Mitsubishi Logisnext Co., Ltd.

Society

Environment

Mitsubishi Logisnext
Governance

SDGs Report 2021

About Mitsubishi Logisnext /Message from Management

About
Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileCommitted to business practices that contribute to the sustainable development of the planet and society at large
Continuing to strengthen our sustainability management
At the Mitsubishi Logisnext Group, we have long committed to managing
our business with a strong focus on sustainability in keeping with our
corporate philosophy of “moving the world forward as the leading
provider of innovative logistics and material handling solutions.” In fiscal
2020, in order to clearly demonstrate our management posture both
inside and outside the company, we formulated policies for supporting
the objectives of the sustainable development goals (SDGs, p. 2).
Through this initiative, we identified 14 material issues which we areprioritizing as part of our effort to contribute to the emergence of a
Takashi Kubo
society committed to sustainable development (p. 3).
President
Furthermore, in fiscal 2021, we established our Sustainability
Council to oversee our Group’s initiatives to achieve each material
objective, and we are working to develop a promotion system (p. 3) to enhance the effectivenessof these initiatives. In addition, our medium-term management plan “Logisnext SolutionS 2023,”
which is currently being implemented, advocates that, as one of our critical challenges, we
contribute to the achievement of the SDGs through our business operations.

About Mitsubishi Logisnext

As a comprehensive manufacturer oflogistics equipment, we provide forklift
trucks, logistics systems, and port cargohandling systems. We support thelogistics industry around the world by
providing our customers with optimallogistics solutions in both hardware andsoftware form.

The challenge of carbon neutrality
The movement to achieve carbon neutrality is accelerating around the world against the backdropof climate change.
We regard this trend not as a risk but as an opportunity to expand our business; as a result,
we intend to promote proactive initiatives in support of this trend. In December 2021, we clarified
our policy on carbon neutrality and adopted specific targets for the Group as a whole: to reduce
CO2 emissions by 40% relative to fiscal 2017 levels by 2030; and to achieve Net Zero by 2040.
Going forward, our entire Group will continue to take on the challenge of meeting these goals
while fully exploiting the technologies and knowledge we have cultivated.
As a comprehensive manufacturer of logistics equipment, we provide a variety of hardware
and software logistics solutions that have already contributed to energy conservation in a variety
of settings. I am confident, however, that our Group has the potential to contribute even more
solutions to environmental and social challenges.
For example, prior to the merger of our four member companies, each company had been developing
its own electric forklift technology. Nippon Yusoki, in particular, had accumulated a substantial amount oftechnology as a Japanese pioneer in this field. By pursuing further business integration and integrating the
proprietary technologies and unique expertise of each member company, we aim to develop as a corporategroup with a strong presence that can make a substantial contribution to global sustainability.

FX
engine-powered forklift
ALESIS
electric forklift
PLATTER Autolaser-guided AGF

Editorial policy:

We have issued this report to clarify to all stakeholders our efforts to support the objectives of
the SDGs.
Target period:
This report spans the period from April 1, 2020, to October 31, 2021. Some articles arecontinuations of previously published material.
Organizational scope: This report covers Mitsubishi Logisnext Co., Ltd., but some articles make reference to othergroup companies.

01

AboutMitsubishi Logisnext

Policies

Message fromManagement

Policies

Environmental
IssuesPrinciples

SocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfilePolicies related to the SDGs

Corporate Philosophy
Moving the world forward as theleading provider of innovative logistics
and material handling solutions

As a comprehensive manufacturer of logistics equipment that supports logistics
operations around the world, we support the objectives of the SDGs advocatedby the United Nations, offer solutions to societal issues through our business
operations, and contribute to the sustainable development of the planet andsociety at large while helping to build a better future.

Management Policy
We always behave
ethically as a good
corporate citizen.

Environment

QualityCompliance

SafetyWe preserve the global
environment and contribute toongoing development in local
communities.

We provide world-classquality — it is a mindset andexpectation that guides allof our business processes
and customer interactions.

Technology

Customers

We promise the safety ofpeople and our products is thefoundation of our success.

Employees

We respect theindividuality, creativity,and initiative of all
employees, and empower
them to deliver on our
promises to our customers
and partners.

We form long-lasting partnerships withour customers by helping them solve
their material handling challenges with
our innovative products and services.

We apply leading edge technology to solve
the next generation of logistics challenges.

1. Conservation of the global environment

We will strive to protect the environment with a global perspective.

2. Development of local communities

We will establish good relationships with stakeholders, offer solutions to societal issues through ourbusiness operations, and contribute to the continuous development of local communities.

3. Human resource development

We will respect the human rights, individuality, and creativity of each and every employee, provide arewarding work environment, support personal growth, and develop personnel who are capable ofsupporting our global society.

4. Strengthening corporate governance

We will implement an effective corporate governance system to ensure fair and honest businesspractices while fulfilling our social commitments as a good corporate citizen.

Medium-term management plan

Logisnext SolutionS 2023
We have formulated a medium-term management plan titled “Logisnext SolutionS 2023” that embodies three basic strategies in keeping with our corporate philosophy.
Extending from fiscal 2021 through fiscal 2023, this initiative represents the first Medium-term management plan we have implemented since our merger.
We have therefore positioned it as an extremely important platform on which our company can take further steps forward.

1

Build up Business Resilience
Strengthen the existing businessIn addition to increasing both sales and profits in all territories, wewill strengthen our ability to withstand major economic fluctuations
by reorganizing our businesses and reducing fixed costs.

Improve variable and fixed cost

In addition to reducing procurement and transportation costs, wewill promote comprehensive cost reductions by producing partsin-house and re-examining labor costs.

2

Accelerate Growth Strategy
Expand our solutions portfolio to meetthe growing market requirements

In addition to providing manned forklifts, we have expanded ourofferings to include solutions to our customers’ logistics challenges interms of both hardware and software. This approach responds tospecific needs in the areas of automation and unmanned vehicles,with a special focus on AGVs/AGFs.

Improve our profitability via enhancements
to the distribution networks

We are maximizing the benefits of consolidation by devising regional
strategies for Japan, the Americas, Europe, China, and Asia and the Pacific.

Grow market share with an expanded product andservice portfolio

Through collaboration with Mitsubishi Heavy Industries, Ltd., we have
implemented rapid development of products and technologies.

3

Further develop our global andregional branding strategies
Utilize “Logisnext” brand and improve
brand awareness for all of our brands

Taking advantage of the strengths of our category brands*, we
aim to raise awareness of Logisnext as a comprehensive
manufacturer of logistics solutions.

Create a new corporate culture under “Logisnext”

We will strengthen the sense of unity and the organizational
strength of the entire company by focusing on the developmentof our Group’s human resources. As the driving force behind oursustainable growth, this approach will lead to the strengthening of
our corporate culture. We intend to contribute to the achievementof the SDGs while enhancing our corporate value and contributing
to the emergence of a society committed to sustainability.
* Mitsubishi Forklift Trucks, Nichiyu Electric Forklift Trucks, Nichiyu Logistics Systems, TCM
Forklift Trucks, TCM Specialized Transport Vehicles, and UniCarriers Forklift Trucks

02

AboutMitsubishi Logisnext

Policies

Message fromManagement

Policies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileContributing to Achievement of the SDGs

Identifying Material Issues

Establishment of Our Sustainability
SystemThe sustainable development goals (SDGs) are international
development goals that have been identified for achievementby the target year of 2030. These are universal goals that
apply equally to all nations.
They include 17 goals comprising 169 targets for asustainable, diverse and inclusive world.
Through our business operations, we are helping toachieve the objectives of the SDGs.

We have identified 14 material issues in consideration of theirrelevance to our business and their influence on and interest
to our stakeholders.
For each material issue, we have set key performanceindicators (KPIs) by which we can evaluate and publicize our
performance at the end of each fiscal year. However, we will
also introduce initiatives during the period that are difficult toevaluate with KPIs, such as R&D and product-related initiatives.

Our Priority SDGs

Issues of Material Interest to Our GroupIn order to implement our corporate philosophy of “moving
the world forward as the leading provider of innovative
logistics and material handling solutions,” we believe it isnecessary to achieve growth while simultaneously contributing
resolutions to various environmental and societal issues.
In December 2021, we established our Sustainability
Council with the aim of enabling management to oversee
sustainability initiatives for the entire company, including
challenges that span different departments, which will lead tohighly effective initiatives through intensive discussions.
The main roles of the Sustainability Council are to
identify material issues, approve policies and responses tothese issues, formulate company-wide sustainability initiatives,
implement and adhere to initiatives, and report to the Boardof Directors. To supplement the three regular meetings heldeach year, extraordinary meetings are held as necessary.
Under the Sustainability Council, subcommittees are
established to handle efforts to address each material issue.
Each subcommittee has one individual in a position of
responsibility as well as a responsible organization, and therelevant departments serve as the membership.
Policies and targets are adopted for each material issue
and each subcommittee, and relevant initiatives are promoted.
(A diagram of this system is presented on the next page.)

Environmental issues

We have identified eight material items of particular relevance to our

Stakeholder interest and impact

circumstances.

Societal issues

Providing environmentfriendly products
Reducing environmental
load
Recycling /Remanufacturing(Product recycling)
Corporate governanceCompliance
Risk management

Governance issues

Pursuit of customer
satisfaction
Ensuring product quality
and safety
Supply chain management
Ensuring diversity ofhuman resources
Human resource
development
Job satisfaction andlabor productivity
Contributing to society
and local communities
Occupational health andsafetyRelevance to our business03

AboutMitsubishi Logisnext

Policies

Message fromManagement

Environmental
Issues

Policies

SocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileDiagram of the Sustainability System

Board of Directors
reports

directs and advises

Sustainability Council
Secretariat

deliberates, reports and follows-up

Subcommittees
Policies

Environmental Preservation• Responding toclimate change

Material Issues

Development of Local Communities• Providing
environment-friendly
products• Reducing
environmental load
• Recycling /Remanufacturing• Ensuring productquality and safety• Pursuit of customer satisfaction• Supply chain
management

Field of Activity

Climate change

Environmental
initiatives / EMS

Quality assurance /QMS

Product
development

Sales / Service(Japan)Sales / Service(Outside Japan)

SCM

Subcommittee

Carbon Neutrality
Committee

Environmental
Management
Committee

Quality
Subcommittee

Product Development
Subcommittee

Domestic
Sales and Marketing
Subcommittee

Overseas BusinessSubcommittee

CSR Procurement
Subcommittee

Digital Transformation
IR
External
Communication Public
Relations& Dialogue& SR

Development of
Human Resources

Strengthening ofCorporate Governance• Ensuring diversityof human resources• Human resource
development• Job satisfaction andlabor productivity• Occupational
health and safety• Corporate
governance• Compliance• Risk management

Ensuring personnel diversity /Improving thehuman resource development /sophistication ofenvironmental improvement corporate governance
Human Resource
Development
Subcommittee

Digital Transformation Subcommittee (Digital Transformation Team [Executive in charge: president; Organization in charge: Corporate Strategy and Planning Office])
Investor Relations Subcommittee (Executive in charge: CFO; Organization in charge: Corporate Finance Planning Division)
Public Relations Subcommittee (Executive in charge: Head of Administration Headquarters; Organization in charge: General Affairs Division)

Corporate Governance
Subcommittee04

AboutMitsubishi Logisnext

ESG

E

Message fromManagement

Policies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileEnvironmental Issues
Targeting Carbon Neutrality by 2040

The need to achieve carbon-neutrality is a global challenge. Our corporate philosophy is “to move the world forward
as the leading provider of innovative logistics and material handling solutions.” Consequently, preserving the global
environment, as the very foundation of this philosophy, remains our top priority.
As a member of the Mitsubishi Heavy Industries Group, which boasts a proven track record in decarbonization, we
believe it is our mission to take the lead in implementing countermeasures to fight climate change. In order to achievecarbon neutrality by 2040, the goal of the Mitsubishi Heavy Industries Group, we will contribute to thedecarbonization, electrification, and enhancement of intelligence across all its businesses, products, and services.

