Creed 1. We strongly believe that the customer comes first and that we are obligated to be an innovative partner to society. 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 international perspective. Reason for Instituting the Creed (Issued June 1, 1970) 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 The reason for instituting the present creed is so that all type, also. It was instituted in 1970 on the basis of the policy of us can call to mind our one hundred years of tradition and advocated by Koyata Iwasaki, president of Mitsubishi Goshi strive for further development in the future. Kaisha in the 1920s, to indicate the essential attitude of the Editorial Policy MHI uses its website for the comprehensive disclosure of Scope of this Report information related to the MHI Group’s CSR initiatives. MHI Target organization: also produces a CSR Report digest version (brochure) to The information contained in this report pertains to Mitsubishi succinctly convey the activities that are the target of great Heavy Industries, Ltd. and its Group companies (110 in Japan interest from society and are also highly important to MHI. and 126 overseas). Some articles, however, only include de- In 2013, with a greater awareness of dialogues with our scriptions of MHI’s activities. stakeholders, we have included an interview of our president conducted by an outside expert, and dialogues with outside Target period: experts on human rights issues. The brochure is kept concise From April 1, 2012 to March 31, 2013 for ease of reading, while the website includes more detailed (includes information on some activities after March 31, 2013) information to offer a greater understanding of matters intro- duced. In addition, MHI reports on its representative efforts Guidelines and Other Reference Material with the aim of resolving issues on a global scale through a • Global Reporting Initiative (GRI) wide range of business fields such as Energy & Environment, “Sustainability Reporting Guidelines (G3.1 version)” Transportation, and Aerospace. • Japanese Ministry of the Environment “Environmental Reporting Our website contains detailed information — focusing Guidelines (2012 edition)” on “Management,” the “Environmental Report,” and the • ISO 26000 “Social Contributions Report” — that is not included in the NOTE: A “Guideline Comparison List” will be posted on our website. brochure. In the future we will continue to improve these re- ports in response to your feedback. Date of Issuance June 2013 (previous issue: June 2012) Structure of CSR information disclosure Recent efforts are included under “CSR” on the MHI website. High MHI CSR activity reports Detailed version (website) Disclaimer In addition to objective information on the past and present status of Digest version (brochure) Mitsubishi Heavy Industries, Ltd. and its Group companies, this report also URL contains plans, perspectives and forecasts based on business plans and Stakeholder interest http://www.mhi.co.jp/en/csr/ other materials. These forecasts are made using information available at the time of publication and therefore the actual outcome of future business activities may differ from these forecasts. Importance for MHI High 1 Detailed Version MHI Social and Environmental Report Corporate Social Responsibility Report CONTENTS Commitment by Management — Interview with the President 3 Leveraging our comprehensive strengths in manufacturing to help realize a sustainable society CSR of the MHI Group 12 Feature 15 Senior Management’s Commitment Towards an Assured Future for Mankind and Earth in Interview Format 1 Large-Scale Offshore Wind Power Generation: One Solution to Energy Issues 17 2 MEGANINJA: A Solution to Energy Demands for Distributed Power Generation Systems 19 3 Delivering New Urban Transportation Systems that Are Large-Scale Offshore Wind Turbines Installed Safer, More Comfortable, and Friendlier to the Environment 21 in the U.K. (conceptual image) 4 Contributing to International Space Activities by Enhancing Launch Capability and Reliability 23 Employees Introduce Our CSR Activities 25 Stakeholder Dialogue 33 MHI will strive to identify adverse human rights impacts of our business activities and take appropriate steps to respect human rights MEGANINJA Container-type Gas Engine Generator Highlights of CSR Activities in FY2012 35 CSR Medium-Term Action Plan and Results of Promotion 37 Company Profile 43 Third-Party Opinions /Acting on Valuable Opinions 53 Responsibilities and Actions of MHI Management 54 Corporate Governance 55 Promotion of CSR 60 Compliance 68 Green Mover Max Next Generation