Mitsubishi Electric Corporation

Rating Overview

Mitsubishi Electric Corporation is Medium Risk.

Mitsubishi Electric Corp is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	Medium Risk
Funding	Lower Risk
Political Actions	High Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

Mitsubishi Electric integrates ESG into its business practices. From its Supply Chain Code of Conduct: “Participants shall establish and report against an absolute corportate-wide greenhouse gas reduction goal” and “shall look for methods to improve energy efficiency and to maximize their energy consumption and greenhouse gas emissions” (1). From its 2024 Integrated Report: “The promotion of sustainability initiatives is one of the compensation indicators for Executive Officers, and the achievement of performance indicators in non-financial areas such as sustainability and ESG-related areas is reflected in incentive compensation” (2). The company promotes divisive sex and gender policies. Its Supply Chain Code of Conduct requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (3). However, the company has not canceled customers, suppliers, or vendors based on political views or religious beliefs (4).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

Mitsubishi Electric does not appear to discriminate against charitable organizations based on views or beliefs. The company’s charitable giving focus areas are “science and technology, culture and arts, and sports” (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

Mitsubishi Electric appears to prioritize diversity over merit in its business structure through the establishment of gender targets for its hiring and leadership composition. The company is seeking 2 times more women in leadership and 1.2 times more women hired from 2021 percentages (1). The company offers unconscious bias training to its employees (2). The company does not publish a nondiscrimination policy (3).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Medium

Rationale:

Mitsubishi Electric is aligned with the Paris Agreement, which entails a commitment to net zero carbon emissions by 2050 (1). The company is committed to net zero carbon emissions by 2051 (2). The company supports DEI within its business practices. From its 2024 Integrated Report: “In July 2024, based on the DE&I Statement, we created and launched at DE&I website to strengthen dissemination of information on promotion of DE&I. Going forward, we will further enhance the content to develop the website as a forum for dissemination of information to everyone working to promote DE&I” (3).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Lower

Rationale:

Mitsubishi Electric has not used corporate funds to advance ideological causes, organizations, or policies (1).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

High

Rationale:

In 2021 and 2022 Mitsubishi Electric lobbied for the Zero-Emission Homes Act of 2021 (1)(2). Mitsubishi Electric does not operate a PAC at this time (3)(4).