IHISUSTAINABILITYDATA BOOK
2019

IHI
SUSTAINABILITYDATA BOOK
2019

CONTENTS
Editorial Policy ...............................................................................................

3

IHI Group Basic Information ..................................................................

4

IHI Group Material Issues ........................................................................

9

Reduce Environmental Impact
Environmental Management .................................................................... 12
Reduction of the Environmental Impact of Products and Services .... 17
Climate Change .......................................................................................... 19
Circular Economy ....................................................................................... 21
Environmental Protection .......................................................................... 23

Materialize an Affluent Society
Customer Relationship Management ...................................................... 26
Supply Chain Management ....................................................................... 27
Corporate Citizenship ................................................................................. 30
Human Resource Management ............................................................... 33
Diverse Human Resources ....................................................................... 35
Labor Practices .......................................................................................... 41
Human Rights ............................................................................................. 45

Principled Corporate Management
Corporate Governance ............................................................................... 47
Compliance ................................................................................................. 57
Information Security................................................................................... 61
Timely and Proper Disclosure ................................................................... 63
Risk Management ...................................................................................... 65

Performance Objectives ........................................................................... 68
GRI Standards Content Index ................................................................ 74
Search by ESG ............................................................................................... 84

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Editorial Policy
The basic concept of the IHI SUSTAINABILITY REPORT2018 is to communicate to readers the initiatives IHI is
promoting in order to provide solutions to various social
issues and realize a sustainable society.
In FY2019, we have issued IHI Integrated Report 2019
summarizing management policy, strategy and businessfoundation initiatives, as well as Sustainability Data
Book, which provides a more in-depth look at businessfoundation initiatives. The “CSR Initiatives” of our
website is a source of the latest information relating tosociety and our sustainability, and serves as a tool toprovide timely, up-to-date information.

Structure of Information Disclosure

ImportantBusiness activities

Business foundation
IHI Integrated Report

Website “IR”

AnnualSecurities
ReportWebsite“CSR Initiatives”

Corporate
Governance
ReportIHI
Sustainability
Data Book

Detailed

Scope of Data Book

Publication Date (Japanese version)

Disclaimer

IHI Corporation and its consolidated subsidiaries(Some information is based on IHI independently or
another specific scope.)

September 2019 (The previous Sustainability Report
was published in September 2018, and the next
Sustainability Data Book will be published in 2020)

PeriodGuidelines Referenced

This report covers activities carried out in FY2018(April 1, 2018 to March 31, 2019), but may also include
information prior to or after this period.

Global Reporting Initiative Sustainability ReportingStandards
Environmental Reporting Guidelines (2018 version),
Ministry of the Environment

This book contains facts, both past and present, as well
as forward-looking plans and projections based on ourbusiness plans and policies in effect as of the date ofthis report. These forward-looking plans and projections,which are based on assumptions and decisions madeas of the date of this report, are subject to change andmay be materially different as a result of actual businessor changes in company terms, conditions or policies.

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IHI Group Basic Information
About IHI (as of March 31, 2019)

Company Name
Head Office

IHI Corporation
Address

Toyosu IHI Building, 1-1, Toyosu 3-chome,
Koto-ku, Tokyo 135-8710, Japan

President

Tsugio Mitsuoka, CEOYear of establishment

December 5, 1853

Capital107.1 billion yen

Net sales (Consolidated)

1,483.4 billion yen (FY2018 ended March 31, 2019)

Employees (Consolidated)

29,286 (as of March 31, 2019)

Works

6

Branches in Japan

8

Overseas Representative Offices

14Group Companies

Group companies in Japan: 69• Subsidiary companies in Japan: 50• Affiliated companies in Japan: 19
Group companies overseas: 148• Subsidiary companies overseas: 123• Affiliated companies overseas: 25

4

Chairman of the Board

Audit & Supervisory Board
President

Audit & Supervisory Board Div.

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Information

IHI Group Basic Information
Organization

Board of Directors

Internal Audit Div.

Secretariat Div.

Corporate Planning Div.

Public Relations Div.

Legal Div.

Administration Div.

Human Resources Div.

Finance & Accounting Div.

Project Risk Management Div.
Group Business
Process Platform Div.
Monozukuri System
Strategy Planning
Procurement Strategy Planning
Technology &Intelligence Integration
Corporate Business Development &Solution HeadquartersIntelligent Information Management
Headquarters
Global Marketing &Sales Headquarters
Headquarters
Representative’s Offices
Resources, Energy &Environment Business Area
Social Infrastructure &Offshore Structure Business Area
Industrial Systems & General-Purpose
Machinery Business Area
Aero Engine, Space &Defense Business Area

Co-Creation
Project Center
Technology
Platform Center
Domestic Branch
Offices
Overseas Branch
Offices / Overseas
Representative Offices
Regional Headquarters
for the Americas
Regional Headquarters
for Asia PacificRegional Headquarters
for China

5

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IHI Group Basic Information
Corporate Philosophy and Group Vision
IHI’s primary objective is to be a good corporate citizen
that develops together with society and fulfills its social
mission in accordance with the IHI group vision andcorporate philosophies.

Group Management Policy
In April 2019, IHI launched a new mid-term management
policy “Group Management Policies 2019.”
With the aim of contributing to social sustainability
from long-term perspectives, it is a three-year plan

focused on tackling social and customer issues, andtransforming itself into an enterprise that creates newvalues.

Long-Term Approach Under Group Management Policies 2019
Tackle social and customer issues with customers and create new value
Enhance corporate
value

Corporate Philosophy
Contribute to the development ofsociety through technology
Human resources are our single mostvaluable asset

Contribute to social sustainabilityGroup Vision- IHI Group Aims The IHI Group seeks to solve the various
environmental, industrial, social, andenergy related problems of the 21st century,
through using engineering expertise
to focus on "Monozukuri" technology.
In striving towards these goals, IHI is
becoming a global enterprise offering thesafety and security for the benefit of boththe environment and humanity.
"Monozukuri" Technology means
the technology used to improve thecompetitiveness of products and services
offered, by strengthening the capabilities
required in development, design, supply,
manufacture and construction.

Earnings growth

Enhance customer value
Contribute to society,primarily by supplying
hardwareGrowingsocialissuesGroup Management Policies 2016
2016

2013
2007

Further evolve initiatives of Group Management Policies 2016
to address increasing social issues

2010

Business scale growth

Strengthen earnings foundations
Three transformative initiatives
Concentration and selection through new portfolio management
Boost profitability by reinforcing project implementation structureEmploy common Group functions to transform business model

Initiatives Under Three Years of Group Management Policies 2019
Review of Group Management Policies 2016

Group Management Policies 2019 ransformed hardware supply-centric businesses tooTslowly	Downturns persisted in certain projects
	Continued to progress with concentration and selection

Reform businesses in earnest to tackle social and customer issues

Business climate change
Accelerate technological innovations
Overall demand for infrastructure to materialize social
sustainability

Three initiatives
Strengthen businessfoundations

Accelerate aftermarket business developmentwith customers from lifecycle perspectives

Build a robust
operational structure

Create a lean andflexible operational structure

Accelerate preparations
for tomorrow

Transform our business model to create value

Cultivate human resources
as change drivers
Safety and quality

Risk management

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IHI Group Basic Information
Basic Code of Conduct
IHI believes that meeting society’s expectations is one of its basic corporate social responsibilities (CSR).
In accordance with this belief, Basic Code of Conduct for the IHI Group compiles the necessary practices we are obliged to carry out.

Basic Code of Conduct for the IHI GroupWe at the IHI Group are committed to implementing
what is necessary to meet the expectations and gain

Responsibilities toward People, Society, and theEnvironment

the trust of not only our customers, business partners,
shareholders and colleagues, but also the local andinternational communities, while keeping an awarenessof global issues. By doing so, we aim to enhance ourexistential value as we move forward into the future andrealize our Group's management principles of “Contributeto the development of society through technology" and“Human resources are our single most valuable asset."

Fundamental and Universal Principles of the
Entire IHI Group

Respect for the rule of law and ethical conduct
We strictly observe laws and ordinances based on a clear
understanding of their meaning. We also act sincerely andfairly and in accordance with high ethical standards so that we
do not violate social rules or international norms.

Respect for human rights
We fully recognize the importance of, and always strive torespect, human rights during our business activities.

Promotion of mutual understanding
In order to promote mutual understanding with those aroundus, we strive to disseminate information on our businessactivities, explain the effects of these activities on thesurrounding environment, and engage in an exchange of
opinions with our broader communities on a daily basis.

Responsibilities toward people connected with the
IHI Group via our products and services❶ We establish relationships of mutual trust with the people
with whom we are involved in the course of our business,help solve social issues in a variety of fields by using ourabilities to the utmost, and develop and provide products
and services to assure more comfortable lives for people
around the world.
❷ We pay full attention to the safety of the products andservices we develop and provide and constantly strive
to raise the quality level of our products and services byconfirming whether they satisfy customers and users.
❸ We deal appropriately with other parties in our business
transactions and seek profit fairly, while at the sametime we strive to establish fair and mutually-productive
relationships with our customers and business partners.

Responsibilities towards those with whom wework
We strive to respect mutually the character and individuality ofall people with whom we work and maintain a safe, supportive,
and comfortable environment in which we can work easily.

Responsibilities toward local and international
communities❶ With an awareness that each one of us is a member ofsociety, we actively take part in initiatives to solve theproblems faced by society.
❷ No matter the region of the world where we conduct ourbusiness, we understand the value of the culture uniqueto each region and strive to meet the expectations of people
living there.
❸ We take a resolute attitude against organizations and forcesthat threaten social order and safety.

Responsibilities toward the global environment
Based on our recognition that the global environment provides
the foundation for the existence of all societies and cultures, wetake care so as not harm that which also will be needed by future
generations and strive to protect, and reduce the burdens on,
the global environment, not only in the course of our provisionof products and services but also in all other aspects of ourbusiness activities.

Roles and Responsibilities of Senior Management

Roles of Senior Management❶ Senior Management recognizes that their role is to ensure therealization of this Code of Conduct and takes the initiative todemonstrate leadership in order to put the purposes of thisCode of Conduct into practice.
❷ Senior Management ensures that this Code of Conduct isknown to all people with whom they work and constantly
strives to establish, maintain, and improve effective internal
systems and to enhance our corporate value.

Responsibilities of Senior Management
If a violation of this Code of Conduct occurs, Senior Management
will strive to take the initiative to solve the problem, discoverits cause, and prevent the recurrence of similar violations. They
also will promptly disclose accurate information to society, clarify
the responsibilities and scope of the authority of the persons
involved, and impartially take disciplinary action even uponthemselves.

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IHI Group Basic Information
Sustainability Promotion System
The heart of IHI’s sustainability system is the CSR
Committee, in which the president serves as thechairperson, executive officer in charge of CSR serves
as the vice-chairperson and general managers of head
office divisions and presidents of business areas serveas members.
The CSR Committee meets once a year and is a place
for management executives to consider societyʼs
expectations, and discuss basic policies and measuresrelating to sustainability.
Approved agendas at the CSR Committee meeting are
deployed in detail to the CSR Liaison Group, which iscomprised of managers from business areas and head
office divisions.

Sustainability Promotion System

Dialogue with Stakeholders
We adopts various approaches to facilitating dialogue
with its stakeholders; namely, customers, suppliers,
government, shareholders/investors, local communities,
and employees. We publish the Integrated Report andSustainability Data Book as communication tools.
We come to learn what societyʼs expectations arethrough dialogue with stakeholder, and reflect thesein corporate activities and report especially importantdialogue to the Management Committee or Board of
Directors.

Main Dialogue Activities with Stakeholders
Stakeholders

Main engagements and methods● Sales activities

Customers● Customer satisfaction surveys● Product/service information on website● CSR questionnaires

Board of Directors● Procurement activities● Explanation of IHI Group Procurement

Management Committee[Chairperson] Chief Executive Officer (CEO)CSR Committee[Chairperson] President[Secretariat] Corporate Planning Div.

Head Office Divisions

Suppliers● Supplier award system

Governmentorganizations
Shareholders& investors

Business Areas

CSR Liaison Group(CSR management of each division and area)

Dialogue

Policy● Reviews of quality management systems

Local
communities
Employees● Relevant laws & regulations● Notifications, permission and authorization● General meeting of shareholders● Financial results briefing● Factory tours● Institutional investor visits● Activities contributing to local

communities, (sponsorship of traditional
events, atrium concerts, etc.)● e-learning (questionnaires)● Employee-awareness surveys

Stakeholders

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IHI Group Material Issues
Material issue identification process
IHI has identified the “material issues” it must prioritize
in order to realize a sustainable society, and group
growth.

Material issue identification process

Step 1

Extract material issues
Exhaustively extracted 51 issues
from guidelines on non-financial
information disclosure, etc.

Step 2

Confirm conformity
with businesses

Pursuing material issues as the foundationof business operations

Pursuing material issues through business
operations

We separated the 14 material issues underpinning ourbusinesses into the categories of environment, socialand governance.
We disclose ESG management along with eachmaterial issue. Please refer to the following pages on
Sustainability Data Book 2019.

Below are the 9 material issues we pursue throughbusiness. Activity themes are set for each material
issue individually. We work to solve social issues
through business while revising these activity themes
as necessary.

Environment —Reduce Environmental Impact—

P11

Climate change ..................................................... P19
Circular economy .................................................. P21

Step 3

Identify material issues● Control and reduce consumption of natural

Climate change

Corporate citizenship ............................................ P30
Diverse human resources..................................... P35
Labor practices ..................................................... P41

emissions, including CO2

Corporate governance .......................................... P47
Grouped the 20 issues into the following two
categories.

Compliance ........................................................... P57

1. Pursuing material issues as the foundation ofbusiness operations
2. Pursuing material issues through business
operations(provision of products/services)

Timely and proper disclosure...................... P26 , P63

Information security.............................................. P61
Risk management................................................. P65● Control and reduce consumption of

resources● Expand anti-pollution measures (seven

Environmental
protection

types of pollution)● Prevent chemicals in products from being

released into the atmosphere● Protect native species

Stable supplyof energy andresources

Human rights .............................................. P27 , P45
Governance —Principled Corporate Management— P46

resources (fuels)● Control and reduce greenhouse gas

P25

Customer relationship management .................... P26

Priority Activities● Increase energy efficiency

Circular economy

Society —Materialize an Affluent Society—Helping to Solve Social Issues

Material Issues

Environmental protection ..................................... P23

Supply chain management ................................... P27
Concentrated into 20 issues throughcorrelation with domestic issues,
IHI's various policies and business
content.

Reference

Building andmaintaining social
infrastructure● Contribute to balancing of environmental

consideration and stable energy supply● Develop and utilize resources replacing

fossil fuels and rare metals● Renew and extend life of aged

infrastructure● Disaster recovery support● Improve infrastructure of each country● Compact, functional urban development

Advancement ofmobility society● Optimize the mobility of people andStrengthening andsophistication of“Monozukuri”● Evolution of industrialization

Utilization ofaerospace
Securing safe andstable living

materials● Evolution of products and services● Utilization of IoT/ICT, AI● Efficient and reliable means of aerospacetransportation● Utilization and application of acquired data
● Alleviate safety and security issues

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IHI Group Material Issues
Initiatives targeting Sustainable Development Goals (SDGs)
Sustainable Development Goals (SDGs) were adopted by the United Nations in 2015.
IHI believes that one of society’s expectations is for companies to contribute to theachievement of these SDGs, therefore we identified material issues with consideration
to each of the SDG targets.
In Group Management Policies 2019, our mid-term management plan starting in
FY2019, we have linked the direction aimed for by each business area with SDGs.
With the aim of creating a sustainable society, we will contribute to the achievement of
the SDGs through our business.

IHI Group Business Area Direction
Create new value needed for social sustainability

Resources, Energy & Environment

Social Infrastructure &Offshore Facilities

Contribute to carbon-free and recycling
societies by providing optimal integrated
solutions for each region and customer

Contribute globally and across life cycles
to materialize safe and secure social
infrastructures, centered on bridges and tunnels

Shared business goals

Contribute to industrial infrastructure
progress by thoroughly optimizing
operational lifecycles with customers

Leverage advanced technology to open new vistas for
air transportation, defense systems, and space utilization,and help materialize social affluence and safety

Industrial Systems &General-Purpose Machinery

Aero Engine, Space & Defense10

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ReduceEnvironmental
ImpactEnvironmental Management . . . . . . . . . . . . . . 12
Reduction of the Environmental
Impact of Products and Services . . . . . . . . . 17
Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Circular Economy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Environmental Protection . . . . . . . . . . . . . . . . . . 23

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Environmental Management
Basic Policy
In Group Management Policies 2019, IHI spells out
its commitment to creating new value for sustainable
societies. Accordingly, IHI again confirmed our directionof reducing is combating by working continuously to
reduce the environmental impact of various aspects
throughout society, seizing business opportunities anddeveloping new business models in order to solve
climate change and other environmental issues.
We have been obeying environmental laws/regulations
and reducing the environmental impact of our plants andoffices in regional areas as priority. In addition, we also
propose solutions for the reduction of CO2 emissions
based on life cycle CO2 assessment of our products andservices.

IHI Group Basic Environmental Policy
Article 1. Establishment of Environmental
Management System
To ensure continuous improvement ofenvironmental management, the IHI Groupestablishes an environmental management
system, sets specific objectives and executes
an action and a performance evaluation.

Article 2. Compliance with Environmental Laws
and Regulations
The IHI Group complies with environmentrelated laws and regulations/agreements,
policies/plans in related industries, andstrives to stipulate and apply independent
management standards to enhanceenvironment management.

Article 3. Provision of Environmentally-Friendly
Products
The IHI Group provides the society with the

products/services that contribute to reducing
environmental burdens.

Article 4. Reduction in Environmental Burdens in
Business Activities
The IHI Group strives to preserve environmentand reduce environmental burdens in all of its
business activities.

Article 5. Environmental Education
The IHI Group, through environmental

education, raises awareness of all people
engaging in operations, including officers,
employees, and temporary staff of IHI Group
companies, thereby they are able to act having
concern with environmental problems on theirown.

Article 6. Disclosure of Information
The IHI Group actively participates in thesociety, disclose information, and develop
communications to commune with local
communities and preserve regional
environment.

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Environmental Management
Targets
IHI formulates an Environmental Action Plan every
three years and promotes environmental activities
accordingly.
For the new 3-year plan covering FY2019 – 2021,
Environmental Action Plan 2019, the following
three major themes have been established; Reduce
environmental impact through products/services, reduce
environmental impact in factories, offices, etc., andcultivate human resources to promote environmental
management.

Action Plan
Reduce environmental impacts
through products and services

FY2021 Targets
We are performing studies to formulate targets with CO2 emission as theindex.
No major violation of environmental laws/regulations and environmental
accidents
Reduce CO2 emissions intensity by more than 3% compared to FY2018

Reduce environmental impact infactories, offices, etc.

