CSR Report 2010 2 President, Mitsubishi Heavy Industries, Ltd

Home , Aichi Prefectural Police, Ajinomoto

Locations (as of July 1, 2010) Head Ofﬁce 16-5, Konan 2-chome, Minato-ku, Tokyo, Japan Postal Code: 108-8215 Phone: 81-3-6716-3111 (main number) Fax: 81-3-6716-5800

Yokohama Mitsubishi Juko Yokohama Bldg., 3-3-1, Minatomirai, Nishi-ku, Yokohama, Kanagawa, Japan Postal Code: 220-8401

Headquarters and Divisions General Machinery & Special Vehicle Headquarters 3000, Tana, Chuo-ku, Sagamihara, Kanagawa, Japan Postal Code: 252-5293 Phone: 81-42-761-1101 (General Affairs Dept.) Fax: 81-42-763-0800 Air-Conditioning & Refrigeration Systems Headquarters 3-1, Asahi, Nishi-biwajima-cho, Kiyosu, Aichi, Japan Postal Code: 452-8561 Phone: 81-52-503-9200 (General Affairs Dept.) Fax: 81-52-503-3533 Machine Tool Division 130, Roku-jizo, Ritto, Shiga, Japan Postal Code: 520-3080 Phone: 81-77-553-3300 (General Affairs Dept.) Fax: 81-77-552-3745 Environmental & Chemical Plant Division Mitsubishi Juko Yokohama Bldg., 3-3-1, Minatomirai, Nishi-ku, Yokohama, Kanagawa, Japan Postal Code: 220-8401 Phone: 81-45-200-9066 (General Affairs & Labor Group) Fax: 81-45-200-9932 Transportation Systems & Advanced Technology Division 1-1-1, Itosaki-Minami, Mihara, Hiroshima, Japan Postal Code: 729-0393 Phone: 81-848-67-2072 (General Affairs & Labor Section) Fax: 81-848-67-2816

Address all inquiries about this report to: Industrial Machinery Business, Technology & Solutions Division 4-6-22, Kan-on Shinmachi, Nishi-ku, Hiroshima, Japan Postal Code: 733-8553 Mitsubishi Heavy Industries, Ltd. Phone: 81-82-291-2112 (General Affairs Dept.) Corporate Social Responsibility Department Fax: 81-82-294-0260 16-5, Konan 2-chome, Minato-ku, Tokyo, Japan Works Postal Code: 108-8215 Phone: 81-3-6716-3884 Fax: 81-3-6716-5815 Nagasaki Shipyard & Machinery Works 1-1, Akunoura-machi, Nagasaki, Japan URL: http://www.mhi.co.jp/en/ Postal Code: 850-8610 Phone: 81-95-828-4121 (General Affairs Dept.) Fax: 81-95-828-4034 Kobe Shipyard & Machinery Works 1-1-1, Wadasaki-cho, Hyogo-ku, Kobe, Hyogo, Japan Postal Code: 652-8585 Phone: 81-78-672-2220 (General Affairs Dept.) Fax: 81-78-672-2245 Shimonoseki Shipyard & Machinery Works 6-16-1, Hikoshima Enoura-cho, Shimonoseki, Yamaguchi, Japan Postal Code: 750-8505 Phone: 81-83-266-5978 (General Affairs Dept.) Fax: 81-83-266-8274 Yokohama Machinery Works 1-8-1, Sachiura, Kanazawa-ku, Yokohama, Kanagawa, Japan Postal Code: 236-8515 Phone: 81-45-775-1201 (General Affairs Dept.) Fax: 81-45-775-1208 Takasago Machinery Works 2-1-1, Arai-cho Shinhama, Takasago, Hyogo, Japan Postal Code: 676-8686 Phone: 81-79-445-6125 (General Affairs Dept.) Fax: 81-79-445-6900 Detailed Version Nagoya Aerospace Systems Works 10, Oye-cho, Minato-ku, Nagoya, Aichi, Japan Postal Code: 455-8515 Phone: 81-52-611-2121 (General Affairs Dept.) Fax: 81-52-611-9360 CSR Report Nagoya Guidance & Propulsion Systems Works Corporate Social Responsibility Report 1200, O-aza Higashi-tanaka, Komaki, Aichi, Japan Postal Code: 485-8561 Phone: 81-568-79-2113 (General Affairs Dept.) Fax: 81-568-78-2552

Mitsubishi Minatomirai Industrial Museum 2010 Mitsubishi Juko Yokohama Bldg., 3-3-1, Minatomirai, Nishi-ku, MHI Social and Yokohama, Kanagawa, Japan Postal Code: 220-8401 Environmental Report Phone: 81-45-200-7351 Fax: 81-45-200-9902 URL http://www.mhi.co.jp/en/museum/ Digest MHI Social and Environmental Report Corporate Social Responsibility Report 2010 Creed 1. We strongly believe that the customer comes first and that we are obligated to be an innovative partner to society. CONTENTS 2. We base our activities on honesty, harmony, and a clear distinction between public and private life. Dialogue 3 3. We shall strive for innovative management and technological development from an international perspective. We aim to continue pursuing our aspiration to contribute to the global community through manufacturing.

Reason for Instituting the Creed (Issued June 1, 1970) Mr. Akira Ikegami and President Hideaki Omiya

In Japan there are many enterprises with their own “creeds” company, the mental attitude of employees, and the future CSR of the MHI Group 9 which simply represent their management concept. directions of the company. Mitsubishi Heavy Industries, Ltd. has a creed of this type, The reason for instituting the present creed is so that all Special Feature also. It was instituted in 1970 on the basis of the policy ad- of us can call to mind our one hundred years of tradition vocated by Koyata Iwasaki, president of Mitsubishi Goshi and strive for further development in the future. Close ties with Kaisha in the 1920s, to indicate the essential attitude of the the Earth 11 Nuclear power plant reduces CO2 emissions —for safe, secure operation at an improved operating rate

Editorial Policy Scope of this Report This is the tenth report of Mitsubishi Heavy Industries, Target organization: Close ties with Ltd. (MHI), including the first Environmental Report The information contained in this report pertains to Mitsubishi Society 15 published in 2001. In this 2010 edition, we have Heavy Industries, Ltd. and its Group companies (125 in Japan Advancing to the frontiers of cancer treatment endeavored to show the faces of the people involved and 112 overseas). Some articles, however, only include Developing a radiotherapy machine that reduces with MHI while presenting a dialogue between the descriptions of MHI activities. the burden on patients President and an intellectual, opinions from various stakeholders, and the voices of employees from the Target period: sites of their CSR activities, all in an easy-to- April 1, 2009 through March 31, 2010 A bridge to the understand manner. In the feature articles, we (includes information on some activities after March 31, 2010) 19 introduce representative initiatives under the three next Generation themes of our CSR Action Guidelines: “close ties Our nationwide works participate in children’s science classes with the Earth,” “close ties with society,” and “a Referenced Guidelines bridge to the next generation.” In addition, we posted a CSR Report digest • Global Reporting Initiative (GRI) Responsibilities and Actions of MHI version (brochure) to succinctly communicate the “Sustainability Reporting Guidelines” (2002 edition G2 and company’s activities as well as the detailed version third edition G3) CSR Action Plans 23 Contents of the Detailed Version / Related Data 45 • “Environmental Reporting Guidelines” (2007 edition) issued (PDF) on the website to provide readers with more Management Overview of the MHI Group 47 information on our activities. by the Japanese Ministry of the Environment Corporate Governance 26 Third-Party Opinions 48 We will continue to improve this report in response Note: A “Guideline Comparison List” will be posted on our website. Compliance 27 Acting on Valuable Opinions 48 to your feedback. Commitment to the Global Environment Structure of CSR information disclosure Environmental Management 30 CSR Report (MHI Social and Targets and Progress 31 Detailed version (PDF) Environmental Report) 2010 Date of Issuance Countermeasures against Global Warming 33 The detailed version June 2010 (previous issue: June 2009) Resource Conservation and Waste Management The full, 66-page CSR report in Digest (brochure) 34 (PDF) can be found on PDF format is provided in the Management of Chemical Substances CSR section of the MHI our website under “CSR” 34 corporate website. Commitment to People and Society We welcome your opinions URL Disclaimer Commitment to Our Customers through the questionnaire also http://www.mhi.co.jp/en/csr/ 36 available on the website. In addition to objective information on the past and present status of Mitsubishi Commitment to Our Shareholders and Investors Heavy Industries, Ltd. and its Group companies, this report also contains plans, 37 perspectives, and forecasts based on business plans and management policies Commitment to Our Business Partners (Suppliers) 38 as of the date of publication. These forecasts are made using information available at the time of publication and therefore the actual status and outcome of fu- Commitment to Our Employees 39 http://www.mhi.co.jp/en/csr/ ture business activities may differ from these forecasts as a result of changes in Contributions to Society 41 the given variables.

1 Mitsubishi Heavy Industries, Ltd. Detailed Version MHI Social and Environmental Report Corporate Social Responsibility Report 2010 Creed 1. We strongly believe that the customer comes first and that we are obligated to be an innovative partner to society. CONTENTS 2. We base our activities on honesty, harmony, and a clear distinction between public and private life. 3. We shall strive for innovative management and technological development from an Dialogue 3 international perspective. We aim to continue pursuing our aspiration to contribute to the global community Reason for Instituting the Creed (Issued June 1, 1970) through manufacturing. Mr. Akira Ikegami and President Hideaki Omiya In Japan there are many enterprises with their own “creeds” company, the mental attitude of employees, and the future which simply represent their management concept. directions of the company. Mitsubishi Heavy Industries, Ltd. has a creed of this type, The reason for instituting the present creed is so that all Overview of the MHI Group 9 CSR of the MHI Group 11 also. It was instituted in 1970 on the basis of the policy ad- of us can call to mind our one hundred years of tradition vocated by Koyata Iwasaki, president of Mitsubishi Goshi and strive for further development in the future. Special Feature Kaisha in the 1920s, to indicate the essential attitude of the Close ties with the Earth 13 Nuclear power plant reduces CO2 emissions Scope of this Report —for safe, secure operation at an improved Editorial Policy operating rate This is the tenth report of Mitsubishi Heavy Industries, Target organization: Ltd. (MHI), including the first Environmental Report The information contained in this report pertains to Mitsubishi published in 2001. In this 2010 edition, we have Heavy Industries, Ltd. and its Group companies (125 in Japan Close ties with endeavored to show the faces of the people involved and 112 overseas). Some articles, however, only include 17 with MHI while presenting a dialogue between the descriptions of MHI activities. Society President and an intellectual, opinions from various Advancing to the frontiers of cancer treatment Developing a radiotherapy machine that reduces stakeholders, and the voices of employees from the Target period: the burden on patients sites of their CSR activities, all in an easy-to- April 1, 2009 through March 31, 2010 understand manner. In the feature articles, we (includes information on some activities after March 31, 2010) introduce representative initiatives under the three A bridge to the themes of our CSR Action Guidelines: “close ties with the Earth,” “close ties with society,” and “a next Generation 21 Referenced Guidelines bridge to the next generation.” Our nationwide works participate in children’s In addition, we posted a CSR Report digest • Global Reporting Initiative (GRI) science classes version (brochure) to succinctly communicate the “Sustainability Reporting Guidelines” (2002 edition G2 and company’s activities as well as the detailed version third edition G3) (PDF) on the website to provide readers with more • “Environmental Reporting Guidelines” (2007 edition) issued Responsibilities and Actions of MHI information on our activities. by the Japanese Ministry of the Environment We will continue to improve this report in response Note: A “Guideline Comparison List” will be posted on our website. CSR Action Plans 25 to your feedback. Management Commitment to People and Society Corporate Governance 28 Commitment to Our Customers 50 Structure of CSR information disclosure Promotion of CSR 30 Commitment to Our Shareholders and Investors 52 Detailed version (PDF) Date of Issuance Compliance 33 Commitment to Our Business Partners (Suppliers) 53 Commitment to Our Employees 55 The detailed version June 2010 (previous issue: June 2009) Digest (brochure) Commitment to the Global Environment (PDF) can be found on Contributions to Society 58 Environmental Management our website under “CSR” 38 Targets and Progress 41 URL Environmental Accounting 42 http://www.mhi.co.jp/en/csr/ Disclaimer In addition to objective information on the past and present status of Mitsubishi Countermeasures against Global Warming 43 Recognition from Society 62 Heavy Industries, Ltd. and its Group companies, this report also contains plans, perspectives, and forecasts based on business plans and management policies Resource Conservation and Waste Management 45 Progress Toward a Sustainable Society 63 as of the date of publication. These forecasts are made using information avail- Management of Chemical Substances 46 Third-Party Opinions 64 able at the time of publication and therefore the actual status and outcome of future business activities may differ from these forecasts as a result of changes in Products and Technologies that Reduce Acting on Valuable Opinions 64 the given variables. Environmental Impact 47

CSR Report 2010 2 President, Mitsubishi Heavy Industries, Ltd. Journalist Hideaki Omiya Akira Ikegami

issues. Mr. Omiya, I would like to hear your views on how MHI that burden the global community. its significance went unnoticed. So rather than discarding to the Earth, global warming caused by increasing CO2 emis- intends to address these issues and how it will fulfill its social Ikegami: Yes—contributing solutions to the various social something as unprofitable in the near term, you’re saying that sions is a foremost concern. responsibility. issues on the planet by providing outstanding products and MHI has a social responsibility to take its time and develop Omiya: Global Omiya: In our services is an important element of CSR. businesses that will benefit the entire global community over warming is an corporate creed, Omiya: Of course, we think there’s more to CSR than just that. the long term. energy issue, MHI declares its Our stakeholders represent a diverse group of people: not only Omiya: We want to be a company that aspires to accomplish too. For genera- determination to tions humankind contribute to has been burn- society through ing vast quanti- its business ope- Profile Profile ties of fossil fuels rations. And we Hideaki Omiya Akira Ikegami to obtain energy. are playing a President, Mitsubishi Heavy Industries, Ltd. Journalist As a result, we Ohi Nuclear Power Station true role in solv- After joining the company in 1969, Hideaki Omiya was long involved in After joining NHK (Japan Broadcasting Corporation) in 1973, for 32 years face massive CO2 aircraft development, and in 1999 he was appointed Deputy General Akira Ikegami worked as a news reporter. Then, starting in 1994, for 11 ing environmen- Wind turbines (California, U.S.A.) Manager of the Nagoya Aerospace Systems Works. He subsequently years he served as a commentator on a weekly news program for children. emissions on the one hand and the need to prepare for the tal and energy served as Director, Executive Vice President and General Manager of the In 2005 he left NHK and went freelance. He has written many books, future depletion of fossil fuels on the other. At MHI we take Air-Conditioning & Refrigeration Systems Headquarters, and in April 2007 he including: Soodattanoka! Gendaishi (“So That’s What Modern History Is All issues by building social infrastructures such as power plants, was appointed Director and Senior Executive Vice President in charge of About!”) and Wakariyasuku ‘Tsutaeru’ Gijutsu (“The Art of ‘Conveying,’ In pride in being one of the few companies that can address industrial plants and public transportation systems. MHI’s pri- Production System Innovation Planning. He became President in April 2008. Easy-to-Understand Terms”). these issues of global scale. First, regarding the use of renew-

3 Mitsubishi Heavy Industries, Ltd.

Dialogue

able energies, in addition to the wind power generating equip- depleted. It’s also effective in preventing global warming since to reduce emissions by an average 6% (to approximately broadcasting accidents. Speaking of accidents, I heard you

ment I mentioned earlier, we manufacture solar and geothermal the same amount of CO2 emitted during combustion is 0.44 million tons per year) compared with 1990 levels in the once had a close call in your days as an aircraft engineer. power facilities too. We also undertake operations involving absorbed by the plant during its growth process. But using five-year period from 2008 to 2012. In fiscal 2009 we brought Omiya: I was once involved in designing an experimental CCV nuclear power plants that use no fossil fuels and produce zero food crops such as corn as the raw material has its problems, emissions down to near 0.45 million tons. We’re also pursuing (control configured vehicle) aircraft for the Japan Air Self-

achieved energy savings and reductions in CO2 emissions for Omiya: I agree that is a problem. So at MHI, instead of corn or upgrading our production facilities and air conditioners and began to oscillate and nearly crashed. The problem was thermal power generation plants that do use fossil fuels. sugarcane that are consumed as food, we’re researching installing solar cell panels at our works nationwide. In this caused by a subtle gap between the human perception and For example, we developed GTCC (gas turbine combined methods that use rice straw and wheat straw discarded as way, first we’re pursuing reductions in-house, and if attaining the computer’s response. These days, not only aircraft but cycle), a system that uses natural gas or other fuel. With waste in the grain production process. our target proves difficult despite these efforts, we intend to even automobiles are mounted with advanced automatic GTCC, first a gas turbine is used to generate power; then Ikegami: Producing ethanol from straw must be quite a tech- take advantage of the Clean Development Mechanism or control functions. This requires considerations of safety design recovered heat from that process is used to drive a steam nical challenge. If you use strong acids to decompose the purchase emission credits to make sure we keep to the and quality control relating to human-computer interface. turbine, again generating power, resulting in one of the highest coarse plant fiber contained in the straw, you end up increasing designated targets. Ikegami: That’s a novel and challenging domain for engineers. energy efficiency rates in the world. Similarly, our IGCC the environmental impact. Ikegami: But the more products you manufacture that Omiya: Yes, it is. Going forward I think we will be required to

(integrated coal gasification combined cycle) system, which Omiya: To reduce environmental impact in the production contribute to preventing global warming, won’t your own CO2 work in the cutting-edge domain of safety and quality in uses gasified coal as fuel, makes efficient use of energy as well. process, we use water to decompose the fiber instead of sulfu- emissions become that much greater? human-machine interface for a variety of products. If we manu-

and it’s even possible to remove the CO2 by combining it with mercial viability will take time, but we remain hopeful because emissions generated by MHI. I believe, however, that our with the laws of physics. But if we build it right, the product will carbon capture and storage technology. development of this technology will beneﬁt humankind. energy and environment products will have even greater operate safely in accordance with the laws of physics. I explain Ikegami: There are larger reserves of coal than oil, so the Ikegami: I certainly look forward to your success. It would be impact in preventing global warming. For example, compared it to my employees this way: you can never deceive technology. efﬁcient use of coal for power generation can be an effective wonderful to see you achieve a new technology that can simul- with 1990 levels, with a 1,100 MW nuclear power plant operat- Ikegami: Your own past experience and self-reproach are

solution to the issue of energy resource depletion. But how do taneously address the global issues of not just fossil fuel deple- ing at an 80% capacity utilization rate, it’s possible to cut CO2 embodied in those words, aren’t they.

you actually remove CO2? tion and global warming but also food shortages caused by a emissions by approximately 8.5 million tons per year. Similarly,

Omiya: MHI developed a technology for capturing CO2 growing population. Now, what about water? Today, there’s a holding to the same utilization rate, with a 500 MW GTCC through absorption into a special liquid; seven plants around serious shortage of water worldwide. system annual emissions can be reduced by approximately 2.7 We are pursuing compliance from the the world are already using it. Furthermore, we are currently Omiya: MHI million tons, and with a 500 MW IGCC system by about 1.4 dual aspects of employee awareness and conducting veriﬁcation testing at thermal power plants in the also manufac- million tons. When we combine the overall impact of these corporate mechanisms.

U.S. and Germany of equipment capable of capturing several tures desalina- products of ours, the total reduction in CO2 emissions exceeds Ikegami: How about compliance? As a company that builds

thousand tons of CO2 per day. We are recognized as the world tion plants. Since 100 million tons per year (see p. 48 for basis of calculation). social infrastructures, MHI wields powerful inﬂuence on society leader in this area. we delivered a and is therefore expected to act fairly at all times. Ikegami: I see. That sounds like a dream technology. large-scale plant Omiya: You’re absolutely right. In the past, employees have to produce drink- Facing up to past mistakes is important been arrested and MHI itself has faced litigation for bid-rigging. ing water from for preventing accidents. Such unfair practices shatter the public trust, disappoint stake- Looking ahead, it will be important for us sea water to Ikegami: Let me turn now to “close ties with society,” the holders and shake the very foundations of a company. to contribute to addressing food and Saudi Arabia in second theme of the MHI Group CSR Action Guidelines. The Ikegami: No matter how good a product might be, it’s of no Inside a desalination plant water concerns. 1981, we have general public’s greatest concerns are product safety and use to society or to the company if the way it’s provided is bad. Omiya: Speaking of dream technologies, MHI is currently established a track record of delivering 11 large-scale desalina- quality. Getting manufacturers to make sure their products Omiya: Precisely. We shouldn’t stop at raising employee developing bioethanol as fuel for automobiles, collaborating in tion plants around the world. Construction is currently under- don’t cause accidents is an important social issue for people awareness; the company must also take responsibility by joint research with a team that includes a brewing company. way in Saudi Arabia on one of the world’s largest plants, everywhere. creating mechanisms to prevent any recurrence of miscon- Ikegami: With plant-based ethanol, since the raw materials capable of producing 216,000 tons of drinking water per day, Omiya: I agree, duct. At MHI, we’re striving to prevent recurrence by reinforcing can be produced through agriculture, fossil fuels aren’t toward its scheduled completion in December 2010. and at MHI we mechanisms such as our Order Compliance Committee and Ikegami: Last year, I traveled the entire length of Sudan from place signiﬁcant north to south. In the north, where the Sahara Desert lies, there emphasis on wasn’t a cloud in sight. But as I traveled south along the River product safety Nile, clouds began to appear on the horizon. Further south, I and quality. This saw trees thriving under the clouds and towns inhabited by April we opened people. In other words, water vapor rises wherever there is the Accident vegetation, creating clouds that bring rain, which moistens the Exhibit and land. I got a real sense of how essential water is to the lives of Materials Room Accident Exhibit and Materials Room both plants and people. And I have great hopes for MHI’s for employees at efforts to produce potable water. our Technical Training Center in Nagoya. Exhibits here include video and panel displays of past product-related accidents, such as a helicopter crash. We also exhibit the actual acci- Our products have reduced CO2 emissions dent-causing products at each production site. We want em- by more than 100 million tons, and we are ployees to face up to the tragedy of accidents by seeing these also working to reduce our own CO2 actual cases, so that they will strive for thorough product safety emissions. and quality control with renewed determination to make sure

Ikegami: Is MHI making progress on reducing CO2 emissions such accidents never happen again. resulting from your own business activities? Ikegami: Learning from actual cases is certainly effective

Omiya: With respect to CO2 emissions from factories and toward preventing accidents. When I ﬁrst joined NHK, I also ofﬁces, we are striving, in accordance with the Kyoto Protocol, received a lesson on previous cases of misinformation and

Dialogue

internal audits. from science. Moreover, scientific thinking, including an Ikegami: What about employee education? understanding of the laws of physics, is the backbone of our Omiya: We conduct compliance education drawing upon past society. As a manufacturing company, we want to communi- cases, in a vein similar to the Accident Exhibit and Materials cate the importance and enjoyment of science and technol- Room I mentioned before. In educating our employees, we ogy to children. Our employees who serve as teachers also also apply the results of audits conducted by outside experts feel they are doing something worthwhile, and enjoying the and feedback received during such audits. experience, too. Ikegami: I’ve heard that, in general, seeking orders in develop- Ikegami: When I was working on a children’s news program at ing countries can easily lead to questionable conduct due to NHK, I had a wonderful time explaining world events. Children differences in business practices. have more fun and find it easier to understand when the adults Forum 35 Project Aiming for employees to get satisfaction from their jobs, as a way of further energizing the entire organization Omiya: My instructions to employees are clear: if you’re going teaching them feel what they’re doing is worthwhile. to end up getting your hands dirty, it’s better not getting the order in the first place. Profit gained through questionable prac- The President exchanges ideas with employees tices will always lead to a loss in the long term. MHI has been We provide opportunities for direct participating in the United Nations Global Compact since communication so employees can better in their mid-thirties. feel a sense of doing something worthwhile. 2004, and we think it’s essential to act based on its ten To encourage communication among employees as a way of energizing the whole organization, MHI principles in the four areas of corruption prevention, human Omiya: In terms of feeling a sense of doing something worth- implements Forum 35, a project in which employees in their mid-thirties discuss a broad range of topics rights, labor and the environment. while, it’s also important that employees feel this way about relating to the company and to society. Meetings are also regularly convened between the project their daily work. Ikegami: Business and CSR both depend on employees, so members and the President, to enable the President to hear what people of this generation have to say. As a manufacturing company, we will there’s a need to create a work environment that’s both fulfilling continue communicating the importance and comfortable. and enjoyment of science and Omiya: To do Forum 35: occasions for employees in their private matters as well as the level of problem awareness technology to children. that, we need mid-thirties to freely discuss topics that shared by those of the same generation. Forum activities had Ikegami: What about “a bridge to the next generation,” the to energize our transcend departmental boundaries also included visits to other works (for example, to observe the third theme of your CSR Action Guidelines? What kind of activi- entire organi- Employees in their mid-thirties born during the second baby launching ceremony of a container carrier) and training camps. ties are you undertaking in this area? zation through boom constitute the majority of MHI’s employee demographics His report also included an introduction to a new bulletin board Omiya: One representative example is the science classes communication. and play a central role in the business operations of all launched via the company’s intranet and aimed at creating an offered by our works nationwide. Under this program, employ- As president, workplaces. MHI launched the Forum 35 project in July 2009 environment enabling easy exchange of ideas and information ees use products or technologies they developed to communi- I hold “town to promote communication among these employees as a way with Forum members from other works. In reference to cate the enjoyment of science to elementary and middle school meetings” on a of energizing the entire organization. The project provides energizing the organization, the representative said that in students. continuing basis a forum in which employees of this generation can freely addition to improving formal systems and mechanisms it was President Omiya visiting the new nursery at the discuss topics that transcend departmental boundaries. A also necessary to reform personal awareness, and he said he Ikegami: Employees go into the schools to teach, don’t they. at each of our Nagasaki Shipyard & Machinery Works distinguishing feature of Forum 35 activities is the emphasis on felt it was important to create low-profile mechanisms like Omiya: We’ve works. In 2009, the communication process itself, instead of seeking any Forum 35. He further announced that he would be handing been working on these meetings were organized into two parts: an informal specific outcomes. over the reins of the activities to new (second-year) members this continuously meeting with the general managers where they can express The project began with seven members from each and would continue to offer support as a “graduate” and work based on our their opinions directly to me, and a visit to the worksites to let department at the Head Office, followed by similar forums to widen the circle of activities to even more works. three-year plan me hear what employees have to say about their jobs. Last launched at the Kobe Shipyard & Machinery Works and the The representative of the Kobe Shipyard & Machinery Works, to support in- year we also launched Forum 35, a project in which employ- Nagasaki Shipyard & Machinery Works. Today the circle of where the Forum was launched in January 2010, presented the school science ees in their mid-thirties discuss corporate and social issues communication among employees continues to expand ideas expressed by members during the seven discussions education. In among themselves. I regularly exchange ideas with members steadily. held so far on themes such as compliance awareness, fiscal 2008 we of this group as well. In addition, in April 2010 we opened concerns as managers, and handing down technology. He also held classes at MHI’s first children’s nursery at the Nagasaki Shipyard & reported that a sense of unity had been nurtured through these A science class taught by an MHI employee 12 schools; in Machinery Works, a move taken to support employees in The President sends messages to Forum activities, creating an energized forum in which thoughts can be fiscal 2009, at 28 schools. About 2,700 children have partici- balancing their work and family life. members drawing upon their activity reports. shared, which has boosted member motivation. Members of pated to date, and they have told us how much they enjoyed it, Ikegami: Companies come in many shapes. MHI, I think, is As part of Forum 35, meetings are regularly held where the the Nagasaki Shipyard & Machinery Works, where the Forum some even commenting they would like to become engineers the kind of company where employees can get a real sense President and employees exchange ideas relating to the themes was only recently launched, spoke about their personal when they grow up. And in the coming years we’re planning they are helping to resolve social issues through their work. I and content of the discussions associated with Forum activities, aspirations toward specific future activities. further improvements to the program based on the feedback hope your employees will continue striving to provide safer and members can openly express their individual views. In response, President Omiya touched on his own and comments we’ve received from the children and teachers. and better products and services to enable sustained social The second such meeting was held in April 2010 and was experiences while offering advice and expressing his hopes Ikegami: Given how children in this country are increasingly development. attended by President Omiya and fifteen Forum 35 members for mid-thirties generation employees. The President noted moving away from the sciences, this is a very significant Omiya: We appreciate your sentiments. It’s true that many of each from the Head Office, Kobe Shipyard & Machinery Works that communication is the key element in daily operations as program for the future of Japan. our employees join MHI with high aspirations of serving society, and Nagasaki Shipyard & Machinery Works. The members well as for building relationships with those around us. He also Omiya: I’m determined to prevent Japan’s manufacturing and we will continue working together with these employees to were drawn from diverse departments, including marketing, said that self-development requires a strong awareness of prowess from eroding, or our foundations as a technology- engage in manufacturing as our way of contributing to the design, planning and administration, personnel, internal one’s job and knowledge of its position within the oriented nation from being shaken, because of a move away global community. You can count on us. auditing, materials and equipment, and hospitals. After an upstream-downstream process flow, as well as emulating the initial round of self-introductions, activity reports were strengths of others through communication. He also shared presented by representatives of each works and exchanges of how impressed he had been by the words of a member who ideas took place. said he had made life-long friends through the Forum 35 The representative from the Head Office reported that more activities. That alone, the President offered, was enough to than 20 wide-ranging discussions had been held since the prove the value of these activities. launch of the Forum, covering both work-related concerns and President, Mitsubishi Heavy Industries, Ltd. Journalist Hideaki Omiya Akira Ikegami

Dialogue the customers who use our products and services, but also our tasks that we deem to be necessary for humankind from a We aim to continue pursuing our aspiration to contribute investors and numerous shareholders, our business partners long-term perspective, even if it means having to overcome to the global community through manufacturing. (suppliers), people in the areas surrounding our works, and difficulties. We hope to take businesses that are absolutely employees. We believe CSR equates to returning profit to all essential for the global community and make them commer- President Hideaki Omiya recently discussed MHI’s CSR (corporate social responsibility) in respect to the future of the global community with journalist Akira Ikegami, who is highly regarded for his ability these stakeholders. Furthermore, 30 years ago, when MHI cially viable, and then return the profits to our stakeholders. to explain complicated issues in easy-to-understand terms. began developing and manufacturing wind turbines, quite a few people warned us against doing so because they projected no profit would come from that business. However, We take pride in being one of the few we have always been certain of the need to nurture businesses companies that can address the two Our aspiration is to contribute through mary social responsibility, we believe, is to contribute to the sus- that address the issues society faces, from a long-term major global concerns of energy and the our business activities to social tainable development of the global community through manu- perspective, instead of pursuing only short-term gains. environment. development. facturing. Our CI statement “Our Technologies, Your Tomorrow” Ikegami: Nowadays wind power is attracting attention as a Ikegami: “Close ties with the Earth” is the first of the three Ikegami: Today, the global community faces a multitude of expresses our aspiration to continue tackling the many issues countermeasure to global warming, but there was a time when themes of the MHI Group CSR Action Guidelines. With regard issues. Mr. Omiya, I would like to hear your views on how MHI that burden the global community. its significance went unnoticed. So rather than discarding to the Earth, global warming caused by increasing CO2 emis- intends to address these issues and how it will fulfill its social Ikegami: Yes—contributing solutions to the various social something as unprofitable in the near term, you’re saying that sions is a foremost concern. responsibility. issues on the planet by providing outstanding products and MHI has a social responsibility to take its time and develop Omiya: Global Omiya: In our services is an important element of CSR. businesses that will benefit the entire global community over warming is an corporate creed, Omiya: Of course, we think there’s more to CSR than just that. the long term. energy issue, MHI declares its Our stakeholders represent a diverse group of people: not only Omiya: We want to be a company that aspires to accomplish too. For genera- determination to tions humankind contribute to has been burn- society through ing vast quanti- its business ope- Profile Profile ties of fossil fuels rations. And we Hideaki Omiya Akira Ikegami to obtain energy. are playing a President, Mitsubishi Heavy Industries, Ltd. Journalist As a result, we Ohi Nuclear Power Station true role in solv- After joining the company in 1969, Hideaki Omiya was long involved in After joining NHK (Japan Broadcasting Corporation) in 1973, for 32 years face massive CO2 aircraft development, and in 1999 he was appointed Deputy General Akira Ikegami worked as a news reporter. Then, starting in 1994, for 11 ing environmen- Wind turbines (California, U.S.A.) Manager of the Nagoya Aerospace Systems Works. He subsequently years he served as a commentator on a weekly news program for children. emissions on the one hand and the need to prepare for the tal and energy served as Director, Executive Vice President and General Manager of the In 2005 he left NHK and went freelance. He has written many books, future depletion of fossil fuels on the other. At MHI we take Air-Conditioning & Refrigeration Systems Headquarters, and in April 2007 he including: Soodattanoka! Gendaishi (“So That’s What Modern History Is All issues by building social infrastructures such as power plants, was appointed Director and Senior Executive Vice President in charge of About!”) and Wakariyasuku ‘Tsutaeru’ Gijutsu (“The Art of ‘Conveying,’ In pride in being one of the few companies that can address industrial plants and public transportation systems. MHI’s pri- Production System Innovation Planning. He became President in April 2008. Easy-to-Understand Terms”). these issues of global scale. First, regarding the use of renew-

CSR Report 2010 4

Dialogue able energies, in addition to the wind power generating equip- depleted. It’s also effective in preventing global warming since to reduce emissions by an average 6% (to approximately broadcasting accidents. Speaking of accidents, I heard you ment I mentioned earlier, we manufacture solar and geothermal the same amount of CO2 emitted during combustion is 0.44 million tons per year) compared with 1990 levels in the once had a close call in your days as an aircraft engineer. power facilities too. We also undertake operations involving absorbed by the plant during its growth process. But using five-year period from 2008 to 2012. In fiscal 2009 we brought Omiya: I was once involved in designing an experimental CCV nuclear power plants that use no fossil fuels and produce zero food crops such as corn as the raw material has its problems, emissions down to near 0.45 million tons. We’re also pursuing (control configured vehicle) aircraft for the Japan Air Self-

CO2 emissions during power generation. In addition, we have given the many people suffering from starvation. other energy saving efforts, one step at a time, such as Defense Force. Soon after the aircraft took off in a test flight, it achieved energy savings and reductions in CO2 emissions for Omiya: I agree that is a problem. So at MHI, instead of corn or upgrading our production facilities and air conditioners and began to oscillate and nearly crashed. The problem was thermal power generation plants that do use fossil fuels. sugarcane that are consumed as food, we’re researching installing solar cell panels at our works nationwide. In this caused by a subtle gap between the human perception and For example, we developed GTCC (gas turbine combined methods that use rice straw and wheat straw discarded as way, first we’re pursuing reductions in-house, and if attaining the computer’s response. These days, not only aircraft but cycle), a system that uses natural gas or other fuel. With waste in the grain production process. our target proves difficult despite these efforts, we intend to even automobiles are mounted with advanced automatic GTCC, first a gas turbine is used to generate power; then Ikegami: Producing ethanol from straw must be quite a tech- take advantage of the Clean Development Mechanism or control functions. This requires considerations of safety design recovered heat from that process is used to drive a steam nical challenge. If you use strong acids to decompose the purchase emission credits to make sure we keep to the and quality control relating to human-computer interface. turbine, again generating power, resulting in one of the highest coarse plant fiber contained in the straw, you end up increasing designated targets. Ikegami: That’s a novel and challenging domain for engineers. energy efficiency rates in the world. Similarly, our IGCC the environmental impact. Ikegami: But the more products you manufacture that Omiya: Yes, it is. Going forward I think we will be required to

IGCC also generates less dust and soot than direct coal firing; ric acid. Many technical challenges remain and achieving com- Omiya: It’s true that boosting production will increase CO2 facture something wrong, accidents will occur in accordance and it’s even possible to remove the CO2 by combining it with mercial viability will take time, but we remain hopeful because emissions generated by MHI. I believe, however, that our with the laws of physics. But if we build it right, the product will carbon capture and storage technology. development of this technology will benefit humankind. energy and environment products will have even greater operate safely in accordance with the laws of physics. I explain Ikegami: There are larger reserves of coal than oil, so the Ikegami: I certainly look forward to your success. It would be impact in preventing global warming. For example, compared it to my employees this way: you can never deceive technology. efficient use of coal for power generation can be an effective wonderful to see you achieve a new technology that can simul- with 1990 levels, with a 1,100 MW nuclear power plant operat- Ikegami: Your own past experience and self-reproach are solution to the issue of energy resource depletion. But how do taneously address the global issues of not just fossil fuel deple- ing at an 80% capacity utilization rate, it’s possible to cut CO2 embodied in those words, aren’t they. you actually remove CO2? tion and global warming but also food shortages caused by a emissions by approximately 8.5 million tons per year. Similarly,

U.S. and Germany of equipment capable of capturing several tures desalina- products of ours, the total reduction in CO2 emissions exceeds Ikegami: How about compliance? As a company that builds thousand tons of CO2 per day. We are recognized as the world tion plants. Since 100 million tons per year (see p. 48 for basis of calculation). social infrastructures, MHI wields powerful inﬂuence on society leader in this area. we delivered a and is therefore expected to act fairly at all times. Ikegami: I see. That sounds like a dream technology. large-scale plant Omiya: You’re absolutely right. In the past, employees have to produce drink- Facing up to past mistakes is important been arrested and MHI itself has faced litigation for bid-rigging. ing water from for preventing accidents. Such unfair practices shatter the public trust, disappoint stake- Looking ahead, it will be important for us sea water to Ikegami: Let me turn now to “close ties with society,” the holders and shake the very foundations of a company. to contribute to addressing food and Saudi Arabia in second theme of the MHI Group CSR Action Guidelines. The Ikegami: No matter how good a product might be, it’s of no Inside a desalination plant water concerns. 1981, we have general public’s greatest concerns are product safety and use to society or to the company if the way it’s provided is bad. Omiya: Speaking of dream technologies, MHI is currently established a track record of delivering 11 large-scale desalina- quality. Getting manufacturers to make sure their products Omiya: Precisely. We shouldn’t stop at raising employee developing bioethanol as fuel for automobiles, collaborating in tion plants around the world. Construction is currently under- don’t cause accidents is an important social issue for people awareness; the company must also take responsibility by joint research with a team that includes a brewing company. way in Saudi Arabia on one of the world’s largest plants, everywhere. creating mechanisms to prevent any recurrence of miscon- Ikegami: With plant-based ethanol, since the raw materials capable of producing 216,000 tons of drinking water per day, Omiya: I agree, duct. At MHI, we’re striving to prevent recurrence by reinforcing can be produced through agriculture, fossil fuels aren’t toward its scheduled completion in December 2010. and at MHI we mechanisms such as our Order Compliance Committee and Ikegami: Last year, I traveled the entire length of Sudan from place signiﬁcant north to south. In the north, where the Sahara Desert lies, there emphasis on wasn’t a cloud in sight. But as I traveled south along the River product safety Nile, clouds began to appear on the horizon. Further south, I and quality. This saw trees thriving under the clouds and towns inhabited by April we opened people. In other words, water vapor rises wherever there is the Accident vegetation, creating clouds that bring rain, which moistens the Exhibit and land. I got a real sense of how essential water is to the lives of Materials Room Accident Exhibit and Materials Room both plants and people. And I have great hopes for MHI’s for employees at efforts to produce potable water. our Technical Training Center in Nagoya. Exhibits here include video and panel displays of past product-related accidents, such as a helicopter crash. We also exhibit the actual acci- Our products have reduced CO2 emissions dent-causing products at each production site. We want em- by more than 100 million tons, and we are ployees to face up to the tragedy of accidents by seeing these also working to reduce our own CO2 actual cases, so that they will strive for thorough product safety emissions. and quality control with renewed determination to make sure

Ikegami: Is MHI making progress on reducing CO2 emissions such accidents never happen again. resulting from your own business activities? Ikegami: Learning from actual cases is certainly effective

