Data modeling/analysis
IoT/AI technology

Environmental
data

Construction
data

Development/
design data

Data on otherindustries

After-saleservice data

Security control

Operational
technology

Network/Data Center

IT platforms/services

ThermalSystems

Address
ing sh
ared
com
pan
y

Collaboration tools

Data Section

Transport

Defense and Space

Machinery
Systems

iss
ue
s

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Talent Attraction and Retention

Sustainability Management
Environment

Basic Approach and Policy Policy

Human Rights

With attraction and retention of talent seen as a very important aspect of its human resource strategy, MHI Group takes a range of measures to boost its competitiveness in the
recruitment market and enhance employee engagement. Specifically, improving engagement, together with promoting diversity, has been designated as one of the MHI Group’smaterial issues.

Ensuring Diversity, Equity,and Inclusion in the Workplace

Recruitment System and Initiatives System Initiatives>Society

Human Resources Development
Talent Attraction and Retention> Basic Approach and Policy/
Recruitment System and Initiatives> Improve Engagement> Initiatives for Career-Development andFeedback> Main Systems and Initiatives to Promote
Autonomous Workstyles among Employees> Major Systems and Measures to Support aGood Work-Life Balance> Approach to Work Conditions/
Data on Workstyles and Support for
Work-Life Balance

To steadily implement its management strategy, MHI Group is taking steps to strengthen recruitment. In order to attract highly talented and diverse human resources able to take on
the challenge of expanding existing businesses and moving into growth areas, we are engaged in recruitment initiatives concerted across the Group.
Main Recruitment-Related Initiatives
Introduction of recruitment based on job-matching for graduate
technical-grade staff

Technical grades

Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management

Technical grades

Social Contribution Activity

In graduate recruitment for technical-grade staff, we operate job-matching,which means that a screening process before hiring is used to reach agreementon which department or research laboratory the recruit will be assigned to.
By enabling us to secure human resources suited to the particular features of theworkplace, this helps prevent mismatched placements and contributes to anincreased post-recruitment retention rate.

Data Section
Non-technicalgradesAll grades

We offer 5- to 10-day in-house internships for science students and 2-day online
workshops for students aiming for non-technical positions. The science-oriented
internships generally cover around 300 areas of work each year and attract
prospective human resources from a wide range of backgrounds.
The non-technical grade workshops allow participants to experience theexcitement of employment at MHI Group through hands-on work experience inareas including ordering and sales operations and self-analysis.

Expansion of female employment in technical grades

Training of interviewers

With the aim of increasing diversity in our human resources, we have set anincreased target of 10% for the ratio of females among our new graduate
recruitment for technical-grade positions. As specific measures, we organize
factory tours exclusively for female science students and round-tablediscussions with our female engineering employees to promote MHI to womenas an attractive employer.

With a view to securing outstanding human resources, we provide special training
for the staff in charge of interviewing for both new graduate and mid-career
recruitment. This ensures that all relevant staff understand the recruitment
requirements and the points for evaluation in the interview and helps to prevent
uneven evaluation by different interviewers. It also makes our recruitment
process more competitive by allowing us to use the interview setting to provide
motivation to students and promote MHI as an attractive employer.

Introduction of preference system in graduate non-technical recruitment

GovernanceInternships and workshops

In graduate recruitment for non-technical positions, we have introduced a system
whereby, for three of our corporate departments—legal affairs, accounting andfinance, and personnel—applicants can express a preference for that particulardepartment as their initial assignment before acceptance. By allowing applicants
to choose between this preference system and normal recruitment, where thedepartment the candidate is assigned to is decided through questionnaire andinterview after a non-specific provisional job offer, or to apply through both
systems, we aim to reduce the rate of mismatched placement, improve employee
engagement, and raise the post-recruitment retention rate.

All grades

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Talent Attraction and Retention

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace

Improve Engagement System
MHI Group believes that initiatives to improve employee engagement is a task that should be addressed by the human resources department (HR), executives, and managers based on athree-way partnership. We are working to improve engagement through six different initiatives in three corresponding areas. To ensure that the leadership of each corporate
organization is committed to improving engagement, domain and segment CEOs and all chief officers are required to describe each organization’s initiatives to improve engagement at
the Board of Directors report.
Roles of HR, executives, and manager

Human Resources Development
Talent Attraction and Retention> Basic Approach and Policy/
Recruitment System and Initiatives> Improve Engagement> Initiatives for Career-Development andFeedback> Main Systems and Initiatives to Promote
Autonomous Workstyles among Employees> Major Systems and Measures to Support aGood Work-Life Balance> Approach to Work Conditions/
Data on Workstyles and Support for
Work-Life Balance

Improve engagement in terms of work rules, systems, and provide
support to other departments

HR

Work rules and personnel systems have a major influence on employee
engagement. HR is required to be mindful of improving employee engagement
when considering work rules and systems. It is also required to provide various
kinds of support to executives and managers based on its expertise inorganizational development and engagement.

Human
resources
initiatives

Show leadership and take overall responsibility for engagement
throughout the organization

Occupational Safety and Health
Product Safety
Innovation

6 initiatives in 3 areas

Executives

To improve engagement, a strong commitment from executives is essential.
Leaders of each corporate organization and executive of MHI Group is responsible
for engagement and required to show leadership in improving engagement.

Management
initiatives

Develop systems,
mechanisms, andinfrastructures

HR will take initiatives to develop personnel
systems, rules related to workstyles,
and infrastructure.

Support employees’autonomous careerdevelopment

Support each employee in envisioning theircareer and ensure that performance isappropriately evaluated.

Penetrate business visions
and strategies

Break down business strategy and link to
the work of each employees’ position.

Promote diversity

Promote diverse human resources toachieve equality in terms of gender andother attributes and create an organizational
culture that generates innovation.

Continue to review businessprocesses to make themmore effective

Improve tangible factors that impede
productivity, such as lack of resources andinsufficient delegation of authority.

Build an organizational
culture pleasant to work in

Improve intangible factors that impede
productivity, such as lack of psychologicalsafety and insufficient communication.

Customer Relationship Management
Supply Chain Management

Take responsibility for engagement of subordinates

Social Contribution Activity

Manager is in the strongest position to directly influence the work situation ofindividual employees. With a view to ensuring that each employee approaches
their work with a high level of engagement, a manager is required to constantly
monitor and review their own situation as a manager and the situation of
their team.

Governance
Data Section

ManagerWork styleinitiatives

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Talent Attraction and Retention

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention> Basic Approach and Policy/
Recruitment System and Initiatives> Improve Engagement> Initiatives for Career-Development andFeedback> Main Systems and Initiatives to Promote
Autonomous Workstyles among Employees> Major Systems and Measures to Support aGood Work-Life Balance> Approach to Work Conditions/
Data on Workstyles and Support for
Work-Life Balance

Improve Engagement Initiatives■ Measure Engagement

MHI Group has introduced a survey platform linked with its global human resource
database to conduct employee awareness surveys covering the whole MHI Group andpulse surveys for any organizational unit tailored to the needs of a particular region orbusiness on the same platform. Employee awareness surveys are conducted roughly
once every two years as a way of measuring engagement among MHI Group employees
and identifying factors that drive engagement. Surveys conducted in March 2023
indicated that the percentage of highly engaged employees was 57%. Pulse surveys
varied between regions. In the Japan region, a pulse survey is used when the employee
awareness survey and the initiatives cannot cover issues at the workplace, which isuseful to improve individual employee engagement by focusing on the workplace unit toaddress the issue. Pulse surveys conducted by MHI Group have the distinctive feature ofaddressing issues at the specific workplace level and are used to improve the workplaceenvironment through dialogue between managers and employees benefiting from theadvantage of the direct personal contact that is a feature of the workplace. We have also
created a set of guidelines for an action plan to follow up each pulse survey andenhance workplace communication.

Occupational Safety and Health

Pick Up Initiative for dialogue between President Izumisawa andemployees (town hall meetings)
It is very important to listen directly to the voices of each employee as well as using
engagement surveys to establish an overall picture of employees’ feedback. It is one of theinitiatives of MHI Group that President Izumisawa makes visits to our business sites andoverseas bases to directly have a dialogue with frontline employees.
For employees to speak their minds at the dialogue, the content is not shared withanyone but the participants, creating an open atmosphere. The result of the most recent
employee awareness survey is used as a guide. Participants are asked to raise any issues
and speak out on what should be done and how, and discuss what they want the company
and the workplace to be like.
Participants also had the opportunity to convey a message or ask questions to thepresident. As a corporate leader and sometimes as a senior colleague, the president gave
an honest response to each comment and questions. These meetings have been held inregions in Japan and overseas bases with the participation of many MHI Group employees.
Many of the employees who have participated at the dialogue with the president commentthat “hearing directly from the top executive made MHI Group policy seem easier to

Product Safety

understand”, and “the discussion reminded of the importance of having the ambition andenergy to achieve personal growth”.

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section
Reference information (in Japanese) on workplace-level pulse surveys

Scene from a town hall meeting

66

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Talent Attraction and Retention

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention> Basic Approach and Policy/
Recruitment System and Initiatives> Improve Engagement> Initiatives for Career-Development andFeedback> Main Systems and Initiatives to Promote
Autonomous Workstyles among Employees> Major Systems and Measures to Support aGood Work-Life Balance> Approach to Work Conditions/
Data on Workstyles and Support for
Work-Life Balance

Occupational Safety and Health

Initiatives for Career-Development and Feedback Initiatives
As part of the human resource-related initiatives included among the designated six initiatives in three areas to improve engagement, we are implementing a range of initiatives for
employee career-development and provision of feedback from managers and colleagues. The findings of the engagement survey have indicated that the factors correlating withengagement include the prospect of achieving career goals and provision of feedback and its effectiveness, indicating the importance of this initiative.
Name of system
or initiative

Background and aim

Outline and implementation

Career designinterview program

It is important for employees to take the initiative in developing their careers by actively
monitoring changes in their individual business environment and taking autonomous andcontinuous action for personal growth.

We have introduced a career design interview program for technical- and non-technical-grade
employees and management-level employees. In dialogue between managers and their juniors,
career goals are identified that align with the employee’s aspirations and expected role while taking
account of the diverse values and lifestyles of individuals. A concrete action plan is then designed andimplemented. For technician-grade employees, dialogue to establish medium- to long-term goals isused to promote autonomous action for growth and create opportunities for career-development.

Quarterly
performanceinterview

Business environment around our company and our employees is changing at a dramaticpace, making it all the more necessary to effect a timely response to day-by-day change
and follow it through. As a result, it is important to create a framework for more frequent
communication between managers and their subordinates to promote attainment of workgoals and monitor relevant progress.

For technical grade and non-technical grade employees, we have introduced a quarterly dialoguesystem (performance interview system). This is designed to strengthen relationships by creating
opportunities for dialogue between managers and their subordinates and increasing the frequency of
dialogue. By also setting appropriate goals and giving feedback, we aim to foster individual growth
and achieve results for the organization.

Creating opportunities for conversation

Strengthening managerial ability
Career management
training

To support employees to expand their potential and secure increased opportunities forawareness and growth, it is very important for the management-level employees who
conduct interviews to strengthen their career management ability.

We provide career management training for management-level staff. The training consists of threemodules: what career means and why career design is important; how to approach a career designinterview; and reference frameworks.

Management-level staff are at the center of corporate operations and strengthening
their managerial ability is very important. Therefore, management-level staff should
be facilitated to review their routine management behavior and identify their strengths
and issues.

We have introduced 360-degree-feedback for management-level staff. This means gathering a range
of opinions from people with diverse perspectives—the subject him- or herself, senior andsubordinates, and colleagues—to provide an objective and reliable basis for identifying theemployee’s strengths and issues and then, in dialogue with superiors, formulating an action plan toaddress the issues. This creates a conscious commitment to improvement in day-to-day management
activity. Improvement in managerial ability is additionally targeted through participation in off-the-job
training programs relevant to the identified issues.

Product Safety
Innovation
Customer Relationship Management

360-degree-feedback

Supply Chain Management
Social Contribution Activity

Governance

Creating systems to broaden experience

Job-Posting System

For employees to undertake autonomous career-building, they need a framework that lets
them actively choose the field of their personal growth. It is also important to create astructure that allows the MHI Group’s outstanding human resources with their variety ofknowledge, experience, and backgrounds to interact freely beyond the existing framework
in a way that leads to innovation.

The job-posting system introduced in 2019 allows employees to change jobs within the Group by
personal choice, subject to meeting the requirements of the new position. As of August 2023, around
600 Group employees have taken on the challenge of moving to a new job internally.

Second Job System

It is greatly beneficial to career development for employees to obtain experiences andinsights through their second job that are not available in their main job. In addition, it isvery effective to gain experiences and perspectives that differ from their main job todeepen the diversity of individuals necessary for innovation creation.

To take account of safety requirements, the Second Job System set an upper limit on total working
hours including the main employment and is intended for such activity to sole business proprietors,
who can adjust their personal workload relatively easily.

Data Section

67

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Talent Attraction and Retention

Sustainability Management
Environment>Society

Main Systems and Initiatives to Promote Autonomous Workstyles among Employees Initiatives
We have introduced a range of measures and systems to secure an appropriate work-life balance for employees and at the same time adapt to increasingly diverse lifestyles. Going forward,
to support each employee to develop an autonomous workstyle that maximizes their potential, we will work to expand and enhance these systems in line with the changing times.

Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention> Basic Approach and Policy/
Recruitment System and Initiatives> Improve Engagement> Initiatives for Career-Development andFeedback> Main Systems and Initiatives to Promote
Autonomous Workstyles among Employees> Major Systems and Measures to Support aGood Work-Life Balance> Approach to Work Conditions/
Data on Workstyles and Support for
Work-Life Balance

Promoting flexible workstyles
Name of system or initiative

Main features and content

Super-flextime system

Flexible working hours system with no required core time. Available not only to office staff but now to an extended range including some manufacturing
departments

Telework system

Available to all employees

Annual paid leave

22 days granted from first year of employment (exceeds legal minimum requirement)

Annual leave in hourly increments

Leave available in increments of 1 to 2 hours for employees with childcare or family care commitments, pregnant employees who want to avoid rush hourcommuting, or in view of other personal circumstances

Short vacation leave

Special leave of one day per year to be taken in conjunction with two or more days of paid annual leave to encourage longer leave periods

Reserved leave

It is also applicable to childcare leave, up to 60 days

Menstrual leave

Paid leave available in half-day or hourly increments

Working Hours Committee

Regular meetings to discuss reducing excessive working hours

Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Benefit systems to match increasingly diverse lifestyles
Name of system or initiative

Main features and content

Rent subsidy system

Transition from company-owned housing and dormitories to rent subsidies to provide flexible housing options tailored to individual needs

Adoption of cash subsidy systems for
all lunch expenses

Tailored to diversifying values and options in foodDefined-contribution pension plans

Expanded support for asset-building toward retirement (available to employees of the MHI parent company and 35 Group companies in Japan)

Family support allowance

Merging of existing family allowance with various other financial support programs for working parents to provide more comprehensive support forwork-life balance

Employee stock ownership system

To support asset building and also stimulate improved motivation among employees, who take increased interest in the company’s business operations
when they become holders of Company stock

68

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Talent Attraction and Retention

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention> Basic Approach and Policy/
Recruitment System and Initiatives> Improve Engagement> Initiatives for Career-Development andFeedback> Main Systems and Initiatives to Promote
Autonomous Workstyles among Employees> Major Systems and Measures to Support aGood Work-Life Balance> Approach to Work Conditions/
Data on Workstyles and Support for
Work-Life Balance

Occupational Safety and Health
Product Safety

Major Systems and Measures to Support a Good Work-Life Balance Initiatives
To create an environment that makes it easier for employees to balance work and life,
we are enhancing our systems to support childcare, family care, and other commitments.
It is notable that our systems for childcare leave, short-time work for childcare, familycare leave, and short-time work for family care all exceed the legal minimum requirements.
In addition, information on system and procedures for childcare, family care, and othercommitments is available on the corporate intranet for easy access to employees.
■ Balancing with pregnancy, childbirth, and childcare

Main features and content

Child-planning (infertility
treatment) leave

For infertility treatment the leave can be taken up to one year
(dividable)

Childcare leave

Leave can be taken until the children reach age of 3, and canbe divided as many times as necessary

Spouse childbirth leave

Can take within 5 days, and can be taken on a half-day basis

Short-time work forchildcare

Can take until the children enter junior high school, and canbe divided as many times as necessaryChild nursing leave

Can take up to 20 days / year until the children enter juniorhigh school< Holding childcare support seminars >Customer Relationship Management

Seminars have been held every year to provide useful information and give an opportunity
for informal communication with other employees for employees on childcare leave.
The aim is to address any concerns they may have about resuming work and to help
them prepare for returning to work. In recent years, in order to foster a culture to enable
diverse and flexible working styles, the seminars have been opened up to managers
who have subordinates who are doing short-time work for childcare and for employees
who have young children and are interested in the seminar. In the seminar, the Company’s
support systems for working parents and examples of workstyles of employees who
benefit from these systems to balance work and childcare is explained. Informal
communication among participants is also provided as an opportunity to exchange
information and take a break from routine.

Social Contribution Activity

Governance
Data Section

Balancing with family care
Name of system or initiative

Main features and content

Family care leave

Can take up to one year, and can be divided as many times
as necessary (dividable)

Short-time work for familycare

Can take until the reason for family care disappears, and canbe divided as many times as necessary

Family care annual leave

Can take up to 10 days/year regardless of the number of
eligible family members

Balancing with pregnancy, childbirth, and childcare
Name of system and initiative

Innovation

Supply Chain Management■ Balancing with family care

< Holding family care seminars >Every year we hold a seminar to balance work and family care. As the seminar is videostreamed, employees can watch from home with their family members. The speaker has
an expert knowledge and addresses a wide range of subjects relating to family care andexplains support offered by our program, important points, required procedures,financial, and other aspects. We have also put in place a consultation system forinterested employees including free online
advice sessions with nursing care
professionals and care managers. We will
deepen our understanding of family care issues
that everyone may suddenly face, and continue
to create a working environment that allows
everybody to balance family care and work withthe spirit of mutual support.
■ Other support systems

In addition to the childcare and family care systems, we have introduced other programs to
support work-life balance. These include a leave system for employees whose spouse isseconded overseas (between 6 months and 4 years), and a career return (re-employment)
system for employees who have retired on account of marriage, childbirth, childcare,family care, the work commitments of their spouse, or other reasons, but now wish torejoin the Company.

69

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Talent Attraction and Retention

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention> Basic Approach and Policy/
Recruitment System and Initiatives> Improve Engagement> Initiatives for Career-Development andFeedback> Main Systems and Initiatives to Promote
Autonomous Workstyles among Employees> Major Systems and Measures to Support aGood Work-Life Balance> Approach to Work Conditions/
Data on Workstyles and Support for
Work-Life Balance

Occupational Safety and Health
Product Safety

Approach to Work Conditions Policy
Regarding labor standards on salary, working hours, and other matters, we ensure full compliance with the laws and regulations of each country. Within Japan likewise, we comply
strictly with laws and regulations, including by specifying maximum working hours of 8 hours a day and 40 hours week for MHI Group employees. This stance is in line with our ongoing
efforts to enhance the working environment.
Additionally, we conclude collective agreements with labor unions and work to maintain good labor relations through ongoing discussions and exchanges of opinion with labor
representatives on areas such as wages, bonuses, occupational health and safety, improvement of relevant systems, and the state of business.

Data on Workstyles and Support for Work-Life Balance Performance Data
Data on workstyles and support for work-life balance

2019

2020

2021

2022

male

69

152

172

272

female

78

81

93

95

Unit

Number of employees taking childcare leave*1

Percentage of employees taking
childcare leave

Number of employees using Short-time workfor childcare

male*2

％

6.0

14.5

16.8

30.6

female*3

％

84.8

88.0

97.9

99.0

male

218

245

348

417

female

262

269

559

531

Innovation

Rate of return to work after childcare leave

％

99.4

99.8

98.9

99.6

Customer Relationship Management

Rate of retention after childcare leave

％

97.3

97.5

96.9

96.0

Annual leave uptake rate

％

76.4

74.5

73.7

77.0

2,280

6,501

12,186

12,655

Supply Chain Management
Social Contribution Activity

Governance
Data Section

Number of employees using work from home*4

Coverage: MHI*1 Number of employees on childcare leave*2 Employees on childcare leave/employees giving birth*3 Employees on childcare leave/employees completing pre- and post-natal absence from work now able to take childcare leave*4 Employees using Short-time work for childcare or Short-time work for family care and pregnant employees until July 2019; all employees from August 2019.

70

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Occupational Safety and Health

Sustainability Management
Environment

Basic Approach and Policy Policy

Ensuring Diversity, Equity,and Inclusion in the Workplace

MHI Group Policy of Safety and Health was established by the Senior Vice President in charge of Human Resources, who is responsible for occupational Safety and Health. Its mainelements are a basic policy giving utmost priority to Safety and Health in the spirit of respect for human life, and three action guidelines: strict compliance with laws and regulations,awareness raising on safety and health, and fostering of a safety culture.
Based on this policy, we implement initiatives to create a safe and healthy workplace and to maintain and improve physical and mental health. We extend these initiatives to theaffiliate and partner businesses who collaborate with our employees in our business activities.

Human Resources Development

MHI Group Policy of Safety and Health https://www.mhi.com/company/aboutmhi/policy/safety_health.html

Talent Attraction and Retention

Safety and Health System System

Occupational Safety and Health■ Safety and Health System■ Response to Risk

To clarify which initiatives to prioritize, the Senior Vice President in charge of Human
Resources draws up a corporate Safety and Health management plan for each fiscal
year, presents it for discussion to the statutory Safety and Health Committee and reports
regularly to the committee on the progress of the plan. In this way, labor andmanagement work together to promote Safety and Health activity.
Based on the corporate Safety and Health management plan, each domain CEO draws
up a management program based on a management system approach for the systematicand continuous implementation of Safety and Health management, clarifies the goals
and targets of the initiatives for the current fiscal year, and then rolls out preventive
activities against occupational accidents. Each domain CEO also monitors the progress ofthe plan through internal audit and undertakes management review based on its results.

To deal with risks that may cause industrial accidents, the departments responsible for
Safety and Health, manufacturing, and local construction take the central role in making
risk assessments of operational procedures, equipment and facilities, and chemical
substances. After determining an order of priority based on the seriousness of the risk,
they take action to eliminate or reduce any risks identified.
■ Safety Training
For employees still gaining experience and other relevant staff members, we provide safety
training using visual training materials and hands-on facilities that simulate the experienceof an industrial accident, and work to improve safety sensitivity and foster a safety culture.

>Society
Human Rights> Basic Approach and Policy/
Safety and Health System> Data on Occupational Safety and Health> Safety and Health Initiatives> Health and Productivity Management
Declaration> MHI Group Health and Productivity
Management Structure> Health Promotion Programs and Initiatives

Product Safety
Innovation
Customer Relationship Management
Supply Chain Management

Company

Social Contribution Activity

Governance

Senior Vice President in chargeof Human Resources

Domain CEO
Control/Support

Data Section
Corporate plan/Domain management
Program proposals/Progress reports

Labor unions■ Response to Emergencies and Prevention of Recurrence

Where, in spite of these efforts, Safety and Health risks are identified that could lead tofatal or serious accidents, the domain where the risk is detected reports immediately tosenior management in accordance with the corporate crisis management response
framework. In parallel, the measures for dealing with emergency situations prescribedby each domain are applied to minimize damage and injury and bring the situation under
rapid control and the cause of the accidents is investigated as part of measures toprevent similar accidents. At the same time, the Senior Vice President in charge of
Human Resources, after receiving from the department where the risk was detected areport giving detailed information and outlining the response measures, issues the
instruction to share with all Group workplaces the insights gained from the accident.
Where necessary an urgent message is additionally addressed to MHI Group employees
to ensure optimal occupational Safety and Health risk supervision and management.

