MHI Selected for Inclusion in All Four GPIF ESG Investment Indices

Tokyo, February 22, 2019 - Mitsubishi Heavy Industries, Ltd. (MHI) has been selected by Japan's Government Pension Investment Fund (GPIF), one of the world's largest pension funds, as a constituent of all four of its indices used as references for making ESG (environmental, social, and governance) investments into Japan's corporate sector. Selection by GPIF reflects the high acclaim accorded to MHI Group's ESG-related initiatives: specifically, its response to environmental issues and social challenges and its bolstering of corporate governance.

GPIF issues four ESG indices: 1) FTSE Blossom Japan Index, a broad index incorporating overall ESG considerations based on FTSE Russell, an investment index calculator wholly owned by the London Stock Exchange; 2) MSCI Japan ESG Select Leaders Index, a similar broad index based on MSCI, a U.S. provider of investment indices; 3) MSCI Japan Empowering Women Index (WIN), an MSCI index monitoring companies' gender diversity performance; and 4) S&P/JPX Carbon Efficient Index, used to evaluate corporate performance in terms of carbon efficiency, according to S&P Dow Jones Indices. The third and fourth indices respectively focus on ESG's social (gender diversity) and environmental (carbon efficiency, etc.) aspects.

Through the years MHI has proactively undertaken diverse initiatives in each aspect of ESG in a quest for sustainable social development: these include reducing environmental burdens both internally and at customer sites, promoting women's empowerment, conducting social contribution activities, and strengthening corporate governance and information disclosure. These efforts were recognized with the company's selection in September 2018 - for the second consecutive year - for inclusion in the Asia Pacific Index of the Dow Jones Sustainability Indices (DJSI), one of the world's leading investment indices for ESG performance. MHI was initially selected as a constituent of GPIF's FTSE Blossom Japan Index and MSCI Japan Empowering Women Index in 2017; in 2018, this has now been augmented by inclusion in the MSCI Japan ESG Select Leaders Index and S&P/JPX Carbon Efficient Index as well, making MHI a constituent of all four GPIF ESG indices.

Going forward, MHI Group, through ongoing innovation and industry-leading products and technologies, will continue to contribute to a more secure, sustainable future for our planet and all who inhabit it.

See ESG DATA BOOK 2018(1.25MB) for information on MHI Group's ESG activities.