MHI Social and Environmental Report

MHI Social and Environmental Report CSR Report CONTENTS Editorial Policy This report was prepared by Mitsubishi Heavy Industries, Ltd. to describe the company’s stance and initiatives, through its business activities, toward 1 Editorial Policy & Scope of This Report the development of a sustainable society. MHI hopes that the report will serve 2 Company Profile & Business Highlights as a foundation for active dialogue with a broad spectrum of stakeholders regard- ing the company’s business practices. Vision & Mission This year’s report stresses the following items in particular. Message from the President 3 – 6 • Making reference to the valuable opinions 7 – 8 MHI’s Perspective on Corporate Social Responsibility (CSR) gleaned through last year’s stakeholders meeting, messages from third-party com- mentators, and the results of our question- naire survey, this year efforts were made to Special Features present the report in an easy-to-read and easy-to-understand format. 9 – 13 The Second Stakeholders Meeting • Last year, the view was expressed at the 14 – 18 Initiatives toward Preventing Global Warmin stakeholders meeting that MHI should indi- cate its corporate vision. In response, this 19 –24 Social Contributions through Business Activities year’s stakeholders meeting focused on the topic of energy and the company clearly indi- cated its vision for the future (see pages 9- Management 13). • In the Special Feature titled “Social Contribu- 25 – 26 CSR Challenges, Targets and Progress tions through Business Activities” (pages 19- – Corporate Governance 24), the company describes how its business 27 28 activities are contributing to the development 29 CSR Promotion of a sustainable society. A special spotlight is trained on initiatives being taken to counter- act global warming, an issue of particularly high social concern. A detailed presentation Compliance is given of the company’s CO2 recovery technology and achievements in wind and photo- 30 – 34 Compliance voltaic power generation (pages 14-18). • A report is presented on the company’s al- leged violations of the Antimonopoly Act, in- Environment cluding the reasons that led to them and measures to prevent a recurrence (pages 35 – 36 Environmental Impact of MHI’s Business Operations 30-34). 37 – 39 Environmental Management System Going forward, MHI intends to issue a 40 Environmental Accounting “Social and Environmental Report” every year , and to continuously enhance the 41 – 42 Countermeasures against Global Warming content of the report, to serve as an important communication tool. 43 Management of Chemical Substances 44 Resources Conservation and Waste Management 45 – 46 Environmental Contributions through Products Scope of this Report • Target organization: The information contained in this report pertains to Mitsubishi Heavy Social Performance Industries, Ltd. However, the company profile in- cludes some consolidated data (on sales, num- 47 – 48 Commitment to Stakeholders ber of employees, etc.). – Commitment to Our Customers • Target period:April 2005 through March 2006 49 50 (plus some information on activities after April 51– 54 Commitment to Our Employees 2006) 55 Commitment to Shareholders and Investors Date of Issuance 56 Commitment to Suppliers June 2006 (previous issue: June 2005) 57 – 59 Contributions to Society Referenced Guidelines 60 Communication with Society Global Reporting Initiative’s (GRI) “Sustainability Reporting Guidelines” (2002 edition); “Environmental Reporting Guidelines” (2003 edition) of the Japanese Ministry of the 61 Progress Toward a Sustainable Society Environment. 62 Third-Party Opinions 63 – 64 GRI Guidelines and Global Compact Comparison Chart 1 Trade Name: Mitsubishi Heavy Industries, Ltd. Foundation: July 7, 1884 Company Profile Establishment: January 11, 1950 President: Kazuo Tsukuda Head Office: 16-5, Konan 2-chome, Minato-ku, Tokyo Capital: 265.6 billion yen (as of March 31, 2006) Employees: 32,627 (as of March 31, 2006) FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 Statement of Orders received 2,640.3 2,424.9 2,480.9 2,662.8 2,722.8 2,942.0 Accounts (Consolidated) Net sales 3,045.0 2,863.9 2,593.8 2,373.4 2,590.7 2,792.1 Operating income 74.8 78.6 115.3 66.6 14.7 70.9 Net income (loss) –20.3 26.4 34.3 21.7 4.0 29.8 Total assets 4,236.6 3,915.2 3,666.8 3,715.3 3,831.1 4,047.1 Net assets 1,278.2 1,282.7 1,270.9 1,324.4 1,309.9 1,376.2 (Unit: billion yen) FY 2005 sales by industry segment Relationship Segments Headquarters and Divisions Sales by (Unit: billion yen) between seg- Shipbuilding & 68.7 Shipbuilding & Ocean Shipbuilding & Ocean Industry Segment Development ments and di- Ocean 222.6 Development Headquarters and Region visions (head- Development Power (Consolidated) 805.0 Systems quarters) 710.9 Power Systems Headquarters Machinery & Steel Structures Power Systems Nuclear Energy Systems Aerospace Headquarters 445.9 538.7 Mass and Medium-lot Manufactured Machinery Machinery & Machinery & Steel Steel Structures Structures Headquarters*1 Other Aerospace Aerospace