Sustainability Report 2023 PDF

Sustainability Report 2023 Contents / Initiatives that contribute to Sustainability...

Sustainability Report 2023 Contents / Initiatives that contribute to Sustainability About About the Report Management Message Sustainability Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Contents Contents ／ About the Report..................................................................................... 1 Environment............................................................................................................................... 56 Basic Policy............................................................................................................................ 57 Management Message...................................................................................................... 3 Strategy for Climate Change................................................................................ 59 President's Message....................................................................................................... 3 The Structure of Our Environmental Management System..... 66 Message from the Executive Officer Responsible Environmental Considerations for Value Chain Management.... 71 for Sustainability.................................................................................................................. 5 Biodiversity Preservation Activities............................................................... 83 Environmental Data...................................................................................................... 86 Sustainability Highlights.................................................................................................... 7 Our Roadmap for the Three Key Reforms........................................................ 8 Social................................................................................................................................................. 90 Initiatives for the Second Year of the Team Quality........................................................................................................................................ 91 Sousei (Creation) Project............................................................................................... 10 Human Rights................................................................................................................... 100 "Realize a Sustainable Global Environment" Human Capital................................................................................................................ 107 Promote Carbon Neutrality by Sharing Renewable Supply Chain Management (Procurement)...................................... 122 Energy among Sites.......................................................................................................... 11 Philanthropic Activities.......................................................................................... 128 "Realize a Safe, Secure, and Comfortable Society" Three Health Technologies to Monitor the Elderly Social Data........................................................................................................................ 136 while Ensuring Privacy................................................................................................. 12 Governance............................................................................................................................ 141 "Realize a Safe, Secure, and Comfortable Society" Corporate Governance......................................................................................... 142 Comfortable Air and Light that Enriches People's Lives and Creates Well-Being in Interior Spaces.................................................. 13 Compliance....................................................................................................................... 149 Tax Initiatives.................................................................................................................. 154 Initiatives that Contribute to Addressing Social Challenges....... 14 Risk Management........................................................................................................ 155 Sustainability Management........................................................................................ 26 Information Security................................................................................................. 159 Research and Development............................................................................ 162 Initiatives to Create Value...................................................................................... 27 Intellectual Property................................................................................................ 164 Mitsubishi Electric Corporate Strategy..................................................... 28 Communication with Shareholders and Investors.................... 166 Materiality.............................................................................................................................. 30 Governance Data....................................................................................................... 167 Basic policy and Promotional System for Sustainability......... 37 Initiatives / External Evaluation........................................................................ 47 About Mitsubishi Electric Group....................................................................... 169 Communication with Stakeholders............................................................... 49 Profile of the Mitsubishi Electric Group............................................... 170 Mitsubishi Electric’s Business Segments............................................ 