Sustainable Business Management

The report gives an overview of the sustainable business management in the context of Mitsubishi Australia Limited. It provides detailed recommendations for the transformation towards sustainability and discusses the key social impacts of Mitsubishi Australia along with recommendations for improving the social performance.

Running head: SUSTAINABLE BUSINESS MANAGEMENT
Sustainable Business Management
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Executive Summary:
The report gives an overview of the sustainable business management in the context of
Mitsubishi Australia Limited. It is a completely owned subsidiary of the Mitsubishi Corporation.
The company is engaged in a wider range of business through both investments and trading
activities and spread across the energy, global environment, metals, machinery & infrastructure,
chemicals and living essentials. The company has its offices in Perth and Sydney. The report
here puts forward a detailed description of the recommendations for the transformation towards
sustainability. There are also discussions about the key social impacts of Mitsubishi Australia
along with recommendations for improving the social performance.

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Table of Contents
3. Detailed Recommendations for Transformation into Sustainability...........................................4
3.1. Land and Biodiversity Management.........................................................................................4
Recommendations........................................................................................................................4
i. Dependency on the Biofuels:....................................................................................................4
ii. Installation of Gardens and Planting Trees for Suppressing Dust and Noise:.........................4
iii. Consideration of Biodiversity into the System of Environmental Management:...................5
3.2. Water Management...................................................................................................................5
Recommendations........................................................................................................................5
i. Dependency on Renewable Energy:.........................................................................................5
ii. Water Collection and Reuse:...................................................................................................6
iii. Using Biodegradable Eco friendly Cleaning Products...........................................................6
3.3. Energy and Carbon Management.............................................................................................7
Recommendations........................................................................................................................7
i. Performance Ladder of Measuring Carbon Dioxide:................................................................7
ii. Conversion to Efficient Lighting Facilities:............................................................................7
iii. Using Mechanical Lift Trucks................................................................................................8
3.4. Supply Chain and Transport Management...............................................................................8
Recommendations............................................................................................................................8

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i. Managing Operations of the Supply Chain...............................................................................8
ii. Improving the Efficiency and Layout of Warehouse:.............................................................9
iii. Implementation of Just in Time Inventory Picking System...................................................9
3.5. Pollution, Waste and Recycling Management........................................................................10
Recommendations......................................................................................................................10
i. Development of Waste Disposal Program..............................................................................10
ii. Reduction of Solid Waste in the Automobile Industry..........................................................10
iii. Undertaking Recycling Service for Customer Parts and Packaging....................................11
4. 1 Major Social Impact of the Organization...............................................................................11
4.2 Recommendations for Improving the Social Performance......................................................12
References:....................................................................................................................................15

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3. Detailed Recommendations for Transformation into Sustainability
3.1. Land and Biodiversity Management
Recommendations
i. Dependency on the Biofuels:
One of the recommendations for land and biodiversity management for Mitsubishi
Australia Ltd (MAL) can be its dependency on Biofuels having perceived rural and
environmental benefits (mitsubishicorp.com 2018). The use of biofuels brings in overall cost
benefit to the company. Besides, biofuels also act as cleaner fuels thereby producing lesser
emissions when burnt. They also remain compatible with the current designs and perform well
under most of the conditions. The fuel also keeps the engine running for long, needs lesser
maintenance and brings down the overall cost of pollution. Biofuel is also easy to source since
they are made from crop waste, and manure. This type of fuel is renewable and reduces the level
of the greenhouse gases. The carbon dioxide created as a byproduct of biofuel leads to the
growth of the plants that later gets converted to fuel. This criterion makes it something closer to a
self-sustaining system thereby resulting in the management of land and biodiversity.
ii. Installation of Gardens and Planting Trees for Suppressing Dust and Noise:
Mitsubishi Australia Ltd can ensure land and biodiversity management through the
plantation of more trees and installation of gardens that enables suppression of dust, sand and
noise into the warehouse facility. Plantation of shrubs and trees within the height range of 5
meter from the ground level and having width of 5 meters has served as proven method for dust

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and noise control (Nadel, Oberlander and Bohm 2013). The prevention of dust and sand into the
Mitsubishi warehouse compound also reduces the amount of water and energy spent on the
cleaning. Thus, plants filter the pollutants, absorb the carbon dioxide and reduce the oxygen,
prevent soil erosion and reduce the carbon footprint. Besides, plantation of trees also helps in
reducing the energy cost. This particular initiative by Mitsubishi is classed as reinvestment in the
natural capital as it is using it as a foundation for engineering solutions to the industrial
problems.
iii. Consideration of Biodiversity into the System of Environmental Management:
The fast-paced changes in the environmental conditions have put forward a struggle for
the entire ecosystem resulting in failure to adapt. It is not only important to protect the natural
environment but also the biodiversity (Schaltegger, Burritt and Petersen 2017). MAL can
contribute to land and biodiversity management through biodiversity consideration into the
environmental management of the company. This refers to the identification of energy products
and the service practice that not only causes lesser environmental destruction but also ensure
healthier ecosystems through cleaner water, air, soil, climate regulation and the recycling of
nutrients thereby contributing to the sustenance of economies.
3.2. Water Management
Recommendations
i. Dependency on Renewable Energy:

