In FY2025, the Mitsubishi Electric Group officially launched initiatives aimed at creating “Trade-On (mutual benefits)” businesses—those that simultaneously grow its business while enriching society and the environment. One of the initiatives is GIST Project,^*1 which initially focuses on the ocean. GIST develops Direct Ocean Capture (DOC) technology, which removes CO₂ from seawater to contribute to carbon neutrality. We are working to develop businesses with an emphasis on the commercialization of carbon credits, and are also exploring possibilities for CO₂ utilization.

As plastic recycling legislation progresses globally, we are working to apply technologies developed through our home appliance plastics recycling business to plastics across different industries and types. While continuing to evolve in existing businesses, we are steadily advancing "Trade-On (mutual benefits)” initiatives.

In January 2025, global average temperatures reached 1.75°C above pre-industrial levels—a stark milestone that underscores the growing severity of environmental challenges. To help curb this trend, we are intensifying efforts to develop technologies and solutions that mitigate the impacts of climate change and to advance environmentally conscious manufacturing practices. To accelerate and expand these initiatives globally, we are strengthening open innovation across industry, academia, and government, as well as deepening collaboration with our overseas bases.

On the other hand, within the Group, we are steadily implementing measures to achieve carbon neutrality at our own sites by FY2031. As a result, we have earned the highest “A” score from CDP^*2 in both climate change and water security for three consecutive years. Our environmental initiatives have also received external recognition. For example, our two manufacturing sites have been designated as Nationally Certified Sustainably Managed Natural Sites^*3 by Japan’s Ministry of the Environment. Building on this positive evaluation, we will set robust and achievable targets in the next Medium-term Environmental Plan, to be formulated this fiscal year.

In parallel, we remain committed to ensuring compliance with relevant laws and regulations in each region where we operate.

In FY2025, to further embed our materiality issue of “respect for all people,” we revised the Group’s Human Rights Policy and expanded our initiatives to uphold human rights—aligned with international standards—to include manufacturing sites in Japan and overseas associated companies.

In addition to strengthening our response to frameworks such as the Corporate Sustainability Reporting Directive (CSRD),^*4 Ecodesign for Sustainable Products Regulation (ESPR),^*5 and ISSB/SSBJ,^*6 we are working to integrate non-financial information into management processes and enhance external disclosures, thereby further improving corporate transparency and credibility.

Starting in FY2026, we are accelerating efforts in organizational culture reforms. The newly established Corporate Culture Transformation Division, built upon the company-wide reform project “Team Sousei (creation),” serves as a constant driver of change. In addition to existing efforts, we will integrate activities such as My Purpose and Well-being initiatives to foster a self-driven organization —a culture in which each employee thinks and acts proactively.

As we move forward, we remain committed to fulfilling our corporate social responsibilities by striving for harmony across environmental, social, and economic dimensions and embedding the principles of sustainability management—advancing our transformation into an Innovative Company.