71

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Occupational Safety and Health

Sustainability Management
Environment>Society
Human Rights

Data on Occupational Safety and Health Performance Data
Data on Occupational Safety and HealthWorking hours (Employees + Contractors)

Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

Item

Unit

2019*1

2020*22021*32022*3

Total working hours

Hours

207,196,189

200,930,240

194,327,661

175,604,460 ✓Goal

Incidents

0

0

0

0

ResultNumberof cases

5

2

0

1✓

Goal

Numberof cases

̶

̶

0.26

0.33

ResultNumberof cases

0.25

0.35

0.34

0.30 ✓

Manufacturing industry average

Numberof cases

̶

̶

1.31

1.25

Number of fatal accidents/serious accidents

Talent Attraction and Retention
Occupational Safety and Health> Basic Approach and Policy/
Safety and Health System> Data on Occupational Safety and Health> Safety and Health Initiatives> Health and Productivity Management
Declaration> MHI Group Health and Productivity
Management Structure> Health Promotion Programs and Initiatives

Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Lost-time industrial accidents frequency rate*4(Employees + Contractors)*1 Coverage: MHI and 44 Group companies (accounting for 71.3% of consolidated employees)*2 Coverage: MHI and 56 Group companies (accounting for 77.4% of consolidated employees)*3 Coverage: MHI and 56 Group companies (accounting for 77.5% of consolidated employees)*4 Lost-time injury frequency rate is the number of casualties due to occupational accidents per 1 million cumulative actual working hours, and represents the frequency of accidents. Number of casualties due to work-related accidents resulting in absence of one day ormore ÷ total number of actual working hours x 1,000,000

72

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Occupational Safety and Health

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health> Basic Approach and Policy/
Safety and Health System> Data on Occupational Safety and Health> Safety and Health Initiatives> Health and Productivity Management
Declaration> MHI Group Health and Productivity
Management Structure> Health Promotion Programs and Initiatives

Safety and Health Initiatives Initiatives■ Facilities to Enhance Employees’ Sense of Safety■ Fostering Safety Culture Through Stop Work Authority (SWA) Activities

Memories of industrial accidents and incidents that occurred in the past fade over time.
How to pass them on to the next generation and what to learn from them—these arevery important issues. MHI Group has several facilities designed to enhance the sense ofsafety by having employees look squarely at industrial accidents and incidents we haveexperienced and giving them opportunities to make a promise to themselves about
safety. MHI Group’s mission of “delivering safety and security to customers and society”
is based on the fundamental premise that the work of each and every employee must be
carried out in a safe and secure manner. To this end, we are constantly striving toenhance the sense of safety of each and every employee.

In the past, a major cause of industrial accidents in MHI Group was unsafe actions ofworkers. In some cases, co-workers turned a blind eye to and tacitly permitted thoseunsafe actions without warning them, resulting in a fatal accident. Based on our
determination to never tolerate the trend of “deviation from established rules,”“others’ tacit permission of such deviation,” and “use of unsafe tools and equipment,”
we aim to foster a safety-first culture, or a so-called “safety culture.” We will do thisby creating an environment in which everyone has and can exercise the Stop Work
Authority (SWA: the authority to stop work and correct unsafe behavior or equipment
upon finding it regardless of position or affiliation) for all employees of MHI Group andour partner companies.

Pick Up

Autonomous challenge regarding chemical substances

Today, tens of thousands of chemical substances are imported, manufactured, or used in

Product Safety

Japan, including many substances with unknown danger or toxicity. Under these

Innovation

circumstances, MHI Group is moving away from the conventional “Japanese-style scheme,”

Customer Relationship Management

which requires laws, regulations, and measures specific to particular chemical substances,

Supply Chain Management

autonomously devises, selects, and implements measures to reduce exposure to workers

and toward the so-called “Western-style scheme,” in which the business operator (MHI)
and meet new control standards set by the national government for all chemical

Social Contribution Activity

substances whose hazardous properties have been confirmed. We already have

GovernanceOccupational Hygienists (OH) in MHI, who have completed a training program accredited by

Data Section

examination. With those OHs serving as the commander for autonomous chemical

the International Occupational Hygiene Association (IOHA) and have passed the final
substance control in MHI Group, we will work to reduce the risk of chemical substance
exposure to employees and partner companies.

The Safety Transmission Center at Nagasaki Shipyard & Machinery Works

73

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Occupational Safety and Health

Promotion of Health and Productivity Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health> Basic Approach and Policy/
Safety and Health System> Data on Occupational Safety and Health> Safety and Health Initiatives> Health and Productivity Management
Declaration> MHI Group Health and Productivity
Management Structure> Health Promotion Programs and Initiatives

Product Safety

Health and Productivity Management Declaration Policy
MHI Group is committed to health and productivity management under the president’s“Health and Productivity Management Declaration,” with an emphasis on employees’
motivation to work and physical and mental health.

Health and Productivity Management Declaration
Based on a policy stating that employee health is fundamental to everything we do at MHIGroup, we implement health and productivity management with emphasis on enabling
employees to feel motivated in their work and maintain their physical and mental health.
• We support employees to take action to prevent disease and maintain and improvetheir health.
• We strive to create an energizing workplace environment where employees can develop
their potential.
• In partnership with our health insurance union, we promote the health of both employees
and their families.
Taking as our starting point the health and happiness of employees and their families,
we contribute to supporting human life and society around the world.

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

MHI was certified by Japan’s Ministry of Economy, Trade and Industry as anorganization with outstanding health and productivity management in 2023.

74

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Occupational Safety and Health

Promotion of Health and Productivity Management

Sustainability Management
Environment>Society
Human Rights

MHI Group Health and Productivity Management Structure System
Under the Health And Productivity Management Declaration, the department responsible for health management works to implement health and productivity management by
formulating health management measures and providing health support to employees and their families in collaboration with internal and external partners (managerial staff, safety
and health promoter, labor unions, and the health insurance union etc.).

Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

Employees and their families

Talent Attraction and Retention
Occupational Safety and Health> Basic Approach and Policy/
Safety and Health System> Data on Occupational Safety and Health> Safety and Health Initiatives> Health and Productivity Management
Declaration> MHI Group Health and Productivity
Management Structure> Health Promotion Programs and Initiatives

Product Safety
Innovation
Customer Relationship Management

Providing health support

Department responsible for health management
Workplace managers
Safety and health promoter
Alignment
Workplaceenvironment
improvements
Consideration
for safety etc.

(Occupational physicians, occupational health nurses,
certified psychologists etc.)
Health and Productivity Management Declaration and the healthmanagement plan "MHI Group Action 5" review/formulation

Improvements/
RequestGovernance
Data Section

Alignment
Data healthplan

Present the health management plan
Implementation status report

Supply Chain Management
Social Contribution Activity

Health insurance association

Union

75

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Occupational Safety and Health

Promotion of Health and Productivity Management

Sustainability Management
Environment

Health Promotion Programs and Initiatives Initiatives
MHI Group Health Management Plan>Society

MHI Group Action 5 Health and Happiness!

Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace

In cooperation with the MHI health insurance union’s data health plan, we have compiled the health management plan “MHI Group Action 5 Health and Happiness!” with the following
five priority items and are implementing activities throughout MHI Group to achieve the plan. By promoting health and productivity management, we aim to help the development of
human resources who can contribute to a healthy and vibrant society.

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health> Basic Approach and Policy/
Safety and Health System> Data on Occupational Safety and Health> Safety and Health Initiatives> Health and Productivity Management
Declaration> MHI Group Health and Productivity
Management Structure> Health Promotion Programs and Initiatives

Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Measures against
lifestyle-related diseases

Observance of compliance,

Mental health measures

Prevention of aggravation

including thorough implementation of the takingof regular medical examinations and physician
interviews for employees working long hours

Measures against passive smoking
and quitting smoking support• Introduction of health app and holding of• Provision according to job position of• We have established criteria for applying• To encourage all employees to undergo• We are currently promoting various

a range of participatory events throughthe app• Various seminars (lifestyle improvement
such as exercise and diet, women’s
health care, cancer seminars, oral careseminars, etc.), which also utilize online
education, are held once every few months.
• Easy access to health information througha dedicated portal site
• Setting of a unified standard for follow-up
measures based on health check results,
consultations with occupational healthphysicians, support for attendance at
medical institutions, healthcare advice,
healthcare guidance program for
employees with metabolic syndrome• Provision of healthy menus at workplace
cafeterias

self-care training for stress management
and training for managers andsupervisors in the care of their line staff• Use of stress checks to support
workplace environment reform initiatives
based on promoting individual awareness,organizing guidance interviews withphysicians, and reviewing the results ofgroup analysis• Horizontal rollout of examples of goodpractice in workplace reform• We have established a system in which
occupational health physicians,
occupational health nurses, psychologicalcounselors, and external specialists canbe used on a regular basis to provide
employees with counseling and support.

employment-related measures(restrictions on work) based on healthcheck results. In line with the opinion ofan occupational health physician, we takesteps to prevent aggravation of thecondition such as revising work content
and reducing workload.
• The MHI health insurance union is rollingout a program to prevent aggravation ofdiabetes. To encourage active
participation, eligible employees receive amessage from an occupational healthphysician together with their invitation.

the statutory regular medical
examinations, we follow up any
employees who have missed out.
• We are properly assessing working hours,
and when overtime exceeds the limit, we
strive to promptly detect health problems
by checking the degree of fatigue with ahealth check sheet and interviews withindustrial physicians.
• Industrial health staff, who are wellversed in the characteristics of work at
each workplace, liaise with the workplace
to improve the environment that may
cause overwork, beyond merely checking
health conditions.

measures to achieve zero passive
smoking in our premises. In fiscal 2021,
we achieved zero indoor smoking rooms
that do not meet technical standards byproactively tackling various issues
regarding smoking rooms.
• MHI has designated the 22nd of eachmonth as the MHI Group “Suwan” Day andthe World No-Tobacco Day on May 31 ofevery year as the MHI Group No Smoking
Day. On these days, we make an effort not
to smoke within the company from theperspective of preventing passive smoking
and to continue various measures
including awareness-raising activities.
• In collaboration with the MHI healthinsurance union, we are rolling out the
MHI Group Quit Smoking Challenge basedon an online smoking cessation program
to foster a workplace culture that makes
it easier to quit.
• Starting from the second half of fiscal
2023, we plan to roll out medium- tolong-term measures against passive
smoking and to support a smoke-freeworkplace at all Group companies inJapan as part of our vision for the year
2030 (MHI Group Smoke Free Project).

FY2020-FY2022 MHI Group Action 5 evaluation indicators and results (partial excerpt)
Item
Target

2020

2021

2022

100%

99.5%

99.2%

99.5%

Comprehensive medical examination rate

50% or above

35.0%

57.2%

59.0%

Smoking rate

Less than 23%

23.7%

22.6%

22.0%

+ 10 points compared to previous
fiscal year

46.6%

48.0%

50.6%

15%

12.0%

9.0%

6.9%

Regular medical examination rate

Rate of follow-up attendance at medical
institution after regular medical examination
Blood glucose improvement program
participation rate

Note: Data for MHI employees and Group company employees subject to health management by the department responsible for health management of MHI

76

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Occupational Safety and Health

Promotion of Health and Productivity Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health> Basic Approach and Policy/
Safety and Health System> Data on Occupational Safety and Health> Safety and Health Initiatives> Health and Productivity Management
Declaration> MHI Group Health and Productivity
Management Structure> Health Promotion Programs and Initiatives

Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity■ Health Management for Employees Seconded Overseas

Implementation of overseas tours by occupational health physicians
Year

Period2019

Dec. 15–Dec. 23

Governance
Data Section

Visit to a local medical institution during an overseas tour by occupational health physicians

MHI Group has established a health management system that enables employees
dispatched overseas and their accompanying family members to work there in a healthyand secure manner. MHI provides information about globally prevalent illnesses such as
tuberculosis, HIV/AIDS, measles, rubella, and viral hepatitis. As well as the spread ofand methods for preventing illnesses unique to their destinations, such as malaria,
dengue fever and others. If the infection can be prevented through a vaccine, employees
are vaccinated at company expense prior to travel.
MHI has assigned occupational health physicians in charge of overseas medical
support to accept health consultations from the destination and respond promptly to
any health management problems that may occur during work overseas. MHI has signed
contracts with medical assistance service providers so that expatriates are able toreceive support such as consultation, hospital introductions, and transportation
arrangements in Japanese. In addition, MHI has worked closely with its in-houseoccupational health physicians to ensure a system that allows travelers to seek medical
advice with peace of mind.
For long-term overseas site maintenance, occupational health physicians visit thesites to conduct evaluations on medical facilities, provide guidance on lifestyleconditions, conduct one-on-one interviews based on health check results and local
information, and provide training according to the needs of the area.
Having confirmed that the COVID-19 situation had stabilized to a considerable extent,
tours of our overseas bases by occupational health physicians were resumed in
September 2022 after a three-year interruption, starting with Bangladesh.

No. of days

LocationJan. 25–Feb. 2

9Indonesia (4 cities)

Sept. 2–Sept. 10

9 daysIndonesia (3 cities)

9

India (5 cities)

2020* Canceled due to COVID-19

2021* Canceled due to COVID-19

2022
2023

Sept.9–Sept.18

10Bangladesh (2 cities)

Dec. 4–Dec. 11

8India (6 cities)

Feb.11–Feb.18

8

Saudi Arabia (7 cities)

Visit to a local medical institution by occupational health physicians to check ward facilities, exchange opinionswith the institution’s medical staff and lectures by occupational physicians overseas

77

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Product Safety

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

Basic Approach Policy
In the manufacturing industry, ensuring product safety and quality is undoubtedly a toppriority. As a global provider of a wide range of products, MHI Group’s Global Code of
Conduct underlines the importance of adhering to pertinent laws, internal standards,
and customer specifications concerning the safety and quality of products and services.
We are dedicated to upholding product safety and are committed to swiftly andappropriately addressing any safety and quality-related issues that may arise. We haveestablished customized quality management systems (QMS) based on public standards

such as ISO 9001(Note) for each of the Group’s distinctive businesses and products, toalign with the unique requirements of our customers and markets. We are also
accredited by the certification body of QMS for individual businesses and products.
Furthermore, as part of our efforts to raise awareness about product safety and quality,
we have established an Accident Exhibit and Materials Room based on past incidents andconduct educational programs on safety and quality to prevent product incidents.
(Note) Including other standards such as JIS Q 9100 for aerospace that are specifically designed for aerospace products

Talent Attraction and Retention
Occupational Safety and Health
Product Safety> Basic Approach/
Product Safety and quality management> Quality and Safety Programs for Key
Products

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Product Safety and Quality Management System■ Evaluating the impact of product safety and quality■ Education and awareness related to safety and quality

As the markets for the MHI Group’s products are diverse, we establish a quality
management system (QMS) for each business or product based on public standards
such as ISO 9001 that meet customer and market needs. 91% of sites in Japan and 94%
of sites overseas have been accredited by a certification body. In April 2013, QMS
Promotion Group was established within the Monozukuri Innovation Planning
Department (curently the Value Chain Innovation Department), and by sharing
technology and knowledge from all over the MHI Group, we strengthen quality
management, including at Group companies, and promote improvement of work
processes to meet the globalization.

The Accident Exhibit and Materials Room uses videos and actual exhibits to introduce
cases of serious incidents that MHI Group has had in the past, such as a fire on a large
cruise ship under construction. We are creating opportunities for all employees topledge to never allow such incidents to occur again.
In addition to making tours of the Accident Exhibition Materials Room part of the
program for employee education, we also provide “safety and quality” education basedon incident cases for various positions, so that employees can learn what they can do toprevent incidents. By thinking about that, MHI fosters awareness of safety and quality ofthe products they are involved with.
MHI will continue to create opportunities for all employees to recognize the importanceof product safety and quality and enrich employee education for Product Safety.

■ Radiation safety management and quality impact assessment

In the MHI Group, MHI Nuclear Development Corp., which conducts research anddevelopment related to nuclear power plants and fuels, and Mitsubishi Nuclear Fuel Co.,
Ltd., which produces nuclear fuels, classify radioactive waste according to theradioactivity level and the place of generation, and carry out appropriate storage
management in accordance with applicable laws and regulations.
In addition to legal compliance, we strictly control radiation by applying internal
rules designed to minimize radioactive waste disposal. To establish a nuclear-fuel cycle
to recycle spent fuel, we are building reprocessing facilities and MOX fuel plants.
Through these efforts we will continue helping reduce radioactive waste within ourGroup and among the customers to which we deliver nuclear power plants.

2022
Total number of participants [Product safety and quality]

20,273

78

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Product Safety

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety> Basic Approach/
Product Safety and quality management> Quality and Safety Programs for Key
Products

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Quality and Safety Programs for Key Products Initiatives■ Nuclear<

Nuclear Safety and Maintenance Steering Committee(Note) continues to establish
nuclear safety>

We established the Managing Board for Innovation in the Nuclear Business, headed by
the President, in light of a secondary system piping damage accident in August 2004 at
the Mihama Nuclear Power Station Unit 3, which was operated by Kansai Electric Power.
Since fiscal 2013, we have been continuing as the “Nuclear Safety Steering Committee”
with the aim of achieving even higher nuclear safety.
In fiscal 2022, the Steering Committee received reports on efforts to raise awarenessof nuclear safety and promote safe and stable operation to contribute to society throughthe further use of nuclear power.
We also implement initiatives to effectively convey the seriousness of accidents andthe weight of responsibility to the next generation. This includes providing guidance tomanagers actively working on the frontline and distributing information online to allindividuals related to the nuclear energy systems of Mitsubishi group companies.
(Note) Renamed the Mitsubishi Nuclear Safety and Maintenance Steering Committee in fiscal 2020<

restart of BWR (Boiling Water Reactor) plants, which are different from what wemanufacture, at the soonest date possible.
MHI has been supporting power companies to implement medium and long-term
countermeasures, such as Installation of Specialized Safety Facility, etc.
MHI continues to contribute to the safe and stable operation of nuclear power plants
in order to meet urgent power demand in Japan by taking advantage of its
comprehensive technological capabilities as a nuclear power plant manufacturer.

< Promoting nuclear power Public Acceptance (PA) activities >MHI accepts visitors to our Kobe Shipyard & Machinery Works, where the equipment andfacilities for nuclear power plants are manufactured, and promotes nuclear power PA
activities to deepen understanding of the necessity and safety of nuclear power.
MHI will continue our activities to promote the understanding of nuclear power throughshop tours and provision of information to promote nuclear power use.
(Note) Nuclear Power PA (Public Acceptance) activities: Public outreach programs to provide a better understandingof nuclear energy>

Measures for enhancing domestic nuclear power plant safety
MHI set up an emergency task force immediately after the Great East Japan Earthquake.
After the Advanced Station Safety Department (currently, the Advanced Plant Safety
Department) was established in August 2011, the task force was transferred to thisdepartment and developed countermeasures against the blackout that occurred at the
Fukushima Daiichi Nuclear Power Plant. The task force has been reflecting thesecountermeasures at PWR (Pressurized Water Reactor) power plants built by MHI in
Japan. Furthermore, the new safety criteria that were developed by the Nuclear
Regulation Authority (NRA: established in September 2012) went into effect in July 2013,
and in August 2015, PWR power plants that have satisfied the new safety criteria
resumed operations. Currently, safety inspections are underway at other PWR power
plants geared toward restarting their operations and sequentially these plants havebeen restarting. In addition to these domestic PWR plants, we are also supporting the

Touring the Kobe Shipyard & Machinery Works

79

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Product Safety

Sustainability Management
Environment>Society■ Safe control of radiation

MHI Group properly stores and manages radioactive waste generated through research and development on nuclear power generation and production of nuclear fuel in accordancewith applicable laws and regulations.
Unit

Human Rights
Storage capacity

Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

MHI Nuclear Development
Corporation

Talent Attraction and Retention

Radioactive waste
Solid waste

Volume of radioactive waste stored

200L drum

Volume of radioactive waste
generation

Radiation exposure of employees with radiation-related jobs
(average)*1

mSv/year

2019

2020

2021

2022

3,293

3,293

3,293

3,293

2,539

2,555

2,610

2,689

33

16

55

79

0.15

0.02

0.07

0.04

17,053

17,053

17,053

17,053

13,403

14,747

16,108

16,102

2,337

1,344

1,361

–6*2

0

0.01

0.01

0.02

Occupational Safety and Health
Storage capacity

Product Safety> Basic Approach/
Product Safety and quality management> Quality and Safety Programs for Key
Products

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section

Mitsubishi Nuclear FuelCo., Ltd.

Radioactive waste
Solid waste

Volume of radioactive waste stored

200L drum

Volume of radioactive waste
generation

Radiation exposure of employees with radiation-related jobs
(average)*1

mSv/year*1 ICRP Recommendations 2017 and related Japanese laws stipulate the dose limit for occupational exposure is 100 mSv per 5 years and 50 mSv per year in effective dose.
*2 Result when the volume of radioactive waste reduced exceeds the volume generated

80

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Product Safety

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety■ Logistics, Thermal & Drive Systems (Air Conditioners)< With customer safety as a top priority, safety design, verification processes andproduct related risk management processes are incorporated in “control proceduresfor design work”>

Mitsubishi Heavy Industries Thermal Systems, Ltd. acquired ISO 9001 certification in1994 and established “control procedures for design work” for product design anddevelopment to ensure the safety of air-conditioners. These standards are based on
quality policies that are derived from our quality management system. During productdevelopment, quality checksheets and other measures are used per these standards tofully verify safety throughout the life cycle of a product, from development to usage anddisposal, in addition to checks against physical harm or financial damage caused by fire,
explosions, and toxic substances.

> Basic Approach/
Product Safety and quality management> Quality and Safety Programs for Key
Products

As an example, in January 2018 we requested that users of our air-conditioners whomeet certain conditions submit them for free inspection and repair. We will take thelessons learned from this occurrence to foster a work climate throughout the Company,
including businesses overseas, that places the prevention of reoccurrences of incidents
and product safety as top priorities.

< Process following a serious product-related accident >Customer(market)Government agency

Mitsubishi Heavy Industries
Thermal Systems

Retailer
Distributor
Service center

Innovation

Confirmation on facts
Cause analysis and investigation ,and corrective action

Customer Relationship Management
Supply Chain Management

Claims information

Social Contribution Activity

Governance
Data Section
We conduct management at the component level in order to manufacture
environmentally friendly products.

In the unlikely event that a serious product-related accident does occur in the market,
we will take immediate steps to ensure customer safety, promptly confirm facts, analyze
the cause, conduct an investigation, implement corrective actions, report to theappropriate government agencies, and disclose this information to users and the market.

Information disclosure

81

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Product Safety

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety> Basic Approach/
Product Safety and quality management> Quality and Safety Programs for Key
Products

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section■ Plants & Infrastructure Systems [Shipping]■ Machinery Systems

Mitsubishi Shipbuilding Co., Ltd., which is involved in the commercial ships business &marine structures business, is engaged in the manufacturing and engineering businessfor a wide range of ships and marine products in the Yokohama, Shimonoseki,
and Nagasaki regions. Mitsubishi Shipbuilding Co., Ltd. strives to adopt the same quality
indicators, non-conformity management systems, safety and quality education
programs, and internal audits in all regions, and is working with each region to improve
work processes and quality management framework to realize a more advanced QMS
and cultivate an attitude focused on safety and quality. Mitsubishi Shipbuilding Co., Ltd
works to deliver products and services that meet customers’ expectations through ISO
9001 external audits for QMS activities.

Mitsubishi Heavy Industries Machinery Systems, Ltd. was established in October 2017by restructuring and merging stable, profitable small and medium-sized businesses.
As a pivotal player in the manufacturing and the engineering sectors, the company isdeeply rooted in mechatronics technology and is dedicated to providing a broad
spectrum of equipment and mechanical systems that underpin various aspects of daily
life. Its operations are structured around three distinct divisions, allowing for flexible
adaptation to the unique characteristics of different products. In the past, the company
obtained ISO 9001 certification for individual products from separate certification
bodies. However, in 2020, it unified the audit process across the entire company tofoster a cohesive approach to Quality Management System (QMS) activities. This movetowards centralized audits also served as a catalyst for dismantling barriers between
business units and products, enabling a seamless integration of QMS activities thatencompassed extensive information sharing and collaboration during internal audits.
By harnessing a diverse array of technologies, experiences, and talents from various
product segments, the company aspires to enhance customer satisfaction by delivering
even more gratifying products and services while contributing to the sustainable
development of society.

< Enhancing QMS activities to prevent product accidents >■ Engineering Solutions [Transportation Systems]< Ensuring the safety of transportation systems based on quality
management systems>
MHI is working on the development of various transportation systems with a highpotential for use in public settings, such as the Automated People Mover (APM) for use
in airports and other facilities in cities and Light Rail Vehicle. To ensure that suchtransportation systems function with a high degree of safety, MHI operates QMS basedon ISO 9001 and our own quality policies in all processes from design, procurement, andmanufacturing to installation, test operation, and maintenance. Every year, top
managers review these activities, evaluate the effectiveness of the quality management
system, and propose new actions for improvement. Mechanisms are also being
developed to incorporate safety standards and customer requirements in various
countries into the initial design stage of projects developed in and outside Japan.
In addition to these efforts, MHI utilize a system tool for sharing the lessons learned
from past projects. Employees involved in past projects disclose and record theirexperiences and lessons learned so that current project members can acquire andshare useful skills and knowledge, and find a stronger awareness of product safety.

