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Diversity, Equity, and Inclusion

Approach

Based on the IHI Group ESG Management (announced in November 2021), Group Management Policies 2023, and Group Human Talent Strategy 2023, the IHI Group is striving to establish a corporate culture that emphasizes diversity, equity, and inclusion (DE&I) initiatives with respect for human rights as part of its corporate responsibility.
To solve social issues through the business activities, it is necessary to incorporate perspectives from the Group’s diverse human resources into its practices to realize the issues and needs of consumers that make up society so that we can achieve a society offering safety, security, and prosperity. Additionally, the backgrounds, experiences, and individuality present in this diverse group bring fresh perspectives to the Group, and they will become the driving source for promoting change.
The IHI Group considers the differences in each person’s position, living environment, gender, and so on to create fair opportunities, and to cultivate an environment in which each person’s strengths are utilized, with the power of diversity that results from this leading to value creation.

Governance

Human Rights—Governance

Strategy

Risks

In order for IHI’s human resources from diverse backgrounds to maximize their full potential, it is necessary to recognize everyone’s values and individuality.
If DE&I is not ingrained into the corporate culture it may result in a lack of diversity within the organization, making it difficult to coordinate and collaborate with various stakeholders and inhibiting the creation of new ideas and innovation. Moreover, when management and workplace environments are based on homogeneity, it becomes difficult for each employee to perform to the best of his or her abilities, which may lead to a decline in their engagement.

Opportunities

In order to realize the kind of sustainable society the IHI Group is aiming for, it is necessary for the Group to incorporate DE&I into its corporate culture and foster a flexible organizational culture when it comes to accepting diverse views.
Raising awareness and educating each employee to put DE&I into practice and creating a workplace environment where diverse human resources can thrive helps to foster an organizational culture that, in the midst of dramatic environmental change, is able to transform the corporate structure to one not bound by conventional practices and frameworks. Furthermore, a well-functioning network both within and outside the Group helps corporate activity proceed smoothly.

Risk Management

The IHI Group has its Group Human Rights Committee monitor the progress of various measures (such as responses to instances of harassment, e-learning participation and response results, and so on), measuring the degree of understanding and integration of DE&I through the implementation of its Diversity Index.
In addition, the Group provides information for empowering women, employing people with disabilities, and male employees taking childcare leave, topics of particular social interest that governments and organizations are working to establish specific indicators for, setting them as a diversity goal for the Group that it monitors the performance of.

Metrics and Targets

DE&I Targets and Results

(Scope: IHI)

KPI Target Target Year FY2020 FY2021 FY2022 FY2023
Female recruitment rate University graduates: About 20% 2026 16.5% 20.2% 14.3% 19.8%
Ratio of female Managers 7% 2026 3.4% 3.9% 4.7% 5.3%
15% 2030
Ratio of female Officers Increasing the proportion of female Officers to exceed 30% by 2030 (Support for the Keidanren’s 30% by 2030 Challenge) 2030 18% 18% 18% 18%
Ratio of employees with disabilities 2.6% 2024 2.35% 2.39% 2.55% 2.62%
Promote male employees to take paternity leave or paid time off for childcare Promote all applicable male employees to take childcare leave of at least a week, and promote 2 or more weeks 2025 26.5% 70.8% 90.1% 124.9%

DE&I Training Participants

(Unit: People)

Training Topics FY2020 FY2021 FY2022 FY2023 Targets
DE&I Officer unconscious bias training 23 IHI Officers
Diversity index 5,461 Management and key positions at IHI and Group companies within Japan
Monthly seminars for promoting DE&I 600 IHI and Japanese Group company employees
DE&I e-learning 25,991 IHI and consolidated subsidiaries (including overseas)
Female empowerment and work-life balance support External dispatch training 3 16 13 14 IHI and Japanese Group company employees
Coexistence Support Seminar 343 388 281 483 IHI and Japanese Group company employees
Active participation by diverse human resources LGBTQ+ Ally conference 35 99 IHI and Japanese Group company employees
Training and exchange of employees from abroad 12 IHI and Japanese Group company employees

Recruitment Results

New Graduate and Mid-career Recruitment Results

(Unit: People, Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
New graduate recruitment

Total

194 109 98 126

Male (engineers)

133 75 72 81

Female (engineers)

6 14 9 16

Male (administrative)

29 12 12 20

Female (administrative)

26 8 5 9

Ratio of female employees

16.5% 20.2% 14.3% 19.8%
Mid-career recruitment

Total

55 85 98* 165

Male

44 66 72 141

Female

11 19 26 24

Ratio of female employees

20.0% 22.4% 26.5% 14.5%
Total number of employees 249 194 196 291

Number of mid-career recruitment for FY2022 has been revised.

