VI. Report on Environmental Aspects
1. Environmental management(1) The Hitachi Metals Group’s Environmental Vision
The Hitachi Metals Group promotes "efforts toward a decarbonized society," "contribution to a resourceefficient society," and "biodiversity conservation" as the three key pillars of its environmental vision. We
aim to achieve both higher quality lifestyles and a sustainable society by resolving environmental issues
in collaboration with our stakeholders. The Group will implement the FY2022 Environmental Action Planby category, at each business site, in order to reduce CO2 emissions, use water and other resources
efficiently, and minimize impacts on natural capital throughout its value chain. In addition, we have set
long-term targets to achieve carbon neutrality―effectively zero carbon emissions―by 2050, an
approach to realizing the vision of a decarbonized society by 2050.

Hitachi Metals Group Codes of Conduct
Toward a Sustainable Society
1. We will contribute to resolving social issues by promoting innovative solutions, accelerating collaborative creation with partners and stakeholders, andfurther
integrating social and environmental responsibility into our business activities.
2. We will strive to develop technologies that contribute to social development
and use them with due consideration of their impact on society.
3. We envision a low-carbon society, a resource efficient society, and a society inharmony with nature.
To this end, we will endeavor to reduce CO2 emissions, use water and otherresources efficiently, and minimize impacts
on natural capital throughout our value chain.
4. As a corporate citizen, we will make efforts to build a rapport with local
communities and contribute to their development
by working together to resolve social issues.

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Hitachi Metals Group CSR Detailed Activity Report 2022

(2) Hitachi Metals Group Basic Environmental Protection Policies
Hitachi Metals Group Basic Environmental Protection Policies
Philosophy
Hitachi Metals’ Corporate Creed is to “contribute to society by being the best enterprise.”
In line with this, we regard it as crucial to ensure that humanity’s shared environmental
resources can be passed down to future generations in the best possible condition.
Accordingly, throughout our operations we treat environmental considerations as an issueof the highest importance and strive actively to promote environmental protection efforts on
both the global and local community levels.
Slogan● With a deep awareness that environmental protection is a major issue for all humanity,
fulfill social responsibilities by striving to establish a sustainable society in harmony withthe environment, regarding it as one of the essential aspects of corporate activity.
● Contribute to society by developing highly reliable technologies and products in responseto needs for environmental protection and the limited nature of resources.
Business Conduct Guidelines
1. Compliance with environmental laws and regulations, and prevention of pollution
Comply with all applicable laws and regulations concerning environmental issues on alllevels, from international laws to national, regional, and local pacts. Establish voluntary
environmental standards as needed in order to assure compliance.
Identify potential environmental problems and take action to prevent pollution. In the eventthat environmental problems have occurred, take appropriate countermeasures to minimize
environmental impact.
2. Maintenance of environmental organizational structure and enhancement ofenvironmental supervision
Maintain an organizational structure that includes leadership by an executive responsible
for managing environmental issues, as well as an underlying administrative structure.
Promote environmental protection activities by applying voluntary environmental standards
and establishing clear environment-related goals.
Additionally, strive to continually improve our environmental management throughconfirming that our environmental protection activities are being carried out in an adequate,
effective, and proper manner.
3. Promotion of global manufacturing with consideration of LCA (Life Cycle
Assessment)
Endeavor to reduce the environmental burden in the entire life cycle, including R&D,
product design, manufacture, distribution, sale, use, and disposal. Promote the following
as global manufacturing priorities:
1) Environment-conscious products, 2) prevention of climate change, 3) conservation andrecycling of resources, 4) chemical management, and 5) conservation of biodiversity.
4. Environmental consideration at sites all over the world
Consider environmental impact in the areas around our manufacturing sites, and strive tocarry out policies responsive to the requirements and needs of the local communities.
5. Education and training to increase environmental awarenessEducate and train employees about environmental protection and the importance ofcompliance with environmental laws and regulations to raise employees’ awareness of theenvironment from a broad perspective.
6. Information disclosure
Promote positive communication through the disclosure of information regarding environmental
protection activities to stakeholders, strengthen mutual understanding and foster a collaborative
relationship.
Formulated: April 1, 2010
Revised: December 1, 2016