< Fostering cohesive QMS activities by unifying the audit process>82

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Product Safety

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety> Basic Approach/
Product Safety and quality management> Quality and Safety Programs for Key
Products

Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section■ Integrated Defense & Space Systems [Defense Products]< Contributing to the peace and safety of Japan through technology>

MHI is dedicated to the core vision of supplying cutting-edge technology for nationalsafety and security. As a leading supplier in the Japanese defense industry,
MHI endeavors to maintain and strengthen defense production and technological bases.
MHI develops and manufactures a vast array of defense equipment based on therequirements of the government of Japan, including fighter planes, helicopters, missiles,
defense vessels, and tanks, and also provides operational support. The environment
surrounding the defense of Japan has been changing dramatically over the last few
years. In light of the current financial difficulty of Japan and the speed of technologicalprogress, it is increasingly important to maintain and strengthen defense production
and technological bases, in order to satisfy the requirements of the government.
MHI is focusing on the future security environment and is developing various
technologies that meet the needs of the country. This includes research into stealth andweight-reduction technologies and avionics to be applied to F-X, and into technology
related to high-water-speed at sea for amphibious vehicles. We are also working on
dual-use businesses such as cybersecurity, drone application, and satellite data analysis
that utilize advanced technologies developed on the foundation of experience in the
defense business up to this point. We are also working on dual-use businesses such as
cybersecurity, drone application, and satellite data analysis that utilize core technologies
developed in the defense and space fields up to this point. Therefore, we believe defense
technologies can also contribute to long-term technological advances in Japan and thedefense sector is expected to develop as a national strategic industry.

■ Commercial Aviation Systems [Aircraft]< Raising awareness for aircraft safety through education and training,and promoting of QMS-related activities>
In the aircraft manufacture business, based on the Aircraft Safety Policy, assurance of
aircraft safety is our top priority. All employees engaged in aircraft manufacturing
operation and management understand the gravity of aviation accidents. Accordingly,
as part of our educational activities aimed at ensuring thorough awareness of aircraftsafety, we are implementing various training programs for relevant employees,
primarily in management positions. These include training where employees learn
through educational tours of the Japan Airlines Safety Promotion Center and climbing
the Osutaka Ridge to pay respects to those who died in the Japan Airlines Flight 123
accident in 1985; workshops that communicate the lessons learned from an emergency
landing accident involving an MH2000 helicopter and an accident where a F-2 jet fighter
crashed and burst into flames (instructions on new work procedures / application of
independent verification programs) in 2000 and 2007 respectively; initiatives to prevent
leftover foreign objects; and training where employees learn through active discussions
with pilots. In addition, we are working to improve quality on an ongoing basis throughQMS-related activities based on JIS Q 9100.

83

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Innovation

Sustainability Management
Environment>Society

Basic Approach Policy
Manufacturing technologies are the source of value creation for MHI Group, and intellectual property activities and R&D are the bedrock of its businesses. Supporting our businessstrategies for growth, we are promoting the construction of a global system, led by the Chief Technology Officer (CTO).

Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety

Promotion System System
About Research and Development, in 2015 we established “Research & Innovation Center”, consolidating five domestic R&D centers and transitioning to cross-organizational
management in our R&D structure.
In April 2016, MHI also launched “Shared Technology Framework” newly consolidating the Company’s technologies as well as its marketing, procurement, and other functions,overseen by the CTO. We created this framework to maximize the MHI Group’s comprehensive technological strength to bolster competitiveness over the medium to long term.
In addition, we are globalizing our R&D structure, and as part of these efforts, we are dispatching specialist engineers from research centers in Japan to our bases in the United
Kingdom, Singapore, the United States, and China. We are making efforts to secure leading global technologies, information, and human resources, while conducting research andproviding technological support that is closely aligned with market needs.

Innovation> Basic Approach/Promotion System> R&D Data/Intellectual Property
Management/IP Data
> Examples of Activities

Customer Relationship Management
Supply Chain Management
Social Contribution Activity

Governance
Data Section■ Shared Technology Framework

CTO■ Examples of R&D fields

Technology Strategy Office
Research & Innovation Center
Digital Innovation Headquarters
Value Chain Headquarters
Flow field analysis of a compressor

CO2 recovery pilot equipment

Hydrogen gas turbine (image)Intelligent logistics systems

84

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Innovation

Sustainability Management
Environment

R&D Data Performance>Society

R&D expenditure

Pick Up

Human Rights

Intellectual Property Management Policy Initiatives

Ensuring Diversity, Equity,and Inclusion in the Workplace

2022

127.4

% of sales

2022

Billion Yen

3.0％

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation> Basic Approach/Promotion System> R&D Data/Intellectual Property
Management/IP Data
> Examples of Activities

Customer Relationship Management

R&D expenditure

Employees in R&D positions(Unit: Billion Yen)

(Unit: %)

200
150
100

146.8
125.7
3.6%

113.6

3.4%

2.9%

0

2019

2020

Total

2021

Governance

2,000

6

1,500

4

1,000

2

500

0

0

1,350

1,460

1,460

1,460

2020

2021

2022

3.0%

50

2022

2019

% of sales

R&D expenditure by segment

Supply Chain Management
Social Contribution Activity

127.4(Unit: No. of people)

8

Others, shared themes
Energy23.1• Development of CO2 ecosystem, etc.

40.8

Data Section

2022(Unit: Billion Yen)

Aircraft, Defense & Space•D evelopment of cybersecurity
technology•D evelopment of H3 rocket, etc.

MHI Group is committed to addressing various social challenges by developing
innovative products and technologies that support national security across social andindustrial infrastructure on land, sea, and in the air, delivering globally. In recent years,
we have tackled Material Issues such as providing energy solutions to enable a carbon
neutral world and building a safe and secure society. To align with these challenges, theentire Group focuses on creating and utilizing intellectual property (IP) that contributes
to generating social value (providing social solutions), emphasizing a social value-based
approach to our IP activities. Specifically, we formulate and systematically execute IP
strategies in line with the business and R&D strategies of each division to effectively
address various societal challenges. This approach reinforces our commitment tosustainability management within MHI Group. We also strive to secure sustainablegrowth and further enhance corporate value by regularly reporting on our IP strategies
and activities to the Executive Committee. Furthermore, we deploy IP specialists to our
locations in the United States, Europe, and China. This allows us to address IP generated
at our overseas sites and support local Group companies amid efforts to promote global
IP activities.
In this way, MHI Group contributes to the stable supply of exceptional products andtechnologies that enable the realization of a carbon-neutral society and the creation of asecure future for people and the planet and a sustainable society through social valuebased IP activities.

38.7

Logistics, Thermal & Drive Systems• Development and demonstration of hydrogenmixed-fuel/100% combustion engines.
• logistics systems

9.9
14.6

• Development of hydrogen gas
turbines• Development of gasification
technology for sustainableaviation fuel production• Development of advanced lightwater reactors, etc.

Plants & Infrastructure• Development of next-generation
stoker furnace• Development of auto-pilot
printing for newspaper offset
presses, etc.

IP Data Performance
Number of patents held
30,00025,96825,65425,771

3,200

3,369

3,321

3,193

3,259

3,189

4,154

4,494

4,658

4,829

14,66515,081

14,36814,432

2021

2022

24,68325,000

2,995
2,869

20,00015,00010,000
5,000
0

2019
Japan

United States

2020
EuropeChina

85

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Innovation

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health

Examples of Activities Initiatives
World’s largest CO2 capture process

Benefit: MHI has been involved in R&D into CO2 recovery

In October 2022, MHI entered into a collaboration agreement with four
companies, including BHP, a major resources company, and ArcelorMittal, aleading steel and mining company. We will provide CO2 capture technology fora feasibility and design study at a steel plant in Belgium and other facilities
as part of efforts to capture CO2 in the steel industry.
In November 2022, through an alliance with ExxonMobil, we joined forces
to deploy our carbon capture technology with ExxonMobil’s carbon captureand storage (CCS) solution, enabling an integrated end-to-end CCS offering.

technology for more than 30 years. The demonstration test ofemissions at a coal-fired power plant owned by Southern
Company has shortened the development period substantially.
Furthermore, over a period of approximately five years, we havesucceeded in scaling up the CO2 recovery tenfold, from 500 tons
per day (demonstration) to 5,000 tons (commercial). We believe
this joint development has enabled us to significantly shorten
the cycle from development to practical realization.

Other Impacts: The development of the commercial
small-scale CO2 capture device (CO2MPACT™) has enabledcompact and highly
versatile modularization,
significantly reducing thetime required fortransportation andinstallation.
Compact CO2 capture system(CO2MPACT™)

Product Safety
Innovation> Basic Approach/Promotion System> R&D Data/Intellectual Property
Management/IP Data
> Examples of Activities

Customer Relationship Management
Supply Chain Management

Venture capital investment

Benefit: By using technology from venture companies, we

MHI has invested in the Geodesic Capital Fund, an investment fund operatedby Geodesic Capital. This company, based in the U.S. state of California, wasestablished by John V. Roos, former U.S. ambassador to Japan. We have also
initiated collaborations with other venture capital firms, including Clearvision
Ventures in the United States, to enhance our exploration of new technologies
in new fields.

have been able to accelerate our development andproductization processes, which would otherwise take us
several years.

Opened a manufacturing-based co-creation space

Benefit: In August 2022, YHH launched the LogiQ X Lab facility

In October 2020, we opened the Yokohama Hardtech Hub (YHH) within abuilding housing the Company’s plant (total floor space: approx. 20,000m2)
as a co-creation space for companies, local governments, educational
institutions, and others involved in venture companies and manufacturing togather. As of April 2022, 9 venture companies and partner companies have
moved into YHH for their activities. In addition to the connection with those
venture companies, YHH has begun playing a role of being a place toaccelerate new business projects in which we are involved, from PoC (Proofof Concept) to social implementation, promoting various demonstrations ofadvanced technologies and ideas through co-creation.

within which it demonstrates an automated picking solution
utilizing AGV (Automated Guided Vehicle) for logistics
warehouses. Starting in November 2022, YHH initiatedco-creation efforts with potential customers such as Kirin
Beverage Co., Ltd. and Kirin Group Logistics Co., Ltd.
Additionally, in 2022, we broadened the large-scaledemonstration testing of an immersion cooling system fordata centers, which YHH initiated in 2021, in collaboration withthe major telecommunications company KDDI corporation,
leading to concrete results.

Social Contribution Activity

Governance
Data Section

Other Impacts: The introduction of new ways of thinking
and business styles, in addition to cutting-edge
technology, has made us realize the necessity fortransformation to enhance our international
competitiveness. We also promote internal pivot
development, which involves conducting research in shortcycles to match the development speed of startups. Thisapproach has significantly shortened our research anddevelopment timelines.

Other Impacts: By creating a cycle of having innovatorsfrom around the world gather to create new industries
and cultures, we will also contribute to the revitalizationof local communities.

LogiQ X Lab

Immersion cooling unit

86

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Customer Relationship Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation

Basic Approach Policy
One statement of Our Principles is: “We deliver reliable and innovative solutions that make a lasting difference to customers and communities worldwide.” Therefore, the company’s toppriority is to always place itself in the customer’s shoes and meet their expectations by providing products and services with high added value. Through these activities, MHI willcontinuously work to provide products and services that satisfy customers. We are actively carrying out advertising and promotional campaigns based on our business plans to reachstakeholders around the world. In conducting these activities, we ensure the accuracy of the information we provide to our customers, and we diligently adhere to the relevant
regulations and industry standards.

Management System System
Since customer characteristics and business practices are quite different in each of our businesses, each business unit utilizes their own optimized measurement method for Customer
Relationship Management.
■ Business-to-business divisions

Business-to-business divisions such as power generation and turbochargers conduct Voice of Customer research to collect customer feedback.

Customer Relationship Management> Basic Approach/Management System> Responsible Advertising Activities> Example of Initiatives

Supply Chain Management

Division

MethodEnergy• Face-to-face[ Thermal power generation
systems]• Online

Plants & Infrastructure• Face-to-face[ Shipbuilding ]• Online• Online survey

Social Contribution Activity

Governance
Data Section• E-newsletter

Concrete activities

MHI collects Voice of Customer (VOC) information through daily face-to-face and online communication. VOC information is classified into sevencategories (Maintainability and Operability, Consideration, Necessary Ability, Price, Response Speed, Market information, and others) to identify
strengths and weaknesses. We work on areas such as technology development and Kaizen. Improvement activities based on the results ofanalyses are carried out on a daily basis. In addition, the Company deploys web-based questionnaires specifically targeting overseas customers,
with whom face-to-face communication is not easy, on an annual or biannual basis. The system collects and analyzes customers’ comments on
quality, price, and responsiveness of MHI contact. The results are then used to further improve product quality and customer service.
In Mitsubishi Shipbuilding Co., Ltd.’s new shipbuilding business, we have established a system of maintaining close communication withshipowner’s site supervisors stationed at the shipyard. This ensures that we can promptly respond to our customers’ requests and make ourown proposals. In our engineering business, which includes the sale of LNG fuel supply systems, we register customer requests in a CRM tool
hosted in the cloud. We use this system for internal collaboration among team members and leverage it for future product development andidentifying customer needs. We also send an email newsletter to our customers almost monthly, introducing them to our business activities,
and to build and maintain relationships.

87

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Customer Relationship Management

Sustainability Management
Environment>Society

Division

Nuclear Energy

Method• Face-to-face• Online

Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention

Machinery Systems• Face-to-face• Online

Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management> Basic Approach/Management System> Responsible Advertising Activities> Example of Initiatives

Supply Chain Management
Social Contribution Activity

Governance
Data Section

Integrated Defense &Space Systems• Face-to-faceConcrete activities

We assign technical service managers to customers with pressurized water reactor (PWR) power plants in Japan so we can establish dedicatedtechnical contacts tailored to our customers’ locations, which serves to build strong relationships. We also have on-site managers who engage
in face-to-face interactions. They actively listen to the daily feedback and concerns of our customers and provide feedback to our team. This
allows us to swiftly address issues, provide maintenance proposals aligned with our customers’ needs, and enhance safety, stability, and plant
operational efficiency.
The industry has recognized and valued the trust and track record we have built through these efforts over many years, and now, we receive
numerous requests from new customers with boiling water reactor (BWR) plants.
Mitsubishi Heavy Industries Machinery Systems, Ltd. conducts activities to gather customer feedback through surveys and interviews, and thenleverages this feedback to enhance its products and services. As an example, for customers in the printing machine industry, the company has
developed a customer portal to facilitate communication and is operating it as the fourth customer touchpoint alongside traditional in-person,
phone, and email interactions. The company is gradually launching services to support customers in collecting technical information, making
various inquiries, purchasing spare parts, and providing maintenance support systems for the stable operation and upkeep of their machines.
Going forward, we will expand these initiatives to other businesses to meet a wide range of customer needs.
In the Integrated Defense & Space Systems segment, we conduct customer satisfaction surveys for certain business products with the aim of
improving customer satisfaction. We visit the Japan Self-Defense Forces, our customer, to receive evaluations regarding the quality of the
products delivered and the support provided. We listen to their opinions and requests for appropriate support and improvements aimed at
facilitating unit activities. Continuing these efforts strengthens communication with our customers, allowing us to respond promptly to inquiries
and other needs, thus enhancing trust.

88

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Customer Relationship Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention■ Areas in which general consumers are customers (air-conditioners, etc.)

Businesses whose customers are general consumers create contact points withcustomers by establishing contact points via the Internet and telephone. In addition tocommercial air-conditioners, Mitsubishi Heavy Industries Thermal Systems, Ltd. which
offers residential air-conditioners for general consumers, has set up an inquiry desk on
its website and a customer consultation center by telephone (for Japan only) toconstantly collect customer feedback. Moreover, the company conducts in-depth analysisof the VOC (Voice of customer) collected from distributors and contractors during daily
sales and service operations, twice a year. The information is fed back to relevant
departments, which aids in making improvements to products, sales, and services.

< Customer support process >Customer
Fill out online
form

Response

Inquiry desk

Response

Response via
operator

Phone call

Customer consultation center

Distribute torelevant department oroverseas office basedon the inquiry

Create database

Occupational Safety and Health
Product Safety

Inquiries received at the customer
consultation center are documented
in a database and shared with
relevant departments, where
discussions are held to determine
actions for improvement.

Feedback
The relevant department or overseas office:Innovation

Prepares responses to inquiries;
and considers suggestions andrequests for potential improvements.

Customer Relationship Management> Basic Approach/Management System> Responsible Advertising Activities> Example of Initiatives

Share customer feedback with all
departments through our internal
website and internal publications

Supply Chain Management

Responsible Advertising Activities System Initiatives

Social Contribution Activity

MHI Group engages in advertising and promotional activities for stakeholders worldwide. In pursuing these activities, we ensure that we provide accurate information to ourstakeholders and adhere to relevant laws and industry regulations. After running advertisements, we obtain measurements of their effectiveness, assessing their impact on increasing
brand recognition and permeating our corporate image.

Governance
Data Section

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Customer Relationship Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention

Example of Initiatives Initiatives■ Business-to-business divisions< Launched new customer portal for printing and packaging systems >We have developed and launched a new communication tool, a customer portal for printing and packaging systems made by Mitsubishi Heavy Industries Machinery Systems, Ltd.
This portal serves as the fourth customer touchpoint, supplementing the traditional in-person, phone, and email interactions. Customers can access a wide range of information,
including troubleshooting and technical manuals, in a timely manner on the dedicated webpage of this portal. It also allows for two-way communication with us for various inquiries.
Moreover, we have gradually started operating services such as an e-commerce website for purchasing spare parts and a maintenance support system for tracking and managing
maintenance progress. These services are aimed at supporting the stable operation and maintenance of our customers’ machines. We will continue to work towards providing
higher-quality services going forward.

Occupational Safety and Health
Customer portal

Product Safety
Innovation

Customertouchpoint

Online inquiry
FAQ

Customer

Customer Relationship Management

Two-way
communication> Basic Approach/Management System> Responsible Advertising Activities> Example of Initiatives

Digital guides (instruction manuals)
Information
provision

On-demand
informationacquisition

Supply Chain Management

Seamless deliveryof service chain

Social Contribution Activity

Governance
Data Section

MHI

Order history (parts/maintenance)
Parts catalog (for overseas customers)

Preventive
maintenance

CMS (operation monitoring system)

Parts purchasing

Spare parts e-commerce site

Maintenancesupport

Maintenance support system[ Customer portal functions (as of August 2023)]
1

FAQ that summarize responses to common inquiries from customers

2

Order history for reviewing past orders

3

E-commerce site for ordering spare parts

4

Digital guides as instruction manuals

5

Remote monitoring system for checking the operating status of machines

6

Maintenance support system for tracking maintenance progress and implementation

7

Inquiry management function enabling inquiries online,etc.
Top page of “customer portal for printing and packaging systems”

90

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Customer Relationship Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health

Example of Initiatives Initiatives■ Business-to-business divisions<>

Implementing technical support as an aspect of preventative maintenance
MHI Group provides 365-day real-time monitoring and support services for a wide range
of energy systems, including gas power systems, steam power systems, renewableenergy power systems, distributed power generation, and energy storage facilities, fromfour locations in Takasago and Nagasaki, Japan; the United States; and the Philippines.
By combining the MHI Group’s abilities in a diverse range of solutions, we will
provide support that will help increase the value of facilities and achieve a decarbonizedsociety. As of August 2023, the system was connected to approximately 274 units in realtime, contributing to our customers’ stable power generation operations.

Product Safety
Innovation■ Areas in which general consumers are customers< Development of air-conditioners reflecting customer feedback>
Mitsubishi Heavy Industries Thermal Systems, Ltd. has developed a compact
air-conditioner with an indoor unit height of 250mm for the Japanese market as part ofefforts to utilize customer suggestions and requests received through contact points for
product and service improvement. This development allows installation in Japanese
homes with limited space above windows, where conventional air-conditioners could not
be installed, offering a more comfortable living environment.
In addition, responding to customers’ requests for remote control adjustments of the
airflow direction of air-conditioners installed in high places, Mitsubishi Heavy Industries
Thermal Systems, Ltd. has equipped all models, including the standard model, with
left-right adjustable louvers that can be controlled via remote. This feature has received
high praise from customers over the years.

Customer Relationship Management

65mm> Basic Approach/Management System> Responsible Advertising Activities> Example of Initiatives

250mm

Supply Chain Management
Social Contribution Activity

Governance
Data Section
Left-right Adjustable Louvers
controlled via the remote

Takasago TOMONI HUB

91

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Supply Chain Management

Sustainability Management
Environment

Basic Approach Policy

Ensuring Diversity, Equity,and Inclusion in the Workplace

MHI Group procures a variety of materials and services both domestically and globally, including raw materials, machinery, equipment, and components. MHI is open to all motivatedand competitive suppliers, who are fairly and impartially evaluated and selected in accordance with related laws, regulations, and social norms. We then work to build mutually
beneficial relationships of trust with suppliers as business partners. In December 2018, MHI Group revised its Group Supply Chain CSR Promotion Guidelines, established in June 2010,
to include more specific details on consideration of human rights and occupational safety and consideration of the environment. By sharing the Group’s approach to CSR procurementwith suppliers, and also with the suppliers who make up the supply chains of our suppliers, we are promoting sustainability and CSR activities across the entire supply chain.

Human Resources Development

MHI website Promoting CSR procurement>Society
Human Rights

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management> Basic Approach/Promotion System> Data about the Supply Chain> Initiatives on Sustainability and CSR
Procurement> Initiatives on Human Rights, Occupational
Safety, and Procurement/Supply Chain
Monitoring/Conflict Minerals> Our improvements in the Supply Chain/
Participating in Initiatives

https://www.mhi.com/company/procurement/csr

Promotion System System Initiatives■ In house system

Based on our Procurement Global Policy & Procedures*, we ensure thorough compliancein procurement operations with the aim of establishing and maintaining a procurement
system trusted by the public and our stakeholders. Under the overall control of the chief
procurement officer, we appoint procurement managers and procurement compliancemanagers to each MHI business unit and Group company to manage and control
operations within the Group.

* Policy and procedural document setting out Group-wide procurement process rules based on the MHI Group Principles
and Code of Conduct.

■ Suppliers as business partners

Procurement management system
Control path

CTO

Supply Chain Management Department

Chief procurement officer
Procurement Managers’
Meeting (3 times a year)(Head of Value Chain Headquarters)

Governance(office services)(Assistance to chief procurement officer)• Proposal and implementation of measures• Proposal of and instruction to implement surveys, remedial
measures, and measures to prevent recurrence

Social Contribution Activity

Data Section

With office services provided by the Supply Chain Management Department,a Procurement Managers’ Meeting made up of the heads of procurement from each MHI
business unit and major Group companies convenes to discuss procurement-related
measures and promote a range of activities through Group-wide coordination.

Division heads*
Appointment/Instruction

Instruction

MHI business units
Procurement
managers

Group companies

Procurement compliancemanagers
Coordination

Compliance managers

CEO & President
Compliancemanagers

Appointment
Instruction

Procurement managers
Procurement compliancemanagers

Coordination* Division heads: domain CEO, segment CEO, business division head, corporate department head, etc.

The MHI Group Supply Chain CSR Promotion Guidelines set out our basic supply chain
policy, which is aimed at realizing a sustainable society, and request the understanding
and cooperation of suppliers in its implementation. In addition to ensuring productsafety, quality, fair pricing, and timely delivery, the guidelines advocate enhanced
technological development capabilities, due attention to compliance, corporate ethics,
human rights, occupational safety, and the environment, and contributions to local
communities and society.
Moreover, at platforms such as “business partner meetings” and “business policy
briefings,” we explain the Group’s CSR promotion guidelines and offer educative
information on the conduct expected of suppliers by introducing cases of ESG risks inthe supply chain.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Supply Chain Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace■ Critical suppliers

By business unit, MHI designates critical suppliers based on factors such as the size oforders, the importance of the parts or equipment, the lack of alternative suppliers, andthe level of geopolitical risk.
FY2023Tier 1 suppliers

24,799 companies

Primary Tier 1 suppliers

2,111 companies

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health

Data about the Supply Chain Performance■ Spending analysis (analysis of procurement history)

Product Safety
Innovation

Pick Up

Number of business partners provided withsustainability and CSR education

Customer Relationship Management
2023
Total number ofparticipants

Supply Chain Management> Basic Approach/Promotion System> Data about the Supply Chain> Initiatives on Sustainability and CSR
Procurement> Initiatives on Human Rights, Occupational
Safety, and Procurement/Supply Chain
Monitoring/Conflict Minerals> Our improvements in the Supply Chain/
Participating in Initiatives

2,521

companies

Number of participating suppliers
3,000

2,521

Social Contribution Activity
2,000

1,682

Governance
Data Section

1,332
1,000
0

701

2020

2021

2022

2023

(FY)

We conduct a spending analysis of the MHI Group’s total expenditure on orders and analyze
procurement and related expenditure by region.

