Mitsubishi Electric

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Capital Goods

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CONTACT

Tokyo Building, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo 100-8310, Japan

T: +81-3-3218-9024

Email: eqd.eco@pj.MitsubishiElectric.co.jp

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STOCK EXCHANGE

LISTING

  • CDP ‘A List’ 2020 – Climate & Water 
  • Forbes World’s Best Employers 2020 (#94)
  • Forbes Global 2000 2020 (#294)
  • Forbes Top 100 Digital Companies 2019 (#41)

EMPLOYEES

146,518

Manager Corporate Environmental Sustainability

Hirofumi Nakano, Senior General Manager of Mitsubishi Electric’s Corporate Environmental Sustainability Group

AWARDS

CONTENT SOURCE

FURTHER READING

Report created by Hamilton Anderson

Mitsubishi Electric

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Mitsubishi Electric is an international technology company aimed at a mission to make changes for the better and create a better tomorrow. 

The company is split among 12 focuses: building systems, factory automation, public systems, energy, transportation, automotive equipment, space systems, information & communication, semiconductors, air conditioning, home, and IT solutions. 

This wide range of products and services paired with Mitsubishi Electric’s consistent technological innovation and global presence, make them a key player in the domestic and international business world.

Company Sustainability Activity

Mitsubishi Electric places sustainability at the forefront of all of its business endeavors. Their Group-wide purpose will always pay attention to corporate social responsibility, corporate ethics, and compliance as they strive to progress toward creating a more sustainable society in Japan and everywhere else.

Mitsubishi Electric has a total of 203 companies worldwide (95 in Japan and 108 outside of Japan), which allows them to offer their innovative products and services to a diverse number of societies. 

Their approach to a sustainable society comes from focusing on 4 things: life, industry, infrastructure, and mobility. This thorough approach to sustainable development is tracked using a series of key performance indicators (KPIs) that are not only in alignment with the 4 fields of focus, but all 17 of the UN sustainable development goals (SDGs), the Science Based Targets initiative, and approval from the task force on climate-related financial disclosures (TCFD).

In fiscal year 2008 (FY2008), Mitsubishi Electric formulated “Environmental Vision 2021” and as they enter the final year of the vision, they have recognized that their initiatives have steadily produced results that contribute to realizing a low-carbon, recycling-based society capable of living in harmony with nature.

In June 2019, the Group announced their next long-term environmental management vision, “Environmental Sustainability Vision 2050”. The 2050 vision is united under a declaration of protection over air, land, and water with the company’s technology and ideas. This renewed commitment to sustainability ensures that Mitsubishi Electric will remain committed to climate, environmental, and societal issues for years to come.

Highlights

  • Provide products and services that contribute to SDGs 7, 11, and 13.
  • Reduce CO2 emissions from product usage by 35%.
  • Reduce CO2 emissions from production to less than 1.47 million tons by FY2021.
  • Investigate the cause of serious malfunctions and implement recurrence prevention measures Group-wide.
  • Maintain 100% implementation of risk assessments for target home products.
  • Provide anti-harassment employee education events with a 100% attendance rate.
  • Increase the ratio of women among new engineering recruits to 20% by FY2022.
  • Mitsubishi Electric has been designated by the Japan Aerospace Exploration Agency (JAXA) as a manufacturer of the Greenhouse Gases and Water Cycle Observation Satellite (GOSAT-GW).

Targets

Environmental

  • Reduce CO2 emissions from production to less than 1.47 million tons by FY2021.
  • Reduce CO2 emissions from product usage by more than 35% by FY2021 compared to FY2001.
  • Reduce resource inputs by more than 40% by FY2021 compared to FY2001.
  • Improve final disposal rate of waste materials.
    • Maintain a rate of less than 0.1% domestically.
    • Halve the rate to less than 0.5% overseas.
  • Reduce water usage per unit of sales by 1% annually compared to FY2011 by FY2021.
  • Increase the number of participants in outdoor classrooms and satoyama preservation activities to more than 51,000 by FY2021.
  • Boost level of biodiversity protection activities at Mitsubishi Electric offices in line with the Aichi Targets.
  • Provide products and services that contribute to SDGs 7 and 13. 
  • Maintain CO2 reduction during product usage by more than 70 million tons compared to FY2001 standards. 

