Ensuring the Viability of Business and a Sustainable Society

Improve Quality of LifeAdd value for customers

Socialvalue

Environmentalvalue

Economicvalue

Resolve social and management issues
by focusing on three key areas
Resilience

Security & Safety

Circular economy/
Resource efficiency

HigherSocial innovations using digital technologies and AI
Code of conduct,
corporate ethics

Human rights
Diversity andinclusion (D&I)
Employee health and safety

Creating value
through co-creation
with customers

Responsible
supply chains

Responding toincreasingly
complex andchallenging risks

Enhancing and improving
resilience in aging social
infrastructures
Resilience in corporate
activities

Strategic Focus Area

Enhancing andimproving resiliencein aging social
infrastructures
Resilience in corporate
activities

Information security/Cybersecurity
Stakeholder engagement

Human rights

Corporate governance

Employee health andsafety

Expansion of the Lumada business
P.28, P.36
• Increase Lumada revenues and adjusted operating income• Utilize the Lumada Solution Hub● Enhance human resources and technologies that support thegrowth of Lumada• Develop digital talent, and encourage participation of diverse
human resources (D&I)• Create learning opportunities • Strengthen R&D● Expand value and innovation from co-creation, and entrench thisapproach inside and outside of the Company• Expand co-creation centers• Expand partners in the Lumada Alliance Program• Increase awareness and understanding of the Hitachi Group identity●●●

We have set the targets of achieving carbon neutrality within Hitachi byfiscal 2030 and achieving carbon neutrality through the value chain by fiscal
2050. As a leading company in the creation of environmental value, we willfurther accelerate our initiatives aimed at realizing these goals.
In a society characterized by rapid digitalization, urbanization and a growing
senior population, it is important that we enable people to enjoy comfortable,energetic lifestyles, within a safe and secure living environment. To do this,Hitachi provides city building solutions that support safe and secure living forpeople everywhere, as well as optimum healthcare for individuals.
In the healthcare field, we support a society in which more and more people
are living past the age of 100 through the development and provision ofsolutions that extend from prevention of illnesses in the pre-symptomatic
phase to testing, diagnostics, treatment and support for long-term care.
Society and the economy are always potentially susceptible to highly
unpredictable risks such as natural disasters, pandemics and cyberattacks.
Public services and corporate activities must be able to recover quickly evenin times of disaster. We also face the urgent need to create a society inwhich everyone can benefit equally from the public services delivered by
rapid digitalization.

Relevant SDG

Promote “Hitachi Environmental Innovation 2050”
P.34
Expand the environmental contribution business• Reduction in CO2 emissions at workplaces• Reduction in CO2 emissions from products and services• Reduction rate in water use per unit
• Reduction rate in waste and valuables generation per unit
• Value creation story in five sectors and the Automotive Systems
business
P.52-69

Expand the Healthcare business
P.64
Expand businesses that support safe and secure transportationand lifestyles
P.61, P.64
• Value creation story in the Mobility and Smart Life sectors

●●

●
●

Hitachi provides systems and solutions that make society and corporate
activities more robust, thereby contributing to a more resilient society.

Expand businesses that support public infrastructure and services
Expand businesses that support business operations such as
finances, industry, logistics, and cybersecurity• Value creation story in five sectors and the Automotive Systems
business
P.52-69●Respect human rights
P.79• Training completion ratio • Auditing of supply chains●Thorough work safety and hygiene
P.78• Reduce work-related accidents • Promote health

Hitachi is managing its workplaces and maximizing the potential of its
diverse talent pool in line with our basic philosophy that “Health and Safety
Always Come First.” We respect all people, including co-creation partners
and those who support the value chain, contributing to a society in which
everyone can work safely and with peace of mind.

●Promote diversity and inclusion (D&I)
P.42• Ratio of non-Japanese and female executives and corporate officers• Number of non-Japanese and female employees• Number of female managers• Employment of people with disabilities

By encouraging the participation of diverse talent, we will promote active
co-creation between Hitachi and its partners and accelerate the creation of
new value through the Social Innovation Business.