RegionResults for FY2022
Amount (Billions of yen)Japan

12,716

Europe1,426

Asia/Oceania

1,415North America

1,235

China

832

Korea

321

India

133

Taiwan/Hong Kong

107

Central and SouthAmerica52

Middle East

41

Africa0.9

Central andSouth America 5.2
Middle East 4.1
Africa 0.09

Taiwan/Hong Kong 10.7
India 13.3
Korea 32.1
China

North 83.2
America
123.5
Asia/
Oceania
141.5
Results for
Europe142.6

FY2022 Amount(Billions of yen)Japan
1,271.6

93

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Supply Chain Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

Initiatives on Sustainability and CSR Procurement Initiatives Policy
To enhance the sustainability of the MHI Group’s supply chain, we conduct a CSR questionnaire survey as an initial screening of the status of suppliers’ CSR/ESG initiatives. Based on
the results, we then carry out an on-site survey, including human rights due diligence, to observe actual conditions, and later conduct a follow-up survey to check on improvement
measures.
This initiative, implemented continuously on a one-year cycle, represents a concrete step toward the designated goal of further promoting responsible (CSR) procurement in the
global supply chain as part of efforts to enhance corporate governance, which is one of MHI Group’s Material issues.
MHI website Promoting CSR procurement
https://www.mhi.com/company/procurement/csr

Talent Attraction and Retention
Occupational Safety and Health
Product Safety

Material issues: Enhance corporate governance
Goal: Further promote CSR procurement in the global supply chain

Innovation
Customer Relationship Management
Supply Chain Management> Basic Approach/Promotion System> Data about the Supply Chain> Initiatives on Sustainability and CSR
Procurement> Initiatives on Human Rights, Occupational
Safety, and Procurement/Supply Chain
Monitoring/Conflict Minerals> Our improvements in the Supply Chain/
Participating in Initiatives

Social Contribution Activity

Environment
Chemical substance management, management and reduction of effluent,sludge, and other waste matter, effective use of resources, reduction ofgreenhouse gas emissions, etc.

Social• Based on the scale and continuity of thebusiness relationship, we designate critical Tier
1 suppliers within our global supply chain forcompletion of a CSR questionnaire survey.
We are continuously expanding our activities toinclude suppliers both in Japan and overseas.

• In the CSR questionnaire survey, we use theSelf-Assessment Questionnaire (SAQ) of the
Global Compact Network Japan (GCNJ),
the Japanese arm of the United Nations
Global Compact.

CSR questionnaire survey
Supplier self-evaluation of CSR/ESG initiatives• Together with the CSR questionnaire survey,
we confirm suppliers’ agreement with our CSR
procurement activity and provide them witheducational materials on CSR procurement asmeasures to raise their awareness.

Respect for human rights and prohibition of discrimination, respect for local
communities, prohibition of discrimination in employment, equal
opportunities for employees, prohibition of inhumane treatment, payment ofappropriate wages, fair regulation of working hours, vacation, etc.,
prohibition of forced labor and child labor, etc.

Governance
Creation of systems for CSR promotion, internal control, business continuity,
compliance, internal whistleblowing, information security, etc.

Other CSR items

On-site survey
Review of related initiatives and collaboration in corrective
measures for suppliers with low self-evaluation in the CSR
questionnaire survey

Governance
Data Section< CSR questionnaire survey items >Follow-up survey
Continuous monitoring of suppliers after on-site survey

Quality and safety, supply chain, harmonious coexistence with local
communities

Main questionnaire items

ESG categoryI.

CSR in corporate governance

G (Governance)II.

Human rights

S (Social)

III. Labor

S (Social)

IV. Environment

E (Environment)V.

G (Governance)

Fair business practices

VI. Quality and safety̶VII. Information security

G (Governance)

VIII. Supply chain̶

IX. Harmonious coexistence with local
communities

̶94

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Supply Chain Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management> Basic Approach/Promotion System> Data about the Supply Chain> Initiatives on Sustainability and CSR
Procurement> Initiatives on Human Rights, Occupational
Safety, and Procurement/Supply Chain
Monitoring/Conflict Minerals> Our improvements in the Supply Chain/
Participating in Initiatives

Social Contribution Activity

Initiatives on Human Rights, Occupational Safety, and Procurement Initiatives Performance■ Human rights due diligenceIn fiscal 2022, we implemented a trial human rights questionnaire survey of 25
suppliers in Southeast Asia identified as having human rights risk of a comparatively
high level within the MHI Group’s business operations.
Of these, five suppliers with relatively low self-evaluation scores were selected foron-site survey, with interviews to check that there were no human rights risks requiring
attention.
Since fiscal 2023, we have incorporated human rights due diligence into our existingsustainability and CSR procurement initiatives, expanded the scope of the initiatives, andstarted full-scale implementation.
In fiscal 2023, we visited 13 suppliers mainly in Asia that had low self-evaluation

scores in the areas of human rights and labor in their CSR procurement, and confirmedthat there were no human rights risks that required attention.

Human rights
due diligencetaskforce
FY2021: plan
formulated
FY2022: trial
completed

Identification of
trial targets
Suppliers in theSoutheast Asia
region identified ashaving comparatively high humanrights risk

Human rights
questionnaire
surveySelf-evaluationquestionnaire survey
on human rights
initiatives implemented at 25 suppliers

On-site humanrights survey
On-site survey withinterview were
implemented at a
total of five suppliers with relatively
low scores

Supply Chain Monitoring Initiatives Performance■ Supply chain monitoring

MHI monitors and evaluates its critical Tier 1 suppliers’ quality, cost, delivery, technicalcapability, and management (including ESG) based on each business unit. By doing so, it
monitors the Group’s supply chain with the goal of analyzing supply chain risks andidentifying high risk suppliers.
In addition, we conduct CSR surveys in order to ascertain the status of CSR promotion
initiatives by suppliers. Based on supply chain monitoring results, to mitigate risks to
the MHI Group supply chain, we are conducting on-site surveys at supplier’s site andperform assessments regarding suppliers’ CSR/ESG activity including their knowledge

about the relevant laws, their compliance structure, and activity status against high risk
suppliers from a CSR/ESG point of view. We also discuss improvement as necessary.
In fiscal 2023, we have confirmed that there will be no major negative impacts as aresult of our on-site surveys.
Percentage of total spending on key Tier1 suppliers

80%

Number of suppliers surveyed by CSR questionnaire

Japanese and Overseas: 2,111 companies(FY2021, FY2022), 563 companies (FY2023)

Number of suppliers surveyed by ESG inspection

Onsite: 35 companies,
Online: 31 companies (FY2023)

Governance

Conflict Minerals Policy Initiatives

Data Section

Armed groups engaged in conflicts in the Democratic Republic of the Congo andneighboring countries have committed serious human rights abuses and acts ofenvironmental destruction.

raw materials, parts or products which contain the conflict minerals.
A survey was conducted in fiscal 2023 targeting smelter and country of origin, whichis the mineral procurement source for aircraft and automobile parts, and the results

This issue has caught the world’s attention. Some of the proceeds from the minerals
produced in this region (tin, tantalum, tungsten, and gold, hereinafter “conflict minerals”)
are thought to be a source of funding for these armed groups. MHI Group has nointention of abetting human rights abuses or environmental destruction by procuringconfirmed that 5,736 smelters out of 13,733 identified were certified under the conflictfree smelter program. We will continue to work with our customers, suppliers, industry
groups and others in efforts to avoid benefiting the armed groups.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Supply Chain Management

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace

Our Improvements in the Supply Chain Initiatives Performance■ Development of procurement human resources

The MHI Group’s procurement departments offer training to improve the skills of humanresources engaged in procurement, offering a range of different courses in procurement
operations for different job positions.
Procurement training structure

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety

Training forprocurement managers

Course in dealing with procurement
compliance risk for managementlevel staff of relevant departments

Price analysis based on statistical methods
Procurement engineering follow-up

Price analysis workshops
for specific commodities

Innovation

Procurement engineering

Customer Relationship Management

Practical: Procurement
risk management

Supply Chain Management> Basic Approach/Promotion System> Data about the Supply Chain> Initiatives on Sustainability and CSR
Procurement> Initiatives on Human Rights, Occupational
Safety, and Procurement/Supply Chain
Monitoring/Conflict Minerals> Our improvements in the Supply Chain/
Participating in Initiatives

Social Contribution Activity

Governance

Department
managers

Training for procurement
general managers

Practical: Vendor
management
Practical: Procurement
negotiation skills

Supervisors/
Deputy managers

Procurement
experience
3-10 years

Practical: Overseas procurement(negotiation of General Terms & Conditions)
Practical: Materials
procurement
Basic: Vendor
management

Induction: Cost
reduction techniques
for procurement items

Sectionmanagers

Basic: Procurement
complianceInduction: Basicprocurement operations

In fiscal 2023, new employees and employees newly appointed to procurement
departments were given induction training designed to equip them with basic knowledge ofprocurement operations including CSR procurement, with 92 participants from MHI Group.
We also conducted a course in overseas procurement and one designed to improve
procurement negotiation skills, which were attended by 34 and 25 employees, respectively.
■ Awareness raising on procurement complianceTo ensure the steady implementation of legally compliant procurement operations,
we regularly conduct courses in procurement compliance, with particular focus on
raising awareness of compliance with subcontractor law. Each year in November, which
is designated a month for particular attention to ensuring appropriate business relations
with subcontractors, we implement e-learning on subcontractor law for all MHI Group
employees in Japan, with subsequent comprehension testing followed up with group
lectures graded according to the results of the comprehension test. In addition, every
month we publish a learning aid that summarizes points requiring special attention asa quick guide to subcontractor law.

Practical: Logistics
knowledge

Basic: Overseas
on-site construction

Procurement
experience
1-2 years

Number of employees completing subcontractor
law e-learning and comprehension test
2023

Basic: Overseas
procurement

Training following new appointment to procurement departments (e-learning)

Pick Up

On appointment

62,633* Figure for all personnel engaged in MHI operations including temporary andcontract workers, on-site subcontractors, etc.

Data Section

Participating in Initiatives Initiatives Performance■ Participating in Supply Chain-Related Initiatives

In order to advance MHI Group’s CSR procurement initiatives, since fiscal 2019, we have taken part in the Supply Chain Working Group of the Global Compact Network Japan,
the local network of the UN Global Compact in Japan. Through activities with other companies, including those from other industries, we are promoting discussions on issues that
we face on a practical level and generating outputs (deliverables) aimed at contributing to the resolution of those issues.

96

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Social Contribution Activity

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation

Basic Approach Policy
MHI Group contributes to resolving various social issues through its businesses andproducts. Social contribution activity is a means to address issues that cannot be
resolved through business activity. In accordance with the CSR Action Guidelines, which
set out the shared approach of MHI Group employees, we focus our concrete activities
on three areas closely related to our business activities: environmental protection, local
community contribution, and fostering the next generation.
Our environmental protection activities come under the heading of ‘Care for theplanet’ and include contributions to mitigating climate change—increasingly importantin the face of rapid global warming—and action to preserve biodiversity, designed toprotect endangered species.
In our local community contribution, which we call ‘Create a more harmonious
society,’ we recognize that promoting harmonious coexistence with the communities

Customer Relationship Management
Supply Chain Management
Social Contribution Activity> Basic Approach> Performance Data
> MHI Group Initiatives

Governance
Data Section

hosting the MHI Group’s business bases and building strong relationships of trust is
essential to our business continuity. We therefore engage in a variety of activities,
adapted to the character and culture of the different regions, to contribute to thedevelopment and revitalization of local communities.
To foster the next generation, or ‘Inspire the future’ we offer a wide range ofeducational activities to children, including science lessons, whose basic aim is to passon to youth Japanese manufacturing craft and science and technology skills.
Becoming involved in these various social contribution activities also promotes thedevelopment of our human resources and increases employee engagement. We believethat it will additionally contribute to addressing one of the five material issues identified
in 2020: Promote diversity and improve employee engagement.

Focus areas for MHI Group social contribution activity

MHI Group’s CSR Action Guidelines (adopted in July 2007)
MHI strives to move the world toward a more secure future.
Through our technology, our business practices, and our people, we:Care for the planet

We are eco-conscious, and engineer environmentally-friendly
technologies that improve sustainability and protect the Earth

Create a more harmonious society
We embrace integrity and proactive participation
to solve societal challenges

Inspire the future

We cultivate global talent who share a vision anddesire to move the world forward for generations to comeTheme

Relationship with Group business

Environmental
protection

For MHI, which operates a global business including emerging and developing countries,
conducting business activity in a way that shows consideration for the global environment
is an important requirement for business continuity.

Local community
contribution

For MHI, which operates worldwide, coexisting in harmony with the communities where its
businesses are located and building strong relationships of trust is an important
requirement for business continuity.

Fostering thenext generation

As science and technology are the source of MHI’s growth, the declining interest in andunderstanding of science among children and their shift away from science subjects may
act as a barrier to our securing and development of human resources in the future.
Stimulating children’s interest in science is therefore an important requirement forbusiness continuity.

97

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Social Contribution Activity

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace

Performance Data Performance
Focus area (1)Fostering the next generation

Number of children participating in MHI science
lessons (total attendance)*1

Focus area (2)Local community contribution

Number of occasions when MHI provided community
support following a natural disaster or similar event*1

Focus area (3)Environmental protection

Support for
Tanegashimaloggerhead turtle
protection survey
activities

Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity

2020

2021

2022

69,779892*2

7,171*2

8,966 ✓*2

6

3

4

3✓

20

10

5

5✓

Employee volunteer applications(participants)

32
(24)

̶*3

̶*3

̶ ✓*3

Number of surveys carried out

8

7

8

8✓

Number of individual motherturtles identified during egg-laying

35

15

28

27 ✓

Number of individual baby turtles
identified during hatching

̶*4

̶

̶

̶✓

Value of donations and support*1

Human Resources Development
Talent Attraction and Retention

2019

Unit

Millions of yen*1 Coverage: MHI Group*2 In FY2020, FY2021, and FY2022, the science lesson program was held on a reduced scale due to COVID-19.
*3 In FY2020, FY2021, and FY2022, the recruitment and participation of employee volunteers was discontinued due to COVID-19 and employees instead supported the survey activity of the staff of a local non-profit organization.
*4 No survey was conducted during FY2019 hatching season due mainly to bad weather.

> Basic Approach> Performance Data
> MHI Group Initiatives

Social contribution activity cost input

Governance
Data Section

Type of contribution(Unit: Millions of yen)

(Unit: Millions of yen)

1,500

1,500

1,328

1,205

1,060

328

1,000

105

84

359
71

500

710

53

591

229

287
61

53
554

1,327

1,205

1,172
169

1,000

65

707

608

499
25

500

68

240
585
355

0

101

131

105

101

2019

2020

2021

2022

Academic research
Data coverage: Group-wide

Education

Local communities

Health and medicine and sport

0
Other

2019
Cash donations
Data coverage: Group-wide

2020

Contributions of time

1,172

1,060

493

446
53
48

18

588

548

2021
Donations in kind

88

2022
Overheads

3

98

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Social Contribution Activity

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace
Human Resources Development

MHI Group Initiatives Initiatives
Environmental protection: Care for the planet
Tanegashima Loggerhead Turtle Survey

Forest Conservation Programs

Cleanup activities in regions

At Tanegashima in Kagoshima Prefecture, the main base of our rocket launch
and transport service business, we are providing support to researchers
engaged in local survey activities to contribute to the preservation of theloggerhead turtle, an endangered species, by clarifying its lifecycle habits.
Employee volunteers are also participating in the activity and deepening theirunderstanding of the importance of preserving biodiversity.

MHI Group employees and their families participate in various forest
conservation activities such as tree planting and clearing undergrowth toaddress the many problems affecting forests around the world and to contributeto the development of ecologically diverse forests.

Group employees and their families carry out local cleanup activities. Theseongoing initiatives are focused mainly on the immediate vicinity of our businessbases and are intended to raise awareness of environmental protection and local
community contribution among all participants and to build relationships of trustwith local residents.

Volunteers receive an advance briefing from a researcher
on how to measure a turtle

A Group employee and family members carry out tree-planting
on the outskirts of Nanjing in China

Together with JR staff, we cleaned up the area around JR
Wadamisaki Station near Kobe Shipyard & Machinery Works.

Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity> Basic Approach> Performance Data
> MHI Group Initiatives

Governance
Data Section

Local community contribution: Create a more harmonious society
Presentation of shape-memory cutlery

TABLE FOR TWO (TFT)

Donations to non-profit organizations

Funds collected by labor unions were matched with an equal amount by MHI for
the purchase of shape-memory spoons and forks made with polymer resin.
These items, which help improve health and quality of life for users, were
donated to social welfare facilities in Tokyo, Yokohama, and Osaka through theJapan National Council of Social Welfare.

TABLE FOR TWO (TFT) is a non-profit organization whose aims are to relieve
hunger in developing countries and at the same time address obesity andlifestyle-related disease in developed countries. MHI cooperates with TFT byincorporating its programs in workplace cafeterias and vending machines.
Many employees also take part in TFT’s Onigiri Action, whereby sending in aphotograph of a rice ball (onigiri) results in a school lunch being provided to achild in Africa or Asia.

At Mitsubishi Power Americas, Inc., which has a very active donation program,
employees engage in a wide range of activities to support non-profit
organizations. These include raising money by taking part in charity running andwalking events and collecting toys and food for Christmas to give as donations.

The shape-memory items made of polymer resin have handles
that can bend into an easy-to-hold shape

Athletes from our marathon club help to publicize the Onigiri
Action campaign to people in and outside the Company

Christmas toys donated by employees

99

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Social Contribution Activity

Sustainability Management
Environment>Society
Human Rights
Ensuring Diversity, Equity,and Inclusion in the Workplace

Fostering the next generation: Inspire the future
Science classes

Factory tours with hands-on learning

Career education

MHI conducts science classes, mainly at elementary and junior high schools
located near its business facilities or at the Mitsubishi Minatomirai Industrial
Museum, using MHI Group products and technologies as teaching materials.
Through hands-on experience of craftwork and experiments, we teach thechildren the joy of making things.

We invite elementary and junior high school pupils to visit factories with
manufacturing and research facilities as an opportunity to observe and learn
about manufacturing at first hand. Our Research & Innovation Centercollaborated in an educational program sponsored by Nagasaki University toencourage school-age scientists, with activities including demonstrations offacilities used in product development testing and scientific experimentation.

MHI Group employees cooperate as lecturers in career education activities.
These programs involve educational visits to workplaces for first-handexperience of working life and are seen by schools as a promising way forbusiness to help equip pupils for working life by linking their learning in schoolwith wider society.

Junior high school pupils watch an experiment with ahome-made dropper rocketChildren participate in a program to encourage young scientists

Employees of an MHI factory give a talk at a local junior highschool on the content of their work and what motivates themSponsoring of scholarships

Study support

Sports coaching

We sponsor scholarship students from Vietnam, a country with an importantrole in MHI’s business, and support them to live in Japan and study at
Japanese universities. After graduation, the students seek further challenges,
either continuing to graduate school in Japan or returning to Vietnam to makeprofessional use of what they have learned in Japan.

Since fiscal 2012, employees of Mitsubishi Heavy Industries Air-conditioners(Shanghai) Co., Ltd., have built contacts with elementary school pupils in rural
areas distant from China’s urban centers, donating study utensils and giving
special lessons where they explore visions of the future with the children.

We provide coaching sessions to elementary and junior high school pupils infootball, rugby, baseball, track and field events, and other sports. This program
uses sport as a means to foster emotional wellbeing and physical health in therising generation and helps to widen their experience of sport.

Scholarship students attend a leaving ceremony at MHI after
university graduation

Group employees meet with children in the classroom

Members of a junior high school baseball club are coachedin batting

Human Resources Development
Talent Attraction and Retention
Occupational Safety and Health
Product Safety
Innovation
Customer Relationship Management
Supply Chain Management
Social Contribution Activity> Basic Approach> Performance Data
> MHI Group Initiatives

Governance
Data Section

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Sustainability Management
Environment
Society>GovernanceCorporate Governance

GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity

101 Corporate Governance

115 Compliance

101

Basic Approach to Corporate Governance/
Corporate Governance System

104
106

Remuneration of Directors

Compliance Security Export Control

107

Effectiveness of the Audit andSupervisory Committee Members

118

Anti-corruption Policy/System for Preventing Corruption/
Total Donations and Contributions

Compliance Tax Transparency

108

Activities of Committees

119

Employee Training

Compliance
Compliance Anti-corruption
Compliance Anti-trust

Data Section

Duties of the Audit and Supervisory Committee/
Structure of the Audit and Supervisory Committee

109 Risk management
109

Basic Approach, Policy/
Business Risk Management Structure

111 Risk Management
111

Business Continuity Management

Basic Policy on Business Continuity/
Preparations for Business Continuity (domestic example)

113 Risk Management
113

Business risk management

Cybersecurity

Efforts toward Cybersecurity

115
117

Basic Approach/Promotion System
Compliance

118 Compliance

120 Compliance
120

Security Export Control

Export Control Policy/Employee Training

122 Compliance122

Anti-trust

Anti-trust Policy/Employee Training

121 Compliance
121

Anti-corruption

Tax Transparency

Tax-law Compliance Policy

101

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Corporate Governance

Sustainability Management
Environment
Society>GovernanceCorporate Governance> Basic Approach to Corporate Governance/
Corporate Governance System> Remuneration of Directors> Duties of the Audit and Supervisory
Committee/Structure of the Audit andSupervisory Committee> Effectiveness of the Audit and Supervisory
Committee Members> Activities of Committees

Risk Management Business risk management

Basic Approach to Corporate Governance Policy
As a company responsible for developing the infrastructure that forms the foundation of society, MHI’s basic policy is to manage the company in consideration of all stakeholders and to
make efforts to enhance corporate governance on an ongoing basis in pursuit of sustained growth of MHI Group and improvement of its corporate value in the medium and long term.
In accordance with such basic policy, MHI endeavors to improve its management system by, among other ways, working to enhance its management oversight function, separating
management oversight and execution, and inviting outside directors on the Board, and develop a “Japanese-style global management” focusing on the improvement of the soundness
and transparency of its management as well as on diversity and harmony.

Corporate Governance System System
As part of a corporate governance reform, in 2015 MHI transitioned to a company with an Audit and Supervisory Committee. In 2016, we established the Nomination and Remuneration
Advisory Council. Since 2020, MHI’s Board of Directors has consisted of 12 directors, and six directors are independent outside directors. Through this reform, we aim to accelerate
decision-making and strengthen the oversight function.
See MHI Report P.62–P.71

https://www.mhi.com/jp/finance/library/annual/pdf/report_2023.pdf

Corporate Governance Structure (as of April 1, 2023)

Risk Management Business Continuity Management
Appoint/
dismiss

12

Deliberate

Nomination andRemuneration
Advisory Council

5

Senior Executive
Vice President
Senior Vice Presidents

Executive Committee

AdviceRespondGC

Management
Audit
Department

ReportCollaborate
Assist= Internal Directors• Sustainability Committee• Compliance Committee• International Trade Control
Committee• Environment Committee

Audit and Supervisory
Committee’s Office

Accounting auditor= Outside Directors

Accounting audits

Businessdomains

Manage, control,
supportDirect/order

Audit

Report/state
opinions

Appoint/
dismiss

Internal
auditsManage/control

Direct/orderCSO(of the 12 directors)

Collaborate

Direct/order

In charge of HR

Direct/order

Direct/order

CFO

Internal
auditsSenior Vice Presidents

Audit and Supervisory Committee:

Direct/order

Direct and order execution
in each business domain

Group companies

Report accounting
auditsAudits, etc.,
reportingAppoint/
dismiss

Presidents and CEOof business domains

Direct/order

Data Section

ReportShareholders' Meeting

Compliance Tax Transparency

AdvisePropose/reportCompliance Anti-corruption

Compliance Security Export Control

Partial delegation of
authority/responsibility

Proposal/reportCompliance

Compliance Anti-trust

President and CEO

Senior Vice
Presidents

Risk Management Cybersecurity

Directors (Board of Directors):

Selection/supervision
Delegation of decisions on importantbusiness execution

Corporate
departments

Instruct

Direct/order

CTO

等

Direct/order
Investigate
Report/consult(Reference) MHI Website Corporate Governance Guidelines https://www.mhi.com/jp/finance/management/governance/
https://www.mhi.com/jp/finance/management/governance/pdf/corporate_governance.pdf

102

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Corporate Governance

Sustainability Management
Environment
Society>GovernanceCorporate Governance> Basic Approach to Corporate Governance/
Corporate Governance System> Remuneration of Directors> Duties of the Audit and Supervisory
Committee/Structure of the Audit andSupervisory Committee> Effectiveness of the Audit and Supervisory
Committee Members■ Composition of the Board of Directors

When selecting directors who are not Audit and Supervisory Committee members, it is MHI’s policy to appoint those who are active in the core of MHI’s management, have extensive
experience in executing MHI’s business and have senior management perspective, and to invite more than one outside director whose role is to perform oversight from an objective
standpoint, while giving consideration to external stakeholders. Moreover, the Board of Directors strives to ensure both diversity and appropriate size including the aspects of gender,internationality, and career history while maintaining a good overall balance in terms of knowledge, experience, competence, and other qualities, after identifying the skills to beprepared in light of the management strategy.

