Spend analysis We conduct spend analysis for the entire MHI Group, and the results are used in our procurement strategy.
Area Amount (billion yen)
Japan 1,409
North America 294
Europe 223
China 177
Asia / Oceania 107
India 95
Korea 43
Middle East 28
Taiwan / Hong Kong 16
Central and South America 12
Africa 2

Critical suppliers

Definition of critical suppliers By business unit, MHI nominates critical suppliers those suppliers that supply important or large quantities of parts or equipment or suppliers that are available where no alternatives exist.
Tier1 suppliers 17,443 (FY2018)
Primary Tier1 suppliers 725 (FY2018)

Supply chain monitoring

Supply chain monitoring We monitor and evaluate our critical Tier 1 suppliers' quality, cost, delivery, technical capability, and management (incl. ESG) based on each business unit.
We conduct a questionnaire to check the status of suppliers' CSR initiatives.
Evaluated suppliers in last 3 years 1,050 (6.0% of Tier1)
Suppliers targeted by the questionnaire 725

Conflict minerals

Basic Policy Concerning Conflict Minerals Armed groups engaged in conflicts in the Democratic Republic of the Congo and neighboring countries have committed serious human rights abuses and acts of environmental destruction. This issue has caught the world's attention. Some of the proceeds from the minerals produced in this region (tin, tantalum, tungsten, and gold, hereinafter "conflict minerals") are thought to be a source of funding for these armed groups. MHI Group has no intention of abetting human rights abuses or environmental destruction by procuring raw materials, parts or products which contain the conflict minerals. A survey conducted in fiscal 2018 targeting smelter and country of origin, which is mineral procurement source for automoblie parts and airplane parts, the results confirmed that 2,926 smelters out of 4,920 identified are certified under the conflict-free smelter program. We will continue to work with our customers, suppliers, industry groups and others in efforts to avoid benefiting the armed groups.
(Reference) MHI Group Supply Chain CSR Promotion Guidelines

Supplier education

Promotion of CSR procurement We are promoting CSR throughout the supply chain. We explain to suppliers the importance of CSR. We also ask for cooperation in our "Mitsubishi Heavy Industries Group Supply Chain CSR Promotion Guidelines".
As of June 28, 2019, approximately 450 suppliers have participated in this effort.
Number of participating suppliers 1,600 (FY2019 target)