Towards net zero – Hitachi value chain innovators

Climate Change Innovators
within the Hitachi Value-chain
November 2021

Yoshiaki Kagata
Chief Procurement Officer
Hitachi, Ltd.
© Hitachi, Ltd. 2021. All rights reserved.

Today’s Key Messages

1. Why we aim for net zero?
To contribute our society

2. What we aim for?
To become a climate change innovator

3. How we aim for our targets?
To share, learn, grow together© Hitachi, Ltd. 2021. All rights reserved.

11. Why we aim for net zero?

© Hitachi, Ltd. 2021. All rights reserved.

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1-1 Hitachi’s Vision & Growth Strategy

GrowthESG

Growing with digital technology

Deepening ESG management

Returns
Returning of benefits

Hitachi’s Vision for 2025

Environment
Support the decarbonization of social infrastructure
through environmental product x digital technologies
Business fields
Electrification/digital grid/railway

Security& Safety
Resilience

Expand R&D investment to accelerate innovation - approx. 14 billion US$ (over 3 years)© Hitachi, Ltd. 2021. All rights reserved.

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1-2 Hitachi Identity since 1910

Hitachi always strives to improve
people’s Quality of Life andSustainable Society
contribute to society
2050
Climate Changeand more..

Speed of Internet

Globalization
A rise population
Postwar reconstruction
Established1910© Hitachi, Ltd. 2021. All rights reserved.

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1-3 Hitachi Group Global Business Portfolio

Hitachi is engaged in a variety ofbusinesses around the world
IT,
Industry,…

North
America

Mobility,Energy,
IT…

EuropeMobility,Energy…

Energy,Automotive,
IT…

Japan
China

Revenues (FY2020)

US$ 81billion

IT,
Industry,
Energy,Smart Life,and more…

ASEAN, India
and other areas

19 customer co-creation centers (as of July 2021)
Indicates businesses that account for a significant component ratio of revenues by region© Hitachi, Ltd. 2021. All rights reserved.

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2. What we aim for ?

© Hitachi, Ltd. 2021. All rights reserved.

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2-1 Become a Climate Change Innovator

Hitachi will becomea Climate Change Innovator
Realization of a Decarbonized Society
ProvideSolutions
IT

EnergyIndustry

Mobility

Smart Life

AutomotiveSystems

Together with partners in each segment worldwide:
Driving innovations to become global leader in climate change technology© Hitachi, Ltd. 2021. All rights reserved.

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2-2 Setting the Environmental Vison and Targets

Hitachi Environmental Innovation 2050
For a Decarbonized Society

Achieve carbon neutrality
by FY2050
throughout the value chain,
reduce CO2 emissions by 50% byFY2030(compared with FY2010)

Achieve carbon neutrality
by FY2030 at business sites(factories and offices)© Hitachi, Ltd. 2021. All rights reserved.

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2-3 Hitachi leading its Value Chain

Hitachi leads the collaboration withPartners in the Value chain
OT + IT + Products
Partners

Customers

Hitachi© Hitachi, Ltd. 2021. All rights reserved.

92-4 Setting the Target toward Net Zero - Carbon Neutrality

Hitachi’s new target isCarbon Neutrality through its entire
value chain by FY 2050
Scope 3 Upstream
Category 1

9.1%

Procurementof Raw
Materials andParts© Hitachi, Ltd. 2021. All rights reserved.

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3. How we aim for net zero?

© Hitachi, Ltd. 2021. All rights reserved.

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3-1 Hitachi Value Chain Procurement Partners

Procurement Partners are crucial for
Hitachi Group
Hitachi Group
Revenues

８１
Billion US$ (FY20)

Hitachi Group Procurement Partners

66

30,000Countries & RegionsPartners© Hitachi, Ltd. 2021. All rights reserved.

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3-2 First step with Procurement Partners

Share together
Shared with Hitachi Group Partners worldwide, July 2021
1. Hitachi Group Sustainable Procurement Guidelines
2. Group CPO letter

Download available:
https://www.hitachi.co.jp/procurement/csr/sustainableprocurement-guidelines/index.html© Hitachi, Ltd. 2021. All rights reserved.

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3-3 Second step with Procurement Partners

Learn together
Launched to work with major partners
Exchange of sustainability solutions and measuring progress
2. “Towards net zero” - Hold the Todays’ event
Inviting 30,000 partner to COP26 to learn and share going forward© Hitachi, Ltd. 2021. All rights reserved.

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3-4 Third step with Procurement Partners

Grow together
Understand your thoughts, initiatives, and challenges

Carbon freeMaterials
RE-made Parts
Recycledmaterials-madeDevices

Green ×Innovation
Lets’ power good
together with green"Lumada-ready"
Products

IoT Platform© Hitachi, Ltd. 2021. All rights reserved.

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Today’s Key Messages

1. Why we aim for net zero?
To contribute our society

2. What we aim for?
To become a climate change innovator

3. How we aim for our targets?
To share, learn, grow together© Hitachi, Ltd. 2021. All rights reserved.

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END
Climate Change Innovators within the Hitachi Value-chain

November 2021
Yoshiaki Kagata
Hitachi, Ltd.
CPO (Chief Procurement Officer)© Hitachi, Ltd. 2021. All rights reserved.

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