Number of directors (breakdown) (As of June 29, 2023 )Total Directors

12

Executive directors

3

Non-executive directors

9

Risk Management Business risk management

Independent directors

6

Risk Management Business Continuity Management

Female directors

2

Risk Management Cybersecurity

Non-Japanese directors

0> Activities of Committees

Composition of the Board of Directors (As of June 29, 2023 )

Women

2

Outsidedirectors

6

Outside director
ratio

50%

Ratio of female
directors:

Internal
directors

6

17%
Men

Compliance
Compliance Anti-corruption

10
Board meeting attendanceCompliance Anti-trust
Compliance Security Export Control

Company’s independence
Average99% (FY2022)

Minimum attendance

93% (FY2022)

criteria:

50%

Ratio of female directors KPI:
Ratio of female officers to total officers
of at least

Compliance Tax Transparency

Data Section

30% by 2030

Limits on director’s terms of office and concurrently serving		Term of office

One year (two years for directors who are Audit and Supervisory
Committee members)

Average tenure

Four years (as of July 7, 2023)

Criteria related to limitiation on
concurrent servings

Internal directors are limited to around three companies

103

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Corporate Governance

Sustainability Management
Environment■ List of Directors and Director Skills Matrix

Society

Position and Responsibility
in MHI

Audit andSupervisory
Committee
members

Number of years
in office (as of theconclusion of theGeneral Meetingof Shareholders
on June 29, 2023)

Board Meeting
Attendance
Ratio (FY2023)

SocioEconomic
IssuesRisk
Management/
Compliance

GlobalEnterpriseManagement

100%

557

●

●

●

6

100%

167

●

●

●

Director, Senior Executive
Vice President, Assistant to
President and CEO

2

100%

50

●

●

InsideDirector, Executive Vice
President, CFO

3

100%

46

●

●

Male

OutsideDirector

7

100%

21

●

●

●

Nobuyuki Hirano

Male

OutsideDirector

4

100%

27

●

●

●

Mitsuhiro Furusawa

Male

OutsideDirector

New

̶

̶

●

●

Setsuo Tokunaga

Male

InsideDirector, Full-time Audit
and Supervisory Committee
Member

●

2

100%

51

●

●

Ryutaro Takayanagi

Male

InsideDirector, Full-time Audit
and Supervisory Committee
Member

●

1

100%

22

●

●

Hiroo Unoura

Male

OutsideDirector, Audit andSupervisory Committee
Member

●

4

100%

40

●

●

●

Noriko Morikawa

FemaleOutsideDirector, Audit andSupervisory Committee
Member

●

3

100%

5

●

●

●

Masako Ii

FemaleOutsideDirector, Audit andSupervisory Committee
Member

●

2

100%

5

●

●

Inside/outsideShunichi Miyanaga

Male

InsideChairman of the Board (Note 1)

15> Basic Approach to Corporate Governance/
Corporate Governance System> Remuneration of Directors> Duties of the Audit and Supervisory
Committee/Structure of the Audit andSupervisory Committee> Effectiveness of the Audit and Supervisory
Committee Members

Seiji Izumisawa

Male

InsidePresident and CEO

Hitoshi Kaguchi

Male

InsideHisato Kozawa

Male> Activities of Committees

Ken Kobayashi

Risk Management Business risk management
Risk Management Business Continuity Management

Corporate GovernanceRisk Management Cybersecurity
Compliance
Compliance Anti-corruption
Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency

Skills Matrix: Knowledge, experience and expertise(note 2)(Unit:
hundred)

Gender>Governance

Number ofsharesowned

Data Section(As of June 29, 2023)

Technology/
Digitalization

Marketing

Finance/
Accounting

Human
Resource

●
●

●

●

●

●

●
●
●

●

●

●

●

●

(Note 1) Chairman of the Board of Directors (the chairman of the board and CEO do not serve concurrently.)(Note 2) The skills matrix does not indicate the entire range of knowledge, experience and expertise that a given director possesses.

For the analysis and evaluation of the effectiveness of Board of Directors and future initiatives, please refer to MHI Report P.66. https://www.mhi.com/jp/finance/library/annual/pdf/report_2023.pdf

●

●

104

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Corporate Governance

Sustainability Management
Environment

Remuneration of Directors Policy System ActualSociety■ Structure of Executive Remuneration>GovernanceCorporate Governance> Basic Approach to Corporate Governance/
Corporate Governance System> Remuneration of Directors> Duties of the Audit and Supervisory
Committee/Structure of the Audit andSupervisory Committee> Effectiveness of the Audit and Supervisory
Committee Members> Activities of Committees

Risk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance
Compliance Anti-corruption
Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency

Data Section<

Remuneration of Directors (Excluding Audit and Supervisory Committee Members
and Outside Directors)>• The remuneration of directors (excluding Audit and Supervisory Committee Members andoutside directors) consists of base remuneration, performance-linked remuneration (variable
remuneration: short-term incentive), and stock-based remuneration (variable remuneration:
long-term incentive) from the viewpoint of reflecting business performance and sharing value
with shareholders.
• Performance-linked remuneration is determined based on consolidated earnings while also
taking into account the roles of each director and the business performance andaccomplishments of the business of which he or she is in charge, etc.
• For stock remuneration, the Board Incentive Plan Trust structure is used. MHI shares areissued, and remuneration is paid based on stock award points that are granted in accordancewith the individual role of each director and the Company’s business performance, etc.
• After revising the stock-based remuneration system through a resolution passed at the 94th
Annual General Meeting of Shareholders, which was held on June 27, 2019, the standard forthe remuneration of the Company’s president was set at roughly 30% base remuneration,
40% performance-linked remuneration, and 30% stock-based remuneration (in the event that
consolidated proﬁt before income taxes reached ¥200 billion; calculated based on the fairvalue of stock award points granted during fiscal 2018), making for a remuneration structurein which the higher a director’s position is, the greater his or her performance-linked
remuneration will be.
• The benchmark used to calculate performance-linked remuneration is profit from businessactivities. Profit from business activities was chosen so that the results of business operations
are reflected in performance-linked stock remuneration. Starting in 2022, the benchmark waschanged from pretax profit to profit from business activities, a major indicator used in businessplanning in order to further strengthen the link with business plans including the Medium-TermBusiness Plan.
• The benchmark used to calculate stock-based remuneration is pretax proﬁt. Pretax proﬁt waschosen to incorporate the results of business operations inclusive of ﬁnance income/costs instock-based remuneration.
• In fiscal 2022, the profit from business activities used in the calculation of performance-based
remuneration for fiscal 2022 was ¥193.3 billion, compared to the target (initial forecast) of
proﬁt of ¥200 billion. The proﬁt before income taxes for fiscal 2021 targeted for use (initial
forecast) in the calculation of stock-based remuneration for fiscal 2022 was ¥130 billion andthe actual amount was ¥173.6 billion.

Methods for Determining Each Type of Remuneration(Remuneration of directors who are not Audit and Supervisory Committee members[excluding outside directors])
Base remuneration: Standard amount based on position + Additional amount based on performance•T he standard amount based on position is determined in accordance with a director’s position andthe details of his or her duties, etc.
•T he additional amount based on performance is determined within a range that shall not exceed¥500,000 a month.
Performance-linked remuneration: Position-based payment coefficient x Profit from business activities
for the given fiscal year ÷ 10,000 x Coefficient of business results•P erformance-linked remuneration is paid when the Company records a profit from businessactivities (or after adjustment in the event that partial adjustments are made) and carries out
dividend payments.
* From the current fiscal year, the key indicator in business plans was changed from profit before income taxes to profit frombusiness activities to increase the linkage with business plans such as the Medium-Term Business Plan

• The position-based payment coefficient is determined in accordance with a director’s position andthe details of his or her duties, etc.
•T he coefficient of business results evaluates the performance and results of a business of which a
director is in charge. It is determined within a range from 1.3 to 0.7.
Stock-based remuneration: Position-based standard points coefficient of business results•A s a general rule, directors receive MHI shares and cash in an amount equivalent to MHI shares’
liquidation value three years after being granted stock award points.
•P osition-based standard points are determined in accordance with a director’s position and thedetails of his or her duties, etc.
•T he coefficient of business results is based on proﬁt before income taxes in the previous ﬁscal year.
• In the event that a director engages in improper conduct, the Company suspends the granting ofstock award points and the issuance of shares to said director. The Company asks the director to
submit a payment equivalent to the number of shares issued to him or her, so-called “clawback”.

105

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Corporate Governance

Sustainability Management
Environment
Society>GovernanceCorporate Governance> Basic Approach to Corporate Governance/
Corporate Governance System> Remuneration of Directors> Duties of the Audit and Supervisory
Committee/Structure of the Audit andSupervisory Committee> Effectiveness of the Audit and Supervisory
Committee Members> Activities of Committees< Remuneration of outside directors>■ Incorporating an ESG perspective into stock-based renumeration calculations

In order to objectively evaluate the Company’s broad range of ESG initiatives, startingwith executive compensation in fiscal 2023, external evaluations by major ESG
evaluation organizations are reflected in the performance coefficient.
■ Measurement metrics for variable remuneration

Internal Financial Success Metrics: The remuneration is determined based on thebusiness performance of which he/she is in charge. External Financial Success Metrics:
The remuneration is determined based on the consolidated earnings of the Company.
■ Variable remuneration linked to long-term performance

Ratio: 43.9% / Type: Stock remuneration

The Company expects that the outside directors offer their objective opinions andguidance, primarily on their vision for the Company over the medium to long term, froman independent standpoint. Accordingly, the outside directors are only paid a baseremuneration, which is set at an appropriate amount.

< Remuneration of directors who serve as Audit and Supervisory Committee Members >Directors who serve as Audit and Supervisory Committee members are only paid a baseremuneration. The amount for this base remuneration is determined in consideration ofeach member’s roles and responsibilities and based on whether he or she is a full-timeor part-time member. However, the base remuneration for full-time Audit andSupervisory Committee members can be reduced in consideration of the status of theCompany’s management and other factors.

Risk Management Business risk management
Risk Management Business Continuity Management■ Remuneration (Note)

NumberRisk Management Cybersecurity
Compliance
Compliance Anti-corruption
Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency

Data Section■ Average salary of all employees and CEO remuneration

Directors who are notserving as Audit andSupervisory
Committee members(excluding outside
directors)
Directors who areserving as Audit andSupervisory
Committee members(excluding outside
directors)

4

Male

Unit

Total

Base
remuneration

Performancelinked
remuneration

Millionsof yen

1,023

231

444

Stock
remuneration

348

0FemaleMillionsof yen

̶

̶

̶

̶

2

Male

Millionsof yen

103

103

̶

̶

0

FemaleMillionsof yen

̶

̶

̶

̶

5

Male

Millionsof yen

63

63

̶

̶

2

FemaleMillionsof yen

37

37

̶

̶

Outside directors(Note) The table above includes one director who not was an Audit and Supervisory Committee member and who retired during
the fiscal year under review.
(Note) Actual remuneration levels are based on position and does not differ between male and female directors.

Unit

Stock remuneration

Millions of yen

348

Mean employee salaryMillions of yen

9.65

Median employee salaryMillions of yen

8.92

time

36.1 (pairwise average), 39.0 (pairwise medians)

CEO remuneration

Ratio■ Individual remuneration (Note)

Name

Position

Unit

Total

Base
remuneration

Performancelinked
remuneration

AmountShunichi Miyanaga

Director

Millions of yen

327

68

140

118

Seiji Izumisawa

Director

Millions of yen

348

74

155

118

Hitoshi Kaguchi

Director

Millions of yen

201

49

85

66

Hisato Kozawa

Director

Millions of yen

145

39

62

43

(Reference) Securities Report (FY2023), P.72
https://www.mhi.com/jp/finance/library/financial/pdf/2023/2023_04_all.pdf(Note) Officers receiving more than 100 million yen in total sum

106

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Corporate Governance

Sustainability Management
Environment
Society>GovernanceCorporate GovernanceDuties of the Audit and Supervisory Committee Policy
The Audit and Supervisory Committee monitors and verifies various aspects of the Company’s operations, including the execution of duties of directors, the appropriateness of business report, etc.,
adequacy of audits by the accounting auditor, and the effectiveness of internal control systems. The results of this monitoring and verification are provided to the Company’s shareholders via audit
reports. In addition, the Audit and Supervisory Committee decides on opinions pertaining to the election of and remuneration for directors who are not Audit and Supervisory Committee members.
The committee is also responsible for determining the details of agenda items related to the appointment of accounting auditors, among other duties. Moreover, distinct from directors who are not
Audit and Supervisory Committee members, directors who are Audit and Supervisory Committee members are appointed at the General Meeting of Shareholders. Each director has a duty of due> Basic Approach to Corporate Governance/
Corporate Governance System> Remuneration of Directors> Duties of the Audit and Supervisory
Committee/Structure of the Audit andSupervisory Committee> Effectiveness of the Audit and Supervisory
Committee Memberscare, based on their contract of service with the Company.

> Activities of Committees

Committee’s activities, two full- time members of the Audit and Supervisory Committee arefiscal year, the Audit and Supervisory Committee forms its audit opinion on the appropriateness ofmutually selected by the committee’s members. One of these full-time members has extensive

the Accounting Auditor’s auditing methods and results pertaining to whether or not the financial

work experience in accounting and financial divisions, giving him a considerable amount ofstatements in a given fiscal year present fairly the financial position and results of the Company.

Risk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance
Compliance Anti-corruption

Structure of the Audit and Supervisory Committee System
The Audit and Supervisory Committee comprises five directors, the majority of whom (three) areoutside directors. In addition, to ensure the effectiveness of the Audit and Supervisory

insight on financial and accounting affairs.
To support auditing activities, the Audit and Supervisory Committee’s Office has been set

including those related to financial reporting.
Through the monitoring and verification of the directors’ execution of duties throughout the

The Audit and Supervisory Committee fully utilizes the results of comprehensive and regular
audits implemented by the Management Audit Department. Full-time Audit and Supervisory

up with its own dedicated staff of six to facilitate the work carried out by the Audit andCommittee members confirm the formulation and progress of audit plans by the Management

Supervisory Committee.

Audit Department in a timely manner, are present at audits by the Management Audit Department
as necessary, and receive reports of audit results. In addition, full-time Audit and Supervisory■ Auditing activities

Committee members receive reports from the Management Audit Department at each stage on the

Compliance Anti-trust

In its activities in fiscal 2022, the Audit and Supervisory Committee positioned as “key points”

occurrence of, response to, and countermeasures against misconduct, and confirm that theCompliance Security Export Control

such matters as the status of progress on important measures in the 2021 Medium-Termappropriate response is being provided. For these reasons, full-time Audit and Supervisory

Business Plan that the Audit and Supervisory Committee considers it necessary to pay close

Committee members and the Management Audit Department hold regular meetings (around once

attention to, as well as the status of responses to individual events with a major impact on

a month) to exchange information and Audit and Supervisory Committee members attend audits

management.

performed by the Management Audit Department as necessary.

Compliance Tax Transparency

Data Section

Directors who are Audit and Supervisory Committee members attend meetings of the Board

Moreover, Audit and Supervisory Committee members and the accounting auditor regularly

of Directors as directors, and full-time Audit and Supervisory Committee members attend

exchange opinions on audit plans by the accounting auditor and audit results while full-time Audit

important meetings such as those of the Executive Committee and those related to businessand Supervisory Committee members and the accounting auditor hold meetings to exchange

planning in an effort to understand and monitor the status of management execution in a timely

information on a monthly basis. In these ways, we are facilitating close communication between

and accurate manner while conducting audits to ascertain whether the duties of the Directors

the Audit and Supervisory Committee and the accounting auditor.

are being executed in compliance with laws and ordinances and the Articles of Incorporation,

Furthermore, full-time Audit and Supervisory Committee members regularly hold meetings toin addition to whether corporate operations are being performed properly. The audits areexchange information that are attended by the full-time statutory auditors of Group companies,

conducted through the inspection and confirmation of compliance status and the monitoring andat which the full-time Audit and Supervisory Committee members confirm the status of theverification of the status of the establishment and operation of internal control systems,

establishment and operation of the internal controls of major subsidiaries.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Corporate Governance

Sustainability Management
Environment
Society>GovernanceCorporate Governance> Basic Approach to Corporate Governance/
Corporate Governance System> Remuneration of Directors> Duties of the Audit and Supervisory
Committee/Structure of the Audit andSupervisory Committee> Effectiveness of the Audit and Supervisory
Committee Members> Activities of Committees

Risk Management Business risk management

Effectiveness of the Audit and Supervisory Committee Members Actual■ Audit and Supervisory Committee attendance

Average100% (FY2022)

The minimum attendance

100% (FY2022)■ Rate of attendance at Audit and Supervisory Committee by Audit and Supervisory

Committee members
Name

Inside/Outside

Compliance
Compliance Anti-corruption

Compliance Tax Transparency

Data Section

Audit and Supervisory
Committee Attendance(FY 2022)

InsideDirector, Full-time Audit andSupervisory Committee Member

100%

Setsuo Tokunaga

InsideDirector, Full-time Audit andSupervisory Committee Member

100%

Ryutaro Takayanagi

InsideDirector, Full-time Audit andSupervisory Committee Member

100%

Hiroo Unoura

OutsideOutside Director, Audit andSupervisory Committee Member

100%

Noriko Morikawa

OutsideOutside Director, Audit andSupervisory Committee Member

100%

Masako Ii

OutsideOutside Director, Audit andSupervisory Committee Member

100%Compliance Anti-trust
Compliance Security Export Control

Position (as of March 31, 2023)

Koji Okura

Risk Management Business Continuity Management
Risk Management Cybersecurity■ Results of Initiatives Implemented in fiscal 2022

(Note) Since Mr. Koji Okura, Director, retired at the conclusion of the 97th Annual General Meeting of Shareholders held on June29, 2022, and Mr. Ryutaro Takayanagi, Director and Full-time Audit and Supervisory Committee Member assumed office on
the day of the 97th Annual General Meeting of Shareholders (June 29, 2022), the Audit and Supervisory Committee
members as of March 31, 2023 were Setsuo Tokunaga, Ryutaro Takayanagi, Hiroo Unoura, Noriko Morikawa, and Masako Ii.

Pertaining to activities in fiscal 2022, the Audit and Supervisory Committee preparedan Audit Report giving its opinion that the Business Report and other reports fairly
represent the conditions of the Company in accordance with laws and ordinances and the
Articles of Incorporation; that it found no misconduct or significant facts in violation oflaws and ordinances or Articles of Incorporation in the execution of duties by directors;
that the content of the Board of Directors’ resolutions on internal control systems isappropriate; that it found no matters warranting comment regarding the contents of theBusiness Report and directors’ execution of their duties related to internal control
systems, including internal control systems related to financial reporting; and that the
Accounting Auditor’s auditing methods and results are appropriate.
The Audit and Supervisory Committee reported on the contents of the Audit Reportto shareholders at the General Meeting of Shareholders, which was held on June 29,2023, and commented on the appointment and remuneration of directors who are notmembers of the Audit and Supervisory Committee.
Furthermore, the Audit and Supervisory Committee assessed the Accounting Auditor
on ensuring a system for the proper execution of duties (matters specified in the items
under Article 131 of the Company Accounting Ordinance), independence,
appropriateness of audits, auditing ability and expertise for responding to the diversity
and internationality of operations, and appropriateness of remuneration, and as a result,
the Committee resolved to reappoint KPMG AZUSA LLC as the Accounting Auditor for
fiscal 2023.

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Corporate Governance

Sustainability Management
Environment

Activities of Committees System Implementation

Society>GovernanceCommittee name

Chair,
personresponsible

Members> Activities of Committees

Nomination andRemuneration
Advisory Councilー

Chairman of the Board, President, Outside
Directors (6)Outside Directors’MeetingsーSix outside directors and representatives fromthe company (as necessary)

Independent outside directors strengthen oversight of businessexecution divisions and exchange opinions with the divisions on
a wide range of matters not limited to the agenda items of theBoard of Directors.

2

Exchange of opinions related to Boardof Director effectiveness evaluations
and dialogue with employees

Compliance
Committee

GC

General Managers of Corporate Departments,
and General Managers of Administration
Departments of Business Domains andSegments; a total of 28 people

Promote compliance at MHI Group.

2

Annual action plan for compliancemeasures

Environment
Committee

CTO

General Managers of Corporate Departments,
and General Managers of Administration
Departments of Business Domains andSegments; a total of 15 people

Clarify the Company’s stance on the environment internally andexternally and promote environmental activities.

1

Confirmation of progress on the Fifth
MHI Group Environmental Targets andverification of the next fiscal year’s
initiatives

GC

General Managers of Corporate Departments,
and General Managers of Administration
Departments of Business Domains andSegments; a total of 22 people

Promote compliance with international trade control regulations
at MHI Group.

2

Deliberation and approval ofimportant policies, initiatives, andaction plan related to export
management

Business Risk
Management
Committee

GC

CFO, CSO, CTO, officer in charge of HR, General
Managers of Corporate Departments, andGeneral Managers of Administration
Departments of Business Domains andSegments; a total of around 20 people

Deliberate on policy and share information related to businessrisk management.

4

Policies and measures forbusiness risk

Cybersecurity
Committee

CTO

CSO, GC, officer in charge of HR, domain andsegment heads, Information System Officer(head of the Digital Innovation Headquarters);
a total of 13 people

We will secure business continuity and maintain the efficiency of
production activities against cybersecurity threats while achieving
advanced cybersecurity governance at the global level.

(Newlyestablished asof August 1,
2023)(Newly established as ofAugust 1, 2023)

Risk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance
Compliance Anti-corruption
Compliance Anti-trust
Compliance Security Export Control

International Trade
Control Committee

Compliance Tax Transparency

Data Section

Main agenda items in FY2022

Obtain the opinions and advice of independent outside directors
to ensure transparency and soundness of procedures prior todeliberations by the Board of Directors on matters relating to thenomination of candidates for directors, the dismissal of directors,
and the appointment and dismissal of other management
executives, and matters relating to the determination of
remuneration of directors (excluding directors who are serving as
Audit and Supervisory Committee members).

Corporate Governance> Basic Approach to Corporate Governance/
Corporate Governance System> Remuneration of Directors> Duties of the Audit and Supervisory
Committee/Structure of the Audit andSupervisory Committee> Effectiveness of the Audit and Supervisory
Committee Members

Purpose of establishment

Number ofmeetings in
FY2022

5Nomination of director candidates,
dismissal of directors, and othermatters related to appointment anddismissal of executive management,
matters related to determining
remuneration of directors who are
not Audit and Supervisorycommittee members

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Risk Management

Business risk management

Sustainability Management
Environment

Basic Approach, Policy Policy

SocietyThroughout its history, MHI Group has achieved sustained growth by taking up diverse
new challenges and initiatives in numerous business areas. At the same time,on occasion we have experienced losses on a large scale.
In order for MHI Group to mark sustained growth amid an ever-changing businessenvironment, it is necessary to continue to take up challenges in new fields, newtechnologies, new regions, and new customers as well as to improve and strengthen
operations in its existing business markets. Such challenges will entail business risks,
and a company’s ability to curb risks wields significant influence on its business results
and growth potentials.

>GovernanceCorporate GovernanceRisk Management Business risk management> Basic Approach, Policy/
Business Risk Management Structure

Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance
Compliance Anti-corruption
Compliance Anti-trust
Compliance

Security Export Control

Compliance Tax Transparency

To link challenges of this kind to the next leap into the future, MHI Group, applying its
past experience and lessons learned, has established the “Business Risk Management
Charter” and will promote the creation of mechanisms that will ensure the effective
execution of business risk management, and cultivation of a culture of responding torisks. MHI Group will also reinforce advanced, intelligent systems and processmonitoring, both of which support top management’s strategy decisions. Through theseapproaches, we will pursue “controlled risk-taking” that will enable us to carry out
carefully planned challenges toward expanding our business.

Business Risk Management Structure System
MHI Group is pursuing more organized business risk management and clarifying theroles of management, business segments, and corporate departments. In addition,with the Business Risk Management Division as the responsible department, we engage
in business risk management activities bringing together management, businesssegments, and corporate departments.

Business Risk Management Structure“Business Risk Management Charter”
CEO
CFO

CSO
GC

Data Section

CTO
HRManagement officers

Business Risk
Management Committee

Business Risk Management Division

Business segments

Other corporate divisions(activity support)• Establishment of business risk management system• Deliberation on specific projects and capital investments• Risk monitoring for specific projects and capital
investments• Organizing the risk list
• Global Insurance coverage policy• Implementation of autonomous businessrisk management• Improvement of business execution capability• Development of highly risk-sensitive
human resources

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Risk Management

Business risk management

Sustainability Management
Environment
Society>GovernanceCorporate GovernanceRisk Management Business risk management> Basic Approach, Policy/
Business Risk Management Structure< Matrix of Business Risk Management >< Business Risk Management Process >We believe that risk management is a part of governance and functions only when theelements of systems and processes, corporate culture, and human resources are inplace. For our Group to succeed in the global market, we need to take bold and daring
risks, but we also need to manage those risks. That is the perfect combination forcontinually increasing our corporate value. In this sense, it is very important that all
business participants, from people engaged in the actual business to management,
comprehend and control risks in business, from processes to strategies. For details,
please see the chart below (Matrix of Business Risk Management).