172 1  Contents / Initiatives that contribute to Sustainability About About the Report Management Message Sustainability Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group About the Report Details on This Configuration To fulfil accountability to society, in addition to reporting our sustainability management, we This report provides information about sustainability initiatives by the Mitsubishi Electric divide our activities into three different categories in our reports: environment, society, and Group to help realize a sustainable society. It primarily reports on significant activities, events, governance. and changes that occurred in fiscal 2023 (year ending March 31, 2023). In reporting our activities, we tried to go beyond just presenting our principles and the results of activities to References date in order to also refer to future policies and issues. Especially regarding our responses to ◦ ISO26000 incidents that caused stakeholders to worry and be troubled, we endeavored to report the ◦ GRI Standards, Global Reporting Initiative progress of our efforts. ◦ Environmental Reporting Guidelines (2018), Ministry of the Environment We endeavor to fulfill our responsibility of presenting information to the public in order to ◦ Business Owner Environmental Performance Indicator Guideline (2002), Ministry of the broaden our range of communication with stakeholders. We appreciate any and all frank and Environment honest feedback intended to further improve the report. ◦ Environmental Accounting Guidelines (2005), Ministry of the Environment Reporting Medium Period Covered by the Report Non-financial information about the Mitsubishi Electric Group is disclosed in the Sustainability April 1, 2022 – March 31, 2023 section of the website and "Sustainability Report." *Also includes some information on policies, targets, and plans for fiscal 2024 and thereafter. Sustainability Scope of the Report Regarding Future Projections, Plans, and Targets Social Aspects Primarily covers activities of Mitsubishi Electric Corporation This report contains not only statements of past and present facts related to Mitsubishi *The range of data compiled is noted individually. Electric Corporation and its affiliates (Mitsubishi Electric Group), but also future projections, Environmental Primarily covers performance of Mitsubishi Electric Corporation and its affiliates plans, targets, and other forward-looking statements. Such projections, plans, and targets Aspects (Japan: 149, overseas: 101, total: 251) constitute suppositions or judgments based on information available as of the time they are Economic Aspects Primarily covers performance of Mitsubishi Electric Corporation, consolidated subsidiaries, and stated. equity method affiliates Future business activities and conditions may differ from projections, plans, and targets * Detailed information on economic performance is provided in the Investors section of our website. due to changes in various external factors. The Mitsubishi Electric Group conducts business in the form of development, manufacturing, and sales in a broad range of areas, and these activities take place both in Japan and overseas. Therefore, the group's financial standing and Locations where our disclosed information is published business performance may be affected by a variety of factors, including trends in the global economy, social conditions, laws, tax codes, litigation, and other legal procedures. Investors（website） Sustainability（website） We would ask stakeholders to keep these points in mind when reviewing this report. Inquiry Annual Securities Report Sustainability Report Sustainability Planning Div. Integrated Report Mitsubishi Electric Corporation Corporate Governance Report Tokyo Building, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo 100-8310, Japan Phone : 81-3-3218-2111 Inquiries on sustainability 2  Contents / Management Initiatives that contribute to Sustainability About About the Report Message Sustainability Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group President's Message President's Message Our intensification of sustainability Transforming into a "Circular Digital-Engineering Company" management Based on a long-term perspective, the Mitsubishi Electric Group is working to transform itself In fiscal 2023, the Mitsubishi Electric Group into a "Circular Digital-Engineering Company" that delivers new value through co-creation and positioned realizing sustainability as the by integrating knowledge within and outside the Group. The Group has conventionally sold cornerstone of corporate management in our standalone products and services, and has developed its business primarily through management policy. In accordance with this policy, components. When our customers use the products we deliver, operational status and other we have organized four points to be focused, such data is stored, and this data is becoming increasingly important. By consolidating and namely "contribution to a sustainable society analyzing data acquired from our customers in a digital space and by creating strong bonds through our businesses," "responsibility for a within the Group and putting our heads together, we will evolve our components, systems, and sustainable society," "risk management in response Integrated Solutions and create new value. And to more widely return to our customers the for long-term social and environmental changes," benefits of the new value we thus create, we will transform into a "Circular Digital-Engineering and "communication with stakeholders." Company" and thereby contribute to solving today s diverse social challenges. In addition, we have identified five areas as Some of these businesses are already seeing growth. For example, in the FA system materiality (important challenges) to "provide business, we are now able to make proposals that extend to consulting, such as improving solutions to social challenges through our the efficiency of manufacturing processes and appropriate maintenance methods, by carrying businesses" and to "strengthen our business President & CEO out simulations by analyzing data accumulated in physical space with our Digital Twin, which foundation to enable sustainable growth" in order Kei Uruma is a digital reproduction of the customer's production line. This, we believe that, will not only to push forward sustainable management. enable us to offer new value to our customers, but also greatly expand our business areas. For "providing solutions to social challenges through our businesses," we have identified Fostering of diverse, multifaceted human capital "carbon neutrality," "circular economy," "safety and