Mitsubishi Electric Group’s Materiality

The Mitsubishi Electric Group places more focus than ever on sustainability initiatives at the management level to realize the "vibrant and sustainable society" that we have committed to in our Purpose. We have identified five areas as materiality to "Provide solutions to social challenges through our businesses" and as part of our "Strengthen our business foundation to enable sustainable growth." Through these materiality initiatives, we will create economic and social value and will contribute to solving social challenges starting with contributing to achieving the SDGs. In our materiality initiatives, we promote continuous activities for improvement by implementing the PDCA cycle for mid-to-long-term initiatives and goals as well as for key performance indicators (KPIs).

Materiality and SDGs

In 2015, the countries of the United Nations General Assembly adopted the Sustainable Development Goals (SDGs). The Mitsubishi Electric Group views these SDGs as an important agenda, the realization of which society seeks.

Under its Purpose that "We, the Mitsubishi Electric Group, will contribute to the realization of a vibrant and sustainable society through continuous technological innovation and ceaseless creativity" the Group aims to contribute to solving social issues. This policy corresponds to what the globally shared goals of the SDGs aim to achieve.

Through our numerous businesses and the entirety of our corporate activities, including environment, social and governance (ESG)-related activities, the Mitsubishi Electric Group is contributing to meeting the 17 SDGs.

Priority SDG initiatives

In line with the materiality identified for fiscal 2022, we reviewed the SDGs to address on a priority basis that we determined in fiscal 2019. In the course of reviewing our goals, we conducted an internal and external survey. As a result of it, we found that Mitsubishi Electric is expected to contribute to resolving social challenges through its business activities.

Based on a study within the company, we set SDGs 3, 7, 9, 11, and 13 as the Priority SDG initiatives, which correspond to "realize a sustainable global environment" and "realize a safe, secure, and comfortable society," the areas that the Group will focus on going forward. By further promoting initiatives to create value for these goal s to which we can contribute significantly as a comprehensive electrical and electronics manufacturer, we will make a specific contribution to achieving the SDGs.

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

In doing this, the Mitsubishi Electric Group will integrate the concept of the SDGs into its management strategy and contribute to the SDGs that we will prioritize through our materiality initiatives.

Initiatives related to the 17 SDGs

The Mitsubishi Electric Group, as a comprehensive electrical and electronic manufacturer, handles a wide range of technologies, products, and services, ranging from familiar home electronics products to satellites and projects on a national scale. As such, we believe that we can also greatly contribute toward meeting the 17 Sustainable Development Goals (SDGs).

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  No Poverty

  We are working to end poverty by creating employment through the global expansion of our business, and launching initiatives including the establishment of social infrastructure and volunteer activities.

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  Zero Hunger

  We are contributing to solving food-related issues through measures including the provision of IT support for agriculture via ICT and positioning satellites, improving productivity in foodstuffs factories through FA, and supplying refrigeration and freezing technologies for food.

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  Good Health and Well-being

  We contribute to improving health and well-being through transportation safety support systems that help to cut down traffic accidents, as well as through cutting-edge Air conditioning Systems that contribute to the advancement of treatment.

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  Quality Education

  In addition to providing technological assistance to developing nations and supporting remote education through our communication and IT technologies, we are contributing to fostering the next generation and beyond through activities that contribute to society.

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  Gender Equality

  We are supporting the social empowerment of women through providing ICT services and supplying home appliances, and we are promoting the further advancement of women within the Group.

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  Clean Water and Sanitation

  The Group has technology for treating and purifying water, and supplies technologies and systems whose purpose is to deliver safe water.

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  Affordable and Clean Energy

  We are working to develop technologies and systems that will help produce a smart, energy-conserving, and energy-creating society — technologies, products, and services that we are endeavoring to make widely available.

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  Decent Work and Economic Growth

  Through our FA and AI technologies, we are working to contribute to increased productivity and the provision of desirable working environments throughout the Group.

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  Industry, Innovation and Infrastructure

  The Group supports manufacturing through its factory automation business, and nurtures development in the industrial field through technological innovation.

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  Reduced Inequalities

  In cooperation with our stakeholders, we are contributing to realizing discrimination-free societies that respect human rights.

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  Sustainable Cities and Communities

  We provide safety, security, and comfort to people's lives through our work in the disaster-prevention and infrastructure-development fields.

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  Responsible Consumption and Production

  We are endeavoring to reduce the volume of resources used in manufacturing and to recycle spent products. Additionally, we are also pushing to reduce the volume of final waste disposed and to be environmentally friendly in our resource procurements.