Board Diversity

Number of Officers*

(Unit: People, Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Total 17 17 17 17

Male Officers

14 14 14 14

Female Officers (outside)

3 3 3 3
(3) (3) (3) (3)

As of July 1 each year, members of the Board of Directors and Audit & Supervisory Board.

Ratio of Female Officers*

(Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Ratio of female Officers 18% 18% 18% 18%

As of July 1 each year, members of the Board of Directors and Audit & Supervisory Board.

Management Diversity

Number of Managers (by position, gender)*1

(Unit: People, Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Total*2 2,715 2,763 2,643 2,707

Male Managers

2,623 2,656 2,519 2,563

General Managers

1,067 1,065 1,004 1,026

Section Managers

1,556 1,591 1,515 1,537

Female Managers

92 107 124 144

General Managers

23 31 38 39

Section Managers

69 76 86 105
  1. As of April 1 each year.
  2. Due to a change in the calculation method, the total numbers of managers for FY2020 and FY2021 have been revised.

Ratio of Female Managers*1

(Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Ratio of male Managers 96.6% 96.1% 95.3% 94.7%

Ratio of General Managers*2

97.9% 97.2% 96.4% 96.3%

Ratio of Section Managers*2

95.8% 95.4% 94.6% 93.6%
Ratio of female Managers 3.4% 3.9% 4.7% 5.3%

Ratio of General Managers*2

2.1% 2.8% 3.6% 3.7%

Ratio of Section Managers*2

4.2% 4.6% 5.4% 6.4%
  1. As of April 1 each year.
  2. Due to a change in the calculation method, the ratios of female general managers and female section managers for FY2020–FY2022 have been revised.

Number of Managers That Joined IHI Mid-career*

(Unit: People, Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Number of Managers 234 230 253 307

As of April 1 each year.

Number of Managers Among Employees from Abroad*

(Unit: People, Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Number of Managers 13 14 16 22

Of which, General Managers

3 3 3 7

Of which, Section Managers

15

As of April 1 each year.

Local Managers at Overseas Regional Head Office Sites*

(Unit: People, Scope: China, Singapore, and the United States)

Item FY2020 FY2021 FY2022 FY2023
Total 22 25 26 30

IHI (Shanghai) Management Co. Ltd. (China)

5 6 6 6

IHI ASIA PACIFIC PTE.LTD. (Singapore)

6 5 11 11

IHI Americas Inc. (United States)

11 14 9 13

As of April 1 each year.

Ratio of Employees

Ratio of Employees with Disabilities*

(Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Ratio of Employees 2.35% 2.39% 2.55% 2.62%

Target

2.3% 2.3% 2.4% 2.6%

As of June 1 each year.

Re-employment Rate of Employees at Retirement Age

(Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Re-employment rate of employees at retirement age 81% 78% 100% 81%

Work-life Balance

Work Hours

(Unit: Hours, Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Monthly average overtime 13.00 18.90 21.60 21.90
Annual work hours 1,797.9 1,948.3 1,984.5 1,972.7

Average Annual Paid Vacation Days Taken

(Unit: Days, Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Average annual paid vacation days taken 18.73 17.37 18.65 19.78

Leave Acquisition Rate

(Unit: People, Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Employees who have used the reduced work hour program 139 158 140 141
Employees who have taken childcare leave 768 935 1,010 995
Employees who have taken parental leave 137 128 198 185

Male

31 60 78 89

Female

106 68 120 96
Percentage of employees who return to work after parental leave 100% 100% 99.6% 98.3%
Employees who have taken nursing care leave 2 6 3 10

Ratio of Male Employees Who Took Paternity Leave or Paid Time Off for Childcare (1 Week or More)*

(Scope: IHI)

Item FY2020 FY2021 FY2022 FY2023
Ratio that took leave 26.5% 70.8% 90.1% 124.9%

Male employees who took applicable leave or paid time off during the respective fiscal year divided by male employees who had a child born during the respective fiscal year.