Reduce energy intensity by more than 3% compared to FY2018
Waste generation for each fiscal year from FY2019 to FY2021 will not
exceed that of FY2018.
Water consumption for each fiscal year from FY2019 to FY2021 will not
exceed that of FY2018.

Cultivate human resources topromote environmental management

Develop professionals who can carry out environment management

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Environmental Management
Results
The status of achievement for the IHI Group Environment Action Plan 2016 covering the period between FY2016 and FY2018 is shown below.

Activity Plan

FY2018 Targets

FY2018 Results

Reduce environmental impact of
products and services

Reduce emissions from products and services by more than 10 million tons of CO2

Contribution amount exceeds
2.5 million tons per annum

Reduce environmental impact ofour business activities

Promote group environment
management

Environmentally friendly products accounted for 70% of net sales

Certifications: 18

Reduce energy intensity1 by more than 3% compared to FY2015

Up 1.6% compared to FY2015

Reduce CO2 emissions2 intensity1 by more than 3% compared to FY2015

Up 5.2% compared to FY2015

Reduce waste generation intensity1 by more than 3% compared to FY2015

Down 3.9% compared to FY2015

Reduce water consumption intensity1 by more than 3% compared to FY2015

Up 4.8% compared to FY2015

No major violation of environmental laws/regulations or environmental accident

No incident

Environmental e-Learning participation rate: 100%

Course completion ratio: 85.6%

Earn “management” or “leadership” rating in CDP climate change evaluation

Management level B

Nikkei Environmental Management Survey score of 400 or higher (out of 500)

437

1 Net sales as the denominator.
2 The emissions coefficient by electricity retailer was used to calculate CO2 emissions based on electricity consumption.

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Environmental Management
Management System
The Environment Committee oversaw our environmental
activities. From this year, the Environment Committee
has been strengthened separating environmental
impact-reducing initiatives into two categories: products/
services (proactive environmental activities) andplants/offices (reactive environmental activities), withthe former the former category under the Corporate
Planning Division and the latter under the Administration
Division, Environment Group.
The decisions are shared with principal domestic andoverseas affiliates through the Environmental Officers
Liaison Group in each Business Area/SBU*.
Furthermore, business areas and SBUs formulate an
Environment Action Plan in line with individual themes
to reduce environmental impact; such as capital
investment to reduce environment risk, observing laws/
regulations, energy-saving, and reduction of waste
generation. Then they follow up on own progress byusing the PDCA cycle.
* SBU: Strategic Business Unit (the strategic base unit under eachbusiness area)

Environmental Management Systems Diagram
Chief Executive Officer (CEO)Management Committee
Environment Committee[Chairperson] Executive Officer in charge of CSR[Secretariat]	Corporate Planning Div.,
Environment Group, Admin Div.

Environmental Management
Officers Liaison Groupin each Business Area/SBU

Environmental Management
Officers Liaison Groupin each Regional OfficeBusiness Areas

Headquarters
Representative’s Offices

Collection of Environmental Information
The scope of our environmental-management activities
includes consolidated group companies, including
overseas affiliates.
The Group companies appoint their own General
Environmental Officer and Environmental Management
Officer. Also, each environmental management center,
which is the minimal unit of individual company’senvironmental activities, is responsible for practicalenvironmental activities.
The Group companies targeted by environmental
management cover various different business types,

such as companies with plants which conduct
production activities, companies with the primarybusinesses of engineering and on-site construction
work, and companies without plants and only an
administrative department. While confirming the flow ofenergy, water, etc. for each environmental managementbase unit, we are pushing ahead with building of asystem to efficiently collect environmental information.
The FY2018 data shows figures current as of July 1,
2019.

ISO14001(Environmental Management System)
With a focus on bases engaging in major production
activities, IHI obtains EMS (Environmental Management
System) certification for individual environmental
management base units, and repeats a PDCA cycle forenvironmental management activities. The results ofactivities are evaluated through periodic internal audits
and external reviews, and IHI endeavors to improve ourlevel of environmental management.
In FY2017, IHI obtained EMS certification for around
70% of its environmental management bases withproduction scales of a certain scale. EMS certification
is obtained by selecting a review body considered themost suitable for the business activities of the individual
environmental management base.

ISO14001 Certification

Around 70%*

* No. of bases with ISO14001 Certification ÷ No. of environmental
management base units with a certain fixed production scale or
more

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Environmental Management
Employee Awareness

Third-party Evaluation

In addition to each IHI business location acquiring ISO14001 certification on its own, IHI
provides these locations with level-specific environmental guidance through group-wide
education and training.
IHI conducted level-based training for employees in their third year of employment
and e-learning for all employees of affiliates in Japan. The aim is to raise employee
awareness of our environment-focused initiatives and its obligation both to protect theenvironment and reduce the company’s impact.
Outside specialists provide education on energy efficiency and chemical management.
Also, location-specific environmental training is conducted by internal and external
experts to improve the skills of specialized personnel in specific regions, worksites andmajor group companies. Other training is organized to improve the skills of ISO14001
internal auditors and the effectiveness of environment-related activities.
Every June is “Environment Month” at IHI, where employees complete anenvironmental quiz to heighten their awareness of the environment.

Target of education and training
Specialized education and training

Main education and training content
	
Education of specialized environment

personnel by outside specialists

General training(Target: Employees with specific ranks)	Training in 3rd year of employment

General training(Target: All employees)

	
Environment quiz during Environment

We disclosed information on IHI business by responding to questionnaires of third
parties.
Our efforts to operate group companies in an environmentally friendly manner led to
improved ratings by third parties.

FY2016
CDP Climate
Change1
Nikkei Environmental
Management Survey(total number ofmanufactures)2

FY2017FY2018A−

B

B(Leadership level)(Management level)(Management level)429(75/396)431(77/395)437(70/360)

1 The CDP is a non-profit organization established by responsible investors worldwide. Every year
it discloses the results of questionnaires sent to corporations and local governments, aiming toencourage more action in tackling climate change.
2 Nikkei Inc. conducts an annual survey of Japan's leading companies to evaluate their environmental
initiatives and business efficiency, and then publishes the scores and rankings of each company. The
full score is 500. The number in parentheses indicates the rank / total number of manufacturers.

e-Learning
Month

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Reduction of the Environmental Impact of Products and Services
Environmentally Friendly Products
Certification Scheme
Since FY2014, IHI has been running an Environmentally
Friendly Products Certification Scheme to promote
reduction of environmental impact of products andservices.
This is an in-house certification scheme to identify
products and services offered by IHI with outstanding
environmentally friendly performance helping to protect
the environment or reduce environmental impact.
By offering society a higher number of eco-friendly
products and services, we are helping to reduce theimpact on the planet’s environment overall, and protect
the environment.

Certification Process
The Environmental Committee, a group-wideorganization, determines and evaluates products
for review. Under the scheme, the environmental
performance of products and services is evaluatedagainst self-established criteria and those exhibiting
particularly outstanding performance are designated“environmentally friendly products.” The review
examines whether or not environmentally friendly
factors have been incorporated in products throughout
each lifecycle stage, and evaluates based on the fivecriteria shown in the table in the right.

Propose certification planfor products and services

Evaluate environmental impact of
products and services

Energy efficiency

Reduced greenhousegas emissions

Resource saving

Reducedenvironmental
risks

Biodiversity
protection

Improves energy efficiency andrecovers exhaust energy,
and/or achieves energy-loadleveling

Reduces, absorbs, captures,stores and decomposes
greenhouse gas emissions;produces renewable energy;
and/or reduces fluorocarbons
Reduces natural-resource
consumption during the
manufacture, usage ormaintenance stages, and/or
facilitates recycling

Reduces waste/pollution in termsof air, water, soil, noise, vibration,
ground subsidence and/or odors,
and/or facilitates environmentaldata monitoring

Helps to protect habitats and/or
locations around facilities from anecological viewpoint

Assessment and certification(IHI Environment Committee)

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Reduction of the Environmental Impact of Products and Services
Environmentally Friendly Products

Certified Products

Products and services designated “Environmentally
Friendly Products” are as shown in the right table.
IHI products and services, including certified products,
are introduced on the below website.

Reference

Evaluation items
Products and services

Energyefficiency

Reducedgreenhousegas emissions

Resource
savingReducedenvironmental
risks

Biodiversity
protection

IHI-WORLD
Active Noise Control System
Silencer/Enclosure
Noise/Vibration Consultation
Diesel Engines
Life Cycle Administrator (LC-A)
TF - Detector
MF - Detector
Energy-saving parking system
NPC24H Tachikawa Midori-cho No.2
Parking Lot
IHI IC Reactor
ORC Power Generator HEAT INNOVATOR®
LNG Smart Satellite
Industrial photovoltaic power system
Technology for cleaning, chipping and cutting surfaces
without using water
Cycle Management Systems
Turbochargers for Vehicles
ORC Power Generator
Heat Recovery HR Series
IWV-34C Vacuum Degreaser
Toyosu Foresia Environmentally Friendly Building
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Climate Change
Basic Policy
IHI considers climate change a major management
issue.
In May 2019, following a resolution passed by the
Board of Directors, IHI became a signatory to thepolicy recommendation of the Task Force on Climaterelated Financial Disclosures (TCFD). The framework
for information disclosure recommended by the TCFD
comprises of four themes—Governance, Strategy, Risk
Management, and Metrics and Targets—which are thecore elements of organizational management. By using
this framework as a tool for formulating strategy, we
aim to strengthen our risk management and develop
related business opportunities.

Targets
We plan to establish our long-term target for GHG
emissions reduction by the end of FY2019.

Action Plans
Reduce theEnvironmental
Impact of
Products andServices
Reduce theEnvironmental
Impact of
Our Business
Activities

Reducing Energy Consumption and
GHG Emissions

Results

Targets

We are performing studies toformulate targets with CO2emission as the index.

Reduce CO2 emissions intensity
by more than 3% compared to
FY2018 (Target year: FY2021)
Reduce energy intensity by morethan 3% compared to FY2018(Target year: FY2021)

KPI

Targets

CO2
emissions
intensity*

Down 3%compared to
FY2015

Energyintensity*

Down 3%compared to
FY2015

Target Year

FY2018 Results

2018

22.2 (ton CO2/100
million yen)
Up 5.2% comparedto FY2015

2018

39.3
(TJ/10 billion yen)
Up 1.6% comparedto FY2015* Net sales as the denominator.

Management System
Our initiatives and material issues relating to climatechange are discussed at Board of Directors’ meetings inlight of deliberation by the Environment Committee andManagement Committee.

Reference

 nvironmental ManagementE
Management System (P15)

IHI is exerting effort to reduce CO2 emissions. The
concept for this combines energy-saving activities formore efficient energy usage and activities promoting
greater usage of low-carbon energy.
We engage in energy-saving activities from bothaspects of operations improvement and capital
investment. In terms of operations improvement, weare promoting optimal operational management using
energy management standards, holding energy-saving
training led by outside specialists, improving load
capacity and promoting a modal shift through proactive
ship usage. In terms of capital investment, we are
updating our aged equipment to energy-efficient one.
In utilization of low-carbon energy, we are considering
using carbon intensity as a new evaluation index, topromote conversion to fuel with a low CO2 emissions
coefficient, introduction of renewable energy, etc.

Risk and Opportunity due to Climate Change
In Group Management Policies 2019, we formulated
business strategy with consideration to factors changing
the external environment in the mid-to-long term,such as climate change. We plan to conduct scenario
analyses regarding those businesses potentially
impacted by climate change.
Also, climate change could affect our business
operations. To prepare for climate-related disasters,
our business sites and divisions are formulating BCP(business continuity plans).

Reference isk ManagementR
Anti-Disaster Initiatives (P67)
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Climate Change
Performance Data
FY2015FY2016FY2017FY2018

325,545

316,914330,162

329,602

Direct (Scope1) CO2 emissions

-

-

-

80,032

Energy indirect (Scope2) CO2 emissions

-

-

-

249,570

21.1

21.3

20.8

22.2

Energy consumption (TJ)

5,962

6,015

6,087

5,828

Energy intensity2 (TJ/10 billion yen)

38.7

40.5

38.3

39.3

CO2 emissions1 (ton CO2)

CO2emissions intensity1, 2(ton CO2/100 million yen)

Coverage: Consolidated basis (include overseas)
1 The emissions coefficient by electricity retailer was used to calculate CO2 emissions based on electricity consumption.
2 Net sales as the denominator.

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Circular Economy
Basic Policy

Results

In order to realize a sustainable society, IHI improves
resource efficiency and reduce environmental impact
through appropriate management of waste and water
resources.
Regarding waste, in addition to promoting 3R (Reduce,
Reuse, Recycle), we are appropriately managing anddisposing of waste generated by each environment
management base unit.
In terms of water resources, we are appropriately
managing water resource consumption through the
optimal maintenance of equipment.
Meanwhile, as for chemical substances, we haveestablished the IHI Group’s Basic Policy on Chemicals
Information Management, which identifies prohibited
substances and controlled substances regulated in laws/
regulations in the country/region where our products
and services are to be released.

Targets
Action Plans
Reduce theEnvironmental
Impact of
Our Business
Activities

Toxic Waste

KPI

Targets

Waste
generation
intensity*

Down 3%compared to
FY2015Water
consumption
intensity*

Down 3%compared to
FY2015

TargetYear

FY2018Results2018

1.96 (ton/100
million yen)
Down 3.9%
compared to
FY2015201828.2 (1000 m3/10
billion yen)
Up 4.8%compared to
FY2015Since FY2009, IHI has been detoxifying electric
equipment containing highly concentrated
polychlorinated biphenyl (PCB). As of March 2019,
detoxification had been completed on 99.7% of such
equipment.
The same processing has been completed for 95.5% of
low-concentration PCB and 48.8% of stabilizers.

Water* Net sales as the denominator.

Management System
Our initiatives and material issues relating to circular
economy are discussed and determined by theEnvironment Committee, the companywide committee
chaired by the Executive Officer in charge of CSR.

Reference

As a measure to prevent water leakage fromunderground pipes, IHI is systematically replacing aged
pipes.
When we make such replacements, in order to ensure
early detection of leaks, we adopt various approaches,such as installing pipes aboveground, installing pipes inunderground housing, and using overhead pipes withsupports to protect them.

 nvironmental ManagementE
Management System (P15)

Targets
Waste generation for each fiscal
year from FY2019 to FY2021 will
not exceed that of FY2018.
Water consumption for each fiscal
year from FY2019 to FY2021 will
not exceed that of FY2018.

Waste
IHI engages in efforts to improve yield in our plants
and transform waste into resources through separating
garbage upon disposal.
In terms of waste management, we are ensuring
waste is appropriately disposed of through checking
outsourcing contracts relating to the collection,transportation, and disposal of waste, checking thefinal disposal on an electronic manifest, and visits tointermediate and final waste disposal sites.

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FY2015FY2016FY2017FY2018Waste generated (ton)31,39430,531

28,69129,010Waste generated intensity* (ton/100 million yen)

2.04

2.05

1.80

1.96

Water Consumption (1000 m3)

4,148

4,169

3,776

4,182

26.9

28.0

23.7

28.2

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Circular Economy
Chemical Substances
In accordance with the IHI Group’s Basic Policy on
Chemicals Information Management, IHI organizes astructure to share customer requirements relating to
products containing chemical substances.
In regards to the supply chain, we discuss witheach business area whether they will introduce
chemSHERPA, a scheme to communicate information
on chemical substances in products. As for chemicals
subject to the PRTR Law, we assess discharge into theair, public waterways and soil, as well as transfer tosewers and waste.
Regarding VOC (Volatile Organic Compounds), we aresuppressing emissions into the atmosphere basedon the Voluntary Action Plan for Establishing a Sound
Material-Cycle Society by the Japan Society of Industrial
Machinery Manufacturers.

Performance Data

Water Consumption Intensity*(1000 m3/10 billion yen)
Coverage: Consolidated basis (include overseas)* Net sales as the denominator.

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Environmental Protection
Basic Policy
In order to sustain business activities at its worksites,
plants, etc. IHI engages in environmental conservation
on a daily basis to ensure it does not adversely
impact the health or living environments of people insurrounding communities in relation to the seven major
types of pollution (air pollution, water pollution, soil
contamination, noise, vibration, subsidence and foulodor).
To achieve this, of course we must comply with all
related laws and regulations, but we also have antipollution agreements with government and local
residents in each region where we have operations andpromote environmental conservation activities which
better suit the respective region’s circumstances.
Many of our worksites, plants, etc. are situated near thesea; therefore water pollution prevention measures are
particularly imperative. Other important themes are theappropriate disposal of industrial waste and measures
to prevent soil contamination from leakage of the oils,
lubricants, chemicals, etc. used in our plants, etc. We
stay on guard by conducting regular internal audits,
environment patrols, etc. as part of our environmental
management system, and do our best to prevent
environmental accidents.

Targets

Water Pollution Prevention

Action Plans

Targets

Reduce theEnvironmental Impact of
Our Business Activities

No major violationof environmental
laws/regulations orenvironmental accident

Results
Targets

FY2018 Results

No major violationof environmental
laws/regulations orenvironmental accident

IHI monitors the quality of wastewater discharged fromplants, one of many ways it protects public waters(oceans, rivers, etc.) at wastewater discharge points.
For this reason, not only is daily maintenance essential,
but also is the replacement of aged wastewater
treatment equipment, devices, and measurement
instruments.
In FY2018, we replaced and began using wastewater
treatment facilities.
We also positioned prevention of leaks fromunderground pipes, which are often hidden from view,as a key issue, and perform checks of water quantity
in set zones, replace underground pipes, prepare
underground piping diagrams, etc.

No incidentManagement System
Our initiatives and material issues relating toenvironmental conservation are discussed anddetermined by the Environment Committee, thecompanywide committee chaired by the Executive
Officer in charge of CSR.

Reference

 nvironmental ManagementE
Management System (P15)23

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Environmental Protection
Soil Contamination Prevention
IHI prevents leaks of hazardous substances throughregular patrols of its business sites, replacement ofaging equipment, etc. Moreover, at the 68 production
bases including former factory sites, we conduct
surveys into the usage history of specific harmful
substances* and oils. The survey results are compiled
in a database, and utilize this when changing a factory’s
traits.

Performance Data
Compliance with Environmental Laws andRegulations
Aiming to reduce environmental accidents, violationsof environmental law, etc., and prevent recurrence, IHI
evaluates the level of importance and analyzes factors
behind occurrence.
In FY2018, there were no major environmental
accidents or legal violations.

* Including lead, hexavalent chromium and mercury, which are listed in
Article 2 of Japan’s Soil Contamination Countermeasures Act

FY
2015

FY
2016

FY
2017

FY
2018

Significant
environmental
accident

0

0

0

0

Major violation ofenvironmental
laws/regulations

0

0

0

0

No. of cases IHI paidfines, penalties, etc.

