Over the Next 100 Years, We Will Boldly Step Forward to Realize a Vibrant and Sustainable Society
I would like to express my deepest sympathy to all people who have contracted COVID-19 as well their families and acquaintances. The world faces unprecedented circumstances as the pandemic spreads, and all business activities of the Mitsubishi Electric Group have been impacted significantly. We are working to transform our businesses while implementing thorough measures to prevent the spread of infection as well as strengthening our ongoing efforts to implement remote work and go paperless.
The Mitsubishi Electric Group celebrated its 100th anniversary on February 1, 2021. I would like to extend my sincere gratitude to all stakeholders who have helped the Group reach this milestone through their support over the years.
In 1921, Mitsubishi Shipbuilding & Engineering Co., Ltd. (the present Mitsubishi Heavy Industries, Ltd.) established a factory for producing electrical equipment, and this served as the precursor to Mitsubishi Electric Corporation. Since that time, we have grown by making social contributions through a wide selection of technologies in many different domains spanning from household goods to outer space. I feel pride in seeing the company's 100th anniversary as its president, but I also feel a strong sense of responsibility to pass the organization on to the next generation while drawing upon its history.
Upon the occasion of its 100th anniversary, Mitsubishi Electric has revised its corporate philosophy system to update the Group's reason for existence as well as the core values and attitude that we ask all employees to embrace and cherish when serving customers and society as a whole. Our new Purpose follows in the spirit of our previous Corporate Mission, and is defined as follows: "We, the Mitsubishi Electric Group, will contribute to the realization of a vibrant and sustainable society through continuous technological innovation and ceaseless creativity." Here, a "vibrant and sustainable society" means a society in which everyone can shine with vitality and be positive without worry. To realize this, we seek to contribute to society under an approach that bears the signature of the Mitsubishi Electric Group: continuing to enhance our technological capabilities and transforming ourselves through technological innovation while producing completely new things with our ceaseless creativity.
To clarify the values and direction that we will take to achieve our Purpose, we have also revised our "Seven Guiding Principles" and "Corporate Statement," renaming them to "Our Values" and "Commitment," respectively. "Our Values" now include "Humanity" as a new element, expressing our desire to place priority on people.
At the Mitsubishi Electric Group, we are resolved to become a group company that responds to the demands of the new era and earns the trust of stakeholders for the next 100 years while operating in line with our new corporate philosophy system. At the same time, we will continue to engage in innovation and take on new challenges to contribute to the realization of a vibrant and sustainable society by solving the issues of an increasingly diverse society.
The Mitsubishi Electric Group has been able to operate for 100 years because it is a company that society finds to be essential. After discussing this topic with other directors and executive officers, rather than merely focusing on sales and profits, we agreed that the company should dedicate itself to contributing to society and solving social issues through its business in order to operate as a key part of society for the next 100 years.
Based on this discussion, we have included the statement "we will contribute to realizing sustainability through all of our activities" as a clear message in our Management Policy. Previously, we aimed to create economic value while working from three viewpoints: growth, soundness, and profitability and efficiency. Going forward, we will practice balanced corporate management that produces social value with an eye to sustainability, thereby seeking to further enhance our corporate value, which emphasizes the creation of both economic and social value.
For example, we will aim to achieve net-zero greenhouse gas emissions across our entire value chain by 2050 in order to realize a decarbonized society. We will offer similar solutions to social issues throughout all of our business activities.
In addition, we will engage in corporate activities in compliance with the Ten Principles of the UN Global Compact (categorized into four areas: human rights, labor, the environment, and anti-corruption) in accordance with international norms.
In light of our new corporate philosophy system, global social trends, and changes in the management landscape, we have revised our materiality to help realize sustainability. We conducted a survey of customers and Mitsubishi Electric Group employees to understand their desires and expectations, and I also received opinions directly from subject matter experts. We held multiple internal discussions based on this feedback, and we identified five areas of materiality with a focus on solving social issues, placing priority on the environment, people, and quality as well as other aspects of the company’s direction. We divided these five areas of materiality into two groups: "Provide solutions to social challenges through our business" and "Strengthen our business foundation to enable our sustainable growth."
We also revisited our initiatives for the SDGs. While we will work to contribute to the 17 SDGs through all of our corporate activities, we have selected Goals 3, 7, 9, 11, and 13 to address on a priority basis in the pursuit of achieving a decarbonized society and addressing social challenges in the four fields of Life, Industry, Infrastructure, and Mobility. By further promoting initiatives to create value for these goals to which we can contribute significantly as a comprehensive electrical and electronics manufacturer, we will make specific contributions to achieving the SDGs.
The Mitsubishi Electric Group seeks to provide Integrated Solutions to address diversifying social challenges in the four fields of Life, Industry, Infrastructure, and Mobility by uniting all capabilities inside and outside of the Group. To this end, we will enhance the business foundation we have fostered over the past 100 years and further transform our business models.
