Introduction

Management

Social Innovation

Environmental

Environmental

Achieving a Harmonized Society with Nature

Environmental

Efforts to Achieve a Harmonized Society with Nature

Advancing Our Environmental Vision andLong-Term Environmental Targets

SocialApproach

Governance

Assurance

Hitachi Sustainability Report 2023

055

GRI 2-13/2-24/3-3/303-1/303-2/303-5

Our social lives and economic activities depend on numerous

opportunities related to natural capital and biodiversity in an

to climate change, we pursue initiatives aimed at to create a

Environmental Governancebenefits (ecosystem services) bestowed by nature, and the loss

appropriate manner.

decarbonized society. Regarding urban air pollution, andAchieving a Decarbonized Societyof biodiversity is becoming recognized as a major economic

Achieving a Resource-Efficient Society

risk. Nature Risk Rising, published by the World Economic

reflect related global trends, Hitachi assesses and discloses

impact assessments concerning raw materials procurement.

Forum in 2020, notes that the creation of approximately $44

biodiversity-related risks, the dependence, and the impact of

To this end, we plan to accelerate the pace of efforts intended

trillion of economic value generation in economic value, or morebusiness activities overall on biodiversity.

to achieve a resource-efficient society. To reduce our environ-	Efforts to Achieve a Harmonized Society
with Naturethan half of global GDP, depends on natural capital and ecosystem services at risk due to biodiversity destruction.
Against this backdrop, the Kunming-Montreal Global

Managing and Reducing Chemical Substances

Biodiversity Framework, adopted at the 15th Conference ofPreserving Ecosystems

the Parties to the United Nations Convention on Biological

Environmental Data

*1 OECM: Areas other than protected areas that contribute to biodiversity conservation. Acronym for Other Effective area-based Conservation Measures

Diversity (CBD-COP15) held in Montreal, Canada, in
December 2022, established 23 global targets with the aim

resource consumption, certain findings have come to light inmental load further and minimize our impact on natural capital, we will step up a wide range of activities that include
increasing the energy efficiency of our products and services,

Initiatives to Minimize Impacts on
Natural Capital
Activities

Materiality

improving factory efficiency, using resources more effectively,
and managing chemical substances properly.
To expand positive impact, we engage in social contribution activities, such as forest conservation, and business activi-of implementing urgent measures to halt and reverse biodi-

To preserve the ecosystem and achieve a society harmonizedties that contribute directly to ecosystem preservation, such asversity loss in order to put nature on the path to recovery bywith nature to continue to enjoy nature’s benefits, we estab-building water treatment plants. We are also studying how to2030. Of particular important to business enterprises arelished targets to minimize our impact on natural capital as part

quantify the impact of these activities on the environment.

Target 3, which is to conserve at least 30% of terrestrial andof our long-term environmental targets. We classify the emis-

water areas through protected areas and OECM*1 (30 by 30

sion of greenhouse gases and chemical substances into thetarget), and Target 15, which is to ensure that businesses,

atmosphere and the generation of waste materials in theespecially large corporations and financial institutions,course of our business activities as negative impact activities.

assess and disclose risks related to biodiversity, dependen-

Providing products and services that contribute to ecosystemcies and impacts on biodiversity, and measures to provide

preservation and undertaking activities to preserve biodiversity*1 IDEA v2: One of Japan’s leading inventory databases required to implement
LCAs for calculating negative impacts.

Timetable for Minimizing Impacts
100

information required to consumers to promote sustainable

and ecosystems are categorized as positive impact activities.

Reduce negative
impacts

consumption patterns.

We are working to quantify and minimize the difference

Activities to achieve
long-term targets

In addition, with heightened interest in ESG investment

between positive and negative impacts by 2050.

and financing, a private-sector initiative is growing to require

Hitachi identified the negative impacts that our businessdisclosure of biodiversity-related information. The Task Force

activities had on natural capital and evaluated these activities

on Nature-related Financial Disclosures (TNFD) established ausing version 2 of the Life-cycle Impact Assessment Method

disclosure framework for organizations to report and act on

based on Endpoint Modeling (LIME2) and an inventory data-

nature-related risks with a view to shifting the flow of funds tobase (IDEA v2*1), aiming to reduce such impacts. According

nature-positive activities. This framework requires companies

to our estimates, approximately half of our negative impacts inand financial institutions to assess and disclose risks andfiscal year 2022 were related to climate change. With regard

Impact (%)

