Dialogue

Contributing to realization of a sustainable society through wide-ranging products and technologies

Takeda:

How to achieve economic growth and simultaneously protect the environment, in order to realize a sustainable society, is becoming an issue all over the world. To begin, I would like to ask you what MHI is doing toward resolving the world's energy and environmental problems.

Omiya:

J-Series gas turbine

Among the myriad issues facing the world today, we believe energy and environmental issues are particularly important. In our business plan released this April, for example, we made expansion of our energy and environmental business operations a core strategy. MHI possesses the complete spectrum of products and technologies relating to energy and the environment: from making the power needed, effectively storing it, competently circulating it, efficiently using it, and aggressively exploring for new resources conducted in harmony with the well-being of our planet and of mankind.
In the area of power generation, which is most basic to the energy issue, today MHI is providing the world with a variety of power plants capable of making efficient use of our finite energy resources while also meeting environmental demands. Our GTCC power plants – GTCC standing for "gas turbine combined cycle" – incorporate the company's "J-Series" gas turbines, which have achieved the world's highest level of power generation efficiency. Our IGCC plants – IGCC being "integrated gasification combined cycle" – deliver 20% higher generation efficiency than conventional coal-fired thermal power plants.

Takeda:

From a long-term perspective, concerns are rife about the eventual depletion of our main energy resources today: fossil fuel.s

Omiya:

At MHI we also offer a range of power generation systems that make no use of fossil fuels but instead use renewable energies: nuclear power plants, for example, and plants that run on wind, geothermal or hydro power. This breadth of available options is another defining trait of our energy and environmental business operations.

Takeda:

Among the options you just mentioned, geothermal power is attracting particular attention today. With geothermal generation, CO₂ emissions are extremely low and power supply can remain stable, since operations aren't affected by weather conditions. Moves to deregulate this sector are underway here in Japan, and interest is increasing all around the world.

Omiya:

Hellisheidi geothermal power plant (Iceland)

MHI has been involved in geothermal generation for more than 40 years, and to date we have constructed a total of 100 power generating facilities of this kind in 13 countries. Together they account for roughly 25% – the top share – of all power produced by geothermal energy worldwide.
In geothermal plants, the enormous heat energy from magma deep below the surface of the Earth is used to drive a turbine – and turbines are an area where we have outstanding technological strength built up over many years. Geothermal power generation also requires proper removal or treatment of the impurities and noxious gases contained in the hot water found underground – and through the years we have made steady progress in technological developments of that sort, in addition to improving the performance, economy and reliability of geothermal systems.
In the years ahead, we hope to provide geothermal power generation facilities to regions where such resources are abundant – North America, Europe, Southeast Asia – as well as in places where geothermal development has so far lagged, such as Africa and South America.

Also focusing on energy savings in our products and production processes

Takeda:

Another important factor in resolving energy and environmental issues is curbing energy consumption. What initiatives is MHI taking in this regard?

Omiya:

One initiative is making the products we provide more energy-efficient. We are making every effort we can to pursue optimal energy efficiency in all our product categories, in order to ease their burden on the environment. In the area of motor vehicles, for example, which are so indispensable to our lives, the company's turbochargers and lighter-weight hollow-head valves are contributing to improved engine efficiency. Many other products – OLED(Organic Light –Emitting Diode) lighting and room air conditioners, for instance – are also contributing to energy savings in everyday life.
Another area into which we are directing great effort is reducing CO₂ emissions from our production processes. In keeping with the Kyoto Protocol, we set a target to reduce our CO₂ emissions by an average 6% from the level of 1990 in the five years from 2008 to 2012. That translates to an average yearly emission limit of 443,000 tons – and in 2011 we reduced our emissions down to 437,000 tons. Today we continue to carry out a planned program toward achieving our target, for example by upgrading the production facilities and air-conditioning systems at all our bases of operation.

Takeda:

As I understand, MHI is in the process of formulating an "Environmental Vision."

Omiya:

We are calling it the "MHI Environmental Vision 2030," but it sets out not just our philosophy concerning the environment but also our commitment to contribute to sustainable social development through our products, technologies and total solutions, including other aspects of social infrastructure.

Related link

• MHI Environmental Vision 2030

Helping to resolve problems of global scale: in transportation, traffic, and food and water

Takeda:

As you have indicated, MHI has an extremely wide variety of products and technologies in areas other than energy and the environment: aircraft, ships, Automated People Mover/Light Rail Transit and so on. I believe you have also been involved in production of parts for the Boeing 787, which was frequently in the news last year.

Omiya:

Yes, we were in charge of producing the main wings for the Boeing 787, the world's first large passenger plane to adopt wings made from composite materials.
Our CI statement at MHI is "Our Technologies, Your Tomorrow." From the perspective of the society's future, energy and environmental issues are important, of course; but there are also many other issues that have to be addressed in order to realize a sustainable society.

Takeda:

Food and water shortages on global scale are another issue of great concern as populations continue to increase and the emerging nations experience economic growth. What business developments is MHI pursuing in these areas?

Omiya:

We offer large-scale desalination plants that can convert seawater to potable water, and we also possess comprehensive water treatment technologies – for example for treating waste water, recycling water and so on. We are also contributing to resolving global food problems through the construction of highly efficient large-scale fertilizer plants.

