Introduction

Management

Social Innovation

Environmental

Contents
026

Environmental

027

Advancing Our Environmental Visionand Long-Term Environmental Targets

031

Environmental Governance035

Achieving a Decarbonized Society

050

Achieving a Resource-Efficient
Society

055

Achieving a Harmonized Society
with Nature

061

Environmental Data

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

025

Introduction

Environmental

Management

Social Innovation

Environmental

SocialGovernance

Hitachi Sustainability Report 2023

Assurance

026

Environmental

Environmental
Executive Summary
Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceAchieving a Decarbonized Society
Achieving a Resource-Efficient Society

Basic Concept
Hitachi’s Mission is to “contribute to society through the development of superior, original technology and products.” We seek solutions to environmental issues, which are of serious concern
to society, through our business operations and promote environmental management from a long-term perspective. Meeting society’s expectations with innovations that mitigate environmental
issues also presents major business opportunities. Hitachi’s Environmental Vision states that “Hitachi will resolve environmental issues and achieve both a higher quality of life and a sustainable
society through its Social Innovation Business in collaborative creation with its stakeholders.” To uphold this vision and work toward achieving a decarbonized society, a resource-efficient society, and a harmonized society with nature, we have established a set of long-term environmental targets looking toward 2050 and 2030 called Hitachi Environmental Innovation 2050 and havebeen promoting Group-wide environmental activities in line with our Environmental Action Plan, which is updated every three years.

Achieving a Harmonized Society with Nature
Environmental Data
Topic

Overview

Targets, KPIs, and Results

CO2 avoided emissions through products andservices
Achieving a
DecarbonizedSociety

We engage in decarbonization businesses through co-creation with customers to contribute torealize a decarbonized society. We also pursue initiatives to reduce CO2 emissions from the use of
our products and services. In addition, we strive to achieve carbon neutrality by fiscal 2030 in ourfactories and offices, and by fiscal 2050 throughout our value chain.

FY2024 Target: 100 million metric tons/year
Forecast: 126.1 million metric tons/year*1

Reduction rate of total CO2 at business sites­(factories and offices) (compared to FY2010)
FY2022 Target: 32%
FY2022 Result: 40%

Number of sites achieving zero landfill waste*2
Achieving a
ResourceEfficient
Society

To build a society that uses resources and water efficiently with customers and society, we set
a target to improve the efficiency of resources and water use within the Hitachi Group by 50%­(compared with FY2010) by fiscal 2050. We will create higher economic value using fewer resources
while pursuing production activities with a lower environmental burden.

FY2022 Target: 90 sites

FY2022 Results: 199 sites ( 58% achievement)

Reduction rate in water use per unit
(compared to FY2010)
FY2022 Target: 22%
FY2022 Results: 27%

Achieving a
HarmonizedSociety with
NatureWe classify the emission of greenhouse gases and chemical substances into the atmosphere andthe generation of waste materials in the course of our business activities as negative impact activities. Providing products and services that contribute to ecosystem preservation and undertaking
activities to preserve biodiversity and ecosystems are categorized as positive impact activities.
We are working to quantify and minimize the gap between positive and negative impacts by 2050.

*1 Three-year average during the Mid-term Management Plan 2024

*2 Pursued in assumed conformance with regulations, conditions, etc. Less than 0.5%

Reduction rate in chemical atmospheric emissions
per unit (compared to FY2010)
FY2022 targets: 5%
FY2022 results: 21%

Introduction

Management

Social Innovation

Environmental

SocialGovernance

Environmental

Advancing Our Environmental Vision and Long-Term Environmental Targets

Environmental“Environmental Vision” and “Hitachi Environmental Innovation 2050”

Advancing Our Environmental Vision andLong-Term Environmental Targets
	“Environmental Vision” and“Hitachi Environmental Innovation 2050”
Environmental Action Plan
Environmental GovernanceAchieving a Decarbonized Society
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

Taking into account the growing urgency of environmental

vision for society from a long-term perspective. In working
toward achieving this vision, we have established a set ofsociety with nature under the banner of Hitachi Environmental

TargetGRI 2-23

Environmental Vision
Hitachi will resolve environmental issues and achieve both a higher quality of life and a sustainable society
through its Social Innovation Business in collaborative creation with its stakeholders.
The aim of Hitachi’s environmental management

long-term environmental targets aimed at building a decarbonized society, a resource-efficient society, and a harmonized

Policy027

Environmental Vision and Long-term Environmental Targets: Hitachi Environmental Innovation 2050

issues in the world and the management policies, Hitachi
formulated an Environmental Vision that clearly outlines our

Hitachi Sustainability Report 2023

Assurance

Decarbonized society

Resource Efficient Society

Harmonized Society with Nature

Climate Change Mitigation/Adaptation

Saving and Recycling Resources

Preservation of Ecosystems

Innovation 2050 and are working to advance them.
The movement toward a decarbonized society is acceler-

Long-term Environmental Targets

ating both in Japan and internationally. We are seeing thedecarbonization of entire value chains and an accompanying
green transformation (GX). Hitachi set a goal to achievecarbon neutrality by fiscal 2030 in our factories and offices,and by fiscal 2050 throughout our value chain. We are currently engaged in measures to achieve these goals.
To meet our goal of Achieving a Resource-Efficient
Society, we aim to create a sustainable society, while keeping
the transition to a circular economy in mind, by improving theefficiency of water and resources use at Hitachi by 50% by
fiscal 2050 (compared to fiscal 2010 levels).
To meet our goal of Achieving a Harmonized Society with

Hitachi’s resolution looking toward 2050 and 2030

Hitachi Environmental Innovation 2050
For a decarbonized society

For a resource efficient society

For a harmonized society with nature

Achieve carbon neutrality by
FY2050 through the value chain
Reduce CO2 emissions 50%
by FY2030 (compared to FY2010)

Build a society that uses water andother resources efficiently
with customers and society

Impact on
natural capital

Efficiency in use of water/resources

Minimized

Achieve carbon neutrality
by FY2030 at business sites(factories and offices)50

FY2050%
improvement(compared to FY2010 in Hitachi Group)

Nature, we strive to minimize our impact on natural capital bykeeping a close eye on international initiatives such as theEnvironmental Action Plan

15th Conference of the Parties (COP15) to the Convention on
Biological Diversity, held in December 2022, and the Task
Force on Nature-Related Financial Disclosure (TNFD).
Hitachi’s environmental initiatives, including the achievement of these long-term environmental targets, are mandated
by the short-term Environmental Action Plan which is updated
every three years and pursued Group-wide.

Set environmental action items and targets every three years in order to achieve the long-term targets
P.035 Achieving a Decarbonized Society

P.050 Achieving a Resource-Efficient Society

P.055 Achieving a Harmonized Society with Nature

Introduction

Environmental

Social Innovation

Environmental

SocialGovernance

Progress in Reaching Hitachi Environmental Innovation 2050 Targets
TargetEnvironmental

Management

Activities

We are making progress with major Hitachi Environmental Innovation 2050 targets, as shown below. We are generally on track, andAdvancing Our Environmental Vision andLong-Term Environmental Targets

we will continue strengthening our environmental activities to achieve these targets. Regarding our long-term value chain target to	“Environmental Vision” and“Hitachi Environmental Innovation 2050”

top-tier environmental performance.

Environmental Action Plan
Environmental Governancehelp build a decarbonized society, we are developing activities which help to reduce CO2 emissions by providing products with

For a decarbonized society
Reduced CO2 Emissions at Business Sites ( Factories and offices)Achieving a Decarbonized Society
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature

Reduction rate of total CO2(compared to FY2010)

FY2022 target

FY2022 result

FY2030 target

FY2050 target

32%

40%

100% (carbon neutrality)(Maintain 100%)

Environmental Data
For a resource efficient society
Enhanced Efficiency in the Use of Waste and Valuable Generation at Business Sites (Factories and Offices)

Reduction rate in waste andvaluables generation perunit (compared to FY2010
Hitachi Group)

FY2022 target

FY2022 result

FY2030 target

FY2050 target

14%

16%

―

50% reduction

Enhanced Efficiency in the Use of Water at Business Sites (Factories and Offices)

Reduction rate in water use
per unit (compared to
FY2010 Hitachi Group)

FY2022 target

FY2022 result

FY2030 target

FY2050 target

22%

27%

―

50% reduction

Note: See the referenced pages for details on the figures cited.

Assurance

Hitachi Sustainability Report 2023

028

Introduction

Environmental

Management

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

029

Green Strategy
Approach

Environmental

Green Strategies for Sustainable Growth

Advancing Our Environmental Vision andLong-Term Environmental Targets

Hitachi contributes solutions to environmental issues through our Social Innovation Business. Aiming to be a Climate Change Innovator that leads the way in contributing to the decarbonization of	“Environmental Vision” and“Hitachi Environmental Innovation 2050”

the green transformation of our customers and society. By moving forward in both GX for CORE and GX for GROWTH, we will accelerate the deeper development of technology and expertise, improv-

Environmental Action Plan­society, we formulated a Green Strategy consisting of two pillars: GX for CORE, through which we accelerate Hitachi Group green transformation, and GX for GROWTH, through which we contribute to
ing the environmental value Hitachi provides on a continued basis.
The Hitachi Green Strategy contributes to the creation of decarbonized and resource-efficient societies that are harmonized with nature.

Environmental GovernanceAchieving a Decarbonized Society

The Hitachi Green Strategy

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

GX

for CORE

Combine the Two GX Strategies toCreate and Enhance Solutions• Achieve carbon neutrality of in-house production

GX

for GROWTH• Provide products and services with low

activities➞ Achieve carbon neutrality for Scope 1 and 2
by FY2030 and throughout the entire value
chain by FY2050­environmental impact➞ 100 million metric tons of CO2 avoided
emissions per year (As of FY2024)• Promote the transition to a circular economy• Use resources effectively

and contribute to ecosystem conservation
through waste reduction associated with thetransition to a circular economy➞ Improve efficiency in use of water/resources,
and promote eco-designs• Preserve ecosystems

Example: Initiatives to eliminate the useof all fossil fuels at businesssites (Italy)

Example: D evelopment of ESG
solutions for sustainability
management

Example: H
 VDC conversion plant
for the mass adoption ofrenewable energy

Introduction

Environmental
Environmental

Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental Vision” and“Hitachi Environmental Innovation 2050”

Management

Social Innovation

Environmental

SocialGovernance

Hitachi Sustainability Report 2023

Assurance

030

Environmental Action Plan
To achieve its Environmental Vision and the Hitachi Environmental Innovation 2050 long-term environmental targets, Hitachi draws up an Environmental Action Plan containing indicators and targets
for the three-year period covered by the Mid-term Management Plan and steadily promotes its implementation.

Environmental Action Plan for 2024 (Fiscal 2022–2024)
TargetActivities

	Environmental Action Plan

Hitachi pursues environmental activities under the Environmental Action Plan for 2024 (Fiscal 2022–2024) that were based on the 2024 Mid-term Management Plan. The targets set for fiscal 2022 andEnvironmental Governanceour results are as follows.

Achieving a Decarbonized Society
Achieving a Resource-Efficient Society

Environmental Action Plan for 2024
Our environmental activities and targets are updated every three years with a view to achieving our long-term environmental targets.