Dialogue internal audits. from science. Moreover, scientific thinking, including an Ikegami: What about employee education? understanding of the laws of physics, is the backbone of our Omiya: We conduct compliance education drawing upon past society. As a manufacturing company, we want to communi- cases, in a vein similar to the Accident Exhibit and Materials cate the importance and enjoyment of science and technol- Room I mentioned before. In educating our employees, we ogy to children. Our employees who serve as teachers also also apply the results of audits conducted by outside experts feel they are doing something worthwhile, and enjoying the and feedback received during such audits. experience, too. Ikegami: I’ve heard that, in general, seeking orders in develop- Ikegami: When I was working on a children’s news program at ing countries can easily lead to questionable conduct due to NHK, I had a wonderful time explaining world events. Children differences in business practices. have more fun and find it easier to understand when the adults Forum 35 Project Aiming for employees to get satisfaction from their jobs, as a way of further energizing the entire organization Omiya: My instructions to employees are clear: if you’re going teaching them feel what they’re doing is worthwhile. to end up getting your hands dirty, it’s better not getting the order in the first place. Profit gained through questionable prac- The President exchanges ideas with employees tices will always lead to a loss in the long term. MHI has been We provide opportunities for direct participating in the United Nations Global Compact since communication so employees can better in their mid-thirties. feel a sense of doing something worthwhile. 2004, and we think it’s essential to act based on its ten To encourage communication among employees as a way of energizing the whole organization, MHI principles in the four areas of corruption prevention, human Omiya: In terms of feeling a sense of doing something worth- implements Forum 35, a project in which employees in their mid-thirties discuss a broad range of topics rights, labor and the environment. while, it’s also important that employees feel this way about relating to the company and to society. Meetings are also regularly convened between the project their daily work. Ikegami: Business and CSR both depend on employees, so members and the President, to enable the President to hear what people of this generation have to say. As a manufacturing company, we will there’s a need to create a work environment that’s both fulfilling continue communicating the importance and comfortable. and enjoyment of science and Omiya: To do Forum 35: occasions for employees in their private matters as well as the level of problem awareness technology to children. that, we need mid-thirties to freely discuss topics that shared by those of the same generation. Forum activities had Ikegami: What about “a bridge to the next generation,” the to energize our transcend departmental boundaries also included visits to other works (for example, to observe the third theme of your CSR Action Guidelines? What kind of activi- entire organi- Employees in their mid-thirties born during the second baby launching ceremony of a container carrier) and training camps. ties are you undertaking in this area? zation through boom constitute the majority of MHI’s employee demographics His report also included an introduction to a new bulletin board Omiya: One representative example is the science classes communication. and play a central role in the business operations of all launched via the company’s intranet and aimed at creating an offered by our works nationwide. Under this program, employ- As president, workplaces. MHI launched the Forum 35 project in July 2009 environment enabling easy exchange of ideas and information ees use products or technologies they developed to communi- I hold “town to promote communication among these employees as a way with Forum members from other works. In reference to cate the enjoyment of science to elementary and middle school meetings” on a of energizing the entire organization. The project provides energizing the organization, the representative said that in students. continuing basis a forum in which employees of this generation can freely addition to improving formal systems and mechanisms it was President Omiya visiting the new nursery at the discuss topics that transcend departmental boundaries. A also necessary to reform personal awareness, and he said he Ikegami: Employees go into the schools to teach, don’t they. at each of our Nagasaki Shipyard & Machinery Works distinguishing feature of Forum 35 activities is the emphasis on felt it was important to create low-profile mechanisms like Omiya: We’ve works. In 2009, the communication process itself, instead of seeking any Forum 35. He further announced that he would be handing been working on these meetings were organized into two parts: an informal specific outcomes. over the reins of the activities to new (second-year) members this continuously meeting with the general managers where they can express The project began with seven members from each and would continue to offer support as a “graduate” and work based on our their opinions directly to me, and a visit to the worksites to let department at the Head Office, followed by similar forums to widen the circle of activities to even more works. three-year plan me hear what employees have to say about their jobs. Last launched at the Kobe Shipyard & Machinery Works and the The representative of the Kobe Shipyard & Machinery Works, to support in- year we also launched Forum 35, a project in which employ- Nagasaki Shipyard & Machinery Works. Today the circle of where the Forum was launched in January 2010, presented the school science ees in their mid-thirties discuss corporate and social issues communication among employees continues to expand ideas expressed by members during the seven discussions education. In among themselves. I regularly exchange ideas with members steadily. held so far on themes such as compliance awareness, fiscal 2008 we of this group as well. In addition, in April 2010 we opened concerns as managers, and handing down technology. He also held classes at MHI’s first children’s nursery at the Nagasaki Shipyard & reported that a sense of unity had been nurtured through these A science class taught by an MHI employee 12 schools; in Machinery Works, a move taken to support employees in The President sends messages to Forum activities, creating an energized forum in which thoughts can be fiscal 2009, at 28 schools. About 2,700 children have partici- balancing their work and family life. members drawing upon their activity reports. shared, which has boosted member motivation. Members of pated to date, and they have told us how much they enjoyed it, Ikegami: Companies come in many shapes. MHI, I think, is As part of Forum 35, meetings are regularly held where the the Nagasaki Shipyard & Machinery Works, where the Forum some even commenting they would like to become engineers the kind of company where employees can get a real sense President and employees exchange ideas relating to the themes was only recently launched, spoke about their personal when they grow up. And in the coming years we’re planning they are helping to resolve social issues through their work. I and content of the discussions associated with Forum activities, aspirations toward specific future activities. further improvements to the program based on the feedback hope your employees will continue striving to provide safer and members can openly express their individual views. In response, President Omiya touched on his own and comments we’ve received from the children and teachers. and better products and services to enable sustained social The second such meeting was held in April 2010 and was experiences while offering advice and expressing his hopes Ikegami: Given how children in this country are increasingly development. attended by President Omiya and fifteen Forum 35 members for mid-thirties generation employees. The President noted moving away from the sciences, this is a very significant Omiya: We appreciate your sentiments. It’s true that many of each from the Head Office, Kobe Shipyard & Machinery Works that communication is the key element in daily operations as program for the future of Japan. our employees join MHI with high aspirations of serving society, and Nagasaki Shipyard & Machinery Works. The members well as for building relationships with those around us. He also Omiya: I’m determined to prevent Japan’s manufacturing and we will continue working together with these employees to were drawn from diverse departments, including marketing, said that self-development requires a strong awareness of prowess from eroding, or our foundations as a technology- engage in manufacturing as our way of contributing to the design, planning and administration, personnel, internal one’s job and knowledge of its position within the auditing, materials and equipment, and hospitals. After an oriented nation from being shaken, because of a move away global community. You can count on us. upstream-downstream process flow, as well as emulating the initial round of self-introductions, activity reports were strengths of others through communication. He also shared presented by representatives of each works and exchanges of how impressed he had been by the words of a member who ideas took place. said he had made life-long friends through the Forum 35 The representative from the Head Office reported that more activities. That alone, the President offered, was enough to than 20 wide-ranging discussions had been held since the prove the value of these activities. launch of the Forum, covering both work-related concerns and President, Mitsubishi Heavy Industries, Ltd. Journalist Hideaki Omiya Akira Ikegami

Dialogue

you actually remove CO2? tion and global warming but also food shortages caused by a emissions by approximately 8.5 million tons per year. Similarly,

U.S. and Germany of equipment capable of capturing several tures desalina- products of ours, the total reduction in CO2 emissions exceeds Ikegami: How about compliance? As a company that builds

Ikegami: Is MHI making progress on reducing CO2 emissions such accidents never happen again. resulting from your own business activities? Ikegami: Learning from actual cases is certainly effective

5 Mitsubishi Heavy Industries, Ltd.

Dialogue

internal audits. from science. Moreover, scientific thinking, including an Ikegami: What about employee education? understanding of the laws of physics, is the backbone of our Omiya: We conduct compliance education drawing upon past society. As a manufacturing company, we want to communi- cases, in a vein similar to the Accident Exhibit and Materials cate the importance and enjoyment of science and technol- Room I mentioned before. In educating our employees, we ogy to children. Our employees who serve as teachers also also apply the results of audits conducted by outside experts feel they are doing something worthwhile, and enjoying the and feedback received during such audits. experience, too. Ikegami: I’ve heard that, in general, seeking orders in develop- Ikegami: When I was working on a children’s news program at ing countries can easily lead to questionable conduct due to NHK, I had a wonderful time explaining world events. Children differences in business practices. have more fun and find it easier to understand when the adults Forum 35 Project Aiming for employees to get satisfaction from their jobs, as a way of further energizing the entire organization Omiya: My instructions to employees are clear: if you’re going teaching them feel what they’re doing is worthwhile. to end up getting your hands dirty, it’s better not getting the order in the first place. Profit gained through questionable prac- The President exchanges ideas with employees tices will always lead to a loss in the long term. MHI has been We provide opportunities for direct participating in the United Nations Global Compact since communication so employees can better in their mid-thirties. feel a sense of doing something worthwhile. 2004, and we think it’s essential to act based on its ten To encourage communication among employees as a way of energizing the whole organization, MHI principles in the four areas of corruption prevention, human Omiya: In terms of feeling a sense of doing something worth- implements Forum 35, a project in which employees in their mid-thirties discuss a broad range of topics rights, labor and the environment. while, it’s also important that employees feel this way about relating to the company and to society. Meetings are also regularly convened between the project their daily work. Ikegami: Business and CSR both depend on employees, so members and the President, to enable the President to hear what people of this generation have to say. As a manufacturing company, we will there’s a need to create a work environment that’s both fulfilling continue communicating the importance and comfortable. and enjoyment of science and Omiya: To do Forum 35: occasions for employees in their private matters as well as the level of problem awareness technology to children. that, we need mid-thirties to freely discuss topics that shared by those of the same generation. Forum activities had Ikegami: What about “a bridge to the next generation,” the to energize our transcend departmental boundaries also included visits to other works (for example, to observe the third theme of your CSR Action Guidelines? What kind of activi- entire organi- Employees in their mid-thirties born during the second baby launching ceremony of a container carrier) and training camps. ties are you undertaking in this area? zation through boom constitute the majority of MHI’s employee demographics His report also included an introduction to a new bulletin board Omiya: One representative example is the science classes communication. and play a central role in the business operations of all launched via the company’s intranet and aimed at creating an offered by our works nationwide. Under this program, employ- As president, workplaces. MHI launched the Forum 35 project in July 2009 environment enabling easy exchange of ideas and information ees use products or technologies they developed to communi- I hold “town to promote communication among these employees as a way with Forum members from other works. In reference to cate the enjoyment of science to elementary and middle school meetings” on a of energizing the entire organization. The project provides energizing the organization, the representative said that in students. continuing basis a forum in which employees of this generation can freely addition to improving formal systems and mechanisms it was President Omiya visiting the new nursery at the discuss topics that transcend departmental boundaries. A also necessary to reform personal awareness, and he said he Ikegami: Employees go into the schools to teach, don’t they. at each of our Nagasaki Shipyard & Machinery Works distinguishing feature of Forum 35 activities is the emphasis on felt it was important to create low-profile mechanisms like Omiya: We’ve works. In 2009, the communication process itself, instead of seeking any Forum 35. He further announced that he would be handing been working on these meetings were organized into two parts: an informal specific outcomes. over the reins of the activities to new (second-year) members this continuously meeting with the general managers where they can express The project began with seven members from each and would continue to offer support as a “graduate” and work based on our their opinions directly to me, and a visit to the worksites to let department at the Head Office, followed by similar forums to widen the circle of activities to even more works. three-year plan me hear what employees have to say about their jobs. Last launched at the Kobe Shipyard & Machinery Works and the The representative of the Kobe Shipyard & Machinery Works, to support in- year we also launched Forum 35, a project in which employ- Nagasaki Shipyard & Machinery Works. Today the circle of where the Forum was launched in January 2010, presented the school science ees in their mid-thirties discuss corporate and social issues communication among employees continues to expand ideas expressed by members during the seven discussions education. In among themselves. I regularly exchange ideas with members steadily. held so far on themes such as compliance awareness, fiscal 2008 we of this group as well. In addition, in April 2010 we opened concerns as managers, and handing down technology. He also held classes at MHI’s first children’s nursery at the Nagasaki Shipyard & reported that a sense of unity had been nurtured through these A science class taught by an MHI employee 12 schools; in Machinery Works, a move taken to support employees in The President sends messages to Forum activities, creating an energized forum in which thoughts can be fiscal 2009, at 28 schools. About 2,700 children have partici- balancing their work and family life. members drawing upon their activity reports. shared, which has boosted member motivation. Members of pated to date, and they have told us how much they enjoyed it, Ikegami: Companies come in many shapes. MHI, I think, is As part of Forum 35, meetings are regularly held where the the Nagasaki Shipyard & Machinery Works, where the Forum some even commenting they would like to become engineers the kind of company where employees can get a real sense President and employees exchange ideas relating to the themes was only recently launched, spoke about their personal when they grow up. And in the coming years we’re planning they are helping to resolve social issues through their work. I and content of the discussions associated with Forum activities, aspirations toward specific future activities. further improvements to the program based on the feedback hope your employees will continue striving to provide safer and members can openly express their individual views. In response, President Omiya touched on his own and comments we’ve received from the children and teachers. and better products and services to enable sustained social The second such meeting was held in April 2010 and was experiences while offering advice and expressing his hopes Ikegami: Given how children in this country are increasingly development. attended by President Omiya and fifteen Forum 35 members for mid-thirties generation employees. The President noted moving away from the sciences, this is a very significant Omiya: We appreciate your sentiments. It’s true that many of each from the Head Office, Kobe Shipyard & Machinery Works that communication is the key element in daily operations as program for the future of Japan. our employees join MHI with high aspirations of serving society, and Nagasaki Shipyard & Machinery Works. The members well as for building relationships with those around us. He also Omiya: I’m determined to prevent Japan’s manufacturing and we will continue working together with these employees to were drawn from diverse departments, including marketing, said that self-development requires a strong awareness of prowess from eroding, or our foundations as a technology- engage in manufacturing as our way of contributing to the design, planning and administration, personnel, internal one’s job and knowledge of its position within the auditing, materials and equipment, and hospitals. After an oriented nation from being shaken, because of a move away global community. You can count on us. upstream-downstream process flow, as well as emulating the initial round of self-introductions, activity reports were strengths of others through communication. He also shared presented by representatives of each works and exchanges of how impressed he had been by the words of a member who ideas took place. said he had made life-long friends through the Forum 35 The representative from the Head Office reported that more activities. That alone, the President offered, was enough to than 20 wide-ranging discussions had been held since the prove the value of these activities. launch of the Forum, covering both work-related concerns and President, Mitsubishi Heavy Industries, Ltd. Journalist Hideaki Omiya Akira Ikegami

Dialogue the customers who use our products and services, but also our tasks that we deem to be necessary for humankind from a We aim to continue pursuing our aspiration to contribute investors and numerous shareholders, our business partners long-term perspective, even if it means having to overcome to the global community through manufacturing. (suppliers), people in the areas surrounding our works, and difficulties. We hope to take businesses that are absolutely President Hideaki Omiya recently discussed MHI’s CSR (corporate social responsibility) in respect to employees. We believe CSR equates to returning profit to all essential for the global community and make them commer- the future of the global community with journalist Akira Ikegami, who is highly regarded for his ability these stakeholders. Furthermore, 30 years ago, when MHI cially viable, and then return the profits to our stakeholders. to explain complicated issues in easy-to-understand terms. began developing and manufacturing wind turbines, quite a few people warned us against doing so because they projected no profit would come from that business. However, We take pride in being one of the few we have always been certain of the need to nurture businesses companies that can address the two Our aspiration is to contribute through mary social responsibility, we believe, is to contribute to the sus- that address the issues society faces, from a long-term major global concerns of energy and the our business activities to social tainable development of the global community through manu- perspective, instead of pursuing only short-term gains. environment. development. facturing. Our CI statement “Our Technologies, Your Tomorrow” Ikegami: Nowadays wind power is attracting attention as a Ikegami: “Close ties with the Earth” is the first of the three Ikegami: Today, the global community faces a multitude of expresses our aspiration to continue tackling the many issues countermeasure to global warming, but there was a time when themes of the MHI Group CSR Action Guidelines. With regard issues. Mr. Omiya, I would like to hear your views on how MHI that burden the global community. its significance went unnoticed. So rather than discarding to the Earth, global warming caused by increasing CO2 emis- intends to address these issues and how it will fulfill its social Ikegami: Yes—contributing solutions to the various social something as unprofitable in the near term, you’re saying that sions is a foremost concern. responsibility. issues on the planet by providing outstanding products and MHI has a social responsibility to take its time and develop Omiya: Global Omiya: In our services is an important element of CSR. businesses that will benefit the entire global community over warming is an corporate creed, Omiya: Of course, we think there’s more to CSR than just that. the long term. energy issue, MHI declares its Our stakeholders represent a diverse group of people: not only Omiya: We want to be a company that aspires to accomplish too. For genera- determination to tions humankind contribute to has been burn- society through ing vast quanti- its business ope- Profile Profile ties of fossil fuels rations. And we Hideaki Omiya Akira Ikegami to obtain energy. are playing a President, Mitsubishi Heavy Industries, Ltd. Journalist As a result, we Ohi Nuclear Power Station true role in solv- After joining the company in 1969, Hideaki Omiya was long involved in After joining NHK (Japan Broadcasting Corporation) in 1973, for 32 years face massive CO2 aircraft development, and in 1999 he was appointed Deputy General Akira Ikegami worked as a news reporter. Then, starting in 1994, for 11 ing environmen- Wind turbines (California, U.S.A.) Manager of the Nagoya Aerospace Systems Works. He subsequently years he served as a commentator on a weekly news program for children. emissions on the one hand and the need to prepare for the tal and energy served as Director, Executive Vice President and General Manager of the In 2005 he left NHK and went freelance. He has written many books, future depletion of fossil fuels on the other. At MHI we take Air-Conditioning & Refrigeration Systems Headquarters, and in April 2007 he including: Soodattanoka! Gendaishi (“So That’s What Modern History Is All issues by building social infrastructures such as power plants, was appointed Director and Senior Executive Vice President in charge of About!”) and Wakariyasuku ‘Tsutaeru’ Gijutsu (“The Art of ‘Conveying,’ In pride in being one of the few companies that can address industrial plants and public transportation systems. MHI’s pri- Production System Innovation Planning. He became President in April 2008. Easy-to-Understand Terms”). these issues of global scale. First, regarding the use of renew-

Ikegami: Is MHI making progress on reducing CO2 emissions such accidents never happen again. resulting from your own business activities? Ikegami: Learning from actual cases is certainly effective

CSR Report 2010 6

Dialogue internal audits. from science. Moreover, scientific thinking, including an Ikegami: What about employee education? understanding of the laws of physics, is the backbone of our Omiya: We conduct compliance education drawing upon past society. As a manufacturing company, we want to communi- cases, in a vein similar to the Accident Exhibit and Materials cate the importance and enjoyment of science and technol- Room I mentioned before. In educating our employees, we ogy to children. Our employees who serve as teachers also also apply the results of audits conducted by outside experts feel they are doing something worthwhile, and enjoying the and feedback received during such audits. experience, too. Ikegami: I’ve heard that, in general, seeking orders in develop- Ikegami: When I was working on a children’s news program at ing countries can easily lead to questionable conduct due to NHK, I had a wonderful time explaining world events. Children differences in business practices. have more fun and find it easier to understand when the adults Forum 35 Project Aiming for employees to get satisfaction from their jobs, as a way of further energizing the entire organization Omiya: My instructions to employees are clear: if you’re going teaching them feel what they’re doing is worthwhile. to end up getting your hands dirty, it’s better not getting the order in the first place. Profit gained through questionable prac- The President exchanges ideas with employees tices will always lead to a loss in the long term. MHI has been We provide opportunities for direct participating in the United Nations Global Compact since communication so employees can better in their mid-thirties. feel a sense of doing something worthwhile. 2004, and we think it’s essential to act based on its ten To encourage communication among employees as a way of energizing the whole organization, MHI principles in the four areas of corruption prevention, human Omiya: In terms of feeling a sense of doing something worth- implements Forum 35, a project in which employees in their mid-thirties discuss a broad range of topics rights, labor and the environment. while, it’s also important that employees feel this way about relating to the company and to society. Meetings are also regularly convened between the project their daily work. Ikegami: Business and CSR both depend on employees, so members and the President, to enable the President to hear what people of this generation have to say. As a manufacturing company, we will there’s a need to create a work environment that’s both fulfilling continue communicating the importance and comfortable. and enjoyment of science and Omiya: To do Forum 35: occasions for employees in their private matters as well as the level of problem awareness technology to children. that, we need mid-thirties to freely discuss topics that shared by those of the same generation. Forum activities had Ikegami: What about “a bridge to the next generation,” the to energize our transcend departmental boundaries also included visits to other works (for example, to observe the third theme of your CSR Action Guidelines? What kind of activi- entire organi- Employees in their mid-thirties born during the second baby launching ceremony of a container carrier) and training camps. ties are you undertaking in this area? zation through boom constitute the majority of MHI’s employee demographics His report also included an introduction to a new bulletin board Omiya: One representative example is the science classes communication. and play a central role in the business operations of all launched via the company’s intranet and aimed at creating an offered by our works nationwide. Under this program, employ- As president, workplaces. MHI launched the Forum 35 project in July 2009 environment enabling easy exchange of ideas and information ees use products or technologies they developed to communi- I hold “town to promote communication among these employees as a way with Forum members from other works. In reference to cate the enjoyment of science to elementary and middle school meetings” on a of energizing the entire organization. The project provides energizing the organization, the representative said that in students. continuing basis a forum in which employees of this generation can freely addition to improving formal systems and mechanisms it was President Omiya visiting the new nursery at the discuss topics that transcend departmental boundaries. A also necessary to reform personal awareness, and he said he Ikegami: Employees go into the schools to teach, don’t they. at each of our Nagasaki Shipyard & Machinery Works distinguishing feature of Forum 35 activities is the emphasis on felt it was important to create low-profile mechanisms like Omiya: We’ve works. In 2009, the communication process itself, instead of seeking any Forum 35. He further announced that he would be handing been working on these meetings were organized into two parts: an informal specific outcomes. over the reins of the activities to new (second-year) members this continuously meeting with the general managers where they can express The project began with seven members from each and would continue to offer support as a “graduate” and work based on our their opinions directly to me, and a visit to the worksites to let department at the Head Office, followed by similar forums to widen the circle of activities to even more works. three-year plan me hear what employees have to say about their jobs. Last launched at the Kobe Shipyard & Machinery Works and the The representative of the Kobe Shipyard & Machinery Works, to support in- year we also launched Forum 35, a project in which employ- Nagasaki Shipyard & Machinery Works. Today the circle of where the Forum was launched in January 2010, presented the school science ees in their mid-thirties discuss corporate and social issues communication among employees continues to expand ideas expressed by members during the seven discussions education. In among themselves. I regularly exchange ideas with members steadily. held so far on themes such as compliance awareness, fiscal 2008 we of this group as well. In addition, in April 2010 we opened concerns as managers, and handing down technology. He also held classes at MHI’s first children’s nursery at the Nagasaki Shipyard & reported that a sense of unity had been nurtured through these A science class taught by an MHI employee 12 schools; in Machinery Works, a move taken to support employees in The President sends messages to Forum activities, creating an energized forum in which thoughts can be fiscal 2009, at 28 schools. About 2,700 children have partici- balancing their work and family life. members drawing upon their activity reports. shared, which has boosted member motivation. Members of pated to date, and they have told us how much they enjoyed it, Ikegami: Companies come in many shapes. MHI, I think, is As part of Forum 35, meetings are regularly held where the the Nagasaki Shipyard & Machinery Works, where the Forum some even commenting they would like to become engineers the kind of company where employees can get a real sense President and employees exchange ideas relating to the themes was only recently launched, spoke about their personal when they grow up. And in the coming years we’re planning they are helping to resolve social issues through their work. I and content of the discussions associated with Forum activities, aspirations toward specific future activities. further improvements to the program based on the feedback hope your employees will continue striving to provide safer and members can openly express their individual views. In response, President Omiya touched on his own and comments we’ve received from the children and teachers. and better products and services to enable sustained social The second such meeting was held in April 2010 and was experiences while offering advice and expressing his hopes Ikegami: Given how children in this country are increasingly development. attended by President Omiya and fifteen Forum 35 members for mid-thirties generation employees. The President noted moving away from the sciences, this is a very significant Omiya: We appreciate your sentiments. It’s true that many of each from the Head Office, Kobe Shipyard & Machinery Works that communication is the key element in daily operations as program for the future of Japan. our employees join MHI with high aspirations of serving society, and Nagasaki Shipyard & Machinery Works. The members well as for building relationships with those around us. He also Omiya: I’m determined to prevent Japan’s manufacturing and we will continue working together with these employees to were drawn from diverse departments, including marketing, said that self-development requires a strong awareness of prowess from eroding, or our foundations as a technology- engage in manufacturing as our way of contributing to the design, planning and administration, personnel, internal one’s job and knowledge of its position within the oriented nation from being shaken, because of a move away global community. You can count on us. auditing, materials and equipment, and hospitals. After an upstream-downstream process flow, as well as emulating the initial round of self-introductions, activity reports were strengths of others through communication. He also shared presented by representatives of each works and exchanges of how impressed he had been by the words of a member who ideas took place. said he had made life-long friends through the Forum 35 The representative from the Head Office reported that more activities. That alone, the President offered, was enough to than 20 wide-ranging discussions had been held since the prove the value of these activities. launch of the Forum, covering both work-related concerns and President, Mitsubishi Heavy Industries, Ltd. Journalist Hideaki Omiya Akira Ikegami

Dialogue

you actually remove CO2? tion and global warming but also food shortages caused by a emissions by approximately 8.5 million tons per year. Similarly,

U.S. and Germany of equipment capable of capturing several tures desalina- products of ours, the total reduction in CO2 emissions exceeds Ikegami: How about compliance? As a company that builds

Ikegami: Is MHI making progress on reducing CO2 emissions such accidents never happen again. resulting from your own business activities? Ikegami: Learning from actual cases is certainly effective

Dialogue

7 Mitsubishi Heavy Industries, Ltd. President, Mitsubishi Heavy Industries, Ltd. Journalist Hideaki Omiya Akira Ikegami

Dialogue the customers who use our products and services, but also our tasks that we deem to be necessary for humankind from a We aim to continue pursuing our aspiration to contribute investors and numerous shareholders, our business partners long-term perspective, even if it means having to overcome to the global community through manufacturing. (suppliers), people in the areas surrounding our works, and difficulties. We hope to take businesses that are absolutely employees. We believe CSR equates to returning profit to all President Hideaki Omiya recently discussed MHI’s CSR (corporate social responsibility) in respect to essential for the global community and make them commer- the future of the global community with journalist Akira Ikegami, who is highly regarded for his ability these stakeholders. Furthermore, 30 years ago, when MHI cially viable, and then return the profits to our stakeholders. to explain complicated issues in easy-to-understand terms. began developing and manufacturing wind turbines, quite a few people warned us against doing so because they projected no profit would come from that business. However, We take pride in being one of the few we have always been certain of the need to nurture businesses companies that can address the two Our aspiration is to contribute through mary social responsibility, we believe, is to contribute to the sus- that address the issues society faces, from a long-term major global concerns of energy and the our business activities to social tainable development of the global community through manu- perspective, instead of pursuing only short-term gains. environment. development. facturing. Our CI statement “Our Technologies, Your Tomorrow” Ikegami: Nowadays wind power is attracting attention as a Ikegami: “Close ties with the Earth” is the first of the three Ikegami: Today, the global community faces a multitude of expresses our aspiration to continue tackling the many issues countermeasure to global warming, but there was a time when themes of the MHI Group CSR Action Guidelines. With regard issues. Mr. Omiya, I would like to hear your views on how MHI that burden the global community. its significance went unnoticed. So rather than discarding to the Earth, global warming caused by increasing CO2 emis- intends to address these issues and how it will fulfill its social Ikegami: Yes—contributing solutions to the various social something as unprofitable in the near term, you’re saying that sions is a foremost concern. responsibility. issues on the planet by providing outstanding products and MHI has a social responsibility to take its time and develop Omiya: Global Omiya: In our services is an important element of CSR. businesses that will benefit the entire global community over warming is an corporate creed, Omiya: Of course, we think there’s more to CSR than just that. the long term. energy issue, MHI declares its Our stakeholders represent a diverse group of people: not only Omiya: We want to be a company that aspires to accomplish too. For genera- determination to tions humankind contribute to has been burn- society through ing vast quanti- its business ope- Profile Profile ties of fossil fuels rations. And we Hideaki Omiya Akira Ikegami to obtain energy. are playing a President, Mitsubishi Heavy Industries, Ltd. Journalist As a result, we Ohi Nuclear Power Station true role in solv- After joining the company in 1969, Hideaki Omiya was long involved in After joining NHK (Japan Broadcasting Corporation) in 1973, for 32 years face massive CO2 aircraft development, and in 1999 he was appointed Deputy General Akira Ikegami worked as a news reporter. Then, starting in 1994, for 11 ing environmen- Wind turbines (California, U.S.A.) Manager of the Nagoya Aerospace Systems Works. He subsequently years he served as a commentator on a weekly news program for children. emissions on the one hand and the need to prepare for the tal and energy served as Director, Executive Vice President and General Manager of the In 2005 he left NHK and went freelance. He has written many books, future depletion of fossil fuels on the other. At MHI we take Air-Conditioning & Refrigeration Systems Headquarters, and in April 2007 he including: Soodattanoka! Gendaishi (“So That’s What Modern History Is All issues by building social infrastructures such as power plants, was appointed Director and Senior Executive Vice President in charge of About!”) and Wakariyasuku ‘Tsutaeru’ Gijutsu (“The Art of ‘Conveying,’ In pride in being one of the few companies that can address industrial plants and public transportation systems. MHI’s pri- Production System Innovation Planning. He became President in April 2008. Easy-to-Understand Terms”). these issues of global scale. First, regarding the use of renew-

Ikegami: Is MHI making progress on reducing CO2 emissions such accidents never happen again. resulting from your own business activities? Ikegami: Learning from actual cases is certainly effective

Dialogue internal audits. from science. Moreover, scientific thinking, including an Ikegami: What about employee education? understanding of the laws of physics, is the backbone of our Omiya: We conduct compliance education drawing upon past society. As a manufacturing company, we want to communi- cases, in a vein similar to the Accident Exhibit and Materials cate the importance and enjoyment of science and technol- Room I mentioned before. In educating our employees, we ogy to children. Our employees who serve as teachers also also apply the results of audits conducted by outside experts feel they are doing something worthwhile, and enjoying the and feedback received during such audits. experience, too. Ikegami: I’ve heard that, in general, seeking orders in develop- Ikegami: When I was working on a children’s news program at ing countries can easily lead to questionable conduct due to NHK, I had a wonderful time explaining world events. Children differences in business practices. have more fun and find it easier to understand when the adults Forum 35 Project Aiming for employees to get satisfaction from their jobs, as a way of further energizing the entire organization Omiya: My instructions to employees are clear: if you’re going teaching them feel what they’re doing is worthwhile. to end up getting your hands dirty, it’s better not getting the order in the first place. Profit gained through questionable prac- The President exchanges ideas with employees tices will always lead to a loss in the long term. MHI has been We provide opportunities for direct participating in the United Nations Global Compact since communication so employees can better in their mid-thirties. feel a sense of doing something worthwhile. 2004, and we think it’s essential to act based on its ten To encourage communication among employees as a way of energizing the whole organization, MHI principles in the four areas of corruption prevention, human Omiya: In terms of feeling a sense of doing something worth- implements Forum 35, a project in which employees in their mid-thirties discuss a broad range of topics rights, labor and the environment. while, it’s also important that employees feel this way about relating to the company and to society. Meetings are also regularly convened between the project their daily work. Ikegami: Business and CSR both depend on employees, so members and the President, to enable the President to hear what people of this generation have to say. As a manufacturing company, we will there’s a need to create a work environment that’s both fulfilling continue communicating the importance and comfortable. and enjoyment of science and Omiya: To do Forum 35: occasions for employees in their private matters as well as the level of problem awareness technology to children. that, we need mid-thirties to freely discuss topics that shared by those of the same generation. Forum activities had Ikegami: What about “a bridge to the next generation,” the to energize our transcend departmental boundaries also included visits to other works (for example, to observe the third theme of your CSR Action Guidelines? What kind of activi- entire organi- Employees in their mid-thirties born during the second baby launching ceremony of a container carrier) and training camps. ties are you undertaking in this area? zation through boom constitute the majority of MHI’s employee demographics His report also included an introduction to a new bulletin board Omiya: One representative example is the science classes communication. and play a central role in the business operations of all launched via the company’s intranet and aimed at creating an offered by our works nationwide. Under this program, employ- As president, workplaces. MHI launched the Forum 35 project in July 2009 environment enabling easy exchange of ideas and information ees use products or technologies they developed to communi- I hold “town to promote communication among these employees as a way with Forum members from other works. In reference to cate the enjoyment of science to elementary and middle school meetings” on a of energizing the entire organization. The project provides energizing the organization, the representative said that in students. continuing basis a forum in which employees of this generation can freely addition to improving formal systems and mechanisms it was President Omiya visiting the new nursery at the discuss topics that transcend departmental boundaries. A also necessary to reform personal awareness, and he said he Ikegami: Employees go into the schools to teach, don’t they. at each of our Nagasaki Shipyard & Machinery Works distinguishing feature of Forum 35 activities is the emphasis on felt it was important to create low-profile mechanisms like Omiya: We’ve works. In 2009, the communication process itself, instead of seeking any Forum 35. He further announced that he would be handing been working on these meetings were organized into two parts: an informal specific outcomes. over the reins of the activities to new (second-year) members this continuously meeting with the general managers where they can express The project began with seven members from each and would continue to offer support as a “graduate” and work based on our their opinions directly to me, and a visit to the worksites to let department at the Head Office, followed by similar forums to widen the circle of activities to even more works. three-year plan me hear what employees have to say about their jobs. Last launched at the Kobe Shipyard & Machinery Works and the The representative of the Kobe Shipyard & Machinery Works, to support in- year we also launched Forum 35, a project in which employ- Nagasaki Shipyard & Machinery Works. Today the circle of where the Forum was launched in January 2010, presented the school science ees in their mid-thirties discuss corporate and social issues communication among employees continues to expand ideas expressed by members during the seven discussions education. In among themselves. I regularly exchange ideas with members steadily. held so far on themes such as compliance awareness, fiscal 2008 we of this group as well. In addition, in April 2010 we opened concerns as managers, and handing down technology. He also held classes at MHI’s first children’s nursery at the Nagasaki Shipyard & reported that a sense of unity had been nurtured through these A science class taught by an MHI employee 12 schools; in Machinery Works, a move taken to support employees in The President sends messages to Forum activities, creating an energized forum in which thoughts can be fiscal 2009, at 28 schools. About 2,700 children have partici- balancing their work and family life. members drawing upon their activity reports. shared, which has boosted member motivation. Members of pated to date, and they have told us how much they enjoyed it, Ikegami: Companies come in many shapes. MHI, I think, is As part of Forum 35, meetings are regularly held where the the Nagasaki Shipyard & Machinery Works, where the Forum some even commenting they would like to become engineers the kind of company where employees can get a real sense President and employees exchange ideas relating to the themes was only recently launched, spoke about their personal when they grow up. And in the coming years we’re planning they are helping to resolve social issues through their work. I and content of the discussions associated with Forum activities, aspirations toward specific future activities. further improvements to the program based on the feedback hope your employees will continue striving to provide safer and members can openly express their individual views. In response, President Omiya touched on his own and comments we’ve received from the children and teachers. and better products and services to enable sustained social The second such meeting was held in April 2010 and was experiences while offering advice and expressing his hopes Ikegami: Given how children in this country are increasingly development. attended by President Omiya and fifteen Forum 35 members for mid-thirties generation employees. The President noted moving away from the sciences, this is a very significant Omiya: We appreciate your sentiments. It’s true that many of each from the Head Office, Kobe Shipyard & Machinery Works that communication is the key element in daily operations as program for the future of Japan. our employees join MHI with high aspirations of serving society, and Nagasaki Shipyard & Machinery Works. The members well as for building relationships with those around us. He also Omiya: I’m determined to prevent Japan’s manufacturing and we will continue working together with these employees to were drawn from diverse departments, including marketing, said that self-development requires a strong awareness of prowess from eroding, or our foundations as a technology- engage in manufacturing as our way of contributing to the design, planning and administration, personnel, internal one’s job and knowledge of its position within the oriented nation from being shaken, because of a move away global community. You can count on us. auditing, materials and equipment, and hospitals. After an upstream-downstream process flow, as well as emulating the initial round of self-introductions, activity reports were strengths of others through communication. He also shared presented by representatives of each works and exchanges of how impressed he had been by the words of a member who ideas took place. said he had made life-long friends through the Forum 35 The representative from the Head Office reported that more activities. That alone, the President offered, was enough to than 20 wide-ranging discussions had been held since the prove the value of these activities. launch of the Forum, covering both work-related concerns and

CSR Report 2010 8 Overview of the MHI Group

Company Profile Operating income (consolidated) Businesses and Products

Trade Name: Mitsubishi Heavy Industries, Ltd. (Billions of yen) 150 Sea vessels •Cruise ships •LNG carriers •LPG carriers •Oil carriers •Container ships •Pure car and truck carriers Head Office: 16-5, Konan 2-chome, Minato-ku, Tokyo 136.0 Shipbuilding & Ocean Development •Ferries •Defense ships •Patrol vessels 120 Ocean development •Submersible research vehicles •Oceanographic research ships President: Hideaki Omiya 108.9 105.8 Shipbuilding & Ocean Foundation: July 7, 1884 90 Development Headquarters 70.9 65.6 Establishment: January 11, 1950 60 Power Systems Thermal power generation plants and other facilities •Combined cycle power plants •Steam turbines •Gas turbines Capital: 265.6 billion yen (as of March 31, 2010) •Boilers •Diesel engines •Desalination plants •Lithium-ion rechargeable batteries •Fuel cells 30 Power Systems Headquarters Employees: 34,139 (as of March 31, 2010) Nuclear Energy Systems Renewable energy •Wind turbine plants •Water turbine plants •Geothermal power plants •Photovoltaic systems 0 •Biomass power plants •Solar thermal power plants 2005 2006 2007 2008 2009 (FY) Headquarters Nuclear power plants and other facilities •PWR nuclear power plants •Advanced reactor plants •Nuclear fuel cycle plants

Net income (consolidated) Environmental and chemical •Fertilizer plants •Methanol plants •Petrochemical plants •Flue gas desulfurization systems CI* Statement Machinery & Steel Structures •Flue gas CO2 recovery plants •Wastes treatment equipment (Billions of yen) Transportation systems •New transportation systems •Toll collection equipment (ETC, etc.) 80 Machinery & Steel Structures Headquarters Machineries •Compressor and turbine •Iron and steel manufacturing machinery •Rubber and tire machinery Our Technologies, Your Tomorrow 61.3 •Cranes for steel plants and quayside containers •Accelerator •Medical equipment •Printing machinery •Paper converting 60 machinery •Plastic injection molding machine •Food and packaging machinery 48.8 This CI statement represents our intention to Basic Facilities & Steel Structures for Infrastructures •Steel bridges •Stacks •Mechanical parking systems 40 “continuously provide an assured future where people 29.8 24.2 Aircraft •Fixed-wing aircraft •Helicopters •Subsystems of commercial aircraft •Aeroengines can live safe, secure and enriched lives through Aerospace 20 14.1 Aerospace Headquarters Space equipment •H-IIA launch vehicle •H-IIB launch vehicle •H-II Transfer Vehicle (HTV) •Rocket engines technologies that can excite people and passion as a Guided weapon systems •Missiles •Torpedoes 0 manufacturer for the sustainability of the earth and 2005 2006 2007 2008 2009 (FY) humankind.” General Machinery & Engines •Engines for power generation •Agricultural engines •Industrial engines •Marine engines Research and development expenditures Special Vehicle Power Train •Hybrid drive systems •Inverters and controllers •Transmissions •Drive axles •Lithium-ion rechargeable battery pack CI statement logo (consolidated) General Machinery & Material handling equipment •Forklift trucks •Heavy cargo carriers Special Vehicle Turbochargers •Turbochargers (Billions of yen) Headquarters •Earthmoving and grading machinery •Hydraulic equipment 150 Construction machinery 129.2 Special vehicles •Tanks •Armored personnel carriers 120 106.3 107.9 100.7 101.3 Others Air-Conditioners and related products •Air-conditioners (for residential, commercial) •Automotive thermal systems 90 •Transport refrigeration units •Centrifugal chillers Air-Conditioning & Refrigeration * CI: Corporate Identity 60 Systems Headquarters Industrial machinery •Machine tools •Precision machinery products (precision cutting tools, engine valves, power transmissions) Machine Tool Division 30

Orders received (consolidated) 0 2005 2006 2007 2008 2009 (FY) (Billions of yen) Operating Bases and Employees by Region Total number of employees (consolidated basis): 67,669 (as of March 31, 2010) 4,000 3,715.2 FY2009 net sales by industry segment (consolidated) 3,274.7 3,268.7 (Billions of yen) 3,000 2,942.0 Others Shipbuilding & Ocean Development Japan 2,476.2 57.4 230.6 Head Office and 2,000 Europe Domestic Offices: 9 Mass and Medium-Lot Representative Offices: 2 Research & Development Manufactured Machinery Power Systems Centers: 6 1,000 544.3 1,066.1 Group Companies: 29 Headquarters & Divisions: 9 Employees: 2,286 Works: 9 Domestic Group 0 1 2005 2006 2007 2008 2009 (FY) Aerospace Machinery & Steel Structures Companies: 126* 500.2 542.0 Employees of Domestic North America Middle East Group Companies: 56,696*2 Group Companies: 24 Representative Offices: 2 Employees: 2,497 Net sales (consolidated) Group Companies: 3 FY2009 net sales by region (consolidated) Employees: 24 Asia (Billions of yen) (Billions of yen) Overseas Offices and 4,000 Representative Offices: 6 Other 148.9 3,375.6 3,068.5 3,203.0 Group Companies: 43 3,000 2,940.8 Africa 2,792.1 The Middle East 170.7 Employees: 5,228 Oceania and others Representative Offices: 1 Group Companies: 2 2,000 Central and Group Companies: 3 Employees: 37 South America Japan 1,462.1 South America 184.7 Employees: 1 Group Companies: 8 Employees: 900 1,000 Europe 223.3

0 2005 2006 2007 2008 2009 (FY) North America 360.1 Asia 390.7 *1 Includes Mitsubishi Heavy Industries, Ltd. *2 Comprises 22,557 employees, the total from Group companies with that from Mitsubishi Heavy Industries, Ltd.