Automated People Mover Environmental Report 77 Environmental Management 78 Targets and Progress 91 Material Balance 98 Environmental Accounting 99 Countermeasures against Global Warming 101 Resource Conservation, Waste Management and Water Resources 112 Management of Chemical Substances 118 Products and Technologies that Reduce Environmental Impact 122 H-IIB Rocket Launch to Carry Large Cargo Social Contributions Report 126 into Space Commitment to Our Customers 127 Commitment to Our Shareholders and Investors 135 Commitment to Our Business Partners (Suppliers) 138 Commitment to Our Employees 143 Social Contribution Activities 155 Recognition from Society 168 Progress toward a Sustainable Society 174 Main Third-party Opinions on Past CSR Reports and Our Responses 178 GRI Guideline Comparison List 181 CSR-Related Data 189 Stakeholder Dialogue on Human Rights 2 Commitment by Management - Interview with the President Profile Shunichi Miyanaga Mayumi Matsumoto President and CEO, Visiting Assistant Professor, Special Division Mitsubishi Heavy Industries, Ltd. for Energy and Environmental Sciences, Komaba Organization for Educational Born in Fukuoka Prefecture, Japan, on April Excellence (KOMEX), 27, 1948. College of Arts and Sciences, The University Graduated from the University of Tokyo of Tokyo Faculty of Law and joined MHI in 1972. Appointed President of MHI-HITACHI Metals Born in Kumamoto Prefecture, Japan, Mayumi Machinery, Inc. in 2000 (renamed Mitsubishi- Matsumoto graduated from the Faculty of Hitachi Metals Machinery, Inc. in 2002). Foreign Studies at Sophia University. After Appointed as Member of the Board and graduating, she worked as a newscaster for TV Executive Vice President of MHI, as well as Asahi and contributed numerous features as a Head of Machinery & Steel Structures reporter. From there, she joined the Japan Headquarters in 2008. Served as Member of Broadcasting Corporation's NHK BS 1 channel the Board, Senior Executive Vice President as a newscaster and was in charge of its World and Head of the Presidential Administration News programs for six years. Office from 2011. Appointed President and Matsumoto is active in environment- and energy- CEO on April 1, 2013. related NPOs and joined the University of Tokyo's Research Center for Advanced Science and Technology as a specially appointed researcher in May 2009. Her current position commenced in April 2013. 3 Promote CSR aligned to management strategy Our commitment reflected in the statement, "Our Technologies, Your Tomorrow" Matsumoto The world today is characterized by rapid market globalization and increased international competition due to the growing economies of emerging nations. Amidst these changes in the business environment, even greater importance is placed on Corporate Social Responsibility (CSR). Could you tell us about MHI's basic approach to CSR? Miyanaga Our business is integrally linked with various social and industrial infrastructures, such as energy and environmental products, environmentally friendly aircraft and rail transit. I believe MHI's greatest social responsibility is to help solve global social issues and create a sustainable society through the diverse range of products and services we offer. At MHI, we uphold our corporate identity statement, "Our Technologies, Your Tomorrow." This statement expresses our commitment to become a trusted global business that values the global environment and contributes to the realization of a sustainable society. I think MHI's approach to CSR is also summarized in this statement. Matsumoto "Our Technologies, Your Tomorrow" -- this is a great phrase that captures profound meaning in just four words. Miyanaga In considering a sustainable society, it's important that we protect and maintain the valued aspects of our society in an ever-changing environment. Our corporate identity statement is our declaration to tackle this task through technology. But this is becoming increasingly more challenging over time. In today's world, economies and societies are advancing impressively, not only in developed countries but also in newly developing countries as well, and technologies have continued to evolve. Meanwhile, the world population has rapidly increased, which will very likely lead to all manners of discord and strife, including environmental issues and ethnic conflicts. Under such circumstances, we must balance economic development and environmental conservation, and it will be crucial that we respect the varying thoughts and opinions around the world in order to realize a sustainable society. Matsumoto Indeed, in addition to