The IHI Group implements management that embraces ESG values (ESG management) based on the desire to “Create a world where nature and technology work in unity.”
The Group’s environmental initiatives continue to work to reduce the environmental impact on society at large in an effort to combat climate change, conservation of the global environment, and circular economy.
The Group has established the IHI Group Basic Environmental Policy as a guideline for action in addressing important environmental issues. In particular, the Group regards measures to counteract climate change as an important issue, and is proposing business solutions that help to realize carbon neutrality throughout the value chain, using the amount of GHG emissions during the product/service life cycle as an indicator. In its business activities, the Group complies with environmental laws and regulations, and implements measures to safeguard the global environment and reduce the burden on the environment.
Policy
IHI Group Basic Environmental Policy
The IHI Group establishes action guidelines as follows pursuant to Article 7 (Responsibility for the global environment) of “IHI Group Basic Code of Conduct,” and acts independently and actively.
Article 1. Establishment of Environmental Management System
To ensure continuous improvement of environmental management, the IHI Group establishes an environmental management system, sets specific objectives and executes an action and a performance evaluation.
Article 2. Compliance with Environmental Laws and Regulations
The IHI Group complies with environmental-related laws and regulations/agreements, policies/plans in related industries, and strives to stipulate and apply independent management standards to enhance environmental management.
Article 3. Provision of Environmentally-Friendly Products, etc.
The IHI Group provides society with products, services, and technologies that contribute to the conservation of the global environment and the reduction of environmental burdens.
Article 4. Conservation of Global Environment and Reduction of Environmental Burdens in Business Activities
The IHI Group strives to conserve the global environment and reduce environmental burdens in all of its business activities as follows.
Conservation of the global environment Control of air, water, and soil pollution, and reduction of impact on biodiversity and conservation of biodiversity, in order to achieve a sustainable society
Reduction of environmental burdens Reduction of energy consumption, greenhouse gas emissions, and water consumption, improvement of the efficiency of global resource use, and reduction of waste generation, in order to achieve a decarbonized and resource-recycling society
Article 5. Environmental Education
The IHI Group, through environmental education, raises awareness of all people engaging in operations, including officers, employees, and temporary staff of IHI Group companies, thereby they are able to act having concern with environmental problems on their own.
Article 6. Disclosure of Information
The IHI Group actively participates in social activities, discloses appropriate and timely environmental information, and communicates with stakeholders to harmonize with local communities, conserve regional environments, and reduce environmental burdens.
Governance
The IHI Group promotes environmental activities under the direction of the ESG Management Promotion Committee, with the Environment Committee playing a central role.
The Environment Committee is chaired by the Officer in charge of Group ESG, with Vice Presidents of business areas and General Manager of Planning & Control Department serving as Committee members. The Environmental Manager Liaison Groups have been established as subordinate bodies of the Environment Committee.
For each of the three material issues—climate change, conservation of the global environment, and circular economy—the Environment Committee deliberates and decides on activity strategies, plans, and targets, and provides progress reports. With regard to climate change, which is a particularly important issue, the Committee is drawing up a roadmap for reducing the amount of greenhouse gas emissions generated during product use, and is monitoring the implementation status of capital investment aimed at reducing greenhouse gas emissions from plants and offices, with the goal of realizing carbon neutrality throughout the value chain.
The details of discussions by the Environment Committee are reported to the ESG Management Promotion Committee, and feedback received from management is used in the Environment Committee’s decision-making and disseminated to Group companies both within and outside Japan.
Of the matters discussed by the Environment Committee, those matters related to important management decision-making are deliberated on by the Management Committee, which serves as the decision-making body for management execution, and are then submitted to the Board of Directors.
The Environmental Manager Liaison Groups are mainly engaged in ensuring compliance with environmental legislation at the level of individual plants and offices, and in initiatives aimed at reducing the environmental burden on the local community. The content of these activities is reported to the Environment Committee.