Achieving a Harmonized Society
with Nature

To achieve a harmonized society with nature, as well as to

Ecosystem
preservation activities
Contributions throughproducts and services

Decarbonized society
Resource-efficient society
Harmonized society with nature

Minimize impacts
on natural capital

Increase positive
impacts
0
2010

2020

2030

2040

2050 (year)

Negative impacts
Positive impacts (ecosystem preservation activities)
Positive impacts (contributions through products and services)Introduction

Environmental

Management

Negative Impacts on Natural Capital (FY2022)

1%
Land use 16 %Other

Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceSocial Innovation

Resource
consumption

46%

Climate change	Efforts to Achieve a Harmonized Society
with Nature

14%

Environmental Data

Assurance

5%

18%

Ecotoxicity (air)nature-­positive goals of curbing biodiversity loss and encour-data is required to evaluate forest conservation efforts, and inaging restoration by the same year.
The 30 by 30 Alliance for Biodiversity was established topromote achievement of the 30 by 30 target agreed to at the

Scope of Negative Impact Calculations

G7 Summit 2021 and consists of governments, companies,
and NPOs. The goals of the alliance are to expand national

Signing the Call to Action Statement, Initiated byBusiness for Nature

cial forests (areas of biodiversity preservation planned by

In 2020, the global Business for Nature coalition issued a Callconservation in such areas, and share information concern-to Action*2 statement. The aim was to encourage policy

ing these activities.

various organizations) in international databases, pursue

100

92

85

Hitachi, Ltd. supports this mission and will work tonature loss in this decade.” Hitachi Ltd. agrees with this goal

advance related efforts. In August 2023 the Hitachi Kokubunji

and has signed the statement.

Site, Kyouso-no-Mori, was officially recognized by the gov-

*2 The Call to Action states that healthy societies, resilient economies, and thriving
businesses rely on nature. The statement urges governments to adopt policies
to reverse the loss of nature, and calls for the protection, restoration, andsustainable use of natural resources.

Negative Impacts on Natural Capital
100

056

Environmental Data Collection System (Eco-DS). this type ofmakers around the world to adopt policies to “to reverse
Note: Calculated from LIME2 by using IDEAv2(%)

Hitachi Sustainability Report 2023

parks, register satochi-satoyama landscapes and commer-

Managing and Reducing Chemical Substances
Preserving Ecosystems

Governancehttps://www.hitachi.com/environment/data/method.html

Achieving a Resource-Efficient Society

Achieving a Harmonized Society
with Nature

Socialfiscal 2022, we surveyed 0.31 km² of such forested areas.

Achieving a Decarbonized Society
Urban airpollution

Environmental

ernment as a conserved area (an area where biodiversity
conservation is pursued actively, and to be identified as
OECMs).

Business for Nature’s Call to Action

80

https://www.businessfornature.org/call-to-action
60
40

21

20
0

30 by 30 Alliance for Biodiversity Approved by
Ministry of the Environment (MOE), JapanThe 30 by 30 target aims to conserve or protect at least 30%

30 by 30 Alliance (Japanese only)
https://policies.env.go.jp/nature/biodiversity/30by30alliance/of the land and sea areas in Japan by 2030 to achieve
2019

2020

2021

2022*1 (FY)

*1 The Deconsolidation of materials- and construction-related companies resulted
in a significant decrease.

Addressing Risks Related to Water and Biodiversity
Approach

We estimate the benefits gained through our forest con-GRI 303-1/303-2/303-5

Activities

Since Hitachi’s exposures to water risks in businesses vary by

the world that we classify as Category A in our environmental

servation activities (flood prevention, water impoundment,

region and the type of business, it is important to identify

management classification.

water purification, soil loss prevention, and carbon fixation) on

respective risks and implement countermeasures. To facilitate

an ongoing basis using evaluation methods commonly usedrisk response, we compiled the procedures for water risk identi-

in forestry-related public works projects. We also collect data

fication and countermeasures under Water Risk Guidelines*1,

on forested areas targeted for conservation using thewhich are followed by some 150 manufacturing sites around*1 Prepared with reference to Setting Site Water Targets Informed By Catchment
Context created by members of the UN Global Compact, the CEO Water
Mandate, the Pacific Institute, WRI, WWF, and other global institutions with theaim of helping companies set effective site water targets. In fiscal 2021, weissued a revised version of Water Risk Guidelines reflecting the revised content
of Water Risk Filter 6.0 and additional examples of measures.