Initiatives and Systems for Achieving
the Goals
Our initiatives to reduce CO2 emissions associated with ourbusiness operations include the following:
1. increasing productivity;
2. promoting energy efficiency; and3. introducing innovative decarbonization technologies fromwithin the Mitsubishi Heavy Industries Group.
We will develop the following innovations forincorporation into our products and services in order to help
reduce our customers’ CO2 emissions:
1. energy-efficient electric forklifts;
2. energy-efficient cargo-handling equipment that contributes
to the decarbonization of port logistics; and3. logistics solutions that improve logistics efficiency.

CO2 Emissions Reduction Targets
Target year

Our reduction of CO2 emissions
from business activities

2030(relative to fiscal 2017)

2040

Net Zero- 40%

We intend to reduce our global Scope 1 and 2* CO2emissions to Net Zero by 2040. As an interim target, we will
reduce emissions by 40% by 2030 (relative to fiscal 2017
levels). We are taking this approach to reduce CO2 emissions
from our plants and offices in light of our Group’s productioncentered business operations.
In addition, we are contributing to our customers’ efforts
to reduce their CO2 emissions through our products andservices. The Mitsubishi Heavy Industries Group has declaredthat the entire Group will reduce CO2 emissions throughout
its value chain to Net Zero by 2040. We will also take steps toachieve this goal by providing appropriate products andservices in the logistics segment.
* Under the GHG Protocol, Scope 1 and 2 emissions are the international standard for
calculating and reporting greenhouse gas (GHG) emissions.

In addition, as forests are believed to play a key role inachieving carbon neutrality, we will consider additional
initiatives to address the need for forest conservation andafforestation.
In order to promote such initiatives, we have establisheda Carbon Neutrality Committee under the guidance of thepresident as a climate change subcommittee under the
Sustainability Council. Through such efforts, we are working
together with our Environmental Management Committee topromote these initiatives with greater urgency.

05

ESG Initiatives of Mitsubishi Logisnext

Focused on Developing
Environment-friendly Products
Developing decarbonized and low-carbon products
To contribute to the emergence of a decarbonized society, we
are working to improve electricity costs (through reduced
energy consumption) and are expanding our lineup of electric
forklifts as replacements for our mid-size engine-powered
forklifts. This effort is intended to popularize our clean andenergy-efficient electric forklifts.
Our new ALESIS electric forklift, launched in 2019, offers
expanded capacities of up to 3.5 metric tons as of 2020. Thismodel is now being offered in markets outside Japan.
The series incorporates an environment-friendly Ecomode that contributes to extended operation. By offering
reduced power consumption, this innovation contributes toeconomical and eco-friendly operation.

New ALESIS electric forklift

About
Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
IssuesIn the European market, where electric forklifts are
becoming increasingly popular, we offer the new EDiA XL,a model that boasts best-in-class electricity costs while
delivering power and performance sufficient to offer
an alternative to engine-powered forklifts.
At the same time, in order to meet the needs ofcustomers who use engine forklifts in a variety of environments,
we continue to develop engine-powered forklifts that comply
with emissions regulations that are becoming increasingly
stringent every year in all our territories. Our new FD seriesengine-powered forklift, introduced in 2020, is equipped witha urea selective catalytic reduction (SCR) system that significantly
reduces the nitrogen oxides present in exhaust gas, thusachieving both higher power and lower emissions.

New FD series engine-powered forklift

SocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileDecarbonization of cargo-handling equipment inports and coastal facilities
In the market for carbon-neutral logistics solutions, we havelaunched an initiative with Mitsubishi Heavy Industries toreduce CO2 emissions at ports. We are thus contributing to
the carbon neutrality of ports by developing new models ofcargo-handling equipment and facilitating the use of hydrogenfuel cells for existing equipment with the goal of achieving
zero carbon emissions in the future.
Our new rubber-tired gantry crane, scheduled for
introduction in the fall of 2022, will meet the emissions
regulations (4th standard value) of Japan’s Ministry of Land,
Infrastructure, Transport and Tourism by reducing the engine
displacement and output of diesel generators through optimaland efficient combustion control while maintaining the capacityof storage batteries used in our conventional hybrid models.
As a result, emissions of CO2, nitrogen oxides, and blacksmoke particulate matter have been reduced, while fuelRubber-tired gantry crane06

ESG Initiatives of Mitsubishi Logisnext

efficiency is expected to be improved by more than 15%
compared with the previous model. In addition, the newmodel is being developed with specifications that enable thediesel generator to be replaced with a solid polymer fuel cell.
It is predicted that, in the near future, solid polymer fuel cells
capable of competing at an equivalent level with diesel
generators will be available on the market, opening the door
to zero CO2 emissions once existing generators are replacedwith these fuel cells.
In addition, we have developed the first prototype of a fuelcell forklift with a load capacity of 1.75 metric tons. Market
testing for practical applications is currently under way.

About
Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileOur “3R” initiatives

Reducing Environmental Load
Establishment of our special environmental groups
Initiatives to reducing environmental load — such as waste
reduction, energy efficiency, and the development of products
contributing to environmental improvement — entail manycross-organizational activities. Without the entire company, orat least multiple departments, collaborating on these initiatives,
tangible progress will be difficult to achieve. Toward this end,
we have established four groups — the Environmental
Preservation Group, Environmental Products Group, Energy
Efficiency Group, and Logistics and Packing Group — to pushforward initiatives in support of the implementation plan of
our environmental management system (EMS).

Company-wide initiatives of our special environmentalgroupsWe are engaged in a wide variety of environmental impact
reduction efforts through the activities of each of these groups.
As part of the 3R initiatives concerned with reducing,reusing, and recycling, all our departments are committed toensuring that equipment that is surplus to our needs within
the company is put to good use elsewhere. We continue to workin the belief that such efforts will reduce the environmental
impact of waste incineration and the disposal of waste inlandfills while contributing to the emergence of a society
committed to recycling and the effective use of resources.

Investments targeting environmental improvements
We have gradually upgraded the mercury and fluorescentlighting in our plants to LED fixtures that offer higher
luminous efficiency. Moreover, in fiscal 2020, we reduced
CO2 emissions by about 65 metric tons by upgrading tocompressors offering greater energy efficiency.

The Environmental Preservation Group is engaged mainly ininitiatives intend to raise awareness about the environment,such as waste reduction and recycling, as well as community
support activities.
The Environmental Products Group focuses on thedevelopment of environment-friendly products and green
procurement, such as promoting energy efficiency and the
management of chemical substances contained in our products.
The Energy Efficiency Group is concerned with enhancing
the efficiency of our consumption of energy, water, and raw
materials and actively promotes eco-friendly production.
The Logistics & Packing Group is concerned withimproving transportation efficiency and reducing the use of
packaging materials.
Fuel cell-powered forklift
Plant upgraded with new LED lighting fixtures

07

ESG Initiatives of Mitsubishi Logisnext

About
Mitsubishi Logisnext

Message fromManagement

Policies

Participating in community cleanup campaigns
We participate in regular community cleanup and beautification
campaigns as part of our community support initiatives.
Because reeds are useful for the conservation of thewater environment, ecosystem, and landscape of Lake Biwa,
we participate in the Lake Iba-naiko Yoshi Reed-Harvesting
project as volunteers in natural conservation to promote thehealthy development of the lake. Moreover, we take part in
the Oiso Cleanup Initiative by helping to remove accumulatedmud, sand, weeds, and other debris while protecting thewaterways adjacent to the Azuchi Plant, working hand-in-handwith local residents on a range of tasks. Also, in collaboration
with the local community association adjacent to the Shiga
Plant, we took part in weeding of the Sammyo River.
The COVID-19 pandemic has put a temporary halt tosome of these cleaning and beautification efforts, but we willcontinue to engage in local activities with an emphasis on
getting involved with local communities.

Environmental
IssuesSocietalIssuesGovernance
IssuesCorporate
ProfileSales of used vehicles

Recycling / Remanufacturing
Utilizing recycled raw materials
As one measure for reducing the environmental impact ofmarine transportation, we have switched to reinforced
cardboard packaging. This also improves the efficiency ofcontainer loading.

With regard to trade-in vehicles and off-lease and rental
vehicles, we collaborate with other companies to promote thereuse of resources and are improving the image of recycled
products by selling and renting out used vehicles.
In addition, instead of utilizing vehicle appraisers who
rely on a wealth of work experience, we are creating a systemthat employs artificial intelligence to assess used vehicles.
These systems use vehicle data as well as past price data. We
continue to improve our operational efficiency as we work toestablish a system that does not depend on human expertise.

Wood packing used before reinforced cardboard

Weeding along the Sammyo River

Summary of
Activities

Packing with reinforced cardboard

Used forklift sporting an original paint design08ESG Initiatives of Mitsubishi Logisnext

About
Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Environmental Policy and Environmental Action Guidelines

Environmental Policy

We are committed to protecting the global environment from an international perspective
and contributing to the ongoing development of local communities.
Environmental Action Guidelines
Mitsubishi Logisnext Co., Ltd. and its affiliates are committed to proactively implementing the following action guidelines through our business operations, which
encompass the development, manufacture, sales, and servicing of forklifts and other industrial vehicles, distribution systems, and logistics products. In keepingwith our Environmental Policy, we aim to reduce our environmental impact and improve society on a sustainable basis as an essential part of our business.

1. We recognize that preserving the environment and maintaining harmony with the global ecosystem are among the mostimportant management issues, and we shall continue to systematically promote environmental initiatives through our business
operations.
2. We shall strive to control environmental pollution and promote environmental preservation activities by accurately monitoring
the environment impact of our business operations.
3. We shall strictly comply with all environmental laws, regulations, and ordinances as well as all agreements and otherrequirements to which we are party; adopt voluntary standards; and takes steps to preserve the environment.
4. In acknowledging the environmental impact of our business operations, we shall adopt the following important initiatives.
(1) We shall manufacture eco-friendly products.
(2) We shall reduce, recycle, and properly dispose of all industrial waste resulting from our business operations.
(3) We shall become more efficient and reduce our consumption of raw materials, fuel, and energy, and we shall promote environmental
preservation in our manufacturing activities.
(4) We shall improve the transportation efficiency of our product and parts distribution, reduce the use of packing materials, and decrease ourenvironmental load.

5. We shall implement in-house training sessions and awareness campaigns to inform all our employees and trading partners of ourenvironmental action guidelines and shall disclose them to the public.
In order to implement the above action guidelines, we shall establish environmental goals and targets within our technical and economic
scope and periodically review our progress. We shall remain committed to continuously improving our environmental management
system and environmental performance.

Corporate
Profile09

AboutMitsubishi Logisnext

ESG Initiatives of Mitsubishi Logisnext

Environmental Initiatives

Kyoto Plant

Shiga Plant

Message fromManagement

CO2 emissions

The amounts produced by the Kyoto and Azuchi plants have been on adeclining trend as a result of increased telecommuting, but the Shiga Plant isshowing a year-on-year increase due to the growing number of employees
working at the plant. Extensive sorting rules are in place, and we are focusedon reducing the amount of waste in cooperation with individual workplaces.

Although additional air conditioners have been installed at the Shiga Plant,
CO2 emissions at all three plants decreased year-on-year due to a decline inproduction.