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  Climate Action

  We are working to identify a total valuation of our CO₂ and other greenhouse gas emissions in order to set our goals for reductions.

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  Life below Water
  Life on Land

  We develop and supply observation satellites that deliver information about ocean and forest conditions, and furthermore promote initiatives at our offices aimed at harmonizing their activities with the local environment.

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  Peace, Justice and Strong Institutions

  Based on laws and international norms, we are working to improve both our supply chains and areas including human rights, labor, the environment and the prevention of corruption on a global scale.

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  Partnerships for the Goals

  We are contributing to the achievement of the SDGs through partnerships with entities including governments, universities, research institutes, companies, and NGOs, pushing ahead with open innovation and other initiatives.

Mid-to-long-term initiatives and FY2023 targets

Initiatives for carbon neutrality

In fiscal 2022, we examined how we respond to risks related to climate change and to opportunities for realizing carbon neutrality, and we clarified our policy for initiatives. The Mitsubishi Electric Group will adopt a dual-pronged approach to carbon-neutrality based on responsibility and contribution.

Responsibility

Carbon neutral initiatives in the entire value chain

Contribution

Create/expand businesses that contribute to carbon-neutral

Mid-to-long-term initiatives and FY2023 targets

Putting co-creation into practice at Mitsubishi Electric Event Space "METoA Ginza"

Opened "XCenter," an exhibition site based on the themes of digital transformation and smart cities

Mitsubishi Electric opened XCenter at its head office in December 2021 as a place for visitors to experience its cutting-edge technologies and products. XCenter will contribute to realizing smart cities featuring a balance between sustainable society and affluent life-styles by co-creating new solutions with customers and partners.

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Mid-to-long-term initiatives and FY2023 targets

Joining RBA

In February 2022, Mitsubishi Electric joined the Responsible Business Alliance (RBA), an alliance that promotes corporate social responsibility in the global supply chains. By adopting the RBA approach and tools in practical ways in order to strengthen its sustainability initiatives, thereby helping earn society's trust.

Realize a workplace environment that helps all employees work actively

Positioning the prevention of recurrence of work-related issues as our top management priority, the Group as a whole is advancing the "Mitsubishi Electric Workplace Reform Program" based on a third party evaluation conducted by outside experts, while aiming to achieve a culture where employees feel that they can consult with their superiors, where failures are tolerated, and where problems are solved together, through connections enabled by open communication.

Employee Awareness Survey

Mid-to-long-term initiatives and FY2023 targets

Dialogue between an Outside Director and the President & CEO: Improving the effectiveness of governance and corporate value

In response to a series of events with improper conduct in quality control, Mr. Kei Uruma was appointed President and CEO in July 2021 and Mr. Mitoji Yabunaka, an Outside Director, was appointed Chairman of the Board of Directors of Mitsubishi Electric in October 2021 to further strengthen the function of supervising management to improve of the effectiveness of the board of directors. After more than six months since each of them assumed their positions, they engaged in discussions together under the theme of improving the effectiveness of governance and corporate value. During this dialogue, they expressed their enthusiasm about the three reforms for the Mitsubishi Electric Group to regain trust and they exchanged frank views on the future of the Company, human resource strategies, and efforts to improve corporate value.

Date: May 2022

• Integrated Report

Compliance Motto - "Always Act with Integrity"

The Mitsubishi Electric Group established a compliance motto "Always Act with Integrity" for all Mitsubishi Electric Company‘s officers and employees on June 1, 2022. "Integrity" means the strong will and attitude to persist in doing the right thing and having character traits such as "being fair," "being honest," "being sincere," "taking responsibility for one's behavior" and "respecting others."

Mid-to-long-term initiatives and FY2023 targets

Organizational culture reform through the company-wide reform project
"Team Sousei (Creation)"

We launched a company-wide reform project "Team Sousei (Creation)" led by the CEO. The team consists of 45 young and middle-level employees selected through internal recruitment to raise awareness on a culture where employees feel that they can consult with their superiors, where failures are tolerated, and where problems are solved together in October 2021. The Team Sousei (Creation) has developed "Robust Policies" in April through three steps of discussions and considerations for the realization of the organizational culture that Mitsubishi Electric is pursuing.

Information on the status of activities of Team Sousei (Creation) is shared on the internal website as needed for all employees to check the current status and to make comments.

[Steps]
Step 1: Search for problems and true causes (Oct.-Dec. 2021)
Step 2: Consider measures (Dec. 2021-Feb. 2022)
Step 3: Develop "Robust Policies" (developed in March 2022, and released on April 8, 2022)