Achieving a Harmonized Society with Nature

Items

Environmental Data
Environmental Management

Indicators
Promote environmental human capital development

Reduce total CO2

Reduction rate of total CO2*1 (compared to FY2010)

Improve transportation energy consumption per unit (Japan)

Improvement rate of transportation energy consumption per unit
(Japan)*2 (compared to FY2020)

2%

Reduction rate of CO2 emissions per unit (compared to FY2010)

12%

A DecarbonizedSociety
Products andservices

Reduce CO2 emissions of products
and services

Promote eco-design

Factories and offices

Enhance efficiency in the use ofresources

FY2023 targets

Final FY (2024)
targets

Environmental human capital development mindful of changes in personnel
composition, including generational shifts
40%
32%
35%
50%

◆◆◆
14%

◆◆◆
15%

◆◆◆

3%

4%

13%

14%

CO2 avoided emissions

Target: CO2 avoided emissions of 100 million metric tons per year (FY2024)
Forecast: CO2 avoided emissions of 126.1 million metric tons per year*4

Environmentally conscious design assessments and LCA application rates for newly developed and designed products

Target: Full application Eco-Design for all newly developed products
FY2022 Results: 357 products identified as subject of Eco-Design

Number of sites achieving zero landfill waste*3

A HarmonizedSociety with
NatureFY2022 targets

Environmental human Promote environmental human capital
capital development development
Factories and offices

A Resource
Efficient Society◆◆◆: Achieved ◆◆: Partially achieved
FY2022 results(achievementlevel)

Reduction rate in waste and valuables generation per unit
(compared to FY2010)

90
14%

Reduction rate in water use per unit (compared to FY2010)22%

Effective utilization rate of plastic waste

77%

199

◆◆◆
16%

◆◆◆
27%

◆◆◆
88%

◆◆◆

124

158

17%

20%

23%

24%

81%

85%

Water risks

Respond to water risks

Responding to water risks

Chemical substance

Reduce chemical emissions

Reduction rate in chemical atmospheric emissions per unit
(compared to FY2010)

Ecosystem
preservation

Impact on natural capital

Calculation of negative impacts (business unit/Group company-level LCA implementation) / Calculation of positive impacts (forest conservation activities)*1 Reduction rate of total CO2: Indicator representing CO2 emissions from Hitachi’s consumption of energy alone*2 This is a target for Japan only. Targets in other countries are set on a voluntary basis.
*3 Pursued in assumed conformance with regulations, conditions, etc. Less than 0.5%
*4 Three-year average

Minimization of business impacts regarding water risks
5%

21%

◆◆◆

6%

8%

Introduction

Management

Social Innovation

Environmental

Environmental

Environmental Governance

Environmental

Framework for Promoting Environmental Governance

Advancing Our Environmental Vision andLong-Term Environmental Targets

SocialGovernance

Structure

Assurance

Hitachi Sustainability Report 2023

031

GRI 2-12/2-13/2-24

To achieve our Environmental Vision and Hitachi Environmental Innovation 2050 long-term tar-

Hitachi, Ltd., a company with Nominating Committee, etc. under the Companies Act, has

Environmental Governancegets, Hitachi is building a global system to support decision-making and environmental manage-

adopted a committee system to separate the responsibilities for management oversight from the	Framework for Promoting Environmental
Governancement for Hitachi, Ltd. and 697 consolidated subsidiaries (as of March 31, 2023).

execution of business operations. Under this system, the Audit Committee of independent direc-

Environmental Management System
Achieving a Decarbonized Society
Achieving a Resource-Efficient Society

In fiscal 2022, we established the Sustainability Promotion Meeting, chaired by the chief

tors conducts an audit of sustainability-related operations once a year. Reports on climate

sustainability officer and consisting mostly of managers from each business unit (BU) and majorchange and other environment-related material issues are made to the committee by executive

Group company. The purpose of these meetings is to discuss and share information related to

officers of Hitachi, Ltd.

environmental issues and other important matters related to sustainability. The Senior Executive

P.015 Framework for Promoting Sustainability Strategy

Committee discusses and makes decisions related to important environmental matters forP.029 Green Strategy

Achieving a Harmonized Society with Natureachieving our long-term environmental targets, including decarbonization, water use, andEnvironmental Data

resource circulation. Matters are referred to the Board of Directors when necessary.
Hitachi established separate meetings to address important topics such as carbon neutrality
and the circular economy. The main members attending these meetings are individuals responsible
for environmental activities at each BU and key Group companies. Through these meetings, wepursue environmental activities across Hitachi Group, examining measures and sharing information.
Aiming to be a global leader in green transformation (GX), Hitachi formulated a Green
Strategy consisting of GX for CORE and GX for GROWTH, striving to put into place a frame-

P.035 Achieving a Decarbonized Society

Environmental Value Promotion Meetings
Meeting

Attendees

PurposeFrequency

Sustainability
Promotion Meeting

Chief Sustainability Officer, Business promotion heads at BUs and key Group companies,
and RHQ Sustainability Officers
Heads of Business promotion/Environmentrelated/ MONOZUKURI (production)/
Procurement divisions from BUs and key
Group companies
Heads and members of Environment-related/
MONOZUKURI (production) divisions fromBUs and key Group companies
Heads and members of Environment-related/
MONOZUKURI (production) divisions fromBUs and key Group companies
Chief Procurement Officer, heads of the
procurement divisions at BUs and key Group
companies, and individuals responsible forand engaged in sustainable procurement

Deliberation, information sharing related
to material sustainability initiatives

Once ortwice peryear
Twice peryear

Eco-Management
Meeting

work to execute our strategy.
Framework for Promoting Environmental Governance
Board of Directors
Senior Executive Committee
Sustainability Promotion Meeting

Eco-Management
CN2030 Promotion
Project Meeting
Eco-Management
3R Promotion
Project Meeting
Sustainable
Procurement
Conference

Eco-Management Meeting
Carbon Neutrality (CN)Circular Economy (CE)Eco-Management
CN2030 Promotion
Project Meeting

Eco-Management
3R Promotion
Project Meeting

Deliberation, planning, and implementation of action plans (environmental actionplans) to achieve the Hitachi environmental long-term goals
Monitoring and implementation of CN
action plan and discussion ofacceleration
Promotion of actions for 3R activities
toward realizing CE
Communicate the Hitachi Group sustainable procurement policies and strategies
to all procurement divisions, improveknowledge and share best practices

Twice peryear
Four times
per year
Twice peryear

Executive Compensation System Linked Environmental Value
SystemIn fiscal 2023, we revised our executive compensation system, linking the system more closely
to corporate value to accelerate our growth as a global company further. Refer to the following

Sustainable Procurement Conference

link for more details.
P.013 Reflecting Sustainability Targets in Executive Compensation Evaluation

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Environmental Governance
Framework for Promoting Environmental
Governance	Environmental Management System
Achieving a Decarbonized Society
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental DataManagement

Environmental

Social Innovation

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

032

Environmental Management System
Enhancing Our Environmental Management System
SystemEnvironmental Data Collection System
GRI 2-25/3-3

Activities

Activities

Hitachi has approximately 1,300 business sites of different

adhering to our in-house environmental management system,

As part of our environmental management, Hitachi uses thesizes engaging in a wide variety of activities. We classify these

our main global category A manufacturing sites have acquired

Environmental Data Collection System (Eco-DS) to collectsites into one of three environmental-risk categories: A

third-party certifications, such as ISO 14001.

about 20 categories of environmental load-related data rang-(major), B (medium), and C (minor). This categorization is

We also established a system to encourage procurementing from energy use, water use, and waste generation, tobased on globally accepted criteria for environmental man-partners to reduce their environmental impact, including

whether an item falls under relevant environmental laws andagement classification* , and we implement our environmental

carbon neutrality upstream in the value chain. We summarize

regulations, and environmental accounting. In fiscal 2022,

management according to the environmental risk at eachand publicize various guidelines describing the Hitachi

data collection covered about 1,300 business sites in 67

given site. In fiscal 2022, approximately 150 major sites wereapproach to sustainable and green procurement and othercountries. We are working to progressively expand the scopeclassified as Category A. Sites of companies acquired bymatters with which we expect procurement partners toof data collection in order to estimate the environmental load

Hitachi that have a large environmental impact (equivalent tocomply. At the same time, we continue to improve supplierof the entire Hitachi Group.

Category A) will eventually be classified as Category A. We will

engagement by holding briefings on procurement and con-make this classification after an alignment period of a few

ducting sustainability audits.

1

years, during which we will adapt the sites to our environmental management system.
The business units and Group companies that manage A
sites participate in drafting the Eco-Management Meeting’s
Environmental Action Plan, setting and striving to achieve*1 We score each site based on criteria for environmental management classification, such as electricity consumption, waste generation, water use andlegal compliance. Based on this score, we categorize the site into one of thethree categories.

P.068 Number of ISO 14001 Certified Companies
P.108 Responsible Procurement

The aggregated data is used to provide feedback to
improve environmental measures, such as in determining
business site environmental management classifications,
identifying environmental management issues, and sharing
instructive examples within the Group. In addition, we compile data on key metrics twice a year for the approximately
150 major sites identified as Category A.

targets based on this plan. We publicize the Environmental

We established an international help desk to support

Action Plan throughout the Hitachi Group through environ-the system and encourage an understanding of environ-mental strategy officers, chosen from among the heads ofmental management, offering support in Japanese, English,

environment divisions of those organizations. In addition to

and Chinese.

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

Management

Social Innovation

Chemical Substance Management System
Hitachi manages data on chemical substances in procured
materials, parts, and products using A Gree’Net, a green

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

033

Environmental Education for Employees
Activities

Training

procurement system compatible with the chemSHERPA*1

Hitachi offers e-learning based environmental education to all

management and internal environmental audits. Particularly in

Advancing Our Environmental Vision andLong-Term Environmental Targets

format. This framework allows us to identify the chemicalGroup employees, from new hires to senior management. We

China, where we have more than 20 Category A sites, we

substances are used in our products—from design and devel-also provide annual specialized training on environmental risks

provide training focused on compliance with the country’s

Environmental Governanceopment, procurement, and production to quality assurance

and compliance with environment-related laws and regula-increasingly strict environmental laws and regulations.

and shipping—and to respond to the legal and regulatory

tions for working-level employees in charge of environmental

Framework for Promoting Environmental
Governance	Environmental Management System
Achieving a Decarbonized Society
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Dataframeworks of our export partners.
To ensure proper use of chemical substances in our business operations, we operate a database for chemical sub-Environmental Education in Fiscal 2022
Contents of training

Targetstance management called CEGNET, which keeps track of thelatest laws and regulations and our own voluntary regulations
and supports searches for new substance risks. The system
also registers chemical substances used and aggregates data

Hitachi Group training on recent amendments tolaws and operational procedures as well as basic
environmental management

Employees working in air
quality, water quality, andwaste management

Japan:	1637 people from 71 companies(921 people in waste management,
plus 716 people in legal compliance)
China: 139 people from 52 companies

Environmental management training program to
reduce environmental risks in China and raise theknowledge of working-level employees

Working-level employees

153 people from 48 companies

Training for new employees

New employees in the China
Hitachi Group17 people from 8 companies

on amounts handled, emitted, and transferred in our operations, helping to reduce volume.
*1 chemSHERPA: A shared transmission scheme throughout the supply chain toensure proper management of chemical substances in products and continuing
compliance with the ever-growing requirements of major global laws and regulations like the REACH regulation (EU regulation of Registration, Evaluation,
Authorisation and Restriction of Chemicals) and RoHS directive (EU rules restricting the use of hazardous substances in electrical and electronic equipment).

Number of participants

Achievements in FY2022:
Briefings for Procurement Partners
We registered data regarding chemical substances contained in approximately 1.25 million materials, parts, andproducts in A Gree’Net as of the end of fiscal 2022. Each
year, we hold briefings for procurement partners using
A Gree’Net, chemSHERPA, and on regulatory revision
trends. In fiscal 2022, we held eight online briefings
attended by a cumulative 1,920 people.

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

Management

Social Innovation

Environmental

SocialGovernance

Environmental Compliance
Activities

Environmental

In addition to ensuring compliance with the laws and regula-

If we discover a violation or receive a complaint, we take

Advancing Our Environmental Vision andLong-Term Environmental Targets

tions of each country and region, Hitachi strives to minimize

steps to share information about the causes and countermea-

environmental risks by setting compliance with voluntarysures throughout the Group, tying these efforts to the preven-

Environmental Governancemanagement criteria that are more stringent than regulatorytion of similar incidents. We designate business sites where

Framework for Promoting Environmental
Governancerequirements and by conducting internal audits. We makelegal or regulatory violations have occurred as high-risk busi-

periodic examinations of soil and groundwater to detect

ness sites for a three-year period as a corrective measure.

	Environmental Management System­contamination at business sites where hazardous chemical

Appropriate guidance provided to such sites by business units

substances are, or once were, used. If contamination is

and Group companies in charge of their management serves

found, we conduct cleaning and monitoring activities until

to strengthen their compliance activities on an ongoing basis

decontamination is complete.

and prevent recurrences.