0

0

0

0

1 Biodiversity

IHI helps to preserve biodiversity by promoting activities
liaising with the communities surrounding our businesssites, and awareness-raising activities for our officers
and employees.

Reference orporate CitizenshipC
Environmental Protection (P31)

Coverage: Consolidated basis (include overseas)24

I H I SUSTAINABILITY DATA BOOK 2019

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Customer Relationship Management . . . . . 26
Supply Chain Management . . . . . . . . . . . . . . . . 27
Corporate Citizenship . . . . . . . . . . . . . . . . . . . . . . . . 30
Human Resource Management .. . . . . . . . . . 33
Diverse Human Resources . . . . . . . . . . . . . . . . . 35
Labor Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

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Customer Relationship Management
Basic Policy
IHI satisfies customers and gains their trust byleveraging technology to offer safe, useful products andservices that meet real needs in society. The qualityof products and services forms the foundation of trust
between IHI and our customers and society, therefore
we consider securing quality as our corporate social
mission and a fundamental element of our existence.

Employee Training and Education
Based on our corporate philosophy of “human resources
are our single most valuable asset,” IHI maintains a
training system aimed at strengthening awarenessof quality management systems, quality assurance,
quality control, and product safety to improve customer
satisfaction. This training system includes courses all
employees must complete as part of position-specifictraining.
Our new recruit training is designed so that participants
will appreciate the importance of having a customer
perspective from an early stage. For training of 2ndyear employees, we focus on quality, PDCA cycle, andwork procedure. For training of 3rd-year employees,
the emphasis is on the ethics, environment and safety
as a monozukuri company. Each business area also
maintains independent training systems.
Also, in relation to compliance with company rules andmajor laws/regulations, IHI has an e-Learning-basedawareness/problem-presenting system, promotes
activities to prevent violation of quality-related rules, andreduce risk.

Employee Training and Education (FY2018)
CourseNo. ofparticipants

Internal auditor training105

3rd-year employee training on quality
management and product safety

352

Training seminar for newly-appointed
foremen and assistant foreman of
manufacturing divisions focused on
problem solving and issue achieving
for quality management

101

Training related to quality and productsafety (3 seminars/total of 6 sessions)472

Disclosure of Information about Products
and Services
IHI is carrying out a continuing series of media
campaigns, including via advertisements on TV,
newspapers and the Internet, to introduce its productand service information to the public, raise awarenessof IHI and bring IHI closer to people’s everyday
lives. The campaigns are closely coordinated with
relevant divisions to ensure that accurate information
is provided to customers and other stakeholders. In
addition, precautions are taken to ensure compliancewith laws and regulations, such as the Copyright Act
and the Trademark Act, and related industry rules
and regulations. Moreover, effects of the campaigns
are monitored regularly to identify opportunities for
improvement.

Product Safety
IHI is constantly working to enhance the safety of its
products considering the product life cycle. We conduct
a risk assessment considering the product’s life cycleand design to reduce risk as much as possible. We theninform our customers of any residual risk.

Performance Data
No. of law/regulation violations (FY2018)
Laws/regulations
Laws/regulations relating
to PR activities

No. of violations
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Supply Chain Management
Basic Policy
IHI Group Procurement Policy is based on three core
principles − fair and impartial procurement, mutually
beneficial partnerships with business partners andsatisfying compliance and societal needs.
The procurement of materials or equipment involves
not only compliance with legal requirements but
also consideration of human rights, the environmentand conflict minerals*. In addition to education for
employees, IHI also distributes this policy to our major
business partners and requests that they too promotecompliance with laws and social norms, paying attention
to human rights, labor conditions, and occupationalsafety and health, ensuring optimal quality, cost anddelivery conditions, enhancement of competitiveness,
respect for the environment and information disclosure.
* Minerals from conflict regions that, if purchased, sometimes
result inadvertently in funding armed insurgents or fuelingregional disputes.

IHI Group Procurement Policy
Basic Procurement Policy

Request to Our Business Partners

1. Fair and Impartial Procurement

The IHI Group works on the following values topromote our business activities. We ask for the
co-operation and understanding of our business
partners with regard to the promotion of thesevalues.
1. Compliance2.	Paying Attention to Human Rights, Labor
Conditions, and Occupational Safety and Health
3.	Ensuring Optimal Quality, Cost and Delivery
Conditions
4. Enhancement of Competitiveness5. Respect for the Environment
6. Information Disclosure	We provide business opportunities in an open
manner to business partners from around theworld, and welcome working with creativeand competitive business partners. We also
evaluate and select business partners in acomprehensive and fair manner based on
factors such as quality, price, delivery schedule,
technology and financial conditions.
2. 	Mutually Beneficial Partnership with ourBusiness Partners
	We regard our business partners as value
creators, and through seeking to realize optimallevels for quality, price and delivery, together
with procurement reliability, we aim to establish
relationships of trust with our business partners
and bring about the mutual enhancement ofcompetitiveness and prosperity with them.
3. Approach to Compliance and Social Needs	We comply with the related laws that govern
our local and global businesses. In addition, we
promote procurement activities that prioritize
factors such as the environment, human rights,
labor conditions, occupational safety and health,and information management.

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Supply Chain Management
Initiatives for Legal Compliance

IHI Group Policy on Conflict Minerals

IHI conducts internal training on procurement-relatedlaws, such as Japan’s Act Against Delay in Payment
of Subcontract Proceeds, etc. to Subcontractors(Subcontractors Act) and the Construction Business Act.
Internal training courses are now offered to not only the
procurement division, but also to all divisions to which
the Subcontractors Act and Construction Business Act
are believed relevant. Moreover, we provide e-Learning
training for procurement officers to instill knowledge
required to engage in regular work, such as knowledge
on the Subcontractors Act, Construction Business Act,
import declarations, and appropriate subcontracting
systems.
Also, each of our procurement division carries out
voluntary inspections of the Subcontractors Act
and import declaration tasks. In order to confirm
such operations are being performed appropriately,
implement improvements where required, and also
provide guidance on improvements through internal
audits.

Participants in procurement training (FY2018)
No. of participants
Subcontractors Act training
seminar

120

Construction Business Act
training seminar

93

Overseas procurement
training seminar

231

Outstanding Suppliers

We have established the IHI Group Policy on Conflict
Minerals as part of the IHI Group Procurement Policy,
and are engaging in procurement activities to suit. As
a company policy, IHI will not procure raw materials,
parts, or products that contain conflict minerals
produced in the Democratic Republic of the Congo or
its adjoining countries. We have also conveyed thispolicy to our major business partners to ask for theircooperation in disclosing information relating to conflictminerals if requested by our clients.

IHI awarded suppliers for their high achievements andthereafter strengthened its partnerships with thesecompanies. In FY2018, the following three companies
were presented Appreciation Awards.

IHI Group Procurement PolicyIHI Group Policy on Conflict
MineralsDalianshi Jinzhou Dongfang Zhugangchang

Reference

Response to Anti-social Forces and Anticorruption
In the terms of our contracts with business partners,
IHI stipulates that our business partners will haveno relationship whatsoever with anti-social forces,
and will not commit acts of bribery toward overseas
state officials prohibited by the Penal Code and Unfair
Competition Prevention Act or any other acts such asacts of bribery prohibited by laws of any country. If abusiness partner is guilty of such an act, we seek its
cooperation for reporting and investigation purposes.

Dalian Xindong Machinery Co., Ltd. (China)
Possesses outstanding welding technology and hasdelivered high-quality steel structural parts primarily forcompressors.

(China)Possesses excellent technological capabilities forusing a broad range of materials to manufacture forgedproducts, mainly for boilers and compressors.

DEE Development Engineers Ltd. (India)
Using highly efficient precision-manufacturing, thecompany supports IHI’s stable supply of pipes andjoints for boilers and plants.

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Supply Chain Management
Strengthening Procurement Capacity of theGroup Overall
IHI has established Product-Specific Expert Councils
to strengthen group wide procurement capabilities.
Council members endeavor to build optimal
procurement networks for the Group by reviewing
product specifications and suppliers in collaboration withbusiness areas. These efforts cover key items common
to the entire Group, including steel and electrical
products.
Furthermore, in terms of procurement from China
and Taiwan, until now each business area and groupcompany had procured materials independently, but
now the Group has combined its purchasing knowhow and supplier information, and strengthened liaison
with the Chinese headquarters to increase efficiency indeveloping new suppliers and aggregating them, as well
as sharing best practice.

Developing Global Procurement Professionals
In order to expand our business globally, the IHI Groupwill build the optimal supply chain while developing new
suppliers on a global base as required. As such, IHI also
focuses on nurturing global procurement officers andaccepts local employees of overseas group companies
for training in Japan, as well as provides employeesof group companies in Japan with training in overseas
procurement.
We will continue group-wide efforts to develop
procurement professionals who can operate on a global
level.

Procurement Cost Reduction Initiatives
IHI holds once-annual Procurement Cost-reduction Case
Study Presentations for the promotion of Group efforts
to reduce procurement costs and share best practices.
The presentations introduce outstanding internal
examples of improving and standardizing procurement
specifications, improving competitiveness by shifting
to global multisourcing and concentrated purchasing.
At a presentation held in March 2019, 7 of the 81 casestudies were deemed outstanding and were therefore
specially commended and then shared within theGroup.

Overseas Procurement Network

Tokyo, Japan
London, UK
New York, USA
Shanghai and Dalian, China
Seoul, South Korea
New Delhi, India
Bangkok, Thailand
Singapore
Kuala Lumpur, Malaysia
Ho Chi Minh City and Hanoi, Vietnam

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Corporate Citizenship
Basic Policy

Targets

With the belief that “Meeting society’s expectations” is one of our corporate social
responsibilities, the IHI Group engages in social contribution activities.
Of the UN’s Sustainable Development Goals (SDGs), we consider the goals ofeach business area indicated in Group Management Policies 2019, and establish
material issues for our social contribution activities in the localities where we operate
manufacturing bases, construction sites, etc. Through our social contribution activities,
we encourage each and every one of our employees to be self-aware as a member ofthe community, and proactively respond to social expectations.

Material issues of social contribution activities
Material issues

Relevance to businessCoexistencewith local
communities

Establishing and maintaining good
relationships with local communities
is essential for our smooth businessexpansion.

Development of
next-generation
professionals

Promoting development of nextgeneration professionals involved inmonozukuri and supporting research in
the future science & technology fields
is essential to enriching the foundationof future industry, improving awarenessof IHI and securing the survival of ourbusinesses.

Environment
protection

Supporting activities contributing
to biosystem preservation andcountermeasures for extreme climatechange, nurturing nature’s bounty andpreserving a healthy plant is essential
for securing the survival of our business,and encouraging our employees’
understanding of environmental
problems.

Dedicate approx. 1% of ordinary income on social contribution activities.

Results
In FY2018, our social contribution activity expenditure was 6.35 million JPY.

Material issues
Coexistence withRelated SDGs

local communities

Indices
Business interests*

Development of

Business interests*

next-generation

Social/environmental

professionals

interests*

protection

eventsSocial/environmental Expenditure toward local
interests*

Environment

No. of visitors to hosted

Business interests*

communities
Participants in science(monozukuri) classes
No. of participants tohosted events

Social/environmental Environment protection
interests*

area

FY2018 results
9,129
5.02 million
JPY

2,664

200
11,605 m2* The above indices of “Business interest” and “Social/environmental interests” are defined on the
DJSI Questionnaire as follows.
	Business interests: Factors directly related to business interests, such as product development, brand
improvement, and human resource development
	Social/environmental interests: Factors linked with social/environmental interests, such as sustainable
development goals (SDGs)

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Corporate Citizenship
Coexistence with Local Communities
Aioi Pe-ron Festival
The Pe-ron Festival’s history traces back to IHI’s roots
as a shipbuilder, when it used to hold aquatic sports
events. Although the festival is now organized by Aioi
city, it is still conducted in front of an IHI waterfront
factory. The event attracts tens of thousands of visitors
each year and IHI sponsors some of the boats thatparticipate in the race.

IHI Atrium Concert
IHI uses the atrium at its head office in Toyosu to stage
orchestral concerts of various genres. These concerts
are for the enjoyment of a wide range of guests, fromsenior citizens to families with small children.
The eighth concerts were held in FY2018, attractingsome 650 people to each.

IHI engages in biodiversity initiatives.

Aioi Works Initiatives
IHI Aioi Works is surrounded in lush nature due tobeing located between the forests of the mountains

Development of Next-generation
Professionals

Soma Wild Horse Chase (Soma Nomaoi)
The Soma Nomaoi, an annual festival going back morethan 1,000 years, is famous for its staged fight among
warriors on horseback. In a parade associated with thefestival, young IHI Group employees shoulder a portableshrine from Soma Nakamura Shrine and the head of thelocal IHI office rides a horse.

Environmental Protection

Lecture for Elementary & Junior HighStudents
With the aim of nurturing future-generation science
professionals, IHI provides visiting classes forelementary and junior high students.
These classes are held jointly with Ochanomizu

Wheelchair Basketball

University and convey how interesting science is, as

The IHI Group supports the Japan Wheelchair
Basketball Federation. As part of this, in FY2017, we
held interactive events with wheelchair basketball
players in Shinchi town, Soma district, near IHI Soma
Works. This event attracted many people, including
IHI Group employees and local residents. The hugely
successful undertaking included players participating inan exhibition match and trial session and more.

well as how school-based study is helping society.
In FY2018, IHI members ran classes on jet engines
and power generation boilers for elementary and juniorhigh school students attending schools nearby our head
office. In both cases, students learned about systems
and principles through watching footage and thenconducted experiments to deepen their understanding.
Surveys conducted after the classes showed that theand the bay. The vast greenbelt accounting for 71%
of the site area is home to many rare animals andplants. In FY2018, we established green infrastructure
considering biodiversity to prevent landslides of slopes.
This green infrastructure utilized biomass, which isnatural capital, in the form of a retainer wall made fromlogs and clumps of sticks, into which various plants andtrees were planted. As soon as the logs and brushwood
decay, the trees, etc. that were planted take root andpreserve the slope.
We held tree-planting event for employees and theirfamilies aimed at improving their environmental
awareness.
According to the above activity, IHI Aioi Works won
the certification by the Association for Business
Innovation in Harmony with Nature and Community(ABINC). Moving forward, IHI will continue promoting
management considering biodiversity.

students’ level of interest in science had risen.

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Corporate Citizenship
Performance Data
Social contribution activity
expenditure (FY2018)(Millions of yen)

Total

635

Details [Coexistence with local
communities]502

	[Development of nextgeneration professionals]

56	[Environment protection]

16

Other

61

Details by expenditure item
Monetary donation

113

Employee activity fee

162

Donation of goods and site
provision cost360

(Reference)
Local community organization
membership fee

10

Cost

121

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Human Resource Management
Basic Policy
Based on our management philosophies of “Contributeto the development of society through technology”
and “Human resources are our single most valuableasset”, the IHI Group works to develop and secure
professionals as our most important management
resource.
IHI strives to provide its entire workforce withworkplace environments where all individuals feel safe,
respected, welcome, motivated and rewarded.

Group Human Resource Management Policy
To achieve our Group Vision of "Devising reliable andconvenient solutions that bring benefit to humanity andthe environment as a global company," we develop
supportive systems, workplace environments and acorporate culture that enable employees to realize theirfull potential while sharing common values.
In 2013, we introduced our Group Human Resource
Management Policy for all Group employees. The policy
includes measures for realizing ideal human resources
by observing the key concepts of “group,” “global”
and “diversity” in personnel hiring, deployment,
development and evaluation.

Group Human Resource Management Policy

In line with IHI’s management principles and Group

Ideal Human Resources

Keywords

Integrity and TrustGroup

For Customers and Society

GlobalInnovation and Creation

Diversity

vision, IHI Group aims to create customer value
through using engineering expertise to focus on
Monozukuri technology by the following:

1. In order to become an enterprise with distinguishedglobal professionals who strive to excel in Monozukuri
Technology and engineering technologies withworld-renowned high quality products, ideal humanresources shall be enhanced and shall serve as ashared value for employees within the group.
2. Ideal human resources shall serve as the foundation
for the establishment of HR management policies inorder to provide employees with opportunities fordevelopment.

3. P
 roviding a work environment where people ofdiverse backgrounds can demonstrate their abilities
and are in tune with the management principles andGroup vision of IHI.

Team WorkWorld-class Professional

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Human Resource Management
Workforce Demographics
Number of Employees
By region(people, as of March 31 each year)

FY2016FY2017FY2018

Number of employees

29,65929,70629,286

Japan

22,752

22,667

21,862

Asia Oceania

3,856

3,888

Americas1,166Europe, Middle East & Africa

1,885

By business area

By employment status(people, as of March 31 each year, IHI)

FY2016FY2017FY2018

Men

Women

Men

Women

Men

Women

Number of employees

7,980

1,421

7,470

1,430

7,240

1,458

4,213

Regular employees

7,216

964

6,958

980

6,694

984

1,244

1,352

Re-hires

181

1

83

0

84

0

1,907

1,859

Second by other companies

228

40

204

31

216

33

Constants and contract
employees

216

10

126

5

77

6

(people, as of March 31 each year)

FY2016FY2017FY2018Part-time employees

83

389

71

399

85

413

Number of employees

29,65929,70629,286

Fixed-term employees

56

17

28

15

84

22

Resources, Energy & Environment

7,744

7,579

6,467

Social Infrastructure & Offshore Facilities

2,493

2,290

2,359

Turnover Rate

Industrial Systems & General-Purpose Machinery

9,677

9,946

10,220Turnover rate within 3 years of joining company

Aero Engine, Space & Defense

6,348

6,463

6,660

Other

2,406

2,458

2,619

991

970

961

Entire company (common)

By age/gender(people, as of March 31 each year, IHI)

FY2016FY2017FY2018

Men

Women

Men

Women

Men

Women

Number of employees

7,625

1,005

7,245

1,011

6,994

1,017

Under 30

1,810

263

1,674

254

1,554

226

30 to 39

1,994

302

1,988

295

1,986

291

40 to 49

2,083

349

1,911

360

1,804

367

50 to 59

1,168

84

1,203

93

1,267

570

7

469

9

383

60 and over

(As of March 31 each year, IHI)

FY2016FY2017FY2018Turnover rate within 3 yearsof joining company

5.8%

5.7%

7.4%

Men

5.1%

4.7%

6.9%

Women

9.7%

10.6%

10.8%

Employee Situation
Average years of service(year, as of March 31 each year, IHI)

FY2016FY2017FY2018Average years of service

14.8

14.9

14.9

122

Men

15.4

15.3

15.1

11

Women

11.1

12.5

13.2
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Diverse Human Resources
Basic Policy

Targets and Results

Based on our corporate philosophy of “human resources
are our single most valuable asset,” our Group Human
Resource Management Policy establishes “Diversity”
as one of its material words.
This aims to tie together various different values
and foster a corporate culture breeding creativity
and innovation by establishing a workplace in which
individual employees with diverse personalities andviews can fully draw upon their capabilities. A corporate
culture breeding creativity and innovation is essential
to the realization of our management philosophy of“Contribute to the development of society throughtechnology,” therefore we strive for diversity promotion
as a part of our management strategy.
Diversity involves many elements, including gender,
ethnicity, nationality, existence of a disability, age,sexual orientation, religion, values, career experience,
and work style. IHI is involved in diversity promotion
spanning a broad spectrum including existing major
focuses of women, foreign national workers, disabled
persons, senior workers, and now also activities topromote sexual minorities such as LGBT.