Introduction

Environmental
Environmental

Management

Environmental

Social Innovation

We use our Environmental Data Collection System

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

057

biodiversity is also important in identifying and assessing water­(Eco-DS) and various globally recognized tools for water risk

risks. Therefore, we conduct risk assessments specific to

Achievements in Fiscal 2022

assessment, in addition to region- and operation-specificbiodiversity by identifying and analyzing specific biodiversity-­

In fiscal 2022, we assessed the water and biodiversity

water risk identification checklists. We use these data andrelated data using tools such as the Water Risk Filter* and therisks in each region and identified water risk as high at

Advancing Our Environmental Vision andLong-Term Environmental Targets

checklists to identify and evaluate the water risks for eachwater risk identification checklist.

a total of 20 business sites operating in China, India,

Environmental Governancefor the entire Group once a year.

Achieving a Decarbonized Society
Achieving a Resource-Efficient Society

Achieving a Harmonized Society
with Nature

Preserving Ecosystems
Environmental Data

Based on the results of these assessments, we pursue

Mexico, Vietnam, and Egypt from among manufactur-

more effective risk reduction activities related to water risk

ing sites classified as Category A in our environmental

and biodiversity.

management classification. Additionally, one businessbusiness unit and Group company by country and region, andIn recent years, the TNFD, an international informationsite operating in Czech was identified as having highdisclosure framework, has indicated that the perspective ofrisk related to biodiversity.
As a result of evaluating the operational water and

Identification of Water Risks Using the Environmental Data Collection System (Eco-DS)	Efforts to Achieve a Harmonized Society
with NatureManaging and Reducing Chemical Substances

2

Regional water risks

Operational water risks
Risks related to biodiversity

Number of evaluation
items related to water
resources, water quality,
water damage, regulations, reputational risk, etc.

business sites identified earlier, were found to have low
Risks related to biodiversity

to medium-high operational risks related to water andbiodiversity risks.

Approximately 50

5 (included in the left
column)Approximately 70

13 (included in the left
column)For this reason, Hitachi believes that none of ourbusiness sites face overall high water or biodiversity risks.
Water usage at the 20 business sites with highRisk identification method

Various water risk assessment
tools, including Aqueduct*3,
Water Risk Filter, Flood Hazard
Map of the World*4, are combined to identify risks basedon address information

Risk assessment

Assessed using a five-level
scale*5 from low to
extremely-highRisk results

biodiversity risks, all business sites, including the 21

High at 20 sites

regional water risks was 1.1 million m3, accounting for

Water Risk Filter

Risks identified using
information such as abusiness site’s volume ofwater intake and effluentsdischarged, and water-­related initiatives

Identifying risks related tobiodiversity based on
information on water
intake and wastewater
discharge at business
sites

Assessed using a five-level
scale*5 from low to
extremely-highAssessed using a fivelevel scale from low to
extremely-highAssessed using a fivelevel scale*5 from low to
extremely-highUnderstanding Water Risks in the Supply Chain

High at 1 site

Low to medium-high at allsites, including the 20 tothe left

Low to medium-high at allsites, including the 1 tothe leftof parts and products.

No business sites face an overall high water risk.
*2 A water risk assessment tool developed by the World Wide Fund for Nature (WWF) and the German Development Finance Institution (DEG)*3 A water risk assessment tool developed by the World Resources Institute (WRI).
*4 Flood risk maps published by the European Union.
*5 Five-level scale: low, low-medium, medium-high, high, extremely-highabout 8% of the14.1 million m3 of water used in Hitachi’s
main manufacturing processes.

Hitachi believes it is important to understand the water risks
faced by procurement partners to ensure stable procurement
In fiscal 2022, we used the Aqueduct and the Water Risk
Filter to identify regional water risks for about 600 of our environmental focus partners of fiscal 2021 (about 1,000 companies selected, accounting for 70% of transaction value). These
partners responded to our survey regarding environmental
initiatives, and we shared the results with relevant internal
departments. Moving forward, we will strive to understand thewater risks of our procurement partners further by expanding
the scope of the survey.
P.108 Responsible Procurement

Note: Hitachi normally refers to suppliers (including vendors and providers) as procurement partners, with whom we build business together on an equal footing.

