Hitachi
Sustainability Report

2021
Fiscal 2020 Results

Contents

1 Introduction

Introduction

002

002 Editorial Policy
003 Hitachi Group Profile

Management

3 Environmental

Environmental

027

027 Environmental
028	Executive Summary

030 Advancing Our Environmental Vision andLong-Term Environmental Targets

2 Management005

006 CEO's Message
007 Message from the Chief Environmental
Officer008 Environmental Strategy for Achieving a
Decarbonized Society

009 Corporate Credo009 Hitachi Group Identity

010 Sustainability Management010	The 2021 Mid-term Management Plan andSustainability
011 Sustainability Strategy Promotion Structure
017 Contribution to the SDGs

019 Engagement and Initiatives
019 Stakeholder Engagement030	The Environmental Vision and Hitachi
Environmental Innovation 2050
032 Environmental Action Plan

034 Environmental Governance034	Framework for Promoting Environmental
Governance
036 Environmental Management System

040 Achieving a Decarbonized Society
040 Efforts to Achieve a Decarbonized Society
042 Contributing to a Decarbonized Society
Through the Decarbonization Business044	Contributing to a Decarbonized Society at
Business Sites (Factories and Offices)048 Climate-related Financial Information
Disclosure (Based on TCFD
Recommendations)

055 Achieving a Resource Efficient Society
055 Efforts to Achieve a Resource Efficient
Society021 Main Initiatives and Groups Hitachi Is
Involved with

056 Building a Water Efficient Society

022 International Standardization Activities

059 Building a Society That Uses Resources
Efficiently

024 Main Groups in Which Hitachi Participates

025 External Assessments and Awards
025 External Assessments and Awards

063 Achieving a Harmonized Society with Nature
063 Efforts to Achieve a Harmonized Society
with Nature
065 Managing and Reducing Chemical
Substances
067 Preserving Ecosystems

068 Environmental Data

SocialGovernance

4 Social

080

081 Innovation Management

Assurance

5 Governance

156

157 Corporate Governance

081 Executive Summary

157 Executive Summary

083 Research and Development

158 Corporate Governance

166 Compliance088 Intellectual Property

091 Human Capital

166 Executive Summary

091 Executive Summary
094 Global Human Capital Management
101 Talent Development

172 Executive Summary

105 Diversity and Inclusion

174 Addressing Risks and Opportunities

110 Work-Life Management
114 Occupational Health and Safety123	Freedom of Association and Collective
Bargaining
124 Human Rights
124 Executive Summary

130 Value Chain Management
130 Executive Summary
137 Quality and Product Safety Management

141 Executive Summary

180 Executive Summary
181 Information Security

185 Governance Data
185 Corporate Governance
186 Compliance

132 Responsible Procurement

141 Community

178 Business Continuation Initiatives

180 Information Management

183 Personal Information Protection125	Respect for Human Rights Throughout the
Value Chain

139 Customer Satisfaction

167 Promoting Work Practices in Line with
International Ethics Codes
172 Risk Management

6 Assurance

187

187 Independent Assurance

142 Social Contribution Activities

146 Social Data
146 Innovation Management
147 Human Capital
154 Value Chain Management
155 Community

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068 GHG Emissions Throughout the Value Chain
070 Environmental Load from Operations
075 Environmental Load by Region
077 Environmental Management Data
078 Environmental Accounting

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001

Contents

Introduction

Management

Environmental

SocialGovernance

Assurance
Corporate Credo

Editorial Policy

GRI 102-45/102-46/102-48/102-50/102-51/102-52/102-56

Basic Concept
The Hitachi Sustainability Report 2021 (published September 2021) presents our stance toward environmental (E), social (S), andgovernance (G) issues and details the activities we undertook in relation to these in fiscal 2020.
Inasmuch as the report is a tool with which we engage with our stakeholders through comprehensive information disclosure,
it is based on the disclosure requirements of the GRI Sustainability Reporting Standards (GRI Standards). Additionally, in creating
the report, as well as referring to the industry disclosure standards relevant to Hitachi as defined in the Sustainability AccountingStandards Board’s (SASB) Sustainable Industry Classification System (SICS), with respect to climate change, we disclose a variety
of information based on the proposals of the Task Force on Climate-related Financial Disclosures (TCFD).

Disclosure Systems for Financial and
Non-Financial Information
The Hitachi Integrated Report discloses both financial and nonfinancial information about Hitachi’s value creation process. The
Hitachi Sustainability Report serves as a tool for comprehensively
reporting more detailed ESG-related information.
Value Creation Story

What This Report Covers (Scope of Report)

Note: Some information on activities in April 2021 and after is also included.

Hitachi, Ltd. and its consolidated subsidiaries
Financial data
Social data

ReportingBoundary:

Environmental data

1,217 companies, namely Hitachi, Ltd. and 1,216 consolidated subsidiaries and equity-method
associates and joint ventures
Boundary of individual data indicated872 companies, namely Hitachi, Ltd. and 871 consolidated subsidiaries.
However, Group companies that were acquired in the middle of the fiscal year are not included in
the scope of the environmental load data. For the scope of the environmental load data associatedwith Hitachi’s business operations, Hitachi, Ltd., and consolidated subsidiaries environmental load
comprises more than 90%*¹ of the total, excluding the Group companies mentioned above.

Reporting cycle:

Published every year as an annual report

Date published:

September 2021 (Previous report: November 2020)*	Technical terms, proper nouns, tables, diagrams,
etc, requiring explanation

Hitachi References in This Report
Hitachi, Ltd.

: Information on or initiativesof Hitachi, Ltd.

Hitachi and: Information on or initiatives
the Hitachi Group of all Group companies

Investor Information•Sustainability Report•Annual Securities Report*•Corporate Governance
Report*•Financial Statements*•Sustainability Website
https://www.hitachi.com/
sustainability/•Corporate Strategy(Mid-term Management Plan)•Business Report*•Investor Relations Website
https://www.hitachi.com/
IR-e/Comprehensiveness*1 Based on calculations by Hitachi, Ltd.
Notes: • The data for each fiscal year are the results according to the boundary of data in that fiscal year.
• The base fiscal year data has been revised to match the boundary of data for fiscal 2020.

Symbol Marks Used in This Report

Sustainability/
ESG Information

FinancialCompanies:

Integrated Report

The main period covered is fiscal 2020 (April 1, 2020, to March 31, 2021)
Non-financial

Period:Hitachi Group Profile*Statutory disclosure/
Timely disclosure

Independent Assurance
Key Guidelines Referred to in Preparing This Report⃝ GRI Standards, Global Reporting Initiative
Each section is labeled with GRI topic numbers showing
which disclosure requirement it corresponds to.
⃝ Sustainability Accounting Standards,
Sustainability Accounting Standards Board⃝ Environmental Reporting Guidelines(2012 version, 2018 version), Ministry of the Environment, JapanGRI 102-56

To enhance the credibility of this report, we have engaged
KPMG AZSA Sustainability Co., Ltd. to provide assurance
on environmental and social performance indicators. The
mark indicates disclosed information assured in accordancewith the International Standard on Assurance Engagements(ISAE) 3000 and ISAE 3410.
Hitachi Sustainability Report 2021

002

Contents

Introduction

Management

Environmental

SocialGovernance

Assurance
Corporate
Corporate Credo
Credo

Hitachi Group Profile
Company Profile (as of March 31, 2021)

GRI 102-1/ 102-2/102-3/102-4/102-5/102-6/102-7/201-1/203-1

Revenue/Adjusted Operating Income Ratio/Net Income

Corporate name

Hitachi, Ltd.

(billion yen)

Incorporated

February 1, 1920
(founded in 1910)

12,000

Head office

1-6-6 Marunouchi, Chiyoda-ku, Tokyo, Japan

Representative*¹

Representative Executive Officer,
President & COO Keiji Kojima

Capital460.79 billion yen

Number of
employees

350,864(Japan: 158,194, outside Japan: 192,670)

Number of
consolidated
subsidiaries

871 (Japan: 159, outside Japan: 712)

Number of equitymethod associates
and joint ventures345

10,000(billion yen)

1,200

9,162.2

9,480.6

7.6%

8,000

8.0%

EBIT*1850.2 billion yen (up 666.6 billion yen)

Net income
attributable to
Hitachi, Ltd.
stockholders

501.6 billion yen (up 414.0 billion yen)

ROIC*2

6.4% (down 3.0%)

Note: Hitachi’s consolidated financial statement is prepared based on theInternational Financial Reporting Standards (IFRS).
*1 EBIT: Income from continuing operations before income tax, less interest
income, plus interest charges.
*2 ROIC:	Return on invested capital. Calculated as follows: ROIC = (NOPAT+ Equity method gain/loss)/Invested capital × 100. NOPAT (Net
operating profit after tax) = Adjusted operating income × (1 – Taxburden). Invested capital = Interest-Bearing debts + Total equity.

8,729.1

7.5%

1,000
800

5.7%
501.6

6,000

600

362.9
4,000

0

400

222.5

231.2

87.5

2,000

2016

8,729.1 billion yen (even year on year)

Adjusted Operating
5.7% (down 1.8%)
Income Ratio

8,767.2

6.4%

Consolidated Financial Highlights for Fiscal 2020
Based on the International Financial Reporting Standards (IFRS)Revenue

9,368.6

2017

2018

 evenue and Share by Segment
R(Consolidated for fiscal 2020 based on IFRS)*1 As of June 23, 2021

Hitachi
Hitachi Group
Group Profile
ProfileConsolidated
Revenue

8,729.1
billion yen

Note: Revenue by segment includes
intersegment transactions.

■ I T
2,048.7 billion yen (21%)■ E nergy
1,107.9 billion yen (12%)■ Industry
830.1 billion yen (9%)■ Mobility
1,199.6 billion yen (13%)■ S mart Life
1,252.7 billion yen (14%)■ A utomotive Systems
987.5 billion yen (10%)■ H itachi Construction
Machinery
813.3 billion yen (8%)■ H itachi Metals
761.6 billion yen (8%)■ O ther
449.0 billion yen (5%)

2019

200

2020

(FY)

0

■ Revenue (left scale)■ Net income attributable to
Hitachi, Ltd. stockholders(right scale)⃝ Adjusted operating
income ratio (%)

 evenue and Share by Region
R(Consolidated for fiscal 2020 based on IFRS) /Number of Employees by Region (as of March 31, 2021)

Revenue by Region

Japan:
4,154.8 billion yen
Outside Japan:
4,574.3 billion yen■ Japan
4,154.8 billion yen (48%)

158,194 employees■ C hina
1,043.2 billion yen (12%)

51,903 employees■ ASEAN, India, and other Asian regions
850.3 billion yen (10%)

61,411 employees■ N orth America
1,117.5 billion yen (13%)

27,122 employees■ Europe
1,013.4 billion yen (11%)

32,449 employees■ O ther areas
549.7 billion yen (6%)

19,785 employees

Hitachi Sustainability Report 2021

003

Contents

Introduction

Management

Environmental

SocialGovernance

Assurance
Corporate
Corporate Credo
Credo

Hitachi Group Business Activities
Contributing to a Sustainable Society

Hitachi
Hitachi Group
Group Profile
ProfileENERGY
Main Products and Services• Energy Solutions (Power Grids, Nuclear, Renewable

Our 2021 Mid-term Management Plan, launchedin April 2019, focuses on simultaneously
improving social, environmental, and economic
value, and establishes five business sectors (IT,energy, industry, mobility, and smart life) for thecreation of social innovation. From April 2021, theAutomotive Systems business (Hitachi Astemo)
was made independent from the Smart Life
sector, as we undertake business with the goal of
creating further value through the six segments.

Energy, Thermal)

INDUSTRY
Main Products and Services

Hitachi's Vision

Achieving a sustainable
society through improving
the QoL and adding values
for customers

IT• Industry & Distribution Solutions• Water & Environmental Solutions• Industrial Machinery

LIFE
Main Products and Services• Smart Life & Ecofriendly Systems (Home Appliances,Air-conditioning Systems)• Measurement & Analytical Systems (Medical and Bio,

Main Products and Services• Digital Solutions (Consulting,
Software, Cloud Services, System
Integration, Control Systems)• IT Products (Storage, Servers)• ATMs

Semiconductors, Industry)

Hitachi Construction Machinery
Main Products and Services

MOBILITY
Main Products and Services• Building Systems (Elevators, Escalators)• Railway Systems

Automotive
Systems• Hydraulic Excavators• Wheel Loaders• Mining Machiner• Maintenance and Services• Construction Solutions• Mine Management Systems

Hitachi Metals
Main Products and Services

Main Products and Services• Powertrains, Chassis, Advanced Driver
Assistance, Motorcycle Systems• Specialty Steel Products• Functional Components
and Equipment• Magnetic Materials andPower Electronics Materials• Wires, Cables andRelated Products

Hitachi Sustainability Report 2021

004

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

006 CEO's Message
007 Message from the Chief Environmental Officer
008 Environmental Strategy for Achieving aManagement

		 Decarbonized Society

Aiming to Build a Resilient Company Structure

019 Engagement and Initiatives

To develop Hitachi's Social Innovation Business, building a resilient company
structure is essential.
By executing highly effective management and all executives and employees
acting as good corporate citizens with the Hitachi Group Code of Conducts,
we will fulfill our responsibilities. This will help to address social issues called
for in Society 5.0 and SDGs.

025 External Assessments and Awards

009 Corporate Credo009 Hitachi Group Identity

010 Sustainability Management
010 The 2021 Mid-term Management Plan and Sustainability
011 Sustainability Strategy Promotion Structure
017 Contribution to the SDGs
019 Stakeholder Engagement
021 Main Initiatives and Groups Hitachi Is Involved with
022 International Standardization Activities
024 Main Groups in Which Hitachi Participates

Hitachi Sustainability Report 2021

005

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

CEO’s Message

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

GRI 102-14/102-15

Creating New Social Value
with a Unique Vision for the Future
In 2020 and 2021, people’s lives were dramatically
impacted everywhere by the COVID-19 pandemic, which
made existing social and economic challenges all the more
apparent. Meanwhile, efforts to address climate change
have accelerated significantly as the world acknowledges
the urgency of this issue for sustainability, and glaring
human rights issues have also been in the spotlight. It
is clear that companies today must provide not only
economic value, but also environmental and social value.
At Hitachi, we have been making the most of
our strengths in operational technology (OT), IT, andproducts (OT × IT × Products) under our 2021 Mid-termManagement Plan. We have sought to improve the qualityof life for people everywhere while enhancing value forcustomers with our Lumada suite of digital solutions,services, and technologies. We are also determinedto create new social value with our Social Innovation
Business. We are doing this by defining the kind of future
value we would like to create. For example, we envision
the kind of thriving world we would like to see by 2050
and then backcast from there to determine what we needto do now. As part of this effort, we have defined threeareas where Hitachi will focus its growth: Environment,
Resilience, and Security & Safety.
In the area of Environment, we will help build a decarbonized, resource efficient society. In the area of Resilience, wewant to promote a society that can handle any disruption to
public services and systems caused by a natural disaster orresource shortage. In the area of Security & Safety, we aim to
help prepare for an era when the average person will live to be

Executive Chairman
and CEO
Hitachi, Ltd.

100 by helping to make it possible for everyone to grow older
while enjoying good physical and mental health. At Hitachi,
we are committed to developing and providing solutions forsocial issues in order to help build a world that is sustainable,
resilient, secure and safe.
Maximizing human resource value is one of the keys
to our Social Innovation Business. We want every Hitachi
employee to view social issues as part of their own personal
agenda. We are also shifting to job-based human capitalmanagement. This ensures the right people are in the rightjobs taking into careful account the abilities and motivation ofeach individual. I want to see the power of each autonomous
individual taking the initiative to generate a collective force
that drives the growth of the entire Hitachi Group. We
are also making a range of efforts to improve workplaceenvironments in a way that will foster more independent
thinking by employees. These include asking employees toconsider which business fields we want to strengthen andto look at how we can bring products to market over the
medium and long term based on next-generation technology
trends as well as social changes. These efforts are led by our
Future Investment Division. In addition, we hold the “Make a
Difference!” in-house idea contest.

engagement with shareholders and investors. Fortunately,
there have been greater opportunities recently toengage in broad discussions with these stakeholders on
environmental issues and human resource development.
Environmental, social, and governance (ESG) measures
are top priorities for corporate management, and these
are inherent responsibilities for every good corporate
citizen. In the area of human resources management,
we will pursue globally optimized deployment of humanresources and improve engagement with employees
while fostering diversity and inclusion. We also aim
to increase the ratios for female and non-Japanese
executive and corporate officers to 30% by fiscal 2030.
In the area of governance, we are preparing to introduce
new environmental indicators as part of the package fordetermining executive compensation evaluation, and wewill continue to strengthen our risk management.
Hitachi will keep striving to meet the expectations of
all stakeholders by practicing openness and transparency.
Our goal is to address social issues with a unique vision foran even better future and we do this by considering every
perspective including the timeframe, region, and value. I
look forward to your continued support going forward.

I have also been emphasizing dialogue andHitachi Sustainability Report 2021

006

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Message from the Chief Environmental Officer

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

GRI 102-14/102-15

A Company That Contributes to Environmental Impact Reductions andthe Realization of a Decarbonized Society

Alistair Dormer
Executive Vice President and Executive Officer,
and Chief Environmental Officer
Hitachi, Ltd.

Countries worldwide are currently working to further bolster
climate change countermeasures. The European Union has
announced updates to its 2020 NDCs (nationally determined
contributions to reduce greenhouse gas emissions) of
now achieving climate neutrality by 2050 and reducing
greenhouse gas emissions by at least 55% by 2030
compared to 1990. Japan has announced it too shares thegoal of carbon neutrality by 2050 as well. In responding toenvironmental issues, and particularly to climate change, theimplementation of specific initiatives has become essential,
as has technological development with a medium- to longterm perspective.

Hitachi aims to become a Climate Change Innovator
helping to support governments’, cities’, and companies’
efforts to reduce greenhouse gas emissions. Hitachi isproud to be the first Japanese company to join the group of
Principal Partners for COP26, the 26th United Nations Climate
Change Conference, to be held in Glasgow, the United
Kingdom, in November 2021. For over 110 years since thecompany’s foundation, Hitachi has been putting the Hitachi
Mission—“Contribute to society though the development ofsuperior, original technology and products”—into practice,contributing to the realization of a decarbonized society
through our operations. Our aim is to achieve a decarbonizedsociety, a resource efficient society and a harmonized society
with nature. Our participation in COP26, I feel, constitutes amajor step toward the realization of a decarbonized society.
Our 2021 Mid-term Management Plan places anemphasis on environmental value, and clearly indicates
our commitment to focus our efforts on environmental
activities. Having taken the post of chief environmental
officer in April 2021, I will work to accelerate the pace of ourenvironmental initiatives.
In 2020 we announced the aim for our business sites(factories and offices) to become carbon neutral by fiscal
2030. And in September 2021, we also declared that wewill work toward achieving carbon neutrality throughout ourvalue chain by fiscal 2050, further enhancing our existing
goals. In December 2020, Hitachi obtained accreditationfrom the Science Based Targets initiative (SBTi) for its efforts
to reduce greenhouse gas emissions and also recognition

that it is a signatory to the Business Ambition for 1.5°C
commitment, which seeks to limit the global temperature
increase to 1.5°C above pre-industrial levels, one of the aimsof the Paris Agreement. Having also joined the UN Race toZero campaign, we will work to make contributions to therealization of a net zero society.
Furthermore, as of April 2021, we have also
incorporated environmental value as a criteria to beevaluated in the executive officer compensation system, withthe aim of strengthening our governance.
Having Hitachi ABB Power Grid*¹, who has the world's
No. 1 technology and market share in the power grid businessfield, joining our group, we now possess the technology toefficiently provide energy from generating stations to pointsof consumption. Additionally, we have established Hitachi
Astemo, through a merger of Hitachi Automotive Systems
with three Honda-affiliated companies, to realize the creationof core components and solutions that advance motorizationand hold the key to the future of next-generation automobiles.
Hitachi will leverage such new business portfolios to theutmost and utilize the power of our many businesses anddigital innovations, particularly in our IT, Energy, Industry, andMobility sectors in working toward a decarbonized society.
Through these efforts I am confident that Hitachi will be able
to make contributions to activities such as the reduction of
governments’, cities’, and companies’ environmental impacts,
as well as the realization of a decarbonized society.
*1 In October 2021, the company’s name was changed to Hitachi Energy, toshow a strengthened commitment to sustainable energy in the future.

