Sustainability
Highlights
Our Roadmap for the Three Key Reforms ............. 8
Initiatives for the Second Yearof the Team Sousei (Creation) Project ................... 10
Realize a Sustainable Global Environment
Promote Carbon Neutrality by Sharing
Renewable Energy among Sites ........................... 11
Realize a Safe, Secure, and Comfortable Society
Three Health Technologies to Monitor
the Elderly while Ensuring Privacy ....................... 12
Realize a Safe, Secure, and Comfortable Society
Comfortable Air and Light that Enriches
People's Lives and Creates Well-Being inInterior Spaces ........................................................ 13

Contents /About the Report

Sustainability
Highlights

Management Message

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Sustainability highlights

Our Roadmap for the Three Key Reforms
We give serious weight to the ﬁndings and recommendations of theInvestigative Committee and the Governance Review Committee with regard
to the improper quality control practices that have come to light, and theentire Group is working to prevent recurrence. In October 2021, we
formulated Three Key Reforms (quality assurance, organizational culture, andgovernance), including measures to prevent recurrence, and the entire
company is working to implement fundamental reform initiatives while
deepening and developing the Three Key Reforms to restore conﬁdence inthe company.
Regarding the progress of the Three Key Reforms and other eﬀorts, weestablished the "Monitoring Committee for the Three Key Reforms" under the
Board of Directors in December 2022 and started monitoring on the
supervisory side with the participation of outside experts.
On our website, we disclose the details of the progress of measures toprevent recurrence as of the end of FY2023.
We plan to continue to announce the progress on our website.
Restoring trust: Our roadmap for reform

Overall Concept of Recurrence Prevention Measures
Based on the surface causes, true causes, and proposed countermeasures brought to attention by theInvestigation Committee and the Governance Review Committee to date, we will steadily promotereforms in the three areas of quality assurance, organizational culture, and governance at thecompany-wide levelto prevent recurrence.

Governance Review
Committee recommendations(1) Governance improvements
Strengthen the Board of Directors' functions.
Strengthen the three statutory
committees' functions.

Impact of the reforms
in three key areas(a) Quality assurance
reforams
New engineering processes
will create systems &environments that eliminate
incentives for improper
conduct.

Enhance the Executive Officers' meeting.
Actively use the Business Area
Owner and chief officer structure tostrengthen governance.

Quality Assurance
Reforms
New engineering processes will
create systems and environmentsthat eliminate incentives for
improper conduct(b) Organizational
culture reforms(2) Internal control system
improvements

Open, two-way communication
will foster a culture conducive
to solving problems
systematically.

Governance
Reforms

Open, two-way communication
will foster a culture conducive tosolving problems systematically

New company-wide governanceand internal control systems
informed by external perspectives
will eliminate incentives for
improper conduct

Use automation & Digital Transformation
to visualize quality-control processes.
Enhance mechanisms for early detection of
anomalies (personnel rotation,
whistleblower system, etc).
Create environments that help employees
concentrate (streamline work processes).

8(2) Check and review processes, such asprocedural manuals, from a third-party
perspective.

(4) Support and strengthen middle
management.
(5) Address disconnects between the head
office and field personnel.
(6) Foster company-wide affiliations rather
than the current emphasis onplant-/worksite-level affiliations.

Raise awareness of the corporate
philosophy and quality reforms.

Organizational
Culture Reforms(1) Ensure proper company-wide
understanding of quality(to prevent justification).

(3) Strengthen the Quality Control Division.

Strengthen corporate divisions'company-wide functions.

Introduce a compliance program tied
to risk levels.

Investigative Committee
recommendations(c) Governance reforms(7) Create a highly independent Business
Unit System.

New company-wide
governance & internal control
systems informed by external
perspectives will eliminate
incentives for improper
conduct.

(8) Demonstrate management's resolve tostrengthen quality compliance (from theperceptive of governance for senior
management).

Contents /About the ReportManagement Message

Sustainability highlights

Sustainability
Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Our Roadmap for the Three Key Reforms

Enhancement and Development of the Three Key Reforms

Prevent the recurrence ofimproper quality control
practices and restore trust

Quality assurance reforms- Revising engineering processes -Progress

・Creation of a manufacturing management environment(optimization of resources, control span and health diagnosis
for plants, etc.)
・New design review method, designer training program
・Data-driven quality control , development of rules, andmonitoring

Organizational culture reforms

Generally, we are making progress as planned with respect to systembuilding and implementation of activities for each item.
We have also confirmed progress in spreading quality complianceawareness through the employee awareness surveys, and we will continue
to work to get quality compliance activities to take root and spread.
In addition, since December 2021, the Quality Governance
Subcommittee (chaired by the General Manager of the Corporate Legal &Compliance Division) has been monitoring and checking the effectivenessof each initiative carried out under the quality assurance reform on aregular basis with the advice of outside experts.