Initiatives

Fostering an Organizational Culture that Promotes DE&I

The IHI Group rolled out its DE&I training program, “Diversity Index,” during fiscal 2023 and conducted management skills training for executives and managers at IHI and affiliated companies within Japan.
With the aim of promoting understanding and raising awareness among each of our employees, the Group conducted e-learning programs to deepening their knowledge of DE&I and unconscious bias. Additionally, every year the Group designates December as DE&I Promotion month, delivering a message from the President regarding DE&I, providing executive training, and holding training sessions and seminars.

Supporting the Active Participation of Diverse Human Resources

Mid-career Recruitment

In order to achieve the business and corporate structure transformation outlined in Group Human Talent Strategy 2023, the IHI Group regularly—rather than sporadically—takes steps to acquire human resources externally in business and technical fields where the Group finds its knowledge lacking, promoting their active participation and internalizing the knowledge they bring.
In particular the Group has welcomed over 100 hires in the Aero Engine, Space & Defense Business Area, positioned as a developing business, and actively utilize their past experience, technical skills, specializations, and perspectives and values that differ from those of IHI.

Empowering Female Employees

These initiatives include recruiting and developing female hires in key human resource roles to promote to middle and top management while also defining various goals to build a workplace environment where they can actively participate.
As part of its training, the IHI Group sets up career development opportunities for female Managers by dispatching them to training outside of the Group and giving networking support, in addition to supervisor instruction and coaching.
Moreover, concerning the wages men and women make, there is currently a discrepancy due to the difference in personnel make-up between genders. In particular the main reason for this discrepancy is the lower ratio of women in management positions than of men, with fewer women in upper management positions and men working longer hours, including overtime. Taking these factors into account, going forward the Group will continue to promote the creation of a workplace environment where women can thrive.

Empowering Employees from Abroad

The IHI Group promotes the creation of a workplace environment where talented employees can work comfortably and fully realize their potential regardless of nationality.
As part of this within Japan the Group provides pre-hire Japanese language training for employees from abroad, and upon recruitment to the Group, conducts cross-cultural training sessions which include new recruit superiors in addition to social events for the purpose of networking. Employees from abroad also encounter problems unique to foreign nationals. That is why the Group has put in place consultation services for employees from abroad.

Empowering Local Employees Overseas

The IHI Group is working to accelerate global expansion, recruiting and nurturing human resources with roots in the community while considering the unique labor market and practices of each country.
Furthermore, in terms of human resource development, the head office works together to support the implementation of measures established at each site according to current conditions and needs. In the future, it will promote even more active participation by cultivating diverse human resources throughout the Group worldwide.

Empowering Employees with Disabilities

The IHI Group promotes the empowerment of employees with disabilities. As part of its recruitment activities, the Group builds relationships with local employment support organizations for people with disabilities, schools for the deaf, and others, linking them to its recruitment activity efforts.
In 1992, IHI established an organization at its head office specializing in the promotion and success of its employees with disabilities. From 2018, IHI has been providing support tailored uniquely to each employee through specialized support staff, with assistance programs in place, covering work and general aspects of company life. IHI also supports career advancement of each employee by providing an environment conducive to further growth and success. Currently this same organization has been established at each of its sites in Yokohama, Akishima, and Soma.
In order to resolve problems faced by employees with disabilities while helping to implement better measures regarding personnel and support corporate affiliates, IHI has been a member of the Accessibility Consortium of Enterprises (ACE) since fiscal 2013, sharing its recruitment guidelines and examples of employment with other ACE member companies.

Building an Inclusive Workplace Regardless of Sexual Orientation or Gender Identity

The IHI Group is creating a working environment where LGBTQ+ employees can reach their full potential regardless of sexual orientation or gender identity.
The IHI Group actively engages in LGBTQ+ ally*1 activities. The Group believes that expanding the ally mindset of not denying, judging, or spreading creates a workplace environment where everyone can work comfortably. Striving to promote understanding among all of its employees in Japan, the Group established an e-learning program and has made information available through the company intranet. Currently, there are over 3,000 people who have declared themselves allies.
In fiscal 2023 the Group sponsored Tokyo Rainbow Pride 2023, and held an ally conference inviting LGBTQ+ community members and experts.
In addition, IHI has also set up various different personnel programs. With the exception of congratulatory and/or condolence money, special paid leave, and other welfare and work benefits excluded due to legal requirements, same-sex partners are treated no differently than spouses. IHI has also developed a system for managing labor based on business name and self-identified gender. Moreover, IHI has a system in place for accepting consultations regarding SOGI harassment*2 at its harassment consultation desk, as well as a counter where people can anonymously seek consultation regarding LGBTQ+ support.

