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Materiality

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Material Issues of MHI Group

We at the MHI Group consider issues that could give significant impact on the creation of corporate and social values within the group as material issues to be addressed with high priority.
The following have been identified as material issues in a materiality assessment conducted within the MHI Group from both corporate and social perspectives in due consideration of internationally recognized standards and the concerns of our stakeholders.

Material Issues

1. An Optimal Governance Structure Based on Our Corporate Culture
・An optimized organization to continually contribute to society through business
・The assurance of fair operating practices and appropriate labor practices
Objective
・Ensure an organizational culture in which values are shared globally and universally
Strategic KPIs
・Instill globally consistent policies that conform with the international code of conduct (establish universality)
・Enhance transparency (assure universality)
・Enhance disclosure and stakeholder engagement
2. The Use of Global Human Resources
・The attraction and development of human resources with the ability to respond to globalization
・Diversity and equal opportunity, including the empowerment of female employees.
Objective
・Be an organization that embraces diversity (Ensure that barriers to diversity are removed)
Strategic KPIs
・Improvement in diversity-related indicators
3. Response to Mega Trends
・Innovation and quality control to meet global needs
・Enhanced safety and security, including improved information disclosure and transparency
Objective
・Enact strategic measures and business operations that meet the needs of global society
Strategic KPIs
・Improvement in stakeholder evaluations (SRI surveys, customer satisfaction surveys, etc.)

Key Performance Indicators for Material Issues

The MHI Group has set KPIs to enable the specific evaluation of strategic KPI successes and progress toward the achievement of target material issues, and conducts CSR activities accordingly. As the number of initiative indicators increases, we will report on targets, results, and case studies for specific initiatives.

KPI for material Issue 1: Number of whistleblowing cases

We have provided two hotlines where any actual or potential breach of the Code of Conduct, and any other actual or potential breaches of ethics (including bribery and corruption), can be reported: the MHI Whistleblowing Hotline, which is available to all employees, including those of Group companies, and the MHI External Whistleblower Hotline. The Compliance Committee secretariat promptly investigates all reports made to these hotlines, and takes appropriate remedial or preventive action where breaches are identified.

Number of whistleblowing cases, by Type(actual)

Type FY 2014 FY 2015 FY 2016 FY 2017
Labor and the work environment 48 39 42 49
Overall discipline and breaches of manners 49 24 28 17
Transaction-related laws 14 8 11 11
Consultations and opinions 26 11 3 0
Other 48 49 34 36
Total (number of corrections and improvements) 185(110) 131(85) 118(64) 113(59)

KPI for material Issue 2: Number of female managers

In July 2014, MHI set a target to increase the number of the Company's female managers (in positions of section manager and higher) threefold from the current level by 2020, and is promoting the active participation of women in the workplace in conjunction with its pursuit of diversity management.

Number of female managers(actual)

FY 2014 FY 2015 FY 2016 FY 2017
85 102 126 149
  • The values given are the numbers reported by Mitsubishi Heavy Industries, Ltd. and Mitsubishi Hitachi Power Systems, Ltd., in principle.

Processes Defining Material Issues

Material issues are specified and verified in the following cycle from the perspective of stakeholder dialogue.

1. Incorporating Society's Perspective

Taking a stakeholder perspective (Note1) on the core subjects of ISO 26000, we narrowed down to 84 the items of importance to MHI. We then referred to such guidelines as the Global Reporting Initiative (GRI) "Sustainability Reporting Guidelines (Fourth Edition, or G4)" and subsequently grouped together similar items and reduced the list to 49 items in seven departments.

2. Arranging the Issues from the Perspective of MHI's Business

We conducted hearings of our 16 departments, confirming the importance to our business of the 49 issues. We also ascertained that three major changes were consistently raised as issues with the business reorganizations the Company has undergone in recent years: changes in the ideal state of the organization, globalization, and changes in the business model.

3. Confirming Appropriateness

We engaged in dialogue with specialized overseas institutions to confirm that our process of identifying material issues was appropriate.

4. Narrowing Down the Issues in Line with Mega Trends

We referred to priority items from 2015 in Building the Post-2015 Business Engagement Architecture, (Note2) published by the United Nations Global Compact, confirming that our business perspective was not divergent from sustainability mega trends, consolidating the number of items to 25.

Identifying Material Issues

Based on the shortlist of 25 items determined from the perspectives of the Company's business and mega trends, we identified three material issues for the Company.

Obtaining Management Authorization

The CSR Committee (Note3) deliberated and decided on the items.

  • 1We referred to the results of stakeholder questionnaire surveys, SRI surveys, records of meetings with institutional investors, supplier surveys submitted to customers, and stakeholder engagement programs, among others.
  • 2This publication is a call for companies to commit to and promote and support activities to achieve targets set by the United Nations.
  • 3Chaired by the head of the Business Strategy Office (the executive officer in charge of CSR), the CSR Committee includes the GC (general counsel), CFO, CTO, and the officer in charge of Human Resources.

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