Mitsubishi Heavy Industries, Ltd. (MHI) is taking a number of significant steps to strengthen its sustainability management structure in order to respond to calls by the international community and diverse stakeholders for greater environmental, social and governance (ESG) sustainability from the corporate sector. The new moves are capped by the establishment on October 1st of a new “Sustainability Relations Department” within the Business Strategy Office. The new department, headed by Michiko Masunaga, will further develop and reinforce activities heretofore overseen by the Corporate Communication Department, including identification of materiality(1), disclosure of ESG information, and promotion of social contribution activities such as the Company’s aerospace and science classes. In addition, a “Materiality Council” and “Sustainability Committee” have been newly created.
The Materiality Council will establish subcommittees, with appointees in charge and designated segments under their purview, for each of the five materiality categories identified by the Company in 2020: namely, provide energy solutions to enable a carbon neutral world; transform society through AI and digitalization; build a safer and more secure world; promote diversity and increase employee engagement; enhance corporate governance. MHI President and CEO Seiji Izumisawa will serve as the council’s chair, his duties to include monitoring of business activities toward achieving the Company’s materiality targets, and instructing necessary responses to the relevant business segments.
The Sustainability Committee will be tasked with carrying forward MHI Group’s commitment, reflecting the core position it accords to CSR (corporate social responsibility) within its management structure, of “always focusing on social perspectives, responding to the expectations of society, and aiming to make MHI Group a solidly trusted company.” The new committee is being created to augment the activities of the CSR Committee, which has heretofore overseen identification of materiality, ESG measures, and promotion of social contribution activities. The Sustainability Committee will be chaired by CSO Hitoshi Kaguchi, with officers involved in ESG and business operations serving as committee members. Its duties will consist of undertaking decision-making at the management level as a company responsive to ESG issues as increasingly demanded by society, especially conformity with the aims of the Task Force on Climate-related Financial Disclosures (TCFD)(2) and human rights due diligence(3). It will also form a cross-domain task force to consider specific action plans.
MHI Group is strongly committed to addressing the many challenges facing society as its way of contributing to achievement of the SDGs (Sustainable Development Goals). Through its business operations impacting heavily on the global environment and social sustainability, going forward the Company will further enhance its sustainability management capabilities to enable the achievement of a sustainable society while simultaneously raising its corporate value over the long term.
(1) For further information
(2) The TCFD was established at the request of the Financial Stability Board (FSB), whose membership is drawn from central banks, financial authorities and international institutions around the world. It was created as a framework for corporate initiatives to address climate change and to promote information disclosures in the four categories of governance, strategy, risk management, and metrics and targets.
(3) Human rights due diligence, as applied to the business activities of corporate entities, calls for solid understanding of potential human rights violation risks within the company and its business partners, and the prevention and alleviation of such risks, follow-up studies, information disclosures, etc.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, logistics & infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on www.spectra.mhi.com.
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