The chart below (Business Risk Management Process) outlines specific business risk
management activities. In addition to improving systems and processes to prevent
business risks, reduce the frequency with which such risks manifest themselves, andconsider and implement measures, we also develop human resources in charge ofbusiness risk management and cultivate a culture of responding to risks through such
efforts as providing training for SBU manager candidates.

Risk Management Business Continuity Management
Risk Management Cybersecurity

Strategy risks
Risks associated withbusiness strategies (entry,
continuance, and withdrawal)

Compliance
Compliance

Anti-corruption

Compliance

Anti-trust

Compliance Security Export Control
Compliance Tax Transparency

Data Section

Cultural risks
Risks associated withcorporate culture (internalcustoms, corporate character,history, values, and humanresource system)

Process risks
Risks associated withbusiness execution(planning and execution)

Occurrence of business risk

Create special response team andcarry out response(monitoring, etc., in PDCA cycle)
Apply results of monitoring andimprovement to management
processes

Monitoring

Top management(Officers)
Middle management(SBU(Note) managers)
Execution (People incharge of actual
work)(Note) SBU: Strategic Business Unit (business unit in the strategic business assessment system)

Establish a participation systemfor experts
Prepare management tools(visualization, knowledge sharing)
Educate SBU managers

Improve project execution
capability throughappropriate involvementof experienced humanresources

CHECK/ACTION

Execution

Risk
designation

DO
PLAN
Designation ofresidual risks

Risk analysis/
evaluation

Consideration/
execution ofcountermeasures

Consideration of risk
response policy (reduce,
avert, shift, and retain)

Business risk prevention and reduced
frequency of occurrence

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Risk Management

Business Continuity Management

Sustainability Management
Environment

Basic Policy on Business Continuity Policy

Society

As a company that bears heavy responsibility for creating and maintaining the functionsof social infrastructure, we carry out initiatives for business continuity based on thefollowing basic policy so as to continue business even when facing an unanticipatedsituation like a large-scale natural disaster, or to restore it as quickly as possible oncebusiness is discontinued.

Regarding pandemics of new influenza strains and new infectious diseases(hereinafter, “new flu strains, etc.”), we established the New Flu Strains, Etc. Response
Guidelines and address such situations based on the three basic policies at right.

1. Highest priority on ensuring people’s safety
We will put highest priority on ensuring the lives and safety of customers, employees (and theirfamilies), and business partners, etc.

1. We put highest priority on maintaining and securing the lives and safety of employees and

2. Ensuring the safety of local communities
We will work to prevent secondary disasters such as the outflow of pollutants, abide by rules forminimizing the impact on industry and society, and exist in harmony with local communities.

3. We continue to carry out business activities to the extent possible.

>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management> Basic Policy on Business Continuity/
Preparations for Business Continuity(domestic example)

Risk Management Cybersecurity
Compliance
Compliance

Anti-corruption

Compliance Anti-trust

their families.
2. We work to prevent the spread of infections when infected by new flu strains, etc.

3. Quick restoration of businessWe will quickly launch businesses contributing to restore social infrastructure and to maintaindefense functions in order to work to minimize the negative business impact from services
shutting down and reputational risk.

Compliance Security Export Control
Compliance Tax Transparency

Data Section

Preparations for Business Continuity (domestic example) Initiatives■ Initiative for large-scale natural disasters

For large-scale natural disasters like earthquakes and typhoons, business continuity
plans (BCP) are formulated by assuming high risk events that could occur in the region
for each business site. In fiscal 2022, response guidelines in the BCP were revised basedon the status of the latest organizational systems.
At the MHI head office, response guidelines have been created in preparation for anearthquake occurring immediately under Tokyo. We have also built a system that abackup response headquarters would be established in the Kansai region to allow for
initial response and activities for business continuity to be carried out in the situationthat an earthquake with a seismic intensity of just under six, which is the level thatwould trigger the BCP, occurs.

At our various sites, in order to prepare for unexpected contingencies, response
guidelines in the BCP has been created in two phases, “initial response / infrastructure
restoration” and “early resumption of business,” so as to handle emergency events
appropriately.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Risk Management

Business Continuity Management

Sustainability Management
Environment

Results of drills simulating an earthquake immediately under Tokyo

Society>GovernanceCorporate GovernanceFiscal 2021

Fiscal 2022

• Drill involving communication equipment in which an earthquake occurs at night on the weekend
and a response headquarters is set up remotely• Drill to set up a backup response headquarters in the Kansai region while simulating thesuspension of head office functions• Drill involving communication equipment in which an earthquake occurs at night on the weekend
and a response headquarters is set up remotely•D rill to set up a backup response headquarters in the Kansai region while simulating thesuspension of head office functions•D rill on setting up a response headquarters at the head office based on an earthquake occurring
during the day

Risk Management Business risk management
Risk Management Business Continuity Management> Basic Policy on Business Continuity/
Preparations for Business Continuity(domestic example)

Risk Management Cybersecurity
Compliance
Compliance

Pick Up Use of disaster prevention simulation technology
to factory BCP
With climate-related disasters being exacerbated by climate change caused by global warming,

Anti-corruption

Compliance Anti-trustsocial infrastructure built during Japan’s period of high economic growth is continuing to age,so it is important to analyze infrastructure disaster risks and to make plans for repairs andResponse

replacements. MHI Group has proprietary disaster simulation technology for various disasters,

Compliance Security Export Control

ranging from flooding, tsunami, earthquakes, typhoons, fires and leakage explosions, and it

Compliance Tax Transparency

response measures for the purpose of increasing infrastructure resilience (resilience andData Section

Disaster simulation example: Typhoon

can be utilized to analyze risks caused by climate change and then for planning disaster
restorative capability).
In fiscal 2022, this disaster simulation technology was applied to seven domestic factories inorder to assess where at the factory the impact would be if a large-scale typhoon, torrential
rains, or a tsunami should occur, which led to revise the BCP in each factory. In fiscal 2023, weWind velocity map(Strong impact in bay-shaped areas and valleys)also plan to apply this disaster simulation technology to three factories in Japan and to intend to

Response examples(Building wind pressure reduced by 30% using
windscreens)expand to further factories going forward.

■ Pandemic■ Fiscal 2023 Initiatives

For the response to the COVID-19 pandemic since fiscal 2019, according to the New Flu Strains, Etc.

In fiscal 2023 and beyond we have been engaging in business continuity management to increase our

Response Guidelines, we established a COVID-19 response headquarters chaired by the president inresilience to unforeseen contingences that have the potential to disrupt business, including large-scaleorder to work to both prevent infections and promote business activities (ended as of May 7, 2023).

natural disasters, pandemics and cyberattacks.

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Risk Management

Cybersecurity

Sustainability Management
Environment

Efforts toward Cybersecurity Policy Initiatives

Society

Providing a large number of critical infrastructures to society, MHI Group has
established a cybersecurity basic policy and strategy to protect business information(including intellectual property, technical information, sales information, personal
information, etc.) and maintain secure operation. Recognizing cybersecurity as a criticalrisk, MHI Group regularly monitors it as part of materiality initiatives. Our President andCEO supervises the cybersecurity strategy, and our CTO reports the results of discussion
in the Cybersecurity Committee in a timely manner to the Executive Committee and
Board of Directors.

>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity> Efforts toward Cybersecurity

IT Security Management System

ComplianceCEO

Compliance

Anti-corruption

Compliance

Anti-trust

Consult

ReportCybersecurity Committee*1

Compliance Security Export Control
Compliance Tax Transparency

Data Section

Cybersecurity Promotion System
CTO
Information System Officer

Information System Officer must establish
IT Security Manager to promote IT Security.

Division heads*2
Information System Manager
Group Company President and CEO
Information System Manager could
establish per the managerial unit
IT Security Manager who takes
charge of IT Security services.

Information System Manager*1 Established August 8, 2023 (For details, refer to Corporate Governance – Activities of Committees)*2 Division Head: The Head of domain, and the Head of segment. The Head of Digital Innovation HQ for the corporate division.
Corporate Governance ▶ Activities of Committees P.108

Based on the policy and strategy, a cybersecurity program has been implemented
under the control of the CTO to minimize the risks of cyber incidents. Cybersecurity
governance, incident response, and education and training are maintained andperformed under this program. At the same time, MHI Group is contributing to establish
a global cybersecurity framework.

< Cybersecurity Governance>
MHI Group has defined its internal cybersecurity standard according to the NIST-CSF*3
providing a defense-in-depth mechanism as well as threat detection and prevention bytracking and remedying cybersecurity risks utilizing multiple external intelligence
services and other resources. Emergency responses are taken without hesitation whensigns of a security risk are found.
To maintain and improve our cybersecurity, MHI keeps abreast of the latest
cybersecurity intelligence through such measures as vulnerability testing and collection/
analysis of threat information. Meanwhile, MHI seeks to raise security awareness of
employees by providing education and training, and also performs periodic selfassessments and internal audits. Furthermore, we are revising standards based on MHIGroup’s compliance and issues by referring to the state of formulation and revision ofguidelines by governments and organizations such as the Cybersecurity Management
Guidelines*4. For the industrial control system of our products and services, MHI Grouphas built a framework that controls cybersecurity risk and will work with business
partners to upgrade the cybersecurity capabilities and capacity of our products andservices on a regular basis. By driving development of next-generation cybersecurity
solutions, MHI will help to build a safe, secure society.
*3 National Institute of Standards and Technology Cybersecurity Framework*4 Published by the Ministry of Economy, Trade and Industry of Japan in December 2016.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Risk Management

Cybersecurity

Sustainability Management
Environment
Society>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity> Efforts toward Cybersecurity< Response to Cybersecurity-Related Incidents >In the event of a cybersecurity incident, a CSIRT (Computer Security Incident ResponseTeam) immediately reacts to the incidents, handles analysis and examination of theincidents, recovers systems, and carries out further preventive measures. The incidents
are reported to the authorities and stakeholders as needed, including concerned
government agencies. Serious incidents are internally reported to directors, andmeasures are taken in accordance with our crisis management system to swiftly
recover according to business continuity planning. Due to the increased frequency ofransomware attacks requiring swifter management decisions and communication, we
confirm and revise the response capabilities and issues of organizations in an
emergency through incident response drills.

Compliance< Cybersecurity Education>

Compliance Anti-corruption

MHI Group regularly provides cybersecurity education and training to all employees as
warranted by their respective roles in the aim of maintaining and improving theircybersecurity literacy. MHI aims to also cultivate engineers capable of both safety- andsecurity-minded product and service development.

Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency

Data Section< Contributing to the Establishment of a Global Cybersecurity Framework>
Through participation in the Study Group for Industrial Cybersecurity*1, the Charter ofTrust*2, promotion of the Declaration of Cyber Security Management 2.0 (announced in
October 2022), and other cybersecurity initiatives, MHI Group is contributing to theestablishment of a global cybersecurity framework.
*1 An initiative by the Ministry of Economy, Trade and Industry to examine industrial cybersecurity measures. MHI joined thisinitiative in December 2017.
*2 An initiative by private corporations to build trust in cybersecurity. MHI participated in this initiative in April 2019.

115

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Compliance

Sustainability Management
Environment

Basic Approach Policy

Society

As a global company, MHI Group employs tens of thousands of individuals from different
backgrounds, nationalities, and cultures. This diversity of talent and perspectives is oneof our greatest assets. With recognizing the diverse backgrounds of our employees, it isimportant to work together and to promote our business under a common corporate
culture. To this end, we expanded the MHI Compliance Guidelines established in 2021 toformulate the MHI Group Global Code of Conduct in May 2015. This code prescribes
Groupwide norms for MHI Group employees to help them determine which action to take.
Moreover, in September 2017, we formulated our Compliance Promotion Global>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management

Policy, clarifying basic matters and rules related to compliance promotion, such as theorganizational framework, roles, and administration standards that each Group
company should follow. Along with the MHI Group Global Code of Conduct, by clarifying
our common code of conduct and basic rules that must be complied with throughout theGroup, we are working to strengthen internal controls and enhance the level ofcompliance throughout the entire Group.
MHI Group Global Code Conduct
https://www.mhi.com/jp/company/aboutmhi/policy/conduct.html

Risk Management Cybersecurity
Compliance> Basic Approach/Promotion System> Compliance

Compliance Anti-corruption

Promotion System System■ Compliance Promotion System (as of April 1, 2023)

President and CEO

Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency

Head of Corporate Departments
Domain CEO Segment headCompliance Committee
Chief executive (chairperson): GC
Members: Senior General Managers/General Managers/Managers of Corporate Departments, andGeneral Managers of Administration Departments of Business Domains and Segments ;a total of 26 members
Number of meetings: 2 (FY2022)
Functions: Promote compliance at MHI Group
Secretariat: Management Audit Department

Committee activities
The Compliance Committee meets twice a year to draw
Groupwide compliance promotion plans and confirm
progress on them in order to ensure the Company
complies with applicable laws and promote fair andhonest business practices.

Data Section
Departmental Compliance Committee
Whistleblowing Hotlines
All managers

All employees

Overseas regional headquarters company
Regional Audit & Compliance Officers (RAO)

Departmental Compliance Liaison ConferenceGroup Companies
Appoint Compliance Managers and conduct compliance measures at the respective company in line with directions from administrative departments of MHI■ Role of the Board of Directors

The MHI Board of Directors oversees important compliance-related cases of the Group, including status of compliance with the MHI Group Global Code of Conduct, by confirming thestatus on compliance promotion, compliance risks management, and the occurrence of compliance-related incidents by being reported of the operation on internal control systems aswell as the execution of roles and duties of the General Counsel.

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MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Compliance

Sustainability Management
Environment
Society>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance> Basic Approach/Promotion System> Compliance

Compliance Anti-corruption
Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency

Data Section■ Whistle-blowing system■ Employee awareness-raising system

We have a whistleblowing hotline, which is available to all employees, including those ofGroup companies, and whistleblowing hotline, which is overseen by external lawyers. In
addition to Group employees, any related external parties, including business partners, canutilize these hotlines to report concerns on compliance-related issues, including corruption,(such as bribery) and harassment. Information on how to report can be found on the MHIGroup Portal and other sources. We also have systems which accept reports in thelanguages spoken at our major business locations, including English, Chinese, and Thai.
The Compliance Committee Secretariat promptly investigates and responds appropriately
to all reports made to these hotlines. Information on how to report is contained in the MHIGroup Portal accessible by all employees and in bulletins published in-house. With theoperation of the hotlines, protection of the rights afforded to informants, including
confidentiality, were set out in the 2007 Company regulations entitled Compliance
Promotion Regulations. These regulations state that the whistleblower’s name will not bereleased without his/her consent, and that the whistleblower will not be placed at any
disadvantage because of the information he/she has reported. In conjunction with making
employees aware of the existence of the hotline, we have established regulations for theprotection of whistleblowers, including their anonymity. We also make employees aware ofthese regulations and thoroughly enforce them.

MHI Group has established a system to raise compliance awareness in each and every
employee and carries out various initiatives to this end.

Whistleblowing system mechanism■ Response to unjust demands made by anti-social forces

Whistleblower(including officers, employees, related parties, and retirees)■E-mailDedicated external website(Inquiries received fromexternal computers,
smartphones, and cell phones
24 hours a day, 365 day a year)

Postal mail■■Website for internal use only

(Inquiries received from internal
computer 24 hours, 365 days)■

Internal post, postal mailPhone

MHI compliance whistleblower desk
Main whistleblower reception operations connected to a
dedicated external provider
MHI Management Audit Department

Whistleblower reception operations
contracted to dedicated external
provider (law office)

The Compliance Office, MHI also handles whistleblower reports

Strict confidentiality is maintained
allowing people to use their real name orremain anonymous

Strict confidentiality is maintained
allowing people to use their real name orremain anonymous

Department in charge at MHI

Report survey results

Report survey results

MHI external whistleblower
contact desk

• Compliance training
Since 2003 we have held discussion-based training every year at the workplace level,
themed on compliance cases that could arise on-site. In addition, and in order to keep raisingawareness of compliance, we are conducting e-learning and training programs for MHI andGroup employees in Japan and overseas on anti-trust laws, anti-bribery, and export-related
laws and regulations. Furthermore, we have created a compliance guidebook for employees
engaging in technical and skilled jobs at MHI and Group companies in Japan, and we arepromoting face-to-face training at each worksite.
• Compliance awareness survey
Since fiscal 2004, MHI has been conducting a yearly compliance awareness survey. Since fiscal
2013, MHI had expanded this survey to all employees of the Group, in combination with its
e-learning compliance training. In fiscal 2015, we checked the degree of recognition andawareness of the MHI Group Global Code of Conduct, formulated that year, which has led togreater awareness of compliance among employees and consideration of measures to ensure
thorough compliance promotion. Through these surveys, we are able to check the efficacy of
existing measures, such as the MHI Group Global Code of Conduct, while keeping our complianceefforts consistent and thorough.
Compliance ▶ P.117

MHI Group, in its Global Code of Conduct, clearly states that it will respond resolutely toanti-social forces (organized crime groups, mafia organizations, terrorists, drug
syndicates and other organizations, groups or individuals engaged in unlawful activities
or who cause damage to the corporate image of the Group) and that it will not respondto unjust demands made by them. It is our basic policy to cut off all relationships with
anti-social forces. Our head office has a management office that deals with anti-social
forces, and through coordination with related departments, the police, lawyers andother external specialized organizations, the Company addresses incidents involving
anti-social forces at the organizational level.
In addition, regarding information related to anti-social forces, MHI obtains relevant
information from the police and auxiliary organizations to prepare for unexpected
situations, and coordinates with outside specialists, including the police and lawyers,
in order to cut off relations with anti-social forces.

117

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Compliance

Sustainability Management
Environment

Compliance Results

Society■ Compliance training■ Reporting on breaches

E-learning training is held every year on the MHI Group Global Code of Conduct, a set ofnorms shared throughout MHI Group, to work to raise awareness of the code in eachGroup employee throughout the world.

There were 36 compliance violations among the compliance whistleblowing reports,
including on corruption (such as bribery), in fiscal 2022. Among them, we took corrective
action on 66 cases. There was no significant breach last year, with no related fines or
penalties as a result.

Number of people taking compliance training

Number of whistle-blowing reports>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance> Basic Approach/Promotion System> Compliance

Compliance Anti-corruption
Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency(Unit: people)(Unit: cases)

100,000

150

88,10090,30080,00082,00080,000100

60,00040,000

139

44

36

12
13

2

83

69

2019

2020

2021

2022

(FY)

0

2019

2020

Labor and the work environment* Coverage: MHI Group

Consultations and opinions

Data Section* Coverage: MHI Group

Pick Up

3
12 5

50

20,0000140

Number of people taking e-learningon compliance promotion
FY202280,000Approx.

144
128

19

45

26

8

1
6

20

68

75

2021

2022

Overall discipline and breaches of manners
Other

4

Transaction-related laws

(FY)

118

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Compliance

Anti-corruption

Sustainability Management
Environment

Anti-corruption Policy Policy

Society

MHI maintains a policy prohibiting conduct that leads to any form of corruption, and as asignatory company of the UN Global Compact since 2004, we have worked todisseminate and practice the ten principles contained within the four domains of theCompact, including anti-corruption. MHI strives for fairness in its global commercial
transactions by strictly complying with the anti-bribery laws of all countries, including
Japan’s Unfair Competition Prevention Act which prohibits the giving of illicit benefits toforeign public officials.

>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management

Scope of policy
application

MHI Group(Reference) MHI Group Global Code of Conduct
https://www.mhi.com/jp/company/aboutmhi/policy/conduct.html

Relationship with
politics

In the MHI Group Global Code of Conduct we prohibit employees fromproviding or offering company money or other resources for politicalactivities without prior approval from the Legal Department.
In addition, the advance approval of the Legal Department is required whenengaging in activities that could be recognized as lobbying activities.

Risk Management Cybersecurity
Compliance

System for Preventing Corruption System

Compliance Anti-corruption

In 2005, MHI established the Guidelines for the Prevention of Bribery Involving Foreign
Civil Servants to define rules of conduct based on the Unfair Competition Prevention
Act. In addition, we issued the Anti-Bribery Rules and Anti-Bribery Procedural
Guidelines based on these guidelines in February 2012 in order to respond to theenactment of the British Bribery Act 2010 of July 2011 and strengthened regulations invarious countries. MHI also set forth screening procedures for engaging with trading
companies and distributors.
Furthermore, through the MHI Group Global Code of Conduct, established in May
2015, we are thoroughly engaged in preventing bribery toward all Group directors andemployees. In September 2016, we also issued the Guidance for the Prevention ofBribery of Foreign Public Officials, an interpretation of related legislation and internal
rules, and we strive to comply with the rules and the Global Code of Conduct. A global
policy, formulated in September 2017, stipulates MHI Group companies to monitor> Anti-corruption Policy/
System for Preventing Corruption/
Total Donations and Contributions> Employee Training

Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency

Data Section

Total Donations and Contributions Results
Total Donations and Contributions

Amount Recipient

Political contributions: ¥33 million

Donate to: The People’s Political Association

whether measures to prevent bribery are being appropriately managed and dealt with if
needed. Moreover, to evaluate and improve the MHI Group’s system for preventing
bribery, we appointed an external expert and carried out a bribery risk-assessment in2017. Based on that assessment, we revised our rules on preventing bribery in 2018.
Since then, we have extracted a region where the bribery risk is high and regularly
performed a bribery risk-assessment with the support of external experts. In Southeast
Asia, where corruption risk is particularly high, we created an anti-corruption e-learning
program in 2019 to educate local employees. Moreover, we conducted audits in Asia andother regions to ascertain the status of fraud risk management at high-risk projectsites. Furthermore, we annually provide various anti-corruption training in person andonline. We have established an effective system and made it a rule to report majorcompliance violations, like corruption, and status on such violations and preventive
measures to the Board of Directors.

119

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Compliance

Anti-corruption

Sustainability Management
Environment

Employee Training Initiatives

Society

Since fiscal 2014, we have promoted anti-bribery education across MHI and Group
companies in Japan and overseas. Since fiscal 2015, we have conducted training to
make every employee in MHI Group worldwide aware of the MHI Group Global Code of
Conduct, which includes prohibition of bribery.
Since fiscal 2014, MHI and its Group companies worldwide have steadily conductede-learning education to prevent bribery, mainly for manager-level employees.
Approximately 4,700 employees took the course in 2022 for a cumulative total of around>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance
Compliance Anti-corruption> Anti-corruption Policy/
System for Preventing Corruption/
Total Donations and Contributions> Employee Training

Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency

Data Section

27,000 participants. In fiscal 2022, we conducted an e-learning course on preventing
bribery for all employees capable of accessing the Company’s e-learning courses, and a
total of around 19,100 employees took the course.
In addition, in 2022, group training on bribery prevention was held at three sites inJapan with around 100 employees attending. Thus far approximately 1,900 employees intotal have taken this training.

120

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Compliance

Anti-trust

Sustainability Management
Environment

Anti-trust Policy Policy

Society

MHI has worked to prevent the violation of anti-trust laws through messages from top
management and through the use of rules and manuals such as the Code of Conduct
Pertaining to Communication/Contact with Competitors. In May 2015, we published theMHI Group Global Code of Conduct and thoroughly ensured that all executive officers
and employees throughout MHI Group are aware that anti-competitive conduct isstrictly forbidden.

>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance
Compliance Anti-corruption
Compliance Anti-trust> Anti-trust Policy/Employee Training

Compliance Security Export Control
Compliance Tax Transparency

Data Section

MHI Group
Coverage(Reference) MHI Group Global Code of Conduct
https://www.mhi.com/jp/company/aboutmhi/policy/conduct.html

Employee Training Initiatives
MHI entered into a plea agreement with the U.S. Department of Justice concerning the
U.S. anti-trust laws in 2013, in connection with the sales of compressors andcondensers for automotive air-conditioning systems. In response to this, we havecontinued every effort to raise compliance awareness and to prevent its recurrence.
Specifically, in order to ensure thorough compliance throughout the whole MHI Group,
we have reinforced compliance training by various means including educational videos,
lectures by lawyers, and e-learning programs.
In addition, since fiscal 2015 we have conducted training to make every employee inthe MHI Group worldwide aware of the MHI Group Global Code of Conduct, which

includes compliance with competition laws. Since fiscal 2014, MHI and its Group
companies worldwide have steadily conducted e-learning education to comply with
anti-trust laws, mainly for manager-level employees. Approximately 1,400 employees
took these e-learning courses in fiscal 2021, and approximately 21,550 employees intotal have taken these courses so far. In 2021, group training on compliance with
anti-trust laws was held at three sites in Japan including online, approximately 100
employees took this training, and approximately 1,850 employees in total have taken
this training so far. We also provide group training on bidding on government projects
for the employees of divisions and Group companies working on public procurements.