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

Implementation Status of Internal Environmental Audits
Implementing divisionCorporate division of Hitachi, Ltd.
(Sustainability Promotion Division)

TargetBusiness units, headquarters of Group companies, andbusiness sites classified as Category A in our environmental management classification
Major business sites and subsidiaries of business units andGroup companies*1

Corporate divisions of business units andGroup companies (environment divisions)

ISO 14001-certified sites (audit teams)

Frequency

Usually every threeyears

Sites of business units and Group companies outside
Japan that are classified as Category A in our environmental management classification*2
Divisions within business sites*1 According to the Hitachi Group Global Audit Standards, which specify matters concerning internal audits conducted by business units and Group companies.
*2 According to the Environmental Action Plan.

P.068 Number of Regulatory Violations and Complaints

Assurance

Hitachi Sustainability Report 2023

034

Introduction

Management

Environmental

Social Innovation

Environmental

Achieving a Decarbonized Society

Environmental

Efforts to Achieve a Decarbonized Society

Advancing Our Environmental Vision andLong-Term Environmental Targets

As the response to climate change becomes more of a global

Environmental Governancetinues to change in dramatic ways. At the 27th Conference of

Achieving a Decarbonized Society

the Parties (COP27) to the United Nations Framework	Efforts to Achieve a DecarbonizedSociety

Convention on Climate Change in Sharm el-Sheikh, Egypt, in

Contributing to a Decarbonized Society
Through the Decarbonization BusinessContributing to a Decarbonized Society at
Business Sites (Factories and Offices)
Climate-related Financial Information Disclosure(Based on TCFD Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

trend, the roles required of governments and companies con-November 2022, participants called for effective and equitableclimate change action, along with further increases in greenhouse gas reduction targets by nation.
To help build a decarbonized society, Hitachi has set thetarget and strive to achieve carbon neutrality throughout thevalue chain by fiscal 2050 as part of the long-term environmental targets we call Hitachi Environmental Innovation 2050.
Under GX for CORE, one of the two pillars of our green strategy, we accelerate measures to reduce our own CO2 emissions to achieve carbon neutrality by fiscal 2030 at ourbusiness sites (factories and offices). Under GX for GROWTH,
we reduce emissions related to the use of products and services sold, which account for a large portion of CO2 emissions
in Hitachi’s value chain. Since improvement in this area is the
key to reducing CO2 emissions in the value chain, we contrib-

ApproachSocialMateriality

Governance

Assurance

Hitachi Sustainability Report 2023

035

GRI 2-13/2-24/3-3

Environmental Strategy for Achieving a Decarbonized Society
Targets

Activities

Initiatives for Achieving a Decarbonized Society(1) Achieve carbon neutrality at our own business sites and production activities (by fiscal 2030)• Introduce energy-saving and renewable energy equipment.
• Procure 100% non-fossil electricity across all business sites.
(2) Achieve the world’s highest level of energy conservation in products• Achieve energy conservation by developing products that take the environment into consideration from the design stage.
(3) Work with procurement partners toward a decarbonized society• Distributed Sustainable Procurement Guidelines and Green Procurement Guidelines, requesting all procurement partners to set
greenhouse gas reduction targets• Based on the results of a questionnaire survey on climate change-related initiatives among environmental focus partners in
FY2021, we selected 21 new environmental advanced partners with whom to hold discussions in FY2022.
(4) Support businesses that contribute to the carbon neutrality of society as a whole• Power grids business to support the expansion of renewable energy.
• Provision of energy-efficient high-speed trains and storage battery hybrid trains for the spread of carbon-free mobility.
• Provide Lumada solutions that support the realization of a decarbonized society through digitalization.
(5) Develop technologies to realize the transition to a decarbonized society• Development of high-efficiency products, energy management systems and hydrogen-related technologies.

ute to customer decarbonization and that of society throughproducts and services having with low environmental impact.
Hitachi will continue to grow businesses that contribute togreen policies and to the decarbonization of society as a wholethrough collaborative creation with stakeholders.
Ratio of CO2 Emissions at Each Stage of Hitachi Value Chain
in Fiscal 2022
Procurement of
Raw Materials
and Parts

Production

Transport

Use of Products
and Services

9.6%

0.6%

0.1%

89.1%

Waste Disposal/
Recycling

Others (Capital
goods, etc.)

0.1%

0.5%

Green Strategy• GX for CORE: Achieve carbon neutrality at business sites (factories and offices) by FY2030. Reduce CO2 emissions by 50% compared with fiscal 2010 levels by fiscal 2030 and achieve carbon neutrality across the entire value chain by fiscal 2050
• GX for GROWTH: Contribute to the decarbonization of customers and society through products and services having with low environmental impact (CO2 avoided emissions: 100 million metric tons in fiscal 2024)

P.029 Green Strategy
P.036 Expanding the Decarbonization BusinessP.039 CO2 Emission Reduction at Business Sites (Factories and Offices) and Hitachi Carbon Neutrality 2030
P.108 Responsible Procurement
Hitachi Integrated report 2023 / Green Strategy (P.024)* Percentages may fluctuate due to changes in our business portfolios

https://www.hitachi.com/IR-e/library/integrated/

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

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Management

Social Innovation

Approachto a decarbonized society through businesses that reduce

Achieving a Decarbonized Society

CO2 emissions and collaborative creation with customers.

Climate-related Financial Information Disclosure(Based on TCFD Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

Assurance

Hitachi Sustainability Report 2023

Approach036

GRI 305-4/305-5

Activities

Achieving a Decarbonized Society

Contributing to a Decarbonized Society at
Business Sites (Factories and Offices)

Governance

Expanding the Decarbonization Business

Hitachi provides value to customers and society, contributing

Society Through the Decarbonization
Business

SocialContributing to a Decarbonized Society Through the Decarbonization Business

Environmental Governance	Contributing to a Decarbonized

Environmental

Examples of Decarbonization Business: A Hitachi Focus

Power grid solutions· Contribution to the mass adoption of renewable energy through HVDC*1· Enhancing efficiency of transformers, high voltage products, and power transmission/distribution

Grid automation· Advancing smart grid control, etc.

Power generation· Widespread use of power generation systems that utilize non-fossil energy
sources such as wind and nuclear power

Railway business· Enhancing energy-saving features of rolling stock· Developing smart operating systems· Enhancing maintenance service efficiency through rolling stock monitoring

Finance and public oriented
solutions· Promoting digital solutions

Data centers· Developing smart data centers

Servers/storage· Enhancing energy-saving features of servers and storage

Smart logistics· Improving energy-saving features through fully IT-enhanced logistics

Factory automation· Enhancing energy efficiency through shorter lead times

Water business· Enhancing efficiency of water and sewage systems

Industrial products· Enhancing efficiency of industrial products· Electrification of fossil-fuel equipment

Smart cities· Reducing CO2 through comprehensive urban energy management solutions

Home appliances· Enhancing energy efficiency of home appliances· Promoting connected home appliances

Smart therapies· Enhancing energy-saving features of medical devices

Elevators· Enhancing energy-saving features of elevators and escalators throughreplacement· Enhancing energy efficiency through total building solutions

Hitachi operates under three business domains: Green Energy
and Mobility, Digital Systems and Services, and Connective
Industries. Among these domains, we are growing the follow-

Green Energy & Mobility

ing businesses, which contribute to decarbonization.
• Businesses that help to accelerate the energy shift aimed atrealizing decarbonization, and that provide safe, comfortable, and clean mobility (Green Energy and Mobility)• Businesses that help to reduce CO2 emissions by using
cutting-edge digital technologies to improve the efficiency ofsystems that underpin society (Digital Systems and Services)• Businesses that help to decarbonize industries and cities by

Digital Systems &Services

creating a resilient supply chain (Connective Industries)

Connective Industries*1 HVDC: High Voltage Direct Current

Introduction

Environmental

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

037

CO2 Emissions Reduction as Avoided Emissions
Approach

Environmental

Management

Materiality

Hitachi calculates the contribution to decarbonization throughHitachi contributes to the reduction of customer CO2

The World Business Council for Sustainable Development

Advancing Our Environmental Vision andLong-Term Environmental Targets

collaborative creation with customers as CO2 avoided emis-

emissions mainly in the following three areas:

issued guidance in March 2023 on avoided emissions. In

sions. We convert the amount of the contribution to customer(1) Contribution via conversion to non-fossil energy

Japan, the GX League*2 is considering the use of avoided

Environmental Governancedecarbonization via Hitachi products and services into CO2Contribution by providing key components for the introduction

emissions in relation to disclosures and the assessment of

Achieving a Decarbonized Society

emissions. We expect an average 126.1 million metric tons ofof non-fossil energy including renewable energy, such as HVDC

climate-related opportunities. A unified guide on specificCO2 avoided emissions per year during the Mid-term(2) Contribution via energy conservation­calculation methods for products and services is under dis-Management Plan 2024, compared to our original target ofContribution by providing energy-saving features through thecussion, and Hitachi is participating in these discussions.

approximately 100 million metric tons per year in fiscal 2024.

optimization of highly efficient products and controls, such asContributing to a Decarbonized Society at
Business Sites (Factories and Offices)
Climate-related Financial Information Disclosure(Based on TCFD Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

Hitachi calculates CO2 avoided emissions based on ahigh-efficiency industrial equipment

comparison of customer CO2 emissions from the use of(3) Contribution via electrification

Hitachi products and services during the fiscal year in ques-Contribution through the electrification of products currently

tion with emissions from Hitachi products and services

using fossil energy, including the electrification of industrial

during the base year. In principle, the base year for this cal-equipment*2 A place where companies aiming to achieve sustainable growth with a view to
becoming carbon neutral by 2050 and coming social changes collaborate withcompanies engaged in similar initiatives, as well as entities from across industry,
government, and academia.

culation is fiscal 2013*1.
*1 In accordance with the base year of Japan’s national CO2 reduction target. For
the consolidated energy-related company, we set fiscal 2020 as the base year
based on the year the company joined the Hitachi Group.

Calculating CO2 Emissions Reduction as Avoided Emissions① Conversion to Non-Fossil Energy② Energy savings③ Electrification• We calculate the amount of CO2 emissions reduced by using
non-fossil energy sources compared to electricity supplied fromthe grid• We calculate the amount of CO2 emissions reduced by improving
energy efficiency compared to products and services with equivalent functions• We calculate the amount of CO2 emission reductions compared
to products and services before electrification

Examples: HVDC, wind turbines, etc.

Examples: Compressors, elevators, etc.

Example: Electrification of industrial equipment

CO2 Avoided
Emissions

Grid power fromthermal power
generation, etc.

Non-fossil-derived
electricity from wind
power generation, etc.

CO2 Avoided Emissions

CO2 Avoided Emissions
CO2 Emissions

Society Through the Decarbonization
Business

CO2 Emissions

	Contributing to a Decarbonized

CO2 Emissions

Achieving a Decarbonized Society

Old Products

New Products

Transportation/­
industrial engines(fossil fuels)

Transportation/
Industrial Motors

Introduction

Environmental
Environmental

Management

Social Innovation

Improving the Environmental Performance ofProducts and Services Through Eco-Design
SystemActivities

Materiality

Environmental

SocialGovernanceApproach

CO2 emissions related to the use of products and services
account for the largest proportion of emissions in our value

Hitachi promotes eco-designs by applying our Environmentally

chain. To reduce these emissions, Hitachi sets reduction rate

Environmental GovernanceConscious Design Assessments to steadily improve environ-targets per unit based on fiscal 2010 levels for each product or

Achieving a Decarbonized Society

mental performance throughout the Group. This assessment

service targeted. We use functional size*1 as the denominator

Achieving a Decarbonized Society

identifies a total of 30 environmental impact categories thatand CO2 emissions as the numerator in our target equation.

Contributing to a Decarbonized Society at
Business Sites (Factories and Offices)
Climate-related Financial Information Disclosure(Based on TCFD Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

affect climate change, resource depletion, and ecosystem

In fiscal 2022, we achieved our target with a reduction

degradation at each stage of the life cycle of products andrate of 15% against a target of 12%. The achievement of thisservices. In this way, we assess the reduction of environmental

target was driven by the introduction of new models of highimpact from business activities across multiple perspectives.

energy-saving equipment used in industrial equipment andsocial infrastructure.