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Hitachi Metals Group CSR Detailed Activity Report 2022

(3) The Hitachi Metals Group’s Environmental Management Promotion Structure(a) Governance
In April 2010, Hitachi Metals Group established the Hitachi Metals Group Basic Policy on Environmental
Preservation to clarify the Group’s unified approach to environmental management. In June 2021, weregistered our support for the TCFD Recommendations, and in August of that year, following a report to
the Board of Directors, we established a new environmental policy named “Aiming for Green Growth
while taking Risks as Opportunities.”
The Hitachi Metals Group Environmental Committee (Group Environmental Committee, hereinafter) has
been established as a framework for promoting environmental activities such as climate-change
countermeasures. The Group Environmental Committee is chaired by the Technology Development
Executive Officer, and its executive office is the Environmental Strategy Department, Technology
Development Division. Its activities are promoted in cooperation with the environmental management
managers of each business division, business sites, and group companies. The Group Environmental
Committee is responsible for developing environment-related regulations, setting targets for reducing
environmental impact, and confirming that activities are appropriate and effective.
Policies and targets concerning environmental activities are discussed and set by the Group
Environmental Committee as mid-term and annual environmental-action plans. With regard to climatechange countermeasures, the Environmental Action Plan sets targets for reducing CO 2 emissions within
the Hitachi Metals Group. On the basis of those targets, energy-saving activities and the use ofrenewable energy are being promoted at each manufacturing site. The status of reductions in CO 2
emissions is monitored regularly, and the Group Environmental Committee meets once a year to share
the results of the previous year, the status of numerical targets for the current year, and major initiatives
to promote continuous improvement of activities.
From fiscal year 2021, the Technology Development Executive Officer, who chairs the Group
Environmental Committee, reports to the Executive Committee and the Board of Directors twice a year
on the status of efforts, including climate-change measures, to address environmental issues.

Status of important decisions on climate change in fiscal year 2021
Month/Year

Decisions on important issues related to climate change

Meeting body

June 2021

Endorsement of TCFD

Executive
Committee

August 2021

New Environmental Action Policy “Aiming for Green Growth by
Taking Risks as Opportunities”

Board ofDirectors

October
2021

Introduction of “Internal Carbon Price”
Internal rules on capital investment stipulate that the effect of CO 2
reduction by capital investment must be calculated as profit on thebasis of the “internal carbon price” and incorporated into profit plans.

Executive
Committee

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Hitachi Metals Group CSR Detailed Activity Report 2022

Environmental Promotion Structure(b)Risk Management
In April 2022, Hitachi Metals Group established a “Companywide Risk Management Committee” (RMC)
under the supervision of the Executive Officer responsible for group-risk management. The RMC
summarizes various business risks surrounding the Group and contingency plans for those risks, andevaluates their coverage and weighting. Risks related to climate change identified by the Group
Environmental Committee, corporate administrative divisions, and business divisions are reported to the
RMC together with other risks as risks related to environmental regulations. The RMC is scheduled tomeet twice a year, and the results of the interim and year-end risk-management assessments of the
RMC are reported to and reviewed by the Executive Committee and the Board of Directors.

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Hitachi Metals Group CSR Detailed Activity Report 2022

Risk Management Structure42
Hitachi Metals Group CSR Detailed Activity Report 2022

(4) Fiscal 2019–Fiscal 2021 Medium-Term Environmental Action Plan and Fiscal 2021 Results
The Hitachi Metals Group’s Medium-Term Environmental Action Plan for fiscal 2019 to fiscal 2021, alongwith results and assessments for fiscal 2021, are summarized in the table below.
Achievement rating: 〇: fully achieved; △: 90% achieved; ×: not achieved