Headquarters FY 2005 sales by region General Machinery & 32.2 (Unit: billion yen) Special Vehicle Headquarters 57.2 Japan 182.8 Mass and Air-Conditioning & Refrigeration North America Medium-lot Systems Headquarters 522.4 Manufactured Central and 1,566.1 South America Machinery Paper & Printing Machinery Division 108.5 Asia Machine Tool Division 322.5 Middle East *1. The Machinery & Steel Structures Headquarters was Europe newly created in May 2006 from the former Steel Struc- tures & Construction Headquarters and Machinery Head- Other quarters. Europe Russia Operating Bases Bases and Affiliates 10 Bases and Affiliates 1 and Employees Employees 1,507 Employees 4 by Region (Con- solidated)*2 Middle East (including Turkey) China (including Hong Kong) Japan North and South America Total employees: 62,212 Bases and Affiliates 3※ Bases and Affiliates 17 ※ Head Office and Bases and Affiliates 23 Employees 116 Employees 2,113 9 Domestic Offices Employees 3,136 Research & 6 Asia Development Centers Headquarters & Bases and Affiliates 18 Divisions 9 Employees 2,578 Works 9 *2 Operating bases and empliyees region (consolidateed) Major Domestic 127 Overseas bases and major subsidiaries: as of January 2006 subsidiaries ※Middle East, as of July 1, 2005 Bases in Japan: as of May 1, 2006 Oceania Subsidiaries in Japan: as of March 31, 2006 Bases and Affiliates 1 Total employees: as of March 31, 2006 Employees 20 MHI Social and Environmental Report 2006 2 Vision&Mission Message from the President Through its business In keeping with the spirit of activities, MHI aims to our company creed, corporate activities matching the times fulfill its corporate form the core of CSR at MHI. The basic spirit that defines corporate social responsibility management at Mitsubishi Heavy Indus- tries is in the main twofold: first, we pledge to make useful contributions to (CSR) - to secure society through our business activities; second, we aim to conduct all corporate activities in good faith. This spirit is the well-being of founded in the “Three Corporate Princi- ples” shared by all Mitsubishi Group companies from the earliest days, as people everywhere. well as in MHI’s own company creed for- mulated in 1970. In line with these princi- ples and our creed, through the years, through fair corporate activities in compliance with all laws, MHI has provided technologies and products that support the social infrastructure, thereby re- sponding to the trust of its customers and contributing to social development. In addition, as one of Japan’s leading manufacturers, we consistently carry out activities of a high level in such areas as environmental protection and contributions to local communities. Our current creed drawn up in 1970 is a contemporary version, in modern wording, of the spirit that has driven our company since its earliest days some 120 years ago. For 120 years, we have staunchly held to our management phi- losophy elaborated in the first provision of the creed – “We strongly believe that the customer comes first and that we are obligated to be an innovative partner to society.” – and we plan to retain this core focus going forward as well. However, while we will staunchly maintain this un- derlying spirit, the meaning imbued in these words is slowly changing. In former times, making contributions to soci- Kazuo Tsukuda, President ety equated to developing Japan into a nation economically reliant on its industries. Today, in the 21st century, we see 3 Vision & Mission our mission to be to respond to our cus- ety, and one might even say it is the val- fulfilled lives, while simultaneously pur- tomers’ trust and contribute to a safe and ue behind the company’s very existence. suing harmony between economic activi- rewarding life for people worldwide, un- However, the definition of “social prog- ties and the global environment. dergoing continuous development while ress” changes over time, and for that To name a specific example, I believe always seeking harmony between eco- reason we believe it is vital to maintain a that MHI is one of only a few corpora- nomic activities and the global environ- solid understanding of society so as to tions that have the potential to respond ment. make contributions that match the needs on global scale in resolving the problem of each point in time. of global warming – the greatest environ- The second category of CSR at MHI is mental issue the world faces today. “contributions to environmental preser- In particular, with respect to the prob- We fulfill our social vation, protection of human rights and la- lem of reducing emissions of CO2 given responsibilities in three bor support.” What is important in this re- off during the combustion process, we broad ways. gard, we believe, is to firmly recognize have developed technology for recover- the demands of society transcending le- ing more than 90% of the CO2 contained gal requirements, and to respond to in the gas emissions from power and Because corporate social responsibili- those demands in good faith.

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