Environmental Management Systems Diagram
Environment Committee
Chairperson
Officer in charge of Group ESG
Members
Environmental managers in business areas, headquarters representative’s offices, and persons at the corporate divisions nominated by the Committee chairperson
Secretariat
Administration Division
Number of meetings convened in FY2024
3
Strategy
The IHI Group sets targets for environmental activities in the short term (up to fiscal 2025), the medium term (up to fiscal 2030), and the long term (up to fiscal 2050). In the short term, the Group drafts its environmental action plans every three years that are integrated with the Group management policies, and strives to engage in comprehensive environmental initiatives. The environmental action plans are formulated based on the IHI Group Basic Environmental Policy, keeping in mind the provision of environmental value demanded by society.
The IHI Group Environmental Action Plan 2023 creates three major pillars for environmental initiatives from fiscal 2023 to fiscal 2025: climate change, conservation of the global environment, and circular economy.
Environmental Initiatives in Each Business Process
Business process
Initiatives
Reference
Research and development
Shortening development periods by the introduction of model-based development
Technological development in the clean energy field
Development of automation and labor-saving technologies
Incorporating environmental themes (climate change countermeasures, proper management of water resources, chemical substances, and waste, and biodiversity conservation) into the IHI Group Code of Conduct for Business Partners
The IHI Group strives to reduce the Group’s environmental impact—a Group-wide risk management initiative—through capital investments to mitigate environmental risks, legal and regulatory compliance, energy saving, waste emission reductions, and more. Each business area and business unit (SBU) drafts action plans at the beginning of the fiscal year in line with each material subject and tracks progress as well as providing support using a PDCA cycle through the Environment Committee. In addition, the Risk Management Conference reports on environmental incidents and violations of relevant laws and regulations.
The Group also evaluates the environmental impact of its products and services to provide superior environmental performance.
Collection and Monitoring of Environmental Information
The IHI Group has designated locations subject to environmental management, including overseas Group companies. Each site has appointed a person in charge to carry out environmental activities, and ensure appropriate management by collecting and monitoring environmental information.
The Group companies encompassed by environmental management engage in a variety of different businesses. These entities include companies with production plants, companies overseeing engineering and on-site construction work, as well as companies focused on only administration. Therefore, each company conducts environmental management based on its own characteristics.
The Group companies are building a system to efficiently collect environmental data by checking the management system for GHG emissions, energy and water use, etc. at each site. Also, regarding GHG emissions in category 11 of Scope 3, the Group performed calculations for all target products of the IHI Group in fiscal 2023, and identified products for which data should be collected and monitored. In fiscal 2024, the Group set to work on drawing up a roadmap for reducing emissions associated with these products.
Energy Management
The IHI Group implements timely and appropriate monitoring of environmental data in order to reduce energy usage. The Group has adopted a system that enables real-time visualization and monitoring of energy use, focusing in particular on those plants that use the most energy. In addition, the Group is constantly implementing energy-saving activities based on energy use status, such as implementing energy-saving diagnostics by third parties at individual plants.
ISO 14001 (Environmental Management System)
The IHI Group has put in place Environmental Management Systems (EMS) at each primary production plant and other environmental management centers to manage environmental efforts with a PDCA cycle. Each of these environmental management centers is acquiring the ISO 14001 certification to ensure each established EMS satisfies international standards for environmental management.
These environmental management centers acquire the ISO 14001 certification through the most suitable review board based on each center’s business activities.
ISO 14001 Internal and External Audits
The IHI Group always strives to enhance the level of environmental management through regular internal and external audits of each environmental management center. These audits evaluate the fitness and effectiveness of each EMS in accordance with ISO 14001 standards.
External audits conducted in fiscal 2024 did not find deficiencies at any of the ISO 14001-certified environmental management centers and affirmed that each EMS complied with all of the ISO 14001 requirements.
Reduction of the Environmental Impact of Products and Services
The IHI Group implements management to reduce the burden on the environment by collating and estimating data relating to the environmental burden for every stage from product and service design, through materials procurement and manufacturing to product use and disposal.
For each stage of the product lifecycle (including research, development, design, procurement, manufacturing, use, after-sales service provision, and disposal), the Group implements assessment to confirm whether an environmentally-friendly approach has been followed (in terms of saving energy, reducing greenhouse gas emissions, conserving resources, and reducing environmental risk).