Hitachi Sustainability Report 2021

007

Contents

Introduction

Management

Environmental

Management
Management CEO's
CEO's
Message
Message Message
Messagefrom
fromthetheChief
Chief
Environmental
Environmental
Officer
Officer Environmental
EnvironmentalStrategy
Strategyfor
forAchieving
AchievingaaDecarbonized
Decarbonized Society
Society

Environmental Strategy for
Achieving a Decarbonized Society
Hitachi’s Environmental Strategy
In fiscal 2016, toward building a low-carbon society, Hitachi set the target of reducing CO2
emissions through its value chain by 80% by fiscal 2050 compared to emissions in fiscal
2010, in order to achieve our long-term environmental targets called Hitachi Environmental
Innovation 2050. After releasing the targets, the IPCC 1.5°C Special Report was published in2018 stating that further measures are needed to limit global warming to 1.5°C . Each country
has strengthened its measures when resubmitting NDCs (nationally determined contributions
to reducing greenhouse gas emissions determined by a country/region) in 2020. The world is
rapidly moving toward a decarbonized society with the EU announcing its goal of achieving
climate neutrality in 2050 and reducing GHG emissions by at least 55% compared to 1990, andJapan also announcing its goal of achieving carbon neutrality in 2050.
In the 2021 Mid-term Management Plan, Hitachi has clearly stated its commitment
to focusing on the creation of environmental value. In terms of business, we are working tostrengthen sectors including our railway business (a means of transportation with a small
environmental impact) and our grid solutions business which plays an important role inelectrification and decarbonization of the energy sector. We continue to make progress withsuch efforts, building business portfolios able to further contribute to the achievement of adecarbonized society. Looking forward, Hitachi will remain committed to working together
as one and combining innovative products and services to contribute to our customers’
decarbonization as well. In 2021, Hitachi became the first Japanese company to take on therole of a Principal Partner for COP26.
Based on these internal and external changes, Hitachi has promoted aiming fora decarbonized society, one of the long-term environmental targets set out in Hitachi
Environmental Innovation 2050, with the goal of leading climate change measures committed toachieving a decarbonized society.
Toward a
DecarbonizedSociety◦Achieve carbon neutrality by 2050 through the value chain and reduce CO2
emissions by 50% by fiscal 2030 (compared to fiscal 2010)◦Achieve carbon neutrality in business sites (factories and offices) by fiscal 2030

SocialCorporate Credo

Governance

Sustainability Management

Assurance

Engagement and Initiatives

External Assessments and Awards

We will implement the following initiatives companywide to achieve our new long-term
environmental goals:(1) Achieve carbon neutrality in business sites (factories and offices) by fiscal 2030
◦We will further improve production efficiency and energy use efficiency during the production
by using production technology developed over a long time and the Lumada platform and byadopting and updating highly efficient equipment in our business sites (factories and offices).
We will also acquire renewable energy and adopt equipment for it to effectively promote carbon
neutrality at our business sites.
◦We will encourage use of our Hitachi Internal Carbon Pricing (HICP) system which was introduced
to provide incentives for capital investments that contribute to CO2 reductions. HICP is an inhouse system to visualize the amount of CO2 reductions from capital investments in factories andoffices, and then convert it into costs and apply it to investment decisions.
P044 The Hitachi Internal Carbon Pricing Framework(2) World-class energy efficiency of products◦We will promote world-class energy efficiency in our products provided to our customers byconsidering reductions in environmental impacts from the design stage.

(3) Active promotion of projects that contribute to society’s overall shift to carbon neutrality◦ In order to speed up the shift to carbon-neutral energy systems, we will combine power grids(transmission/distribution networks) that support the expansion of renewable energy with stateof-the-art intelligent control systems which will serve as stronger, more reliable, and more secureenergy systems that contribute to a decarbonized society.
◦ We will contribute to popularizing decarbonized mobility by encouraging the spread of highly energyefficient high-speed railcars and hybrid railcars with storage batteries, providing EV systems to expand
the EV market, and creating and enhancing EV value chains to help promote the spread of EVs.
◦ We will contribute to the decarbonized operations of our customers by providing Lumada-powered
solution services which help reduce CO2 emissions by advancing the digitalization of society.

(4) Develop technology that paves the way for transitioning to a decarbonized society◦Hitachi is taking the approach of backcasting from 2050 and promoting research anddevelopment that can respond to the rapid changes in society. Hitachi plans to set the amount of
R&D investments at ¥1.5 trillion over a three year period. In the environmental field that includes
promoting research and development in areas such as grid control technology that would
bring about the mass adoption of renewable energy, electrification/motorization and operation
management technology, state-of-the-art materials, and CO2 absorption and utilization and thus
contribute to a net zero society.
P084 Value-based Innovation(5) Work with suppliers toward a decarbonized society◦As part of the initiatives to promote carbon neutrality in our supply chain, starting in fiscal 2021
we plan to request that 70% of our suppliers (based on the total amount of our transactions anddoes not include publicly listed subsidiaries) formulate CO2 reduction plans.
P134 Sharing Our Green Procurement Policies and Related Initiatives

Hitachi Sustainability Report 2021

008

Contents
Management

CEO's Message

Introduction

Management

Message from the Chief Environmental Officer

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

Corporate Credo
Hitachi Group Identity

Approach

Hitachi’s Mission is to contribute to society through thedevelopment of superior, original technology and products.
This Mission has been carefully passed on to generationsof employees and stakeholders throughout our 110-year
history. Our Values reflect the Hitachi Founding Spirit ofHarmony, Sincerity and Pioneering Spirit, which was shapedby the achievements of our predecessors in the company
as they worked hard to fulfill the Mission. Our Vision was
created based on our Mission and Values. It is an expressionof what Hitachi Group aims to become in the future as it
advances in its next stage of growth. Our Mission, Values,
and Vision combine to form the Hitachi Group Identity. Basedon the Hitachi Group Identity, and continuously considering
the next generation, we promote corporate activities with a

GRI 102-16

view to the medium and long term informed by sensitivity to
the needs of a changing society. The Mid-term Management
Plan is our action plan to realize the Hitachi Group Vision; byintegrating our management and sustainability strategies, weseek to enhance the effectiveness of this approach.
The implementation of the plan is a way for us to fulfill
our responsibilities as a good corporate citizen throughrobust, diverse governance; the Pioneering Spirit and strong
ethical stance of our employees; and operations that help
address social issues. We operate and pursue our activities
in line with the Hitachi Group Codes of Conduct, theguidelines for ethical behavior and decision-making sharedby all executives and employees of the Hitachi Group.

Hitachi Group Identity

The mission that Hitachi
aspires to fulfill in society

MISSION

The values crucial to
the Hitachi Group inaccomplishing its mission

VALUES

What the Hitachi Groupaims to becomein the future

VISION

Contribute to society through the development ofsuperior, original technology and products.

Hitachi Founding Spirit:
Harmony, Sincerity, Pioneering Spirit

Hitachi delivers innovations that answer
society’s challenges. With our talented
team and proven experience in global
markets, we can inspire the world.

P167 Hitachi Group Codes ofConduct

Solidifying the Hitachi Group Identity
Employee Engagement

Hitachi promotes brand education through training tools andcourses based on the idea that social issues can be solved
if each and every one of its employees understands andpractices the Hitachi Group Identity.
One way we promote understanding of and familiarity
with the Hitachi Group Identity and the Hitachi Brand isthrough the annual Inspiration of the Year Global Award,
which recognizes remarkable activities that contribute toenhancing the value of the Hitachi Brand by demonstrating
the Hitachi Group Identity. In fiscal 2020, the award saw
275 applications from Hitachi Group employees around theworld. Projects that represented the practice of the HitachiGroup Identity and contributed to a sustainable society byincreasing social, environmental, and economic value wereselected from various regions for the Grand Prix, including
the Green & Digital Hospitals for the energy saving project inIndia. The Grand Prix–winning projects were recognized at
the Global Awards Ceremony and shared with all employees
through our intranet.
“Hitachi Group Identity Movie—I am Hitachi,” a movie
featuring award winning projects, was unveiled on our
website, allowing a wide range of people inside and outside
the Group to see how Hitachi Group employees aroundthe world are endeavoring to improve people’s quality of life
every day while holding the Hitachi Group Identity close to
their heart.

Hitachi Group Identity

Hitachi Sustainability Report 2021

009

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

Sustainability Management
The 2021 Mid-term Management Plan and Sustainability
Hitachi practices sustainable management and places
sustainability at the center of our business strategy and—in our 2021 Mid-term Management Plan ending in fiscal
2021—setting ourselves the goal of contributing to therealization of a sustainable world as a global leader of ourSocial Innovation Business. In working toward realization ofthis goal, Hitachi is focusing efforts on the three key areas ofEnvironment, Resilience, and Security & Safety to contributeto the resolution of social and management issues. We
remain committed to improving people’s Quality of Life
(QoL), as well as improving the value for customers.
We will expand our Social Innovation Business throughcollaborative creation using the knowledge in our businessareas and our partners around the world and by providing
Lumada, a solution that accelerates digital innovation as acyber-physical system that allows the cyber and physicalspaces to interact.
We continue to further merge sustainability andbusiness to contribute to the resolution of social issues
through initiatives like Society 5.0 and Sustainable
Development Goals (SDGs).

Approach

Hitachi's Business Vision

Improve Quality of LifeAdd value for customers

Socialvalue

Environmental
value

Economic
value

Resolve social and management issues byfocusing on three key areas

Environment

Resilience

Security & Safety

Provide OT×IT×Products as a Package

2021 Mid-Term Management Plan
Social Innovation Business

Hitachi Sustainability Report 2021

010

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

Sustainability Strategy Promotion Structure
Hitachi, Ltd.’s Executive Sustainability Committee, which
is held twice a year, comprises Executive Chairman &CEO Toshiaki Higashihara, and other members of the
Senior Executive Committee, along with the CEOs of every
business unit. The committee discusses and reaches
decisions on important policies and measures related tosustainability, shares progress and results, and finds ways toconnect these to further improvements and new initiatives.
Sustainability Promotion Meetings holds twice a yearthat attended by sustainability strategy promotion officers
from business units (business promotion division head–class), also established under the committee, formulate longterm corporate strategies focusing on ESG (environmental,social, and governance) to promote specific measures foradvancing sustainability, including contribution to achieving
the SDGs.
To review and discuss CSR initiatives, CSR Manager
Meetings are regularly held by CSR and social contribution
officers from business units and Group companies.
Additionally, CSR officers at regional headquarters in the
United States, Europe, China, Southeast Asia, India, andAustralia, as well as environmental officers in the UnitedStates, Europe, and China work daily to cultivate mutual
understanding and provide opportunities for general
meetings in order to achieve cross-regional information
sharing and cooperation.
To discuss and implement specific measures to achieve
long-term environmental targets, the Eco-Management
Meetings, whose members are environmental promotion
officers from business units and Group companies, work

SocialCorporate Credo

Structure

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

GRI 102-18/102-19/102-20/102-21/102-26/102-27/102-30/102-31/102-32/102-33/102-34/103-3

together with Sustainability Promotion Meetings. Global andRegional Environmental Meetings are also held regularly,
allowing environmental initiative officers from regional
headquarters outside Japan to share common practices andpromote environmental initiatives.
Additionally, starting in fiscal 2021, in order to further
accelerate human rights and diversity initiatives, newly
established Human Rights Due Diligence (HRDD) Manager
Meetings are held twice yearly to promote human rights
due diligence. Also, the Diversity Development Council
meets once or twice a year, along with periodic reportingand deliberations by the Executive Sustainability Committee
on progress being made toward these efforts. We haveworked with business units and key Group companies
to strengthen our structure to promote human rights anddiversity initiatives.
The Sustainability Promotion Division holds regulardialogue with stakeholders in each region in cooperation
with regional headquarters. Through such dialogues,

we endeavor to grasp global social issues promptly,
extensively, and deeply, incorporating them into theissues our management deals with. At the same time, this
dialogue lets us safeguard our corporate responsibility ina global society and make continued efforts to improve
as we strive to achieve sustainable management and asustainable society.
As a company that maintains committees, includinga Nominating Committee, Hitachi has an Audit Committeethat conducts business auditing. The committee is made up
of directors selected as Audit Committee members. Yearlyreports concerning important matters related to sustainability
are made by executive officers in charge, and feedback fromthe Audit Committee is put to advantageous use in the workof promoting sustainability.
P020 S takeholder Dialogues

Fiscal 2020 Executive Sustainability Committee Agenda Items
Term

Agenda Items

April 2020

 itachi Environmental Innovation 2050
H
- Achieve Carbon Neutrality by 2030 at business sites (factories and offices) [bellow, Hitachi Carbon Neutrality 2030]- Cooperation with suppliers to promote CO₂ reduction in the upstream value chain

November 2020

 eporting and structural enhancements related to the status of plans for achieving Hitachi Carbon Neutrality 2030
R
Approaches regarding goals for 2030 at the stage of product and service utilization

Hitachi Sustainability Report 2021

011

Contents
Management

CEO's Message

Introduction

Management

Message from the Chief Environmental Officer

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

The Sustainability Strategy Promotion Structure

Executive Sustainability Committee
Executive Chairman & CEO

Chair
Members

Senior Executive Committee members, CEOs of BUs, and corporate division heads

Key roles

Discuss and implement specific measures for sustainability strategy (including environment, human rights, and diversity and inclusion)Frequency

Twice per FY (more than twice per FY from FY2021 on)

Sustainability Promotion Meetings

Eco-Management Meetings

CSR Manager Meetings

HRDD Manager Meetings

Diversity Development Council

Members: Business promotion
division heads at BUs and key
Group companies

Members: Environmental
promotion division heads at
BUs and key Group companies

Members: CSR and social
contribution officers from BUs
and key Group companies

Members: Members: HRDD
officers from BUs and key
Group companies

Members: Diversity
development officers from BUs
and key Group companies

Key roles: Discuss andimplement specific measures
for sustainability strategy

Key roles: Discuss andimplement concrete measuresto achieve longterm
environmental targets insustainability strategy

Key roles: Discuss andimplement CSR initiatives

Key roles: Provide informationand knowledge necessary for
HRDD implementation, andshare status of implementation
in BUs and key Group
companies

Key roles: Expand diversity andinclusion development policies
and initiatives, and share bestpractices

Frequency: Twice per FY

Frequency: Twice per FY

Frequency: Once or twice per FY

Frequency: Once or twice per FY

Frequency: Once or twice per FY

Secretariat
Secretariat

Sustainability Promotion Division

Sustainability Promotion Division

Diversity & Inclusion Development
Center, Human Capital Group

Secretariat
Diversity & Inclusion
Development Center
Human Capital Group

Value Chain Integration Division

CSR and environmental officers from eachregional headquarters

Regional promotion managers and officers

Hitachi Sustainability Report 2021

012

Contents
Management

CEO's Message

Introduction

Management

Message from the Chief Environmental Officer

Environmental Strategy for Achieving a Decarbonized Society

HigherBolstering the Environmental Business
Promotion Structure

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

Social innovations using digital technologies and AI
Human rights
Creating value
Diversity andthrough co-creation
inclusion (D&I)
with customers
Employee health and safety
Responding toclimate change
Optimum healthcare for every global citizen
Code of conduct,
corporate ethics

Structure

P008 Environmental Strategy

Identifying Priority Initiatives as Strategic
Focus Areas
GRI102-47

Coexistence withlocal community
Biodiversity andpreservation ofnatural capital
Responsible
supply chains

Decent work

Responding toincreasingly
complex andchallenging risks

Enhancing and improving
resilience in aging social
infrastructures
Resilience in corporate
activities

Strategic Focus Area
Information security/Cybersecurity
Stakeholder engagement
Product safety
Corporate governance
Talent development

High

Looking forward to 2030 and what we aim for society
and our company to become by then, Hitachi is focusing
efforts on value creation in areas we consider to be of key
importance. In working to realize Hitachi’s goals of improving
people’s QoL and increasing our customers’ corporate value,
we have mapped out focus initiatives taking into account thedegree of impact for Hitachi and the degree of interest andimportance for all our stakeholders in order to make societyand Hitachi’s management sustainable. We have identified
particularly high-priority initiatives among these as Strategic
Focus Areas.

Circular economy/
Resource efficiency

Safe and secure lifestyles
Interest and importance for stakeholders

In April 2021, Hitachi appointed Executive Vice President
Alistair Dormer to Chief Environmental Officer, andestablished the Environment Business Growth Strategy
Division. These steps will enable us to accelerate the pace ofenvironmental value creation achieved through business.

Activities

Environmental

Taxtransparency
LargeWork-style reforms
Impact for the company (Hitachi)

LargerHitachi Sustainability Report 2021

013

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Strategic Focus Area
Social innovations
using digitaltechnologies and AI
Creating value throughco-creation withcustomers

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Sustainability Management

Recognition of Issues and Strategies
The world is undergoing a variety of changes, such as climate change and resource
shortages, aging populations and urbanization. Furthermore, society and theeconomy have changed dramatically amid the global COVID-19 pandemic.
Hitachi creates new value for society by providing solutions that respond to avariety of challenges faced by society and the customers who are being confronted
by these changes. This is the essence of Hitachi’s Social Innovation Business.
Co-creation with customers and partners is essential in responding to thesechanges quickly and efficiently. Through collaboration, we will expand social

GovernanceEngagement and Initiatives

Assurance
External Assessments and Awards

Initiatives/KPIs
Expansion of the Lumada
business

Increase Lumada revenues and adjusted operating income
Utilize the Lumada Solution Hub nhance human resourcesE
and technologies that
support the growth of evelop digital talent, and encourage participation of diverseDhuman resource (D&I)

LumadaRelevant
SDGs

Create learning opportunities
Strengthen R&D

innovations that leverage Lumada. As a result, Hitachi will help realize a sustainable
society.

Responding to climatechangeCircular economy/
Resource efficiency

Optimum healthcare forevery global citizen

Safe and secure
lifestyles

E xpand value andinnovation from cocreation, and entrench
this approach inside andoutside of the Company

Expand co-creation centers
Expand partners in the Lumada Alliance ProgramIncrease awareness and understanding of the Hitachi Group identity

Hitachi’s mission in the Social Innovation Business is to achieve a sustainable society
by taking on the challenges of climate change, a circular economy and the efficientuse of resources. In response to climate change, which is a particularly urgent issue,
we will expand solutions for targeting decarbonization.
We have set the targets of achieving carbon neutrality within Hitachi by fiscal
2030 and achieving carbon neutrality through the value chain by fiscal 2050. As aleading company in the creation of environmental value, we will further accelerate ourinitiatives aimed at realizing these goals.

Promote “Hitachi
Environmental Innovation
2050”

Reduction in CO2 emissions at workplaces
Reduction in CO2 emissions from products and services
Reduction rate in water use per unit
Reduction rate in waste and valuables generation per unit
Value creation story in five sectors and the Automotive Systems
business

In a society characterized by rapid digitalization, urbanization and a growing senior
population, it is important that we enable people to enjoy comfortable, energetic
lifestyles, within a safe and secure living environment. To do this, Hitachi provides city
building solutions that support safe and secure living for people everywhere, as well
as optimum healthcare for individuals.
In the healthcare field, we support a society in which more and more people
are living past the age of 100 through the development and provision of solutions
that extend from prevention of illnesses in the pre-symptomatic phase to testing,diagnostics, treatment and support for long-term care.

 xpand the HealthcareEbusiness xpand the environmentalE
contribution business

Hitachi Integrated Report 2021(P52-69)

Value creation story in the Mobility and Smart Life sectors
Hitachi Integrated Report 2021(P61, 64)

Expand businesses
that support safe andsecure transportation andlifestyles

Hitachi Sustainability Report 2021

014

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

Strategic Focus Area

Recognition of Issues and Strategies

Enhancing andimproving resiliencein aging social
infrastructures

Society and the economy are always potentially susceptible to highly unpredictable

Resilience in corporate
activities

risks such as natural disasters, pandemics and cyberattacks. Public services andcorporate activities must be able to recover quickly even in times of disaster. We facealso the urgent need to create a society in which everyone can benefit equally fromthe public services delivered by rapid digitalization.
Hitachi provides systems and solutions to that make society and corporate
activities more robust, thereby contributing to a more resilient society.

Human Rights

Employee health andsafetyDiversity and inclusion(D&I)

Hitachi’s Social Innovation Business adds to the vitality of society and people’s lives.
Hitachi is managing its workplaces and maximizing the potential of its diverse
talent pool in line with our basic philosophy that “Health and Safety Always ComeFirst.” We respect all people, including co-creation partners and those who support
the value chain, contributing to a society in which everyone can work safely and withpeace of mind.
By encouraging the participation of diverse talent, we will promote active cocreation between Hitachi and its partners and accelerate the creation of new value
through the Social Innovation Business.

Decent work

Code of conduct,
corporate ethics

Responding toincreasingly complex
and challenging risks

Amid the rapid growth of Hitachi’s businesses and partners on a global scale, theeffective management of corporate compliance, geopolitical risks and business risks
is essential to the continuation of highly reliable business activities.
Hitachi recognizes that sharing codes of conduct, ensuring thorough compliancewith laws and regulations and promoting risk management are particularly importantto sustainable growth. We are also undertaking initiatives to augment our corporate
governance function.

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

Initiatives/KPIs◦Expand businesses
that support public
infrastructure and services

Relevant
SDGs◦Value creation story in five sectors and the Automotive Systems business
Hitachi Integrated Report 2021(P52-69)◦Expand businesses that
support business operations
such as finances, industry,logistics, and cybersecurity◦Respect human rights◦Training completion ratio◦Auditing of supply chains◦Thorough work safety andhygiene◦Reduce work-related accidents◦Promote diversity andinclusion (D&I)◦Ratio of non-Japanese and female executives and corporate officers◦Number of non-Japanese and female employees◦Number of female managers◦Employment of people with disabilities◦Put in place and promote
workplace environmentsthat are comfortable andsatisfying for employees◦Participation rate in Global employee survey/engagement index◦Create learning opportunities◦Autonomous career support through HR management initiatives◦Put in place a remote working environment◦Promote social contributions◦Promote health◦Compliance◦Build and operate risk
management systems◦Respond to risks and opportunities

Hitachi Sustainability Report 2021

015

Contents
CEO's Message

Message from the Chief Environmental Officer

Management

Establishment of Principal ESG-Related
KPIs and Linking It with Executive Officers’
Compensation

SocialCorporate Credo

Governance

Sustainability Management

Key ESG-Related KPIs

Achievements in
FY 2020

Activities

As part of promoting sustainability, we have established
KPIs for key ESG challenges, and promote activities
to help achieve them. In addition, ESG-related KPIs
corresponding to executive officers’ scope of work
are set as criteria for evaluation regarding appropriatecompensation for their duties.

