IHI

Sustainability Data Book
2021

Basic Information

Editorial Policy
Basic Information

IHI
Sustainability
Data Book
2021

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

CONTENTS
Editorial Policy............................................................................................... 2
Basic Information......................................................................................... 3
Sustainability Management

Sustainability Management
IHI Group Material Issues

IHI Group Material Issues.......................................................................... 8

Sustainability Management

Sustainability Management....................................................................... 10

Sustainable Development Goals (SDGs) Initiatives

Sustainable Development Goals (SDGs) Initiatives................................. 13
Innovation Management............................................................................ 14

Innovation Management

Corporate Management

Corporate Management

Corporate Governance............................................................................... 20

Corporate GovernanceCompliance.................................................................................................. 28

Compliance

Risk Management....................................................................................... 35

Risk Management

How to use this Report

Information Security

There are navigation buttons and a sidebar in each

Materialize an Affluent Society
Human Rights

page to make navigating through the pages easier.

How to use the navigation buttons

Customer Relationships

Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact

Materialize an Affluent Society
Human Rights.............................................................................................. 42
Customer Relationships............................................................................. 45
Human Resource Management................................................................ 47

Human Resource Management
Diversity and Inclusion

Information Security................................................................................... 38

Return to
the Index

Return to theprevious page

Go to thenext page

Return to the previously
opened page

Diversity and Inclusion (Human Resource Development)...................... 55
Labor Practice (Occupational Health and Safety).................................... 59

How to use the sidebar
Editorial Policy

Diversity and Inclusion............................................................................... 50

Jump to thestarting pageof each category

Basic Information
Sustainability Management

Supply Chain Management........................................................................ 65
Corporate Citizenship................................................................................. 67

Reduce Environmental Impact

IHI GroupGroup Material
MaterialIssues
Issues▶IHI

Environmental Management..................................................................... 71

Environmental Management

Sustainability Management

Reduction of the Environmental Impact of Products and Services...... 75

Reduction of the Environmental Impact of Products
and Services

Jump to theselected
Sustainable Development
Goals(SDGs) Initiatives

Climate Change........................................................................................... 77

Innovation Management

Circular Economy........................................................................................ 82

Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

section of the category

Corporate Management

Environmental Protection........................................................................... 85

Performance Objectives............................................................................ 87

Performance
Objectives001

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Editorial Policy
Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues

The IHI Sustainability Data Book 2021 is a comprehensive
annual report to share information such as oursustainability policies, approaches, frameworks, andperformance.
The IHI Group's Sustainability website provides the latest
information about our sustainability.

Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance

Scope of the IHI Sustainability Data Book
IHI Corporation and its consolidated subsidiaries(Note: the report includes some non-consolidated
information about IHI Corporation as well as details witha more specific scope)Compliance

Reporting Period

Risk Management

FY2020 (April 1, 2020 to March 31, 2021)
Please note that the report includes some informationfrom before fiscal 2019 and forecasts of fiscal 2021 andlater.

Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion

Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Main Topics

August 2021
(The previous Sustainability Data Book was published in
September 2020. The upcoming Sustainability Data Bookis tentatively set for release in 2022)

Reference Guidelines•

Global Reporting Initiative (GRI) Sustainability ReportingStandards
Sustainability Accounting Standards Board (SASB)• Environmental Reporting Guidelines 2018, Ministry of
the Environment• Task Force on Climate-related Financial Disclosures(TCFD)•

Annual Report

Latest Information

Society and theEnvironment
Sustainability
Websitehttps://www.ihi.co.jp/csr/english/

Sustainability
Data Book

EconomyIntegrated
Report• Annual Securities
Report• Corporate
Governance
ReportPublication Date

Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)

Structure of Information Disclosure Regarding Main Sustainability Topics
In order to respond to the various requests of stakeholders, the IHI Group discloses information through several
mediums.

Investor Relations (IR)
Websitehttps://www.ihi.co.jp/en/ir/

Scope of Data

Disclaimer

The scope of data covered in this report is as follows:“Principled Corporate Management” and “Materialize an
Affluent Society”: Specific scopes are indicated for eachdata
“Reduce Environmental Impact”: IHI Corporation and its
consolidated subsidiaries (Note: some data have a more
specific scope)

The IHI Sustainability Data Book 2021 not only contains
facts about the past and present but also contains
business plans, forecasts, management policies andpolicies in place at the time of publication. The projections
are assumptions and decisions made based on
information available at that time of publication. These
plans, forecasts, and policies are subject to change as theresults of future business activities and circumstances
fluctuate. The reader should consider these factors upon
reviewing the information in this report.

002

Basic Information
Information
Basic

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Basic Information
Editorial Policy

About IHI (As of March 31, 2021)

Overall Business Framework (Fiscal year 2020 ended March 31, 2021)

Basic Information
Sustainability Management

Company NameIHI Corporation

Head Office

Toyosu IHI Building, 1-1, Toyosu 3-chome, Koto-ku, Tokyo 1358710, Japan

President

Hiroshi Ide, President and Chief Executive Officer

Year of Establishment

December 5, 1853

Capital107.1 billion yen

IHI Group Material Issues
Sustainability Management

Aero Engine,Space &
DefenseBusiness

Other

1%

22%

29%

Resources,
Energy &Environment
Business

Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships

Revenue (Consolidated)

1,112.9 billion JPY (Fiscal year 2020 ended March 31, 2021)

Employees (Non-consolidated)

7,796

Employees (Consolidated)

29,149Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management

Works

6

Branches in Japan

8

Overseas Representative Offices

14Group Companies

151 Consolidated Subsidiaries
Affiliated Companies in Japan
63 (46 subsidiaries and 17 associated companies)
Affiliated Companies Overseas
143 (121 subsidiaries and 22 associated companies)

Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

web

Business

web

Global Expansion

Industrial
34%
Systems &General-Purpose
Machinery Business

14%

SocialInfrastructure &Offshore Facility
Business

Main Businesses• Resources, Energy & Environment Business
Power systems (power systems plants for land use andpower systems for ships), carbon solutions (boilers,
storage facilities, chemical plants and pharmaceuticalplants), nuclear power (components for nuclear power
plants)• Social Infrastructure & Offshore Facility Business
Bridges/watergates, transport systems, shield systems,
concrete construction materials and urban development(real estate sales and rental)• Industrial Systems & General-Purpose Machinery
Business
Vehicular turbochargers, parking systems, rotatingmachineries (compressors, separating systems andturbochargers for ships), thermal and surface treatment,
transport machineries, logistics/industrial systems(logistics systems and industrial machineries)• Aero Engine, Space & Defense Business
Aero engines, rocket systems/space utilization systems,
defense systems003

Basic Information
Information
Basic

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Basic Information

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management

Medium-term Management Plan
The IHI Group launched the “Group Management Policy 2019” in April 2019 as our"Medium-term Management Plan". We further built on this policy by establishing "Project
Change" in November 2020 as a new initiative which secures a three-year period from2020 to 2022 to prepare and implement business reforms adapting to the ever-changing
business climate. "Project Change" retains the basic concept of “Group Management

Policy 2019” to actualize a long-term approach.
"Project Change" aims to create growth businesses to return to growth trajectory, alongwith contributing in resolving social issues by strengthening earnings foundations andexpanding life cycle businesses.

Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Overview of "Group Management Policy 2019"

Corporate Management
Corporate GovernanceTackle social and customer issues with customers and create
new value

Overview of "Project Change"● Positioning

ComplianceContribute to social
sustainability

Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management

Enhance corporate
value

Risk Management

Transform

Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Sustainable growth

Relentlessly explore newComplete business
opportunities for
portfolio optimization,businesses tobecoming enterprise withresolve social issues
multiple core businesses

Retain basic concept●"Project Change" emphases: Management which embraces ESG values
Enhance customer value

Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)"Project Change""Group Management
2020 to 2022
Policy 2019"
COVID-19
Reform businesses in response2019 to 2021
to operating climate changes

Next medium-term
management plan
2023 to 2025

Reform businesses to tackle social and customer issues

Return to growth trajectory●Further strengthen earnings
foundations●Expand life cycle businesses

Three initiatives
Accelerate aftermarket businessdevelopment with customers fromlife cycle perspectives

Strengthen businessfoundations
Build a robust
operational structure

Create a lean and flexible operational
structure

Accelerate internal
preparations for the future

Transform our business model tocreate new values

Cultivate human resources as drivers for change
Safety and quality

Risk management

Overcome operating
environment changes todrive value creation●Reallocate personnel●Pursue diversity and inclusion●Adopt new work practices

Financial strategies●Strengthen cash flow generation●Allocate funds optimally●Build solid financial position

Create growth businesses which address social issues

Materialize fulfilling lifestyles

Air transportation systems
Safe, comfortable, economical, andeco-friendly

Carbon solutions

Maintenance and disasterprevention and mitigation

Materialize carbon-free, circular
economies and comfortable and secure
decentralized communities

Develop robust, economically andeco-friendly social infrastructure

Become carbon-freePrevent and mitigate disasters

004

Basic Information
Information
Basic

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Basic Information

Editorial Policy

Basic Code of Conduct for the IHI Group

Basic Information

The IHI Group recognizes living up to stakeholder expectations and earning their trust is vital to drive the sustainable growth of both customers and society.
The Basic Code of Conduct for the IHI Group defines the practices necessary to embody this belief.

Sustainability Management
IHI Group Material Issues

Basic Code of Conduct for the IHI Group

Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

We at the IHI Group are committed to implementing whatis necessary to meet the expectations and gain the trustof not only our customers, business partners, shareholders
and colleagues, but also the local and international
communities, while maintaining an awareness of global
issues. By doing so, we aim to enhance our existential
value as we move forward into the future and realize ourGroup's management philosophies of “Contribute to thedevelopment 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.

Respecting 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, Society, and theEnvironment

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 toraise 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 same time
we strive to establish fair and mutually-productive
relationships with our customers and business partners.

Responsibilities toward 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 canwork 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 unique toeach 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,
we take care so as not harm that which also will be needed by
future generations and strive to protect, and reduce theburdens on, the global environment, not only in the course of
our provision of products and services but also in all otheraspects of our business activities.

Roles and Responsibilities of Senior Management

Roles of Senior Management❶ Senior Management recognizes that their role is to ensure
the realization of this Code of Conduct and takes theinitiative to demonstrate leadership in order to put the
purposes of this Code 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 theproblem, discover its cause, and prevent the recurrence ofsimilar violations. They also will promptly disclose accurate
information to society, clarify the responsibilities and scope of
the authority of the persons involved, and impartially takedisciplinary action even upon themselves.

IHI Group Code of Action
In order to comply with this Code of Conduct, we establish“IHI Group Code of Action” as the code prescribing how
directors, officers and employees of the IHI Group shouldmake decision and take action in their daily work.
P.28

IHI Group Code of Action

005

Basic Information
Information
Basic

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

Basic Information

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Third-party Evaluation
S&P/JPX Carbon Efficient Index

Health & Productivity Companies 2021 (White 500)

The IHI Group has been selected as a member of the
S&P/JPX Carbon Efficient Index, as we provided ample
environmental information disclosure and carbon
efficiency (carbon emissions per unit of revenue)
standards which met their constituent selection andweighting process.

The Ministry of Economy, Trade and Industry and the
Nippon Kenko Kaigi (Japan Health Council) launched the“White 500 Program” to recognize excellence in employee
health management from a corporate management
standpoint. The White 500 Program recognized eleven IHI
Group companies as Health & Productivity Companies in
2021: IHI Corporation, IHI Scube, IHI Plant Services
Corporation, IHI Power Systems, IHI Jet Service, NICO
Precision, IHI Infrastructure Systems, IHI Aerospace, IHI
Finance Support, Chiba Warehouse, and Takashima Giken.

Corporate Management
Corporate Governance

CDP

Compliance

CDP (formerly the "Carbon Disclosure Project") is a non-profit
charity established by responsible investors worldwide. The
CDP sends an annual questionnaire to companies and local
governments and releases the results to encourage further
action regarding climate change. The IHI Group responds tothis questionnaire on an annual basis. In fiscal 2020, wewere evaluated as Management Level score of B-.

Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management

Kurumin Certification

Diversity and Inclusion

The Minister of Health, Labour and Welfare recognized
the IHI Corporation as a company that supports childraising and granted us the Kurumin certification.

Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Eruboshi Certification
The Minister of Health, Labour and Welfare certified the
IHI Corporation as an “Eruboshi (2nd level)” Company
for excellence in efforts to promote the participation andadvancement of women in the workplace.

Resilience Certification

DISCLOSURE INSIGHT ACTION

The IHI Group renewed the Resilience Certificationacquired in 2016 with the aim of improving its business
continuity as a company that supports social infrastructure.
Resilience Certification is a certification system of the
Association for Resilience Japan based on the guidelines
for the certification of organizations contributing tonational resilience. This certification certifies business
operators who endorse ideas of strengthening national
resilience published by the Cabinet Secretariat's National
Resilience Promotion Office and who proactively work toensure their company's business continuity.
PRIDE Index Gold Award 2020
work with Pride (wwP) awarded the IHI Corporation the
PRIDE Index 2020 Gold Award, which is its highest honor,
for the second consecutive year since 2019. wwP is a
private organization in Japan which advocates andsupports the establishment of LGBT diversity
management practices. The goal of the PRIDE Index is tosupport and build working environments friendly to LGBTand other gender minorities. This index evaluates company
initiatives via categories for the code of conduct, genderminority communities, enlightenment programs, personnel
policies and programs, social contributions and public
relation practices. wwP recognized the IHI Corporation for
the third consecutive year, praising our human resource
policies for LGBT, launch of a “consultation desk” forthose needing help, expansion of ally programs, andtraining conducted to promote greater understanding
regarding gender minorities.

ReduceEnvironmental Impact

Performance
Objectives

006

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Editorial Policy
Basic Information
Sustainability Management
Group Material
IHI Group
MaterialIssues
IssuesSustainability Management
Sustainability
Management
Sustainable Development
Goals(SDGs)
Initiatives
Sustainable
Development
Goals(SDGs)
Initiatives
Innovation Management
Innovation
Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Sustainability Management

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

IHI Group Material Issues

008

Sustainability Management

010

Sustainable Development Goals (SDGs) Initiatives 013
Innovation Management

014

007

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

IHI Group Material Issues
Editorial Policy

Approach

Basic Information

Identifying Material Issues

Sustainability Management

In “Project Change”, the IHI Group strives to create “economies in which nature and technology are in harmony” in the near future. By setting this goal, the social issues we need toaddress along with the values we aim to provide have been clarified. Our material issues have been re-identified and revised according to each of its significance in social issues of“Project Change”: Becoming carbon-free, disaster prevention and mitigation, and fulfilling lifestyles.
Thus far, our material issues have been categorized as those "founded upon business operations” and those “pursued through business operations”; however, both categories have beenmutualized as material issues which shape what the IHI Group envisions to achieve.

IHI GroupGroupMaterial
MaterialIssues
Issues▶IHI
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

P.4

Corporate Management
Corporate Governance

Identification Process of Material Issues
Material Issues Before Revision

Compliance
Risk Management
Information Security

E

S

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)

Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Customer relationshipmanagement• Supply chain management• Corporate citizenship• Diversity and inclusion• Labor practice• Human rights
Corporate governanceCompliance• Information security• Timely and proper disclosure• Risk management•

Labor Practice (Occupational Health and Safety)•

G

Revisions in the Identification Process(Considering Environmental Changes Internally and Externally)

Stable supply of energy andresources• Building and maintaining social
infrastructure
Business • Developing a mobility society
activities • Strengthening and sophisticationof “Monozukuri” (manufacturing
and engineering)• Utilization of aerospace• Securing safe and stable living•

Material Issues After Revision

Step 1

Step 2

Step 3Extract social issues:

Confirm theconformity ofsocial issues:

Identify material
issues:Social issues, recognized worldwide, areextracted by utilizing
the following・Sustainability data
Public guidelines (GRI
Standards, etc.)
・SDGs
・ESG rating standards(FTSE, MSCI, and
DJSI)・Society 5.0(Japanese Business
Federation, “Keidanren”)

Each social issue extracted in Step 1 are verified
of its conformity to internal corporate policies
and and/or other uniquecompany traits such as
the following・”Group Management
Policy 2019”, “Project
Change”・Internal policies
including Basic Codeof Conduct for the IHI
Group
・Information regarding
IHI Group’s risks

Climate change
Circular economy• Environmental protection
•

E

•

•

Human Rights

Supply Chain Management

Climate change
Circular economy• Environmental protection•

Materialize an Affluent Society

Customer Relationships

Medium-term Management Plan•

Human rights
Customer relationships• Diversity and inclusion• Occupational health and safety• Supply chain management• Corporate citizenship• Work-style and operational
process reforms••

S

Considering Step 1 andStep 2, a tot al of 16
material issues havebeen identified.

Corporate governanceCompliance• Risk management• Information security• Timely and proper disclosure• Innovation management
•
•

G

008

Basic Information

IHI Group Material Issues

Editorial Policy
Basic Information
Sustainability Management
IHI GroupGroupMaterial
MaterialIssues
Issues▶IHI
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships• Material Issues to Achieve Our Ideal FormThe IHI Group categorizes its material issues into
environmental, social and governance issues and reports
on various efforts related to each via the IHI Sustainability
Data Book 2021.
Environment – Reduce Environmental Impact –

P.70

Climate change ��������������������������������������������������������P.77
Circular economy �����������������������������������������������������P.82
Environmental protection�����������������������������������������P.85
Social – Materialize an Affluent Society –

P.41

Human rights �����������������������������������������������������������P.42
Customer relationships ��������������������������������������������P.45
Diversity and inclusion ���������������������������������������������P.50
Occupational health and safety �������������������������������P.59
Supply chain management ��������������������������������������P.65
Corporate citizenship �����������������������������������������������P.67
Work-style and operational process reforms

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Governance – Corporate Management –

P.19

Corporate governance ���������������������������������������������P.20
Compliance ��������������������������������������������������������������P.28
Risk management ����������������������������������������������������P.35
Information security �������������������������������������������������P.38
Timely and proper disclosure ���������������������������P.12, P.45
Innovation management ������������������������������������������ P.14

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

009

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Sustainability Management
Editorial Policy

Approach

Structure

Basic Information

In “Group Management Policy 2019”, the IHI Groupdefined our approach as one which adapts to changes inthe social environment from long-term perspectives.
“Project Change” incorporates the basic concept of theGroup Management Policy to tackle social issues andissues of our customers directly, ultimately realizing ourgoal.

Sustainability Promotion System

Sustainability Management
IHI Group Material Issues
Sustainability Management
Management▶Sustainability
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

• ESG Management Promotion Committee
In fiscal 2021, the IHI Group began considering basic ESG
management policies and measures, consequently
establishing the ESG Management Promotion Committee
for the purpose of evaluating and improving the progressof the policy and measures implemented. The ESG
Management Promotion Committee replaces our CSR
committee as a member body that discuss basic
sustainability policies and measures.
We are further building onto our sustainability promotion
system which originate from the ESG Management
Promotion Committee.

FY2021 Sustainability Promotion System
Board of Directors[Chairperson]
Chairman of the Board
ReportInstructManagement Committee[Chairperson]
Chief Executive Ofﬁcer (CEO)ReportInstruct

ESG Management Promotion Committee[Chairperson]
President
Instruct

ReportSubcommittee

Environment Committee[Chairperson]
Ofﬁcer in charge of
Administration Division
Human Rights Committee[Chairperson]
Ofﬁcer in charge of
Human Resources Division010

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Sustainability Management

Editorial Policy

Initiatives

Basic Information

Dialogue with Stakeholders

Sustainability Management

The IHI Group deems our primary stakeholders with asignificant influence over ongoing corporate activities ascustomers, business partners, shareholders, investors,
government agencies, local communities and employees.
As such, we value and engage in a broad dialogue withthese stakeholders. The Integrated Report andSustainability Data Book are published as tools for this
dialogue.
Topics with stakeholders which are considered particularly
vital are reported to the Management Committee and
Board of Directors, thus reflected in our corporate
strategy.

IHI Group Material Issues
Sustainability Management
Management▶Sustainability
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society

Results of Dialogue with Stakeholders
Stakeholders Main Purpose of Dialogue

Customers

Business
partners

Shareholders& investors

Human Rights

Example of 2020 Engagement

Frequency•

Conduct customer satisfaction
surveys

As necessary•

Television commercials, newspaper
advertisements, and IHI websites

As necessary•

Provide product safety information

As necessary• Engage in fair and impartial
business dealings• Cultivate mutually beneficial
partnerships with ourbusiness partners•

Make requests of business partners
based on the IHI Group
Regularly
Procurement Policy•

Commend outstanding suppliers

Annually• Disclose accurate
information in a timely
manner• Strengthen relationships
based on trust• Enhance corporate value•

Convene the General Meeting of
Shareholders

Annually•

Hold financial results briefings andtelephone conferences

Four times
per year•

Attend one-on-one meetings

As necessary•

Participate in policy boards

As necessary•

Participate in joint development andprojects with government
As necessaryorganizations• Contribute to solving social
issues and customer
challenges• Ensure product safety

Customer Relationships
Human Resource Management
Diversity and Inclusion

Governmentorganizations• Form partnerships withgovernment organizations

Local
communities• Recognize ourselves as amember of society• Contribute to solving social
issuesDiversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Employees• Recruit and develop humanresources as the most vitalmanagement asset

P.45

•

Hold community events
Hold school visits

As necessary•

Conduct employee training

As necessary•

Conduct employee-awarenesssurveysAnnually•

Operate a compliance hotline

Regularly•

Reference

Customer Relationships

P.65
Supply Chain
Management

web

IR

P.14

Innovation Management

P.67

Corporate Citizenship
P.47
Human
Resource Management
P.55
Diversity andInclusion (Human
Resource Development)
P.28

Compliance011

Sustainability
Sustainability
Management
Management

Basic Information

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Sustainability Management

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Management▶Sustainability
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Approach to Communications with
Shareholders and Investors
The IHI Group builds stronger relationships based on trustwith all shareholders and other investors by recognizing
accurate, timely disclosure of corporate information as acore principle of a sound financial instruments market,
which is why we actively engage in communication
efforts.
Our basic policy is to promote a highly transparent
management throughout the entire Group. We always
disclose accurate and fair information on vitalmanagement and business matters in a timely mannerfrom the perspective of investors in capital markets. The
IHI Group also sees honest Group accountability as abasic policy to define its management direction and main
businesses.

Timely and Proper Disclosure
The IHI Group enhances the scope of various materials
disclosed both online and offline for active and fair
informational disclosure.
We are deeply involved in active communication efforts
with our domestic and overseas investors to gain greater
understanding about IHI Group business activities.
In fiscal 2020, as in-person meetings (hosted annuallyworldwide) could not be held due to the COVID-19
pandemic, we created opportunities for dialogue throughphone and video conferences with our management
team and all investors in North America, Europe and Asia.

Results of Shareholder and Investor Engagement in FY2020
Targets

Main Topics

Summary

Analysts and domestic
institutional investors

Nearly 100 people attended each of our briefings
Held financial results briefings throughand telephone conferences this year. We provided
telephone conferences and live streaming a financial results breakdown for the term and an
overview of “Project Change”.

Overseas institutional
investors

Held one-on-one online meetings

These provided us with opportunities to discuss
directly with a total of 100 overseas institutional
investors.

Individual shareholders

Distributed the IHI Integrated Report2020 to shareholders who joined our
information distribution service.

The “IHI Integrated Report 2020” has been sent
to members who applied for this service.

Support of International Initiatives• Task Force on Climate-related Financial Disclosures (TCFD)
P.77

Climate Change

012

Basic Information

Sustainability
Sustainability
Management
Management

Sustainable Development Goals (SDGs) Initiatives
Editorial Policy

Approach

Basic Information

The United Nations adopted the Sustainable
Development Goals (SDGs) in 2015. The IHI Group
perceives contributing to the success of the SDGs as an
expectation of society, thus we identify and incorporateeach target of the SDGs in Group management asmaterial issues.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development
Goals(SDGs)
Initiatives
Development
Goals(SDGs)
Initiatives▶Sustainable

P.4

Innovation Management

Corporate Management
Corporate Governance

Retaining the basic concept of the “Group Management
Policy 2019”, “Project Change” aligns the direction of eachbusiness area with SDGs targets to contribute to thesuccess of the SDGs through our businesses, in order toultimately realize a sustainable society.
Medium-term Management Plan

IHI Group Business Area Direction

Create new values needed for social sustainability

Compliance
Risk Management

Resources, Energy &Environment

Social Infrastructure &Offshore Facilities

Information Security

Provide the best integrated solutions foreach region and customer to contribute toa carbon-free, recycle-oriented society

Contribute globally and across life cycles
to provide safe and secure bridges,
tunnels and other social infrastructures

Materialize an Affluent Society
Human Rights
Customer Relationships

Shared business goals

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change

Fully optimize operational life cycles together
with our customers to contribute to theadvancement of industrial infrastructure

Leverage advanced technology to open newvistas for air transportation, defense
systems, and space utilization, and help
bring about a safe, affluent society

Industrial Systems &General-Purpose Machinery

Aero Engine, Space &DefenseCircular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

web

Contributing to Solving Social Issues

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

013

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Innovation Management
Editorial Policy

Technology & Intelligence Integration

Basic Information

Approach

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management
Management▶Innovation

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

The IHI Group fully leverages its strengths in a wide
range of fundamental technologies to drive innovation.
This approach not only helps us directly take on the SDGs
challenges but also helps achieve a comfortable futuresociety. We aim to quickly commercialize technologies
which can become new growth businesses. To achieve
this aim, we incorporate open innovation and design
thinking as well as accelerate technology development toadapt to an ever-changing society.

Priorities in Technology Development
In addition to expanding conventional life cycle businessefforts, the IHI Group prioritizes technology developmentin the three growth businesses emphasized in Project
Change: air transportation systems, carbon solutions, andmaintenance, disaster prevention and disaster mitigation.
Every one of these initiatives is expected to addresssocial issues caused by climate change.
We are furthering development relating to airtransportation systems to realize lighter, more efficientengines as well as pioneering electrification technologies
including engine embedded electric machines and aircooling systems.
As for carbon solutions, we strive to develop andimplement leading edge technologies which allow carbon
to be recycled, enable the use of hydrogen, ammonia,
and renewable energy sources, and offer energy
management for decentralized local production for local
consumption.
We are also advancing the technology development for
optimization of power plant operation by remotemonitoring with ICT, for maintenance of bridges,
watergates and other vital social infrastructure, and fordisaster prevention and mitigation technologies against
ever increasing natural disasters due to climate change.
P.8

Identifying Material Issues

Achieving a Carbon-neutral World
Further acceleration in technology development matchingneeds such as decarbonization targeting CO2 as the mostprevalent greenhouse gas and decentralization (compact
decarbonized power supply and hydrogen-based
distributed energy system) and commercialization ofthese technologies are among some of the challenges
we face. At the same time, enhancing the efficiency of
existing power plants and reducing CO2 emissions fromthem are also required to maintain stable energy supply.
• Renewable Energy
The IHI Group develops a wide range of technologies for
power generation systems utilizing natural energy frombiomass to solar, offshore wind, and ocean currents. Our
biomass power generation business has received contracts
to refurbish many thermal power plants into plants
dedicated to biomass power generation. We are involvedin every aspect of the biomass power generation fromconstruction to operation to maintenance in order to support
operations optimal for providing carbon-neutral power.
We have developed bio-jet fuel produced from microalgae
to help reduce CO2 emissions from aircraft engines. The
bio-jet fuel received an international standard certification
and was supplied to regular commercial flights in Japan.
These results are important steps toward practical use.

• Ammonia as Carbon-neutral Fuel
The IHI Group has been developing ammonia combustion
technologies, not only as a low-cost, safe hydrogen
carrier, but also as a carbon-neutral fuel with no CO2emissions during combustion. Although stable ammonia
combustion had been considered difficult, we
successfully demonstrated ammonia co-firing with coal at
a commercial level and ammonia co-firing technology on
gas turbines for the first time in the world.
• Carbon Recycling
The IHI Group is also promoting development for
pioneering CCU (Carbon Capture and Utilization)technologies which include the capture of CO2 with thechemical absorption technique or DAC (Direct Air Capture)and the conversion of CO2 into valuable products, such as
methane used as fuel and lower olefin used as a raw
material for resin. These technologies offer promisingprospects for practical use of not only carbon-neutral
products but also carbon-negative products through their
combined application with renewable energy.
• Energy Management Systems
The IHI Group is advancing the development of numericalmodels and algorithms to optimize the configuration andoperation of energy systems.

