Japan Markets ViewESG A to Z Vol. 13
IHI (1)

Apr 18, 2024

Topic

Introduction of ESG management approach and environmental initiatives of IHI (Ticker: 7013), a leading Japanese manufacturer specializing in aero engines, large boilers, and turbochargers

Interview Summary

Could you elaborate on your approach towards ESG?: Our business has remained rooted in addressing social issues aligned with the SDGs. Such issues include environmental and human rights issues, which require the coordination of various people’s interests. Thus, we encourage the participation of diverse talent.
In solving social issues, you are trying to find business growth opportunities in “creating value across the lifecycle” and “establishing and enhancing the entire value chain.” Could you elaborate on this?: Our business is directly linked to climate change mitigation and sustainability, but these issues cannot be solved in the short term. The intent is that we need to consider the life cycle and value chain not only for our products but also for our customers’ businesses.
Aiming to achieve carbon neutrality by 2050 across the entire value chain, you are focusing on ammonia-fueled power generation and establishing an ammonia value chain. Could you share some details on this with us?: In addition to hydrogen, ammonia is considered a future sustainable energy source. Ammonia emits no carbon and is relatively easy to handle. However, ammonia also has negative aspects. Thus, we need to settle them and build a value chain for ammonia.
Could you share some insights into your initiatives in air transportation systems, one of IHI’s strengths?: To reduce CO₂ emissions, we are working on weight reduction by using composite materials as well as electrification of aircraft. It is important to approach the entire environment surrounding air transportation, not just jet engines.
Can you explain the clean energy field as a development-focused business?: Instead of treating energy as a source of CO₂ emissions, we are working to regenerate carbon and produce energy through heat exchange.