From the President

The Mitsubishi Electric Group recognizes that the planet needs to be protected for future generations. Limiting our impact on the environment is thus one of our top management priorities. Our aim is to become a "global, leading green company" by solving problems through producing energy-saving products and systems and by building social infrastructure in business activities around the world, in order to contribute to creating an affluent society where both a "sustainable society" and "safe, secure, and comfortable lifestyles" are simultaneously achieved.

Pressing Forward with the "8th Environmental Plan" to Achieve "Environmental Vision 2021"

The Mitsubishi Electric Group created "Environmental Vision 2021" as a long-term vision for its environmental activities, setting 2021 as the target year for completion, coinciding with the 100th anniversary of the company's establishment. In order to achieve this vision, the ongoing 8th Environmental Plan (fiscal 2016 -2018) focuses on four areas of activities: "contributing to the realization of a low-carbon society", "contributing to the creation of a recycling-based society", "ensuring harmony with nature", and "strengthening the environmental management foundation".

Among these areas, we have placed a particular emphasis on "creating a low-carbon society", with targets set for contributing to the reduction of CO2 emitted*1 during product usage, as well as reductions in CO2 emissions during the production of products and systems. The Mitsubishi Electric Group has been contributing to energy savings around the world by providing a range of products that incorporate power semiconductors, which is the key to improving energy-saving performance. Additionally, we offer solutions for overall systems that deliver high energy-saving performance, such as net zero-energy buildings (ZEBs*2) and net zero-energy houses (ZEHs*3). Through these initiatives, we have been working to achieve our targets for contributing to the reduction of CO2 during product usage. Meanwhile, in order to reduce CO2 emissions from production, we have been moving forward with reducing CO2 generated from energy sources, as well as reducing PFCs and other non-CO2 greenhouse gases by taking advantage of the IoT*4 and other start-of-the-art technologies. For example, the new production building at the Nagoya Works has successfully improved productivity and energy efficiency through a unique system that combines factory automation and IT technologies. The effects have been recognized, culminating with the Nagoya Works receiving the Agency for Natural Resources and Energy Director-General's Award in Fiscal 2017 Energy Conservation Grand Prize.

Activities in other areas include enhancing our resources recycling businesses, such as the recycling of plastics from used home electrical appliances and the renewal (modernization) of elevators, which also contributes to energy savings. We are also promoting activities that contribute to living in tune with nature by conducting living creatures studies at business sites. Furthermore, we appropriately abide by and respond to environmental laws and regulations, including RoHS*5 and VOCs*6, which have become increasingly more stringent around the world. Through our efforts to reduce the environmental load at all business sites, the aim is to strengthen our environmental management foundation.

In recognition of these initiatives, in 2016, the Mitsubishi Electric Group received "A list" ratings, the top grade, from CDP—an international non-governmental organization—in three areas: climate change, water and supply chain. We will continue to press forward with our environmental efforts by executing environmental plans that will achieve Environmental Vision 2021.

Looking Forward to 2030 and 2050

In 2015, a set of 17 goals that should be achieved by 2030 were identified by the United Nations as sustainable development goals (SDGs*7), five of which pertain to the environmental activities of the Mitsubishi Electric Group, including "Climate change and mitigating its effects" and "Ensuring access to and sustainable management of water and sanitation".

In fiscal 2019, the Mitsubishi Electric Group will embark on the 9th Environmental Plan (fiscal 2019-2021), a final 3-year plan before reaching the goals set in Environmental Vision 2021. This will include formulating medium- and long-term plans that look forward to 2030 and 2050, and will help us achieve SDGs.

We believe that these initiatives, together with the aim of becoming a "global, leading green company", will lead to achieving our planned growth targets of ¥5 trillion in consolidated sales and 8% or higher operating margins by fiscal 2021.

The Mitsubishi Electric Group is committed to improving the energy efficiency of its products and systems, and reducing the environmental load at business sites from the long-term perspective while taking the circumstances of each country into consideration. We will continue to press forward with efforts to be recognized by society as a "global, leading green company".

M Sakuyama

June 30, 2017
Masaki Sakuyama
President & CEO

*1 Contribution to reducing CO2 emitted: Amount of CO2 deemed to be reduced as a result of switching from older products (those equivalent to products sold in fiscal 2001) to new, more energy-efficient products. Estimated using in-house calculation standards.

*2 ZEB (net Zero-Energy Building): A building where the net consumption of fossil fuel energy is reduced to zero or roughly zero through energy-saving initiatives and the use of renewable energy resources.

*3 ZEH (net Zero-Energy House): A house where the net consumption of fossil fuel energy is reduced to zero or roughly zero, through energy-saving initiatives and the use of renewable energy resources.

*4 IoT (Internet of Things): Mechanism in which various things connected to the Internet control one another.

*5 Restriction of Hazardous Substances: Directive adopted by the European Union to restrict the use of certain hazardous substances in electrical and electronic equipment.

*6 Volatile Organic Compounds: Typically, toluene, xylene, and ethyl acetate.

*7 Sustainable Development Goals to be reached by 2030, included in "Transforming Our World: the 2030 Agenda for Sustainable Development" adopted by the United Nations in the General Assembly held in September 2015.

Sustainable Development Goals (SDGs)

SDGs Closely Related to Mitsubishi Electric Group Environmental Activities

Ensuring Access to and Sustainable Management of Water and Sanitation

Mitsubishi Electric Group's water treatment and purification technologies provide vital products and systems that help to ensure the supply of safe water.

Major businesses/initiatives: Plant systems for water supply and sewage, ozone generators

Securing Sustainable Energy and Expanding Its Use

As well as developing technologies, products and systems that contribute to saving and generating energy and creating a smart society, the Mitsubishi Electric Group is working to disseminate them around the world.

Major businesses/initiatives: Power generation, transmission, and distribution business, photovoltaic power generation

Securing a Sustainable Production and Consumption Format

Our initiatives include reducing resource inputs during manufacturing and recycling used products. We are also promoting green procurement and the reduction of final waste disposal.

Major businesses/initiatives: Reuse/recycling businesses, green procurement

Climate Change and Mitigating Its Effects

The emission of greenhouse gases, including CO2, are assessed for the value chain as a whole in order to reduce them to targets we have set.

Major businesses/initiatives: Energy-saving products, reducing greenhouse gas emissions

Protecting and Restoring Ecosystems, and Preventing the Loss of Biodiversity

In addition to developing and providing observation satellites that report the status of oceans and woodlands, we are carrying out activities at business sites that enable us to live with the surrounding environment in harmony.

Major businesses/initiatives: Satellites, living creatures studies, "Satoyama" Woodland Preservation Project