9 Mitsubishi Heavy Industries, Ltd. Company Profile Operating income (consolidated) Businesses and Products

CSR Report 2010 10 15

CSR of the MHI Group Aiming to win the solid trust of society through the advancement of CSR The underlying objective of the MHI Group is, as a manufacturer, to carry out CSR through production activities; and we are working to achieve that goal under our CSR Action Guidelines and CSR Action Plan.

Outline of Representative CSR Participating in neighborhood and scholarship programs in Activities cleanups September 2009 at the Hanoi Institute MHI Group CSR Action Guidelines (formulated July 2007) Since fiscal 2008, MHI has participated of Technology, from which students For “close ties with the Earth” in Hometown Cleanup Meetings, a na- graduate before becoming employed In order to ensure a secure future for the Earth, we will establish and maintain: • Greening of company facilities (e.g., wall greening, symbolic greening of the factory) tionwide cleanup campaign hosted by by the company. • All-hands environmental activities with the Mt. Fuji Club to contribute to local Close ties with the Earth employees (e.g., recommendation of per- communities and raise employee sonal energy-saving declaration by Group awareness of environmental protection Safeguard an abundantly green Earth through environmental technologies and employees, recommendation of eco- environmental awareness; commuting, volunteer participation in and community contribution. Company Forest Creation Program) In fiscal 2009, 5,073 employees For “close ties with Society” from MHI works and 62 Group compa- Close ties with Society • Reinforcing community contribution nies participated in the event and car- Commemorative photo after delivery of photovoltaic Build a relationship of trust with society through proactive participation activities (one event per year by each Group ried out neighborhood cleanup activities facility specifications in society and trustworthy actions; company at home and overseas) during the entire month of October. • Providing support for emerging and developing countries with MHI products Promoting communication with the local community through A bridge to the next Generation • Strengthening information dissemination of MHI environmental technologies and employee environmental Contribute to the cultivation of human resources who can shoulder responsibility in the next generation products advertisements through technologies that can realize dreams. For “a bridge to the next Generation” MHI inaugurated an advertisement pro- • Sending employees to schools (e.g., duction program for environmental science classes at local elementary schools) technology and products to improve • Manufacturing classes at MHI facilities (e.g., local community understanding of our learning about manufacturing at MHI Cleanup activity at Ganryujima including employees Promoting CSR through and to allocate our earnings generated capable of strategically and compre- works, enhancing exhibition facilities) from the Shimonoseki Shipyard & Machinery Works product lines and businesses as well as manufacturing as an innovative through the appropriate provision of hensively conducting activities in such our environmental efforts and thereby partner to society these products to every stakeholder areas as compliance, environmental Examples of Representative Photovoltaic facility donation reinforce relationships of trust. The MHI Group established manufac- associated with our business activities. protection, human rights and labor CSR Activities and endowment of chair at a In fiscal 2008, the first year of the turing as the core of its business as an relations. Opening Mitsubishi Wind Turbine university in Vietnam program, it was implemented at three innovative partner to society (see p. 1) Continuously improving CSR In July 2007, the company formu- View Park at Kanazawa Plant, MHI Aerospace Vietnam Co., Ltd. sites: Nagasaki, Shimonoseki and the that provides products that improve through PDCA cycles lated the MHI Group CSR Action Yokohama Machinery Works (MHIVA), a Group aerospace parts Hiroshima/Mihara area and received social infrastructure and assist custom- To fulfill its social responsibilities, MHI Guidelines with three basic vectors: Amid rising concern for energy and en- manufacturing company in Hanoi, the the Newspaper Advertising Runners-up ers in reducing their environmental set up a CSR Committee, chaired by Close ties with the Earth, Close ties with vironmental issues across society, the capital of Vietnam, contracts Japanese Prize in the Advertisers’ Planning impact. the President, and a CSR Promotion Society, A bridge to the next Yokohama Machinery Works opened language training for local staff of the Category organized by the Japan In our CSR initiatives, our primary Department, with the latter handling Generation. We subsequently devel- Mitsubishi Wind Turbine View Park at company to DOWACEN, a neighboring Newspaper Publishers & Editors aim is to minimize environmental loads related office duties from October oped our CSR Action Plan (see p. 25) in its Kanazawa Plant in October 2009. Japanese language school. Association. emanating from our production activities 2006. A system was thus inaugurated April 2008 and have since worked to The park covers 5,600 m2 and In September 2009, MHI decided In fiscal 2009, 30 young employees constantly improve each activity overlooks the wind turbine of the works. to donate MHI-brand photovoltaic facili- of the works and Group companies in through the application of PDCA cycles. We constructed a gentle hill using ties to the school as a pilot initiative to the Nagoya area formed a working MHI Group involvement with society Then in June 2008, the company waste soil generated at the works, provide support for emerging and de- group. The group completed four ad- formulated representative CSR planted a variety of trees, and installed veloping counties with MHI products, vertisements, highlighting the ways that activities based on the themes in the 3-kW photovoltaic facilities. one of our representative CSR activi- MHI products protect the environment MHI Group guidelines for cultivating stronger CSR The works uses the park as a place ties. Installation is scheduled to be under the theme, “Earth friendly tech- Production Activities awareness group-wide and is imple- where people can observe wind and completed in September 2010. The fa- nologies born in Nagoya.” Dividends, Labor menting these activities in every photovoltaic power being generated in cility will serve as a power source for MHI views the program as an effec- share price, Retained earnings Shareholders interest (capital investment, Value division, headquarters, works and a casual, natural setting. It is also the classroom lighting and so forth, elimi- tive means of raising employee CSR & R&D investment, risk Customers Capital Profit allocation, Expansion of Group company. stopping point for works tours and an nating the need to suspend classes in awareness and therefore plans to imple- Investors countermeasures) sense of achievement customer benefit through valuation through product onsite learning opportunity for children. the event of a power failure. ment the program in the Kansai and differentiation Employees at the works can also visit To contribute to industrial develop- Kanto areas starting from fiscal 2010. Materials Sales functions Employees the park for a refreshing interlude. ment in Vietnam, MHI endowed a chair Profit allocation Profit allocation

Business Ofﬁces Partners Sales “Earth friendly technologies born in Nagoya” Job creation, Companies (Suppliers) minimization of environmental load, local Tax payment, provision of products contributions supporting the world’s infrastructure as well as CSR Committee Huge wind turbine seen from the park Legal ecological, economic compliance Local and energy needs Communities

Laws and Japanese Society, Regulations Global Society

2009 Chunichi Shimbun Advertising Grand Prizes—General Paper category “Chunichi Shimbun Advertising Solar panels installed in the park Prizes Selected by Readers, Category Prize”

11 Mitsubishi Heavy Industries, Ltd. 15

Laws and Japanese Society, Regulations Global Society

2009 Chunichi Shimbun Advertising Grand Prizes—General Paper category “Chunichi Shimbun Advertising Solar panels installed in the park Prizes Selected by Readers, Category Prize”

CSR Report 2010 12 the world. The company has supplied a large volume of major nology that does not use welding material. equipment for PWR power plants, such as containment vessels In the construction stage, we strive to eliminate human er- Close ties with the Earth and steam generators, to customers in the U.S., Europe and ror by improving the efficiency of on-site works by, for example, Safeguard an abundantly green Earth through China. We command the top share (85%) of the export of this employing the method of installing the top dome (the upper part environmental technologies and environmental awareness equipment among Japanese manufacturers. of the reactor containment vessel) as a single unit and using In addition, MHI was chosen as a core company for the modules prefabricated in the factories. next-generation fast breeder reactor (FBR) development pro- Method for installing the gram in Japan and is also involved in all of the processes at top dome as a single unit the Rokkasho reprocessing plant. Consequently, we are mak- We lift the hemispherical upper part of the reactor containment ing a major contribution to the establishment of the nuclear vessel (diameter: 40 m; height: 20 fuel cycle. m; weight: over 500 tons) as one unit, using a super-large crane, *4 The volume of reduced CO2 emissions (equivalent to coal-ﬁred power) achieved in 24 PWR power plants in Japan is 80 million tons. and install it on the top of the cy- lindrical part. This shortens the construction period. Fivefold walls for a nuclear power plant supported by MHI technologies —Contributing to safe, secure operation, from In the maintenance stage for plants in operation, MHI helps design to construction and maintenance boost the operating rate of power plants through scheduled Extensive safety measures are undertaken in nuclear power preventive maintenance activities (check, inspection, repair and plants. replacement work) in collaboration with electric power compa- One such measure is defense in depth. Radioactive materi- nies. Concretely, the company conducts periodic inspections als are safely contained to prevent leakage by installing fivefold as required under the law and re- walls consisting of a pellet containing uranium fuel, a cladding places major components, such Special Feature 1 tube to seal the pellets, a reactor pressure vessel, reactor con- as reactor internals and steam tainment vessel, and reactor containment building. generators of plants that have op- Nuclear power plant reduces CO2 emissions erated for a long time, upon con- Fivefold wall sealing in radioactive materials firmation with customers. —for safe, secure operation at an improved MHI also utilizes IT to implement the overall digitalization of operating rate First wall: advanced control and protection With the planned construction of new nuclear power plants across the world to address the two global Fuel pellet systems, which were introduced concerns of energy and the environment, safety improvements are absolutely required. in newly constructed plants as Second wall: MHI recognizes that one of its greatest social responsibilities as an integrated nuclear plant supplier involved in Fuel cladding tube well as existing power plants. the entire process of pressurized water reactor (PWR) power plants, from design to manufacture, construction As a result of those initiatives, and maintenance, is to ensure plant safety while boosting operating rates. Third wall: the Sendai Nuclear Power Plant Reactor pressure vessel All-in-one-piece replacement Unit 1 of Kyushu Electric Power work of reactor internals Co., Inc. achieved the world’s All-in-one-piece replacement work Fourth wall: Nuclear power generation highest operating rate of all 430 of reactor internals, which sup- CO2 emissions by power source Reactor containment vessel Combustion of power generation fuel (direct) ports fuel assembly and the guid- —Addressing both environmental and g-CO2/kWh (transmission end) plants across the world in 2009. resource challenges Facilities; operations (indirect) ing and positioning of control rods. 1,000 975 Fifth wall: In fact, four PWR power plants The company has conducted this Driven by the economic growth of developing countries and 88 Source: Websites of Agency for Natural Resources and Energy Reactor containment building constructed by MHI were among replacement operation in four other factors, global energy demand is expected to rapidly ex- and the Federation of Electric Power Companies of Japan the top ten plants*5. plants in Japan. MHI is the only 1 800 company in the world with such a pand, reaching 1.5 times the 2006 level in 2030* . At the same 742 Training workers to support track record of replacement. 38 time, global warming associated with CO2 emissions released MHI contributes to the safe, secure operation of plants, these technologies is also impor- 608 by the burning of fossil fuels such as oil, coal and natural gas 600 drawing upon its integrated capabilities, including fivefold tant. MHI conducts a practical, systematic simulator-based is worsening as public concern intensifies over the depletion of 130 519 walls, in all of the areas of training program at the Maintenance Training Center of our those same fossil fuels. 111 a nuclear power plant. manufacturing sites. This training leads to work being done Under these circumstances, interest is turning to the 400 887 First, in the design quickly and more securely while at the same time protecting wind, solar and other renewable energies that emit no CO 704 2 emissions during lifecycle stage, design is jointly worker safety, lowering exposure to radiation and reducing 2 478 and the scheduled construction of new nuclear power plants. CO reviewed by all divisions the frequency and duration of 200 408 Nuclear power generation has particularly attracted attention concerned from its initial plant shutdowns. as power generation facilities produce zero CO emissions 53 2 22–25 11 15 29 stage. The overall designs The company also focuses in the power generating process, thereby addressing the chal- 0 of hundreds of thousands on research and development Coal-fired Oil-fired LNG-fired LNG-fired Nuclear Hydro Geothermal Solar Wind lenge of growing energy demand as well as environmental (steam) (combined) of parts are reviewed in to undergird these technologies. and resource-related concerns. Currently, about 430 nuclear detail by all divisions, in- 3D CAD Design R&D initiatives focus on such power plants are operating across the world with a total elec- cluding basic design, de- areas as technologies for regular tricity generation capacity of 370 GWe*2 per year. Capacity is An integrated nuclear plant supplier tailed design, manufacturing, quality assurance, construction monitoring, inspection and repair, expected to grow as high as 810 GWe in 2030*3. In Japan, —A wealth of experience and an outstanding and maintenance, using 3D drawings to visualize parts from ev- and technologies and systems approximately one-third of electric power is generated by track record in all 24 plants in Japan ery angle. This process facilitates safe, high-precision product for processing radioactive wastes nuclear power plants. The Japanese government has adopted MHI has accumulated advanced technologies and a wealth of design. as well as technologies for decom- a policy calling for about 40% or more of electric power to be experience as an integrated nuclear plant supplier, involved in In the manufacturing stage, we employ advanced facilities missioning reactors (disassembling generated by nuclear plants in the future. the entire PWR power plant business from design to manufac- and manufacturing technologies. MHI manufactures high- and decontamination) to safely dis- Maintenance Training Center *1 Source: IEA (International Energy Agency) “World Energy Outlook 2009” ture, construction and maintenance. The company has supplied precision products, for instance, by using a large-scale, multi- continue plant operations. These Facility for demonstrating and *2 GWe (gigawatts of electricity) = 1 billion watts training on core internals replace- *3 Source: Forecast released by the IAEA (International Atomic Energy Agency) in all 24 of the PWR power plants constructed in Japan. It has also task machine tool named “Super Mirror,” which facilitates activities reflect our commitment ment work 4 September 2009 contributed to a reduction in CO2 emissions* and the stable high-precision processing of a huge containment vessel weigh- to improve safety across the entire supply of electric power in the country. ing 400 tons while holding it in a standing position to avoid lifecycle of a nuclear power plant. MHI’s technology in this field is widely recognized around material deformation as well as an electron beam welding tech- *5 Source: Survey by NW (Nucleonics Week)

13 Mitsubishi Heavy Industries, Ltd. the world. The company has supplied a large volume of major nology that does not use welding material. equipment for PWR power plants, such as containment vessels In the construction stage, we strive to eliminate human er- Close ties with the Earth and steam generators, to customers in the U.S., Europe and ror by improving the efficiency of on-site works by, for example, Safeguard an abundantly green Earth through China. We command the top share (85%) of the export of this employing the method of installing the top dome (the upper part environmental technologies and environmental awareness equipment among Japanese manufacturers. of the reactor containment vessel) as a single unit and using In addition, MHI was chosen as a core company for the modules prefabricated in the factories. next-generation fast breeder reactor (FBR) development pro- Method for installing the gram in Japan and is also involved in all of the processes at top dome as a single unit the Rokkasho reprocessing plant. Consequently, we are mak- We lift the hemispherical upper part of the reactor containment ing a major contribution to the establishment of the nuclear vessel (diameter: 40 m; height: 20 fuel cycle. m; weight: over 500 tons) as one unit, using a super-large crane, *4 The volume of reduced CO2 emissions (equivalent to coal-ﬁred power) achieved in 24 PWR power plants in Japan is 80 million tons. and install it on the top of the cy- lindrical part. This shortens the construction period. Fivefold walls for a nuclear power plant supported by MHI technologies —Contributing to safe, secure operation, from In the maintenance stage for plants in operation, MHI helps design to construction and maintenance boost the operating rate of power plants through scheduled Extensive safety measures are undertaken in nuclear power preventive maintenance activities (check, inspection, repair and plants. replacement work) in collaboration with electric power compa- One such measure is defense in depth. Radioactive materi- nies. Concretely, the company conducts periodic inspections als are safely contained to prevent leakage by installing fivefold as required under the law and re- walls consisting of a pellet containing uranium fuel, a cladding places major components, such Special Feature 1 tube to seal the pellets, a reactor pressure vessel, reactor con- as reactor internals and steam tainment vessel, and reactor containment building. generators of plants that have op- Nuclear power plant reduces CO2 emissions erated for a long time, upon con- Fivefold wall sealing in radioactive materials firmation with customers. —for safe, secure operation at an improved MHI also utilizes IT to implement the overall digitalization of operating rate First wall: advanced control and protection With the planned construction of new nuclear power plants across the world to address the two global Fuel pellet systems, which were introduced concerns of energy and the environment, safety improvements are absolutely required. in newly constructed plants as Second wall: MHI recognizes that one of its greatest social responsibilities as an integrated nuclear plant supplier involved in Fuel cladding tube well as existing power plants. the entire process of pressurized water reactor (PWR) power plants, from design to manufacture, construction As a result of those initiatives, and maintenance, is to ensure plant safety while boosting operating rates. Third wall: the Sendai Nuclear Power Plant Reactor pressure vessel All-in-one-piece replacement Unit 1 of Kyushu Electric Power work of reactor internals Co., Inc. achieved the world’s All-in-one-piece replacement work Fourth wall: Nuclear power generation highest operating rate of all 430 of reactor internals, which sup- CO2 emissions by power source Reactor containment vessel Combustion of power generation fuel (direct) ports fuel assembly and the guid- —Addressing both environmental and g-CO2/kWh (transmission end) plants across the world in 2009. resource challenges Facilities; operations (indirect) ing and positioning of control rods. 1,000 975 Fifth wall: In fact, four PWR power plants The company has conducted this Driven by the economic growth of developing countries and 88 Source: Websites of Agency for Natural Resources and Energy Reactor containment building constructed by MHI were among replacement operation in four other factors, global energy demand is expected to rapidly ex- and the Federation of Electric Power Companies of Japan the top ten plants*5. plants in Japan. MHI is the only 1 800 company in the world with such a pand, reaching 1.5 times the 2006 level in 2030* . At the same 742 Training workers to support track record of replacement. 38 time, global warming associated with CO2 emissions released MHI contributes to the safe, secure operation of plants, these technologies is also impor- 608 by the burning of fossil fuels such as oil, coal and natural gas 600 drawing upon its integrated capabilities, including fivefold tant. MHI conducts a practical, systematic simulator-based is worsening as public concern intensifies over the depletion of 130 519 walls, in all of the areas of training program at the Maintenance Training Center of our those same fossil fuels. 111 a nuclear power plant. manufacturing sites. This training leads to work being done Under these circumstances, interest is turning to the 400 887 First, in the design quickly and more securely while at the same time protecting wind, solar and other renewable energies that emit no CO 704 2 emissions during lifecycle stage, design is jointly worker safety, lowering exposure to radiation and reducing 2 478 and the scheduled construction of new nuclear power plants. CO reviewed by all divisions the frequency and duration of 200 408 Nuclear power generation has particularly attracted attention concerned from its initial plant shutdowns. as power generation facilities produce zero CO emissions 53 2 22–25 11 15 29 stage. The overall designs The company also focuses in the power generating process, thereby addressing the chal- 0 of hundreds of thousands on research and development Coal-fired Oil-fired LNG-fired LNG-fired Nuclear Hydro Geothermal Solar Wind lenge of growing energy demand as well as environmental (steam) (combined) of parts are reviewed in to undergird these technologies. and resource-related concerns. Currently, about 430 nuclear detail by all divisions, in- 3D CAD Design R&D initiatives focus on such power plants are operating across the world with a total elec- cluding basic design, de- areas as technologies for regular tricity generation capacity of 370 GWe*2 per year. Capacity is An integrated nuclear plant supplier tailed design, manufacturing, quality assurance, construction monitoring, inspection and repair, expected to grow as high as 810 GWe in 2030*3. In Japan, —A wealth of experience and an outstanding and maintenance, using 3D drawings to visualize parts from ev- and technologies and systems approximately one-third of electric power is generated by track record in all 24 plants in Japan ery angle. This process facilitates safe, high-precision product for processing radioactive wastes nuclear power plants. The Japanese government has adopted MHI has accumulated advanced technologies and a wealth of design. as well as technologies for decom- a policy calling for about 40% or more of electric power to be experience as an integrated nuclear plant supplier, involved in In the manufacturing stage, we employ advanced facilities missioning reactors (disassembling generated by nuclear plants in the future. the entire PWR power plant business from design to manufac- and manufacturing technologies. MHI manufactures high- and decontamination) to safely dis- Maintenance Training Center *1 Source: IEA (International Energy Agency) “World Energy Outlook 2009” ture, construction and maintenance. The company has supplied precision products, for instance, by using a large-scale, multi- continue plant operations. These Facility for demonstrating and *2 GWe (gigawatts of electricity) = 1 billion watts training on core internals replace- *3 Source: Forecast released by the IAEA (International Atomic Energy Agency) in all 24 of the PWR power plants constructed in Japan. It has also task machine tool named “Super Mirror,” which facilitates activities reflect our commitment ment work 4 September 2009 contributed to a reduction in CO2 emissions* and the stable high-precision processing of a huge containment vessel weigh- to improve safety across the entire supply of electric power in the country. ing 400 tons while holding it in a standing position to avoid lifecycle of a nuclear power plant. MHI’s technology in this field is widely recognized around material deformation as well as an electron beam welding tech- *5 Source: Survey by NW (Nucleonics Week)

CSR Report 2010 14 Close ties with the Earth

Responding to society’s trust and expectations In response to MHI is preparing to construct the world’s largest scale PWR these worldwide de- Units 1, 2 power plant for the U.S. market (US-APWR), based on orders mands, MHI is building CSR activities reported by our employees from U.S. electric power companies, Dominion Resources, Inc. up its manufacturing and Luminant Generation Company. Mitsubishi Nuclear Energy capacity. In 2008, MHI Units 3, 4 Systems, Inc. (MNES), an MHI subsidiary in the U.S. was quali- expanded this capacity Local government and other organizations have recently been increasing their support for the “Company Forest fied for membership in the Nuclear Energy Institute of the U.S. for steam generators, Company (NEI) in NEI’s “nuclear plant designer” category in 2009. MNES a major piece of equip- Creation Program,” which is intended to prevent global warming and preserve biodiversity. MHI promotes forest Forest conservation in various regions in collaboration with their respective local governments. The company also views became the first wholly-owned subsidiary of a Japanese com- ment for PWR power Comanche Peak Power Station of U.S. Luminant such activities as opportunities for employees to learn about environmental issues and give back to society. pany to qualify for NEI membership in this category. plants, in order to Generation Company (Rendering of Units 3 and 4) This US-APWR for the U.S. market is a U.S. compliant ver- manufacture a higher sion of the advanced PWR power plant (APWR) that the com- volume of larger-scale steam generators. Construction of a General Machinery & Special Vehicle Headquarters Air-Conditioning & Refrigeration Systems Headquarters pany developed for Tsuruga Power Station Units 3 and 4 of plant dedicated to steam turbines for nuclear power generation 127 employees worked together to thin a forest in 132 employees and family members planted the Japan Atomic Power Company. The company also plans is being completed in 2010. In addition, construction of a plant March and August 900 trees (14 species) in the Company Forest to apply for a European safety review for nuclear plants—EUR for containment vessels and reactor internals is scheduled for General Machinery & Special Vehicle Headquarters signed a memoran- The Air-Conditioning & Refrigeration Systems Headquarters has (European Utilities Requirements) of EU-APWR (European com- completion in 2011. dum of agreement with the Kanagawa prefectural government to participated in the Company Forest Creation Program organized by the pliant version of APWR). We will continue to contribute to the resolution of energy participate in the Kanagawa Water Source Forest Creation Project in Mie prefectural government. In fiscal 2009, we joined a planting event MHI and the French company AREVA jointly developed and environmental problems at a global scale as an integrated February 2009. A total of 127 employees took part in preserving carried out at Kihoku-cho, Mie Prefecture on November 28. A total of ATMEA1™, a mid-sized nuclear power plant for the East nuclear plant supplier that fulfills the trust and expectations of forestlands in Matsudamachi, Kanagawa Prefecture in March and 132 MHI employees and family members planted Japanese maple, European, Middle Eastern and Asian markets. We also teamed stakeholders worldwide through improved nuclear power plant August 2009. mountain cherry and other species of trees up with the Japanese government and electric power compa- safety and higher operating rates. Having received many comments from (14 species; 900 trees). We will be involved nies to accept orders from Vietnam. participants, such as “I had a great in weeding and other maintenance and experience and was able to understand management activities related to the thinning,’ we will aggressively pursue this program and plan to actively engage in effort with due consideration for safety. other events in this town that contribute to Expectations held toward MHI the local community. We trust MHI to consistently meet our requirements. Michio Sato Nobuyuki Kato The experience of EDF Group is based on more than 60 years of existence. 72% of electricity generated by EDF on its 127 GWe installed capac- Labor and Safety Section General Affairs Section General Affairs Department General Affairs Department ity is nuclear, making it the largest nuclear power generation producer in the world. General Machinery & Air-Conditioning & Refrigeration In the coming decade, EDF will build with its partners, the equivalent of 10 new nuclear generat- Special Vehicle Headquarters Systems Headquarters ing units in France or abroad and continue the renovation of existing units to extend their life, with the support of highly experienced manufacturers through a spirit of long term cooperation. In this context, EDF has placed in 2004 an initial order to Mitsubishi Heavy Industries Ltd. (MHI), of 6 RSGs (Replacement Steam Generators) dedicated to two 900MWe French nuclear units, placed Thinning forests to allow for passages Carefully planting each seedling of sunlight that facilitates the growth of subsequent orders to the consortium led by MHI for another 6 RSGs on 2008, and 3RSGs on 2010. grasses and trees As the Inspection-Department Representative in Japan, I would like to point out some reasons of such award to MHI:: high production capacity, long experience in manufacturing and mainte- “Eco-commuting” refers to traveling to the company by bicycle or on foot, or using public transport instead of nance, competitiveness, commitment for the respect of deadlines, customer-focus, thoroughness Eco- driving a car or riding a motorcycle. Central and local governments are actively promoting eco-commuting. MHI of risk analysis, appropriate application of nuclear regulation, transparency and good relationship commuting sites participating in this campaign include the Nagasaki Shipyard & Machinery Works, Kobe Shipyard & with French Safety Authorities. Machinery Works, Yokohama Machinery Works and Nagoya Guidance & Propulsion Systems Works. Meanwhile, we have also identified areas for improvement, such as inspection technology, traceability of engineering and manufacturing operation, transportation conditions, and adapta- Nagasaki Shipyard & Machinery Works Kobe Shipyard & Machinery Works Mr. H. Le Maut tion to new French regulations. We have confidence in the ability of MHI and its partners to meet Inspection Six-day campaign involving 9,402 cars and Ongoing efforts throughout ﬁscal 2009 brought the those requirements. EDF (Electricite de France S.A.) motorcycles total of participants in the campaign to 854 employees

The Nagasaki Municipal Government has At the Kobe Shipyard & Machinery Works, organized the “No Private Car Driving” we have been demonstrating our shared campaign since July 2008 and the commitment to the “No Private Car Driving Products and technologies contribute to the realization of a low-carbon society Nagasaki Shipyard & Machinery Works Day” campaign with its organizer, the Kobe MHI contributes to the realization of a low-carbon society through the efficient use of energies in such fields as participated from its very beginning. In City Government, by conducting our own nuclear power, thermal power, renewable energy, energy management, and transportation. 2009, the three-day campaign was held in program to encourage employee commut- July and December, and at the Nagasaki ing by public transit on Wednesdays and Nuclear Thermal power Renewable Energy Transportation Shipyard & Machinery Works, 7,170 cars paydays since April 2009. We carried out power plants generation plants energy management systems and 2,232 motorcycles were involved. We the program for 51 days in fiscal 2009 with also encourage employees to eco- 854 participants. The program offers • PWR nuclear power plants • Combined cycle • Wind power • Lithium-ion rechargeable • MRJ*1 • Eco-ships Kazuhiko Nakanose Rihoko Kakizaki commute at times other than these participants the benefit of refreshing their • Advanced reactor plants power plants • Geothermal battery • LRT*2 • HSST*3 Labor and Management Group Labor and Welfare Section • Electric bus • Heat pump campaign days and many of them do. General Affairs Department minds and bodies at dinner with their General Affairs Department • Nuclear fuel cycle plants • Steam turbines • Solar • APM*4 Nagasaki Shipyard & Kobe Shipyard & • Gas turbines • Boilers • Solar thermal • Eco-house • Desalination Machinery Works colleagues as they return home. Machinery Works • Alternative fuel • Hydro Number of participants in the “No Private • Biomass • Hybrid forklift Car Driving Day” campaign for fiscal 2009 (persons) Accumulated total Number of participants 1,000 854 800 604 600 330 400 151 PWR nuclear power plant Gas turbine Wind turbine Lithium-ion rechargeable battery MRJ 200 179 274 250 *1 MRJ: Mitsubishi Regional Jet *2 LRT: Light Rail Transit *3 HSST: High Speed Surface Transport *4 APM: Automated People Mover 0 151 Employees traveling to the Koyagi Plant Holding up flags highlighting the April– July– October– January– Every Wednesday, employees use on a commuter boat campaign June September December March public transit instead of their cars

15 Mitsubishi Heavy Industries, Ltd. Close ties with the Earth

CSR Report 2010 16 to physically weakened, aged patients. which the patient lay had Nevertheless, only 25% of cancer patients in Japan un- to be rotated, and as the Close ties with Society dergo radiotherapy. In contrast, 66% of patients receive this original position of the Build a relationship of trust with society through treatment in the U.S. Recently, expectations have been rising for beam was no longer on proactive participation in the society and trustworthy actions. such methods as stereotactic radiotherapy, which achieves ac- target, time was needed curate, pinpoint irradiation targeting of the tumor, and intensity- to make the necessary modulated radiotherapy, which modulates the intensity of X-ray adjustment. This placed

doses by providing fine control of multiple beams to irradiate the considerable strain on Accomplishing high-quality manufacturing tumor according to its shape. As further advances are made the patient as well as the through ongoing discussions to the machinery, radiotherapy is expected to become widely medical staff. accepted in Japan as well. To ensure effective treatment of the patient, however, medical staff had to spend a long time adjusting targeting. Medical staff wanted to accurately limit irradiation to only the cancerous Targeting a highly advanced radiotherapy cells to avoid damaging normal cells through excessive irradia- machine that achieves quick, simple, tion. pinpoint irradiation To realize those hopes and reduce impact on the patient “We want to help those who are suffering from cancer.” Based required developing a new, faster and simpler technology for on that desire, we began research and development on radio- highly accurate pinpoint irradiation. This was the starting point therapy machines in 2001 of our development project for a as part of our New Business new machine that eventually led Development Project named team members to develop three “Frontier 21” for creating the innovative technologies. MHI of the 21st century. We First, the irradiation system believed that the small-sized and imaging device were com- Special Feature 2 accelerating tube* technology pactly mounted onto a rigid O-ring accumulated by MHI would be shaped mechanical structure. This Advancing to the frontiers of cancer treatment applicable for such machines. enables rotation of the various de- However, we had never vices instead of repositioning the Developing a radiotherapy machine that reduces before set foot into the field of patient’s bed, thereby reducing medical equipment. Judging the strain on the patient while mini- the burden on patients that success would depend mizing shifts in positioning. MHI entered into the medical equipment field in the hope of helping people who are suffering from cancer. on the cooperation of experts, Second, a gimbaled X-ray ir- Our contribution centers on reducing the burden on patients and medical staff through collaboration with an we sought the assistance of radiation head with tilt and pan ro- academic institution, culminating in the development of the MHI-TM2000*, a state-of-the-art radiotherapy Kyoto University and gained Carefully confirming the accuracy of pinpoint irradiation using an anatomical model tation functions, the first of its kind machine that achieves quick, simple, pinpoint irradiation of cancer cell clusters. the participation of Professor in the world, was incorporated to * Product name: Linear accelerator system MHI-TM2000 (Medical equipment approval number: 22000BZX00028000) Masahiro Hiraoka, an authority on radiation oncology, as our enable automatic fine adjustment of the irradiation direction. advisor. This mechanism made it possible to automatically correct even After we began researching the current state of radio- minute shifts caused by mechanical deflection, thus maintaining Growing population of cancer patients In this context, throughout the world calls are being heard therapy under this collaborative framework, several problems mechanical irradiation accuracy within a range of ±0.1 mm. across the world for early detection of cancer through higher examination rates arose. Among them, we focused on the fact that conventional Third, the number of imaging devices was increased from According to a survey by the Ministry of Health, Labor and and for more effective treatment methods. machines required significant time and effort to maintain the the conventional single pair to two pairs. This not only enables Welfare, in 2008 the number of cancer patients in Japan was Currently, there are three methods for treating cancer: precise positioning required for accurately irradiating X-rays 3-dimensional information on the patient’s physical situation, up 95,000 from 2005 and up 238,000 from 2002. Since 1981, resection of the affected area by surgical operation; chemo- to the affected area. In particular, when changing the angle of but also achieves automatic positioning based on dual-image cancer has been the top-ranking cause of death among the therapy using anticancer agents; and radiotherapy using X-rays irradiation (non-coplanar irradiation) was required, the bed on collation, enabling faster, more accurate irradiation targeting Japanese, accounting for nearly a third of all deaths. to prevent cancer cells from dividing. Compared to surgery, * A device that accelerates an electron beam to nearly the speed of light. Used in of the affected area. The number of cancer patients is also rising overseas. The radiotherapy permits maintenance of normal body functions sterilization units and other applications. International Agency for Research on Cancer has reported that and form and provides such merits as sustained quality of life cancer will become the top cause of death worldwide in 2010. before and after treatment, painless treatment, and applicability

Features of the MHI-TM2000 radiotherapy machine

Number of cancer patients Number of cancer deaths by site Enhanced irradiation accuracy + Enhanced positioning precision Stomach Colon Rectum Liver Lung (Thousand) (Thousand) = Less unnecessary irradiation to normal cells and reduced burden on the patient Breast Uterus Prostate Other Accurate Fast Secure 1,600 350 Organ at risk 1,518 Gimbaled Small-sized Coplanar irradiation 300 X-ray head accelerator 1,500 1,423 250

1,400 200 Imaging system 1,280 150 1,300 1,270 (two pairs installed)

100 1,200 50

0 0 Couch (6-DOF) O-ring The mechanical structure itself 1999 2002 2005 2008 (Year) 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2008 (Year) shaped Cancer lesion Non-coplanar rotates and skews rather than Source: Ministry of Health, Labor and Welfare, “Overview of Patient Survey Results” Source: Compiled from statistical data released by the National Cancer Center structure irradiation the patient’s couch

17 Mitsubishi Heavy Industries, Ltd. to physically weakened, aged patients. which the patient lay had Nevertheless, only 25% of cancer patients in Japan un- to be rotated, and as the Close ties with Society dergo radiotherapy. In contrast, 66% of patients receive this original position of the Build a relationship of trust with society through treatment in the U.S. Recently, expectations have been rising for beam was no longer on proactive participation in the society and trustworthy actions. such methods as stereotactic radiotherapy, which achieves ac- target, time was needed curate, pinpoint irradiation targeting of the tumor, and intensity- to make the necessary modulated radiotherapy, which modulates the intensity of X-ray adjustment. This placed

Features of the MHI-TM2000 radiotherapy machine

1,400 200 Imaging system 1,280 150 1,300 1,270 (two pairs installed)

100 1,200 50

CSR Report 2010 18 Close ties with Society

A machine that not only reduces the burden Contributing to cancer treatment worldwide of treatment but is also innovative in terms of through an integrated system of development, safety measures manufacturing, sales, maintenance and support CSR activities reported by our employees Reducing the stress on patients and medical staff was not our MHI launched sales of only focus in developing this new radiotherapy machine. We the MHI-TM2000 in were thoroughly committed to securing operational quality January 2008, after (performance) and safety, the most critical aspects of medical obtaining approval by Digging for Tamachi Building Co., Ltd., a member of the MHI Group, invited 30 children from the Minato Ward Shiba Nursery equipment. the U.S. Food and Drug sweet School for a sweet potato digging event at the rooftop garden of its Dai Ichi Tamachi Building, a rental building For example, duplicate sets of sensors and computerized Administration (FDA), potatoes in front of Japan Railway’s Tamachi Station. controls for X-ray irradiation were incorporated to configure the European CE mark, mechanisms that would continue to operate normally even in and manufacturing and the event one set fails. We also devised every safety measure marketing approval Tamachi Building Co., Ltd. Visiting the engineers of BrainLAB in Germany conceivable, including a system of seven countermeasures all based on the Japanese Nursery school children enjoy learning about the importance of greenery for preventing overradiation. Pharmaceutical Law Furthermore, we installed a new dedicated inspection and from the Ministry of Health, Labor and Welfare. Our most recent event was held with the goal of offering a fun environmental learning opportunity for testing facility within the manufacturing factory that can actually Two machines are currently being used for clinical nursery school children. We exercised significant care to make the event an enjoyable experience, generate X-rays for inspection and testing purposes. We treatment at the Institute of Biomedical Research and such as by using children’s hats as an example to explain the effects of greening building rooftops. conducted rigorous quality checks using anatomical models to Innovation in Hyogo Prefecture and at the Joetsu General The garden was filled with the cheers and laughter of children. We plan to hold a strawberry picking event in the future. ensure pinpoint accuracy of X-ray irradiation. Hospital in Niigata Prefecture. Installation work is in progress This is how the MHI-TM2000 was completed. The product for two more machines. Overseas, one unit is being used for has enabled highly accurate pinpoint irradiation quickly, simply, research at UZ Brussel (Universitair Ziekenhuis Brussel) in safely and securely. This innovative radiotherapy machine Belgium. In addition to Japan and Europe, we are planning to lessens unnecessary irradiation of normal cells while reducing launch sales in the United States from 2010, and we have tied Toyomi Miyake Chie Sato Customer Service General Affairs Group the time and effort spent by patients and medical staff. up with BrainLAB of Germany to handle marketing in the larger Engineering Section General Affairs Department Engineering Department Tamachi Building Co., Ltd. In recognition of the innovations accomplished through overseas markets. We will also reinforce our maintenance and Tamachi Building Co., Ltd. MHI’s collaboration with Kyoto University, in June 2008 the support systems. MHI-TM2000 received the Industry-Academia-Government Looking ahead, we intend to more actively exchange C o l l a b o r a t i o n information with experts in cancer treatment and other medical Contribution Award fields to raise recognition of the machine and promote its from the Ministry of features toward expanding its use, while reflecting feedback Economy, Industry from experts and on-site medical staff in future product and Trade. development and sales support systems. In October 2006, we Children enjoy digging sweet potatoes Explaining the effects of rooftop greening to children completed a plant dedicated to the production of MHI-TM2000 in Hiroshima, Japan where MHI’s Industrial Machinery Business, Technology & Solutions Division is located. Under an integrated system that encompasses develop- Hometown Launched in 2007, Hometown Cleanup Meetings are held for four weeks around October each year as cleanup ment, manufacturing, sales, maintenance and support, we will activities established using feedback from companies, NPOs and residents of regional communities. Cleanup A total of 5,073 employees of MHI works and 62 Group companies participated in these activities in fiscal 2009. open up new avenues in cancer treatment as our contribution Meetings Uncompromising pursuit of precision in the to patients and medical staff throughout the world. manufacturing process Machine Tool Division Nagoya Aerospace Systems Works 42 participants including family members collected 2,046 participants from Group companies collected Expectations held toward MHI 306 ﬁsh of foreign origin and 20 bags of garbage. 69 bags of garbage I hope MHI’s entry will revitalize the entire medical equipment industry. The Machine Tools Division sponsors the The Nagoya Aerospace Systems Works Lake Biwa Cleanup and Non-indigenous held its Third Voluntary Cleanup Around the Over the past twenty years, radiotherapy has evolved from 2-dimensional to 3-dimensional treatment based on the stereoscopic identification Fish Extermination Activity. On October 17, Oye Factory on October 23, 2009. We of affected areas. However, to achieve advanced irradiation treatment that can sustain millimeter-level precision, 4-dimensional treatment will 2009, 42 participants collected 306 fish of asked employees to participate through foreign origin and twenty 45-liter bags of company broadcasts the day before and on be necessary to track down and irradiate cancer, which is constantly on the move. MHI has garbage. The large number of foreign fish the day of the activity, leading to 2,046 developed the world’s first radiotherapy machine with functions to irradiate cancer while tracking it, collected led to a renewed awareness of employees from the Nagoya Aerospace a completely innovative model of medical equipment that enabled us to crack open the door to a the importance of protecting the natural Systems Works and Group companies new paradigm. environment and the ecosystem. In fiscal joining the cleanup. During lunch break, Even with such technological advances already accomplished, several years will still be required 2010, we plan to hold regional cleanup Hisaki Shimizu participants collected a total of 37 bags of Kazunori Suwa for the machine’s effectiveness to be recognized and for it to begin generating profit. I hope MHI will activities in June and the Lake Biwa General Affairs Section flammable garbage, 17 bags of nonflam- Security Management Section Cleanup and Non-indigenous Fish General Affairs Department mable garbage and 15 bags of cans and General Affairs Department maintain a long-term perspective for developing this machine into the top brand sought by every Machine Tools Division Nagoya Aerospace medical expert in the world. Extermination Activity in October. PET bottles (all in 45-liter bags). Systems Works MHI’s courageous entry into medical equipment also represented a significant step for revitaliz- ing Japan’s medical equipment industry as a whole. I have always lamented the fact that technologies possessed by companies in Japan, a manufacturing giant, were not being sufficiently applied to medical equipment, a field that symbolizes the cutting edge of technology. This forced the nation to depend on imported medical equipment for examination and treatment. If Japan were to Masahiro Hiraoka M.D. seriously apply its technological prowess to medical equipment, we would be able to deliver Professor and Chairman treatment that is more appropriate to Japanese needs, which would in turn benefit many more Department of Radiation Oncology and Image-Applied Therapy patients who are suffering around the world. I hope MHI’s entry will encourage Japanese compa- Kyoto University Graduate School of Medicine Children also participate using A commemorative group photograph Working in large numbers to efficiently Separating collected garbage into nies’ efforts in the medical equipment field to lead to a major leap forward. easy-to-bait hooks after exterminating non-indigenous fish collect and separate garbage smaller categories