Safety, Security, and Comfort

  • Ensure safety through risk assessment by maintaining a 100% rate of risk assessment implementation.
  • Develop key persons capable of incorporating customer needs into quality to 100% by FY2021.
  • Make Group-wide efforts to investigate the cause of serious malfunctions and implement countermeasures.
  • Maintain a 100% rate of participation in e-learning programs.
  • Enhance education content on ME quality principles.
  • Provide products and services that contribute to SDG 11.

Human Rights

  • Promote ongoing human rights training programs.
  • Enhance the whistleblowing system for human rights violations.
  • Provide lectures on human rights awareness and harassment prevention in training programs for new employees and those for newly appointed managers.
  • Continue to promote the Work Style Reforms to cultivate awareness among employees to realize a workplace that helps them work proactively, achieve a better work-life balance, and maintain their mental and physical health.
  • Promote diversity by employing and utilizing diverse human resources.
  • Employ disabled persons beyond the statutory employment rate of 2.2%.
  • Increase the ratio of women among new engineering recruits to 20% by FY2022.
  • Dispatch more than 180 employees per year to overseas On-the-Job Training (OJT) and language programs.
  • Promote safety management and health enhancement activities.
  • Promote safety and health education, and maintain the rate of lost work time injuries below the industrial average of 0.45.
  • Improve lifestyle habits and realize a health-conscious company by implementing Stage III of Mitsubishi Electric’s Group Health Plan 21 (MHP21):
    • 73% or more of employees maintaining proper body weight
    • 39% or more of employees exercise regularly
    • 20% or less of employees smoke
    • 25% or more of employees who perform dental care at least 3 times a day
    • 85% or more of employees who get enough rest through proper sleep habits

Corporate Governance and Compliance

  • Hold dialogues with stakeholders through stakeholder general meetings, corporate strategy meetings, business strategy meetings, and IR activities in Japan and overseas.
  • Provide proper information to directors at the proper time, conduct a review of the board of directors, and analyze & evaluate the review.
  • Provide training to directors and executive officers as appropriate.
  • Conduct an internal audit to ensure Mitsubishi Electric Group’s businesses are appropriate and report the results.
  • Provide compliance education that uses diverse methods.
  • Maintain a 100% attendance in e-learning compliance programs.
  • Establish and implement anti-monopoly prevention measures.
  • Establish and implement bribery prevention measures.
  • Obtain 100% of CSR procurement consent forms from suppliers who did not submit in the prior year.
  • Ascertain material human rights violation risks.

Progress

Environmental

  • Reduced CO2 emissions from production from 1.29 million tons in FY2019 to 1.24 million tons in FY2020. 
  • Reduced CO2 emissions from product usage by 37% in FY2020.
  • Reduced resource inputs by 42% in FY2020.
  • Improved final disposal rate of waste materials:
    • Domestically, Mitsubishi Electric maintained a rate of less than 0.1%.
    • Overseas, Mitsubishi Electric’s affiliates reduced their rate from 0.5% to 0.4%.
  • Reduced water usage per unit of sales by 2% from FY2019 to FY2020; From 23% to 21%.
  • Increased number of participants in outdoor classrooms and satoyama preservation activities from 43,738 to 47,808 in FY2020.
  • In FY2020, Mitsubishi Electric established new biodiversity guidelines to quantitatively evaluate activities.
  • In FY2020, Mitsubishi Electric provided products and services that contribute to SDGs 7 and 13 by:
    • Reusing plastic in home appliances via Mitsubishi Electric’s “Closed-loop Recycling” Initiative.
    • Promoting energy-saving, highly efficient buildings via Mitsubishi Electric’s technology.
    • Developing and applying technologies that contribute to reducing the environmental burden. Storage batteries and control systems allow energy to be recycled and saved contributing to a low-carbon society.
  • Maintained CO2 reduction during product usage by 76 million tons in FY2020.

