The 27th Session of the CSR Committee

Mitsubishi Heavy Industries (MHI) Group accords CSR (corporate social responsibility) a core position within its management structure and has a standing CSR Committee specifically tasked with always focusing on social perspectives, responding to the expectations of society, and aiming to make MHI Group a solidly trusted company. The CSR Committee is chaired by the officer in charge of CSR (CSO) and comprises the General Counsel (GC), CTO, CFO, the officer in charge of human resources (HR), and the head of the Business Strategy Office. It proactively performs and oversees a full range of CSR activities.

A summary of the CSR Committee’s 27th Session follows.

The 27th Session

1. Outline

Date and time Mar.22 (Mon), 2021,15:00-17:00
Place Marunouchi Nijubashi Bldg., Conference Room 3008
CSR Committee Members Chair: H. Kaguchi (CSO)
Members: M. Mishima (GC), E. Ito (CTO), H. Kozawa (CFO), J. Kakihara (officer in charge of HR), M. Suematsu (head of Business Strategy Office)
Secretariat: Corporate Communication Department

2. Proceedings

(1) Company-wide Materiality Targets
Following identification of MHI Group’s materiality at the CSR Committee’s 25th session, a cross-domain task force team undertook preliminary activities after which the CSR Committee deliberated and made final determination of Company-wide targets and progress monitoring indicators (KPIs), as indicated in the chart below. A decision was also taken to have the CSR Committee monitor the progress of the various initiatives undertaken in pursuit of the Company-wide targets, to report that progress to management at Board of Directors meetings, and to disclose both internally and externally information on MHI Group’s initiatives toward achieving a sustainable society.

(2) Measures Relating to ESG (environmental, social and governance issues)
A report was made on the progress status of the Company’s ESG-related measures in FY2020, the second year since their launch. An overview of progress during the first two years confirmed that positive results are being steadily achieved. For FY2021 and beyond, separately the CSR Committee deliberated and took the decision to redefine some initiatives in consideration of changes taking place in the social aspects of ESG issues.

(3) Revision of MHI’s Basic Policy on Human Rights
To respond to the diversification and increasing complexity of human rights issues along with recent changes in the social environment, the CSR Committee reported on revisions made to the Company’s Basic Policy on Human Rights. A decision was also taken for the CSR Committee to separately deliberate and decide specific initiatives regarding human rights-related due diligence, information disclosure, etc. as set down in the Basic Policy on Human Rights.

(4) Participation in the ESG Information Disclosure Initiative
A report was made of MHI Group’s agreement with and solid support of the ESG metrics issued by the World Economic Forum’s (WEF) International Business Council (IBC).

(5) Status of the CSR Committee
Based on recognition of the need for a proactive structure, including the business domains, to carry out initiatives relating to materiality and ESG issues such as the environment and human rights, a decision was taken to consider, within FY2021, the future structure of the CSR Committee.

MHI Group’s Company-wide Materiality Targets

Materiality Company-wide Targets (for 2030 or 2050)
1.Provide energy solutions to enable a carbon neutral world
Officer in Charge: CSO		 1-1 Contribute to building up energy infrastructure toward a carbon neutral world by 2050
1-2 Contribute to decarbonization in the energy demand sector by 2050
1-3 Contribute to building a circular economy
1-4 Decarbonize MHI Group’s business activities by 2050
2.Transform society through AI and digitalization
Officer in Charge: Head of Business Strategy Office		 2-1 Expand lineup of convenient and sustainable AI/digital products meeting needs of customers and users
2-2 Create a future-oriented energy management structure
2-3 Build a foundation to produce creative products
3.Build a safer and more secure world
Officer in Charge: CTO		 3-1 Make critical infrastructure more resilient
3-2 Make critical infrastructure unmanned or requiring fewer people
3-3 Continuously strengthen cybersecurity measures for all MHI products
3-4 Commercialize cross-domain security technologies
3-5 Develop engineers keenly aware of safety and security needs in all products
4.Promote diversity and increase employee engagement
Officer in Charge: Officer in Charge of HR		 4-1 Create new value through participation of diverse human resources
4-2 Ensure safe and comfortable workplaces
4-3 Support the health and vitality of employees, so they can contribute to society
4-4 Foster self-sustaining growth in all employees
4-5 Increase employee engagement
5.Enhance Corporate Governance
Officer in Charge: GC		 5-1 Further improve Board of Directors meetings
5-2 Promote legal compliance and honest and fair business practices
5-3 Further promote responsible (CSR) procurement in the global supply chain
5-4 Create opportunities to explain non-financial information
Applicable to Materiality Items 1 through 5 Enhance provision of information on MHI Group’s initiatives to realize a sustainable society