security," "inclusion," and "well-being" as areas of focus, and we are directing our initiatives toward achieving five targets of SDGs. For the sustainable growth of the Mitsubishi Electric Group, it is essential to foster human Especially, "carbon neutrality" is one area in which we can demonstrate our strengths, and capital to serve as the Group's driving force. Based on this belief, we will expand and we are accelerating initiatives in terms of both "responsibility" and "contribution." For strengthen our investment in people, who are the core of the company's growth. In "responsibility," by which we aim to decarbonize within our domain, we have revised our particular, we respect individual career ownership and value "diverse and versatile human previous target for fiscal 2031 of "reducing greenhouse gas emissions at factories and offices capital" who think independently, act proactively, and continue to take on challenges. In by 50% or more (compared to fiscal 2014)" to "net zero by fiscal 2031". For "contribution," addition, to maximize the value of human capital, human capital strategies must be we aim to create and expand businesses that contribute to all of society realizing carbon integrated with business strategies. For example, to realize our goal of becoming a "Circular neutrality. Digital-Engineering Company," we need core human capital such as "DX system architects" As for other four areas, we aim to realize a cycle in which we not only "contribute" to who can design the overall picture for connecting data and systems based on core realizing a sustainable society through our businesses but also work to solve issues as part of components and field knowledge and, "DX engineers" who can develop and implement our "responsibility" for realizing a sustainable society, and apply the knowledge and good DX-related software and systems. We will hire and train human capital to reach our desired practices obtained in this process to our businesses. state in five to ten years. In terms of gender balance, we feel that issues remain to be addressed, such as the 3  Contents / Management Initiatives that contribute to Sustainability About About the Report Message Sustainability Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group male-female ratio in managerial positions at locations in Japan. To ensure equal The Mitsubishi Electric Group s Purpose and each opportunities for employees, we must eliminate unconscious biases stemming from an employee's individual purpose attitude of "because someone is male/female." We are also creating a more comfortable work environment for employees who are raising children through measures such as We conduct our businesses based on expanding on-site childcare facilities. In April 2022, we started the "President's School" for our Purpose that "We, the Mitsubishi newly appointed Executive Officers and others to foster management professionals. As a Electric Group, will contribute to the preliminary step, it is essential to systematically foster the next generation of management realization of a vibrant and sustainable candidates. We will conduct candidate assessments and promptly compensate for shortages society through continuous technological in terms of overseas experience or work experience in order to promote career development innovation and ceaseless creativity." This with an eye to the future. In addition, we are working to create a system for promoting new is the raison d'etre of the Mitsubishi and competent employees as well as for introducing job-grading to stimulate personnel Electric Group, and the ultimate goal transfers globally. that we always pursue. While the Company's Purpose is Three Key Reforms the aspirations of the organization, it is "My Purpose," which is the aspirations About a year has passed since the start of the Three Key Reforms aimed at restoring trust, of each individual employee, that is namely the "quality assurance reform," "organizational culture reform," and "governance essential to the steady implementation reform," and measures for reforms are progressing as planned. of the organization's aspirations. The For the quality assurance reform, we are rebuilding organizational capabilities to provide entire Group is currently promoting My Purpose activities in order to make the Company's technically correct explanations to customers and reducing workloads on the front lines by Purpose into something personal to each employee. having management themselves engage in dialogue and negotiation with customers, thereby I have set "Build a vibrant company, through maintaining passion, enthusiasm, and establishing a system through which "the front lines do not have cause to carry out improper goal-focused persistence" as My Purpose. Currently, all executives, including myself, are quality control in the first place." sharing their individual Purposes within the company, and we plan to gradually expand this For organizational culture reform, we are working to foster a culture which "Employees initiative from the management level to front-line workers. To make a change, it is necessary feel that they can consult with their superiors," "failures are tolerated," and "problems are to act with oneself as the target of the change, and in this sense, we believe that it is solved together. "We are reforming management itself and changing the behavior of those in particularly important for everyone to clarify his or her My Purpose. By doing so, they can managerial positions, and we are promoting initiatives such as "town hall meetings" in which become aware that the Company's aspirations partially overlap with their own. Furthermore, management and front-line employees discuss issues directly on equal footing as well as employees can feel and realize what the Mitsubishi Electric Group is aiming to achieve while facilitating dialogue using in-house social media. engaging in their own daily work through My Purpose activities. For governance reform, we are building a compliance system that emphasizes prevention. By appropriately including external perspectives, we will realize a governance/internal control structure that inhibits and prohibits misconduct. A third-party evaluation conducted on the effectiveness of the Board