Reference

KPI

No. of female
employees

Ratio of female
managers
No. of female officers
Disabled persons
employment rate

Targets

Target Year

FY2018 Results

University graduates: Total 15% or more(Engineers: 10% or more,administrative staff: 35% or more
as approximates)—

University graduates: Total 13%(Engineers: 6%,
administrative staff: 34%)

FY2016 - FY2018
Total of 15 or more technical staff—

FY2016 - FY2018
Total of 16 technical staff

3.5

2020

2.8

1 person or more

2020

41

2.3

2020

2.2

2

1 As of April 2018
2 As of June 1, 2018

Human Rights-Support for sexual
minorities (LGBT, etc.) (P45)35

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Diverse Human Resources
Employment
To ensure a diverse workforce, IHI recruits humanresources regardless of nationality, gender or age, andaccepts candidates who have been out of school for up
to three years.
In its recruiting practices, IHI selects suitable andcapable candidates that fit the company’s standards for
ideal human resources described in the Group Human
Resource Management Policy. Moreover, personnel
assigned to candidate interviews, etc. are trained tofollow fair and impartial recruitment practices.

Employment of Overseas Persons
IHI provides a wide range of opportunities, including
recruitment seminars in the U.S., U.K., South Korea andSingapore.

Mid-Career Recruitments
IHI actively recruits mid-career employees. We conduct
an annual symposium to inform mid-career recruits
about career opportunities at IHI and to build networks.

Fixed-term Employment to Regular

To recruit more women, IHI has developed pamphlets,
created a special webpage on the company's website
and staged seminars for women candidates.

IHI offers fixed-term employment contracts as amechanism for shifting temporary staffers to regular
employment. Under this system, personnel who meetcertain standards can be subsequently hired as regular
employees.

Employment of Disabled Persons

Employment from Age 60

To create workplaces where anyone can work withease, IHI encourages the employment of persons withdisabilities. We will continue to cooperate with schools
and public employment agencies to actively provide
employment opportunities for workers with disabilities.

IHI adopts a system allowing employees to decide theirown retirement age anywhere between 60 and 65 yearsof age.
Since the system was introduced in April 2013, wehave constantly revised it to enhance the attractivenessof the system, resulting in more than 80% of those
who have reached the age of 60 choosing to continue
working.

Female Employment

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Diverse Human Resources
Promotion

Locally Hired Employees of Overseas
Affiliates

IHI has taken constructive steps to create work
environments based on workforce diversity and helping
individuals to reach their potential.

Support for Female Employees andDevelopment of Female Managers
In 2012, training was introduced for women in
managerial positions to raise their awareness, enhancetheir leadership skills and support their networking
efforts.
A networking leadership program was launched in 2013
to support women employees in diverse business areasand consists of workshops, seminars and a variety ofother activities.
We also hold a seminar by an external expert every
year for our management-level employees aimed at
career development for female managers, awarenessof development support by superiors, support for career
design considering major life events, etc.

Locally Hired Employees of Overseas Affiliates Basedon the Group Human Resource Management Policy,
IHI actively hires capable individuals regardless ofgender, educational background, age or nationality,
aiming to promote the diversity and global capabilities
of its workforce. To achieve ideal human resources, as
identified in the Group Human Resource Management
Policy, each overseas base recruits candidates relative
to the respective country's labor market and customs.
IHI has conducted training to develop local managers
at overseas bases, expanding such training in China
and the Asia Pacific region in FY2018. In the past
three years. We will continue working to develop local
personnel to manage business in each country.

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Diverse Human Resources
Performance Data
New Graduate Employment Results(IHI)

FY2016FY2017FY2018Engineers

229

193

117

Men

208

174

110

Women

21

19

7

Administrative

59

52

38

Men

40

36

25

Women

19

16

13

Mid-career Employment Results
Mid-career Employment

FY2017FY2018

153

29

78

Disabled People Employment
Disabled People
Employment Percentage

FY2016FY2017FY2018

2.14

2.03

2.21

FY2017FY2018

2
(1)

4
(3)

4
(3)

Female Manager(People, as of April 1 each year, IHI)

FY2016FY2017FY2018

Total No. of Managers

2,630

2,626

2,643

No. of Female Managers(Ratio of female managers)

66(2.5 )

68(2.6 )

74(2.8 )

General Manager class

19

21

22

Section Manager class

47

47

52

Locally Hired Managers(people, as of April 1 each year)

FY2016FY2017FY201820

23

22

IHI Shanghai Management
Co., Ltd. (ICL)

1

1

4

IHI ASIS PACIFIC PTE (IHI AP)

10

12

8

IHI INC

9

10

10

Locally Hired Managers(IHI)

FY2016FY2017FY201884

87

84

Female University Graduate Employment(IHI)

FY2016FY2017FY201814

14

13

Engineers

9

10

6

Administrative

32

31

34

Female University Graduate
Employment Percentages

FY2016(As of June 1 each year, IHI)

People Selecting a Retirement Age of 61 or Above(between the ages of 61 and 65)

Status of People Selecting a Retirement
Age of 61 or Above(people, as of July 1 each year, IHI)

Number of Female Officers(Outside Directors)(people, as of March 31 each year, IHI)

FY2016

Female Officers

Training Aimed at Developing Local Managers
in Overseas Bases

Implemented Regions
No. of Participants

FY2016FY2017FY2018

Regions in China,
Regions in Asia
Pacific

Regions in China,
Regions in Asia
Pacific

Regions in China,
Regions in Asia
Pacific

33

25

36
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Diverse Human Resources (Human Resource Development)
Basic Policy

IHI Group Education and Training System(As of July 1, 2019)
Training for
management candidates
Executives
IHI:
Equivalent to
Director

Training by level and position

Open lectures (Language and cross-cultural skills)

Open lectures (Management skills)

Technical
leadertraining

Open
lectures

Open lectures (Business skills/technical, etc.)

New employees induction
coursesGlobal player training(India/Malaysia)

Training forsecond-year employees

Assistantforemantraining

Personnel exchanges across industries

Training formain players

Diversity

Female managerial and assistant manager training

Foremantraining

English conversation booth training/online English conversation

Training for instructors

Training for leaders

Training before overseas assignment (language/cultural understanding, global management, etc.)

Global program dispatch

Training for
managers

Training forthird-year employeesYoungemployees
IHI:
Equivalent to
S3 position

Global humanresource
training

Training for middle
managers
Education by job category and department (at affiliates)

Procurement professional training

Young employeesYoungemployees
IHI:
Equivalent to
S2 position

Product development project training

Mid-ranked
personnel

Mid-ranked
personnel
IHI:
Equivalent to
S1 position

IoT/ICT professional development training

Specialtraining forassistantmanagers

Quality professional training

IHI:
Equivalent toE position

Specialtraining forSpecialtraining for managers
managers of affiliate

Overseas study (MBA)Workplace leaders

AssistantManagers

Specialtraining
for generalmanagersof affiliate

Production management training

Specialtraining
Training forfor general executive
managers managers
of affiliate

IHI:
Equivalent to
Rank IIManagers
IHI:
Equivalent to
Rank III

Training
for newly
appointed
officers ofaffiliate

Professional training

Engineering professional training

GeneralManagers

Executive
managerial
training

Executive training

GeneralManagers
IHI:
Equivalent to
Rank IManagement

Employees grow the most through day-to-day work.
For this reason, the effort of employees who are willingto thrive, as well as the company-employee interaction
best represented by the opportunities that the company
provides to link this effort with growth, are fundamental
for the development of human resources.
In accordance with our Group Human Resource
Management Policy, IHI establishes a Group Human
Resources Development Policy clarifying the roleof individual employees and the company relating
to professional development, as well as the roleof superiors, the department, and HR department.
Through the policy, we formulate development plansfor individual employees in the workplace, employee
development frameworks and training curriculums.

Basic technical skills courses

Selected courses

Position and job category education

Elective courses

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Diverse Human Resources (Human Resource Development)
Human Resource Development
HR training is based on the Group Human Resource
Development Policy.
Position-specific training spanning the workforce,from new employees to newly appointed managers,
is implemented via programs and curricula based onprinciples for ideal human resources described in theGroup Human Resource Management Policy. There arealso training courses for grooming executives, global
human resources and women managers. Moreover,optional open seminars are offered to help employees
hone specialties.
To ensure that training remains consistent withevaluations and deployments, a series of threeinterviews is administered to all employees over thecourse of a year. Results are fed back to employees tohelp them reinforce their positive qualities and work on
any weakness, thereby helping them to develop further.

Development of Global Human Resource
The IHI Group invests time, money and effort intodeveloping human resources who can perform in the
global arena. This includes overseas training.
In 2018, 15 persons were sent to India for intensive
training. Overseas training programs not only support
the acquisition of language skills but also provide morein-depth exposure to different cultures. As for language
training in Japan, booths were set up at business sites
in 2013 so that employees could practice their English
in between jobs. In 2018 alone, 210 persons attended
conversational sessions.
In addition, language classes and seminars on crosscultural understanding are open to all employees.

In FY2018, a total of 164 employees took part in 9
courses.
Moreover, at the IHI Human Resources Development& Communication Center, called I-STEP Shonan,
IHI Group’s dedicated facility for human resource
training and meetings located in Yokosuka, Kanagawa
Prefecture, over 12,000 group employees from Japanand overseas participate in training and various seminars
each year. I-STEP Shonan is more than just a training
facility – it is used as a place for members of the IHI
Group from around the world to gather, share ourcorporate philosophy and values, actively communicate,learn and grow together.

Performance Data
Participants in Main Training Courses
and Total Training Hours
FY2016(Japan)FY2017FY2018

Position-specific
Participants

Approx.
3,300

Approx.
2,900

Approx.
3,300

Hours oftraining

Approx.
112,000

Approx.
101,000

Approx.
112,000

Participants

Approx.
5,800

Approx.
5,800

Approx.
6,200

Hours oftraining

Approx.
46,000Approx.
44,000Approx.
47,000Open lectures

Passing Skills Along to Others
Each IHI production facility is in charge of specificmanufacturing skills, such as welding and machine
work, that must be passed along to the next generation.
Employees with specialized skills are designated as
takumi (master artisans) and are assigned to train
younger workers.

Employees Certified as Takumi(people, IHI)

FY2016FY2017FY201845

42

37

Welding652Assembly

6

7

10

Machine Work

14

13

9

Testing/
Inspection

10

10

9

Maintenance

3

2

2

Other

6

5

5

Employees
Certified as Takumi

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Labor Practices (Occupational Health and Safety)
Basic Policy
Ensuring employee safety and well-being is an important
issue for IHI. Safety, hygiene and health issues acrossthe group are reported to the Board of Directors every
month. Moreover, IHI takes constructive steps to create
workplace environments where all group employees
feel respected, welcome, motivated and rewarded, andcan exhibit their full potential.
Based on the Basic Code of Conduct for the IHI Group,
the following initiatives will be implemented to ensurea workplace environment in which all employees canwork safely and in good health.

IHI Health and Safety Policy
1.	The "Five Safety Principles" will be taken
as a principle shared throughout the Groupand managers as well as all employees will
engage in safety and health activities toprevent accidents.
[Five Safety Principles]

Targets and Results

Targets

TargetYear

FY2018Results

Total Injuries
Frequency Rate

Under 1.1

2018

1.11

Lost Time Injuries
Frequency Rate

Under 0.2

2018

0.26

- Safety is our first priority- Never do or let anyone else doanything dangerous

Management System- Eliminate potential hazards- Follow the rules strictly- Make a real effort
2.	We will endeavor to prepare facilities andprovide opportunities to promote andmaintain the mental and physical health of
our employees, and create ideal workplacesin which employees can work in good
health.
3. 	While complying with relevant laws andregulations on safety and health, we will
give full consideration to how our businessactivities affect local communities andendeavor to ensure safety and health as amember of society.

Chief Executive Officer (CEO)Management Committee

I H I Group Health and Safety Committee[Chairperson]E xecutive Officer in charge of Human Resources[Deputy Chairperson] resident of Social Infrastructure & Offshore Facilities
P
Business Area,
President of Aero Engine, Space & Defense Business Area

[Member]
 resident of Resources, Energy &P
Environment Business Area,
President of Industrial Systems & General-Purpose
Machinery Business Area,
General Manager of Technology & Intelligence Integration,
General Manager of Human Resources Div.,
Other persons nominated by the chairperson[Secretariat]
Labor & Safety G., Human Resources Div.

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Labor Practices (Occupational Health and Safety)
Health and Safety Management
Health Management
IHI emphasizes health management because it believes
that a satisfying and fulfilling work environment
improves productivity. We address health managementfrom both mental and physical aspects.
Mental health education includes both remedial
aftercare for people with mental illnesses andpreventative measures promoting mental toughness.
Everyone from senior managers to new employees istargeted as part of nurturing a workforce full of vitality
and pleasant work environment.
Additional measures address health issues such as
metabolic syndrome, smoking and other unhealthy
lifestyles.

Safety Management
IHI is committed to eradicating work-related accidents
and has established five group-wide safety principles as
the basis for doing that.
At factories and construction sites, risk assessments are
implemented to identify and mitigate potential hazards
via strict verifiable countermeasures. Moreover, regularsafety training is provided not only to supervisors,leaders and site managers but to all employees as well,in order to make workplaces accident-free. Support
is also given to outside contractors at IHI work sites
and construction sites to raise the level of their safety
management and, together with IHI, keep the work site
safe.
Our health and safety initiatives are based on a logicaland far-reaching occupational health and safety
management system.

Work- Life Balance
System Enhancement
Besides providing workplace environments that makejobs motivating and rewarding, IHI is always improving
and adding programs and systems to help employees
balance their professional and personal lives.
For example, the company offers flexible working
hours, encourages employees to use paid holidays totake longer vacations, allows employees to take time
off for childcare and nursing obligations, and requires
worksites to shut down at certain times.

Management of Work Hours
Each year, IHI formulates a working-hours policy
to promote a healthy work-life balance, by limiting
nonessential overtime. The key initiatives under thatpolicy are to promote work efficiency and delegatetasks among employees. Other activities serving thatsame purpose include having individual divisions craft
action plans, shutting down all of our works at the sametime, and reporting overtime conditions to the Board of
Directors.

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Labor Practices (Occupational Health and Safety)
Performance Data

Third-party Evaluation

Health Management Data

Work- Life Balance Support Scheme(Target: 35 IHI Group companies)

FY2016 FY2017 FY2018
Health checkup
prevalence rate

70%

69%

70%

Stress checkparticipation rate

90%

91%

96%

Smokers

29%

28%

28%

Lost Time Injuries Frequency Rate*(Target: 32 IHI Group companies)

FY2016 FY2017 FY2018
IHI Group

0.33

0.57

0.26

National average, allindustries

1.15

1.02

1.02

FY2016 FY2017 FY2018
Employees with reduced
work hours

149

159

158

Employees who
have taken childcare leave

674

677

689

Employees who havetaken parental leave

89

111

113

Percentage returning towork after taking parental
leave

100 %

100 %

100 %

Employees who havetaken nursing care leave

11

18

6

Paid Vacation Days

* No. of fatalities or injuries through work-related accidents per million
working hours (excluding non-loss-time accidents)

Health & Productivity Companies 2019
(White 500)
In keeping with the IHI Group Health Management
Declaration, we collaborate with health insurance
associations and the Labor Union Federation to foster
the wellbeing of employees and their families.
In FY2018, seven IHI Group companies received White
500 certification. They were the parent, IHI Scube Co.,
Ltd., IHI Plant Services Corporation, IHI Power Systems
Co., Ltd., IHI Jet Service Co., Ltd., NICO Precision Co.,
Inc., and Chiba Warehouse Co., Ltd.

(days, IHI general employees)

FY2016 FY2017 FY2018
Average of annual paidvacation days acquired

Total Injuries Frequency Rate*

(IHI)

16.50

17.63

18.36

(Target: 32 IHI Group companies)

FY2016 FY2017 FY2018
1.31

IHI Group

1.64

1.11

* No. of fatalities or injuries through work-related accidents per million
working hours

Work-related Accidents*

Overtime Work(hours, IHI)

FY2016 FY2017 FY2018
Average monthly
overtime work

23.90

22.90

* The Ministry of Economy, Trade and Industry and the Nippon
Kenko Kaigi (Japan Health Council) maintain the White 500
program to recognize excellence in strategic corporate
healthcare management.

22.50(cases, number inside parentheses indicates fatal cases, Target:
32 IHI Group companies)

FY2016 FY2017 FY2018
No. of work-related
accidents

68 (1)

87 (1)

55 (0)

Employees

41 (0)

52 (0)

28 (0)

Temporary employees

0 (0)

4 (0)

4 (0)

Collaborators

27 (1)

31 (1)

23 (0)* No. of fatalities through work-related accidents

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Labor Practices (Partnership between Labor and Management)
Basic Policy and Management System
IHI concludes labor agreements with IHI Labor Union
Federation based on mutual understanding and trust.
IHI Labor Union Federation was formed in 1963 andall employees, excluding those ranked as a Section
Manager or higher in the collective labor contract, aremembers.
Various labor-relations councils are organized inaccordance with labor agreements, including workers’
councils to promptly resolve day-to-day issues,
management councils to discuss management
initiatives and financial results, and production councils
to maintain and improve productivity in works divisions.

Initiatives
IHI management and labor are provided with abundant
opportunities for dialog under the I-Project group-wide
initiative. In FY2018, meetings to exchange views
and ideas were held at five IHI offices and six groupcompanies. Moreover, when management visited
factories and worksites, time was provided for them totour the sites and interact with employees.
The Management Council gathers management andlabor for meetings to explain corporate policies and hear
union proposals. The IHI president joins three meetingseach year.
Moreover, regular patrols of plants and construction
sites are conducted through collaboration between
management and labor to ensure that safety andhygiene are being properly managed.

Addressing Labor-related Complaints
Based on labor agreements, IHI operates a committee
to promptly respond to labor-related complaints from
employees in a fair manner, ultimately to realize
harmonious work environments.

