Introduction

Management

Social Innovation

Environmental

Environmental

Environmental Data

Environmental

GHG Emissions Throughout the Value Chain

Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceCalculating GHG Emissions Throughout the Value Chain (Fiscal 2022)
Hitachi calculates greenhouse gas (GHG) emissions throughout the value chain in conformance

Achieving a Resource-Efficient Society

with GHG Protocol standards. This gives us a good grasp of emission hotspots in our value

Achieving a Harmonized Society with Nature

chain with which we can establish effective targets and reduction measures. Energy-related CO2

Procurement of
Raw Materials and Parts

and services we sell. We thus believe that we can make a major contribution to decarbonization

Environmental Load from Operations

through our businesses by giving priority to enhancing the efficiency and energy-saving features

An extremely high share of our value chain emissions comes from the use of the productsof our products and services.

Scope 3
Downstream

services

2 Capital goods
Construction companies, etc.

0.2

and distribution

Shipping companies

Scope 2

Direct emissions from in-house fuel use
and industrial processes

Indirect emissions from production ofelectricity and heat purchased by thecompany240.22Mt-CO e [89.2%]
2

Mt-CO2e

%

0.0%

0.0%

10 Processing of sold products

Scope 211 Use of sold products

Energy-related
indirect emissions
Indirect emissions fromproduction of electricity andheat purchased by thecompany

0.4

0.0%

%

Product end users

89.1%

12 End-of-life treatment of soldproducts

Waste treatment companies

0.1%

13 Downstream leased assets
Users of leased assets

0.0%

14 Franchises

Scope 1Other indirect emissions not covered by
Scope 1 and 2 (Emissions by other entities
related to the company’s activities)

and distribution

Shipping companies

Processors of intermediate products

4 Upstream transportation

269.24061

9 Downstream transportation

0.5%

3 Fuel- and energy-­related

Extraction companies, etc.

Direct emissions fromin-house fuel use andindustrial processes

9.6%

activities not included in
Scope 1 and 2

Environmental Accounting

Scope 3: Downstream

Transport, Use,
Waste Disposal/Recycling

Scope 1

Suppliers, etc.

Total greenhousegas emissions

Production

Direct emissions

gases, making it all the more important to focus on CO2 reduction efforts.

2

Hitachi Sustainability Report 2023

Upstream
1 Purchased goods and

0.49Mt-CO e [0.2%]

Assurance

Scope 3

accounts for almost all of Hitachi’s GHG emissions, with there being negligible releases of other	GHG Emissions Throughout the
Value Chain
Environmental Management Data

Governance

GRI 302-2/305-1/305-2/305-3/305-4/305-5

Achieving a Decarbonized Society

Environmental Data

Social

1.08Mt-CO e [0.4%]
2

5 Waste generated inoperations

0.0
 0.0

Waste treatment companies
6 Business travel

Transportation companies, etc.
7 Employee

Scope 3: Upstream
Other indirect emissions not covered by
Scope 1 and 2 (Emissions by other entities
related to the company’s activities)

27.45Mt-CO e [10.2%]

commutingTransportation operations, etc.

0.1

Franchise members%

15 Investments
Investment destinations

0.0%

%

%

8 Upstream leased assets
Leasing companies
Included in Scope 1 and 22In-house: Within the scope of the company’s organizational boundaries. In principle, all business activities of the company itself
and activities within or controlled by its consolidated subsidiaries.
Upstream: In principle, activities related to products and services that are purchased.
Downstream: In principle, activities related to products and services that are sold.

Introduction

Environmental

Management

Social Innovation

Environmental

Advancing Our Environmental Vision andLong-Term Environmental Targets

Environmental Load from Operations
Environmental Management Data
Environmental Accounting

Description

ReportingBoundary

Percentage(%)

Emissions (Mt-CO2e)

100.0

Total Scope 1 and 2

Hitachi Group

1

1.56*

0.6

Direct emissions from in-house fuel use and industrial processes

Hitachi Group

0.49

0.2

Indirect emissions from production of electricity and heat purchased by the company