19 Mitsubishi Heavy Industries, Ltd. Close ties with Society

CSR Report 2010 20 A bridge to the next

Science Class at the Nagoya Guidance & Propulsion many people are involved in flying a rocket?” and “Where does Systems Works the sky end and space begin?” An experiment is also con- Generation ducted using liquid nitrogen instead of the ultra low-temperature Contribute to the cultivation of human resources who can shoulder responsibility Nurturing the dream of space development liquid propellant used to fuel rockets. in the next generation through technologies that can realize dreams. through rockets Children responded with strong interest, their eyes gleam- Introducing the mechanical Children taking a close look at the robotic fish The Nagoya Guidance & Propulsion Systems Works began of- ing at visual images of the takeoff and voices crying out in construction and performance fering classes on rockets in November 2008 at elementary amazement at seeing a rose and rubber ball instantly freeze of rockets “Putt Putt steamship” schools in Komaki City, Aichi Prefecture, one year ahead of the during experiments. Many have subsequently expressed their race in a portable pool FY2009 goal of conducting science classes, using the teaching desire to participate in this field themselves or work with rock- materials created by re- ets when they grow up. spective works, under the Three-year Plan. To nurture children’s dreams of rocket technology and space development, engineers from the works served as teachers to speak about space and intro- Experiment on freezing instant noodles using liquid nitrogen Introducing the mechanism duced the mechanical of air-conditioners using a construction and performance of rockets. The class received demonstration unit enthusiastic support from both children and teachers, and Komaki City has requested the works to conduct the classes in all of the city’s elementary schools. Special Feature 3 To respond to the request, about 20 employees at the works volunteered through open application and organized Explaining how rubber loses its elasticity at ultra-low temperatures using a Our nationwide works participate in children’s themselves into teams of three to share teaching responsibili- rubber ball ties and create a system for visiting each school. They con- science classes ducted classes in 15 elementary schools in Komaki City and 2 We hope Japan will continue to be a nation that produces human resources who contribute to the future of the schools in Odate City in Akita Prefecture where the works’ global community through science and technology. rocket testing grounds are located, for more than 1,600 partici- Expectations held toward MHI MHI conducts science classes throughout Japan to communicate to children the fascination of manufacturing pants including parents. as well as science and technology. The Delivery Lecture & Experiment for Rocket is a Surprise and excitement broadens 45-minute program. To attract children’s interest, the class children’s interest in the sciences. starts with an explanation of the size and structure of rockets Japan could lose its competitive edge in List of science classes held in fiscal 2009 and the role of satellites using models and projectors. A video We were able to familiarize ourselves with Number of international society Division, Headquarters, is then shown to explain the rocket from launch to separation rockets, which we had only seen on TV. Target Grades Participants Content and Themes Works It has been pointed out that in Japan, children are having fewer (persons)*1 of the satellite. Children are quizzed on such topics as “How Experiments conducted by people with opportunities to get involved in the sciences over recent years Paper & Printing Machinery Mihara Saizaki Elementary School Experiment and workshop using LED expert knowledge generate surprise and Division / Transportation Systems and Sagiura Elementary School 44 lights, tour of the linear motorcar factory excitement for children and broadens and are showing less interest in and understanding of the & Advanced Technology Division (Hiroshima Pref.) and the Operating Control Center Industrial Machinery Business, Hiroshima Minamikanon Elementary their interest in the sciences. I sincerely subject. This has raised concerns that Japan might lose its 258 Science class using wakamaru Technology & Solutions Division School hope MHI will continue holding classes Industrial Machinery Business, competitive edge in technologies, which has been the very Hiroshima Minamikanon Elementary Technology & Solutions Division; 124 Science class using robotic fish that touch children’s hearts. School source of its growth. MHI Solution Technologies Co., Ltd. General Machinery & Special 10 elementary schools in the Mechanical construction of MHI believes that it is its responsibility as a manufacturer to 19 Vehicle Headquarters Sagamihara City region forklift trucks Ms. Misako Okumura address this issue by cultivating human resources who can Air-Conditioning & Mechanical construction of Delivery Lecture & Experiment for Rocket also Teacher, Komaki Komeno Elementary School Kiyosu Nishibiwajima Elementary Refrigeration Systems 86 air-conditioners, science class School (Aichi Pref.) contribute to the global community through science and Headquarters using wakamaru held at the Busan Japanese School in Korea Ritto Hayama Higashi Elementary technology. The company accordingly formulated a Three-year Machine Tool Division 61*2 Science class using School (Shiga Pref.) wakamaru In March 2010, employees at the Busan Office of Mitsubishi Plan to Support Science Education at Schools in April 2008. Nagasaki Shipyard & Elementary School Attached to Nagasaki Global warming and wind 70 Heavy Industries Korea conducted a Delivery Lecture & Since then, employees at our nationwide works have been Machinery Works University Faculty of Education power generation mechanism Kobe Shipyard & Machinery Kobe Wada Misaki Elementary Experiment for Rocket at the Busan Japanese School. visiting elementary, junior high and high schools in neighboring 95 Science class using wakamaru Works School Educational material developed by the Nagoya Guidance CSR activities reported by Shimonoseki Shipyard & Shimonoseki Enoura Elementary Workshop on “Putt Putt regions to teach science classes. 70 Machinery Works School (Yamaguchi Pref.) steamship” & Propulsion Systems Works was used and arranged accord- In fiscal 2009, MHI offered classes on the theme of discov- our employees Tour of demonstration wind Yokohama Machinery Yokohama Namiki-chuo Elementary ing to local needs for this class. Also introduced were plans to 55 turbine, wind power generation ering how scientific knowledge learned at school benefits Works School experiment using models launch a Korean satellite on the H-IIA launch vehicle manu- society, by using products and technologies developed by each Takasago Iho Minami Elementary Science class using , Nagoya Guidance & Propulsion Systems Works Takasago Machinery Works 115 wakamaru factured and launched by MHI. works. Over 2,700 children and students have participated. School (Hyogo Pref.) global warming Ichinomiya High School, Okazaki Lecture on the definition of space and Afterward, the principal of the school expressed his ap- We satisﬁed children’s curiosity through High School, Okazaki Kita High rocket theory, tour of rocket factory, Outline of the three-year plan to support science Nagoya Aerospace Systems School, Toyota Nishi High School, 88 question-and-answer session (held as preciation by saying the class stimulated children’s imagina- countless creative efforts. Works Zuiryo High School, Asahigaoka part of the Super Science High School education at schools High School, Jishukan High project of the Ministry of Education, tion and interest in rockets and hearing the words directly School (Aichi Pref.) Culture, Sports, Science and Technology) Countless creative efforts went into • Implementation of science classes for elementary schools by all works, using tools such as wakamaru spoken from an expert (Understanding the needs of schools and gaining the expertise for conducting science classes) Odate Yamase Elementary School, Hayaguchi making the class one in which we 2008 • Development of science class teaching materials at individual works Elementary School, (Akita Prefecture), Komaki perspective provided a ourselves could also share in the (Individual works create teaching materials for science classes based on their own products and Momogaoka Elementary School, Kitasato technologies) Elementary School, Ajioka Elementary School, valuable experience. children’s laughter, surprise and en- Hikarigaoka Elementary School, Koki Elementary Nagoya Guidance & Mechanical construction of School, Honjo Elementary School, Komakihara 1,666*2 Many children asked us joyment. Still gripped by excitement, • Implementation of science classes for elementary schools by all works based on their respective Propulsion Systems Works Elementary School, Oshiro Elementary School, rockets products and technologies Komaki Elementary School, Shino-oka to conduct a second many children came up to us after the 2009 (Conducting science classes using the teaching materials created by respective works) Elementary School, Komeno Elementary School, class to ask questions, which as- • Brushing up science class teaching materials Isshiki Elementary School, Mitsubuchi class on rockets. (Improving content based on the responses of children and feedback from schools) Elementary School, Muranaka Elementary sured me that we had been able to School, Sue Elementary School (Aichi Prefecture) satisfy their curiosity. Mitsubishi Heavy Industries Mechanical construction of • Continued implementation of science classes for elementary schools based on the products and Busan Japanese School, Korea 42 technologies of respective works Korea, Ltd., Busan Office rockets Delivery Lecture & Experiment for Rocket Hiroyuki Aihara 2010 (Conducting science classes after reflecting on achievements and areas in need of improvement in Total 32 classes 2,793 FY2009 classes) in Korea Liquid Rocket Engine Design Section • Consideration toward conducting science classes for junior high schools *1 Total numbers are provided for classes held in multiple schools Engine and Control Equipment Engineering Department (Considering teaching materials and presentation methods for operating science classes in junior high schools) *2 Includes neighboring nursery school children and parents Nagoya Guidance & Propulsion Systems Works

21 Mitsubishi Heavy Industries, Ltd. A bridge to the next

CSR Report 2010 22 Exchange of ideas at the General Machinery & Science Class at the Shimonoseki Shipyard & Science Class at the Industrial Machinery Business, Technology Special Vehicle Headquarters Machinery Works & Solutions Division and MHI Solution Technologies Co., Ltd.

Using the “Putt Putt steamship” to teach the Stimulating interest in machines and controls Seeking to further enhance the principles of physics using robotic fish On November 18, 2009, we conducted a science class for On November 24, 2009, a science class was held for 124 science classes On March 29, 2010, the General Machinery & Special Vehicle making “Putt Putt steamships” for 70 fifth-graders at the sixth-graders at the Hiroshima Minamikanon Elementary Headquarters in Sagamihara City, Kanagawa Prefecture, invited 19 Shimonoseki Enoura Elementary School In Yamaguchi School by MHI Group company MHI Solution Technologies fifth-graders to a science class, which included the use of a forklift truck, Prefecture. Co., Ltd. using its robotic fish. one of the products of the headquarters. The program was designed by the Shimonoseki Shipyard The robotic fish can swim as freely as a fish through appli- Afterward, we also convened an idea exchange with Mr. Toshihiko & Machinery Works, which develops eco-ships with a low envi- cation of a technology developed by MHI that enables simulta- Nishiyama, a member of the Sagamihara City Board of Education who ronmental impact, in the hope of teaching children the technol- neous control of propulsion and direction with a single fin. The attended the class as an observer, and members of the NPO Kodomo ogy that propels ships and the fascination of manufacturing. technology had been showcased at the Mitsubishi Minatomirai Uchu Mirai Association (KU-MA), who provided their expertise in The “Putt Putt steamship” is a model boat based on the phys- Industrial Museum and the EXPO 2005 AICHI JAPAN and organizing the class. ics principle that water increases in volume when turned into proved very popular. steam, and the ship moves on the power of steam produced On the day of the science class, the mechanical construc- by heating a copper tube containing water with a candle. tion of the robotic fish was explained to children in simple Providing children with a lively educational broadly contributes to society and that the science classes The children used styrofoam to create the body of the terms. They also enjoyed first-hand experience controlling the opportunity are valuable from that standpoint. ships in various shapes of their fish. A golden carp robot, sea On the day of the science class, we explained with help from The participants also confirmed that to create lively edu- choice and assembled a bream robot and coelacanth KU-MA the mechanism that allows a forklift truck to carry or cational opportunities, it is important for schools, local gov- steam engine out of a copper robot appeared and children raise objects by conducting experiments illustrating the prin- ernments, companies and NPOs to share the same goals of tube and a candle. Upon who observed them swim- ciples of the lever and pulley and Pascal’s principle. We also cultivating the next generation, and to communicate with chil- completion, a race was held in ming for the first time re- set aside time for a tour of the forklift truck production factory dren by cooperating in the areas of their respective strengths. a portable pool. When the sponded with comments such to offer children a genuine worksite experience. Loud cheers candles were lighted and the as: “They look totally real!” were heard when the forklift truck easily raised a heavy weight Sustaining and enhancing the science class ships began to move, the chil- that could not be budged with human power alone. in collaboration with local communities dren cheered loudly. Making “Putt Putt steamships” Children fascinated by the carp robot The program was devel- The MHI team asked what the participants expected of the oped as a joint project based MHI science class. Expectations held toward MHI Expectations held toward MHI on a series of discussions that Mr. Nishiyama of the Board of Education touched on the took place over a half year current situation, in which not only children but also teachers Exciting experiences motivate children I have high hopes for science classes that between KU-MA members have been drifting away from the sciences in recent years. He to take their first steps toward science. nurture children’s dreams for the future. and a team from the General requested MHI to provide an opportunity for observing the Machinery & Special Vehicle enthusiasm with which children learn during the science class “I understood the mechanism of how Science classes that give children a real Headquarters. Therefore, to enable young teaching staff to acquire the skills for making things move,” “I made it move sense of the fascination of science and we sought their opinions in Experiments using a variety of materials science classes fun. He also expressed his gratitude for the myself!”—the eyes of children who at- the wonders of nature represent a signifi- the exchange session on learning opportunities provided by a company located in the tended the class sparkled with delight. I cant initiative that nurtures the intellectual the value of companies and city, saying it was also fortunate for the children. He hoped feel that exciting experiences that go be- curiosity of children. I hope MHI will utilize NPOs providing opportunities MHI would continue conducting these classes. yond the scope of school education moti- its manufacturing prowess to continue of- Members of KU-MA noted the various products handled vate children to take their first steps fering science classes that provide chil- for experience-oriented edu- toward science. dren with dreams of the future. cation for children in local by each of the MHI works and said KU-MA is always looking communities. for educational material that interests children, expressing their hope of continuing their collaborations with each works Ms. Manami Maeda Mr. Takuya Suga Mr. Nishiyama of the Teacher, Shimonoseki Enoura Elementary School Teacher, Hiroshima Minamikanon Elementary School Board of Education said the to develop quality educational materials and programs in the lively engagement of children Forklift truck demonstration future. left a powerful impression and that learning in the worksite In response to these comments, MHI staff expressed its Science Class at the Air-Conditioning & Refrigeration Systems Headquarters setting was an opportunity for real-life education that moti- gratitude to child education experts for their cooperation on 4 vates children to improve in their studies. the project, which enabled us to form a connection between Explaining heat energy displacement using Members of KU-MA mentioned the importance of pro- our products and technologies and what children learn at air-conditioners viding children in materially affluent Japan with an approach school. MHI concluded the idea exchange by speaking about On February 16, 2010, a science and listening intently to employees who played the part of the that lets them enjoy learning for its own sake. They empha- our enthusiasm for sustaining and enhancing the science class using air-conditioners teacher. sized the need to give them a real sense that what they learn classes through closer collaboration with the local community. (heat pumps) was held for 86 fourth-graders at the Kiyosu Nishibiwajima Elementary School Expectations held toward MHI in Aichi Prefecture. During the science class we Children feel wind from a An experience that connects what children explained how displacement of demonstration unit learn at school to daily life is meaningful. heat energy produces cool or warm air from air-conditioners by pointing out the example of how we all experience a cooling I think the value of an experience-oriented sensation when alcohol is applied as a disinfectant before re- science class lies in encouraging ceiving an injection. We also used a demonstration unit children to realize how what they learn at school is connected to their daily lives (training material) to actually produce a warm breeze, allowing and stimulating imaginative thinking. I children to observe and feel the temperature change. hope children will achieve further growth In addition, we introduced wakamaru, a communication by learning the fundamentals and basics Mr. Toshihiko Nishiyama Mr. Sumio Endo Ms. Reiko Yamamura Mr. Yuichi Taguchi Kazuhito Hori Takeharu Numazaki robot developed by MHI, and set aside time in the latter half of we teach as well as their applications Supervisor Director General Administration General Administration General Affairs and General Affairs and the class for children to shake hands with and talk to the ro- through the science classes. School Education Section, Kodomo Uchu Mirai Department Department Environment Management Environment Management School Education Division Association Kodomo Uchu Mirai Kodomo Uchu Mirai Section Manager Section bot. Children gathered around the demonstration unit and Ms. Akemi Oshima Sagamihara City Incorporated Nonprofit Association Association General Affairs Department General Affairs Department Teacher, Kiyosu Nishibiwajima Elementary School Board of Education Organization Incorporated Nonprofit Incorporated Nonprofit General Machinery & General Machinery & wakamaru with strong interest, asking many kinds of questions Organization Organization Special Vehicle Headquarters Special Vehicle Headquarters

23 Mitsubishi Heavy Industries, Ltd. Exchange of ideas at the General Machinery & Science Class at the Shimonoseki Shipyard & Science Class at the Industrial Machinery Business, Technology Special Vehicle Headquarters Machinery Works & Solutions Division and MHI Solution Technologies Co., Ltd.

CSR Report 2010 24 Responsibilities and Actions of MHI CSR Action Plans Medium-term targets and action plans for fiscal 2008 to 2010 MHI developed medium-term CSR targets for a three-year period (fiscal 2008 to 2010) as well as action plans for each fiscal year to expand CSR management across the entire Group. The CSR Committee, chaired by the President, reviews the progress of activities every half term to promote strategic and comprehensive CSR initiatives across the Group.

Area Priority item (responsibility) Medium-term targets (FY2008–2010) Achievements of FY2009 Action plans for FY2010 1. Distributed CSR report (digest version) to all employees of our Group companies (87 thousand 1. Distribute CSR report to all employees of domestic Group companies, implement e-learning on 1. Broadened CSR awareness across the Group and promote self-directed activities of individual depart- copies) CSR Broadened CSR awareness (CSR Committee / ments 2. Held President’s Town Meeting at 10 locations and “CSR training sessions” at 13 locations 2. Multilevel dialogues, broadened CSR awareness through CSR training program and expanded CSR Department) 2. Selection and implementation of unified activity themes for the entire Group (representative CSR activities) implementation in Group companies based on the CSR Action Guidelines 3. Implemented representative CSR activities in line with the CSR Action Guidelines almost as planned 3. Continue to carry out representative CSR activities across the Group 1. Activities were carried out in line with the social contribution policy 1. Energizing activities in line with the social contribution policy of the entire company (community contribu- (1) Community contribution activities: donation of goods to the Shinagawa Church Kindergarten bazaar; donation of photovoltaic facilities; opening of a nursery, etc. tion and nurturing the next generation) and instilling a sense of unity across the Group 1. Develop policy on community contribution and the next generation nurturing activities that are (2) Nurturing the next generation: MHI Charity Opera (for audience of 280), science classes (32); unique to the company Socially beneficial activities (CSR Department) 2. Raising the level of all activities by exchanging information among departments and energizing activities Hands-on Manufacturing Class for families, etc. of Group companies 2. Revitalize and follow up on activities of Group companies 2. Socially beneficial activities of Group companies 3. Building a structure to support participation of employees in social contribution activities Furusato Seiso Undokai (local clean-up effort) hosted by Mt. Fuji Club (total of 5,073 employees of MHI Group participated in the activity), etc. CSR Promotion 1. Disclosed information on business activities for improving the global environment Strengthening information dissemination (Corporate 2. Ran corporate ads in newspapers and published periodicals (MHI Graph); ran CSR ads in Nagoya 1. Broadly publicize information on company technologies and products that contribute to energy Communication Department) area (newspapers and train station ads) 1. Gain wider recognition and improve evaluation of the company’s environmental protection efforts and the environment 1. Enhancement of brand value concerning the environment 3. Hosted plant tours for individual shareholders (Industrial Machinery Business, Technology & 2. Promote PR to improve the company image Solutions Division, Nagoya Guidance & Propulsion Systems Works); Held briefings for individual 2. Publish information on content of business through corporate ads and periodicals (MHI Graph, 2. Enhancement of company image 3. Increase the number of shareholders who hold the company’s stocks longer (fan) investors (Nagoya, Osaka, Mitsubishi Minatomirai Industrial Museum); ran articles in reports etc.) to enhance the level of awareness of the company’s business 3. Promotion of IR activities 4. Attract 140,000 visitors a year published by securities companies (on high-efficiency gas turbines, MRJ) 3. Increase frequency of events for individual investors 4. Improvement of the Mitsubishi Minatomirai Industrial 4. Cumulative number of visitors exceeded 150 thousand following renovations of the Industrial 4. Continue renovation of the Industrial Museum, reinforce management structure Museum Museum (Ocean Zone, Technology Quest Zone) Number of visitors in FY2009 was 158 thousand (accomplished 113%) 1. Started CSR procurement promotion project and formulated guidelines 1. Seek penetration of Guidelines for Promoting MHI Group Supply Chain CSR inside and outside 1. Penetration of CSR Procurement Guidelines and strengthened PDCA cycle 2. Gathered information on REACH Regulation and examined policy in response the company CSR procurement (Material Department) 2. Response to REACH Regulation and others 3. Reduced energy use in transportation (97 in unit energy consumption indexed against 2006 2. Continue to gather information on REACH Regulation and promote policies 3. Deepened activities for further reducing energy use in transportation as 100) 3. Reduce energy use in transportation (96 in unit energy consumption indexed against 2006 as 100)

1. Checked the status of compliance promotion activities based on in-house rules 1. Continue to implement compliance promotion activities based on in-house rules 2. Aggregated and analyzed compliance cases that require improvement and ensured appropriate 1. Establishment of promotion system across the Group and unified activity content 2. Aggregate and analyze compliance cases that require improvement and ensure steady manage- Thorough compliance (Compliance Committee) processing of letters received ment of contact points to provide feedback for related measures 2. Implementation of compliance training that is well-developed in terms of both awareness and knowledge 3. Continued implementation and enhanced theme-setting of compliance promotion training 3. Improve the theme-setting for compliance promotion trainings for on-site employees, seek 4. Continued implementation of compliance awareness survey (recorded highest scores to date) greater awareness by coordinating measures unique to each company workplace 1. Order Compliance Committee checked the status of activities 2. Carried out monitoring of the company and 19 Group companies that participate in bidding of public sector projects Order compliance (Order Compliance Committee) Maintaining zero violations of the Anti-Monopoly Act (continued order compliance activities) Prevent forgetfulness by continuously following up on status of order compliance activities Compliance 3. Dispatched information on the Anti-Monopoly Act 4. Implemented course on order compliance in compliance promotion trainings as requirement for departments in charge of public sector sales 1. Improvement of on-site compliance level 1. Held routine workshops at the works (976 participants) 1. Continue routine workshops at the works Compliance with the Construction Business Act 2. Establishment of the system for compliance 2. Opened an e-learning course (481 participants) 2. Hold briefings on the Construction Business Act for subcontractors (Construction Business Act Compliance Committee) 3. Support of the Group companies in compliance 3. Held workshops on the Construction Business Act for Group companies 3. Reinforce compliance system across the entire Group Compliance with export-related regulations (Export- 1. Enhancing sure export management at individual departments and training experts in export management 1. Implemented e-learning (cumulative total of 8,282 participants) 1. Continue implementation of e-learning related Regulations Monitoring Committee) 2. Further strengthening effective export management by Group companies 2. Carried out audits by primary supervising department 2. Continue audits by primary supervising department at Group companies 1. Promoted introduction of energy-saving equipment Ensuring achievement of the voluntary reduction target for CO emissions 2 Reduction of CO2 sustained at 4.9% against reduction target of 6% 1. Continue to promote introduction of energy-saving equipment; introduce a monitoring system, 1. Visualization of energy usage and implementation of energy conservation by eliminating waste 2. Introduced additional 220 kW photovoltaic facilities (Kobe Shipyard & Machinery Works, promote plans for updating in-house air-conditioners Reduced CO emissions (Environment Committee) 2 2. Obtaining necessary emission credits and systematically introducing energy-saving equipment Takasago Machinery Works, Nagoya Guidance & Propulsion Systems Works), making the 2. Purchase and manage the signed emission credits cumulative total 2,110 kW (target exceeded) 3. Installation of additional photovoltaic facilities to bring cumulative total across the company to more 3. Install 101 kW photovoltaic facility in company dormitories than 2,000 kW Photovoltaic facilities installed in company dormitories, nursery and Wind Turbine View Park Environment Total of 33.5 kW installed 1. A total of 8 Group companies in Japan and abroad completed their initial acquisition of ISO certification 1. Completing introduction of environmental ISO in Group companies in Japan 1. Promote initial acquisition of ISO certification by Group companies in Japan and overseas Group environmental management 2. Deployed and followed up on common targets for Group companies 2. Deployment of environmental management activities by the Group acting as one 2. Promote activities for achieving the common targets for Group companies (Environment Committee) 3. Held an environmental conference with each of the 14 domestic Group companies 3. Implementation of regular audits of Group companies and round-table conferences 3. Continue to hold environmental conference (of 15 companies) Held a joint environment liaison conference for the 14 companies involved in the environmental conference Raising awareness of human rights (Committee for Broaden understanding and awareness regarding human right issues across the company and implement The committee and the respective committees of each works held annual meetings Continue to hold annual meetings of the committee and the respective committees of each works Raising Awareness of Human Rights) initiatives to prevent sexual and power harassment Promote employment of the handicapped (Committee Maintenance and expansion of employment level exceeding legal mandate, and promotion of systematic Continue aggressive recruitment activities (monthly review of activity status) and enlightenment Achieved the employment level of 1.98%, exceeding the legal mandate of 1.8% for Promoting the Employment of the Handicapped) employment by individual departments activities toward achieving employment level of 2% Human rights 1. Implement education based on the new system (practical application of PDCA) Creating a better workplace (Personnel Department) 1. Further enhance the environment for carefully nurturing valuable human resources 1. Restructured (improved) company-wide training system and labor 2. Deploy education for managers across the entire company and distribute booklet to employees 1. Enriched education 2. Implementation of effective measures, starting from the prevention of mental health disorders to support- 2. Developed educational materials for managers and booklet for employees on leave on leave 2. Strengthening mental health ing employees in returning to work 3. Accomplished the rehiring rate of 71%, exceeding the 60% medium-term target 3. Accomplish the rehiring rate exceeding the medium-term target of 60% 3. Utilization of retired employees 3. Further increasing the rehiring rate (more than 60%) 4. Set up a Work-Life Support Group based on the overall standpoint of improving the quality of the 4. Work to promote in-house understanding of the content of the program for nurturing the next 4. Maintaining Kurumin (next generation nurturing support) certification mark working environment 4. Nurturing the next generation generation in balance with actual working responsibilities

1. Establishment of an integrated QMS (Quality Management System) across the headquarters and works 1. Practiced the Nuclear QMS 1. Seek further reform and innovation in Nuclear QMS and construction of an autonomous framework Ensuring quality and safety of nuclear business 2. Assessed the utilization level of maintenance information 2. Implement preventive maintenance by sharing information (Managing Board for Innovation in the Nuclear 2. Further improvement of plant reliability 3. Implemented ethics education for engineers 3. Establish a system for ethics education Business) 3. Nurturing a climate that does not allow compliance violations and earning the public trust through ongo- Product 4. Proactively worked on information disclosure 4. Establish information disclosure policies responsibility ing dissemination of information 1. Utilization, spread and deployment of accomplishments related to product safety activities 1. Supported product safety (risk assessment, improvement of instruction manuals and guarantee 1. Continue risk assessment, improvement of instruction manuals and guarantee certificates, etc. Product safety (Legal Department / Production (including improved instruction manual models) certificates, etc.) System Innovation Planning Department) 2. Introduce the company’s thinking on product safety activities and advanced cases 2. Further reinforcement of product safety system 2. Conducted product safety awareness survey across the entire company 1. Further strengthening the PDCA cycle for autonomous risk management at the company as well as 1. Enhance control and implement internal audit that takes into account the results of FY2009 risk 1. Implemented risk assessment across the entire Group and ascertained risks that require domestic and overseas Group companies assessment Risk Risk assessment and management enhanced control and risks to be checked by internal audit (Internal Audit Department) 2. Regular implementation of risk assessment 2. Implement self-check on evaluation results from FY2009 risk assessment to ascertain current management 2. Updated the risk management database to pursue horizontal deployment of advanced cases 3. Thoroughly implementing company-wide horizontal deployment of advanced cases using database status of risk assessment through above-mentioned actions

25 Mitsubishi Heavy Industries, Ltd. Area Priority item (responsibility) Medium-term targets (FY2008–2010) Achievements of FY2009 Action plans for FY2010 1. Distributed CSR report (digest version) to all employees of our Group companies (87 thousand 1. Distribute CSR report to all employees of domestic Group companies, implement e-learning on 1. Broadened CSR awareness across the Group and promote self-directed activities of individual depart- copies) CSR Broadened CSR awareness (CSR Committee / ments 2. Held President’s Town Meeting at 10 locations and “CSR training sessions” at 13 locations 2. Multilevel dialogues, broadened CSR awareness through CSR training program and expanded CSR Department) 2. Selection and implementation of unified activity themes for the entire Group (representative CSR activities) implementation in Group companies based on the CSR Action Guidelines 3. Implemented representative CSR activities in line with the CSR Action Guidelines almost as planned 3. Continue to carry out representative CSR activities across the Group 1. Activities were carried out in line with the social contribution policy 1. Energizing activities in line with the social contribution policy of the entire company (community contribu- (1) Community contribution activities: donation of goods to the Shinagawa Church Kindergarten bazaar; donation of photovoltaic facilities; opening of a nursery, etc. tion and nurturing the next generation) and instilling a sense of unity across the Group 1. Develop policy on community contribution and the next generation nurturing activities that are (2) Nurturing the next generation: MHI Charity Opera (for audience of 280), science classes (32); unique to the company Socially beneficial activities (CSR Department) 2. Raising the level of all activities by exchanging information among departments and energizing activities Hands-on Manufacturing Class for families, etc. of Group companies 2. Revitalize and follow up on activities of Group companies 2. Socially beneficial activities of Group companies 3. Building a structure to support participation of employees in social contribution activities Furusato Seiso Undokai (local clean-up effort) hosted by Mt. Fuji Club (total of 5,073 employees of MHI Group participated in the activity), etc. CSR Promotion 1. Disclosed information on business activities for improving the global environment Strengthening information dissemination (Corporate 2. Ran corporate ads in newspapers and published periodicals (MHI Graph); ran CSR ads in Nagoya 1. Broadly publicize information on company technologies and products that contribute to energy Communication Department) area (newspapers and train station ads) 1. Gain wider recognition and improve evaluation of the company’s environmental protection efforts and the environment 1. Enhancement of brand value concerning the environment 3. Hosted plant tours for individual shareholders (Industrial Machinery Business, Technology & 2. Promote PR to improve the company image Solutions Division, Nagoya Guidance & Propulsion Systems Works); Held briefings for individual 2. Publish information on content of business through corporate ads and periodicals (MHI Graph, 2. Enhancement of company image 3. Increase the number of shareholders who hold the company’s stocks longer (fan) investors (Nagoya, Osaka, Mitsubishi Minatomirai Industrial Museum); ran articles in reports etc.) to enhance the level of awareness of the company’s business 3. Promotion of IR activities 4. Attract 140,000 visitors a year published by securities companies (on high-efficiency gas turbines, MRJ) 3. Increase frequency of events for individual investors 4. Improvement of the Mitsubishi Minatomirai Industrial 4. Cumulative number of visitors exceeded 150 thousand following renovations of the Industrial 4. Continue renovation of the Industrial Museum, reinforce management structure Museum Museum (Ocean Zone, Technology Quest Zone) Number of visitors in FY2009 was 158 thousand (accomplished 113%) 1. Started CSR procurement promotion project and formulated guidelines 1. Seek penetration of Guidelines for Promoting MHI Group Supply Chain CSR inside and outside 1. Penetration of CSR Procurement Guidelines and strengthened PDCA cycle 2. Gathered information on REACH Regulation and examined policy in response the company CSR procurement (Material Department) 2. Response to REACH Regulation and others 3. Reduced energy use in transportation (97 in unit energy consumption indexed against 2006 2. Continue to gather information on REACH Regulation and promote policies 3. Deepened activities for further reducing energy use in transportation as 100) 3. Reduce energy use in transportation (96 in unit energy consumption indexed against 2006 as 100)

CSR Report 2010 26 Responsibilities and Actions of MHI

Management In the course of providing products that support social and economic infrastructures on a global scale, MHI makes every effort to fulfill its social responsibility as a corporation by strengthening and enhancing its corporate governance, internal controls and CSR efforts while acting in full compliance with prevailing laws, rules and social norms in addition to promoting fair and sound management.

Organization Chart (as of July 1, 2010)

Internal Audit Department CSR Committee Corporate Social Responsibility Department Order Compliance Committee Compliance Committee Corporate Planning Department Presidential Administration Environment Committee Group Management Department Committee for Raising Awareness of Human Rights Office Shipbuilding & Ocean Committee for the Promotion of Employment of the Corporate Communication Department Development Headquarters Handicapped Information Systems & Communications Department Export-related Regulations Monitoring Committee Construction Business Act Compliance Committee General Affairs Department Yokohama Machinery Works Managing Board for Innovation in the Nuclear Business Legal Department Power Systems Headquarters Takasago Machinery Works Personnel Department Accounting Department Finance Department Nuclear Energy Systems Material Department Headquarters Technology Planning Department Intellectual Property Department Environmental & Chemical Plant Division Advanced Technology Research Center Machinery & Steel Structures Transportation Systems & Advanced Headquarters Technology Division Nagasaki Research & Development Center Technical Headquarters Industrial Machinery Business, Takasago Research & Development Center Technology & Solutions Division Hiroshima Research & Development Center Aerospace Headquarters Nagasaki Shipyard & Machinery Works Executive Committee Yokohama Research & Development Center Kobe Shipyard & Machinery Works Nagoya Research & Development Center Shimonoseki Shipyard & Machinery Works Board of Directors President Nagoya Aerospace Systems Works Global Strategic Planning & Overseas Business Promotion Department Board of Statutory Auditors Operations Headquarters Overseas Administration Department General Machinery & Nagoya Guidance & Propulsion Special Vehicle Headquarters Systems Works Statutory Auditors Production System Innovation Planning Department

Statutory Auditors’ Office Sustainability Energy & Environment Strategic Planning Department Air-Conditioning & Refrigeration Joint Lithium Battery Operations Department Systems Headquarters Kansai Office Chubu Office Kyushu Office Machine Tool Division Hokkaido Office Chugoku Office Tohoku Office Hokuriku Office Shikoku Office Jakarta Liaison Office Taipei Liaison Office

27 Mitsubishi Heavy Industries, Ltd. Responsibilities and Actions of MHI Management

Corporate Governance

In its quest to continuously develop its business operations and fulfill its social responsibilities, MHI is reforming its management structure while promoting fair and sound management rooted in complete legal compliance.

Current Status of discussing important matters related the work carried out by statutory auditors. Corporate Governance and to business execution. This allows for Internal Controls a more cohesive approach in terms of Ensuring reliability of financial discussions as part of the operational reporting by assessing the Strengthening the oversight execution framework centered on the status and operation of the functions of the Board of President, and consequently leads to internal control system Directors through such more effective management decisions measures as appointing and business execution. In May 2006, the Board of Direc- outside directors In accordance with the auditing pol- tors approved a basic policy for inter- icy and auditing plan determined by the nal control systems. Under this policy, The Board of Directors makes important Board of Statutory Auditors, statutory the company has been steadily promot- key management decisions and over- auditors attend meetings of the Board ing thorough compliance, reinforcing risk sees the execution of business opera- of Directors, the Executive Committee management, and improving the effec- tions, while statutory auditors audit the and other key meetings related to busi- tiveness of internal audits. execution of duties of directors and other ness planning, enabling them to accu- Under the Japanese Financial Instru- matters. rately assess and monitor the status of ments and Exchange Act, an internal Currently, 3 of the company’s 18 management execution in a timely man- control reporting system, sometimes directors and 3 of its 5 statutory auditors ner. They also confirm whether the execu- referred to as J-SOX, came into effect in are from outside MHI and are engaged tion of duties by directors complies with April 2008. in their respective roles of overseeing laws, regulations and the Articles of Incor- Prior to this, the Board of Directors and auditing management by maintain- poration and whether the business of the revised the basic policy in March 2008 ing an independent standpoint from the company is being appropriately executed. to articulate its response. In April 2008 management team. The company has This is done by conducting spot checks MHI set up a group inside the Internal also streamlined the Board of Directors, and verifying compliance with relevant Audit Department to be responsible for shortened the term of office, and intro- laws and regulations and by monitoring all J-SOX-related operations inside the duced an Executive Officer System. MHI and conducting follow-ups of the status MHI Group, concurrently setting up simi- has sought through these measures to and operation of internal control systems lar groups or offices throughout all of our reinforce the oversight functions of the including internal controls related to finan- manufacturing works. Board of Directors and to clarify the roles cial reporting. Statutory auditors periodi- In fiscal 2009, as in earlier years, the and responsibilities of the directors who cally exchange information and opinions Internal Audit Department and the inter- make decisions on key management with the Internal Audit Department and nal audit divisions of our manufacturing issues and oversee the overall manage- accounting auditors, and cooperate works exercised the initiative in assessment of the company as well as the roles closely with them in other ways, including ing the status and operation of the inter- and responsibilities of the executive offi- receiving their audit results and attending nal control system and concluded that cers who execute business. accounting audits. The Statutory Audi- the MHI Group’s internal controls related MHI has also established an Exec- tors’ Office has been set up with its own to financial reporting were functioning utive Committee to serve as a forum for dedicated staff to support and facilitate effectively.