Performance Data
Labor Union Membership(people, as of March 1 each year, IHI)

FY2016FY2017FY2018

7,884

7,851

7,564

Musashi

1,795

1,891

1,953

Tokyo

1,542

1,595

1,555

Yokohama

1,461

1,464

1,376

Soma

913

913

913

Tomioka

667

666

657

Aioi

505

509

473

Kure

501

489

503

Nagoya

500

324

133

Sakai

0

0

1

Total

Addressing Labor-related Complaints(cases, IHI)

No. of complaints

FY2016FY2017FY2018

0

0

0

44

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Human Rights
Basic Policy
The IHI Group promotes initiatives for raising awarenesson human rights.
Activities to raise awareness of human rights began in
1981 with the establishment of the company-wide Dowa
Promotion Committee. Recognizing IHI’s corporatesocial responsibility, a basic policy was formulated tosupport fair, nondiscriminatory treatment of humanresources, which is now a key aspect of IHI’s business.
Since then, in light of domestic and international
trends and changes in the social environment, basedon the policies and plans decided our companywide
committee, we roll out various activities such as humanrights training and enlightenment campaign.
In FY2017, the name of the company-wide committee
was changed to the IHI Group Committee for Promotionof Human Rights to recognize the broadening
perspective and a group-wide approach of IHI’s humanrights activities.
Outside Japan, relevant human rights issues include
child labor and forced labor, which IHI is addressing
from a global perspective.
In this context, IHI’s Basic Code of Conduct includes
respect for human rights as a fundamental principle ofthe company. Since then, IHI has been implementing
various relevant initiatives on an ongoing basis. The
activities are reported to executive management, areflection of their importance to the company.

Support for sexual minorities (LGBT, etc.)

Management System

Chief Executive Officer (CEO)Management Committee
IHI Group Human Rights Committee[Chairperson] Executive Officer in charge of Human Resources[Secretariat] Human Resources Div.

Head Office Divisions

Business Areas

Initiatives
Due Diligence
In order to grasp business-related risks, IHI has begun
identifying our human rights risks and impacts. We
conducted a Human Rights Awareness Status Survey
targeting 16 major overseas affiliated companies inorder to ascertain any human rights issues.

Human Rights Training
In 2018, over 5,000 employees participated in position
specific training, training at IHI offices and plants,
and training conducted by third parties, to deepen
awareness and knowledge of human rights, compliance,harassment and more.

Equal Wages for International Recruits
IHI practices fair and impartial wage setting both inJapan and in international locations. Employees aretreated equally-regardless of gender-and basic wages
are set in the same manner.

As part of support for sexual minorities, we respond tothe concerned person’s requests regarding operation ofvarious schemes, including work systems and benefits.
Moreover, we have launched full-scale LGBT Ally Action
to recruit allies (supporters) and disseminate information
to them. Through such activities, we attempt toestablish a work environment in which sexual minorities
can work comfortably.

Installation of “Multipurpose Toilets”
As part of establishing an environment for sexual
minorities, disabled persons, and other people withspecific care needs, we have installed “Multipurpose
Toilets” based on a universal design.

Opening of a Consultation Service
We opened a consultation service to fairly and sincerely
handle complaints and concerns from employees while
protecting their privacy.

Third-party Evaluation
PRIDE Index Gold Award
IHI received the Gold Award, the highest level ofcommendation for the PRIDE Index 2018, an index
evaluating workplace initiatives for sexual minorities,
such as LGBT,established by thevoluntary organization,Work with Pride.

45

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Principled
Corporate
Management
Corporate Governance . . . . . . . . . . . . . . . . . . . . . 47
Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Information Security . . . . . . . . . . . . . . . . . . . . . . . . 61
Timely and Proper Disclosure . . . . . . . . . . . . 63
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

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Corporate Governance
Basic Views
IHI defines corporate governance as a system thatassures sustainable growth and maximization of
corporate value by enhancing management efficiency
for the Company to leverage its innate capabilities to thefullest extent possible. To achieve this, the Company
targets efficient and appropriate internal decisionmaking by clearly separating management monitoringand supervisory functions from functions related totheir execution of duties. Furthermore, by establishing
the relevant internal rules and building a system fortheir administration, the Company ensures appropriate
operations across the entire Group.
The Company promotes constant improvement of its
corporate governance, aiming to earn the trust andsupport of its shareholders and other stakeholders overa long term.
The Company will work to enhance its corporate
governance in line with the following basic policies.

(1) R espect shareholders’ rights and ensure
equal treatment(2) S trive to cooperate appropriately withshareholders and other stakeholders(3) F ulfill our responsibility to be accountable
to stakeholders and ensure transparency
by appropriately and proactively disclosing
information relating to the company(4) C larify the roles and responsibilitiesof the board of directors, the audit &supervisory board members and the Audit& Supervisory Board to enable themto adequately fulfill their managementmonitoring and supervisory functions(5) C onduct constructive dialogues withshareholders whose investment policies
accord with the medium- to long-term
interests of shareholders

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Corporate GovernanceCorporate Governance System
IHI Corporation has an Audit & Supervisory Board,
comprised of 5 audit & supervisory board members(3 from outside) who audit the duties executed bydirectors.
The Board of Directors, which consists of 11 directors (3from outside), makes decisions related to all importantmatters concerning the management of the Company

and the Group, in addition to supervising directors intheir business execution. In regard to outside directors,
IHI appoints persons with rich experience as a corporate
manager and broad knowledge, as well as persons
with multifaceted experience and specialist knowledge.
Outside directors will participate in the decision-makingof the board of directors from a position independent of
the management team involved in operation executions,and offer advice and proposals to IHI’s management.

Corporate Governance Management StructureManagement Monitoring / Supervisory Functions
Consultation

General Meeting of Shareholders

Delegation

Board of Directors(Directors)

Recommendations
Consultation

Representative Directors

Recommendations

Delegation

Audit &
Supervisory Board

Audit(Audit & Supervisory
Board Members)

Nomination Advisory
Committee

Delegation of Authority

Executive Officers
Chief Executive Officer (CEO)Reporting

Delegation

Accounting
Auditor

Audit
Internal Audit Division

Consultation

Management
Committee

Instructions
Audit

IHI Corporation has an executive officer system tofacilitate and strengthen the decision-making andsupervisory functions of the board of directors, as wellas to improve the efficiency of business operations.
Executive officers are appointed by resolution of theboard of directors. The Chief Executive Officer manages
the duties of the executive officers, giving directions
and supervision. The executive officers follow the Chief
Executive Officer’s directions to execute their assigned
duties.
The Management Committee, which consists ofmembers appointed by the CEO, supports the CEO’s
decision-making and business execution.

Remuneration Advisory Committee andNomination Advisory Committee

Compensation Advisory
Committee

Business Execution Functions
ReportingExecutive Officer System

Headquarters andOperations / Group
Companies

We established the Remuneration Advisory Committee
and the Nomination Advisory Committee as the optional
committees.
To ensure that director remuneration is appropriate,
the Remuneration Advisory Committee comprises six
members: three outside directors, one outside audit& supervisory board member, the director in charge ofhuman resources, and the director in charge of financeand accounting, with an outside director serving as
the committee chairperson. To provide supervision
and advice on nomination of directors and audit &supervisory board members by the representative
director, the Nomination Advisory Committee comprises
four members: the president and CEO, and threeoutside directors, with the president and CEO serving
as the committee chairperson.

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Corporate Governance
Policies and Procedures Relating toAppointment of Officers
The Company’s Board of Directors decides on ideal
attributes for officers and draws up independence
standards for outside directors and outside audit &supervisory board members.
These standards are based on the requirements foroutside directors and outside audit & supervisory board
members stipulated by the Tokyo Stock Exchange. The
emphasis is to assure that outside directors and outside
audit & supervisory board members are genuinely
independent.
The Company’s Board of Directors sets the basic policy
of appointing the most appropriate officers according
to ideal attributes and independence standards foroutside directors and outside audit & supervisory board
members. The aim is to ensure sustainable growth andincreased corporate value for the IHI Group over the
medium to long-term.
In appointing officers, the Board of Directors has
supplemented the legally required procedures by
establishing a Nomination Advisory Committee
comprised of all the independent outside directors
and the President. The Committee acts as an optional
advisory body to the Board of Directors in orderto enhance the Board of Directors’ independence,
objectivity, and accountability, as well as to proactively
obtain the involvement, advice, and supervision of theoutside directors. It supervises appointment-related
procedures to ensure that they are applied appropriately,
and offers related advice.
Should members of senior management or executive
officers meet the dismissal criteria for officers, a
determination of such dismissal shall be resolved
promptly by the Board of Directors.

Ideal Attributes for Officers
IHI Corporation appoints officers who are healthy inmind and body and have all the following attributes:
Deep understanding of, and sympathy with, the IHI
Group’s management philosophy and vision
The ability to contribute to sustainable growth andmedium- to long-term increase in corporate value
at the IHI Group by addressing societal issues inaccordance with the IHI Group’s visionOutstanding foresight, penetrating discernment andability to make appropriate decisions with regard to
the management of the IHI Group
Good character with a strong sense of ethics
Ample experience as a corporate manager, or a highdegree of specialist knowledge, combined with broad,global perspective and insight

Independence Criteria for Outside Directors
In addition to the requirements for outside directors andoutside audit & supervisory board members stipulatedby the Tokyo Stock Exchange, the Company uses thestandards below to determine independence.
1. Major shareholders
	The director should not be a major shareholder with
10% or more of the voting rights in the Company,or serve as a director, audit & supervisory board
member, executive officer at a company withcommittees, executive officer or employee, of acorporation that is a major shareholder.
2. Major clients, suppliers, etc.
	The director should not currently serve as a director,
audit & supervisory board member, executive officer
at a company with committees, executive officer or
employee, of any of the Company's major clients,
suppliers, etc. detailed below, nor should he/she have
served as an executive director, executive officer at
a company with committees, or executive officer, ofsuch major clients, suppliers, etc. in the past.

 ajor clients of the IHI Group (with transactions
M
valued at 2% or more of the Company's consolidated
net sales in the most recent fiscal year)
Major suppliers to the IHI Group (with transactions
valued at 2% or more of the supplier's consolidated
net sales in the most recent fiscal year)
Major lenders to the Company (as listed in thebusiness report for the most recent fiscal year)
3.	Providers of specialist services (attorneys at law,certified public accountants, or consultants, etc.)
	The director should not be an attorney at law, certified
public accountant, or consultant, etc. who receives
10 million yen or more of monetary consideration orother property from the Company annually besides
compensation as a director/audit & supervisory board
member.
4. Accounting auditor
	The director should not be a representative partner orpartner of the Company's accounting auditor.
5. Mutual exchange of officers, etc. with the Company
	The director should not be assigned to a corporation
with which the Company has a relationship ofmutually exchanging directors or audit & supervisoryboard members.
6. Close relatives
	The director should not be the spouse or firstto second-degree relative of a director, audit &supervisory board member, executive officer or
equivalent executive-level employee of the IHI Group.
	In addition, the director should not be the spouseor first- to second-degree relative of any person*referred to in 1 through 4 above.
*
If a major shareholder or a major client, supplier, etc. is a
corporation, this applies only to directors, audit & supervisoryboard members, executive officers at companies withcommittees, executive officers, or equivalent executive-level
employees of the corporation in question. In addition to theabove, the Company also considers age, concurrent positions,period in office, and related matters when nominating
candidates as outside directors.

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Corporate GovernanceMembers of the Board of Directors (As of July 1, 2019)
Name
Position at theCompany

Tamotsu Saito
Chairman of the
Board

Tsugio Mitsuoka
President

Hiroyuki Otani
Executive Vice
President

Reasons for nomination

After leading IHI Group’s management as President
and Chief Executive Officer since April 2012 until
April 2016, he has worked to achieve further
improvements in corporate governance as Chairmanof the Board. His abundant experience and insightas corporate manager have been utilized in the
management of the IHI Group.
He was appointed as President of Aero-Engine &Space Operations in April 2013, driving the growthof its globally-expanding business before becoming
President and Chief Operating Officer in April 2016
and President and Chief Executive Officer in April
2017, in which capacity he has led IHI Group’s
management. His abundant experience and insightas corporate manager have been utilized in the
management of the IHI Group.
He has accumulated a great deal of knowledge mainlyin the aero-engine production and technology division.
In addition, he has been responsible for businessdivisions including power systems, machinery andlogistics, and the Resources, Energy & Environment
Business Area, and has been serving as Executive
Vice President since this April. This wide range ofbusiness management experience and insight has
been utilized in the management of the IHI Group.

Executive Vice
President

He accumulated a great deal of knowledge mainlyin the finance and accounting field and corporate
planning division. Appointed as Deputy General
Manager of Finance & Accounting Division in April
2014 and General Manager of Finance & Accounting
Division in April 2017, he contributes to IHI Group’s
management by leveraging his rich insight on financial
strategies, improvements in financial condition, andoverall group management.

Tomoharu Shikina

After accumulating a great deal of knowledge mainlyin the aero-engine technology development field,
he was appointed as President of Aero-Engine &Space Operations in April 2016. His abundant results
and experience have been utilized for the growth of
the IHI Group particularly in Aero Engine, Space &Defense Business Area.

Takeshi Yamada

Director

Nobuko Mizumoto
Director

After accumulating achievements as a researcher at
IHI’s technology research institute, she has servedin important posts in the headquarter divisions,beginning with a project regarding the relocationof the headquarter building. The wide range ofexperience and achievements she has accumulated inher career have been utilized for the growth of the IHI
Group.

Attendanceat Board of
Directors
meetings in
FY201818 of 18

18 of 18

18 of 18

Periodinoffice11 yearsand2 months

5 years

5 years

Appointments to board
advisory committees
Remuneration Nomination
Advisory
Advisory
Committee
Committee–

Member––Chairperson–

Attendanceat Board of
Directors
meetings in
FY2018PeriodinofficeHe has accumulated a great deal of knowledge mainlyin the Human Resources Division. In addition, he has
been responsible for the domestic sales headquarters,
the Human Resources Division, and subsequently, theCorporate Planning Division. His abundant experienceand results have been utilized for the growth of theMasafumi Nagano IHI Group particularly in Industrial Systems & GeneralPurpose Machinery Business Area.
Director

14 of 141

After gaining experience in the research anddevelopment of materials and technologicalmanagement overall in the Corporate Research &Development Division, he became in charge of the
Rotating Machinery Operations Division, subsequently
appointed as General Manager of Corporate Research& Development in April 2017. This experience and high
Kouichi Murakami level of insight into the Group’s overall technologies
Director
have been utilized for the growth of the IHI Group.

Name
Position at theCompany

Reasons for nomination

Appointments to board
advisory committees
Remuneration
Advisory
Committee

Nomination
Advisory
Committee

1 year

––14 of 141

1 year

––He gained extensive experience and broad insight at
the Asahi Kasei Corporation, where he implemented
diversified management. These qualities have beenreflected in the management of the Company,
acknowledging his proven ability in performing
management oversight and monitoring functions from
Taketsugu Fujiwara an independent perspective.
2

18 of 18

4 years

Chairperson

Member

17 of 18

3 years

MemberMemberOutside Director2

His extensive experience and broad insight as abusiness manager has led aggressive globalizationin response to changes in business environment at
the Japan Tobacco Inc. These qualities have beenreflected in the management of the Company,
acknowledging his proven ability in performing
management oversight and monitoring functions froman independent perspective.

18 of 18

2 years

MemberMemberKazuhiko Ishimura

He gained extensive experience and broad insight at
the AGC Inc. These qualities have been reflected in
the management of the Company, acknowledging his
proven ability in performing management oversightand monitoring functions from an independent
perspective.

Outside Director

18 of 18

2 years

Member–Hiroshi Kimura

18 of 18

3 years––
Outside Director2

1 Shows attendance status to the Board of Directors’ meetings held after appointment as director.
2 Independent directors as stipulated by the Tokyo Stock Exchange, and directors satisfying IHI’s “Independence

14 of 141

1 year––Standards for Outside Directors and Outside Audit & Supervisory Board Members”

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Corporate GovernanceMembers of the Audit & Supervisory Board (As of July 1, 2019)
Name
Position at theCompany

Shigeru Uesugi
Standing Audit &Supervisory Board
MemberTaizo Suga
Standing Audit &Supervisory Board
MemberYoko Hatta
Outside Audit &Supervisory Board
Member*Tomomi Yatsu
Outside Audit &Supervisory Board
Member*Toshio Iwamoto
Outside Audit &Supervisory Board
Member*Reasons for nomination

He has accumulated a great deal of knowledge
mainly in the accounting and finance field of theaero-engine and space business. After having
been in charge of formulating policy for the
management of the Company’s affiliates, he
has extensive knowledge in internal control andcompliance. These qualities have been reflectedto the management auditing operations of theCompany.
After accumulating a great deal of knowledge
mainly in the finance & accounting field, he wasappointed as President and Chief Executive
Officer of IHI ASIA PACIFIC PTE. LTD. His highdegree of specialist knowledge in financial
management and wide range of businessexperience in overall business management
have been reflected to the management
auditing operations of the Company.

Her extensive experience and insight in global
business operations, notably international
taxation from an independent perspective havebeen reflected to the management auditing
operations of the Company.

She has accumulated extensive experienceand insight by responding to various corporate
issues as an attorney at law and a certified
public accountant. These qualities andindependent perspective have been reflectedin the management auditing operations of theCompany.

His abundant experience and broad insightgained while serving as a top management
executive and director in charge of financeat NTT Data have been reflected in IHI’s
management auditing tasks from an
independent perspective.

Attendance
numbers in FY2018
Upper: Board of
Directors meetings
Lower: Audit &Supervisory
Board meetings

18 of 18
16 of 1618 of 18
16 of 1618 of 18
16 of 1618 of 18
16 of 16

Appointments to board
advisory committees
PeriodinCompensation Nomination
officeAdvisory
Advisory
Committee
Committee

3 years––

2 years––

3 years––

2 years––

Member

–

Since

–

June
2019

* Independent directors as stipulated by the Tokyo Stock Exchange, and directors satisfying IHI’s “IndependenceStandards for Outside Directors and Outside Audit & Supervisory Board Members”

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Corporate Governance
Policies on Determining of Remuneration for
Officers
Policy on Determination of Remuneration for
Officers
Remuneration shall be aimed at fully encouraging
directors and executive officers to perform their duties
in line with our management philosophy, Group vision,and Group management policy, and strongly motivatingthem toward the achievement of specific management
goals to bring the Company’s and the IHI Group’s
sustainable growth and improve the medium-and longterm corporate value.
To achieve this, remuneration shall be structured
with the appropriate allocation of an annual incentive(performance-based bonuses), which is linked tothe operating performance of each fiscal year, and a
medium-and long-term incentive (performance-based
share remuneration), which is linked to mediumand long-term operating performance and corporate
value aimed at broadly sharing a sense of value withstakeholders, and thereby shall contribute to performingwith a sound entrepreneurial spirit.
Furthermore, under the management philosophy,“Human resources are our single most valuable asset,”
appropriate treatment shall be provided to officersof the Company in consideration of the Company’s
management environment, and social roles andaccountabilities the Company undertakes.