Achievements in and after Fiscal 2020
In May 2020, we declared a target: to achievecarbon neutrality in our business sites (factories andoffices) by fiscal 2030. Following this, we created a
new target in September 2021: to achieve carbon
neutrality through entire value chain by 2050.
Additionally, in order to accelerate environmental
value creation, we have incorporated environmental
value as part of the executive officer compensation
system from April 2021. The targeted environmental
value is determined through dialogues between thepresident and executive officers.

P162 Director and Executive Officer Compensation

Assurance

Engagement and Initiatives

External Assessments and Awards

Achievement of goal, or progress being made toward achievement
× Goal not achieved (for fiscal 2020 goals)[ ] Bracketed items in the Achievements column show initial fiscal 2020 targets
KPI

Environment

Goals

Environmental

Environmental Strategy for Achieving a Decarbonized Society

FY 2030

100% (carbon neutrality)

FY 2050(Maintain 100%)

FY 202126% or higher

FY205050%

FY 202112% or higher

FY 2050

50%

Approx. 35,000
peopleFY 202137,000 people

Approx. 3,000 people(Achieved ahead ofschedule)

FY 20213,000 people

356 people(Achieved ahead ofschedule)

FY 2021350 people

FY 2024

15%*¹

FY 2030

30%*¹

FY 2024

15%*¹

FY 2030

30%*¹

Reduction rate in water use per unit
(Hitachi Group) (base: FY 2010)24%

Reduction rate in waste and valuables
generation per unit
(Hitachi Group) [Base: FY 2010]14%

Number of Top-class AI talent(Hitachi Group)

Target

20% or higher

39%

Number of Data scientists(Hitachi Group)

Progress madetoward the goal andachievements in madeFY 2021

Business Sites(Factories and Offices)
Reduction rate of CO2 emissions(base: FY 2010)

Digital talent (Hitachi Group)

Society

Management

Introduction

Ratio of female executives andcorporate officers (Hitachi, Ltd.)

10.1%*¹[10%]

Ratio of non-Japanese executives
and corporate officers(Hitachi, Ltd.)

11.6%*¹[10%]

Number of female managers inJapan (Hitachi, Ltd.)

800 people*²[800 people]

Fatal accidents (Hitachi Group)

3 cases

Fatal accidents (Hitachi, Ltd.)0 cases

Relevant
Page

P031

P057

P062

P102

ー
ー

P086

P106

—

2021

0

2021

0

Lost time accidents (Hitachi Group)

314 casesー2021

Halve the number
compared to 2018（253 cases)

Lost time accidents (Hitachi, Ltd.)

４casesー2021

Halve the number
compared to 2018
（3 cases)P116*1 Personnel reassignments are included as of April 1, 2021, for FY 2020, April 1, 2025, for FY 2024, and April 1, 2031, for FY 2030
*2 The number of female managers in Japan is as of October 2020

Hitachi Sustainability Report 2021

016

Contents
Management

CEO's Message

Introduction

Management

Message from the Chief Environmental Officer

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Assurance

Engagement and Initiatives

External Assessments and Awards

Contribution to the SDGs
The SDGs and Hitachi’s Social Innovation BusinessApproach

GRI 102-11

We consider the Sustainable Development Goals (SDGs)
an important initiative for realizing a sustainable society
and improving people’s Quality of Life (QoL) throughsolving global social and environmental issues. We havesignificantly contributed to achieving the SDGs through ourSocial Innovation Business which also serves as a source ofsustainable growth for us.
Accordingly, through the provision of innovative
solutions and products in our Social Innovation Business,
we will strive to create social, environmental, and economic
value as part of our management strategy. We will alsoendeavor to reduce negative social and environmental
impacts resulting from our business and seek a deeper
understanding of business risks arising from social andenvironmental changes to ensure greater resilience against
negative impacts.

activities. We view the latter six goals as relevant to ourentire business and management strategies and that makean impact on corporate sustainability.
Because we are active in a broad range of businessfields, we believe we can contribute extensively to theachievement of SDGs in addition to the 11 goals identified.
Understanding that all SDGs are mutually related, we will
endeavor to contribute to the achievement of all 17 SDGs
both directly and indirectly.

By proactively responding to social issues, Hitachi contributes to the achievement of all
SDGs through its responsible corporate conduct and its Social Innovation Business.
Corporate Commitment

Business Strategy

Hitachi’s Priority SDG Issues
PolicyAt the Executive Sustainability Committee chaired by
Executive Chairman & CEO Toshiaki Higashihara, thecommittee members considered the 17 SDGs and theopportunities and risks they presented. After this, they
identified five goals where we can make a particularly
significant impact through our key businesses and six goals
that we can contribute to through our entire corporate

Hitachi contributes to the achievementof all SDGs both directly and indirectly
through its business activities.

Hitachi Sustainability Report 2021

017

Contents
Management

CEO's Message

Introduction

Management

Message from the Chief Environmental Officer

Environmental Strategy for Achieving a Decarbonized SocietyRoad Map to Achieve Hitachi’s Priority SDG
Issues
Goals

Environmental

Activities

Developing a sustainable society as defined by the SDGs
will also lead to sustainable growth for Hitachi. We believethat we are providing value not only to the companies andconsumers that are our direct customers but also to society
more broadly. This is the essence of our Social Innovation
Business. The products and services that we provide are all
closely linked to social sustainability. We aim to be a global
leader in sustainability through our efforts to help achieve
the SDGs.

SocialCorporate Credo

Governance

Sustainability Management

Assurance

Engagement and Initiatives

External Assessments and Awards

Specifying the Social Impacts of the Goals of the SDGs Will Contribute to Hitachi’s Business Strategy
Activities

GRI 102-47/103-1

Since fiscal 2019, Hitachi has urged business units andGroup companies to promote visualization of socialand environmental impacts in order to create the social,environmental, and economic value called for in the 2021
Mid-term Management Plan.
Specifically, after selecting their key businesses, eachbusiness unit and Group company chose the relevant items
from the list of social and environmental impacts and sorted
them by positive and negative impacts. They then identified
the stakeholders involved in each impact and summarized

them in a logic model.
This helped not only to visualize what kind of impacts
Hitachi and its customers have on society but also enabled
them to maximize positive impacts while minimizing negative
ones.

Phase1,2

Phase3Phase3Phase4

Understand sustainability and theSDGs, clarify how key businesses
are linked to the SDGs

Incorporate sustainability perspectives
in our management strategy

Explore new business possibilities
based on the motives of solvingsocial issues

Seek to create businesses basedon the motives ofsolving social issues

FY 2017

FY 2018

Increase understanding throughsustainability messages from the CEO,symposiums, workshops, newsletters, etc.
 ork with planning divisions and otherW
relevant departments at business units and
key Group companies to clarify how theirbusinesses are linked to the SDGs in termsof business opportunities and risks.

Incorporate the vision of Hitachi’s futurebusiness and growth originating fromachieving the SDGs and sustainability(solving social issues) in the 2021
Mid-term Management Plan businessstrategy, based on the knowledge thatrealizing a sustainable society will makesustainable growth possible for Hitachi.

FY 2020 —FY 2019
 romote management focusing on social,P
environmental, and economic value.
 xplore building a framework for assessingE
the impact of non-financial value created by
the five focus sectors set out in the 2021
Mid-term Management Plan.

 xpand application to consideration of newEbusinesses and impact evaluation for existing
businesses.
 romote establishment of a collaborativePsystem with sales divisions to enhancesustainability.

The measures will be taken in collaboration with business units, major Group companies,
corporate-related departments, and global sites (regional strategies).
Hitachi Sustainability Report 2021

018

Contents
Management

CEO's Message

Introduction

Management

Message from the Chief Environmental Officer

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

Engagement and Initiatives
Stakeholder Engagement

GRI 102-40/102-43

Approaches to Engagement
Investors Relations

Approach

Disclosure Policy

In our commitment to promoting our Social Innovation Business, we endeavor to accurately identify the various social issues facing each country and region, and to work toward resolution of theseissues through engagement in collaborative creation with a wide range of stakeholders, including customers, governments and municipalities, as well as academic and research institutions. In addition,with the goal of enhancing the value of our human capital, we work to promote activities with an emphasis on maintaining direct dialogues between the management and employees as an essential
management resource in the promotion of business. Furthermore, with the recent rise in ESG investment, we actively engage in dialogues with shareholders and investors as well.
Stakeholders

Main Roles

Main Divisions

Means of Communication (Results in FY 2020)

Pages

Customers

Creation of better products andservices, response to complaints,
appropriate disclosure of information
on products and services

Quality
Assurance/Sales

Customer satisfaction activities
MarketingWebsiteAdvertising activities“Global Brand Campaign” (14 locations)H olding the Hitachi Social Innovation Forum(9 countries in 3 regions)

Quality and Product Safety Management P137-138
Information Management P181-182
Customer Satisfaction P139-140

Shareholders
and Investors

Timely and proper information
disclosure, obtaining fair recognitionand support from capital markets,reflection of shareholder andinvestor viewpoints in corporate
management

Public Relations
and IR inancial results briefings (quarterly)FGeneral shareholders’ meeting (annual)Business strategy briefing “Hitachi
Investor Day” (annual)
Stakeholder dialogue (annual) ne-on-one meetings with institutionalO
investors and analysts (approx. 660
meetings)
IR tools: Integrated Report, business reports, etc.
Information disclosure on website forstakeholders and investors

Stakeholder Engagement P019-020

Suppliers

Building fair and sound business
relations, smooth information
sharing toward better partnerships

Procurement

Procurement activities
CSR monitoring (271 companies)
CSR audits (27 companies)
CSR procurement seminars (450 companies)

Responsible Procurement P132-136
Respect for Human Rights Throughout the Value Chain
P125-129

Employees

Proper treatment, promotion ofoccupational health and safety ofhuman capital

Public Relations/
Human Capital

Intranet, in-house newsletters
Training
Town hall meetings between senior management and employees (President & CEO: 7
meetings, executive vice presidents: 8 meetings)
Employee survey (annual)“Make a Difference!” idea contest

Stakeholder Engagement P019-020
Global Human Capital Management P094-100
Diversity and Inclusion P105-109
Work-Life Management P110-113
Occupational Health and Safety P114-122
Freedom of Association and Collective Bargaining P123

Nationaland Local
Governments,
Industrial
Associations

Compliance with domestic andforeign laws and regulations, policy
recommendations, participation
in industry-government-academia
collaborative projects

Government andExternal Relations

Academic research for policy recommendations to international organizations andnational governments, lobbying activities
Policy council participation (Japan)
Participation in business and industry associations (Japan)

Stakeholder Engagement P019-020
Main Initiatives and Groups Hitachi Is Involved with P021
Main Groups in Which Hitachi Participates P024

Hitachi Sustainability Report 2021

019

Contents
Management

CEO's Message

Stakeholders

Introduction

Management

Message from the Chief Environmental Officer

Main Roles

Environmental Strategy for Achieving a Decarbonized Society

Main Divisions

Fulfillment of responsibilities as acorporate citizen, involvement inlocal communities

SocialContributions/All

Academic
Associations
and ResearchInstitutions

Promotion of technologicalinnovations, participation in industrygovernment-academia collaborative
projects

Research andNGOs and
NPOs

Incorporation of diverse public
opinions, promotion of stakeholderfocused management, social
contributions through nonprofit
activities

Sustainability

GlobalEnvironment

Realization of a decarbonizedsociety, a resource efficient society,a harmonized society with nature

Environment/All
Business Divisions

Local
Communities

Environmental

SocialCorporate Credo

Governance

Sustainability Management

Means of Communication (Results in FY 2020)Engagement and Initiatives

Assurance
External Assessments and Awards

Pages

Contribution to local communities through businessParticipation in volunteer activities

Social Contribution Activities P142-145

Open innovation (joint research)Innovation Management P083-090

Stakeholder dialogues (annual)
Dialogue through collaboration

Stakeholder Engagement P019-020
Social Contribution Activities P142-145

Stakeholder dialogues about environment (annual)

Stakeholder dialogues P020
Environment P027-079

Business Divisions

Development

Promotion

Promoting Engagement
Structure

The outcomes of communication with stakeholders areshared with the respective divisions and actively utilized as
valuable insights into our business. Public interest is growing
in how corporations are taking in stakeholders’ voices toimprove their businesses, and we will continue to globallydevelop and promote ways of capitalizing on the opinions of
the members of society with whom we engage with in ourbusiness activities.

Stakeholder Dialogues
Activities

Case Study

GRI 102-42/102-44

Hitachi organizes stakeholder dialogues in countries and regions around the world to invite opinions on social challenges fromstakeholders representing specialized knowledge platforms, and it ensures that their insights are reflected in the business activities
conducted at each of Hitachi’s global businesses and business units.

Achievements in Fiscal 2020
In March 2021, Hitachi Europe held a two-day online dialogue on the theme of Hitachi’s approach toward a zero-carbon
society with stakeholders. The event was attended by 29 participants including company management executives,
managers involved with sustainability, policy makers, investors and NGOs.
Over the course of the two-day event, the participants engaged in wide-ranging and lively discussions covering
everything from sharing issues for the promotion of carbon neutrality with one another from their various perspectives totheir expectations of companies from the viewpoint of policy and what information companies are expected to disclose. In
addition to this, Alistair Dormer, Hitachi, Ltd.’s executive vice president, expounded on Hitachi’s environmental strategy andreceived a great deal of feedback from the participants.
Looking forward, we will continue to promote active dialogues with stakeholders and work to improve social and environmental
value by putting what we learn through this process to advantageous use in the management of the company.

Hitachi Sustainability Report 2021

020

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Main Initiatives and Groups Hitachi Is Involved with

Governance

Sustainability Management

Activities

Engagement and Initiatives

Assurance
External Assessments and Awards

GRI 102-11/102-12

Based on its corporate credo of “contribute to society through the development of superior, original technology and products,” Hitachi has advanced its Social Innovation Business in order to help
realize a sustainable society. As part of this, to play its proper role as a global corporation, Hitachi actively participates in international initiatives addressing social issues on a global scale.

Initiative/Group

Logo

Activities

United Nations
Global Compact

Officially became a participant
in 2009. Joined workshops
organized by the Global Compact
Network Japan on ten different
topics including supply chain
management, ESG, and SDGs in
fiscal 2020

World BusinessCouncil for Sustainable
Development (WBCSD)

Became a member in 1995
Adopted SOS 1.5 project in 2020

Business for Social
Responsibility (BSR)

Initiative/Group

Logo

Activities

Race To Zerocampaign

Joined in 2020, along with
Business Ambition for 1.5°C
commitment

Business Ambition
for 1.5°C

Became a member in 2020, alongwith SBT1.5°C certification

Became a member in 2007 andhave participated in the Human
Rights Working Group (HRWG)
since 2016

Japan Climate Initiative(JCI)

Became a member in 2018. Alsoa member of the JCI Race to Zero
Circle established in 2021

World Economic Forum(WEF)

Participated in Davos Forum since
2014

The Valuable 500

Participated in 2021

Task Force on Climaterelated Financial
Disclosures (TCFD)

Announced its support for TCFD
in 2018 and disclosed climaterelated information based on the
TCFD recommendations

Tokyo Zero-emission
Innovation Bay

Became an organizing institution in
conjunction with its establishment
in 2020

Hitachi Sustainability Report 2021

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Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

International Standardization Activities
Hitachi’s Approach to International Standardization

External Assessment of Hitachi’s International
Standardization Activities

Approach

In order for Hitachi to contribute to the achievement ofSDGs through promoting its Social Innovation Business,
we believe it is extremely important to work toward theresolution of social issues from a global perspective throughthe collaborative creation of new social norms together witha diverse range of stakeholders, including governments andmunicipalities throughout the world, academic and research
institutions, companies, and end users.
In our view, international standardization activities
are global initiatives appropriate for the realization ofa sustainable society, being based on explicitly statedstandards, formulated on the basis of fair discussions
involving members representing specialized fields, withinternational consensus, and an accurate grasp of social
issues facing the world.
Accordingly, we consider international standardization
activities to be of importance along with research anddevelopment work and intellectual property-related activities.
In order to contribute to the resolution of social issues on
a global scale, Hitachi actively engages in activities withinternational standardization organizations, including IEC*¹,
ISO*², and ITU-T*³.
In the environmental domain, we are engaged in efforts
concerning the circular economy (ISO/TC*4 323) and theenvironmental standardization for electrical and electronic
products and systems (IEC/TC 111), and, with regard tosocial issues, Society 5.0 (ISO/IWA*5 39), smart community

infrastructures (ISO/TC 268/SC*6 1), and unmanned aircraft
systems (ISO/TC 20/SC 16). Additionally, by contributing
to international standardization efforts by various consortia
and other bodies, and providing solutions consistent withinternational standards, we support the development ofsound global markets and facilitate innovation to resolve
social issues. In order to fulfill our duties as a global
company, Hitachi actively participates in associations
involved with standardization activities in various industries
and regions.
*1 IEC: International Electrotechnical Commission. An international organization
composed of member countries and regions.
*2 ISO: International Organization for Standardization. An internationalorganization composed of member countries and regions.
*3 ITU-T: International Telecommunication Union Telecommunication
Standardization Sector. A specialized agency of the United Nations.
*4 TC: Technical Committee*5 IWA: International Workshop Agreement*6 SC: Subcommittee

Activities

Hitachi’s international standardization activities have been
receiving favorable appraisals from outside the company. In
fiscal 2020, we received public recognition from the Ministryof Economy, Trade and Industry (METI), the IEC Activities
Promotion Committee of Japan, the Telecommunication
Technology Committee (TTC), and the Information
Technology Standards Commission of Japan (ITSCJ),
among other organizations.

Structure for Promoting International
Standardization Activities
Structure

As part of the initiatives related to international standardization
activities, Hitachi personnel participate as members inmany technical committees maintained by international
standardization organizations, including IEC and ISO, andhave been appointed to key positions, such as committee
chairs, committee managers and secretaries as well.
Furthermore, in order to make efforts concerned withinternational standardization activities involving Groupwide cooperation, we have established the Hitachi Group
Standardization Committee. The Steering Committee*¹ for*1 Steering Committee: Headed by the executive officer overseeing R&D, thisentity includes chief technology officers of Hitachi business units and key
Group companies. The committee is responsible for decisions on crossdepartmental and companywide standardization projects.

Hitachi Sustainability Report 2021

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Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

the Standardization Committee selects themes for Hitachi
to prioritize in the medium- to long-term with regard toimportant issues. Detailed discussions are held in working
groups for each theme to promote standardization activities.

Achievements in Fiscal 2020
One of the principal themes selected was Society
5.0, an initiative spearheaded by the Japanese
government aimed at the realization of a humancentered, sustainable society. In order to create
venues in which discussions can be conducted
to attain consensus among various countries andmajor standardization organizations looking towardrealization of Society 5.0, Hitachi has actively engagedin activities related to ISO/IWA 39 (gap analysis forstandardization of sustainable and human-centeredsocieties enabled with cyber-physical systems).

Hitachi Group Standardization Committee

Head:
Hitachi, Ltd.
executive
officer in chargeof R&D

Members:
International
Standardization
Officers of Hitachi
business units
and key Group
companies

Steering Committee

Priority Theme 1
Working Group

Priority Theme 2
Working Group

Priority Theme 3
Working Group

Hitachi Group Standardization Committee

Hitachi Sustainability Report 2021

023

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

Main Groups in Which Hitachi Participates
As part of developing Hitachi’s Social Innovation Business ona global scale, we view government institutions and relatedorganizations in Japan and other countries around the world
as important partners both as customers and supporters.
Our Government & External Relations Group leads ourefforts to strengthen ties with these bodies. The Government& External Relations Group seeks to collaborate with local
communities by making Group-wide efforts to work withgovernments and international organizations in each country,
and at the same time, they also work to discover new
business opportunities for Hitachi in response to the various
regions’ social issues and policies.
We are also more frequently being asked for opinions
by governments. By making requests directly as well as
proposing solutions through discussions in economic
organizations and industrial bodies, we help build a better
society.

Activities

SocialCorporate Credo

Governance

Sustainability Management

Assurance

Engagement and Initiatives

External Assessments and Awards

GRI 102-13/203-2

Participation in Government Councils/Business and Industry Associations
Council/Group

Participant

Activities

Panel discussion regarding
Infrastructure System
International Expansion Strategy
2025 (Cabinet Secretariat)

Executive Chairman & CEO Toshiaki Higashihara
attended as a private sector member roposals regarding appropriate concrete measures to bePtaken based on the Japanese government’s Infrastructure
System International Expansion Strategy 2025

Japan Business Federation(Keidanren)

Executive Chairman & CEO Toshiaki Higashihara
attended as the vice chair stablishing sustainable capitalism that achieves SDGs
E
through policy recommendations for realizing Society 5.0
under the theme of “Society 5.0 for SDGs.

Japan Electronics andInformation Technology
Industries Association (JEITA)

Executive Chairman & CEO Toshiaki Higashihara
attended as the vice chair xamining and making proposals on the promotion ofE
digital technology, data use, and market creation underthe mission to achieve Society 5.0
Offering insights into paradigms of international legislation,agreements, and standards to develop digital trade andstrengthen international competitivenessJapan Electrical Manufacturers’
Association (JEMA)

Executive Chairman & CEO Toshiaki Higashihara
attended as the chair romoting the sustainable development of electricalP
manufacturing by submitting opinions on various
governmental and administrative policies and promoting
product safety awareness, international standardizationand compatibility evaluation, statistical research work, andthe development of human capital for STEM fields

World Economic Forum (WEF)

Executive Officers centered on
Executive Chairman & CEO Toshiaki Higashihara
and President & COO Keiji KojimaC ontributing to improve world affairs through discussions
toward solving global, regional, and industrial challenges
by cooperating with leaders from economics, politics, andacademia participating in the forum.