of Directors in fiscal 2023 found that its effectiveness had improved. In addition, two new female outside directors were appointed at the 152nd Annual General Kei Uruma Meeting of Shareholders in June 2023. Our Board of Directors, of which independent outside President & CEO directors comprise the majority, will continue to develop our business from various perspectives July 2023 brought together by diversity in terms of gender, nationality, work experience, and age. 4  Contents / Management Initiatives that contribute to Sustainability About About the Report Message Sustainability Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Message from the Executive Officer Responsible for Sustainability Toward Realizing Sustainability Essential KPIs Regarding Materiality (Important Challenges) A year has passed since the Mitsubishi Electric Group The Mitsubishi Electric Group has set materiality (important challenges) as follows: Realize a adopted the management policy: "we will return to sustainable global environment, realize a safe, secure, and comfortable society, respect our fundamental principle of 'addressing social for all people, strengthen corporate governance and compliance on a sustainable basis, challenges through our businesses' and position the and create a sustainability-oriented corporate culture. realization of sustainability as the cornerstone of our As for the five materiality initiatives that we identified from the two aspects of "providing management. From this approach, we will pursue a solutions to social challenges through our businesses" and "strengthening our business sustained enhancement of our corporate value and foundation to enable sustainable growth," we promote continuous activities for improvement fulfill our responsibility to society, to our customers, by implementing the PDCA cycle for mid- to long- term goals. In 2023, we identified 17 shareholders and employees, and to all other essential targets and KPI. To achieve them, the Sustainability Committee promotes measures stakeholders." We have made various efforts to with checking the progress in order to steadily incorporate them into management. implement sustainability into our management. Executive Officer Satoshi Takeda Promoting the Realization of Sustainability Sustainability Vision First, the Sustainability Committee and other committees discussed what Mitsubishi Electric Creating Harmony with People and the Planet should do now that sustainability is positioned as the cornerstone of our management, and Our goal for 2050 clarified four actions to promote the realization of sustainability. The first action is to contribute to the "realization of a vibrant and sustainable society" by A Sustainable Society Full of Prosperity solving social and environmental issues through our businesses. The second is to conduct Five social challenge areas business responsibly in a manner that does not cause or exacerbate social challenges or Carbon Circular environmental issues. The third is to adapt to changes in society and the environment not neutral economy Safety/Security Inclusion Well-being only in the short and medium terms but also in the long term, in other words, to create business opportunities to develop sustainability, and to predict risks to control or minimize Materiality their impacts on business management. The fourth is to communicate with society, Realize a sustainable Realize a safe, secure, global environment and comfortable society customers, shareholders, employees, and other stakeholders through highly transparent disclosure of information in a way that reflects society's expectations, requests, and opinions Strengthen corporate Create a sustainability- Respect for all people governance and compliance oriented corporate culture to the corporate management. on a sustainable basis 5  Contents / Management Initiatives that contribute to Sustainability About About the Report Message Sustainability Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Our Challenge Areas toward Solving Social Issues Our Approach to Human Capital Among the broad range of our business fields, from home appliances to space electronics, The driving force for realizing sustainability is none other than the people involved in the we have reorganized the social issues we want and are expected to solve with the Mitsubishi Electric Group. Based on this mindset, we are further promoting our human capital Mitsubishi Electric Group's human capital and technologies. Throughout the reorganization, strategy that considers "people = capital that generates value for the future." In order to our Sustainability Vision formulated in 2022, "Creating Harmony with People and the Planet" regain society's trust and thrive in an increasingly competitive global business environment, is always on our minds. It is exactly what we aim to realize by 2050 as "a Sustainable Society the Mitsubishi Electric Group will push forward with all kinds of reforms by mobilizing the Full of Prosperity." Mitsubishi Electric Group believes that such a society makes our diverse, multifaceted strengths of its individuals. stakeholders feel happy, including our business partners, customers, and Mitsubishi Electric Group employees. Toward Reforms Backcasting from our goals for 2050, we identified the five challenge areas as follows: Carbon neutrality, Circular economy, Safety/Security, Inclusion, and Well-being. It has thus been a year since Mitsubishi Electric announced that it would position the realization of sustainability as the cornerstone of its management. In response to the Carbon neutrality: A decarbonized society with fewer CO₂ emissions from our company and improper quality control practices in fiscal 2023, Mitsubishi Electric is taking steps to change. society itself, and with mitigations against climate change. This reform will not be accomplished instantly. In particular, the activities we are undertaking Circular economy: A society that effectively uses and sustainably circulates resources. to reform our culture will not be a one-time event, and we must patiently resolve each issue Safety/Security: A resilient society that can respond to various environmental changes and individually over the next five to ten years