Estimated Change in Proportion of Energy Resources by 2050

Gas

Coal

RenewableenergyShift from building new coal plants torefurbishing existing ones for fuel conversion

HydrogenAmmonia
Biomass

Restart and construction of
reprocessing plants

Utilization not only as anenergy source but also as
a resource in various fields

Used as an adjustment power source to supplement instabilityof prevalent renewable energy

Nuclear Power
2020

Spread of renewable energy and growing
demand for battery and energy
management

2022

2030

2040

2050

014

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Innovation Management

Editorial Policy

Structure

Education/Awareness Building

Main Commendations

Basic Information

The IHI Group drives open innovation at the IHI Tsunagu
Lab and i-Base (Ignition Base) in Japan as well as the IHI
Launch Pad in Silicon Valley and other overseas sites in
Singapore and the rest of the world. With the active useof these innovation hubs, we are working to accelerate
development of cutting-edge technology aiming at theinnovative creation.
The IHI Tsunagu Lab and the i-Base are the hubs for open
innovation where we put design thinking into practice
toward rapid commercialization. The IHI Launch Pad strives
to cultivate new business opportunities for the IHI Groupin collaboration with the ecosystem in North America
including investors, startup companies. In Singapore, weare promoting pioneering technology development jointlywith the Agency for Science, Technology and Research(A*STAR).
Overcoming the social challenges faced in the growthbusinesses advocated in Project Change would be
difficult for the IHI Group to do alone. We are working on
the creation of innovation through further extensive
collaboration with customers and partners from the very
first planning stage with full use of the above-mentioned
innovation hubs around the world.

Projects at i-Base

Recognition for Technology DevelopmentSustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management
Management▶Innovation

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

The IHI Group utilized the i-Base, opened in 2019, aiming
at early commercialization of new ideas. Project teams,
whose members are assigned from various divisions
including sales, design, and development, concentrate on
projects there. We also pursue collaborative development
projects with customers. One example of the projects isa quality inspection apparatus to replicate veteran skills ofmaster artisans.
In fiscal 2020, we were working on development of
products useful in taking measures against COVID-19.
Intensive development at i-Base helped us create various
new ideas, such as an ozone disinfection storage box.

Proof of Concept (PoC)
The IHI Group concentrates on early commercialization ofideas with the high potential for success through shortterm PoC.

Design Thinking and Human Resource
Development
The IHI Group incorporates design thinking into its
business development with the aim of recognizing
problems from a user perspective and inspiring
innovation. We have constructed our new style ofdevelopment by integrating design thinking into ourbusiness model. With this style, we are promoting
speedy creation of new businesses.
We provide training programs on design thinking
throughout the IHI Group. Human resource development
will help us create new value to meet the needs of ourcustomers and society. This is how we advance theestablishment of a system allowing us to continuallycreate innovative ideas.

Commendation

Details

JSME Young Engineers
Award (The Japan Societyof Mechanical Engineers)

Commendation for success at awide range of stages from basic
research to power generation
demonstration testing for theverification of combustion
concepts related to ammonia/
natural gas co-fired turbines.

Journal Paper Award(Combustion Society ofJapan)

Winning paper: A Study of Low
NOx Combustion Method forAmmonia/Natural Gas Co-fired
Gas Turbine Using Detailed
Chemistry

Technology Award (Japan
Light Metal Welding
Association)

Winning paper: Reduction of
Welding Deformation for Fillet
Welding of Aluminum Plate

Recognition for Business
Commendation

Details

Minister of Economy,
Trade and Industry Prizeat the New EnergyAwards 2020 sponsoredby the New Energy
Foundation

Smart community project inSoma City aiming to maximize
use of local renewable energy

ASTM international“Award of Appreciation”

Activities to standardize the
manufacture of fuel developed
using hydrocarbon derived frommicroalgae as an international
standard for alternative jet fuelfor aviation

Multiple categories ofInternational Awards
from the Japan Societyof Civil Engineers

Significant contributions to thedevelopment of civil engineeringor social capital in theinternational community

015

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Innovation Management

Editorial Policy

Initiatives

Basic Information

Technology Development related to Project
ChangeSustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management
Management▶Innovation

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

• Air Transportation Systems
The IHI Group developed the world’s first engine
embedded electric machines which can be mounted in
the aircraft jet engine rear-end to compensate insufficient
power associated with the electrification of aircraft andengine systems as a result of More Electric Architecture
for Aircraft and Propulsion project. We also successfully
achieved the world’s first air-cooling system for theaircraft onboard 100kW-class high power electronics,
advancing the cooling technologies necessary to expand
applications in the power electronics field.
• Carbon Solutions
The IHI Group successfully demonstrated the world’s first
70% liquid ammonia co-firing on a 2 MW-class gas
turbine leveraging its unique combustion technologies foraircraft engines. We have also launched joint research anddevelopment projects for practical application of theworld’s first ammonia-fueled tugboat to achieve zero
emissions from ships.
We participate in projects that aim to realize carbon
neutrality in order to practically apply our technologies tosociety. These projects include a demonstration of supply
network for blue ammonia* undertaken with the Saudi
Arabian Oil Company and other partners, a feasibility
study for the production of hydrogen from solar power
generation driven forward jointly with CS Energy inAustralia, and a demonstration of the Japan’s first waterelectrolysis energy management system capable ofsimultaneously managing multiple renewable energy
sources, such as solar, wind and waste (biomass) power
generation, in Kitakyushu City, Fukuoka Prefecture withthe goal of locally producing and supplying nextgeneration CO2-free hydrogen.
* Blue ammonia is a carbon-neutral fuel because CO2 emitted
during its production is captured and used for the other processes.

• Maintenance, Disaster Prevention, and Disaster
Mitigation
The IHI Group launched an inspection service for power
plants using miniature drones in order to detect any area
requiring repairs early and shorten the repair period.
Improvement in stability and efficiency of operation at
power plants contributes to realization of carbon neutrality.
Yamba Dam, which we constructed jointly with othercompanies, started operations in April 2020 as vital
infrastructure for readiness against floods caused bytorrential rains and for water utilization. The IHI Group has
made video contents available on YouTube that include ourlong history in construction of flood control facilities andour mission as watergate engineers to prevent damage
caused by ever-increasing torrential rains. We have also
launched services as expansion of our high-density
weather observation and information delivery system toprovide detailed information for disaster prevention. One
is a one-stop weather information site to improve userfriendliness by integrating data originally measured by our
products and data from several governmental weather
and disaster prevention information. The other is a rivermonitoring service which varies imaging intervals
automatically according to weather changes.

Main Public-Private Sector Initiatives• Material Technologies
As a member of the Innovative Structural Materials
Association (ISMA), the IHI Group is advancing thedevelopment of technology for joining steel sheet and
CFRP (Carbon Fiber Reinforced Plastics) through theparticipation in project commissioned by the New Energy
and Industrial Technology Development Organization(NEDO). These efforts contribute to the weight reductionof air transportation systems and the technologicaldevelopment of electric systems.
• Utilization of Hydrogen
The IHI Group participated in Advancement of Hydrogen

Technologies and Utilization Project in fiscal 2019, which
has led to successful laboratory testing of technology to
produce hydrogen from captured CO2 without any CO2emissions in fiscal 2020. In the future, we aim to lower
the price per unit to produce hydrogen by optimizing thissystem and commercialize this technology.

Initiatives with Startup Companies• North America
IHI Corporation and IHI Logistics & Machinery Corporation
partnered with Boston-based startup Neurala, Inc. todevelop the world’s first system to autonomously scan
the best-by date on cardboard crates of food delivered toand from distribution warehouses while traveling onconveyor belts. Built-in deep-learning AI character
recognition technology not only saves labor but also helps
ensure food safety and reduce food loss.
We are also exploring North American startups whichhave promising decarbonization technologies andconsidering partnerships with them.
• AsiaThe IHI Group promotes research activities of startups inSoutheast Asia while participating in the Startup
Challenge organized by the Advanced Remanufacturing
and Technology Centre (ARTC), a subordinate organizationof A*STAR, with which we collaborate on leading-edge
manufacturing technologies as previously mentioned.
• Europe
The IHI Group launched a base to promote open
innovation at its group companies in Europe with the goalof cultivating new businesses. The establishment of thebase accelerates our research into European startups
primarily in the fields of AI and IoT.

016

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Innovation Management

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management
Management▶Innovation

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion

Industry-University Initiatives• JapanThe IHI Group conducted five leading-edge joint research
projects at the Research Center for Artificial Intelligence,
Yokohama National University, which was established toaccelerate the development of AI technologies including
deep learning and optimization. The subjects of the
projects include appearance inspections of manufactured
components and skill classifications for welding work. As
a part of comprehensive partnership with the university,
we are advancing the development of products utilizing
AI technologies as well as more sophisticatedmanufacturing. To promote ever-evolving development,
we are also expanding the collaboration to foster
specialists in AI technologies throughout the IHI Group.
• North America
The IHI Group investigates new technologies for carbon
solutions in addition to joint research subjects and quickly
gathers diverse information on energy and environmental
policy trends in North America by capitalizing on its
relationships with the MIT Energy Initiative and MIT
CEEPR as well as its network of venture capitalists andstartup companies.

Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

• AsiaThe IHI Group has cultivated numerous partnerships with
universities in China, including Tsinghua University. The
research center we jointly opened in Tsinghua University
has been the symbol of our close alliance lasting over 20
years. The center has commercialized some projects in
the Chinese market. In Singapore, we conduct joint
development with A*STAR across a wide range of fields,
including our unique catalyst technology to produce
valuable products such as methane and olefin from CO2,
next generation transportation and advanced
manufacturing technologies.

• United Kingdom
The IHI Group established the IHI Additive Manufacturing
Lab in the United Kingdom as a site to advance thedevelopment of additive manufacturing technology. We
have joined the IfM Engage’s Strategic Technology andInnovation Management Consortium (STIM) promoting
the use of road mapping to design technology andbusiness strategies.

Technology Development Related to COVID-19
The IHI Group has increased the production of ozonegenerating air purifiers and other products to prevent the
spread of COVID-19 while developing and selling a lownoise, large capacity model. We also developed andbegan sales of anti-bacterial spray by taking advantage ofozone generation technology with a long-proven trackrecord of delivering hygiene control devices to medical
institutions and our unique fine bubble technology(generation of nano-sized bubbles).
The IHI Group is promoting the development oftechnologies for infection control from the following threeperspectives with the use of our unique technologies
cultivated thus far and the open innovation.
• Disinfection of Everyday Items Around Us
The IHI Group developed an ozone disinfection storagebox to reduce the tediousness of disinfection for everyday
items and shared items around us. This innovative storage
helps control the spread of the virus at nursery schools,
kindergartens, and many other public facilities because
users can easily disinfect items even with complex
shapes by simply putting them into the storage.
• Prevention of Droplet Spread
The IHI Group is currently developing an aerosol collector
to capture aerosol droplets spread from coughing or
speaking. The development of this collector takes
advantage of open innovation with overseas universities.
Compared to standard air purifiers, this collector is lessnoisy and more customizable in design. These advantages
allow it to be used in various places and occasions
including conference rooms and event halls with the aimof prevention of droplet spread.
• Hygiene Control Through Ventilation
There is a growing demand for simple negative-pressuretents capable of easily setting up isolated environments
indoors. The IHI Group developed a simple negativepressure isolation tent that is easy to be assembled
because of its lightness in weight and to be used in
combination with an air purifier. This product received the
Monozukuri Prize at the 2020 Nikkan Kogyo Best 10 New
Products Awards. This product satisfies a part of theUnited States CDC guidelines for negative-pressure
isolation tents. This tent is expected to play a major rolewith struggling medical care facilities without or lacking
negative-pressure quarantine rooms.
We have also developed simulation technologies toquickly visualize the ventilation conditions of facilities
planning to introduce air purifiers and other ventilationequipment. To solve the problems demonstrated throughthe visualization, we offer our products for infection
control including Ozone Air Clear. By expanding our
product lineup for preventing a hospital infection and for
improving public health, we will further contribute to asociety.

017

Basic Information

Sustainability
Sustainability
Management
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Innovation Management

Editorial Policy

Intellectual Property

Education/Awareness Building

Results

Basic Information

Policies

Intellectual Property Education

Regional comparison in number of our patents
(Unit: Patents; Scope: IHI)

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management
Management▶Innovation

Corporate Management

Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Intellectual Property e-Learning participants(Unit: People; Scope: IHI)
Item

2017

2018

2019

2020

STEP 1(First-year employees)

290

168

167

187

STEP 2(Second-year
employees)

351

STEP 3(Third-year employees)

291

STEP 4(Fourth-year employees)

284

270

281

235

STEP 5(Fifth-year employees)

217

269

249

271

271

154

Item

2017

2018

2019

2020

Domestic
patents

3,915

4,120

4,150

3,868

Total

2,598

3,047

3,502

3,808

UnitedStates

539

591

724

747

Europe

792

1,037

1,240

1,750

China

437

499

561

582

Korea

174

193

199

120

BRICs
(Excluding
China)

116

137

142

125

Others

540

590

636

484

Overseas patents

Corporate Governance

The IHI Group promotes intellectual property activities asboth management policy and technological strategy.
Business environment surrounding us differs fromdivision to division and from company to company.
Consequently, there are individual needs for intellectual
property activities. Intellectual Property Department of
IHI Corporation drafts a Basic Policy on IHI GroupIntellectual Property every year. Individual divisions andaffiliated companies refer to this policy when establishing
their own intellectual property policies tailored to theirunique business, technology and development
environment.
The Basic Policy on IHI Group Intellectual Property infiscal 2020 regarded the following as among the mostimportant measures: strengthening of our businessfoundations, construction of a solid operationalframework, acceleration of preparation for the future,
agile response to rapid changes in the businessenvironment and cultivation of human resources as
leaders of innovative changes.

The IHI Group uses e-Learning to provide first- to fifthyear employees with training on intellectual property. We
also have training programs on patent audits and rights
acquisition policies for engineers in each businessdivision and affiliated company and on copyright for all
employees.
In fiscal 2020, we also held a lecture on intellectual
property for the entire group by inviting guest speakers toshare their expertise, with the aim of improving ourunderstanding and awareness about intellectual property.

166

Initiatives
314

246

154

Protecting Intellectual Property
The IHI Group makes a strict distinction between rights
acquisition through patent filings and the confidentialityof knowledge through concealing when protecting
intellectual property. We file necessary patentapplications worldwide based on global businessexpansion. We carefully select countries to file patentapplications through the forecasts in business andtechnology development.
We also respect third-party intellectual property rights.
We research the patent filings of other companies as wellas patent acquisition trends to reduce any business risks.

018

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCorporate
GovernanceCompliance
Compliance
Risk Management
Risk
Management
Information
Security
Information Security

Corporate Management

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Corporate Governance 020

Compliance028
Risk Management

035

Information Security

038

019

Basic Information

Sustainability
Management

Corporate Governance
Editorial Policy

Corporate Governance

Basic Information

Approach

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance
Governance▶Corporate
Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

IHI defines corporate governance as a system thatassures sustainable growth and maximization of
corporate value by enhancing management efficiency sothat IHI can leverage its innate capabilities to the fullest
extent possible. To achieve this, IHI targets efficient andappropriate internal decision-making by clearly separating
management monitoring and supervisory functions fromfunctions related to their execution of duties.
Furthermore, by establishing the relevant internal rules
and building a system to administer them, IHI ensuresappropriate operations across the entire Group.
IHI promotes constant improvement of its corporate
governance, aiming to earn the trust and support of its
shareholders and other stakeholders over the long term.

IHI will work to enhance its corporate governance in linewith the following basic policies.
Basic Policy on Corporate Governance(1) Respect shareholders’ rights and ensure equal
treatment(2) Strive to cooperate appropriately withshareholders and other stakeholders(3) Fulfill our responsibility to be accountable tostakeholders and ensure transparency byappropriately and proactively disclosing
information relating to the Company(4) Clarify the roles and responsibilities of theBoard of Directors, the Audit & Supervisory
Board Members and the Audit & Supervisory
Board to enable them to adequately fulfill their
management monitoring and supervisory
functions(5) Conduct constructive dialogue withshareholders who have investment policies
according with the medium- to long-term
interests of shareholders

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

020

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Governance

IHI has an Audit & Supervisory Board, which comprises 5
Audit & Supervisory Board Members (3 from outside)
who audit the duties executed by directors.
The Board of Directors, which consists of 12 Directors (4from outside), makes decisions related to all importantmatters concerning the management of IHI and theGroup, in addition to supervising Directors in theirbusiness execution. The Outside Directors, who areelected from among individuals with extensive
experience and broad insight gained at the helms ofmanagement, or with a high degree of specialist
knowledge and diverse experience, participate in the
Board of Directors’ decision-making process, offer advice
and make recommendations independently of managers
who have been delegated the authority to handle day-today operations.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance
Governance▶Corporate
Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships

Management Monitoring/
Supervisory Functions

Delegation

Delegation

Delegation

Accounting
Auditors

Basic Information

Corporate Governance Management Structure

Audit & Supervisory Board(Audit & Supervisory
Board Members)

Structure

General Meeting of Shareholders

Editorial Policy

Board of Directors(Directors)
Audit

ReportDelegation of Authority

Chief Executive Officer
(CEO)
Audit

Remuneration
Advisory Committee
Nomination
Recommendation Advisory Committee

Consultation

Instruction

Executive Officers
Headquarters andOperations/Group Companies

Management Committee

Human Resource Management

Business Execution
Functions

ReportAudit

Internal Audit
Division

Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Executive Officer System

Remuneration Advisory Committee

Nomination Advisory Committee

IHI has an Executive Officer system to strengthen thedecision-making and supervisory functions of the Boardof Directors, as well as to improve the efficiency ofbusiness operations. 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 theirassigned duties. The CEO also appoints members to theManagement Committee to assist in decision-making andbusiness execution.

IHI established the Remuneration Advisory Committee
and the Nomination Advisory Committee as the optional
committees.
The Remuneration Advisory Committee determines thesuitability and objectivity of the remuneration brought upby the Board of Directors. This six-person committee ismade up of 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 acting aschairperson.
The Committee convened ten times with one absentee(once) in fiscal 2020.

The Nomination Advisory Committee ensures proper
implementation of officer appointments. This five-person
committee is made up of the President and four Outside
Directors with the President acting as chairperson.
The Committee convened three times with one absentee(once) in fiscal 2020.

021

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Governance

Editorial Policy

Appointment of Officers

Basic Information

Policies and Procedures

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance
Governance▶Corporate
Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

The Board of Directors has defined ideal officer attributes
for the Board of Directors. We have also draftedIndependence Criteria for Outside Officers in accordancewith the Tokyo Stock Exchange independent officer
requirements to ensure the independence of Outside
Directors and Auditors.
IHI’s Board of Directors sets the basic policy of appointing
the most appropriate Officers according to the ideal
attributes for Officers and the independence standards
for Outside Directors and Outside Audit & Supervisory
Board Members, with the aim of ensuring sustainablegrowth and increased corporate value for the IHI Groupover the medium to long term. IHI strengthens theindependence, objectivity, and accountability of the Boardof Directors through a process that goes beyond the legal
requirements for corporate Officer appointments.
We have established a Nomination Advisory Committee
as a voluntary advisory body comprised of the President
and all independent Outside Officers to make sure
Outside Directors actively oversee and advise on
appointment procedures.
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 Officer Attributes
IHI appoints Officers who are healthy in mind and bodyand 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 in accordancewith 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 a broad,global perspective and insight

Independence Standards for Outside Officers
In addition to the requirements for independent Directors/
Audit & Supervisory Board Members stipulated by the
Tokyo Stock Exchange, IHI uses the standards below todetermine independence.
1. Major shareholders
The Director should not be a major shareholder with
10% or more of the voting rights in IHI or serve as a
Director, Audit & Supervisory Board Member, Executive
Officer at a Company with committees, Executive
Officer or employee, of a corporation 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 IHI’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, of such majorclients, suppliers, etc. in the past.
• Major clients of the IHI Group (with transactions

valued at 2% or more of IHI’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 IHI (as listed in the business reportfor 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 or more of monetary consideration or otherproperty from IHI annually besides compensation as an
officer.
4. Accounting auditor
The Director should not be a representative partner orpartner of IHI’s accounting auditor.
5. Mutual exchange of Officers, etc. with IHI
The Director should not be assigned to a corporation
with which IHI has a relationship of mutually
exchanging Directors or Audit & Supervisory Board
Members.
6. Close relatives
The Director should not be the spouse or first- tosecond-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 spouse or
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 & Supervisory
Board Members, Executive Officers at Companies withcommittees, Executive Officers, or equivalent executive-level
employees of the corporation in question. In addition to theabove, IHI also considers age, concurrent positions, period in
office, and related matters when nominating candidates as
Outside Directors.

022

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Governance

Editorial Policy
Basic Information
Sustainability Management

Members of the Board of Directors (as of July 1, 2021)
Name
Position at theCompany

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives

TsugioMitsuoka
Chairman of the
Board

Innovation Management

Corporate Management
Corporate Governance
Governance▶Corporate
Compliance

Hiroshi Ide
President

Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships

Takeshi
YamadaExecutive Vice
President

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)

Tomoharu
Shikina

Supply Chain Management

Executive Vice
President

Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services

Kazuki Awai
Board Director

Climate Change
Circular Economy
Environmental Protection

Performance Objectives

TakeshiKawakami
Board Director

IHI Sustainability Data Book 2021

Reasons for nomination
Tsugio Mitsuoka has led the IHI Group’s management as the
President of the company since April 2016, by actively carryingout the selection and concentration of business operations
and the transformation of business model in response to thechanging business environment, as well as bolstering the risk
management and ensuring compliance. Since April 2020, he
has been working to strengthen corporate governance as
Chairman of the Board of the Company. In the belief that his
abundant experience and insight as corporate manager will be
indispensable in the management of the IHI Group, theCompany has appointed him as a Director.
Hiroshi Ide has accumulated a great deal of knowledge
mainly in the overseas marketing division for the energy
and plant businesses. After serving as Managing Director ofan overseas subsidiary, he has formulated businessstrategies with a long- term perspective as President of
Resources, Energy and Environment Business Area for thematerialization of a carbon-free recycling society. Since
becoming Chief Operating Officer in April 2020, andsubsequently President in June 2020, he has led the
management of the Group. In the belief that theseabundant business experience, accomplishments, andinsight will be indispensable in the management of the IHI
Group, the Company has appointed him as a Director.
Takeshi Yamada has accumulated a great deal of knowledge
mainly in the finance & accounting field and corporate planning
division, and since April 2017 as General Manager of the
Finance & Accounting Division, he has been deeply engaged
in the Group’s financial strategies. After being appointed
Executive Vice President in April 2019, he has been focusing
on strengthening communication with stakeholders while
promoting improvements in the Group’s financial structure. In
the belief that these abundant experience and high level of
insight into the Group’s overall business management will be
indispensable in the management of the IHI Group, theCompany has appointed him as a Director.

Attendanceat Board of
Directors
meetings in
2020

18 of 18
(100%)

13 of 13
(100%)

Term in
office7 year

1 year

Appointments toadvisory committees
Company
Remuneration Nomination
shareholding
Advisory
Advisory
Committee Committee

14,800shares2,500
shares––Name
Position at theCompany

Yasuhiro
Shigegaki
Board Director–

Chairperson

Hideo Morita
Board Director

KazuhikoIshimura

18 of 18
(100%)

4 year

2,500
sharesCommittee
Member–Outside Director

Yoshiyuki
Nakanishi

Tomoharu Shikina accumulated a great deal of knowledge in
the aero-engine technology development field andsubsequently, as President of the Aero-Engine Space &Defense Business Area, he led the business operated globallyand achieved its growth. In April 2020, he was appointed as
Executive Vice President and Senior Executive Officer, andworked on promotion of CSR procurement within the IHI
Group and security export control. Since April 2021, he has
been working on the appropriate placement of humanresources across the Group engaged while also fostering a
corporate culture that respects human rights. In the belief thatthese abundant experience, accomplishments, and insight will
be indispensable in the management of the IHI Group, theCompany has appointed him as a Director.

18 of 18
(100%)

Kazuki Awai has accumulated a great deal of knowledge,
mainly in personnel and labor relations, and in the corporate
planning division. Since July 2011, he has served as General
Manager of Administration Division, working on strengtheningof relationship with stakeholders and enhancement of theeffectiveness of governance. Since June 2017, he has also
been working on strengthening of the Group compliance. In
the belief that these experience, accomplishments, and insightwill contribute to strengthen governance of the IHI Group, theCompany has appointed him as a Director.

–

Takeshi Kawakami has accumulated a great deal of knowledge
in the bridge design, manufacturing and construction divisions.
He subsequently served as the manager responsible for many
projects, including overseas projects at a subsidiary operating
bridge/water gate business, which the Company establishedthrough the acquisition of a leading Japanese company, andthen as that company’s President. Since April 2019, as
President of Social Infrastructure & Offshore Facilities Business
Area, he has led that business area in a globally competitiveenvironment. In the belief that his abundant experience,accomplishments, and insight will contribute to the growth of
the IHI Group, the Company has appointed him as a Director.

13 of 13
(100%)

Outside Director

5 year

6,500
sharesCommittee
Member–ChiekoMatsudaOutside Director

*

4,400
shares––Minoru Usui
Outside Director

1 year

1,900
shares––Reasons for nomination

Attendanceat Board of
Directors
meetings in2020

Term in
officeAppointments toadvisory committees
Company
Remuneration Nomination
shareholding
Advisory
Advisory
Committee Committee

Yasuhiro Shigegaki has accumulated a great deal ofexperience and knowledge mainly in the research anddevelopment division. In addition to having served as
Chairman of an overseas subsidiary that the Company
acquired, he has actively pursued global expansion to achieve
growth as the manager responsible for the business. As the
President of Industrial Systems & General-Purpose
Machinery Business Area since April 2020, he has beenleading the business in a globally competitive environment.
In the belief that his abundant experience, accomplishments,
and insight will contribute to the growth of the IHI Group, theCompany has appointed him as a Director.

13 of 13
(100%)

1 year2,200
shares––

Hideo Morita has accumulated a great deal of knowledge
as manager responsible for the development of spaceequipment, production, design, and engineering
departments of the Aero-Engine & Space Operations. Since
April 2018, he had led the Civil Aero-Engine Division, andsubsequently as the President of Aero Engine, Space &Defense Business Area since April 2021, he has beenleading the operations under environmental changes. In the
belief that his abundant experience, accomplishments, andinsight will contribute to the growth of the IHI Group, theCompany has appointed him as a Director.

–

–

2,800
shares––Kazuhiko Ishimura has gained abundant experience,accomplishments, and extensive insight into overall
corporate management at the helm of a comprehensive
materials manufacturer, where he was at first in charge ofmanufacturing and technology development. Aiming to have
him reflect these qualities in the management of theCompany and carry out management oversight andmonitoring functions from an independent perspective, theCompany has appointed him again as an Outside Director.

17 of 18
(94%)

4 year

1,900
sharesChairperson

Committee
MemberYoshiyuki Nakanishi, following experiences in sales of products
and services of a global chemical manufacturer andinvolvement in operations of its key business, has gained
abundant experience, accomplishments, and extensive insight
into overall corporate management at the helm of the
manufacturer, where he implemented various measures to
respond to changes in the business environment. Aiming tohave him reflect these qualities in the management of theCompany and carry out management oversight and monitoring
functions from an independent perspective, the Company has
appointed him again as an Outside Director.

12 of 13(92%)

1 year0
sharesCommittee
MemberCommittee
MemberChieko Matsuda has extensive experience and insightgained through financial and capital market operations andmanagement consulting operations and an extremely highlevel of expertise in corporate and financial strategies as a
researcher. In addition, she has broad insight as an Outside
Officer of several companies. Aiming to have her reflect
these qualities in the management of the Company andcarry out management oversight and monitoring functions
from an independent perspective, the Company has
appointed her again as an Outside Director.