●Put in place and promote workplace environments that are
comfortable and satisfying for employees
P.42• Participation rate in global employee survey/engagement index• Create learning opportunities• Autonomous career support through HR management initiatives• Put in place a remote working environment• Promote social contributions●Compliance
P.81
Build and operate risk management systems• Respond to risks and opportunities
P.70

GovernanceInterest and importance for stakeholders

Biodiversity andpreservation ofnatural capitalDecent work

Safe and secure
lifestyles

Hitachi’s mission in the Social Innovation Business is to achieve asustainable society by taking on the challenges of climate change, a circular
economy and the efficient use of resources. In response to climate change,
which is a particularly urgent issue, we will expand solutions for targeting
decarbonization.

Initiatives/KPIs

Sustainability

Circular economy/
Resource efficiency

Safe and secure lifestyles
Coexistence withlocal community

Optimum healthcare forevery global citizen

Responding toclimate change

Optimum healthcare for every global citizen

Recognition of Issues and Strategies

The world is undergoing a variety of changes, such as climate change
and resource shortages, aging populations and urbanization. Furthermore,
Social innovations using
society and the economy have changed dramatically amid the global
digital technologies and
COVID-19 pandemic.
AIHitachi creates new value for society by providing solutions that respondto a variety of challenges faced by society and the customers who arebeing confronted by these changes. This is the essence of Hitachi’s Social
Innovation Business.
Creating value throughCo-creation with customers and partners is essential in responding to theseco-creation withchanges quickly and efficiently. Through collaboration, we will expand social
customers
innovations that leverage Lumada. As a result, Hitachi will help realize asustainable society.

Responding to climatechangeStrategic Focus Area
Hitachi undertakes activities with a focus on
creating value in important market domains, led
by our vision of the ideal companies and society
in 2030.
Hitachi’s current goal is to achieve sustainability
in society and Hitachi’s management, as partof efforts to increase value for customers andimprove the quality of life for people everywhere.
To achieve this goal, we have mapped key
initiatives based on impact for the company(Hitachi) and the level of interest and importancefor stakeholders. Among these, priority initiatives
have been designated as a strategic focus area.

Strategic Focus
Area

Value Creation

Environment

Recognition of Issues and Strategies in Strategic Focus Areas

VisionHitachi practices sustainable management, which incorporates sustainability into the core of its business strategies. In the2021 Mid-term Management Plan, for which fiscal 2021 is the final year, we have set the goal of becoming a global leader in
the Social Innovation Business to help achieve a sustainable society. To accomplish this goal, we will focus on three fields—theEnvironment, Resilience, and Security & Safety—as we contribute to resolving social and corporate management issues andstrive to improve value for customers and quality of life for people everywhere. Based on our domain knowledge and co-creation
with partners throughout the world, we will leverage Lumada to expand the Social Innovation Business.

Product safetyTalent development

HighTaxtransparency

Large

Diversity and inclusion(D&I)

Work-style reforms

Impact for the company (Hitachi)

LargerHitachi, Ltd., has established an Executive Sustainability
Committee, whose members include Toshiaki Higashihara,
Executive Chairman & CEO, and other top management
members, along with CEOs from the various business
units (BUs). The purpose of this committee is to discussand decide on important policies and initiatives related tosustainability, share progress and results, and tie these into
further improvements and new activities.

18Hitachi Integrated Report 2021

Sustainability Promotion Meetings have also been establishedunder this committee, attended by sustainability strategy
promotion officers in each BU (heads of business promotion
divisions). The purpose of these meetings is to create longterm corporate strategies with an emphasis on environmental,social, and governance (ESG) matters, and to promote concrete
initiatives related to sustainability, including contributions tomeeting the UN Sustainable Development Goals (SDGs).

Code of conduct,
corporate ethics

Responding toincreasingly complex
and challenging risks

Amid the rapid growth of Hitachi’s businesses and partners on a global
scale, the effective management of corporate compliance, geopolitical risks
and business risks is essential to the continuation of highly reliable businessactivities.
Hitachi recognizes that sharing codes of conduct, ensuring thoroughcompliance with laws and regulations, and promoting risk management
are particularly important to sustainable growth. We are also undertaking
initiatives to augment our corporate governance function.

●Data

Decent work

Sustainability Strategy Promotion Structure

Hitachi’s Social Innovation Business adds to the vitality of society andpeople’s lives.

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