to ensure that a better corporate culture takes risks. root. Inclusion: A society in which all kinds of people are respected and anyone can live freely, In these initiatives, I personally value "taking ownership and working voluntarily." This is fairly, and in a lively manner. what I consider to be my Purpose. I commit myself to achieving sustainability by aligning my Well-being: Comfortable lives and physical and mental well-being for each and every own individual Purpose with the ideal conditions that the Mitsubishi Electric Group envisions. individual. We aim to achieve these challenges to realize a Sustainable Society Full of Prosperity. Realize Sustainability Especially, carbon neutrality is one area in which we can demonstrate our strengths by accelerating initiatives in terms of both "responsibility" and "contribution." For "responsibility," Social value Economic value by which we aim to decarbonize within our domain, we have revised our target for fiscal 2031 from "reducing greenhouse gas emissions at factories and offices by 50% or more Impact on the environment Balance social value and society and economic value Earning power and (compared to fiscal 2014)" to "net zero by fiscal 2031. For "contribution," we aim to create other financial value ・Create positive impact (contributions) and expand businesses that contribute to all of society realizing carbon neutrality. ・Reduce negative impact (responsibility) Create economic value from social value Create social value from economic value Satoshi Takeda Executive Officer 6  Sustainability Highlights Our Roadmap for the Three Key Reforms............. 8 Initiatives for the Second Year of the Team Sousei (Creation) Project................... 10 Realize a Sustainable Global Environment Promote Carbon Neutrality by Sharing Renewable Energy among Sites........................... 11 Realize a Safe, Secure, and Comfortable Society Three Health Technologies to Monitor the Elderly while Ensuring Privacy....................... 12 Realize a Safe, Secure, and Comfortable Society Comfortable Air and Light that Enriches People's Lives and Creates Well-Being in Interior Spaces........................................................ 13  Contents / Sustainability Initiatives that contribute to Sustainability About About the Report Management Message Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Sustainability highlights Our Roadmap for the Three Key Reforms We give serious weight to the findings and recommendations of the Investigative Committee and the Governance Review Committee with regard Overall Concept of Recurrence Prevention Measures to the improper quality control practices that have come to light, and the Based on the surface causes, true causes, and proposed countermeasures brought to attention by the entire Group is working to prevent recurrence. In October 2021, we Investigation Committee and the Governance Review Committee to date, we will steadily promote formulated Three Key Reforms (quality assurance, organizational culture, and reforms in the three areas of quality assurance, organizational culture, and governance at the governance), including measures to prevent recurrence, and the entire company-wide levelto prevent recurrence. company is working to implement fundamental reform initiatives while deepening and developing the Three Key Reforms to restore confidence in the company. Governance Review Impact of the reforms Investigative Committee Committee recommendations in three key areas recommendations Regarding the progress of the Three Key Reforms and other efforts, we established the "Monitoring Committee for the Three Key Reforms" under the Board of Directors in December 2022 and started monitoring on the (1) Governance improvements (a) Quality assurance supervisory side with the participation of outside experts. reforams On our website, we disclose the details of the progress of measures to Strengthen the Board of Directors' functions. (1) Ensure proper company-wide New engineering processes understanding of quality prevent recurrence as of the end of FY2023. will create systems & (to prevent justification). Strengthen the three statutory environments that eliminate We plan to continue to announce the progress on our website. committees' functions. incentives for improper Restoring trust: Our roadmap for reform conduct. (2) Check and review processes, such as Enhance the Executive Officers' meeting. procedural manuals, from a third-party perspective. Actively use the Business Area Owner and chief officer structure to strengthen governance. Quality Assurance (3) Strengthen the Quality Control Division. (b) Organizational Reforms Strengthen corporate divisions' culture reforms company-wide functions. (4) Support and strengthen middle New engineering processes will management. Open, two-way communication create systems and environments (2) Internal control system will foster a culture conducive that eliminate incentives for improvements to solving problems (5) Address disconnects between the head improper conduct systematically. office and field personnel. Introduce a compliance program tied to risk levels. (6) Foster company-wide affiliations rather than the current emphasis on plant-/worksite-level affiliations. Raise awareness of the corporate philosophy and quality reforms. (7) Create a highly independent Business Organizational Governance Use automation & Digital Transformation (c) Governance reforms Unit System. to visualize quality-control processes. Culture Reforms Reforms New company-wide Enhance mechanisms for early detection of governance & internal control Open, two-way communication New company-wide governance systems informed by external (8) Demonstrate management's resolve to anomalies (personnel rotation, strengthen quality compliance (from the will foster a culture conducive to and internal control systems whistleblower system, etc). perspectives will eliminate incentives for improper perceptive of governance for senior solving problems systematically informed by external perspectives conduct. management). will eliminate incentives for Create environments that help employees improper conduct concentrate (streamline work processes). 