Procedures for Determining Remuneration
To ensure appropriateness and objectivity indetermining the remuneration of directors and executive
officers, the Remuneration Advisory Committee shall
examine and report remuneration related to directors
and executive officers, and the Board of Directors shallmake decisions.

Remuneration of Outside Directors andAudit & Supervisory Board Members
Remuneration of outside directors shall consist only of abase amount in the light of their duties.
Remuneration of audit & supervisory board members
shall consist only of base amount, as remuneration
for responsibilities for auditing the execution ofbusiness throughout the IHI Group. The amount shallbe determined through discussions among the audit &supervisory board members.

Results of FY2018 Remuneration
Details of director and audit & supervisoryboard members remuneration(Millions of yen)
Numberof people
remunerated

Category

Total remuneration by type
Total
remuneration
Basic
Performance-based Performancebased
remuneration share remuneration
bonuses

Directors

17

450

134

83

668

Audit &
Supervisory
Board Members

5

108

–

–

108

Total
(outside)

22
(7)

558
(84)

134
(–)

83
(–)

776
(84)

Note: Annual remuneration for directors is capped at 1,090 million yen, while the maximum
corporate auditors are 120 million yen.

FY2018 Targets and Results of Performance Evaluation
Payout Rates for Performance-based Bonuses
Performance evaluation payout rate corresponding to thecurrent net income attributable to owners of parent
200%(Payout rates)

81%
100%
25%
0%

(Profit Attributable to Owners of
the Parent Company)
Min. ¥28.6 billion

Target ¥43.6 billion

Max. ¥58.6 billion

Performance evaluation payout rate corresponding toconsolidated operating profit margin 1
200%

100%
25%
0%

(Payout rates)

51.25%(Consolidated operating
margin)Min. 4.2%

Target 6.2%

Max.8.2%

1. A minimum value of 0% and maximum value of 120% are the performance
evaluation payout rate results corresponding to the consolidated operating
profit margin of the said business area.

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Corporate Governance
Remuneration Level and Allocated Ratios of

Calculation method for incentive remuneration

Remuneration

Consolidated ROIC and consolidated operating profit margin, which are important management indicators of profitability
under Group Management Policies 2019, are used as the performance evaluation indicators.
PerformanceRemuneration
linked stock
types
remuneration

Performance-linked
stock remuneration(medium- and long-term incentives)

IHI Corporation shall regularly survey objective market
data regarding remuneration researched by a specialized
external institution, and set an appropriate remunerationlevel.
Moreover, in consideration of the Company’s businesscharacteristics, effectiveness of incentive remuneration,etc., total amount of remuneration shall be allocatedat approximate proportions of 60%, 20% and 20%
to 1) “A fixed base amount,” 2) “An annual incentive(performance-linked bonuses) to be provided upon theachievement of the targeted performance” and 3) “A
medium- and long-term incentive (performance-based
share remuneration) provided upon the achievement of
the targeted performance respectively.

Payment amount calculation method

No. of issued shares

Stock

Cash

Basic points
corresponding to
job title ranking

Performance evaluation
payout rate corresponding
with consolidated ROIC

Percentage obtainable bydividing the months ofenrollment by 12

1/2F luctuation from 0 to around 150
Evaluation of level of accomplishment after completing performance evaluation period(upcoming 3 business years)
Amount of money tobe issued

No. of confirmed points 1

No. of issued shares

Current value of IHI shares on the day rights are finalized

1. 1 finalized point is equivalent to 1 IHI share.

In the case of representative director(annual incentives)

Performance-based bonus

Performancebased
bonuses

CashStandard
payment amountcorresponding to
job title ranking

Performance
evaluation payout rate
corresponding to thecurrent net income
attributable to ownersof parent 2

Performance
evaluation payout rate
corresponding to thecurrent net income
attributable to ownersof parent 2

50/100

Performance
evaluation payout rate
corresponding withconsolidated operating
profit margin 2

50/10030/100

Performance
evaluation payout
rate corresponding toconsolidated operating
profit margin 2, 3

50/100In the case of directors

Performancebased
bonusesStandard
payment amountcorresponding to
job title ranking

Payout rate
based onindividual
performance
evaluation 2

20/1002. Fluctuation from 0 to around 200
3. In the case of a director overseeing a business area, the performance evaluation payout rate
corresponding to the consolidated operating profit margin of the said business area is used.

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Corporate GovernanceEvaluation of the Board of Directors
Since FY2015, the Company has been carrying out
evaluation of the Board of Directors annually and inprinciple as an initiative to raise the effectiveness of theBoard of Directors.
The evaluation is performed as follows.
An external consulting company administers ananonymous questionnaire to all directors and audit &supervisory board members. Items covered by thequestionnaire include the composition and operationof the Board of Directors, risk management, andculture of the Board of Directors.
The external consulting company collects and analyzes
the questionnaire responses.
All relevant officers are interviewed regarding
the questionnaire and the analyzed responses.
Furthermore, views are exchanged in a discussion
comprised of mainly outside officers.
The results of the above process are brought together
in the form of a self-evaluation by the Board of
Directors, and proposed points for improvement are
identified.

In FY2017, the Company’s Board of Directors has
discussed what the Board of Directors should copewith referring to the result of evaluation of the Boardof Directors in FY2016. As a result, from FY2018,
the Company will proceed with the following threemeasures: enhance deliberation of important matters,
promote the delegation of authority to the executive
division further, and conduct effective operation of theBoard of Directors meetings.
The Company did not carry out evaluation of the Boardof Directors in FY2017, however carried it out on
FY2018 and confirmed that effectiveness of the Boardof Directors has been secured enough. In addition, it
has been recognized that the Board of Directors shouldcope with issues such as enabling substantial debate
about risk management. Therefore, the Company
shall take measures with those issues, for further
effectiveness of the Board of Directors.
The next evaluation of the Board of Directors isscheduled to be conducted during FY2019.

OthersFor details on corporate governance, please see our“Corporate Governance Report.”

ReferenceCorporate Governance Report

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Compliance (Quality)
Basic Policy

Establishment and Deployment of the IHI Group
Code of Action and Quality Declaration

The occurrence of inadequate quality practices
motivated us to return to our core ethics and deploy
groupwide measures, as explained below.
1. Establishment and deploy IHI Group Code of Action
and Quality Declaration
2. Strengthening Compliance System

Reference

Compliance (P57)

3. Strengthening Quality Assurance System and Quality
Management System
4. Create workplaces where people speak up
5. Strengthen risk management

Reference

Risk Management (P65)

The IHI Group Code of Action was established todefine the standards that all IHI Group employees must
follow in their daily tasks. The Code of Action, which isbased on the IHI Group Basic Code of Conduct, defines
required actions and judgment criteria in understandable
terms. Moreover, the IHI Group Quality Declaration
confirms that safety and quality are top priorities. The
Declaration clarifies the basic “monozukuri” concept aswell as action and awareness.
The Code of Action and Quality Declaration were
established and deployed immediately across the entire
IHI Group. Awareness of these two policies is being
spread through training so that they become daily
practices.

IHI Group Code of Action
1.	We truly understand and will comply with any
and all applicable rules.
2. We do not engage in any wrongdoing.
3. We respect human rights.
4.	We make safety and quality for our customers
a top priority.
5. We enter into fair and legitimate transactions.
6.	We never impair the safety of ourselves or
our colleagues.
7. We strictly manage and control information.
8.	If we discover an issue, we report it
immediately.

IHI Group Quality Declaration
We, the IHI Group shall:
1. always put Quality First.
2.	continue improving Quality via SangenShugi* and Communication.
3.	listen sincerely to Issues, swiftly take Action
and share accurate Information.
4.	provide Quality Assurance through Compliancewith rules and working appropriately.
5.	all strive for the Satisfaction of our Customers.
*Sangen-Shugi: Literally meaning “the principle of three gens”
in Japanese, where “gen” stands for “genchi (actual site),”“genbutsu (actual thing/service)” and “genjitsu (reality),” thisconcept warns employees to make all decisions based on
facts as observed and obtained from the actual things/services
where they are actually being made or used by customers

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Compliance (Quality)
Strengthening of Quality Assurance System
and Quality Management System
The system was strengthened to promote quality
improvement.
The Chairperson of the IHI Group Quality Committee
serves as the Officer in Charge of Group Quality
Assurance. At the Monozukuri System Strategy Planning
Headquarters, a Quality Integration Department was
newly established to strengthen the functions of the
Quality Assurance divisions in Business Areas, SBUs*,
and affiliated companies. Moreover, training is carriedout to nurture quality leaders.
*SBU: Strategic Business Unit

Quality Improvement Promotion System(July 1, 2019)

Chief Executive Officer (CEO)IHI Group Quality Committee[Chairperson] Officer in charge of Overall
Group Quality Assurance[Secretariat] Monozukuri System Strategy
Planning

Business Area
President of Business Area

Creation of Workplaces Where People
Speak Up
Our President and other executives visit worksites andexchange opinions with employees regarding matters
including the concept of quality as our first priority.
Moreover, a term-based program has been launchedto establish a more robust quality assurance system.
Companywide improvement activities are implemented
to stimulate dialogue in workplaces.

Executive in charge of Quality
General Manager of Quality Assurance Division

Business Unit/Affiliate
General Manager of Business Unit/
President of affiliated company
Executive in charge of Quality
General Manager of Quality Assurance Division

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Compliance
Basic Policy
Compliance helps form the foundation for corporate
activities.
The following conduct is specified in the Basic Code of
Conduct for IHI’s group companies.
 bserving strictly all laws, company rules, and otherO
regulations
Acting in a fair and responsible manner asbusinesspeople
This supports not only legal compliance but also
efforts to accurately assess changing social values
and demands, a necessary step in meeting society’s
expectations.

In response to the inadequate quality inspection
problem in IHI’s Civil Aero Engine MaintenanceBusiness, IHI has strengthened its compliance andquality assurance systems, and promoted initiatives forrecurrence prevention. As part of such initiatives, wehave established the IHI Group Code of Action based on
the IHI Group Basic Code of Conduct as the code which
all IHI Group directors, officers and employees shouldobserve in their daily work.
We continue enforcing compliance and, withconsideration to the cause analysis of the inadequate
quality inspection problem, ensure recurrence
prevention measures in our effort to restore trust.

IHI Group Code of Action
1.	We truly understand and will comply with any
and all applicable rules.

As the secretariat, the Legal Department acted inaccordance with policies set by the Compliance
Committee to plan and implement activities and provide
related guidance and support, as well as monitors thestatus of activities within each division.

2. We do not engage in any wrongdoing.
3. We respect human rights.
4.	We make safety and quality for our customers
a top priority.
5. We enter into fair and legitimate transactions.
6.	We never impair the safety of ourselves or
our colleagues.
7. We strictly manage and control information.
8.	If we discover an issue, we report it
immediately.

Compliance Organizational Chart
Chief Executive Officer (CEO)Management Committee
Compliance Committee[Chairperson] Chief Compliance Officer[Secretariat] Legal Division

Head Office Divisions

Management System

Compliance officers

Business Areas
Person in charge ofcompliance implementation

IHI established the Compliance Committee as acompanywide entity that meets quarterly. The Chief
Compliance Officer chairs the committee, which
discussed and established important compliancepolicies and undertakes activities. The committee’s
purpose was to discuss and establish major compliancepolicy and promote activities.
Decisions made by the committee are rolled out toeach division via members and reflected in complianceactivities to suit the business type. Each complianceofficer also shared information about the complianceactivities in their divisions with the Compliance
Committee. Activities were managed with the PDCA
cycle.

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Compliance
Compliance Education

Officer Training
IHI officers participate in collective compliance training.
In FY2018, an external lecturer held training on the topic“Officers’ Duty of Care Regarding Good Management,”
and covered content such as trends and characteristics
of company scandals in recent times, as well as
officers’ duty of care regarding good management, andthe judgment system thereof.

Training for Line Management
IHI holds training for line managers who instructtheir subordinates on a daily basis. In FY2018, weconsidered keys to preventing compliance violations,the importance of fostering a corporate culture thatheightens occupational self-esteem, and future
management guidelines. The program has trained over
905 persons since FY2006.

e-Learning
Compliance education is provided to employees in theform of e-learning based on set themes. For FY2018,
we set the topic as “Lessons Learnt from “Think about
Quality Issues,” and rolled out e-learning in our groupcompanies both in Japan and overseas.

IHI’s Compliance Hotline facilitates reporting of possible
illegal, unethical or improper conduct to take appropriate
corrective actions.
Officers and employees can directly report and consult
to Corporate Ethics Hotline, an independent third-party
organization without going through an ordinary reporting
line. Hotline Cards explaining the system and how to
use it are distributed to all officers and employees, fromsenior managers to temporary staffers.
In FY2017, we expanded this system to U.S. in addition
to the current domestic system. In FY2018, we havestarted preparations in Asia Pacific, China, Taiwan, andKorea, and commenced operations in most of thesecountries.

Corporate Ethics MonthIn October, IHI’s Corporate Ethics Month, President andCEO sent a message to officers and employees of the
IHI Group regarding corporate ethics.
In FY2018, President and CEO sent out messages
emphasizing the importance of “reviewing whether
workplace rules correspond with the actual businessenvironment and having opportunities for discussion
about it in each workplace,” as well as “when aproblem arises, change your conduct in accordancewith the rules, or change the inappropriate rules inaccordance with the actual circumstances.”
Also, during October, we asked for submissions ofcompliance-themed senryu (Japanese short poem),
which helped each employee reflect on their workplace
and their own conduct.

Compliance Hotline

Reporting party(officers, employees, part-time
employees, dispatch workers, etc.
of IHI and affiliated companies)

TEL

FAX

WEB (internet)

Corporate ethics hotline (external institution)
Report content withwhistleblower’s approval
Accept consultations
either anonymously or
under real name

Report matter as is
If anonymous, mask
name, transmission
details, etc.
prior to reporting

IHI Legal Division

Feedback on response (for real-name consultations and upon request)

IHI conducts multifaceted training and education to
improve compliance awareness. Creative approaches
are taken to achieve highly effective activities, such as
ensuring that training is carefully tailored to the target
participants.

Compliance Hotline

Confidentiality

Individual IHI divisions andaffiliate companies, Compliance managers

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Compliance
Compliance Initiatives
With increasing globalization and borderless implicationsof corporate actions, fair international competition interms of price and quality has become necessary tosecure commercial opportunities. There is a growinginternational awareness that corrupt acts such as illegal
payoffs must be stamped out.
Against a backdrop of regional conflicts and terrorist
attacks around the globe, export controls have neverbeen more important. In response to this environment,
IHI has focused on compliance with competition law,anti-corruption law and the IHI’s own compliancemeasures for export control.

Export Control Compliance Organizational Chart
President
IHI Security Trade Control Committee
Chairperson: Executive Vice President
Secretariat
Head of Secretariat:
General Manager ofObservers
Head of Management Section ofeach division and business area

Legal Division
Security Trade
Control Gr., Legal Div.

Competition Law ComplianceManagers selected fromeach division and business area

Affiliated Companies

In addition to training employees on Japan’s
Antimonopoly Act, the U.S. Sherman Antitrust Act
and the EU Competition Law, IHI is working to makeits bidding process for public works projects moretransparent.

Managed by division andbusiness area in charge

Anti-corruption Law Compliance

Export Control Compliance

IHI regularly trains its employees regarding the U.S.
Foreign Corrupt Practices Act (FCPA), the U.K. 2010
Bribery Act and Japan’s Unfair Competition Prevention
Act. In addition, risk is monitored at both domestic andoverseas sales offices throughout the IHI.
IHI Group Basic Policy prohibits acts of bribery andinappropriate/unreasonable payment or donation toward
public officials, etc. To enhance the effectivenessof the policy, each division establishes its operating
standards, stipulate detailed procedures and appoint an
administrator of the policy.

IHI has internal compliance programs on export control
and an Export Control Committee to ensure compliancewith applicable export control laws and regulation
including Japan’s Foreign Exchange and Foreign TradeAct.
The committee is comprised of a chairman (anExecutive Vice President of IHI Corporation), secretary(Legal Div.), ordinary members (managers selected fromeach division, business area and SBU) and reviewers.
The committee is responsible for reviewing internationaltransactions, internal audits, monitoring, training,

Internal Audit Division
Technology & Intelligence
Integration
Global Marketing & Sales
Headquarters
Corporate Gr., Legal Div.

Review Board
Chairperson: Appointed by Committee
Review Board Members:
Elected from each division and business area

information sharing and raising awareness of related
laws and regulations.
Going forward, IHI will continue to improve its export
control by addressing needs and challenges identified
through internal auditing.

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Compliance
Performance Data
Compliance training results (FY2018)
No. ofparticipants

Targets
Executives

47

Line managers

75

e-Learning
participantsin Japan

18,234overseas

1,126

Compliance Hotline reports(Cases, as of March 31 each year)

FY

2015

2016

2017

2018

Count

333

218

209

238

Expenditure to political organizations,
economic organizations, other major industry
organizations(Millions of yen)
FY2015 FY2016 FY2017 FY2018
Political
organizations

10

10

10

10

Economicorganizations

41

41

42

48

Other majorindustryorganizations

55

55

55

101

Initiatives for legal compliance and thenumber of law violations (FY2018)
Law

Initiatives for legal
compliance

No. of law
violations

	Competition law

Competitionlaw

Anticorruption
lawcompliance training forJapan/overseas bases
	Operation of company
rules/regulations
Awareness-raising/training to prevent
corruptive practices
Monitoring of law
violation risk at both
Japan/overseas sales
bases	Operation of company
rules/regulations

0

0

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Information Security
Basic Policy
IHI, under its information security policies, strives to effectively manage information while maintaining and improving information security to protect the confidentiality of its customers
and business partners, as well as Company information and technical data.

IHI Information Security Policy
The IHI Group hereby sets the following IHI
Group Information Security Policy for the purposeof ensuring the security of information assets in
its possession and thereby further solidifying its
trust-based relationship with customers, users
and society.

3. Scope	This Information Security Policy applies to all
those using the information assets of the IHI
Group, including but not limited to officers andemployees of the IHI Group companies andtemporary staff.

1. Basic Activities
	The IHI Group will take appropriate measureswith technology, organization and employees,
in order to protect information assets against
any leakage, theft, loss, destruction, illegal
access, and disaster. In the event of any
security problem regarding this information,
the IHI Group will locate the cause as quickly
as possible, and exert every possible effort tominimize the damage incurred.

4. Compliance with Laws, Regulations, etc.
	The IHI Group will strictly observe thelaws, regulations and codes pertaining to
the protection of information assets, andthe requirements and obligations regarding
information security provided for in theagreements with the customers.

2. Information Assets
	"Information assets" refer to the information
the IHI Group handles in the course ofbusiness activities, regardless of the typeof media, and the equipment, facilities
and services necessary for handling suchinformation.