Japan-US Business Council

Executive Chairman & CEO Toshiaki Higashihara
attended as an organizing Executive Committee
memberExchanging opinions and proposing policies regarding
various issues with Japan-US economic relations from thepoint of view of the Japan-US business community as awhole

National Association of
Manufacturers

Hitachi Corporate Office in Washington DC obbying and making policy proposals, as the largestLassociation of manufacturers in the United States, tosupport the international competitiveness of member
corporations

Japan Business Council in
Europe (JBCE)

Hitachi Europe Public Relations andSustainability Division aking policy proposals to contribute to the furtherMdevelopment of EU-Japan relations and the EU economy
as the body representing Japanese corporations in the EU

Hitachi Sustainability Report 2021

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Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Assurance

Engagement and Initiatives

External Assessments and Awards

External Assessments and Awards
External Assessments and Awards

Activities

Hitachi actively pursues a range of activities aimed at developing a more sustainable society. These activities have earned the Hitachi Group high marks from numerous external organizations.

Actively Responding to ESG Assessments
The Hitachi Group is proactively responding to the external assessments that are required to be selected as a target for ESG*1
investment.
Hitachi, Ltd. received high scores from the CDP*² which ranks companies based on their environmental practices and thequality of their disclosures. We received an A, the highest score, for water security, and an A- for climate change. We have now
also been included in the FTSE4Good Index Series*³ for the first time.
Among Group companies, Hitachi Construction Machinery was selected for the Dow Jones Sustainability Asia Pacific Index(DJSI*4 Asia Pacific); Hitachi Metals was selected for the MSCI Japan Empowering Women Index (WIN)*5, and both companies
were selected for the MSCI Japan ESG Select Leaders Index*6 and the FTSE4Good Index Series.
*1 ESG stands for “environmental, social, and governance”—key factors in promoting socially responsible investment.
*2 CDP is a UK-based international nonprofit organization that rates corporate initiatives and transparency in the three areas of climate change, water security, and forests
using an eight-level scale of A to D-.
*3 FTSE4Good Index Series: One of the indexes calculated by the London Stock Exchange, that is owned by the FTSE Group and which selects component stocks basedon their ESG performance, specifically environmental management, climate change mitigation, human rights and workers’ rights, supply chain labor standards, and bribery
and corruption prevention.
*4 DJSI: A family of ESG indexes developed by Dow Jones & Company (USA) and RobecoSAM (Switzerland) that includes global and regional indexes with specificcompositions. DJSI World, for example, selects on a global basis, while the DJSI Asia Pacific Index covers Japan, Asia, and Australia.
*5 MSCI Japan Empowering Women Index (WIN): A stock price index comprising companies in Japan selected for their high degree of engagement by female employees
based on criteria formulated by the world-renowned index calculation company MSCI.
*6 MSCI Japan ESG Select Leaders Index: The MSCI Japan ESG Select Leaders Index targets 50% of the free float-adjusted market capitalization of each Global Industry
Classification Standard [i](GICS®) from a free float-adjusted market capitalization weighted index based on the MSCI Japan IMI Top 700 Index, its parent index, which
includes large, mid and small-cap securities in the Japanese markets and is designed to target companies that have high Environmental, Social and Governance (ESG)
performance.

CDP Scores for Fiscal 2020
Company

Score

Hitachi, Ltd.

Climate change: A-

Water security: A

Hitachi Metals

Climate change: B-

Water security: B-

HitachiConstruction
Machinery

Climate change: A-

Water security: B

Results of ESG External Analysis in Fiscal 2020
Institution

FTSE

Index

Companies
selected

FTSE4Good Index Series
FTSE Blossom Japan Index

Hitachi, Ltd.,
Hitachi Metals,
HitachiConstruction
Machinery

MSCI Japan ESG SelectLeaders Index

Hitachi Metals,
HitachiConstruction
Machinery

MSCI Japan Empowering
Women Index (WIN)

Hitachi Metals

Dow Jones Sustainability
Asia Pacific Index

HitachiConstruction
Machinery

MSCI

S&P Global

Hitachi Sustainability Report 2021

025

Contents
Management

CEO's Message

Introduction

Message from the Chief Environmental Officer

Management

Environmental

Environmental Strategy for Achieving a Decarbonized Society

SocialCorporate Credo

Governance

Sustainability Management

Engagement and Initiatives

Assurance
External Assessments and Awards

Diversity Management Selection 100

Eruboshi Certification

In 2013, Hitachi, Ltd. was included in the Diversity Management
Selection 100, an initiative of Japan’s Ministry of Economy,
Trade, and Industry (METI). The Diversity Management Selection
100 system chooses and recognizes companies that haveachieved high results in such areas as improving innovationand productivity by using the talents of diverse employees,
including women, different nationalities, older employees, andpeople with disabilities. Hitachi was lauded for going beyond
simply introducing diversity programs to promoting diversity
management Group-wide as a corporate strategy backed
by strong management commitment. Additionally, the Group
company Hitachi High-Tech was selected to be included in the
New Diversity Management Selection 100 in 2021.

Hitachi, Ltd. promotes diversity as an important component of its
management strategy and strives to create work environmentsthat enable its diverse human capital to play an active role. In
recognition of these initiatives, we received Eruboshi certification,
which is conferred to companies that are implementing
exceptional measures under the Act on Promotion of Women’sParticipation and Advancement in the Workplace. Hitachi, Ltd.
was awarded class 2 (there are three categories); other Group
companies receiving Eruboshi certification include Hitachi Metals,
Hitachi High-Tech, Hitachi Systems, and Hitachi Solutions whichwere all awarded class 3 certification.

Kurumin Certification

WICI Japan Integration Reporting Awards 2020 and the 23rd Nikkei Annual
Report Awards 2020

Hitachi, Ltd. has received Kurumin certification in 2011 *¹. Thiswas granted under Japan’s Act on Advancement of Measures
to Support Raising Next-Generation Children, in recognition of
its achievements in developing and implementing action plans
supporting child care so that employees can work with the peaceof mind that comes from a good work-life balance.
*1 Hitachi Group companies with Kurumin certification include Hitachi Construction
Machinery Co., Ltd., Hitachi High-Tech, Hitachi Urban Investment, Ltd., Hitachi
Systems, Ltd., and Hitachi Solutions, Ltd.

The Hitachi Integrated Report 2020 was awarded the Gold, the highest award, at the WICIJapan Integration Reporting Awards 2020.
The award was given on the basis of the integrated thinking informing our implementationof management, the way medium- to long-term value creation capabilities were indicated clearlywith their relation to various stakeholders, and for our appraisal as a company with promisingpotential in further business value improvement, looking forward. Our report was also awarded
the Semi Grand Prix at the 23rd Nikkei Annual Report Awards 2020.

Hitachi Sustainability Report 2021

026

Contents
Environmental

Executive Summary

Introduction

Management

Advancing Our Environmental Vision and Long-Term Environmental Targets

Environmental

Environmental GovernanceAchieving a Decarbonized Society

SocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

027 Executive Summary
028 Executive Summary

Environmental

030 Advancing Our Environmental
		 Vision and Long-Term Environmental Targets
030 The Environmental Vision and Hitachi Environmental			Innovation 2050

032 Environmental Action Plan

034 Environmental Governance
034 Framework for Promoting Environmental			

Striving to Increase Environmental Value
Hitachi aims to achieve a decarbonized society, a resource efficient society,and a harmonized society with nature under its Environmental Vision.
To this end, we strive to achieve the long-term environmental targets ofHitachi Environmental Innovation 2050 not just within Hitachi itself but
across our entire value chain.
Additionally, we support the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD), and are actively advancing
our efforts to clarify and disclose information on climate-related risks
and opportunities.

Governance

036 Environmental Management System

040 Achieving a Decarbonized Society
040 Efforts to Achieve a Decarbonized Society
042 Contributing to a Decarbonized Society			Through the Decarbonization Business

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

048 Climate-related Financial Information Disclosure			(Based on TCFD Recommendations)

055 Achieving a Resource Efficient Society
055 Efforts to Achieve a Resource Efficient Society
056 Building a Water Efficient Society
059 Building a Society That Uses Resources Efficiently

063 Achieving a Harmonized Society with Nature
063 Efforts to Achieve a Harmonized Society with Nature
065 Managing and Reducing Chemical Substances
067 Preserving Ecosystems

068 Environmental Data
068 GHG Emissions Throughout the Value Chain
070 Environmental Load from Operations
075 Environmental Load by Region
077 Environmental Management Data
078 Environmental Accounting

Hitachi Sustainability Report 2021

027

Contents
Environmental
Environmental

Executive
Executive Summary

Introduction

Management

Advancing Our Environmental Vision and Long-Term Environmental Targets

Environmental
Why
ー Why it matters ーEnvironmental

Environmental GovernanceAchieving a Decarbonized Society

Achieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

GRI 103-2

Hitachi’s corporate credo 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 aharmonized society with nature, we have established a set of long-term environmental targets looking toward 2030 and 2050 called Hitachi Environmental Innovation 2050, andhave been promoting Group-wide environmental activities in line with our Environmental Action Plan, which is updated every three years. To help build a decarbonized society,we aim to achieve carbon neutrality at our business sites (factories and offices) by fiscal 2030 and throughout our value chain by fiscal 2050.

How

What

・Enhancing environmental
governanceー How we are doing it ー

Policy andpromotion structure

Important items related to environmental initiatives are deliberated by the Executive Sustainability Committee which is chaired by the
executive chairman and CEO of Hitachi, Ltd. and attended by top Hitachi executives, and environmental activities are implemented.

Enhance environmental
governance/environmental
management system

Registered data from about 1,000 business sites in 63 countries in the Environmental Data Collection System (Eco-DS) to estimate
environmental load

“Eco-Factories & Offices Select”
certification

Under “Eco-Factories & Offices Select,” of our approximately 1,000 facilities, recorded 13 new certifications, and 57 renewed certifications(total certified facilities: 70)

・Enhancing environmental
management system
・Reducing environmental
burdens through “EcoFactories & Offices Select”
certification
・I mplementing environmental
education for employees
・Ensuring environmental
compliance

Achievements in Fiscal 2020

A total score of 223 GPs in the GREEN 21 evaluation of our Environmental Action Plan

Environmental human capital development Rolled out Introduction to Sustainability e-learning materials for general education globally
Voluntary environmental audits

Implementation rate of voluntary environmental audits of business sites outside Japan by business units and Group companies (number ofsites audited/number of sites): 34%

How

What

ー What we are doing ーAchieving a
DecarbonizedSociety

GovernanceRelevant SDGs

ー What we are doing ーEnvironmental
GovernanceSocial・E
 xpanding thedecarbonization businessー How we are doing it ーLong-term
environmental targets· Achieve carbon neutrality throughout our value chain by fiscal 2050 and reduce CO2 emissions 50% by fiscal 2030 (compared to fiscal 2010)· Achieve carbon neutrality at business sites (factories and offices) by fiscal 2030

・Improving the environmental

performance of products
and services throughEnvironmentally Conscious
Design Assessments

Achievements in Fiscal 2020

Reduction of CO2 emissions

Reduction rate of CO2 emissions per unit of products and services: 20%
Reduction rate of CO2 emissions per unit at business sites (factories and offices): 1.4%

Hitachi Sustainability Report 2021

028

Contents
Environmental
Environmental

Executive
Executive Summary

Introduction

Management

Advancing Our Environmental Vision and Long-Term Environmental Targets

Environmental

Environmental GovernanceSocialAchieving a Decarbonized Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

・Reducing CO2 emissions

and achieving carbon
neutrality at business sites(factories and offices)

Promotion of the HICP framework Implemented investment in energy-saving equipment in 22 cases totaling ¥250 million through HICP・Introducing the HitachiInternal Carbon Pricing(HICP) framework

Introduce Renewable Energy

Tripled the previous fiscal year’s use of electricity from renewable sources

・Introducing renewable energy

How

What

ー What we are doing ーAchievinga Resource
EfficientSociety・Building a water efficientsociety

ー How we are doing it ーLong-term
environmental targets· Build a society that uses water and other resources efficiently with customers and society· 50% improvement of efficiency in use of water/resources by fiscal 2050 (compared to fiscal 2010 in the Hitachi Group)・Responding to waterrisks

Achievements in Fiscal 2020

・Building a society that

Reduction of water use per unit

Reduction rate in water use per unit: 24%

・Transitioning to a circular

Respond to water risks· Revised our Water Risk Guidelines· Promoted measures based on water risk survey results

Build a society that uses
resources efficiently· Promoted recycling activities for each productuses resources efficiently
economyReduction of waste and valuables
Reduction rate in waste and valuables generation per unit: 14%
generation per unit

How

What

ー What we are doing ーAchieving a
HarmonizedSociety with
Nature・Promoting initiatives

to minimize impact onnatural capitalー How we are doing it ーLong-term
environmental targets

Minimize impact on natural capital・Managing chemical

substances in products

Achievements in Fiscal 2020

・Managing chemical

Reduce the rate of chemical
atmospheric emissions per unit

Reduction rate in chemical atmospheric emissions per unit: 33%

・Promoting initiatives toManage chemical substances inour products

Revised list of Voluntarily Controlled Chemical Substances in accordance with Toxic Substances Control Act (TSCA)

substances in business
operations
preserve ecosystems

Built calculation methods for positive impacts (e.g., benefits of forest conservation activities) and negative impacts into the Environmental
Calculation of positive andnegative impact on natural capital Data Collection System (Eco-DS) and started to collect data

Hitachi Sustainability Report 2021

029

Contents

Introduction

Management

Environmental
Environmental Executive
Executive
Summary
Summary Advancing
Advancing
Our
Our
Environmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
Environmental Targets
Targets

Environmental

Environmental GovernanceSocialAchieving a Decarbonized Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Advancing Our Environmental Vision and Long-Term Environmental Targets
The Environmental Vision and Hitachi Environmental Innovation 2050
Hitachi’s Mid-term Management Plan places an emphasison environmental value clearly indicating the company’scommitment to delivering strong environmental performance.
In response to the adoption of the Paris Agreement on climatechange and the UN Sustainable Development Goals (SDGs),
in 2016 we established a set of long-term environmental
targets under the banner of Hitachi Environmental Innovation
2050 and have been working toward achieving them. The
IPCC Special Report on Global Warming of 1.5ºC published in2018 states that greater efforts will be required in order to limit
the global temperature increase to 1.5°C. In response, regions
and countries around the world, including the European
Union and Japan, have been stepping up their commitments.
At Hitachi, we had set a long-term environmental targetof reducing CO2 emissions by 80% throughout the value
chain by fiscal 2050 (compared to fiscal 2010). However, inconsideration of recent trends both internal and external, andin recognition of the corporate social responsibility Hitachi is
expected to fulfill, we have now revised our target of achieving
a decarbonized society as described below, explicitly aiming
to achieve carbon neutrality.

GRI 102-11/ 102-15/103-2

Environmental Vision and Long-term Environmental Targets [Hitachi Environmental Innovation 2050]

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

Decarbonized Society

Resource Efficient Society

Harmonized Society with Nature

Climate Change Mitigation/Adaptation

Saving and Recycling Resources

Preservation of Ecosystems

Long-term Environmental Targets
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 FY 2050 through the value chain

Build a society that uses water andother resources efficiently withcustomers and society

Impact on
natural capital

Reduce CO2 emissions 50%
by FY 2030 (compared to FY 2010)◦Achieve carbon neutrality throughout our value chain

Achieve carbon neutrality
by FY 2030 at business sites(factories and offices)◦Achieve carbon neutrality at business sites (factories
and offices) by fiscal 2030

Goals

Hitachi’s environmental initiatives, including the achievement of these long-term environmental targets, are mandated by the shortterm Environmental Action Plan which is updated every three years and pursued Group-wide. Implementation of the Environmental
Action Plan for 2021, covering fiscal 2019–2021 and formulated in line with the 2021 Mid-term Management Plan, is currently
underway, and we are steadily accumulating achievements as we work to meet the detailed KPIs that the plan includes.

Efforts to Achieve a Decarbonized Society

by fiscal 2050 and reduce CO2 emissions by 50% by
fiscal 2030 (compared to fiscal 2010)

PolicyEfficiency in use of water/resources

FY 2050

50

Minimized% improvement(compared to FY 2010)

Environmental Action Plan
Set environmental action items and targets every 3 years in order to achieve the long-term targets

Hitachi Sustainability Report 2021

030

Contents

Introduction

Management

Environmental
Environmental Executive
Executive
Summary
Summary Advancing
Advancing
Our
Our
Environmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
Environmental Targets
Targets

Environmental

Environmental GovernanceSocialAchieving a Decarbonized Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Progress in Reaching Long-Term Environmental Targets
Goals

Activities

We are making progress on major targets, as shown in the table below, and we are generally on track. We will continue increasing
our efforts to achieve these long-term targets. Regarding the achievement of our long-term value chain target to help builda decarbonized society, we are developing activities which help to reduce CO2 emissions by providing products with top-tierenvironmental performance.

Efforts to Achieve a Decarbonized Society
Reduced CO2 Emissions at Business Sites (Factories and Offices)

Reduction rate of total CO2 emissions(base: FY 2010, Hitachi Group)

FY 2020 result

FY 2021 target

FY 2030 target

FY 2050 target

39%

20% or higher

100%(carbon neutral)(Maintain 100%)

Efforts to Achieve a Resource Efficient Society
Enhanced Efficiency in the Use of Water at Business Sites (Factories and Offices)

Reduction rate in water use per unit
(base: FY 2010, Hitachi Group)

FY 2020 result

FY 2021 target

FY 2030 target

FY 2050 target

24％

26% or higher―

50%

Enhanced Efficiency in the Use of Waste and Valuable Generation at Business Sites (Factories and Offices)

Reduction rate in Waste andValuable Generation use per unit
(base: FY 2010, Hitachi Group)

FY 2020 result

FY 2021 target

FY 2030 target

FY 2050 target

14％

12% or higher―

50%

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

Hitachi Sustainability Report 2021

031

Contents

Introduction

Management

Environmental
Environmental Executive
Executive
Summary
Summary Advancing
Advancing
Our
Our
Environmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
Environmental Targets
Targets

Environmental Action Plan

Environmental

Environmental GovernanceSocialAchieving a Decarbonized Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

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 andpromotes its steady implementation.

Environmental Action Plan for 2021 (Fiscal 2019–2021)
Goals

Activities

Hitachi is promoting environmental activities under the 2021 Environmental Action Plan (fiscal 2019–2021) that are based on the 2021 Mid-term Management Plan. The targets set for fiscal 2020 and fiscal
2021 as well as the actual results for fiscal 2020 are as follows. GREEN 21 is used as a tool for evaluating and managing our achievements made over three-year periods toward the targets set.
◆◆◆：Achieved

Environmental Action Plan for 2021◆◆：Partially achieved

Our environmental activities and targets are updated every three years with a view to achieving our long-term environmental targets.

Environmental Management
Items

Indicators

Promote environmental humancapital development
Enhance global environmental
management

Reduce CO2
emissions of
products andservices

FY 2020 results(achievement level)

Final FY (2021) targets

50%

34% ◆◆

80%

Environmental human capital development of the Hitachi Group
Implementation rate of voluntary environmental audits (number of implementing sites/number of sites outside Japan)

A Resource Efficient Society

A Decarbonized Society
Items

FY 2020 targets

Indicators
Reduction rate of CO2
emissions per unit
(base: FY 2010)

FY 2020
Final
FY 2020
results
targets (achievement FY (2021)
targets
level)
20%

20%
◆◆◆

21%

Items
Water
circulation(factories
and offices)

Address climate Identification and review of risks and opportunities
change risks andopportunities
Reduce CO2
emissions ofbusiness sites(factories andoffices)

Reduction rate of CO2
emissions per unit*1(base: FY 2010)

Reduce CO2
emissions fromtransportation(shipping)

Reduction rate oftransportation energy
consumption per unit
(Japan)*2 (base: FY 2010)

8%

1.4%
◆◆

10%

1％
◆◆

9%

11%

Resource
circulation(factories
and offices)

Indicators

FY 2020
targets

FY 2020
results(achievementlevel)A Harmonized Society with Nature
Final
FY (2021)
targets

Enhancingefficiency inthe use ofwater

Reduction
rate in water
use per unit
(base: FY
2010)

Respond towater risks

Promotion of measures based on water risk survey
results

Enhance
Reduction
efficiency in rate in waste
the use ofand valuables
resources
generation per
Reduce and unit (base: FY
recycle waste 2010)
materials

24%

11%

24%
◆◆◆

14％
◆◆◆

26%

12%

Items

Indicators
Reduction ratein chemical
atmosphericemissions perunit (base: FY2010)

FY 2020
FY
results
2020 (achievementtargets
level)Final
FY (2021)
targets

Chemical
substances(factories
and offices)

Reducechemicalemissions

Ecosystem
preservation

Reduceimpact on
naturalcapitalCalculation of negative impacts (environmental
impact assessment of business activities)

Contribute to
ecosystem
preservation

Promotion of ecosystem preservation activities

17%

33%
◆◆◆

18%

Calculation of positive impacts (forest
conservation activities)

Environmental Action Plan Achievement Evaluation System: GREEN 21*1 Reduction rate of CO2 emissions per unit refers to reductions in CO2 emissions from just Hitachi’s consumption of energy.
*2 This is a target for Japan only. Targets in other countries are set on a voluntary basis.