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Management

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

058

Managing and Reducing Chemical Substances
Managing Chemical Substances
ApproachManaging Chemical Substances in Our Products
SystemActivities

Environmental Governance

Hitachi believes that the control and reduction of chemical

Hitachi designates the chemical substances in our products

Achieving a Decarbonized Society

substances such as volatile organic compounds (VOCs), one

requiring management as Voluntarily Controlled Chemical

Classification Examples

Achieving a Resource-Efficient Societyof the causes of urban air pollution, are important not only for

Substances. We model the standards of the EU, where regu-

Prohibited Substances (Level 1)

reducing discharge of pollutants into the air and water, butlations are stringent, to identify and manage controlled chemi-

Substances for which use in products (including pack-also for managing chemical substance usage properly to

cal substances regardless of export destination, type of

aging) is generally prohibited inside and outside Japan,

minimize our impact on natural capital.

industry, or purpose of use.

but which might be found in products from suppliers.

Achieving a Harmonized Society
with Nature
Efforts to Achieve a Harmonized Society
with Nature	Managing and Reducing Chemical
Substances
Preserving Ecosystems
Environmental Data

Based on this belief, Hitachi formulated the Environment

We revise the list of managed substances and manage-and CSR-Based MONOZUKURI Standards to manage chemi-

ment levels when necessary, based on updates to the EU’s

cal substances at all stages of its operations—from design

REACH*1 and other regulations. Our aim is to add substancesand development, procurement, and from production to qual-

to our list of Voluntarily Controlled Chemical Substances six

ity assurance and shipping. We divide chemical substances inmonths before such substances are regulated officially. For

our products into two categories: prohibited substances andexample, we revised the list in accordance with the new regu-

controlled substances. These categories facilitate separate

lation of perfluorohexanesulfonic acid (PFHxS), their salts, andmanagement to respond to legal and regulatory frameworks

PFHxS-related substances as part of the POPs Convention*2,

at shipping destinations. With regard to chemical substances

which will be effective from November 2023.

used in our business operations, we reduce risk by assigning
three ranks to the use of such substances: prohibited,
reduced, and controlled. We also educate chemical substance handlers and managers on laws, regulations, andproper risk assessment.

*1 REACH: The European Union regulation of Registration, Evaluation,
Authorisation, and Restriction of Chemicals.
*2 POPs Convention: Stockholm Convention on Persistent Organic Pollutants.

Voluntarily controlled chemical substances in Hitachi Group products
https://www.hitachi.com/environment/data/chemical.html

Controlled Substances (Level 2)
Substances we are required to track and manage andsubstances requiring attention for recycling or appropriate disposal methods.

Introduction

Environmental

Social Innovation

Environmental

SocialGovernance

Hitachi cuts emissions of chemical substances from factories

In fiscal 2022, which was the first year of the Environmental

and other sites through stricter levels of management, includ-

Action Plan for 2024 (fiscal 2022–fiscal 2024), we achieved a

ing expanding the number and scope of chemical substances

reduction rate of 21% toward the target of reducing atmo-

Environmental Governancesubject to reduction*1.

spheric emissions of chemical substances per unit by 5%

Achieving a Resource-Efficient Society

Achieving a Harmonized Society
with Nature
Efforts to Achieve a Harmonized Society
with Nature	Managing and Reducing Chemical
Substances
Preserving Ecosystems
Environmental Data

059

GRI 305-7

Activities

Advancing Our Environmental Vision andLong-Term Environmental Targets

Achieving a Decarbonized Society

Hitachi Sustainability Report 2023

Assurance

Managing Chemical Substances in Our Business Operations
SystemEnvironmental

Management

We translate case studies for reduction into English andcompared with a base year of fiscal 2010. To reduce the emis-

Chinese, sharing these cases globally among Hitachi Groupsions, we are switching from paints containing VOCs tocompanies. We also follow legally prescribed procedures inwater-soluble and powder paints, expanding the use of saidmeasuring and managing emissions*2 of sulfur oxides (SOx)paints, while altering the painting and washing processes.

and nitrogen oxides (NOx), measurements for which are

Reducing Atmospheric Emissions of Chemical Substances(Hitachi Group)
China
Japan
North America

ASEAN, India, and other Asian regions
EuropeOther regions

(kt)

5.0

4.35

4.0

0.07
0.11

3.88

0.18

0.75

0.96

3.0

0.13

required under the laws and regulations of our business site
locations. At the same time, we continue efforts to restrict
emissions further.
We reference Japan’s Pollutant Release and Transfer
Register (PRTR) Law*3 in Group-wide monitoring in Japan ofEnvironmental Action Plan for 2024 Management Values

2.0

Reduction Rate in Atmospheric Emissions of Chemical
Substances per Unit (Hitachi Group)