5. Education
	The IHI Group companies will provide all thoseusing the information assets of the IHI Group
with the necessary education on information
security to enhance and maintain theirawareness thereof.

7. Responsibilities of Senior Management
	The Senior Management of the IHI Groupwill set the example of enforcing thisInformation Security Policy. In the eventof any infringement of this Policy, they willaddress the situation properly by defining theirauthorities and responsibilities, and do theirutmost to resolve the problems, diagnose
their causes, and prevent their recurrence.
8. Punishment
	Any action in violation of the rules of
information security will incur punishment
according to regulation regarding employmentof the IHI Group companies.
9. Announcement
	This Information Security Policy will beannounced and notified to all those using theinformation assets of the IHI Group as well as
being announced to the public.

6. Management of Information Security
	The IHI Group companies will establish amechanism of implementing and managing
information security by taking such measures
as establishing rules concerning information
security and appointing persons in charge of
information management, thereby conducting,
maintaining and improving information security
activities on a continual basis.

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Information Security
Management System

Information Security Measures

Information Security Chart

Chief Executive Officer (CEO)Management Committee
IoT/ICT Promotion Committee
Information Security Subcommittee[Chairperson]	General Manager of Intelligent
Information Management
Headquarters[Secretariat]	Information Security Dept.
Intelligent Information
Management Headquarters

Head Office Divisions

Business Areas

IHI addresses information security risks from threeperspectives: rules, tools and education.
Internal rules include the Information Security Policy,
Information Security Countermeasure Standards andInformation System User Rules. IHI has implemented
various security tools, including antivirus software,and keeps their tools up to date. E-learning sessions
designed to maintain and raise security awarenessare held annually. In FY2018, 96.8% of all employees
participated in an e-learning program.
Computer virus infections caused by targeted e-mailattacks made headlines in 2011. Since even before
then, however, IHI has been working with government
agencies and specialists to institute countermeasuresagainst attacks. As of March 2019, IHI has not reported
any leaked information or related damage.

Information Security Management System
The Information Security Committee consisting ofrepresentatives from IHI's major divisions and Group
companies meets to coordinate planning, operations
and inspections three times a year.
Every year since FY2005, IHI has conducted an internal
audit of its information security measures and provided
guidance on improvements. A written survey of allgroup companies was conducted in FY2018, followed
by interviews of seven selected companies. The audit
found no major flaw in security measures.
If a serious information security event were to occur,
IHI would respond in accordance with the Basic Rules
on Crisis Management for IHI Group.
Divisions and Group companies engaged in sensitive
projects for the national government are subject toannual certification reviews under the ISO27001
international standard for information security
management systems, which is conducted by an
external organization, to maintain a high level of
information security.

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Timely and Proper Disclosure
Basic Policy of IR and SR Activities
In order to strengthen its relationship of trust withshareholders and investors, IHI promotes industrial
relations (IR) activities and shareholder relations (SR)
activities with an awareness of enhancing ourcorporate value.
IHI Corporation is well-aware that timely andappropriate disclosure of corporate information toinvestors forms the foundation of a sound financial
instruments market. Based on the basic principle ofpromoting highly transparent management throughout
the Company, its basic policy with regard to disclosureof information is to disclose important information
relating to the Company's management and/or
operations to participants in capital markets promptly,
accurately, continuously, and fairly, always from theinvestors’ perspective. The basic policy also calls on the
Company to show good faith in being accountable forits management course and key business operations.

System for Promoting Dialogue
The officer responsible for public relations and IR related
matters oversees investor relations (IR) activities, while
the officer responsible for administration related mattersoversees shareholder relations (SR) activities.
The Company shares information about every aspectof IR activities, including the collection, sharing,
disclosure and storage of material information, by
holding meetings led by the officers responsible forpublic relations and investor relations, attended by the
Public Relations Division, the Administration Division,
the Corporate Planning Division, and the Finance &Accounting Division.

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Timely and Proper Disclosure
Corporate Information
In addition to enhancing various disclosed materials,
IHI does its best to disseminate the content of suchmaterials via platforms such as the Internet to achieve
proactive and fair disclosure.
To communicate timely and appropriately with investors
and other stakeholders, IHI publishes the IHI Integrated
Report, which discloses precise financial and nonfinancial information. Briefings for financial analysts andinstitutional investors are held when the financial results
for the second quarter and full year are announced. IHI
also organizes telephone conferences after announcing
its financial results for the first and third quarters. At
each briefing held this year, we provided approximately
100 people with an overview of the term’s financial
results, our progress in implementing ongoing businessplans.
In addition to disclosing information as required by
law IHI has established the “Information Delivery
Service” for its individual shareholders to deepen theirunderstanding of the IHI Group’s businesses.
In FY2018, we distributed the IHI Integrated Report toshareholders and conducted a tour at our Mizuho andAioi Works.

Reference

IR

Reference

IHI Integrated Report

Communication with Investors Overseas
IHI’s proactive IR activities are deploying increasingly
diverse communication channels, including direct
meetings, investor conferences and one-on-one
interviews.
In FY2018, IHI executive officers visited North America,
Europe and Asia to strengthen relationships withinstitutional investors. Many investors expressedsatisfaction with our briefings, as seen in feedback suchas “We were extremely appreciative of the President’s
detailed explanation" and "The story we were told aboutreforms and improvements was very persuasive.”
During FY2018, direct meetings, investor conferences,
one-on-one interviews and other methods were also
implemented to communicate with some 140 foreign
institutional investors.

Dialogue with Shareholders
IHI Corporation engages in debate on importantmanagement policies, corporate governance, andother topics with major shareholders who haveinvestment policies according with the medium tolong-term interests of shareholders. Dialogues withinvestors are handled by the Public Relations Division,
while dialogues with shareholders are handled by the
Administration Division, and depending on who hasapplied to attend, and the purpose and content of the
dialogue, directors or executive officers in charge may
also attend. Important dialogue content is reported to
the Board of Directors.

Plant Tour for Shareholders
In FY2018, IHI conducted a tour at its Mizuho and Aioi
Works for shareholders registered to the “Information
Delivery Service”.
Showing shareholders where IHI manufactures its main
products, such as aero engines and power generation
boilers, enabled shareholders to sense firsthand ourmonozukuri (precision-manufacturing) capabilities, ourconnection with society and our future potential.

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Risk Management
Basic Policy
IHI recognizes that risk management is one of the
top business priorities for the Group, and strives toreinforce its overall capabilities in that regard. The basic
objectives of risk management are ensuring business
continuity, ensuring the safety of executives, employees
and their families, protecting managerial resources, andmaintaining public trust in IHI Group companies. Also,
IHI performs risk management in accordance with the“Basic Code of Conduct for the IHI Group”, as well as
the following action guidelines.
1.	Ensure the continuity of the IHI Group’s business
operations
2.	Improve the public reputation of the IHI Group
3.	Protect the IHI Group’s managerial resources
4.	Avoid jeopardizing stakeholders’ interests
5. Achieve recovery from damage as soon as possible
6. Take responsible action when an issue arises
7. Meet public requirements regarding risks

Management System
We established the Risk Management Conference
under the leadership of the CEO. The Conference
assesses key general risk management matters, andconsiders policies, annual plans, corrective measures,and other important matters.
We formulated the IHI Group Key Risk Management
Policies. All parent units and Group companies in Japanand abroad independently pursue risk management inkeeping with those policies.
Regarding commonly existing risks in the IHI Group,
the Group Risk Management Units, which compriseparent divisions, take responsibility for supporting eachgroup units, as well as monitoring the implementationof the rules and developing effective risk management
measures. The Internal Audit Division assesses Grouprisk management structure deployments and progressto ensure their suitability.

Risk Management System

Board of Directors

Chairperson: CEO
Risk Management Conference

GeneralManager ofHead Office
Division

President of Business Area
Risk
Management
Group

GeneralManager ofBusiness Unit

GeneralManager ofBusiness Unit

Group Risk Management Unit
Group Risk Management Unit
Department
Affiliatedcompanies

Department
Affiliatedcompanies

Department
Affiliatedcompanies

Department
Affiliatedcompanies

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Risk Management
Key Policies for Risk Management in FY2019
In response to the inadequate quality assurance
practices occurring in civil aero engine maintenancebusiness, IHI strengthens its compliance/QA systems
and risk management of business operations, andpromotes initiatives for recurrence prevention. Afterclarifying roles and responsibilities of corporate,business areas, and business divisions including
affiliated companies in risk management, IHI promotes
the below major themes of risk management.

Risk management Framework

Top-down themes
1. Reinforce compliance structure
2. Strengthen quality assurance
structure
3. Address key business risks

Risk
Management
Conference
Held quarterly

Constantly assess and confirm theresponse plans and implementation
progress for more than 100
business-related risks

Risk management planning andimplementation responding to the themes
defined by the top-down approach

Risk management planning andimplementation through checking businessactivities by the bottom-up approach

1.	Reinforce compliance structure
2. Strengthen quality assurance structure
3.	Address key business risks

1.	Thoroughly implementing and strengthening safety
management
2.	Strengthening of compliance3.	Reform of quality systems and operational systems
4.	Response to changing management environmentand competitive environment
5.	Appropriate responses to risks associated with theexecution of global strategy
6.	Transforming to robust project implementation andrisk management structures
7.	Ensuring appropriateness of large-scale investments
8.	Compliance with environmental law andenvironmental management
9.	Elimination of long working hours and improvementof work efficiencies through the promotion of work
style reforms
10.	Prevention of the outflow of business proprietary,
personal, and vital technical information
11.	Ensuring information security
12.	Appropriate development of the Business Continuity
Plan in case of disasters/accidents
13.	Maintaining and improving relationships of trust withstakeholders
14.	Further promotion of improvement of diversity
15.	Thorough implementation of measures against
harassment
16.	Promotion of human rights education and awarenessactivities

Three risk levels
Defense lines

Div. in charge

Response

Internal Audit Div.

Guarantee risk management
functions

Corporate

Evaluate and advice, issue alerts,
detect risks, and roll out measures

2

Business Areas

Monitor and instructand detect risks

1

Departments
SBUs
Affiliates

Identify risks and respond directly

3

Bottom-up initiatives

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Risk Management
Anti-Disaster Initiatives
IHI Group’s Approach to Anti-DisasterAs preparation for ordinance-designated disasters, IHI
has established a system to secure the safety of its
employees and ensure business continuity.
To this end, we stipulated company rules, and had eachbusiness site/division/affiliate company formulate its
own BCP (business continuity plan). These efforts wererecognized by Japan’s Cabinet Office in 2016 in theform of Resilience Certification.
We are also making steady progress with capital
investment for earthquake resistance of our plants andoffices, as well as cooperation with local communities.

BCP Formulation and Improvement
In order to maintain and improve the effectivenessof BCP, IHI has declared every May as “BCP Review
Month,” whereby each division revises the BCP it
has formulated, IHI promotes employees to registerin the safety confirmation system, reconfirms the
emergency contact network and various other revisions.
Furthermore, every year in March, we hold IHI Group
Extreme Disaster Countermeasure Training participatedin by management executives including the President.
By changing the presumed damage every year, we
validate the effectiveness of BCP from various angles.
At our affiliate companies also, the training is carried out
as part of constant improvement of BCP.

FY2019 Action Plan

IP Education

IHI holds training and verification to further improve BCP
effectiveness and particularly focuses on establishing asystem to rapidly share damage information.

Employees learn about IP in their first to fifth years
at IHI via e-learning. Moreover, business operation
divisions and group companies impart general education
covering patent audits, rights acquisition policies,
copyrights, trademark naming and more. In December
2018, outside speakers were brought in to lecture on
IP that effectively made the workforce more aware andknowledgeable of IP strategies.

Protecting Intellectual Property
Basic Policy
IHI is enhancing its intellectual property (IP) activities tosupport business and R&D. It also manages a Groupwide IP management system. The basic principle is toprotect Group IP while respecting the rights of third
parties.
To protect its technologies and trade secrets, thecompany is strategically managing business andproduct IP through rights acquisition and confidentiality
measures.

IP Protection and IP Rights of Third Parties
IHI files patent applications both inside and outside ofJapan in line with expanding global business.
Moreover, to reduce related business risks, IHI
researches patents owned by other companies andpatent acquisition trends to ensure respect for thirdparty IP rights.

Performance Data
Owned patents(IHI)

FY2015 FY2016 FY2017 FY2018
Domestic patents

4,050

4,157

3,915

4,120

Overseas patents

2,622

2,744

2,598

3,047

Owned patents by location (FY2018)
Other 590 (8%)
BRICs 137 (2%)
Korea 193 (3%)
China 499 (7%)
Europe1,037 (14%)

Japan 4,120(57%)

USA 591 (8%)

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Performance
Objectives
Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Non-financial Summary . . . . . . . . . . . . . . . . . . . . 71

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Financial Summary
FY

2015

2016

2017

Key financial highlights

2018(billions of yen)

FY

2015

2016

2017

2018

Europe

139.9

116.1

132.6

102.2

Orders received

1,605.3

1,389.8

1,505.0

1,399.2

Asia and other

320.9

321.5

324.7

284.9

Sales

1,539.3

1,486.3

1,590.3

1,483.4

Japan

742.4

728.9

782.3

769.9

Operating income

22.0

47.3

72.2

82.4

Sales by business segment

Share of profit of entities
accounted for using equity method

1.1

(3.5)

(33.0)

4.1

Resources, Energy & Environment

452.4

427.3

490.4

377.0

(12.3)(25.3)(50.8)(16.7)

Social Infrastructure & Offshore
Facilities

168.1

157.7

154.5

143.1

Ordinary income

9.7

22.0

21.4

65.7

Industrial Systems &General-Purpose Machinery

404.7

411.6

459.0

441.0

Profit attributable to owners of parent

1.5

5.2

8.2

39.8

Aero Engine, Space & Defense

500.2

471.9

463.7

492.2

R&D expenses

41.6

35.5

38.6

36.5

Investment in plant and equipment

50.8

52.7

59.2

67.3

Depreciation

46.7

46.6

44.8

42.9

Total assets

1,715.0

1,692.8

1,633.4

1,664.5

Interest-bearing debt

374.5

371.9

322.2

355.0

Net assets

333.3

337.6

350.2

381.6

Employees

29,49429,65929,70629,286

Net non-operating income

Per share data
Profit attributable to owners ofparent per share 1
Book value per share 2
Annual dividends per share

(yen)
9.90

33.98

53.71

258.53

2,061.63

2,060.33

2,103.22

2,263.12

30.00

0.00

60.00

70.00

Sales by region
United States(billions of yen)
336.1

319.8

350.7

(billions of yen)

Financial index
Percentage of overseas sales

(%)
51.80

51.00

51.00

48.00

Operating margin

1.4

3.2

4.5

5.6

ROIC (return on invested capital) 3

2.3

5.0

7.7

8.7

ROA (return on assets) 4

0.1

0.3

0.5

2.4

ROE (return on equity) 5

0.5

1.6

2.6

11.8

Debt-to-equity ratio (times) 6

1.12

1.10

0.92

0.93

Equity to total assets

18.6

18.8

19.9

21.0

1. Profit attributable to owners of parent / total number of shares outstanding
2. Net assets / total number of shares outstanding
3. (Operating income + Interest and dividend income) after tax / (Owners’ equity + Interest-bearing debt)
4. Profit attributable to owners of parent / (Average of total assets at end of previous term and end ofcurrent term)
5. Profit attributable to owners of parent / (Average of previous fiscal year-end and current fiscal year
owners’ equity)
6. Net interest-bearing debt / Net assets

326.4

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Financial Summary
FY

2015

2016

2017

Balance sheet-related information
Current assets

2018(billions of yen)

1,100.5

1,073.8

993.4

987.8

614.5

618.9

640.0

676.6

1,715.0

1,692.8

1,633.4

1,664.5

Current liabilities

882.7

876.2

811.6

823.1

Provision for construction warranties
Provision for loss on construction
contracts

97.5

85.2

80.9

69.1

Non-current liabilities

498.9

478.9

471.6

459.7

1,381.6

1,355.2

1,283.2

1,282.8

Shareholders’ equity

305.8

309.9

313.2

343.4

Total net assets

333.3

337.6

350.2

381.6

1,715.0

1,692.8

1,633.4

1,664.5

Non-current assets
Total assets

Total liabilities

Total liabilities and net assets

Cash flow statement-related information

(billions of yen)

Cash flow from operating activities

95.3

65.3

99.0

46.4

Cash flow from investing activities(35.5)(28.9)(47.9)(79.2)Cash flow from financing activities(47.5)(21.9)(57.3)

16.4

Change in interest-bearing debt

(36.1)(2.6)(49.7)

32.8

Free cash flow 7

59.8

36.4

51.0

(32.8)

7. Cash flow from operating activities / Cash flow from investing activities
For more detailed information,please refer to the website.