Initiatives for Improving Environmental Performanceof Products and Services

company to the calculation of Hitachi Group emissions,• Promoting environmentally conscious processes: In accor-

resulting in a significant increase in emissions throughout thedance with the IEC 62430*1 criteria, promote environmentally conscious processes in designing and developing
products and services, including by meeting environmental

company that are used widely in the global power infrastruc-regulatory requirements and ascertaining the environment-­

ture. Hitachi will continue to bring energy-efficient products torelated needs of our stakeholders within our existing

the market.

­management system.
• Implementing Life Cycle Assessments (LCAs): For ourmain, priority products, quantitatively evaluate their global
environmental burden in such areas as the consumption ofmineral resources, fossil fuels, and water resources, as wellas their impact on climate change and air pollution, disclose the results to our stakeholders, and utilize them in
improving the design of next-generation products.
*1 IEC62430: The standard developed by the International ElectrotechnicalCommission (IEC) concerning environmentally conscious design for electricaland electronic products.

P.051 Approach to Transitioning to a Circular Economy/
Innovation in Product Design

038

Activities

For all products and services involving a design process,Society Through the Decarbonization
Business

Hitachi Sustainability Report 2023

Reduction of Product and Service CO2 Emissions During Use

Advancing Our Environmental Vision andLong-Term Environmental Targets	
Contributing to a Decarbonized

Assurance

We added the emissions of a consolidated energy-related

Environmental Action Plan for 2024 Management Values
Reduction in CO2 Emissions per Unit (Hitachi Group)

From base year

15
reduction%

CO2 emissions
from use of products

100%

Target: 12%

CO2 emissions
from use of products

85%

Function size

Function sizevalue chain. This increase is due to higher emissions from the

FY2010

FY2022use of transformers and other key products provided by the(base year)*1 Function size: Major functions of products correlated with CO2 emissions, suchas their output and volume

Introduction

Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Social Innovation

Environmental

PolicyActivities

neutrality by fiscal 2030 at all business sites (factories and offices) as part of its long-termSociety at Business Sites(Factories and Offices)
Climate-related Financial Information Disclosure(Based on TCFD Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

039

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

Materiality

Achieving a Decarbonized Society	Contributing to a Decarbonized

Hitachi Sustainability Report 2023

Assurance

CO2 Emission Reductions at Business Sites (Factories and Offices) and Hitachi Carbon Neutrality 2030

In working toward realizing a decarbonized society, Hitachi has set the goal of realizing carbon

Contributing to a Decarbonized Society
Through the Decarbonization BusinessGovernanceContributing to a Decarbonized Society at Business Sites (Factories and Offices)

Environmental GovernanceAchieving a Decarbonized Society

Socialenvironmental targets called Hitachi Environmental Innovation 2050.
Our roadmap to achieving this goal sets targets of reducing CO2 emissions by 50%, compared to the base year, by fiscal 2024 and 80% by fiscal 2027 toward realizing carbon neutrality
by fiscal 2030.
CO2 emissions reduction measures at Hitachi include installing energy-saving and renewable energy equipment, engaging in corporate PPA*1 to procure renewable energy with­additionality* , and procuring renewable energy and renewable energy certificates* . Among2

3these, installing energy-saving and renewable energy equipment is expected to incur highcosts relative to the amounts of reduction. However, it will also lead to reduced risks associ-CO2 reduction roadmap (as of Mar. 2023)
Reduction rate in CO2 emissions (%)

Environmental

Management

0

Target50%+

FY2024 Target

50%
50

FY2027 Target

Renewable energy
procurement(purchases +certificates)
36%
Neutralization 10%

Residual emissions
100
2010

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

33%
Corporate PPA
21%

80%

ated with factors including anticipated sharp rises in energy pricing and increased costs fromEnergy saving +RE generation

2030 (year)

carbon taxes and the expansion of carbon tax transactions. It also aligns with our Corporate
Mission—“To contribute to s­ ociety through the development of superior, original technology
and products”—and for this reason as well, we are placing a priority focus on this approach.

Concrete efforts to achieve carbon neutrality at business sites, categorized by location
type (factories, offices), can be outlined as shown below.

Currently, we have set the target at a 33% reduction to be made by fiscal 2030, however weare working to increase that level to 50%.
*1 Corporate PPA: A contract whereby a corporation, municipality, or other legal entity purchases electricity generated by renewable energy from a power producer on a long-term basis (usually 10 to 25 years). PPA stands for power purchase agreement.
*2 Additionality: An increase in effect of installing new renewable energy equipment.
*3 Renewable energy certificate: Accredits the environmental value associated with electricity generation from renewable energy
sources. Unlike the purchase of renewable electricity, acquisition of this environmental value, which is separate from theelectricity itself, is regarded as equivalent to using energy sources that do not emit CO2.

Major Initiatives for Reducing CO2 Emissions at Business Sites (Factories and Offices)• Improve equipment efficiency by introducing and upgrading to high-efficiency equipment(Determine priority measures and manage introduction and upgrade rates)

Factories

Offices• Improve production efficiency and energy use efficiency during production through use of theLumada platform and production technologies cultivated from our long years of experience• Optimize equipment operations and reduce wasted energy by installing smart meters• Review product designs and processes• Optimize control of equipment operations in response to production conditions• Build/move to new facilities with high energy efficiency• Combine and integrate existing facilities• Install energy-saving equipment and optimize equipment operations in collaboration withbuilding owners

Factories
and offices• Install renewable energy systems• Procure electricity from renewable sources• Utilize renewable energy certificates• Utilize renewable energy through corporate PPA• Engage in capital investment to reduce CO through the use of Hitachi Internal Carbon Pricing (HICP)
2

Introduction

Environmental
Environmental

Management

Social Innovation

The Hitachi Internal Carbon Pricing
Framework
SystemEnvironmental

SocialGovernance040

Hitachi Sustainability Report 2023

Assurance

Achievements in Fiscal 2022
Hitachi uses the HICP system to reduce CO2 emissions by converting CO2 reduction benefits of projects to a monetary
values to encourage additional investment, where such projects may not have received investment under the previous mea-

Advancing Our Environmental Vision andLong-Term Environmental Targets

To promote CO2 reduction at its business sites (factories andoffices), in fiscal 2019 Hitachi introduced the Hitachi Internal

In fiscal 2022, monetary investments decreased due to the deconsolidation of materials and construction machinery

Environmental Governance

Carbon Pricing*1 (HICP) framework. Referencing emissions

companies. However, we raised the carbon price from 5,000 yen/t-CO2 to 14,000 yen/t-CO2, resulting in 94 adopted projects

Achieving a Decarbonized Society

trading and carbon taxes globally, we establish internal carbon

and 2,519 t-CO2 in CO2 reductions, nearly twice as much as in fiscal 2021.

Achieving a Decarbonized Society
Contributing to a Decarbonized Society
Through the Decarbonization Business	Contributing to a DecarbonizedSociety at Business Sites(Factories and Offices)
Climate-related Financial Information Disclosure(Based on TCFD Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

prices, convert into monetary value as the effect of CO2

surement standard.

We will continue to use HICP, raising the carbon price as necessary to reduce CO2 emissions.

reductions due to investment in equipment that contributes todecarbonization. We add this price to the value of energy
reduction effects, and use the result to evaluate the impact of
our investment. By applying incentives like these, we aim tofurther expand our investment in equipment that contributes
to decarbonization.
Increased burdens from carbon taxes and new emission
regulations can be anticipated in the future. Taking such risk

Hitachi Internal Carbon Pricing (HICP) Framework
Approach to Assessing Investment Effectiveness with HICP
CO2 reduction effects areconverted into monetary value
and added virtually

Investment effect inmonetary terms

factors into account from the stage of equipment investment

Asset values
increaseconsiderations and making investments that contribute todecarbonization a higher priority will help minimize the impactsof future climate change risks and make our company more

CO2
reductioneffects

resilient. The introduction of the HICP framework is instrumental in this process.

Virtual effects are
realized when
Investments areassessedsideration of 2025 carbon taxes and carbon trading prices
the rate to 14,000 yen/t-CO2 in August 2021 in considerationof anticipated carbon taxes and carbon trading prices. We

EnergyreductioneffectEnergyreductioneffectwill leverage this framework to provide early responses to

BeforeAfter

future risks such as carbon taxes as well as to actively pro-

Beforeintroducing HICP

After
introducing HICP

mote the installation of energy-saving and renewable energy
equipment, our highest priority initiative aimed at achievingcarbon neutrality.
*1 Internal carbon pricing: An in-house tool for assessing in monetary terms theamount of carbon generated or reduced in order to voluntarily make investment
decisions and conduct risk management.
*2 ETS: Emission Trading Scheme

Category

FY2019FY2020*1

FY2021*1

FY2022*1

Number of HICP
Projects

35

22

59

94

Investment(Million (JPY))

260

250

1,464

1,185

1,356

447

1,230

2,519

CO2 Emissions
Reduction (t-CO2)

The HICP rate: ¥5,000/t-CO2 ¥14,000/t-CO2
August 2021
*1 Excluding an energy-related company which became a consolidated subsidiaryin fiscal 2020

Initially, we set the HICP rate at 5,000 yen/t-CO2 in con(ETS*2). Subsequently, looking ahead to 2030, we increased

HICP Implementation Results

CO2 reduction = cost reduction
Facilities that generate less CO2 have higher asset values

Introduction

Environmental

Management

Activities and Achievements

Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental Governance

The Hitachi Environmental Action Plan for 2024 describes atarget of the total CO2 reduction rate at business sites (factoIn fiscal 2022, which was the first year of the Environmental
Action Plan for 2024 (fiscal 2022–2024), we achieved a 40%

Achieving a Decarbonized Society

reduction in total CO2 emissions compared to a target of 32%	Contributing to a DecarbonizedSociety at Business Sites(Factories and Offices)
Climate-related Financial Information Disclosure(Based on TCFD Recommendations)
Achieving a Resource-Efficient Society

Power plants
North America

reduction (compared to a base year of fiscal 2010). To reduce
emissions, we improved facility efficiency through new andupgraded high-efficiency equipment, installed renewable energy

5,000

4,973

4,000
3,000

40
reduction

Environmental Data%

CO2 Emissions*1

Target rate: 32%

100%

57
15

Governance236

To reduce CO2 emissions, Hitachi installs renewable energy

572

cure electricity produced through new renewable energy

8330

equipment located off-premises. We are expanding the use of
3,296

56
18

3,384

1,003

1,039

360

364
185

1,448

derived electricity with electricity derived from renewableenergy sources.

178

1,563

1,538
385

73
43

set by the GHG Protocol.

197

226

2020

180

2021

174

2022*1*2 (FY)

*1 Energy-derived CO2 emissions in fiscal 2022 amounted 459 kt-CO2 (Scope 1)
and 1,079 kt-CO2 (Scope 2, market basis)*2 Fiscal 2022 CO2 emissions of an energy-related company and auto parts-­
related companies, which became consolidated subsidiaries in fiscal 2020, areincluded in the figures above. The materials and construction machinerycompanies were deconsolidated, and the amount of CO2 emitted by thosecompanies in fiscal 2022 was not included. This resulted in a significant
decrease in the total CO2 emissions.

P.063 Environmental Load from Operations

60%

Renewable electricity used will be based on the standards

533
228

2019

P.061 GHG Emissions Throughout the Value Chain
CO2 Emissions

corporate PPA to accelerate the replacement of fossil fuel-­

44
16

133
2,030

554

Achievements in Fiscal 2022
Renewable electricity generation across the HitachiGroup in fiscal 2022 amounted to 706 GWh, anincrease of 3.7 times compared to fiscal 2021. The
amount of renewable electricity used by the HitachiGroup in fiscal 2022 increased significantly from 4% in
the previous fiscal year to 24%.
At 57 sites the United States, Europe, China, Japanand some other countries in Asia, all electricity usedcame from renewable sources. Eleven of these sites
achieved carbon neutrality through enhanced energy-­savings and purchases of credits for neutralization.
In addition, Hitachi Energy is working actively to

FY2010

FY2022(Base year)
Note: Regarding CO2 electrical power conversion factors: We used adjusted conversion factors forindividual power businesses based on the Act on Promotion of Global Warming Countermeasures
in Japan. In China, we used the average emissions factor published by the government for thenational 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.
Note: The Environmental Action Plan’s management values do not include amounts for our power plants
in fiscal 2010 (base year) or fiscal 2022
Note: Only for Environmental Action Plan for 2024 management values, emissions of 11.6 kt-CO2 fromthe cancellation of credits for neutralization were deducted from Scope 1. For the figures that
underwent independent assurance, emissions from the cancellation of credits for neutralization
were not deducted.
*1 CO2 emitted from the organization (Scope 1 and 2).

