Introduction
Materiality

Mid-term Management Plan 2024

Value Creation

Transformation

Corporate Initiatives for Sustainability GrowthBusiness Strategies

Human Resources Strategy

Financial Strategy

Governance
CFO Message

DataHitachi Integrated Report 2023

Sector Strategies

Materiality
Towards a Sustainable Society: Hitachi’s Materiality
Hitachi practices sustainable management, which positions sustainability as the core of its
business strategy, and is working toward realizing a sustainable society through the Social
Innovation Business.
In the Mid-term Management Plan 2024, we declared our aspiration of “supporting people’squality of life with data and technology that fosters a sustainable society.” While some of the nine
planetary boundaries
have already been exceeded, Hitachi is aware of each one and works toprotect the planet and maintain society. Hitachi aims to solve social challenges to realize a futurethat balances protection of the planet and people’s individual wellbeing.

The Materiality Analysis Process
With a comprehensive understanding of social issues, Hitachi has identified six material topics
and 15 sub-material topics based on an analysis of risks and opportunities from sustainability
perspectives as well as feedback from stakeholders.
Based on these material topics, Hitachi is monitoring measures as well as discussing the progress,
and new initiatives for each materiality at the Senior Executive Committee and the Board of Directors.
Comprehensive understanding of social issues
STEP

1

STEP

2

STEP

3

STEP

4

• Identifying social issues from the SDGs, GRI standards, SASB standards, ESG external
evaluation items, etc.

Ranking issues by priority from Hitachi’s point of view

Materiality

Environment
Contributing to decarbonization
and resource circulation

Resilience
Contributing to the maintenanceand rapid recovery of social
infrastructure

Safety & Security
Contributing to safe and securesociety-building

Quality of Life
Contributing to physicaland mental wellness and aprosperous life

• Identifying innovation areas where Hitachi should contribute based on backcasting from 2050
• Analyzing risks and opportunities

Ranking issues by priority from stakeholders’ point of view

Business with Integrity• Evaluating material topics based on assessments and comments from investors, NGOs,and ESG evaluation organizations• Evaluating through dialogue with investors, NGOs, and sustainability experts

Adhering to ethical standards
as well as respect humanrights

Identifying Materiality

Sustainability Strategy Promotion Structure
Under the leadership of Lorena Dellagiovanna, the Chief Sustainability Officer, Hitachi ispromoting its sustainability initiatives on a group-wide basis. For details, please refer to page 15of the Sustainability Report.

Diversity, Equity andInclusion (DEI)
Contributing to a society where
everyone can shine

Our aspirations
As a climate change innovator, Hitachi will contribute to therealization of a carbon neutral society with Hitachi’s superior green
technologies, by providing value to customers in all businesssegments. We will also promote resource efficiency toward thetransition to a circular economy.
Hitachi helps people live safely by contributing to the rapid recovery
of supply chains and the maintenance of social infrastructure byproviding system solutions that can respond immediately to risks,such as natural disasters, pandemics, and cyberattacks.
Hitachi contributes to the realization of comfortable and active
lifestyles for people by providing solutions in the building, mobility,and security fields that support urban development for safe andsecure living.
Hitachi is harnessing our healthcare and digital technologies to help
more people develop bonds and enjoy healthier, more prosperous
lives. We will also continue to pursue the happiness and wellbeing of
our employees, as we believe that their happiness and wellbeing is
the ground on which Hitachi’s future will flourish even more fully.
As a Group responsible for social infrastructure around the world,
Hitachi will manage its business with honesty and integrity, trusted
by society, respect human rights, and provide a safe workplace. We
will reflect a system of ethical and responsible business conduct,
including respect for human rights, in our business activities anddecision-making standards, working together with our employees,
collaborative partners and communities throughout the supply chain.
Hitachi has a place for everyone, welcoming differences incolleagues’ background, age, gender, sexuality, family status,disability, race, nationality, ethnicity, and religion.
At Hitachi, we treat everyone fairly, recognizing differences toallow everyone to perform at their full potential.
We respect and value these and other differences because only
through them we can understand our markets, create better
ideas and drive innovation.

