We are confronting various environmental problems, including climate change, depletion of resources, and loss of biodiversity, and we must make choices about creating the future as members of planet Earth. In these circumstances, the Mitsubishi Electric Group is accelerating "Trade-On (mutual benefits)" activities that both solve social challenges on a global scale and grow our business.

In particular, we believe there are business opportunities for the Mitsubishi Electric Group in areas that combine carbon neutrality, the circular economy, and the nature positive initiative. The Global Initiative for Sustainable Technology (GIST) Project, focused on halting loss and restoration of natural capital, was launched in fiscal 2024 aimed at business creation with an eye also on co-creation with other companies and open innovation between industry, government, and academia.

Innovation through Circular Digital-Engineering is essential to support such business creation. We believe that providing new solutions that help to realize sustainability based on utilizing diverse data, including the technical capabilities and knowledge of the Mitsubishi Electric Group across various fields, will contribute to solving various social challenges while also creating profitability.

Along with the challenge of creating new business, strengthening our business foundation is also essential. We are steadily advancing toward carbon neutrality within the group and the circular economy, aiming for carbon neutrality by 2030 and 100% effective utilization of waste plastics by 2035, ahead of achieving full carbon neutrality across the value chain by 2050. Additionally, we are committed to upholding human rights, in line with international standards, and fostering DE&I to support not only our employees, who are the core of our business, but also all stakeholders involved. Furthermore, we ensure compliance with evolving national and international sustainability regulations—such as the Corporate Sustainability Reporting Directive (CSRD),^*1 Corporate Sustainability Due Diligence Directive (CSDDD),^*2 and Ecodesign for Sustainable Products Regulation (ESPR)^*3 —while integrating non-financial information into business management and public reporting. We remain vigilant and responsive to these developments to meet these requirements consistently.

It has been a few months since the divisions that engage in sustainability activities were integrated into a single group, and I feel that the new structure has made it easier for us to comprehensively facilitate activities for business creation and strengthening our business foundation, which are the twin drivers of the Mitsubishi Electric Group’s sustainability management. Under this structure, we will bring together the expertise and knowledge of every employee to tackle the challenge of achieving further sustainability innovation.