2017

2018

2019

2020

0

(FY)

Measured item

Unit

pH

2016

2018

2017

2020

2019

(FY)

Biochemical
oxygen demand
(BOD)

mg/L

5

Less than 2.0

Zinc

mg/L

mg/L

Chemical oxygen
demand (COD)

mg/L

5,000

50

0

2016

2017

2018

2019

2020

0

(FY)

2016

2018

2017

2020

2019

(FY)

Input
Unit

Kyoto
Plant

Shiga
Plant

Azuchi
Plant

Electricity

1,000 kWh

5,467

8,468

4,414

City Gas

1,000 m3

442

1,204

529

Bunker A

kL

—

44

192

Kerosene

kL

—

21

—

Diesel oil

kL

36

38

—

Gasoline

kL

16

28

—

LPG

m3

—

5,767

—

Water

1,000 m3

22

74

12

Item

Mitsubishi Logisnext Co., Ltd.

Item

OutputCO2
Chemical
substances(emissions
under PRTR)

Generalwaste
Industrial
waste
Chemical
substances(transferredunder PRTR)

Unit
Tonnes

Kyoto
Plant

Shiga
Plant

Azuchi
Plant

3,068

6,295

3,287

Tonnes

34

79.2

8.7

Tonnes13

32

8

TonnesTonnes

560

37

794

43.7

Azuchi
Plant

Observed
value

Kyoto
Plant

10

Less than 0.1

Xyleneppm

1Less than 0.1

Shiga
Plant

Tolueneppm

10

Less than 1

Xyleneppm

1Less than 0.1

Azuchi
Plant

Tolueneppm

10

Less than 1

Xyleneppm

1Less than 0.1

2

Less than 0.2

6.5 – 8.0

7.0

30

3.0

4.0

30

Suspended solids
(SS)

mg/L

Nitrogen

mg/L

12

0.9

Phosphorus

mg/L

1.2

0.1

N-hexane extracts

mg/L

Noise
We undertake periodic noise measurements at the site boundary.

Kyoto
Plant
Shiga
Plant

Measured item
Noise

Noise

0.6

70

3.0

Less than 0.5

6 – 8.5

7.1

Biochemical
oxygen demand
(BOD)

mg/L

40

7

Chemical oxygen
demand (COD)

mg/L

40

7.6

Suspended solids
(SS)

mg/L

90

6.3

Nitrogen

mg/L

12

1.2

Phosphorus

mg/L

1

Less than 0.1

Azuchi
Plant

Regulated
value

Observedvalue

8:00 – 18:00

dB

70

64

18:00 – 22:00

dB

60

51

8:00 – 18:00

dB

65

65

18:00 – 22:00

dB

60

–

8:00 – 18:00

dB

70

53

18:00 – 22:00

dB

70

49

Atmosphere
We periodically undertake measurement of the concentrations of particulates
in the atmosphere around warm air heating units. We also measure forhazardous substances as stipulated under local ordinances.

Plant

Measurement dates: January 20, 2021 (Kyoto Plant); March 2, 2021 (Shiga Plant);
March 5, 2021 (Azuchi Plant)

Noise

Unit

Measurement dates: March 22, 2021 (Kyoto Plant); January 18, 2021 (Shiga Plant);
November 13, 2020 (Azuchi Plant)

Kyoto
Plant

Shiga
Plant

Azuchi
Plant

Unit

Regulated
value

Observed
value

Particulate

g/m3N

0.10

0.001

NOx

ppm

150

59

g/m3N

–

–

Measured item
Warm air
heating unit
(city gas)

Cogeneration Particulate
power
SOx
generationequipment
NOx

m3N/h

–

–

volppm

600

330

Particulate

g/m3N

0.10

–

SOx

m3N/h

–

–

NOx

ppm

150

32

Particulate

g/m3N

0.20

0.019

SOx

m3N/h

1.2

0.015

NOx

ppm

180

71

Air
conditioning
equipment

176

10.1

Measured item

Measurement dates: March 24, 2021 (Kyoto Plant); June 26, 2020 (Shiga Plant);
November 13, 2020 (Azuchi Plant)

Plant

pH

Summary of environmental impact (fiscal 2020)

Regulated
value

ppm

124

600

mg/L

Biochemical
oxygen demand
(BOD)
Shiga
Plant

7.9

N-hexane extracts

Water consumption declined at all three plants year-on-year due to lower
production and increased telecommuting.

100

5–9

46.4

At the Kyoto and Azuchi plants, electricity consumption decreased compared to theprevious year due to declining production. At the Shiga Plant, the increase was higher
than the previous year due to the increased number of air conditioners installed.

10,000Observed
value

600

Water consumption(1,000 m3)

Regulated
value

mg/L

Electricity consumption

Unit

Toluene

Plant

Suspended solids
(SS)

pH

(1,000 kWh)Corporate
ProfileWe undertake periodic odor measurements at the site boundary.

Kyoto
Plant
2016

Summary of
Activities

Odor

5,000

0

Governance
IssuesAt the Shiga and Azuchi plants, we installed wastewater treatment tanks totreat sewage and wastewater from factory processes before it is discharged
from the plants. This treated wastewater is discharged into the tributaries ofneighboring rivers. At the Kyoto Plant, drainage water is discharged into thedrainage system after appropriate treatment.

10,00050SocietalIssuesWater quality

Plant(Tonnes-CO2)

100

Environmental
IssuesCompliance with Laws and Ordinances

Azuchi Plant

Burnable waste (domestic solid waste) generated(Tonnes)

Policies

Warm air
heating unit
(fuel oil)

Measurement dates: January 12, 2021 (Kyoto Plant);
March 8, 2021, and July 10, 2020 (Shiga Plant); February 4 and 5, 2021 (Azuchi Plant)

10

ESG Initiatives of Mitsubishi Logisnext

S

About
Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileSocietal Issues

Pursuit of Customer Satisfaction
Developing unmanned and labor-saving products
Against the backdrop of rapidly growing labor shortages,
we are developing safe, eco-friendly, and high-performance
automated guided vehicles (AGVs) and automated guided
forklifts (AGFs) to meet the need for automation at
logistics sites.
The laser guidance technology used in the AGF greatly
reduces environmental impacts from unnecessary floor
construction. It also enables AGFs to be introduced inlocations where modifications to the building are notpermitted, such as rented warehouses. In addition, we aredeveloping AGFs offering the same throughput and small turn
radius as our manned forklifts. Moreover, we are working to
introduce these AGFs at logistics sites where manned forklifts
have been the mainstay so far, contributing to the ongoing
automation of logistics operations.
In particular, demand for AGFs is increasing at logistics
warehouses that are serving the growing e-commerce market
in light of the COVID-19 pandemic and the associatedincreasing need for non-contact operations and automation.
In August 2021, in response to these needs, we
introduced the Platter Auto H Type, a product that increases
work efficiency to a greater extent than is possible withconventional models. This AGF eliminates the issues
associated with conventional manned forklifts, such as slower
cargo handling and running speeds, as well as the larger
passage width they require for loading and unloading. As aresult, this product is designed to play an active role atlogistics sites. Safety is a major consideration as well, in lightof the need for sites where people and machines work inclose proximity. In addition to the obstacle sensors mounted
along the entire circumference of the vehicle, four-color LED
lamps display the vehicle status — whether in standby,
abnormal stop, or charging or the like — to surrounding
workers in an easy-to-understand manner.
We will continue to add more intelligent features to
AGVs and AGFs, such as autonomous induction. We also
intend to develop more efficient and flexible AGV and AGF
systems to meet the advanced automation needs of logistics
sites that are otherwise difficult to automate.

Safety DVD

Hazard prediction training
calendar

Safety seminars held
Number of events

49,401

44,528

Total number of participants

46,90645,00044,882

31,565

3,480

4,003

4,269

4,226

4,278

4,500

2017

2018

2019

2020 *

2021**

Labor-saving unmanned product2016

Safety awareness initiatives
Our sales companies provide safety awareness and safetyenhancement training to their customers in order to prevent
accidents involving forklifts in industrial settings. We havemade available a variety of tools, including safety DVDs wehave produced, to promote safety initiatives. In addition, we
are working to increase safety awareness throughout society
by holding safety seminars tailored to customer needs anddistributing safety posters in collaboration with the National
Safety Week campaign sponsored by Japan’s Ministry of
Health, Labour and Welfare.

(FY)* Number of participants was reduced on one occasion due to the COVID-19 pandemic**Projected

Prioritizing safety through operator training courses
Those engaged in the operation of forklifts with a capacity of
1 tonne are required by the Industrial Health and Safety Act tocomplete an operator skills course. As a manufacturer offorklifts and shovel loaders that is registered as a training
organization under the Director of Japan’s Labour Bureau, wehold seminars at two locations in Japan and place the highest
priority on driver safety.

11

ESG Initiatives of Mitsubishi Logisnext

Product options offering greater safety
In the belief that all forklift operations can be performed
safely and that anyone can easily operate a forklift, we
provide forklift trucks and other logistics equipment
incorporating product features carefully selected for safety
and security.
In fiscal 2022, we will launch the new ERSIS enginepowered forklifts, which exhibit excellent environmental
performance. In addition to their low-noise and low-vibration
characteristics and powerful performance, they offer increased
safety with the addition of several safety options. These
include the Good Running System, which reduces vibrationand shock during stepped operation, and interlocks thatprevent startup and operation when insufficient liquefied
propane gas remains, the seat belt is released, or the parking
brake is applied.
In addition, our Forklift Operation Management System
known as LVS offers as an option that allows for visualizationof the work site.

About
Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
IssuesOutstanding reduction of shocks and vibration

Without system

With system

Vibration and shock absorption rate with Good Running System

Mast
Hydraulicfluctuationsareabsorbed.

SocietalIssuesGovernance
IssuesSummary of
Activities

Since fiscal 2020, we have been hosting “Logisnext
Expo,” our online showroom, as a new initiative in responseto the situation that has arisen with the COVID-19 pandemic.
Visitors no longer have to attend the actual event venue, so
this represents a new type of exhibit that people can view ina 360° virtual space on the Internet as they take a virtual
walk-around without any risk of infection. This innovation
enables us to provide a variety of information about oursolutions and services.
Through this and other such efforts to enhance ourcontact with customers, we remain focused on ensuring
customer satisfaction by monitoring market needs in a timely
and conscientious manner.

Accumulator

Load
Control
valve
Structural diagram of Good Running System

Maintaining good customer communication

ERSIS engine-powered forklift

As a means of establishing and maintaining good relationships
with our customers over the medium and long term, we
implement the following initiatives on a regular basis in orderto support our sales companies’ efforts to maintain open
communication with their customers.
• Conducting our Customer Questionnaire• Publishing monogram, our promotional magazine• Launching the Logisnext Expo online showroom

Corporate
Profilemonogram, our promotional magazine

Logisnext Expo online showroom

12

ESG Initiatives of Mitsubishi Logisnext

Ensuring Product Quality and Safety
Quality Policy
In fiscal 2021, we formulated the following four quality
policies and made them known to all employees working at
our company. In keeping with this policy, we strive to ensure
the continual improvement of the quality of all our operations
as well as the development and manufacture of our products.
1. We will provide safe and secure products and services tocustomers and strive to improve customer satisfaction.
2. We will strive to eliminate non-conforming products andwill always take prompt and effective action should such an
instance arise.
3. We will raise the quality awareness of all our employees
and work together with related parties to ensure thehighest levels of quality.
4. We will continuously improve our quality management system.

