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Environmental Management

Approach/Policies

The IHI Group implements management that embraces ESG values based on the desire to create a society where nature and technology work in unity.
Our environmental initiatives continue to work to reduce the environmental impact on society at large in an effort to combat climate change, establish a circular economy, and conserve the global environment.
As set forth in our IHI Group Basic Environmental Policy, our Group will continue to comply with all environmental laws and regulations as well as endeavor to reduce the environmental impact of our plants and offices in local regions while providing products and services that are friendly toward the global environment. In particular we regard measures to counteract climate change as an important issue, and using the amount of CO2 emissions during the product/service life cycle as an indicator, propose conducting business in a way that goes hand in hand with carbon neutrality.

IHI Group Basic Environmental Policy

As part of our responsibilities toward the global environment in accordance with the Basic Code of Conduct for the IHI Group, we have established the following guidelines conduct our activities.

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. Complying 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
The IHI Group provides the society with the products/services that contribute to reduce environmental burdens.
Article 4. Reduction in Environmental Burdens in Business Activities
The IHI Group strives to preserve environment and reduce the environmental burdens in its all business activities.
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 the society, discloses information, and communicates to commune with local communities and preserve regional environment.

Structure

Environment Committee

The IHI Group established the Environment Committee under the ESG Management Promotion Committee, chaired by the Officer in charge of Group ESG (Director, Managing Executive Officer), to lead environmental activities at every plant and office. The Group promotes and expands Environment Committee decisions at all Environmental Manager Liaison Groups in each business area and at the Headquarters Representative’s Office. After constructive deliberation, IHI raises awareness and expands these decisions to all Group companies.
Business areas and Business Units strive 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. The Group drafts action plans at the beginning of the fiscal year in line with each material subject and tracks progress as well as provides support using a PDCA cycle through the Environment Committee.

Environmental Management Systems Diagram

Environment Committee

Chairperson

Officer in charge of Group ESG

Secretariat

Corporate Planning Division,
Administration Division

Members

Business areas, headquarters representative’s offices, and environmental general manager at the corporate divisions nominated by the Committee chairperson

Meetings convened in FY2022

3

Collection of Environmental Information

The IHI Group collects environmental data related to environmental management at all overseas affiliates and consolidated Group companies (subsidiaries).
Each Group company appoints both the environmental general manager and environmental manager to oversee the decision-making and expansion of environmental activities at their organization. As the smallest unit of environmental activities at each company, the environmental management centers appoint a site environmental manager to take charge of particular environmental activities.
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. Each environmental management center verifies the flow of energy, water, and other resources and builds systems to efficiently collect environmental data.

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 2022 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.

ISO 14001 Certification Status

Targets Item FY2022
IHI and all affiliated companies Number of sites 45
Coverage rate (%) 81.3*1
IHI and affiliated companies in Japan Number of sites 37
Coverage rate (%) 59.7*2
Affiliated companies overseas Number of sites 8
Coverage rate (%) 61.5*2
  1. Based on amount of energy consumption.
  2. Based on number of sites.

Education/Awareness Building

Environmental Education

The IHI Group conducts environmental education which includes education programs and training for all employees and everyone in charge of environmental management at each environmental management center.
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.

Environmental Education and Training Participants

(Unit: People, Scope: IHI and affiliated companies in Japan)

Eligible Participants Curriculum FY2021 FY2022
Employees e-learning 4,625 -
Environmental Quiz 4,220 1,992
Environmental Managers Group Energy Efficiency Training* Not conducted 88
Group Waste Training Not conducted 56

Total number of participants for the Group Energy Efficiency Training held twice (some returning students).

Targets and Results

The IHI Group drafts environmental action plans every three years and strives to engage in comprehensive environmental initiatives.
The IHI Group Environmental Action Plan 2019, a three-year environmental plan that began in fiscal 2019, was extended an extra year until fiscal 2022. The IHI Group Environmental Action Plan 2023 creates three major pillars for environmental initiatives from fiscal 2023 to fiscal 2025: measures against climate change, establishment of a circular economy, and conservation of the global environment.

IHI Group Environmental Action Plan 2019 Targets and Results (FY2022)

(Scope: IHI and consolidated subsidiaries)

Action Plans Targets FY2022 Progress and Results
Reduce the environmental impact of products and services Reduce the CO2 emissions of products and services Executed initiatives to reduce the CO2 emissions of products and services.
Reduce the environmental impact in plants, offices, etc. No major violation of environmental laws/regulations and environmental accidents Achieved no major violation of environmental laws/regulations and environmental accidents.
Reduce CO2 emissions intensity by at least 4% by FY2022 compared to FY2018 Reduced CO2 emissions intensity by 28.2% compared to 22.2 t-CO2 emissions per 100 million JPY in FY2018 to 15.9 t-CO2 emissions per 100 million JPY in FY2022.
Reduce energy consumption intensity by at least 4% by FY2022 compared to FY2018 Reduced energy consumption intensity by 56.9% year on year from 39.3 TJ per 10 billion JPY in FY2018 to 17.0 TJ per 10 billion JPY in FY2022.
Generate less waste each year between FY2019 and FY2022 than that generated in FY2018 Reduced waste generation by 20.6% compared to 29,010 tons in FY2018 to 23,044 tons in FY2022.
Reduce the amount of water withdrawal* each year between FY2019 and FY2022 than that used in FY2018 Water withdrawal increased by 3.5% compared to 4,182 thousand m3 in FY2018 to 4,037 thousand m3 in FY2022.
Cultivate human resources to promote environmental management Develop professionals who can carry out environment management Provided energy efficiency and waste management training to members in charge of these duties.

Changed from amount of water consumption to amount of water withdrawal since fiscal 2019.

The IHI Group Environmental Action Plan 2023 (FY2023–2025)

Action Plans Targets
Climate change A 6,000t-CO2 reduction in Scope 1 and 2 with capital investment
Reduce energy consumption intensity by 3% in FY2025 from that in FY2022
Circular economy Reduce waste emissions by 3% or more in FY2025 from that in FY2022
Review the definition of recycling rate and determine the amount of final waste disposal (more than 90wt% of all waste)
Reduce water withdrawal by 3% or more in FY2025 from that in FY2022
Conservation of the global environment Zero environmental accidents and environmental law violations

Costs to Reduce the IHI Environmental Impact

(Unit: Millions of yen, Scope: IHI Corporation)

Item FY2019 FY2020 FY2021 FY2022
Investments 652 334 357 563
Expenditures 78 23 92 151

Environment-related Capital Investments (FY2022)

(Unit: Millions of yen, Scope: IHI plants and offices)

Category Amount Invested*1 Main Items Environmental Impact Mitigation*2 Risk Mitigation*2
Energy-saving/climate change measures 127 Energy-saving/climate change measures Energy consumption and CO2 emission reductions No major violations of environmental laws/regulations or environmental accidents
Environmental risk measures 432 Renewal of aged equipment, etc.
PCB measures 3 Renewal and update of equipment containing PCBs
Total*3 563
  1. Environment-related capital and construction investments for IHI plants and offices made in fiscal 2022.
  2. IHI Corporation will consider additional approaches and examine the effectiveness in the future.
  3. The total for each item is rounded off and differs from the total shown in the breakdown.

Environmental Top