Corporate Governance Structure (including internal control system) (as of April 1, 2010)

General Meeting of Shareholders

Election/Dismissal Proposal/Report Audit/Report Election/Dismissal Report Election/Dismissal Provide opinions Coordination Directors (Board of Directors) Statutory Auditors (Board of Statutory Auditors) Accounting Auditor

Statutory Auditors’ Office Report on accounting audit Nomination/Oversight Proposal/Report Audit Accounting audit

Deliberate President Instruction Coordination Recommendation/Report Consult Representative Directors Report Executive Committee Instruction Report Audit Instruction Coordination Internal Audit Department Executive Officers CSR Committee Divisions • Administration Departments • Compliance Committee • Headquarters and Divisions • Export-related Regulations General Report Monitoring Committee • Works Survey Consult supervision • Research and Development Centers • Environment Committee • Offices • Risk Management, etc.

Audit/Instruction Audit/Instruction Survey Group Companies

CSR Report 2010 28 Responsibilities and Actions of MHI Management

New Organizations and Promoting in-house pact lithium-ion rechargeable batteries Measures Concerning collaboration to reinforce the and supplying them as prototypes. The Business and Management energy and environmental company has decided to fully enter the Inclusively businesses lithium-ion rechargeable battery business and has been constructing a mass Ongoing reinforcement of The company established its Sustainabil- production verification plant within the “Monodzukuri” (production ity Energy & Environment Strategic Plan- Nagasaki Shipyard & Machinery Works system for value creation) ning Department in April 2008 to position around autumn this year toward incor- capability through the the company as a leader in energy and porating the batteries into hybrid forklift process innovation across environmental fields. The Department trucks developed by MHI. the company has taken the lead in establishing and The company established the Joint promoting collaboration with other divi- Lithium Battery Operations Department “Monodzukuri capability” is the origin of sions to reinforce the energy and envi- in October 2009 to promote this initiative the competitiveness in the manufactur- ronmental businesses while actively as a company-wide effort. ing industry. Securing and strengthening presenting information on business strat- The Department is organized around this capability has emerged as a critical egy and technologies related to energy staff from both the Power Systems Head- management issue in the face of today’s and the environment to those outside the quarters and the General Machinery & increasingly severe business climate. company. Special Vehicle Headquarters, and over- Based on this awareness, MHI As an example of its collaborative sees projects related to product planning established the Production System Inno- efforts with other divisions, the Depart- and the mass production of lithium-ion vation Planning Department in 2006 to ment is participating in a project in rechargeable batteries. A system for sup- lead the way in a concerted effort with the Australia for effectively using coal and porting the project has been organized product businesses to achieve innovation reducing CO2 through the combination through the collaboration of the Technical across the entire process, from market- of an Integrated coal Gasification Com- Headquarters, Production System Inno- ing, design, and production to service. bined Cycle (IGCC) power plant and Car- vation Planning Department, Sustain- In fiscal 2009, the Department bon Capture and Storage technology. ability Energy & Environment Strategic focused on procurement, a key factor in Feasibility studies were conducted under Planning Department and other depart- our Monodzukuri, and in collaboration this project in fiscal 2009, and we plan ments in a concerted effort to develop with the Material Department promoted to obtain orders for basic design in fiscal and strengthen this business. activities to maximize the bargaining 2010. The Department has also estab- power of MHI as a whole from the per- lished a development system for electric Introducing a business spective of reinforcing our supply chain. buses and is preparing to conduct driving division structure in the In concrete terms, we developed a com- tests on public roads during fiscal 2010. Machinery & Steel Structures pany-wide procurement database and The Department also supports the Power Headquarters analyzing system to support the estab- Train System Division established within lishment of strategic procurement in the General Machinery & Special Vehicle In October 2009, MHI introduced a busi- terms of optimal procurement across the Headquarters. ness division structure in the Machinery & entire company. In its external communication efforts, Steel Structures Headquarters to bolster Keeping up with the increasing the Department is submitting proposals our global competitiveness. proportion of overseas markets in our for realizing a low-carbon society to rel- We established three divisions—Envi operations, MHI has launched inter- evant government agencies, conducting ronmental & Chemical Plant, Transport departmental management for pro- discussions with electric power compa- ation Systems & Advanced Technology, moting the globalization of its product nies and hosting various lecture semi- and Industrial Machinery Business, businesses. nars. It also participates in joint projects Technology & Solutions—to facilitate From the perspective of strength- with governments and other companies, rapid response to emerging market con- ening our global competitiveness, MHI such as the smart community devel- ditions under management teams with a will pursue process innovation focused opment projects in India and the Eco- deep understanding of the products and on efficient asset management and rein- Town project on Sado Island, Niigata businesses. The overall intent is to boost forcement of our Quality Management Prefecture. the efficiency of operations from busi- System (QMS), which establishes the ness negotiations to execution of con- quality required in order to sophisticate Company-wide promotion of struction work. products and strengthen their interna- the lithium-ion rechargeable In the same month, the Strategic tional competitiveness. battery business Business Development Office for the In addition, the company intends to UAE was established within the Machin- achieve its goal of building a global sup- Demand has been expanding worldwide ery & Steel Structures Headquarters. The ply chain for Monodzukuri through the for lithium-ion rechargeable batteries Office will seek to contribute to the devel- global development initiatives launched mounted on electric vehicles and hybrid opment of social infrastructures in the in the previous fiscal year. cars amid calls for restraining CO2 emis- United Arab Emirates (UAE) centered on sions, recognized as a cause of global the Emirate of Abu Dhabi by supporting warming, and more effectively using fos- projects related to carbon capture and sil fuels. storage along with enhanced oil recovery Over the years, MHI had been devel- and by actively submitting proposals for oping large-volume, high-capacity, com- next-generation transportation systems.

29 Mitsubishi Heavy Industries, Ltd. Promotion of CSR

MHI established the CSR Committee to become a company that maintains public trust with CSR at the center of management. The company is steadily pursuing its initiatives by assigning responsible personnel to each of its divisions, headquarters, works and Group companies in Japan and overseas to grasp, assess and monitor the progress of CSR activities and by implementing followthrough measures.

Promoting Comprehensive of action. faced by current CSR activities. The and Strategic CSR Activities In terms of (2), the company assigned results of this analysis will be applied to a CSR Director and CSR Practice Man- future CSR activities. Key activities categorized ager in each of its headquarters, divisions, under six themes and works and spin-off Group companies to President’s Town Meeting monitored by the CSR broaden CSR awareness throughout the The President met with employees at the Committee Group and to promote representative general manager level who play a central CSR activities. role in managing the works and visited In October 2006, the company set up Looking ahead, MHI will continue workplaces to engage in direct dialogues the CSR Committee, chaired by the these efforts in accordance with the CSR with frontline staff in charge of specific President, and the CSR Department, Action Plan and by developing specific tasks at ten sites to boost employee which reports directly to the President, in activities for each department. motivation and revitalization activities. order to strengthen management of CSR. The committee currently undertakes Sustained promotion of PDCA Forum 35 activities according to categories based based on the CSR Action Plan Activity for re-energizing the organiza- on the CSR Action Plan (Roadmap) cov- tion through the exchange of ideas and ering the fiscal years from 2008 to 2010, In fiscal 2009, we ran PDCA cycles, concerns about the company and soci- and monitors progress on (1) activities including follow-up and evaluation of ety involving employees in their mid-thir- by individual committees and groups of progress and achievements, and the con- ties. Seven employees in this age group managing members and (2) represen- sideration of next plans for each of the from the Head Office met about twenty tative CSR activities based on the CSR six areas—CSR promotion, compliance; times. The activity is already spreading to Action Guidelines. environment, human rights/labor, product other works. In terms of (1), the committee has responsibility; and risk management—of confirmed the current status and issues the CSR Action Plans (see p. 25). of activities organized under the six Major activities under the theme of themes (CSR promotion, compliance, “CSR Promotion” undertaken at each site environment, human rights/labor, prod- in fiscal 2009 are summarized below. uct responsibility, and risk management). Prior to the CSR Committee meeting, CSR training the CSR Liaison Conference compris- Group discussions were held in 13 works ing individual committees and groups with the goal of broadening CSR aware- of managing members is held to review ness. The company also conducted an activity reports and discuss future course analytic survey to clarify the challenges Group discussion at CSR training

CSR Promotion Structure • Members: President (chair), Directors in charge of the administration departments, technology-related CSR Committee departments, headquarters and divisions, and full-time auditors • Mission: To determine CSR basic policies and exercise general supervision over individual committees

• Members: Managers or assistant managers of the respective CSR Report CSR Liaison Conference administration departments, headquarters and divisions CSR Department Editorial Meeting • Mission: To serve as a contact point for producing the CSR Report • Members: Secretariat of the respective committees, Administration Departments of • Members: General managers in charge of headquarters and divisions, deputy managers of divisions, deputy general the Head Office CSR Director managers of works and officers of the Group companies • Mission: To deliberate and • Mission: To promote respective initiatives in line with the CSR policies of MHI follow up on problems in setting clear targets and implementing • Members: Section heads of headquarters and divisions, deputy managers and section heads of works, and general PDCA cycles at individual managers of Group companies committees and organizations CSR Practice Manager • Mission: To act as a flag person for promoting and establishing CSR and a point of contact for producing the CSR Report

• Members: Younger and female employees of headquarters, divisions and works, and Group companies CSR Working Group • Mission: To develop action guidelines and representative activity plans and promote CSR penetration in the departments of working group members

CSR Report 2010 30 Responsibilities and Actions of MHI Management

Activities of Major Related pliance promotion training introduced in Committee for Raising Awareness of Committees in Fiscal 2009 fiscal 2003 as well as other activities. It Human Rights has consistently confirmed an increase in Promoting a workplace in CSR Committee compliance awareness among individual which every employee respects Following up on CSR employees at each worksite, according the human rights of others activities to the results of the annual compliance awareness survey (see p. 35). MHI set up the Committee for Raising Having followed up on the status of activ- Awareness of Human Rights in 1992 to ities by individual committees and groups Environment Committee promote the establishment of a sound of manager members at the sixth ses- Reviewing the approach to workplace in which every employee sion of the CSR Committee held in May promote Group environmental correctly understands the issue and 2009 and the seventh session held in management respects the human rights of others. December, we confirmed they were Chaired by the Director in charge of per- working systematically based on their The Environment Committee was estab- sonnel and with the membership of gen- individual roadmaps. lished in 1996. Each year, the commit- eral managers in charge of personnel of These activities will be continued tee plans and proposes environmental each works, the committee is working on going forward, and the committee will actions to be carried out across the com- raising awareness of human rights, shar- also consider the direction of CSR activ- pany and sets the direction for the year. ing information and promoting human ities suitable for MHI, which can be sus- It also promotes and follows up on the rights training. The committee has also tained as priority CSR activities. annual environmental protection plans for established a system for preventing sex- each headquarters, division and works. ual harassment by establishing a contact Compliance Committee In fiscal 2009, the committee dis- point for consultation and by creating Raising awareness primarily cussed plans to introduce an electronic an e-mail mailing address dedicated to through compliance manifest for fulfilling MHI’s responsibil- consultation. promotion training ity as a waste producer and launched In fiscal 2009, the committee imple- company-wide activities (see p. 42). The mented a training program for raising The Compliance Committee was estab- committee also implemented measures awareness among new recruits, newly lished in May 2001 to ensure compli- for CO2 reduction actions and the pro- appointed managers and supervisors. ance with laws and social norms and to motion of consolidated environmental In addition, the committee distributed a promote fair and honest business activi- management across the Group. In addi- pamphlet on preventing sexual harass- ties. It plays a central role in deliberating tion, continuing efforts from fiscal 2008, ment throughout the company and con- group-wide progress in compliance and the committee carried out activities for ducted activities for raising awareness, other related issues (see p. 33). accomplishing the major mid- and long- such as incorporating related themes into The committee is also working to term environmental targets (waste reduc- compliance promotion trainings. raise in-house awareness of compliance, tion, control of chemical substances, and and has continued to implement com- energy conservation.)

Topics

Town Meetings for direct dialogue between the President and employees—organized as a two-part event of meetings with general managers and worksite visits in fiscal 2009

In fiscal 2009, Town Meetings were held in a continued effort from fiscal 2008. These meetings are conducted with the goal of bringing the entire company into alignment by directly communicating the company’s management policies and the thoughts of top management behind those policies to increase the employees’ sense of participation and motivation. In 2009, the President conducted meetings with employees at the general manager level who play a central role in managing the works and visited workplaces for direct dia- Meeting with general managers at the General logues with employees at the manager level or in charge of specific tasks. Machinery & Special Vehicle Headquarters held on The President began his meetings with general managers by explaining MHI’s goals August 5, 2009 from the customer’s perspective and the internal perspective of sharing and standardizing the operational process based on an understanding of the current status of the company. A question and answer session was then held on issues faced by each department with the participation of general managers. Worksite visits provide a rare opportunity for employees to meet their president, and employees responded by confirming the value of hearing information directly from the President. Given the proven effectiveness of Town Meetings as a communication tool between top management and employees, MHI will continue this initiative while devising ways to create an atmosphere that encourages employees to voice themselves. Worksite visit at the Kobe Shipyard & Machinery Works on July 9, 2009

31 Mitsubishi Heavy Industries, Ltd. Committee for the Promotion of and the Foreign Exchange Order. The Workshops on the Construction Busi- Employment of the Handicapped Export-related Regulations Monitoring ness Act by external lecturers were held Proactively expanding Committee was established in 1987 to nine times at major works as part of the job opportunities for the reinforce the company’s export con- committee’s compliance education activ- handicapped trols. A responsible person is assigned ities. A total of 976 employees attended, to each headquarters and division for including representatives from Group This committee was established in 1992 related matters, and the committee companies. to expand employment opportunities for meets on a regular monthly basis to strin- The committee also carried out other the handicapped based on the belief that gently screen exports of controlled items, activities, including support for compli- providing opportunities for handicapped as well as exports of commodities and ance at construction sites, provision of persons to utilize their abilities is a signifi- technology transactions to nations and information on the Act and implemen- cant social responsibility of MHI. Chaired regions of concern such as Iran that may tation of compliance training at part- by the Director in charge of person- be subject to international sanctions. The ner companies to raise the level of legal nel and with the membership of general members also share information on the compliance. managers in charge of personnel at each status of each department, draw up and works, the committee’s duties include implement in-house education programs, Order Compliance Committee formulating basic policies related to and provide their respective depart- Ensuring the appropriateness employment of the handicapped, draw- ments with instruction and supervision of order-receiving activities ing up and implementing related plans, as needed. and establishing compliance raising awareness for promoting employ- In fiscal 2009, the Foreign Exchange awareness concerning the ment of the handicapped, sharing infor- and Foreign Trade Control Law was Anti-Monopoly Act mation, and contacting and coordinating revised for the first time in 22 years, result- with related administrative agencies and ing in tighter restrictions against trans- To concretely demonstrate our serious organizations. porting technology outside the country. intent to prevent recurrences of past In fiscal 2009, the company pro- MHI has therefore sought to further bol- violations of the Anti-Monopoly Act, actively advanced recruitment by using ster its in-house export control system. In the company established this commit- its website, “mano a mano,” in Span- addition to educating general employees tee in August 2005. The committee has ish or “hand to hand,” which was cre- through e-learning programs, the secre- sought to ensure transparency in order- ated to support the employment of the tariat of the Export-related Regulations receiving activities and to establish handicapped, while partnering with local Monitoring Committee convened respon- compliance awareness concerning the job-placement offices and skill-building sible officers and staff in charge of oper- Anti-Monopoly Act by conducting ded- schools for the handicapped and partici- ations at each department to directly icated monitoring and other measures pating in job interview meetings to further explain major aspects of the revision. The (see p. 34). expand recruitment activities in advance committee will continue to strengthen its of the enactment of the revised Law for activities to further develop MHI’s export Managing Board for Innovation in the Employment Promotion, etc. of the Dis- control systems. Nuclear Business abled in July 2010. The rate of employment of the handicapped as of April 1, Continuing internal reforms 2010 is 2.01%, which exceeds the statu- to ensure the safety and tory employment rate of 1.80%. security of nuclear power In fiscal 2009, the committee adopted a policy for examining the maintenance and management of manufacturing instructions and for reinforcing activities related to the internal sharing of information on e-learning program on export-related laws and regulations lessons learned from the accident to further solidify inspections of work pro- Construction Business Act cesses. Based on this policy, the follow- Compliance Committee ing activities were implemented at the “mano a mano” website for handicapped people Building an independent Nuclear Energy Systems Headquarters, compliance system for and at the Kobe Shipyard & Machinery Export-related Regulations Monitoring enhancing local construction Works and Takasago Machinery Works, Committee management involved in manufacturing equipment for Reinforcing export control nuclear power plants. systems for technology Launched in 2003 to review inter- • Quality management activities, including the nal systems and institutions, educa- inspection and improvement of business following revisions in the processes to prevent nonconformity Foreign Exchange and tion and instruction, and supervision to • Activities related to the internal sharing of Foreign Trade Control Law ensure compliance with the Construction Business Act, this committee has information on lessons learned from the As a company with a high export ratio, been disseminating information on the accident MHI is aware of the grave importance of Construction Business Act while moni- • Proposals for preventive maintenance of exercising export controls to prevent any toring engineer qualifications, supporting power companies in response to the aging of nuclear power plants possibility of its commodities or tech- their development and promoting com- • Compliance training to further raise the nology being diverted to weapons of pliance at construction works. awareness of those involved in the nuclear mass destruction or military purposes by An independent compliance sys- power business ensuring compliance with export-related tem for enhancing the construction man- laws and regulations, such as the Foreign agement of local sites was developed in Exchange and Foreign Trade Control October 2009 and is being implemented Law, the Export Trade Control Order, throughout the company. In fiscal 2009,

CSR Report 2010 32 Responsibilities and Actions of MHI Management

Compliance

To promote fair and sincere business activities, each MHI employee is expected to act with an awareness of compliance. The company has established a compliance structure encompassing all Group companies and shares policies and information with Group companies to encourage thorough commitment.

Promoting Compliance with company-wide compliance promotion and an increase in compliance aware- a Structure Encompassing plans and monitoring progress. ness among employees. Appropriate the Entire Group In April 2006, Departmental Com- responses were also made for matters pliance Committees were established in requiring improvement. One representative from all departments of the company. These each department and Group committees are chaired by members of company appointed as the Compliance Committee, and compli- Toward Thorough contact points to oversee ance measures are implemented for each Compliance promotion respective department. At the same time, Compliance Liaison Conferences were Distributing to all employees The company set up a Compliance set up for regularly exchanging compli- the MHI Compliance Committee in May 2001. The commit- ance information with Group companies. Guidelines containing tee members are general managers of Individual departments are required specific rules of conduct the related departments, business man- to ensure their own compliance through agers of headquarters and divisions, these committees and conferences and The MHI Compliance Guidelines estab- deputy managers of divisions in charge are expected to carry out compliance lished in September 2001 define the rules of managerial matters, branch manag- activities on their own accord as part of of conduct for thorough compliance and ers, and deputy general managers in their responsibility. explicitly stipulate that the company shall charge of managerial matters of works. The committee has noted that in execute fair and sincere business activi- The committee meets twice annually to fiscal 2009, data indicates a consis- ties. The guidelines have been summa- discuss activities such as drawing up tent distribution of compliance activities rized into a pocket-sized card format, so they can be carried at all times, and dis- Compliance Promotion Structure tributed to all employees together with a handbook, Compliance Guidelines, which President provide easy-to-understand explanations. With the appointment of the new president in April 2008, MHI completely Compliance Committee revised the President’s Message for the • Chairman: Director in charge of compliance MHI Compliance • Members: General Manager of Internal Audit Department, Guidelines. This General Manager of CSR Department, General Manager of Corporate Planning Department, General Manager of was done as a Group Management Department, General Manager of Corporate Communication Department, General Manager of call for all employ- Information Systems & Communications Department, ees to recognize General Manager of General Affairs Department, General Manager of Legal Department, General Manager of the importance of Personnel Department, General Manager of Accounting compliance and Department, General Manager of Finance Department, General Manager of Material Department, General Manager of to conduct fair Overseas Administration Department, General Manager of and sincere busi- Overseas Business Promotion Department, General Manager of Production System Innovation Planning Department, ness activities. Compliance Guidelines General Manager of Sustainability Energy & Environment Strategic Planning Department, General Manager of Joint Lithium Battery Operations Department Compliance Ofﬁcer of Technical Headquarters, business managers and deputy managers in charge of managerial matters of headquarters and Formulating and publicizing divisions, deputy general managers in charge of managerial matters of company works, branch managers company guidelines for • Functions: Promote compliance across the MHI Group preventing bribery involving • Secretariat: Compliance Group of General Affairs Department foreign civil servants Internal Audit Business managers Department MHI strives for fairness in its global com- of headquarters and Special Contact Point divisions, branch Monitoring compliance mercial transactions by upholding its managers, general promotion and other managers of works activities basic policy of complying with the Unfair Departmental Compliance Committees Competition Prevention Law and the • Chairman: Member of the Compliance Committee Guidelines to Prevent Bribery of Foreign • Members: Selected by respective divisions, headquarters, works and branches Public Officials that forbid bribing a civil • Functions: Promote compliance measures in respective departments servant of a foreign country to obtain based on the policies of the Compliance Committee unfair advantage. • Secretariat: To be determined by each department The MHI Compliance Guidelines also prohibit improper business deal- Administrators Compliance Liaison Conferences ings. In conjunction with these aims, the company established the Guidelines for • Domestic: In principle, a Compliance Committee shall be set up the Prevention of Bribery Involving For- Group • Overseas: Primary administrative department provides Companies guidance on appropriate programs for the speciﬁc eign Civil Servants in April 2005 to define Employees country or region the rules of conduct based on the Unfair Competition Prevention Law. These doc-

33 Mitsubishi Heavy Industries, Ltd. uments have been posted on the intranet Protection of the rights of internal Compliance with Japan’s to ensure thorough understanding by all reporters has been widely disseminated Anti-Monopoly Act, and Other involved in MHI’s overseas business. along with information on reporting con- Rules for Fair Competition tact points. Periodic investigations are Operation of the contact undertaken twice a year to ensure that Establishing guidelines point for reporting and reports bearing individual names have and special monitoring consultation not resulted in unfair treatment. procedures to improve compliance The Compliance Committee operates a Hot Line as a special contact point for MHI Shall Reject All Contact In 2005 and 2006, MHI was subject consultation and reporting on any ille- with Organizations Involved to investigations by Japan’s Fair Trade gal or inappropriate activity involving MHI in Activities in Violation Commission on suspicion of violat- employees, employees at Group com- of the Law or Accepted ing the “Act on Prohibition of Private panies or suppliers. Consultation and Standards of Responsible Monopolization and Maintenance of Fair reporting are accepted directly via e-mail, Social Behavior Trade” (the “Anti-Monopoly Act”). These phone or facsimile, and the Compliance investigations were related to certain Committee quickly investigates each The order and safety of civil society orders for bridge construction projects report and effectively addresses the continue to be threatened by antisocial and raw sewage treatment facilities, issues. forces. In this context, the company has respectively. Instructions for reporting have been clearly stipulated its stance in the MHI To prevent recurrence of breaches, disseminated by inclusion in the MHI Compliance Guidelines in the statement, the company set up an Order Compli- Compliance Guidelines distributed to all “The company will respond firmly to any ance Committee chaired by the Director employees and the monthly corporate forces working counter to the interests of in charge of compliance and took other newsletter. society.” measures such as establishing guidelines In concrete terms, the company and implementing compliance checks for Clearly establishing rules established a department at each busi- bidding on public sector projects. These for protecting the rights of ness site that oversees corporate initiatives aim to improve transparency in internal reporters response to undue claims from forces MHI Group companies’ tender processes working counter to the interests of soci- for such projects and compliance with The Hot Line is being operated under ety, to fully ensure that in case MHI the Anti-Monopoly Act. rules for protecting the rights of reporters is faced with such undue claims, the Since fiscal 2006, MHI has also con- as set out in the Compliance Promotion department will take the lead in collabo- ducted special monitoring with respect to Rules established as internal rules in 2007, rating with other related departments to public sector procurement rules. which stipulate that individual names shall enable MHI to deal with the issue orga- In fiscal 2007, special monitoring not be disclosed without prior agreement nization-wide. In addition, the company related to the Anti-Monopoly Act was by the reporter and that the reporter shall has publicized the ideal mindset and carried out across MHI as well as in 24 not be treated unfairly under any circum- essential concepts for responding to MHI Group companies that regularly bid stances based on the report. undue claims through compliance pro- on public sector projects. motion training and other actions. In fiscal 2008, personnel in charge of Submissions to the Special Contact The company also maintains close compliance in the department that over- Point (monthly average) contact with the police, lawyers and spe- sees Group companies, joined the Order (Submissions) cialized institutions, even in the absence Compliance Committee to reinforce guid- 9.9 9.7 of emergencies, to receive advice and ance of Group companies, and special 10 8.7 8.8 8.0 support in dealing with undue claims monitoring was expanded further to all 8 6.4 from forces working counter to the inter- MHI Group companies that participate in 6 ests of society. bidding for public sector projects. 4 In fiscal 2009, continued special 2 monitoring efforts by MHI confirmed 0 that compliance was being maintained 2004 2005 2006 2007 2008 2009 (FY) and that awareness of legal compliance issues had improved within the sales teams involved in public sector procure- MHI Compliance Guidelines ment. MHI also made public procurement rules part of mandatory compliance train- I. Business activities ing for such sales teams. We will conduct sensible company activities in compliance with laws and in While there have been no violations of an appropriate manner, and contribute to society by providing safe, high- the Anti-Monopoly Act since the establish- quality products and services. ment of the Order Compliance Commit- tee, MHI remains vigilant and committed II. Relationship between the company and society to maintaining a firm awareness of legal We will try to preserve the environment and live in harmony with society as a good corporate citizen. compliance in all of its businesses taking part in public sector procurement. III. Relationship between the company and employees The company will secure a safe, healthy work environment, and company members will make clear distinctions between public and private, comply Fiscal 2009 compliance with laws and internal rules, and execute their duties faithfully. In fiscal 2009, MHI was not subject to any on-site inspections or orders from gov- MHI Compliance Guidelines ernment agencies responsible for enforc- http://www.mhi.co.jp/en/csr/compliance/ ing anti-monopoly rules.

CSR Report 2010 34 Responsibilities and Actions of MHI Management

Compliance Education and difficult cost or delivery requests. ple of approximately 40% of all employ- Awareness Raising In fiscal 2009, more than 33,000 ees) of whom 11,379 (82.9%) responded. employees, over 96% of the entire work- About 97% of respondents answered Training in a discussion force, participated in this training. The that they were aware of compliance, format for all employees company will continue offering training enabling us to confirm that the aware- based on topics that are directly related to ness of compliance has been steadily The company has been conducting com- the daily operations of many employees. increasing. pliance promotion training in a discussion Furthermore, all indicators have format for all employees at their respec- Conducting the annual improved over the previous year for tive worksites since 2003. Compliance Awareness Survey “level of compliance awareness,” “vio- These training sessions are intended lation potential,” “recognition of the MHI to raise participant awareness so that The Compliance Committee has con- Compliance Guidelines,” and “workplace correct compliance judgment can be ducted annual surveys on compliance environment regarding compliance.” We made to avoid violations under any con- awareness since fiscal 2004 to determine believe this indicates positive results from dition. During the training, participants the extent to which various initiatives our compliance promotion efforts. discussed what they would do and what have changed the awareness of compli- The company will continue to con- would be the right thing to do in the area ance among the company’s employees duct survey-style research to confirm the of compliance when they are unsure and influenced their everyday behavior. level of compliance awareness among about their own actions or when they feel In fiscal 2009, a questionnaire was employees. pressured by superiors in response to sent to 13,724 employees (a random sam-

Comments by a Compliance Number of participants at Participation rates for compliance Promotion Training Participant compliance promotion trainings promotion trainings (Participants) (%) 40,000 100 96.1 96.8 96.4 33,602 32,325 32,070 32,833 32,709 33,016 93.5 Knowing the 30,000 rules is essential 90 for acting 84.0 responsibly. 20,000

80 10,000

0 70 2007 2007 2008 2008 2009 2009 2005 2006 2007 2008 2009 (FY) first second first second first second Ryosuke Hoshina half half half half half half * Trainings have been held twice a year (first and second Machinery & Assembly Shop, Machinery (FY) halves) since 2005. Figures represent the average Production Department, Yokohama Machinery * Number of participants over the past three years participation rates for the first and second halves. Works, Power Systems Headquarters

In September 2009, I attended training led by government agencies on prevent- Results of Compliance Awareness Survey ing collusive bidding and a session on order compliance. Knowing the rules is the Q How much are you aware of compliance? essential part of maintaining compliance, that is, observing the rules. The training Not much Strongly aware A little aware aware was extremely valuable in that sense. I also 1.1% learned the importance of maintaining a Fiscal strong commitment to observing the rules. 66.0% 30.8% Not sure 2009 Since taking part in the training, I have been 2.1% making a conscious effort, based on what I learned, to respond responsibly by observ- Fiscal 64.0% 32.0% 2.5% ing the rules while paying due consideration 2008 for the circumstances of my counterpart. 1.5% I hope to acquire more knowledge and practical experience on compliance so that Fiscal 59.5% 35.8% 2.9% in time compliance will no longer require a 2007 special effort but will come naturally to me. 1.8%

Q Does your workplace atmosphere allow you to point out cases of compliance violations? Yes, but nevertheless dif cult Yes No 4.5% Fiscal 64.2% 23.1% Not sure 2009 8.2%

Fiscal 60.8% 24.8% 9.5% 2008 4.9%

Fiscal 56.7% 26.8% 10.8% 2007 5.7%

35 Mitsubishi Heavy Industries, Ltd. Information Security However, in 2005 and 2006, PCs review the implementation status of secu- owned by an MHI employee and an rity measures. Once a year, the com- Information Systems & employee at a company that collabo- pany conducts a regular internal audit for Communications Department rates with MHI were infected by a com- employees at MHI who use PCs based and General Affairs puter virus that resulted in the leakage of on a common check list for all depart- Department take the lead product information, causing significant ments. Steps are taken to fix problems in protecting confidential inconvenience to customers. To pre- discovered by the audits and the status information vent the recurrence of such information of remedial actions is evaluated during leaks, the company reinforced its prohi- audits undertaken the following year. To protect confidential information, such bition against using privately owned PCs as data on corporate management and for business and installing software that Future efforts technology as well as information on is not required for company operations. customers and suppliers, MHI estab- In addition, to prevent information leak- Following the establishment of informa- lished a company-wide system led by the age resulting from theft or loss of PCs tion security management rules at over- Information Systems & Communications and external storage media, the com- seas Group companies, the company will Department and General Affairs pany has provided thorough instructions expand in fiscal 2010 the internal audits Department to effectively manage infor- on encrypting data on PCs, external stor- that have been conducted at MHI and mation, including paper-based docu- age media and e-mail, and clarifying pro- domestic Group companies to over- ments and electronic data, and enhance cedures for taking these devices outside seas Group companies. We will strive information security. the company. to further strengthen information secu- In regard to domestic Group com- rity through PDCA cycles on information Using the manual and panies, MHI provides instruction in the security management across the Group. database to thoroughly development of information security protect personal information management rules, information management training and internal audits to Risk Management and In conjunction with the enforcement of ensure the effective management of Crisis Management the Act on the Protection of Personal information across the entire Group. The Information in April 2005, MHI announced company also exchanges confidential- MHI undertakes risk and crisis manage- its own Privacy Policy and formu- ity agreements with service agents to ment across the Group under the basic lated Personal Information Protection ensure thorough management of confi- policy for internal control systems estab- Rules and the Personal Information dential information. lished in May 2006. Management Manual. In addition, the In fiscal 2009, MHI sought to estab- While the company has been imple- company compiled key points related lish information security management menting risk assessment over the years, to our business into a digest and dis- rules at overseas Group companies and it expanded the scope of assessment in tributed it to all employees in an effort to confirmed that about 90% of them have fiscal 2009 to include the entire Group. ensure thorough protection of personal in fact formulated such rules. It also identified higher priority risks after information. assessing risks affecting overall opera- A personal information database Implementing employee tions. The company plans to reinforce registration system has been developed training to enhance internal control activities starting in fiscal as a means for consolidating the handling awareness of management of 2010 and implement internal audits based of personal data by registering all data confidential information on the results of this risk assessment. owned by respective divisions. The company has also established Privacy Policy MHI has incorporated education on pro- a crisis management information system http://www.mhi.co.jp/en/ tection of personal information into com- that enables general managers within privacy.html pliance promotion trainings attended by MHI and presidents of Group compa- all employees and training by employee nies to directly relay risk-related informa- Constantly reinforcing level, and also provides e-learning on the tion to top management, including the measures to protect overall topic of confidential information President, so that rapid and accurate confidential information and information security to thoroughly response can be taken in the event a risk educate employees on specific proce- is realized. Over the years, MHI has managed con- dures and rules. Under the company’s crisis manage- fidential information by establishing in- In fiscal 2009, the company implement system, the Executive Vice Pres- house rules on managing confidential mented training for employees at MHI ident in charge of Risk Management is data, documents and other informa- and domestic Group companies who responsible for risk management for the tion. Standards on information security use PCs with the goal of developing an entire company, a risk management offi- management were set down in 2001 in awareness of circumstances that may cer has been assigned to each depart- response to the growing volume of elec- result in incidents or accidents related ment, and a task force is set up in case of tronic data and in an effort to more effec- to information security and to thoroughly an emergency. tively manage electronic information. disseminate preventive measures. The company has also sought to raise employee awareness of how to manage Continuously assessing the confidential information by preparing and status of security measures distributing a manual on the manage- through internal audits ment of confidential information as well as an MHI guide on how to prevent leak- To guarantee information security, it is age of confidential information. important to continuously assess and

CSR Report 2010 36 Responsibilities and Actions of MHI

Commitment to the Global Environment MHI is working to alleviate the increasing environmental burdens across the globe by providing environmentally friendly products and technologies in diverse fields as well as by deploying environmental preservation activities throughout the product lifecycle, from development and design to procurement of raw materials, production, on-site installation and final disposal.

INPUT Business Activities OUTPUT

Energy Planning and Greenhouse gases Marketing Total energy input 10,065,623,261 MJ*1 CO2 from energy sources 0.449 million t Purchased electricity 757,335 MWh*2 Other greenhouse gases (CO2 conversion) 0.008 million t Heavy fuel oil A 15,271 kL Development and Water City gas 21,964 km3 Design Gas oil 3,799 kL Wastewater 9.13 million t Heavy fuel oil C 5,173 kL Water pollutants*3 Kerosene 6,232 kL COD 28 t Steam 226,721,295 MJ Procurement Nitrogen 40 t LPG 4,488 t Phosphorus 1 t LNG 218 t Jet fuel 1,392 kL Waste materials Gasoline 477 kL Manufacture Generated volume 0.131 million t Water Trial running Recycled volume 0.117 million t Final disposal volume 0.002 million t Usage volume 10.76 million t Repair Air Pollutants*4 Raw materials NOx 169 t Iron, plastics, paper, others Distribution SOx 70 t Other Soot 12 t Other Chemical substances (PRTR) 3,327 t On-site installation Chemical substances (PRTR) 2,040 t

*1 1 MJ (megajoule) = 1,000,000 joules Usage *2 1 MWh (megawatt hour) = 1,000,000 watt hours *3 Water pollutants After-sales service Collection and Recycling of Used Products Output shown only for water pollutants subject to total volume control MHI products subject to the Home Appliance Recycling Law: Air-conditioners *4 Air pollutants Disposal Output shown only for NOx, SOx and soot subject to laws and Number of units recycled 166,000 units regulations Weight of recycled units 6,237 t Weight of materials recycled into products 6,882 t

37 Mitsubishi Heavy Industries, Ltd. Responsibilities and Actions of MHI Commitment to the Global Environment

Environmental Management

MHI established an environmental management structure and is committed to conducting unified environmental management across the MHI Group.

