Introduction

Management

Social Innovation

Environmental

SocialGovernanceManagement
CEO’s Message
Chief Sustainability Officer’s Message

CEO’s Message

GRI 2-22

Hitachi’s Social Innovation

Hitachi Group Identity

At Hitachi, we work with our customers towards creating a

Sustainability Management

sustainable society by utilizing data and technology, andEngagement and Initiatives

focus on Social Innovation Business that supports people’squality of life. After experiencing the management crisis inExternal Assessments and Awards

the wake of the Lehman Shock, Hitachi focused on Social
Innovation Business as our single purpose, to solve social
issues together with our customers through unique technologies that combine our strengths in IT, OT, and Products;
and we have since continued to reform our business

Creating a sustainable
society through social
innovation together withstakeholders­portfolio to become a global leader in bringing transformation to society.
Under our Mid-term Management Plan 2024, whichstarted in 2022, we are committed to ensuring sustainablegrowth. To realize a sustainable society, we must expand ourSocial Innovation Business in various fields and create economic, environmental, and social value through three transformation drivers – Digital, Green, and Connective – thathave significant impact on society and industry. For economic value, we aim to achieve growth in Earnings Per Shareand Cash Flow Per Share by increasing the ratio of theLumada*1 business globally, which is a customer co-­creation
framework of a Social Innovation Business that leverages
digital technologies. For environmental value, we aim to contribute to an annual reduction of 100 million metric tons ofCO2 emissions as a Group, through cross-­sector collaboration. As for social value, we will respect the planetary bound-

President & CEOHitachi, Ltd.

Keiji Kojima

aries and aim to improve people’s well-being, with Powering
Good as a guiding principle to our activities.

*1 Lumada: Solutions, services, and technologies that leverage Hitachi’s digitaltechnology and are offered to customers to accelerate the digitization ofcustomers’ businesses.

Assurance

Hitachi Sustainability Report 2023

005

Introduction

Management

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

006

Management
CEO’s Message
Chief Sustainability Officer’s Message
Hitachi Group Identity

Good is like a guiding principle for Hitachi, that I hold dear,

Initiatives for Human Capital Vital toSocial Innovation

Sustainability Managementand which goes hand in hand with the slogan, Inspire theSecuring global human capital is a critical topic for us as we

Engagement and Initiatives

Next. For example, I believe that the rapid evolution of gener-strive to realize social innovation on a global scale.

External Assessments and Awards

As we shift into a sustainable growth mode, Powering

ative AI will require us humans to improve our ability to dis-Hitachi has a global network and a strong foundation forcern what is good. As we constantly take actions and takeproviding solutions and products to customers around theon new challenges, and inspire the world through our Socialworld. In recent years, we’ve had the pleasure to welcome

Innovation Business (Inspire the Next) to make progress, wemany new talented people from ABB’s power grids businessmust never forget the ability to tell what is good, or in otherand GlobalLogic through Mergers & Acquisitions (M&A).

words, the guiding principle of Powering Good.

Bringing together the capabilities of this diverse group ofRegarding our approach on “good,” to respect planetary

people with different backgrounds and expertise, and work-boundaries, we have set ourselves a goal to achieve carbon

ing together as One Hitachi, enables us to understand theneutrality across our value chain by fiscal year 2050, underneeds and issues of our customers around the world, and tothe Hitachi Environmental Innovation 2050, a set of long-term

innovate to realize a sustainable society.

environmental targets. We would like to bring value to ourI believe that human capital is the source of Hitachi’scustomers and society through implementing initiatives at ourstrength. In order to provide new value to customers andown business sites (factories and offices) and by significantly

society as One Hitachi and to pursue transformation andgrowing our decarbonization business that contributes to thegrowth, we have set three important goals under the Mid-

reduction of CO2 emissions through collaborative creation

term Management Plan 2024: (1) Acquisition and develop-with our customers and partners.

ment of digital talent; (2) Promotion of Diversity, Equity andAs for well-being, we are committed to influencing andInclusion (DEI); and (3) Increase employee engagement.

contributing towards creating a sustainable society, to ensure

Through our M&A, we have strengthened our digital capabil-

health and wellbeing for all and to sustain a thriving world fority by leveraging on GlobalLogic’s recruitment and develop-everyone. By making further progress in our internal andment methods, while also broadening our DEI and harnessing

external efforts, it is our vision to support a 100 year lifespan

the diverse talents. In addition, our employee engagement

through innovation.

score has also improved. We aim to achieve even greater
heights, so that our employees will have a growth mindset as
One Hitachi.

Introduction

Management

Social Innovation

Environmental

SocialGovernanceManagement
CEO’s Message
Chief Sustainability Officer’s Message

Evolving Sustainable Management andGovernance that Support Growth

A Message to Stakeholders

Hitachi Group Identity
Sustainability Management

In developing our Mid-term Management Plan 2024, wesocial issues, built together with customers and stakeholders.

Engagement and Initiatives

envisioned how the earth, society, and people living in theAs a company that promotes Social Innovation Business,year 2050 would look like and our aspirations on how we

Hitachi values dialogue and collaboration with a diverse range

want it to look like; taking a back casting approach, weof stakeholders, including customers, shareholders/investors,

identified what we need to do today, as well as what wegovernments, municipalities, academia, and research institu-

need to address in the medium to long term. To promotetions. We receive a great deal of input from young people

sustainable management, we identified six materiality topics

who will lead the next generation in particular, as they are

and set relevant targets against each. Progress against

highly environmentally and health-conscious.

External Assessments and Awards

Hitachi’s more than 110-year history is a series of solving

these targets and new initiatives are discussed in the Senior

These stakeholders are also innovation partners for

Executive Committee and the Board of Directors meetings.

Hitachi with whom we work together to solve social issues.

Evolution of governance is essential to sustainable

Nowadays, many of our customers are taking on the chal-­management. The members of our Board of Directors arelenge of solving social issues. Therefore, I feel like we are inindispensable in bringing important issues to light and wean environment where we can truly engage in Social

had countless discussions in formulating the Mid-term

Innovation Business, and it is very encouraging to see theManagement Plan 2024. We will develop our sustainablebirth of new Social Innovation Businesses as we work dili-management further, through continuous discussions withgently together with our customers to solve social issues.

our Board members under the sustainable growth mode.

To meet our stakeholders’ expectations, Hitachi will con-Also, in order to improve corporate value through moretinue to grow and deliver innovation to our customers aroundrobust sustainability management, we amended the execu-

the world and society, with our diverse team full of talent

tive compensation system in April 2023, and introduced newworking together across business domains and areas ofevaluation criteria on sustainability based on our materiality.

responsibility, with a One Hitachi mindset.

To grow sustainably as a company, we must be recognized
as a sustainable company. It is important that we keep oureyes on the future and contribute to society over the medium
to long term and give back to our stakeholders. The amendment reflects our strong desire to share this intention at themanagement level. By implementing such mechanism, weaim to further advance our sustainable management.

Assurance

Hitachi Sustainability Report 2023

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