8  Contents / Sustainability Initiatives that contribute to Sustainability About About the Report Management Message Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Sustainability highlights Our Roadmap for the Three Key Reforms Enhancement and Development of the Three Key Reforms Prevent the recurrence of Quality assurance reforms improper quality control - Revising engineering processes - practices and restore trust ・Creation of a manufacturing management environment (optimization of resources, control span and health diagnosis for plants, etc.) ・New design review method, designer training program ・Data-driven quality control , development of rules, and Progress monitoring Generally, we are making progress as planned with respect to system Organizational culture reforms building and implementation of activities for each item. - Facilitating two-way communication - We have also confirmed progress in spreading quality compliance ・Coaching for executives, town meetings, and awareness through the employee awareness surveys, and we will continue communication via internal social media to work to get quality compliance activities to take root and spread. ・Rotation, 1-on-1 meetings, psychological safety, "On-Site In addition, since December 2021, the Quality Governance Capabilities and Cultural Reform" workshops Subcommittee (chaired by the General Manager of the Corporate Legal & ・Behavioral changes initiated by management that lead to organizational solutions Compliance Division) has been monitoring and checking the effectiveness of each initiative carried out under the quality assurance reform on a regular basis with the advice of outside experts. Governance reforms - Building a compliance system focused on preventive measures - Discussions among employees ・Enhancement of the management monitoring function of the Board of Directors (making the majority outside directors) Progress ・Establishment of an internal control system that emphasizes predictive and preventive measures, and enhancement of With regard to strengthening communication skills, we are actively the company-wide risk control function ・Monitoring of the implementation of the Three Key Reforms providing a variety of training programs for employees and increasing Internal social media community by the Board of Directors opportunities for executives to deliver messages directly to employees. While we will continue our efforts to review the control span and authorities of middle managers, we have already established a framework for the personnel system as planned, including implementation of the rotation system among offices and positions as Progress well as the establishment of an internal recruitment system and a career Regarding the monitoring of the Board reforms and company-wide reforms, we have completed the construction of the framework, and the consulting office, and we will continue to make efforts to get these implementation phase will begin in FY2024. activities to take root. We have already started a variety of studies to improve the internal control system, and in FY2024, we will formulate the details of compliance strategies. 9  Contents / Sustainability Initiatives that contribute to Sustainability About About the Report Management Message Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Sustainability highlights Initiatives for the second year of the Team Sousei (Creation) project As part of a company-wide effort to reform the organizational culture, Everything Starts with Communication Transformation we did a full-scale launch of the company-wide reform project Team Sousei (Creation) in October 2021. Here is the latest initiatives on the project, now in its second year. Townhall Meeting In 2022, the Mitsubishi Electric Group took another step forward in its reform that began the previous year. Provided a total of 314 opportunities for We proposed the Robust Policies formulated in two-way dialogue between April 2022 and launched reform projects in each business group, branch office, and Works, and we are top management and employees to strengthening the promotion system to ensure initiatives deepen understanding are carried out to reform the negative corporate culture We have held dialogue-style discussions based on (from minus to zero) and to build a new corporate our belief that to promote cultural reform, it is culture (from zero to an even better tomorrow). important to have two-way conversations rather than Among these initiatives, we planned measures top-down, one-way communication. In FY2023, the concerned with "communication transformation" in president and general managers visited business sites FY2023. We have begun a variety of initiatives in diverse and held this style discussions 314 times in total. locations to foster the culture that we envision. The top management's intention to change Mitsubishi Electric is starting to resonate with employees, who see how seriously the company is Addressing everyone by "san" attempting to change and the direction that the company is going to change. 〜 To spread an open atmosphere throughout Town hall meeting between President Uruma and employees (Power Device Works) Direct dialogue between management and employees the company in which all employees can build a relationship of trust regardless of rank 〜 Grassroots Activities As the first initiative of the Team Sousei project, we launched an initiative to address everyone by the Opportunities for dialogue are expanding among nation-wide business sites neutral honorific "san," though previously supervisors Having also launched the reform project in business were addressed as "XX Kacho" (section chief) and so groups and divisions, each workplace is conducting a forth. variety of activities. This practice has spread at an accelerated pace We provide opportunities to facilitate dialogue after the president encouraged all employees to across ranks and divisions, including workshops make this a basic behavior together with sharing where all participants think together about how each greetings and showing appreciation. This initiative has workplace will tackle the organizational culture led to significant changes throughout the company, reform. These programs are designed to enable such as lowering barriers to and making