13 of 13
(100%)

1 year0
shares–Committee
MemberMinoru Usui, after being in charge of technology development
in an electronic equipment manufacturer that operates
business globally, has gained abundant experience,accomplishments, and extensive insight at the helm of the
manufacturer, where he implemented various measures to
respond to changes in the business environment. Aiming tohave him reflect these qualities in the management of theCompany and carry out management oversight andmonitoring functions from an independent perspective, theCompany has appointed him as an Outside Director.

––

0sharesCommittee
MemberCommittee
Member*Elected as Director of the Company at the 200th Ordinary General Meeting of Shareholders held on
June 23, 2017, and resigned as Director of the Company at the conclusion of the 201st Ordinary General
Meeting of Shareholders held on June 22, 2018, due to the expiration of his term.

023

Sustainability
Management

Basic Information

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Governance

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance
Governance▶Corporate
Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Average Attendance of Outside Directors

(Unit: %)Category

2017

2018

2019

2020

Board of Directors Meetings

95.3

98.6

98.1

96.8

Number of Concurrent Positions of
Outside Directors

Position at theCompany

Standing Audit &Supervisory
Board Member

3

Yoshiyuki Nakanishi
Outside Director

2

Chieko Matsuda
Outside Director

2Minoru Usui
Outside Director

Name

TakashiNiimura

Name
Number of Important
Position at the Company Concurrent Positions
Kazuhiko Ishimura
Outside Director

Members of the Audit & Supervisory Board (as of July 1, 2021)

Seiji
Maruyama
Standing Audit &Supervisory
Board Member

ToshioIwamoto2

Outside Audit &Supervisory
Board Member

Ratio of Outside Directors

(Unit: %)Category

2017

2018

2019

2020

2021

Ratio of Outside Directors

29.0

33.0

27.0

33.0

33.0

Aiko Sekine
Outside Audit &Supervisory
Board Member

YumikoWasedaOutside Audit &Supervisory
Board Member

Appointments toadvisory committees

Attendance
Attendanceat Audit &at Board ofSupervisory
Directors
Boardmeetings inmeetings in
2020
2020

Term in
office Remuneration Nomination
Advisory
Advisory
Committee Committee

Takashi Niimura has accumulated a great deal ofknowledge in the sales and marketing field since joining
IHI. As the manager responsible for supervising domestic
and overseas branches and affiliated companies, he has
carried out sales strategies from a company-wide
perspective, while globally expanding operations andmanaging risks according to the situation in each country.
In the belief that his abundant experience,accomplishments, and insight will be effectively utilized in
the auditing of the IHI Group, the Company has appointed
him as an Audit & Supervisory Board Member.

13 of 13
(100%)

11 of 11
(100%)

1
year

–

–

Seiji Maruyama accumulated a great deal of knowledge,
mainly in the areas of finance, internal control, internal
audit and business management, and since April 2019 has
worked on issues such as the Group’s finance andaccounting strategy, and improving the Group’s financial
position as General Manager of the Finance & Accounting
Division. In the belief that his abundant experience,accomplishments, and insight will be utilized in theauditing of the IHI Group, the Company has appointed him
as an Audit & Supervisory Board Member.

–

–

–

–

–

Toshio Iwamoto gained extensive experience and broad
insight as the executive of forefront IT company. Aiming
for these qualities to be reflected in the auditing of theCompany's management from an independent
perspective, the Company has appointed him as an
Outside Audit & Supervisory Board Member.

18 of 18
(100%)

14 of 14
(100%)

2
year

Committee
Member–Aiko Sekine has accumulated abundant experience andinsight as Partner of PricewaterhouseCoopers Aarata,
Japan, and Chairman and President of The JapaneseInstitute of Certified Public Accountants (JICPA). Aiming
for these qualities and her independent perspective to bereflected in the auditing of the Company’s managementfrom an independent perspective, the Company has
appointed her as an Outside Audit & Supervisory Board
Member.

13 of 13
(100%)

11 of 11
(100%)

1
year

–

–

Yumiko Waseda has abundant experience and insight as
an attorney at law, with an extremely high level ofexpertise in intellectual property law, as well as extensive
experience as an outside audit & supervisory board
member. Aiming to have her reflect this experience andinsight in the management oversight from an independent
perspective, the Company has appointed her as an
Outside Audit & Supervisory Board Member.

–

–

–

–

–

Reasons for nomination

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services

Average Attendance of Outside Audit & Supervisory Board Members(Unit: %)Category

2017

2018

2019

2020

Climate Change

Board of Directors meetings

96.0

92.6

100.0

100.0

Circular Economy

Audit & Supervisory Board meetings

100.0

100.0

100.0

100.0

Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

024

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Governance

Editorial Policy

Remuneration for Officers

Basic Information

Policy on Determination of Remuneration for Officers

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance
Governance▶Corporate
Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Basic Policy on Determining of Remuneration
for Directors (Excluding Outside Directors)
Remuneration for Directors shall be aimed at fully
encouraging Directors of IHI to perform their duties inline with management philosophy, Group vision, andGroup management policy, and strongly motivating them
toward the achievement of specific management goals tobring IHI’s and the IHI Group’s sustainable growth andimprove the medium- and long-term corporate value.
Remuneration shall be structured with the appropriate
allocation of a fixed base amount, an annual incentive(performance-based bonuses), which is linked to theoperating performance of each fiscal year, and a mediumand long-term incentive (performance-based share
remuneration), which is linked to medium- and long-term
operating performance and corporate value aimed at broadly
sharing a sense of value with stakeholders, and thereby shallcontribute to performing with a sound entrepreneurial spirit.
Under the management philosophy, “Human resources are
our single most valuable asset,” appropriate treatment shallbe provided to Officers of IHI in consideration of IHI’s
management environment, and social roles andaccountabilities IHI undertakes.

Remuneration Level and Allocated Ratios ofRemuneration
IHI shall appropriately establish remuneration levels andallocated ratios of remuneration upon having consideredfactors that include IHI’s business characteristics,
effectiveness of incentive remuneration, and professional
duties. Moreover, IHI shall perform verification by regularly
surveying objective market data on remuneration researchedby an external specialized institution.
With respect to allocated ratios of remuneration, IHI shallset remuneration at approximate proportions of BaseAmount: Performance-Based Bonus: Performance-Based
Share Remuneration equal to 50%:30%:20% for the
President, and the Chairman of the Board, and at
approximate proportions of 55%:25%:20% for other
Directors, subject to standard business performance.

Calculation Method for Incentives
1. Performance-based bonuses (Annual incentives)(1) Performance indicators and reasons for selection thereof
Performance indicators shall be those that include: profit
attributable to owners of parent underpinned by the aimof maintaining common interests with our shareholders;consolidated operating cash flow underpinned by the aimof strengthening the capacity to generate cash necessary
for growth, and; individual evaluation indicators
corresponding to tasks assigned to each executive. The
performance indicators shall be reviewed as necessary,particularly upon encountering changes in the
management environment and executives’ duties.
(2) Method of calculating remuneration
The monetary amount of remuneration provided every
fiscal year is calculated as the amount of payments basedon individual evaluation indicators added to the product of
the standard payment amount corresponding to titles andpositions multiplied by the performance evaluation payout
rate corresponding with percentage achievement of profit
indicators. The performance evaluation payout rate varies
from a range of zero to approximately 200 depending on
the percentage achievement of profit indicators, with abaseline value of 100 for the amount of payment when
performance targets have been achieved. In addition,
regardless of the calculation results the annual incentive
is not paid to Directors if no dividend is paid.
2. Performance-based share remuneration (Medium- tolong-term incentives)(1) Performance indicators and reasons for selection thereof
The performance evaluation period shall encompass the next
three fiscal years, and performance targets for the final fiscal
year of the performance evaluation period shall be establishedat the outset of the performance evaluation period. Moreover,the performance indicators shall be of primary emphasis
under the Group management policies, with consolidated
ROIC serving as a performance indicator underpinned by theaims of engaging in business operations that place focus on
investment efficiency, achieving sustainable growth, andincreasing corporate value. IHI shall furthermore review thepossibility of making necessary in alignment with review of
the Group management policies.
(2) Method of calculating remuneration
The number of shares to be delivered on an individual basis
as performance-based share remuneration (a monetary sum
equivalent to the market value of the shares is to bedelivered with respect to a portion of such remuneration)
shall be calculated as the standard number of shares to bedelivered with respect to each of the job title rankings,
multiplied by a coefficient aligned with the percentage ofthe consolidated ROIC target achieved. The coefficientvaries from a range of zero to approximately 150 dependingon the extent of having achieved such target, with abaseline value of 100 for the number of shares to bedelivered when performance targets have been achieved.

Procedures for Determining Remuneration
To ensure appropriateness and objectivity regarding
matters of Officer remuneration, the Board of Directors
shall make decisions on such matters subsequent todeliberation and reporting findings thereof by the
Remuneration Advisory Committee established as an
optional body by IHI.

Remuneration of Outside Directors and Audit& 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 abase amount, as compensation for responsibilities forauditing the execution of business throughout the IHI Group.

025

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Governance

Editorial Policy

Results for 2020 Remuneration

Basic Information

Details of Director and Audit & Supervisory Board Members Remuneration
(Unit: Million yen)

Sustainability Management
IHI Group Material Issues
Sustainability Management

Category

Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance
Governance▶Corporate
Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights

Total remuneration by type
Number of
Total
Performance- Performancepeople
Basicremuneration
based
remunerated remuneration based share
remuneration*bonuses

Directors

16 person

365

199

0

565

Audit &
Supervisory
Board Members

7 person

102

–

–

102

Total
(outside)

23 person(7 person)

467
(81)

199
(–)

0
(–)

667
(81)

Targets, Results, and Other Data of Performance Evaluation Payout Rates
Type ofremuneration

PerformanceConsolidated
based share
ROIC
remuneration
Current net
incomeattributable toowners ofparent* The total amount of performance-based share remuneration is the amount of the provision for shareacquisition costs related to the granted points recorded in the fiscal year under review, which is different
from the actual total payment amount.

Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)

Margin of
Performance
performance
evaluation
evaluation
indicator
payout rate

Performancebased bonus

Performance
evaluation
payout rate

Targets

Results

Performance
evaluation
payout rates

0 - 150%

Maximum: 15%
Target:12%
Minimum: 3.5%

2.2%

0%

0 - 200%

Maximum: 38.4
billion yen
Target:23.4
billion yen
Minimum: 8.4
billion yen-3.8 billion
yen0%(Head Office)Maximum: 5.3%
Target:3.3%
Minimum: 1.3%

(Head
Office)0.7%

0 - 200%(Business Areas)
Maximum and minimum range set
for each business area

Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Consolidated
CF(Revised
Amount)0%

0 - 150%(Head Office)Maximum: 60.0
(Headbillion yen
Office)Target:40.0
24.5 billion
billion yen
yen
Minimum: 20.0
billion yen

0%(Business Areas)
Maximum and minimum range set
for each business area
* The margin of performance evaluation rate of performance-based bonus indicated in the chart above arebased on those of fiscal 2020.
* The performance based bonus has not been paid as dividends were determined to be zero yen for fiscal
2020.

026

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Governance

Editorial Policy

Board of Directors Evaluation

Shareholder Composition

Cross Shareholdings

Basic Information

IHI has been evaluating the performance of the Board of
Directors annually in principles since 2015 to further its
effectiveness.
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 operation of
the Board of Directors, risk management, and culture of
the Board of Directors.
• The external consulting company collects and analyzes
the questionnaire responses.
• All relevant Officers are interviewed regarding thequestionnaire and the analyzed responses.
The results of the above process are brought together incomposition the form of a self-evaluation by the Board of
Directors, and proposed points for improvement are
identified.
Regarding the evaluation of the Board of Directors
implemented in fiscal 2020, it has been self-evaluatedthat effectiveness of the Board of the Directors has been
continuously secured thoroughly.
In addition, in order to further enhance the effectivenessof the Board of Directors, we recognized the need tofurther deepen discussions on ESG management,
business portfolios, the composition of the Board of
Directors, and succession plans.
The next evaluation of the Board of Directors is scheduled
to be conducted during fiscal 2021.

Shareholder Composition

Approach

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance
Governance▶Corporate
Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services

Officer Shareholdings

Climate Change

Category

Company shareholding

Circular Economy

Directors (8)37,600 shares

Outside Director (1)1,900 shares

Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

* As of July 1

Web

Annual Securities Report

Web

Integrated Report

Employee Stock Ownership Association Membership RateOf the IHI employees, 52.1% are member of the
Employee Stock Ownership Association as of March 31,
2021.

OthersCorporate Governance Report
Please see our Corporate Governance Report for more
information about IHI corporate governance.
Web

Corporate Governance Report

Purpose of cross shareholdings
As a general rule, IHI looks to reduce cross shareholdings
after engaging in a suitable dialogue with the issuing
company. However, IHI may hold shares in strategic
partners for business alliances, joint research anddevelopment, or other forms of collaboration for the
purpose of pursuing medium- to long-term growth andincreased corporate value for IHI.

Management of cross shareholdings
The propriety of holding individual shares is determinedat the Board of Directors every year by confirming themid- and long-term significance based on the above
holding policy and examining the economic rationality ofholding the shares.

Results
In fiscal 2020, IHI has wholly sold six security names andpartially sold three security names, among 50 security
names of cross shareholding IHI owned.

027

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Compliance
Editorial Policy

General Compliance

Basic Information

Policies

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance▶Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

The IHI Group implements its compliance program inaccordance with the “Basic Rules of Compliance for IHI
Group” and other internal policies.
IHI’s compliance program addresses legal compliance but
also aspires to meet the fluctuating values and needs ofsociety.
To prevent a recurrence of the quality issue that we
experienced in 2019, we have been focusing on andreinforcing our compliance and quality assurance systems
as part of our risk management activities. For example, in
fiscal 2019 we established the “IHI Group Code of
Action” with reference to the “Basic Code of Conduct for
the IHI Group” as the guiding light in everyday work of all
IHI Group employees.
Our compliance efforts emphasize management’s
unwavering commitment to compliance and ourdetermination to learn from past problems such as theinadequate practices discovered at our Mizuho AeroEngine Works.

IHI Group Code of Action

Tax Compliance
IHI Group Global Tax Policy

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 ourcolleagues.
7. We strictly manage and control information.
8. If we discover an issue, we report it
immediately.

Basic Rules of Compliance for IHI Group
Compliance is the foundation for companies to
do business in society.
The IHI Group shall act as follows in accordancewith the Basic Code of Conduct for the IHI
Group:• Strictly observe all laws, internal rules, andother regulations.
• Act in a fair and responsible manner asbusiness people.

The IHI Group enacts the Global Tax Policy inaccordance with “Basic Code of Conduct for the
IHI Group”, for the purpose of developing global
tax compliance, and aims at growing sustainably
and enhancing corporate value over the future.
1. Respect for the rule of law
The IHI Group observes the laws and ordinances
on taxes of each country or region based on aclear understanding of their meaning. The IHI
Group also acts sincerely and fairly with highethical standards so that it does not violate social
rules or international norms.
2. Transfer pricing
The IHI Group, by assessing transfer pricing inaccordance with the laws and ordinances of eachcountry or region and The International Transfer
Pricing Guidelines, is committed to appropriately
allocating income commensurate with thecontribution of each Group company and to
making proper tax payment in each country andregion.
3. Tax planning
The IHI Group does not engage in tax planningfor the purpose of tax avoidance.
4. Relationship with the tax authorities
The IHI Group, by providing information in thecourse of tax administration procedures and tax
audits appropriately and in a timely manner,
strives to maintain a sound relationship with the
tax authorities of each country or region.

028

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Compliance
Structure

Basic Information

Compliance Committee

Sustainability Management

The IHI Group established the Compliance Committee asa Group-wide committee on compliance under the Risk
Management Conference. Made up of complianceofficers from each division with the Chief Compliance
Officer as chairperson the Compliance Committee
deliberates and drafts important policies on compliance
as well as promotes compliance activities.
Compliance Committee members roll out the decisions
made by the Committee to each division by adapting
them into compliance activities tailored to the division.
Compliance Committee members inform the Committee
of progress made by the divisions and also use a PDCA
cycle for compliance activities.
The Legal Division acts as a secretariat to plan andexecute compliance activities in accordance with thepolicies created by the Compliance Committee while also
monitoring the progress of compliance activities in eachdivision and providing guidance and support as necessary.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance▶Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships

Compliance Committee
Chairperson

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Compliance Structure
Chief Executive Ofﬁcer (CEO)Management Committee
Risk Management Conference
Compliance Committee
Head Ofﬁce Divisions
Compliance Ofﬁcer

Business Area

Compliance Ofﬁcer

Secretariat
Members
Meetings convened
in 2020

Framework of the Compliance Hotline
Chief Compliance Officer
Compliance Group of theLegal Division
Compliance Officer of eachdivision
4

Compliance Hotline
The IHI Group runs the Compliance Hotline as an internalreporting system to quickly identify actions that violate or
potentially violate laws, internal regulations, or internaland external rules by IHI Officers and employees to allow
IHI to take corrective action as soon as possible. Thissystem prohibits retribution towards whistleblowers.
Anyone who retributes against a whistleblower will be
disciplined in accordance with applicable employment
regulations.
IHI Officers and employees can directly report to or
consult with third-party experts outside of their chain ofcommand via this hotline.
We also launched the Compliance Hotline in the UnitedStates in fiscal 2017 and in the Asia Pacific region in fiscal
2018. Preparations for launch the Compliance Hotline inEurope have finished in fiscal 2020. Hotlines are available
in the respective local languages.

Whistleblower(IHI or affiliated company officer,
regular employee, part-time employee,
temporary employee, etc.)

TEL

FAX
(Japan)WEB(Online)Initial Report (external agency)
Provides reports with
content approved by
the whistleblower
Accepts reports eitherwith name oranonymously

Reports every issue as
is without alteration
Masks the name, source,
and any other identifiable
information for anonymous
reports

IHI Legal Division

Provides feedback on how the issue is handled(to named whistleblowers who request feedback)

Editorial Policy

Strictconfidentiality

Compliance managers at IHI Divisions
and subsidiary companies

029

Sustainability
Management

Basic Information

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Compliance

Editorial Policy

Education/Awareness Building

Basic Information

Quality & Compliance Training

Sustainability Management

In fiscal 2020, a training course called Quality &Compliance Training (Second Edition) that focused on
quality and on-time delivery was conducted for all IHI
Group companies.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance▶Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Number of Compliance Training Participants
Item

2017

2018

Officer Training

IHI and subsidiary companies
in Japan50

47Line Manager Training

IHI and subsidiary companies
in Japan

83

75

2020

–

–
72

–

–

–

27,86624,085Affiliated companies overseas

–

–

1,774

3,261

Japan
(Conducted
as Quality &ComplianceTraining in
2020)

IHI and subsidiary companies
in Japan

18,02018,234

18,164

20,169Overseas

Affiliated companies overseas

1,261

1,126

1,214

–

Quality & Compliance Training

e-Learning

2019

IHI and subsidiary companies
in Japan

Launch of Compliance Day (May 10)
In fiscal 2021, the IHI Group submitted a report to the
Ministry of Land, Infrastructure, Transport and Tourism oncorrective measures to address the inadequate practices
at Civil Aero Engine Maintenance Business in 2019. These
corrective measures included the launch of a ComplianceDay (May 10) as an opportunity to reflect on and think
about compliance each year. This compliance event
makes past issues personal for each and every personwith the goal of continually raising awareness aboutcompliance.

(Unit: People)

Scope of Data

Results
Number of Compliance Hotline Reports

(Unit: Reports, Scope: IHI and affiliated companies)

Item

2017

2018

2019

2020

Reports

209

238

239

202

030

Sustainability
Management

Basic Information

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

031

Compliance

Editorial Policy

Competition Laws/Anti-corruption Laws

Basic Information

Policies

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance▶Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management

Commitment to Competition andAnti-corruption Law ComplianceMore global and borderless corporate activities makecompliance with various competition laws in each country
indispensable to maintain and gain business opportunities
in international markets. International rules prohibit any
form of illicit profit or other corruption. We are fullycommitted to complying with competition laws, anticorruption laws, and all other laws and regulations as partof the code of action for all the employees, Officers andDirectors of the Group.
We strive to prevent violations of competition laws byimplementing the IHI Group Competition Law
Compliance Policy and other various guidelines, which
provide more specific guidance than the IHI Group Codeof Action.
The IHI Group also adheres to anti-corruption laws. The
IHI Group Basic Policy Against Bribery of Public Officials
prohibits bribes, facilitation payments, and otherinappropriate payments and donations to public officials.
To increase the effectiveness of this policy, we havedrafted operating standards, appointed complianceofficers, and put in place specific procedures in eachdivision.

Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Structure
The IHI Group promotes educational and monitoring
programs with the IHI Legal Division at the core of Group
compliance and risk management.
The IHI Group assesses the risk of violations ofcompetition and anti-corruption laws as well as othercompliance risks according to the above mentioned IHI
Group rules. Each IHI Group company conducts risk
assessments tailored to their business and addresses

any issue found according to the level of risk with thesupport of the IHI Legal Division.
We also identify and handle any compliance issues at theearliest possible stage through the Compliance Hotline.
If any major compliance issues are ever discovered, IHI
establishes a task force led by the CEO to quickly andflexibly handle the issue while leveraging the knowledgeof internal and external experts. This task force does not
only address the issue but also introduces and supports
measures to prevent recurrence.

Results
Competition Law/Anti-corruption Law Violations
(Unit: Incidents, Scope: IHI and consolidated subsidiaries)
Item

2017

2018

2019

2020

Competition law

0

0

0

0

Anti-corruption
law

0

0

0

0

Expenditure to political organizations, economic
organizations, and other major industry organizations
(Unit: Millions of yen, Scope: IHI)
Item
Political
organizations

2017

2018

2019

2020

10

10

10

10

Economicorganizations

42

48

56

57

Other major industry
organizations

55

101

120

122

Education/Awareness Building
Employee Training and Education
The IHI Group provides training to teach employees about
various competition laws worldwide, such as the Japan
Antimonopoly Act and Unfair Competition Prevention Act,
the United States Sherman Antitrust Act, and competition
law in the European Union. IHI trains all of its new
employees on the basics of anti-corruption laws. We also
regularly educate all employees about the United States
Foreign Corrupt Practices Act (FCPA) and the United
Kingdom Bribery Act 2010 while monitoring the risk ofanti-corruption law violations in Japan and overseas.
We gain feedback from participants about theseawareness-raising activities, and the IHI Legal Division
reviews the effectiveness of the program to help enhancecompliance education every year.
Number of Training Participants
Item

Scope of Data

2020

IHI and consolidated
subsidiaries

2,252

Japan

IHI, IPS, IPC, IIS, IIK,
NTS, JIMT, IUK, ILM, IA

1,827

Asia
Pacific

IHIAP, IHIAPT, IEA, IPI

386

USA

IAI

23

Europe,MiddleIEL
East, andAfrica16

Employees Total

By
Region(Unit: People)

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Compliance

Editorial Policy

Security Trade Control

Basic Information

Structure

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance▶Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management

Security Trade Control Structure
President

IHI Security Trade Control Committee
The IHI Group has established internal security tradecontrol rules and set up the IHI Security Trade Control
Committee. Under these rules, the Committee works tomanage risk and ensure compliance with Japan’s Foreign
Exchange and Foreign Trade Acts. The IHI Security Trade
Control Committee is a Group-wide body led by an
Executive Vice President as chair with the Legal Divisionacting as secretariat. The members are made up of
managers selected from each division and business area
as well as review board members. The Committee audits
overseas business proposals from each division,
independently assesses the progress of security tradecontrol practices, shares relevant legal and regulatory
information, raises awareness, and provides training.
We will continue to improve the business operations ineach division based on the points and issues raised inthese self-assessments in an effort to enhance thequality of our security trade control practices.

IHI Security Trade Control Committee
Chairperson: Executive Vice President
Secretariat

Observers

Head of Secretariat:
General Manager ofLegal Division
Security Trade Control
Group of Legal DivisionInternal Audit Division
Technology & Intelligence
Integration
Global Marketing & Sales
Headquarters
Planning Group of Legal Division

Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Managers selected fromeach division and business area
Affiliated Companies

Review Board

Affiliated companies worldwide:
Led by the division of IHI Corporationthat is responsible for overseeing theaffiliates

Chairperson: Appointed by Committee
Review Board Members:
Selected from each divisionand business area

IHI Security Trade Control Committee
Chairperson

Executive Vice President

Secretariat

Security Trade Control Group of Legal
Division

Members

Head of Management Section of eachdivision and business area

Meetings convened in
2020

3

Corporate Citizenship

Reduce Environmental Impact

Head of Management Section ofeach division and business area032

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Compliance

Editorial Policy

Quality

Basic Information

IHI Group Code of Action and Quality
Declaration

Approach

The IHI Group has established the “IHI Group Code of
Action” with reference to the “Basic Code of Conduct for
the IHI Group” as the guiding light in everyday work of all
IHI Group employees in fiscal 2019, clarifying thestandards for what actions to take and making
judgments.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance▶Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

The IHI Group expanded the following quality measuresthroughout the Group in an effort to return to the core
principles of its corporate ethics in light of the inadequate
practices which occurred in 2019.
1. D eploy an IHI Group Code of Action and Quality
Declaration
2. S trengthen the compliance structure
P.28

Compliance3. Strengthen the quality assurance and quality
management systems
4. Create workplaces where everyone has a voice
5. Strengthen risk management
P.35

Risk Management

P.28

IHI Group Code of Action

We have also made quality a top priority in the IHI Group
Quality Declaration. The Quality Declaration reaffirms andclarifies the mindset and quality-oriented actions that are
the basis for our approach to manufacturing.
Our training program also helps raise awareness about
the Code of Action and Quality Declaration to ensure
proper daily business practices throughout the entire IHI
Group.

IHI Group Quality Declaration
We, the IHI Group shall:
1. Always put quality first.
2. Continue improving quality via Sangen-Shugi
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.

033

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Compliance

Editorial Policy

Structure

Basic Information

Strengthening Quality Assurance and Quality
Management Systems

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance▶Compliance

The IHI Group established the IHI Group Quality
Committee as a Group-wide committee on quality. The
Committee deliberates and drafts important quality
policies as well as promotes activities with the Officer incharge of overall Group Quality Assurance as chair. The
members are made up of the President of a businessarea, Executive in charge of quality for a business area,
and Executive of the Head Office Division.

Quality Improvement Promotion System

Chief Executive Officer (CEO)Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management

IHI Group Quality Committee

Business Area
President of Business Area
Executive in charge of Quality
General Manager of Quality Assurance Division

Business Unit/Affiliated Company
General Manager of Business Unit/President ofaffiliated company
Executive in charge of Quality
General Manager of Quality Assurance Division

Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)

IHI Group Quality Committee

Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact

Chairperson

Officer in charge of Overall
Group Quality Assurance

Secretariat

Monozukuri System Strategy
Planning

Members

President of a business area,
Executive in charge of Quality
for business area, and Executive
of Head Office Division

Meetings convened
in 2020

2

Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

P.30

Quality & Compliance Training

Initiatives

Risk Management
Information Security

Education/Awareness Building

Creating Workplaces Where Everyone has a
Voice (Worksite Visits by Top Management)
Top management, including the President, visit worksites
to engage in discussions and to actively exchange ideas
with employees, both from an equal standpoint.
We value "Sangen Shugi" , which involves visiting theactual site, looking closely at the actual product, andcorrectly recognizing the actual situation. By
communicating and hearing the voices of the employees
directly involved, management and on-site staff work
together in small group activities to resolve any problems
encountered on-site by focusing on operational
processes.

034

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Risk Management
Editorial Policy

Risk Management

Basic Information

Policies

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Management▶Risk
Information Security

Materialize an Affluent Society
Human Rights

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Structure
The IHI Group established the Risk Management
Conference chaired by the CEO as a body to review
policy initiatives, annual plans, corrective measures andother matters vital to overall risk management. The
Compliance Committee is positioned as thesubcommittee of the Risk Management Conference.
P.29

Compliance Structure

provide education to take advantage of expert knowledge
and support risk management activities of each Groupdivision. The Internal Audit Division strives to secure a
suitable level of risk management by assessing thereadiness and progress of the Group risk management
structure.