Environmental Management and unified environmental management ulation requirements have not been met, Structure for the MHI Group activities for the entire MHI Group. Under we will take thorough preventive measures environmental protection measures, we and implement training and drills for emer- Fortifying management conducted environmental audits of works gency response at each division, head- through a company-wide as planned and achieved the objectives. quarters and works. committee and promotion In situations where any environmental reg- entities at each division, Promoting mid- and long-term headquarters and works Environmental Management Structure targets for the entire Group

The company set up the Environment President The MHI Group formulated the MHI Committee chaired by the director in Director in charge of Group mid- and long-term environmen- charge of the environment to plan annual the environment tal targets, which set common targets for environmental actions for the entire Company-wide Entities all Group companies in April 2008. Under Environment Committee • Environment Liaison Conference company. Committee Chairman: Director this plan, special focus is on reducing CO2 • Energy Conservation Liaison in charge of the environment The decisions made by the Com- Conference emission by an average of 3% from 2008 mittee are communicated to the entire to 2012 compared to fiscal 2007; promot- Secretariat company and all Group companies. Envi- • General Affairs Department ing zero emissions*; and acquiring, main- Environmental Management Secretariat ronment Committees set up at each divi- Section • General Affairs Department taining and renewing certifications such sion, headquarters and works and other • Technical Headquarters’ Environmental Management as ISO environmental management. Technology Planning Section entities performing environmental promo- Department In fiscal 2009, we once again explained tion carry out the policy and environmen- these mid- and long-term targets to Group Technical Headquarters’ Divisions, tal management activities corresponding Technology Planning companies at the Environmental Meeting headquarters and works to the specific features of each division, Department (see p. 39) and other gatherings. Group headquarters and works. Environmental Committees Research & companies incorporated these mid- and at divisions, Development Centers In fiscal 2009, MHI focused on envi- headquarters and works long-term targets into their individual environmental protection measures, a mid- and Energy Conservation Liaison ronmental management promotion plans Conferences, etc. at divisions, long-term plan for environmental activities, headquarters and works and will work to achieve the targets. The MHI Group will further strengthen its efforts to work in an integrated manner toward Basic Policy on Environmental Matters (Established 1996) achieving the targets. As clearly laid out in provision 1 of its creed—“We strongly believe that the customer comes first * For MHI, zero emissions is defined as limiting landfill and that we are obligated to be an innovative partner to society.”—MHI believes its primary pur- waste to less than 2% of total waste. pose is to contribute to society through its R&D, manufacturing and other business activities. Ac- cordingly, in the performance of its business activities the company shall embrace the awareness that it is an integral member of society and, in all aspects of its business activities, it will strive to Conducting environmental reduce burden on the environment and shall devote its comprehensive technological capabilities audits at the works to to the development of technologies and products that will protect the environment, as its way of ascertain the status of contributing to the development of a sustainable society. compliance Action Guidelines (Established 1996) Since fiscal 2007, MHI has conducted 1. Accord high priority to environmental protection within company operations, and take steps environmental audits at the works in 13 company-wide to protect and enhance the environment. domestic sites (the divisions, headquar- 2. Clarify roles and responsibilities regarding environmental protection by developing an orga- ters and works). The goal of the audits is nized structure to deal with environmental protection matters, defining environment-related to review the system for ensuring compli- procedures, etc. ance with environmental laws and regu- 3. Strive to alleviate burden on the environment in all aspects of company business activities— lations and its operation by inspecting from product R&D and design to procurement of raw materials, manufacture, transport, us- documents and activities on site. During age, servicing and disposal—through pollution prevention, conservation of resources, energy saving, waste reduction, reuse and recycling. the audits, the Environment Section of the General Affairs Department of the Head 4. Strive to develop and provide advanced, highly reliable, wholly proprietary technologies and products that will contribute to solving environmental and energy problems. Office serves as a secretariat, and inspec- tors dispatched from works other than the 5. Strive continuously to improve and enhance environmental protection activities not only by fully complying with environmental laws and regulations but also, when necessary, by estab- audited works constitute the audit team. lishing, implementing and evaluating independent standards and setting environmental goals The audit, in principle, takes one day, and targets. with a document review in the morning 6. In the performance of business activities overseas and exportation of products, pay full at- and a site review in the afternoon. Audit tention to impact on the local natural and social environments and strive to protect those results are reported to the Environment environments; also, become actively involved in technological cooperation overseas in matters Committee and audit information, includ- of environmental protection. ing corrective actions taken, is to be 7. Take steps to raise environmental awareness among all employees through environmental shared across the company. education, etc., undertake activities to provide environment-related information to the public, In fiscal 2009, the company audited and proactively make environment-enhancing contributions to society. four sites: Nagoya Guidance & Propul-

CSR Report 2010 38 Responsibilities and Actions of MHI Commitment to the Global Environment

sion Systems Works, Takasago Machin- of its own to promote the introduction of identifying any contamination present in ery Works, Nagoya Aerospace Systems environmental management systems soil or groundwater. Works, and Kobe Shipyard & Machinery across the Group and reduce costs: In fiscal 2009, in conjunction with the Works and confirmed that their environ- M-EMS and M-EMS EcoAction. Both are land modifications, the Nagoya Aerospace mental management was being properly based on ISO 14001 and EcoAction 21, a Systems Works conducted soil tests at carried out. set of guidelines developed in Japan. the Komaki Minami Plant (Toyoyama-cho, In fiscal 2010, the company also In fiscal 2009, 5 Group companies Nishikasugai-gun, Aichi Prefecture) in April plans to audit four sites: Air-Condition- (7 sites) in Japan acquired environmental and at the Oye Plant (Minato-ku, Nagoya) ing & Refrigeration Systems Headquar- ISO and other certifications. in July. The testing revealed soil con- ters, Machine Tool Division, Iwatsuka Out of MHI’s 125 domestic consol- tamination from lead. Test results were Area*, and Nagasaki Shipyard & Machin- idated Group companies, 99 now have promptly reported to local government ery Works. in place environmental management sys- authorities and publicly released. Although * Iwatsuka Area is the collective name for the Iwatsuka tems as of March 31, 2010. there was no adverse impact on the sur- Area Management Department of the Machinery & Steel rounding environment, the company took Structures Headquarters, Iwatsuka District of General Machinery & Special Vehicle Headquarters, Iwatsuka Raising environmental action by excavating and removing the Plant of Machine Tool Division, Nagoya Research & contaminated soil. Development Center, Mitsubishi Heavy Industries Food awareness among all employees & Packaging Machinery Co., Ltd. and Mitsubishi Heavy through environmental Industries Plastic Technology Co., Ltd. education by position Promoting green purchasing

Initiating Environmental MHI developed environmental educa- MHI established its internal green pur- Meetings with Group companies tion curricula, including e-learning, to be chasing policy in March 2002. Based on implemented by each works. this policy, MHI purchases environmen- Environmental Meetings have been held In addition to a semiannual internal tally friendly office supplies and other since fiscal 2007 to unify environmen- environmental auditor training course orga- goods. In fiscal 2009, the company tal management across the entire MHI nized by the Head Office, the company issued an instruction at the Environment Group with the primary goal of ensur- also conducts special training for employ- Committee meeting across the company ing the compliance of Group companies ees who paint or handle hazardous mate- to promote green purchasing. and preventing environmental pollu- rials to learn the proper procedures in daily In fiscal 2010, MHI continues to pro- tion. The meetings identify problems, management and the appropriate actions mote green purchasing across the entire support exploration of improvements for dealing with emergency situations. Group. and exchange information related to the environment. Registered ISO 14001 Internal Auditors State of environmental- In fiscal 2009, MHI held Environ- (as of April 1, 2010) related accidents and mental Meetings at 14 domestic Group FY 2005 2006 2007 2008 2009 2010 noncompliance with laws companies that had acquired Japanese Number 497 593 684 687 815 847 standards for environmental management, Intensifying measures to EcoAction 21 (promoted by the Ministry of prevent recurrence across Environment), K-EMS (Kobe Environmen- Controlling and Improving the company, in response tal Management System), and Kamak- Response to Potential to noncompliance with ura EcoAction 21. The company received Environmental Impact Risks wastewater standards reports on actions taken for environmental management at each company and col- Clarifying the risks at each On June 30, 2009, the company dis- lected information on best practices while works and addressing them covered that the hydrogen-ion concen- providing guidance for improvement. through daily management tration (pH) of wastewater discharged In addition, the company held the from the comprehensive wastewater Environmental Liaison Conference with 14 The company has prepared and uses treatment facility at the Matsusaka Plant Group companies that had participated an ISO-based manual for each works, of the Air-Conditioning & Refrigeration in the Environmental Meeting in Febru- encompassing such issues as risk identi- Systems Headquarters (Matsusaka-shi, ary 2010 to share best practices and fication methods, daily management pro- Mie Prefecture) exceeded the lower limit information reported at the Environmen- cedures and contingency plans. of 5.8 by 0.2. tal Meeting across the Group. Starting in At each works, emergency response The Plant promptly carried out neu- fiscal 2010, the company plans to hold drills are carried out regularly to confirm tralization treatment and returned the pH the second round of Environmental Meet- the effectiveness of response procedures value of the wastewater to a normal level ings for 15 companies, consisting of the for emergencies such as oil spills and and reported the situation to the local gov- Group companies that had attended the earthquakes. ernment. The incident was also reported Meeting held from fiscal 2007 to 2009 for In the event of any crisis in any plant, to the President through the in-house Group companies that had independently the company’s in-house crisis manage- crisis management information system. acquired environmental ISO certification ment information system is prepared to In response, each division, headquar- and other Group companies. quickly convey information to the President. ters and works took measures under the instruction of the Head Office to prevent Establishing and operating Remediation of contaminated the recurrence of such problems, focus- an Environmental soil and groundwater ing on (1) inspection and review of waste- Management System Based water treatment facilities, (2) review of on its Own Standards When the company sells or modifies emergency response capabilities, and (3) land, it reports in advance to the relevant implementation of training and drills for Establishing two unique local government authorities, local com- workers at these facilities. An environmen- standards that are compliant munities or their associations under the tal audit organized by the Head Office was with ISO and EcoAction 21 Soil Contamination Countermeasures conducted on site to follow up on and Law and applicable local regulations, review implementation of these measures. MHI created two environmental standards while thoroughly investigating and

39 Mitsubishi Heavy Industries, Ltd. Environmental Management Systems Adopted at MHI and Its Subsidiaries As of August 1, 2010

ISO 14001 certiﬁcation at MHI works and research & development centers MHI Group companies adopting M-EMS (based on ISO 14001) Location or company name Date of issue (or registration) Location or company name Date of issue (or registration) Yokohama Machinery Works Oct. 31, 1997 Kensa Kenkyusho Inspection Co., Ltd. Apr. 25, 2005 May 22, 1998 Nagasaki Shipyard & Machinery Works Ryoin Co., Ltd., Shinagawa Branch Apr. 26, 2005 Takasago Machinery Works Jun. 26, 1998 Mitsubishi Heavy Industries Air-Conditioning & Refrigeration Systems Corporation May 13, 2005 Air-Conditioning & Refrigeration Systems Headquarters Nov. 20, 1998 General Machinery & Special Vehicle Headquarters May 21, 1999 Mitsubishi Heavy Industries Engine Systems Co., Ltd. Jul. 12, 2005

Mihara Area (former Paper & Printing Machinery Division) Sep. 3, 1999 companies Aomori Daiya Co., Ltd. Jul. 12, 2008 Domestic Group Transportation Systems & Advanced Technology Division (Mihara) Sep. 3, 1999 Kagoshima Daiya Co., Ltd. Jul. 12, 2008 Industrial Machinery Business, Technology & Solutions Division (Hiroshima) Sep. 30, 1999 Mitsubishi Engine North America, Inc Jan. 19, 2007 Shimonoseki Shipyard & Machinery Works Nov. 24, 1999 Group MHI sit e s Overseas MLP U.S.A., Inc. Jan. 19, 2007 Nagoya Guidance & Propulsion Systems Works Dec. 18, 1999 companies Kobe Shipyard & Machinery Works Feb. 18, 2000 MHI Group companies M-EMS EcoAction (based on EcoAction 21) Iwatsuka Area (former Industrial Machinery Division) Mar. 17, 2000 Location or company name Date of issue (or registration) Machine Tool Division Dec. 28, 2000 Ryoin Co., Ltd., Sagamihara Branch Apr. 25, 2005 Environmental & Chemical Plant Division (Yokohama) Jun. 29, 2001 Shunjusha Ltd. Apr. 26, 2005 Nagoya Aerospace Systems Works Oct. 1, 2003 MHI Sagami High-tech, Ltd. May 9, 2005 Head Ofﬁce Apr. 6, 2006 Ryosen Engineers Co., Ltd. May 10, 2005 Nagasaki Research & Development Center Aug. 21, 2006 Advanced Technology Research Center Nov. 9, 2006 Hiroshima Dia System Co., Ltd. May 11, 2005 Yokohama Research & Development Center Nov. 9, 2006 MHI Marine Engineering, Ltd. May 16, 2005 Hiroshima Research & Development Center (Hiroshima) Aug. 2, 2007 Churyo Engineering Co., Ltd. May 16, 2005 Hiroshima Research & Development Center (Mihara) Dec. 5, 2006 Ryoin Co., Ltd., Minatomirai Branch May 16, 2005

Research & Nagoya Research & Development Center Dec. 26, 2006 MHI Aerospace Systems Corp. Jul. 12, 2005 Takasago Research & Development Center Mar. 9, 2007 MDS Corporation Jul. 22, 2005 development centers

Domestic Group companies Mayryoko Foodservice Co., Ltd. Mar. 25, 2009 ISO 14001 certification at MHI Group companies Ryosei Service Co, Ltd. Jun. 10. 2009 Location or company name Date of issue (or registration) Diamond Travel Co., Ltd. Mar. 1, 2010 MHI Solution Technologies Co., Ltd. Aug. 28, 1998 Mitsubishi Agricultural Machinery Co., Ltd. Jul. 24, 2001 Group companies incorporated into ISO 14001 certification at MHI works or Head Office Nagoya Ryoju Estate Co., Ltd. Mar. 14, 2002 Date of issue Location or company name (or registration) MHI division or works Nishinihon Ryoju Estate Co., Ltd. Jul. 12, 2002 Mitsubishi Heavy Industries Plastic Technology Co., Ltd. Apr. 1, 2000 Iwatsuka Area (former Industrial Machinery Division) Chubu Jukan Operation Co., Ltd., Head Office Jan. 13, 2004 Ryoin Co., Ltd., Nagoya Branch Oct. 22, 2004 Nagoya Aerospace Systems Work Ryoin Co., Ltd., Printing Division, Tokyo Plant (including Head Office) Apr. 23, 2004 MHI Aerospace Production Technologies, Ltd. Oct. 22, 2004 Nagoya Aerospace Systems Work Ryoin Co., Ltd., Printing Division, Chubu Plant Jul. 22, 2004 Diamond Air Service Incorporation Oct. 22, 2004 Nagoya Aerospace Systems Work Shimonoseki Ryoju Estate Co., Ltd. Mar. 14, 2005 Ryoju Estate Co., Ltd. Mar. 17, 2005 Ryoin Co., Ltd., Shimonoseki Branch Nov. 22, 2004 Shimonoseki Shipyard & Machinery Works Mitsubishi Heavy Industries Food & Packaging Machinery Co., Ltd. Mar. 17, 2005 Kanmon Dock Service, Ltd. Nov. 22, 2004 Shimonoseki Shipyard & Machinery Works Seibu Jukan Operation Co., Ltd. Mar. 22, 2005 Shimonoseki Ryo-Jyu Engineering Co., Ltd. Nov. 22, 2004 Shimonoseki Shipyard & Machinery Works Kusakabe Co., Ltd. Mar. 24, 2005 Ryoin Co., Ltd., Nagoya Nishi Branch Jan. 6, 2005 Iwatsuka Area (former Industrial Machinery Division) Tamachi Building Co., Ltd. Mar. 25, 2005 MHI Machine Tool Engineering Co., Ltd. Feb. 25, 2005 Machine Tool Division Hiroshima Ryoju Estate Co., Ltd. Apr. 9, 2005 Ryoin Co., Ltd., Kyoto Branch Feb. 25, 2005 Machine Tool Division Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (Head Office and Branch Office) Apr. 12, 2004 MHI Aero Engine Service Co., Ltd. Apr. 11, 2005 Nagoya Guidance & Propulsion Systems Works Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (Engineering Division) Feb. 17, 2005 MHI Logitec Company Limited Apr. 11, 2005 Nagoya Guidance & Propulsion Systems Works Domestic Group companies Ryoju Cold Chain Co., Ltd. Apr. 22, 2005 MHI Diesel Service Engineering Co., Ltd. May 12, 2005 Kobe Shipyard & Machinery Works Mitsubishi Heavy Industries Precision Casting Co., Ltd. May 11, 2005 Nuclear Plant Service Engineering Co., Ltd. May 12, 2005 Kobe Shipyard & Machinery Works Tokiwa Machinery Works Ltd. May 18, 2005 Sanshin-Tec. Ltd. May 12, 2005 Kobe Shipyard & Machinery Works Jukan Operation Co., Ltd., Head Office Aug. 1, 2005 Mitsubishi Heavy Industries Parking Co., Ltd. May 14, 2005 Yokohama Machinery Works MHI Aerospace Logitem Co., Ltd. Jan. 5, 2007 Ryoin Co., Ltd., Yokohama Branch May 14, 2005 Yokohama Machinery Works Mitsubishi Heavy Industries Air-Conditioning & Thermal Systems Corporation, System Production Department Sep. 14, 2007 Ryoju Estate Co., Ltd., Yokohama Branch May 14, 2005 Yokohama Machinery Works Mitsubishi Heavy Industries Printing & Paper Converting Machinery Sales Co., Ltd. Jun. 26, 2008 MHI Energy & Service Co., Ltd. May 14, 2005 Yokohama Machinery Works Mitsubishi Heavy Industries Bridge & Steel Structures Engineering Co., Ltd., Chiba Plant Mar. 25, 2010 Koryo Inspection & Service Co., Ltd. May 14, 2005 Takasago Machinery Works Mitsubishi Heavy Industries-Haier (Qingdao) Air-Conditioners Co., Ltd. Dec. 14, 1998 MHI Equipment Europe B.V. Nov. 9, 2001 Mitsubishi Heavy Industries Plant Construction Co., Ltd., Power Systems Service Headquarters May 14, 2005 Takasago Machinery Works Mitsubishi Caterpillar Forklift Europe B.V. Jul. 25, 2002 Koryo Engineering Co., Ltd. May 14, 2005 Takasago Machinery Works Mitsubishi Heavy Industries Climate Control Inc. Jun. 12, 2003 Ryoin Co., Ltd., Takasago Branch May 14, 2005 Takasago Machinery Works Mitsubishi Power Systems, Inc., Orlando Service Center Feb. 18, 2004 Nuclear Plant Service Engineering Co., Ltd., Takasago Division May 14, 2005 Takasago Machinery Works MHI Automotive Climate Control (Shanghai) Co., Ltd. Jul. 11, 2005 Industrial Machinery Business, Technology CBC Industrias Pesadas S.A. Dec. 1, 2005 MEC Engineering Service Co., Ltd. Jun. 23, 2005 & Solutions Division (Hiroshima) Mitsubishi Heavy Industries Korea Ltd. Dec. 17, 2005 Industrial Machinery Business, Technology Mitsubishi Heavy Industries Mahajak Air Conditioners Co., Ltd. Dec. 21, 2005 Hiroshima Ryoju Engineering Co., Ltd. Jun. 23, 2005 & Solutions Division (Hiroshima) Mitsubishi Heavy Industries-Jinling Air-Conditioners Co., Ltd. Jan. 24, 2006 Industrial Machinery Business, Technology MHI Machine Tool (Hong Kong) Ltd. Mar. 30, 2006 Mitsubishi Heavy Industries Plant Construction Co., Ltd. Jun. 23, 2005 & Solutions Division (Hiroshima) Mitsubishi Heavy Industries, (Hong Kong) Ltd. Apr. 5, 2006 Industrial Machinery Business, Technology MLP Hong Kong Ltd. May 25, 2006 Mitsubishi-Hitachi Metals Machinery, Inc. Jun. 23, 2005 & Solutions Division (Hiroshima) Mitsubishi Heavy Industries, (Shanghai) Co., Ltd. Jul. 5, 2006

Overseas Group companies Industrial Machinery Business, Technology Ryoin Co., Ltd., Hiroshima Branch Jun. 23, 2005 MHI-Pornchai Machinery Co., Ltd. Jul. 17, 2006 & Solutions Division (Hiroshima) Mitsubishi Heavy Industries India Private Ltd. Dec. 7, 2006 Sagami Logistics & Service Co., Ltd. Sep. 13, 2005 General Machinery & Special Vehicle Headquarters Mitsubishi Heavy Industries Singapore Private Ltd. Jan. 21, 2007 Choryo Senpaku Kouji Co., Ltd. Sep. 22, 2005 Nagasaki Shipyard & Machinery Works Mitsubishi Heavy Industries America, Inc. Headquarters Oct. 15, 2007 Domestic Group companies Ryoin Co., Ltd., Nagasaki Branch Sep. 22, 2005 Nagasaki Shipyard & Machinery Works Mitsubishi Heavy Industries America, Inc. Tire Machinery Division Oct. 15, 2007 Choryo Inspection Co., Ltd. Sep. 22, 2005 Nagasaki Shipyard & Machinery Works Mitsubishi Caterpillar Forklift America Inc. Dec. 6, 2007 MHI Oceanics Co., Ltd. Sep. 22, 2005 Nagasaki Shipyard & Machinery Works Mitsubishi Heavy Industries (Thailand) Ltd. Dec. 31, 2007 MHI Equipment Alsace S.A.S. Mar. 17, 2009 Kowa Kogyo Co., Ltd. Sep. 22, 2005 Nagasaki Shipyard & Machinery Works Thai Compressor Manufacturing Co., Ltd. Jun. 27, 2003 Choryo Control Systems Co., Ltd. Sep. 22, 2005 Nagasaki Shipyard & Machinery Works Choryo Designing Co., Ltd. Sep. 22, 2005 Nagasaki Shipyard & Machinery Works EcoAction 21 certification at MHI Group companies MHI Maritech, Ltd. Sep. 22, 2005 Nagasaki Shipyard & Machinery Works Location or company name Date of issue (or registration) Choryo Software Co., Ltd. Sep. 22, 2005 Nagasaki Shipyard & Machinery Works Daiya Building Service Co., Ltd. Apr. 21, 2005 Mitsubishi Heavy Industries Machine Tool Sales Co., Ltd. Jan. 13, 2006 Machine Tool Division Nuclear Development Co., Ltd. May 30, 2005 Ryoju Estate Co., Ltd., Department of Facilities Management Service Apr. 6, 2006 Head Office Ryonichi Engineering Co., Ltd. Oct. 31, 2005 Tamachi Bldg. Co., Ltd., Shinagawa Building Management Center Apr. 6, 2006 Head Office Kyuusyuu Jyukan Operation Co., Ltd. Head office Jun. 11, 2008 MHI Personnel Staff, Ltd. Apr. 6, 2006 Head Office

companies Higashi Chugoku Ryoju Estate Co., Ltd. Oct. 15, 2009 MHI Tourist, Ltd. Apr. 6, 2006 Head Office Domestic Group Hiroji Center Co., Ltd. Jan. 29, 2010 MHI Accounting Service, Ltd. Apr. 6, 2006 Head Office Apr. 6, 2006 K-EMS certification at MHI Group companies MHI Finance Co., Ltd. Head Office Dia Food Service Co., Ltd. Apr. 6, 2006 Head Office Location or company name Date of issue (or registration) Daiya PR Co., Ltd. Apr. 6, 2006 Head Office Seiryo Engineering Co., Ltd. Dec. 24, 2004 Diamond Air Service Incorporation, Tokyo Office Apr. 6, 2006 Head Office Kinki Ryoju Estate Co., Ltd. Feb. 23, 2005 E-Techno, Ltd. May 12, 2006 Kobe Shipyard & Machinery Works Mitsubishi Heavy Industries Mechatronics Systems, Ltd. Feb. 23, 2005 Choryo Engineering Co., Ltd. Aug. 21, 2006 Nagasaki Shipyard & Machinery Works MHI Nuclear Engineering Co., Ltd. Mar. 24, 2005 Nuclear Power Training Center, Ltd. Mar. 24, 2005 Foods Ryowa Co., Ltd. Nov. 27, 2006 Shimonoseki Shipyard & Machinery Works Mitsubishi Heavy Industries Bridge & Steel Structures Industrial Machinery Business, Technology MHI General Services Co., Ltd. Mar. 24, 2005 Aug. 2, 2007 Engineering Co., Ltd. & Solutions Division (Hiroshima) Ryoin Co., Ltd., Kobe Branch Mar. 24, 2005 Techno Data Engineering Co., Ltd. Feb. 27, 2006 MHI Solution Technologies Co., Ltd. Takasago Branch Apr. 9, 2008 Takasago Machinery Works Shinryo System Corp. May 1, 2008 Kobe Shipyard & Machinery Works

Domestic Group companies Energis Co., Ltd. Mar. 23, 2006 Nagasaki Diamond Staff Co., Ltd. Jun. 16, 2009 Nagasaki Shipyard & Machinery Works Kamakura EcoAction 21 certiﬁcation at MHI Group companies Nagasaki Ryoko Service Co., Ltd. Jun. 16, 2009 Nagasaki Shipyard & Machinery Works Location or company name Date of issue (or registration) Ryoju Estate Co., Ltd., Yokohama Building Service Department Oct. 19, 2009 Head Ofﬁce Domestic Group company Shonan Monorail Co., Ltd. Apr. 4, 2007 Ryoin Co., Ltd., Mihara Branch Jan. 20, 2010 Mihara Area (former Paper & Printing Machinery Division)

CSR Report 2010 40 Responsibilities and Actions of MHI Commitment to the Global Environment

Targets and Progress

MHI led the way among shipbuilders and heavy-equipment manufacturers as one of the first to establish medium- to long-term environmental activity goals in 2002. The entire organization is pursuing environmental activities to accomplish the target. Progress through fiscal 2009 is summarized below.

Targets and progress in FY2009 = Target achieved or progressing on schedule = More effort required X = Target not yet achieved

Item Medium or long-term goals Progress through FY2009 Evaluation

Reduced waste generation By FY2010, reduce total generated waste to 170,000 tons (greater than 20% reduction from FY1992 level): to be achieved by Total emissions: 131,000 tons and emissions conserving resources and reducing the purchase of materials 39.4% reduction from FY1992 level

Zero emissions achieved by Kobe Shipyard & Machinery Reduced landﬁll waste By FY2010, achieve zero landfill waste disposal at all works through Works (April 2009): Number of works meeting goal reuse and recycling disposal increased to 12 (1 works remaining)

• By FY2010, completely eliminate lighting ballasts and high-voltage equipment using PCBs Elimination of equipment • Replacement gradually progressing as planned • Request Japan Environmental Safety Corporation (JESCO) to render the using PCBs and • Eight MHI works outsourced treatment and disposal of used transformers, condensers and oils harmless now stored or being equipment using high concentrations of PCBs to JESCO. detoxiﬁcation treatment used in MHI, toward completing the task by FY2011 (excluding ballasts, smaller equipment and equipment that uses low-concentration PCB)

Zero atmospheric emissions of dichloromethane, trichloroethylene Reduced emissions of Atmospheric discharge: 27.3 tons and tetrachlorethylene by FY2010: to be achieved through total 89.6% reduction from FY1996 level organochlorides management and reduced release of organochlorides

More than 30% reduction of atmospheric emission of VOC with focus Total emission of xylene, toluene and ethylbenzene: 1,958 tons on xylene, toluene and ethylbenzene (reduced by 704 tons from Reduced VOC emissions Reduced by 13.7% from the FY2000 level 2,268 tons in FY2000 to 1,564 tons in 2010)

6% reduction of the average CO2 emission amount for the five years CO2 emissions: 449,000 tons from FY2008 to 2012 (from FY1990 level): to be achieved through 4.9% reduction from FY1990 level reduction efforts at all production plants

Completed introducing additional 50 kW to Kobe Shipyard & Machinery Works in Dec. 2009, 70 kW to Takasago By FY2010, introduce photovoltaic facilities capable of generating a Reduced CO2 emissions Machinery Works in Feb. 2010 and 100 kW to Nagoya total of 2,000 kW from business activities Guidance & Propulsion Systems Works in Feb. 2010. Achieved cumulative total of 2,110 kW against 2,000 kW target.

More than 13% reduction of the average CO2 emission amount for Head Office (Shinagawa and Yokohama) reduced by 13.1%* the five years from FY2008 to 2012 (from FY2005 level): to be from FY2005 level achieved through reduction efforts at offices and operations divisions * According to data reported to the Tokyo Metropolitan (Head Office, domestic offices and research & development centers) Government and the Bureaus of Economy, Trade and Industry

More than 4% reduction of energy consumption in transportation in Reduced energy usage Transportation energy consumption: (continuing from FY2010 (from FY2006 level) by promoting efforts to reduce and CO2 emissions from FY2008) Exceeded the legal target of more than 1% transportation energy (unit energy consumption of FY2006: 50.7 reduction per year; also in FY2009 product transportation 48.7 by FY2010)

Reduced ﬂuorocarbon By FY2010, completely replace potentially ozone-depleting HCFCs Emissions in FY2009: 16.7 tons usage with 100% ozone-safe HFCs, etc. Efforts underway toward complete elimination in FY2010

Ongoing renewal of ISO 14001 by 15 domestic works Consolidated environmental Ongoing ISO14001 renewal by domestic works, Head Office, branch (including research & development centers), Head Office and offices and research & development centers management system branch offices

Utilization of environmental Promoting effective use of environmental management information management information system systems and disclosure of information Tabulation of environmental performance data, environmental accounting, and so forth was conducted using the database system leading to the information disclosed in Promotion of consolidated Promoting collection of environmental accounting data through use of environmental management information system and disclosing this report environmental accounting information through CSR Report

Ongoing issuance of Issuance of CSR Report (Social and Environmental Report) in Ongoing issuance of CSR Report (Social and Environmental Report) June 2009. Includes some information from Group Group CSR Report that includes Group company information (Social and Environmental) companies.

Promotion of green Promoting the purchase of environmentally friendly products based Green purchasing rate: 92.6% purchasing on the company’s own green purchasing guidelines

• Efforts to develop and provide innovative technologies and products Development and provision that help society reduce environmental degradation through “Basic Efforts made to develop and provide products that address Guideline on Production of Environmentally Friendly Products” global warming; including a wide variety of high-efficiency of environmentally friendly (established in 2005) power generating facilities, photovoltaic facilities, wind power technologies and products • Special efforts to develop and provide innovative technologies and generation systems and CO2 recovery systems products that address global warming and create a low-carbon society

41 Mitsubishi Heavy Industries, Ltd. Environmental Accounting

MHI quantitatively monitors investments and costs for protecting the environment as part of the performance reviews of the company’s business activities and also calculates the relative benefits of these efforts. The company refers to the Environmental Accounting Guidelines published by the Ministry of the Environment.

6.6 billion yen in investments and 15.6 billion yen in costs Total investments amounted to 6.6 billion while total costs were 15.6 billion yen for fiscal 2009. Both figures represented slight increases over fiscal 2008. Economic advantages valued at 1.6 billion yen were gained during the year, consisting mainly of revenues from recycling and reduced costs for purchasing electricity due to energy savings.

Environmental protection costs and economic benefit (non-consolidated) (Millions of yen) Investment Cost Economic benefit Environmental Cost category Activities in FY2008 2008 2009 2008 2009 2008 2009 Description protection benefit 1. Production activities 4,656 5,280 5,842 6,723 3,932 1,522 Maintenance and operation of wastewater Reduced emissions of (1) Pollution control and flue-gas treatment systems 2,157 3,590 3,587 4,051 1 — air and water pollutants

(2) Global environmental Cost reduction from Energy savings 2,278 1,380 188 510 134 188 Reduced energy input protection energy savings Income derived from (3) Recycling Reduced waste generation, recycling 221 310 2,067 2,162 3,797 1,334 recycling, cost reduction from reduced waste generation Recycling of household electrical 2. Upstream and 0 0 39 10 60 44 downstream costs appliances and container packaging Development of environmental management systems, ISO 3. Management activities Ofﬁce, publication of MHI Social & Environmental Report 86 22 1,345 1,222 — — Development of environmentally Development of diverse 4. R&D friendly products 822 937 7,359 7,204 13 — environmentally friendly products Support of environmental protection initiatives, 5. Public and social activities greening activities 16 6 249 285 — — 6. Environmental remediation Soil remediation measures 662 398 516 145 — — Prevention of oil and chemical spills Total 6,242 6,643 15,350 15,589 4,005 1,566 * Total capital investments in FY2009: 128.3 billion yen. Portion related to the environment: 6.6 billion yen (5.1%). * Total R&D outlays in FY2009: 104.6 billion yen. Portion related to the environment: 8.1 billion yen (7.7%).

Topics Preserving Biodiversity Introduction of e-manifest Under the philosophy of contribut- In the course of implementing Reform of Operational Processes related to waste treatment, ing to the development of a sustain- MHI focuses on introducing e-manifests (electronic manifests) at the Head Office and all of able society in the Basic Policy on the MHI works over three years (fiscal 2009–2011), thereby supporting the government’s Environmental Matters, MHI pro- policy of promoting a wider use of e-manifests. motes programs on biodiversity, The company set fiscal 2009 as the pilot year for this program and designated the Kobe which plays a vital role in conserving Shipyard & Machinery Works as the model works. After completing several preparatory ecosystems and the natural environ- tasks for introducing e-manifests, such as a one-time registration of all of the works with the ment. For instance, the killifish and Japan Industrial Waste Technology Center, the company began officially using e-manuals in crawfish that live in the factory drain the main plant of the Kobe Shipyard & Machinery Works in November 2009. of the Industrial Machinery Business, In fiscal 2010, the company plans to introduce e-manifests at seven additional works. Technology & Solutions Division The introduction of e-manifests to all MHI works will be completed during fiscal 2011 ending in Hiroshima are endangered spe- March 31, 2012). cies. The works ensures that drain water is always clean to protect Conceptual scheme of e-manifest these species. MHI also endorses the Declaration of Biodiversity by Nippon Keidanren. (MHI) Contractor Contractor Contractors collecting and disposing generating transporting of wastes wastes wastes

Registration Notice Reporting Reporting with (transportation, completion completed e-manifest disposal, etc.) of transportation disposal

MHI Wastes JWNET*2 Information Storage and management Management Processing Center of e-manifest information Information EDI*1 version System *1 EDI: Electric Data Interchange *2 JWNET: Japan Waste Network

CSR Report 2010 42 Responsibilities and Actions of MHI Commitment to the Global Environment

Countermeasures against Global Warming

To contribute toward achieving Japan’s target on a reduction in CO2 emissions under the Kyoto Protocol, MHI focuses on further reducing CO2 emissions while continuing to adopt equipment enabling outstanding energy saving and superlative operating efficiency.

Promoting Measures to Change in CO2 emissions Greenhouse gas emissions Conserve Energy and (10,000 tons) excluding CO2 emissions from Reduce CO2 Emissions Standard 60.0 54.9 Target energy use value 54.0 52.9 51.3 value 47.2 44.9 44.3 MHI has been compiling data on green- Implemented additional 40.0 reduction measures house gas emissions (excluding CO2 emissions from energy use) since fiscal at individual divisions, 20.0 headquarters and works 2006 under the system enforced in fiscal 0 2006 for calculating, reporting and pub- 1990 2005 2006 2007 2008 2009 Average MHI’s CO2 reduction target is set at an lishing emissions of greenhouse gases. from 2008 average of 6% against 1990 levels for the to 2012 The actual emission record of fiscal 2009 five years from fiscal 2008 to 2012, as (FY) was 8,000 tons, a reduction from the pre- defined for the first commitment period Change in gross energy input vious fiscal year (13,000 tons). of the Kyoto Protocol. In fiscal 2008, to achieve this tar- (TJ*) Breakdown of greenhouse gas 11,375 11,659 get, the Executive Committee formulated 12,000 10,963 11,145 emissions (excluding CO2 emissions 10,065 from energy use) and adopted a CO2 emissions reduc- 9,000 tion acceleration and enforcement action Sulfur hexaﬂuoride (SF ) 6.8% plan. In fiscal 2009, based on the plan, 6,000 6 MHI implemented additional measures 3,000 to reduce emissions, such as installing Hydroﬂuorocarbon (HFC) 9.0% 0 highly efficient lighting and converting 2005 2006 2007 2008 2009 boiler fuel. (FY) * TJ (terajoule) = 1 trillion joules (1,000,000,000,000 J) Dinitrogen monoxide (N2O) 12.5% Further reductions of CO2 emissions from energy use Change in electricity purchases Methane (CH4) 14.0% In fiscal 2009, MHI’s CO2 emissions (MWh) resulting from energy use were 449,000 900,000 864,840 857,030 CO2 emissions not resulting from energy use 57.7% tons, reduced by 12.5% over the previous 763,947 789,301 757,335 year, as a result of CO2 reduction mea- 600,000 sures and decreased operation of several Arranging purchase of plants particularly for mass and medium- 300,000 emission credits lot manufacturing affected by the global recession starting in fall 2008. MHI determined the total emission cred- 0 In fiscal 2009, we reduced CO2 2005 2006 2007 2008 2009 its to be purchased mainly through emissions by 4.9% compared to the (FY) JI (Joint Implementation)*1 and CDM base year (1990), nine years after we had (Clean Development Mechanism)*2 of the achieved such reduction from the base 1 M kWh of green power used Kyoto Mechanism. This is to offset the year in fiscal 2000. Further improvement, each year increased emissions up to 2012 based however, will be required to achieve the on the policy of using emission credits to target of an average 6% reduction over MHI has contracted with Japan Natural compensate for increases and shortfalls the five-year period (fiscal 2008–2012) Energy Co., Ltd. (JNE) to purchase 1 M due to such factors as construction of a from fiscal 1990 levels. The company kWh of wind-generated power from new plant. will continue reducing CO2 emissions by JNE each year for a period of 15 years Purchased emission credits will be thoroughly implementing the CO2 emis- starting April 2002. In fiscal 2009, MHI included in Japan’s greenhouse gas sions reduction acceleration and enforce- used 0.495 M kWh of this clean power reduction plan, as they are transferred ment action plan. at its Head Office without compensation from the compa- and 0.498 M kWh ny’s own dedicated management account at the Mitsubishi to the redemptive account of the govern- M i n a t o m i r a i ment. MHI applied for its own dedicated Industrial Museum. management account and was granted approval in October 2007. *1 System in which a company invests in greenhouse gas reduction projects in advanced countries and applies the reduced emissions to achieve its own goals. Green power certificate *2 System in which a company invests in greenhouse gas reduction projects in developing countries and applies the reduced emissions to achieve its own goals.

43 Mitsubishi Heavy Industries, Ltd. Measures to Curb Energy Total traffic volume Energy consumption and CO2 emissions Use in Transport (Thousand ton-km) (GJ*) (t-CO2) 200,000 191,578 Transportation energy 159,810 800,000 24,500 28,000 150,000 19,460 consumption reduced by 119,064 600,000 21,000 1.5% from fiscal 2008 100,000 14,268 400,000 357,181 14,000 283,303 The amended Act Concerning the 50,000 207,823 200,000 7,000 Rational Use of Energy enforced in April 0 2006 requires shippers to reduce energy 2007 2008 2009 0 0 (FY) 2007 2008 2009 consumption in transport by a total of 5% (FY) over the five years ending fiscal 2010. As Total energy consumption Total CO2 emissions a company subject to the Act, MHI set As a result of these efforts, transpor- * GJ (gigajoule) = 1,000 MJ (megajoules) the target of reducing annual transporta- tation energy consumption in fiscal 2009 tion energy consumption by a minimum was reduced by 1.5% from fiscal 2008, average of 1% from each preceding year. and the company was able to achieve its Energy-saving Activities in In fiscal 2009, the company focused target for the fiscal year. Offices on improving transportation efficiency In fiscal 2010, the deadline for achiev- through modal shift, higher loading ing the target under the amended Act In addition to “Cool Biz” in summer (office ratio and “milk runs.” The company also Concerning the Rational Use of Energy, air-conditioning systems set to 28°C, enforced cooperation with cargo receivers we plan to further reduce transportation employees do not need to wear ties) and and promoted mixed loadings of small- energy consumption by using environ- “Warm Biz” in winter (office air condi- lot cargos by establishing a joint delivery mentally friendly transportation systems tioning systems set to 20°C, employees center. These activities were regularly dis- and introducing proven efforts at every are encouraged to bring an extra layer of cussed in company-wide meetings and site across the company. clothing), the company has implemented actions taken at each site were shared diverse energy-saving activities, such as across the company. rationalizing the operation of elevators and introducing high-efficiency lighting.

Comments from staff at works who are actively engaged Topics in reducing CO2 emissions MHI-brand amorphous solar cell panels were also installed at the works.

Everyone at our works is Progress is continuing in our plan to install solar cell panels at our actively involved in energy- works. In fiscal 2009, MHI installed 50-kW panels at the Kobe saving activities. Shipyard & Machinery Works, 70-kW panels at the Takasago Machinery Works and 100-kW panels at the Nagoya Guidance & Propulsion Systems Works (a total of 220-kW panels installed in fiscal 2009), expanding the company’s cumulative introduction of solar power to 2,110 kW. Consequently, MHI achieved the CSR Action Plan’s fiscal Yusuke Miyaji 2009 target of introducing more than 200-kW photovoltaic facilities Works Technology Section across the company. The company also achieved its medium-term Engineering Department Nagoya Guidance & Propulsion Systems Works target of installing over 2,000 kW photovoltaic facilities one year in advance of the originally scheduled deadline of fiscal 2010. At the Nagoya Guidance & Propulsion Systems Works, we take action In addition, MHI installed a total of 33.5-kW photovoltaic facili- to achieve energy-saving targets, focusing on two main themes for ties in the company dormitory for unmarried employees, company energy saving: efforts by everyone to save energy in our daily operations nursery school and Mitsubishi Wind Turbine View Park at the and the adoption of equipment enabling outstanding energy saving. Yokohama Machinery Works. To save energy in our daily operations, every employee takes actions such as switching off personal computers during break times and turning off lighting during lunch hour. For the adoption of equipment enabling energy saving, we converted the lighting system in the factory from mercury lamps to high-intensity fluorescent tubes. By replacing the lighting, we saved energy and improved the working environment by reviewing the existing luminance levels to provide well-lit worksites in the factory. In addition, we installed a 100-kW photovoltaic facility on the roof of the factory. We also applied a thermal insulating coating on the roof and walls of the factory to improve the efficiency of factory air-conditioning. As a result of these measures, we expect to reduce future CO2 emissions by approximately 390 tons per year. Solar cell panels installed at the Nagoya Guidance & We will gradually replace aging factory facilities with equipment Propulsion Systems Works that saves more energy, with due consideration for cost-effectiveness and replacement priority.

CSR Report 2010 44 Responsibilities and Actions of MHI Commitment to the Global Environment

Resource Conservation and Waste Management

MHI is taking the initiative to achieve zero emissions*1 at all company facilities (the divisions, headquarters and works) by 2010. The company vigorously sorts all recyclables, identifies new recycling contractors and encourages the sharing of information on recycling operators across MHI divisions, headquarters and works, while at the same time holding company-wide meetings on how to achieve zero emissions.

*1 For MHI, zero emissions is defined as limiting landfill waste to less than 2% of total waste.