the internal participants to talk as frankly as possible, including by environment more facilitating for conversations as providing opportunities for directors and employees well as making the tone in emails more casual. to chat and consult with each other as well as for employees of the same rank to share information in Meeting for section chiefs to share information Cross-rank/-division workshop order to help solve problems at their workplaces. (High Frequency & Optical Device Works) 10  Contents / Sustainability Initiatives that contribute to Sustainability About About the Report Management Message Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Sustainability highlights Realize a Sustainable Global Environment Promote Carbon Neutrality by Sharing In recent years, there has been growing demand for companies to use renewable energy. Mitsubishi Electric's new solutions support companies in Renewable Energy among Sites pursuing carbon neutrality. Multi-Region EMS*1 to Promote Effective Use of Renewable Energy Multi-region EMS structure Monitoring and control In April 2023, we began offering a Multi-region EMS that makes corporate efforts towards Multi-region EMS carbon neutrality more efficient and transparent. We will support to achieve company s Renewable energy generation Environmental value Generation and demand Renewable and demand forecasts management results monitoring energy-derived power decarbonization targets at a locational level by dispatching distributed renewable energy from other sites through a self-service wheeling*2 and by using battery storage control system. Distributed energy Power supply and Power plan preparation aggregation strage battery control and submittal *1 Official name: Multi-region digital power supply system VPP *2 A system in which energy from the company's own generation facilities is transmitted to other sites of demand within the company using a power transmission and distribution network owned by electrical utilities. What is self-service wheeling, which enables power to be distributed to other sites? Factory A Factory B Self-service wheeling means to consume electricity from the company's own generation facilities in remote locations. If the power generated by solar panels and other renewable energy resources can be distributed to other sites through self-service Storage batteries Renewable energy resources Storage batteries Renewable energy resources wheeling, in addition to reducing the cost of electricity, the company will also be able to Transmission of distributed power to priority sites using self-service wheeling demonstrate to society a high level of environmental Using a system that controls and operates distributed energy resources make it possible to instantly transfer such energy where it is needed. Decarbonization targets can be met on a site-by-site basis by awareness. While the number of companies and overcoming challenges such as space limitation to install generation facilities and fluctuations in power local governments adopting self-service wheeling is generation due to changes in weather or time of day. increasing, the task to use this system is considered Large capacity batteries control ensures stable operation to be complicated, and multi-region EMS is a Installing large-capacity storage batteries allows for the intermittency of renewable energy output to be notable solution to this challenge. adjusted on a millisecond basis. This ensures stable power supply system operation, which is a challenge for large-scale renewable energy resources generation facilities. Utilizing renewable energy without waste by optimizing operations It is possible to optimize the combination of self-service wheeling, on-site consumption, and battery Voice recharging in 30-minute increments by taking into account highly accurate generation forecasts as well as electricity demand forecasts, storage battery capacities, and the prices of environmental certificates.* Bringing together advanced power technologies to This optimizes utilization of renewable energy value without waste. help companies achieve carbon neutrality * Environmental certificates are certified by an accredited body to demonstrate the environmental value and greenhouse gas emission reduction benefits achieved by renewable energy generation. In Japan, these are currently non-fossil certificates, Multi-region EMS is a cloud service for companies and municipalities to manage J-credits, and green power certificates. decarbonization targets for their own sites. In the development process, we made numerous improvements based on our understanding of user needs. We also promptly All-in-one representation of complicated tasks in system operation responded to power system changes brought about by increasing environmental The demand and supply of electric power is required to be balanced on a 30-minute basis as a rule, and awareness. We then created a solution to share renewable energy value among sites, Seiya Nakano demand forecast and generation and transmission plans must be reported every 30 minutes. Not only optimizing their environmental value management in 30-minute increments. This Energy & Industrial Systems Group does this perform these complicated tasks on behalf of the customer, it also automates the power technology is unique to our company, which operates in all domains related to energy. Energy Systems Center, Digital Energy Business and planning tasks required for self-service wheeling, which streamlines the operations. In addition to helping companies achieve carbon neutrality, we also hope to contribute System Research & to solving climate change issues. Development Department Mitsubishi Electric Biz Timeline, seven key words you need to know to solve energy problems (in Japanese text) Application Development Section 1 11  Contents / Sustainability Initiatives that contribute to Sustainability About About the Report Management Message Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Sustainability highlights Realize a safe, secure, and comfortable society Three Health Technologies to Monitor For the era of rapid aging, the Mitsubishi Electric Group has begun to offer services that provide gentle care for the elderly. Here, we present