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 withAchieving 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-EfficientSociety
Building a Society That Uses Resources
Efficiently
Building a Water-Efficient SocietyAchieving 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 ChainAssurance

Enhance
Shift to a circular­ fficiency in theeeconomy
use of resources

Achievinga ResourceEfficient
SocietyImprove 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 thesupply 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 SitesWe 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 theproducts, 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. AtApproach 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/
AssemblyRefurbishment
Reuse

designCustomers

Use

2 Innovation in theWaste­manufacturing 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. ForAchieving 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*21,384

1,00084%

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.

1241,302

14
10

1,061
722

656

1,111
99500

13055

*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).

2110613

582
148
56

461

418

2018

2019

100

87
50

49

356
62

38
43
34

311

331

69

2020

2021

2022*20

ated 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 theJapan
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 themanufacturing processes of all business sites and the amount generated atoffices 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

AssuranceHitachi Sustainability Report 2023053

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

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 theLandfill*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 landfillwaste

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 SitesActivities

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

Materiality

For fiscal 2022, the first year of the Environmental Action Planfor 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

02018

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 ofconsolidation 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 floodcontrol 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