About
Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
Issuesprovide an opportunity for employees to gain direct
knowledge of the current situation and defects associatedwith market complaints. In addition to our conventional onsite
exhibition, we provided a new online version of the exhibition.
At our company-wide quality improvement reportmeeting, the Quality Management Office introduced the
Quality Control Status Report. The content of that reportprovided an opportunity to stage company-wide quality
improvement activities as well as initiatives that contribute toimproved performance.
Through our daily
quality improvement
efforts, we are reminding
all departments that thisissue is closely linked toour management policy of“pursuing quality.”
Defective Parts Exhibition

Initiatives for Quality MonthIn order to raise awareness of the need for quality andencourage the widespread adoption of quality control
initiatives, the month of November has been designatedQuality Month nationwide. As part of our quality monthactivities, we post Quality Month posters and banners andhold Quality Morning Meetings in each department in aneffort to raise awareness of quality. November is also themonth in which we enhance employee expertise in weighing.
In fiscal 2020, we provided instrument workshops and held
an instrument skills competition to reacquaint our employeeswith the basics of manufacturing through training inmeasuring instruments.
In addition, we held a Defective Parts Exhibition to

Supply Chain Management
Selecting highly rated suppliers and providing guidanceon improvements through supplier evaluations
We conduct supplier evaluations annually, and suppliers foundto have low evaluations in terms of quality and delivery time
are informed of the evaluation results and are given specificrequests for improvement. The progress of their improvement
efforts is monitored regularly. We also conduct factory auditsof suppliers according to uniform global evaluation standards
in order to maintain or improve quality levels.
The results of these initiatives are incorporated into ourSocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
Profilesupplier selection criteria when we develop and introduce newmodels. We consolidate orders among those who are identified
as potential core suppliers after they maintain a consistently
high evaluation status and successfully complete factory audits.
Recently, supply problems related to semiconductors andelectronic components have been occurring with somefrequency, which has increased production risks. However, weare taking steps to reduce such risks by sharing information
closely with our core suppliers. We will continue to strengthen
our collaborations and cooperation efforts with core suppliersin order to respond to the crises that have resulted from the
COVID-19 pandemic.

Prioritizing local procurement and supplier audits
At our production facilities outside Japan, we aim to reduce
imports from Japan and contribute to the emergence of asociety committed to recycling by promoting increased local
procurement from local suppliers to achieve “local production
for local consumption.” Furthermore, we have harmonized
the quality control standards of these suppliers with those ineffect in Japan and are promoting double-tracking of the
supply chain at a global level by exploiting the advantages of
producing identical models in multiple regions. Through these
efforts, we aim to build a resilient global supply chain thatenables us to maintain stable procurement even in the face ofsignificant geopolitical supply risks.
All our production
sites invite our coresuppliers, who play acentral role in the
supply chain, toparticipate in supplier
briefings on a regular
Supplier briefing session
basis. Our executives

13AboutMitsubishi Logisnext

ESG Initiatives of Mitsubishi Logisnext

request increased cooperation with our initiatives by explaining
the management situation as well as the economic environment,
initiatives, and policies. Although the COVID-19 pandemic
prevented us from holding briefing sessions in person, we areworking to provide more valuable information in greater
detail than ever before through remote meetings and video
distribution methods in order to gain the cooperation andagreement of our suppliers.

Ensuring Diversity of Human Resources
In light of Japan’s declining birthrate, aging population, andshrinking working population, companies whose personnel
embody diverse perspectives and values as well as different
experiences, skills, and attributes benefit from strengths that
contribute to the company’s sustainable growth. We are
therefore working to achieve greater diversity, which includes
an effort to promote the active participation of women.
Percentage of females in all positions and managerial positions
Fiscal 2017
Percentage of
employees
who are female

8.8%

Fiscal 2018
9.6%

Fiscal 2019 Fiscal 2020
9.9%

10.2%

Percentage ofmanagerial positions
filled by female
employees

0.7%

1.2%

1.4%

1.6%

Percentage of
employees inmanagerial positions

16.5%

15.8%

15.7%

16.3%

These figures represent the status as of the end of each fiscal year.

Message fromManagement

Policies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileHuman Resource Development

Occupational Health and Safety

In-house training system“Safety is the foundation of all that we do.” represents theGroup-wide health and safety philosophy we have establishedin concert with our three basic policies. In keeping with thisphilosophy and our policies, we carry out a variety of initiatives
with the aim of creating a safe and secure workplace.
In terms of safety, we conduct workplace checks, such as
the workplace health and safety patrols we conduct almost
every month.
In terms of hygiene, we are particularly focused on
mental health, and we monitor the mental health of ouremployees to reduce absenteeism as much as possible.
Likewise, we conduct stress checks through group analysis toimprove the workplace environment.
In our mental health training, we introduce examples of
workplace improvements and try to implement them throughlateral deployment.

We have developed a curriculum that provides rank-based
training whenever an employee at any grade is promoted. In
addition, since we believe it is important for young people tofoster a global mindset at an early stage and accumulate a
range of experiences — such as achieving success in a different
language, culture, or social system — we have established anoverseas trainee system that dispatches employees mainly tofacilities outside Japan for a period of about three months. This
year, due to the impact of the COVID-19 pandemic, we wereunable to provide any international assignments, so we plan
to continue this initiative in a virtual manner.

Service workshop
In order to provide our customers with safe, secure, andreliable services, we hold training sessions for our groupservice technicians. Specifically, the curriculum includes
rank-based training targeted to specific careers as well as
technical training that coincides with product launches. In
addition to holding meetings for the sharing of defectinformation and countermeasures, we have established avideo distribution site forGroup companies in orderto accommodate theincreasing sophistication oftechnology along with theincreasing complexity ofService workshop
vehicle control systems.

Health and Safety Philosophy and Policies
Health and Safety Philosophy of the Mitsubishi Logisnext Group“Safety is the foundation of all that we do.”We promise the safety of people and our products is the foundation of
our success.

Health and Safety Policy of the Mitsubishi Logisnext Group
1. We will make safety awareness a priority.
We remain actively engaged in health and safety initiatives and strive to raisesafety awareness.
2. We will enforce the policies we have formulated and implement the initiatives
we have approved.
In addition to complying with laws and regulatory requirements, we will
adhere to all internal rules and regulations.
3. We will maintain safe and secure workplaces.
We value human health and will remain actively engaged in providing safe
and secure workplaces.

14AboutMitsubishi Logisnext

ESG Initiatives of Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
Issues

Kyoto
Plant
Azuchi
Plant
Shiga
Plant

Fiscal
2019

Fiscal
2020

0
2
0
3
1
11

0
0
0
2
5
9

0
0
1
2
4
10

Accidents with lost time
Accidents without lost time
Accidents with lost time
Accidents without lost time
Accidents with lost time
Accidents without lost time

Job Satisfaction and Labor Productivity
We are working to create comfortable workplaces so that
employees of all generations benefit from satisfying employment.
As one of our initiatives, we will ensure that our employees takefive days of paid leave per year as stipulated by law, and that each
employee makes plans to take paid leave; we will regularly
monitor the take-up rate to ensure it improves. Our policies related
to childcare and nursing care exceed the minimums stipulated bylaw so that our employees can work with greater flexibility. In the
future, we plan to formalize a policy on remote work.

Governance
Issues(Average of all companies according tostatistics of the Ministry of Health,Labour and Welfare)(Average for the manufacturing industry
according to statistics of the Ministry of
Health, Labour and Welfare)Take-up rate (%)
among employees(Average of all companies according tostatistics of the Ministry of Health,Labour and Welfare)(Average for the manufacturing industry
according to statistics of the Ministry of
Health, Labour and Welfare)

Number of employees(labor union members)

Fiscal 2018

Fiscal 2019

Fiscal 2020

11.3 days

13.3 days

12.7 days

9.3 days

9.4 days10.1 days

11.0 days

11.0 days

11.9 days

55.4%

64.0%

60.2%

51.1%

52.4%

56.3%

58.4%

59.2%

64.1%

1,570

1,520

1,489

Corporate
ProfileIn addition to our business operations, we engage in a variety
of social initiatives with the aim of contributing to social andcommunity development as well as problem solving. In
particular, we believe it is our responsibility as a local company
to contribute to regional revitalization. We are actively
involved in local festivals and in hosting events at our plants
and offices. This includes sponsoring the Kyoto Sanga F.C.
as well as the Kyoto Philharmonic Chamber Orchestra basedin Kyoto, where our head office is located.
Since November 2021, we have been co-sponsoring the
Mitsubishi Heavy Industries Sagamihara DynaBoars rugby
team as a platinum partner in the interests of promoting
participation in sports.
Moreover, as a supporter of “A Dream a Day in Tokyo,”which provides support for children with intractable diseases,
we continue to help children dealing with severe healthchallenges to realize their dreams.

Kyoto Sanga F.C.

Mitsubishi Heavy Industries Sagamihara DynaBoars

Contributing to Society and
Local Communities

Take-up rate for paid leave
Average number of days
taken per company

Summary of
Activities

We remain dedicated to these initiatives as part of ourcommitment to social and community development.
For details, please visit our website (www.logisnext.com/
sponsorship/).
We also contribute to the education of future generations in
the region by contributing to the training of maintenance engineers.
Nissan Automobile Technical College is working on a
project to encourage its students to participate as staff
members of a professional racing team. The aim of thisprogram is to improve practical skills by offering an
opportunity for students to practice what they have learned atschool. They are also pushed to encourage, challenge, andlearn from one other as they cultivate qualities such as
independence, teamwork, sociableness, and gratitude, as
these qualities are necessary for a member of society engaging
in serious competitions and activities before and after a race.
In addition to supporting this initiative as a sponsor, we arecontributing to the development of maintenance engineers bysupporting collaborations between industry and academia.
This includes initiatives such as holding job fairs for students
and exhibiting vehicles at school festivals.

Status of occupational accidents
Fiscal2018

SocietalIssues15

AboutMitsubishi Logisnext

ESG Initiatives of Mitsubishi Logisnext

Policies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileGovernance Issues

G

Governance Reform
Every fiscal year, we evaluate the effectiveness of the Board of
Directors and formulate a policy on addressing issues related
to the Board. At the same time, we work to continuously
improve the Board’s effectiveness.
In the effectiveness assessment undertaken in fiscal 2020,
it was noted that the Board of Directors is required to engage
in a broader discussion of sustainability as it relates to mediumand long-term strategies and direction as well as the SDGs and
ESG issues while meeting the need to further strengthen
initiatives. The result was a commitment to recognize that the
improvement of minority shareholder protection measures andthe involvement of the Nominating and Compensation
Committee in the succession plan were important issues to beaddressed. In fiscal 2021, we are promoting efforts to addressthese issues as shown in the diagram below.
Corporate Governance Structure
appoints and dismisses

Board of Directors
proposes & reports

Auditors

reports & instructs
supervises & advises
instructs
reports
reports

reports Control activities

Sustainability
Councilpromotes activities instructs
Executive Officers
Divisionssupervises & advises
Group Companies

cooperates
cooperates

Management
Committee

Accounting
Auditors

Internal Control
Department
audits &advisescooperates

cooperates

selects & supervises

Nominating andCompensation
Committee

President

Risk Management
and Compliance
Committee

Internal Reporting
Helpline

consults &reports

Accounting Auditor (Auditing Company)

reports &instructs

appoints and dismisses

General Meetingof Shareholders

appoints and dismisses
Audit and Supervisory Board (Auditors / External Auditors)

Message fromManagement

Specifically, we hold monthly business strategy discussions
to devise our business strategy and action plan while addressing
governance issues and the like. In addition, we have establisheda sustainability system as well as a system through which theBoard of Directors can supervise sustainability initiatives. The
Nominating and Compensation Committee discusses succession
plans for the president and senior management and, as of fiscal
2021, this committee has decided to become involved in the
succession plan as appropriate.

