In order to achieve its Environmental Vision, the Hitachi Group is actively working to reduce its overall
environmental burden. To reduce its CO2 emissions across its entire value chain, Hitachi aims to loweremissions not just at the production stage but also during use of sold products and services, which
accounts for the vast majority of total emissions, by promoting low-carbon businesses.
The Environmental Vision and Hitachi Environmental Innovation 2050
As climate change, resource depletion, ecosystem destruction,and other environmental issues grow more serious, companiesface increasing demands and expectations to reduce theenvironmental burden of their business activities. The ParisAgreement, which came into force in 2016, sets ambitioustargets, including a global long-term target of keeping global
warming to below 2°C and efforts to limit the increase to1.5°C. These targets are based on the Fifth Assessment
Report of the Intergovernmental Panel on Climate Change(IPCC). Environmental targets have also been set in the
Sustainable Development Goals (SDGs)—the centerpiece ofthe 2030 Agenda for Sustainable Development, adopted by
the United Nations in 2015—whose Goal 13 reads: “Takeurgent action to combat climate change and its impacts.”
In the light of these global demands and our own management policy, we created an Environmental Vision clearlystating our aim to both improve the quality of life and achievea sustainable society from a long-term perspective, as well as
to achieve a low-carbon society, a resource efficient society,and a harmonized society with nature by promoting environmental management. Looking toward 2030 and 2050, wealso established long-term environmental targets called
Hitachi Environmental Innovation 2050 that demonstrates
our resolve to achieve the kinds of societies outlined in ourEnvironmental Vision.
Our environmental strategy, centered on the Environmental
Vision and our long-term environmental targets, is deliberated
by the Executive Sustainability Committee, chaired by thePresident & CEO, and advanced by the Hitachi Group asa whole.

The aim of Hitachi’s environmental management

Achieving a Low-Carbon Society
Hitachi has established a goal of reducing CO2 emissions
throughout its value chain by 50% by fiscal 2030 and 80% by
fiscal 2050 (compared to fiscal 2010 levels).
A significant share of the CO2 emissions from our value
chain arises from the use of our products and services by ourcustomers. To reduce these emissions and combat climatechange, we are expanding our low-carbon businesses as
outlined below.
We are also improving the environmental performance ofproducts and services across the entire Hitachi Group to help
address environmental challenges through the development
and popularization of products and services with high environmental value. To track our progress, we use the reduction rate
per product and service function of CO2 emissions during usage
as our index. At the same time, we continue to promote

environmentally conscious design of products and services atthe design and development stage.
In addition, we remain focused on cutting direct emissions
by the Hitachi Group during production by enhancing theefficiency of our factories and offices, advancing energy-saving
measures, and introducing the use of renewable energy.
Please refer to the Hitachi Sustainability Report 2018 for further details.

Ratio of CO2 Emissions at Each Stage of Hitachi Value ChainProduction
Transportation

Disposal/Recycling

UseProcurement of raw materials/Parts39

Foundation for Value Creation

Environment

Responding to Climate Change Through Growth in “Low-Carbon Businesses”
As part of its efforts to address challenges posed by climatechange, Hitachi is combining the strengths of its business
units and Group companies through digital solutions built
on the Lumada platform, and expanding its low-carbon
businesses through co-creation with customers and partners.
To help achieve low-carbon energy supplies, we offer windand other non-fossil energy systems. We also promote
improvements in power distribution efficiency via the use ofsmart grids and related technology. To realize low-carbon
spaces, we are striving to make buildings more efficientthrough total solutions and reduce the energy requirements offactories via smart manufacturing. Through the developmentof more efficient railway systems and the promotion ofincreased adoption of automotive electric powertrains, we areproviding highly efficient transportation methods in order toachieve low-carbon mobility. Our amorphous transformers andother low-carbon products contribute to increasing efficiency
and reducing emissions throughout society. In these andmany other ways, we are helping to realize a low-carbon
society and promoting measures to address climate change.

Low-Carbon Businesses: A Hitachi Focus
Achieving Low-Carbon
Energy Supplies

Non-fossil energy systems• Wind energy systems
Smart grids• Distributed power supplysolutions• Energy management

Achieving Low-Carbon Spaces

Achieving Low-Carbon Mobility

Low-Carbon Products

Offices• Total solutions for buildings• Elevators• Escalators

Railways• Operation management/railway
information systems• Rolling stock

Industrial equipment• Amorphous transformers• Air compressors• MotorsFactories• Smart manufacturing

Automobiles• Electric powertrain systems(Storage batteries, motors,inverters, etc.)• Automobile components

High functional materials &components• Amorphous metal materials fortransformers• Rare earth magnets

Rolling stock

Amorphous transformers

Smart life & ecofriendly systems• Smart life business• Home appliancesWind energy systems

Elevators

Escalators

Digital Solutions Built on Lumada Platform

SDG Focus

Hitachi promotes initiatives to minimize environment-related risks, principally climate change, andcontribute to resolving environmental issues.

Rate of Reduction in CO2 Emissions from Use of Productsand Services (Hitachi Group)

Reduction in Per-Unit Energy Use by Factories and Offices(Hitachi Group)

From base year

From base year%
reduction%
reduction

3314

FY2010 (base year)

FY2017CO2 emissions

CO2 emissions

Function size*

100%

Function size

* Major functions of products correlated to CO2 emissions.

4067%

FY2005 (base year)

FY2017

Energy used 2.06 GL*1

Energy used 2.00 GL

Activity amount*2100%

Activity amount86*1 Energy volume used both in and outside the organization (Scope 1 and 2).
*2 A value closely related to energy use at each business site (for example,
production quantity, output, building floor space, and number of employees).

%