- Facilitating two-way communication ・Coaching for executives, town meetings, andcommunication via internal social media
・Rotation, 1-on-1 meetings, psychological safety, "On-Site
Capabilities and Cultural Reform" workshops
・Behavioral changes initiated by management that lead toorganizational solutions

Governance reforms- Building a compliance system focused on preventive measures -Discussions among employees

Progress
With regard to strengthening communication skills, we are actively
providing a variety of training programs for employees and increasing
opportunities for executives to deliver messages directly to employees.
While we will continue our efforts to review the control span andauthorities of middle managers, we have already established aframework for the personnel system as planned, including
implementation of the rotation system among offices and positions aswell as the establishment of an internal recruitment system and a career
consulting office, and we will continue to make efforts to get these
activities to take root.

Internal social media community

・Enhancement of the management monitoring function of theBoard of Directors (making the majority outside directors)
・Establishment of an internal control system that emphasizes
predictive and preventive measures, and enhancement of
the company-wide risk control function
・Monitoring of the implementation of the Three Key Reforms
by the Board of Directors

Progress
Regarding the monitoring of the Board reforms and company-wide reforms, we have completed the construction of the framework, and theimplementation phase will begin in FY2024.
We have already started a variety of studies to improve the internal control system, and in FY2024, we will formulate the details of compliance strategies.
9

Contents /About the ReportManagement Message

Sustainability highlights

Sustainability
Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Initiatives for the second year of the Team Sousei (Creation) project

Everything Starts with Communication Transformation
In 2022, the Mitsubishi Electric Group took another step
forward in its reform that began the previous year.
We proposed the Robust Policies formulated in
April 2022 and launched reform projects in eachbusiness group, branch oﬃce, and Works, and we arestrengthening the promotion system to ensure initiatives
are carried out to reform the negative corporate culture(from minus to zero) and to build a new corporate
culture (from zero to an even better tomorrow).
Among these initiatives, we planned measuresconcerned with "communication transformation" in
FY2023. We have begun a variety of initiatives in diverse
locations to foster the culture that we envision.

As part of a company-wide eﬀort to reform the organizational culture,
we did a full-scale launch of the company-wide reform project Team
Sousei (Creation) in October 2021.
Here is the latest initiatives on the project, now in its second year.

Townhall Meeting
Provided a total of 314 opportunities for
two-way dialogue between
top management and employees todeepen understanding
We have held dialogue-style discussions based on
our belief that to promote cultural reform, it isimportant to have two-way conversations rather than
top-down, one-way communication. In FY2023, thepresident and general managers visited business sites
and held this style discussions 314 times in total.
The top management's intention to change
Mitsubishi Electric is starting to resonate with
employees, who see how seriously the company isattempting to change and the direction that thecompany is going to change.

Addressing everyone by "san"〜 To spread an open atmosphere throughout
the company in which all employees can build
a relationship of trust regardless of rank 〜
As the ﬁrst initiative of the Team Sousei project,
we launched an initiative to address everyone by theneutral honoriﬁc "san," though previously supervisors
were addressed as "XX Kacho" (section chief) and soforth.
This practice has spread at an accelerated paceafter the president encouraged all employees tomake this a basic behavior together with sharing
greetings and showing appreciation. This initiative has
led to signiﬁcant changes throughout the company,
such as lowering barriers to and making the internal
environment more facilitating for conversations aswell as making the tone in emails more casual.

