CSR in Business Activities

Key Issues Addressed by IHI

IHI is committed to contributing to the resolutions of problems of society through manufacturingtechnology.
IHI focuses on the following four key issues through its business activities.

Efforts by Each Business Area

Key Issues Addressed by IHI Business Area
Resources,
Energy & Environment
Social Infrastructure and Offshore Facilities Industrial Systems and General-Purpose Machinery Aero Engine,
Space & Defense
New Business
Development

Realize low-carbon societies and reduce environmental burdens
  • Addressing environmental issues
  • Providing environmentally-friendly productsand services

Provide stable energy supplies
  • Providing products and technologies that transform diverse energy sources into electricity

Respond to industrialization, advancement and urbanization in society
  • Enhance urban functions
  • Provide products and technologies that contribute to a safer society
  • Increase industrial productivity
  • Create and enhance manufacturing processes

Develop medical,
food and water solutions
  • Providing products and technologies that help address issues relating to medical care, food and water

Determining Key Social Issues for IHI to Address

Efforts & Priority Activities

Efforts Priority Activities
Realize low-carbon societies and
reduce environmental burdens
Energy conservation ・Increase energy efficiency
・Control and reduce use of natural recources (fuels)
GHG reduction ・Control and reduce greenhouce gas emissions, including CO2
Resource conservation
(excluding fuels)
・Control and reduce consumption of natural resources
Environmental risk reduction ・Expand anti-pollution measures (seven types of pollution)
・Prevent chemicals in products from being released into the atmosphere
Biodiversity protection ・Protect native species
Provide stable energy supplies
Respond to increasing electric power demand
(power generation)
・Improve efficiency of existing energy-generating technology
New energy development
(LNG and renewablw energy)
・New energy development・Resources & energy ・Develop energy-generating technologies
Respond to industrialization,
advancement and
urbanization in society
Develop infrastructure
for urbanization
・Land conservation and create new urban functions
Upgrade existing infrastructure to increase lifespan ・Improve disaster prevention measures, land conservation and accessibility
・Reduce public expenses
Respond to increased movement of people and goods Develop and enhance transportation systems ・Expand mobility
Respond to evolution of industrialization and changes in industrial structure Further deverop industrial and chemical technologies ・Improve manufacturing process, develop new technolpgies and labor-saving innovation, conduct research into advanced technologies
Develop medical , food and water solutions
Medical care ・Expand delivery of medical care
Food supply ・Increase food production efficiency in agricultural and fishery sectors
Water supply ・Increase water-use efficiency
・Develop water resources

Initiatives targeting Sustainable Development Goals (SDGs)

IHI also believes that another of society’s expectations is for the company to contribute to theachievementof Sustainable Development Goals (SDGs) adopted by the United Nations in 2015. With the aim ofcreatingmore sustainable societies, IHI will continue to adhere to its Basic Code of Conduct and contribute to theachievement of the SDGs through its business.

nitiatives targeting Sustainable Development Goals (SDGs)

Businesses helping to solve problems in society

Businesses for low carbon and reduced impacts

GE Passport 20 (Photo courtesy of GE)

GE Passport 20 (Photo courtesy of GE)

Type approval obtained for GE Passport 20 engine for large business jets

IHI received type approval from the US Federal Aviation Administration for the GE Passport 20 turbofanengine it is jointly developing for business jets through an international project. IHI, which has a roughly30% share in the project, is responsible for developing and manufacturing the fan stator, low-pressureturbine and gear-drive system.
Using advanced aerodynamic design technologies, IHI developed a high-efficiency low-pressure turbineblade and an integrated guide vane that functions as both an outlet guide vane and a structural supportfor the fan case. These IHI innovations greatly improve fuel consumption by reducing weight andenhancing efficiency. Going forward, IHI will continue contributing to safe and comfortable airtransportation by supplying eco-friendly engines for civil aviation aircraft.