We will take products that draw on our strengths and services designed with a thorough understanding of devices and combine these with AI and other advanced digital technologies to promote digital transformation (DX) in a way befitting of the Mitsubishi Electric Group as we work to provide integrated solutions that fuse products with experiences. We will offer detailed proposals to help solve diversifying social issues, including consultation and diagnosis services to help support customers as they use our devices and services while examining how people use products from sale to disposal. Our railroad solution using an IoT platform is one example of an initiative carried out by the Mitsubishi Electric Group. This solution boosts the efficiency of train maintenance and helps railroad operators share and utilize data together, thereby realizing a greater level of safety and stability in railroad operations.
With regard to the environment, we successfully attained our goals of achieving a low-carbon, recycling-based society that functions in harmony with nature as part of our Environmental Vision 2021 (target year: fiscal 2021). From this fiscal year onward, we will engage in efforts toward goals for 2050 in accordance with three action guidelines under our new Environmental Sustainability Vision 2050: "Apply diverse technologies in wide-ranging business areas to solve environmental issues," "Take on the challenge of developing business innovations for future generations," and "Publicize and share new value and lifestyles." In the Environmental Sustainability Vision 2050, we initially declared an aim to achieve an 80% cut in greenhouse gas emissions by 2050 compared to our performance in fiscal 2014. However, in order to realize a decarbonized society, we have revised this target to achieve net-zero emissions by 2050 across the value chain by achieving thorough energy-saving solutions in structures and facilities as well as by expanding the scale at which we implement renewable energy sources. In addition, we aim to achieve 100% effective utilization of used plastics in 2035. To this end, we will manage objectives in visualizing waste sources, will survey and share information with recycling companies, and implement other initiatives to realize a circular economy.
We sincerely apologize for the series of work-related issues that have occurred during the past few years. We would also like to apologize for the tremendous inconvenience caused by the leakage of information due to unauthorized access and improper quality management. We sincerely regret all inconvenience that these issues have caused, and the entire Group is committed to tackling the various issues we face, including measures to prevent recurrence. We will review and analyze the factors behind each issue, and we will disclose information on the actions taken in response via news releases and other channels to aid the understanding of all stakeholders.
We are engaging in the Mitsubishi Electric Workplace Reform Program to help prevent the recurrence of such issues, and we are currently expanding this program company-wide. In light of a third-party evaluation conducted by external experts, we adopted the "Five Joint Statements of Labor and Management," which includes an explicit message on preventing harassment. We will also gradually introduce a 360-degree feedback system from April 2021 for people in managerial positions. This system incorporates assessment from managers' colleagues and subordinates in addition to their superiors. As an early participant, I have also received 360-degree feedback. This has helped me to gain new insights into myself, and I have come to appreciate the importance of utilizing valuable feedback from others.
As the social environment undergoes significant changes, we find differences in values among people of different generations and positions. A survey conducted of all our employees in fiscal 2021 revealed that employees do not sufficiently engage with the company. We thus renewed our recognition of the need for promoting two-way communication between management and employees—rather than sending out messages in a one-sided manner—thereby considerately engaging while listening to employees' opinions. Previously, I held a "President's Forum" in which I directly conveyed the company's direction and other details to employees while gathering opinions from a wide range of frontline staff members. In April 2021, I established the "President's Room" to enable direct dialog with employees via email. Through these efforts, I wish to convey my thoughts and feelings as president while working to understand the thoughts and feelings of each and every employee. As a result, I aim to realize a workplace environment in which everyone can work actively with peace of mind.
To help realize sustainability, it is crucial for the Mitsubishi Electric Group to foster a deep-rooted corporate culture in order to engage in mid-to-long-term initiatives to solve social challenges, to maintain its sensibility and adaptability to social changes, and to actively disclose information to stakeholders. A corporate culture cannot be nurtured quickly. We will spend time engaging in thorough efforts to develop a business foundation to support sustainable management.
In April 2021, we established the Sustainability Promotion Division to drive these efforts. The Sustainability Promotion Division was created within the Corporate Communication Group under the direct control of the president, and it will pursue and engage in projects for sustainability while enhancing communication with stakeholders.
Through its 100-year history, the Mitsubishi Electric Group has made a wide range of contributions to society, "From in the Home to Outer Space." This could not have been achieved by the strength of discrete individuals; these goals could only be accomplished when people came together with shared goals. I encourage employees to value their colleagues. By looking at those who are close to you and thinking about what styles of work bring smiles and happiness to others, we enhance our drive to pursue better business.
As the landscape changes dramatically, it is no longer viable to take the approach of simply carrying out the tasks that one is given or simply following the orders that one receives. It is imperative that each and every employee determines what is important independently, and the company must develop an environment that supports employees in their choices.
Fiscal 2022 marks a year of new beginnings toward our next 100 years. The current era has been entrusted to us, and our abilities are being put to the test as to how we interact with our work and society as well as how we will pass the baton on to the next generation. All 150,000 employees of the Mitsubishi Electric Group will bring their capabilities together, and the Group will work to achieve sustainability through all of its activities as part of its Management Policy as it takes steps forward with a renewed mindset toward its next 100 years.
President & CEO
June 29, 2021