Hitachi Group

1.08

0.4

Hitachi Group

267.67

99.4

Scope 1*2

Achieving a Decarbonized Society	GHG Emissions Throughout the
Value Chain

062

269.24

Scope 2*3

Environmental Data

Hitachi Sustainability Report 2023

Hitachi Group

Direct emissions

Achieving a Harmonized Society with Nature

Assurance

Total Scope 1, 2, and 3

Environmental GovernanceAchieving a Resource-Efficient Society

Governance

Detailed Data on GHG Emissions Throughout the Hitachi Value Chain (Hitachi Group, Fiscal 2022)
Category

Environmental

SocialEnergy-related indirect emissions
Scope 3 Total*4

Scope 3 Upstream (other indirect emissions) upstream
1 Purchased goods and services

Emissions from the resource extraction stage to the manufacturing stage, including raw materials, parts, supplied products,
and sales

25.86

9.6

2 Capital goods

Emissions generated in the construction, manufacture, and shipping of the company’s own capital goods, such as equipment,
devices, buildings, facilities, and vehicles

1.22

0.5

3 Fuel- and energy-related activities
not included in Scope 1 or Scope 2

Emissions from procuring the fuel necessary for electricity and other energy production, including resource extraction, production, and shipping

0.10

0.0

4 Upstream transportation anddistribution

Emissions from the distribution of raw materials, parts, products supplied, and sales prior to the delivery of materials to thecompany, as well as other distribution activities of products for which the company bears the expense

0.03

0.0

5 Waste generated in operations

Emissions from the transportation, disposal, and treatment of waste generated from the company’s operations

0.06

0.0

6 Business travel

Emissions generated from the fuel and electricity used by employees for business travel

0.05

0.0

7 Employee commuting

Emissions generated from the fuel and electricity used by employees commuting

0.13

0.0

8 Upstream leased assets

Emissions from the operation of assets leased by the company, excluding those counted in Scope 1 and 2

Included in Scope 1 and 2—

0.0

Hitachi Group

Scope 3: Downstream (other indirect emissions)
9 Downstream transportation anddistribution

Emissions from the transportation, storage, loading and unloading, and retail sales of products

0.12

10 Processing of sold products
11 Use of sold products*6
12 End-of-life treatment of soldproducts sold*6

Emissions from the transportation, waste disposal, and treatment of products by end users, such as consumers and businesses

13 Downstream leased assets
14 Franchises
15 Investments

Emissions by downstream companies during the processing of intermediate products

5

N/A*

—

Emissions from the use of products by end users, such as consumers and businesses

239.85

89.1

0.18

0.1

Emissions from the operating of assets owned by the reporting company as the lessor, which are leased to other entities

0.02

0.0

Emissions by franchises under Scope 1 and 2

N/A—

Emissions related to the management of investments

0.05

0.0

Hitachi Group*1 FY2022 CO2 emissions of energy-related companies and automotive business companies included in the scope of consolidation since FY2020 are included in the figures above. Significant decrease due to deconsolidation of materials-related and construction
machinery-related companies.
*2 Including SF6, PFC, HFC, N2O, NF3, and CH4. The gas and fuel oil conversion factors are based on the List of calculation methods and emission factors used in the Greenhouse Gas Emissions Calculation, Reporting and Publication System.
*3 CO2 emissions from electricity consumption is calculated using a market-based calculation method. CO2 electrical power conversion factors: We used adjusted conversion factors for individual power businesses based on the Act on Promotion of Global WarmingCountermeasures in Japan. In China, we used the average emissions factor published by the government for the national power grid. For other countries, we used the latest values for each fiscal year supplied by the International Energy Agency (IEA) for individual
countries and by power supply companies.
*4 FY2022 CO2 emissions of energy-related companies included in the scope of consolidation since FY2020 are included in the figures above. The FY2022 volume for automotive business companies are not included in the figures above, as these are intermediate products.
*5 Cannot be determined due to insufficient information about the processing.
*6 CO2 emissions per unit is based on the Inventory Database for Environmental Analysis (IDEA), developed by the National Institute of Advanced Industrial Science and Technology (AIST) and the Japan Environmental Management Association for Industry (JEMAI).

