Resource Circulation and Waste Reduction
To advance resource circulation, the IHI Group is promoting a range of initiatives that combine waste reduction, proper waste treatment, and the promotion of resource recovery with efforts such as design for recycling incorporating circular economy principles, the development of materials and manufacturing methods, the review of management indicators, and human resource development.
Cooperation with Third Parties to Reduce Waste Emissions
The IHI Group works with expert consultants to operate a waste management system utilizing electronic manifests to reduce waste emissions at its plants and offices and ensure compliance with laws and regulations. By monitoring the amounts of each type of waste generated at each site, and the main sources of waste, the Group is striving to reduce the overall quantity of waste generated. Furthermore, the Group ensures compliance with laws and regulations and reduces waste emissions by checking intermediate disposal contracts and contract periods.
Innovation and R&D Contributing to Resource Circulation and Waste Reduction
The IHI Group is engaged in technological development and innovation aimed at facilitating the transition to a circular economy and reducing waste.
The Group considers it a key challenge to explore technological solutions that enable the effective use of resources and the reduction of waste generation throughout the entire lifecycle of its products and services. In fiscal 2025, through the activities of its dedicated subcommittee, the Group identified key technological directions aligned with the characteristics of its businesses, including aircraft engines, industrial machinery, and social infrastructure. These directions include extending product life, promoting reuse and remanufacturing, and advancing lifecycle management. While specific technologies and initiatives are still under consideration, the Group intends to further develop technologies and business activities that support the realization of a circular economy, thereby contributing to the development of a sustainable circular society.
Visualizing Resource Circulation (Review of Management Indicators)
The IHI Group is reviewing the definition of its recycling rate as one of the management indicators used to quantitatively assess efforts to reduce waste generation and the volume of waste sent to final landfill disposal. While the Group has traditionally conducted surveys and interviews with intermediate and final waste treatment operators, it is currently reviewing its approach, including methods for collecting the necessary data, in response to revisions to waste-related regulations that took effect in fiscal 2025.
Human Resource Development (Training and Workshops)
The IHI Group conducts educational activities to promote understanding of the circular economy throughout the organization.
In fiscal 2025, the Group produced an educational video explaining the relationship between circular economy principles and the IHI Group’s Lifecycle Business (LCB) and distributed it to relevant departments. In addition, interactive workshops were conducted for employees selected from business divisions, using case studies drawn from their respective businesses. Through these workshops, participants assessed the current situation, identified key issues, reviewed resource circulation processes, and explored opportunities for new business development, thereby deepening their understanding of circular economy concepts.
Water Resources Management
Optimization of Water Sources
The IHI Group primarily uses public and industrial water as water resources. In regions with abundant underground and river water resources, the Group uses these resources in combination with public water carefully to reduce its risk of obstruction to stable water withdrawal. Therefore, each office and plant considers the water quality and quantity necessary for its use and chooses the best resource to withdrawal water.
Reduction of Water Consumption
In order to reduce water consumption, the IHI Group reuses tertiary treated water instead of city water for sprinklers on its grounds to the extent possible, and reuses wastewater in painting and cleaning processes. At the head office building, gray water made from recycled kitchen wastewater and other gray water is used to flush the toilets.
In addition, as a Group-wide environmental activity goal, the Group has set a 1% reduction in water withdrawal year on year at each site. To support this effort, monthly water withdrawal volumes at each environmental management center are tracked and visualized through graphs, enabling year-on-year comparisons. This visualization of monthly water withdrawal trends also leads to the early detection of any leakage.
Pollution Prevention
Water Quality (Wastewater Management)
The IHI Group establishes and manages voluntary wastewater standards that are stricter than public standards set in laws and regulations, such as the Water Pollution Prevention Act, and ordinances adopted by local governments. By doing so, the Group seeks to ensure full compliance with wastewater standards and to preserve the water quality of public bodies including oceans and rivers into which the Group discharges water.
To confirm the status of achievement of standard values, the Group carries out regular voluntary water sampling, analysis, and monitoring and daily patrol inspections of discharge outlets. For maintenance of wastewater treatment facilities, the Group performs systematic updates of aging equipment, measuring devices, and buried pipes.
Soil (Leak Prevention and Storage Management)
To prevent soil contamination, the IHI Group identified specific areas that use hazardous substances designated by the Soil Contamination Countermeasures Act and strives to prevent leaks of chemical substances by establishing operational procedures and performing periodic patrols.
In areas where hazardous substances are used, the Group has implemented preventive measures against potential leaks through facility investments, such as by establishing liquid containment embankments with durable, highly chemical resistant interior coatings. At hazardous waste storage sites in particular, waste is, in principle, stored indoors and the Group strives to prevent leaks caused by bad weather conditions.
Chemical Substances Management
Policy and Scope
The IHI Group is committed to using chemical substances in a manner of minimizing their impact on human health and the environment throughout the life cycle of IHI products from manufacture to disposal. To achieve this, the Group classifies chemical substances into two categories, those used at offices and plants and those contained in products, and it performs management tailored to the characteristics of each category.
Chemical Substances Management at Offices and Plants
The IHI Group complies with laws and regulations relating to chemical substances management and gains accurate grasp and understanding of the properties and hazard information of chemical substances used to ensure worker safety and prevent environmental pollution.
To ensure worker safety at offices and plants, the Group obtains and maintains Safety Data Sheets (SDS) for chemical substances. Based on the hazard information and properties of each chemical substance, the Group identifies optimal handling, and manages chemical substances appropriately. In addition, the Group prepared an operational management manual that covers the series of processes from purchasing and receiving to use, storage, and disposal to prevent soil, water, and atmospheric pollution caused by leaks of chemical substances (environmental accidents). The Group also conducts emergency response training and makes periodic capital investment to update aging facilities.
Monitoring of Pollutant Releases and Transfers (PRTR)
In accordance with the Pollutant Release and Transfer Register (PRTR) system, the IHI Group appropriately identifies the amounts of designated chemical substances into the air, public waters, and soil, as well as the amounts transferred to sewer systems and waste treatment facilities. The Group reports these data to the national government via the relevant prefectural authorities. In addition, the Group identifies and properly complies with laws and regulations relating to chemical substances including the Air Pollution Control Act and local ordinances where its offices and plants are located.
Control of Atmospheric Emissions (Including VOCs)
The IHI Group participates in follow-ups to voluntary efforts to reduce volatile organic compound (VOC) emissions as a member company of the Japan Society of Industrial Machinery Manufacturers. The Group is also working to reduce atmospheric emissions by monitoring the amounts handled and released of substances subject to voluntary control other than those covered by the PRTR Act and by investigating and implementing measures such as switching to low-VOC paints and improving paint management methods during painting processes.
Management of Chemical Substances Contained in Products
The IHI Group established the IHI Group’s Basic Policy on Chemicals Information Management and manages chemical substances contained in products.
To minimize the impact of Group products and services on human health and the environment, the Group obtains information about the chemical substances contained in materials, parts, etc. throughout the supply chain and confirms that any prohibited chemicals are not contained or that any regulated substances contained are below the acceptable levels.
Proper Disposal of Hazardous Waste (Containing PCBs)
The IHI Group is working to properly dispose of waste containing polychlorinated biphenyls (PCBs) by organizing a dedicated team led by the head office, and is proceeding with measures to ensure that 100% of such waste is properly disposed of by the statutory deadline of March 31, 2027. As of March 31, 2026, the Group has successfully disposed of 100% of electrical equipment containing high-concentration PCBs and 99.9% of electrical equipment containing low-concentration PCBs. For electrical ballasts, the processing rate was 100%.
