MHI Publishes Integrated Report "MHI Report 2023"

Tokyo, November 8, 2023 - Mitsubishi Heavy Industries, Ltd. (MHI) today published the "MHI Report 2023." Like last year, the focus of this year's integrated report is on MHI Group's contributions to global Carbon Neutrality. In October 2021, MHI announced its commitment to achieve Carbon Neutrality Groupwide by 2040, and MHI Report 2023 presents detailed explanations of the efforts to fight against climate change by applying the full breadth of decarbonization technologies MHI Group has developed throughout its history.

The report opens with a message from the President and CEO Seiji Izumisawa outlining MHI Group's story of value creation. He provides details on matters such as MHI Group's approach to creating value, with the aim to build a sustainable, safe, secure and convenient society. This is followed by a message from CFO Hisato Kozawa describing the progress on the Company's 2021 Medium-Term Business Plan as well as matters such as how the Company is strengthening its financial foundation to support growth investments.

In a feature on MISSION NET ZERO, the Company's plan to achieve Net Zero CO₂ emissions by 2040, Senior Executive Vice President Hitoshi Kaguchi exchanges opinions with Chie Mitsui, a senior researcher at Nomura Research Institute, Ltd., about issues concerning the broad application of Carbon Neutrality technologies. This is followed by articles providing detailed explanations, with figures and charts, about the decarbonization of existing power generation systems and total energy solutions for data centers, key initiatives of MHI's growth areas in the energy supply and demand areas. The pages about MHI Group's business strategies have also been updated, with outlines of key strategies in the medium to long term and major projects in each segment (Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; Commercial Aviation, Integrated Defense & Space Systems).

The second half of this year's integrated report contains explanations of the Company's basic approach to and execution of corporate governance and sustainability, along with the outside directors roundtable on corporate governance to support value creation of MHI Group. With Ryoko Ueda, Adjunct Professor at　Kyoto University's Graduate School of Management, as a facilitator, three Outside Directors, Nobuyuki Hirano, Hiroo Unoura and Noriko Morikawa, exchange opinions about matters such as the Company's corporate governance system, its next Medium-Term Business Plan and the development of human resources.

Other items included in MHI Report 2023 introduce the Company's sustainability management policy and promotion system, initiatives being taken to address human rights issues, Company-wide goals and KPIs of Material Issues to respond to the SDGs, and MHI's response to risks and opportunities arising from climate change (disclosure in accordance with TCFD (Note) recommendations). Disclosures on the Company's strengthening of the foundations of its human resources have been updated under "HR Strategies" with more details provided than before, in response to a growing interest in human capital disclosures.

Going forward, MHI Group will continue issuing integrated reports outlining how the Company is contributing to resolving social issues as it simultaneously pursues sustainable business growth and ongoing enhancement of its corporate value, presented with a careful balance of financial and non-financial information and in a format readily understandable to shareholders, investors　and all other stakeholders.

• TCFD (Task Force on Climate-related Financial Disclosures) is an organization established at the request of the Financial Stability Board, which comprises central banks and financial authorities from countries around the world, along with international institutions. It calls for disclosure of initiatives and other information pertaining to climate change by companies, and recommends disclosures on four topics: governance, strategy, risk management, and metrics and targets.

• Integrated Report "MHI Report 2023"