19Introduction
Materiality

Value Creation

Mid-term Management Plan 2024

Business Strategies

Transformation

Corporate Initiatives for Sustainability Growth

Human Resources Strategy

Financial Strategy

Governance
CFO Message

Data

Hitachi Integrated Report 2023

Sector Strategies

15 Sub-Material Topics and Targets
Material topics

Sub-material topics
Decarbonization

Environment
Contributing todecarbonization andresource circulation

Resource circulation

Harmonize with nature

Resilience
Contributing to themaintenance and rapidrecovery of social
infrastructure

Safety & Security
Contributing to safe
and secure societybuilding

Quality of Life
Contributing to physicaland mental wellness
and a prosperous life

Business withIntegrity
Adhering to ethicalstandards
as well as respecthuman rights

Diversity, Equityand Inclusion(DEI)
Contributing to asociety where everyone
can shine

Targets/KPIs

FY2022 Progress

Carbon neutrality throughthe value chain• FY2030: Achieve carbon neutrality in business sites (factories and offices) 40% of total CO2 reduction rate at factories
and offices (compared to FY2010)• FY2050: Achieve carbon neutrality through the value chain

Contributing to CO2 reduction
through business• FY2024: 100 million metric tons of CO2 avoided emissions per year of CO avoided emissions
2Transition to a circular economy• FY2024: Full application Eco-Design for all newly developed products• FY2030: Zero*2 waste to landfill*3 from manufacturing sites

357 products identified as subject ofEco-Design
199 sites (58%) achieved zero waste to landfill

Effective use of water• Reduction rate in water use per unit (compared to FY2010) FY2024: 24%, FY2050: 50%

27% reduction in water use per unit

126.1 million metric tons per year*1

Sustainability Report 2023 P.55-57

Minimize impact on natural capitalStrengthening supply chains Build flexible supply chains capable of responding to disasters and risks
Maintaining social
infrastructure

Resilience and sophisticationof maintenance through DX ofsocial infrastructure

Safe and secure urban
environments

Safe and comfortabletransportation

Ensuring cyber security

Secure cybersecurity for social infrastructure and business systems

Connected andprosperous society

Increase healthy life expectancy
and wellbeing

Business
CaseBusiness
CaseBusiness
Case• Contribute to stable energy supply through substation management toapprox. 1.9 billion people*4
Sustainability Report 2023
• Contributed a total of 15 billion people annually through railway services*4 P.22-24• Blood tests and other physical exams: 20 billion tests/year*4

Build a trustful relationshipwith others• Users of happiness service: 90 thousand in FY2024

10.0 thousand users of happinessservice

Employee happiness

More flexible working styles toincrease engagement• Employee engagement (positive response rate): FY2024 71.0%*5

69.5% employee engagement(positive response rate)

Business ethics andcompliance

Encourage employees to apply
ethical standards in day-to-day work

• Achieve a score of at least 60 (out of 100) in FY2023*6, the first year of resultsfrom Ethical Culture & Perceptions Assessment, improving it every year

Achieved a score of 76.5 (Conductedassessment in June 2023)

Respect for human rights

Promote human rights due diligence andstrengthen monitoring of procurement
partners for responsible procurement,including human rights• FY2023: Conduct human rights risk assessments for all BUs (10 BUs) and majorGroup companies• FY2024: Respond to human rights risks

Conducted human rights risk
assessments for certain Groupcompanies

Occupational safety

Creating a safe working
environment without accidents• Zero fatal accidents

5 fatal accidents

Safe and secure products
and services

Ensure products and services safety while putting customers first

Sustainability Report 2023
P.115-117

Strengthen diversity inmanagement• Ratio of female and non-Japanese executive and corporate officers:
FY2030 30% respectively

11% of female and20% of non-Japanese executive
and corporate officers*7

Acquiring and developing digital talent• FY2024: 97,000 persons*883,000 persons• Nurture and empower next-generation talentParticipants in Hitachi Young Leaders Initiative 30people 405 people cumulative*9Participants in Hitachi High-Tech science education
support activities
62,487 people 367,362 people cumulative*10

Diverse organization that
fosters innovation

Contribution to a diverse
and equitable society

Empower DEI of society
through community relationshipprograms*1 Mid-term Management Plan 2024 three-year average *2 Less than 0.5% *3 Wherever this is compatible with local conditions and regulations *4 FY2022 results *5 Target has been raised since we achieved the initial target/KPI*6 Base year has been changed from FY2022 to FY2023 *7 Included assignment as of April 1, 2023 *8 Hitachi Astemo is excluded *9 Cumulative total since 1996 *10 Cumulative total since 1990

Relevant SDGs20