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Environmental Report
Environmental Management

Companies Covered in Our Environmental Data

The scope of IHI's environmental-management activities includes consolidated group companies, including ex-Japan affiliates. We classify IHI Group facilities into two categories—production sites and non-production sites (offices)—to carry out environmental activities that fit each category. We also formulated the medium-term IHI Group Environmental Action Plan 2013 lasting until FY2015, the same timeframe as IHI Group Management Policy 2013. FY2016 data as of July 1, 2016 is shown below.

Implementation of Environmental Action Plan

IHI Group Environmental Action Plan 2013 centered around the following three core strategies:

  • ● Promote Group environmental management
  • ● Reduce environmental burdens through products and services
  • ● Reduce environmental burdens through business activities


At the beginning of the three-year period, we set targets for establishing a foundation that would ensure more environmentally friendly business. Most of these targets were achieved.

To strengthen group environmental management, we expanded the scope of related activities. For affiliated companies, we considered their size and impact on the environment to formulate new rules regarding their operations. As part of our proactive disclosure related to environmental activities, we operated a booth at Eco-Products 2015 to inform visitors about IHI products/services that help protect the environment and our efforts to combat climate change. Also, IHI took part in environmental business surveys conducted by third parties, including the Nikkei Environmental Management Survey, which earned favorable evaluations of IHI by outside organizations.
To reduce the environmental burdens of IHI products and services, an in-house system was deployed to designate environmentally friendly products, resulting in 10 such designations so far.
Efforts to the reduce environmental burdens of IHI activities, energy-saving training and investments in energy-saving equipment resulted in a 10% reduction in environmental burdens per standard physical unit. We also formulated and disseminated internal rules on waste management and compliance with environmental laws, including Japan’s Revised Freon Control Act.

Environmental Action Plan Results (FY2013 to FY2015)

Achievements are graded on a scale of 1 (low) to 4 (high).

Initiatives Grade
1.Strengthen Group environment management (◆Achievements ◇Further challenges)
  1.1 Establish environmentally aware business framework ◆Decided on types, scope and ways to collect data on environmental burdens
◆Gathered information about how ex-Japan affiliates are protecting the environment at their main production sites
◇Need to further improve how this data is used
3
  1.2 Utilize environmental management systems ◆Identified internal procedures that need to be revised to comply with new ISO14001:2015 standard 3
  1.3 Reduce environmental risks ◆There was no environmental accident or legal violation that seriously impacted IHI’s business 3
  1.4 Environmental communication ◆Disclosed information on environmental activities by issuing Integrated Reports and Sustainability Reports
◆Scored over 400 in Nikkei Environmental Management Survey for third straight year
◆Operated booth at Eco-Products exhibition for third straight year
4
  1.5 Provide environmental information on supply chain ◆Asked business partners to respect environment based on IHI Group Basic Procurement Policy
◆Achieved climate disclosure score exceeding 90 and climate performance band of at least B in CDP Climate Change Program for third straight year
◇Need to further improve how environmental information is communicated to customers
3
2. Reduce environmental burdens through IHI products and services (◆Achievements ◇Further challenges)
  2.1 Further quantitative reduction of CO2 emissions ◆Formulated basic rules for quantifying reduction of CO2 emissions
◇Need to further improve how quantities, such as number of products manufactured, should be described
3
  2.2 Expand environmentally friendly products ◆Introduced in-house certification scheme to identify products achieving outstanding environmental performance
◆Designated 10 environmentally friendly products
4
3. Reduce environmental burdens through IHI activities (◆Achievements ◇Challenges to tackle)
  3.1 Promote energy conservation and climate-change mitigation ◆Held energy-saving lectures at 14 production sites of IHI and subsidiaries in Japan to improve energy management
◆Achieved a significant 10% reduction in energy consumption in FY2015 compared to FY2013
◆Formulated company-wide rules for energy management
4
  3.2 Promote creation of material-cycle societies ◆Formulated guidelines for handling wastes
◆Detoxified PCB-containing equipment
3
  3.3 Strengthen sharing of information about chemical substances in products of IHI and business partners ◆Strengthened chemical management of in-house operations and at affiliated companies 3
  3.4 Promote management of chemicals at worksites ◆Formulated company-wide rules for complying with Japan’s Revised Freon Control Act 3
  3.5 Promote green procurement ◆Asked business partners to respect for environment based on IHI Group Basic Procurement Policy 3
  3.6 Measure impact on biodiversity ◆Promoted biodiversity in woods surrounding Headquarters Representative's Office, Aichi District
◇Need to further improve measuring impact of products/services on biodiversity
2