Town hall meeting between President Uruma and employees (Power Device Works)

Direct dialogue between management and employees

Grassroots Activities
Opportunities for dialogue are expanding among nation-wide business sites
Having also launched the reform project in businessgroups and divisions, each workplace is conducting avariety of activities.
We provide opportunities to facilitate dialogue
across ranks and divisions, including workshops
where all participants think together about how each
workplace will tackle the organizational culture
reform. These programs are designed to enable
participants to talk as frankly as possible, including by
providing opportunities for directors and employees
to chat and consult with each other as well as for
employees of the same rank to share information inorder to help solve problems at their workplaces.
10

Meeting for section chiefs to share information(High Frequency & Optical Device Works)

Cross-rank/-division workshop

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Highlights

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Sustainability
Management

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SocialAbout
Mitsubishi Electric Group

GovernanceRealize a Sustainable Global Environment

Promote Carbon Neutrality by Sharing
Renewable Energy among Sites

In recent years, there has been growing demand for companies to use
renewable energy. Mitsubishi Electric's new solutions support companies inpursuing carbon neutrality.

Multi-Region EMS*1 to Promote Eﬀective Use of Renewable Energy

Multi-region EMS structure

In April 2023, we began oﬀering a Multi-region EMS that makes corporate eﬀorts towards
carbon neutrality more eﬃcient and transparent. We will support to achieve company s
decarbonization targets at a locational level by dispatching distributed renewable energy fromother sites through a self-service wheeling*2 and by using battery storage control system.

Monitoring and control

Multi-region EMS
Renewable energy generationand demand forecasts

Environmental value
management

Generation and demand
results monitoring

Distributed energy
aggregation

Power supply andstrage battery control

Power plan preparationand submittal*1 Oﬃcial name: Multi-region digital power supply system*2 A system in which energy from the company's own generation facilities is transmitted to other sites of demand within thecompany using a power transmission and distribution network owned by electrical utilities.

Renewableenergy-derived power

VPP

What is self-service wheeling, which enables power to be distributed to other sites?
Self-service wheeling means to consume electricity
from the company's own generation facilities inremote locations. If the power generated by solar
panels and other renewable energy resources canbe distributed to other sites through self-service
wheeling, in addition to reducing the cost ofelectricity, the company will also be able todemonstrate to society a high level of environmental
awareness. While the number of companies andlocal governments adopting self-service wheeling isincreasing, the task to use this system is considered
to be complicated, and multi-region EMS is anotable solution to this challenge.

Factory A

Storage batteries

Renewable energy resources

Factory B

Storage batteries

Renewable energy resources

Transmission of distributed power to priority sites using self-service wheeling
Using a system that controls and operates distributed energy resources make it possible to instantly
transfer such energy where it is needed. Decarbonization targets can be met on a site-by-site basis by
overcoming challenges such as space limitation to install generation facilities and ﬂuctuations in power
generation due to changes in weather or time of day.

Large capacity batteries control ensures stable operation
Installing large-capacity storage batteries allows for the intermittency of renewable energy output to be
adjusted on a millisecond basis. This ensures stable power supply system operation, which is a challenge
for large-scale renewable energy resources generation facilities.

Utilizing renewable energy without waste by optimizing operations
It is possible to optimize the combination of self-service wheeling, on-site consumption, and battery
recharging in 30-minute increments by taking into account highly accurate generation forecasts as well as
electricity demand forecasts, storage battery capacities, and the prices of environmental certiﬁcates.*
This optimizes utilization of renewable energy value without waste.

Voice
Bringing together advanced power technologies tohelp companies achieve carbon neutrality
Multi-region EMS is a cloud service for companies and municipalities to manage
decarbonization targets for their own sites. In the development process, we madenumerous improvements based on our understanding of user needs. We also promptly
responded to power system changes brought about by increasing environmental
awareness. We then created a solution to share renewable energy value among sites,
optimizing their environmental value management in 30-minute increments. This
technology is unique to our company, which operates in all domains related to energy.
In addition to helping companies achieve carbon neutrality, we also hope to contributeto solving climate change issues.

* Environmental certiﬁcates are certiﬁed by an accredited body to demonstrate the environmental value and greenhouse gas
emission reduction beneﬁts achieved by renewable energy generation. In Japan, these are currently non-fossil certiﬁcates,
J-credits, and green power certiﬁcates.

All-in-one representation of complicated tasks in system operation
The demand and supply of electric power is required to be balanced on a 30-minute basis as a rule, anddemand forecast and generation and transmission plans must be reported every 30 minutes. Not only
does this perform these complicated tasks on behalf of the customer, it also automates the powerplanning tasks required for self-service wheeling, which streamlines the operations.