Item

Governance2019

Action Target

ActualRatingTargetActualRatingTargetAdhere toInternal audit
environmental
implementation
compliance practices
rate
and reduce risks

100
%

100
%

○

100
%

100
%

○

100
%

Implement
environmental
auditordevelopmenttraining

1 or
more

Twice

○

1 or
more

Once

○

1 or
more

Once

○

e-learning
Participation rate

100
%

－*1

－*1

100
%

92%

△

100%

97%

△

GREEN21-2021

140
GP

166
GP

○

210
GP

180
GP

×

280
GP

213
GP

×

23%

20.2%

×

24%

21.2%

×

25%

7

11

○

9
(Two
years)

99(Twoyears)

9〇

Cultivate
environmental
literacy

Conduct environmentally conscious
design assessments(20 over three years)

Rating

○

21.4%

×

〇

Reduce CO2
emissions fromWorks

Improvement rateof CO2 emissions
per production unit
(vs. FY2010)

5%

1.4%

×

6%

-2.3%

×

7%

2.1%

×

Reduce CO2
emissions
duringtransportation

Improvement rateof energy
consumption
per transportation
unit(vs. FY2010)19%

31.9% 〇

20%

29.6% 〇

21%

33.4%

〇

12%

16.6% 〇

13%

15.2% 〇

14%

18.9%

〇

14%

13.7% 〇

13%

10.9% 〇

12%

11.7%

〇

22%

22.2% 〇

24%

12.2%

×

26%

29.9%

〇

26%

22.6%

27%

34.2% 〇

25%

33.7%

〇

Factories

Resource
circulation

Actual100%

Sales ratio of key environmentallyconscious products

Lowcarbon
society

2021

TargetImproveenvironmental
activity level

Products

2020

Reduce andrecycle waste

Improvement in therate of waste andvaluables generated
per production unit
(vs. FY2010)

Resource
efficientsociety

Waste landfill rate*2

Water
resources

Improve wateruse
efficiency

Society in
Reduce output of
harmony Chemicalchemicalwith
substances
substances
natureImprovement rate ofwater usage per
production unit (vs.
FY2010)
Improvement rate of
per unit rate ofchemical substances
released into theatmosphere*3

×43
Hitachi Metals Group CSR Detailed Activity Report 2022

Preservation
of
ecosy
stems

Collaboration
withstakeholders

Forestconservation
activities (numberof initiatives)

4

4

〇

4

2

×

4

5

〇

Preservation of
ecosystems

Activities forpreservation of
ecosystems(cumulative total
number of initiatives)

4

17

〇

8

9

〇

12

14

〇

Socialcontribution

Continue
activities andreduceCommunity cleanup
environmental
activities, Lights Down
impact incampaigns, etc.
aspects otherthan theprotection of
ecosystems

Continue
activities andreduceenvironmental〇 impact inaspects otherthan theprotection of
ecosystems〇

Impact on natural
capitalContinue
activities andreduceenvironmental〇 impact inaspects otherthan theprotection of
ecosystems*1. Environmental e-learning is implemented as new general environmental education starting from FY2020 after educational
methods and contents (teaching materials) are reviewed. In FY2019, e-learning was not conducted as it was under preparation.
At each business site, general environmental education is conducted as usual.
*2. Excluding household waste, hazardous waste, and in-house landfills (landfills on the Company’s sites)*3. Excluding Kumagaya Light Alloy Plant from Actual values for fiscal 2020, due to its withdrawal from business

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Hitachi Metals Group CSR Detailed Activity Report 2022

Fiscal 2022–Fiscal 2024 Medium-Term Environmental Action Plan
The Hitachi Metals Group’s Medium-Term Environmental Action Plan for fiscal 2022 to fiscal 2024 is
implemented as follows.
Item

Action Target

Numerical Target (FY)
2022

2023

2024

100%

100%

100%

Once

Once

Once

Adhere to environmental
Internal audit implementation
compliance practices
rate
and reduce risks
Implement education for new
Governance
Cultivate

