The Role to be Filled by MHI for the Realization of a Sustainable Society (March 9, 2005) Page 1

Kawaguchi:
In the 2004 Social and Environmental Report, MHI's philosophy was presented based on four different categories. For each of the categories, the report appeared to give a summary of a 2- or 3-year short-term business plan. I would like to see MHI reveal its 100-year vision, such as "We will develop and change over to such-and-such type of transportation system." I understand that MHI is involved in a variety of activities, but rather than simply presenting the major activities one by one, to us like patchwork, it's necessary to present to us the materiality of MHI and the strategy behind incorporation. With regard to the environmental activities as well, I believe MHI has potential to provide new next generation- environmental technologies so, MHI would not only call attention to its environmental pollution treatment technologies, but also present its vision based on a long-term strategy. Also, the fact that the CSR report does not cover controversial issues such as defense and nuclear power results in deterioration of the corporate image. If MHI's vision and stance toward these controvertial issues, were presented even touchy topics would be easier to write about. Even if there were pros and cons regarding methodology, it would be quite significant if MHI could show that it is making every effort to move toward resolution. For this reason, I would like to see MHI define its long-term plan.

Kaneko:
I'm sure that developing a vision is extremely difficult. In particular, whether to progress with energy in a large-scale centralized format or a decentralized format remains controversial, and society as a whole continues to search for the answer. In the case of MHI, it would be helpful if those who have knowledge regarding state-of-the-art technology would honestly reveal their thoughts, indicating, for example, that up until now they had "this" type of view for the immediate future, but do not yet know about the distant future. Public assessments pertaining to heavy industry, including nuclear power, are often split and issues regarding the responsibility of the nation also exist. It's important that Japan and the world's business leaders proactively emphasize CSR and encourage a spirit of innovation. While I realize it is impossible to create the ideal society right now, I would like to see MHI present its vision to the extent possible, even if that means only a little.

Iida:
While it is difficult to present a vision, whether or not a corporation reveals how it sees the future - not a matter of right or wrong- indicates the corporation's competence and character. For example, Shell presents three future scenarios. Even though society may change course in a variety of directions and uncertainties exist, there must be a way for MHI to present its vision as to which direction it believes the future will advance. Searching for the answer will also lead to reevaluations of its own activities or the creation of new values.
I would also like to see MHI insert a message in its report with regard to what is taking place in society now. Even with regard to the accident at Kansai Electric's Mihama Nuclear Power Plant, the Nuclear and Industrial Safety Agency and the government are constantly out in front of the public, but MHI is also involved in various respects. In addition, with regard to the nuclear fuel cycle as well, I would like to see MHI incorporate content based not only on the philosophy of MHI but also on the opinions and thoughts of stakeholders.

Hibi:
With regards to the company's impact analysis on the environment, MHI only seems to identify the impacts of direct output. Automobile companies, for example, identify environmental impacts after the product has been delivered to customers based on an LCA(Notes 1) perspective, such as fuel consumption and efficiency. For instance, ship building, one of MHI's core businesses, has serious impacts on global warming through fuel combustion of the vessels, or on biodiversity through vessels' ballast waters. I would like MHI to take a closer look at the environmental problems that lie ahead for their customers from such viewpoint. Taking a look at the world and society from a larger perspective could serve as a foundation from which the MHI vision manifests itself.

(Notes 1) LCA: Life Cycle Assessment
Life Cycle Assessment is a process for evaluating the environmental impact assocated with a product at all stages, from production, use and disposal to recycling. The development of environment-friendly products based on the LCA concept is socially mainstream.