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Dependency on the renewable energy allows Mitsubishi on producing products that
influences the climate resulting in climatic problems and the acid rain. By concentrating on the
development of products related to the renewable energy, the company will contribute less to
global warming since it would ensure the replacement of the carbon intensive sources of energy.
The energy generated from the solar, wind, hydroelectric, biomass, geothermal system emits
little or no pollution with the emission levels lower compared to the natural gas, and the coal
powered plants (Ellabban, Abu-Rub and Blaabjerg 2014). Besides, the usage of renewable
energy source by Mitsubishi also results in the improved health of the public.
ii. Water Collection and Reuse:
Mitsubishi Australia Limited can contribute to water management through water
collection and reuse. This is done through installation of rainwater storage and catchment system
for cleaning thereby ruling out the need for localized water supplies. The Mitsubishi Australia
Limited can make use of the rooftop facilities of the warehouse in capturing approximately 5000
square meter of water that has the capacity of storing approximately eight million litres of
rainwater in a year. The monthly average rainfall is close to 8 million with most of the rainfall
during the initial six months of the year. A tank of 100,000 litres capacity would be enough for
sufficing 100 percent usage of the harvested water (Del Borghi et al. 2013). This not only
contributes to water management but also prevents pollution and water shortages.
iii. Using Biodegradable Eco friendly Cleaning Products
There is a significant risk in handling the conventional products for cleaning as they
contain higher levels of phosphates that when released in water led to the decline of its quality
thereby disturbing the ecosystem(Koronis, Silva and Fontul 2013). These phosphates when

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washed down by the water encourage the growth of the algae that pulls increasing level of
oxygen from the water thereby leading to the decline in its quality. Mitsubishi as a renowned
brand can contribute to water management through using eco friendly and biodegradable
cleaning products friendly to the skin. This will result in the reduction of the toxic waste in the
air and the water thereby promoting a better environment for animal growth and vegetation.
3.3. Energy and Carbon Management
Recommendations
i. Performance Ladder of Measuring Carbon Dioxide:
The introduction of a performance ladder for measuring carbon dioxide (CO2) is one of
the recommended approaches for Mitsubishi Australia in undertaking energy and carbon
management. Besides, it also involves the facilitation of the mechanisms for helping Mitsubishi
in reducing the emissions of carbon dioxide. The CO2 performance ladder acts as instrument in
helping an organization determine the different energy streams but also its carbon footprint
(Rietbergen, van Rheede and Blok 2015). This tool will also help Mitsubishi Australia in
developing ambitious goals for reducing the emissions of carbon dioxide. The ladder comprises
of five levels that will enable the company in measuring its improvement in terms of the carbon
management and energy.
ii. Conversion to Efficient Lighting Facilities:
It is recommended that Mitsubishi Australia Limited should use energy efficient lighting
facilities for improving the safety and the health of the employees thereby contributing to energy

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and carbon management. Using 100-watt lighting systems will not only lower energy
consumption by close to 75 percent but also at the same time lead to the rise in the life
expectancy across the globe by close to 500 percent (Malatji, Zhang and Xia 2013). Besides, the
installation of LED in the Mitsubishi facilities will reduce the energy consumption by 123,480
kW per year that saves emission of 286 tons of carbon. It will also lead to the upfront conversion
in the cost that has an estimated payback period of close to four months.
iii. Using Mechanical Lift Trucks
It is found that battery or the Liquid Petroleum Gas (LPG) powered forklifts are more
sustainable compared to the diesel forklifts (Sharaf and Orhan 2014). Besides, the LPG or the
electric powered lift trucks results in lesser carbon footprint. It is recommended that if Mitsubishi
uses the mechanical electric lift trucks then it contribute to the energy and the carbon
management provided it remains powered through the renewable energy sources. This will not
only reduce the cost of the electricity but also leads to zero emissions during the operation. These
lifts also do not create a noise and does not even require a zero propane tank.
3.4. Supply Chain and Transport Management
Recommendations
i. Managing Operations of the Supply Chain