Products

hires

environmental

Implement environmental

1 or

1 or

1 or

literacy

auditor development training

more

more

more

e-learning attendance rate

100%

100%

100%

23%

24%

25%

20%

20%

22%

1%

1%

1%

33%

34%

35%

11.5%

11.0%

10.5%

33%

34%

35%

26%

27%

28%

Sales ratio of key environmentally conscious products
Reduce CO2
Reduce CO2 emissions (vs.
emissions from
FY2015) (total)

Low-carbon
society

Works
Factories

Improvement rate of energy
Reduce CO2
consumption peremissions duringtransportation unittransportation(Japan) (year-on-year)
Improvement in the rate ofwaste and valuables

Resource-

Resource

Reduce and recycle

circulation

waste

generated per production unit
(vs. FY2010)

efficient
Waste landfill ratesociety
Improvement rate of water
Water

Improve water-use

resources

efficiency

usage per production unit (vs.
FY2010)Preservation

Improvement rate of per unit
ChemicalReduce output of

substanceschemical substancesofecosystems

rate of chemical substances
released into the atmosphere45
Hitachi Metals Group CSR Detailed Activity Report 2022

Preservation

Continue activities andofPromote and contribute to activities for preservation ofcontribute to preservation of

ecosystems

ecosystems

ecosystems through overall
corporate activities
Continue activities and reduce

Collaboration with

Community cleanup activities,

environmental impact from

Lights Down campaigns, etc.

aspects other than theSocial contribution
stakeholders

protection of ecosystems

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Hitachi Metals Group CSR Detailed Activity Report 2022

(5) Environmental Accounting
The Hitachi Metals Group has introduced environmental accounting to allocate corporate resources
appropriately and continuously improve the efficiency of environmental investments and activities. The
Group also aims to increase the understanding of its stakeholders by disclosing information about theeffect and efficiency of its activities.
Environmental costs include things like environment-related capital investment, equipment maintenanceand administration costs, and R&D costs.
Environmental effects include economic effects measured in monetary terms and categorized underwaste processing and recycling, energy conservation, and others (R&D, recycling of products andpacking materials, etc.).
The results for fiscal 2020 are as follows:(a) Environmental Costs
Our environmental costs in fiscal 2021 were 9.79 billion yen in expenses and 0.3 billion yen in
investment, for a total of 10.09 billion yen.

(b) Environmental Effects
The economic effects amounted to a total of 14.67 billion yen, primarily due to waste elimination,
recycling, and energy conservation.

(c) Results of Environmental Accounting■Environmental Costs(100 million yen)

FY2020
ExpenseInvestment

Cost classification
Pollution
prevention
Globalenvironmental
preservation
Resource
recycling

FY2021
ExpenseInvestment

14.3

1.5

14.2

1.2

19.0

3.9

18.6

1.5

23.8

0.5

34.7

0.3

57.1

5.8

67.5

3.0

2.4

0.0

2.4

0.0

Management activity costs

6.9

0.0

18.3

0.0

Research
costs

11.0

0.0

9.2

0.0

Community activity costs

0.0

0.0

0.0

0.0

Other

0.6

0.0

0.4

0.0

78.0

5.8

97.9

3.0

Businessarea costs

Subtotal
Upstream
costs

and

and

Total

downstream

development

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Hitachi Metals Group CSR Detailed Activity Report 2022

■Environmental Effects

Economic
Effects(100 million yen)

Item
Waste processing andrecycling
Energy conservation
Other
Total

FY2020

FY2021

100.5

142.8

1.8

1.6

2.4

2.3

104.7

146.7

●Scope of disclosure: The Hitachi Metals Group in Japan●Calculation period: April 1, 2021 to March 31, 2022