Introduction of the Electronic Contract
System
We have introduced an Electronic Contract System thatenables us to conclude contracts with suppliers electronically.
In the past, we signed contracts with suppliers using
paper and personal seals, but by digitizing the process we areable to enhance operational efficiency and reduce various
costs. By centrally managing contracts in the cloud, we canminimize the loss of documents, omission of updates,
falsification, and other tampering with originals, all of which
contributes to stronger compliance security.
We will continue to expand the use of our Electronic Contract
System while also taking more flexible approaches to work.

Convening of the Risk Management andCompliance Committee
We established our Risk Management and Compliance
Committee as the lead entity responsible for risk management

in order to avoid risks with the potential to significantly impact
management and to minimize such risks when they become
apparent. We established a system to centralize and aggregate
risk information and manage it in a uniform manner for theentire Group, as show in the diagram below. Each division
identifies risks every six months and analyzes and evaluatesthese risks to determine which are considered serious. We have
prepared an action plan for critical risks that are assigned aparticularly high priority and are developing risk reduction
initiatives on a daily basis. Each of our Group companies assigns
a risk management supervisor to undertake risk management
in a process similar to that adopted by the parent company.
The status of these activities is reported to the Risk
Management and Compliance Committee, which convenes
quarterly, and the status of serious risks and the effectiveness ofcountermeasures are evaluated; the results are then reported to
the Board of Directors, as shown in the diagram on the next page.
Risk Management System
Board of Directors

Audit andSupervisory Board

Risk Management and Compliance Committee

Full-time auditors
in attendance

Chairman & executive in charge (President)
Person in charge of risk management(executive officer in charge of Administration Headquarters)
Secretariat / General
Affairs Department
Committee members: Heads of each office, heads ofeach headquarters, personnel designated by the chairman

Compliance
LiaisonCommittee

Each room and headquarters
Each department

Internal audits
Internal Control
DivisionGroup Companies

Risk control

Risk
Market risk
Financial risk

Disaster risk
Talent risk

Litigation risk

Operational risk
Compliance riskcooperates

16AboutMitsubishi Logisnext

ESG Initiatives of Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
IssuesOperational image
Risk countermeasure standards

Reviewof risks

2

Significant risk

1

Determining
significant risk
from risk
countermeasure
standards andcountermeasure
level

0
3

2

1

Frequency of occurrence
Level

DefinitionA

Sufficient countermeasures are in place, or
the impact is minor and none are required.

B

The measures leave room for improvement.

C

Countermeasures are insufficient or
nonexistent.

Priority response risk

Risks identified

ImpactSignificant
risk

3Countermeasures forpriority response risks

evaluates &improves
Implementation ofcountermeasures• Formulation andimplementation of action plans

Mitsubishi Logisnext Group Compliance Guidelines
1. Relationships with customers[1] We should respect the opinions of our customers and treat each customer fairly and honestly.
[2] We should provide attractive and safe products and services to our customers.
[3] We should conduct our domestic and overseas business activities in fair competition with othercompanies in accordance with relevant laws and social norms.

2. Relationships with shareholders and investors
We should communicate with our shareholders and other investors to fairly disclose corporate informationfor our business activities.

SocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileAdhering to Our Compliance Guidelines

policies and procedures for engaging with competitors andgovernment procurement agencies.

The Mitsubishi Logisnext Group has established Compliance
Guidelines to serve as particularly important standards that all
officers and employees can apply in their daily business activities
as a means of upholding legal compliance and corporate ethics.

Compliance Checks Related to Order
Optimization

Establishment of Our Internal Reporting
Helpline
In order to detect and correct fraud
such as violations of laws andregulations and corporate ethics at
an early stage and to strengthen
compliance management, we haveestablished a helpline that serves as apoint of contact for any whistleblowers
within the Group. We have also set up
whistleblower contact points at allgroup companies outside Japan.

In order to prevent inappropriate order acceptance related togovernment projects inside and outside Japan as well as
construction projects, we have established complianceguidelines that apply when project information is submitted andwhen orders are submitted either successfully or unsuccessfully.

Anti-fraud and Anti-bribery Procedures

Poster publicizing the Internal
Reporting Helpline

In order to prevent fraud and suspected acts of bribery, we
have prepared detailed procedures for examining offers ofentertainment and gifts, offers of donations, invitations, andappointment of agents and trading companies.

3. Relationships with business partners[1] We should maintain fair relationships with our business partners and conduct transactions in accordancewith objective principles.
[2] We should exchange business courtesies, such as gifts, meals, and entertainment, within sociallyacceptable limits and in a socially acceptable manner.

4. Relationships with employees[1] We should respect basic human rights and strive not to take any discriminatory actions.
[2] We should comply with relevant labor laws and strive to maintain a safe and friendly working environment.
[3] We should respect the individuality and creativity of every employee and promote employee education,
training, and growth.

5. Relationships with law and society[1] We should strive to ensure efficient use of resources and to protect the global environment.
[2] We should comply with relevant laws and standards, including related internal rules, and behave fairly
and honestly.
[3] We should not use inside information, from either internal or external sources, to buy or sell stock orother securities, and we should not disclose inside information to any other persons, including family
members and friends.
[4] We should firmly resist and not enter into engagements with anti–social activities or forces.

6. Acknowledgement regarding compliance
We should remain aware that compliance with the Compliance Guidelines will benefit the company
significantly as well as contribute positively to society.

Inquiry and Reporting Procedures for
Contacts with Competitors andGovernment Procurement Agencies
With the aim of ensuring compliance with the Antimonopoly
Law and other laws and regulations intended to maintain faircompetition, we have established internal rules as well as

Compliance Training
To ensure all officers and employees carry out their corporate
activities in a fair and appropriate manner, we provide regulartraining intended to impart the necessary knowledge whileraising compliance awareness.

17

ESG Initiatives of Mitsubishi Logisnext

About
Mitsubishi Logisnext

Message fromManagement

Policies

Environmental
IssuesSocietalIssuesGovernance
Issues: Succeeded
Category

Material Issue

Providingenvironmentfriendly
products

Activity

Objective

Development andprovision of
decarbonized andlow-carbon
products

1. To develop electric forklifts offering
lower electricity consumption
2. To expand the lineup of electric forklifts
to replace engine-powered forklifts
3. To develop of engine-powered
forklifts in compliance with emissions
regulations
1. To help achieve the carbon-neutral
ports policy being promoted by the
Ministry of Land, Infrastructure,
Transport and Land
2. To reduce CO2 emissions attributable
to ports

1. To grow sales of the new ALESIS electric
forklift outside Japan
2. To develop new electric forklifts
3. To develop models in compliance with local
emissions regulations

To address issues identified in internal
environmental audits within the GroupTo harmonize environmental management
methods at our Kyoto, Shiga, and Azuchi plants

To upgrade the environmental initiativesof Group companies

To comply with laws or regulations and avoid
receiving improvement guidance from competentauthorities

To improve our waste and emissions
intensity

To achieve a 3% improvement in waste andemissions intensity (excluding resources andwastepaper) relative to fiscal 2017 levels
To achieve a recycling rate exceeding 97.5%(The amount that cannot be recycled is theweight at the time of discharge.)
To achieve a 3% improvement in VOC emissions
intensity relative to fiscal 2017 levels
To disclose environmental protection costs
internallyDevelopment ofcarbon-neutral
rubber-tired gantry
cranes

Initiatives of the
our special
environmentalgroups and theentire company

To increase our recycling rate
To improve our VOC emissions intensity
To ensure the costs of environmental
protection are calculated and clearly
disseminated in-house
To reduce CO2 emissions from forklift
vehicles in development

E

To reduce CO2 emissions from logistics
solution vehicles in development

Reduction ofenvironmentalload

To reduce the amount ofenvironmentally hazardous substances
contained in products
To comply with REACH regulations andstrengthen support for our suppliers

To improve our energy intensity

To reduce water intensity

Fiscal 2020 Initiatives

Achievement
RatingFiscal 2020 Results

1.
2.
3.

To identify target parts and the amounts ofenvironmentally hazardous substances utilized
and substitute the parts incorporating thesesubstances
1. To visualize the implementation rate of thesurvey on substances of very high concern(SVHCs) and provide guidance on
implementation
2. To provide guidance on submission ofdeclarations of non-use or non-inclusion ofprohibited substances and reflect them in our
supplier evaluations
3. To provide suppliers with guidance on theacquisition of EMS certification; to incorporate
this process in our supplier evaluations
1. To improve energy intensity by 3% relative tofiscal 2017 levels
2. To convert the reduction in labor hours into an
equivalent reduction in CO2 emissions

1. To improve water intensity by 3% relative tofiscal 2017 levels
2. To repair leaks: Will soon succeed

Fiscal 2021 Initiatives
1. To grow sales of the new ALESIS electric
forklift outside Japan
2. To develop new electric forklifts
3. To develop models in compliance with local
emissions regulations–

To achieve a 5% reduction in CO2 emissions fromvehicles in development compared to theprevious model; to formally standardize a method
for calculating the contribution to CO2 reduction
To achieve a 5% reduction in CO2 emissions fromvehicles in development compared to theprevious model; to formally standardize a method
for calculating the contribution to CO2 reduction

Summary of
Activities

The environmental management methods havenot been harmonized, and the system isinsufficient to supervise, manage, and promote
environmental initiatives throughout the company.
No projects have been the subject of official
guidance calling for improvements. Domestic
sales companies are drawing up a list ofenvironmental laws and regulations.
Worsened by 14% relative to fiscal 2017 levels.
Kyoto Plant 96.1% Shiga Plant 94.1%
Azuchi Plant 97.6%
Achieved a 32.9% improvement relative to fiscal
2017 levels
Understanding of environmental accounting andits penetration was insufficient; this was notdisclosed in internal publications.
A 5% reduction was achieved with some models,
while other models have not improved. But calculationof CO2 emissions reductions in development
vehicles in fiscal 2020 has been implemented.
1. Although a 5% reduction could not be
achieved, calculation of CO2 emissions
reductions in development vehicles in fiscal
2020 has been implemented.
2. Calculation of CO2 emissions reductions indevelopment vehicles in fiscal 2019 has notbeen implemented.
The target parts were identified but the amounts
in use have not been determined.
1. Six suppliers failed to submit an SVHC survey.
2. One supplier has not yet submitted a non-use/
non-inclusion declaration.
3. Out of the top 70 companies in terms of
trading volume, guidance was provided to thefive suppliers that have not yet acquired EMS
certification.

Manufacturing intensity
1. The Kyoto Plant was 21.5% below the target
value.
2. The Shiga Plant was 4% above the target
value.
3. The Azuchi Plant was 5.4% below the target
value.
4. All three plants in total were 4.7% below thetarget value.
1) Water intensity
1. The Kyoto Plant’s consumption was 10.0%
above the target value.
2. The Shiga Plant’s consumption of groundwater
was 19.7% above the target value.
3. The Azuchi Plant’s consumption was 10.3%
above the target value.
2) Water leaks at the Kyoto Plant were repairedin August 2020.