  1. Ally: Allies refer to people who understand and support LGBTQ+. Anyone can be an ally, even if they do not identify as LGBTQ+.
  2. SOGI Harassment: Harassment related to sexual orientation or gender identity.

Work-life Balance Programs and Consultation Services

The IHI Group has put in place various support programs to help employees balance work while raising children, taking care of sick family, or undergoing treatment for an illness of their own. The Group publishes and distributes handbooks and leaflets to raise awareness and promote use of these support programs, holding seminars by external lecturers, and setting up a consultation desk with outside experts who can provide support based on the circumstances and needs of each individual.
Additionally, the IHI Group encourages men to take childcare leave and has created a handbook for male employees to support balancing work and childcare. Furthermore, in support of employees wishing to have children the Group is distributing leaflets to raise awareness about a program that supports fertility treatment.
Along with annual leave, IHI provides childcare leave that can be used to raise or care for a child in addition to 15 days of family care leave per year for each family member requiring care, establishing a system that exceeds legal requirements.

Empowering People Over 60

The IHI Group promotes the active participation of employees at retirement age in many different ways. The Group has adopted a program for each employee to decide when to retire between the ages of 60 to 65. Many senior employees are also taking advantage of a program that enables promotion of employees over the age of 60 to encourage people to persevere regardless of age. Programs to capitalize on the high level of expertise and skill also create a framework to better encourage employees at retirement age to play a greater role.

Providing Opportunities to Gain Diverse Experience

Transfer

The IHI Group rotates staff between departments, and dispatches employees to external training programs as well as to partner companies, government agencies, and startups. The staff members also participate in joint development projects with other companies, universities, and research institutes, which are just some of the many ways in which the Group provides access to a variety of experiences and differing viewpoints that increase the opportunity to Cross Boundaries, Tackle Issues, and Implementation.
To help facilitate the career development plans defined by each employee, the Group also recruits constantly from its career challenge program (within the Group).

External Training

The IHI Group provides opportunities to gain broader experiences and an open mind through active human resource exchanges outside the organization, such as external training and events as well as participation in various academic societies. In external training, participants deepen their professional skills and learn about the latest industry trends and better practices from other companies.
These external activities allow employees to interact with people from a variety of diverse backgrounds, expanding their possibility of incorporating different perspectives and ideas into the Group.
Not only does participation in academic conferences deepen understanding of cutting-edge research and technology, but also provides an opportunity to expand networking with other experts.

Concurrent In-house Positions and Side Businesses Outside IHI

The IHI Group provides opportunities for employees to think individually and proactively, taking on new challenges to achieve individual self-actualization and growth. The Group encourages everyone to gain broad experience both inside and outside the organization. The Group supports employees to have concurrent positions inside the company and side businesses (second jobs) outside of it in the hope of leveraging diverse viewpoints and ideas in management.
For example, some of these activities have included those related to participation in universities and research institutes or administrative agencies and start-ups for side businesses outside of the company, and for concurrent inhouse positions, developing and sharing applications that contend with internal and external problem-solving as well as coming up with a concept design for Toyosu Brewery.
As of fiscal 2023, employees have registered approximately 110 different side businesses, 50 concurrent positions, and a total of 140 activities.

Formulation of our General Employer Action Plan

IHI has formulated a General Employer Action Plan covering employee work and childcare, based on the Act on the Promotion of Women's Active Engagement in Professional Life and the Act on Advancement of Measures to Support Raising Next-Generation Children. Regarding the utilization of our female human resources and the development of employment environments that let employees balance work with childcare, our plan incorporates concrete targets and measures for their achievement.

General Employer Action Plan based on the Act on the Promotion of Women's Active Engagement in Professional Life (April 1, 2023 to March 31, 2027)

General Employer Action Plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children (April 1, 2023 to March 31, 2026)

Diversity, Equity, and Inclusion Top