(6) Integrated Environmental Management System (Integrated EMS*1)
The Hitachi Metals Group has introduced ISO 14001 as its environmental management system.
We began acquiring certification for individual factories in 1997, and then built integrated Environmental
Management Systems (integrated EMS*1) at each segment of the Business Headquarters (specialty
steel as well as functional components and equipment of the Advanced Metals Division, and magnetic
materials and applications as well as wires, cables, and related products of the Advanced Components
and Materials Division). This action was prompted by the increasing necessity of close links with
headquarters departments in areas such as engineering, planning, and sales, to comply with productenvironmental regulations and expand sales of eco-products.
ISO 14001:2015, revised in September 2015, requires that environmental management be in balancewith the strategic direction of the business and integrated with business processes. We strove totransition to the 2015 requirements as we worked toward an integrated EMS for each segment of theBusiness Headquarters, and completed the transition during fiscal 2017.
Since April 2019, we have shifted to a two-division organization consisting of the Advanced Metals
Division and the Advanced Components and Materials Division. However, the EMS of each segment (theformer four internal companies) has been implemented within the new system of the Business
Headquarters.
*1: Environmental Management System(7) Environmental Auditing
The Environmental Management Department, Technology, Research and Development Division,
conducts companywide environmental audits in an attempt to achieve thorough adherence andcompliance with environment-related laws and regulations, appropriate EMS management regarding
environmental action plan, and comprehensively mitigate environmental risks.
In fiscal 2021, environmental affairs audits were conducted at seven sites (six in Japan and one outside
Japan) in conjunction with internal audits. We confirmed that there were no major non-conformities
requiring immediate administrative guidance. Although 15 minor non-conformities were revealed, actions
to correct them are underway according to plan.

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Hitachi Metals Group CSR Detailed Activity Report 2022

(8) Environmental Education and Awareness Promotion
The Hitachi Metals Group has set up training systems as part of our EMS, and has established clearly
defined roles for companywide training and individual factory-level training for further improvement of theemployees’ environmental awareness as well as the enhancement of knowledge and skills relevant toeach workplace.
Environmental Training Systems

TargetGeneraleducation

Description

All employees

e-learning

Eco-mind training (Hitachi Metals Group)

On-siteemployees

On-site environmental
education

General education on ISO14001 and environmental
management performed by general employees

New supervisor

Education for new
supervisor

Environmental issues and workplace responsibilities

Environmental Internal
Auditor training

Environmental laws and regulations, EMS
recognition and environmental skills

Environmental officer
training

Education for staff responsible for environmental
affairs, and comprehensive risk management

Qualification-based training

Education to develop legally qualified personnel(including external training)

Environmental
Professional Internal Auditors
education Environmental
officers
Legally qualified
personnel

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Hitachi Metals Group CSR Detailed Activity Report 2022

(9) Environmental Management Level “GREEN21-2021” Activities
The Hitachi Group promotes “GREEN21” as a system to assess point scores for ongoing improvement
in environmental activities and for raising the level of activity. The Group revised GREEN21 for the fifth
time in fiscal 2019, and pursues activities under GREEN21-2021 during the three years from fiscal 2019
to fiscal 2021.
In GREEN21-2021, activities are categorized under the four items in the table below, and are assessedand scored in accordance with the achievement status of the Environmental Action Plan. Additional
points are provided for upward revision of targets, external awards, etc.
In fiscal 2021, the Hitachi Metals Group scored 213 Green Points (GPs) in the four categories, failing toachieve our target of 280 GPs. We will continue our efforts to achieve the targets of the Environmental
Action Plan and make further progress.
Environmental
management70

FY2021 (actual)
FY2021 (target)

60
50
40
30
20
Society in harmony withnature100Low-carbon society

Resource efficient societyNo.