Curbing Waste Generation, Waste generation/landfill disposal Water usage and discharge volumes and recycling rate Release and Disposal (10,000 tons) (1,000 tons) (%) 1,500 250 89 100 Achieved target once again 216 83.3 1,243.2 79.0 78.2 Target 1,200 1,120.9 200 80 1,075.9 for curbing waste generation 170 277.0 1,001.9 151 258.8 940.4 226.8 912.7 150 164 159 131 60 900 The target for reducing the volume of the 232.4 56.5 54.4 185.8 57.3 company’s waste to less than 170,000 100 40 213.3 600 456.9 886.0 855.4 tons by 2010 was achieved in fiscal 2009 50 20 945.4 359.0 387.1 15 with a waste output of 131,000 tons, a 14 9 2 0 300 0 1992 2006 2007 2008 2009 2010 fiscal year target we once again reached. 276.9 289.8 276.2 (FY) In terms of its target to achieve zero 0 Generation Landll disposal Recycling rate 2007 2008 2009 (FY) waste emissions at all 13 MHI sites (the volume volume INPUT Water supply Industrial water divisions, headquarters and works) by Groundwater Other 2010, the Kobe Shipyard & Machinery OUTPUT Discharged into public waters Works already accomplished the goal in Waste generation by material Discharged into sewer system April 2009, bringing the total to 12. The Other 2.2% Nagoya Aerospace Systems Works, the Paper usage only MHI site that has not achieved its tar- Acid and alkali wastes 2.9% (t) get, is also aggressively looking for new 3,890 3,863 Sludge 4.6% 4,000 recycling operators and will meet its target 3,536 in the first half of fiscal 2010. Waste oil 5.2% 2,950 3,000 Waste paper 5.5%

Waste wood 5.5% 2,000

Waste plastic 5.6% 1,000 Slag 6.4%

Scrap metal 62.1% 0 2006 2007 2008 2009 (FY)

Topics *2 Sites that have achieved zero emissions Corporate target in sight as the Kobe Shipyard & Machinery March 2001 Yokohama Machinery Works achieves zero emissions in fiscal 2009 Works March 2004 Takasago Machinery With the target to achieve zero emissions in fiscal 2009, the Kobe Shipyard & Machinery Works General Machinery & Works has taken action to identify recycling operators, more strictly separate wastes and November 2004 Special Vehicle curb waste generation. When the Works started its efforts, the recycling rate was rising Headquarters steadily until high costs for recycling incombustible wastes impeded the achievement of the February 2006 Nagoya Guidance & target. To address this problem, the Works set up a Waste Reduction Sectional meeting, Propulsion Systems Works Air-Conditioning & consisting of representatives of the August 2006 Refrigeration Systems departments that generate wastes Headquarters and a secretariat and promoted the September 2006 Machine Tool Division, strict separating of wastes at the Iwatsuka Area Paper & Printing Machinery emission source level and the recy- Division (including cling of all recyclables. Through these May 2007 Transportation Systems & Advanced Technology efforts, the Works was able to curb Division, Mihara) the increase in waste treatment costs January 2008 Shimonoseki Shipyard & and achieved zero emissions. It will Machinery Works continue its efforts to maintain zero Industrial Machinery October 2008 Business, Technology & emissions while focusing on curbing Solutions Division waste generation and reducing waste Members of the Waste Reduction Sectional meeting at the Kobe Shipyard & Machinery Works January 2009 Nagasaki Shipyard & treatment costs. Machinery Works Kobe Shipyard & Machinery Works April 2009 (including Transportation Systems & Advanced Technology Division, Kobe)

45 Mitsubishi Heavy Industries, Ltd. Management of Chemical Substances

MHI takes every possible action to manage the chemical substances required for its production processes in ways that guarantee safe usage and storage. All works effectively use MSDS to ensure complete safety for both customers and company employees. Efforts are also being taken to curb the use and emissions of organochlorides by developing alternative manufacturing processes and switching to alternative substances.

Curbing the Use and Setting targets for reducing Plan for disposal of Emissions of Chemical and controlling VOCs (Volatile equipment using PCBs Substances through Organic Compounds) Proper Management and As of March 2006, MHI had already regis- Use of Alternatives MHI has incorporated voluntary reduc- tered the disposal of equipment that uses tion targets for three organochlorides into PCBs (polychlorinated biphenyls), either Emissions of substances its mid-and-long-term plan. currently in use or stored at its domes- subject to PRTR Emissions of VOC, one of the sub- tic sites, with the Japan Environmental stances that cause photochemical smog, Safety Corporation (JESCO), a special In fiscal 2009, MHI released a total of are regulated for facilities that release a entity wholly funded by the Japanese 2,040 tons of substances subject to given volume of the substance under the government. The company also signed PRTR*1 compliance. Air Pollution Control Law. In fiscal 2008, a consigning contract for disposal in Roughly 95% of these emissions in addition to legal and regulatory com- January 2007. In fiscal 2009, MHI began consisted of xylene, toluene and ethylben- pliance and to further advance its activi- consigned disposal at 7 sites*2. zene, which are primarily used in paint- ties for lessening environmental impact, Today the company is systematically ing and cleaning applications. Although the company set a new voluntary target replacing equipment using PCBs to com- the company is working to reduce these for reducing atmospheric emissions of pletely eliminate their use by 2010. emissions, the task is proving to be a sig- VOC in 2010 by 30% from the 2000 level, *2 Head Office, Industrial Machinery Business, nificant challenge, particularly for xylene, focusing on xylene, toluene and ethylben- Technology & Solutions Division, Nagasaki Shipyard & Machinery Works, Takasago Machinery Works, which is used for painting ships and its zene, which are emitted in large volumes. Nagoya Aerospace Systems Works, Nagoya use is typically specified by shipowners. In fiscal 2009, as in fiscal 2008, MHI Guidance & Propulsion Systems Works and the Iwatsuka Area. This preference is making it difficult to held a VOC Reduction Promotion Sec- reduce the use of this substance. tional meeting to explore specific reduc- The number of substances sub- tion plans while sharing information among ject to PRTR increased substantially its divisions, headquarters and works. from 354 to 462 from fiscal 2010 under the amendment to the enforcement rule of the Law enacted in fiscal 2008. MHI has been systematically preparing in fis- Status of PCB Storage cal 2009 to begin including these additional substances in calculation and disclosure starting in fiscal 2010. Actions included notifying the entire company of Atmospheric emissions of organochlorides this change through the Environment Liai- son Conference and other channels and (t) Standard value 262.2 obtaining MSDS sheets from suppliers in 260 55.0 54.2 conformity with the new requirement. 50

*1 PRTR (Pollutant Release and Transfer Register) 40 The PRTR system requires publication of the sources 35.8 23.7 and emission volume of toxic chemical substances 30 27.3 and the amounts of such substances removed from 153.0 21.3 23.4 18.6 manufacturing plants. The system is provided for 20 18.2 18.2 20.3 under the Pollutant Release and Transfer Register 16.5 0.6 (PRTR) Law. 10 2.1 Target value 0.5 0.8 0.6 1.2 2.3 2.5 11.5 6.6 0 0 1996 2005 2006 2007 2008 2009 2010 (FY) Reducing organochlorides Dichloromethane Trichloroethylene Tetrachlorethylene The company had reduced emissions of tetrachlorethylene, trichloroethylene and Change in HCFC*3 emissions dichloromethane by 89.6%, up 3.3 points (t) year-on-year, as of the end of fiscal 2009. 40 For dichloromethane, which is used as a removal agent, MHI completed an 30 0.9 5.0 evaluation of replacing its use with non- 2.0 dichloromethane removal agents in fis- 20 3.3 1.0 cal 2008. The company implemented 1.0 24.0 22.8 22.6 15.7 10 the required facility improvements for this 15.7 10.1 Target value replacement in fiscal 2009 and will com- 0.7 0.2 0.1 0.3 0.0 0.0 0 0 plete conversion in fiscal 2010. 2004 2005 2006 2007 2008 2009 2010 (FY) Dichloropentafluoropropane 1.1 dichloro-1-fluoroethane Chlorodifluoromethane

*3 HCFCs (Hydrochloro-fluorocarbons): The Montreal Protocol that regulates ozone-depleting substances stipulates that the production of these substances must cease by 2020.

CSR Report 2010 46 Responsibilities and Actions of MHI Commitment to the Global Environment

Products and Technologies that Reduce Environmental Impact

CO2 recovery system that reduces CO2 emissions from power stations and large plants

Thermal power plants account for about two-thirds of the world’s plants in the U.S. and Germany and plans additional large-scale total power output and is expected to play an important role in demonstration operations across the world. At the IGCC (Inte- ensuring a stable supply of power. Power plants, however, emit grated coal Gasification Combined Cycle) plant in Australia, MHI is a massive volume of CO2. developing a technology for separating and recovering CO2 prior Large industrial plants also emit large volumes of CO2. Given to the combustion of gasified coal fuel by gas turbine. System the emergence of global warming, power stations and large indus- operation is slated to begin in 2015. trial plants are expected to take extensive measures to reduce In addition to these methods, other technologies are being CO2 emissions. developed for use and sequestration of recovered CO2. These Under these circumstances, MHI and Kansai Electric Power include EOR (Enhanced Oil Recov- Co., Inc. have jointly developed a technology for recovering CO2 ery), which injects CO2 into an oil generated through the combustion of fuels without releasing it into field and reduces the viscosity of the atmosphere. The companies successfully developed a special crude oil to attain higher fluidity for solvent that chemically absorbs 90% of the CO2 contained in flue increasing the recovery ratio in the gas with high efficiency. MHI has commercialized the process and production of crude oil and a tech- system to separate and recover CO2 while reducing energy con- nology for the sequestration of CO2 sumption, utilizing characteristics of this solvent. MHI supplied the by injecting it into aquifers, depleted system to seven sites, mainly overseas chemical and other plants, oil and gas fields and coal beds. as a CO2 recovery system. MHI contributes to the prevention of MHI is now commercializing a larger-scale CO2 recovery sys- global warming through CO2 recov- tem with a capacity of several thousands of tons of CO2 recovery ery in collaboration with other com- per day. The company has already started operations to demon- panies involved in developing the MHI-delivered CO2 recovery strate the system’s reliability and operability at coal-fired power related technologies. system in Malaysia

Centrifugal Heat Pump ETW produces hot water using only electricity and exhaust heat

Hot water at 80–90°C is generally used in such processes as the water temperature that had fallen during sterilization, clean- sterilization, food processing and cleaning semiconductors. ing and drying processes, up to a maximum of 90°C using heat The required water is typically produced by boilers using fos- pump principle. The heat exchanger, centrifugal compressor and sil fuels such as oil and gas. Excess heat generated is often motor that comprise the system are controlled by an inverter not used. In recent years, however, reducing the consumption device to reduce power consumption. Since the system uses of fossil fuels for boilers and effectively using the exhaust heat exhaust heat that usually dissipates and consumes little power generated from boilers have become necessary from the view- during operation, its COP* (energy consumption efficiency) is a point of preventing global warming. high 4.5. This innovative product can reduce CO2 emissions up In response to these needs, MHI was the first in the indus- to 71% and reduce operating cost up try to develop a centrifugal compression hot water supply sys- to 27% compared with oil-fired boilers tem, Centrifugal Heat Pump ETW, which reuses exhaust heat with the same capacity (1 ton/hour). from boilers to produce hot water with electricity alone, using * COP (Coefficient of Performance) is the value MHI’s heat pump technology. MHI began selling the system in that indicates cooling/heating capacity (kW) per power consumption (kW). May 2009. Heat pumps can produce three to six times the thermal energy of electric energy input and achieve superior energy efficiency. They are widely used in EcoCute and other systems found in ordinary houses and their technology is expected to contribute to the prevention of global warming.Centrifugal Heat Pump ETW extracts heat from exhaust (10–50°C) and heats up Turbo compressor hot water supply system Centrifugal Heat Pump ETW

47 Mitsubishi Heavy Industries, Ltd. Offshore wind turbine project to convert offshore wind into energy

The wider use of natural energy is eagerly sought for power of offshore wind turbines. sources that produce zero CO2 emissions. In Europe, the U.S. In the U.K. project, for which mass production is targeted and China, where wind power is gaining popularity, wind tur- to begin in 2015, the company will carry out the project through bines are being constructed in costal areas. Offshore installa- several stages, including manufacturing and testing a 5–7 MW tions face virtually no obstacles and offer an effective option for demonstration offshore wind turbine; wind turbines due to the presence of stable, strong winds with establishing the Offshore Wind Tur- little turbulence in wind flow. A further advantage allowing for bine Advanced Technology Cen- large-scale wind turbine installation is the relative absence of ter (tentative name); and designing issues related to scenery or noise. and developing large-scale compos- MHI therefore focuses on manufacturing offshore wind tur- ite turbine blades. MHI will accumu- bines and is the first Japanese manufacturing partner with the late experience and expertise in the U.K. in offshore wind turbine development projects. The company design, development and manufac- has manufactured and supported wind turbines for power genera- turing of wind turbines through par- tion for more than 30 years. As of the end of December 2009, we ticipation in this project, constructing had supplied 331 units (total output 323 MW) in Japan and 3,705 them where strong demand is units (total output 3,282 MW) overseas. We have also gained valu- expected and thereby contributing able experience and knowhow in manufacturing and construct- to the prevention of global warming. Offshore wind turbines ing offshore structures, piers and bridges and are capitalizing on (rendering) these strengths to further promote the technological development

CO2 reduction Sector Basis of calculation Remarks (thousand tons) Estimates based on MHI’s actual delivery record in FY2009, compared with FY1990. Thermal plants (combined, conventional and CO2 reductionPower plant with MHI product98,700 usageEstimate (FY2009) for nuclear power is based on biomass), nuclear plants, photovoltaic, wind actual output generated in FY2009 by plants turbine and geothermal power generation, etc. built by MHI. CO2 reduction Sector Basis of calculation Remarks (thousand tons) Estimates based on MHI’s actual delivery Transportation 1,600 Vessels, transportation systems, etc. Estimates basedrecord on MHI’s in FY2009, actual compareddelivery with FY1990. record in FY2009, compared with FY1990. Thermal plants (combined, conventional and Power plant Mass and medium-lot98,700 Estimate for nuclearEstimates power based is based on MHI’s on actual deliverybiomass), nuclearAir-conditioners, plants, photovoltaic, centrifugal wind chillers, gas 1,000 manufactured machinery actual output generatedrecord in FY2009,in FY2009 compared by plants with FY1990.turbine and geothermalengines, powerforklift trucks,generation, etc. etc. built by MHI. Data for ﬁscal 1990 is calculated based on the IEA’s (International Energy Agency’s) “World Energy Outlook 2009” Estimates based on MHI’s actual delivery F-2戦闘機 Transportation 1,600 Vessels, transportation systems, etc. record in FY2009, compared with FY1990.

Mass and medium-lot Estimates based on MHI’s actual delivery Air-conditioners, centrifugal chillers, gas 1,000 manufactured machinery record in FY2009, compared with FY1990. engines, forklift trucks, etc.

Data for ﬁscal 1990 is calculated based on the IEA’s (International Energy Agency’s) “World Energy Outlook 2009”

MHI is working to create a low-carbon CO2 reduction from the 1990 level conduct business by maximizing its col- society across a broad spectrum of through the use of the company’s prod- lective strengths to further reduce the fields, including: large-scale power gen- ucts in fiscal 2009 came to about 100 global environmental load. eration technologies such as thermal million tons. power plants and nuclear power plants, The power generation sector, About renewable energy including that from which accounts for nearly 30% of CO2 4,000 wind turbines and solar power, vessels emissions, has the potential for reduc- million tons and transportation systems for improving emissions by about 4,000 million ing the efficiency of the transportation tons, assuming Japan’s latest technol- sector, and heat pumps and forklift ogies at the top international level would trucks that assist energy management be deployed across the world. About 4,000 on the demand side. Going forward, MHI will continue to Existing Latest technologies milliontechnologies tons

Existing Latest technologies technologies

CSR Report 2010 48 Responsibilities and Actions of MHI

Commitment to People and Society MHI maintains relationships with diverse populations in various regions and communities in the course of developing and manufacturing products and technologies that are essential for social infrastructures and industry as well as the day-to-day lives of people across the world. To fulfill its corporate responsibility as a social and public entity, MHI has been pursuing its business operations with due consideration for its diverse stakeholders.

Customers

Machinery & Power Systems Steel Structures Local Shareholders Communities and investors

Shipbuilding & Ocean Aerospace Development

General Other Machinery & Special Vehicles

Business Employees Partners (Suppliers)

49 Mitsubishi Heavy Industries, Ltd. Responsibilities and Actions of MHI Commitment to People and Society

Commitment to Our Customers

MHI laid out in its creed: “We strongly believe that the customer comes first and that we are obligated to be an innovative partner to society.” To establish production system capabilities and serve as a genuinely global corporation, MHI is contributing to society by offering products and services that place priority on safety and quality.

Enhancing Product Safety such as guidance relating to new laws and 2009, members confirmed that the main- regulations. tenance and management of manufactur- Promoting the product safety ing instructions and activities related to the project Ongoing efforts to ensure internal sharing of lessons learned from safety at nuclear power plants the accident have been implemented. The MHI is reinforcing activities to promote Board also confirmed that suitable safety the product safety throughout the com- On August 2004, a break occurred in management proposals have been put pany. The product safety project is one the MHI-installed secondary piping of forward as a result of sharing information effort that started in fiscal 2005, with the Unit 3 in the Mihama power station of with power companies. Based on these Legal Department and the Technical Kansai Electric Power Co., Inc. MHI set findings, the Board also decided on a pol- Headquarters Production System up the Managing Board for Innovation icy for reinforcing interface control and Innovation Planning Office (currently the in the Nuclear Business, chaired by the change control. Production System Innovation Planning President, in December 2004. The com- Division) serving as the secretariat. In pany is striving to implement continuous Comments from a nuclear power this project, the company’s products are internal reforms to prevent accidents and quality control manager grouped into three categories—mass ensure safety at nuclear power plants. and medium-lot manufactured products, Individual works thoroughly inspect and We are striving build-to-order components, and build- continuously strive to improve design, for highly reliable quality assurance to-order plants. Individual works conduct manufacturing, and procurement pro- and control, training activities based on these catego- cesses as well as the quality manage- ever-aware of our ries to improve product safety, including ment system. At the same time, the responsibility for risk assessment and improving instruction Managing Board for Innovation in the safe nuclear power generation. manuals. Nuclear Business monitors the progress MHI also shares across the company of improvement. information relevant to product safety, At the Board meeting held in fiscal

Koichiro Masumoto Topics Component Quality Control Section Quality Assurance Department Accident Exhibit and Materials Room established inside Kobe Shipyard & Machinery Works MHI’s Technology Training Center The Component Quality Control Section of —Deeply ingraining the significance of safety and quality the Kobe Shipyard & Machinery Works is aing the quality control plans for the design, Safety and quality have the highest priority for the MHI Group, whose very livelihood is based manufacturing and installation of compo- on manufacturing. nents and pipes for nuclear power plants. We organized information on past accidents and established an Accident Exhibit and Since the quality control in these facilities Materials Room in April 2010 so all employees involved in development, production and is critical, we all share a desire to improve after-service operations could refresh their awareness of the significance of safety and qual- quality and raise the level of danger pre- ity and prevent the recurrence of serious mishaps and failures. diction among all employees to ensure News articles and panels are displayed in addition to video coverage for serious disas- the safety and security of nuclear power ters such as the fire on the cruise ship Diamond Princess. plants. Therefore, our duties go beyond inspecting products to encompass opera- MHI wants this archive to serve as a place in which Group employees gain a deeper tional processes, such as monitoring on understanding of the true significance of safety and quality by ensuring that employees manufacturing and analyzing root causes across the company know about the exhibit and incorporating it into the employee training of nonconformance. curriculum. With over 40 years of experience, MHI has established a systematic quality assurance program for nuclear power plants for taking precautions against potential problems. This program is supported by close cooperation with the design and manufacturing departments. We will continue to share information with these departments while striving to improve and pass on the quality assurance and control technology we have gained over the years. Entrance to the Accident Exhibit and Materials Room Displays inside the exhibit room

CSR Report 2010 50 Responsibilities and Actions of MHI Commitment to People and Society

Enhancing Customer Implementing technical Promoting Nuclear Power PA* Satisfaction (CS) support as an aspect of activities preventative maintenance Pursuing products and services In an effort to deepen its understanding that can be trusted from the Since 1999, MHI has maintained a high about the need for and safety of nuclear prioritized customer point of view operational rate for thermal power plants power, MHI has promoted PA activities (gas turbines) delivered both in and out- since 1988, such as accepting visitors in One statement of the MHI creed is: “We side of Japan and provided technical sup- our works that manufacture nuclear power strongly believe that the customer comes port to prevent problems. This is a paid equipment and publishing the magazine, first and that we are obligated to be an service for observing and supporting the Atom Power. innovative partner to society.” Therefore, operations of gas turbine plants in real The Kobe Shipyard & Machinery the company’s top priority is to always time, around the clock, 365 days a year, Works, where nuclear power equipment place itself in the customer’s shoes and from remote monitoring centers estab- is manufactured, offers plant tours at the meet their expectations by providing prod- lished in two locations, one in Japan and request of clients and partner compa- ucts and services with high added value. one outside of Japan. We are working nies. It also provides enjoyable opportu- Based on this approach, each head- to prevent the occurrence of problems nities for learning about energy through quarters and division listens carefully to by applying monitoring diagnostic capa- hands-on activities targeting elementary the market and customer feedback and bilities that draw upon over ten years of school students. Approximately 3,000 strives to improve CS in accordance accumulated operational data. Any sus- guests participated in fiscal 2009, shar- with their respective business opera- pension of operations is kept as short as ing comments such as, “After touring the tions. In addition, MHI implements basic possible by quickly detecting plant anom- production sites, I deeply understood how CS and marketing training as well as other alies and immediately implementing trouble- advanced technology is used to manufac- programs with the belief that improv- shooting procedures. ture nuclear power equipment.” MHI will ing employee awareness is essential for As of April 2010, we are support- continue to offer information and tours to establishing a customer-oriented corpo- ing three plants in Japan and 25 plants build up trust in nuclear power. rate culture. overseas, thereby safeguarding the sta- * Nuclear Power PA (public acceptance) activities Through these activities, MHI will ble power generation operations of our Activities conducted to encourage a clearer understanding of nuclear power continuously work to provide products customers. and services that satisfy customers.

Remote monitoring center Basic CS training Nuclear power page http://www.mhi.co.jp/atom/ (in Japanese)

Maintaining and Strengthening the Defense Production and Technological Bases

Contributing to the peace and safety of Japan through technology

With the basic stance of ensuring the peace nation amid financial difficulty and rapid tech- and safety of Japan through cutting-edge nological progress. Therefore, MHI is focusing technology, MHI, as a leading enterprise in on the technology and systems research to the Japanese defense industry, endeavors deal with new threats and diverse situations. to maintain and strengthen the defense pro- For example, we are researching the operation duction and technological bases. We are also and systems of new equipment using model- involved in the development, manufacture, ing and simulation facilities and methods.*

and operational support for a vast array of On the other hand, we believe we are F-2 jet fighters ©JASDF defense equipment requested by the govern- also able to contribute to long-term techno- ment, such as jet fighters, helicopters, mis- logical progress, given the far-reaching nature Ratio of Ministry of Defense siles, destroyers and tanks. of state-of-the-art technology of defense and sales to total sales The defense environment surrounding the expectation for ripple effects to the civilian Amount Japan has been dramatically changing over sector in the fields of materials, components, FY Ratio (%) (100 million yen) recent years. It is now more vital than ever to and process technology. 2008 11.0 3,714 maintain and strengthen the production and * Simulations that use numerical models to acquire decision- technological bases to meet the needs of the making data 2009 11.8 3,483

51 Mitsubishi Heavy Industries, Ltd. Commitment to Our Shareholders and Investors

MHI works to forge relationships of trust with shareholders and investors in and outside of Japan by increasing the soundness and transparency of its management, accurately and promptly disclosing information, and expanding opportunities to communicate with shareholders and investors.

Disclosure Principles and Business and planning Inviting investors for plant IR Activities briefings tours

Promoting IR activities In response to demand from investors The company has been conducting semi- to facilitate a detailed and analysts for greater details on the annual plant tours since March 2005 to understanding of our business overall status and plans of individual busi- deepen shareholder understanding of its nesses, MHI holds semiannual perfor- business activities. MHI is striving to assist institutional inves- mance briefings as well as other types of During fiscal 2009, we held tours tors and individual investors in Japan and briefings related to business performance at the Hiroshima Machinery Works (cur- abroad with gaining a deeper understand- and plans. rently the Industrial Machinery Business, ing of our business operations. We conducted a briefing on the set- Technology & Solutions Division) in Sep- With a Corporate Communication tlement of accounts for fiscal 2008 and tember. Participants closely observed Department dedicated to investor rela- emergency measures for fiscal 2009 in the assembly processes of our cutting- tions, we endeavor to disseminate appro- April 2009 with 195 participants. In June, edge radiotherapy machine, a centrifugal priate information in a timely manner as business presentation briefings were held compressor and a mechanical drive tur- well as provide additional opportunities for the overall Sustainability Energy & Envi- bine for chemical plants, and body pan- for direct communication through a variety ronment Strategic Planning Department, els for aircraft. In March, we held tours at of briefings. We reflect the comments we and nine divisions over three days with a the Nagoya Guidance & Propulsion Sys- receive in our ever-expanding IR activities. total of 491 attendees. tems Works to share the production pro- In addition, under new efforts, MHI cess for aerospace engines and other Actively disseminating took part in briefings held by securities equipment. Participants responded with information through our firms for individual investors. The com- such comments as, “I was able to expe- website and other channels pany also earned high marks for hold- rience firsthand the high level of MHI’s ing a briefing combined with a tour of our industrial technology,” and “By participat- MHI releases information in accordance exhibition facility, the Mitsubishi Minatomi- ing in this tour, I was able to understand with laws and regulations as mandated rai Industrial Museum in Yokohama. We how MHI provides cutting-edge products by the exchanges on which the company intend to regularly hold briefings at this to the world.” We intend to further enrich is listed; the company also quickly posts facility as opportunities for communicating the content of our tours in light of partici- information on the “Investor Relations” with individual investors. pant feedback. section of our website. Information and data not subject to these laws and regu- Recent Dividend lations are also posted, along with charts Disbursements and comments on securities terminology, in an effort to release data that is easy-to- For fiscal 2009, a 2 yen per share year- understand and accurate. end dividend was distributed. In addition, videos of general share- In addition to the previously distrib- holders’ meetings and account settlement uted interim dividend of 2 yen per share, briefings for institutional investors and total dividends for the year were 4 yen per analysts, as well as business presentation share. Plant tour at the Industrial Machinery Business, briefings are posted on our website to fur- Technology & Solutions Division, Hiroshima ther enhance understanding. Dividend disbursements over the past five years

FY Dividend per share 2005 4 yen 2006 6 yen 2007 6 yen 2008 6 yen 2009 4 yen

Plant tour at the Nagoya Guidance & Propulsion Investor Relations Systems Works http://www.mhi.co.jp/en/finance/

CSR Report 2010 52 Responsibilities and Actions of MHI Commitment to People and Society

Commitment to Our Business Partners (Suppliers)

As a corporation that strives to be a premier innovator, MHI views its suppliers as key partners who provide the company with materials and services for producing products and who share the same desire for mutual prosperity. To remain competitive in a rapidly changing business environment, the company will work with its business partners to effect improvements throughout the entire value chain.

Fair Dealing Global Procurement Manual sized companies. In fiscal 2009, legal designed to reinforce relations compliance was confirmed by an inter- Opening a door to new with business partners nal audit of all departments involved with suppliers and ensuring fair procurement. evaluation and selection The Global Procurement Manual (GPM) was published in fiscal 2009. The GPM Training for employees MHI, which procures various materials was drawn up with the goal of more con- engaged in procurement from inside and outside Japan, opens veniently sharing procurement informa- activities the door wide to creative and competitive tion with partners, ensuring that MHI’s suppliers. While complying with related quality management system philosophy is Our procurement departments provide laws and social norms, we evaluate and incorporated into the actual procurement various training programs on procure- select with fairness to establish trust that process. ment as a safeguard against inappropriate leads to mutual prosperity. This concept Looking ahead, we intend to use ordering. In fiscal 2009, as in the pre- is stipulated in MHI’s Procurement Policy the GPM to reinforce relations with busi- ceding fiscal year, two compliance train- (released in 2002), which is posted on the ness partners in the global supply chain ing programs were conducted targeting “Procurement” page of our website. and offer outstanding service quality to young employees in material procurement This page also includes guidelines for customers. departments—in July at MHI’s Shinagawa applicant companies and contact infor- Head Office and in March at the Kobe mation for material procurement for the Internal audits for preventing Shipyard & Machinery Works, with 28 and benefit of companies that are interested in illegal and unfair dealings 25 participants, respectively. The program doing business with MHI. structure and time distribution were recon- MHI is striving to prevent illegal deal- sidered for both sessions based on the ings, such as fraudulent orders, by hav- results of a questionnaire survey of par- ing departments in charge of the ordering, ticipants in the preceding year. The two- receiving and use of procured goods pro- day program included compliance issues vide mutual restraints. At each stage of related to material procurement opera- ordering and inspection, more than one tions, an explanation of domestic laws, employee reviews the content of a trans- an exchange of ideas among participants action, and the results are confirmed by based on case studies, and a comprehen- internal audit. sion test. The company intends for these Furthermore, MHI is endeavor- programs to further improve employee MHI’s Procurement Policy on the ing to comply with the Act against Delay awareness of compliance. corporate website in Payment of Subcontract Proceeds, In addition, we have provided an http://www.mhi.co.jp/en/ company/procurement/ Etc. to Subcontractors and the Con- e-learning program on the Act against struction Business Act, which prohibits Delay in Payment of Subcontract Pro- large companies from forcing unfair busi- ceeds, Etc. to Subcontractors for all ness practices on small- and medium- Group employees since fiscal 2005. In fiscal 2009, a total of 948 MHI employees and 235 employees from 14 MHI Group MHI’s Procurement Policy companies in which MHI holds a majority share participated in this program. We also created a new learning program on 1. Openness import-export procedures for raising the We strive to openly provide business opportunities to suppliers throughout the level of employee knowledge about global world, and welcome creative and competitive suppliers. procurement. By the end of fiscal 2009, 2. Fairness 1,575 MHI employees and six employees We provide competitive opportunities to qualified suppliers, and evaluate and from two Group companies had partici- select suppliers fairly based on criteria such as the suppliers’ product quality, pated in the program. price, delivery schedule, technology and financial conditions.

3. Partnership We regard our suppliers as partners based on the mutual understanding that both parties should benefit from the relationship.

4. Compliance We comply with rules, regulations and social norms based on our compliance management policy, and all information submitted to MHI will be kept and used properly.

Compliance training

53 Mitsubishi Heavy Industries, Ltd. MHI will continue to provide pro- laboration Meeting with partners in June company from fiscal 2008 to fiscal 2010. grams based on an understanding of 2009 and Shipbuilding and Ocean Devel- In fiscal 2009, we clarified our views on training needs in relation to business opment Supplier Conference 2009 in July, CSR toward business partners with the plans and revised laws while also enhanc- each division, headquarters and works goal of promoting CSR throughout the ing content. is striving to share information for further entire supply chain; we are also moving reinforcing collaboration with business ahead with the drawing up of MHI Group Toward even stronger partners. Supply Chain CSR Promotion Guidelines. collaborative ties with Preparation of the guidelines involved business partners selected members from the material procurement divisions of each works and At the first Business Partners Conference setting up a CSR Procurement Promo- held in 2008, we declared that MHI will tion Project to reflect the results of the connect business partner comments, dynamic discussions that were held twice requests, and recommendations with in four regions. The discussions surfaced management process reform and cost- various thoughts on activities the com- cutting measures. Having established pany has emphasized in procurement a specialized task force in the Material operations, including compliance, qual- Business Partners ity, and environmental actions as well as Department at the Head Office for this Conference purpose, we are moving ahead with activ- ideas for activities we need to focus on ities to reinforce manufacturing capability. in the future, such as work safety and At the second Business Partners human rights. Referring back to the com- Conference held in November 2009 with pany creed that states our obligation to be 282 partner companies invited, our presi- an innovative partner to society, MHI has dent conveyed MHI’s intentions to estab- renewed its recognition of the highly publish a stronger supply chain through lic aspects of our business, the technolog- multi-faceted communications. In addi- Toward Implementing CSR ical capability required by society, and the tion, we presented certificates of gratitude Procurement importance of quality and product safety. to 13 partner companies that have signifi- In fiscal 2010, we will continue to cantly contributed to our business. Among Creation of Supply Chain CSR move forward with these activities toward these companies, three shared presenta- Promotion Guidelines completing these guidelines and their dis- tions on their improvement activities. semination both inside and outside the In the course of planning and hosting CSR procurement was identified as a criti- company. similar partner conferences, such as the cal issue for the material procurement divi- first Power Systems Headquarters Col- sions in the CSR Action Plan for the entire

Topics

Activities of the CSR Procurement Promotion Project

In fiscal 2009, we held two discussions in each of four regions (Kanto, Chubu, Kinki, and Chugoku/Kyushu). During the first sessions, the practice managers of CSR promotion divisions spoke about more deeply embedding the concept of CSR and basic knowledge of MHI’s CSR activities in the minds of project members. After the lecture, the speaker and members engaged in a lively discussion about efforts to maintain and build trust with partners. At first, there were comments such as, “I don’t understand the relationship between CSR and procurement operations.” Participant understanding of this relationship, however, deepened over the course of the discussions. During the second session, the perception and thinking of members steadily changed as they discussed MHI efforts that are required by society and enthusiastically expressed their ideas on key CSR activities the company should tackle. We believe empathy and cooperation are vital for an essential understanding of CSR. We will continue activities for instilling CSR with this in mind.

Participating in a discussion CSR practice manager giving a lecture

CSR Report 2010 54 Responsibilities and Actions of MHI Commitment to People and Society

Commitment to Our Employees

Believing that human resources are the company’s most important asset and that their growth leads to the development of the entire company, MHI is actively working to utilize and cultivate diverse human resources and build a better working environment in which employees can fully demonstrate their abilities.

Utilizing and Cultivating company is hiring overseas students Expanded job opportunities Diverse Human Resources and foreign students through aggressive for the handicapped recruitment efforts and hired about 30 Active recruitment and new graduates in fiscal 2009. Since 1992, MHI has been pursuing efforts utilization of mid-career, In addition, MHI is actively hiring and to expand job opportunities for handi- overseas and female workers utilizing female workers. The numbers of capped individuals and create a suitable new female workers and managers have working environment for all workers by In the course of excelling at manufacturing been increasing each year. In fiscal 2009, establishing a Committee for Promotion large-scale system products that involve approximately 30% of new white-collar of Employment of the Handicapped (see lengthy timeframes, including power gen- recruits with bachelor’s degrees were p. 32). eration plants, aerospace equipment women. In fiscal 2009, the company further and marine vessels, MHI’s basic pol- intensified its efforts to expand employ- icy for recruiting and developing human Promotion of rehiring seniors ment of the handicapped by utilizing its resources had been to hire new gradu- across the Group website for recruiting handicapped indi- ates and provide ample in-house training. viduals and partnering with local job- Recently, however, survival in an To provide a place that allows employees placement offices. As a result, the rate increasingly competitive market has to demonstrate their abilities after retire- of employment of the handicapped as of required the ability to utilize diverse human ment, the company implements a rehiring April 1, 2010 was 2.01%, exceeding the resources. MHI is therefore actively pro- system throughout the Group that, in prin- statutory employment rate of 1.8%. Those moting the hiring of mid-career workers. ciple, embraces all employees who wish that were hired actively participate in var- (In fiscal 2009, approximately 450 mid- to take advantage of the opportunity for ious workplaces, including white-collar career workers were hired in addition to reemployment up to the age of 65 in both settings and production departments. about 1,500 new graduates.) The com- full- and part-time positions. pany treats new graduates and mid-career As of April 1, 2010, MHI alone (exclud- Skills upgrading through training workers equally. Mid-career workers play ing Group companies) has rehired more an active role in their respective fields as than 1,700 employees. These workers are To be a global company capable of deal- members of the company, making full use assigned important roles for transferring ing with dramatic changes in the mar- of the skills they have cultivated. their skills and expertise as experienced ket, MHI is striving to assist employees in MHI is also actively working to hire professionals. MHI is vigorously promot- upgrading their skills and enhance train- personnel to deploy overseas for the ing their participation in the workplace. ing content in line with the basic policy of global development of its business. The practical human resource development.

Basic Data

Breakdown of employees by age (FY2009) Number of employees who resigned of own volition (FY2009) Under 30 30–39 40–49 50–59 60 and over Male 8,141 9,592 5,605 7,478 497 Male 201 Female 737 972 661 439 17 Female 88 Total 8,878 10,564 6,266 7,917 514 Total 289

Number of new graduates hired Number of mid-career workers hired

Vocational Total University Other than university Total High school, University school and (females in graduates graduates (females in brackets) other junior college brackets) Joined the company 547 358 905 (85) Joined the company in FY2008 820 168 817 1,805 (146) in April 2009 Joined the company 229 223 452 (23) Joined the company in FY2009 in April 2010 672 124 676 1,472 (136)

Number of female managers Number年齢 of rehired employees自己都合 (section manager and above; excluding medical staff) (excluding those男性 from Group companies)201 2006/4 2007/4 2008/4 2009/4 2010/4 2008/4女性 2008/10 882009/4 2009/10 2010/4 142 158 182 219 248 934 計 1,127 2891,365 1,591 1,720

Use of annual paid holidays Number of employees who took child-care leave Number of paid Number of paid Usage rate (%) FY 2005 2006 2007 2008 2009 holidays granted holidays used Male 1 3 6 4 8 FY2007 22.0 15.6 70.9% Female 88 99 106 100 115 FY2008 22.0 15.8 71.8% Total 89 102 112 104 123 FY2009 22.0 15.8 71.8%

55 Mitsubishi Heavy Industries, Ltd. MHI has established an array of training also paying attention to their requests and and family life, MHI is working to improve programs, starting from human resource business improvement suggestions. For systems for raising the next genera- development based on on-the job training example, for those working in white-collar tions and supporting a healthy work-life (OJT) for new employees to programs tar- positions, MHI adopts an MBO (Manage- balance. geting individual levels or functions for cur- ment by Objectives) system with annual The following programs exceed legal rent employees. We are also endeavoring performance targets and progress evalu- requirements. to improve training content from the per- ations twice a year. Blue-collar employees • Child-care leave (until the child is three spective of hardware, such as by aggres- and their respective supervisors hold dis- years of age) sively digitizing training information. cussions once a year to maintain a com- • Child-care work shift (until the child mon understanding. graduates from elementary school) Efforts to develop junior • Family-care leave (in total, within less technicians 360° research: A program for than one year per family member requir- middle managers ing care along with family-care work shift) Even as more baby boomers retire, the In addition, the company is adding number of young technicians is increasing MHI is carrying out 360° research, involv- to its array of unique systems. The Career at MHI. Therefore, fostering technicians ing the assessment of middle-managers’ Return Plan, established in 2007, offers who are active at the forefront of manu- daily behavior by their supervisors, col- opportunities for employees who have facturing is a pressing need. To this end, leagues and subordinates. Results are left after marriage or childbirth to rejoin we strive to standardize and unify training shared with managers. This program is the company and continue their previous throughout the entire company by holding intended to encourage the further growth career. In fiscal 2009, five individuals (for a skills contests and creating manuals, text- and self-improvement of managers by total of 12 individuals since 2007) rejoined books and other materials. We are quickly keeping them better informed of the feed- the company as full-time employees. facilitating the transfer of skills from vet- back and evaluation of others while In April 2009, the Work-Life Support eran technicians and steadfastly training enabling them to identify their strengths Group was set up in the Personnel Depart- junior technicians. and areas for improvement. The program ment to comprehensively improve work is conducted once every two years, with environment quality from the perspective Common training for the the next one slated for 2010. of raising the next generations and sup- entire Group porting a healthy work-life balance. Building a Better Working Looking ahead, this group will lead To reinforce the management and overall Environment our continued efforts to build a better constitution of MHI Group business oper- working environment that fully takes work- ations, we promote training operations Supporting a proper balance life balance into consideration. for the entire Group. In addition to having between work and family life employees of Group companies participate Programs that focus on work-life in MHI training sessions, we are moving for- To create an environment that helps balance ward with the establishment of an e-learn- employees effectively balance their work Child-care leave system ing site exclusively for Group companies Using accumulated paid holidays for and have already set up group training. Feedback from employees who child care purposes*1 have used the Career Return Plan Child-care work shift system (shortened work hour system) After leaving my job to have a child, the Work leave to care for a sick child Career Return Plan Special grants for working employees helped me apply my who place their child in daycare*2 experience to return to full-time work. Child care and childbirth Next generation nurturing support grants*3 Family-care leave system Using accumulated paid holidays for 1 Common training for Group companies family care purposes* Michiko Sakurai Family-care work shift system (shortened work hours system) Mutual understanding through Yokohama Power Plant Construction Department Family care Power Systems Plant Engineering & Construction Division Work leave to care for a family member dialogue and encouraging Power Systems Headquarters the enhancement of personal I left the company in 2005 to have a child Flex-time system capabilities and for reasons related to my husband’s Paid holiday system by half day job. When I learned about the Career

MHI is taking action to create a work- Others Trips and time off for longtime place in which employees can work dili- Return Plan, I registered. I decided to rejoin employees the company because I would be able to gently, free from anxiety, and to promote *1 Accumulated paid holidays is a system in which up to leave the office at a fixed time, I would retain 50 days paid holidays can be accumulated to use for the enhancement of each person’s capa- my rank and salary conditions at the time illness, injury, child care, family care, and other bilities by facilitating mutual understand- purposes. I left, and I could apply my previous work *2 Special grants for working employees who place their ing and trust through dialogues between experience. My daughter was two years old children in daycare provide ¥5,000 per month to working employees who place children in daycare supervisors and subordinates. when I first received the offer in 2008, and it until the end of the fiscal year in which the child By providing opportunities for regular was difficult to work full-time. The company reaches three years of age. (In fiscal 2009, 783 employees received grants.) dialogues between supervisors and sub- agreed to let me work part-time, four hours *3 Next generation nurturing support grants provide a day, three days a week. When my daugh- ¥100,000 per employee with three or more children. ordinates at their request, MHI ensures (In fiscal 2009, 473 employees received grants.) the effective sharing of business targets ter entered daycare the following spring, I and a common awareness of issues. was able to start working full-time. Since, unlike before, I am expected to Supervisors communicate with subordi- finish work within regular office hours, I can nates about the roles and tasks individ- fully concentrate on my job with efficiency ual employees are expected to fulfill while at the top of my mind.