Safety, Security, and Comfort

  • Maintained a 100% rate of risk assessment implementation.
  • In FY2020, Mitsubishi Electric reached 100% development of key persons capable of incorporating customer needs into quality, which is a 3% increase from FY2019.
  • Implemented Group-wide efforts to investigate the cause of serious malfunctions and implement countermeasures.
  • Maintained a 100% rate of participation in e-learning programs.
  • Enhanced education content on Mitsubishi Electric’s quality principles by adding ethics education for engineers.
  • Provided products and services that contribute to SDG 11 by:
    • Helping to create a sustainable water-recycling society through monitoring & control systems, water treatment systems, ozone technology, and resilient infrastructure.
    • Using AI to promote urban safety, security, and comfort.
    • Solving traffic issues via autonomous driving technologies.
    • Preparing for natural disasters with technologies that “watch out” for people’s safety.

Human Rights

  • Promoted ongoing human rights training programs by offering e-learning programs in Japanese and English.
  • Mitsubishi Electric was unable to establish a whistleblowing system for human rights violations.
  • Provides lectures on human rights awareness and harassment prevention in training programs to 927 new employees, 584 newly appointed managers, and all existing employees.
  • Continued to promote the Work Style Reforms in FY2020.
  • Promoted diversity by employing and utilizing diverse human resources.
  • 2.32% of 3 Mitsubishi Electric’s companies (Mitsubishi Electric Corporation, Mitsubishi Electric Life Service Corporation, Melco Tender Mates Corporation) collectively employed disabled persons beyond the statutory employment rate.
  • At the end of FY2020, Mitsubishi Electric’s ratio of women among new engineering recruits reached 13%, 7% away from achieving the target in FY2022.
  • In FY2020, Mitsubishi Electric dispatched a total of 195 employees to training programs: 100 to overseas OJTprograms and 95 to language programs.
  • Promoted safety management and health enhancement activities.
  • Offered safety and health education to all employees, and obtained a rate of 0.07 for lost-work-time injuries (below the industrial average of 0.45).
  • In FY2020, Mitsubishi Electric’s employees only met 1 of the 5 targets of  Stage III of MHP21:
    • 69% of employees maintained proper body weight. Target 73% or more.
    • 26.1% of employees exercised regularly. Target 39% or more.
    • 22.8% of employees smoked. Target 20% or less.
    • 26.7% of employees performed dental care at least 3 times a day. Target 25% or more.
    • 66.4% of employees got enough rest through proper sleep habits. Target 85% or more.

Corporate Governance and Compliance

    • The planned dialogue on CSR issues was postponed due to COVID-19.
    • Held a general meeting of shareholders, corporate strategy meetings, financial meetings, individual meetings with institutional investors and analysts, company information sessions for individual investors, and invited key persons to “Environmental Sustainability Vision 2050“.
    • Successfully provided training to directors and executive officers.
    • Conducted an internal audit of 126 sites and reported the results.
    • Provided compliance education 180 times to 6,531 participants in FY2020.
    • Maintained a 100% attendance in e-learning compliance programs.
    • Implemented anti-monopoly prevention measures to a total of 15,374 participants.
    • Implemented bribery prevention measures to a total of 24,365 participants.
    • Obtained a total of 2,200 responses from 4,000 suppliers, and confirmed consent from 90% of them in FY2020, 10% away from reaching the target.
    • In FY2020, surveys were conducted at 390 subcontract factories, and 24 were found to undergo material human rights improvements.

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 7

  • Mitsubishi Electric works to develop technologies and systems that will help produce smart, energy-conserving, and energy-creating technologies, products, and services that are widely available.

SDG 9

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

SDG 11

  • Mitsubishi Electric provides safety, security, and comfort to people’s lives through their work in the disaster-prevention and infrastructure-development fields.