121

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Compliance

Security Export Control

Sustainability Management
Environment

Export Control Policy Policy

Society

From the perspective of maintaining international peace and safety, the export andtransfer of products, services, technologies or information that could be used in thedevelopment or manufacture of weapons of mass destruction or conventional weapons
are managed under an international security trade control framework.
MHI Group also strives to conduct thorough monitoring by performing assessments
and transaction screenings, including confirmation of the country or region ofdestination, use, and customer when exporting commodities or providing technologies
overseas and acquiring the necessary export licenses and permissions prior to export.
Through the MHI Group Global Code of Conduct, established in May 2015, we have

>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity

conducted awareness training of export control to all MHI Group executives andemployees. Furthermore, through the Global Policy on Export-Related Laws andRegulations Compliance, released in October 2017, we have set fundamental standards
and rules in connection with the proper implementation of Export Controls that eachGroup company is expected to follow.
MHI Group
Coverage(Reference) MHI Group Global Code of Conduct
https://www.mhi.com/jp/company/aboutmhi/policy/conduct.html

Compliance
Compliance Anti-corruption
Compliance Anti-trust
Compliance Security Export Control> Export Control Policy/Employee Training

Compliance Tax Transparency

Data Section

Employee Training Initiatives
We are making steady progress in providing education, including face-to-face educationand e-learning, focused on export controls throughout the whole MHI Group. We haveconducted e-learning on export control for MHI and Group companies in Japan since
fiscal 2007 with approximately 100 people taking these courses in fiscal 2022, and a
total of approximately 56,000 people taking them on cumulative basis. We have also
introduced e-learning focused on classifications checks since fiscal 2017, approximately
200 people took this course in fiscal 2022, and a total of approximately 9,000 people
have taken the course so far. Since fiscal 2019, we have conducted e-learning training
on the export control of technology at MHI and Group companies in Japan, in whichapproximately 28,400 employees participated in fiscal 2022, and approximately 82,800
employees in total have participated so far. Since fiscal 2016, we have been conducting
e-learning on export control for people at overseas Group companies at the
management level, approximately 4,500 people took these classes in fiscal 2022,
and approximately 15,700 people have completed these classes so far.
Furthermore, since fiscal 2015 we have made steady progress in providing
education for all employees of MHI and its Group companies in Japan and overseas tofurther familiarize themselves with the MHI Group Global Code of Conduct, including
export control.

122

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Compliance

Tax Transparency

Sustainability Management
Environment

Tax-law Compliance Policy Policy

Society

MHI Group complies with the tax laws and related regulations of the countries where we
operate, respecting the spirit of law of each country, and in international trade strictly
observes international taxation rules, such as tax treaties, the OECD Transfer Pricing
Guidelines, and the BEPS Action Plan. In this way we declare and pay taxes in an
appropriate manner as a corporate group with global operations.

>GovernanceCorporate GovernanceRisk Management Business risk management
Risk Management Business Continuity Management
Risk Management Cybersecurity
Compliance
Compliance Anti-corruption
Compliance Anti-trust
Compliance Security Export Control
Compliance Tax Transparency> Tax-law Compliance Policy

Data Section

For just, fair and highly transparent handling of taxes, we work to raise awareness of
tax-law compliance in Group employees and make efforts to disclose information andcommunicate well with tax authorities worldwide so they will correctly understand ouroperations and build a good and healthy relationship with us.

123

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Sustainability Management
Environment
Society
Governance>Data Section

Data Section

Environment
Society
Governance
Third-party Assurance

124 Environment
124

Environmental Management/
Climate Change

129

Water Risk

130

Waste/Pollution

131 Society131

Human Rights

132

Diversity, Equity, and Inclusion

134

Human Resources Development

135

Talent Attraction and Retention

137

Occupational Safety and Health139

Product Safety/Innovation

140

Supply Chain Management/
Social Contribution Activity

142 Governance
142

Compliance

143 Third-party Assurance* To heighten the reliability of data, we have received assurance from an independent third party. The data most recently assured is noted with a ✓.

124

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Environment

Sustainability Management
Environment

Environmental Management

Society■ Environmental Targets

Governance< Progress on The Fifth Environmental Targets >2019>Data Section
Environment> Environmental Management/
Climate Change> Water Risk
> Waste/Pollution

Society

2020

2021

2022

ResultVs. FY2014

ResultVs. FY2014

ResultVs. FY2014

ResultVs. FY2014

KPI (1) Reduction in CO2 emissions/Amount of sales

15.1

22.2% Reduction

13.2

32.8% Reduction

12.3

37.8% Reduction

10.5*

1

44.4% Reduction

KPI (2) Reduction in water usage/Amount of sales

0.184

11.4% Reduction

0.183

11.4% Reduction

0.16

22.8% Reduction

0.143*2

30.9% Reduction

KPI (3) Reduction in waste generation/Amount of sales

1.82

16.1% Reduction

1.91

11.9% Reduction

1.71

21.1% Reduction

1.53*3

29.4% Reduction

Coverage: *1 MHI and 163 domestic and overseas Group companies*2 MHI and 143 domestic and overseas Group companies*3 MHI and 116 domestic and overseas Group companies

Governance
Third-party Assurance

Climate Change■ GHG Emissions< Direct GHG emissions (Scope 1>
Unit

2020

2021

2022

2023

151

172

137

132

102

118

82 ✓

CH4

0.062

0.073

0.180

N 2O

1.32

0.261

0.086

0.637

0.219

0.621

PFCs

0

0

0

SFCs

0.291

0.574

0.403

NF3

0

0

0

GHG Emissions*1(Third-party Assurance)*2

kt-CO2Other indirect GHG emissions*3

HFCs

kt-CO2*1 Coverage: MHI and domestic and overseas Group companies (156 companies in FY2020, 158 companies in FY2021, 163 companies in FY2022 and 156 companies in FY2023 [accounting for 98% of net sales])*2 Coverage: MHI and domestic Group companies (14 companies in FY2019, 15 companies in FY2020, 12 companies in FY2021, and 11 companies in FY2022)*3 Coverage: MHI*4 Under review to obtain assurance from an independent third party

*4

125

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Environment

Sustainability Management
Environment
Society
Governance>Data Section< Indirect GHG emissions (Scope 2)>
Location-based*1, 3(Third-party Assurance)*2, 3Market-based*1, 4(Third-party Assurance)*2, 4

Unit

kt-CO2

kt-CO2

2020

2021

2022

2023

495

419

429

430

̶

̶

247 ✓

*5

399

382

378

402

247

225

224 ✓

*5

Environment> Environmental Management/
Climate Change> Water Risk
> Waste/Pollution

Society
Governance
Third-party Assurance*1 Coverage: MHI and domestic and overseas Group companies (156 companies in FY2020, 158 companies in FY2021, 165 companies in FY2022 and 156 companies in FY2023 [accounting for 98% of net sales])*2 Coverage: MHI and domestic Group companies (14 companies in FY2019, 15 companies in FY2020, 12 companies in FY2021, 11 companies in FY2022)*3 For Japan, the national average of emission factors by electric power company (Ministry of the Environment, Ministry of Economy, Trade and Industry) is applied. For others, International Energy Agency (IEA) IEA Emission Factors average coefficients by country
are applied.
*4 For Japan, adjusted emission factors by electric power company (Ministry of the Environment, Ministry of Economy, Trade and Industry) are applied. For others, IEA Emission Factors of the International Energy Agency (IEA) are applied when it is difficult to obtainemission factors provided by electricity suppliers.
*5 Under review to obtain assurance from an independent third party

126

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Environment

Sustainability Management
Environment
Society
Governance>Data Section
Environment> Environmental Management/
Climate Change> Water Risk
> Waste/Pollution

Society
Governance
Third-party Assurance<Other indirect GHG emissions (Scope 3)>
Category

1. Purchased goods and services*
2. Capital goods*

Unit

1

2020

4. Upstream transportation and distribution*

4,907

7,371

390

385

477

650

71

68

70

70

2

11

5. Waste generated in operations

19*

6. Business travel*2

1037

7. Employee commuting*2<

8. Upstream leased assets Included in Scopes 1 and 2
9. Downstream transportation and distribution*
10. Processing of sold products*
11. Use of sold products*

36

12. End-of-life treatment of sold products*
13. Downstream leased assets*
14. Franchises*

4

15. Investments*

3

Totals in the aggregate scope

4

3

3

>

2023

4,819

kt-CO 2

1

2022

4,935

2

3. Fuel- and energy-related activities (not included in Scopes 1 or 2)*

2021

13
17*

5

17

14

14* ✓

18*7

10

10

10

36

35

36

5

5

̶

̶

̶

̶

―

̶

N/A

N/A

N/A

N/A

̶

N/A

N/A

N/A

N/A

kt-CO 2715,000

1,573,000

1,245,000

859,000

̶

N/A

N/A

N/A

N/A

̶

N/A

N/A

N/A

N/A

̶

N/A

N/A

N/A

N/A

̶

N/A

N/A

N/A

N/A

kt-CO 2

720,474

1,578,348

1,250,530

867,169* Figures may fluctuate due to revision of the scope and method of calculation*1 Coverage: MHI and certain domestic Group companies*2 Coverage: MHI and domestic and overseas Group companies*3 Excluded from calculation due to lack of reference data
*4 Excluded from calculation due to being outside company business*5 Coverage: MHI and domestic Group companies (11 companies in FY2020, 9 companies in FY2021, and 8 companies in FY2022)*6 Coverage: MHI and domestic and overseas Group companies. Emissions throughout the life cycle*7 Under review to obtain assurance from an independent third party

127

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Environment

Sustainability Management
Environment
Society
Governance>Data Section
Environment> Environmental Management/
Climate Change> Water Risk
> Waste/Pollution

Society
Governance
Third-party Assurance■ Energy Consumption< Energy consumption >

Unit

2020

2021

2022

2023

Total energy consumption

GWh

1,718

1,783

1,746

1,723

Renewable energy consumption

GWh

116

99

109

128

Proportion of renewable energy consumption tototal energy consumption

%

6.7

5.5

6.3

7.4

Coverage: MHI and domestic and overseas Group companies (156 companies in FY2020, 158 companies in FY2021, 163 companies in FY2022, and 156 companies in FY2023 [accounting for 98% of net sales])< Electricity purchased>
Electricity purchased

Unit

2019

2020

2021

2022

GWh

1,120

982

954

976

Coverage: MHI and domestic and overseas Group companies (157 companies in FY2019, 156 companies in FY2020, 158 companies in FY2021, and 163 companies in FY2022 [accounting for 98% of net sales])128

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Environment

Sustainability Management
Environment
Society
Governance>Data Section
Environment> Environmental Management/
Climate Change> Water Risk
> Waste/Pollution■ Energy Use<Energy use results>

Unit

2019

2020

2021

2022

Purchased electricity*1

GWh

699

598

539

568 ✓

Heavy fuel oil A

ML

3

3

4

3✓

Heavy fuel oil B/C

kL

20

0

0

0✓

Gasoline

ML

0.3

0.2

0.3

0.2 ✓

Gas oil/Diesel oil

ML

3

4

2

2✓

Kerosene

ML

4

2

2

0.5 ✓

Jet fuel

ML

0.7

0.7

0.8

1✓

Society

Steam coal

kt

0.1

0

0

0.002 ✓

GovernanceCity gas

MNm3

36

29

38

24 ✓

Third-party Assurance

LPG

kt

4

4

3

2✓

LNG

kt

0.1

0.7

1

1✓

Natural gas (excluding LNG)

k (m3)

0

0

0.9

0.7 ✓

Petroleum hydrocarbon gas

k (m3)

0.1

0.1

1.5

3.3 ✓

Hot water

GJ

21

20

21

21 ✓

Cold water

TJ

7

6

12

12 ✓

Steam

TJ

4

4

7

6✓

Coverage: MHI and domestic Group companies (14 companies in FY2019, 15 companies in FY2020, 12 companies in FY2021, and 11 companies in FY2022)*1 Including renewable energy

129

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Environment

Sustainability Management
Environment

Water Risk

Society■ Water Usage

Governance>Data Section
Environment> Environmental Management/
Climate Change> Water Risk
> Waste/Pollution

Society
Governance
Third-party Assurance<Water resource input>

Unit

Water intake*1

ten thousand m3(Third-party Assurance)*2

2020

2021

2022

2023

961
557

684

677

650

506

476 ✓

*7

430
161

274

276

268

146

139 ✓

*7

250

233

231

224

229

215

193 ✓

*7

279

175

169

157

167

145

144 ✓

*7

2

2

1

1

Breakdown of water intake
Tap water(Third-party Assurance)*2
Industrial water(Third-party Assurance)*

ten thousand m3

2

Groundwater(Third-party Assurance)*2Rivers, lakes, etc.
ten thousand m3

18

16

18

14

%

6

2.4

4

3.5

<Water Discharge>

Unit

2020

2021

2022

2023

Water Discharge*4

ten thousand m3

825

477

356

358

ten thousand m3

653

313

191

192

173

164

165

166

2020

2021

2022

2023

788

521

512

484

Reused water usage*3
Ratio of reused water usage*

3

Breakdown of water discharge
Sewerage, etc.
Public waters (rivers, lakes)*

5<Water Usage>

Unit

Water Usage*

ten thousand m

1, 6

3

*1 Coverage: MHI and domestic and overseas Group companies (139 companies in FY2020, 144 companies in FY2021, 143 companies in FY2022, and 141 companies in FY2023 [accounting for 95% of net sales])*2 Coverage: MHI and domestic Group companies (14 companies in FY2020, 11 companies in FY2021, and 10 companies in FY2022)*3 Coverage: MHI*4 Coverage: MHI and domestic and overseas Group companies (61 companies in FY2020, 79 companies in FY2021, 83 companies in FY2022, and 70 companies in FY2023)*5 Amount of wastewater purified in-house and returned to rivers, lakes, etc.
*6 Water usage = Water intake (tap water + industrial water + groundwater + rivers, lakes, etc.) - Wastewater purified in-house and returned to rivers, lakes and marshes*7 Under review to obtain assurance from an independent third party

130

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Environment

Sustainability Management
Environment

Waste/Pollution

Society■ Waste Generation

Governance>Data Section
Environment> Environmental Management/
Climate Change> Water Risk
> Waste/Pollution<Waste generation* >
1

Unit

2020

2021

137

Waste generation*2

37*(Third-party Assurance)
thousand t

2022

144
4

30 *

2023

133
5

26 ✓*

129
5

*7

106

112

101

101

Total disposal amount*2, 3

̶

32

32

28

Landfill waste disposal amount*2

11

9

10

9

2020

2021

2022

2023

9

11

11

10

̶

6

7✓

*7

̶

4

5

5

̶

7

6

5

Recycling amount*2

Society
Governance
Third-party Assurance<Hazardous waste generation>

Unit

Waste generation*2(Third-party Assurance)*6
thousand t
Recycling amount*2
Total disposal amount*

2, 3*1 Including valuables*2 Coverage: MHI and domestic and overseas Group companies (119 companies in FY2020 and FY2021, 116 companies in FY2022, and 116 companies in FY2023 [accounting for 91% of net sales])*3 Total disposal amount = waste generation (total) minus recycling amount*4 Coverage: MHI and domestic Group companies (15 companies in FY2020). Excluding valuables, including hazardous waste*5 Coverage: MHI and domestic Group companies (12 companies in FY2021 and 11 companies in FY2022). Excluding valuables and hazardous waste*6 Coverage: MHI and domestic Group companies (12 companies in FY2021 and 11 companies in FY2022). Hazardous waste as defined by Japanese law related to waste*7 Under review to obtain assurance from an independent third party■ Volatile Organic Compound (VOC) Emissions<Volatile organic compound (VOC) emissions>

Unit

Emissions (total)
TolueneXyleneEthylbenzene

t

2020

2021

2022

2023

741

558

585

597

312

237

227

242

274

217

229

237

155

104

129

118

Coverage: MHI and domestic Group companies (25 companies in FY2020, 27 companies in FY2021, 25 companies in FY2022, and 24 companies in FY2023 [accounting for 89% of net sales])131

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment

Human Rights

Society■ Freedom of Association and Job Security

Governance>Data Section
Environment
Society> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

Unit

Employees covered by collective bargaining
agreements
Number of labor union-management
consultations*5

2021

2022

2023

%

91*1

92.6*293.3*390.1*4

Times

42

47

24

28

2020

2021

2022

2023

0

0

0

0

0

0

0

0

Coverage: *1 MHI and seven domestic Group companies (accounting for 43.3%of all consolidated employees)*2 MHI and seven major domestic Group companies (accounting for 43.3%of all consolidated employees)*3 MHI and 15 domestic Group companies (accounting for 46.0% of all consolidated employees)*4 MHI and 22 domestic Group companies (accounting for 48.5% of all consolidated employees)*5 MHI

Unit

Number of employees laid off
Layoffs

Governance
Third-party Assurance

Employee ratio

2020

Coverage: MHI

Number of labor unionmanagement consultations

Times

132

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment

Diversity, Equity, and Inclusion

Society■ Data Related to Diversity and Equal Opportunity

Governance>Data Section

2020

2021

2022

2023

77,991

76,85977,697

Consolidated total

79,974Non-consolidated total
Number of males
Percentage of males
Number of females
Percentage of females%%

14,553
13,076
89.9
1477
10.1

22,755
20,571
90.4
2184
9.6

21,634
19,637
90.8
1997
9.2

22,53820,461
90.8
2,027
9.2

Average length of service and age of employees

Average length of service
Average age
Average length of service for men
Average length of service for women

year
age
year
year

18.2
40.8
18.3
17.9

18.5
41.6
18.6
17.8

18.8
42.1
19.0
17.8

19.0
42.4
19.1
17.9

Executive*1

Total
Number of males
Percentage of males
Number of females
Percentage of females

%

61
58
95.1
3
4.9

51
49
96.1
2
3.9

51
49
96.1
2
3.9

48
45
93.7
3
6.3

5,498
5,336
97.1
162
2.9

5,455
5,298
97.1
157
2.9

5,766
5,608
97.3
158
2.7

Number of employees

Environment
Society> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

Unit

Governance
Third-party Assurance

%

Total
Number of males
Percentage of males
Number of females
Percentage of females

%
%

3,396
3,273
96.4
123
3.6

Differently abled people employment rate

Hiring rate

%

2.24

2.34

2.45

2.55

Number of employees rehired over retirement age(60 years)

Total

608

695

682

875

Percentage of contract or temporary employees

Ratio

9.7

8.3

8.9

9.3

1.02

1.05

1.05

1.06

1

1

1

1

1.01

1.03

1.03

1.03

Manager*2

Managers (base salary only)
Wage equality*2, 3Managers (base salary +bonuses and other incentives)
Non-managers%

Male
FemaleMale
FemaleMale
FemaleCoverage: MHI*1 Including executive officers*2 Managers are defined as section managers and above*3 The lowest of the average wages for men and women in each tier is 1.00, and the difference is displayed as an index

ー
ー
ー

1

1

1

1

1.03
1

1.05
1

1.05
1

1.04
1

133

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment■ Data Related to Diversity and Equal Opportunity

Unit

2020

2021

2022

2023

Society

All employees

̶

13.4

13.8

13.5

GovernanceNon-managers

̶

15.3

16.1

15.9

̶

4.7 (4.5)

4.6 (4.5)

4.5 (4.4)̶

3.4 (3.7)

3.4 (3.6)

3.3 (3.5)

̶

4.5

4.2

4.3

̶

4.4 (4.1)

4.2 (4.0)

3.9 (3.7)>Data Section

Ratio of Females in Each Position

Managers*

1

General managers*

Environment

Executives*

Society

Profit center managers*> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

Governance
Third-party Assurance

%

1

2
1,3

Coverage: MHI Group (accounting for 89.8% of consolidated employees in FY2021, 91.3% in FY2022 and 90.0% in FY2023)*1 Aggregate figures including higher positions in parentheses*2 Including executive officers*3 Profit center is defined as a non-corporate organization

134

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment

Human Resources Development

Society■ Chief Engineer and Master Technician

Governance>Data Section
Environment

Number of newly certified Chief Engineer andMaster Technician

2019

2020

2021

2022

Chief Engineer

3

3

4

6

Master Technician

2

3

3

4

Coverage: MHI

Society> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

Governance■ Training Hours and Training Costs

Total training hours
Training hours

Scope of calculation (MHI and domestic
Group companies)

2020

2021

2022

2023

Hours

317,769

703,521766,933

972,284

Training hours per employee

Hours/
Employees

13.1

13.6

16.0

20.6

Total costs

Thousandsof yen477,354

1,326,638

1,881,621

1,778,634

Training costs per employee

Yen/
Employees

19,63325,70839,22837,681

24,31351,60547,96647,203

30.4

66.2

62.4

60.8

Training costs

Third-party Assurance

Unit

Number of eligible employees
Employee coverage ratio

%

135

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment

Talent Attraction and Retention

Society
Governance

Unit

Governance
Third-party Assurance

2022

2023

Multidimensional performanceappraisal

61.4

62.9

62.9

62.7

38.6

37.1

37.1

37.3

346

361

478

737

306

316

437

641

%

88.4

87.5

91.4

87

40

45

41

96

%

11.6

12.5

8.6

13

47

54

123

196

44

42

112

168

%

93.6

77.8

91.1

85.7

3

12

11

28

%

6.4

22.2

8.9

14.3

98.9

98.8

97.8

98.0

―

―

98.6

98.0

―

―

97.7

98.0

%

Total
Male

Environment> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

2021Management by objectives
Employee performance appraisal*1>Data Section
Society2020

New hired*

Percentage of males

1

FemalePercentage of females
All employees
Male
Number of mid-career hires*1

Percentage of males
FemalePercentage of females

Percentage of open positions filled
through internal recruitment*1

Total
Male

%

FemaleTotal
MaleTotal turnover rate*2%

FemaleTotal
Voluntary turnover rate*

2

Male

%

FemaleTotal
Length of service*1

Male
Female

year

3

4.1

5.6

4.6

2.8

3.8

5.5

4.6

4.8

7

6.1

4.9

1.0

1.8

1.6

1.4

0.8

1.5

1.5

1.3

2.5

4.4

2.9

2.5

18.2

18.5

18.8

19.0

18.3

18.6

19.0

19.1

17.9

17.8

17.8

17.9

*1 Coverage: MHI*2 Coverage: MHI for FY2020 and FY2021, MHI and domestic Group companies for FY2022 and FY2023 (6 companies in FY2022; 22 companies in FY2023 (accounting for 48.5% of consolidated employees))

136

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment■ Employee Engagement

Unit

Society
Governance>Data Section
Environment

Awareness survey (Group)

Percentage of highly engaged employees%(valid response rate)

2020*12021

2022*2

2023

Goal

56

̶

57

̶

Higher than world
average by 2030*3

88

̶

75

̶

*1 Coverage: MHI and 123 domestic and overseas Group companies (accounting for 75% of consolidated employees)*2 Coverage: MHI and 170 domestic and overseas Group companies (accounting for 88% of consolidated employees)*3 World average: 68% (as of FY2022 survey)

Society> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity■ Data on Workstyles and Support for Work-life Balance

Unit

2020

2021

2022

2023

188

245

268

261

88

92

94

70

18.3

24.2

30.0

33.9

93.3

98.9

96.9

94.5

Male

245

348

417

604

Female

269

559

531

538

Number of employees using Child-planning(infertility treatment) leave

1

2

5

3

Number of employees using Family care leave

6

11

9

19

Number of employees using Short-time workfor family care

19

30

38

58

99.8

98.9

99.6

100

97.5

96.9

96.0

*5

74.5

73.7

77.0

81.5

6,501

12,186

12,655

11,723

Number of employees taking
Childcare leave*1
Percentage of employees taking
Childcare leave

Governance
Third-party Assurance
Use of work-life balance
support system

Number of employees using
Short-time work for Childcare

Male
FemaleMale*

Female*Rate of return to work after Childcare leave
Rate of retention after Childcare leave
Achievements regarding
workstyles

2

Annual leave uptake rate
Number of employees working from home*4

3

%

%

%

Coverage: MHI*1 Number of employees on childcare leave*2 Employees on childcare leave, employees giving birth*3 Employees on childcare leave, employees completing pre- and post-natal absence from work now able to take childcare leave*4 Employees using Short-time work for childcare or Short-time work for family care and pregnant employees until July 2019; all employees from August 2019.
*5 Results are currently being compiled.