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It is recommended that Mitsubishi Australia should implement more optimization
measures for managing its present supply chain. The measures will not only include steps from
designing the company’s transportation to its execution, organization and the packaging options.
This will also include removal of the unnecessary transportation legs, shifting of the
transportation modes and the relocation of the inventory. A proper management of the supply
chain operations will lead to an improved product and material flow (Swink et al. 2017). An
effective supply chain management is ensured through the improvement of the product flow by
determining the accurate demand and the sales forecasting. Thus, the management of supply
chain will help in minimizing the delays thereby allowing complete visibility and traceability in
the movement of the goods from supplier to customers.
ii. Improving the Efficiency and Layout of Warehouse:
To ensure supply chain management, Mitsubishi is recommended for redesigning its
warehouse there ensuring higher and lower volume items to be stored in appropriate locations
thereby ensuring maximum amount of efficiency based on the physical attributes and the
demands. The picking process represents the most labor-intensive process that accounts for about
55 percent of the labor cost (Mohan, Gopalakrishnan and Mizzi 2013). Conduction of an analysis
regarding the higher volume and the most purchased items will allow Mitsubishi Australia
Limited in redesigning the facility that ensures the items in remaining closer to the dispatch and
the receiving areas. Resigning the facilities also maximizes the efficiency of labor, warehouse
space and equipment.
iii. Implementation of Just in Time Inventory Picking System

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The introduction of Just in Time (JIT) software system is recommended for Mitsubishi
Australia Limited for effective supply chain and transport management. This will ensure the
orders to be stored within a system without sending to warehouse staffs until suitable timeframe
(Ptak and Schragenheim 2016). This software is driven by the date instead of the time for placing
the orders. This will lead result in better asset, labor, inventory and management of floor space as
Mitsubishi will be able to not only plan its work based on the customer expectations and the
transport schedules. It will also enable the company in gaining capital for using them in other
appropriate venture.
3.5. Pollution, Waste and Recycling Management
Recommendations
i. Development of Waste Disposal Program
One of feasible recommendations for pollution, waste and recycling management would
be Mitsubishi’s non-indulgence in producing products that results from the fossils fuels, as they
are difficult in recycling. Besides, there would also be a need for the development of effective
disposal and waste management program (Guerrero, Maas and Hogland 2013). This would allow
the company in requesting the customers for not disposing any toxic waste on the landfills but
return them to company. Moreover, a customized waste disposal system will allow the company
in disposing only the waste materials produced as well as developed by the company.
ii. Reduction of Solid Waste in the Automobile Industry

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Mitsubishi can reduce the solid waste in automobile industry thereby contributing to the
pollution and waste management. It will also enable the company in conserving space related to
the existing cleanfills and landfills and result in reducing the energy consumption and the
pollution (Diabat, Khodaverdi and Olfat 2013). This recommendation prevented the company
from destructive demolition by reducing the impacts of the dust, traffic and noise on the streets
and the surrounding properties. Besides, the Mitsubishi Australia can also save money. This is
because when carried out efficiently, it results in the better management of the inventory and the
materials. Thus, a better inventory management leads to the reduction of the cost in association
with waste management, purchase and hazardous removal of waste.
iii. Undertaking Recycling Service for Customer Parts and Packaging
Mitsubishi Australia Limited can undertake reverse logistics methodology for offering
package return facility for reducing the quantity of materials sent to the landfills thereby
initiating reuse and an appropriate recycling. Reverse logistics refers to a process where the raw
materials and the packaging are returned in a reverse manner through supply chain for improving
the environmental efficiency through recycling, reusing and reduction in the overall materials
consumed and used (Shaharudin et al. 2015). Since returned materials are recycled or reused, the
method falls under the sustainability theory.
4. 1 Major Social Impact of the Organization
Mitsubishi Australia Limited tried in achieving sustainable value of the society although
the business operations of company contributed towards achieving lasting solutions towards the
wider spectrum of the sustainability challenges faced by the global society of today. However,
some of the major impacts of the organization are as follows (www.mitsubishicorp.com 2018):

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 The company works towards addressing the localized societal challenges within the
communities and regions of their operation thereby contributing to the creation of a
sustainable and lasting development through the business activities
 The company undertakes philanthropic commitments through regular adaptation of the
approach with the challenges and needs of the society
 The company also pays respect towards the rights of human and the indigenous people
 The company also pays complete respect towards the labor rights and makes an attempt
in ensuring provisions for appropriate working ambience while considering the health,
safety and the other aspects
 The company would not engage in corruption activities and thereby will ensure
appropriate measures as a safeguard from undertaking corruptive practices.
 The company will continue in actively engaging and working with the various
shareholders in a transparent and open fashion thereby disclosing information regarding
societal impacts of the business operation in a timely and appropriate manner.
4.2 Recommendations for Improving the Social Performance
These include:
Practicing Transparency: Rather than trying to divert attention away from the business
it is recommended to embrace the social responsibility. It is therefore, necessary for Mitsubishi
Australia Limited, to beopenly and aggressively transparent that helps in earning trust. It is also
necessary in encouraging the company in adopting the best practices. Transparency also helps
the company in sending messages across the world that the company places a higher value on the
aspect of social responsibility.