Risk Management System
Board of Directors
Risk Management Conference
Chairperson: CEO
Head Office Division*Business Units are affiliated with Business
Areas.

President of Business Area
Risk Management
Group

Internal Audit Div.
Legal Div.
Human Resources Div.
Technology &Intelligence Integration…………………………
…………………………
…………………………
Divisions
Affiliated companies

Group Risk
Management
Unit

Customer Relationships

The IHI Group considers and engages in risk
management as the top material issue of management.
The basic objectives of risk management are ensuringbusiness continuity and the safety of officers, employees
and their families, securing managerial resources andmaintaining public trust. We manage risk in accordancewith the following action guidelines based on the “Basic
Code of Conduct for the IHI Group”.
1. E
 nsure the continuity of the IHI Group’s business
operations.
2. Improve the public reputation of the IHI Group.
3. P rotect 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. M eet public requirements regarding risks.

The “IHI Group Key Risk Management Policies” wasformulated to prioritize risks that need to be addressed.
Each IHI division and Group company worldwide move
forward with independent risk management inaccordance with these policies.
There are common risks throughout the entire IHI Group;
therefore, the Group Risk Management Unit made up
primarily of head office divisions share information andGeneral Manager
Business Unit*…

GeneralManager ofBusiness Unit

Group Risk Management Unit supports the identificationand management of risks across the Group.

Divisions
Affiliated companies

Divisions
Affiliated companies

Divisions
Affiliated companies

Risk Management Conference
Chairperson

Chief Executive Officer (CEO)Secretariat

Corporate Planning Division

Attendees

General Managers of each Group Risk Management Unit, Presidents of eachBusiness Area, and others nominated by the Chairperson

Number of meetings
convened in 2020

4035

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Risk Management
Key Policies for Risk Management in 2021

Editorial Policy

Initiatives

Basic Information

In fiscal 2020, initiatives were conducted to strengthenrisk management through key themes. Progress of these
initiatives is verified on a quarterly basis at the Risk
Management Conference, furthermore accelerating risk
management through a PDCA cycle.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

P.28

Compliance

The IHI Group considers the risks and opportunities
brought by the ever-changing business environment as aGroup-wide issue. It is necessary for us to discern
potential risks which are beyond conventional frameworks
in this business environment, to identify and analyze vitalrisks, and to promote swift risk management are criticalin advancing business reforms. Taking these necessities
into account, our efforts which emphasize the key risk
management themes are indicated on the right.

Corporate Management
Corporate GovernanceRisk Management Framework

Compliance
Risk Management
Management▶Risk
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management

Risk Management Framework
Top-down Themes
1. Conduct further comprehensive
compliance initiatives.
2. Standardize the quality
assurance framework.
3. Address key business risks

Three Levels of Risk
Defense Lines

Division in Charge

Response

Internal Audit
Division

Secure risk management
functions

Corporate

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

Level 2Business Area

Anticipate risks as well as
monitor and direct risk response

Level 1Business Division
SBU*
Affiliated Companies

Identify risks and respond directly

Level 3

Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Risk
Management
Conference
Convened
Quarterly

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Continually assess and verify
response plans and progress of
implementation for more than
100 business-related risks

Bottom-up initiatives* SBU stands for the business unit under the umbrella of each business segment.

• Risk Management Initiatives to Plan and Promote
Risk Management Plans for Top-down Themes
1. Conduct further comprehensive complianceinitiatives.
2. Standardize the quality assurance framework.
3. Address key business risks.

• Risk Management Initiatives to Comprehensively
Identify Risks Inherent to Business Activities as wellas Plan and Promote Risk Management Plans
1. Thoroughly implement and strengthen safety
management.
2. Conduct further comprehensive complianceinitiatives.
3. Reform quality and operation systems.
4. Respond to changes in management platforms
and competitive environments, and promote ESG
management.
5. Properly respond to risks associated with global
strategy.
6. Improve operational productivity through workstyle reforms and build workplaces where diverse
human resources can actively participate.
7. Transition to robust project implementation andrisk management structures.
8. Ensure the appropriateness of large-scale
investments.
9. Maintain and improve trusting relationships withstakeholders.
10. Implement thorough measures against
harassment.
11. Promote even greater diversity.
12. Promote education on human rights and activities
to raise awareness.
13. Ensure information security.
14. Prevent leaks of confidential sales information,
personal information, and vital technicalinformation.
15. Develop adequate Business Continuity Plans (BCP)in case of disasters/accidents.

036

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Risk Management

Editorial Policy

Disaster Prevention

Initiatives

Basic Information

ApproachPreventing the Spread of the Novel
Coronavirus (COVID-19)

We have defined a crisis management structure,
response procedures, and Business Continuity Plans(BCP) for the entire IHI Group to respond to emergency
situations as part of the Basic Rules on Crisis
Management for IHI Group.
The IHI Group formed the Crisis Management
Headquarters to take the necessary steps to minimize
damage of an emergency situation with the potential togravely impact corporate management and businessactivities.

The IHI Group prioritizes the health and safety of
employees, their families, and every other stakeholder
above all and engages in measures to prevent the spreadof the COVID-19 infection and any potential cluster
infections.
Given this fundamental principle, guidelines areformulated individually for each department (offices,plants, and construction sites) to prevent the spread of
the virus throughout the Group, considering national andlocal government policies and guidelines.
The IHI Group implements the following measures toreduce the number of employees at the office and ensure
safety as part of its efforts.
1. Provide a work system to prevent infection.
Telework (work done from home) is formulated as a
general rule. Furthermore, any work which requires an
employee to come to the office combine various
countermeasures, such as a combination of telework andflextime, to shorten their time in office as much as
possible.
At plants and construction departments where working
from home is less of an option, measures are formulated
which ensure a work environment avoiding closed
spaces, crowded places and close-contact settings. Our
measures adapt to the circumstances on each site, suchas working in shifts, strengthening measures to preventthe spread of the virus when commuting to and fromwork such as commuting more by car and increasing thenumber of buses and other vehicles.
2. Initiatives to promote telework
The IHI Group is revising its operational processes withtelework as a core component to prevent the spread of
infection and to ensure business continuity. Our efforts
reform traditional work processes and systems toaccelerate the adoption of “new work-styles” from

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Management▶Risk
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

digitalization of internal approval and procedures to online
meetings and training.

Disaster Prevention Initiatives
To prepare for severe disasters, the IHI Group has built asystem to ensure both employee safety and business
continuity. In addition, we have clarified the organizational
structure and necessary actions in our internal rules,
during both normal times and during times of disaster. A
Business Continuity Plan (BCP) is established at each
representative office, division and affiliated company.
Furthermore, our plans regularly undergo desk training
and constant reviews to verify their effectiveness.
In addition to capital investments, such as earthquake
proofing of plants and offices, the IHI Group has enteredinto disaster prevention and readiness agreements and isbuilding other cooperative relationships with local
governments in case of disasters.

BCP Formulation and Improvement
The IHI Group regularly holds training for the purpose ofreviewing the BCP to maintain and strengthen its
effectiveness, in addition to encouraging officers andemployees to register to the safety confirmation system,
and consistently updating the risk maps on all sites.
Every March, IHI conducts a response training Groupwide, which the President and other management
executives participate, in case of severe disasters. This
training varies the day, time, and estimated damage of adisaster each year to test the effectiveness of the BCP
from various angles. Our affiliated companies also
conduct training to test their BCP to enhance disasterprevention capabilities.

037

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Information Security
Editorial Policy

Policies

Basic Information

The IHI Group has established the IHI Group Information Security Policy to ensure the protection of confidential information of customers and business partners as well as corporate
management and technical information. We strive to properly manage information while maintaining and improving information security.

Sustainability Management
IHI Group Material Issues

IHI Group Information Security Policy

Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security
Security▶Information

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management

The IHI Group hereby sets the following IHI Group
Information Security Policy for the purpose of
ensuring the security of information assets in its
possession and thereby further solidifying its trustbased relationship with customers, users and society.
(Basic Activities)
1. The IHI Group will take appropriate measures withtechnology, organization and employees, in order toprotect information assets against any leakage,theft, loss, destruction, illegal access, and disaster.
In the event of any security problem regarding thisinformation, the IHI Group will locate the cause as
quickly as possible, and exert every possible effort
to minimize the damage incurred.

Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship(Information Assets)
2. “Information assets” refer to the information the
IHI Group handles in the course of businessactivities, regardless of the type of media, and theequipment, facilities and services necessary forhandling such information.

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

(Scope)3. This Information Security Policy applies to all thoseusing the information assets of the IHI Group,
including but not limited to officers and employeesof the IHI Group companies and temporary staff.
(Compliance with Laws, Regulations, etc.)
4. The IHI Group will strictly observe the laws,
regulations and codes pertaining to the protectionof information assets, and the requirements andobligations regarding information security provided
for in the agreements with the customers.
(Education)
5. The IHI Group companies will provide all thoseusing the information assets of the IHI Group with
the necessary education on information security toenhance and maintain their awareness thereof.
(Management of Information Security)
6. The IHI Group companies will establish amechanism of implementing and managing
information security by taking measures such as
establishing rules concerning information security
and appointing persons in charge of information
management, thereby conducting, maintaining andimproving information security activities on acontinual basis.
(Responsibilities of Senior Management)
7. The Senior Management of the IHI Group will set

the example of enforcing this Information Security
Policy. In the event of any infringement of thisPolicy, Senior Management will address thesituation properly by defining their authorities andresponsibilities, and do their utmost to resolve theproblems, diagnose their causes, and prevent theirrecurrence.
(Punishment)
8. Any action in violation of the rules of information
security will incur punishment according to theemployment regulations of IHI Group companies.
(Announcement)
9. This Information Security Policy will be announced
and notified to all those using the information
assets of the IHI Group as well as being announced
to the public.

038

Basic Information

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

Information Security
Information Security Management System

Editorial Policy

Management Framework

Basic Information

The IHI Group has established an “Information Security
Promotion Framework”, chaired by the Chief Information
Security Officer, for the purpose of information security
management. The Information Security Subcommittee
operates within the IoT/ICT Promotion Committee as anorganization in charge of promoting the company’s
information security activities overall. A General Manager
is appointed at each IHI Head Office Division, Business
Area, Business Unit and group company to accelerate
activities under this framework.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security
Security▶Information

Materialize an Affluent Society

Information Security Activity Promotion Framework
Chief Executive Officer (CEO)Management Committee

Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

IoT/ICT Promotion Committee
Information Security
Subcommittee
Head Office
Divisions

Business Areas

Information Security Subcommittee
General Manager of Intelligent
Chairperson
Information Management
Headquarters
Information Security Department
Secretariat
of Intelligent Information
Management Headquarters
Members Business Areas,
Subcommittee
Business Units and Head Officemembers
Divisions
Number of meetings
3
convened in 2020

The IHI Group convenes the Information Security
Subcommittee three times yearly to plan, implement andevaluate information security measures in an annual
cycle.
In fiscal 2019, we built a three-stage auditing framework
for information security consisting three types of audits
by different auditors to strengthen checks (“C”) in the
PDCA cycle. Each organization (IHI divisions and groupcompanies) conducts its own internal audit, the corporate
division executes documentation audits, and eachBusiness Area, as the responsible division, implements
on-site audits. In fiscal 2020, these on-site audits
evaluated 1 Business Unit and 9 affiliated companies.
Guidance on corrective actions for any issues that were
found was provided by the responsible Business Area.
Divisions and group companies involved in highly
sensitive national projects in the IHI Group must undergo
annual reviews by an external specialized agency torenew the ISO 27001 international information security
certification.

Measures to Prevent Information Leakage
During Telework
In fiscal 2020, the IHI Group implemented telework (workfrom home) as a measure to prevent the spread of
COVID-19. However, due to the increase in remote
access to online systems compared to traditional office
work, cyber-attacks continue to increase, exploiting thevulnerabilities of these work style reforms and changes in
the working environment. The IHI Group has, therefore,
worked to raise employee awareness through e-Learningand internal newsletters covering security compliancerules for work done outside the office. These rules
specifically prohibit personal use of work computers andprohibit work data from being stored on personal IT
devices of the individual and/or family.
Prior to the COVID-19 pandemic, the IHI Group had
already provided specific computers, containing no work

data, which are dedicated for external use. We havemade it mandatory for these computers to be used for
any work conducted outside the office. The use of thesecomputers reduces the risk of information leakage upon
loss or theft of these devices.

Education/Awareness Building
Employee Education
The IHI Group provides e-Learning to all employees on a
yearly basis to deepen their understanding of information
security rules and tools, and to maintain and raise
information security awareness.
Rate of Participation in e-Learning(Unit: %, Scope: IHI)

Item

2017

2018

2019

2020

Rate of
Participationin e-Learning

98.0

96.8

83.0

96.0

Results
Information Security Measures
The IHI Group takes steps to address information security
risks from three perspectives: rules, tools and education.
The rules include the IHI Group Information Security
Policy, Information Security Measure Standards andInformation System User Rules. In addition, we haveintroduced antivirus software and security tools, all ofwhich are always kept up to date.

039

Basic Information

Information Security

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Evaluation of Information Security Measures
We assess the information security measures of theentire IHI Group quantitatively every year based on thebenchmark for information security measures
implemented by companies offered by the Information
Technology Promotion Agency, Japan (IPA). The level of
information security measures in fiscal 2020 was 3.4 outof 5. We will strive to achieve a score of 4, and further
continue to improve our level of information security infiscal 2021.

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security
Security▶Information

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Evaluation of Information Security Measures(Unit: Score, Scope: IHI and consolidated subsidiaries)
Item

2017

2018

2019

2020

Evaluation ofInformation
Security
Measures(Out of 5)

3.0

2.9

3.2

3.4

Sustainability
Management

Corporate
Corporate
Management
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Objectives

040

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society

Materialize an Affluent Society
Human Rights
Human
RightsCustomer Relationships
Customer
Relationships
Human Resource
Human
ResourceManagement
Management
Diversity andDiversity
andInclusion
Inclusion
Diversity andand Inclusion
Inclusion (Human(Human Resource
Resource Development)
Development)
Labor Practice
HealthandandSafety)Labor
Practice(Occupational(Occupational
HealthSafety)Supply Chain
SupplyChainManagement
Management
Corporate Citizenship
Corporate
Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Human Rights

042

Customer Relationships

045

Human Resource Management

047

Diversity and Inclusion

050

Diversity and Inclusion(Human Resource Development)

055

Labor Practice(Occupational Health and Safety)

059

Supply Chain Management

065

Corporate Citizenship 

067

041

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Human Rights
Editorial Policy

Policies

Basic Information

IHI Group Human Rights Policy

Sustainability Management

The IHI Group formulated the IHI Group Human Rights Policy in December 2020 based on its management philosophy and its approach to human rights outlined in the Basic Code of
Conduct for the IHI Group under the approval of the Board of Directors.
Through human rights awareness activities based on international standards, we will fulfill our responsibility to respect the human rights of all by fostering a respectful corporate culture
and promoting human rights throughout our business activities.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Rights▶HumanCustomer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

IHI Group Human Rights Policy
The IHI Group recognizes and contributes to solving
global issues based on group management
philosophies of “Contribute to the development ofsociety through technology” and “Human resources
are our single most valuable asset”. As the basis of
this activity, we have established the “IHI Group
Human Rights Policy” in line with the Basic Code of
Conduct for the IHI Group. Through human rights
awareness activities based on international standards,
we will fulfill our responsibility to respect the humanrights of all by fostering a respectful corporate culture
and promoting human rights throughout our businessactivities.
(Scope)1.	This policy applies to all officers and employees
engaged in IHI Group business (hereinafter"Officers and Employees”).
2.	We will account for the Human Rights of all people
in the course of our business activities.
3.	We will request our suppliers and business partners
to understand this policy and respect human rights.

(Compliance with international standards, laws
and regulations, Basic Code, etc.)
1.	We support and respect international standards forhuman rights (e.g. the Universal Declaration of
Human Rights, the International Labour
Organization's Declaration on Fundamental
Principles and Rights at Work, and the UN Guiding
Principles on Business and Human Rights) and willact progressively in line with these standards.
2.	In the countries and regions where we conduct ourbusiness, we will strive to respect international
standards while upholding the laws and regulationsof those countries or regions.
3.	We always act in accordance with the Basic Codeof Conduct for the IHI Group.
(Human rights awareness promotion structure andhuman rights due diligence)
1.	We will establish a system to systematically andcontinuously promote human rights awareness andwill work proactively to resolve human rights
issues.
2.	We will develop a structure to understand andassess human rights risks and to evaluate andimprove the effectiveness of our commitment(human rights due diligence) and implement
continuously.
3.	When a potential or actual human rights risk isassessed or confirmed, we will promptly takecorrective and preventive measures throughappropriate procedures.
(Training)
We will provide our Officers and Employees withappropriate training continuously so that actions
based on this policy will be implemented throughout
our business activities.
(Dialogue and consultation, information disclosure)
1.	We will maintain continuous dialogue andconsultations with relevant stakeholders on the setof actions set forth in this policy.
2	We will periodically disclose information about ourefforts and results on respect for human rights.
December 10, 2020
IHI Corporation
President Hiroshi Ide042

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Human Rights

Editorial Policy

Management Framework

IHI Group Human Rights Committee

Basic Information

We established the IHI Group Human Rights Committee
as a Group-wide committee. The Committee led by theofficer in charge of human resources as the chairpersonwith members from the Head Office Divisions andBusiness Areas plans and deliberates important policies
and promotes initiatives related
to human rights. Thisbody reports on important human rights activities at the
ESG Management Promotion Committee as a way toconsistently instill the importance of promoting humanrights throughout the Group.

Chairperson

Officer in charge of humanresources

Secretariat

Human Resources Division

Members

President of each businessarea, General Manager ofProcurement Strategy
Planning, General Manager ofTechnology & Intelligence
Integration, General Manager
of Global Marketing & Sales
Headquarters, General
Manager of Secretariat Div.,
General Manager of Corporate
Planning Div., General
Manager of Corporate
Communication Div., General
Manager of Legal Div., General
Manager of Administration
Div., and General Manager of
Human Resources Div..

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance

Human Rights Awareness Promotion Framework

Risk Management
Information Security

Materialize an Affluent Society

Chief Executive Officer (CEO)Human Rights
Rights▶HumanCustomer Relationships

Management Committee

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)

ESG Management Promotion
Committee

Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

IHI Group Human Rights Committee

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Head Office
Divisions

Business Areas

Number of meetings
convened in 2020

2

Education/Awareness Building
Employee Education
We held stratified and positional training, Headquarters
Representative’s Office training and external seminars infiscal 2020, which has raised awareness about important
topics such as human rights, compliance andharassment.
In fiscal 2021, we are expanding training for the purposeof solidifying our human rights policy throughout theentire Group worldwide.

Management Training on Creating Workplace
Free of Harrassment
The IHI Group conducted anger management training foreveryone in a management role.
Number of Human Rights Training Participants(Unit: People, Scope: IHI and affiliated companies in Japan)
Item2017 2018 2019 2020

New and Third-year
Employee Training(Group Stratified Training)

686

624

569

476

Instructor and Main
Participants(Group Stratified Training)

637

679

784

555

Leader and Middle
Manager Training(Group Stratified Training)

612

670

576

711

New foreman and assistant
foreman(Group Positional Training)

116

109

151

140

e-Learning on Harassment––

18,607 20,940

043

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Human Rights

Editorial Policy

Initiatives

Basic Information

The IHI Group does everything in its power to ensure fair
employment, fair labor practices, equal opportunities anda workplace free of harassment by promoting andrespecting diversity and individuality.
Collaborative human rights measures with our business
partners are preventing any human rights violations
throughout all of our business activities, not just in the
IHI Group but throughout the entire supply chain.
We monitor human rights on a daily basis and continually
improve these measures through regular audits.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance

Human Rights Due Diligence

Risk Management

The IHI Group began human rights due diligence to fully
understand, assess and eliminate the risks related tohuman rights.
In fiscal 2021, we identified and analyzed risks while
seeking insight from external experts in an effort to
reduce any potential and existing risks.

Information Security

Materialize an Affluent Society
Human Rights
Rights▶HumanCustomer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Freedom of Association and Respect forCollective Bargaining
The IHI Group recognizes the freedom of employees tounionize and work together as a labor union and union
members. Our Group will never treat anyone involved in
the union unfairly. We also engage in sincere collective
bargaining efforts founded in a mutual trust between IHI
and the labor union.

人権尊重への取り組み
（全体像）
Human
Rights Initiatives(Overall)
Basic Code of
Conduct for the IHI GroupIHI Group Human Rights Policy
Support and Respect for International Human Rights Standards
Promotion of
CSR Procurement

Diversity Promotion

Initiatives(IHI Group Procurement Policy)
Human Rights Measureswith Business Partners

Respect of Diversity and Individuality

Prohibition of Discrimination

Equal Opportunities

Fair Employment

Prohibition ofDiscriminatory Actions

Fair Labor Practices

Health and Safety

Harassment-free Workplace

Respect of Labor Rights
Occupational Health and
Safety Measures

Training and Education

P

Daily Internal Monitoring
and Improvement Efforts

Audits andImprovements
Dialogue andinformation
disclosure

Internal Reporting
System

Employee-awareness
Surveys

Consultation
Services

360-degree
Evaluations

C

Integrated
ReportSustainability
Data Book

External
WebsiteA

Human Rights
Due Diligence*

D

Business Partner
Surveys andImprovement Efforts

Local Community
Activities*We will develop a structure to understand and assess human rights risks and to evaluate and improve the effectiveness of our commitment.

044

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Customer Relationships
Editorial Policy

Approach

Basic Information

The IHI Group fosters business growth by providing safe
products and services to earn our customers’ satisfaction
and trust, and by contributing to the development ofsociety. The quality of our products and services forms abond of trust between the IHI Group, customers, andsociety. We perceive quality assurance as a social mission
and as a foundation of our existence.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Relationships▶Customer
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Education/Awareness Building
Employee Training and Education
Based on our management philosophy, “Human
resources are our single most valuable asset”, quality
management and assurance systems have been
established and conducted in order to improve customer
satisfaction. Furthermore, to heighten employee
awareness regarding product safety and to improve theirskill level, a mandatory position-specific training is
conducted for all employees as education and training.
Our training program for first-year employees provides anopportunity to experience customer-oriented perspective
to enable the employees to experience its importancefrom an early stage.
Third-year employee training emphasizes on ethics, theenvironment, and safety as a manufacturing company.
Regular e-Learning programs raise awareness about
internal rules and important laws and regulations. Eachbusiness area also provides their own independent
training systems.
We have also designed systems to raise questions about
legal compliance for the purpose of raising employee
awareness. These systems also strive to mitigate risk.

Number of Training Participants(Unit: People, Scope: IHI and affiliated companies in Japan)
Item

2018

2019

2020

Internal auditor training

105

74

31

Third-year employee training on
quality management andproduct safety

352

314

211

Training seminars for newlyappointed foremen and assistant
foreman of manufacturing divisions
focuses on problem solving andissue achieving in quality
management

101

316

136

Training related to quality andproduct safety (Three courses
with a total of six classes)

472

Professional quality training–

Disclosure of Information about Products andServices
The IHI Group discloses information about our products
and services through various mediums, such as televisionand newspaper advertisements and the company
homepage. This information helps familiarize the public atlarge about our company. We cooperate with all relevantinternal departments to provide accurate information inaccordance with copyrights, trademarks and all otherrelevant laws and industry regulations. The effectivenessof these advertisements are conducted to examine
opportunities on areas of improvement.
Number of Law Violations
(Unit: Incidents, Scope: IHI and consolidated subsidiaries)

354
6

87
7

Initiatives
Customer Satisfaction Surveys
The IHI Group surveys customers' satisfaction throughquestionnaires and other avenues to gain customer
feedback. We determine and inquire about aspects
distinct to each business, and then analyze and share ourfindings with all relevant divisions. This information helps
us adapt efforts to improve in order to further heighten
customer satisfaction.

Ensuring Product Safety
Through risk assessment which considers the product life
cycle during development, measures which reduce risks
as much as possible are incorporated into productdesigns. We provide customers with information about
any residual risk.

Item

2017

2018

2019

2020

Laws/regulations relating
to PR activities

0

0

0

0

045

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Customer Relationships

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance

Emerging Market Initiatives• Research and Development in Emerging Markets• China
The IHI Group concluded a comprehensive partnershipagreement with Tsinghua University in 1999, andShanghai Jiao Tong University in 2000. Through thesepartnerships, we have conducted technology
development in fields of fundamental technologies,
including thermal fluid, combustion, applied physics/
chemistry, material/strength properties, and rotatingmachineries for over 20 years.
Recently, we are focusing on development for technology
related to carbon neutrality and environmental issues,
aimed at resolving local social issues.

Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Relationships▶Customer
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

• Southeast Asia
The IHI Group uses sites in Southeast Asia for precommercial validation from proof-of-concept testing ofalgae biofuel in Thailand to proof-of-concept testing forbiomass gasification technology in Indonesia. We alsoestablished IHI Solid Biomass Malaysia Sdn. Bhd. (ISBM)
as an engineering site in Malaysia. This company drives
the manufacture, export and sale of EFB pellets—a solid
biomass fuel—derived from Palm Empty Fruit Bunches(EFB).

• System to Feedback Knowledge into R&D for
Emerging Markets (Reverse Innovation)
Based on joint research with universities, workshops are
conducted twice a year as means to return knowledge,
gained from research and development activities inemerging markets, to developed markets.
This approach also assists the field of carbon neutrality
and environmental issues by sparking innovational
solutions that could not have been reached in Japan due
to cultural and locational differences.
• Measures to Secure Outstanding Human Resources
for Emerging Markets
This IHI Group encourages local recruitment in China,
Southeast Asia and North America to secure outstanding
human resources for emerging markets. As the domestic
market grows in China, we have emphasized hiring of
local people as Group employees. In fiscal 2018, four new
members joined our management team. In fiscal 2020,
one member has been promoted as a manager, totaling
five managers. In fiscal 2021, one of the five managers
has been promoted as a general manager.
We are also implementing initiatives to transfer
employees with extensive experience who are in chargeof research and development from developed markets. In
April 2019, mid-level engineer from China was deployed
to IHI (Shanghai) Management Co., Ltd. as a technicalattaché. We strive to continuously strengthen industryacademia collaborations and accelerate the developmentof new technologies and businesses in the Chinese
market throughout fiscal 2021.

• Revision of Product Specifications for Emerging
Markets
The IHI Group revises specific products by consideringfactors such as local standards of emerging markets,
usage conditions, and accessibility of components andmaterials.
The IHI Group procures components for universal andprocess compressors from China centered upon parts
accessible in both Japan and China which offer the same
performance, and parts with less impact on compressor
function and quality.
To rapidly and flexibly respond to the needs of customers
overseas, IHI-Sullair Compression Technology (Suzhou)Co., Ltd. in China and IHI Dalgakiran Makina Sanayi Ve
Ticaret A.S. in Turkey are transitioning to local operations,
including specification and pricing processes. In terms ofspecifications, the IHI Group offers material changes,
additional coatings and other various options from gas
absorption filters to compressor parts and cooling devices
which consider the product usage environment.

046

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Human Resource Management
Editorial Policy

Policies

Basic Information

The IHI Group recruits and trains human resources as themost vital management resource. Our management
philosophy ensures that we contribute to thedevelopment of society through technology and statesthat human resources are our single most valuable asset.
We strive to realize a healthy, safe, work-friendly
environment where everyone respects one another andprospers.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource
ResourceManagement
Management▶HumanDiversity and Inclusion

Group Human Resource Management Policy
The IHI Group believes having common values among
the employees are required to reform corporate culture
as well as building workplaces and systems thatempower people to reach their full potential.
We drafted the Group Human Resource Management
Policy to embed this basic approach to human resource
management in the entire Group. This management
policy expands various recruitment, assignment,
development, and evaluation measures according to keygroup, global and diversity attributes for ideal humanresources.