Hitachi Sustainability Report 2021

032

Contents

Introduction

Management

Environmental
Environmental Executive
Executive
Summary
Summary Advancing
Advancing
Our
Our
Environmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
Environmental Targets
Targets

Environmental

Environmental GovernanceSocialAchieving a Decarbonized Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Environmental Action Plan Achievement Evaluation System: GREEN 21
SystemActivities

GREEN 21 is used as a system for evaluating and managing
our achievements made over three-year periods toward thetargets set in our Environmental Action Plan.
GREEN 21 converts the level of achievement toward
the Environmental Action Plan targets at each of theapproximately 160 major sites classified as category A
into green points (GPs) and then makes an evaluation
on a category-by-category basis. A perfect score for any
category is 100 GPs. Points are awarded for meetingthe Environmental Action Plan’s annual targets and as
an added incentive for particularly ambitious activities.
Representing progress in terms of GPs shows how mucheach site has achieved in each category and also enables
sites to be compared with each other. The results are also
used in the Environmental Action Plan’s PDCA (plan-docheck-act) cycles.
The Sustainability Promotion Division also uses theresults of the GREEN 21 evaluation as a condition forawarding its Eco-Factories & Offices Select certification forbusiness sites that promote activities demonstrating a highlevel of environmental consciousness and produce notable
results in that area.

Achievements in Fiscal 2020
The overall evaluation, which is the sum of theevaluation scores for each category, was 223 GPs
which is lower than the reference score of 240 GPs
in fiscal 2020. Due to the impact of the COVID-19,
business trips outside of Japan were restricted andthere was a decrease in production. The scores forenhancing global environmental management andreducing CO2 emissions per unit of business sitecame in below the targets.

GREEN 21: Fiscal 2020 Evaluation Results (Hitachi Group)
FY 2020 reference score: 240 GPs
FY 2020 result: 223 GPs

Environmental management

54GPs
100

80
60

A harmonizedsociety withnature48GPs

40

A decarbonizedsociety20
0

A resource
efficient society

55GPs

66GPs

Hitachi Sustainability Report 2021

033

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
Environmental Governance
GovernanceAchieving a Decarbonized Society

SocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Environmental Governance
Framework for Promoting Environmental GovernanceTo achieve our Environmental Vision and reach our longterm environmental targets called Hitachi Environmental
Innovation 2050, Hitachi, Ltd., is enhancing environmental
governance by building a global structure to support
environmental decision making and implementation at
Hitachi, Ltd. and consolidated subsidiaries (a total of 872
companies as of March 31, 2021).
Important items related to environmental initiatives in the
Hitachi Group are deliberated by the Executive Sustainability
Committee, chaired by the executive chairman and CEO
of Hitachi, Ltd., and attended by top Hitachi executives.
Members meet twice a year to discuss environment-related
policies and measures, including those in response to
climate change, water and other resources, and to share
progress reports and achievements and set the course forfurther improvements and new initiatives.
In April 2021, Hitachi, Ltd. introduced evaluations thattake environmental value into account in the executive
compensation system with a view to accelerating thecreation of environmental value. The targeted environmental
value is based on dialogue between the president and each
executive officer.
Hitachi, Ltd. has adopted a committee system toseparate the responsibilities for management oversight fromthe execution of business operations. Under this system, theAudit Committee of independent directors conducts an audit
of sustainability-related operations once a year. Reports
on climate change and other environment-related material
issues are made to the committee by executive officers ofHitachi, Ltd.

Structure

To develop ways to achieve our long-term
environmental targets and reduce environmental compliancerisks, the three-year Hitachi Group Environmental Action
Plan is formulated in line with the Mid-term Management
Plan by environmental promotion division heads frombusiness units of Hitachi, Ltd., and major Group companies
participating in Eco-Management Meetings. Targets (andmeasures to achieve them) in the Environmental Action Plan
that affect not only our environmental strategy but also ourbusiness strategy—like those to reduce the CO2 emissionsof our products and services—are determined jointly by the
Eco-Management Meetings and Sustainability Promotion
Meetings, attended by business promotion division
heads. A progress report concerning important targets inthe Environmental Action Plan is made to the Executive
Sustainability Committee, and instructions from committee
members are reflected in actual environmental activities.
Group-wide efforts to advance environmental activities
are undertaken outside Japan as well. Environmental officers
are assigned to China, the rest of Asia, the Americas, andEurope to share information on the state of progress of ourenvironmental activities and on the latest environmental
regulations in each country and region. Respective Regional
Environmental Meetings are also held once or twice a year.

GRI 102-11/102-29/102-31

Achievements in and after Fiscal 2020
In fiscal 2020, the Executive Sustainability Committee
was held in April and November. The discussions
included: a report on the status of plans to promote
Hitachi Carbon Neutrality 2030, a measure toaccelerate the long-term environmental targets called
Hitachi Environmental Innovation 2050, and ways toenhance its framework; visualization of environmental
value; and the approach to the 2030 objective of
the phase of the use of products and services. In
June 2021, it was decided to revise one of the longterm environmental targets of Hitachi Environmental
Innovation 2050, aiming for a decarbonized society,to achieve carbon neutrality by fiscal 2050 throughthe value chain.

Hitachi Sustainability Report 2021

034

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
Environmental Governance
GovernanceAchieving a Decarbonized Society

SocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Sustainability Strategy Promotion Structure

Executive Sustainability Committee
Chair

Executive Chairman & CEO

Members

Senior Executive Committee members, CEOs of BUs, and corporate division heads

Key roles

Discuss and implement specific measures for sustainability strategy (including environment, human rights, and diversity and inclusion)Frequency

Twice per FY (more than twice per FY from FY2021 on)

Sustainability Promotion Meetings

Eco-Management Meetings

Members: Business promotion division
heads at BUs and key Group companiesM embers: Environmental promotion division
heads at BUs and key Group companies

Key roles: Discuss and implement specificmeasures for sustainability strategy

Key roles: Discuss and implement
concrete measures to achieve longterm
environmental targets in sustainability
strategyFrequency: Twice per FY

Frequency: Twice per FY

Secretariat
Sustainability Promotion Division

CSR and environmental officers
from each regional headquarters

Hitachi Sustainability Report 2021

035

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
Environmental Governance
GovernanceSocialAchieving a Decarbonized Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Environmental Management System
Enhancing Our Environmental Management System

Collecting and Monitoring Environmental Load
Data to Improve Environmental Practices

SystemHitachi has globally applicable criteria for environmental management classification to conduct environmental management
properly and efficiently in accordance with the environmental load and compliance risk levels of Group business sites, bothlarge and small. We assign a score for each classification item, such as the amount of power consumed, the volume of waste
generated, and whether or not legal restrictions apply. All Group business sites are classified into one of three categories: A,
B, and C, and environmental management is then conducted based on the respective level of risk. Of our approximately 1,000
business sites, about 160 major sites are classified as category A. These sites account for more than 90% of the Group’s total
environmental load.
The business units and Group companies that manages A sites participate as members of Eco-Management Meetingsto draw up the Environmental Action Plan, which is then disseminated throughout the entire Hitachi Group by environmental
strategy officers, chosen from among the heads and general managers of those organizations. These business units and Group
companies also formulate their own environmental action plans based on Hitachi Group’s Environmental Action Plan and strive
to achieve their targets.
In addition to adhering to the in-house environmental management system, all our global category A manufacturing sites haveacquired third-party certification, such as ISO 14001.
List of ISO 14001-Certified Companies

Categories by Criteria for Classification of Environmental Management
Setting targets based on theEnvironmental Action Plan andreporting environmental load data to
Hitachi, Ltd. headquarters

Reporting environmental load data toenvironmental strategy officers within
their own group

Reporting violations of environmental
laws and regulations to Hitachi, Ltd.
headquarters and responding to the
management classification survey

Category A

〇

〇

〇

Category B

−

〇

〇

Category C

−

−

〇

Activities

To conduct environmental management efficiently and effectively,
Hitachi collects environmental load data using the Environmental
Data Collection System (Eco-DS). The system, which is inJapanese, English, and Chinese, monitors and registers items
in about 20 categories, ranging from environmental load dataon items such as energy use, water use, and waste generation,
to whether an item falls under relevant environmental laws andregulations, and environmental accounting. We have also set up
an international help desk to support the system’s operation andpromote understanding of environmental management.
The collected data is aggregated and analyzed to implementa PDCA cycle for environmental measures, such as environmental
management classification into the categories A, B, and C;
identifying environmental management issues; and sharing
instructive examples within the Group. GREEN 21 uses thedata registered in the system to calculate green points (GPs) for
evaluating the level of target achievements. Approximately 160
major sites classified as category A aggregate and analyze data
biannually on such key items as energy, water, and waste materials.

Achievements in Fiscal 2020
In fiscal 2020, data from about 1,000 business sites in
63 countries, including factories, research laboratories,
and offices, was registered in the system to estimate
the environmental load of the entire Hitachi Group.

Hitachi Sustainability Report 2021

036

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
Environmental Governance
GovernanceSocialAchieving a Decarbonized Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Chemical Substance Management System
To collect and manage data on chemical substances in materials, parts, and products fromour suppliers, Hitachi operates A Gree’Net, a green procurement system compatible with the
chemSHERPA*¹ format, to grasp what chemical substances are used in our products—fromdesign and development, procurement, and production to quality assurance and shipping—andto respond to legal and regulatory frameworks at shipping destinations.
To properly manage chemical substances used in our business operations, we haveintroduced a database for chemical substance management called CEGNET, which keeps trackof the latest laws and regulations and our own voluntary regulations and supports searches for
new substance risks. The system also collects and aggregates data on the amount of chemical
substances handled, emitted, and transferred in our operations, helping to reduce the volumeof chemicals that we handle and emit to the environment.

Achievements in Fiscal 2020
Approximately 1.33 million parts and products with chemical substances are registered in
A Gree’Net as of March 31, 2021. This is around 10,000 less than the previous fiscal year
due to a decrease in the number of Hitachi Group companies as a result of changes in ourbusiness portfolios.
We held 14 briefings via online meeting on regulatory revision trends andchemSHERPA tools, and gave instructions on how to use A Gree’Net to suppliers using
the system at Omika Works, Hitachi IE Systems, the Naka area of Hitachi High-Tech, andthe Kasado area of Hitachi High-Tech, and Hitachi High-Tech Science between October
2020 and March 2021. The briefings were attended by 916 people and helped to deepen
understanding of regulatory revision trends, these tools, and this system.

*1 chemSHERPA: A shared transmission scheme throughout the supply chain to ensure 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
dirctive RoHS directive (EU rules restricting the use of hazardous substances in electrical and electronic equipment).

Management of Chemical Substances in Products

Survey/register

Suppliers

Green Procurement System(A Gree'Net)
Registration database
Manage designated chemical
substances in products by theirmaterials and parts

Environmental information

Management of Chemical Substances in Business Operations

Disclosure requirements/
information transfer

Chemical Substance Management System (CEGNET)
Regulatory/
voluntary control information

Chemical data

Customer/society
Environmental information

Aggregated database
Manage total amounts ofdesignated chemical substances byproduct and businessNew chemicalrisk searches

Network

Registration andaggregation of data on
amounts handled,emitted, and transferred

Requests/
Data confirmation

Hitachi Group business sites

Hitachi Group business sites

Hitachi Sustainability Report 2021

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Contents
Executive
ExecutiveSummary
Summary

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Reducing the Environmental Burden Through“Eco-Factories & Offices Select” Certification

Environmental

Environmental
Environmental Governance
GovernanceSocialAchieving a Decarbonized Society

Activities

Hitachi has implemented an “Eco-Factories & Offices Select”
certification program for business sites that promote activities
demonstrating a high level of environmental consciousness
and produce notable results in that area. This helps raise
the environmental awareness of employees and promotes
environmentally conscious activities at our business sites.
Based on certification criteria that were developed forour manufacturing (factory) and nonmanufacturing (office)divisions globally, we certify factories that actively engage
in improvements to achieve efficient production and officesthat have been environmentally designed. Superior policies
from certified factories and offices are shared with the entire
Group, with other locations encouraged to implement themas well. To maintain and raise the level of environmental
awareness through Eco-Factories & Offices Select, certified
factories and offices are re-evaluated every fiscal year, andAchievements in Fiscal 2020
In fiscal 2020, of our approximately 1,000 facilities, 13 were
newly certified, and 57 had their certifications renewed.
The total number of certified factories and offices was 70.

Environmental Education for Employees
Employee Engagement

Activities

Hitachi believes that promoting greater environmental
awareness and understanding among employees isessential to efforts to energize its environmental activities.
Toward that end, we offer general education using e-learning
for all Group employees, from new hires to executive
officers. We also provide once a year specialized HitachiGroup training on environmental risks and complianceTargetGREEN 21 evaluation system, and (2) at least one of the following criteria:

Eco-Factories & Offices

Factories and Offices

Eco-Office SelectHigh-efficiency lighting
Renewable energy use
Energy savings
Improved office building
environmental performance

Facilities that have met their annual targets for each fiscal year under the
GREEN21 evaluation system

Achieving a Harmonized Society with Nature

Environmental Datawith environment-related laws and regulations for workinglevel employees in charge of environmental management
and internal environmental auditors. Particularly in China,
where we have more than 20 category A sites, we provide
training on compliance with the country’s increasingly strict
environmental laws and regulations.

In fiscal 2020, we created the new e-learning
document Introduction to Sustainability for general
education with a view to sustainability in line with the2021 Mid-term Management Plan. It was rolled out
globally in July 2020. Hitachi Group training on recent
amendments to laws and operational procedures
was held in Japan and China in November and
September. An environmental management training
program to reduce environmental risks and raise theknowledge of working-level employees was held in
Shanghai, China, in September.

Environmental Education

Facilities that have met (1) their annual targets for each fiscal year under the

Eco-Factories &Offices SelectAssurance

Achievements in Fiscal 2020

Eco-Factories & Offices Select Certification Criteria

Eco-Factory SelectEnergy efficiency
Renewable energy use
High-efficiency lighting
Recycling of waste and otherresources
Efficient water recycling
Reductions in chemical
substance emissions

GovernanceAchieving a Resource Efficient Society

only those that meet the evaluation requirements have theircertification renewed.

General education

SystemManagement

Introductory

Beginning

Intermediate

Advanced

Introductory training for new employeesAllemployees

Online e-learning: Eco-Mind education(General topics: Global environmental issues, environmental law, etc.)

Online e-learning: Eco-Mind education(Hitachi Group topics: Environmental policy, Environmental Action Plan, etc.)

Basic environmental management course for working-level employees

Specialized education

Environmental
Environmental

Introduction

Workinglevel
employees(Management of waste, air/water quality, and hazardous materials;
development and operation of management systems; etc.)

Education for Eco-Factories
Eco-Product development training
Risk communicator training

Internal
environmental
auditors

ISO 14001 auditor brush-up training
ISO 14001 auditor
certification training

Hitachi Sustainability Report 2021

ISO 14001 senior auditor
certification training

038

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental Education in Fiscal 2020
Contents of training
e-learning material:
Introduction to
Sustainability

Hitachi Group training
on recent amendments
to laws and operational
procedures as well asbasic environmental
management

TargetEnvironmental

Environmental
Environmental Governance
GovernanceAchieving a Decarbonized Society

SocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Environmental Compliance
Number ofparticipants

All employees in the
Hitachi Group

133,143
peopleEmployees working
in air, water
quality, and waste
management

Japan: 307
people from 36
companies
China: 52
people from 37
companies

Environmental
management training
program to reduce
environmental risks in
China and raise theknowledge of workinglevel employees

Working-level
employees

45 people from34 companies

Training for new
employees

New employees in
the China HitachiGroup

35 people from11 companies

Activities

In order to better ensure compliance with the laws andregulations of each country and region and minimize
environmental risks, Hitachi sets and monitors compliancewith voluntary management criteria that are more stringent
than regulatory requirements. If we find a violation or receive
a complaint, we take steps to enhance environmental risk
management by sharing the causes and countermeasuresthroughout the Group and to prevent occurrences of similar
incidents. As part of our measures to address the pollutionof soil and groundwater, we are examining the soil and water
for any contamination at business sites where hazardous
chemical substances are being or were once used. If
contamination is found, we will conduct cleaning andmonitoring activities until decontamination is complete.

Achievements in Fiscal 2020
In fiscal 2020, we continued designating 15 businesssites that committed environmental violations in thepast three years as high-risk business sites. The
relevant business units and Group companies beganproviding guidance to these sites to strengthen theircompliance activities. Through enhanced guidance
to these high-risk business sites, compliancemanagement has improved outside Japan. However,our business activities were strongly affected by
COVID-19, and the number of relevant legal andregulatory violations increased compared to theprevious year due to delays in notifications, contract
renewals, and poor maintenance.

Implementation Status of Internal Environmental Audits
Implementing
divisionTargetFrequency

Corporate divisionof Hitachi, Ltd.
(Sustainability
Promotion Division)

Business units,
headquarters of Group
companies, and businesssites classified as category
A in our environmental
management classification

Usually
every threeyears

Major business sites
and subsidiaries ofbusiness units and Group
companies*¹

Usually
every threeyears

Sites of business units andGroup companies outside
Japan that are classified
as category A in ourenvironmental managementclassification*²

Usually
every threeyears

Divisions within business
sites

Usually
every threeyears

Corporate divisionsof business
units and Group
companies(environment
divisions)

ISO 14001-certified
sites (audit teams)*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.

Number of Regulatory Violations and Complaints (Hitachi Group)
20

16
15

4

5

10

6

0

4

2
1
2
1

5

2016

13

3

13

12

3

5

2

1

4

4

1
3

2017

2018

3
1

10

2019

Complaints

4

5

2020

Regulatory
violations(FY)■ Water quality ■ Air quality ■ Waste matter■ Other (equipment registration, etc.) ■ Complaints

Hitachi Sustainability Report 2021

039

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialExecutive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Achieving a Decarbonized Society
Efforts to Achieve a Decarbonized Society
Hitachi has established a target to achieve carbon neutrality
throughout its value chain by fiscal 2050 and reduce CO2ApproachRatio of CO2 Emissions at Each Stage of Hitachi Value Chain in Fiscal 2020

83.2%

emissions by 50% by fiscal 2030 (compared to fiscal 2010) in the
Hitachi Environmental Innovation 2050 long-term environmental
targets in order to help build a decarbonized society.
The value chain for our products and services
encompasses all stages from the procurement of raw
materials and parts to production, transportation, use,
disposal, and recycling. We have accelerated the paceby setting the target of achieving carbon neutrality at ourbusiness sites (factories and offices), which covers the
production stage of the value chain, by fiscal 2030.
The majority of our value-chain emissions result fromthe use of our products and services after they are sold, so
reducing these emissions will be crucial to reducing CO2

Procurement of Raw
Materials and Parts

Production

Transport

9.1%

4.6%

0.1%

Use

Waste Disposal/
Recycling

0.7%

Others (Capital
goods, etc.)

2.3%* Percentages may fluctuate due to changes in our business portfolios

emissions throughout the value chain.
CO2 emissions from the use of sold products andservices are greatly influenced by changes in product sales
and business portfolios. We have established an indicatorfor providing products and services that produce less CO2from among products and services offering equivalent value,
and, recognizing the importance of this matter, have set andcontinue to manage reduction goals for our main products andservices on the basis of CO2 emissions per unit to reduce grossCO2 emissions. Specifically, by fiscal 2030, we aim to reduce
CO2 emissions per unit by 50% for products and services
at the usage stage and contribute to reducing global CO2
emissions through energy systems that do not emit CO2 at
the operational stage and expanding our new decarbonization
business using digital technologies such as OT and IT.
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Contents
Environmental
Environmental

Introduction

Management

Environmental

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
SocietySocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Efforts to Reduce CO2 Emissions During the Use of Products and Services
Approach

To reduce CO2 emissions from the use of our products andservices, which make up the largest proportion of emissions
in our value chain, we have established target reduction rates
of CO2 emissions per unit from products and services while inuse. These rates are based on fiscal 2010. Given the uniquequalities of the wide range of businesses we engage in, for eachproduct or service subject to this initiative, we calculate thereduction rate of CO2 emissions per unit with CO2 emissions
as the numerator and function size* as the denominator, and(1) Energy-saving feature enhancements
Set a reduction rate of CO2 emissions per unit (comparedto fiscal 2010) based on efficiency enhancements suchas energy-saving feature enhancement in products andservices. Every year, calculate reductions in CO2 emissions
considering the production volume of the relevant year.
(2) Reduction through new systems and solutions based

work toward total elimination of CO2 emissions.

on technological innovation
Calculate avoided emissions as reductions in CO2 emissions

We also have high expectations for specific long-term
CO2 reduction countermeasures such as sales of renewable

due to the dissemination of new systems and solutions that
emit less CO2 while providing equivalent value to existingenergy systems with zero emissions while in use and the useof technological innovation to replace existing products orservices with new versions that provide the same value but
emit less CO2 while in use.

products, services, and solutions.

1

The Guidelines on Calculating CO2 Emission Reductionsfor Hitachi Group Products and Services*2 specify thefollowing three methods for calculating different types of
CO2 emission reductions. Figures considered reductions for
products and services while in use under the GHG Protocol,
a standard for calculation and reporting of GHG emission,
are calculated using method (1). Methods (2) and (3) are foravoided emissions.

(3) Reduction through the deployment of non-fossil energy
systems
Calculate avoided emissions as reductions in CO2 emissions
due to the introduction of renewable and other non-fossil
energy systems, as compared to existing grid-supplied
electricity (using the average emissions factor of the baseyear, fiscal 2010).
*1 Major functions of products correlated with CO2 emissions, such as their
output and volume*2 The Guidelines are based on various standards, including the Guidance on
Quantifying Greenhouse Gas Emission Reductions from the Baseline forElectrical and Electronic Products and Systems (IEC TR62726) issued by theInternational Electro-technical Commission (IEC), and calculation methods
established by governments or industrial associations.