Category (Rating Form)

1

Environmental management2

Low-carbon society

3

Resource efficient society

4Society in harmony with nature

Main Rating Contents
Enhancement of global environmental
management; enhancement of management at
small and medium-sized sites;
HR development for environmental management;
legal compliance; decreasing number of complaints
CO2 emissions reduction amount/rate related to
products and services
Improvement of CO2 emissions per production unit
Reduction of CO2 emissions attributable totransportation (shippers)
Improvement rate of water usage per production
unit; reduction of water usage
Response to water-related risks
Reduction of waste valuable resources;
improvement of such resources per unit; waste
landfill rate; raw material usage status; productrecycling implementation status
Improvement rate of per unit rate of chemical
substances released into the atmosphere
Activities for preservation of ecosystems
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Hitachi Metals Group CSR Detailed Activity Report 2022

GREEN21-2021 Targets and FY2020 Achievement(FY)
TargetActual

FY2019140
166

FY2020210
180

FY2021280213(10) The State of External Communications about the Environment(a) Participation in Exhibitions
The Hitachi Metals Group participates in various exhibitions and introduces its environmentallyconscious lineup of technologies that help customers make their products more efficient, compact, andlightweight, and products that feature longer-life performance. The Group tries to show how its products

contribute to the reducing of environmental burden.
Main Exhibitions in which the Hitachi Metals Group Participated (Fiscal 2021)
Program date

Exhibition name (location)

Major items on display

Automotive Engineering Exposition2021(ONLINE)

Exhibited advanced technologies and products that contributeto the evolution of EVs, from five categories: motor; powerelectronics-related; battery-related materials; light weight; andnew manufacturing technology, a new category created thisyear.

Online: June 8–July 16, 2021
Physical exhibition: June 23–25, 2021

TECHNO-FRONTIER 2021
(Tokyo Big Sight)

Exhibited advanced materials and technologies, including
lightening technologies, that support the advancement ofmotors and electronic components, from five categories: motorrelated materials; inverter/rechargeable battery-related materials;
housing-related functional components and equipment;
FA/motion engineering; and new manufacturing technology, a
new category created this year.

December 8–10, 2021

1st Material Expo
( Makuhari Messe )Exhibited new materials developed by applying material
technologies essential to create higher value added products,
such as environmentally friendly products and materials thatenable reduced workloads for maintenance and other duties.

May 26–July 30, 2021

External Awards
The Hitachi Metals Group’s products and environmental activities won the following external awards infiscal 2020 for their contribution to energy conservation and to reductions in size and weight.
Major External Environmental Awards (Fiscal 2021)
Business division/group company

Product/technology/project awarded(CD) Electric Wire & Cable
Medical Silicone Cable
Business Unit (Wires and Cables) SilMED®

(HMK) Pyeongtaek Works

Title of award
2021 Super
Monodzukuri
Parts Award
Nippon Brand
Award

Environmental
Corporate activities that
Enterprise
have contributed to
Excellenceenvironmental conservation
Award

Awarding body

Reasons for award
The product was awarded for its highsliding performance, which was madeMONODZUKURI
possible by developing a unique
Nippon Conference
surface coating process. This
Nikkan Kogyo
excellent function is expected to help
Shimbunensure safe and secure medical
services, particularly by preventing
hospital acquired infections.
The organization was awarded for its
highly effective environmental
conservation activities, which havebeen enabled by building systematic
environmental management structures
Pyeongtaek Industrial
to establish the autonomous operation
Park Corporationof management systems. With thesesystems, the organization makes
ongoing efforts to prevent waterleakage and reduce air pollutant
emissions.

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Hitachi Metals Group CSR Detailed Activity Report 2022

(11) Consideration for the Preservation of Biodiversity
The Hitachi Metals Group’s ecosystem preservation measures include tree planting and forest
conservation activities, cleanup activities in areas surrounding plants, and environmental education.

① Examples of Major Ecosystem Preservation, Tree Planting, Forest Conservation, andSocial Contribution Activities

Tree-planting activities (Hitachi Cable (Suzhou)Co., Ltd.)

Cleanup activities at Moka City Shizen-fureai Park (Moka Works,
Hitachi Metals, Ltd.)

Cleanup activities around the Kanzaki River (Suita Works,
NEOMAX Engineering Co., Ltd.)Green curtain activities (Santoku Corporation) *Seedlings planted (left);
Plants growing (right)
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Hitachi Metals Group CSR Detailed Activity Report 2022