Seiya Nakano
Energy & Industrial Systems Group
Energy Systems Center,
Digital Energy Business andSystem Research &Development Department
Application Development Section 1

Mitsubishi Electric Biz Timeline, seven key words you need to know to solve energy problems (in Japanese text)11

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Highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Realize a safe, secure, and comfortable society

Three Health Technologies to Monitor
the Elderly while Ensuring Privacy

For the era of rapid aging, the Mitsubishi Electric Group has begun to oﬀer services thatprovide gentle care for the elderly. Here, we present three initiatives that provide peace ofmind and reduce the burdens imposed on family members and nursing staﬀ while respecting
the privacy of those being monitored.

Privacy Space Silhouette Footage Monitoring
kizkia-Knight
The kizkia-Knight makes it possible to monitor toilets, where
cameras cannot be installed for privacy reasons. A built-in infrared
sensor captures temperature data, transmits it to the cloud, andconverts to a silhouette footage. Monitoring can be implemented
while respecting privacy without using a real video footage. In
addition, AI analysis of the silhouette footage detects toilet use andduration as well as conditions such as falls and stooping, andnotiﬁes staﬀ members via their smartphones. Even if no staﬀ member
is nearby, a staﬀ member can quickly be dispatched to the site.
Nursing care robot AI x Monitoring service kizkia-Knight(in Japanese text)

Possible to zoom inand check on asmartphone.

Posturewhen falling

A silhouettefootage

When an event occurs

Monitoring Elderly People in Their Residences andReducing the Burden of Nursing Staﬀ
MelCareIn addition to ensuring resident safety and security, staﬃng and streamlining ofoperations have been identiﬁed as major concerns for nursing facilities. MelCare,
which uses sensors and the cloud, is a solution for monitoring residents to prevent
falls as well as for reducing regular patrolling of the premises by staﬀ members.
The system reduces the workload for staﬀ members through streamlining ofmonitoring operations by sending the status of in-room information to each staﬀ
member's smartphone or other device. This service enables residents to beobserved naturally without the stress of feeling that they are being observed.

Installing the infrared sensor is simple and requires no
installation or relocation work. In the event of a fall orother accident, images taken at the time of the event aswell as the current status can be viewed. Image review
reduces staﬀ workloads by helping them to determine
the necessity and priority of rushing to the scene.

A Subscription Service that Uses Home Appliances to Provide
Monitoring Services to Family Members who Live Far Away
MeAMORFor family members who live far away may beconcerned about elderly people living alone.
M its u bi sh i E l e c tr i c prov ides MeAMO R, * a
subscription service that enables customers tomonitor the conditions of elderly people living
alone and others in similar situations through theuse of home appliances, the indoor temperature,and others. If the air conditioner, the refrigerator,or the water heater is not used for an extended
period or another unusual trend is detected, thesystem notiﬁes the connected application to alertfamily members living far away. Use of home
appliances makes it possible to monitor the living
conditions of elderly family members without
invading their privacy.

MelCare's three major monitoring functions
Fall monitoringAn alert is issued if a resident falls in their room. Staff can quickly
rush to rooms where something is wrong. “Video confirmation” and“calling out for peace of mind” can also be done from smartphones.

Fresh air monitoring

Anomalies in room temperature, humidity, and CO2 concentration aredetected, leading to rapid discovery of inappropriate air conditioning
operations and heat stroke risk.

Life rhythm monitoring

Based on sensor information, the system tracks sleep patterns,
getting up from bed, and bathroom usage frequency to prevent
accidents and detection delays by visualizing residents' conditions.

* AMOR is a word coined by our company to encourage communication
among family members inspired by the Latin word for love (aﬀection).

Elderly monitoring service MeAMOR (in Japanese text)
12

Mitsubishi Electric's MelCare for safe, reliable monitoring support (in Japanese text)

Contents /About the Report

Sustainability
Highlights

Management Message

Sustainability highlights

Initiatives that contribute toaddressing social challenges

Sustainability
Management

Environment

SocialGovernance

About
Mitsubishi Electric Group

Realize a Safe, Secure, and Comfortable Society

Comfortable Air and Light that Enriches People's interior spaces is becoming more diverse. With the growing demand forspaces that are not only safe but also comfortable, Mitsubishi Electric is
Lives and Creates Well-Being in Interior Spaces committed to contributing to people's well-being through our products.
Now that we have experienced the COVID-19 pandemic, the need for

The world's ﬁrst

※1

Caring for People's Emotional
State and Controlling Air Quality ※2
Pursue Comfort with "emoco tech"

Kirigamine Year 2023 Model Z Series*1 In air conditioning equipment (as of February 17, 2023,
according to internal research); a technology that controls
temperature and airflow by measuring the pulse of a person ina room in a non-contact manner in order to estimate theperson's emotions based on their pulse.
*2 Estimates the emotion of the person from the pulse by
non-contact measurement of the person's pulse and controls
the temperature and air flow. Effects vary depending on
conditions of use, etc. and may differ from person to person.