SDG 12

  • Mitsubishi Electric aims to reduce the volume of resources used in manufacturing and to recycle spent products. 
  • ME pushes to reduce the volume of final waste disposed and to be environmentally friendly in their resource procurements.

SDG 13

  • Mitsubishi Electric works to identify the total valuation of their CO2 and other greenhouse gas emissions in order to set their reduction goals.

Secondary SDGs: 1, 2, 3, 4, 5, 6, 8, 10, 14, 15, 16, 17

SDG 1 

  • Mitsubishi Electric works to end poverty by creating employment through global expansion of their business, and through initiatives including the establishment of social infrastructure and philanthropic activities.

SDG 2

  • Mitsubishi Electric contributes 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.

SDG 3

  • Mitsubishi Electric improves health and well-being through transportation safety support systems that help to cut down traffic accidents and cutting-edge air conditioning systems that contribute to the advancement of treatment.

SDG 4

  • Mitsubishi Electric provides technological assistance to developing nations and supports remote education through their communication and IT technologies.
  • Fosters the next generation and beyond through activities that contribute to society.

SDG 5

  • Mitsubishi Electric supports the social empowerment of women by providing ICT services and supplying home appliances. 
  • Mitsubishi Electric promotes the further advancement of women within the Group.

SDG 6

  • The Mitsubishi Electric Group has technology for treating and purifying water, and supplies technologies and systems that deliver safe water.

SDG 8

  • Through Mitsubishi Electric’s FA and AI technologies, they are working to contribute to increased productivity and the provision of desirable working environments throughout the Group.

SDG 10 

  • In cooperation with their stakeholders, Mitsubishi Electric contributes to realizing discrimination-free societies that respect human rights.

SDG 14

  • Mitsubishi Electric develops and supplies observation satellites that deliver information about ocean conditions.
  • ME promotes initiatives at their offices aimed at harmonizing their activities with the local environment.

SDG 15

  • Mitsubishi Electric develops and supplies observation satellites that deliver information about forest conditions.
  • ME promotes initiatives at their offices aimed at harmonizing their activities with the local environment.

SDG 16

  • Based on laws and international norms, Mitsubishi Electric works to improve their supply chains and areas including human rights, labor, the environment, and the prevention of corruption on a global scale.

SDG 17

  • Mitsubishi Electric contributed 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.

Evaluation

Mitsubishi Electric is making several contributions to sustainable development via their innovative technology and business practices.

Mitsubishi Electric’s Group-wide efforts have earned them a spot on CDP’s A-List for Water and Climate since 2016, and have earned them numerous awards within Japan and abroad. 

Mitsubishi Electric’s use of KPIs to report their progress toward sustainable development allows them to report with complete transparency, where anyone could easily see if they have achieved their goals or not. 

However, despite Mitsubishi Electric’s ambitious targets and consistent commitment to sustainability, they lack key index listings, such as the Dow Jones Sustainability Indices, that could allow them to reach a higher standard of sustainable achievement.

For these reasons, Mitsubishi Electric has earned a “C” rating in this index.

Analyst Outlook: Positive

Mitsubishi Electric has consistently formulated and achieved its sustainability goals. They align their reporting with key sustainability guidelines, including and not limited to the Global Reporting Initiative (GRI), and strive to contribute to all 17 of the SDGs instead of simply focusing on a few

Mitsubishi Electric’s ambition to achieve sustainable development is global and their strategies to achieve their vision are thorough. With their specific targets, guidelines, and continued innovation they should continue to succeed.

However, in order to receive a higher ranking Mitsubishi Electric must demonstrate that they can obtain this success ‒ and a few more global sustainability certifications and listings.

 

Key Points

  • Mitsubishi Electric’s 2020 Sustainability Report covers Group-wide activity from April 1, 2019 to March 31, 2020.
  • The 2020 report follows the GRI Standards, 2018 Environmental Reporting Guidelines, 2002 Business Owner Environmental Performance Indicator Guidelines, and the 2005 Environmental Accounting Guidelines.
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