041

Activities

ASEAN, India, Other Asia

2,285

2018

Hitachi Sustainability Report 2023

Introduce Renewable Energy

264

1,000

Assurance

power generation equipment on our property. We also pro4,374

540

2,000

Environmental Action Plan for 2024 Management Values

Compared With Base Year

China
Other

1,167

0

Reduction Rate of Total CO2 (Hitachi Group)

Japan
Europe1,286

equipment, and procured electricity from renewable sources.

Achieving a Harmonized Society with Nature

Social(kt-CO2)

ries and offices).

Achieving a Decarbonized Society
Contributing to a Decarbonized Society
Through the Decarbonization Business

Environmental

CO2 Emissions (Hitachi Group’s factories, offices,and power plants)
GRI 302-1/305-4/305-5

Activities

Environmental

Social Innovation

decarbonize operations through the use of non-fossil
fuel electricity for all of its in-house electricity usage.

Introduction

Environmental

Management

Carbon Neutrality

Contributing to a Decarbonized Society
Through the Decarbonization Business	Contributing to a DecarbonizedSociety at Business Sites(Factories and Offices)
Climate-related Financial Information Disclosure(Based on TCFD Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

Governance3 sites (Hitachi Energy Group)
1 site (Hitachi Astemo Group)

9 sites

1 site (Hitachi Industrial Equipment
Systems Group)

China

6 sites

1 site (Hitachi Industrial Equipment
Systems Group)Japan

3 sites

3 sites (Hitachi High-Tech Group)

Asia (Excluding
China and Japan)

7 sites

2 sites (Hitachi Energy Group)

Other

8 sites

North America

Assurance

Achievements in Fiscal 2022
Fiscal 2022 reduction measures focused on improving
loading efficiency for product transportation, utilizing joint

24 sites

EuropeEnvironmental GovernanceAchieving a Decarbonized Society

Social

Hitachi Sustainability Report 2023

042

Hitachi Fleet Management

Sites Using 100% Renewable-Derived Electricity

Environmental

Achieving a Decarbonized Society

Environmental

Locations operating on non-fossil energyCountry/Region

Advancing Our Environmental Vision andLong-Term Environmental Targets

Social Innovation

VehicleVisualization

Centralized fleet management via BPO
AI drive recorders to monitor vehicle operation statustransportation, and optimizing transportation vehicles.
With the deconsolidation of the materials and construction machinery divisions, CO2 emissions from transportation in Japan totaled 26.9 kt-CO2, a decrease of 47.4

kt-CO2, or 64%, compared with fiscal 2021.

Analysis of vehicle operation status and travel routes
Vehicle Data
AnalysisAnalysis of driver tendencies
Continuous monitoring of electrification rates andCO2 emissions—

Case studies of Energy Savings in Eco-Factories & Offices
https://www.hitachi.com/environment/casestudy/index.html#case02

Hitachi Fleet Management Reduces
CO2 Emissions From Business Vehicles
Approach

Reducing Transportation Energy
Consumption
Activities

Hitachi is preparing to electrify our fleet of commercial­vehicles as part of efforts to achieve carbon neutrality byfiscal 2050. However, we must address a variety of issues
that companies face when introducing electric vehicles,

In addition to reducing energy used at our business sites

including the limited choice of electric vehicles and the lack(factories and offices), Hitachi strives to reduce energy usageof charging infrastructure.

during transportation. Each business unit (BU) and GroupTo this end, we created our own fleet management plan tocompany incorporates the rate of reduction in transportation

prepare for fleet electrification at each BU and Group company.

energy use per unit in Japan, with voluntary targets estab-Specifically, we intend to use BPO*1 and AI drive recorders*2 tolished in other countries.

visualize vehicle operating conditions, followed by an analysis of

Our business sites pursue modal shifts to highly efficientcollected driving data and CO2 emissions monitoring. We willtransportation methods by improving truck loading ratios,

use the results of this analysis and monitoring to act to reducetaking other measures to reduce transportation energy

CO2 emissions from existing vehicles and advance the gradual­consumption and switching to the use of eco-cars for

replacement of existing vehicles with electric vehicles to reduce

in-house operations.

CO2 emissions from business-use vehicles.
*1 BPO: Abbreviation of business process outsourcing. BPO outsources theentirety of a business process to a contractor specializing in said activity.
*2 AI drive recorder: A service that uses AI to analyze recorded driving video andvisualize signs of dangerous driving and driver tendencies.

Optimize the number of vehicles in the fleet basedon vehicle utilization status
Actions to
Reduce CO2Emissions

Encourage eco-driving by controlling sudden
acceleration and braking
Fostering awareness of CO2 reductions via
visualizations of emissions
Phased-in vehicle electrification in consideration of
impact on operations

Introduction

Environmental
Environmental

Management

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

043

Climate-related Financial Information Disclosure (Based on TCFD Recommendations) GRI 3-3
In June 2018, Hitachi announced its endorsement of theinformation disclosure and disclosed information with appro-

Advancing Our Environmental Vision andLong-Term Environmental Targets

recommendations by the Financial Stability Board’s (FSB) Task

priate investment decisions by financial institutions andForce on Climate-related Financial Disclosures (TCFD). The

others. We participated in the consortium as a Steering

P.035 Environmental Strategy for Achieving a Decarbonized Society

Environmental Governancefollowing contains key climate-related financial information in

Committee member and contributed to the formulation ofAchieving a Decarbonized Societyline with the TCFD’s recommendations.

TCFD Guidance 3.0, published in October 2022.

P.039 Contributing to a Decarbonized Society at Business Sites(Factories and Offices)Achieving a Decarbonized Society
Contributing to a Decarbonized Society
Through the Decarbonization BusinessContributing to a Decarbonized Society at
Business Sites (Factories and Offices)	
Climate-related Financial Information

Disclosure (Based on TCFD
Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

Seven institutions rated the Hitachi TCFD disclosures
highly in the Excellent TCFD Disclosure, announced in
March 2023, as selected by the Government Pension

Identification and Assessment of Climate-related
Risks and Opportunities

P.015 Framework for Promoting Sustainability Strategy
P.031 Framework for Promoting Environmental Governance

The Hitachi Group operates a broad array of businesses

Investment Fund of Japan (GPIF) domestic equity investment
management institutions.

GovernanceP.027 “Environmental Vision” and “Hitachi Environmental Innovation
2050”

around the world with each business having its own set ofStrategy
Approachrisks and opportunities. We are responding to the impact of
GRI 201-2

climate change by assessing climate-related risks and opportunities in accordance with TCFD classifications. We makeIn fiscal 2016, under our Environmental Vision and considering

sector-specific assessments of risks and opportunities for

the Paris Agreement, the RCP2.6 Scenario*1, and RCP8.5

important business sectors that have a relatively high likeli-

Hitachi sees climate change and other environmental issues

Scenario*2 of the Fifth Assessment Report of the IPCC,

hood of being affected by climate change. Our assessments

as important management issues.

Hitachi created Hitachi Environmental Innovation 2050, long-

are also categorized according to time span, namely shortterm environmental targets and a transition plan toward aterm, medium term, and long-term as defined below.

Structure

Important matters concerning the Group’s sustainability
strategy, including climate change measures, are discussed,

decarbonized society. In this way, we intend to meet the con-and decided on by the Senior Executive Committee and are

tributions required of a global company toward the creation ofpresented to the Board of Directors according to necessity.

a decarbonized society. Moreover, to help limit the global

Hitachi reviewed long-term environmental targets, termed

temperature rise to 1.5°C as recommended in the IPCC 1.5°C

Hitachi Environmental Innovation 2050, which include reduc-special report, in fiscal 2020, we revised our target to achieve

ing CO2 emissions. Our Board of Directors receives a reportcarbon neutrality at Hitachi factories and offices by fiscal

regarding these targets when formulated or revised. In addi-

2030. In fiscal 2021, we revised our target once more totion, the Audit Committee of independent directors conducts

achieve carbon neutrality in our value chain by fiscal 2050.

an audit of sustainability-related operations once a year, andThis goal is in line with the SSP1-1.9 scenario*3 of the Sixth

Hitachi executive officers report on climate-related issues toAssessment Report of the IPCC. Hitachi is committed tothe committee during the audit.

contributing to the creation of a decarbonized society on a

As for TCFD initiatives we conduct outside the company,
Hitachi has participated in the TCFD Study Group on Green
Finance and Corporate Disclosures arranged by Japan’s
Ministry of Economy, Trade and Industry (METI) since 2019.
In addition, we have participated in the TCFD Consortium,
which holds discussions on efforts to link effective corporate

Time Spans for Assessing Climate-related Risks andOpportunities
Time span

Reason for adoption

Short
term

Over the next
three years,
from fiscal
2022 to 2024

Corresponds to the three-year management period covered by the Environmental
Action Plan for 2024 established in linewith the 2024 Mid-term Management Plan

Mediumterm

Through fiscal
2030

Time span of our fiscal 2030 long-term
environmental targets

Long
term

Up to fiscal
2050

Time span of our fiscal 2050 long-term
environmental targets

global scale by declaring and pursuing higher goals.

Degrees of Impact*1 A Representative Concentration Pathway (RCP) scenario under which, at the endof the 21st century, the increase in global temperatures from preindustrial levels is
kept below 2°C.
*2 An RCP scenario that assumes that emissions will continue to rise resulting in an
approximately 4°C rise in global temperatures compared to preindustrial levels.
*3 SSP1-1.9 scenario: Presented in the Sixth Assessment Report of the IPCC. A
scenario that limits temperature increase to less than 1.5°C under sustainable
development.

ImpactDefinition

Major

Has an impact sufficient to disrupt business or cause it
to substantially decrease or increase

MediumPart of the business is impacted

Minor

There is little impact

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceContributing to a Decarbonized Society
Through the Decarbonization BusinessContributing to a Decarbonized Society at
Business Sites (Factories and Offices)	
Climate-related Financial Information

Disclosure (Based on TCFD
Recommendations)
Achieving a Resource-Efficient Society

Environmental

Social Innovation

SocialGovernance

Hitachi Sustainability Report 2023

Assurance

044

Responding to Climate Scenario Risks and Opportunities for Each Business
Hitachi operates a broad array of businesses with each business having its own set of risks and opportunities. We therefore selected businesses that have a relatively high likelihood of being affected byclimate change and conducted scenario analyses. In selecting businesses, we considered the factors of, high sales volume within the Group, and relatively high need for fossil fuels when products andservices are used, as well as high CO2 emissions.
The businesses we selected using these criteria were railway systems, power generation and power grids, IT systems, and industrial equipment. For each of these businesses, we considered thebusiness environment under the 1.5°C and 4°C scenarios and how we would respond.
● 1.5°C scenario As projected by the IPCC’s RCP 2.6 climate model, the IEA 450 Scenario, and other scenarios, we are anticipating a world where stringent measures and regulations will be implemented to help realize a decarbonized society. Therefore, we investigated risks and opportunities on the premise of carbon neutrality by fiscal 2050.

Achieving a Decarbonized Society
Achieving a Decarbonized SocietyManagement● 4°C scenario

We focused on there being increased climate-induced natural disasters as a result of lax regulations as projected by the IPCC’s RCP8.5 scenario and other scenarios.

Our assessment of the major risks and opportunities for the selected businesses are outlined in the following table.
The Business Environment, Major Risks and Opportunities, and Strategies under the 1.5°C and 4°C Scenarios
Target businesses

Railway systems

The businessenvironment andmajor risks andopportunities
under the 1.5°C
scenarioBusiness environment

Business environment

Business environment

Business environment

Global demand will continue to grow for railway
transport systems that emit relatively less CO2 per
distance covered will grow with tighter CO2 emission regulations in each country and region.

Global demand will continue to grow for electricity
from non-fossil sources, such as renewable energy
and nuclear power, with tighter CO2 emission
regulations in each country and region. Power
networks will increasingly accommodate renewableenergy produced through distributed power
generation.