1.0

From base year

21
reduction

public waters, removed outside our plants as waste, or discharged into sewage systems. We report the results to local
stances are exempt from reporting due to small quantities, ourkilograms or more per year.
*1 Chemical substances subject to reduction: A total of 50 substances selected interms of hazard and atmospheric emissions. Approximately 100% of substances in fiscal 2022 results were classified as VOCs.
*2 Emissions of SOx and NOx: Calculated using data by business site (measured
values, exhaust volume, content rate, etc.).
*3 PRTR Law: Act on the Assessment of Releases of Specified Chemical
Substances in the Environment and the Promotion of Management Improvement

0.09
0.04
0.44 0.16
0.08

2.50
0.07
0.03
0.15
0.34
0.06

2.70
1.56

2018

1.85

Target: 5%

100%
Emissions= Activity amount*

FY201079%
Emissions

1

2019

2020

2021

1.09

0.06
0.05
0.23 0.01
0.02
0.72

2022*1

Note: A tmospheric emissions of VOCs and other chemical substances arecalculated from the content rate included in the materials, etc.
*1 Decreased significantly due to the deconsolidation of the materials and construction machinery companies.

%

governments for each office or plant. Although certain sub-emission, and transfer of all PRTR substances totaling 10

3.03

2.37

0

chemical substances released into the atmosphere or into

policy is to aggregate and manage data on the handling,

0.05
0.06
0.19

= Activity amountFY2022(base year)*1 Activity amount is a value closely related to atmospheric emissions of chemical
substances at each business site (for example, substances handled, sales,
and output)

P.063 Environmental Load from Operations
Case Studies of Reducing Chemical Substances in Our
Business Activities
https://www.hitachi.com/environment/casestudy/index.html#case05(FY)

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceManagement

Social Innovation

Efforts to Conserve Ecosystems
Approach

Activities

At Hitachi, we seek to reduce negative impacts on natural
impacts, including social contribution activities to protect

	Preserving Ecosystems
Environmental Data

Category

GRI 304-3

Achieving a Resource-Efficient SocietyManaging and Reducing Chemical Substances

Governance

Assurance

Hitachi Sustainability Report 2023

060

Ecosystem Preservation Activities Menu

capital caused by business activities and to promote positive

Efforts to Achieve a Harmonized Society
with Nature

SocialPreserving Ecosystems

Achieving a Decarbonized Society

Achieving a Harmonized Society
with Nature

Environmental

nature and products and services that help preserve the eco-Business sites

system. In this way, we intend to minimize our impact onnatural capital by fiscal 2050.
Hitachi created an Ecosystem Preservation Activities
Menu citing specific activities preserve the ecosystem. This
chart including activities that are difficult to quantify but arenonetheless important, such as the protection of rare species
and efforts to make biodiversity a benchmark when making
investment decisions. Each business site sets goals andpursues initiatives based on the Ecosystem Preservation
Activities Menu to create a harmonized society with nature.

Value chain

Community

Water use that takes
watershed ecosystems
into consideration

Activities

No. of menu items

Production

Reduce the use of resources that cannot be reused

4

Transportation

Use packaging that takes ecosystem into consideration

7

Collection, disposal, andrecycling

Reduce hazardous materials in products

2

Product planning,­development, and design

Estimate the impact of R&D on biodiversity during the product life cycle andimplement mitigation measures, if needed

3Site management

Use native species and establish biotopes

17

Water use

Use rain water1

Investment andacquisition

Confirm the impact on biodiversity when investing in or acquiring a business,and implement measures to minimize such impacts

1Market entry andexpansion

Include biodiversity as an investment benchmark

1Business development

Develop products and services to purify water, air, and soil and expand suchbusinesses

1

Procurement

Procure paper and other office supplies with a bias for products that takebiodiversity into consideration

17

Transportation

Implement ballast water measures during marine transportation

2

Sales

Expand the sales of products that take biodiversity into consideration

9

Collection, disposal, andrecycling

Reuse and recycle components

7

Entire value chain

Pursue the use of renewable energy

1

Engagement

Promote employee activities outside the company

3

Social contribution

Conduct desert greening and afforestation activities

12

IntakeObserve and collect biota information (impact on ecosystem depending on
intake volume)

14

Discharge

Establish biota management indicators and make observations (species andnumbers of inhabiting organisms)

14

Case Studies of Promoting Ecosystem Preservation
https://www.hitachi.com/environment/casestudy/index.html#case06