Group Human Resource Management Policy
The IHI Group aims to create customer value by using
engineering expertise to focus on manufacturing
technology in line with the management philosophy
and IHI Group Vision through the following:
1. IHI will define and raise awareness about ideal humanresources shared by all Group employees to become anenterprise of professionals with excellent skills fromperspectives of global manufacturing and engineering
technologies as well as high quality products andservices renowned worldwide.

2. IHI will establish and carry out human resource
management measures based on ideal human resources
and provide Group employees with growth
opportunities.

3. IHI will provide a work environment where people ofdiverse backgrounds are in tune with the management
philosophy and Group Vision of IHI and can reach theirfull potential.

Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Education/Awareness Building
Global Standardization of the Human
Resource Management Policy
The IHI Group has created a video to present the ideal
attributes of human resources as a way to standardize
the human resource management policy to overseas
employees. In this video, IHI Group employees fromaround the world discussed the concepts and episodes
behind these ideal attributes during an online meeting,and this video is used widely for educational purposes
and recruitment activities.

Ideal Human Resources

Keywords

Integrity and TrustGroup

For Customers and Society

GlobalInnovation and Creation

Diversity

Teamwork

World-class Professional

Performance
Objectives

047

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Human Resource Management

Editorial Policy

Initiatives

Results

Basic Information

Revisions to the Human Resource Treatment Policy

Number of Employees

Sustainability Management

In October 2020, the IHI Group revised the personnel treatment policy to not only
mobilize Group human resources but also ensure proper treatment and Group-wide
promotions of outstanding human resources which puts the right person in the right job.
The revised policy adopts common Group-wide criteria set according to the role andresponsibility of each position and standardizes the evaluation and compensation systemthroughout the IHI Group to flexibly deploy human resources.

Item
Consolidated Number of employees
Number of employees
Male
IHI
FemaleRatio of female employees

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource
ResourceManagement
Management▶HumanDiversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

(Unit: People, Scope: IHI and consolidated subsidiaries)

2017
29,706
8,256
7,245
1,011
12.2%

2018
29,286
8,011
6,994
1,017
12.7%

2019
28,964
7,741
6,730
1,011
13.1%

2020
29,149
7,796
6,766
1,030
13.2%

Fair and Equal Treatment
The IHI Group strives for fair and equal treatment according to position andresponsibilities of the employees, with a focus on performance and achievement. Thereis no discrimination based on gender.
Our basic policy is not to simply comply with the minimum wage globally, but rather
provide a higher living wage.

Social Welfare Programs
Our non-statutory social welfare programs provide a variety of options employees canchoose from as a way of supporting the needs of a diverse labor force including basic
welfare such as residential and financial support to childcare, nursing care, education,
recreation, and other various options.

Employee-awareness Surveys
The IHI Group conducts employee-awareness survey targeting all employees once a
year to grasp the status of the employee engagement. Results of the survey are
analyzed for each department and employee status to highlight the strengths and issues,reflect them in human resource measures of each department, and improvement ofoperational processes.

Number of Employees by Region
Item
Japan
Asia Pacific
USA
Europe, Middle East, and Africa
Number of Employees by Business Area
Item
Resources, Energy & Environment
Social Infrastructure & Offshore Facilities
Industrial Systems & General-Purpose
Machinery
Aero Engine, Space & Defense
Other
Entire company (common)(Unit: People, Scope: IHI and consolidated subsidiaries)

2017
22,667
3,888
1,244
1,907

2018
21,862
4,213
1,352
1,859

Under 30
30 to 39
40 to 49
50 to 59
60 and over2020
21,778
4,132
1,122
2,117

(Unit: People, Scope: IHI and consolidated subsidiaries)

2017
7,579
2,290

2018
6,467
2,359

2019
6,812
2,399

2020
6,595
2,469

9,946

10,22010,07910,028

6,463
2,458
970

6,660
2,619
961

6,684
2,014
976

6,765
2,320
972

2017
1,930
2,285
2,274
1,290
477

2018
1,780
2,277
2,171
1,389
394

Number of Employees by Age
Item

2019
21,700
4,141
1,292
1,831

(Unit: People, Scope: IHI)

2019
1,612
2,198
2,119
1,462
350

2020
1,520
2,313
2,078
1,575
310

048

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Human Resource Management

Editorial Policy
Basic Information
Sustainability Management

Number of Employees by Employment Status
Item

Corporate Management
Corporate GovernanceCompliance

2018

2019

7,938

7,678

7,410

7,447

6,958

6,694

6,438

6,456

Female

980

984

972

991

12.3%

12.8%

13.1%

13.3%

83

84

88

93

Male

83

84

88

92

Female

0

0

0

1

0.0%

0.0%

0.0%

1.1%

235

249

243

256

Ratio of female employees
Re-hires

Ratio of female employees
Second by other companies
Male

204

216

204

218

Risk Management

Female

31

33

39

38

Information Security

Ratio of female employees

13.2%

13.3%

16.0%

14.8%

Constants and contract employees

131

83

91

107

Human Rights

Male

125

77

86

Customer Relationships

Female

6

6

5

4.6%

7.2%

5.5%

4.7%

Materialize an Affluent Society

Human Resource
ResourceManagement
Management▶HumanRatio of female employees(Scope: IHI)

Item

2017

2018

2019

2020

Total turnover rate

4.0%

4.3%

3.5%

2.9%

Rate of retirement due to personal reasons

2.0%

2.0%

2.0%

1.1%

Under 30

4.4%

4.6%

4.9%

3.1%

30 to 39

1.8%

2.3%

2.3%

1.2%

40 to 49

1.0%

0.9%

0.8%

0.3%

50 to 59

2.9%

2.7%

2.3%

2.2%

5.7%

7.4%

6.8%

4.3%

Rate of retirement
due to personalreasons by age

Turnover rate within 3 years of joining the company
Average Years of Service
Item

2018

2019

2020

All employees

14.8

14.9

15.8

15.1

102

Male

15.1

15.1

16.0

15.3

5

Female

12.5

13.2

14.5

14.2

470

498

496

476

71

85

90

85

Diversity and Inclusion (Human Resource Development)

Female

399

413

406

391

Labor Practice (Occupational Health and Safety)

Ratio of female employees

84.9%

82.9%

81.9%

82.1%

43

106

101

81

Male

28

84

85

64

Female

15

22

16

17

34.9%

20.8%

15.8%

21.0%

1,322

1,325

1,330

956

1,038

1,034

1,046

753

Number of Labor Complaints Received
Item

Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services

Fixed-term employees

Ratio of female employees
Temporary employees
Male

Climate Change

FemaleCircular Economy

Ratio of female employees

Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

(Unit: Year, Scope: IHI)

2017

Male

Diversity and Inclusion

Part-time employees

Turnover Rate

2020

Male

Sustainability Management

Innovation Management

2017

Regular employees

IHI Group Material Issues

Sustainable Development Goals (SDGs) Initiatives(Unit: People, Scope: IHI)

284

291

284

203

21.5%

22.0%

21.4%

21.2%

Ratio of Answered Employee-awareness Surveys

(Scope: IHI and affiliated companies)

Item

2017

2018

2019

2020

Ratio of answered employee-awareness surveys

90.9%

91.7%

91.4%

88.0%

Employees union membership rate (Unit: %, Scope: IHI and 7 labor unions of consolidated subsidiaries)
Item
Employees union membership rate

Number of Labor Complaints Received

2017

2018

2019

2020

74

73

73

72

(Unit: Reports, Scope: IHI)

2017

2018

2019

2020

0

0

0

0

* To quickly and fairly respond to labor complaints from employees, IHI established a committee inaccordance with labor agreements.

049

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Diversity and Inclusion
Editorial Policy

Approach

Targets and Results

Basic Information

The IHI Group advocates diversity as an important
keyword in the Group Human Resource Management
Policy and actively promotes diversity as part of its
management strategy.
A workplace where people with diverse backgrounds andvalues can reach their full potential cultivates anorganizational climate that embodies broad views andbrings about innovation and creation. More specifically,
we are spearheading efforts to empower women as
senior management candidates while leveraging thebroad perspectives and ideas of young up-and-coming
staff. We also help encourage opportunities both insideand outside of the company as a way to provide broader
experiences and open minds.
The IHI Group has always promoted mid-career
recruitment as well as the active participation of women,
foreign nationals, people with disabilities, and employees
past retirement age. We are further advocating diversity
from supporting work-life balance for employees raisingchildren or taking care of sick family to the active
participation of LGBTQIA+ gender minorities.

Diversity Targets and Results

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity andandInclusion
Inclusion▶Diversity
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

KPI

Targets

Target Year

2020 Results

Ratio of female
employees

University graduates: 15% or more

Continuous target(to be revised infuture)University graduates: 16.5%

Ratio of female
managers

2.5 times the number of female
managers (4.0%) compared to 2014

2022

3.4%

Female officers

Participation in Keidanren’s Challenge
to 30% by 2030 (activities to increase
the proportion of female directors tomore than 30% by 2030)

2030

18%

Ratio of Employeeswith Disabilities

2.4%

2021

Steadily exceeds 2.3%

Promotion of male
employees to takechildcare leave

Promote all applicable male employees
to take childcare leave of at least a
week, and promote 2 or more weeks

2022

–

050

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Diversity and Inclusion

Editorial Policy

New Graduate Recruitment Results

Basic Information

Item

Sustainability Management

Total(Unit: People, Scope: IHI, University graduates)

2017

2018

2019

2020

245

158

153

194

Number of Managers*3
Item

2018

2019

2020

2,626

2,643

2,767

2,732

Male managers

2,558

2,569

2,684

2,640

68

74

83

92

Total

IHI Group Material Issues

Male (Engineers)

174

113

95

133

Sustainability Management

Female (Engineers)

19

7

16

6

Female managers*3 As of April 1 each year

Sustainable Development Goals (SDGs) Initiatives

Male (Administrative)

36

25

28

29

Innovation Management

Female (Administrative)

16

13

14

26

Corporate Management
Corporate Governance(Unit: People, Scope: IHI)

Item

2017

2018

2019

2020

Risk Management

Number of recruits

87

66

77

55

Information Security

Recruitment rate

21%

23%

23%

16%

Compliance

Materialize an Affluent Society
Human Rights

Female Recruitment Rate
Item

Customer Relationships
Human Resource Management
Diversity andandInclusion
Inclusion▶Diversity
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Female recruitment rate

(Scope: IHI, University graduates)

2017

2018

2019

2020

14.3%

12.7%

19.6%

16.5%

Number of Officers*1
Item

Ratio of Female Managers*4
Item

Mid-career Recruitment Results

(Unit: People, Scope: IHI)

(Unit: People, Scope: IHI)

2017

(Scope: IHI)

2017

2018

2019

2020

Ratio of female managers

2.6%

2.8%

3.0%

3.4%

Ratio of general managers

0.8%

0.8%

0.8%

0.8%

Ratio of section managers

1.8%

2.0%

2.2%

2.5%

*4 As of April 1 each year

Number of Employees and Managers from Abroad*5
Item(Unit: People, Scope: IHI)

2017

2018

2019

2020

Number of employees

86

89

81

82

Number of managers

6

8

10

13

*5 As of April 1 each year

2017

2018

2019

2020

19

17

16

17

Male

16

13

13

14

Item

2017

2018

2019

2020

Female officers(outside)

3
(3)

4
(3)

3
(2)

3
(3)

Number of managers

184

204

220

234

Total

*1 As of July 1 each year, members of the Board of Directors and Audit & Supervisory Board.

Ratio of Female Officers*2
Item
Ratio of female officers(Scope: IHI)

2017

2018

2019

2020

16%

24%

19%

18%

*2 As of July 1 each year, members of the Board of Directors and Audit & Supervisory Board.

Number of Managers that Joined IHI Mid-career*6*6 As of April 1 each year

(Unit: People, Scope: IHI)

051

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Diversity and Inclusion

Editorial Policy

Local Managers at Overseas Sites*7

Basic Information

Item

Sustainability Management(Unit: People, Scope: China, Singapore, and USA)

Total

2017

2018

2019

2020

23

22

23

22

IHI Group Material Issues

China

1

4

4

5

Sustainability Management

Singapore

12

8

7

6

Sustainable Development Goals (SDGs) Initiatives

United States

10

10

12

11

Innovation Management

Corporate Management

Ratio of Employees with Disabilities*8

Risk Management(Scope: IHI)

Item

2017

2018

2019

2020

Ratio of employees

2.03%

2.21%

2.39%

2.35%

Human Resource Management
Diversity andandInclusion
Inclusion▶Diversity
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change

Performance Objectives
IHI Sustainability Data Book 2021

Employees who havetaken parental leave

2020

677

689

779

768

Total

100

118

131

137

Female

99

110

110

106

Male

1

8

21

31

100%

100%

99.2%

100%

18

6

7

2

Percentage of employees who
return to work after parental leave
Employees who have taken
nursing care leave(Scope: IHI)

Item

2017

2018

2019

2020

Re-employment rate of employees
at retirement age

87%

84%

81%

81%

(Unit: Hours, Scope: IHI)

Item
Monthly average overtime
Annual work hours

2017

2018

2019

22.90

22.50

21.10

13.00

2,024.60

2,003.30

1,967.80

1,797.90

Average Annual Paid Vacation Days Taken

2020(Unit: Days, Scope: IHI)

Item

2017

2018

2019

2020

Average annual paidvacation days taken

17.63

18.36

19.40

18.73

2017

2018

2019

2020

Ratio that took leave

22.1%

25.2%

28.6%

26.5%

Training Participants

(Unit: People, Scope: IHI and affiliated companies in Japan)

Employees who have used the
reduced work hour program

2017

2018

2019

2020

Active participation of women*9

133

148

116

–

Active participation of persons
with disabilities

–

–

160

140

Work-life balance of employees
raising children

–

34

134

53

Work-life balance of employees
taking care of sick family

–

–

400

290

*9 Activities postponed in fiscal 2020 due to the impact of the COVID-19 pandemic.

Participants in Training to Cultivate Local Managers at Overseas Sites
(Unit: People, Scope: China and Asia Pacific region)

Leave Acquisition Rate
Item(Scope: IHI)

Item

Item

Work HoursCircular Economy
Environmental Protection

2019

Ratio of Male Employees that Took Childcare Leave (1 Week or More)
Re-employment rate of employees at retirement age

Human Rights
Customer Relationships

2018*8 As of June 1 each year

Information Security

Materialize an Affluent Society

2017

Employees who have taken
childcare leave*7 As of April 1 each year

Corporate GovernanceCompliance

Item(Unit: People, Scope: IHI)

2017

2018

2019

2020

159

158

161

139

Item
Participants

2017

2018

2019

2020

25

36

42

–*10

*10 Activities postponed in fiscal 2020 due to the impact of the COVID-19 pandemic.

052

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Diversity and Inclusion

Editorial Policy

Initiatives

Basic Information

Mid-career Recruitment

Sustainability Management

The IHI Group actively pursues mid-career candidates asdiverse human resources with a wealth of experience
outside of its organization. Flexible and timely
employment of human resources who have thecapabilities demanded of our businesses andtechnological strategies are crucial in an ever-changing
business environment. Our avenues to recruit humanresources go beyond the regular hiring of new graduates
to a variety of other channels leading to truly diverse
human resources with the experience and expertiseessential to our businesses.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity andandInclusion
Inclusion▶Diversity
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Empowering Female Employees
The IHI Group executes a wide range of initiatives to help
better develop the careers of all female employees. These
initiatives not only recruit and develop outstanding humanresources to promote to middle and top management but
also define various goals to build a workplaceenvironment where everyone can actively participate.
Workshops and seminars are only a few examples ofthese efforts.
Network Leader Training helps female employees build a
network of professionals around them centered uponfemale managers who act as real-life role models. In
addition, we hold seminars taught by guest instructors as
a way for women to forge a career path as managers.
These seminars provide the guidance and coaching ofsupervisors to help female employees advance theircareers while considering major life events.

Empowering Employees from Abroad
The IHI Group strives to create workplaces motivating
fantastic employees to fully realize their potential
regardless of their nationality. This includes broad
assistance for foreign nationals working in the IHI Group.
We offer a variety of training opportunities to enhancecommunication skills in Japanese while events such as
those to encourage multicultural exchanges build broader
professional networks. These are just some of the manythings IHI does to promote work-friendly environments
where foreign nationals can utilize all of their skills.

Empowering Local Employees Overseas
The IHI Group is working to accelerate global expansion.
Overseas, we recruit and nurture human resources withroots in the community according to the Group Human
Resource Management Policy while considering theunique labor market and practices of each country.
Our human resource development programs offer training
to cultivate local managers, which also strengthens ourGroup management capabilities. Moreover, weemphasize the development of global procurement
officers and advance training programs for local staff.

Empowering Persons with Disabilities
The IHI Group promotes the active participation of people
with disabilities. We have put in place assistanceprograms, such as specialized support staff, across all
occupations and aspects of life in society. We also
support career advancement of each employee in addition
to guidance and coaching by superiors.
The IHI Group held its 2nd Group-wide Diversity
Challenge Lecture for employees with disabilities andtheir supervisors in 2020, which emphasized the active
participation of all. The IHI Group will always empower
persons with disabilities aware everyone can reach theirfull potential with the right support and understanding in
the workplace.

Building an Inclusive Workplace Regardless of
Sexual Orientation or Gender Identity
The IHI Group is promoting to create a working
environment where LGBTQ+ employees can reach theirfull potential. As part of our support for gender minorities,
we provide employment programs, corporate dormitories,
and other benefits as well as raising awareness about
gender minorities through an ally program and othernetworking and enlightenment opportunities.

Empowering People Over 60
IHI Group promotes the active participation of employees
at retirement age in many different ways. We haveadopted a program for each employee to decide when to
retire between the ages of 60 to 65. Approximately 80%
of our employees who have reached the age of 60 decideto continue working in their present position. Programs tocapitalize on the high level of expertise and skill also
create a framework to better encourage employees atretirement age to play a greater role.

Hiring Temporary Employees as Regular
Salaried Employees
IHI has put in place a system to hire temporary workers
as regular salaried employees. This program lays a pathfor temporary employees who satisfy certain criteria torequest a regular salaried position.

053

Basic Information

Sustainability
Management

Diversity and Inclusion

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity andandInclusion
Inclusion▶Diversity
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Providing Opportunities to Gain Diverse
Experience
The IHI Group continually enhances the workplace toensure human resources with diverse backgrounds,
experience and views have a means to fully leverage theirskills. We offer programs to nurture broader experiences
and open minds as well as a wide range of opportunities.
• Employment
The IHI Group clearly defines the type of work andhuman resources critical to business and technicalstrategies which will realize its long-term business vision.
This demands a strategic mix of new graduate and midcareer recruitment. We hire around the globe throughout
the year while expanding the scope of our recruitment
channels.
• Transfer
The IHI Group rotates staff between departments,
dispatches employees to external training programs aswell as to partner companies, government agencies andstartups. Our staff also participates in joint development
projects with other companies, universities, and research
institutes, which are just some of the many ways inwhich IHI provides access to a variety of experiences anddiffering viewpoints. To help facilitate the careerdevelopment plans defined by each employee, we also
recruit constantly from within the Group (career
challenge).
• Training
The IHI Group provides opportunities to gain broader
experiences and an open mind through active humanresource exchanges outside the organization, such asexternal training and events as well as participation invarious academic societies.

• Concurrent In-house Positions and Side Businesses
Outside IHI
The IHI Group encourages everyone to gain broad
experience both inside and outside the organization. We
support employees to have concurrent positions inside
IHI and side businesses (second jobs) outside of it in thehope of leveraging diverse viewpoints and ideas inmanagement. Some examples include a second job as anadvisor on university reforms or industry-university
collaborations as well as concurrent in-house positions
developing image recognition technologies or applications
using AI and SNS. As of fiscal 2020, our employees haveregistered about 50 different side businesses and roughly
80 concurrent positions.

Work-Life Balance• Creating New Working Style
The IHI Group strives to realize work-life balance toachieve a work-friendly environment where every
employee can find balance between their personal andprofessional lives.
For example, we are promoting more effective andflexible working style by reforming the way in which work
is done through actively leveraging ICT and taking fulladvantage of all employment programs.
• Work-Life Balance Programs and Consultation
Services
The IHI Group has put in place various hard and soft
support programs to help employees actively participate
in the company while raising children, taking care of sickfamily or undergoing treatment for an illness of their own.
We publish handbooks and leaflets to raise awarenessand promote use of these support programs, holdseminars by external lecturers, and have set up a
consultation desk with outside experts who can provide
support based on the circumstances and needs of eachindividual.

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

054

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Diversity and Inclusion (Human Resource Development)
Editorial Policy

Approach

Basic Information

The IHI Group places cultivating ideal human resource
attributes as the pillar of human resource development
and lays out educational systems, curriculum and training
plans for individuals in each department.
We also support each employee's continuous effort forindependent career development and growth so they canachieve their career plans.
In addition, we provide four main growth opportunities—
career development support, on-the-job training, off-thejob training, and transfers to new businessassignments—so every person can put in the work todevelop these skills and advance their careers andpromote human resource development remains
consistent with evaluations and appointments

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity andand Inclusion
Inclusion (Human(Human Resource
Resource Development)
Development)▶Diversity
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

P.47

Human Resource Management

Career Development Program (CDP)The IHI Group has introduced a Group-wide Career
Development Program (CDP) in fiscal 2019 as a training
system tailored to the career of each employee.
Consultation with a superior based on individual
employee’s career plan (future design) is held to discuss
what challenges and training each employee must
undertake to achieve their career plan.
Though this initiative, we are supporting each employee
to be able to independently think about their career plan
as well as offer opportunities to grow through work andtraining so that they can continue their growth.

Career Development Program (CDP)
Career Development Program (CDP)

Considering an
Independent
Career Plan
• Support of Career
Development
and Changes

Accelerating Growth Heightening
Motivation and Satisfaction

CareerDevelopment
and Changes

Interview
Coaching

Common organizational vision
Clear development plan and mission
Common development goals

CareerDevelopment
Program(CDP)

Discovery andOngoing Learning• Education According
to Development Goals

Training• Coaching to Accelerate
Individual Growth(Supervisor Support)

Business
Opportunities

Bringing Out the Skills and
Growth of Each Person• Opportunities to Gain Diverse
Experiences and Learn
Broad Viewpoints

055

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

056

Diversity and Inclusion (Human Resource Development)

Editorial Policy
Basic Information
Sustainability Management

Sustainability Management
Sustainable Development Goals (SDGs) Initiatives

Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Selective Training
Positional Training

Diversity Seminars (Work-life Balance Training)

Climate ChangeElective Training

External Training and Cross Industry Exchanges

Reduction of the Environmental Impact of Products
and Services

Assistant
ForemanTraining

Global Human Resource Training (Overseas Assignments, etc.)

Environmental Management

ForemanTraining

Global Communication Skills and Cultural Competency

Reduce Environmental Impact

New
ManagerTraining

Supporter Training
New Employee Training

Corporate Citizenship

Mental Fitness and Liberal Arts

Supply Chain Management

Communication Skills

Labor Practice (Occupational Health and Safety)

Business
Leader
Program(Basic)Business Skills

Diversity andand Inclusion
Inclusion (Human(Human Resource
Resource Development)
Development)▶Diversity

Business
Leader
Program(Advanced)

Technical Skills (Specialist Courses)

Diversity and Inclusion

Workplace Leaders Senior Employees Junior Employees

Human Resource Management

Specialist
Program

Career Management Training

Customer Relationships

Executive
Manager
Program

IHI-University(Approx.
300 Courses)

Career Design Seminar (By Stage of Career)

Human Rights

Executive
Specialist
Program

Voluntary/
CareerHuman
Independent
Positional Training Resource Diversity
Development
Development
Support Selective Training
Training

Data Analyst Training

Materialize an Affluent Society

SeniorExecutive
ProgramProfessional Human
Resource Training

Design Strategist Training

Information Security

The IHI Group provides common education programs fordiverse human resources to grow and actively participate
from training programs which groom human resources as
management to new employee training (new graduates/
mid-career recruits) and positional training for new key
and managerial employees as well as assistant foremen.
Employees take part in courses to learn global
communication skills and gain cultural competency
before taking a post overseas while strategicallyaccumulating experience at overseas production plants
and in major projects through our global human resource
development programs.

Specialist
Course(As of April 1, 2021)
GlobalProfessional Procurement Training

Risk Management

Initiatives to Develop Diverse Human
Resources

Management
CourseProduction Management Training

Compliance

CommonManagers

Corporate GovernanceManagement Training

Professional Quality Training

Corporate Management

IHI Group Education and Training Programs

Professional Engineering Training

Innovation Management

The IHI Group has been revising its human resource
development programs during fiscal 2021. Our aim is aworkplace where everyone can reach their full potential.
That is why we migrated our educational programs fromconventional education emphasizing training by level andposition to one more focused on career development
support programs and voluntary/independent selective
training which helps to accelerate growth and foster
ongoing learning. An environment of ongoing
independent learning helps expand the potential foreveryone to fully participate.

External Training (Executive Training, Cross Industry Exchanges, Study Abroad Programs, MBA, etc.)

IHI Group Material Issues

Human Resource Development ProgramBasic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Diversity and Inclusion (Human Resource Development)

Editorial Policy

Results

Initiatives

Basic Information

Participants in Main Training Courses and Total
Number of Training Hours
(Scope: IHI and affiliated companies in Japan)

Career Development Support Program

Sustainability Management
IHI Group Material Issues

Item

2017

2018

2019

2020

Sustainability Management

Stratified Training

Sustainable Development Goals (SDGs) Initiatives

Participants

2,900

3,300

3,276

1,882

Innovation Management

Training Hours 101,000

112,000

106,208

34,672

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity andand Inclusion
Inclusion (Human(Human Resource
Resource Development)
Development)▶Diversity

Open Lecture
Participants

5,800

6,200

3,343

1,948

Training Hours

44,00047,00025,073

16,358Average Annual Training Hours per Employee
Training Hours

16.7

16.7

19.8

The IHI Group capitalizes on the Career Development
Support Program as both an initiative to build a workplace
where everyone can actively participate and to support
the career design. Based on this program, we hold Career
Design Seminars tailored to each career stage to help our
employees consider and execute their plans fordeveloping the skills necessary to better advance theircareers in the next five to ten years.
To go one step further toward realizing these careerplans, we also strive to provide career management
training to supervisors (understanding about career
theories and enhanced coaching skills) because IHI iswell aware the support of superiors is crucial.

キャリア形成支援プログラム

Career Development Support Program
Career management training for individuals

13.3* In 2020, some training was postponed due to the effects of the
COIVD-19 pandemic.

Employees Certified as Master Artisans(Unit: People, Scope: IHI)
Item

2017

2018

2019

2020

Number of
employees certified

42

37

41

39

CareerStart Seminar

Must-Can-Will
Career Planning Seminar

Leader Career
Development Seminar

Work-Life
Balance Planning
Seminar

Career Design Seminar
ACTIVE NEXT

Career Design Guide to Create a Future Career Design

Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Career Stage

Career management training for supervisors

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Coaching Guide to Support Independent Career Development and Career Management Seminar, etc.

057

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Diversity and Inclusion (Human Resource Development)

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Independent Selective Training
The IHI Group put together full-fledge independent
selective training in fiscal 2021 as a framework for each
employee to choose and learn various subjects anytime
anywhere according to their career plan.
This training system provides over 300 different in-house

technical, business and communication skill courses
designed to help employees consider and take theinitiative to gain the knowledge and skills necessary toachieve their career plan.

Voluntary/Independent Selective Training
Voluntary/Independent Selective Training

Selective training (IHI-University)

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity andand Inclusion
Inclusion (Human(Human Resource
Resource Development)
Development)▶Diversity
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

• Relearning
We are expanding training programs for actively "relearn"knowledge and skills that are required to respond to thechanging business environment and technologicalinnovation.
As increase of job mobility and optimum appointment isunder progress, we offer support programs that enable
employees to quickly play an active role.