Demand for energy-saving, high-efficiency IT
solutions will grow with tighter CO2 emission regulations in each country and region. There will also be
increased demand for data centers and data
analysis systems to accommodate the expansion offinancial services such as investments and loans for
decarbonization businesses, green bond issues,and data utilization businesses.

Global demand for energy-saving industrial equipment will grow with tighter CO2 emission regulations
in each country and region.

Achieving a Harmonized Society with Nature
Environmental Data

Power generation and power grids

IT systems

Industrial equipment

Risks

Risks

Risks

Risks

A decline in competitiveness in the railroad sector if
there are delays in the development of innovativetechnologies of the type expected to contribute to the
reduction of CO2 emissions. Specifically, delays in thedevelopment of new technologies such as dynamic
headways (flexible operations based on passenger
demand) and support for new mobility services (e.g.,
MaaS). Also, a decline in competitiveness due todelays in the timely marketing of effective and sustainable products that comply with increasingly
stringent laws and regulations for decarbonization.

A decline in competitiveness due to delays in thedevelopment of technologies for the transmission of
more renewable energy without compromising thestability of the transmission grid or the quality ofelectricity. A lack of international and regional
cooperation to maintain a balance between supply
and demand in the power grid for renewable energy
generation having large output fluctuations, resulting delays in renewable energy utilization.

Competitiveness will decline if there is a lack oftechnological and human resource development toprovide energy-saving and highly efficient IT solutions and if decarbonized measures for energy-­
intensive data centers are delayed.

Competitiveness will decline if there are delays inthe development of high-efficiency, low-loss
products.

Opportunities

Opportunities

Opportunities

Opportunities

A transition of most long-distance public transportation to the railway sector under the 1.5°C scenario,
since rail is a mode of transportation that contributes
to decarbonization with low CO2 emissions per unit oftransportation. Expanded business opportunities bydeveloping and delivering railroad cars that are moreenergy efficient than existing models, by converting tobi-mode railroad cars, and by increasing the efficiencyof rail services with digital technology.

Expanded business opportunities in conjunction
with rising demand for renewable energy—the key
to a decarbonized future—and with the development of grid solutions, digital service solutions, andenergy platforms that can accommodate thediversification of energy suppliers.

Demand will grow for energy saving and high-­
efficiency information systems that contribute tozero-emissions. There will also be increased
demand for environment-related financial services
as investments and loans for decarbonization
businesses and green bond issues.

Utilization of IoT, digitalization, and connected
systems to develop innovative products and solutions that contribute to CO2 emission reductions
without relying on the energy-saving features ofindividual products.

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Management

Environmental

Social Innovation

SocialGovernanceTarget businesses

Railway systems

The businessenvironment andmajor risks andOpportunities
under the 4°C
scenarioBusiness environment

Business environment

Business environment

Business environment

Demand for electric-powered transport will gradually increase even without tighter energy regulations. Damage from typhoons, floods, and othernatural disasters caused by climate change will rise
sharply.

The cost competitiveness of non-fossil energy will
increase as fuel prices gradually increase due toincreased fossil energy consumption, and demand
for renewable energy and nuclear power will
increase moderately. Natural disasters caused byclimate change will rise sharply. Needs will increase
for climate adaptation to protect electric energy
systems from extreme weather events.

Demand for new, high-efficiency technology will
expand as multiplex IT systems in response tonatural disaster BCPs will result in increased energy
consumption. Demand will also grow for social andpublic systems to reduce damage from natural
disasters.

Typhoons, floods, and other natural disasters
caused by climate change will rise sharply.

Environmental GovernanceAchieving a Decarbonized Society
Achieving a Decarbonized Society
Contributing to a Decarbonized Society
Through the Decarbonization BusinessContributing to a Decarbonized Society at
Business Sites (Factories and Offices)

Environmental Data

Non-environmental
market factors(neither the 1.5°C
nor 4°C scenario)

Industrial equipment

Risks

Risks

Risks

Risks

The high frequency of natural disasters will increase
damage to power generation and transmission/
distribution facilities, hamper efforts to restore powertransmission/distribution, and disrupt supply chainsleading to delays in deliveries and the procurementof parts. Increased delays in the development andprovision of power generation, transmission, anddistribution equipment, facilities, and services
capable of withstanding frequent natural disasters.

Natural disasters will exacerbate damage to production facilities, worsen working environments,
and disrupt supply chains leading to delays indeliveries and the procurement of parts.

Natural disasters will exacerbate damage to production facilities, worsen working environments,
and disrupt supply chains leading to delays indeliveries and the procurement of parts.

Disclosure (Based on TCFD
Recommendations)
Achieving a Harmonized Society with Nature

IT systems

045

The high frequency of natural disasters will exacerbate damage to production facilities, worsen
working environments, and disrupt supply chainsleading to delays in deliveries and the procurementof parts.

	
Climate-related Financial Information

Achieving a Resource-Efficient Society

Power generation and power grids

Hitachi Sustainability Report 2023

Assurance

Opportunities

Opportunities

Opportunities

Opportunities

Transport systems more resilient to natural disasters
can be developed. Competitiveness can beenhanced by providing added value in such forms
as energy-saving railcars and adaptability to newtechnologies.

Energy demand will grow as warmer weather leads
to increased use of air conditioning. Demand will
increase for disaster-resilient power generation andtransmission/distribution technologies. Increase thecompetitiveness of existing power transmission anddistribution systems by making these systems more
resilient to extreme weather conditions.

Demand will increase for social and public systems
that help reduce damage from natural disasters andfor IT systems required as part of BCP.

Efforts to accommodate IoT products will lead tohigher demand for remote control and remote
maintenance during natural disasters.

● Economic growth will lead to urbanization andpopulation growth around the world which will
drive the railway business globally as an efficient
form of public transport for large numbers ofpassengers regardless of climate conditions.
Market size in Japan and Europe will remain flat,but the Asian market overall will see substantial
growth.
● Long-distance transport will decline going forward as the global pandemic restricts travel andencourages remote work. Although the decline indemand will not be as severe as that for airtransport.
● Competition will grow as major railway manufacturers in various countries will expand theirbusinesses to meet global demand.

● Economic growth, urbanization, and population
growth will push up demand for energy, especially electricity, mainly in developing countries.
● Political trends in each country and region related
to climate change and energy issues, andchanges in public awareness.
● Energy supply and demand will diversify due tovarious factors, such as CO2 emissions, theenvironmental burden, economic performance,
safety, and supply stability.
● Digital technology will develop further to enhance
the stability and efficiency of the power supply.

● Further digitization globally will exponentially
increase the volume of data circulated, accumulated, and analyzed. Experience with the global
pandemic will prompt a shift to remote, noncontact, and online formats, both in our life and work
and will boost demand for digital solutions thatfacilitate such a shift.
● New services and businesses utilizing big data,
IoT, AI, and other digital technology will expand.

● Digitalization, infrastructure renewal, population
decline, and worker shortages will expand theautomation market in industrial countries.
● As the global pandemic forces people to stay ator work from home, demand will grow for factory
automation enabling a handful of workers tooperate a factory.
● The industrial market in emerging economies willgrow due to a rise in production plants.

Introduction

Management

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

046

Environmental

Target businesses

Railway systems

Power generation and power grids

IT systems

Industrial equipment

Environmental

Response to futurebusiness risks(business
opportunities)

Response to business risks under 1.5°C or 4°C
scenarios

Response to business risks under 1.5°C or 4°C
scenarios

Response to business risks under 1.5°C or 4°C
scenarios

Response to business risks under 1.5°C or 4°C
scenarios● Continue to strengthen the railway business as
global demand for railways will increase undereither scenario.
● Specifically, develop and market more energy-­saving railcars and battery powered railcars for
non-electrified sections. Strengthen railway
services through digital utilization such as
dynamic headway (flexible operations in
response to passenger demand) and new mobility services like MaaS.
● Increase competitiveness by strengthening
sustainable activities while adhering to international standards, etc.
● Given the increasing frequency of natural disasters, take risk aversion into account when deciding the location and equipment layout of a newplant. Keep an eye on the supply chain instrengthening our ability to respond to businessdisruption risks in accordance with our BCPs.
Evaluate and analyze organizational structuresand physical locations and reflect the results ofthis work in response measures.

● Continue to enhance the response to relevantmarkets in view of expected higher demand fornon-fossil energy under either scenario.
● Strengthen the provision of grid solutions, digital
service solutions, and energy platforms that canaccommodate the increased use of renewableenergy and diversification of energy supply anddemand management.
● Given the increasing frequency of natural disasters, develop technologies for disaster-resilient
renewable energy systems and disruption-­
resistant power transmission/distribution systems. Take risk aversion into account when
deciding the location and equipment layout of anew production plant. Keep an eye on the supply
chain in strengthening our ability to respond tobusiness disruption risks in accordance with our
BCPs.

● Continue to develop innovative digital technologies, nurture necessary human capital, andenhance digital service solutions that generate
new value in view of the expected growth indemand for digital services and the subsequent
market expansion under either scenario.
● Specifically, enhance competitiveness by providing energy-saving and high efficiency IT solutions
that contribute to the following: zero-emissions;environment-related financial services for decarbonization businesses; social and public systems
to prevent natural disasters, reduce damage, andenhance resilience; and IT systems for BCPs.
● Given the increasing frequency of natural disasters, strengthen our ability to respond to business disruption risks in accordance with our
BCPs.
● Ensure competitiveness by decarbonizing data
centers actively.

● Under either scenario, continue developing
energy-saving, high efficiency products that use
IoT technology. Focus particularly on connected
products with communication features.
Miniaturized, high-efficiency, low-loss products
can also help reduce CO2 emissions.
● Given the increasing frequency of natural disasters, take risk aversion into account when deciding the location and equipment layout of a newplant. Keep an eye on the supply chain instrengthening our ability to respond to businessdisruption risks in accordance with our BCPs.

Partial impact on the revenue of the Railway
Systems Business, which accounted for approximately 6.8% of Hitachi’s revenue at 736.0 billion
yen in fiscal 2022

Partial impact on the revenue of the Energy Sector,
which accounted for approximately 16.4% of
Hitachi’s revenue at 1,787.6 billion yen in fiscal
2022

Partial impact on the revenue of the Digital Systems& Services Segment, which accounted for approximately 22.0% of Hitachi’s revenue at 2,389.0 billion
yen in fiscal 2022

Partial impact on the revenue of the Industrial
Products Business , which accounted for approximately 4.1% of Hitachi’s revenue at 451.1 billion
yen in fiscal 2022

Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceAchieving a Decarbonized Society
Achieving a Decarbonized Society
Contributing to a Decarbonized Society
Through the Decarbonization BusinessContributing to a Decarbonized Society at
Business Sites (Factories and Offices)	
Climate-related Financial Information

Disclosure (Based on TCFD
Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

Financial information (sales volumeof each target
sector)Note: The above scenario analyses are not future projections but attempts to examine our resilience to climate change. How the future unfolds may be quite different from any of these scenarios.

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Management

Environmental

Social Innovation

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

047

Climate-related Risks (Hitachi Group)
Based on a business-by-business review, Hitachi did not find any significant climate change-related risks that were difficult to respond to risks that present difficulties in response.
When considering whether existing businesses will be viable when a decarbonized society is realized, many businesses that use electricity as their energy must be able to adapt to a decarbonizedsociety by replacing the electricity they use with electricity derived from non-fossil energy sources. On the other hand, businesses that currently use fossil fuels will need to adapt to a decarbonizedsociety by adopting new technologies such as hydrogen and biomass, as well as various measures to offset CO2 emissions. Since many of Hitachi’s businesses use electricity, it is clear that there is little
significant risk arising from the unavailability of fossil fuels.