three initiatives that provide peace of the Elderly while Ensuring Privacy mind and reduce the burdens imposed on family members and nursing staff while respecting the privacy of those being monitored. Privacy Space Silhouette Footage Monitoring Monitoring Elderly People in Their Residences and Reducing the Burden of Nursing Staff kizkia-Knight Possible to zoom in and check on a smartphone. The kizkia-Knight makes it possible to monitor toilets, where MelCare Posture cameras cannot be installed for privacy reasons. A built-in infrared when falling In addition to ensuring resident safety and security, staffing and streamlining of sensor captures temperature data, transmits it to the cloud, and operations have been identified as major concerns for nursing facilities. MelCare, converts to a silhouette footage. Monitoring can be implemented which uses sensors and the cloud, is a solution for monitoring residents to prevent while respecting privacy without using a real video footage. In A silhouette footage falls as well as for reducing regular patrolling of the premises by staff members. addition, AI analysis of the silhouette footage detects toilet use and The system reduces the workload for staff members through streamlining of duration as well as conditions such as falls and stooping, and monitoring operations by sending the status of in-room information to each staff notifies staff members via their smartphones. Even if no staff member member's smartphone or other device. This service enables residents to be is nearby, a staff member can quickly be dispatched to the site. observed naturally without the stress of feeling that they are being observed. When an event occurs Nursing care robot AI x Monitoring service kizkia-Knight Installing the infrared sensor is simple and requires no (in Japanese text) installation or relocation work. In the event of a fall or other accident, images taken at the time of the event as well as the current status can be viewed. Image review reduces staff workloads by helping them to determine the necessity and priority of rushing to the scene. A Subscription Service that Uses Home Appliances to Provide Monitoring Services to Family Members who Live Far Away MeAMOR For family members who live far away may be concerned about elderly people living alone. M its u bi sh i E l e c tr i c prov ides MeAMO R, * a subscription service that enables customers to MelCare's three major monitoring functions monitor the conditions of elderly people living An alert is issued if a resident falls in their room. Staff can quickly alone and others in similar situations through the Fall monitoring rush to rooms where something is wrong. “Video confirmation” and use of home appliances, the indoor temperature, “calling out for peace of mind” can also be done from smartphones. and others. If the air conditioner, the refrigerator, or the water heater is not used for an extended Anomalies in room temperature, humidity, and CO2 concentration are Fresh air monitoring detected, leading to rapid discovery of inappropriate air conditioning period or another unusual trend is detected, the operations and heat stroke risk. * AMOR is a word coined by our company to encourage communication system notifies the connected application to alert among family members inspired by the Latin word for love (affection). family members living far away. Use of home Based on sensor information, the system tracks sleep patterns, appliances makes it possible to monitor the living Life rhythm monitoring getting up from bed, and bathroom usage frequency to prevent accidents and detection delays by visualizing residents' conditions. conditions of elderly family members without Elderly monitoring service MeAMOR (in Japanese text) invading their privacy. Mitsubishi Electric's MelCare for safe, reliable monitoring support (in Japanese text) 12  Contents / Sustainability Initiatives that contribute to Sustainability About About the Report Management Message Highlights addressing social challenges Management Environment Social Governance Mitsubishi Electric Group Sustainability highlights Realize a Safe, Secure, and Comfortable Society Comfortable Air and Light that Enriches People's Now that we have experienced the COVID-19 pandemic, the need for interior spaces is becoming more diverse. With the growing demand for Lives and Creates Well-Being in Interior Spaces spaces that are not only safe but also comfortable, Mitsubishi Electric is committed to contributing to people's well-being through our products. ※1 The world's first Caring for People's Emotional State and Controlling Air Quality ※2 The latest Jet Towel with Health Air® Pursue Comfort with "emoco tech" Function to Clean Even the Space In February 2023, Kirigamine's Z-Series room air conditioners Hand dryers, which have sometimes been discouraged in the wake of the were equipped with the world's first emoco tech technology, COVID-19 pandemic, do not spray water droplets directly and are safe to which controls air quality by measuring your emotional state. The use with regular cleaning. Jet Towel Slim Type (Enhanced Hygiene Model) air conditioning system uses information on windchill temperature strengthens the hygienic aspect even more than conventional models. The measured by the conventional infrared sensor move eye air is circulated and cleaned 24 hours a day by a circulating fan equipped mirA.I.+ and information on a person's pulse measured by the with the Health Air® technology. It is also effective in deodorizing Kirigamine Year 2023 Model Z Series newly developed vital signs sensor emoco eye to assess even troublesome odors. In addition, the body is made of antiviral resin for *1 In air conditioning equipment (as of February 17, 2023, emotions and controlling the air quality accordingly. The key to improved hygiene, and the two-stage nozzle structure prevents water according to internal research); a technology that controls our air conditioning system is the emoco eye , a revolutionary temperature and airflow by measuring the pulse of a person in sensor developed in collaboration with three companies that droplets from splashing onto the user. a room in a non-contact manner in order to estimate the measures a person's p