Takeda:

That's a considerable portfolio. I imagine only a few companies anywhere are involved in such a broad range of social infrastructure businesses.

Developing "smart communities" integrating technologies accumulated through many years

Omiya:

Recently, we took important steps to provide new solutions capable of contributing to issues of global scale through total integration of our abundant portfolio of products and technologies. In January of this year we set up a new Engineering Headquarters integrating our in-house systems handling EPC: engineering, procurement and construction. Our intent is to bring together all our technological and project management strengths developed through our experience in large-scale infrastructure works – plant construction projects, high-speed railway systems and such – to enable us to take up challenges involving even larger-scale projects.

Takeda:

Specifically, what areas are you intending to focus on?

Omiya:

Smart community demonstration testing , Keihanna

"Smart communities," for one. As cities in the emerging nations undergo sharp population increases as well as ever greater concentration of their populations, problems relating to shortages of energy and water resources, traffic congestion, increased waste and so forth are becoming increasingly serious. In order to resolve such compound problems, it is necessary to consider what form tomorrow's cities should take from various angles, and then develop the appropriate infrastructure paying heed to people's lifestyles as a whole.

Takeda:

In carrying out smart community projects, another necessity is to coordinate companies that have special know-how across a diverse spectrum. In other words you need to have the ability to manage such projects integrally, don't you?

Omiya:

Yes, and at MHI we have already served in that kind of coordinating role in smart community demonstration projects at various locations around the world: in Japan, the project in the Keihanna region; and other projects in Spain and the United Arab Emirates. Going forward we hope to apply what we have learned through these projects to build the smart cities of tomorrow all over the world.

Takeda:

Today the future of the global economy is very opaque. I hold high hopes for MHI's current initiatives, but in terms of profitability, wouldn't you agree that the picture is severe in some respects?

Omiya:

As far as profitability is concerned, smart communities, as a business, still have a long way to go. Nevertheless, achieving a sustainable society is a task that must be addressed squarely by all mankind, and we believe that by steadily developing the products and technologies that will contribute to that end, we will enhance our corporate value in the medium- and long-term contexts.

Related link

• Special Feature > A bridge to the next Generation (Smart communities)

The greatest mission: to ensure safety and quality

Takeda:

As an ordinary citizen, other major concerns are product safety and quality.

Omiya:

Accident Exhibit and Materials Room (right: exhibit of actual broken turbine rotor)

It goes without saying, as a manufacturer our most important social responsibility is to ensure the safety of our products. Especially in the wake of the Great East Japan Earthquake last year we have become all the more aware of the public's demand for safe, secure, quality products.
The earthquake caused infrastructural damage to thermal power generating facilities we had delivered, and we have done everything within our capability to restore them. After the disaster we also proposed and carried out a variety of measures to be taken at the PWR (pressurized water reactor) nuclear power plants we had delivered to utility customers: not just emergency safety countermeasures but also stress tests and measures to ensure safety in the medium-to-long term. Also, at TEPCO's Fukushima Daiichi Nuclear Power Station , although the reactor there is of a different type from ours, we have contributed to prompt stabilization through the provision of our technologies common to all nuclear plant facilities.
Despite our ongoing efforts of these kinds, last summer we discovered that inappropriate work had been performed in manufacturing some of our aircraft parts. I would like to express our deepest apology, again, for the enormous trouble this caused to our customers and to many others, and I assure you measures to prevent any such reoccurrence will continue to be taken.
We believe that nothing is more important to ensuring safety and quality than the awareness of our employees: how much each and every employee takes pains to ensure safety and quality. In April of this year we increased the video presentations and exhibited items in our Accident Exhibit and Materials Room within the Technical Training Center in Nagoya, upgrading this facility so that it can more vividly convey the tragedy that accidents cause and the tension experienced at accident sites. Going forward we will continue to strengthen and fully implement education relating to safety and quality, in order to raise awareness in all our employees even further.

Pursuing CSR globally, always respecting regional differences

Takeda:

When you undertake business globally as MHI does, I imagine there must be slight differences in how CSR should be applied in each different region.

Omiya:

In expanding our business operations overseas, in many cases we have entered partnerships with local companies. When doing so, we naturally respect local business practices and social norms, and we also have to pay heed to the surrounding natural environment as well as to each region's specific customs and culture.
At the same time, however, there are also some things we invariably must maintain in every region, in light of global standards. Since 2004 MHI has been a participant in the United Nations Global Compact, and as such we work to adhere to the 10 principles set forth in the Compact's four categories regarding human rights, labor, the environment and anti-corruption.

Takeda:

From your comments today I have gained a good understanding of MHI's initiatives in CSR through manufacturing. I have high hopes that you will continue to contribute to resolution of issues of global scale in the future.

Omiya:

Thank you. In the years ahead, MHI will accelerate globalization of its business even further. In returning benefits to all our stakeholders – our customers, shareholders, investors, business partners, local communities and employees – and fulfilling our social responsibilities, we will do all we can to be a company that is representative of our CI statement, "Our Technologies, Your Tomorrow" and provide an assured future for this planet.

Related link

• CSR Report