Technical Skills (Approx. 200 courses)

Business skills (Approx. 70 courses)

Physics/Chemistry
Materials/Structures
Heat/Fluids/Combustion
Turbo Systems/
Mechanical Elements/Vibrations
Production Processes
Control/Sensing
Project Management
Intellectual Property
Sales
Procurement

Management Policy
Sustainability/ESG
Quality/ComplianceDX
Design Thinking
Business Models
MarketingProblem Solving/PDCA
Finance/Accounting
Engineering andManufacturing Company Basics
Management

Communication skills (Approx. 20 courses)
Business Communication
Team Building
Coaching
Mind (Approx. 30 courses)
Philosophy
Leadership
Motivation
Diversity• Passing Down Skills to Others
IHI strives to pass down welding, machining, and othercore skills at each plant, which are the foundation of ourmanufacturing expertise. Many of our employees areexperts in each of these fields. IHI has introduced amaster artisan program to encourage employees certified
as master artisans to pass on their skills to new up-andcomers.
• IHI Human Resources Development &Communication Center
We use the I-STEP Shonan IHI Human Resources
Development & Communication Center (Yokosuka City,
Kanagawa) for training and various meetings joined byGroup employees from around the world. The Center is abase that promotes active communication and learningand where IHI Group colleagues from each corner of the
globe can come together to share our corporate
philosophy and values.

058

Basic Information

Sustainability
Management

Labor Practice (Occupational Health and Safety)
Editorial Policy

Policies

Basic Information

Ensuring health and safety is foundation of our businessactivities and one of the extremely importantmanagement issues. Every month, IHI shares the
progress of Group-wide occupational health and safety as
well as health management to all officers. We actively
strive to build a work-friendly environment where allGroup employees can reach their full potential. The
initiatives on the right are undertaken according to the IHI
Health and Safety Policy as a way to ensure a safe andhealthy workplace for everyone who works with the IHI
Group whether Group or partner company employees.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance

IHI Health and Safety Policy
1. The "Five Safety Principles" will be taken as aprinciple shared throughout the Group andmanagers as well as all employees will
engage in safety and health activities toprevent accidents.
[Five Safety Principles]– Safety is our first priority– Never do or let anyone else do anything
dangerous– Eliminate potential hazards– Strictly follow the rules– Make a real effort

Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice
HealthandandSafety)Practice(Occupational(Occupational
HealthSafety)▶Labor
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

2. We will endeavor to prepare facilities andprovide opportunities to promote and maintainthe mental and physical health of ouremployees, and create ideal workplaces inwhich employees can work in good health.
3. While complying with relevant laws andregulations on safety and health, we will givefull consideration to how our businessactivities affect local communities andendeavor to ensure safety and health as amember of society.

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

059

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Labor Practice (Occupational Health and Safety)

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management

Structure

IHI Group Health Management Declaration
The IHI Group will implement management thatvalues the health of employees based on the
management philosophy of “Human resources are
our single most valuable asset”.
We will support the proactive improvement of
employee health and aim to energize the organization
by maximizing employee vitality and capabilities.
By doing this, we will contribute to the developmentof society through the growth of the IHI Group.

Specific Initiatives
The IHI Group will work on both corporate healthmanagement and work style reforms.
We will actively cooperate with labor unions andhealth insurance associations to spearhead the key
measures below.
IHI asks every employee to strive to better their own
health and take part in building an enthusiastic
working environment.

July 1, 2020
Hiroshi Ide
President and Chief Operating Officer
IHI Corporation

1. Reduce individual and organizational health risks.
(i)	Enforcement of working conditions according
to the results of medical check-ups.
(ii)	Ensure the implementation of reactive mental
healthcare measures.
(Improve the working environment throughstress checks and a clear response toillnesses.)(iii)	Encourage employees to stop smoking andprevent second-hand smoking.

Occupational Health and Safety Structure

Chief Executive Officer (CEO)Management Committee

Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice
HealthandandSafety)Practice(Occupational(Occupational
HealthSafety)▶Labor
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

2.	Improve individual and organizational health toinvigorate the working environment.
(i)	Assist each person to actively manage theirown health.
(ii)	Proactively implement active mental healthcare
measures.
(Build a working environment where
enthusiasm and professional growth is felt sothat everyone cultivates an enduring spirit.)
3.	Promote better health for both employees andtheir families.
(i)	Expand activities to better health of employees
and their families.
(ii)	Increase employee participation in medical
check-ups and health guidance.

IHI Group Health and Safety Committee

IHI Group Health and Safety Committee
Chairperson

Officer in charge of Health and
SafetyDeputyChairperson

President of Social Infrastructure &Offshore Facilities Business Area,
President of Industrial Systems &General-Purpose Machinery
Business Area and President of
Aero Engine, Space & Defense
Business Area

Members

President of Resources, Energy &Environment Business Area,
General Manager of Technology &Intelligence Integration, General
Manager of Human Resources
Division and other persons
nominated by the chairperson

Secretariat

Human Resources Division

Meetings
1
convened in 2020060

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Labor Practice (Occupational Health and Safety)
Education/Awareness Building

Basic Information

Employee Training and Education

Sustainability Management

The IHI Group provides education on health and safety
specific to each position to everyone from new
employees to management.
Work division employees undergo Supervisor Safety
Training (SST) to learn about health and safety when
promoted to assistant foreman or foreman.
Design and development employees on construction
sites undergo Construction Safety Standard Training(CSST) to learn the ins and outs of construction healthand safety as new and senior employees or group leadersand management.
Employees who are candidates for construction site
director or supervisor undergo Site Manager Safety
Training (SMST) to learn about on-site health and safety.
We also provide follow-up training thereafter to expand
knowledge about health and safety. The IHI Group also
cultivates trainers for the SST, CSST, and SMST programs
as a Group.
In addition, the Health and Safety Committee constantly
reflects feedback from employees based on standards
laid out in the occupational health and safety
management system at Works and research facilities.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice
HealthandandSafety)Practice(Occupational(Occupational
HealthSafety)▶Labor

IHI Group Health and Safety Training System
Position

Work Division
Employees

Construction

Editorial Policy

Design,Development,
etc.

Director/supervisor(On-site)Training Hours (Estimate)
New Employees

Senior Employees

Section Managers

General Managers, etc.

New Employee
Training

SST-I Assistant Foreman Healthand Safety Training
SST-II Foreman Health and
Safety Training, etc.

New Manager
Training

Managers Follow-up
Training, etc.

CSST Senior Employee Training
CourseCSST Group Leader Training
CourseBasic CSSTManager Training
CourseCSST Business
Area President/
General Manager
Training Course

New Employee
Training
Basic SMST Training Course
CSST New(Newlyappointed foremen/ inspectors)
Employee Training
Group-wide
SMST Follow-up Training Course
Course(Basic training course taken the following year)
SMST Follow-up Training Course(Once every one to three years)

Note: SST stands for Supervisor Safety Training.
CSST stands for Construction Safety Standard Training.
SMST stands for Site Manager Safety Training.

Training Participants(Unit: People, Scope: IHI and affiliated companies in Japan)
Item2017 2018 2019 2020

Supply Chain Management

Foreman training

33

26

48

50

Corporate Citizenship

Assistant foreman training

85

83

103

90

Technical leader training–

33 165–

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Basic Site Manager Safety Training
246 260 169 125(SMST) Course (Graduates)
Supervisor Safety Training (SST)and SMST Trainer Course(Graduates)

13

31

18

* Training in 2020 was postponed due to the effects of the
COVID-19 pandemic.

–

Basic SMST Manager Training Course

061

Basic Information

Sustainability
Management

Labor Practice (Occupational Health and Safety)

Editorial Policy
Basic Information
Sustainability Management

Targets and Results
Occupational Accidents*1
(Unit: Incidents (figure inside parentheses indicates fatal incidents),

Scope: IHI and 31 affiliated companies)

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance

Health Management

Item

2017

2018

2019

2020

87(1)

55(0)

71(0)

38(0)

Employees

52(0)

28(0)

42(0)

18(0)

Temporary employees

4(0)

4(0)

4(0)

1(0)

Partners

31(1)

23(0)

25(0)

19(0)

Total

*1 Fatalities caused by occupational accidents

Compliance
Risk Management

Occupational Health and Safety Rate (2020)
Item

Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice
HealthandandSafety)Practice(Occupational(Occupational
HealthSafety)▶Labor
Supply Chain Management
Corporate CitizenshipTotal injuries
frequency
rate

Targets

Results

Works
Divisions

Under 0.7

0.62

Construction
Divisions

Under 1.2

1.31

Total Injuries Frequency Rate*2
(Unit: Incidents, Scope: IHI and 31 affiliated companies)
Item
Total injuries frequency rate

2017 2018 2019 2020
1.64

1.11

1.49

0.87

*2 Fatalities or injuries caused by occupational accidents per million
working hours

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Lost Time Injuries Frequency Rate*3
(Unit: Incidents, Scope: IHI and 31 affiliated companies)
Item

2017 2018 2019 2020

IHI Group Average

0.57

0.26

0.40

0.28

National average inmanufacturing industry*4

1.02

1.20

1.20

1.21

*3 Fatalities or injuries caused by occupational accidents per million
working hours (excluding injuries with no time lost)*4 Scope: Business sites with at least 100 people (sample survey)

Item(Scope: IHI and 35 affiliated companies)

2017

2018

2019

2020

Participation rate of
medical check-ups

69%

70%

71%

72%

Participation rate ofstress checks

91%

96%

94%

95%

Absenteeism(Employees
who take three or more
0.9% 0.9%
months of leave)

1.0% 0.8%

Presenteeism(Employees withrestricted hours)

1.6%

1.7%

1.6% 2.1%

Smoking rate

28%

28%

27%

27%

Rate of Occupational Diseases*5
(Unit: Incidents, Scope: IHI and 35 affiliated companies)
Item

2017

Rate of occupational
diseases–

Deaths due tooccupational diseases orillnesses

–

2018

2019

2020

0.165 0.165

0.15

–

–

0

*5 People suffering from occupational diseases per million working
hours (poor mental health/broken bones)

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

062

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Labor Practice (Occupational Health and Safety)

Editorial Policy

Initiatives

Basic Information

Health and Safety Management

Sustainability Management

The IHI Group is committed to eradicating occupational
accidents through Five Safety Principles that act as aGroup-wide code of conduct.
We assess risk at our works and construction sites to
identify and mitigate potential hazards through strictverifiable countermeasures. We conduct regular healthand safety training for all of our employees to eradicate
occupational accidents. We give support to business
partners at works and construction sites to improvehealth and safety management in a cooperative effort toensure safe working environments. We carry out these
health and safety initiatives as part of the occupational
health and safety management system.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice
HealthandandSafety)Practice(Occupational(Occupational
HealthSafety)▶Labor
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

• Activities to Reduce the Risk of Occupational Accidents
The IHI Group promotes health and safety activities after
defining occupational health and safety policies, targets
and plans according to the standards set by theoccupational health and safety management system. Ourannual occupational health and safety management
evaluations also drive improvements to eradicate
occupational accidents.
We define items requiring our attention as well byidentifying dangers and hazards related to machinery,
facility, chemicals and other such factors in order toreduce and eliminate them.
We rolled out IHI Group Basic Safety Rules for the six
most common types of occupational accident in fiscal
2020 and are focusing on eradicating these occupational
accidents throughout the entire IHI Group.

Occupational Health and Safety Management Priority Items and Measures

Occupational Health and Safety Management
Focus on following measures
to create a workplace that prioritizes safety with active
participation of mangers of business divisions.

Creating a workplace that prioritize safety/Zero Accidents

I

II

Strengthen accident
prevention activities

Ensure and improve level ofoccupational health andsafety management(1) IHI Group Basic Safety Rules(2) Active use of ICT(1) Provide education to positions
that have high risks of accidents(2) Strengthen safety management
and guidance system

Active participation of mangers of business divisions
Five Safety Principles

IHI Group Basic Safety Rules
1. Falls from high places
2. Falls from medium and low places
3. Pinching or entanglement in machinery or devices
4. Pinching when handling heavy objects
5. Accidents when using hand tools
6. Accidents when using grinders• Investigation Procedures and Observations in the
Event of an Occupational Accident
The IHI Group assesses and analyzes factors of any
occupational accidents through Group-wide disaster
investigation procedures. The use of standardized
accident report formats quickly shares information about
an accident in the Group. An analysis and evaluation of
the accident information collected helps put in placemeasures to prevent any recurrence of the same orsimilar accidents throughout the Group.

063

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Labor Practice (Occupational Health and Safety)

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice
HealthandandSafety)Practice(Occupational(Occupational
HealthSafety)▶Labor
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Health Management

Health Management Priority Items and Measures

The IHI Group believes building a working environment
where employees can work with both motivation andenthusiasm helps improve personal productivity andinvigorates the workplace. We strive for both physical andmental health management.
Our mental health education takes both reactive
approaches, such as detailed follow-up with individuals
suffering from mental illness, programs to help
employees return to work, and reintegration programs, aswell as active approaches, such as education to teachmental toughness to improve motivation andperformance. These educational programs aim to build anenthusiastic workplace for everyone from new
employees to senior management.
We also provide additional health measures to improve
lifestyle habits and prevent metabolic syndrome, smoking
and other such lifestyle illnesses.
• Activities to Promote Health Management
The IHI Group engages in activities that heighten thewell-being* of Group employees and the organization as away to accomplish the reforms that achieve a businessconstitution overcoming an ever-changing businessclimate advocated in the Project Change.
In fiscal 2021, we selected 150 trial workplaces for wellbeing improvement and promoting activities to improve
the workplace with a focus on management andcommunication.
* Well-being refers to not only the mental but physical health of
employees so that every person can feel motivate and be active
both in their personal and professional lives.

• Main Dialogue Between Employee Representatives
and Management on Health and Safety
The IHI Group convenes the Central Health and Safety
Committee every year to engage in a labor-management
dialogue about employee health and safety.

Health Management
Engages in
activities that heighten the well-being of Group employees and the organization
as a way to accomplish the reforms that achieve a business constitution
overcoming an ever-changing business climate advocated in the Project Change.
Condition where body and mind is healthy, able to work lively, and both employees and organization are full of vitality

Well-being of IHI Group
Vitality x Foundation Health Management

Improve vitalityof workplace

I

II

Improve wellness
activity that
increase vitality

Continue healthcare
which is thefoundation

Workstyle that
increase vitality
and happiness

Health improvementthat is the foundationof vitality

Support adjusting tochanges in environment
and new workstyle

Preventing the Spread of the Novel
Coronavirus (COVID-19)
P.37

Disaster Prevention

Strengthen measuresfor employeeswith health risks

Measures to prevent
COVID-19 infection

064

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Supply Chain Management
Editorial Policy

Policies

Basic Information

The IHI Group Procurement Policy guides procurement
activities around three main pillars: practicing fair andimpartial procurement, establishing mutually beneficial
partnerships, and responding to legal compliance andsocietal needs.
We revised and released the IHI Group Procurement
Policy in fiscal 2020 to clarify and promote CSR
procurement. The revised policy thoroughly considers
human rights, labor, occupational health and safety, theenvironment, and information management in addition toquality, price, delivery date and other basic procurement
requirements for the materials and equipment necessary
for our corporate activities. This policy requires suppliers
to adhere to legal, regulatory and social codes, consider
human rights, labor, occupational health and safety, theenvironment, and information disclosure as well as
ensure quality and delivery dates, strengthen
competitiveness, engage in conflict mineral* initiatives
and promote CSR procurement throughout the entire
supply chain. We also ask our suppliers to provide
information regarding the progress of their CSR
procurement initiatives to fulfill our corporate social
responsibilities.
The IHI Group utilizes the IHI Group Procurement Policy
as reference to define the Basic Rules on Procurement.
These rules define our basic procurement philosophy,
fundamental knowledge and business criteria for all our
procurement departments.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain
ChainManagement
Management▶Supply
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

* Conflict minerals refer to minerals mined in contexts of armed
conflicts which may inadvertently fund armed insurgents and fuelregional disputes.

IHI Group Procurement Policy
Basic Policy
1. Fair and Impartial Procurement
We provide business opportunities in an open
manner to business partners from around theworld, and welcome working with creative andcompetitive 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 Our Business
Partners
We regard our business partners as value creators,
and through seeking to realize optimal levels for
quality, price and delivery, together withprocurement 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. We even go beyond
quality, price, delivery date and other basic
requirements to fulfill our social obligations bypromoting CSR procurement activities that fully
consider factors such as human rights, labor,
occupational health and safety, the environment
and information management.

Requests to Our Business Partners
The IHI Group asks for its suppliers’ cooperation andunderstanding in the pursuit of the following values
to further CSR procurement in collaboration with the
suppliers while promoting business activities:(1) Compliance(2) Paying Attention to Human Rights, Labor
Conditions, and Occupational Safety and Health(3) Respect for the Environment(4) Information Disclosure(5) Ensuring Optimal Quality and Delivery Conditions(6) Enhancement of Competitiveness(7) Conflict Mineral Initiatives(8) Promotion throughout the Entire Supply Chain(9) Disclosure of the Progress of Initiatives

065

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Supply Chain Management

Editorial Policy

Education/Awareness Building

Basic Information

The IHI Group prioritizes training and internal audits
related to relevant procurement laws to continuallystrengthen compliance.
Professional procurement training has been conducted
for procurement divisions within the IHI Group and for
departments with a need to understand the Act against
Delay in Payment of Subcontract Proceeds, Etc. to
Subcontractors (hereinafter, “Subcontract Act”) and theConstruction Business Act.
The e-Learning programs provide the knowledge
necessary for all IHI Group employees in charge ofprocurement to execute their daily operations. This
includes information regarding the Subcontract Act,
transaction reforms to specific designations of
distribution, the Japan's Stamp Tax Act and proper importdeclarations.
Each IHI Group procurement division voluntarily reviews
and verifies the Subcontract Act and import declarations
to ensure proper practices and to promote improvement.
In addition, internal audits provide guidance regarding
areas of improvement.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)

Overseas Procurement Network

Labor Practice (Occupational Health and Safety)
Supply Chain
ChainManagement
Management▶Supply
Corporate Citizenship

Reduce Environmental Impact

Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Item

2018

2019

2020

Lecture on
Subcontract Act *1

120

126

38

Lecture on
Construction
Business Act*1

93

48

40

Lecture on Overseas
Procurement*1

231

81

78

Professional
Procurement
Training*2

–

643

233

*1 As these three lectures make up the professional procurement
training, the number of participants for these lectures areincluded in the number of participants for the professional
procurement training.
*2 Professional procurement training has been held only for thesecond half of 2020 due to the COVID-19 pandemic.

Raising Supplier Awareness about the Basic
Procurement Policy
The IHI Group has publicized the basic procurement
policy with its suppliers in Japan throughout fiscal 2020
to fully standardize its guidelines in their procurement
practices.
In the future, we will also promote the basic procurement
policy targeting our suppliers overseas.

Initiatives

Environmental Management
Reduction of the Environmental Impact of Products
and Services

Participants in Procurement Training(Unit: People, Scope: IHI and affiliated companies in Japan)

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

Responding to Anti-social Forces andAnticorruption
The IHI Group contractually requires business partners toprohibit all relationships with anti-social forces andcommit no acts of bribery toward foreign government
officials as prohibited by the Penal Code, the Unfair

Competition Prevention Act or against the laws enacted
in the particular country. If any business partner is foundguilty of such acts, they are required to cooperate in thereporting and investigation process.

Number of Critical Suppliers and Identification
Process
Based on the results of surveys conducted by individual
procurement departments and from a stand point of BCP,
the IHI Group redefined our definition of “criticalsuppliers” in fiscal 2020.
The new definition of “critical supplier” includes highvolume suppliers, suppliers of vital components andnon-substitutable suppliers.
We identified approximately 700 suppliers as “criticalsupplier” as of fiscal 2020.
Number of Suppliers(Unit: Companies, Scope: IHI and affiliated companies in Japan)
Category

2018

2019

2020

Suppliers

8,187

8,870

26,100

Critical Suppliers

1,305

4,097

700

* For 2018 and 2019, critical suppliers are defined and aggregatedas suppliers with annual transaction amount of ¥10 million or
more.

Recognition of Outstanding Suppliers
To further strengthen partnerships with outstanding
suppliers, the IHI Group commends suppliers who haveshown remarkable excellence.
In fiscal 2020, we have not commended specific suppliers
as many suppliers have provided extensive support during
the COVID-19 pandemic.

066

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

067

Corporate Citizenship
Editorial Policy

Approach

Targets and Results

Basic Information

The IHI Group strives to contribute to society as we believe corporate social responsibility
means fulfilling the expectations of society.
The Group Management Policy 2019 sets targets selected from the Sustainable
Development Goals (SDGs) for each of our business areas. These targets define thematerial issues for social contribution activities in regions where we operate businesses
and construction sites. The IHI Group encourages every director, officer and employee torecognize themselves as a member of society and to proactively respond to social
expectations through activities that contribute to society.

Approximately 1% of the IHI Group’s ordinary income is dedicated to social contribution
activities.
We invested a total of ¥215 million—approximately 1.27% of ordinary income—into fiscal
2020 activities concerning social contribution.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management

Relevance to BusinessCoexistence with
Local
Communities

Establishing and maintaining good
relationships with local communities isessential for smooth businessexpansion.

Development of
Next-generation
Professionals

Developing next-generation
professionals in the manufacturing
field and supporting research regarding
future science and technology fields
are essential to solidify the foundation
for the coming industries, to drive IHI
brand recognition, and to guarantee
business continuity.

Environmental
Protection

Supporting activities concerning
preservation of the ecosystem,measures to combat extreme climatechange, cultivation of natural bounties
and protection of our planet are
essential for a sustainable business.
This will consequently assist in raising
employee awareness regarding
environmental issues.

Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship
Citizenship▶Corporate

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Sustainable
Development Goals(SDGs)(Unit: Millions of Yen, Scope: IHI and consolidated subsidiaries)

Item
Coexistence with local communities
Development of next-generation professionals
Environmental protection
Other
Cash investment
Time investment
Goods donations and site costs
Membership Fees for Local Organization
Operating costs

Breakdown by
Activity

Material Issues of Social Contribution Activities
Material Issues

Social Contribution Expenses

Breakdown by
Expenditure
Reference
Activity Results
Material Issues
Coexistence with
Local Communities

Development of
Next-generation
Professionals

Environmental
Protection

2018

2019

2020

502
56
16
61
113
162
360
10
121

382
104
16
17
115
187
217
13
109

71
135
3
6
156
40
19
14
117

(Scope: IHI and consolidated subsidiaries)

Indicators
2018
2019
Business
Visitors to
9,129
7,977
interests*
eventsInvestments toSocial/502 million
382 million
environmental Local
JPY
JPY
Communities
interests*
Business
Participants ininterests*
science
Social/2,664
1,628(manufacturing)
environmental
classes
interests*
Participants in
Business
200
165
Hosted Events
interests*
Social/Environment
11,605m2 3,860,000m2
Environmental
protection area
Interests*

2020
632
71 million
JPY

1,356

60
12,652m2*T he indicators above for business and social/environmental interests defined by S&P Global are as follows.
Business interests: Factors directly related to product development, brand improvement, humanresource development and other such business interests
Social/environmental interests: Factors linked to Sustainable Development Goals (SDGs) and othersocial/environmental interests

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Citizenship

Editorial Policy

Initiatives

Basic Information

Major Activities in 2020

Sustainability Management

In fiscal 2020, the IHI Group focused on conducting
remote science lessons to nurture next-generation
professionals along with supporting measures to preventthe spread of COVID-19, while also engaging incollaborative activities with students. We collaborated
with Ochanomizu University to promote activities
regarding environmental protection. The IHI Group began
investigating soil micro-organisms in the green areas ofbusiness sites. The purpose of this activity is to deepen
the understanding about the vital role of soil microorganisms in the carbon dioxide cycle in addition to theirimpact on sustaining the food chain and ecosystem.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship
Citizenship▶Corporate

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Joint Environmental Conservation Activities
with Government and NPOs
A vast green belt that stretches 6km from north to south
exists in the industrial area in the coast of the Chita
Peninsula. Activities to protect and nurture the animals
and plants in this green area are conducted by local
governments of Chita City and Tokai City in Aichi, theJapan Ecologist Association of Support, universities, andlocal companies. IHI not only has embraced this initiative
but also participates in managing the habitats of animals
living in the area and conducts events to raise awarenessof citizens about the activity.
In fiscal 2020, local students conducted four biologicalinvestigations in the green area of IHI. The investigation
covered Japanese white dandelion, an index species*that blooms in early May every year along with otherspecies. We also participated in the “Green Smile Festa”,
an event centered on local universities, held at the Chita
Labor and Culture Hall in December.
We will continue to cooperate with NPOs and local
governments regarding environmental protection
activities and contribute to the local communities.
*Index species: A living organism that requires specificenvironmental conditions to exist

Coexistence with Local Communities• Contributions to Prevent the Spread of the Novel
Coronavirus Infection (COVID-19) and Natural Disasters
The IHI Group distributed masks (approx. 25,000),
protective clothing (approx. 100) and other sets of articles
to local governments and hospitals near our businesssites to assist in preventing the spread of COVID-19. In
addition, the IHI Group provided financial assistance tolocal governments afflicted by the Kyushu floods in July
2020 and the Fukushima Oki Earthquake in February 2021
to provide relief to the people impacted and support theaffected areas to recover as quickly as possible.

Development of Next-Generation Professionals• Jet Engine Class for Elementary and Junior HighSchool Students
The IHI Group teaches classes at elementary and juniorhigh schools to nurture next-generation science
professionals. These classes are developed jointly with
Ochanomizu University through a curriculum that teaches
wonders of science as well as how each individual cancontribute to society through science learned in school.
In fiscal 2020, IHI held this program at four schools andpublic institutes despite the COVID-19 pandemic. The firstever remote class focused on jet engines was held at anelementary schools near our head office. All students
learned about the construction and principles of jet
engines through a video before conducting hands-on
experiments. We received positive feedback from thestudents through survey results, such as that it was funlearning experience for the students or students were
surprised to learn that jet engines are manufactured
based on the science learned at school.

• Aerospace Class at Nanshun Junior & Senior HighSchoolIn 2015, Nanshun Junior & Senior High School wasestablished in Kagoshima, Kimotsuki-cho, famous for the
Uchinoura Space Center which launched the Epsilon
rocket.
Upon the high school’s establishment, IHI Group
employees have since held a class on rocket propulsion.
This class is held upon the request of Kagoshima
Prefecture, which hopes to offer unique learning
experience for the students.
As the high school reaches its 6th anniversary in fiscal
2020, we held two classes for 9th grade students (totalof 60 students) remotely as a measure to prevent the
spread of COVID-19.
The students showed tremendous interest in the field of
science technology and space as they listened to lectures
about the unfamiliar topic of rocket propulsion conductedby engineers on the front line.
• Collaboration with the Tohoku University of Art &DesignAs means to create new businesses, the IHI Group has
been engaging in activities with Tohoku University of Art& Design since December 2018. We have beenenvisioning the future of society and discussing about theinnovative products and services to lead us there withthe students. For the students’ graduation exhibition,
outstanding student projects were commemorated withawards such as the “IHI Award”, “Product Design Award”,
and the “Art Award”. These artworks are on display in theinnovation space at our “i-Base” in Yokohama
Headquarters Representative’s Office.
We will continue these activities to nurture students'
flexible and user-oriented creativity.