1. To participate in a study group to form acarbon-neutral port hosted by the Ministry ofLand, Infrastructure, Transport andInfrastructure and local governments
2. To develop and order rubber-tired gantry
cranes equipped with diesel generators incompliance with the fourth emissions
regulation targeting the future replacement offuel cells (CO2 reduction rate of 15%/vehicle)
To harmonize environmental management
methods at our Kyoto, Shiga, and Azuchi plants
To comply with laws or regulations and avoid
receiving improvement guidance from competentauthorities
To improve the waste and emissions intensity(excluding resources) by 0.5% relative to theresults for fiscal 2020
To improve the recycling rate relative to theresults for fiscal 2020
To improve the VOC emissions intensity relative
to the results for fiscal 2020
To ensure the costs of environmental protection
are appropriately calculated and publishedin-house
To establish methods and standards forcalculating the reduction in CO2 emissions
attributable to product use
To establish methods and standards forcalculating the reduction in CO2 emissions
attributable to product use

To identify target parts and the amounts ofenvironmentally hazardous substances utilized
and substitute the parts incorporating thesesubstances
To strengthen compliance with laws andregulations in each country and provide support
for suppliers

To improve energy intensity by 1% relative tofiscal 2020 levels

To improve water intensity by 0.5% relative tofiscal 2020 levels

Corporate
Profile: Doing all we canCorresponding SDGs

18

ESG Initiatives of Mitsubishi Logisnext

CategoryE

Material Issue

Message fromManagement

Fiscal 2020 Initiatives

Environmental
Issues

Policies

Achievement
RatingFiscal 2020 Results

SocietalIssuesGovernance
IssuesSummary of
Activities

Activity

Objective

Initiatives of the
our special
environmentalgroups and theentire company

To reduce VOC emissions

To consider capital investments

No plan

To devise measures to reduce VOC emissions
intensity

To reduce wood pallet waste

To reduce wood pallet waste intensity at the
Shiga Plant by 1% compared to fiscal 2019 levels

Achieved the goal of reducing the amount ofwood pallets discarded.

To reduce pallet waste intensity by 1% comparedto fiscal 2020 levels

To reduce the weight of packaging
material purchased per unit of sales

To reduce the amounts of packaging materials
purchased to no more than 18.18 kg/million yen

18.81 kg/million yen

To reduce the weight of packing materials
purchased for parts shipment to the fiscal 2020
level or less

To improve the usage rate for
returnable containers

To achieve a returnable container return rate of
4.8%

Introduced returnable containers for someengines produced in Japan.
Prepared for the introduction of reinforced
corrugated cardboard in collaboration with
suppliers. (See “Utilization of Returnable Pallets.”)

To promote the adoption of returnable containers

To determine product shipments (bytonne-kilometer) and maintain or
improve management methods

To determine product shipments (by tonnekilometer) in an appropriate manner andmaintain the status quo regarding transportationenergy intensity

Improved relative to the result for fiscal 2019.

To determine product shipments (by tonnekilometer) and reduce energy intensity related totransportation

3 R initiatives

1. To ensure effective use of resources
by reusing surplus items
2. To reduce waste disposal volume

To promote timely internal notification to ensuresurplus items end up at departments in need

To be implemented on an ongoing basis

To promote timely internal notification to ensuresurplus items end up at departments in need

Environmental
investment

To reduce CO2 emissions throughenergy efficiency

To reduce CO2 emissions by 46.4 tonnes/year
1. To introduce LED lighting at the Kyoto Plant(26.9-tonne/year reduction)
2. To update the air conditioner in the Product
Planning Office (0.1-tonne/year reduction)
3. To improve compressor operation in Building F
at the Shiga Plant (18.2-tonne/year reduction)
4. To update LED lighting in the powder coatingarea in the machinery area of the Azuchi Plant(1.2-tonne/year reduction)

Reduced CO2 emissions by 65.4 tonnes/year.
Six initiatives were added during the period in
addition to those listed at left.
1. LED lighting installed on the first floor of the
Azuchi Plant Office(10.1-tonne/year reduction).
2. Improved compressor operation and installed
an inverter for exhaust fans in Building F of
Shiga Plant (2.3-tonne/year reduction).
3. Improved the efficiency of Shiga Plant frame
exhaust fan (0.4-tonne/year reduction).
4. Installed an inverter for the compressor in
Building J at the Shiga Plant (9.3-tonne/year
reduction).
5. Electrified the air booster at the Shiga Plant(2.5-tonne/year reduction).

1. To update the air conditioner (gas heatpump) in the cafeteria (0.9-tonne reduction).
2. To update the air conditioner (gas heatpump) in the Kyoto Plant (2.0-tonne
reduction).
3. To install LED lighting at the Kyoto Plant(9.8-tonne reduction).
4. To update the compressors (1.9-tonne
reduction).
5. To update the sheet shutters at the Azuchi
Plant (3.2-tonne reduction).
6. To convert to LED lighting on the 2nd floorof the Office Building of the Azuchi Plant(9.8-tonne reduction).
7. To update the steam boiler (8.2-tonne
reduction).
8. To purchase a compressor for Shiga Plant No.
1 Assembly Unit (71.2-tonne reduction).
9. To install an inverter for the mast boothexhaust fan (4.6-tonne reduction).
10. To convert the air hoists to electric models(3.5-tonne reduction).
11. To convert the heavy oil compressors toelectric models (6.0-tonne reduction).

Zero waste
movement

1. To cooperate in local government
initiatives (530 campaign)
2. To contribute to a society in which
everyone seeks to take ownership of
the waste issue by cultivating thepractice of picking up waste and notlittering

Waste collection events were canceled to prevent
spread of the COVID-19 pandemic.

Participation incommunity cleanup
activities

1. To increase the environmental
awareness of employees
2. To promote environmental
conservation in local communities

1. To participate in the Lake Iba-naiko Yoshi
Reed-Harvesting project
2. To participate in the Oiso Cleanup Initiative
3. To participate in weeding of the Sammyo River

1. Discontinued to prevent spread of the
COVID-19 pandemic.
2. Discontinued to prevent spread of the
COVID-19 pandemic.
3. July 5: 2 people participated.

1. To participate in the Lake Iba-naiko Yoshi
Reed-Harvesting project
2. To participate in the Oiso Cleanup Initiative
3. To participate in weeding of the Sammyo River
4. To participate as Shiga Prefecture Forest
Maintenance Volunteers.

Encouraging use of
returnable pallets

1. To reduce the use and disposal ofwood packaging materials
2. To improve loading efficiency bypallet stacking and reducing thenumber of containers used

To begin mass production and full-scale adoptionof returnable pallets

The adoption of returnable pallets (steel pallets)
was delayed. We are considering a shift tocorrugated cardboard packaging.

1. To switch from wooden frame packing tocorrugated cardboard packing.
2. To reconsider the adoption of returnable
pallets.

Used car sales

1. To improve the image of recycled
products
2. To promote the reuse of resources

To improve the accuracy of the AI assessment
system for used vehicles with the aim ofachieving adoption by sales companies in fiscal
2021

We narrowed down the list of items that affectthe assessment value in order to improveaccuracy of the AI assessment system for used
vehicles.

To introduce the AI assessment system for used
vehicles in order to speed up assessments incooperation with used vehicle purchasing
websites

Reduction ofenvironmental
load

Recycling /Remanufacturing

About
Mitsubishi Logisnext–

Fiscal 2021 Initiatives

To hold waste collection events twice annually inspring (May) and autumn (October).

Corporate
ProfileCorresponding SDGs

19

ESG Initiatives of Mitsubishi Logisnext

S

Customers

Category

Material Issue

About
Mitsubishi Logisnext

Message fromManagement

Achievement
RatingEnvironmental
IssuesFiscal 2020 Results

SocietalIssuesGovernance
IssuesSummary of
Activities

Activity

Objective

Development oflabor-saving andunmanned products

1. To reduce the environmental impactof AGVs/AGFs
2. To improve the safety of AGVs/AGFs
3. To increase the throughput of AGVs/
AGFs
4. To promote the introduction of AGFs
to manned forklift sites
5. To promote autonomous control
systems for AGVs/AGFs

To develop a laser guidance method for AGFs

Safety awarenessinitiatives

1. To increase our customers’ safety
awareness
2. To raise awareness of and prevent
occupational accidents

1. To present safety seminars (3,780 seminars
with 38,000 participants)
Note: With arrangements in consideration of
COVID-19 pandemic protocols
2. To distribute safety awareness DVDs: 5,000
copies
3. To distribute safety awareness posters: 25,000
copies
4. To distribute KYT hazard prediction training
calendars: 10,000 copies

1. Safety seminars presented: 4,278 seminars
with 31,565 participantsNote: The number of participants in
attendance was restricted as a COVID-19
mitigation measure.
2. Distribution of safety awareness DVDs: 3,131
copies
3. Distribution of safety awareness posters:
25,000 copies
4. Distribution of KYT hazard prediction training
calendars 9,409 copies

1. To hold safety seminars: 4,500 seminars with
45,000 participants
2. To distribute safety awareness DVDs: 3,500
copies
3. To distribute safety awareness posters: 26,000
copies
4. To distribute KYT hazard prediction training
calendars: 10,000 copies

Operatorqualification training
for forklifts, shovel
loaders, etc.

Ensuring the safety of operators of
forklifts and shovel loaders

1. Number of scheduled sessions
Shiga Plant: 40 sessions / On-site training
center: 20 sessions
2. Estimated number of participants at the Shiga
Plant: 330

1. Number of sessions held
Shiga Plant: 38 sessions / On-site training
center: 6 sessions
2. Number of participants: Shiga Plant: 331 /On-site training center: 91

1. Number of scheduled sessions
Shiga Plant: 37 sessions / On-site training
center: 14 sessions
2. Estimated number of participants
Shiga Plant: 370 / On-site training center: Not
specified

Offering productoptions (safety
equipment) andspecial features

1. To provide forklifts and other logistics
equipment with product capabilities
focused on safety and security
2. To offer a variety of options forsafety equipment
3. To strengthen support for special
features to meet special-orderrequests from customers

1. To prepare the following for installation in new
vehicles under development
1. Good running system
2. Tilt horizontal support
3. Simple load cell
4. Rear blue warning light
5. LVS (Forklift Operation Management
System)6. Orange seat belts
2. To offer support for special features
1. Worker detection system (Rear obstacle
sensor sounds a buzzer when a rearward
obstacle is detected.) (Model: Alesis)
2. Cargo handling travel interlock (Requiresthat operator be seated and that seat belt
be fastened before vehicle can travel whileladen.) (Models: GRENDiA, FX, and others)
3. Cargo handling operation interlock during
travel (Requires that operator depress brake
pedal before vehicle can travel while laden.)(Model: Platter)

Customerquestionnaire

To visualize the degree of customer
satisfaction and dissatisfaction throughtestimonials for rapid response and casesharing

To conduct the questionnaire three times a year

Questionnaire conducted in February and in July
2020.

To conduct the questionnaire in July 2021

Publication of thepromotionalmagazinemonogram

To provide examples of optimal logistics
solutions provided by the Company aswell as information on logistics topics
and the likeTo publish a web version as well in response to
the COVID-19 pandemic• To publish Vol. 10 in April 2020 and distribute
80,000 copies free of charge• To publish Vol. 11 in October 2020 and
distribute 45,000 copies free of charge as wellas publish a web edition

Achieved

To also publish a web version in response to the
COVID-19 pandemic• Vol. 12 in April 2021
• Vol. 13 in October 2021

Staging of the
Logistics Solutions
Fair

1. To provide customers with solutions,tips, and knowledge to improvelogistics
2. To revitalize communication withcustomers with whom we cannot
follow-up at any of the international
logistics exhibitions and similar events

To consider events that reflect the circumstancesof the COVID-19 pandemic

Held the Logisnext EXPO as an online event.