Introduction

Management

Social Innovation

Environmental

Environmental

Environmental Load from Operations

Environmental

Detailed Data on Resource Input and Environmental Load Output

Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceSocialGovernance063

Hitachi Sustainability Report 2023

Assurance

GRI 301-1/301-2/302-1/302-4/303-1/303-2/303-3/303-4/303-5/305-4/305-5/305-7/306-1/306-2/306-3/306-4/306-5

Energy Inputs and GHG Emissions During Business Operations
The following is an outline of the energy consumed during Hitachi’s business operations and the part of our environmental load consisting of greenhouse gas (GHG) emissions.

Achieving a Decarbonized Society
Achieving a Resource-Efficient Society

Energy Inputs

Achieving a Harmonized Society with Nature

Environmental Data
GHG Emissions Throughout the Value Chain

	Environmental Load from Operations

Energy Inputs
RenewableenergyElectricity

Environmental Management Data
Environmental Accounting

Non-renewableenergyReportingBoundary

Unit

Hitachi GroupGWh

FY2018FY201914,605

FY2020

FY2021

FY2022*1

12,427

9,674

9,957

5,387
706

Hitachi Group

GWh

7

18

138

193

(Self-generated amount)Hitachi Group

GWh

7

18

22

34

25

(Purchases: Includes non-fossil certificates)

Hitachi Group

GWh

—

—

116

159

681

Total

Electricity

Electricity

Hitachi Group

GWh

6,020

5,992

4,498

4,584

Fuel and heat*2

City gas

Hitachi GroupGWh (billion m3)

2,236 (0.18)

1,933 (0.15)

1,339 (0.11)

1,373 (0.11)

767 (0.06)

LPG, LNG

Hitachi GroupGWh (kt)

3,741 (251)2,015 (150)

1,646 (111)

1,705 (118)

1,217 (82)

Other natural gas

Hitachi GroupGWh (billion m3)

58 (0.005)

258 (0.02)

276 (0.02)

319 (0.03)

261 (0.02)

Fuel oil (heavy oil, kerosene, etc.)

Hitachi GroupGWh (ML)930 (87)792 (75)653 (61)495 (47)

197 (19

Solid fuel (coke)

Hitachi GroupGWh (kt)

1,528 (188)1,333 (162)

1,111 (137)

1,278 (156)

Steam, hot water and cold water

Hitachi GroupGWh (PJ)

85 (0.31)

86 (0.31)

13 (0.05)

10 (0.04)*1 Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.
*2 Used 3.6MJ/kWh in the conversion from calorific value.

2,218

)
—

21 (0.08)

Introduction

Environmental

Total greenhouse gases*2

Advancing Our Environmental Vision andLong-Term Environmental Targets

Energy-related CO2 emissions

Environmental GovernanceAchieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature

Environmental Data
GHG Emissions Throughout the Value Chain

	Environmental Load from Operations
Environmental Management Data
Environmental Accounting

Social Innovation

Environmental

SocialGovernance

Hitachi Sustainability Report 2023

Assurance

064

Greenhouse Gases Emitted

Environmental

Achieving a Decarbonized SocietyManagement

GHG emissions other thanenergy-related CO2

Reporting BoundaryUnit

FY2018FY2019FY2020

FY2021

FY2022*1*3

Hitachi Group

kt-CO2e

5,026

4,415

3,313

3,412

1,565

Total

Hitachi Group

kt-CO2

4,973

4,374

3,296

3,384

1,538

(Direct emissions)

Hitachi Group

kt-CO2

1,869

1,489

1,202

1,245

459

(Indirect emissions)

Hitachi Group

kt-CO2

3,104

2,885

2,094

2,139

1,079

Total

Hitachi Group

kt-CO2e

53

41

17

28

26.7

Sulfur hexafluoride (SF6)

Hitachi Group

kt-CO2e

35

24

11

20

22.0

Perfluorocarbons (PFC)

Hitachi Group

kt-CO2e

5

4

0

2

1.3

Hydrofluorocarbons (HFC)

Hitachi Group

kt-CO2e

3

3

1

3

2.4

Dinitrogen monoxide, nitrogen trifluoride,methane (N2O, NF3, CH4)