137

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment

Occupational Safety and HealthSociety■ Data on Occupational Safety and Health

Governance>Data Section
Environment> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

Governance
Third-party Assurance

Goals for reducing industrial
accidents

2020*12021*22022*22023*3

Hours

200,930,240

194,327,660

175,730,576

168,934,525 ✓

0

0

0

0

2

0

1

0

Employees

0

0

0

0✓

Contractors

2

0

1

0✓

Working hours (employees +contractors)

Total working
hours

Number of fatal accidents/
serious accidents

Goal

Number of work-related
fatalities

Society

Unit

Number of industrial accidents

Lost-time industrial accidents
frequency rate*3 (employees +contractors)

ResultNumberof cases

Numberof cases

25

32

28

33 ✓

45

34

25

23 ✓

Goal

̶

̶

0.26

0.33

0.35

Result

̶

0.35

0.34

0.30

0.33 ✓

Manufacturingindustry average

̶

̶

1.31

1.25

1.29

Employees

̶

0.22

0.26

0.23

0.28 ✓

Contractors

̶

0.50

0.47

0.48

0.46 ✓

Employees
Contractors*1 Coverage: MHI and 56 Group companies (accounting for 77.4% of consolidated employees)*2 Coverage: MHI and 56 Group companies (accounting for 77.5% of consolidated employees)*3 Coverage: MHI and 51 Group companies (accounting for 71.1% of consolidated employees)*4 Lost-time industrial accidents frequency rate is the number of casualties due to occupational accidents per 1 million cumulative actual working hours, and represents the frequency of accidents. Number of casualties due to work-related accidents resulting in absenceof one day or more ÷ total number of actual working hours x 1,000,000

138

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment■ Indicators and Results for Health Management Promotion

Goal

Unit

2019

2020

2021

2022

Society

Regular medical examination rate*1

100

%

̶

99.5

99.2

99.5

GovernanceComprehensive medical examination
rate*1over 50%

%

̶

35.0

57.2

59.4

Less than 23%

%

̶

23.7

22.6

22.0

Rate of follow-up attendance at medical
institution after regular medical
examination*1

Compared to the previous year
+10 Points

%

̶

46.6

48.0

50.6

Blood glucose improvement program
participation rate*2

15

%

̶

12.0

9.0

6.9

BMI between18.5 andless than 25

%

̶

63.4

66.1

65.9

Systolic blood pressure of
180mm Hg or higher,
or diastolic blood pressure of
110 mm Hg or higher

%

̶

0.4

0.2

0.4

>Data Section

Health management
promotion

Environment
Society> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

Smoking rate*1

Proper weight maintenance rate*1

Medical examination
data*3

Blood pressure risk rate*1

Governance

Poor diabetes management rate*1

HbA1c of 8.0 or higher

%

̶

0.9

0.5

0.8

Third-party AssuranceStress check examination rate*4

̶

%

̶

97.3

96.0

92.1

Rate of injury and sickness leave (cases)

̶

̶

3.74

3.98

4.61

8.57

Rate of injury and sickness leave (days)

̶

̶

0.82

0.8

0.82

0.91

Occupational illness frequency rate

̶

̶

̶

17.36

20.09

35.8 ✓

Injury and sickness
leave, occupational
illness rate*4*1 MHI and Group company employees whose health is managed by MHI Health Management Department*2 Employees insured by the MHI health-insurance union*3 Excerpt from data submitted to Ministry of Economy, Trade and Industry Health Management Survey*4 Coverage: MHI

139

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment
Society

Product Safety■ Safety Control of Radiation

Unit

Governance>Data Section
Environment

Storage capacity
MHI Nuclear
Development
Corporation

Radioactive waste(solid waste)

Volume of radioactive waste generation
Radiation exposure of employees with radiation-related jobs (average)*1

Society> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

200L drum

Volume of radioactive waste stored

mSv/year

Storage capacity
Mitsubishi Nuclear
Fuel Co., Ltd.

Radioactive waste(solid waste)

200L drum

Volume of radioactive waste stored
Volume of radioactive waste generation

Radiation exposure of employees with radiation-related jobs (average)*1

mSv/year

2019

2020

2021

2022

3,293

3,293

3,293

3,293

2,539

2,555

2,610

2,689

33

16

55

79

0.15

0.02

0.07

0.04

17,053

17,053

17,053

17,053

13,403

14,747

16,108

16,102

2,337

1,344

1,361

–6*2

0

0.01

0.01

0.02

*1 ICRP Recommendations 2017 and related Japanese laws stipulate the dose limit for occupational exposure is 100 mSv per 5 years and 50 mSv per year in effective dose.
*2 Result when the volume of radioactive waste reduced exceeds the volume generated

Governance
Third-party Assurance

Innovation
Unit

2019

2020

2021

2022

Billion Yen

146.8

125.7

113.6

127.4

% of sales

3.6

3.4

2.9

3.0

1,350

1,460

1,460

1,460

2019

2020

2021

2022

24,68325,96825,65425,771

14,66515,081

14,36814,432

4,154

4,494

4,658

4,829

Europe

2,869

3,193

3,259

3,189

China

2,995

3,200

3,369

3,321

R&D expenditure

Employees in R&D positions (round numbers)
Coverage: MHI Group

Unit

Number of patents held(by region) Japan
United States

Coverage: MHI Group

Number of
cases

140

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment

Supply Chain Management

Society
Governance

Number of business partners provided with sustainability and CSR education(total number of participants)

Unit

2020

2021

2022

2023

Companies

701

1,332

1,682

2,521

Unit

2019

2020

2021

2022

>Data Section
Environment
Society> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

GovernanceSocial Contribution Activity■ Social Contribution Activity KPI Items

Focus area (1) Fostering
the next generation

Focus area (2) Local
community contribution

Number of children participating in MHI science
lessons (total attendance) *1

69,779892*2

7,171*2

8,966 ✓*2

6

3

4

3✓

20

10

5

5✓

Employee volunteer applications(participants)

32
(24)

̶*3

̶*3

̶ ✓*3

Number of surveys carried out

8

7

8

8✓

Number of individual motherturtles identified during
egg-laying

35

15

28

27 ✓

Number of individual baby
turtles identified during hatching

̶*4

̶

̶

̶✓

Number of occasions when MHI provided community
support following a natural disaster or similar event*1
Value of donations and support*1

Third-party Assurance

Focus area (3)Environmental
protection

Support for
Tanegashimaloggerhead turtle
protection survey
activities

Millions ofyen*1 Coverage: MHI Group*2 In FY2020, FY2021, and FY2022, the science lesson program was held on a reduced scale due to COVID-19.
*3 In FY2020, FY2021, and FY2022, the recruitment and participation of employee volunteers was discontinued due to COVID-19 and employees instead supported the survey activity of the staff of a local non-profit organization.
*4 No survey was conducted during FY2019 hatching season due mainly to bad weather. In FY2020, FY2021, and FY2022, the survey was cancelled as researchers judged that survey data would be difficult to collect due to the reduced number of eggs and other issues.

141

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Society

Sustainability Management
Environment

Social Contribution Activity

Society
Governance

2020

2021

2022

1,328

1,205

1,060

1,172

101

131

105

101

710

591

554

608

105

71

53

169

Health, medicine and sport

84

53

61

65

Other

328

359

287

229

2019

2020

2021

2022

1,327

1,205

1,060

1,172

355

585

548

588

240

68

48

88

Donations in kind

25

53

18

3

Overheads

707

499

446

493

Social contribution activity cost input(by area)>Data Section

Academic research
Education
Local communities

Environment
Society> Human Rights> Diversity, Equity, and Inclusion> Human Resources Development> Talent Attraction and Retention> Occupational Safety and Health> Product Safety/Innovation> Supply Chain Management/
Social Contribution Activity

2019

Unit

Millionsof yenCoverage: MHI Group

Unit

Type of contribution(by type)

GovernanceCash donations
Contributions of timeThird-party Assurance

Coverage: MHI Group

Millionsof yen

142

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Data Section/Governance

Sustainability Management
Environment

ComplianceSociety■ Compliance

Governance>Data Section

Unit

2019

2020

2021

2022

People88,10090,30082,00080,000

Unit

2019

2020

2021

2022

140

139

128

144

69

83

68

75

13

12

6

20

12

5

8

26

Consultations and opinions

2

3

1

4

Other

44

36

45

19

Number of people taking compliance training (Approx.)
Coverage: MHI Group

Environment
Society
Governance> Compliance

Number of whistle-blowing reports(by type)

Labor and the work environment
Overall discipline and breaches of manners

Third-party Assurance

Transaction-related laws

Coverage: MHI Group

Cases

143

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Third-party Assurance

Sustainability Management
Environment■ Assurance Report on Materiality Disclosures

Society
Governance>Data Section
Environment
Society
Governance
Third-party Assurance

LR Independent Assurance Statement
Relating to Mitsubishi Heavy Industries, Ltd.’s Materiality
disclosureThis Assurance Statement has been prepared for Mitsubishi Heavy Industries, Ltd. in accordance with our contract
but is intended for the readers of this report.

Terms of engagement
Lloyd’s Register Quality Assurance Limited (LR) was commissioned by Mitsubishi Heavy Industries, Ltd. (MHI) to
provide independent assurance on its materiality disclosure identified in 2020 (Released in 14 October 2020,
hereafter (“the report”), against the assurance criteria below to a moderate assurance and at the materiality ofthe professional judgement of the verifier using AA1000 ASSURANCE STANDARD v3 TYPE 1 ASSURANCE –ADHERENCE TO THE ACCOUNTABILITY PRINCIPLES.
Our assurance engagement covered the operations and activities of MHI and its consolidated subsidiaries inJapan and overseas and specifically the following requirement: Verifying conformance with AA1000 ACCOUNTABILITY PRINCIPLES 2018
Our assurance engagement excluded the data and information of MHI’s suppliers, contractors and any thirdparties mentioned in the report.
LR’s responsibility is only to MHI. LR disclaims any liability or responsibility to others as explained in the end
footnote. MHI’s responsibility is for collecting, aggregating, analysing and presenting all the data and information
within the report and for maintaining effective internal controls over the systems from which the report is derived.
Ultimately, the report has been approved by, and remains the responsibility of MHI.

LR’s Opinion
Based on LR’s approach nothing has come to our attention that would cause us to believe that MHI has notconformed with AA1000 ACCOUNTABILITY PRINCIPLES 2018 in all material aspects. The opinion expressed isformed on the basis of a moderate assurance and at the materiality of the professional judgement of the verifier.
Note: The extent of evidence-gathering for a moderate assurance engagement is less than for a high assurance engagement. Moderate
assurance engagements focus on aggregated information rather than physically checking source information at sites. Consequently, the levelof assurance obtained in a moderate assurance engagement is substantially lower than the assurance that would have been obtained had ahigh assurance engagement been performed.

LR’s approach
LR’s assurance engagements are carried out in accordance with AA1000 ASSURANCE STANDARD v3 TYPE 1
ASSURANCE – ADHERENCE TO THE ACCOUNTABILITY PRINCIPLES. The following tasks though were undertaken
as part of the evidence gathering process for this assurance engagement:
 Reviewing MHI’s process for identifying and determining stakeholders to confirm that all the related
stakeholders are captured.
 Assessing MHI’s process for identifying and determining material issues to confirm that the right issues were
included in their Report.
 Reviewing MHI’s approach to stakeholder engagement process to confirm that engagement related to issues
raised by stakeholders is implemented.
 Verifying MHI’s KPI determination process and information disclosure methodologies to confirm thatsustainability performances to impact on environment and social are monitored and disclosed.
 LR did these through interviews with the key people in charge of sustainability and reviewing documents
and associated records. By implementing MHI’s “No Visitor” policy due to the global infection spread of
COVID-19, the interview was executed remotely via Microsoft Teams.
Observations
Further observations and findings, made during the assurance engagement, are:Page 1 of 2Inclusivity:
We are not aware of any key stakeholder groups that have been excluded from MHI’s stakeholder
engagement process. MHI identifies multi stakeholders comprehensively and the top management
expresses commitment for the stakeholders. We believe that future reports should explain further
stakeholder identification process.
Materiality:
We are not aware of any material issues concerning MHI’s sustainability performance that have been
excluded from the report. It should be noted that MHI reviewed and determined the materiality in 2020 toaddress social issues related to sustainability. In this process, MHI identified the material issues inreference to key sustainability initiatives and determined the materiality from the both aspects from MHI
and the stakeholders.
Responsiveness:
MHI has process to capture issues raised by stakeholders and to respond them. MHI has dialogues withintellectuals and various stakeholders frequently. Materiality has been determined through the review ofthe feedback from stakeholders in the materiality revision process in 2020. We believe that future reports
should explain further engagement process with multi stakeholders.
Impact:MHI establishes the system to account and disclose information related to sustainability performance. MHI
discloses the information via integrated reports and ESG data books and has third-party assurance to theindicators interested by stakeholders. MHI proceeds to determine KPI for material indicators based on themateriality reviewed in 2020.

LR’s standards, competence and independence
LR implements and maintains a comprehensive management system that meets accreditation requirements for
ISO 14065 Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use inaccreditation or other forms of recognition and ISO/IEC 17021-1 Conformity assessment – Requirements for bodies
providing audit and certification of management systems – Part 1: Requirements that are at least as demanding as
the requirements of the International Standard on Quality Control 1 and comply with the Code of Ethics forProfessional Accountants issued by the International Ethics Standards Board for Accountants.
LR ensures the selection of appropriately qualified individuals based on their qualifications, training andexperience. The outcome of all verification and certification assessments is then internally reviewed by senior
management to ensure that the approach applied is rigorous and transparent.
LR is the MHI’s certification body for ISO 9001, ISO 14001, ISO 45001. The verification and certification assessments
are the only work undertaken by LR for MHI and as such does not compromise our independence or impartiality.
Dated: 2 March 2021

SignedTakashi Odamura
LR Lead Verifier
On behalf of Lloyd’s Register Quality Assurance Limited
10th Floor, Queen’s Tower A, 2-3-1, Minatomirai, Nishi-ku, Yokohama, JapanLR reference: YKA4005601
Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd’s Register Quality Assurance Limited (LRQA), and their respective
officers, employees or agents are, individually and collectively, referred to in this clause as 'Lloyd's Register'. Lloyd's Register assumes noresponsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in thisdocument or howsoever provided, unless that person has signed a contract with the relevant Lloyd's Register entity for the provision of thisinformation or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.
The English version of this Assurance Statement is the only valid version. Lloyd’s Register Group Limited assumes no responsibility for versions
translated into other languages.
This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety.
Copyright © Lloyd's Register Quality Assurance Limited, 2021. A member of the Lloyd’s Register Group.
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144

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Third-party Assurance

Sustainability Management
Environment■ Environmental Data Independent Assurance ReportSociety
Governance>Data Section
Environment
Society

INDEPENDENT ASSURANCE STATEMENT
To: Mitsubishi Heavy Industries, Ltd.

- report our conclusions to the Directors of MHI.
Assessment Standard

Bureau Veritas Japan Co., Ltd. (Bureau Veritas) has been engaged by Mitsubishi Heavy Industries, Ltd.

We performed our work in accordance with International Standard on Assurance Engagements (ISAE)(MHI) to provide limited assurance over its sustainability information selected by MHI. This Assurance

3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial

Statement applies to the related information included within the scope of work described below.

Information (Effective for assurance reports dated on or after December 15, 2015) issued by theInternational Auditing and Assurance Standards Board.

Selected information

For the greenhouse gas emissions data, we undertook verification in accordance with the requirements

The scope of our work was limited to assurance over the following information (the ‘Selectedof ISO14064-3 (2019): Greenhouse gases - Part 3: Specification with guidance for the verification andInformation’):validation of greenhouse gas statements.

(the ‘DATA BOOK’) for the period of April 1, 2022 through March 31, 2023
1) Greenhouse gas emissions (Scope 1 and Scope 2): CO 2 emissions from energy use2) Energy use

Third-party Assurance

Greenhouse gas
emissions[t-CO2e]obtained; andScope 1

The following environmental performance data included within SUSTAINABILITY DATA BOOK 2023

Governanceaccordance with the Reporting Criteria;- form an independent conclusion based on the assurance procedures performed and evidence

3) Water usage by source4) Waste generation
5) Hazardous waste generation
6) Greenhouse gas emissions (Scope 3 Category 5)
The reporting boundaries are as follows.
1) 2) 4) 5): MHI and MHI Group's 11 companies within Japan (12 companies in total)
Note: The scope of ‘hazardous waste’ was defined by MHI.
3)
: MHI and MHI Group's 10 companies within Japan (11 companies in total)
6): The boundaries defined by MHI

Reporting criteria
The Selected Information included within the DATA BOOK needs to be read and understood together
with the reporting criteria stated in the DATA BOOK.
Limitations and Exclusions
Excluded from the scope of our work is any verification of information relating to:- Activities outside the defined verification period;- Any other information within the DATA BOOK, which is not listed as the ‘Selected Information’.
This limited assurance engagement relies on a risk based selected sample of sustainability data andthe associated limitations that this entails. This independent statement should not be relied upon to
detect all errors, omissions or misstatements that may exist.
Responsibilities
This preparation and presentation of the Selected Information in the DATA BOOK are the sole

Summary of work performed
As part of our independent verification, our work included:
1. Conducting interviews with relevant personnel of MHI;
2. Reviewing the data collection and consolidation processes used to compile Selected
Information, including assessing assumptions made, and the data scope and reporting
boundaries;
3. Reviewing documentary evidence provided by MHI;
4. Reviewing MHI systems for quantitative data aggregation and analysis;
5. Verification of sample of environmental performance data back to source by carrying out threephysical site visits, selected on a risk based bases at the following locations:- Mitsubishi Heavy Industries, Ltd. Kure Works Akitsu Area
- Mitsubishi Heavy Industries, Ltd. Takasago Machinery Works Takasago Plant- Mitsubishi Logisnext Co., Ltd. Azuchi Plant
6. Reperforming a selection of aggregation calculations of the Selected Information;
7. Comparing the Selected Information to the prior year amounts taking into consideration
changes in business activities, acquisitions and disposals.
The procedures performed in a limited assurance engagement vary in nature and timing from, and areless in extent than for, a reasonable assurance engagement.

Scope 2
(location-based)

247,284

Scope 2
(market-based)

223,840

Scope 3(Category 5)

14,455

We performed our verification work on greenhouse gas emissions data in accordance with the

prepared, in all material respects, in accordance with the Reporting Criteria;- It is our opinion that MHI has established appropriate systems for the collection, aggregation
and analysis of quantitative data within the scope of our work.
Statement of Independence, Integrity and Competence
Bureau Veritas is an independent professional services company that specialises in quality,
environmental, health, safety and social accountability with over 190 years history. Its assurance teamhas extensive experience in conducting verification over environmental, social, ethical and health andsafety information, systems and processes.
Bureau Veritas operates Quality Management System which complies with the requirements of globally
recognized quality management standard, and accordingly maintains a comprehensive system of quality
control including documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Bureau Veritas has implemented and applies a Code of Ethics, which meets the requirements of theInternational Federation of Inspections Agencies (IFIA), across the business to ensure that its
employees maintain integrity, objectivity, professional competence and due care, confidentiality,
professional behavior and high ethical standards in their day-to-day business activities.

Bureau Veritas Japan Co., Ltd.
Yokohama, JapanMay 31, 2024

requirements of ISO14064-3(2019).
Verified data in greenhouse gas assertion made by MHI are as follows.

responsibility of the management of MHI.
responsibilities were to:- obtain limited assurance about whether the Selected Information has been prepared in
Ref: BVJ_ 20415599

MHI for the period of April 1, 2022 through March 31, 2023

- Nothing has come to our attention to indicate that the Selected Information has not been properly

than the assurance that would have been obtained had a reasonable assurance engagement been

Verified greenhouse gas emissions

Emissions of category 5 within the boundaries defined by

On the basis of our methodology and the activities described above:

Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower
performed.

Boundary
CO2 emissions from energy use through business operationsof MHI and MHI Group’s 11 companies within Japan (12companies in total) for the period of April 1, 2022 throughMarch 31, 2023

Conclusion

Bureau Veritas was not involved in the drafting of the DATA BOOK or of the Reporting Criteria. Our

Ref: BVJ_ 20415599

82,004

Ref: BVJ_ 20415599

145

MITSUBISHI HEAVY INDUSTRIES GROUPSUSTAINABILITY DATABOOK 2023​

Third-party Assurance

Sustainability Management
Environment■ Social Data Independent Assurance ReportSociety
Governance>Data Section
Environment
Society
Governance
Third-party Assurance

LRQA Independent Assurance Statement

Relating to Mitsubishi Heavy Industries, Ltd.’s Social data within its
SUSTAINABILITY DATABOOK 2024 for the fiscal year 2023
This Assurance Statement has been prepared for Mitsubishi Heavy Industries, Ltd. in accordance with ourcontract.

Terms of Engagement

LRQA’s Approach

LRQA’s assurance engagements are carried out in accordance with ISAE3000(revised). The following tasks
were undertaken as part of the evidence gathering process for this assurance engagement:• Auditing the Company’s data management systems to confirm that there were no significant errors,omissions or misstatements in the report. We did this by reviewing the effectiveness of data handlingprocedures, instructions and systems, including those for internal verification;• Interviewing with those key people responsible for compiling the data and drafting the report;• Sampling datasets and traced activity data back to aggregated levels; and• Verifying the historical data and records for the fiscal year 2023.

LRQA was commissioned by Mitsubishi Heavy Industries, Ltd. (hereby “the Company”) to provide independent
assurance on its social data within its SUSTAINABILITY DATABOOK 2024 (“the report”) for the fiscal year
2023, that is 2023/04/01 - 2024/03/31, against the assurance criteria below to a limited level of assurance andprofessional judgement of the verifier using “ISAE3000(Revised)”.

Observations

Our assurance engagement covered Mitsubishi Heavy Industries, Ltd.’s and its consolidated subsidiaries’
operations and activities in Japan1 and specifically the following requirements:• Verifying conformance with the Company’s reporting methodologies for the selected datasets:• Evaluating the accuracy and reliability of data for only the selected indicators listed below:- Occupational fatalities of employees- Occupational fatalities of contractors- Lost-worktime injuries frequency rate of employees- Lost-worktime injuries frequency rate of contractors- Number of lost-worktime injuries of employees- Number of lost-worktime injuries of contractors- Total working hours of employees and contractors

LRQA’s Standards, Competence and Independence
LRQA implements and maintains a comprehensive management system that meets accreditation
requirements for ISO/IEC 17021-1 Conformity assessment – Requirements for bodies providing audit andcertification of management systems – Part1: Requirements that are at least as demanding as therequirements of the International Standard on Quality Control 1 and comply with the Code of Ethics forProfessional Accountants issued by the International Ethics Standards Board for Accountants.

Our assurance engagement excluded the data and information of the Company’s suppliers, contractors andany third-parties mentioned in the report.
LRQA’s responsibility is only to the Company. LRQA disclaims any liability or responsibility to others as
explained in the end footnote. The Company’s responsibility is for collecting, aggregating, analysing andpresenting all the data and information within the Report and for maintaining effective internal controls overthe systems from which the Report is derived. Ultimately, the Report has been approved by, and remains the
responsibility of the Company.

LRQA’s Opinion

Based on LRQA’s approach nothing has come to our attention that would cause us to believe that the Company
has not, in all material respects:• Met the requirements of the criteria listed above• Disclosed accurate and reliable social data and information
The opinion expressed is formed on the basis of a limited level of assurance2 and at the materiality of theprofessional judgement of the verifier.
1

The boundary consists of 50 entities in Japan and the Company.

2

The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance
engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in alimited assurance engagement is lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed.

Page 1 of 2

Further observation made during the assurance engagement, is:Company is expected to continuously improve their data management systems and maintain the accuracy
and comprehensiveness of their data.

LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training andexperience. The outcome of all verification and certification assessments is then internally reviewed by senior
management to ensure that the approach applied is rigorous and transparent.
The verification is the only work undertaken by LRQA for the Company and as such does not compromise our
independence or impartiality.
SignedDated: 05/07/2024

Shotaro Kawabata
LRQA Lead Verifier
On behalf of LRQA Limited
10th Floor, Queen's Tower A, 2-3-1 Minatomirai, Nishi-ku, Yokohama, JAPANLRQA reference: YKA4005601
LRQA, its affiliates and subsidiaries, and their respective officers, employees or agents are, individually and collectively, referred to inthis clause as 'LRQA'. LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense causedby reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with therelevant LRQA entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on theterms and conditions set out in that contract.
The English version of this Assurance Statement is the only valid version. LRQA assumes no responsibility for versions translated into
other languages.
This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety.
Copyright © LRQA, 2024.

Page 2 of 2

Mitsubishi Heavy Industries, Ltd.

Address all inquiries about this report to:
Sustainability Relations Department
Marunouchi-Nijubashi Bldg., 2-3 Marunouchi 3-chome, Chiyoda-ku, Tokyo, 100-8332, Japan
Published in December 2023 (Partially revised in July 2024)