068

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
MaterializeanAffluent Society
Affluent
Society

ReduceEnvironmental Impact

Performance
Objectives

Corporate Citizenship

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship
Citizenship▶Corporate

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

• Lectures at Ritsumeikan Asia Pacific University
With the aim of nurturing the next-generation global
professionals, the IHI Group has been deploying staff toteach at Ritsumeikan Asia Pacific University, upon therequest of the university since fiscal 2018.
Although these courses were conducted remotely infiscal 2020 due to the spread of COVID-19, the “Capstone
Program” covered hands-on knowledge and skills
necessary for global business. In this lecture, discussions
on topics such as management issues and strategies
including global strategies are held between teams
consisting from Japanese students and students fromoverseas. Students are required to draft and present theirsolutions during the course. The lecturer from IHI
Logistics & Machinery Corporation evaluates and provides
feedback on the presentations.
• Support of Aerospace Innovative Structural Design
Laboratory, the Department of Aeronautics andAstronautics at The University of Tokyo
IHI Aerospace supports the University of Tokyo bysponsoring basic research to realize extremely lightweight
structural designs and efficient design analysis methods
in its aerospace program. We also support thedevelopment of human resources who contribute tofostering academic and societal development.
In April 2020, the University of Tokyo Graduate School
opened the Aerospace Innovative Structural Design
Laboratory as part of the Department of Aeronautics andAstronautics. This Laboratory aims to realize innovative
lightweight structural designs, which achieve highperformance and cost efficiency. It will also establish
fundamental analysis technology for innovative structuralmodels for aerospace equipment using advanced
composite materials as well as numerical analysis andoptimization technology to execute efficient structuraldesigns toward societal implementation. The program
also assesses the reliability and damage tolerance of
these advanced composite materials to facilitate thissocietal implementation, in addition to researching
technology applications of these structural designs in
prototypes. This series of processes also aims to nurturetalented human resources who are versed in basic
technology to achieve innovative structural designs aswell as societal implementation.
These technologies will significantly contribute to fuelefficiency by reducing the weight required of aircrafts
while aiding in the development of a sustainable society.

Environmental protection• Initiative to Survey Soil Micro-organisms
IHI began survey of soil micro-organisms in green areas
around its business sites together with Ochanomizu
University to promote environmental conservation.
The purpose of this activity is to deepen theunderstanding about the vital role of soil micro-organisms
in the carbon dioxide cycle as well as their impact onsustaining the food chain and ecosystem.
In fiscal 2020, we extracted soil samples from green
areas of five business sites and discovered a variety of
micro-organisms. In the green areas around our head
office, we discovered a rare type of land snail, seldomfound in urban parks.
In the future, IHI will protect the soil micro-organisms
living in the green areas around business sites andprotect their habitat. We also plan to host an educationalseminar on the function of the forest and soil forneighboring elementary and junior high schools.
• Initiatives by IHI Aioi Works
IHI Aioi Works is surrounded by a rich naturalenvironment, from the mountain forests to Aioi Bay. In
the lush green grounds that make up 70% of its landarea, the potential for biodiversity have been verified
through plant and animal surveys and green
infrastructure.
In fiscal 2018, the Association for Business Innovation in
Harmony with Nature and Community (ABINC) praised

IHI Aioi Works for its consideration of biodiversity withthe “Business Location in Harmony with Nature (ABINC)”
certification. Since then, we have been conducting
surveys from detailed topography of the mountain foreston our grounds to plant distribution. As a result, IHI has
been able to digitalize and centrally manage thisinformation as cartographic information to sustain
biodiversity and improve the natural environment around
Aioi Works.
In the future, we will utilize this data to create specificconservation plans and protect diverse and plentiful
forest resources.

069

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Reduce Environmental Impact

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Environmental
Management
Reduction of
Impactof Products
Reduction
ofthe
theEnvironmental
Environmental
Impactof Products
and Services
andServices
Climate Change
ClimateChangeCircular Economy
Circular
EconomyEnvironmental
Protection
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Environmental Management

071

Reduction of the Environmental Impact of Products and Services

075

Climate Change

077

Circular Economy

082

Environmental Protection

085

070

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Environmental Management
Editorial Policy

Policies

Basic Information

The IHI Group aims to create the new value pursued by asustainable society in its Group Management Policies
2019. We continue to work to reduce the environmental
impact on society at large in an effort to combat climatechange and address other social issues. The GroupManagement Policies further clarify the ideal direction ofenvironmental management to cultivate new business
opportunities and pioneer innovative business models.
Our Group will continue to comply with all environmental
laws and regulations as well as endeavor to reduce theenvironmental impact of our plants and offices in local
regions. We will also propose low-carbon and carbonneutral businesses using CO2 emissions throughout theentire life cycle of our products and services as a core
metric.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Management▶Environmental
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

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 anaction and a performance evaluation.
Article 2. Complying with Environmental Laws
and Regulations
The IHI Group complies with environmentalrelated laws and regulations/agreements,
policies/plans in related industries, and strives tostipulate and apply independent management
standards to enhance environmental
management.
Article 3. Provision of Environmentally-friendly
Products
The IHI Group provides the society with the
products and services that contribute to reduce
environmental burdens.
Article 4. R eduction in Environmental Burdens in
Business Activities
The IHI Group strives to preserve environmentand reduce the environmental burdens in its all
business activities.
Article 5. Environmental Education
The IHI Group, through environmental education,raises awareness of all people engaging inoperations, including officers, employees, andtemporary staff of IHI Group companies, thereby
they are able to act having concern withenvironmental problems on their own.

Article 6. Disclosure of Information
The IHI Group actively participates in the society,disclosure information, and communicates tocommune with local communities and preserve
regional environment.

071

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Environmental Management

Editorial Policy

Structure

Basic Information

Environment Committee

Sustainability Management

The IHI Group established the Environment Committee
to take the lead on environmental activities throughout
the entire Group. We promote and expand Environment
Committee decisions at all Environmental Manager
Liaison Groups in each business area and SBU as well as
Environmental Officer Liaison Groups at the
Headquarters Representative's Office. After constructive
deliberation, IHI raises awareness and expands thesedecisions to all Group companies.
Business areas and SBUs strive to reduce ourenvironmental impact through capital investments tomitigate environmental risks—one Group-wide risk
management initiative—legal and regulatory compliance,energy savings, waste emission reductions and more.
We draft action plans at the beginning of the fiscal year inline with each material subject and track progress as wellas provide support using a PDCA cycle through theEnvironment Committee.
Since fiscal 2019, the Environment Committee positioned
environmental impact-reducing initiatives into two
categories—products/services (proactive environmental
activities) and plants/offices (reactive environmental
activities)—with the former category under the Corporate
Planning Division and the latter under the Administration
Division of the Environment Group.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact*SBU stands for the business unit under the umbrella of eachbusiness area.

Environmental Management Systems Diagram
Chief Executive Officer (CEO)Management Committee
ESG Management Promotion Committee
Environment Committee

Business Area and SBU

Environmental Management Environmental Management
Officers Liaison Group
Officers Liaison Group

Business Area

Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Headquarters
Representative’s Offices

Environment Committee
Chairperson

Officer in charge of
Administration Division

Secretariat

Administration Division,
Corporate Planning Division

Committee
MemberBusiness areas, headquarters
representative's offices, andenvironmental general manager
at the Head Office divisions
nominated by the Committee
chairperson

Number ofmeetings
convened in 2020

4

Environmental Management
Management▶Environmental
Reduction of the Environmental Impact of Products
and Services

Headquarters
Representative’s Offices

Collection of Environmental Information
The IHI Group collects environmental data related toenvironmental management at all overseas affiliates andconsolidated Group companies (subsidiaries).
Each Group company appoints both environmental
general manager and environmental manager to oversee
the decision making and expansion of environmental
activities at their organization. As the smallest unit ofenvironmental activities at each company, theenvironmental management centers appoint site
environmental manager to take charge of particularenvironmental activities.
The Group companies encompassed by environmental
management engage in a variety of different businesses.
These entities include companies with production plants,
companies overseeing engineering, and on-site
construction work as well as companies focused on only
administration. Each environmental management center
verifies the flow of energy, water and other resources
and builds systems to efficiently collect environmental
data.
The fiscal 2020 data shows figures current as of June 15,
2021.

072

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

073

Environmental Management

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceISO 14001 (Environmental Management System)
The IHI Group has put in place Environmental
Management Systems (EMS) at each primary production
plant and other environmental management centers tomanage environmental efforts with a PDCA cycle. Eachof these environmental management centers is acquiring
the ISO 14001 certification to ensure each established
EMS satisfies international standards for environmental
management.
These environmental management centers acquire theISO 14001 through the most suitable review board basedon its business activities.

Compliance

ISO 14001 Internal and External Audits

Risk Management

The IHI Group always strives to enhance the level ofenvironmental management through regular internal andexternal audits of each environmental management
center. These audits evaluate the fitness andeffectiveness of each EMS in accordance with ISO 14001
standards.
External audits conducted in fiscal 2020 did not finddeficiencies at any of the ISO 14001-certified
environmental management centers and affirmed each
EMS complied with the all of the ISO 14001
requirements.

Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Management▶Environmental
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

ISO 14001 Certification Status
Targets

Item

2020

IHI and all affiliatedcompanies

Coverage rate (%)

79.7*1

Number of sites

44

IHI and affiliatedcompanies in Japan

Coverage rate (%)

61.0*2

Number of sites

36

Affiliated companies
overseas

Coverage rate (%)

57.1*2

Number of sites

8*1 Based on amount of energy consumption*2 Based on number of sites

The IHI Group has also designated every June asenvironment month. We not only share information aboutfamiliar energy-saving activities through an internal
newsletter to heighten employee environmental
awareness but also conduct education founded in EMS
at each environmental management center.
Environmental Education and Training Participants(Unit: People, Scope: IHI and affiliated companies in Japan)
Eligible
Participants

Employees

Education/Awareness Building
Environmental Education
The IHI Group environmental education includes Groupwide education programs and training for everyone incharge of environmental management at eachenvironmental management center. The Head Officeleads and monitors these training and education
programs.
All of our employees have taken our e-Learning programon urgent sustainability issues. The Basics of a
Manufacturing Company (Environment) stratified training
program for employees up to their third year provides
e-Learning that reaffirms the IHI Group approach to global
environmental issues.
The on-site education program taught by guest experts
provides training on waste management and energy
efficiency. This training enhances the expert knowledgeof qualified persons and person in charge of management
aiming to put efficient environmental activities into
practice through uncompromising legal compliance.
In addition to perspectives on new works-style reforms
offered in fiscal 2020, we held waste training in
December 2020 and energy efficiency training in January
and February 2021.

Environmental
Officers

Curriculum

2019

2020

e-Learning

18,447

Not
conducted*1

Environmental
Quiz

5,820

Not
conducted*1

Group Energy
Efficiency
Training*2

36

58Group Waste
Training

Not
held

62

*1 Postponed in 2020 due to COVID-19 pandemic*2 Total number of participates for the Group energy efficiency
training held twice (some returning students)

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Environmental Management

Editorial Policy

Targets

Basic Information

The IHI Group drafts environmental action plans every
three years and strives to engage in comprehensive
environmental initiatives.
The IHI Group Environmental Action Plan 2019 creates
three major pillars for environmental initiatives from fiscal
2019 to 2021: reduce the environmental impact of
products and services, reduce the environmental impactof plants, offices, and other business establishments, andcultivate human resources to promote environmental
management.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate Governance

Progress of IHI Group Environmental Action Plan 2019

Compliance
Risk Management

Action Plans

Targets

Reduction of theEnvironmental Impact of
Products and Services

Reduce theenvironmental impact
in plants, offices, etc.

Materialize an Affluent Society

Customer Relationships

Cultivate human resources
to promote environmental
management

Human Resource Management
Diversity and Inclusion

Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Management▶Environmental
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

No major violation of environmental
laws/regulations and environmental
accidents

Achieved no major violation of environmental laws/
regulations and environmental accidents

Reduce CO2 emissions intensity by atleast 3% by 2021 compared to 2018

Reduced per unit CO2 emissions by 11.4% compared
to 22.8 t-CO2 emissions per 100 million yen in 2018 to20.2 t-CO2 emissions per 100 million yen in 2020.

Reduce energy consumption intensity by Reduced energy intensity by 48.1% year-on-year from 39.3TJ
at least 3% by 2021 compared to 2018per 10 billion yen in 2018 to 20.4TJ per 10 billion yen in 2020.
Reduced waste generation by 27.9% compared to
29,010 tons in 2018 to 20,912 tons in 2020.

Water withdrawal increased by 32.6% compared to
Use less water withdrawal* than the4,182 thousand m3 in 2018 to 4,008 thousand m3 inamount used in 2018 in 2019 and 2021
2020.

Human Rights

Labor Practice (Occupational Health and Safety)

Reduce the CO2 emissions of products Executed initiatives to reduce the CO2 emissions ofand services
products and services

Generate less waste than the amount
generated in 2018 in 2019 and 2021

Information Security

Diversity and Inclusion (Human Resource Development)

2020 Progress and Results

Costs to Reduce the IHI Environmental Impact(Unit: Millions of yen; Scope: IHI Corporation)
Investments
Expenditures

Provided waste management and energy efficiency
training to Group members in charge of these duties* Changed from amount of water consumption to amount of water withdrawal since 2019.

Results

Item

Develop professionals who can carryout environment management

2017

2018

2019

2020

713

696

652

334

79

143

78

23

Environment-related Capital Investments

(Unit: Millions of yen, Scope: Non-consolidated IHI plants and offices)

Category

Amountinvested*1

Cost
effect*2

Main items

Energy-saving/climatechange measures60

6Adoption of independent airconditioning systems at plants, etc.

Environmental risk
measures271–

Renewal of aged
equipment, etc.

PCB measures

4–

Renewal and update ofequipment containing PCBs

Total*4334

6Environmental impact
mitigation*3

Risk mitigation*3

Energy consumption
and CO2 emission
reductions

No major violationof environmental
laws/regulations orenvironmental
accident*1 Environmental-related capital and construction investments for non-consolidated IHI plants and offices made in 2020
*2 Reductions in energy purchasing costs estimated over a year
*3 IHI Corporation will consider additional approaches and examine the effectiveness in the future*4 The total value for each item is rounded off and may not match the figures in the breakdown

074

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Reduction of the Environmental Impact of Products and Services
Editorial Policy

Approach

Initiatives

Basic Information

The IHI Group certifies products and services asenvironmentally-friendly products and services if
demonstrating outstanding contributions to the protectionof the global environment for society and a reduction in
our environmental impact. Environmentally-friendly
designs will help us contribute to achieving carbon
neutrality by 2050 while enhancing corporate value
throughout the entire IHI Group.
The IHI Group certifies products satisfying the criteria
below as environmentally-friendly products.
• The product incorporates environmental consideration
at every stage throughout the life cycle from research,development, and design to procurement, manufacture,use, service and disposal• The product adheres to the ISO 14021 standard(Environmental labels and declarations—Self-declaredenvironmental claims [Type II environmental labelling])

Environmentally-Friendly Products
Certification Scheme

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

The IHI Group uses an environmentally-friendly products
certification scheme to promote reductions in theenvironmental impact of its products and services.
This system certifies products and services as having
outstanding environmental performance. Such products
and services help protect the environment and reduce
our environmental impact.
Environmentally-friendly products and services also
contribute to reductions of the environmental impact onsociety at large, which in turn helps protect theenvironment.
• Certification Process
The Group-wide Environmental Committee evaluates theenvironmental performance of products and services
based on IHI guidelines. We only certify products andservices with outstanding environmental performance asenvironmentally-friendly. This review process assesses
whether products and services incorporate environmental
performance measures throughout every stage of the life
cycle.

Certification Process of Environmentally-Friendly Products
Propose certification planfor products and services

Evaluate environmental impact
of products and services

Energy efficiency

Reduced
GHG emissions

Reduce, absorb, capture, store,
and break down greenhouse gas
emissions, generate renewableenergy, and reduce fluorocarbons

Reduce and recycle natural
resources necessary during
manufacture, use andResource saving maintenance
Reduce waste, air, water, soil,
noise, vibration, groundsubsidence, and odor pollution as
Reducedwell as monitor and measureenvironmental
environmental protection datarisks

Reduce Environmental Impact

Evaluate biomass resources andadapt installations to each location

Environmental Management
Reduction
Impactof Products
Reductionof
ofthe
theEnvironmental
Environmental
Impactof Products▶
and Services
andServices

Enhance energy efficiency,
recover and use exhaust energy,
and level the energy load

Biodiversity
protection

Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Assessment and certification(IHI Environment Committee)

075

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Reduction of the Environmental Impact of Products and Services

Editorial Policy

Results

Basic Information

Environmentally-Friendly Products

Sustainability Management

Products and services certified as environmentallyfriendly products are listed in the table to the right.
The website below also introduces both certified andnon-certified IHI products and services.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

web

IHI-WORLD

Certified Products
Evaluation items
Energyefficiency

Products and services

ReducedGHG
emissions

Resource
savingReduced
Biodiversity
environmental
protection
risks

●

Intake facility (Selective water withdrawal facility)
LRT (Light Rail Transit)

●

●

●

●

New Transit System

●

●

●

●

Active Noise Control System●

Silencer/Enclosure●

Noise/Vibration Consultation

●
●

●

●

●

●

TF-Detector

●

●

●

MF-Detector

●

●

●

Diversity and Inclusion

Energy-saving Parking System NPC24H Tachikawa
Midori-cho No.2 Parking Lot●

Diversity and Inclusion (Human Resource Development)

IHI IC Reactor

●

●

●

Labor Practice (Occupational Health and Safety)

ORC Power Generator HEAT INNOVATOR

●

●

●

Supply Chain Management

LNG Smart Satellite●●

Corporate CitizenshipIndustrial photovoltaic power system●

Technology for cleaning, chipping and cutting surfaces
without using water

●

●

●

●

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management

Reduce Environmental Impact
Environmental Management

Diesel Engines●

Life Cycle Administrator (LC-A)®

●

Cycle Management Systems●

Climate Change

Turbochargers for Vehicles●

Circular Economy

ORC Power Generator Heat Recovery HR Series

Environmental Protection

IWV-34C Vacuum Degreaser●

Toyosu Foresia Environmentally-Friendly Building●

Reduction
Impactof Products
Reductionof
ofthe
theEnvironmental
Environmental
Impactof Products▶
and Services
andServices

Performance Objectives
IHI Sustainability Data Book 2021

●

●

●

●

●

●

●

●
●

●

●

076

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Climate Change
Editorial Policy

Approach

Structure

Basic Information

Climate change has an enormous social and economic
impact and is a vital social issue for companies to addressin order to realize sustainability.
The IHI Group sees climate change as one importantmanagement issue and is doing everything possible tocombat it.
Our products and services strive to reduce CO2 emissions
throughout the entire life cycle.
We monitor the environmental impact from businessactivities at our plants, offices and other businessestablishments to help us reduce CO2 emissions.

The IHI Group engages in environmental initiatives that
include measures to combat climate change centered
upon the Environment Committee.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Change▶Climate
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Participation in Third-party Initiatives
In May 2019, the IHI Group became a signatory to the
Task Force on Climate-related Financial Disclosures(TCFD) by resolution of the Board of Directors. This
framework plays a role as a tool to formulate strategies
able to strengthen risk management and cultivate
business opportunities.

P.71

Environmental Management

The IHI Group has put in place a TCFD Task Force directly
under the President to fully utilize the framework as a
strategic planning tool for proper disclosure of
information as a TCFD signatory. The TCFD Task Force ismade up of members from the four business areas,
Technology & Intelligence Integration, and the Solution &Business Development Headquarters with the Corporate
Planning Division acting as the Secretariat.
The IHI Group also conducts uncompromising risk
management to fully and rapidly respond to any risks
found by carefully identifying changes around business
operations. We are integrating TCFD Task Force activities
and the risk management systems to create a PDCA
cycle for climate change risks.
P.35

Risk Management

TCFD Disclosure
The disclosure items on the page below arerecommended by TCFD.

• Governance

P.71-74 Environmental Management
P.77 Climate Change• Strategy

P.79-81 Climate Change• Risk Management

P.35-37 Risk Management
P.77 Climate Change• Metrics and Targets
P.78 Climate Change

077

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Climate Change

Editorial Policy

Targets and Results

Basic Information

The IHI Group aims to reduce CO2 emissions from plants,
offices and other business establishments in line with
the Japanese government's policy target of a 46%
reduction in 2030 (compared to fiscal 2013 levels) andcarbon neutrality by 2050.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

CO2 Emission and Energy Consumption Targets and Results
Action Plans

Targets

KPI

2018 Results(Base Year)

2019
Results

2020
Results

Reduce theenvironmental
impact inplants, offices,
etc.

Reduce CO2 emissions intensity atleast 3% by 2021 compared to 2018

CO2 emissions intensity(t-CO2/100 million yen)

22.2

18.3

20.2

Reduce energy intensity at least
3% by 2021 compared to 2018

Energy consumption
intensity(TJ/10 billion yen)

39.3

17.8

20.5

CO2 Emission and Energy Consumption

Corporate Management(Scope: IHI and consolidated subsidiaries)

Item

2017

2018

2019

2020

CO2 emissions (t-CO2)

330,162

329,602254,227

225,066

Risk Management

Scope 1 (t-CO2)–

80,03264,72458,517

Information Security

Scope 2 (market-based) (t-CO2)–

249,570

189,503

166,549

Corporate Governance

CO2

Compliance

Materialize an Affluent Society

CO2 emissions intensity*1 (t-CO2/100 million yen)

20.8

22.2

18.3

20.2

Energy consumption*2 (TJ)

6,087

5,828

2,468

2,283

Customer Relationships

Fuel consumption (TJ)

–

–

1,044

974

Human Resource Management

Electricity consumption (TJ)

–

–

1,398

1,276

Heat consumption (TJ)

–

–

–

Steam consumption (TJ)

–

–

0

0

Renewable energy used (TJ)

–

–

26

26

38.3

39.3

17.8

20.5

Human Rights

EnergyDiversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Change▶Climate
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Initiatives
Reducing CO2 Emissions from Business Activities
The IHI Group makes every effort to reduce CO2 emissions
from plants, offices and other business establishments byboth actively pursuing energy-efficient business practices
and promoting the use of low-carbon energy.
Our energy-efficient initiatives not only enhance
operations but also make the necessary capital
investments. We have put in place energy management
standards to drive these operational improvements. We
have put in place energy management standards to drive

Energy consumption intensity*1 (TJ/10 billion yen)

7

*1 Net sales as the denominator.
*2 Changed the method of calculating energy consumption since 2019.

these operational improvements. These standards aim toprovide ideal operation conditions and criteria to review
operational management. These standards also becomea knowledge base to conduct training on energy
efficiency through guest experts in an effort to heighten
the management quality of the person in charge.
Our capital investments systematically renew aged
equipment with energy-efficient equipment. Anotheraspect important to reducing CO2 emissions is shipping

and transport. The IHI Group strives to promote modal
shifts through greater load efficiency and active use ofmarine vessels.
Our data also divides the CO2 emissions resulting fromfuel and electricity by energy consumption for fuel andelectricity to create an indicator illustrating thedecarbonization effect through the adoption of renewableenergy and other such measures.

078

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Climate Change

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate GovernanceCompliance

Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships

Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management

Step 1 Set independent scenarios.
The IHI Corporation referred to external
scenarios* to set independent Group scenarios
in anticipation of the world in 2050.
(1) High-transition risk scenario(2) High-physical risk scenario
Step 2 Identify risks and opportunities.
The IHI Corporation identifies risk andopportunities for the two scenarios set in Step 1
Step 3 Evaluate the business impact.
The IHI Corporation assigns point values forthe potential of occurrence and scale of impact
for each risk and opportunity identified in Step
2. The intersection between both defines theimpact and estimate the influence the risks
and opportunities have on our businesses.
Step 4 Formulate countermeasures.

Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Change▶Climate
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

The IHI Corporation formulates measures to respondto these risks and opportunities to foster resilientbusinesses.
*External reference scenarios:
A carbon-neutral world
IPCC RCP 2.6, IEA 2DS Scenario, etc.
A world greatly impacted by climate change
IPCC RCP 8.5, etc.

IHI Group scenarios:(1) High-transition risk scenario
This scenario presents (1) a carbon-neutral world
where society at large shifts to mitigate climatechange to stop all greenhouse gas emissions.
(2) High-physical risk scenario
This scenario presents (2) a world greatly impacted byclimate change that needs to adapt to the physicalimpact to directly confront drastic devastation by
natural disasters.

Small

Human Resource Management

Scenario Analysis Process

Migration Risk

Risk Management• TCFD Initiatives
The IHI Group set simple scenario analyses of fourbusiness domains with a significantly large impact on
climate change: the energy business, vehicle
turbocharger business, bridge and water gate business,and the civil aero engine business.
The first step set (1) a carbon-neutral world as the highest
transition risk and (2) a world greatly impacted by climatechange as the highest physical risk in our own
independent scenarios drafted with reference to external
scenarios drafted by the International Energy Agency(IEA) and Intergovernmental Panel on Climate Change(IPCC). The second step identified risks and opportunities
for all four business domains. The third step assessed
the impact each business has. The fourth and last stepdrafted countermeasures according to our findings.
In the future, the IHI Group will enhance its ability toleverage scenario analyses in business strategy throughefforts such as assessing the financial impact of climatechange.
The IHI Group will proactively incorporate the concepts
pursued by TCFD signatories in management policies andbusiness strategies. These policies and strategies willcontribute to the development of a sustainable corporategroup and society at large.

Large

Corporate Management

Risk and Opportunity due to Climate Change(1) A carbon-neutralworld

The harshest world
A combinationof (1) and (2)A world withminimal risk

(2) A world greatly
impacted byclimate change

Small

Physical Risk

LargeCountermeasures set to address the two extreme worlds
anticipated by these IHI scenarios enhance the resilienceof IHI Group businesses against future risks.
The IHI Group can also reduce risks against the harshest
world facing both these scenarios at the same time byintegrating the countermeasures for each.

079

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Climate Change

Editorial Policy
Basic Information

The IHI Corporation divides the risks and opportunities identified for each of the four business domains and the countermeasures into two categories: 1. risks, opportunities, andcountermeasures specific to each business and 2. risks, opportunities, and countermeasures shared across all businesses.
Risks, opportunities, and countermeasures in 1. are shown in the table below while those in 2. are shown in the table on the next page.

Sustainability Management
IHI Group Material Issues

1. Main risks, opportunities, and countermeasures specific to each business (four main business domains)
Energy business

Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Bridge and water gate business

Risks

•

Opportunities•

Increasing demand for fuel conversion,
carbon capture and storage (CCUS) andother decarbonization technologies• Increasing demand for regulated power
supplies, storage energy, and Power-to-X
to provide a stable energy supply as
renewable energy becomes the standard•

Rapidly deploy carbon-neutral
technologies to society• Promote technological development tostabilize the energy supply• Expand the life cycle business throughremote monitoring and other Internet ofThings (IoT) technologies•

Compliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships

Main
Countermeasures

Human Resource Management
Diversity and Inclusion

Declining demand for large fossil fuelpower generation equipment•

Declining demand for combustion engine
vehicles unable to address carbon-neutral
requirements and a falling demand forexisting turbochargers•

Declining demand for aircrafts due tocarbon-neutral requirements andstandardization of alternative high-speedmeans of transportation

Increasing demand for roads (bridges andtunnels) to provide a more efficienttransportation network• Increasing demand for railway
construction due to expansion of railway
systems overseas•

Potential to secure market
competitiveness and leverage anincrease in demand for turbochargers by
being first to market with newturbocharger products (electric products
in addition to existing models) for carbonneutral electric vehicles (PHEV, HEV, FCV,
etc.)

•

Increasing demand for the developmentof aircraft engines supporting carbonneutral requirements and opportunities
raise due to electrification of engines andutilization of advanced material
technologies.

Reduce construction schedules and laborcosts by labor-saving, remoteization, andimproving construction methods throughpromoting digital transformation (DX)•

Rapid development andcommercialization of turbochargers forelectric vehicles that comply withcarbon-neutral requirement trends•

Early commercialization of electricengines and advanced technologies suchas advanced composites.

••

Increasing procurement costs (carbon
tax, etc.) for materials with high CO2emissions (concrete, steel, etc.)