Hitachi Group

kt-CO2e

3

2

2

3

0.9

CO2 from non-energy sources

Hitachi Group

kt-CO2e

7

8

3

0

0.2

Note: CO2 emissions from electricity consumption is calculated using a market-based calculation method. CO2 emission coefficients for Japan (including power plants) are the latest adjusted emission coefficients for each electric utility based on the Act on Promotionof Global Warming Countermeasures. For China, we use the average emissions factor for the national power grid published by the government. For countries other than Japan and China, we use the latest IEA emission factors by country for each fiscal year
and the latest factors provided by power supply companies.
Note: The gas and fuel oil conversion factors are based on the List of calculation methods and emission factors used in the Greenhouse Gas Emissions Calculation, Reporting and Publication System.
*1 Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.
*2 Total GHGs: Scope 1 and 2 total*3 FY2022 CO2 emissions of an energy-related company and auto parts-related companies included in the scope of consolidation since FY2020 are included in the figures.

Introduction

Environmental

Management

Social Innovation

Environmental

SocialGovernance065

Hitachi Sustainability Report 2023

Assurance

Raw Material Inputs and Waste and Valuables Generation During Business Operations
The following is an outline of the raw materials used during Hitachi’s business operations and the part of our environmental load consisting of the generation of waste and valuables.

Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceAchieving a Decarbonized Society

Raw Material Inputs
Reporting Boundary

Unit

Hitachi Group

kt

4,403

3,776

3,066

3,235

788

Total metals

Hitachi Group

kt

4,031

3,454

2,861

3,083

685

New materials

Hitachi Group

kt

1,624

1,372

1,075

909

614

Recycled materials, etc.

Hitachi Group

kt

2,407

2,082

1,786

2,175

71

Total plastics

Hitachi Group

kt

165

147

115

74

43

New materials

Hitachi Group

kt

163

143

113

72

40

Recycled materials, etc.

Hitachi Group

kt

2

4

2

2

3

Total other materials

Hitachi Group

kt

207

175

90

77

61

New materials

Hitachi Group

kt

201

173

89

76

54

Recycled materials, etc.

Hitachi Group

kt

6

2

1

1

7

Reporting Boundary

Unit

Total waste and valuables generated

Hitachi Group

kt

1,384

1,302

1,061

1,111

356

Waste reduction

Hitachi Groupkt

94 (5.6)

101 (17.5)

75 (9.8)

74 (10.5)47 (23.1)

Reuse

Hitachi Groupkt

1 (0.0)5 (2.2)35 (11.4)

36 (18.7)

18 (6.2)

Materials recycled

Hitachi Groupkt

1,044 (25.6)

919 (25.3)

740 (17.6)

784 (19.3)

256 (16.7)

Thermal recovery

Hitachi Groupkt

13 (1.4)

21 (4.9)

11 (5.4)

13 (6.5)

16 (4.6)

Landfill

Hitachi Groupkt

232 (3.7)

256 (6.1)

200 (4.9)

204 (5.7)

20 (6.5)

Nonhazardous (hazardous)

Hitachi Groupkt

1,348 (36)1,246 (56)1,012 (49)1,050 (61)299 (57)

Total amount of raw materials
Raw materials

MetalsAchieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature

Environmental Data

Plastics

GHG Emissions Throughout the Value Chain

	Environmental Load from Operations
Environmental Management Data

Other materials

Environmental Accounting

FY2018FY2019FY2020

FY2021

FY2022*1

Waste and Valuables Generated

RecycleFY2018FY2019Note: Figures in parentheses are the generation of waste defined as hazardous under the Basel Convention.
*1 Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.
*2 Fiscal 2022 generation of waste and valuables of an energy-related company and auto parts-related companies that became consolidated subsidiaries in fiscal 2020 are included in the figures above.

FY2020

FY2021

FY2022*1*2

Introduction

Environmental

Management

Social Innovation

Environmental

Water Inputs and Effluent Discharges During Business Operations

SocialGovernance

Hitachi Sustainability Report 2023

Assurance

066

GRI 2-27

The following is an outline of the total amount of water resources used during Hitachi’s business operations and the part of our environmental load consisting of effluent discharges.

Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Water Input

Environmental GovernanceTotal water usage*1

Achieving a Decarbonized Society

Surface water

Achieving a Resource-Efficient Society

Reporting BoundaryUnit

FY2018FY2019FY2020

FY2021

FY2022*2*3

Hitachi Group

Million m3

37.02

36.41

26.35

26.03

14.23

Tap water (water for drinking and other household uses)

Hitachi Group

3

Million m

7.61

7.95

5.10

5.23

5.53

Industrial water, river water

Hitachi Group

3

Million m

16.63

15.58

12.62

12.47

5.17

3

Achieving a Harmonized Society with Nature

Groundwater

Hitachi Group

Million m

12.74

12.84

8.60

8.32

3.52

Environmental Data

Rain water

Hitachi Group

3

Million m

0.01

0.02

0.01

0.01

0.01

Recycled water (recycled from the wastewater of other organizations)

Hitachi Group

Million m

0.03

0.02

0.01

0.01

0.00

Reporting Boundary

Unit

Total water effluents discharged

Hitachi Group

Million m3

34.10

33.41

23.25

26.03

14.23

Public water

Hitachi Group

3

Million m

22.44

22.46

15.29

15.40

8.26

Sewerage

Hitachi Group

Million m3

8.18

7.74

5.44

5.31

3.76

Underground infiltration, evaporation, etc.

Hitachi Group

Million m3

3.48

3.21

2.52

5.32

2.21

Water quality

BOD (biochemical oxygen demand)

Hitachi Group

t

392

232

204

156

77

COD (chemical oxygen demand)

Hitachi Group

t

1,657

400

406

301

137

GHG Emissions Throughout the Value Chain

3	Environmental Load from Operations
Environmental Management Data
Environmental Accounting

Water Effluents Discharged
FY2018FY2019FY2020

FY2021

FY2022*2*3*1 Figures through FY2021 represent water usage in manufacturing processes and general daily usage at manufacturing sites, as well as general daily usage in locations other than manufacturing sites. Figures for FY2022 represent water usage in manufacturing
processes and daily general usage at manufacturing sites.
*2 FY2022 water usage of an energy-related company included in the scope of consolidation since FY2020 is included in the reported figures above. FY2022 water usage of auto parts companies included in the scope of consolidation since FY2020 is not includedin the reported figures above, but amounted to 412 million m3.
*3 Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.

Introduction

Environmental

Management

Social Innovation

Environmental

Inputs and Discharges of Chemical Substances During Business Operations

SocialGovernance

Hitachi Sustainability Report 2023

Assurance

067

GRI 2-27

The following is an outline of the chemical substances handled during Hitachi’s business operations and the part of our environmental load consisting of chemical substance discharges.

Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceChemical Substances Handled

Total chemical substances handled*1

Chemical substances handled

Reporting Boundary

Unit

Hitachi Groupkt

Reporting BoundaryUnit

FY2018FY201988.29

FY202083.68

FY202147.49*2

FY2022*3

26.20

1.70

Achieving a Decarbonized Society
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature

Environmental Data
GHG Emissions Throughout the Value Chain

	Environmental Load from Operations
Environmental Management Data
Environmental Accounting

Chemical Substances Discharged
FY2019FY2020

FY2021

FY2022*3

Hitachi Group

kt

5.55

4.98

3.27

3.50

1.39

Chemical substances discharged

Hitachi Group

kt

4.35

3.88

2.37

2.50

1.09*4SOx (sulfur oxides)

Hitachi Group

kt

0.3

0.3

0.2

0.2

0.01

NOx (nitrogen oxides)

Hitachi Group

kt

0.9

0.8

0.7

0.8

0.29

Total chemical substances discharged
Chemical substances discharged

FY2018*1 We selected 50 substances from the perspective of hazards and atmospheric emissions.
*2 Significant decrease due to deconsolidation of a materials-related company.
*3 Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.
*4 Approximately 100% of emissions classified as VOCs in FY2022.