To hold the Logisnext EXPO as an online event• March 2021
• August 2021

Pursuit ofcustomersatisfaction

Fiscal 2020 Initiatives

Policies

Fiscal 2021 Initiatives
To develop a laser guidance method for AGFs

1. To prepare for installation in new vehicles
under development
To include optional equipment in publishedcatalogs and sales manuals and to launch amarketing campaign to highlight the safety
equipment to the market
2. Support for special specifications
1. Good Finder (FD120 to 310)
2. Lift-interlocked buzzer (Platter, GRENDiA)
3. Lift-interlocked rotating light (Platter,
GRENDiA)
4. Lift-interlocked driving speed limit (Platter,
GRENDiA)
5. Speed alarm: Turns on the rotating light andsounds buzzer at or above a set speed(INOMA/FX)

Corporate
ProfileCorresponding SDGs

20

ESG Initiatives of Mitsubishi Logisnext

Category

Material Issue

Customers

Pursuit ofcustomersatisfaction

Ensuring
product quality
and safety

Suppliers

S

Supply chain
management

Activity

About
Mitsubishi Logisnext

Message fromManagement

Achievement
RatingPolicies

Environmental
IssuesFiscal 2020 Results

SocietalIssuesGovernance
IssuesSummary of
Activities

Objective

Fiscal 2020 Initiatives

Fiscal 2021 Initiatives

FMS analysis
proposal

1. To listen to customer needs
2. To collect and analyze vehicle data
through on-site surveys
3. To visualize operation status
To recommend and implement site
optimization, such as models,
number of units owned, operation,etc.

To survey 30 users/year
Note: Limited in consideration of the impact of
the COVID-19 pandemic.

To survey 33 users/year

Sale of LE products

1. To improve logistics quality
2. To improve storage efficiency
3. To improve work efficiency (toreduce long working hours)
4. To improve safety of cargo handlingwork
5. To popularize eco-friendly logistics
systems by improving vehicle fuelefficiency and adopting paperlesspractices

1. To promote sales through the proposal
method
2. To incorporate demonstration methods
3. To adopt initiatives to commercialize products
offering enhanced efficiency by utilizing thelatest technologies such as AI and IoT

Although the target for orders was not met, we
exceeded the results for fiscal 2019.
1. Logistics system solutions were put forth amid
the COVID-19 pandemic.
2. Logistics systems were introduced to newusers.

1. To increase sales through comprehensive
proposals
2. To raise awareness by utilizing digital content

Strengthening weak
points throughreciprocal
implementation ofplant process audits

To identify the quality level at eachplant and implement improvements

To devise a plan to conduct a process audit ateach plant and then conduct reciprocal audits

Expanded the scope of audits at the
manufacturing departments of the Shiga andKyoto plants.

To increase quality through expansion of audit
areas and repetition

Implementing
Quality Monthinitiatives(Company-wide
Quality Improvement
Report Meeting,Defective Parts
Exhibition, etc.)

1. To raise awareness of quality
2. To recognize the company’s quality
status
3. To introduce our quality control
initiatives
4. To promote quality improvements byreflecting on our own work

To prevent the spread of the COVID-19
pandemic, the Defective Parts Exhibition was
published on the web in parallel with the physicalexhibition.

A permanent exhibition was published on thecompany website in response to requests in thequestionnaires to be able to view web exhibitions
at times other than Quality Month.

Based on the results of the questionnaire during
Quality Month, we will consider initiatives toimprove our quality status as well as our quality
control activities.

Utilizing the Quality
Dojo for recurrence
prevention activities

1. To establish a quality culture
2. To visualize quality data by posting it
3. To implement quality training

To use it as a platform for quality education (heldon Metrology Day during Quality Month)
1. To provide training in measuring instrument
skills (50 people in manufacturing
departments)
2. To present the Defective Parts Exhibition

Contributed to raising awareness and improving
initiatives in the manufacturing departments of
the Shiga Plant.

To establish a Quality Assurance Center andrelocate the Quality Dojo
1. To hold quality morning meetings (beginningin September)
2. To post various key performance indicators
3. To provide measuring instrument skills training
and a measurement skills competition (November)
4. To stage the Defective Parts Exhibition(November)

Providing
improvement
guidance throughsupplier evaluations
and identification ofhighly rated suppliers

1. To undertake supplier evaluations
regarding delivery date, quality, andprice
2. To submit improvement requests andprovide support for suppliers withlow evaluations in terms of qualityand delivery times
3. To undertake factory audits of suppliers
4. To build a strong supply chain byconsolidating orders among suppliers
that have passed factory audits andachieved high evaluations

1. To undertake supplier evaluations
2. To follow-up regularly on the implementation
status of improvements
3. To consolidate orders among suppliers thathave achieved high evaluations

The supplier evaluation scheme has taken holdand has been visualized on a list. Individual
improvement requests are submitted to supplierswith low evaluations in terms of quality anddelivery time.

1. To monitor the ratio of orders to core suppliersof existing models and further promoteconsolidation of orders
2. To review the division of duties and summarize
the entire ordering process, including “logistics,
indirect materials, and auxiliary parts”

Promotion of local
procurement

1. To minimize shipping from Japan bypromoting local production for local
consumption
2. To establish a global supply chain bypromoting local procurement
3. To explain our local procurement
promotion approach to domestic
suppliers in JapanTo accelerate the switch to local procurement

Monitored the progress of local procurement at
all production sites outside Japan and followed
up at regular meetings.

1. To follow up on local procurement at all
production sites outside Japan
2. To promote efforts to expand local
procurement along with the launch of newmodelsHolding supplier
briefings

1. To hold supplier briefings for coresuppliers
2. To share information throughbusiness overview presentations byexecutives
3. To strengthen the supply chain byrequesting cooperation with our
initiatives

To hold briefing sessions about our response to
the COVID-19 pandemic

Disseminated information through remotemeetings and video distribution.

1. To distribute explanatory videos fromexecutives in addition to materials frombriefing sessions
2. To strengthen trust by communicating with
suppliers through remote meetings

Corporate
ProfileCorresponding SDGs

21

ESG Initiatives of Mitsubishi Logisnext

Category

Material Issue

S

Employees

Ensuring
diversity of
human
resources

Human
Resource
Development

Occupational
health andsafetyActivity

About
Mitsubishi Logisnext

Objective

Fiscal 2020 Initiatives

Participation byfemales

To hire employees, retain them, andincrease employee motivation bycreating a workplace environment inwhich female employees can continue
to work while developing their skills

Diversity training

Message fromManagement

Achievement
RatingPolicies

Environmental
IssuesSocietalIssuesGovernance
IssuesSummary of
Activities

Fiscal 2020 Results

Fiscal 2021 Initiatives

To maintaining a minimum ratio of 20% female
employees in personnel recruitment efforts

Ratio of females relative to all employees: 21.9%(7/32)

To maintaining a minimum ratio of 20% female
employees in personnel recruitment efforts

1. To secure personnel in an aging
society with a declining birth rate bypromoting the active participation of
a diverse range of personnel
2. To strengthen our ability to respondto diversifying market needs andvaried risks

To hold irregular training for managers andfemale employees on women’s participation andadvancement in the workforce

Although not provided for managers and female
employees, related videos and other materials
were distributed as part of a harassment
prevention training effort in March 2021.

To provide training in female empowerment
initiatives for managers and female employees

Promoting
employment ofpeople withdisabilities

To create an environment in whichanyone can live an independent life byfinding employment suitable to theirabilities and aptitudes, regardless ofwhether or not they have a disability

To achieve the statutory employment rate of atleast 2.3% for people with disabilities as of theend of fiscal 2020

The ratio of people with disabilities to all
employees at the end of fiscal 2020: 2.38%

To achieve the statutory minimum employment
rate of 2.3% for people with disabilities as of theend of fiscal 2021

Overseas trainee
system

To foster personnel who cancommunicate both inside and outside
Japan in a world of rapid progressing
globalization

Cancelled because of the COVID-19 pandemic.

In-house training(rank-specifictraining)

1. To train personnel to achieve thecompany’s vision by filling the role
expected by the company
2. To raise the status of the entire
company and improve motivation

To expand and enhance rank-specific training

Established the following rank-specific training
1. Skilled leader training: November 2020 toMarch 2021
2. Class 5 training of promoted employees:
March 2021

To expand and enhance rank-specific training

Service workshop

1. To improve maintenance technology
for service technicians
2. To improve the user-response skillsof service technicians
3. To improve product knowledge
4. To share information on defects

1. To train new service technicians
2. To implement a forklift mechanic certification
system
3. To implement user-response training
4. To convene a service support exchange
meeting
5. To convene a large forklift reach stacker
technical liaison committee

1. New service technician training: 3 sessions
with 30 participants
2. Forklift mechanic certification system
Note: Cancelled because of the COVID-19
pandemic.
3. User-response training
Note: Cancelled because of the COVID-19
pandemic.
4. Service support exchange meeting: 2 meetings
with 171 participants
5. Large forklift reach stacker technical liaison
committee: 2 sessions with 174 participants

1. To train new service technicians
2. To implement a forklift mechanic certification
system
3. To implement user-response training
4. To convene a service support exchange
meeting
5. To convene a large forklift reach stacker
technical liaison committee

Conducting stresschecks

1. To raise awareness of stress andways of dealing with it
2. To foster a safe and comfortableworking environment
3. To improve the workplaceenvironment by conducting group
analysis

1. To conduct online stress checks to reduce theload on employees
2. To achieve a 1-point decrease in the rate ofhigh stressors (13.5%)
3. To improve the acceptance rate (98%)

1. Implemented
2. Rate of high stressors: 13.5%
3. Acceptance rate: 98.5%

1. To conduct online stress checks
2. To decrease the rate of high stressors to lessthan the fiscal 2020 rate
3. To increase the examination rate

Conducting healthand safety patrols

To improve safety, hygiene, and the“5 S” principle

1. To have the health and safety committee
members conduct patrols 9 times a year
according to a monthly theme
2. To have labor and management executives
conduct “5 S” patrols twice a year

Providing mental
health training

1. To encourage employees to becomeaware of their own state and learn
appropriate response measures
2. To encourage managers to acquire
knowledge and coping methods
related to mental disorders
3. To improve the workplace based on
results of group analysis

The live workshop was canceled due to the
COVID-19 pandemic. Alternatively, we will
explain the results of group analysis for managers
on a workplace-by-workplace basis and holdinterviews on workplace care 21 times a year.

An explanation of the results of group analysis
was not provided.

To provide the following training online:
1. Self-care training
2. Line care training
3. Workplace care manager training
4. Executive briefing session
5. Workplace revitalization interviews

Providing counselingrooms

To improve mental health carecapabilities

To be implemented on an ongoing basis

Mental health consultations and interviews withexternal professional counselors have been
conducted at the Azuchi, Kyoto and Shiga plants
since 2015.

To be implemented on an ongoing basis–

To examine the training system in light of the
COVID-19 pandemic

1. To have the health and safety committee
members conduct patrols 9 times a year
according to a monthly theme
2. To have labor and management executives
conduct “5 S” patrols twice a year

Corporate
ProfileCorresponding SDGs

22

ESG Initiatives of Mitsubishi Logisnext

Employees

Category

Material Issue

Job satisfaction
and labor
productivity

Community

S

Community
and social
contribution

About
Mitsubishi Logisnext

Message fromManagement

Achievement
RatingEnvironmental
Issues

Policies

Governance
IssuesSummary of
Activities

Activity

Objective

Fiscal 2020 Initiatives

Increasing the
take-up rate of paidleave

To establish a comfortable workplace
and promote a healthy work-lifebalance

To ensure a minimum take-up rate of five days ayear

All eligible employees took advantage of theirfive days per year

To achieve a paid leave take-up rate of 70%

Implementing achildcare leavesystem / Reducing
working hours for
those providing
childcare

1. To promote continuous work for
employees providing childcare
2. To promote employee welfare

To be implemented on an ongoing basis

1. Employees taking childcare leave: 24 (including
3 male employees)
2. Employees who applied for reduced working
hours for childcare purposes: 28

To achieve a childcare leave take-up rate of 9.4%
among male employees(Double the rate of fiscal 2018–2020)

Implementing anursing care leavesystem / Reducing
working hours for
those providing
nursing care

1. To promote continuous work for
employees providing nursing care
2. To promote employee welfare

To be implemented on an ongoing basis

No record of achievement

To be implemented on an ongoing basis

Formulating andimplementing anaction plan forwork-style reforms

To improve employee job satisfaction
and purposeful living and maximize
work output while improving customer
satisfaction

To be implemented on an ongoing basis

Conducted employee awareness surveys from
October to November 2020

To implement on an ongoing basis in eachdepartment based on the results of the fiscal
2020 employee awareness survey(Interim report to be submitted at the end of
September, final report at the end of December.)Sponsorship of the
Mitsubishi Heavy
Industries
Sagamihara
DynaBoars

1. To promote sports
2. To contribute to society bysupporting the sound developmentof young people

Sponsorship of the
Kyoto Sanga F.C.