Financialhttps://www.ihi.co.jp/en/ir/

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Non-financial Summary
Material issues

Theme and index

Results
FY2016FY2017FY2018Average attendance rate (%) of outside directors at Board of Directors’
meetings

94.0

95.3

96.6

Average attendance rates of outside Audit & Supervisory Board
members on the Board of Directors and Audit & Supervisory Board (%)

93.0

98.1

96.1

No. of law violations / No. of guidance cases: Competition law

0

0

0

No. of law violations / No. of guidance cases: Anticorruption law

0

0

0

Compliance Hotline reports 1

218

209

238

No. of participants: Executives

55

50

47

No. of participants: Line managers

73

83

75

No. of participants: Employees (domestic)

18,85918,02018,234

No. of participants: Employees (overseas)

1,392

1,261

1,126

Participatory rate (%) 2

98.5

98.0

96.8

No. of owned patents by region: Domestic 2

4,157

3,915

4,120

No. of owned patents by region: Overseas 2

2,744

2,598

3,047

316,914330,162

329,602

CO2 emission intensity (t-CO2/100 mill yen)

21.3

20.8

22.2

Energy consumption (TJ)

6,015

6,087

5,828

Energy intensity (TJ/10 bill yen)

40.5

38.3

39.3

Governance – Principled corporate management –Strengthening of corporate
governanceCorporate governance

Legal compliance
Whistleblowing
Strengthening of compliance
Compliance training

Strengthening of information
security

Information security training

Enforcement of risk management

Protection of intellectual
property

Environment – Reduce environmental impact –CO2 emissions (t-CO2)
CO2 emissions

Climate change

Energy consumption

Evaluation of CDP climate change

A(Leadership)

B(Management)

B(Management)

1. Japan in FY2016. Some other countries are included since FY2017.
2. IHI71

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Non-financial Summary
Material issues

Theme and index

Results
FY2016FY2017FY201830,531

28,69129,010Waste generated intensity (ton/100 mill yen)

2.05

1.80

1.96

Water consumption (1,000 m2)

4,169

3,776

4,182

Water consumption intensity (1,000 m2/10 bill yen)

28.0

23.7

28.2

0

0

0

Nikkei Environmental Management Survey

429

431

437

Participatory rate for environmental e-Learning (%) 3

84.3

85.3

85.6

Social contribution expense (100 mill yen)

2.06

3.31

6.35

New graduate employment 2

288

245

155

Breakdown – Engineers: Men 2

208

174

110

Engineers: Women 2

21

19

7

Administrative: Men 2

40

36

25

Administrative: Women 2

19

16

13

Mid-career employment (people) 2

153

29

78

Disabled people employment percentage (%) 2

2.14

2.03

2.21

People selecting a retirement age of 61 or above (%) 2

84

87

84

Number of female managers 2

66

68

74

Ratio of female managers (%) 2

2.5

2.6

2.8

2

4

4

Waste generated (ton)
Waste generated
Circular economy
Water consumption

Environmental protection

Compliance withenvironmental laws andregulations

Major environmental law/regulation violations/environmental incidents(cases)Environmental management

Society – Materialize an affluent society –Corporate citizenshipSocial contributions

Employment
Diverse human resources

Gender diversity

Female officers 2
2. IHI
3. Japan72

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Non-financial Summary
Material issues

Theme and index

FY2016FY2017FY2018

Approx. 3,300

Approx. 2,900

Approx. 3,300

Approx. 112,000

Approx. 101,000

Approx. 112,000

No. of participants in open lectures (people) 3

Approx. 5,800

Approx. 5,800

Approx. 6,200

No. of hours for open lectures (hours) 3

Approx. 46,000

Approx. 44,000

Approx. 47,000

Health checkup prevalence rate (%) 4

70

69

70

Stress check participation rate (%) 4

90

91

96

Smokers (%) 4

29

28

28

No. of fatalities or injuries through work-related accidents per million working hours(excluding non-loss-time accidents)

0.33

0.57

0.26

Employees with reduced work hours 2

149

159

158

No. of people who have taken childcare leave (people) 2

674

677

689

No. of people who have taken parental leave (people) 2

89

111

113

Percentage returning to work after taking parental leave (%) 2

100

100

100

No. of people who have taken nursing care leave (people) 2

11

18

6

Average of annual paid vacation days acquired[regular employees] (days) 2

16.50

17.63

18.36

Average monthly overtime work (hours) 2

23.90

22.90

22.50

No. of labor union members 2

7,884

7,851

7,564

No. of participants in position-specific training (people) 3
No. of hours for position-specific training (hours) 3
Diverse human resources

Results

Professional development

Safety and hygiene

Lost time injuries frequency rate (%) 5

Labor practices

Work-life balance

Labor-management
partnership
2. IHI
3. Japan
4. 35 IHI Group companies
5. 32 IHI Group companies

73

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GRI Standards Content Index . . . . . . . . . 75

74

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SUSTAINABILITY DATA BOOK 2019 (SDB2019) Reference Pages/Website URL

102: General Disclosures
1. Organizational profile
102-1

Name of the organization

About IHI (Website)
https://www.ihi.co.jp/en/company/outline/
P4: IHI Group Basic Information

102-2

Activities, brands, products, and services

102-3

Location of headquarters

Products (Website)
https://www.ihi.co.jp/en/products/
About IHI (Website)
https://www.ihi.co.jp/en/company/outline/
P4: IHI Group Basic Information

102-4

Location of operations

102-5

Ownership and legal form

Offices (Website)
https://www.ihi.co.jp/en/company/offices/
About IHI (Website)
https://www.ihi.co.jp/en/company/outline/
P4: IHI Group Basic Information

102-6

Markets served

Offices (Website)
https://www.ihi.co.jp/en/company/offices/
P34: Human Resource Management
P69: Performance Data

102-7

Scale of the organization

About IHI (Website)
https://www.ihi.co.jp/en/company/outline/
Financial Highlights(Website)
https://www.ihi.co.jp/en/ir/ir_highlight/
Products (Website)
https://www.ihi.co.jp/en/products/

102-8

Information on employees and other workers

102-9

Supply chain

102-10Significant changes to the organization and its supply chain

P34: Human Resource Management−IR
https://www.ihi.co.jp/en/ir/
P12: Environmental Management
P21: Circular Economy
P23: Environmental Protection

102-11

Precautionary Principle or approach

P41: Labor Practices
P45: Human Rights
P57: Compliance
P61: Information Security
P65: Risk Management75

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102-12External initiatives

102-13

Membership of associationsSUSTAINABILITY DATA BOOK 2019 (SDB2019) Reference Pages/Website URL
P9-10: IHI Group Material Issues
P19: Climate Change−

2. Strategy
102-14

Statement from senior decision-maker102-15Key impacts, risks, and opportunities

Message from the President
https://www.ihi.co.jp/csr/english/topmessage/
P9-10: IHI Group Material Issues
P19: Climate Change
P65: Risk Management

3. Ethics and integrity
P6-7: IHI Group Basic Information

102-16

Values, principles, standards, and norms of behavior

Visionhttps://www.ihi.co.jp/en/company/policy/vision/
Basic Code of Conduct
https://www.ihi.co.jp/en/company/policy/guideline/

102-17

Mechanisms for advice and concerns about ethics

P58: Compliance

4. Governance102-18Governance structure102-19Delegating authority

102-20Executive-level responsibility for economic, environmental, and social topics

102-21

Consulting stakeholders on economic, environmental, and social topics

P8: IHI Group Basic Information
P48: Corporate GovernanceP8: IHI Group Basic Information
P48: Corporate GovernanceP8: IHI Group Basic Information
P48: Corporate GovernanceP8: IHI Group Basic Information
P63-64: Timely and Proper Disclosure
P47: Corporate Governance102-22Composition of the highest governance body and its committees

Corporate Officers
https://www.ihi.co.jp/en/company/executivelist/
Corporate Governance Reporthttps://www.ihi.co.jp/var/ezwebin_site/storage/original/application/a4f15b9e115eb5d07a52d13156777f0a.pdf

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P48: Corporate Governance102-23Chair of the highest governance body

Corporate Officers
https://www.ihi.co.jp/en/company/executivelist/
Corporate Governance Reporthttps://www.ihi.co.jp/var/ezwebin_site/storage/original/application/a4f15b9e115eb5d07a52d13156777f0a.pdf
P48-49: Corporate Governance102-24

Nominating and selecting the highest governance body

Corporate Governance Reporthttps://www.ihi.co.jp/var/ezwebin_site/storage/original/application/a4f15b9e115eb5d07a52d13156777f0a.pdf
P49: Corporate Governance102-25

Conflicts of interest

General Stock Information (Website)
https://www.ihi.co.jp/en/ir/stock/information/
Corporate Governance Reporthttps://www.ihi.co.jp/var/ezwebin_site/storage/original/application/a4f15b9e115eb5d07a52d13156777f0a.pdf

102-26

Role of highest governance body in setting purpose, values, and strategy

102-27

Collective knowledge of highest governance body102-28

Evaluating the highest governance body’s performance102-29Identifying and managing economic, environmental, and social impacts

102-30Effectiveness of risk management processes

102-31

Review of economic, environmental, and social topics

102-32Highest governance body’s role in sustainability reporting

P8: IHI Group Basic Information

102-33

Communicating critical concerns

P65: Risk Management102-34Nature and total number of critical concerns

P65: Risk Management102-35

Remuneration policies

Corporate Governance Reporthttps://www.ihi.co.jp/var/ezwebin_site/storage/original/application/a4f15b9e115eb5d07a52d13156777f0a.pdf

102-36

Process for determining remuneration

P52: Corporate Governance102-37

Stakeholders’ involvement in remuneration

P52: Corporate Governance102-38Annual total compensation ratio−

102-39Percentage increase in annual total compensation ratio−

P8: IHI Group Basic Information−
P54: Corporate GovernanceP9-10: IHI Group Material Issues
P66: Risk Management
P65: Risk Management−

P52: Corporate Governance77

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5. Stakeholder engagement102-40

List of stakeholder groups

P8: IHI Group Basic Information

102-41

Collective bargaining agreements

P44: Labor Practices

102-42

Identifying and selecting stakeholders

P8: IHI Group Basic Information

102-43

Approach to stakeholder engagement

P8: IHI Group Basic Information

102-44

Key topics and concerns raised−

6. Reporting practice102-45

Entities included in the consolidated financial statements

Offices (Website)
https://www.ihi.co.jp/en/company/offices/102-46

Defining report content and topic Boundaries

P3: Editorial Policy

102-47

List of material topics

P9-10: IHI Group Material Issues

102-48

Restatements of information−

102-49Changes in reporting−

102-50

Reporting period

P3: Editorial Policy

102-51

Date of most recent report

P3: Editorial Policy

102-52

Reporting cycle

P3: Editorial Policy

102-53

Contact point for questions regarding the report

Contact Us (Website)
https://www.ihi.co.jp/en/contact/

102-54Claims of reporting in accordance with the Standards

P3: Editorial Policy

102-55

Content index

P74: GRI Standards Content Index

102-56External assurance

P88: Back Page−

103: Management Approach
103-1

Explanation of the material topic and its Boundary[Policy] of each reporting issues

103-2

The management approach and its components

Each reporting issues

103-3

Evaluation of the management approach

Each reporting issues

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200: Economic
201: Economic Performance
−

201-1

Direct economic value generated and distributed

201-2

Financial implications and other risks and opportunities due to climate change

201-3

Defined benefit plan obligations and other retirement plans

−

201-4

Financial assistance received from government−

P19: Climate Change

202: Market Presence
202-1

Ratios of standard entry level wage by gender compared to local minimum wage

202-2

Proportion of senior management hired from the local community−
P38: Diverse Human Resources203: Indirect Economic Impacts
203-1

Infrastructure investments and services supported

203-2

Significant indirect economic impacts

News (Website)
https://www.ihi.co.jp/en/all_news/−

204: Procurement Practices
204-1

−

Proportion of spending on local suppliers

205: Anti-corruption
−

205-1

Operations assessed for risks related to corruption

205-2

Communication and training about anti-corruption policies

P59: Compliance

205-3

Confirmed incidents of corruption and actions taken

P60: Compliance

206: Anti-competitive Behavior
206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

P60: Compliance

300: Environmental
301: Materials
301-1

Materials used by weight or volume

−

301-2

Recycled input materials used

−

301-3

Reclaimed products and their packaging materials−

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302: Energy
302-1

Energy consumption within the organization

302-2

Energy consumption outside of the organization

302-3

Energy intensity

P20: Climate Change

302-4

Reduction of energy consumption

P19-20: Climate Change

302-5

Reductions in energy requirements of products and services

P17-18: Reduce the Environmental Impact of Products and Services

P20: Climate Change−

303: Water and Effluents
303-1

Interactions with water as a shared resource

−

303-2

Management of water discharge-related impacts

−

303-3

Water withdrawal

P22: Circular Economy

303-4

Water discharge

P22: Circular Economy

303-5

Water consumption

P22: Circular Economy

304-1

Operational sites owned, leased, managed in, or adjacent to, protected areas andareas of high biodiversity value outside protected areas

P31: Corporate Citizenship

304-2

Significant impacts of activities, products, and services on biodiversity

304-3

Habitats protected or restored

304-4

IUCN Red List species and national conservation list species with habitats in areas
affected by operations

304: Biodiversity−
P31: Corporate Citizenship−

305: Emissions
305-1

Direct (Scope 1) GHG emissions

P20: Climate Change

305-2

Energy indirect (Scope 2) GHG emissions

P20: Climate Change

305-3

Other indirect (Scope 3) GHG emissions

305-4

GHG emissions intensity

P20: Climate Change

305-5

Reduction of GHG emissions

P20: Climate Change

305-6

Emissions of ozone-depleting substances (ODS)

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions−−
P22: Circular Economy

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306: Effluents and Waste
306-1

Water discharge by quality and destination

−

306-2

Waste by type and disposal method

−

306-3

Significant spills

306-4

Transport of hazardous waste

−

306-5

Water bodies affected by water discharges and/or runoff−

P24: Environmental Protection

307: Environmental Compliance
307-1

Non-compliance with environmental laws and regulations

P24: Environmental Protection

308: Supplier Environmental Assessment
308-1

New suppliers that were screened using environmental criteria

−

308-2

Negative environmental impacts in the supply chain and actions taken−

400: Social
401: Employment
401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not provided to temporary or parttime employees

401-3

Parental leave

P38: Diverse Human Resources
P34: Human Resource Management−
P43: Labor Practices

402: Labor/Management Relations
402-1

−

Minimum notice periods regarding operational changes

403: Occupational Health and Safety
−

403-1

Occupational health and safety management system403-2

Hazard identification, risk assessment, and incident investigation

403-3

Occupational health services

403-4

Worker participation, consultation, and communication on occupational health andsafetyP41: Labor Practices

403-5

Worker training on occupational health and safety

P42: Labor Practices

403-6

Promotion of worker health

P42: Labor Practices

P42: Labor Practices−

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403-7

Prevention and mitigation of occupational health and safety impacts directly linked bybusiness relationships

−

403-8

Workers covered by an occupational health and safety management system

−

403-9

Work-related injuries

403-10Work-related ill health

P43: Labor Practices−

404: Training and Education
404-1

Average hours of training per year per employee

P40: Diverse Human Resources

404-2

Programs for upgrading employee skills and transition assistance programs

P39: Diverse Human Resources

404-3

Percentage of employees receiving regular performance and career development
reviews−

405: Diversity and Equal Opportunity
405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of women to men

P34: Human Resource Management
P35: Diverse Human Resources−

406: Non-discrimination
406-1

−

Incidents of discrimination and corrective actions taken

407: Freedom of Association and Collective Bargaining
407-1

Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk

P28: Supply Chain Management

Operations and suppliers at significant risk for incidents of child labor

P28: Supply Chain Management408: Child Labor
408-1

409: Forced or Compulsory Labor
409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labor

P28: Supply Chain Management

410: Security Practices
410-1

Security personnel trained in human rights policies or procedures−

411: Rights of Indigenous Peoples
411-1

Incidents of violations involving rights of indigenous peoples−

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412: Human Rights Assessment
412-1

Operations that have been subject to human rights reviews or impact assessments

P45: Human Rights

412-2

Employee training on human rights policies or procedures

P45: Human Rights

412-3

Significant investment agreements and contracts that include human rights clauses orthat underwent−

413: Local Communities
413-1

Operations with local community engagement, impact assessments, anddevelopment programs

−

413-2

Operations with significant actual and potential negative impacts on local communities−

414: Supplier Social Assessment
414-1

New suppliers that were screened using social criteria

414-2

Negative social impacts in the supply chain and actions taken−
P27: Supply Chain Management415: Public Policy
415-1

Political contributions

P60: Compliance

416: Customer Health and Safety
416-1

Assessment of the health and safety impacts of product and service categories

−

416-2

Incidents of non-compliance concerning the health and safety impacts of products
and services−

417: Marketing and Labeling
−

417-1

Requirements for product and service information and labeling

417-2

Incidents of non-compliance concerning product and service

P26: Customer Relationship Management

417-3

Incidents of non-compliance concerning information and labelingP26: Customer Relationship Management

418: Customer Privacy
418-1

Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data

P62: Information Security

419: Socioeconomic Compliance419-1

Non-compliance with laws and regulations in the social and economic area

P60: Compliance83

I H I SUSTAINABILITY DATA BOOK 2019

IHI Group Basic
Information

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84

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Principled
Corporate
Management

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Sustainability

Corporate Philosophy and Policies

Research & Development

Item

Sustainability Data Book/Website

Message from the President

Message from the President (Website)
https://www.ihi.co.jp/csr/english/topmessage/

IHI Group Basic Information

P4

Basic Code of Conduct

P7

IHI Group Material Issues

P9-10

Corporate Philosophy

P6Group Vision

P6

Group Management Policies

P6

IHI Technology Strategy

Group Technology Strategy (Website)
https://www.ihi.co.jp/en/technology/technology_policy/

R&D expenses

P69

About IHI

About IHI (Website)
https://www.ihi.co.jp/en/company/outline/
P4

Company Profile

Organization

Organization (Website)
https://www.ihi.co.jp/en/company/organization/
P5

Financial Information

Environmental Management
Environment

Reduce the Environmental Impact of
Products and Services

Offices

Offices (Website)
https://www.ihi.co.jp/en/company/offices/

Financial Highlights

P69-70Consolidated Financial Report

Consolidated Financial Report (Website)
https://www.ihi.co.jp/en/ir/ir_library/result/

Annual Securities Report, etc.

Annual Securities Report, etc. (Website)
https://www.ihi.co.jp/en/ir/ir_library/securities/

Basic Policy

P12

Basic Environmental Policy

P12Group Environmental Action Plan

P13

Management System

P15

Environmentally Friendly Products Certification Scheme

P17

Certified Products

P18

85

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ImpactMaterialize an
Affluent Society

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Corporate
Management

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Climate Change

Environment

Circular Economy

Environmental Protection

Customer Relationship Management

Supply Chain Management

Human Rights

SocialHuman Resource

Corporate Citizenship

Item

Sustainability Data Book/Website

Risk and Opportunity due to Climate Change

P19

Energy Consumption

P19

GHG Emissions

P19

Waste

P21

Toxic Waste

P21

Water

P21

Chemical Substances

P22

Water Pollution Prevention

P23

Soil Contamination Prevention

P24

Biodiversity

P24, P31

Product Safety

P26

Disclosure of Information about Products and Services

P26

Basic Policy

P27

IHI Group Procurement Policy

P27

Initiatives for Legal Compliance

P28

Human Rights

P45

Basic Policy

P33Group Human Resource Management Policy

P33

Diverse Human Resources

P35-38Human Resource Development

P39-40Occupational Health and Safety

P41-43Work- Life Balance

P42

Partnership between Labor and Management

P44

Basic Policy

P30

Material issues of social contribution activities

P30

Social Contributions

P30-3286

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Corporate GovernanceCompliance
Governance

Information Security

Risk Management

Item

Sustainability Data Book/Website

Basic Stance

P47

Corporate Governance System

P48

Policies and Procedures Relating to Appointmentof Officers

P49

Policies on Determining of Remuneration for Officers

P52

Board of Directors Evaluation

P54

Basic Policy

P57

Management System

P57

Compliance Education

P58

Compliance Hotline

P58

Compliance Initiatives

P59

Basic Policy

P61

Management System

P62

Information Security Measures

P62

Basic Policy

P65Management System

P65

Key Policies for Risk Management

P66

Anti-Disaster Initiatives

P67

Protecting Intellectual Property

P67

87

Corporate Planning Division
Toyosu IHI Building, 1-1, Toyosu 3-chome, Koto-ku, Tokyo 135-8710, Japan
TEL : +81-3-6204-7800 FAX : +81-3-6204-8618
URL : https://www.ihi.co.jp/en/index.html