Environmental GovernanceAchieving a Decarbonized Society
Achieving a Decarbonized Society
Contributing to a Decarbonized Society
Through the Decarbonization BusinessContributing to a Decarbonized Society at
Business Sites (Factories and Offices)	
Climate-related Financial Information

Disclosure (Based on TCFD
Recommendations)

The following is a summary of Hitachi’s overall risks under the 1.5°C scenario and the 4°C scenario. Given Hitachi’s business format, we have determined that these risks related to climate change canbe addressed.
① Risks related to the transition to a decarbonized economy (applying mostly to the 1.5°C scenario)
Category

Time span

ImpactMain initiatives

Policy and legal

Increased business costs from the introduction ofcarbon taxes, fuel/energy consumption taxes,
emissions trading systems, and other measures

Short to long term

Medium● Shift from fossil fuel-using to non-fossil fuel-using businesses. Promote activities aimed at achieving carbon
neutrality.
● Avoid increases in business costs by further enhancing production and transport efficiency and promoting theuse of non-fossil fuel-based energy. Promote energy-saving equipment by introducing Hitachi Internal Carbon
Pricing (HICP)

Technology

Loss of sales opportunities due to delays intechnology development for products and services for a decarbonized society

Short to long term

Medium● Contribute to reducing CO2 emissions by developing and marketing innovative products and services that lead tothe achievement of long-term environmental targets and expanding the decarbonization business● Promote the development of energy-saving and low-carbon products by implementing Environmentally
Conscious Design Assessments when designing products and services

Market and reputation

Impact on sales due to changes in market values
or assessment of our approach to climate issues

Medium to long term

Minor

● Established goals of carbon neutrality in the Hitachi Environmental Innovation 2050 long-term environmental
targets; participated in COP26 and communicated to the world advanced technologies and initiatives that support the realization of a decarbonized societyTime span

ImpactMain initiatives

Short to long term

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

Major risks

Environmental Data

② Risks related to the physical impacts of climate change (4°C scenario)
Category

Acute and chronic
physical risks

Major risks
Climate-related risks to business continuity
including increased severity of typhoons, floods,
and droughts (acute risks), as well as rising sea
levels and chronic heat waves (chronic risks)● Considering the possibility of flood damage when deciding on the location or equipment layout of a new plant;measures tailored to the water risks of each manufacturing site will be strengthened in the future based on the
results of a water risk assessment now being conductedIntroduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental GovernanceAchieving a Decarbonized Society
Achieving a Decarbonized Society
Contributing to a Decarbonized Society
Through the Decarbonization BusinessContributing to a Decarbonized Society at
Business Sites (Factories and Offices)	
Climate-related Financial Information

Disclosure (Based on TCFD
Recommendations)Management

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

Climate-related Opportunities (Hitachi Group)
To achieve the CO2 reduction targets set forth in our long-term environmental targets and 2024 Mid-term Management Plan, it is important not only to decarbonize our business sites (factories andoffices), but also to reduce CO2 emissions from the use of products and services sold, which account for a large portion of emissions in our value chain. Developing and providing products and services
that emit zero or very little CO2 during their use will not only satisfy customer needs, but also help meet society’s demands for reduced emissions. This represents a business opportunity for us in the
short, medium, and long terms, and constitutes a major pillar of the Social Innovation Business that we are promoting as a management strategy.
Category

Major Opportunities

ImpactMain initiatives

Services and Markets
for Products

Increased corporate value and revenue fromexpanded sales of products and services with
innovative technology that can contribute to themitigation and adaptation of climate change

Major● Expand business areas that contribute to decarbonization.
● Promote decarbonized solutions and services through collaborative initiatives with customers.
● Focusing on the fields of energy, mobility, and connective industries we pursue the greater utilization of digital technology (Green by Digital)and develop products that offer world-class efficiency.

Resilience

Provision of solutions to address climate-related
natural disasters

Medium● Providing flood simulators and evacuation/emergency operation support systems● Providing disaster prevention solutions such as high-performance firefighting command systems

P.036 Expanding the Decarbonization BusinessP.054 Products and Services that Contribute to Resolving Water Issues

P.056 Addressing Risks Related to Water and Biodiversity

Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data048

The results of these studies indicate that Hitachi has not uncovered any significant or difficult-­toaddress climate change-related risks at this stage. We believe we can view our contributions toclimate change action as opportunities. Hitachi believes that we have high resilience in the transition to a decarbonized society in the medium to long term, as we closely monitor market trends
and develop business flexibly and strategically under both the 1.5°C and 4°C scenarios.

Introduction

Environmental

Management

Social Innovation

Risk Management
Structure

Environmental

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

049

Metrics and Target
Targets

P.013 Reflecting Sustainability Targets in Executive Compensation
Evaluation

Hitachi identifies, evaluates, and manages climate change-­

Hitachi defines medium- to long-term metrics and targets in

Advancing Our Environmental Vision andLong-Term Environmental Targets

related risks by business unit and Group company to deter-

the Hitachi Environmental Innovation 2050 long-term environ-mine environmental impacts and other factors. The results aremental targets. We also establish and manage short-term

Environmental GovernanceP.027 “Environmental Vision” and “Hitachi Environmental Innovation
2050”

tabulated by the Sustainability Promotion Division of Hitachi,

metrics and targets in detail every three years through theP.030 Environmental Action Plan

Achieving a Decarbonized SocietyLtd., and those risks and opportunities perceived as being

Environmental Action Plan.

Achieving a Decarbonized Society
Contributing to a Decarbonized Society
Through the Decarbonization BusinessContributing to a Decarbonized Society at
Business Sites (Factories and Offices)	
Climate-related Financial Information

Disclosure (Based on TCFD
Recommendations)
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data

particularly important for the Group as a whole are deliberated

Metrics for climate change mitigation and adaptation use

and decided by the Senior Executive Committee and, if neces-

total CO2 emissions and the reduction rate in CO2 emissions

sary, by the Board of Directors as well.

per unit. Total CO2 emissions from the use of sold products in
Scope 3, which account for most of our emissions given thenature of Hitachi’s business, fluctuate greatly due to changes
in sales volumes and our business portfolio. This has the
disadvantage of making it difficult to see the results of energy
saving and efficiency improvements. Therefore, we haveestablished CO2 emissions per unit as a metric for providing
customers and society with products and services that offer
equivalent value while emitting less CO2. We also set andmanage a metric for avoided emissions that contribute to therealization of a decarbonized society as a whole.
We continue to reduce CO2 emissions generated at ourown business sites (factories and offices) by utilizing the
Hitachi Internal Carbon Pricing (HICP) system, which provides
incentives for capital investments that contribute to CO2
reductions. The carbon price for HICP is set at 14,000 yen
per ton-CO2.
In addition, in April 2021, Hitachi, Ltd. introduced evaluations that take environmental value into account in the executive compensation system with a view to accelerating thecreation of environmental value toward achievement of longterm environmental targets.

P.035 Achieving a Decarbonized Society
P.036 Expanding the Decarbonization BusinessP.039 Contributing to a Decarbonized Society at Business Sites(Factories and Offices)
P.061 Calculating GHG Emissions Throughout the Value Chain(Fiscal 2022)

Introduction

Management

Social Innovation

Environmental

Environmental

Achieving a Resource-Efficient Society

Environmental

Efforts to Achieve a Resource-Efficient Society

Advancing Our Environmental Vision andLong-Term Environmental Targets
Environmental Governance

Environmental issues continue to intensify associated with

Achieving a Decarbonized Society

increased economic and social activities within the conven-

Achieving a Resource-Efficient Society

tional linear economy of mass production, mass consump-	Efforts to Achieve a Resource-Efficient
Society
Building a Society That Uses Resources
Efficiently
Building a Water-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Datation, and mass disposal. These problems involve resource
shortages, water scarcity, tight supply and demand forenergy, environmental pollution caused by increasing waste,
global warming, and the loss of biodiversity. To solve these
problems and create sustainable societies, we must shift
away from linear economies to circular economies. Hitachi
works together with customers and society to help build asociety that uses water and other resources efficiently.

SocialApproach

Governance

Hitachi considers the circularity of resources across the value
chain to be of key importance. We also believe in the importance of water usage reduction that takes into consideration

Hitachi Sustainability Report 2023

GRI 2-13/2-24/3-3 Initiatives to Achieve a Resource-Efficient Society

Building a society that uses
resources efficiently

Building a
Water-Efficient SocietyLong-term target

Long-term target

Improve resource use efficiency
by 50% in FY2050(compared to FY2010 level)
Main initiatives at business sites

Initiatives in the Value Chain

Assurance

Enhance
Shift to a circular­ fficiency in theeeconomyuse of resources

Achievinga ResourceEfficient
Society

Improve water use efficiency
by 50% in FY2050(compared to FY2010 level)
Main initiatives at business sites

Respond towater risks

Enhance­efficiency in theuse of water

water risks on a region-by-region basis at each stage of the
supply chain. Accordingly, we drive circular-design initiatives
and development tools, applications, and services that help
facilitate circular economies, and optimize water usage andwastewater treatment in the supply chain, provide water-­efficient products and services.

Initiatives at Business Sites
We established a long-term environmental target to improvethe efficiency with which water and other resources are usedby fiscal 2050. The actual goal is to improve efficiency by
50% compared to fiscal 2010. In addition, we will create
higher economic value using fewer resources while pursuing
production activities with a lower environmental burden.

Note: Our response to water risks that take biodiversity into consideration are detailed in Efforts to Achieve a Society Harmonized With Nature (P.055).

050

Introduction

Environmental
Environmental
Advancing Our Environmental Vision andLong-Term Environmental Targets

Management

Social Innovation

Environmental

SocialBuilding a Society That Uses Resources Efficiently

Governance

Hitachi Sustainability Report 2023

Assurance

051

GRI 301-1/301-2/301-3

Approach to Transitioning to a Circular Economy
Approach

Environmental Governance

To help build a society that uses resources efficiently, Hitachi

effective utilization rates related to plastic waste. In particular,

recycling, making continuous efforts to devise strategies forAchieving a Decarbonized Society

will advance a shift from the conventional linear economy to a

we initiated activities targeting all manufacturing sites thisthe most efficient utilization of resources and assets. To thisAchieving a Resource-Efficient Society

circular economy. Therefore, we will focus on how we canfiscal year with the aim of achieving Zero Waste to Landfill*1.

end, we share our goals with various stakeholders in the

products, tools, applications, and services necessary for ourdesign, innovation in the product manufacturing process, and3 Innovation of Business Modelgoals, leveraging the advantages of Hitachi’s IT × Operationalinnovation of our business model.

To adapt to a society that is transitioning from goods toTechnology (OT) × Products to support create circularexperiences, or in other words, from ownership to leasing,­economies not only in our value chain, but in customer

1 Innovation in Product Design

we pursue the effective use of resources and assets through­activities as well.

Through Environmentally Conscious Design Assessments andleasing, pay-per-use systems, subscriptions, products as aLife Cycle Assessments for new products that involve design

service, reuse, and sharing-based models. At the same time,

activities, we will reduce waste by standardizing parts,

we collect used products and consider their sale, repair, orAchieving a Harmonized Society with Nature
Environmental Data

we pursue research and development involving raw materials,

P.038 Improving the Environmental Performance of Products andServices Through Eco-Design

extending service life, utilizing recycled materials, and designing for easy recyclability. To this end, we revised the Hitachi
Eco Design Management Guidelines and Hitachi Eco Design
Activity Guidelines to reflect the latest international trends. At

Approach to Transitioning to a Circular Economy
Heat recovery

Heat recovery

the same time, we set a clear goal to apply the relevant
assessments to all new products involving design activities
and to achieve this goal by fiscal 2024.
2 Innovation in the Manufacturing Process

We share case studies among divisions to highlight initiatives
in this area. Case studies include product and parts manufac-

Procurement
Partners

In-house
Manufacturing
sites

turing volume optimization based on an understanding ofProcessing/
Assembly

established specific targets for the number of sites achieving

Shifting to a circular
economyRecycling

In-house
Manufacturing
sites

Processing/
Assembly
Refurbishment
Reuse

designCustomers

Use

2 Innovation in the

Waste­manufacturing process
3 Innovation of businessmodel

the reduction of defective products through quality improvement, and the reduction of chemical substances. Further, we

Waste
Waste plastic
Toxic
substancesRawmaterials

1 Innovation in productsupply and demand, digitization of design processes forpaperless work, the reduction of packaging material usage,

Procurement
PartnersRawmaterials

Customers

Use
Recycling
Sharing and resale

the goal of the Zero Waste to Landfill initiative, as well as for
Note: Hitachi normally refers to suppliers (including vendors and providers) as procurement partners, with whom we build business together on an equal footing.