CSR Report 2010 56 Responsibilities and Actions of MHI Commitment to People and Society

Efforts for raising awareness three commitments: (1) Always hold fast employees on leave to return to the work- of human rights in individual to the conviction that life is precious, and place. This enables employees to maintain workplaces carry out safety-first measures appro- their top physical and mental condition. priate to each position and location; (2) The company also sponsors various Since setting up the Committee for Raising Devote every effort to safety in creating events and provides training to promote Awareness of Human Rights (see p. 31) outstanding products that contribute to sound health and prevent lifestyle-related in 1992, we have been moving ahead the development of society; (3) Maintain diseases. with raising awareness of human rights awareness that sound health is the basis across the company. MHI has promoted upon which all else depends, and ensure Number of participants in mental human rights education and training every that all employees have a comfortable health training

year. In fiscal 2009, approximately 1,800 work environment enabling them to be (Number) new recruits and 1,700 newly appointed sound in body. In line with these princi- 8,000 managers and supervisors participated in ples, we operate an occupational health 6,000 the training program. and safety management system through- 6,554 4,181 Also, MHI is striving to prevent sexual out the company to create safe and 4,000 3,093 2,491 harassment, such as by establishing a healthy workplaces. 2,669 2,000 contact point for consultation at each 2,283 2,762 1,585 2,252 2,062 workplace and distributing pamphlets 0 Risk management and 2005 2006 2007 2008 2009 internally. In addition, the company is (FY) training to prevent work- Other Managers and supervisors working to raise awareness by incor- related accidents and injuries porating related content for compliance promotion trainings. To reduce damage that could result from Promoting communication worker accidents, each office and works between management and Creating safe and healthy is conducting risk assessments and car- labor workplaces centered on a rying out measures based on the results. basic policy for employee MHI is also focusing on safety training MHI believes that communication between safety and health using videos and simulation equipment for management and employees is crucial for new employees who are not familiar with carrying out smooth business operations. MHI embraces a basic policy for employee operations. In line with this thinking, the company’s safety and health founded on the following Furthermore, the company is vigor- intranet, corporate newsletter and other ously striving to improve equipment and resources are fully utilized to disseminate Industrial accident frequency rate* update outmoded facilities to create a management information and messages comfortable workplace. from top management to all employees as 1.2 1.09 1.12 1.01 1.02 0.99 quickly as possible. 0.9 Maintaining and improving In addition, various labor-manage- physical and mental health ment consultations provide forums for 0.6 management to both convey manage- 0.40 0.36 0.28 0.31 To proactively support employees in ment policies and strategies as well as 0.3 0.23 maintaining their physical and mental well- to hear the views of the union to be inte-

0 being, MHI has established health man- grated into management practices. 2005 2006 2007 2008 2009 (FY) agement departments at each works. MHI Manufacturing industry These departments offer health checkups * Industrial accident frequency rate: number of deaths or and diagnostic screenings, and provide injuries sustained through industrial mishaps per million guidance based on the results of tests, hours on the job. It is calculated as follows: number of deaths or injuries sustained on the job that require one including consultation and treatment by or more days of leave / aggregate number of hours specialized physicians and support for worked × 1,000,000.

Topics

Established an in-house nursery at the Nagasaki Shipyard & Machinery Works to reinforce support for employees with children In April 2010, the Nagasaki Shipyard & Machinery Works opened the first MHI in-house nursery, MHI Kira Kids Nursery. Pre-school age children of MHI Group employees at the Nagasaki Shipyard & Machinery Works and the Nagasaki Research & Development Center can stay at this facility from 7 a.m. to 8 p.m. The nursery operation is a contracted social MHI Kira Kids Nursery welfare entity in Nagasaki City with experience in managing in-house nurseries and providing services equivalent to certified nursery facilities. Its location on the premises of the Nagasaki Shipyard & Machinery Works enables employees to come to work with their children, reducing the burden of dropping them off and picking them up. Since employees can pick up a child who has suddenly come down with a fever or become ill, we expect the nursery to be a helpful support service for employees who would like to continue working while raising children.

Children playing in a sandbox

57 Mitsubishi Heavy Industries, Ltd. Contributions to Society

Based on its social contribution policy for communities, MHI is enthusiastically taking part in cultivating local prosperity and nurturing the youth who represent the next generation.

Fulfilling our Policy on to be an innovative partner to society” and Expenditures on socially Socially Beneficial “We place importance on relationships beneficial activities Activities with local communities based on mutual trust.” MHI endorses the goals of the “One Taking action in line with our We then held a series of discussions Percent Club,” a program initiated by social contribution policy and studies into what society expects. As Nippon Keidanren (Japan Business we sought the opinions of those outside Federation) in which participating mem- MHI used the opportunity of publishing the the company, we drew up our policy for bers pledge to use at least 1% of their Social and Environmental Report in 2004 social contribution and have since car- ordinary profits or disposable incomes to to formulate the basic concepts for social ried out a vast array of activities based fund activities for the public benefit, and contribution, stated as, “We are obligated on this policy. we enthusiastically engage in social contribution activities as a member. MHI has been a member since the Club’s founding MHI policy for social contribution in 1990. The company reports its expenditures for such purposes every year; we Our basic policy is to live together with local communities of branch ofﬁces, spent an amount equivalent to 2.12% of overseas ofﬁces, and Group companies in foreign countries, building strong ordinary profit in fiscal 2008. relationships based on mutual trust. With this in mind, we undertake various activities suitable for local cultures and contribute to the local development Change in expenditures on socially and activation both in Japan and overseas. beneficial activities (Millions of yen)

FY2006 FY2007 FY2008 Local Upbringing of the Academic research 223 138 128 contribution next generation Education 630 665 766 Transfer “the heart of Community activities 126 155 131 Live together with Japanese manufacturing” Sports 121 118 112 communities and contribute as well as “the arts of to their development science and technology” Other 770 276 463 to the next generation Total 1,870 1,352 1,600 Percentage of 3.25% 1.98% 2.12% MHI has developed and produced more than 700 kinds of products in its ordinary proﬁt long history, cultivating “the heart of Japanese manufacturing” and “the * Figures include cash donations, payments in kind, activities by employees, free use of company facilities, arts of science and technology.” To pass its knowledge and skills onto etc., converted into monetary equivalents; activities succeeding generations, MHI has a tradition of organizing educational privately performed by employees are not included. activities such as science classes with experiments for children. * Group companies under consolidated accounting are included starting with fiscal 2008. * Figures for FY2009 are now being prepared.

Major support activities in recent years Robust recovery (Millions of yen) assistance to areas hit by natural disasters Year Disaster Scale of support Type of support China Qinghai Earthquake 10 Cash donation The MHI Group has long embraced a 2010 Chile Earthquake 5 Cash donation humanitarian perspective and offered Haiti Earthquake 10 Donation of lighting towers with generators assistance and support across the world Indian Ocean Earthquake and Tsunami 3 Cash donation in the aftermath of large-scale natural disasters. After earthquakes struck Haiti in 2009 Damage from Typhoon Morakot 2.54 Cash donation January 2010, Chile in March, and Qinghai L’Aquila Earthquake in Italy 2.54 Cash donation in China in April, we donated lighting tow- China Sichuan Earthquake 210 Cash donation ers with generators and relief funds to help Cyclone in Southern Burma 3 Cash donation victims recover from the severe damage 2008 Extraordinarily heavy snow in Southern China 1.5 Cash donation following the tremblers. Iwate-Miyagi Nairiku Earthquake 2 Cash donation Niigata Chuetsu-oki Earthquake 10 Cash donation 2007 Noto Hanto Earthquake 1 Cash donation 2006 Mid Java Earthquake, Indonesia 10 Donations of gasoline generators and cash Northern Pakistan Earthquake 5 Cash donation 2005 Hurricane in the southern U.S. 30 Donations of light towers and cash Typhoon in China’s Liaoning Province 0.44 Cash donation

CSR Report 2010 58 Responsibilities and Actions of MHI Commitment to People and Society

Contribution to Communities

Matching Gift Program Tag Rugby Clinics Civil Emergency Medical Technician Class Money collected by employees was matched by The MHI Sagamihara Dynaboars rugby club at the company and donated to charitable causes. the General Machinery & Special Vehicle Head- The Kobe Shipyard & Machinery Works held In fiscal 2009, continuing from the previous year, quarters participates in activities with children civil emergency medical technician training for eating utensils manufactured with MHI’s shape in the local community, such as coaching tag teachers at elementary schools in the neighbor- memory technology for use by those in special rugby at local elementary schools in Sagami- hood in July 2009. MHI employees served as care were donated to welfare facilities in Tokyo hara City. instructors and explained CPR (Cardio Pulmo- and Osaka. nary Resuscitation) to teachers and how to use AED devices to prepare for emergencies involving students.

Ship Naming and Launching Charity Concert Children’s Sketch Event Ceremonies Opened to the Public The Takasago Machinery Works has been hold- Since 2008, the Nagasaki Shipyard & Machinery To convey the outstanding nature of manufac- ing charity concerts every year since 2003. All Works has held a sketch event for elementary turing and to help people better understand proceeds of the concert are donated to Ta- schools around Nagasaki at the city’s Mizuben- the shipbuilding industry, MHI makes naming kasago City to promote welfare and cultural omori Park. Approximately 250 children drew and launching ceremonies for ships open to the programs. For 2009, the concert was held in scenery of Nagasaki Port at the second event, public. In 2009, the Kobe Shipyard & Machinery September with proceeds amounting to 1.59 held under blue skies in October 2009. Works held naming million yen. and launching ceremonies that were open to the public for three large container ships, which are easy on the sea and the Earth due to a variety of equipment that protects the environment.

Topics

Contributing to a local eco-friendly event by donating photovoltaic facilities

As a social benefit conducted through its businesses, MHI donated photovoltaic facilities to a boathouse in Chidorigafuchi Park, Chiyoda Ward, Tokyo, in March 2009. We were responding to a request from the Chiyoda Ward Office, which stated their belief that MHI’s solar panels, with exterior color matching the surrounding environment, would be ideal for a power generation facility that uses natural energy while at the same time fitting in with the Illumination of the Cherry Blossom Festival landscape. The Cherry Blossom Festival is well received by visitors every year. Since Chiyoda Ward considers the illumination of the cherry blossoms at their peak as an eco-friendly event, halo- gen lamps have been replaced by energy-saving LED lighting since last year. For this year’s illumination, held for 12 days from March 26 to April 6, CO2 emissions were reduced by approximately five tons using power generated by MHI’s photovoltaic facility over the one- year period since LED lighting installation. MHI earned high marks from Chiyoda Ward for contributing to this environmentally friendly event because the level of reduction is equivalent to the CO2 absorbed by 350 cedar trees in a year.

Photovoltaic facility installed on a boathouse roof

59 Mitsubishi Heavy Industries, Ltd. Development of Future Generations

Endowment of Chair at a MHI Cup Elementary School Science Class University in Vietnam Students Football Competition The Paper & Printing Machinery Division and the Since 1997, MHI has jointly endowed a chair with The Power Systems Headquarters has spon- Transportation Systems & Advanced Technol- UNESCO at the Hanoi University of Technology sored the MHI Elementary School Students’ ogy Division held science classes for fifth-grad- in Vietnam. In 2009, approximately 100 students Football Championship since 2008. Three rep- ers in Mihara City, Hiroshima Prefecture. In the and researchers participated in lectures on nuclear resentative teams that had won regional tourna- class, children conducted experiments on color power, transportation systems, and marine diesel ments in Yokohama, Takasago and Nagasaki and light and took test rides on next-generation engines for ships. gathered again in 2009 for heated competition at transportation systems, among other activities. Ajinomoto Stadium.

Supporting Internships Hands-on Manufacturing Softball Tournament

MHI’s works across the nation support intern- The Machine Tool Division held a Hands-on The Nagasaki Shipyard & Machinery Works holds ships that enable students, representing future Manufacturing Class for elementary school the MHI Pennant Boys Softball Championship, generations, to concretely consider their career students (grades 3–6) and their parents. MHI in which members of the MHI Nagasaki baseball paths and ascertain their abilities through voca- employees explained the mechanism of power team take charge of preparations and run the tour- tional experiences. In fiscal 2009, the company generation by solar cell batteries by making solar nament. For fiscal 2009, 3,000 players from inside accepted a total of 289 students. cars. We received many comments, such as “I and outside Nagasaki Prefecture and a total of 70 learned a lot since it was so easy to understand.” teams competed for the championship.

Topics

Annual visitors to the Mitsubishi Minatomirai Industrial Museum exceed 150,000

The annual number of visitors to the Mitsubishi Minatomirai Industrial Museum, which marked its 15th anniversary, exceeded 150,000 annual visitors in March 2010 for the first time. Since the opening of the museum, 1.5 million people have visited. The museum was established by MHI to provide opportunities for youth, who represent future generations, to experience the fascination of science and technology. In addition to six exhibition areas that The refurbished Ocean Zone opened in January explain MHI’s cutting-edge products and technology (Space, Ocean, Transportation, Daily 2010. Life Discovery, Environment/Energy, and Technology Quest), experience-based exhibits allow students to learn manufacturing first-hand through simulations of vehicle design, production and operation. We also run the museum so that adults as well as children can enjoy activities such as craft workshops and movies, making it fun for the whole family.

Open hours: 10:00 a.m. to 5:00 p.m. (admission until 4:30 p.m.) Mitsubishi Minatomirai Closed days: Every Monday (the following day if Monday is a Industrial Museum national holiday); at year-end and New Year, and as specified http://www.mhi.co.jp/ Tel: 045-200-7351 en/museum/

Craft workshops are very popular with children, who enjoy the direct, hands-on experience.

CSR Report 2010 60 Responsibilities and Actions of MHI Commitment to People and Society

as instructors and explained the mech- Socially Beneficial anisms of global warming and the latest Activities by Group global warming mitigating technology to 70 fourth-graders. Companies After the classes, teachers offered such comments as, “The use of charts MHI Group companies engage and demonstrations made the lesson very in various social contribution easy to understand. It was a good oppor- Relief supplies bound for Haiti activities in line with the tunity for students to deepen their interest characteristics of their in environmental issues.” aviation-related businesses, enabling the respective businesses and the company to charter a large cargo plane local communities they serve. and to establish a much needed transportation relief route. MHIA also provided vital lighting towers (powered by MHI-manu- Mitsubishi Heavy Industries factured generators), as well as other cru- Bridge & Steel Structures cial supplies and equipment. Engineering Co., Ltd. It is gratifying to know that the relief supplied by MHIA was put to good use to Environmental class Joint experiments for the ease the suffering of earthquake victims regeneration of coral and to improve their daily lives. Dia Food Service Co., Ltd. Coral bleaching has emerged as an issue Mitsubishi Caterpillar Forklift due to rising sea water temperatures Offering dishes with bitter melon Europe B.V. caused by global warming. Therefore, harvested from green curtains Mitsubishi Heavy Industries Bridge & Job training opportunities for Steel Structures Engineering Co., Ltd. has Once a week in August 2009, Dia Food students been conducting research and pilot proj- Service Co., Ltd. offered set meals using ects for the regeneration of coral reefs in bitter melons harvested at Takatsu Ward Mitsubishi Caterpillar Forklift Europe B.V. Okinawa Prefecture in collaboration with Office, Kawasaki City at Restaurant Takatsu, in the Netherlands established a company the University of Tokyo and other institu- which the company operates under con- school that has provided students with job tions and companies since 2004. tract with the Takatsu Ward office. training opportunities since 1997. In the past, the method of transplant- The office has installed green curtains The school offers a one-year training coral grown in a water tank was com- using bitter melons as a measure for pre- ing curriculum to students free of charge mon. In our joint experiments, however, venting global warming. Dia Food Service and two dedicated instructors who teach bases with micro-currents are immersed helped promote the green activities of the welding, painting, assembling and other into tanks. These micro-currents have a office by using the bitter melons grown skills. There are always about ten stu- significant propagational effect on coral. here as an ingredient for set meals. In dents enrolled in the program, and they The company hopes to support the rapid addition, a ¥5 per set meal was donated gain valuable work experience while con- regeneration of coral reefs by promoting to “Eco City Takatsu,” Takatsu Ward’s tinuing their academic studies. the implantation and growth of coral. environmental action project. Research in 2009 proved that the bases we developed have a five to seven The company school times higher implantation effect compared to existing bases. Looking ahead, we intend to provide this technology to local fishery cooperatives who are working hard to recover coral reefs. The company school Bitter melon green curtains

Mitsubishi Heavy Industries CBC Industrias Pesadas S.A. America, Inc. Plant tours for students Mitsubishi Heavy Industries Since 2006, CBC Industrias Pesadas S.A. Propagational bases for coral reefs America, Inc.’s support activities following the Haiti Earthquake in Brazil has offered plant tours for stu- Mitsubishi Heavy Industries dents from vocational schools, elementary Air-Conditioning & Thermal Mitsubishi Heavy Industries America, schools, high schools and universities. Systems Corporation Inc. (MHIA), along with Mitsubishi Heavy In 2009, the company hosted 20 Industries, Inc. in Japan, conducted relief students from a Japanese school in Sao Environmental classes for operations valued at ¥10 million for the Paulo as well as a total of 116 students elementary school students victims of the earthquakes that first struck from other schools. Haiti on January 12, 2010. In February 2010, as part of efforts to nur- Civil relief activities were extremely ture future generations, Mitsubishi Heavy challenging due to the closing of port facil- Industries Air-Conditioning & Thermal ities and to the widespread devastation Systems Corporation conducted envi- and turmoil generally. ronmental classes at the elementary MHIA, however, cooperated with var- school alma maters of our employees. ious NPOs, and took advantage of its own In the classes, our employees served vast resources, including its airplane and Students from a Japanese school on a plant tour

61 Mitsubishi Heavy Industries, Ltd. Recognition from Society

Commendation List

Year Month Award Name Organization/Item Awarded by Awarded Awarded Certificate of Appreciation for cooperating in the City of Yokohama Machinery Works, Power Systems Headquarters, 2009 April City of Yokohama Yokohama’s “1.5 Million Tree Planting Actions” Mitsubishi Heavy Industries, Ltd. Certificate of Appreciation for cooperating in the City of April Ryonichi Engineering Co., Ltd. City of Yokohama Yokohama’s “1.5 Million Tree Planting Actions” Certificate of Appreciation for cooperating in the City of April MHI Energy & Service Co., Ltd. City of Yokohama Yokohama’s “1.5 Million Tree Planting Actions” Chairman’s Commendation for Excellent Company for Nagoya Guidance & Propulsion Systems Works, Mitsubishi May Aichi Prefecture Explosives Safety Association prevention of Explosion Disasters Heavy Industries, Ltd. The Most Outstanding Office, 26th Fukuoka Prefecture Safe Product Support Group, Kyushu Office, Mitsubishi Heavy Fukuoka Prefecture Safe Driving Management Committee, May Driving Management Committee Traffic Accident Prevention Industries Engine Systems Co., Ltd. Fukuoka Prefectural Police Contest Nagasaki Shipyard & Machinery Works, Mitsubishi Heavy Nagasaki Prefecture Safe Driving Management Conference June Commendation for Good Office of Safe Driving Management Industries, Ltd. Corp., Nagasaki Prefectural Police Development of Advanced Natural Gas Storage, Project July Engineering Special Encouragement Award Team consisting of the Japan Gas Association and 12 other Engineering Advancement Association of Japan companies

July Engineering Special Encouragement Award Mitsubishi Heavy Industries, Ltd. CO2 Capture Project Engineering Advancement Association of Japan 2008 Ship of the Year, Best Ship Award in Large Cruise July Mitsubishi Heavy Industries, Ltd. The Japan Society of Naval Architects and Ocean Engineers Ship Category Certification of Appreciation for PR and enlightenment “Japan Aerospace Exploration Agency JAXA Space July activities for Selenological and Engineering Explorer Mitsubishi Heavy Industries, Ltd. Exploration Center” “KAGUYA” (SELENE) August Silver Order of Merit, Japanese Red Cross Society Machine Tool Division, Mitsubishi Heavy Industries, Ltd. Japanese Red Cross Society Silver Prize, “No Accident, No Violation Challenge Contest,” September MHI Airport Environment Co., Ltd. Osaka Prefectural Police Department Osaka Prefectural Police Department 2009 Global Environmental Technology Award (for the Mitsubishi Heavy Industries Bridge & Steel Structures Japan Sociey of Civil Engineering Global Environment September construction of an electrodeposition base for coral increases) Engineering Co., Ltd. Committee 2009 Governor’s Commendation for Excellent Business with Shimonoseki Shipyard & Machinery Works, Mitsubishi October Yamaguchi Prefecture Global Warming Countermeasures Heavy Industries, Ltd. Newspaper Advertising Prize Runners-up in Advertisers’ Mitsubishi Heavy Industries, Ltd. environmental October Japan Newspaper Publishers and Editors Association Planning Category advertisement Non-Accident Record Certificate (Type 1) established by Nagoya Guidance & Propulsion Systems Works, Mitsubishi Ministry of Health, Labour and Welfare Safety Standard October Ministry of Health, Labour and Welfare Heavy Industries, Ltd. Bureau Certificate of Appreciation for providing parking at Air Nagoya Guidance & Propulsion Systems Works, Mitsubishi October Komaki Air Base, Japan Air Self-Defense Force Festival, Komaki Air Base Heavy Industries, Ltd. Certificate of Appreciation for providing parking at Air Nagoya Aerospace Systems Works, Mitsubishi Heavy October Komaki Air Base, Japan Air Self-Defense Force Festival, Komaki Air Base Industries, Ltd. November Environmental Special Prize in 3rd Environment Awards Machine Tool Division, Mitsubishi Heavy Industries, Ltd. Japan Solid Cutting Tools Association 29th Takasaki City Award as a contributing company for Materials Department, Paper & Printing Machinery Division, November City of Takasaki, Gunma Prefecture promoting industry Mitsubishi Heavy Industries, Ltd. 1st Place, Other Products Manufacturing Category, Nikkei November Personal Computing Business Website Rankings, by Website, Mitsubishi Heavy Industries, Ltd. Nikkei BP Marketing, Inc. industry 1st Place, Machinery Sector, Best-practice corporate November Website, Mitsubishi Heavy Industries, Ltd. Nikko Investor Relations Co., Inc. website 2009, of all Listed Companies in Japan 4th Place, Machinery and Transportation Equipment Category, November Website, Mitsubishi Heavy Industries, Ltd. Japan Brand Strategy, Inc. Corporate Communication Website Rankings, by industry 5th Place, IR Information Category, Corporate November Investor Relations website, Mitsubishi Heavy Industries, Ltd. Japan Brand Strategy, Inc. Communication Website Rankings, by content Good Office for Trash Separation, Yokohama Environmental Kanazawa Plant, Yokohama Machinery Works, Mitsubishi November Resources & Waste Recycling Bureau, City of Yokohama Action Awards (5th consecutive year) Heavy Industries, Ltd. Good Office for Trash Separation, Yokohama Environmental Honmoku Plant, Yokohama Machinery Works, Mitsubishi November Resources & Waste Recycling Bureau, City of Yokohama Action Awards (4th consecutive year) Heavy Industries, Ltd. Certificate of Appreciation for Cooperation in “Children’s Yokohama Machinery Works, Power Systems Headquarters, Director, Japan Office, World Food Programme, United November Campaign for Energy Savings” Mitsubishi Heavy Industries, Ltd. Nations Grand Prize, Client Category, 19th Nagasaki Shimbun Environmental advertisement, Nagasaki Shipyard & November Nagasaki Shimbun Advertising Awards Machinery Works, Mitsubishi Heavy Industries, Ltd. Web Grandprix Award, For Students under 15 Award, 3rd December “Kids Land” website, Mitsubishi Heavy Industries, Ltd. IBM Japan, Ltd. Japan Web Grandprix Award, by Web Grandprix Web Grandprix Nominee, Contents Planning & Writing for “The Story of Manufacturing” website, Mitsubishi Heavy December B to B Award, 3rd Japan Web Grandprix Award, by Web IBM Japan, Ltd. Industries, Ltd. Grandprix Web Grandprix Nominee, Corporate Information & Corporate Website, Mitsubishi Heavy Industries, Ltd. December Citizenship Award, 3rd Japan Web Grandprix Award, by Mitsubishi Minatomirai Industry Museum website, IBM Japan, Ltd. Web Grandprix Mitsubishi Heavy Industries, Ltd. Certificate of Appreciation for Contribution to Economic December Development by Mitsubishi Heavy Industries-Haier Mitsubishi Heavy Industries, Ltd. City Government of Qingdao, People’s Republic of China (Qingdao) Air Conditioners Co., Ltd. through its business Grand Prize, 13th Japan Stainless Steel Association Awards December Mitsubishi Heavy Industries, Ltd. and 13 other companies Japan Stainless Steel Association (D runway of Haneda Airport stainless steel lining jacket) Certificate of Appreciation for understanding of and Nagoya Guidance & Propulsion Systems Works, Mitsubishi 2010 January Komaki Police Station, Aichi Prefectural Police cooperation with police activities Heavy Industries, Ltd. Certificate of Appreciation for Relief Funds for 2004 Indian January Mitsubishi Heavy Industries, Ltd. Ministry of Health, Labour and Welfare Ocean Earthquake and Tsunami, Japanese Red Cross Society Nikkei Business Daily Awards for Superiority in the 2009 February Nikkei Superior Products and Services Awards (Hybrid Mitsubishi Heavy Industries, Ltd. Nikkei Inc. forklift “GRENDiA EX Hybrid”) Fiscal 2009 Good Plant for Energy Management, Shimonoseki Shipyard & Machinery Works, Mitsubishi February Commendation from Director, Chugoku Bureau of Economy, Chugoku Bureau of Economy, Trade and Industry Heavy Industries, Ltd. Trade and Industry Shipbuilding & Ocean Development Headquarters, Yokohama February Outstanding Safety Award The Shipbuilding Association of Japan Plant, Mitsubishi Heavy Industries, Ltd. 2009 Award for Urban Landscape in Nagasaki City (Large Nagasaki City Library and Nishinihon Ryoju Estate Co., Ltd. Nagasaki City Award Conferring Committee for Urban February Structure Category) in cooperation with other companies Landscape Competition Shimonoseki Shipyard & Machinery Works, Mitsubishi March Shimonoseki Pika Pika Grand Prize City of Shimonoseki, Yamaguchi Prefecture Heavy Industries, Ltd. Japan Industrial Technology Awards (for development of the March Mitsubishi Heavy Industries, Ltd., 11 other companies Nikkan Kogyo Shimbun, Ltd. HTV/H-IIB launch vehicle)

CSR Report 2010 62 Progress Toward a Sustainable Society

MHI’s Activities ( Society Environment) Year Major Events in Japan and Abroad ( Society Environment)

Japan World 1967 Institution of Basic Law for Environmental 1948 Universal Declaration of Human Rights. Pollution Control. 1972 United Nations Conference on the Human 1970 Completion of Japan’s first PWR power plant. 1971 Establishment of Environment Agency. 1970 Environment convenes in Stockholm. 1973 Inauguration of Environment Management Department. Adoption of Statement for Human Environmental Quality. 1977 Development of “Basic Guidelines for Safety & Establishment of United Nations Environment Health Management.” Programme (UNEP). 1978 Creation of Environmental Manager Conferences. 1976 OECD Guidelines for Multinational Enterprises issued. 1980 Establishment of Committee on Promotion of 1980 1981 Convention on the Elimination of All Forms of Training in the Dowa Issue. Discrimination against Women went into effect. 1985 Enactment of Equal Employment Opportunity Law. International Year of Disabled Persons. 1987 Establishment of Export-related Regulations Monitoring Committee. 1988 Enactment of Ozone Layer Protection Law. 1987 Adoption of Montreal Protocol on Substances that Deplete the Ozone Layer. 1989 Launch of In-house Conference on CO2 Measures and In-house Conference on CFC Measures. 1990 Institution of Americans with Disabilities Act. 1990 1991 Establishment of Keidanren Global 1992 United Nations Conference on Environment and Environmental Charter. Development (Earth Summit) convenes in Rio de Establishment of Keidanren Charter of Janeiro; adoption of Rio Declaration on Corporate Behavior. Environment and Development and Agenda 21. Enactment of Child Care Leave Law. 1992 Committee on Promotion of Training in the Dowa Issue renamed Committee for 1992 Ministry of International Trade and Industry 1994 Caux Round Table draws up Principles for Business. Raising Awareness of Human Rights. requests Voluntary Plan on the Environment. Establishment of Committee for the Promotion 1995 1st Conference of the Parties to the United of Employment of the Handicapped. Nations Convention on Climate Change (COP1) 1993 Enactment of Basic Environmental Law. convened in Berlin.

1993 Formulation of voluntary plan entitled, 1996 ISO 14001 is instituted. 1995 Child Care Leave Law revamped into Child Care “Our Approach to Environmental Problems.” 2nd Conference of the Parties to the United and Family Care Leave Law. 1996 Formulation of Environmental Policies and Nations Framework Convention on Climate establishment of Environment Committee. 1996 Revision of Keidanren Charter of Change (COP2) convened in Geneva. Corporate Behavior. 1997 Acquisition of ISO 14001 certification by 1997 3rd Conference of the Parties to the United Yokohama Machinery Works, a first for Japan’s 1997 Formulation of Keidanren Voluntary Action Plan Nations Framework Convention on Climate heavy industry manufacturers. on the Environment. Change (COP3) convened in Kyoto. Launch of R410A-compatible air-conditioners. 1998 4th Conference of the Parties to the United (R410A: new type of environment-friendly 1998 Enactment of Law Concerning the Promotion of Nations Framework Convention on Climate refrigerant) Measures to Cope with Global Warming. Change (COP4) convened in Buenos Aires. 1998 Development of system that thermally Enactment of Law to Promote Specified Nonprofit Activities. decomposes PCBs contained in industrial 1999 5th Conference of the Parties to the United effluents. Nations Framework Convention on Climate 1999 Enactment of Pollutant Release and Change (COP5) convened in Bonn. 1999 Delivery of combined-cycle power plant Transfer Register (PRTR) Law. incorporating the M701G gas turbine, featuring the world’s highest efficiency rating. 2000 2000 Enactment of The Basic Law for Establishing 2000 6th Conference of the Parties to the United 2000 ISO 14001 certification acquired by all a Recycling-based Society. Nations Framework Convention on Climate production bases (13 works). Revision of Law for the Promotion of Recycled Change (COP6) convened in The Hague. Resources Utilization. United Nations Global Compact is instituted. Enactment of Construction Material Recycling Issuance of GRI Sustainability Reporting Law, Food Recycling Law and Law on Guidelines Version 1. Promoting Green Purchasing. 2001 7th Conference of the Parties to the United 2001 Establishment of Ministry of the Environment. Nations Framework Convention on Climate 2001 Acquisition of ISO 14001 certification by Change (COP7) convened in Marrakech. Engineering Department. Enactment of Law Concerning Special ISO Council launches feasibility study on Establishment of Compliance Committee. Measures against PCB Waste. establishing international CSR standards. Enactment of Fluorocarbons Recovery and Destruction Law. 2002 World Summit for Sustainable Development convened in Johannesburg. 2002 Establishment of medium- to long-term 2002 Ratification of Kyoto Protocol. 8th Conference of the Parties to the United environmental activity goals. Enactment of Soil Contamination Nations Framework Convention on Climate Countermeasures Law. Change (COP8) convened in New Delhi. Nippon Keidanren revamps Keidanren Charter of GRI Sustainability Reporting Guidelines Corporate Behavior into Corporate Behavior Charter. Version 2 released. First meeting of CSR Standardization Committee held by Ministry of Economy, Trade and Industry. 2003 First study meeting held to discuss treaty on safety of radioactive waste management. 9th Conference of the Parties to the United 2003 Trial project for trading of greenhouse gas emissions 2003 Establishment of Construction Business Act Nations Framework Convention on Climate implemented by Ministry of the Environment. Compliance Committee. Change (COP9) convened in Milan. Emissions standards for diesel vehicles tightened. 2004 Joined United Nations Global Compact initiative. 2004 Tenth item (on corruption prevention) added to Revision of Waste Management and Public United Nations Global Compact. Establishment of Managing Board for Cleansing Law. 10th Conference of the Parties to the United Innovation in the Nuclear Business. Japan Committee for Economic Development Nations Framework Convention on Climate releases 15th Corporate White Paper, entitled, Change (COP10) convened in Buenos Aires. 2005 Introduction of Executive Officer system. “Evolution of Market and Social Responsibility- Establishment of Internal Audit Department. Minded Business Management.” 2005 Kyoto Protocol goes into force. Establishment of CSR Center. 11th Conference of the Parties to the United 2005 Enactment of Act on the Protection of Personal Establishment of Order Compliance Committee. Nations Framework Convention on Climate Information. Change (COP11) and the 1st Meeting of the 2006 Acquisition of ISO 14001 certification by Parties to the Kyoto Protocol (COP/MOP1) 2006 Enactment of New Company Law. Head Office (including branch offices). convened in Montreal. New National Energy Strategy formulated. Establishment of CSR Committee. 2006 GRI Sustainability Reporting Guidelines Establishment of CSR Department. Version 3 released. 2007 21st Century Environmental Nation Strategy 12th Conference of the Parties to the United formulated. 2007 Establishment of CSR Action Guidelines. Nations Framework Convention on Climate Enactment of the revised Consumer Products Change (COP12) convened in Nairobi. 2008 Development of CSR Action Plan. Safety Law. EU announced target of reducing CO2 emissions by 20% compared to 1990 levels by 2020. 2008 Application of internal control report system based on the Financial Instruments and 2007 Fourth Assessment Report released by the Exchange Act (J-SOX) started. United Nations Intergovernmental Panel on Climate Change (IPCC). Holding of the G8 Hokkaido Toyako Summit. Revision of Act Concerning the Rational Use of Energy. 2009 The Green New Deal advocated by the U.S. is embraced by countries across the globe. 2009 Revision of Soil Contamination Countermeasures Law. 2010 15th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 15) convened in Copenhagen.

63 Mitsubishi Heavy Industries, Ltd. Third-Party Opinions

Masayasu Kitagawa Kumi Fujisawa Professor, The Okuma School of Public Vice President, Think Tank SophiaBank Management, Waseda University

I was impressed by the fact that in the Dialogue the President offered This was my first opportunity to read the CSR Report. President an honest account of past mistakes and an analysis of the current Omiya explained in the opening Dialogue that “MHI declares in its status and future goals of the company based on those mistakes. creed that we are obligated to be an innovative partner to society.” The sincerity of this stance has given deeper meaning and weight I agree; this indeed constitutes the essence of a company’s social to MHI’s corporate policy emphasizing the ten principles in the responsibility. At the same time I felt strongly that the very existence four areas of anti-corruption, human rights, labor and environment of a company such as MHI was a source of pride for the Japanese. laid out by the United Nations Global Compact, which MHI has There was a time when the term “CSR”—an imported foreign endorsed. I could sense the company’s spirited commitment to concept—led to praise for activities akin to a penance, in which creating a system of compliance not limited to Japan but worldwide companies directed profits into social contributions that were not based on international standards, in contrast to settling for a passive necessarily connected to their core business. The social purpose of stance of seeking compliance simply because the rules exist. MHI’s core business, however, is squarely presented in the feature Almost without exception, centuries-old companies possess article of this Report, along with the corporate creed. their own creeds that have become deeply rooted internally Having reviewed the corporate creed, I took it upon myself to re- and externally. They also possess lofty aspirations that remain read “Zuiji Zuidai (Topics of the Time),” a collection of observations by unchanged over the short-term, deep principles, mechanisms that Koyata Iwasaki, the fourth president of the Mitsubishi conglomerate. dispassionately and objectively reflect current circumstances and a Whenever Mr. Koyata spoke of Mitsubishi’s business, he used the system that keeps them functioning. There is much to learn from words, “society” and “state.” I was impressed that this was indeed the process through which a company becomes a brand in its own a company that has squarely carried the spirit of contributing to right by achieving sales and profit as well as by pursuing social society through its core business. contribution activities that transcend the immediate concerns of Then I came upon this question—why then is it necessary stakeholders, such as supporting local community development and for MHI to publish a report under the title of a CSR Report? The cultivating culture and the arts. company could just as well publish an Annual Report that doubles We are living in times of great upheaval, in which our value as a business report aimed at all stakeholders. If the company’s systems are undergoing fundamental changes, as represented core business is essentially the same as its social contribution, there by the IT Revolution, Energy Revolution, Financial Revolution and should be no difference between the two. degradation of the Earth. A sustainable corporation must maintain Mr. Koyata Iwasaki also repeatedly commented on enhancing an organization and system of execution for its aspirations and the personality and integrity of the people who worked at Mitsubishi. principles to become a brand in its own right. How well does this This Report introduced us to the various initiatives and opinions of CSR Report communicate and encourage understanding of the employees with regard to their contribution to society beyond the principles of top management based on the corporate creed, not core business. However, if the Report had presented us with the only among employees and stakeholders but in Japan and abroad aspirations and sense of social purpose felt by employees in the as well? While the report has steadily evolved over the years, I feel work they do for the company, it would have provided us with a it is still somewhat inflexible. Further improving the CSR Report will greater feeling for the strong connection between the company’s require the company to listen carefully to the broad opinions of core business and its contributions to society. society and collaborate with stakeholders. I hope that will lead to I look forward with great expectation for a Report that provides the next level of improvement in the CSR Report as an opportunity us with a look into the future of working people, precisely because for collaboration. If the Report can go beyond the values of ethics, MHI is a company that is at work building the foundations of future commitment, technological capability, responsiveness, and so forth society, not just in Japan, but around the world. to the extent of emanating a subtle sense of security and reliability, it will enter a completely new dimension and add even more value to MHI as a long-standing company.

Acting on Valuable Opinions

As a manufacturing company, MHI contributes to the future on MHI’s aspirations to contribute to society through our of people and the Earth through the provision of equipment core business and our concrete efforts in that direction. related to energy and environmental protection as well as Especially in these times of great changes, we hope to meet numerous products and technologies that support social the expectations held of us by focusing once again on the infrastructures. Each year in our CSR Report we disclose the spirit of our corporate creed and maintaining that aspiration company’s newest initiatives as our way of communicating within the hearts of every employee in pursuing our business. our pride in and responsibility toward manufacturing. This To this end, we will consider creating opportunities for Katsuhiko year, in response to the opinions we received last year, collaboration between stakeholders inside and outside the Yasuda we incorporated several new features to make the Report company based on Mr. Kitagawa’s advice and for presenting easier to read and understand. For example, we included employee aspirations toward our business, following Ms. Director, Executive Vice President in a message from the President in dialogue format, provided Fujisawa’s suggestion. charge of CSR more opportunities for presenting the voice of external Going forward, we will continue to accord CSR the stakeholders, introduced comments by employees—who central position within our management structure in order to take the lead in CSR—and added new items for disclosure. achieve growth as a global company that is trusted by its This year, we received positive responses from Mr. stakeholders everywhere. Kitagawa and Ms. Fujisawa to the President’s comments

CSR Report 2010 64 Locations (as of July 1, 2010) Head Ofﬁce 16-5, Konan 2-chome, Minato-ku, Tokyo, Japan Postal Code: 108-8215 Phone: 81-3-6716-3111 (main number) Fax: 81-3-6716-5800

Yokohama Mitsubishi Juko Yokohama Bldg., 3-3-1, Minatomirai, Nishi-ku, Yokohama, Kanagawa, Japan Postal Code: 220-8401