Third-party Evaluation

We disclosed information on IHI business by responding to questionnaires of third parties. Our efforts to operate the IHI group in an environmentally friendly manner led to improved ratings by third parties.

Nikkei Environmental Management Survey

Nikkei Inc. conducts an annual survey of Japan's leading companies to evaluate their environmental initiatives and business efficiency. The scores and rankings of each company are published. Evaluations cover five categories: environmentally friendly business, pollution and biodiversity, resource recycling, products, and global warming. The respondents are scored in each category using a 100-point scale for a maximum of 500 points.
In FY2015, IHI scored better marks in each of the five categories and ranked higher in the manufacturers’ ranking, compared to FY2014. The greatest improvement in any score was received for pollution prevention measures and efforts to maintain biodiversity. Going forward, IHI will continue to participate in this objective evaluation of the company’s environmental activities.

■Survey Results
FY2013: 403 (123rd out of 438 manufacturers)
FY2014: 411 (129th out of 419 manufacturers)
FY2015: 436 (66th out of 413 manufacturers)

CDP

Formerly known as the Carbon Disclosure Project, the CDP is a non-profit organization established by responsible investors worldwide. Every year it discloses the results of questionnaires sent to corporations and local governments, aiming to encourage more action in tackling climate change. The CDP index is relied upon by institutional investors worldwide.
In FY2014, CDP selected IHI as a company to include in the Climate Disclosure Leadership Index (CDLI) and the Climate Performance Leadership Index (CPLI). Various environmental initiatives resulted in our achieving better scores in FY2015.

■Survey Results
FY2013 disclosure: 91 out of 100  Overall performance: B
FY2014 disclosure: 97 out of 100  Overall performance: A
FY2015 disclosure: 99 out of 100  Overall performance: B

Environmental Management Systems

IHI's Environmental Committee, chaired by the officer in charge of environmental activities, formulates group-wide policies for environmental activities and then evaluates and follows up on these activities. The policies and related decisions are shared with principal domestic and ex-Japan affiliates through the Environmental Officers Liaison Group in each operation.
In addition, Environmental Officers Liaison Groups help to facilitate environmental activities at each regional office and worksite.
Also, each Operation formulates its own environmental activity plan every fiscal year. Typical themes include investment in environmental facilities, legal and regulatory compliance, and activities to reduce environmental burdens, such as energy-saving and waste-reduction measures. Each unit follows up on its own progress by implementing the PDCA cycle.

Environmental Management Systems

Acquisition of ISO 14001 Certifications in Japan

■ IHI Regions and Worksites

Regions/Worksites,SBU※1 Acquisition Certifying Body※2
Musashi and Soma December 1999 BVJ
Yokohama July 1998 JQA
Aichi May 2000 NK
Aioi June 2000 JQA
Kure July 2000 JQA
SBU Energy & Plant Operations Gas Process SBU March 1999 LRQA
  • ※1 SBU:Strategic Business Unit
  • ※2 Abbreviation
  •    JQA : Japan Quality Assurance Organization
  •    BV(J) : Bureau Veritas Japan
  •    NK : Nippon Kaiji Kyokai
  •    LRQA : Lloyd's Register Quality Assurance