In-house collection

Building a Water-Efficient Society

using three approaches: innovation in upstream productvalue chain and pursue collaborative creation. Additionally,

Third-party
collection	Building a Society That Uses Resources
Efficiently

ties and reduce waste, or even eliminate waste altogether,*1 Pursued in careful compliance with regulations, conditions, etc., in eachcountry or region

Third-party
collection

Efforts to Achieve a Resource-Efficient Society

continue to use resources and assets in our business activi-

Introduction

Environmental

Management

Social Innovation

Environmental

SocialGovernanceManagement of Waste and Valuables Generated at Business Sites
GRI 306-1/306-2/306-3

Activities

Environmental

We collect environmental load data for waste and valuables*1

Advancing Our Environmental Vision andLong-Term Environmental Targets

generated at the business sites using the Environmental Data

Environmental Governanceof waste and valuables generated and exported by type. For

Achieving a Decarbonized Society

hazardous waste, in particular, we ensure thorough compli-

Achieving a Resource-Efficient Society

ance with laws and regulations, and engage in proper dis-Efforts to Achieve a Resource-Efficient Society	Building a Society That Uses Resources
Efficiently
Building a Water-Efficient Society
Achieving a Harmonized Society with Nature
Environmental Data052

Hitachi Sustainability Report 2023

Assurance

Collection System (Eco-DS) to manage centrally the volumes

Reduction Rate in Waste and Valuables Generation*1 per Unit
(Hitachi Group)16
reduction

Environmental Action Plan for 2024 (fiscal 2022–2024), wea base year of fiscal 2010) for waste and valuables generated. We outperformed this target by achieving a reductionof 16%.

Target: 14%

100%
Amount generated= Activity amount*

2

1,384

1,000

84%

Amount generated= Activity amountWe reduced the amount of waste and valuables gener-

within our business sites, as well as through closed-loop

FY2010

FY2022(base year)

recycling, whereby byproducts and scrap from the production process are reused as resources by other businesssites, while packing and cushioning materials for transportation are used repeatedly.
*1 Waste and valuables: Materials generated through business activities. Eachcountry has a legal definition of waste, and in Japan, the term refers to refuse,bulky refuse, ashes, sludge, excreta, waste oil, waste acid and alkali, carcasses, and other filthy and unnecessary matter, which are in a solid or liquidstate according to the Waste Management and Public Cleansing Law.
Valuables, meanwhile, are those materials left over after business activities
other than waste, and can be sold or transferred free of charge to other parties
as items of value.

12
4

1,302

14
10

1,061
722

656

1,111
9
9

500

130
55

*1 Amount of waste and valuables generated from the production process.
*2 Activity amount is a value closely related to waste and valuables generation ateach business site (for example, output, sales, and production weight).

21
10

613

582
148
56

461

418

2018

2019

100

87
50

49

356
62

38
43
34

311

331

69

2020

2021

2022*20ated by 70 kt, or 23%, compared to the base year. We
accomplished this result by installing recycling facilities

ASEAN, India, and other Asian regions
EuropeOther regions

1,500

%

For fiscal 2022, which was the first year of the

Japan
China
North America(kt)

From base year

posal within the Group.

established a 14% per-unit reduction target (compared with

Waste and Valuables Generation*1 (Hitachi Group)

Environmental Action Plan for 2024 Management Values

109

(FY)

*1 Waste and valuables: Through fiscal 2021, this volume was the amount ofwaste and valuables generated by major business sites. Beginning in fiscal
2022, this volume is the total amount of waste and valuables generated in the
manufacturing processes of all business sites and the amount generated at
offices other than manufacturing processes.
*2 Beginning in fiscal 2022, the report above includes waste and valuables
generated by an energy-related company and auto parts companies in fiscal
2022. Significant decrease due to deconsolidation of materials-related andconstruction machinery-related companies.

P.063 Environmental Load from Operations
Case Studies of Efficient Use of Resources
https://www.hitachi.com/environment/casestudy/index.html#case04

Introduction

Environmental
Environmental

Management

Social Innovation

Number of Sites Achieving the Goal of the Zero
Waste to Landfill Initiative
Activities

Environmental

SocialGovernance

Effective Utilization Rate of Plastic Waste

Assurance

Hitachi Sustainability Report 2023

053

Hitachi Global Life Solutions, whose plastic consumption
accounts for around 70% of the Hitachi Group’s total, uses

Activities

recycled plastic in parts for washing machines and refrigera-

Materiality

We began strengthening our activities in fiscal 2022 toward

tors and packing materials for ceiling lights. The company

Advancing Our Environmental Vision andLong-Term Environmental Targets

We pursue activities to achieve the goals of the Zero Waste toachieving a 100% effective utilization*1 rate of waste plastics

procures recycled plastic materials produced within the

Landfill*1 initiative, which seeks to minimize landfill disposal forthroughout the entire Hitachi Group by fiscal 2030. In fiscal

Hitachi Group, such as plastic parts recovered from end-of-life

Environmental Governancethe ongoing, sustainable utilization of resources. This fiscal

2022, we set an effective utilization rate target of 77% andhome appliances and plastic containers, and also uses recy-

Achieving a Decarbonized Society

year, we set specific targets for the number of manufacturing

achieved 88%. To improve the effective utilization rate, we arecled plastics sourced from other materials manufacturers.

Achieving a Resource-Efficient Societysites to achieve zero landfill waste, and we are stepping up

implementing measures that include design changes for

efforts to accelerate this initiative. In fiscal 2022, 199 of theequipment and products that do not generate waste, digitiza-bases in the lower parts of units, etc.) were previously madesites covered by our activities achieved zero landfill waste.

tion of operations for paperless work, reduction of waste

using a mixture of new and recycled materials, the company

through yield improvements, in-house reuse, sorting andshifted to almost 100% recycled plastics, achieved by solving

accumulation waste to enhance value, and recycling mea-

technical problems and procurement issues.

Efforts to Achieve a Resource-Efficient Society	Building a Society That Uses Resources
Efficiently
Building a Water-Efficient Societysures through detailed sorting.

While large components in washing machines (enclosure

Hitachi Global Life Solutions works to recycle four catego-

Achieving a Harmonized Society with Natureries of end-of-life home appliances (air conditioners, TVs,
refrigerators/freezers, and washing machines/dryers) at 19

Environmental Data
Environmental Action Plan for 2024 Management Values

Number of sites
achieving zero landfill
waste

199


business sites(58% achievement)
FY2022 target:
90 business sites (approx. 25%)

Environmental Action Plan for 2024 Management Values

Effective utilization
rate of plastic waste

88

recycling plants as part of cooperative efforts among fivecompanies*2 in response to the 2001 Act on Recycling of% achievement

Specified Home Appliances. A total of 91.3 kt of recyclable
materials*3 were recovered in fiscal 2022, of which approximately 81.9 kt were recycled. By product type, the recycling

FY2022 target: 77%

rate for refrigerators and freezers was 80% exceeding thelegal requirement of 70% by 10 percentage points, and forwashing machines and dryers it was 94% exceeding the legal

Note: All manufacturing sites are covered*1 Zero Waste to Landfill goal: Defined as a final disposal rate (landfill disposal/
waste and valuables) of less than 0.5% in any given fiscal year in the HitachiGroup. Pursued in assumed conformance with regulations, conditions, etc.

requirement of 82% by 12 percentage points.
*1 Effective utilization encompasses material recycling, chemical recycling, andthermal recovery. Pursued in assumed conformance with regulations, conditions, etc.
*2 Hitachi Global Life Solutions, Sharp Corporation, Sony Corporation, Fujitsu
General Limited, and Mitsubishi Electric Corporation.
*3 Parts and materials recovered from four categories of end-of-life home appliances (air conditioners, TVs, refrigerators/freezers, and washing machines/
dryers) and recycled through in-house use, sale, or transfer free of charge toother entities for use. Data values are aggregated from Hitachi Global Life
Solutions and Johnson Controls-Hitachi Air Conditioning.

Introduction

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

Achieving a Resource-Efficient Society
Efforts to Achieve a Resource-Efficient Society
Building a Society That Uses Resources
Efficiently	Building a Water-Efficient Society
Achieving a Harmonized Society with Nature
Environmental DataManagement

Environmental

Social Innovation

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

054

Building a Water-Efficient SocietyManagement of Water Use at Business Sites
Activities

GRI 303-1/303-2/303-5

Materiality

For fiscal 2022, the first year of the Environmental Action Plan
for 2024 (fiscal 2022–2024), we set a target reduction of 22%(compared with a base year of fiscal 2010) in water use perunit for manufacturing process and general daily usage inmanufacturing sites. We improved on this target with a reduction of 27%. We reduced the volume of water used by 11
million m3, equivalent to a reduction of 45% compared withthe base year. Our measures to reduce water usage included
more stringent management of water intake using flowmeters,
installing water pipes above ground for better leakage control,
recirculating cooling water, and reusing purified waste water.

Environmental Action Plan for 2024 Management Values
Reduction in Water Usage*1 per unit (Hitachi Group)

From base year

27
reduction

100%= Activity amount*

FY2010

50
40

37.02

30
20
10

0.26
0.04

36.41

2.45
3.93
1.34

0.35
0.28
2.36
4.09
1.32

29.00

28.01

26.35

0.33
0.36
3.30
1.92
0.95

26.03

0.32
0.21
3.68
1.88
0.87

19.50

14.56

19.08

0

2018

2019

2020

2021

2022*2

0.42
3.57
0.57
0.92
0.90
8.19

*1 Total volume of water used in manufacturing processes and general daily usageat manufacturing sites and in general daily usage at locations other thanmanufacturing sites.
*2 The water usage of an energy-related company included in the scope of consolidation since fiscal 2020 is included in the figures above beginning fiscal 2022.
The water usage for fiscal 2022 by auto parts companies included in the scope of
consolidation since fiscal 2020 is not included in the figures above, but amounted
to 412 million m3. The total water usage was decreased significantly due to thedeconsolidation of the materials- and construction machinery companies.

Case Studies of Improving Water Use Efficiency

73%=

Water usage
Activity
amountFY2022(base year)*1 Total amount of water used in manufacturing process and general daily usageat manufacturing sites.
*2 Activity amount is a value closely related to water use at each business site (forexample, output, sales, and production weight).

Hitachi’s Water-related Products and Services
Activity field
Creating water
resources(FY)

https://www.hitachi.com/environment/casestudy/index.html#case03

Target: 22%2■ Japan ■ China ■ ASEAN, India, and other Asian regions■ North America ■ Europe ■ Other regions(million m3)

P.063 Environmental Load from Operations%

Water usage

Water Usage* (Hitachi Group)1

wide-area monitoring and control system for nine prefectural
water treatment plants. This project involves designing and building a system that monitors and operates facilities centrally via acommon cloud-based platform. The system handles data fromdifferent systems with different specifications supplied by various
vendors, as well as data from software that utilizes Hitachi’s
digital technology. This project will contribute to wide-area control
and management and as digitization (DX) in the water industry.

Products and Services That Contribute to
Resolving Water Issues
Activities

Hitachi is a comprehensive water services provider that has built
a solid track record of experience and expertise in operational
technology (OT), products, and services in the sector. We contribute to the effective use of limited water resources by addressing the many issues facing our customers in the water andsewage treatment business. We achieve these results by leveraging a combination of our IT, extensive experience, and considerable expertise in a variety of fields. A recent example includes
our joint venture with Mizu Mirai Hiroshima Corporation, which
was awarded a contract by Hiroshima Prefecture to build a

Products or services (implementation to date)
Wastewater recycling systems
Seawater desalination systems
Water and sewage treatment, etc.
(over 200 sites in about 40 countries and regions)

Developing water
infrastructure

Water purification plants(approximately 700 plants in Japan)
Sewage treatment plants(approximately 900 plants in Japan)
Comprehensive digital solutions for water andsewage treatment operators

Integrated flood
control measures

Flood forecasting and simulation technology related
to evacuations and emergencies

We are also engaged in verification tests and joint research withnational and local governments, companies, and other organizations in various countries to establish new technologies andsystems for the water business. These joint activities include
recent work with Higashine City, Yamagata Prefecture, on integrated flood control measures. The actual research involved
technologies for real-time flood forecasting and for simulating
evacuations and emergencies. We also demonstrated theeffectiveness of the technologies that were part of this research.
In addition, we began joint research with Water Agency Inc.,
whose business includes water and sewage treatment operations, to develop a practical AI/IoT-based sludge-reduction
service for sewage treatment plants.
Water Environment Solutions

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

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.