1. To pursue regional revitalization
through sports
2. To contribute to society bysupporting the sound developmentof young people

1. To post advertisements in the home stadium in
Kameoka, Kyoto prefecture
2. To sponsor matches
3. To host parent and child soccer classes

Due to the impact of the COVID-19 pandemic,
items 2 and 3 were canceled. Instead, field LED
ads were posted behind the goals.

To continue our sponsorship by advertising at thehome stadium in Kameoka, Kyoto prefecture

Sponsorship of the
Kyoto Philharmonic
Chamber Orchestra

1. To pursue regional revitalization
through music
2. To promote cultural and artistic
initiatives

To support the orchestra as a corporate sponsor

Implemented.

To continue our participation as a corporate
sponsorSupporting the
hospitality
guesthouse of “ADream a Day inTokyo”

1. To donate to the project to support
children with intractable diseases
2. To invite children with intractablediseases and their families to travel
3. To provide support for travel throughvolunteer activities

1. To support the cause through donations
2. To participate in volunteer efforts to facilitate
travel

We submitted donations, but travel was cancelled
due to the COVID-19 pandemic.

To continue supporting the cause throughdonations

Sponsorship of theSuper GT (Nissan
Automobile
Technical College)

To provide training for maintenanceengineers by supporting student
development projects at the Nissan
Automobile Technical College

1. To participate as a race sponsor
2. To provide employment guidance

We only distributed information to prevent the
spread of the COVID-19 pandemic.

1. To participate as a race sponsor
2. To participate in employment guidanceOffering workplace
experience to juniorhigh school students

1. To support local school education
2. To promote career training

To host junior high school students for workplace
experiential learningThis initiative was discontinued to prevent the
spread of the COVID-19 pandemic.

The initiative was discontinued to prevent the
spread of the COVID-19 pandemic.

–

Fiscal 2020 Results

SocietalIssues––Fiscal 2021 Initiatives

To provide sponsorship as Platinum Partner

Corporate
ProfileCorresponding SDGs

23

ESG Initiatives of Mitsubishi Logisnext

CategoryG

Material Issue

About
Mitsubishi Logisnext

Message fromManagement

Policies

Achievement
RatingEnvironmental
IssuesGovernance
IssuesSummary of
Activities

Activity

Objective

Fiscal 2020 Initiatives

Governance reform

1. To improve the effectiveness of theBoard of Directors
2. To reform the Board of Directors
3. To promote diversity
4. To enhance discussions on businessstrategies
5. To provide information to external
officers
6. To strengthen supervisory functions

1. To enhance discussions on business strategy,
corporate governance, internal controls, andrisk management systems
2. To strengthen information provision to external
officers
3. To enhance executive training
4. To secure advance preparation time for the
Board of Directors and improve the quality ofmaterials

Implemented

1. To enhance discussions on medium- andlong-term strategies, including sustainability
2. To develop measures to protect minority
shareholders
3. To improve the quality of the management
methods employed by the Board of Directors
4. To enhance information provision to external
officers and regular exchanges between
external directors and members of theManagement Council
5. To involve the Nominating and Compensation
Advisory Committee in succession plans

Introduction of anelectronic contractsystem

1. To digitize procedures for concluding
various contracts that have been
undertaken conventionally withpaper media
2. To reduce various expenses
previously incurred to conclude
contracts and to increase operational
efficiency
3. To strengthen compliance andsecurity
4. To support various new work styles,
such as teleworking, and to improve
employee motivation

1. To examine the introduction of the Electronic
Contract System (cloud signature) and identify
associated issues
2. To introduce the system
3. To prepare manuals related to the use of thesystemIncreased the level of convenience for internal
users by linking the existing legal consultation
system with the Electronic Contract Systemdescribed at left.

1. To promote the use of the Electronic Contract
System
2. To hold in-house briefing sessions
3. To respond to inquiries from internal users
4. To provide explanations to suppliers

Convening of the
Risk Management
and Compliance
Committee

1. To ensure the permanentdevelopment of our business
operations by establishing a risk
management system andcontinuously implementing risk
management activities
2. To minimize risk by identifying
serious risks
3. To minimize risk, recover quickly, andprevent any recurrence
4. To avoid harming the interests ofcustomers, society, shareholders,
officers, and employees
5. To improve the risk awareness andrisk management capabilities ofofficers and employees to respond tosocietal needs

1. To identify, analyze, and evaluate risks every
six months and identify serious risks
2. To develop an action plan for serious risks thathave been accorded a particularly high priority
3. To appoint risk management managers at eachGroup company
4. To report to the quarterly meeting of the Risk
Management and Compliance Committee,
evaluate the status of serious risks and theeffectiveness of countermeasures, and report
the results to the Board of Directors.
5. To convene a compliance liaison meeting
comprising all general managers on a quarterly
basis

Implemented

To add the following to the fiscal 2020 initiatives
1. To formulate a manual for initial disaster
response
2. To review risk assessment standards tostrengthen Group risk management
3. To share risk assessments of Group companies
4. To conduct risk surveys at major sites
5. To launch an initiative to formulate a business
continuity plan

Establishment of anInternal Reporting
Helpline

To ensure prompt discovery ofcompliance violations

1. To accept reports and consultations regarding
acts that violate laws, regulations, andcorporate ethics
2. To accept reports from external stakeholders

Implemented

1. To accept reports and consultations regarding
acts that violate laws, regulations, andcorporate ethics
2. To accept reports from external stakeholders

Inquiry andreportingprocedures
regarding contact
with competitors
and government
procurement
agencies

To comply with the Anti-Monopoly Law
and competition laws

To have the company and Group companies
compile a monthly report on the content of andnumber of contacts with competitors andgovernment procurement agencies and submit itto the department in charge

Implemented

To have the company and Group companies
compile a monthly report on the content of andnumber of contacts with competitors andgovernment procurement agencies and submit itto the department in charge

Compliance check
related to order
optimization

To ensure appropriate order acceptance

To have the company and Group companies
compile a monthly report on the content of andnumber of compliance checks conducted andsubmit it to the department in charge

Implemented

To have the company and Group companies
compile a monthly report on the content of andnumber of compliance checks conducted andsubmit it to the department in charge

Anti-fraud
procedures

To prevent bribery and fraudulent
conduct

To undertake examinations and various otherprocedures each time a targeted gift is profferedand submit it to the head of the department incharge for approval

Implemented

To undertake examinations and various otherprocedures each time a targeted gift is profferedand submit it to the head of the department incharge for approval

Compliance training

To increase awareness of compliance

1. New employee training: Offered annually for
40 participants.
2. Promotion training for managers: Offeredannually for 20 participants.
3. Discussion training: Offered annually for 6,051
officers and employees of our Group
companies in Japan.
4. e-learning training: Offered annually for 6,017
officers and employees of all Group companies
in Japan.

Implemented

1. New employee training: Offered once a year
for 32 employees of the company and 25
employees of Group companies in Japan.
2. Training for promoted managers: Offered oncea year for 23 employees of the company.
3. e-learning training: Offered twice a year for
6,117 officers and employees of all Group
companies in Japan.

Corporate
governance,compliance,andriskmanagement

Fiscal 2020 Results

SocietalIssuesFiscal 2021 Initiatives

Corporate
ProfileCorresponding SDGs

24

AboutMitsubishi Logisnext

Corporate Profile (as of December 1, 2021)

Company Name
Mitsubishi Logisnext Co., Ltd.
Head Office
1-1, 2-Chome, Higashikotari, Nagaokakyo-shi, Kyoto
617-8585 JAPAN
Establishment
August 1937
Representative
Takashi Kubo, President
Capital
4,913 million yen (as of March 31, 2021)(Listed on the First Section of the Tokyo Stock Exchange)
Net Sales
391,496 million yen (as of March 31, 2021)
Employees
11,000 (as of March 31, 2021)

Message fromManagement

Scope of business
Development, design, manufacture and sale oflogistics system products such as electric forklifts,
engine-powered forklifts, container carriers,transfer cranes, transport robots, automatedwarehouses, and warehouse management
systems (WMS).
Locations
Head Office and Kyoto Plant, Shiga Plant, Azuchi
Plant, East Japan Head Office, On-site Training
Center, Hanyu Plant
Sales & service: Service depots at more than 400
locations across Japan
International locations: U.S.A., Netherlands,
Finland, Sweden, Spain, China, Thailand, andSingapore

Environmental
Issues

Policies

SocietalIssuesGovernance
IssuesSummary of
Activities

Corporate
ProfileDirectors and Audit and Supervisory Board Members
Takashi Mikogami
Takashi Kubo
Director
Hirokazu Watanabe
Director
Shinji Fujita
Director
Masayuki Suematsu
External Director
Ken Okochi
External Director
Osamu Ando
External Director
Kyoko Kobayashi
Audit and Supervisory Board Member
Koji Baba
Audit and Supervisory Board Member
Shinji Ichihara
External Audit and Supervisory Board Member Masahide Kuragaki
External Audit and Supervisory Board Member Yasuyuki Fukuoka
External Audit and Supervisory Board Member Shigeru Yoshimura
Representative Director and Chairman

Executive Vice President, President and CEO, Logistics,
Thermal & Drive Systems, Mitsubishi Heavy Industries, Ltd.

President

Senior Vice President, Head of Business Strategy
Office, Mitsubishi Heavy Industries, Ltd.

President, Shimadzu Access Corporation
Lawyer, Partner at Irokawa Legal Professional Corporation,
External Auditor, Kawakami Paint Manufacturing Co., Ltd.,
External Director, Nippon Pillar Packing Co., Ltd.

Networks (as of December 1, 2021)
Production bases

Major sales bases

Mitsubishi Logisnext Europe B.V.

Konosu Plant(Global Component
Technologies Corporation)

Mitsubishi Logisnext Europe AB
Mitsubishi Logisnext
Europe Oy

Azuchi Plant

Mitsubishi Heavy Industries Forklift(Dalian) Co., Ltd.
Equipment Depot, Inc.
Mitsubishi Logisnext Co., Ltd.

Mitsubishi Logisnext Europe S.A.
Hanyu Plant

Logisnext Manufacturing (Thailand)Co., Ltd.

Shanghai Nichiyu Forklift
Manufacturing Co., Ltd.

On-site Training Center
Shiga Plant
Head Office &Kyoto Plant
Onomichi Plant(Logisnext Handling
System Corporation)

Mitsubishi Logisnext
Asia Pacific Pte. Ltd.

Mitsubishi Logisnext
Forklift (Shanghai)Co., Ltd.

Mitsubishi Logisnext
Americas (Marengo) Inc.
Mitsubishi Logisnext
Americas (Houston) Inc.
Mitsubishi Logisnext
Americas, Inc.

25