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialExecutive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

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

Examples of Decarbonization Buisness: A Hitachi Focus

Activities

To help achieve a decarbonized society as set out in Hitachi’s
Environmental Vision, we are pursuing a decarbonization
business that contributes to the reduction of CO2 emissions,leveraging collaborative creation with our partners. This
includes a business that provides products and services withenhanced energy-saving features, a business facilitating the
introduction of renewable energy, and a business that offers
solutions to improve efficiency and reduce CO2 emissions
through digitalization, such as by using our Lumada
platform. We will expand the decarbonization business by
supplying solutions in the six business areas of IT, energy,
industry, mobility, smart life, and automotive, thereby helping
the world to mitigate and adapt to climate change.
In working to achieve a decarbonized society, we will
support the electrification of social infrastructure with our OT× IT × Products approach. In seeking to realize an energy
transformation, we will work to expand the transmission/
distribution of renewable energy-based electric power using
high-voltage direct current (HVDC) technology. Further, as
we look to support carbon-free mobility, we will work toprovide automobile EV systems and to promote hybridization(with power storage and hydrogen technologies) in therailway business. Also, by working to make energy utilizing
digital technologies more visible, we will strive to promote
the broader adoption of renewable energy and the efficientuse of energy.

IT● Finance and public-oriented solutions· Promoting digital solutions● Data centers· Developing smart data centers● Servers/storage· Enhancing energy-saving features ofservers and storage

Mobility● Railways· Enhancing energy-saving features ofrolling stock· Developing smart operating systems· Enhancing maintenance service efficiency
through rolling stock monitoring● Elevators· Enhancing energy-saving featuresof elevators and escalators throughreplacement· Enhancing energy efficiency throughtotal building solutions

EnergyIndustry● Power grid solutions· Enhancing efficiency of powertransmission/distribution● Energy management· Advancing smart energy management
to reduce peak electricity demand● Power generation· Promoting power generation systems
using wind and other non-fossil
energy sources● Smart logistics· Improving energy-saving features
through fully IT-enhanced logistics● Factory automation· Enhancing energy efficiency throughshorter lead times● Water business· Enhancing efficiency of water andsewage systems● Industrial products· Enhancing efficiency of industrial
products

Smart Life
● 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

Automotive
business● Vehicle electrification· Promoting electrification throughelectric powertrain systems● AD/ADS (Automatic Driving,
Advanced Driver-Assistance Systems)· Reducing CO2 by improving
operational efficiency through AD/
ADAS solutions

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Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialExecutive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

Hitachi ABB Power Grids'
Decarbonization Business Initiatives
Hitachi ABB Power Grids, which became a memberof the Hitachi Group in July 2020, is accelerating thetransition toward a carbon-neutral energy future, together
with its customers and partners. With pioneering
technologies, including high voltage direct current (HVDC)
systems, it will contribute to the efficient transmission
and large-scale integration of renewable energy.
In fiscal 2020, Hitachi ABB Power Grids received
an order for HVDC Light®*¹ from the Dogger Bank Wind
Farm in the United Kingdom, the world’s largest offshore
wind farm. This project will enable efficient powertransmission and large-scale integration of renewableenergy, and will support the United Kingdom's efforts to
expand the use of offshore wind on its journey toward
net zero. HVDC Light is also the facilitating technology
in the NordLink project which enables the exchange of
renewable energy between Norway and Germany. In
this project, the world's longest*² HVDC voltage source
converter cable and Europe’s longest*² HVDC power
grid are interconnected. Hitachi ABB Power Grids
designed, engineered, and supplied the two converter
stations, including control and protection systems at thecore of the project, located in Southern Norway andNorthern Germany.

Achieving a Resource Efficient Society

Achieving CO2 Emission Reductions During theUse of Products and Services
Goals

GRI 305-4/305-5

Activities

Hitachi set a target for fiscal 2020 of a 20% reduction in CO2emissions per unit from products and services compared tothe base year of fiscal 2010 and achieved a 20% reduction.
This was driven by an increase in sales of high energy-saving
products, including industrial equipment and equipmentused for social infrastructure.
Environmental Action Plan for 2021 Management Values
Reduction in CO2 Emissions per Unit (Hitachi Group)
FY 2010(base year)

FY 2020

CO2 emissions
from use of products

100%

98
80.6%%

Function size*1

Function size

CO2 emissions
from use of products

Reduction in CO2
FromEmissions per Unit base year
(Hitachi Group)

20% reduction

FY 2020 reduction target rate: 20%*1 A high-voltage DC power transmission system that is highly efficient fortransmitting large amounts of electricity over long distances, integrationof renewables and interconnecting grids, opening up for new sustainabletransmission solutions.
*2 As of August 2021, based on Hitachi ABB Power Grids’ research.

Governance*1 Major functions of products correlated with CO2 emissions, such as their
output and volume

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Improving Environmental Performance ofProducts and Services Through Environmentally
Conscious Design Assessments
SystemActivities

We conduct independently developed Environmentally Conscious
Design Assessments for all products and services involving adesign process to steadily improve environmental performancethroughout the Group. We identify 30 environmental impact
items that may cause climate change, resource depletion, andecosystem degradation across the entire life cycle of products
and services, assess the level of environmental burden reduction
across our business activities in multifaceted ways, and strive toachieve further reductions.

Initiatives for Improving Environmental
Performance of Products and Services● Promoting environmentally conscious processes: In
accordance with the IEC 62430*¹ criteria, promote
environmentally conscious processes in designingand developing products and services including bymeeting environmental regulatory requirements andascertaining the environment-related needs of our
stakeholders within our existing management system.
● Implementing Life Cycle Assessments (LCAs): For ourmain, priority products, quantitatively evaluate their global
environmental burden in such areas as the consumptionof mineral resources, fossil fuels, and water resources, aswell as their impact on climate change and air pollution,
disclose the results to our stakeholders, and utilize themin improving the design of next-generation products.
*1 The standard developed by the International Electrotechnical Comission (IEC)
concerning environmentally conscious design for electrical and electronic products.

Case studies of Reducing CO2 Emissions Throughout the Value Chain

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Introduction

Management

Environmental

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
SocietySocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Contributing to a Decarbonized Society at Business Sites (Factories and Offices)
CO2 Emission Reductions at Business Sites (Factories and Offices) and Hitachi Carbon Neutrality 2030

SystemPolicyAs part of our long-term environmental targets called Hitachi
Environmental Innovation 2050 we have established andpromoted the goal of realizing carbon neutrality by fiscal
2030 at all business sites (factories and offices). We call thisgoal “Hitachi Carbon Neutrality 2030.”
Under Hitachi Carbon Neutrality 2030, we aim to becarbon neutral by effectively reducing CO2 emissions 100%

The Hitachi Internal Carbon Pricing Framework

 ajor Initiatives for Reducing CO2 Emissions at BusinessM
Sites (Factories and Offices)

Factories

Improve equipment efficiency by introducing
and upgrading to high-efficiency equipment
Improve production efficiency and energy use
efficiency during the production through the use of
the Lumada 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

Offices

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 andoffices

Install renewable energy systems
Use electricity from renewable sources
Adopt the non-fossil fuel energy certificate*1 system
Introduce off-balance-sheet solar power
generation for self-consumption
Promote investment in carbon-reduction
equipment through adoption of the HitachiInternal Carbon Pricing (HICP) frameworkby fiscal 2030 compared to fiscal 2010 instead of the original
50% reduction target.
The following initiatives will help us achieve the target.

*1 These credits are for electricity that has been certified as having been
produced from renewable energy sources. Purchasers of such credits canoffset their conventional energy use instead of implementing their own
reduction measures.

We believe that the technologies and experience wehave developed through our efforts to achieve our carbon
neutrality targets will help us offer business proposals that
accurately respond to our customers’ decarbonization needs
and will greatly expand our new business opportunities.

To promote CO2 reduction at our business sites (factories
and offices), in fiscal 2019 we started operating the HitachiInternal Carbon Pricing*1 (HICP) framework which provides
sites with incentives to invest in necessary new equipment.
The HICP framework is an internal system that aims to achieve
CO2 reductions effectively. It helps visualize CO2 reductions frominvestment in equipment at factories and offices and encourages
investment in new equipment that drives decarbonization throughenergy-saving and other measures as an extension of theestablished decision-making process on investment.
Specifically, with reference to emissions trading and carbon
taxes globally, we establish company-internal carbon prices,convert into monetary value the effect of CO2 reductions due
to investment in equipment that contributes to decarbonization,
add this to the value of energy reduction effects, and use theresult to evaluate the effect of our investment. By applying
incentives like these, we aim to further expand our investment
in equipment that contributes to decarbonization.
As the climate change issue deepens, we anticipate risks
like increased burdens from carbon taxes and new emissions
trading frameworks to emerge. By incorporating those risks into
our equipment investment decisions, we can not only makeinvestments in equipment that contributes to decarbonizationa higher priority, but also minimize the future risks of climatechange and make ourselves more resilient. The introduction of
the HICP framework is a key part of this process.
*1 Internal carbon pricing: An in-house tool to assess in monetary terms
the amount of carbon generated or reduced in order to voluntarily makeinvestment decisions and conduct risk management.

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Contents

Management

Environmental

SocialExecutive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

Achievements in Fiscal 2020
As a result of Hitachi’s creation and implementation of
the HICP framework and our determination to reduce
CO2 emissions, we have made additional investmentsin equipment for projects that had not originallyreceived sufficient investment due to their low levels
of investment efficiency.
In fiscal 2020, we invested in 22 cases ofenergy-saving equipment with a total investment of¥250 million. These investments contributed to anannual reduction of 447 tons of CO2 emissions. The
annual amount of CO2 emission reductions fromour business sites improved 0.8% compared to theprevious fiscal year.

CO2
reductioneffects

CO2
Reduction effects(in monetary
terms)

EnergyreductioneffectEnergyreductioneffectGovernanceAchieving a Resource Efficient Society

Hitachi Internal Carbon Pricing (HICP) Framework
Investment effect in monetary terms

Environmental
Environmental

Introduction

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Actions and Achievements
Activities

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

At Hitachi, the achievement of environmental targets forindividual business sites (factories and offices) set by theEnvironmental Action Plan for 2021 is measured by CO2emissions per unit. Because we conduct business in various
sectors, the KPI of CO2 emissions per unit for each businesssite is calculated using the site’s CO2 emissions as thenumerator and its activity amount*1 as the denominator.
In fiscal 2020, the reduction rate of CO2 emissions per

Before introducing
HICP framework

After introducing
HICP framework

Set internal carbon prices based on future risks such as higher
carbon taxes and emissions trading
Convert effects of CO2 reductions from investment in equipmentthat contributes to decarbonization into monetary value

Evaluate the effect of investments by adding the monetary effectof CO2 reductions to the previously calculated monetary value ofthe effect of energy reductions through investments

Increase the priority of investments in equipment that contributeto decarbonization

Encourage investment in equipmentthat contributes to decarbonization

Renewable energy

High-efficiency equipment

unit was 1.4% against a target of 8% (compared to the baseyear of fiscal 2010). Part of the reason for not hitting thetarget was that decreased production caused by COVID-19
meant facilities were used less efficiently. There were also
some business divisions that could not achieve the expected
reductions in CO2 emissions per unit due to their failure topromptly respond to reductions in fixed power allocations
linked to production.
We report the total CO2 emissions from our entire
Group including CO2 emissions from power plants sellingelectricity. Total CO2 emissions in fiscal 2020 decreased byapproximately 1,078 kt-CO2*² compared to fiscal 2019. The
decrease in emissions was caused by removing materials
companies from the consolidated Hitachi Group, decreased
production due to COVID-19, lower emissions thanks toenergy saving efforts, and the use of renewable electricity.
*1 Values are closely related to CO2 emissions at each business site (for example,
production quantity, output, building floor space, and number of employees).
*2 The CO2 electrical power conversion factor for total CO2 emissions is market
based

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialExecutive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society(kt-CO2)

5,322

4,500

3,914 kt-CO2

98.6
98.6%%

CO2
emissions*1

Activity amount

38
10

5,433

58
16

Environmental Data

1,415

1,461

470

499

265

283

Hitachi is promoting the use of solar, wind, and other formsof renewable energy at its business sites. Going forward,
we will accelerate these efforts and aim to raise the share of
renewable energy in our total electricity consumption to 2%
by fiscal 2030.

4,973 5715

FY 2020

100%

Achieving a Harmonized Society with Nature（日立グループ：ファクトリー・オフィス・発電所）
Activities
6,000

CO2
emissions*1

Assurance

Introducing Renewable Energy

2(Hitachi Group’s factories, offices, and power plants)

CO2 emissions reduction rate per unit (Hitachi Group)
FY 2010(base year)

Achieving a Resource Efficient Society

CO Emissions
P46̲CO2
排出量の推移Environmental Action Plan for 2021 Management Values

Governance

4,374

1,286

83
30

1,167
540
236

3,000

3,296

572

56
18

1,003

264

3,365 kt-CO

2

2,377

2,392

Activity amount

360
185

2,285

1,500

2,030
1,448
732

CO2 emissions
From
reduction rate perunit at Business base year
reduction
Sites (Factories
FY 2020 reduction target rate: 20%
and Offices)

1.4%*1 CO2 emitted from the organization (Scope 1 and 2).
Notes: • As with the CO2 electrical power conversion factor in calculations of
CO2 emissions per unit, a unified factor of 0.530 kg-CO2 /kWh is applied
across the entire Hitachi Group.
• The Environmental Action Plan’s management values do not include
amounts for our power plants in fiscal 2010 (base year) or fiscal 2020.
Emissions, which are base for intensity are calculated according to thescope of environmental performance aggregation data of fiscal 2020.

0

2016

739

2017

554

2018

226

228

2019

2020

(FY)

Achievements in Fiscal 2020
Renewable electricity generation across the HitachiGroup was 22,000MWh in fiscal 2020 which is anincrease of 20% compared to fiscal 2019. Renewableenergy generated by equipment installed at businesssites (factories and offices) accounted for 0.5% of theelectricity consumed by the entire Hitachi Group.

■ Power plants*¹ ■ Japan ■ China ■ ASEAN, India, and other Asian regions■ North America ■ Europe■ Other regions*1 Emissions by power plants selling electricity in Japan were retroactively added
to total CO2 emissions from fiscal 2017.
Notes: • Regarding CO2 electrical power conversion factors: in Japan (including
power plants), adjusted conversion factors for individual powerbusinesses based on the Act on Promotion of Global WarmingCountermeasures are used; outside of japan, the latest values foreach fiscal year supplied by the International Energy Agency (IEA) as
conversion factors for individual countries are used; outside of Japan,
the latest values for each fiscal year supplied by the International Energy
Agency (IEA) and by power supply companies as conversion factors forindividual countries are used.
 nergy-related CO2 emissions in fiscal 2020 were 1,202 kt-CO2 (Scope•E1) and 2,094 kt-CO2 (Scope 2, market-based).
• Regional classifications were changed in fiscal 2020, and the past data
was recalculated based on this.

Introducing Renewable Electricity
Activities

Hitachi is adopting renewable electricity as a way to reduce
CO2 emissions and achieve carbon neutrality. As part ofthis, we are also offsetting any CO2 emissions that cannot
be reduced through energy saving and renewable electricity
generation equipment. Going forward, we plan to reduce theamount of renewable electricity acquired by promoting evengreater energy-saving. Renewable electricity used will bebased on the standards set by the GHG Protocol.

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Introduction

Management

Environmental

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

Achievements in Fiscal 2020
The amount of renewable electricity used by Hitachi
factories and offices in fiscal 2020 was 116,211MWh;
this is three times the level in fiscal 2019 and 2.6% of
Hitachi’s total power consumption.
At nine sites in the United States, Europe, andJapan all the electricity used came from renewablesources. Moreover, the three sites of the Hitachi
High-Tech Group have achieved carbon neutrality
by adopting renewable electricity and promoting
energy-saving.

Business Sites Fully Powered by Renewable Electricity in Fiscal 2020
Hitachi Computer
Products(America)

1 site12,056 MWh(wind power)

Hitachi Rail Italy

3 sites

27,813 MWh(hydroelectric power, etc.)

Hitachi Astemo(UK and Germany)

2 sites

3,635 MWh(hydroelectric power, etc.)

Hitachi High-TechGroup

3 sites

11,809 MWh(hydroelectric and wind power)SocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Reducing Transportation Energy Consumption
Activities

As part of our efforts to reduce energy output duringtransportation as well as at our business sites (factories
and offices), we have established targets for the reductionof transportation energy use per unit for each business unit
and Group company in Japan. Outside Japan these targets
are voluntary. Our business sites are promoting a modal
shift to highly efficient transportation methods by improving
truck loading ratios and taking other measures to reducetransportation energy consumption and switching to the useof eco-cars for in-house operations. Considering a modal shift
from truck to rail transportation a high priority, we are working
toward “Eco Rail Mark company” and “Eco Rail certified
product” certifications from the Ministry of Land, Infrastructure,
Transport, and Tourism. Transitioning from truck to railway
transportation is expected to reduce CO2 emissions per unit
to one-thirteenth of its current level, and we plan to continue
expanding our use of railways for long-distance transportation.
About the Eco Rail Mark
Case studies of Energy Savings in Eco-Factories & Offices

Eco Rail Mark Initiatives
Company
Hitachi, Ltd.
Hitachi-Omron Terminal
Solutions
Hitachi Industrial Equipment
Systems

Certification
Eco Rail Mark company*1
Eco Rail certified product*2
Eco Rail Mark company*1
Eco Rail certified product*2*1 A mark conferred on companies using
railways for more than 15% of freight landtransportation covering 500 km or more; for
15,000 tons or more in volume per year; orfor more than 15 million ton-kilometers involume × distance per year.
*2 A mark conferred on products using
railways for more than 30% of freight landtransportation covering 500 km or more interms of volume × distance.

Achievements in Fiscal 2020
In fiscal 2020, CO2 emissions from transportation
within Japan for the Hitachi Group were 68.9 ktCO2
which is 19.5 kt- CO2 less than the previous
fiscal year. To reduce CO2 emissions in fiscal 2020,
we focused on improving efficiency when loading
products for transportation while increasing the useof coordinated transportation. Furthermore, CO2
emissions dropped by more than 20% comparedto fiscal 2019 due to factors such as the removal ofmaterials companies from the consolidated HitachiGroup and smaller shipment volumes stemming fromdecreased production during the pandemic.

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Introduction

Management

Environmental

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
SocietySocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Climate-related Financial Information Disclosure (Based on TCFD Recommendations)
In June 2018, Hitachi announced its endorsement of therecommendations by the Financial Stability Board’s (FSB)
Task Force on Climate-related Financial Disclosures (TCFD).
The following contains key climate-related financial
information in line with the TCFD’s recommendations.

Governance
Structure

Hitachi sees climate change and other environmental issues
as important management issues.
The Board of Directors discusses the Group’s
sustainability strategy, including climate change measures,
as a key component of management strategy. Hitachi’slong-term environmental targets called Environmental
Innovation 2050 which include reducing CO2 emissions were
established in fiscal 2016. And in fiscal 2021, they werereviewed and approved again by the Board of Directors andshared with the public.
The Executive Sustainability Committee, chaired by
the executive chairman and CEO and staffed by heads ofcorporate divisions and business units, meets twice a year
to discuss and reach decisions on environment-related
policies and measures including those in response to
climate change, and it sets the stage for implementing thosemeasures. In addition, the Audit Committee of independent
directors conducts an audit of sustainability-related
operations once a year, and Hitachi executive officers reporton climate-related issues to the committee during the audit.
As for TCFD initiatives outside the company, in 2019a Hitachi executive officer participated in the TCFD Study

Group on Green Finance and Corporate Disclosures andhelped compile its report. The initiative was launched by
Japan’s Ministry of Economy, Trade, and Industry. Hitachi
also participates in an industry-government-academia
initiative called the TCFD Consortium—comprised by
164 companies and other organizations at the time of
inauguration—as a member of its Steering Committee
and contributed to the formulation of TCFD Guidance 2.0,
announced in July 2020.

GRI 102-12*1 A Representative Concentration Pathway (RCP) scenario under which, at theend of 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.
P030 The Environmental Vision and Hitachi Environmental Innovation 2050
P040 Efforts to Achieve a Decarbonized Society

Strategy
PolicyGRI 102-11/102-15/102-29/201-2

We are responding to climate change by fulfilling our
responsibilities as a global company by helping to achievea decarbonized society. Taking note of the total CO2
reductions required globally under the RCP 2.6*1 and RCP
8.5*² scenarios of the Fifth Assessment Report of theIntergovernmental Panel on Climate Change (IPCC), we
established long-term environmental targets called Hitachi
Environmental Innovation 2050 in fiscal 2016 under ourEnvironmental Vision. Moreover, in order to help limit the
global temperature rise to 1.5°C as recommended in the
IPCC Global Warming of 1.5°C report, in fiscal 2020 werevised our target to achieve carbon neutrality at Hitachi
factories and offices by fiscal 2030. And then in fiscal 2021
we revised our target again to achieve carbon neutrality in
our value chain by fiscal 2050. Our aim is to help create adecarbonized society by setting more ambitious targets torealize that goal.