The latest Jet Towel with Health Air®
Function to Clean Even the Space
Hand dryers, which have sometimes been discouraged in the wake of the
COVID-19 pandemic, do not spray water droplets directly and are safe touse with regular cleaning. Jet Towel Slim Type (Enhanced Hygiene Model)
strengthens the hygienic aspect even more than conventional models. The
air is circulated and cleaned 24 hours a day by a circulating fan equippedwith the Health Air® technology. It is also eﬀective in deodorizing
troublesome odors. In addition, the body is made of antiviral resin forimproved hygiene, and the two-stage nozzle structure prevents water
droplets from splashing onto the user.

In February 2023, Kirigamine's Z-Series room air conditioners
were equipped with the world's ﬁrst emoco tech technology,
which controls air quality by measuring your emotional state. The
air conditioning system uses information on windchill temperature
measured by the conventional infrared sensor move eye
mirA.I.+ and information on a person's pulse measured by the
newly developed vital signs sensor emoco eye to assess evenemotions and controlling the air quality accordingly. The key toour air conditioning system is the emoco eye , a revolutionary
sensor developed in collaboration with three companies thatmeasures a person's pulse without contact and estimates feelingsof comfort or discomfort and the amount of brain activity basedon how the pulse ﬂuctuates. We continue to evolve toward an air
conditioning system that is more in tune with human comfort.

When you need to relax and unwind

Jet Towel Slim Type (Enhanced Hygiene Model) (in Japanese text)
Jet Towel Slim Type
(Enhanced Hygiene Model)

When you want to feel refreshed (Fresh Mode)

Provide a Sense of Openness with themisola Lighting that Makes It Appear as
if It Is a True, Real Blue Sky“emoco eye”

I don't likethe wind still
blowing on me...

emoco eye estimates emotions based on a person's pulse
and automatically adjusts the wind direction if it determinesthat the person is feeling discomfort. Temperature and airﬂow
are controlled to achieve a comforting ﬂow of air.

Blue-sky Lighting misola was born from the idea of bringing lighting thatmimics the blue sky into the lives of people who want to feel comfortable ina natural environment. In pursuit of the reproducibility of the blue sky, wedeveloped a scatter panel that expresses an endlessly expanding blue sky
with no visible light points. We even intended to create a shadowed part of
the frame to express the natural light streaming through the frame, which isdesigned to look like sunshine. This eﬀect brings a sense of openness torooms even without windows, and serves as a means of stimulating
communication and helping to create a restful atmosphere, and has therefore
been delivered to many clients.

emoco eye estimates brain activity based on the pulse, andwhen it determines that the activity level is low and theperson's mood is sluggish, it applies wind to the person tostimulate them and to create an air ﬂow that encourages
mental sharpness.

Voice
Providing real comfort for our customers
As a pioneer brand of infrared sensors, Kirigamine has been used to measure wall, ﬂoor,
and ceiling temperatures, the position of people, surface temperatures, and other factors
for comfort control. emoco tech was born from the idea that "we can make people
more comfortable." Developing the sensor was never an easy task. We made strenuous
eﬀorts to ﬁnd collaborators after many phone calls, and we ﬁnally found collaborators,
which resulted in the creation of an unprecedented technology for the estimating
emotions. Looking beyond comfort in pursuit of better living, we aim to apply our
products to a wide range of ﬁelds, including air conditioning, thereby contributing towell-being.

Jiro Nakasu

Living Environment &Digital Media Equipment Group
Shizuoka Works, Sales Department
Room Air Conditioner Sales Planning Group

DaytimeBlue-sky Lighting misola(in Japanese text)

Mitsubishi Electric Room Air Conditioner emoco tech (in Japanese text)
13

Morning and evening

Sunrise and sunset

Night

Expresses not only the blue sky of the daytime, but also the changing expressionof the sky in the morning, evening and night. In addition to scene changes, it isalso possible to change the atmosphere according to the application.