The IHI Group provides the following products to reduce the environmental impact. In particular, products certified by the Environment Committee as having excellent environmental performance are designated as Environmentally-friendly Products (products marked with asterisks are Environmentally-friendly Products).
Energy-related equipment
Co-generation systems, components for nuclear power plants, facilities for nuclear fuel cycle plants, flue gas treatment system (DeSOx/DeNOx equipment), large-sized cooling towers for geothermal power generation
Disaster prevention/mitigation
Weather observation devices, water gate equipment for rivers and dams
Mobility
Turbochargers for vehicles*, light rail transit (LRT)*, new transit system
Other
Anaerobic wastewater treatment equipment, Toyosu Foresia environmentally-friendly building*
Certification Process of Environmentally-friendly Products
Metrics and Targets
IHI Group Environmental Action Plan 2023 (FY2023–2025)
(Scope: IHI and consolidated subsidiaries)
Action Plans
FY2025 Target
Climate change
A 12,000 t-CO2e reduction in Scope1 and 2 with capital investment
Reduce energy consumption intensity by 3% in FY2025 from that in FY2022
Conservation of the globalenvironment
Zero environmental accidents andenvironmental law violations
Circular economy
Reduce waste emissions by 3% or more in FY2025 from that in FY2022
Review the definition of recycling rate
Determine the amount of final disposal to be at least 90 wt% of total waste
Reduce water withdrawal by 3% or more in FY2025 from that in FY2022
ISO 14001 Certification Status
Target
Item
FY2021
FY2022
FY2023
FY2024
IHI and consolidated subsidiaries
Number of sites
45
45
45
46
Coverage rate (based on amount of energy consumption) (%)
80.8
81.3
81.0
85.1
Coverage rate (based on number of sites) (%)
60.8
60.0
61.6
64.8
IHI and affiliated companies in Japan
Number of sites
37
37
36
36
Coverage rate (based on amount of energy consumption) (%)
─
─
84.4
83.7
Coverage rate (based on number of sites) (%)
61.7
59.7
60.0
60.0
Affiliated companies overseas
Number of sites
8
8
9
10
Coverage rate (based on amount of energy consumption) (%)
─
─
60.5
97.1
Coverage rate (based on number of sites) (%)
57.1
61.5
69.2
90.9
Initiatives
Education/Awareness Building
Environmental Education
The IHI Group conducts environmental education which includes education and awareness building for all employees and everyone in charge of environmental management at each environmental management center.
Environmental education is provided through e-learning with the theme of Sustainability and ESG. Also, the Group has also designated every June as environment month. The IHI Group not only quizzes every employee on environmental topics but also shares information about going carbon neutral through an internal newsletter to heighten their environmental awareness.
In addition, its environmental management centers that have acquired the ISO 14001 certification provide education and training according to these ISO standards, and work to strengthen awareness regarding saving water, waste management, energy saving, etc.
Environmental Education and Training Participants
(Unit: People, Scope: IHI and affiliated companies in Japan)
Eligible Participants
Curriculum
FY2021
FY2022
FY2023
FY2024
Employees
e-learning
4,625
─
─
─
Environmental Quiz
4,220
1,992
2,674
2,554
Environmental Managers
Group Energy Efficiency Training, etc.
─
88
68
114
Circular Economy Training, etc.
─
56
51
86
Reduction of the Environmental Impact
Costs to Reduce the IHI Environmental Impact
(Unit: Millions of yen, Scope: IHI plants and offices)
Item
FY2021
FY2022
FY2023
FY2024
Investments
357
563
1,048
1,377
Expenditures
92
151
365
778
Environment-related Capital Investments (FY2024)
(Unit: Millions of yen, Scope: IHI plants and offices)
Category
Amount Invested
Main Items
Investment Effect
Energy-saving/climate change measures*
872
Installation of individual air-conditioning systems in factories, etc.
Energy consumption and CO2 emission reductions
Environmental risk measures
505
Renewal of aged equipment, etc.
Zero environmental accidents and environmental law violations
Total
1,377
When consolidated subsidiaries are included, the amount is 1,671 million yen.
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