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Introduction

Management

Environmental

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

Identification and Assessment of Climate-related
Risks and Opportunities
The Hitachi Group operates a broad array of businesses
around the world with each business having its own set of risks
and opportunities. We are responding to the impact of climatechange by assessing climate-related risks and opportunities inaccordance with TCFD classifications. We make sector-specificassessments of risks and opportunities for important businesssectors that have a relatively high likelihood of being affectedby climate change. Our assessments are also categorizedaccording to time span, namely short term, medium term, andlong term as defined below.
P159 Hitachi’s Corporate Governance Framework and Its Features

SocialGovernanceAchieving a Resource Efficient Society

Reason for adoption

Short
term

Over the next
three years
from fiscal 2019
to 2021

Corresponds to the three-year
management period covered by theEnvironmental Action Plan for 2021
established in line with the 2021
Mid-term Management Plan

Mediumterm

Through fiscal
2030

Time span of our fiscal 2030 longterm environmental targets

Environmental Data

As for climate-related business risks, we have followed the TCFD’s classification in considering: (1) risks related to the transition toa decarbonized economy in the 1.5°C scenario, and (2) risks related to the physical impacts of climate change in the 4°C scenario
which assumes that efforts to reduce global CO2 emissions have failed. Previously, we ascertained risks based on a 2°C scenario,
but after considering the importance of helping to realize a decarbonized society, we are now working with the 1.5°C scenario.
Hitachi has already set long-term environmental goals and has been promoting activities accordingly. Moreover, very few of ourbusinesses depend on fossil fuels. Therefore, switching to the 1.5°C scenario does not have a big impact on the potential climatechange-related risks and opportunities for Hitachi.
(1) Risks related to the transition to a decarbonized economy (applying mostly to the 1.5°C scenario)
Category

Major risksTime span

Main initiatives

Increased business costs from theintroduction of carbon taxes, fuel/energy
consumption taxes, emissions trading
systems, and other measures

Short to longterm

● Avoid or mitigate increases in business costs, such as

Technology

Loss of sales opportunities due to delays intechnology development for products andservices

Medium to longterm

● Contribute to reducing CO2 emissions by developing andMarket andreputation

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

Medium to longterm

● In light of growing market concerns about climate change

Policy and legal

P034 Framework for Promoting Environmental GovernanceTime span

Achieving a Harmonized Society with Nature

Climate-related Risks (Hitachi Group)

P011 Sustainability Strategy Promotion Structure ime Spans for Assessing Climate-related Risks andT
Opportunities

Assurancefrom carbon taxes, by further enhancing production andtransport efficiency and promoting the use of non- or lowcarbon energy sources● Promote energy-saving equipment by introducing HitachiInternal Carbon Pricing (HICP)
marketing innovative products and services that lead tothe achievement of long-term environmental targets andexpanding the decarbonization business● Promote the development of low-carbon products
by implementing Environmentally Conscious Design
Assessments when designing products and services

and investor expectations for companies to play more
active roles, we revised our long-term environmental targets
called Hitachi Environmental Innovation 2050 by setting thegoal of becoming carbon neutral by fiscal 2050 throughout
our entire value chain(2) Risks related to the physical impacts of climate change (4°C scenario)
Long
term

Up to fiscal
2050

Time span of our fiscal 2050 longterm environmental targets

Category

Major risksTime span

Main initiatives

Acute andchronic physicalrisks

Climate-related risks to business continuity
including increased severity of typhoons,floods, and droughts (acute risks), as wellas rising sea levels and chronic heat waves(chronic risks)

Short to long term

Taking into account 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 manufacturingsite will be strengthened in the future based on the resultsof a water risk assessment now being conducted

Hitachi Sustainability Report 2021

049

Contents
Environmental
Environmental

Introduction

Management

Environmental

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
SocietySocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Climate-related Opportunities (Hitachi Group)
CO2 emissions during our customers' use of our products and services account for the main total emissions in our value chain.
To achieve the CO2 reduction targets set forth in our long-term environmental targets and 2021 Mid-term Management Plan, it isessential that we reduce emissions during use. Developing and providing products and services that emit zero or very little CO2during 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 term and constitutes a major pillar of the Social Innovation Businessthat we are promoting as a management strategy.
Category

Products/services
and markets

Resilience

Major opportunities

Main initiatives

Increased corporate value and revenue
from expanded sales of products andservices with innovative technology that cancontribute to the mitigation and adaptationof climate change● Expand business areas that contribute to decarbonization.
● Promote decarbonized solutions and services through collaborative initiatives

Provision of solutions to address climaterelated natural disasters● Providing disaster prevention solutions such as high-performance firefightingwith customers.

● Focusing on the fields of energy, mobility, and industry, we are promoting

greater utilization of digital technology (Green by Digital) and developing
products that offer world-class efficiency.

command systems● Providing construction equipment that enables quicker recoveries fromdisasters

P042 Expanding the Decarbonization Business
P056 Hitachi’s Approach to Water Risks

Hitachi Sustainability Report 2021

050

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialExecutive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

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 examined the business impact of and responses to the 1.5°C and 4°C scenarios. Under the 1.5°C scenario, as projected by the IPCC’s RCP 2.6 climate model, we are anticipatinga 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 byfiscal 2050. Under the latter scenario, we focused on there being increased climate-induced natural disasters as a result of lax regulations as projected by the RCP 8.5 scenario.
In selecting the businesses that have a relatively high likelihood of being affected by climate change, we took many different factors into account and chose those with (1) relatively high CO2emissions from the use of products and services, (2) a relatively high need for fossil fuels during the use of products and services, and (3) high sales volume within the Group. The businesses weselected using these criteria were railway systems, power generation and power grids, IT systems, industrial equipment, automotive systems, and construction machinery.
Our assessment of the major climate-related risks and opportunities for these 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
Note: This table is divided into the following three pages.
Target businesses

The businessenvironment
and majorrisks andopportunities
under the1.5°C scenario

Power generation andpower grids

IT systems

Business environment Global demand
for transport systems that emit
less CO2 per distance covered willgrow with tighter CO2 emission
regulations in each country andregion.

Business environment Global
demand for electricity generated
from renewable energy, nuclear
power, and other non-fossil
sources will grow with tighter
CO2 emission regulations ineach country and region. Power
networks will increasingly
accommodate natural energy
produced through distributed
generation.

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

Risks Competitiveness will
decline if there are delays inthe development of innovativeemission-reducing technologies
including those to improve theefficiency of railway services
through digital utilization suchas dynamic headway (flexible
operations in response topassenger demand) and new
mobility services like MaaS.

Risks Delays in theconstruction of power networks
that would enable the mass
introduction of renewable energy
with large output fluctuations.

Risks Competitiveness will decline
if there is a lack of technological andhuman resource development to provide
energy-saving and highly efficient IT
solutions and also if decarbonizedmeasures for energy-intensive data
centers are delayed.

Opportunities Demand will growfor railways, which emit less CO2
per distance covered. There will
be a shift to energy-saving railcars
from conventional models, and theefficiency of railway services will be
improved through digital utilization.
Data usage will also boost demand
for new mobility services.

Opportunities Business
opportunities will grow with risingdemand for renewable energy—
the key to a decarbonized
future—and with the provisionof grid solutions, digital service
solutions, and energy platforms
that can accommodate thediversification of energy
suppliers.

Opportunities Demand will grow forenergy-saving and high-efficiency
information systems that contributeto zero-emissions. There will also be
increased demand for platforms tooffer such environment-related financial
services as investments and loans for
decarbonization businesses and green
bond issues.

Railway systems

Industrial equipment
Business environment

Global demand forenergy-saving industrial
equipment will grow withtighter CO2 emission
regulations in eachcountry and region.

Risks

Competitiveness will
decline if there are delaysin the development ofhigh-efficiency, low-loss
products.

Opportunities Utilizationof IoT, digitalization, andconnected systems
to develop innovative
products and solutions
that contribute to CO2emission reductions
without relying on theenergy-saving featuresof individual products.

Automotive systems

Construction machinery

Business environment Electric vehicles
will rapidly spread with tighter laws
and regulations on fuel efficiency
and environmental standards, andincreases in fossil fuel prices. Markets
for alternative non-fossil technologies
like hydrogen and biofuel vehicles
will expand. The number of countries
and regions with near zero sales ofinternal combustion engine vehicles will
increase.

Business environment Demand for electric and no
carbon-fuel construction machinery will grow withtighter laws and regulations on the use of fossil
fuels. Environmental regulations for items otherthan CO2 emissions (air and noise pollution, etc.)
will grow tighter in urban areas.

Risks Delay transition to a new
business environment of rapidly
declining sales of internal combustion
engine vehicles.

Risks Higher development costs, lost markets
due to slow response, and higher costs in building
customer support for the use of electric and low/
no carbon fuel machinery. Loss of customers dueto the short range of electric machinery and lackof fueling and power-storage infrastructure for no
carbon fuel machinery. Declining demand due tothe divestments of major coal companies, andpressure on profitability due to the continued highcost of parts and equipment resulting from a lag in
the adoption of no carbon fuel machinery.

Opportunities Expanding market forelectric, hydrogen, and biofuel vehicles
to replace internal combustion engine
vehicles.

Opportunities Sales of electric machinery,a broader diversity of fuel types, and digitalapplications will increase as companies turnto new technologies and adapt to new site
environments.

Hitachi Sustainability Report 2021

051

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialExecutive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

Target businesses

Railway systems

Power generation andpower grids

Achieving a Resource Efficient Society

and majorrisks andopportunities
under the 4°C
scenario

Nonenvironmental
market factors(neither the
1.5°C nor 4°C
scenario)

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

IT systems

Industrial equipment

Automotive systems

Construction machinery

Business environment Demand forelectric-powered transport will
gradually increase even without
tighter energy regulations. Damage
from typhoons, floods, and othernatural disasters caused by climatechange will rise sharply.

Business environment The costcompetitiveness of non-fossil energy
will increase, and demand forrenewable, nuclear, and other nonfossil energy will increase as the
expansion of energy consumption
pushes up the price of fossil fuels.
Natural disasters caused by climatechange will rise sharply.

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

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

Business environment Fuel efficiency
laws and regulations will remain lax
globally, and internal combustion
engine vehicles will remain a major
mode of transport. The modal shift will
be slow, as conventional automobiles
and motorcycles will remain
predominant. Typhoons, floods, andother natural disasters caused byclimate change will rise sharply.

Business environment Natural disasters
caused by climate change willrise sharply, boosting demandfor construction machinery tosupport speedy and safe disastercountermeasures.

Risks The high frequency ofnatural disasters will exacerbate
damage to production facilities,
worsen working environments,
and disrupt supply chains leading
to delays in deliveries and the
procurement of parts.

Risks The high frequency of natural
disasters will increase damage topower generation and transmission/
distribution facilities, hamper efforts
to restore power transmission/
distribution, and disrupt supply chainsleading to delays in deliveries and the
procurement of parts.

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

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

Risks Natural disasters will
exacerbate damage to production
facilities and disrupt supply chainsleading to delays in deliveries and the
procurement of parts. A breakdown
in one link of the supply chain will
have an increasing impact on overall
production.

Risks Major wind, snow, andflooding events will lead to factorydamage and production setbacks
due to highway closures and supply
chain disruptions. More regularand extreme heat days will cause adeterioration in working environments
and decrease productivity.

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

Opportunities Energy demand willgrow as warmer weather leads toincreased use of air conditioning.
Demand will increase for disasterresilient power generationand transmission/distribution
technologies.

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

Opportunities Efforts toaccommodate IoT products will leadto higher demand for remote control
and remote maintenance during
natural disasters.

Opportunities Demand will growfor technologies to enhance theefficiency of internal combustion
engines.

Opportunities Demand of
construction machinery that can
assist natural disaster measures willgrow.

● Economic growth will lead to● Economic growth, urbanization,● Further digitization globally will

● Digitalization, infrastructure● Economic growth, urbanization,● Worker shortages will be

The businessenvironment

Governanceurbanization and population
growth around the world which will
drive the railway business globallyas an efficient form of public
transport for large numbers ofpassengers regardless of climate
conditions. Market size in Japan
will remain flat, but the Asianmarket overall will see substantial
growth.
● Long-distance transport will
decline going forward as theglobal pandemic restricts travel
and encourages remote work.
Although the decline in demand
will not be as severe as that for airtransport.
● Competition will grow asmajor railway manufacturers invarious countries will expand
their businesses to meet global
demand.

and population growth will push
up demand for energy, especiallyelectricity, mainly in developing
countries.
● Energy supply and demand will
diversify due to various factors,
such as CO2 emissions, theenvironmental burden, economic
performance, safety, and supply
stability.
● Digital technology will be further
applied to enhance the stability
and efficiency of the power supply.

exponentially increase the volumeof data circulated, accumulated,
and analyzed. Experience withthe global pandemic will prompt a
shift to remote, noncontact, andonline formats, both in our life andwork and will boost demand for
digital solutions that facilitate sucha shift.
● New services and businesses
utilizing big data, IoT, AI, and otherdigital technology will expand
rapidly.

renewal, population decline, andworker shortages will expand theautomation market in industrial
countries.
● As the global pandemic forces
people to stay at or work from
home, demand will grow for
factory automation enabling ahandful of workers to operate afactory.
● The industrial market in emerging
economies will grow due to a risein production plants.

population growth, andinfrastructure development likeroad construction will expand theglobal market for automobiles
and motorcycles as a flexible andpersonal means of transport.
● The global pandemic may
temporarily dampen passenger
vehicle sales due to restrictions
on people’s movements, butcommercial vehicle sales appear
to be rising as the need for thedelivery of goods increases.
● Businesses that offer greater
safety, security, and comfort, suchas those developing autonomous
driving and advanced safety
devices, will become increasingly
important.

addressed through further laborsavings, automation, remote work,
robotic solutions, and greater
development of safety-related
products and solutions.
● There will be greater developmentof products, services, andsolutions to meet the needs fordeveloping smart infrastructurethat can cope with accelerated
urbanization and aging
infrastructure.
● Emerging economies withexpanding markets represent
both increased sale opportunities
and intensifying competition withemerging manufacturers.
● There is a need for stronger total
supply chain management toaccommodate shifting demandand for enhanced resilience of thebusiness portfolio.

Hitachi Sustainability Report 2021

052

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialExecutive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

Target businesses

Response to
future businessrisks (business
opportunities)

Financialinformation(sales volumeof each target
sector)GovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Railway systems

Power generation andpower grids

IT systems

Industrial equipment

Automotive systems

Construction machinery

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

Response to business risks
under the 1.5°C scenario

Response to business risks
under the 1.5°C scenario● Continue to strengthen the railway● Continue to enhance the response● Promote R&D of electrification● Differentiate by expanding thebusiness as global demand forrailways will increase under either
scenrio.
● Specifically, develop and market
more energy-saving railcars andbattery-powered railcars for nonelectrified sections. Strengthen
railway services through digitalutilization such as dynamic
headway (flexible operations in
response to passenger demand)and new mobility services like
MaaS.
● Given the increasing frequency ofnatural disasters, take risk aversion
into account when deciding thelocation and equipment layoutof a new plant. Keep an eye on
the supply chain in strengthening
our ability to respond to businessdisruption risks in accordance with
our BCPs.

Impacts a part of the ¥547.7 billion
railway systems business sales(Fiscal 2020)

to relevant markets in view of
expected higher demand for nonfossil energy under either scenrio.
● Strengthen the provision of grid
solutions, digital service solutions,and energy platforms that canaccommodate the increased
use of renewable energy anddiversification of energy supply
and demand management.
● Given the increasing frequencyof natural disasters, develop
technologies for disaster-resilient
renewable energy systems
and disruption-resistant powertransmission/distribution systems.
Take risk aversion into accountwhen deciding the locationand equipment layout of a new
production plant. Keep an eye on
the supply chain in strengthening
our ability to respond to businessdisruption risks in accordance with
our BCPs.

Impacts a part of the ¥1,107.9 billion
Energy Sector sales (Fiscal 2020)● Continue to develop innovative

digital technologies, nurturenecessary human capital, andenhance digital service solutions
that generate new value inview of the expected growth indemand for digital services andthe subsequent market expansion
under either scenrio.
● Specifically, enhancecompetitiveness by providing
energy-saving and high-efficiency
IT solutions that contribute to
the following: zero-emissions;platforms for expanded
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 frequencyof natural disasters, strengthen
our ability to respond to businessdisruption risks in accordance with
our BCPs.

Impacts a part of the ¥2,048.7 billion
IT Sector sales (Fiscal 2020)● Under either scenario, continue

developing energy-saving, highefficiency products that use IoTtechnology. Focus particularly
on connected products with
communication features.
Miniaturized, high-efficiency,
low-loss products can also help
reduce CO2 emissions.
● Given the increasing frequencyof natural disasters, take risk
aversion into account when
deciding the location andequipment layout of a new plant.
Keep an eye on the supply chain
in strengthening our ability torespond to business disruption
risks in accordance with our
BCPs.

Impacts a part of the ¥376.4 billion
Industry Sector’s industrial products
business sales (Fiscal 2020)

technology and other alternativetechnologies to enhance theresponse to new markets such as
electric vehicles.
Response to business risks
under the 4°C scenario● Promote R&D and productdevelopment in existing
technologies, including internal
combustion engines, to not only
improve energy efficiency but also
non-environmental issues likesafety, security, and comfort.
● Given the increasing frequency ofnatural disasters, take risk aversion
into account when deciding thelocation and equipment layoutof a new plant. Keep an eye on
the supply chain in strengthening
our ability to respond to businessdisruption risks in accordance with
our BCPs.

Impacts a part of the ¥987.5 billion
automotive business (Hitachi Astemo)
sales (Fiscal 2020)

development of decarbonizedtechnologies such as those forelectric and hydrogen vehicles.
Create decarbonized products
by ascertaining latent market
needs and accelerating productdevelopment.
● Going forward, expand themachinery and parts service
business for hard rock mining (ironore, copper, nickel, etc.) in theCentral Asian and South American
markets.
● Provide various solutions forcustomers’ frontline issues using
the latest digital technology.
● Ensure the rapid provisionof optimal solutions for theprevention, mitigation, andresponse to disasters as well as
recovery and reconstruction.
● Build a global production andprocurement system to prepare
for disasters. Going forward,
enhance BCP and improvethe effectiveness of business
continuity management (BCM) forthe entire supply chain.
Impacts a part of the ¥813.3 billion
construction machinery business(Hitachi Construction Machinery)sales (Fiscal 2020)

We believe that by paying close attention to market trends and developing our business flexibly and strategically,
we have high climate resilience in the medium to long term under either the 1.5°C or 4°C scenario
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.

Hitachi Sustainability Report 2021

053

Contents
Environmental
Environmental

Introduction

Management

Environmental

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
AchievingaaDecarbonized
Decarbonized Society
Society

Risk Management
Structure

The Hitachi Group evaluates and monitors climate-relatedrisks for each business unit and Group company as part of aprocess of assessing risks and opportunities in accordancewith the Environmental Action Plan that is updated every
three years. The results are tabulated by the Sustainability
Promotion Division of Hitachi, Ltd., and their importance ischecked at Sustainability Promotion Meetings. Those risks
and opportunities perceived as being particularly important
for the Group as a whole are deliberated on by the Executive
Sustainability Committee which is chaired by the executive
chairman and the CEO of Hitachi, Ltd.
P032 Environmental Action Plan for 2021 (Fiscal 2019-2021)
P034 Framework for Promoting Environmental GovernanceSocialGovernanceAchieving a Resource Efficient Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Metrics and Targets
Goals

Our environmental activities are managed throughthe Environmental Action Plan toward achieving theEnvironmental Vision and long-term environmental targets
called Hitachi Environmental Innovation 2050. Its metrics
and targets are updated every three years including
those to measure and manage climate-related risks andopportunities.
We use the reduction rate of CO2 emissions per unit

P032 Environmental Action Plan for 2021 (Fiscal 2019-2021)
P040 Achieving a Decarbonized Society
P068 Calculating GHG Emissions Throughout the Value Chain (Fiscal 2020)

The Environmental Vision and Hitachi Environmental Innovationcompared to fiscal 2010 to set targets and monitor progress
across our many Group products and services in the value
chain. Under the current Environmental Action Plan for 2021
(covering fiscal 2019–2021 as well), we have establishedannual targets and monitor progress for each business unit
and Group company.
Total greenhouse gas emissions (Scope 1, Scope 2,
and Scope 3) across our value chain are calculated basedon GHG Protocol standards, and we have published annual
figures since fiscal 2012. Given the nature of our business,most of our CO2 emissions come from the use of soldproducts in Scope 3.
However, CO2 emissions can fluctuate greatly due
to changes in sales volumes and our business portfolio.
Therefore, to advance CO2 reductions during the use ofsold products and services, we set targets and monitor
the progress of reducing CO2 emissions per unit. In otherwords, for products and services featuring equivalent value,
we focus on metrics that provide customers and society
with those that emit less CO2. At the same time, we will
make an effort to not only reduce per unit emissions, butalso total CO2 emissions from our business sites (factories
and offices).
Hitachi Sustainability Report 2021

054

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
AchievingaaResource
ResourceEfficient
Efficient Society
Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Achieving a Resource Efficient Society
Efforts to Achieve a Resource Efficient Society

Approach

The issues of water and resource scarcity, triggered byrising water demand and population growth—resulting inhigher volumes of resources collected, extracted, used, andeventually emitted as waste—are common concerns forthe entire world. Hitachi’s business operations will respondto these issues by working with our customers and society
to help build a society that uses water and other resources
efficiently.

Initiatives to Achieve a Resource Efficient Society

Initiatives in the Value Chain

Building a societythat uses water
efficiently

In order to improve the efficiency of water and resource use
throughout the product life cycle, we will optimize water
use and wastewater treatment in the supply chain, provide
water-efficient products and services, push eco-design
initiatives, and develop tools, applications, and services toachieve a circular economy.

Initiatives at Business Sites
We have set a fiscal 2050 target of improving the usage
efficiency of water and other resources by 50% comparedto fiscal 2010 levels. We will create higher economic value
using less water and other resources and pursue production
activities with a low environmental burden.