Diversity and Inclusion (Human Resource Development)(2) R isks, opportunities and main countermeasures in a world greatly impacted by climate change

Labor Practice (Occupational Health and Safety)

Risks

•

Opportunities•

Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Change▶Climate
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Civil aero engine business(1) Risks, opportunities and main countermeasures in a carbon-neutral world

Corporate Management
Corporate Governance

Vehicle turbocharger business

Main
Countermeasures

Extreme delays due to on-site
construction stoppages or disasters
caused by frequent severe weather•

Extreme delays due to on-site
construction stoppages or disasters
caused by frequent severe weather•

Suspension of production due todisrupted supply chains caused byfrequent severe weather•

Suspension of production due todisrupted supply chains caused byfrequent severe weather

Contributing in early recovery ofequipment damaged in severe weather• Increasing demand for digitaltechnologies to promote labor saving andremote operation•

Increasing demand to build robust
national infrastructure• Contributing in early recovery of
infrastructure damaged in severe
weather•

No opportunities unique to our business•

No opportunities unique to our business

Expand the life cycle business throughremote monitoring and other Internet ofThings (IoT) technologies•

Expand business beyond life cycle
business with wider perspective toinclude disaster prevention business• Create technologies and systems that
contribute to maintenance, disasterprevention, disaster mitigation, and quick
recovery of infrastructure•

Strengthen supply chains•

Strengthen supply chains•080

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Climate Change

Editorial Policy

2. Main risks and countermeasures shared across all businesses

Basic Information(1) Transition Risks and Countermeasures for a Carbon-neutral World

Sustainability Management

Category

Main Topics

Main Countermeasures and Transitioning to Opportunities

Policies, Laws andRegulations

Introduction of carbon taxes, stronger industrial waste regulations, raisingcosts due to the adoption of renewable energy and energy-efficientequipment, etc.

Reduce costs in business activities through efficient production anddistribution as well as the proper management of energy consumption

Technologies

Rising costs due to research to realize carbon-neutral products andservices, failed technological development, etc.

Concentrate investments in technological development while staying
acutely aware of policies, technologies, markets, and other social trends

Markets

Declining demand for products and services with high CO2 emissions, etc.

Actively draft and promote business plans that always anticipate multiple
business scenarios to adapt to dramatic changes in market structures

Reputation

Lost opportunities due to poor evaluations of our response to climatechange, declining social credibility, etc.

Disseminate easy-to-understand information about products and services
that can help both mitigate and adapt to climate change

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights(2) Physical Risks and Countermeasures in a World Greatly Impacted by Climate Change
Category

Main Topics

Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Change▶Climate
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Incorporate the response to climate change into the business continuity
plans of plants and offices to ensure the safety of officers and employees
and strengthen the supply chain• Draft, execute and manage advanced measures in anticipation offoreseeable flood damage•

Customer Relationships
Human Resource Management

Main Countermeasures

Acute/Chronic

Ceased business activities due to damaged offices and plants caused bytyphoons, floods, or other natural disasters, etc.

081

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Circular Economy
Editorial Policy

Approach

Basic Information

The IHI Group properly manages waste and water
resources and strives to enhance resource efficiency andreduce the environmental impact to realize a sustainable
society.
We advocate the reduction, reuse, and recycling (3Rs) ofwaste and properly manage and dispose of any waste
produced by each environmental management center.
Our water resource initiatives carefully manage water
use and work to prevent any pollutants from reachingwater resources through a deliberate water supply fromstable water resources and proper equipment
maintenance.
The IHI Group has laid out chemical substance initiatives
in the Basic Policy on Chemicals Information
Management. We have identified prohibited andcontrolled substances regulated by both legal andcustomer requirements in each region and country where
our products and services are available. Our supply chain
also pinpoints and properly manages the chemical
substances contained in products for the purpose ofminimizing the impact IHI Group products and services
have on human health and the environment.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Economy▶Circular
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

IHI Group’s Basic Policy on Chemicals Information
Management
Basic Activities
1. The IHI Group independently manages
chemical substance data by not only
complying with the laws, regulations andstandards on the management of chemical
substances in Japan but by also clearlygrasping trends of global chemicals
management. Minimizing the health andenvironmental impact of IHI Group products
and services enhances the competitiveness of
our products.
Scope
2. All IHI Group Business Activities
Education
3. The IHI Group provides the necessary
information and training on laws andregulations to heighten legal and regulatory
awareness in all officers as well as IHI andpartner company employees.

Structure
The IHI Group deliberates and decides on the approachand important matters of circular resources through theEnvironment Committee, a Group-wide body chaired by
the officer in charge of administration.
P.72

Environmental Management082Basic Information

Sustainability
Management

Corporate
Management

Circular Economy

Editorial Policy

Targets and Results

Basic Information

Waste Emissions and Water Withdrawal Targets and Results

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceAction Plans
Reduce theenvironmental
impact inplants, offices,
etc.

KPI

2018 Results(Base Year)2019 Results

2020 Results

Waste generated(ton)

29,01027,564

20,912

Water
withdrawal(1000 m3)

4,182

4,251

4,008

Targets
Generate less waste than the amount
generated in 2018 in 2019 and 2021
Use less water withdrawal* than the amountused in 2018 in 2019 and 2021

* Changed from amount of water consumption to amount of water withdrawal since 2019.

Compliance
Risk Management

Waste Emissions and Water Withdrawal

Information Security

Materialize an Affluent Society(Scope: IHI and consolidated subsidiaries)

Item
Waste

Waste generated (ton)

2017

2018

2019

2020

28,69129,01027,564

20,912

Human Rights

Toxic waste generated (ton)

–

–

164

182

Customer Relationships

Amount recycled*2 (ton)––61,79915,067

Water withdrawal (1,000m )

3,776

4,182

4,251

4,008

Diversity and Inclusion

Public water (1,000m3)

–

–

750

651

Diversity and Inclusion (Human Resource Development)

Industrial water (1,000m3)

–

–

868

799

Labor Practice (Occupational Health and Safety)

Groundwater (1,000m3)

–

–

1,948

1,731

Supply Chain Management

Rainwater, rivers, lakes, etc. (1,000m3)

–

–

685

827

–

–

–

Human Resource Management

Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Economy▶Circular
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

*1

Water

3

Waste water (1,000m )3*1 Total of specified hazardous wastes and infectious wastes within specially-controlled industrial wastes*2 Waste turned in to valuable resources

3,373

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

083

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Circular Economy

Editorial Policy

Initiatives

Basic Information

Waste

Sustainability Management

The IHI Group strives to reduce waste by improving
production yield at plants as well as sorting andrecovering resources from waste.
To ensure all waste is disposed of properly, our waste
management initiatives also review collection,transportation, and waste disposal contracts, verify final
disposal through digital manifests, and confirm
circumstances on-site at intermediate and final waste
disposal sites.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Economy▶Circular
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

• Cooperation with Third-parties to Reduce Waste
Emissions
The IHI Group contracted expert consultants to examine
potential reductions in the waste generated by our plants
and offices. This started our analysis of the types andcontent of waste. As a result, we discovered usefulwaste which can help turn the waste generated into
valuable resources, and confirmed whether innovations
to waste management could further reduce the remaining
waste. In the future, we will advance initiatives toward
reduction of specific waste.

Water Resources
The IHI Group primarily uses public and industrial wateras water resources. In regions with abundantunderground and river water resources, we use theseresources in combination with public water careful to
reduce our water withdrawal. Therefore, each plant andoffice considers the water quality and quantity necessary
for its use and chooses the best resource to withdrawal
water.
In particular, we purify and distribute underground water
through a relatively easy manner in regions with potable
underground water. Cooling water for heat treatment
furnaces and other equipment uses river or sea waterinstead of potable water. We also use heat exchangers to
avoid pollution risks during water discharge. In addition,
sprinklers on our grounds reuse water processed throughtertiary treatment as an alternative to public water as
much as possible.
• Water Risk Survey (On-Site Visits)
In fiscal 2020, the IHI Corporation audited the water
usage management progress and water risks at 3
different sites.
Water risks in this report refer to risks of waste waterfrom our plants, offices and other businessestablishments contaminating public waters. These
audits verified proper water management by visiting eachsite, interviewing the people in charge and conducting
physical on-site inspections. We also share the findingsof these audits to raise awareness about water risks. In
the future, the IHI Group plans to successively audit
whether plants which did not undergo on-site audits
present any risk to public waters.

• Specific Efforts to reduce Water Use
The IHI Group heightens awareness about reducing
water use by tracking monthly (or bimonthly) water
withdrawal by each environmental management centerto graph annually for year-by-year comparisons. By
monitoring the annual changes in water withdrawal forthe same period each year, we expect the data will help
us discover any leakage quickly.

Chemical Substances
Chemical substances used at our plants come withleakage and other risks which may result in polluting thesoil, water, or air. We must not only safely manage thesechemical substances during use but also in every processfrom warehousing to disposal. The IHI Group prevents
leakage during purchase and transport and regularly
verifies and inspects the retaining storage walls,
deterioration on interior walls and corrosion of transfer
pipes.
We regularly repair equipment with any deterioration or
aging found during these inspections.
• Chemical Substances Contained in Products
The IHI Group strictly complies with every law andregulation controlling the chemical substances containedin products. We aggregate data about the chemical
substances contained in products throughout the supply
chain and confirm whether use of any of these chemicals
is prohibited. The IHI Group is also furthering a system toprovide this same data to customers. Regulations tocontrol the chemical substances contained in products
are becoming more stringent than ever not only in the EU
but also North America and Asia. Our Group pays
extremely close attention and responds accordingly toregulations that apply to each product as one business
risk.

084

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

Environmental Protection
Editorial Policy

Approach

Basic Information

The IHI Group has set compliance to environmental laws
and regulations and the prevention of environmental
accidents as the highest priorities of environmental
activities in business. We have also set the reduction of
the environmental impact from our business activities asa priority subject in our environmental targets designatedfor each Group site. We emphasize cooperation with thelocal communities in each region where IHI does
business to advance environmental conservation
activities according to the unique needs of each. These
efforts include agreements to prevent pollution with local
government agencies and residents.
Our plants and offices in particular are often located nearwater source, which means initiatives to prevent any
pollutants from reaching these water sources areimperative. Therefore, we have defined independent
standards that go beyond the Water Pollution Control
Law and other local governmental waste water standards
based on the Environmental Management System (EMS)
adopted at each site. We ensure that the standards are
met through regular water sampling and analysis.
In addition, the person in charge of drainage andcoastlines at each site conducts regular patrols to visuallyinspect and make sure there is no oil or other floatingchemicals or irregularities in water quality. In the event of
any leakage of substances into waters from IHI plants oroffices, our initial response follows EMS procedures toprevent any spread of the contaminants and damage,trigger an emergency response, such as correspondencewith relevant departments in an effort to investigate theroot cause and prevent recurrence.
In addition to the above, measures and proper disposal toprevent soil contamination from oil, chemical and otherleakage used at offices, plants, and other businessestablishments are also vital.

Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection
Protection▶Environmental

Performance Objectives
IHI Sustainability Data Book 2021

Management level of these activities is improved throughregular internal auditing, environmental patrols, andexternal reviews according to the EMS adopted by eachsite.

Structure
The IHI Group deliberates and decides on the approachand important matters of environmental conservation
through the Environment Committee, a Group-wide bodychaired by the officer in charge of administration. Eachoffice, plant and business establishment has set up anenvironment committee to draft policies tailored to theneeds of each region based on Group-wide policy.
P.72

Environmental Management

Targets and Results
No Major Violation of Laws/Regulations orEnvironmental Accidents
Action Plans

Targets

2019
Results

2020
Results

Reduce theenvironmental
impact in plants,
offices, etc.

No major violationof environmental
laws/regulations
and environmental
accidents

00Compliance with Environmental Laws andRegulations
The IHI Group properly investigates any environmental
incident that occurs on a Group site and evaluates theseverity and underlying factors to reduce environmental
accidents and legal violations as well as to prevent
recurrence.
In fiscal 2020, our Group had no major environmental
incidents or legal violations.
Number of Environmental Accidents and Violations of Law
(Unit: Incidents, IHI and consolidated subsidiaries)
Item

2017

2018

2019

2020

Significant
environmental accidents

0

0

0

0

Major violation ofenvironmental laws/
regulations

0

0

0

0

No. of cases IHI paidfines, penalties, etc.

0

0

0

0

085

Basic Information

Sustainability
Management

Environmental Protection

Editorial Policy

Initiatives

Basic Information

Water Pollution Prevention

Sustainability Management

The IHI Group monitors the quality of water discharged
from offices, plants and other business establishments.
By defining and managing water discharge according to
independent standards stricter than waste water
standards, we protect the water quality of public watersfrom oceans to rivers where this water is discharged. We
must not only maintain and calibrate wastewater
treatment facilities but also regularly renew aged
equipment, devices, and meters.
The IHI Group also prioritizes measures to prevent leaks
from unseen underground pipes as a key issue. Our otherinitiatives include measurements of the amount of waterused in specific areas, creation of underground piping
blueprints, and periodic replacement of underground piping.
We also define rules on chemical substance management
based on the EMS at each environmental management
center to prevent disasters and environmental pollution
by chemical substances used at plants and otherbusiness establishments. Our Group categorizes thehazardous, toxic, volatile, and combustible chemical
substances it handles while defining equipment andhandling standards to manage these substances in a waythat prevents leakage into the environment.
In fiscal 2020, there were no incidents of chemical
substance leakages to water sources.

IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection
Protection▶Environmental

Performance Objectives
IHI Sustainability Data Book 2021

Soil Contamination Prevention
The IHI Group identified specific areas at offices, plants
and other business establishments that use hazardous
substances and other chemicals. We strive to prevent
leaks of chemical substances by establishing operational
procedures and periodic patrols. We manage 68 old
factory sites and production bases via a database
compiling survey results for the usage history of specificharmful substances* and oils. This survey data used as astarting point for initial reviews when restructuring plant

operations.
* Harmful chemical substances refers to lead, hexavalentchromium, mercury and other substances listed in Article 2 of theJapan Soil Contamination Countermeasures Act

Toxic Waste
The IHI Group is furthering its response to properly
dispose of hazardous polychlorinated biphenyls (PCB)
waste by organizing a specialized team led by the Head
Office.
As of March 31, 2021, we have successfully disposed of
99.7% of electrical equipment containing a highconcentration of PCBs and 98.1% with a lowconcentration of PCBs. However, the IHI Group currently
holds a large number of fluorescent lamps waiting for
disposal. To date, we have successfully disposed of
44.5%.

Chemical Resources
The IHI Group identifies and manages emissions ofchemicals regulated by the PRTR Law into the air, public
waters, soil, sewers and waste.
We are also suppressing emissions of Volatile Organic
Compounds (VOC) in to the atmosphere in accordancewith the Voluntary Action Plan for Establishing a Sound
Material-Cycle Society by the Japan Society of Industrial
Machinery Manufacturers.

Biodiversity
We also have set an environment month for officer andemployee enlightenment to raise awareness aboutbiodiversity conservation.
P.69

Environmental Protection

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact
Environmental
ImpactPerformance
Objectives

086

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Performance
Objectives
Objectives

Editorial Policy
Basic Information
Sustainability Management
IHI Group Material Issues
Sustainability Management
Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management
Corporate GovernanceCompliance
Risk Management
Information Security

Performance Objectives

Materialize an Affluent Society
Human Rights
Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)
Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Non-financial Summary

088

087

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Performance
Objectives
Objectives

088

Non-financial Summary
Editorial Policy
Basic Information
Sustainability Management

Material issues

Theme

Sustainability Management

Corporate governance

Innovation Management

Corporate
governanceCorporate Management

Average attendance
rate of outside
directors
Average attendance
rate of outside Audit &Supervisory
Board Members

Corporate Governance

Number of law
violations / Number of
guidance cases

Compliance
Risk Management
Information Security

Materialize an Affluent Society

Expenditure toorganizations

Human Rights
Customer Relationships
Human Resource Management

Scope of data

Results
2017

2018

2019

2020

Governance – Principled Corporate Management –IHI Group Material Issues

Sustainable Development Goals (SDGs) Initiatives

Index

Compliance

Legal compliance

Board of Directors meetings (%)

IHI

95.3

98.6

98.1

96.8

Board of Directors meetings (%)

IHI

96.0

92.6

100.0

100.0

Audit & Supervisory Board meetings (%)

IHI

100.0

100.0

100.0

100.0

Competition laws

IHI and consolidated subsidiaries

0

0

0

0

Anticorruption laws

IHI and consolidated subsidiaries

0

0

0

0

Laws/regulations relating to PR activities

IHI and consolidated subsidiaries

0

0

0

0

Political organizations (Millions of yen)

IHI

10

10

10

10

Economic organizations (Millions of yen)

IHI

42

48

56

57

Other major industry organizations(Millions of yen)

IHI

55

101

120

122

*1

209

238

239

202

–

–

Number of Compliance Hotline reports

Diversity and Inclusion

Officer training

IHI and subsidiary companies in Japan

50

47

Diversity and Inclusion (Human Resource Development)Line Manager Training

IHI and subsidiary companies in Japan

83

75

Quality & Compliance Training (Japan)

IHI and subsidiary companies in Japan

––

27,86624,085

Quality & Compliance Training (Overseas)

Subsidiary companies overseas

–

–

1,774

3,261

e-Learning (Japan)

IHI and subsidiary companies in Japan

18,02018,234

18,164

20,169e-Learning (Overseas)

Subsidiary companies overseas

1,261

1,126

1,214

–

Patents in Japan

IHI

3,915

4,120

4,150

3,868

Patents overseas

IHI

2,598

3,047

3,502

3,808

3.0

2.9

3.2

3.4

Labor Practice (Occupational Health and Safety)

Number of compliancetraining participants

Supply Chain Management
Corporate Citizenship

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services

Innovation
management

Intellectual
Patents held by region
property protection

Information security

Information
security measures

Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Information security measures level evaluation (out of five) (score)

IHI and consolidated subsidiaries

72–*1 IHI, affiliated companies in Japan, and some affiliated companies overseas (USA and Brazil) in 2017. IHI, affiliated companies in Japan, and some affiliated companies overseas (USA, Brazil, Asia Pacific, China, andKorea) in 2018, 2019 and 2020.

Basic Information

Sustainability
Management

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Performance
Objectives
Objectives

089

Non-financial Summary

Editorial Policy
Basic Information
Sustainability Management

Material issues

Theme

Index

Sustainability Management

Corporate Governance

Human resource
management

Average years ofservice

Risk Management

Turnover rate

Materialize an Affluent Society
Human Rights
Customer Relationships

Employeeawareness surveys

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)

Employment

Supply Chain Management
Corporate Citizenship

Diversity and inclusion

Reduction of the Environmental Impact of Products
and Services
Climate Change

Performance Objectives
IHI Sustainability Data Book 2021

2020

29,28628,964

29,149Number of employees (IHI)

IHI

8,256

8,011

7,741

7,796

Male

IHI

7,245

6,994

6,730

6,766

Female

IHI

1,011

1,017

1,011

1,030

Ratio of female employees (%)

IHI

12.2

12.7

13.1

13.2

IHI

14.8

14.9

15.8

15.1

Male

IHI

15.1

15.1

16.0

15.3

Female

IHI

12.5

13.2

14.5

14.2

All employees

Total turnover rate

Information Security

Environmental Protection

2019

29,706

Corporate Management

Circular Economy

2018

IHI and consolidated subsidiaries

Innovation Management

Environmental Management

2017

Consolidated number of employees
Number of
employees

Sustainable Development Goals (SDGs) Initiatives

Reduce Environmental Impact

Results

Society – Materialize an Affluent Society –IHI Group Material Issues

Compliance

Scope of data

IHI

4.0

4.3

3.5

2.9

Rate of retirement due to personalreasons (%)

IHI

2.0

2.0

2.0

1.1

Turnover rate within 3 years of joining
the company (%)

IHI

5.7

7.4

6.8

4.3

Ratio of answered employee-awareness surveys (%)

IHI and affiliated companies

90.9

91.7

91.4

88.0

Number of new graduate recruitment

IHI, University graduates

245

158

153

194

Male

IHI, University graduates

210

138

123

162

Female

IHI, University graduates

35

20

30

32

Female recruitment rate (%)

IHI, University graduates

14.3

12.7

19.6

16.5

Number of mid-career employment

IHI

87

66

77

55

Recruitment ratio of people with disabilities (%)

IHI

2.03

2.21

2.39

2.35

Re-employment rate of employees at retirement age (%)

IHI

87

84

81

81

Number of employees from abroad

IHI

86

89

81

82

Local managers at overseas sites

China, Singapore, and United States

23

22

23

22

Number of female officers

IHI

3

4

3

3

Ratio of female officers (%)
Gender diversity

IHI

16

24

19

18

IHI

68

74

83

92

Ratio of female managers (%)

IHI

2.6

2.8

3.0

3.4

Ratio of female general managers (%)

IHI

0.8

0.8

0.8

0.8

Ratio of female section managers (%)

IHI

1.8

2.0

2.2

2.5

Number of female managers

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Performance
Objectives
Objectives

090

Non-financial Summary

Editorial Policy
Basic Information

Material issues

Theme

Sustainability Management

Index

Scope of data

Results
2017

2018

2019

2020

Employees with reduced work hours

IHI

159

158

161

139

IHI Group Material Issues

Employees who have taken childcare leave

IHI

677

689

779

768

Sustainability Management

Employees who have taken parental leave

IHI

100

118

131

137

Percentage of employees who return to work after parental leave (%)

IHI

100

100

99.2

100

Employees who have taken nursing care leave

IHI

18

6

7

2

Average annual paid vacation days taken

IHI

17.63

18.36

19.40

18.73

Monthly average overtime (hours)

Work-life balance

Sustainable Development Goals (SDGs) Initiatives
Innovation Management

Corporate Management

IHI

22.90

22.50

21.10

13.00

Participants

IHI and affiliated companies in Japan

2,900

3,300

3,276

1,882

Training hours

IHI and affiliated companies in Japan

101,000

112,000

106,208

34,672

Participants

IHI and affiliated companies in Japan

5,800

6,200

3,343

1,948

Training hours

IHI and affiliated companies in Japan

44,00047,00025,073

16,358Average annual training hours per employee

IHI and affiliated companies in Japan

16.7

16.7

19.8

13.3

Employees certified as master artisans

IHI

42

37

41

39

Employee union membership rate (%)

IHI and 7 labor unions of consolidated
subsidiaries

74

73

73

72

Number of labor complaints received

IHI

0

0

0

0

Participation rate of medical check-ups (%)

IHI and 35 affiliated companies

69

70

71

72

Participation rate of stress checks (%)

IHI and 35 affiliated companies

91

96

94

95

Labor Practice (Occupational Health and Safety)

Absenteeism (Employees who take three or more months ofleave) (%)

IHI and 35 affiliated companies

0.9

0.9

1.0

0.8

Supply Chain Management

Presenteeism (Employees with restricted hours) (%)

IHI and 35 affiliated companies

1.6

1.7

1.6

2.1

Smoking rate (%)

IHI and 35 affiliated companies

28

28

27

27

Lost time injuries frequency rate

IHI and 31 affiliated companies

0.57

0.26

0.40

0.28

Corporate GovernanceCompliance

Diversity and inclusion

Risk Management

Stratified training
Human resource
development

Information Security

Materialize an Affluent Society
Human Rights

Labormanagement
partnership

Customer Relationships
Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)

Corporate Citizenship

Reduce Environmental Impact

Occupational
health and safety

Occupational
health and safety

Environmental Management
Reduction of the Environmental Impact of Products
and Services

Open lectures

Total injuries frequency rate

IHI and 31 affiliated companies

1.64

1.11

1.49

0.87

Rate of occupational diseases

IHI and 35 affiliated companies

–

0.165

0.165

0.15

Occupational accidents

IHI and 31 affiliated companies

87 (1)

55 (0)

71 (0)

38 (0)

IHI and 31 affiliated companies

52 (0)

28 (0)

42 (0)

18 (0)*2

Climate Change

Employees*2

Circular Economy

Temporary employees

IHI and 31 affiliated companies

4 (0)

4 (0)

4 (0)

1 (0)

Environmental Protection

Partners

IHI and 31 affiliated companies

31 (1)

23 (0)

25 (0)

19 (0)

331

635

519

215

Performance Objectives
IHI Sustainability Data Book 2021

*2*2

Corporate citizenshipSocial contribution
activities

Social contribution expenses (Millions of yen)

*2 Figure inside parentheses indicates fatal incidents*3 IHI and affiliated companies in 2017. IHI and consolidated subsidiaries in 2018, 2019 and 2020.

*3

Sustainability
Management

Basic Information

Corporate
Management

Materialize an
Affluent Society

ReduceEnvironmental Impact

Performance
Performance
Objectives
Objectives

091

Non-financial Summary

Editorial Policy
Basic Information

Material issues

Theme

Index

Scope of data

Results
2017

2018

2019

2020

IHI and consolidated subsidiaries

330,162

329,602254,227

225,066

Scope 1 (t-CO2)

IHI and consolidated subsidiaries–

80,03264,72458,517

Scope 2 (market-based) (t-CO2)

IHI and consolidated subsidiaries–

249,570

189,503

166,549

CO2 emissions intensity*4 (t-CO2/100 million yen)

IHI and consolidated subsidiaries

20.8

22.2

18.3

20.2

Energy consumption (TJ)

IHI and consolidated subsidiaries

6,087

5,828

2,468

2,283

IHI and consolidated subsidiaries

–

–

1,044

974

Electricity consumption (TJ)

IHI and consolidated subsidiaries

–

–

1,398

1,276

Heat consumption (TJ)

IHI and consolidated subsidiaries

–

–

–

Risk Management

Steam consumption (TJ)

IHI and consolidated subsidiaries

–

–

0

0

Information Security

Renewable energy used (TJ)

IHI and consolidated subsidiaries

–

–

26

26

Sustainability Management

Environment – Reduce Environmental Impact –IHI Group Material Issues

CO2 emissions (t-CO2)

Sustainability Management

CO2

Sustainable Development Goals (SDGs) Initiatives
Innovation Management*5

Corporate Management
Corporate Governance

Fuel consumption (TJ)
Climate change

Compliance

EnergyEnergy consumption intensity*4 (TJ/10 billion yen)

Materialize an Affluent Society
External evaluation

Human Rights
Customer Relationships

Waste

Human Resource Management
Diversity and Inclusion
Diversity and Inclusion (Human Resource Development)
Labor Practice (Occupational Health and Safety)

IHI and consolidated subsidiaries

38.3

39.3

17.8

20.5

Evaluation of CDP climate change

IHI and consolidated subsidiaries

B(Management)

B(Management)

B(Management)

B(Management)

Waste generated (ton)

IHI and consolidated subsidiaries

28,69129,01027,564

20,912

Toxic waste generated (ton)*6

IHI and consolidated subsidiaries

–

–

164

182

Amount recycled (valuable resources) (ton)

IHI and consolidated subsidiaries––

61,79915,067

Water withdrawal*7 (1,000m3)

IHI and consolidated subsidiaries

3,776

4,182

4,251

4,008

IHI and consolidated subsidiaries

–

–

750

651

Industrial water (1,000m )IHI and consolidated subsidiaries

–

–

868

799

Groundwater (1,000m3)

IHI and consolidated subsidiaries

–

–

1,948

1,731

Circular economy

Public water (1,000m )
3

3

Water

Supply Chain Management
Corporate CitizenshipRainwater, rivers, lakes, etc. (1,000m3)

IHI and consolidated subsidiaries

–

–

685

Waste water (1,000m3)

IHI and consolidated subsidiaries

–

–

–

Compliance withenvironmental laws
and regulations

Significant environmental accidents

IHI and consolidated subsidiaries

0

0

0

0

Major violation of environmental laws/regulations

IHI and consolidated subsidiaries

0

0

0

0

Number of cases IHI paid fines, penalties, etc.

IHI and consolidated subsidiaries

0

0

0

0

Costs to Reduce the
IHI Environmental
ImpactInvestments (Millions of yen)

IHI

713

696

652

334

Expenditures (Millions of yen)

IHI

79

143

78

23

Reduce Environmental Impact
Environmental Management
Reduction of the Environmental Impact of Products
and Services
Climate Change
Circular Economy
Environmental Protection

Performance Objectives
IHI Sustainability Data Book 2021

Environmental
protection

7*4 Net sales as the denominator.
*5 Changed the method of calculating energy consumption since 2019.
*6 Total of specified hazardous wastes and infectious wastes within specially-controlled industrial wastes.
*7 Changed from amount of water consumption to amount of water withdrawal since 2019.

827
3,373

Corporate Communication Division
Toyosu IHI Building, 1-1, Toyosu 3-chome, Koto-ku, Tokyo 135-8710, Japan
TEL : +81-3-6204-7800 FAX : +81-3-6204-8608
URL : https://www.ihi.co.jp/en/index.html