Coating unit at Cromatipic Competence® Center

Development of innovative chrome finishing technolog

IHI Hauzer Techno Coating B.V. (Hauzer) has developed Cromatipic®, a new plastic chrome-coatingtechnology, and opened the Cromatipic Competence® Center with an automated processing line in Spain. Cromatipic® is a high-quality, environmentally friendly technology that does not use chromium 6, ahazardous material that is used in conventional chrome plating. Chromium 6 is coming under restrictionsin Europe, so the demand for a more eco-minded chrome-coating technology is expected to increase. Hauzer, in addition to its manufacture and sale of equipment, plans to launch contract-based coatingservices .Leveraging the suitability of Cromatipic® for a wide variety of plastic products, we expect to expand thisnew coating business in fields including vehicle interiors/exteriors, home appliances, sanitary goods, décorgoods

Businesses for stable energy supplies

IHI awarded contract for ultra-supercritical boiler for coal-fired power plant in Indonesia

In March 2016, IHI was awarded a contract by Sumitomo Corporation to supply a coal-fired boiler for a315MW ultra-supercritical (USC) coal-fired power project in Indonesia. This will be the fourth boiler of the Lontar power station, which is operated by PT. PLN, an Indonesianstate-owned electricity company. The boiler is expected to start operating in 2019. The USC boileradopted for the project will use extremely high steam pressure and temperature to enable the plant toachieve high efficiency, including reduced fuel consumption and CO2 emissions. A USC boiler designincorporating Japan’s highly efficient coal-firing technologies was downsized to meet local needs formedium-capacity while also reducing the environmental footprint. In countries such as Indonesia that expect to achieve high rates of economic growth over the comingyears,
IHI will continue to supply power generation equipment and systems, primarily consisting of boilersboasting high efficiency and quality as well as low emissions, thereby contributing to stable and efficientelectricity supply in these countries.

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planning delivery site

Orders for high-capacity LNG storage tanks at Soma Port in Fukushima Prefecture

LNG storage tank site in Soma Port,

Orders for high-capacity LNG storage tanks at Soma Port in Fukushima Prefecture

Fukushima Gas Power Co., Ltd. submitted an order to IHI’s joint venture with Shimizu Corporation toperform engineering, procurement and construction for one above-ground LNG storage tank (230,000 klcapacity).
This order for LNG storage tanks at Soma Port in Fukushima Prefecture is a follow-on to anabove-ground LNG storage tank under construction at the Soma LNG Receiving Terminal of JapanPetroleum Exploration Co., Ltd. (JAPEX). We expect to achieve a much shorter construction period thistime using a new method developed by IHI (construction to begin in 2017 and commercial operation in 2020).

Businesses for industrial, advanced and urban societies

Izmit Bay Crossing Bridge (Turkish name: Osman Gazi Bridge)

Opening of Izmit Bay Crossing Bridge, the longest suspension bridge in Turkey

Izmit Bay Crossing Bridge (Turkish name: Osman Gazi Bridge), constructed in Turkey by IHI Infrastructure Systems Co., Ltd., was opened in a ceremony held on June 30, 2016. The bridge is the world’s fourth-longest suspension bridge, and the longest overseas bridge constructed by IHI. The opening of the bridge has reduced the crossing time over the bay from one hour by car or ferry to just six minutes, and has brought dramatic improvement in transportation ficiency.

Successful launch of Epsilon-2

Successful launch of Epsilon-2

Japan Aerospace Exploration Agency’s (JAXA) Epsilon-2was launched on December 20, 2016 and the Explorationof energization and Radiation in Geospace (ERG) wassuccessfully separated.
This success demonstrates our technological capabilitiesrelated to rocket systems, such as the improvedlaunch capabilities and the expanded satelliteloading space.

Businesses for medical, food and water needs

GPS Navicaster

GPS Navicaster

Sustainable food production thanks to fast and precise GPS Navicaster fertilizer spreader

IHI Star Machinery developed, manufactures and sells the GPS Navicaster, which spreads chemicalfertilizers with high accuracy and efficiency.
Delivering fertilizer conventionally requires great skill to drive a tractor across a field at a constant speedand in equidistant patterns to spread fertilizer properly. Moreover, in the interest of sustainable farming, itis important not to overload the environment by using excessive fertilizer. The GPS Navicaster uses GPS data to control fertilizer amounts automatically according to tractorspeed and fertilizer fluidity. Driving is assisted with an onboard guidance system, so virtually anyone canspread fertilizer easily and accurately.
In response to aging agricultural workforces in advanced nations and growing populations in emergingnations, IHI is developing low-cost, stable and eco-friendly ways to produce food by incorporating ICtechnologies in farming equipment for improved produce quality and yields.

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