■ Companies in Japan

Sector Company Acquisition Certification Body※3
Intelligent Information Management Headquarters IHI Inspection & Instrumentation Co., Ltd March 2000 JAPEIC
MEISEI ELECTRIC Co., Ltd. November 2001 JQA
Energy & Plant Operations Diesel United, Ltd. June 2000 JQA
NIIGATA POWER SYSTEMS Co., Ltd. September 2001 LRQA
IHI Enviro Corporation November 2003 JQA
NICO Precision Co., Inc. May 2004 LRQA
Infrastructure Operations IHI Construction Service Co., Ltd. March 2011 MSA
IHI Infrastructure Systems Co., Ltd. June 2012 JQA
Machinery & Logistics Systems Operations IHI Shibaura Machinery Corporation March 2016 LRQA
Rotating Machinery Operations IHI Compressor and Machinery Co., Ltd. September 2000 DNV
Vehicular Turbocharger Operations IHI Turbo Co., Ltd. April 2002 DNV
Aero-Engine & Space Operations IHI Castings Co., Ltd. February 1999 BV
IHI Master Metal Co., Ltd. June 2000 JQA
IHI Aero Manufacturing Co., Ltd. September 2000 DNV
IHI AEROSPACE Co., Ltd. May 2002 BVJ
  • ※3 Certifying bodies
  •    JAPEIC: Japan Power Engineering and Inspection Corporation
  •    JQA : Japan Quality Assurance Organization
  •    LRQA : Lloyd's Register Quality Assurance
  •    MSA : Management System Assessment Center
  •    DNV : Det Norske Veritas AS
  •    BV : Bureau Veritas
  •    BV(J) : Bureau Veritas Japan

■ Ex-Japan Group Companies

Sector Company Acquisition Certification Body
Machinery & Logistics Systems Operations IHI Ionbond AG July 2013 Swiss Association for Quality and Management Systems(SQS)
Rotating Machinery Operations IHI-Sullair Compression Technology (Suzhou) Co., Ltd. June 2014 Lloyd's Register Quality Assurance
Vehicular Turbocharger Operations IHI TURBO(THAILAND)Co., Ltd.
November 2004 BUREAU VERITAS
Wuxi IHI Turbo Co., Ltd. June 2013 XING YUAN CERTIFICATION CENTRE CO,LTD
Changchun FAWER-IHI Turbo Co., Ltd. February 2014 SGS
IHI Charging Systems International GmbH March 2016 TÜV Süd
IHI Charging Systems International S.p.A April 2016 TUV Italia S.r.l.
IHI Charging Systems International Germany GmbH
May 2016 TÜV Süd

 

Issues Identified in Third-party Reviews

In FY2015, IHI Shibaura Machinery Corporation, an IHI affiliated company, acquired ISO14001:2015
certification. All IHI group companies that have acquired ISO14001 certifications were audited and approved by third-party organizations. It was determined that more could be done in the following areas:

  • Themes, objectives and targets
  • Records of environmental activity
  • Operation and management of environmental equipment
  • Emergency preparedness
  • Environmental training
  • Identification and assessment of environmental aspects

Issues Identified in Internal Audits

All IHI group companies that have acquired an ISO14001 certificate conducted internal audits and underwent third-party reviews. Internal audits in FY2014 identified problems related to:

  • Themes, objectives and targets
  • Records of environmental activity
  • Operation and management of environmental equipment
  • Environmental training

Compliance with Environmental Laws and Regulations

In FY2015, IHI considered how to define environmental accidents, environmental law violations and their seriousness to enhance compliance evaluations. The unification of internal terminology strengthened our recognition of environmental accidents at IHI and group companies and evaluate their seriousness and causes. As a result, no serious environmental accident occurred.

Environmental Training and Awareness

Environmental training at IHI comprises level-specific training provided through group-wide educational programs and other training carried out in each location.
Level-specific training helps to familiarize participants with their duties to protect the environment and to reduce impact in accordance with IHI's environmental action policies and targets.
Location-specific environmental training is conducted by internal and external experts to improve the skills of specialized personnel in specific regions, worksites and major group companies. Training also covers ISO14001 skills for internal auditors and ensuring the effectiveness of environment-related activities.
In FY2015, training included education targeted at employees who had spent two years at IHI. We also provided education on energy efficiency and chemical management conducted by outside specialists.

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