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Total

Achieving a Resource-Efficient Society

GHG Emissions Throughout the Value Chain
Environmental Load from Operations

	Environmental Management Data
Environmental Accounting

Environmental

SocialGovernance

Hitachi Sustainability Report 2023

Assurance

068

Number of ISO 14001 Certified Companies (Hitachi Group, as of March 2023)

Achieving a Decarbonized Society

Environmental Data

Social Innovation

Environmental Management Data

Environmental GovernanceAchieving a Harmonized Society with NatureManagement

Reporting Boundary

Unit

Hitachi Group

Companies

FY2020

FY2021

FY2022*1

202

185

281

Japan

85

66

66

China

43

43

61

42

43

50

North America

10

9

13

Europe17

15

52

Other regions

5

9

39

ASEAN, India, and other Asian regions

Hitachi Group

Companies

Note: Companies with at least one certified business site.
*1 Significant changes in the figure, resulting from both the increase caused by the consolidation of an energy-related company and the decrease caused by the deconsolidation of materials-related and construction machinery-related companies.

Number of Regulatory Violations and Complaints
Reporting Boundary
Regulatory violations

Unit

Water quality
Air quality
Waste materials

Hitachi Group

Cases

Other (equipment registration, etc.)
Complaints

Hitachi Group

Cases

FY2018FY2019FY2020

FY2021

FY2022

4

4

5

2

0

2

0

0

0

2

3

0

4

3

0

4

1

1

3

0

3

5

3

3

0

Introduction

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

Environmental Accounting

Environmental

SocialGovernance

Hitachi Sustainability Report 2023

Assurance

069

GRI 201-1

Environmental Protection Costs

Total
Expenses

Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature

Environmental Load from Operations
Environmental Management Data

Unit

Hitachi Group

Billions of yen

FY2018FY2019FY2020

FY2021

FY2022*2

94.16

105.71

86.62

79.97

57.21

Business area

23.57

22.62

19.14

19.56

6.30

Upstream/Downstream

Green procurement expenses, recovery and recycling of products andpackaging, recycling expenses

0.68

0.68

0.62

0.64

0.08

Administration

Labor costs for environmental management and the implementation andmaintenance of environmental management systems

6.72

4.98

5.88

5.40

3.06

Research and development

Costs of research and development and product designs to reduce theenvironmental burden caused by products and production processes

61.86

77.01

60.64

53.79

47.55

Social activities

Planting, beautification, and other environmental improvement costs

0.93

0.25

0.22

0.26

0.11

Environmental remediation

Environmental mitigation costs, contributions, and charges

0.40

0.17

0.12

0.32

0.11

Environmental Data
GHG Emissions Throughout the Value Chain

Reporting Boundary

Maintenance costs for equipment with low environmental loads,
depreciation, etc.*1

Achieving a Decarbonized Society	Environmental Accounting

Social Innovation

Hitachi Group

Billions of yen*1 Equipment depreciation costs are calculated using the straight-line method over five years.
*2 An energy-related company included in the scope of consolidation since FY2020 is not included in the reported cost figures for FY2022. Significant decrease due to deconsolidation of materials-related and construction machinery-­related companies.

Environmental Protection Effects
Economic Effects*3
Major FY2021 Activities
Total
Net income effects

Recovering value from waste by sorting and recycling

Cost reduction effects

Installing high-efficiency equipment (lighting, power supply, etc.)

Reporting Boundary

Unit

Hitachi Group

Billions of yen

Hitachi Group

Billions of yen

FY2018FY2019FY2020

FY2021

FY2022*4

16.05

18.62

14.28

19.20

11.95

8.35

12.42

9.66

15.15

7.89

7.70

6.20

4.62

4.05

4.06

*3 Economic effects include the following:
Net income effects: Real income from the sale of valuable materials and environmental technology patents.
Cost reduction effects: Reductions in electricity, waste treatment, and other expenses through activities that reduce environmental loads.
*4 An energy-related company included in the scope of consolidation since FY2020 is not included in the reported cost figures for FY2022. Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.

Environmental Liability
As the amounts that we can reasonably project as future environmental liabilities as of end of March 2023, we recorded 4.2 billion yen in costs for the disposal of waste containing PCBs and 1.1 billion
yen to clean up contaminated soil.