Introduction

Management

Social Innovation

Environmental

Environmental

Environmental Governance

Environmental

Framework for Promoting Environmental Governance

Advancing Our Environmental Vision andLong-Term Environmental Targets

SocialGovernance

StructureAssurance

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 executiveGroup company. The purpose of these meetings is to discuss and share information related toofficers 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 theprocurement 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-Management3R 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 SystemAchieving a Decarbonized Society
Achieving a Resource-Efficient Society
Achieving a Harmonized Society with Nature
Environmental DataManagement

Environmental

Social Innovation

SocialGovernance

Assurance

Hitachi Sustainability Report 2023032

Environmental Management System
Enhancing Our Environmental Management SystemSystem

Environmental 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 theseour 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.

1years, 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 toimprove 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 toand 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, wesubstances 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 airquality, 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 toreduce 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. Eachyear, 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 Targetstions 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 detectness 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 isand 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 NatureEnvironmental 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*2Divisions 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 2023034