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Making Sustainable Purchase Decision: Sustainability is one of the common criterions
that the outside observers and the consumers uses for evaluating the responsibility portrayed by
the company. Every additional dollar spent has an impact on the role of the company. It is
therefore necessary to communicate with the business partners as well as the consumers about
the socially responsible choices made by the company.
Having More Active Role within Community: Mitsubishi Australia Limited should not
only make decisions that have a global impact but should also actively seek in engaging with the
local community. It is also necessary for the company to look for the appropriate opportunities
and also participate in the community events thereby ensuring that the company name is visible
in all the important localized activities thereby capitalization on soft marketing and enjoy the
benefits of public relations. It is also necessary for the company in directly assigning a member
who can plan out actively and also ensure the understanding of responsibilities for supporting the
efforts and participate in the events.
Extending Support to Local Community: It is also necessary for Mitsubishi Australia
Limited in becoming a direct supporter of companies and the business people belonging to the
local community. It is also necessary to make some purchases from the local suppliers. It is also
vital in supporting the local events especially when they promote the local business.
Encouraging Innovation: It is also recommended for Mitsubishi Australia Limited in
creating an ambience that provides encouragement to the employees in moving forward with
innovative ideas related to social performance. Through the inclusion of the ideas and

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encouraging the active participation, the company can guarantee that the social responsibility can
act as the daily driver in the operations.
By Considering Social Performance as Management Decision: It is recommended that
Mitsubishi Australia Limited should consider genuine social performance instead of waiting for
motivating from the employees for undertaking responsible activities and practice. It is also
necessary to ensure social performance as one of the core components in each layer of
operations. It is thus necessary for the business to have a positive influence through its aspects of
social performance.

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References:
Del Borghi, A., Strazza, C., Gallo, M., Messineo, S. and Naso, M., 2013. Water supply and
sustainability: life cycle assessment of water collection, treatment and distribution service. The
International Journal of Life Cycle Assessment, 18(5), pp.1158-1168.
Diabat, A., Khodaverdi, R. and Olfat, L., 2013. An exploration of green supply chain practices
and performances in an automotive industry. The International Journal of Advanced
Manufacturing Technology, 68(1-4), pp.949-961.
Ellabban, O., Abu-Rub, H. and Blaabjerg, F., 2014. Renewable energy resources: Current status,
future prospects and their enabling technology. Renewable and Sustainable Energy Reviews, 39,
pp.748-764.
Guerrero, L.A., Maas, G. and Hogland, W., 2013. Solid waste management challenges for cities
in developing countries. Waste management, 33(1), pp.220-232.
Koronis, G., Silva, A. and Fontul, M., 2013. Green composites: a review of adequate materials
for automotive applications. Composites Part B: Engineering, 44(1), pp.120-127.
Malatji, E.M., Zhang, J. and Xia, X., 2013. A multiple objective optimisation model for building
energy efficiency investment decision. Energy and Buildings, 61, pp.81-87.
mitsubishicorp.com 2018. [online] Available at: https://www.mitsubishicorp.com/au/en/bg/
[Accessed 10 Oct. 2018].

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Mohan, S., Gopalakrishnan, M. and Mizzi, P.J., 2013. Improving the efficiency of a non-profit
supply chain for the food insecure. International Journal of Production Economics, 143(2),
pp.248-255.
Nadel, I.B., Oberlander, C.H. and Bohm, L.R., 2013. Trees in the City: Habitat: a Series of Texts
on All Aspects of Human Settlements. Elsevier.
Ptak, C.A. and Schragenheim, E., 2016. ERP: tools, techniques, and applications for integrating
the supply chain. Crc Press.
Rietbergen, M.G., van Rheede, A. and Blok, K., 2015. The target-setting process in the CO2
Performance Ladder: does it lead to ambitious goals for carbon dioxide emission
reduction?. Journal of Cleaner Production, 103, pp.549-561.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate environmental
management: Striving for sustainability. Routledge.
Shaharudin, M.R., Govindan, K., Zailani, S. and Tan, K.C., 2015. Managing product returns to
achieve supply chain sustainability: an exploratory study and research propositions. Journal of
Cleaner Production, 101, pp.1-15.
Sharaf, O.Z. and Orhan, M.F., 2014. An overview of fuel cell technology: Fundamentals and
applications. Renewable and Sustainable Energy Reviews, 32, pp.810-853.
Swink, M., Melnyk, S.A., Hartley, J.L. and Cooper, M.B., 2017. Managing operations across the
supply chain. New York, NY: McGraw-Hill Education.

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www.mitsubishicorp.com 2018. [online] Available at:
https://www.mitsubishicorp.com/jp/en/about/philosophy/socialcharter.html [Accessed 10 Oct.
2018].