Mitsubishi Heavy Industries, Ltd. (MHI) today published the MHI Report 2021. This year’s report focuses on the growing interest in environmental, social, and governance (ESG) factors and modern society’s questioning of the current state of capitalism, presenting MHI Group’s management philosophy and information on specific corporate activities based on these factors.
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The report begins with a dialogue between the MHI Group chairman and Takahiro Nakajima, noted philosopher and professor at the Institute for Advanced Studies on Asia, the University of Tokyo, who share their thoughts on corporate management and governance in the new era. The President’s Message explains MHI Group’s path to value creation, focusing on the significance of MHI Group, and the concept for the Medium-term Business Plan (2021 Business Plan) created by backcasting from the MHI Group Vision for 2030.
For the 2021 Business Plan, the Chief Strategy Officer (CSO) describes the specific strategies for “developing high growth businesses,” one of the plan’s two main themes. The other theme of “regain and strengthen profitability” is examined through a conversation on business portfolio management between the Chief Financial Officer (CFO) and Shoichi Tsumuraya, professor at Hitotsubashi University.
The report also contains an overview of MHI Group’s initiatives for sustainability, including company-wide targets and specific processes for the core issues (materiality) specified in 2020. A special feature presents MHI Group’s basic approach to measures for “energy transition,” one of the priority growth areas in the plan, including decarbonization of existing infrastructure, and establishing ecosystems for hydrogen and carbon dioxide. Further, the report shows the measures being pursued by each business, formulated based on the current situation determined using a SWOT analysis*.
The latter half of the report contains an explanation from the Chief Technology Officer (CTO) on efforts to strengthen core technologies, including specific examples of measures to realize innovation, while the Human Resources (HR) director provides an overview of measures to strengthen the personnel foundation-the source of MHI Group’s competitiveness-including measures that allow employees to work autonomously. The report also includes details of measures to ensure the effectiveness of corporate governance, including a new skill matrix of directors.
MHI Group, by issuing this report with a careful balance of financial and non-financial information, is demonstrating its stance toward protecting the global environment and its business direction to meet the current era, as well as providing clear communication to shareholders, investors, and a broad range of stakeholders.
*A SWOT Analysis is a technique for formulating management strategies by assessing the external and internal environment using a factor analysis with four categories (Strengths, Weaknesses, Opportunities, Threats), and determining how to optimally utilize management resources to adapt to changes in the business environment.
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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