Achieving a
Resource
EfficientSociety

Building a societythat uses resources
efficiently

Responding towater risks

Shifting to a circular
economyEnhancing efficiency
in the use of water

Enhancing efficiency
in the use of resources

Hitachi Sustainability Report 2021

055

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
AchievingaaResource
ResourceEfficient
Efficient Society
Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Building a Water Efficient Society
Hitachi’s Approach to Water Risks
Approachof improving efficiency in the use of water by 50%, which wehave set as a long-term environmental target.

Identification of Water Risks Using the Environmental Data
Collection System (Eco-DS)

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

In recent years, a sense of crisis over water resource
depletion and pollution has been growing worldwide. Hitachi
is working to enhance the efficiency of water use within theGroup and to respond to water risks with a view to achieving
a water efficient society.
Hitachi operates a variety of businesses worldwide.
Since water risks vary by region and the type of business, it
is important to identify their respective risks and implement
countermeasures tailored to the specific risks identified.
To promote these efforts, we have issued Water Risk
Guidelines*1, which put together policies related to water risk
identification and countermeasures, and we strive to better
understand water risks faced by some 150 manufacturing
sites around the world that are classified as category A in
our environmental management classification.
We identify water risks at each site by using ourEnvironmental Data Collection System (Eco-DS) and suchglobally recognized tools for water risk assessment as the
Aqueduct, developed by the World Resources Institute (WRI);
the Water Risk Filter, developed by the World Wide Fundfor Nature (WWF) and the German development financeinstitution DEG; and the European Union’s Flood Hazard Mapof the World. We analyze and evaluate the current status ofwater risks for each business unit and Group company, percountry and region, and for the entire Group once a year.
In light of the results, we work to reduce water usage
according to the characteristics of local communities andbusinesses and strengthen water management with the aim

Achievements in Fiscal 2020
In fiscal 2020, we issued a revised version of ourWater Risk Guidelines reflecting revisions to Aqueduct
3.0 and Water Risk Filter 5.0 and also included casestudies. We also revised the checklist for identifying
regional and operational water risks. Based on theserevisions, we assessed the water risks in each region
and identified high regional water risks at a total of 10
business sites operating in China, India, Vietnam, andThailand out of some 150 manufacturing sites aroundthe world that are classified as category A in ourenvironmental management classification. With theseresults, we then assessed the operational water risks,
which were found to be “low to medium-high” at the
10 business sites identified earlier. For this reason,
Hitachi does not consider that any of its businesssites face a comprehensively high water risk. The
water usage at the 10 business sites is 0.47 million
m³, accounting for about 2% of the 22.11 million m³
of water used in Hitachi's manufacturing processes.
Additionally, we used Aqueduct to ascertain thewater stress*2 levels at 129 suppliers in China and 29
in Thailand, and shared the results within the Group.

Regional waterrisks

Operational water
risks

Number of evaluation
items related towater resources,
water quality, water
damage, regulations,
reputational risk, etc.

Approximately 50

Approximately 70

Risk identification
methodVarious waterrisk assessment
tools, including
Aqueduct, are
combined to
identify risks basedon the address
information

Risks are identified
from informationsuch as a businesssite’s volume
of water intake
and effluentsdischarged, andits water-related
initiatives

Risk assessment

Assessed using afive-level scale*3
from low to
extremely-highAssessed using afive-level scale from
low to extremelyhigh

Risk results

High at 10 sites

Low to mediumhigh at all sites,
including the 10 tothe left

No business sites are facing acomprehensively high water risk.
*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 withthe aim of helping companies set effective site water targets.
*2 Water stress occurs when demand for water outpaces availability. The
maximum volume of available water supply per capita is used as an index tomeasure levels of scarcity. The minimum volume of water required for living,
agriculture, industry, energy, and the environment is considered to be 1,700m³ per person per year, and regions below this level are said to experiencewater stress.
*3 Five-level scale: low, low-medium, medium-high, high, extremely-high

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
AchievingaaResource
ResourceEfficient
Efficient Society
Society

Management Framework for Water Resources
Structure

Hitachi has set a long-term goal of improving efficiency inthe use of water, with a view to achieving a water efficientsociety. We are carrying out activities in pursuit of this goalat some 150 manufacturing sites around the world that areclassified as category A in our environmental managementclassification. The Water Risk Response Working Group(WG), consisting of members of major business units andGroup companies, discusses the formulation of waterrelated plans and their level of achievement. These arethen deliberated on and finalized in the Eco-Management
Meetings. Important items related to environmental initiatives
including water risk are deliberated in the Executive
Sustainability Committee.
In order to conduct water management efficiently andeffectively, we operate an Environmental Data Collection
System (Eco-DS) that collects environmental load data at
all the Hitachi Group’s business sites (approximately 1,000
sites). The collected data is aggregated and analyzed, andused for PDCA management of measures including theidentification of water-related issues and the sharing ofcase studies.

Assurance

Achieving a Harmonized Society with Nature

Environmental DataManagement of Water Usage at Business Sites
Activities

In fiscal 2020, we set a target of a 24% reduction (over the base year of fiscal 2010) for water usage per unit and achieved a
24% reduction. The volume of water used declined by 30.64 million m3, equivalent to 58% from the base year. Our measures toreduce water usage include more stringent management of water intake using flowmeters, leakage control by installing aboveground water pipes, circular use of cooling water, and reuse of purified waste water.
Water Input*1 (Hitachi Group)

Environmental Action Plan for 2021 Management Values(million m3)

41.34

50

Reduction in Water Usage*¹ per Unit (Hitachi Group)40

FY 2010(base year)30

FY 2020100%
Amount used

52.75million m

3

Activity amount*2

Reduction in Water
Usage*1 per Unit
compared to base year

20

0.11
0.02
2.98
4.00
1.51

38.54

0.22
0.04
2.56
4.04
1.51

37.02

36.41

1.34

0.35
0.28
2.36
4.09
1.32

29.00

28.01

32.72
30.17

76%

0.26
0.04
2.45
3.93

10

Amount used

22.11million m

3

Activity amount

24% reduction

0

2016

■ Japan■ China

2017

2018

2019

26.35

0.33
0.36
3.30
1.92
0.95
19.50

2020 (FY)■ ASEAN, India, and other Asian regions■ North America ■ Europe ■ Other regions*1 The total amount of water input in manufacturing processes and for otherpurposes, such as in offices.
Note: Regional classifications were changed in fiscal 2020, and the past data
was recalculated based on this.

Case Studies of Improving Water Use Efficiency

FY 2020 reduction target rate: 24%*1 Amount of water used in the production process.
*2 Activity amount is a value closely related to water use at each business site(for example, output, sales, and production weight).

Hitachi Sustainability Report 2021

057

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
AchievingaaResource
ResourceEfficient
Efficient Society
Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Achievements in Fiscal 2020
Japan

Products and Services that Contribute to
Resolving Water Issues
Activities

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

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

Japan’s waterworks bureau is facing various issues such as aging facilities and skills transfers. In response, Hitachi isstrengthening public-private partnerships by providing its Operations and Maintenance (O&M) Support Digital Solution
which utilizes the cloud. In fiscal 2018, at a water purification facility Hitachi introduced the O&M Support Digital Solution
to support equipment inspections, manage water distribution using machine learning, and predict residual chlorine
concentrations using reaction models by linking supervisory control and data acquisition (SCADA) systems, inspection
tablets, and the data center. In fiscal 2020, we verified the functionality and efficient maintenance and managementof multiple water processing systems over a wide area, as well as the appropriate water volume and residual chlorine
management in water purification plants with
Plant Operation Support Function of O&M Support Digital Solutions
different water treatment methods.
Operation planning function (Flow control, pump operation, etc.)
Through the use of verification tests,
Hitachi has been able to confirm theWater demand forecast
Operational constraints identified Manual control
efficiency at several plants in Japan. And
Water demand forecasting
Operational constraints identification Automatic control
in fiscal 2021, we expanded the lineupof O&M Support Digital Solutions andMonitoring and control systemstarted providing new features such as AIDistribution
Water purification
driven equipment diagnostics, water quality
Water source
Pump
Pump
Service area
reservoir
plant
predictions, and operation support.
Effective use ofwater resources

Hitachi is committed to contributing to the effective use oflimited water resources. We will help to solve numerous
issues faced by customers that are involved in the watersupply and sewerage business by combining our trackrecord and know-how of operational technology (OT) andproducts cultivated over many years as a comprehensive
water service provider with IT which Hitachi possesses
abundant experience and knowledge of in diverse fields.

Optimization from Water Sources to Water Distribution Management Utilizing Digital Technologies

Papua New Guinea

Construction of a Sewage Treatment Plant to Address Hygiene Issues and Protect the Marine Environment
Sewage treatment infrastructure was under maintained along the coast of Papua New Guinea’s
capital, Port Moresby. Sewage was being released untreated into the ocean, killing coral reefs incoastal waters, and worsening the environment of the local residents.
To solve this social and environmental issue, Hitachi formed a joint venture with Dai Nippon
Construction and began a sewage treatment infrastructure development project. Completed
Sewage treatment plantin 2019, the constructed plant has a processing capacity of 18,400 m³ per day. In fiscal 2020, the target population for sewage
treatment was about 92,000 people. In the future, it is planned to increase the processing capacity to 25,700 m³ per day tocover a projected target population of about 126,000 people along the coast of the city in 2042. This project goes beyond theconstruction of a sewage treatment plant. Hitachi has requested collaboration on technical support from Kitakyushu, which has
been selected as an Environmental Future City, and is working to ensure stable operation of the facility by proposing efficient O&M
and developing human resources, such as through water quality analysis training.

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
AchievingaaResource
ResourceEfficient
Efficient Society
Society

Building a Society That Uses Resources Efficiently
Hitachi’s Approach to Transitioning to a Circular
EconomyApproach

To help build a recycling-oriented society, Hitachi will
advance a shift from the conventional linear economy
to a circular economy. At the stages of procurement,
development, and design we will advance eco-designs.
This includes taking into account ease of disassembly,
adoption of mono-materials, durability, repairability, andresource saving as well as greater use of recycled materials
and environmentally friendly materials. Beyond the issuesof the long-term use of products and their reuse, and therepair, refurbishment, repurposing, and remanufacturing ofproducts that are no longer needed, our customers’ needs
are changing from goods to experiences or from ownershipto leasing. Responding to such a society, we will promote
the effective use of resources and assets, such as withleasing, pay-per-use systems, subscriptions, products
as a service, reuse, and models for sharing. In the field oftechnology development to support resource circulation,
we will pursue the development of raw materials, products,
tools, applications, and services with a view to achieving acircular economy.

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

GRI 417-1

Efficient Use of Resources Throughout the Value Chain

Recycling plastics
from home appliances(Japan)Refurbishing storage
systems (US)Disposal

Procurement

Closed-loop
recycling,
remanufacturing

Closed-loop recycling,use of recycledmaterials

Use
Repair, reuse,refurbishing, sharing

Efficient Use of Resources
Throughout the Value Chain

Distribution &Sales
Reuse, rebuilding,servicizing

Recycling amorphous
metal materials (Japan)

Development &DesignEnvironmentallyconscious design,
resource saving, longproduct life

Production
Closed-loop
recycling, effective
use of waste

Recycling metalmaterials fromautomobile castingparts (Japan)

Recycling construction machinerycomponents(Japan, China, India, Indonesia, Netherlands,
Australia, Canada, US, Zambia)

Rebuilding electriccomponents fromautomobiles (Japan)

Hitachi Sustainability Report 2021

059

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
AchievingaaResource
ResourceEfficient
Efficient Society
Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Activities Related to a Circular Economy
Activities

Relationship of the Evaluation Method to the Lithium-Ion Battery-Related Circular Economy Business Sector

Recycling
Lifespan/remaining
Market conditions performance

Development andmanufacturing
companies

 arket deterioration /M
remaining value assessment
Manufacturing quality control

h
rbis
fu
Fleet operators
Lithium-Ion Battery
Circular Economy

Battery life cycle
optimal managemen

Use

Remaining value
assessment/sorting
Battery
regenerationo d u c ti o nPrReuse/
Re

Reutilizationcompanies

Recycling
companiesy c lin g

Automation ofremaining value
confirmationc
Re

Hitachi High-Tech has developed a high-speed battery
deterioration diagnosis method to instantaneously evaluate
the performance deterioration and remaining life of lithiumion
batteries (LIB) at speeds ranging from several seconds
to two minutes compared to two to four hours before.
Application of this method in processes ranging fromproduction, the use and reuse, to the recycling of electricvehicles’ lithium-ion batteries is expected to enable it to be
used as a new data management platform with features
including the monitoring of individual battery use, clarificationof remaining performance at the reuse and recycling stages,
and visualization of factors such as the supply-demandbalance and predicted market value in the reuse of batteries.
Hitachi ABB Power Grids and Sweden’s Stena Recycling
have entered into a long-term cooperation agreementon transformer recycling. Encompassing cooperative
design work to enable a new smart recycling process fortransformers, the agreement constitutes a major step on thepath toward realizing a sustainable circular economy.

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

EV lifecycle management
Charging method/timing
optimization

Usage
environment

Charge/discharge
history

Battery
specifications

Market endurance analysis / reutilization market
value / remaining value reliability

Data-Analytics (Remaining life management for each battery ID at the cell level)
High-speed battery deterioration diagnosis

Efforts aimed
at transformer recycling

Hitachi Sustainability Report 2021

060

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
AchievingaaResource
ResourceEfficient
Efficient Society
Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

Plastic Recycling Activities
Achievements in Fiscal 2020
Japan

IT equipment
Hitachi has established its own product recycling
network providing services near its customers tocollect and recycle such end-of-life products assupercomputers, mainframes, and other computing
machines; communication equipment like network
devices and telephone switchboards; and informationequipment like ATMs. It recycled a total of 62 tons of
products in fiscal 2020.
The United States

Large-capacity storage systems
Hitachi Computer Products (America) and Hitachi
Vantara refurbish parts of used devices traded in for
new products after cleaning and checking them for use
as warranty-backed maintenance components. Theyreused and recycled a total of 251 tons of products infiscal 2020.
Japan, China, Australia, and six other countries

Construction machinery units
The Hitachi Construction Machinery Remanufacturing
Business remanufactures used units at recycling plants
to offer as high-function, reasonably priced units withfunctions equivalent to those of new ones. It reduced atotal of 6,630 tons of industrial waste in fiscal 2020 witha target of 9,500 tons by fiscal 2022.

Japan

Electric components for automobiles
After collecting malfunctioning components fromdealers and repair shops, Hitachi Astemo disassembles,
checks, cleans and restores, reassembles, andinspects them, and markets them as having the same
performance as new products. Approximately 47.5% ofelectrical components were collected as malfunctioning
parts and reused as refurbished products and about
15,000 malfunctioning components (approximately
100 tons) were serviced in fiscal 2020. It reduced
approximately 47.5 tons of industrial waste.
Japan

Home appliances
Hitachi Global Life Solutions works to recycle four
categories of end-of-life home appliances (air conditioners,
TVs, refrigerators/freezers, and washing machines/dryers)
at 19 recycling plants as part of cooperative efforts
among five companies*1 in response to the 2001 Act
on Recycling of Specified Home Appliances. A total of
91,715 kt of recyclable materials*2 were recovered in fiscal
2020 of which approximately 82,408 kt were recycled.
By product type, the recycling rate for refrigerators andfreezers was 81%, exceeding the legal requirement of
70% by 11 percentage points, and for washing machinesand dryers it was 94%, exceeding the legal requirementof 82% by 12 percentage points.

Activities

Hitachi Global Life Solutions, whose plastic consumption
accounts for around 70% of the Hitachi Group’s total,
uses recycled plastic in parts for washing machines andrefrigerators and packing materials for ceiling lights. The
company procures recycled plastic materials produced
within the Hitachi Group using plastic parts recovered fromend-of-life home appliances and plastic containers as well aspurchasing recycled plastics from materials manufacturers.

Achievements in Fiscal 2020
During fiscal 2020, a total of 1,794 tons of recycledplastic materials from end-of-life home applianceswere used as parts for home appliances and packing
materials. While large components in washingmachines (such as enclosure bases in the lower partsof units) were previously made with mixtures of new
and recycled materials, a substantial increase in theuse of recycled plastics compared to fiscal 2019 wasachieved with the switch to almost 100% recycledmaterial use in fiscal 2020. The clearing of technicalproblems and the handling of procurement issues arefactors in this achievement.

*1 Hitachi Global Life Solutions; Sharp Corp.; Sony Corp.; Fujitsu General
Ltd.; and Mitsubishi Electric Corp.
*2 Parts and materials recovered from four categories of end-of-life home
appliances (air conditioners, TVs, refrigerators/freezers, and washingmachines/dryers) and recycled through in-house use, selling them,or transferring them free of charge to others who will use them. Data
values are aggregated from Hitachi Global Life Solutions and HitachiJohnson Controls Air Conditioning.

Hitachi Sustainability Report 2021

061

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
AchievingaaResource
ResourceEfficient
Efficient Society
Society

Assurance

Achieving a Harmonized Society with Nature

Environmental Data

P62̲ 廃棄物有価物発生量＊1 の推移（日立グループ
Management of Waste Generated at Business Sites
Activities

For fiscal 2020, we set a target of a 11% reduction (from abase year of fiscal 2010) for waste and valuables*1 generated
per unit, and bettered this by achieving a 14% reduction.
The amount of waste and valuables generated was reducedby 313 kt or 24% compared to the base year. We strived
to reduce waste by installing recycling facilities within ourbusiness sites as well as through closed-loop recycling,whereby the by-products and scrap from the production
process are reused as resources by other business sites,
and repeated use of packing and cushioning materials
during transport.
Under the Zero Emission*2 initiative, which seeks tominimize landfill disposal, 73 business sites out of 162 target
business sites achieved their zero waste emissions goal*3 infiscal 2020.
For hazardous wastes, we collect environmental load
data using the Environmental Data Collection System (EcoDS) to centrally manage the volumes of hazardous wastes
generated and exported by type, and to confirm proper
disposal within the Group.
*1 Waste and valuables: Materials generated through business activities. Eachcountry has a legal definition of waste, and in Japan, the term refers torefuse, bulky refuse, ashes, sludge, excreta, waste oil, waste acid and alkali,
carcasses, and other filthy and unnecessary matter, which are in a solid or
liquid state 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 otherparties as items of value.
*2 Zero emissions: The principles and methods advanced by the United Nations
University in 1994 aimed at eliminating waste from human activity as muchas possible while maximizing the use of resources and achieving sustainableeconomic and manufacturing activities.
*3 Zero waste emissions goal: Defined as a final disposal rate (landfill disposal/
waste and valuables) of less than 0.5% in any given fiscal year in the Hitachi
Group

GRI 306-1/306-2/306-3

Waste and Valuables Generation*¹ (Hitachi Group)

Environmental Action Plan for 2021 Management Values
Reduction in Waste and Valuables Generation*1 per Unit
(Hitachi Group)
FY 2010(base year)

FY 2020

(t)
1,500

1,336

1,000

1,356

1,384

1,302

12
4

12
4

737

713

722

656

107
48

117
55

130
55

148
56

435

455

461

418

7
2

14
10

1,061

9
9
582

100%
Amount generated

1, 322 kt

86%

500

Amount generated

0

Activity amount■ Japan

1,009 kt

Activity amount*2

2016

2017

■ China■ North America

2018

2019

100
50
311

2020

(FY)

■ ASEAN, India, and other Asian regions■ Europe■ Other regions*1 The total amount of waste and valuables generated in manufacturing processes
plus that generated in offices and other nonmanufacturing businesses.
Note: Regional classifications were changed in fiscal 2020, and the past data
was recalculated based on this.

Reduction in Waste andValuables Generation
per Unit compared tobae year

14% reduction

Case studies of Efficient Use of Resources

FY 2020 reduction target rate: 11%*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).

Zero Emission Sites

Hitachi Sustainability Report 2021

062

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Assurance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
Achievinga aResource
ResourceEfficient
EfficientSociety
Society Achieving
AchievingaaHarmonizedHarmonizedSociety
Society with
with Nature

Environmental Data

Achieving a Harmonized Society with Nature
Efforts to Achieve a Harmonized Society with Nature
To adequately preserve the ecosystem and achieve a
harmonized society with nature so that we may continue
to enjoy nature’s benefits, we have established targets tominimize our impact on natural capital as part of our longterm environmental targets.
We classify the emission of greenhouse gases andchemical substances into the atmosphere and thegeneration of waste materials as negative impact activities.
Providing products and services that contribute to
ecosystem preservation and undertaking social contribution

Approachactivities to protect the environment through the preservationof biodiversity and ecosystems are categorized as positive
impact activities. We will strive to minimize the gap between
them by 2050.
By quantifying Hitachi’s positive and negative impact
activities across the value chain, we are advancing initiatives toreduce our negative impact and maximize our positive impact.

A Timetable for Minimizing Impacts
Negative impacts

Positive impacts (ecosystem preservation activities)

Positive impacts (contributions through products and services)

100

Impact (%)

Reduce negative impacts

Activities to achieve long-term targets
Decarbonized society
Resource efficient society
Harmonized society with nature

Minimize impacts onnatural capital

Ecosystem preservation activities

Increase positive impacts
0
2010

Contributions through products and services
2020

2030

2040

2050 (Year)

Initiatives to Minimize Impacts on Natural Capital
Activities

Hitachi has identified and quantified the negative impacts
our business activities have on natural capital with the aimof reducing such impacts. In fiscal 2020, we evaluated theimpacts using the latest version of an inventory database(IDEA v2*¹) that is needed for calculating negative impacts.
According to our estimates, approximately 30% of ournegative impacts in fiscal 2020 were related to climatechange, and 20%, respectively, to ecotoxicity (air), urban air
pollution, and resource consumption. With regard to climatechange, we will accelerate the pace of our efforts to realize
a decarbonized society and a resource efficient society as
the impact of our raw materials procurement is becoming
apparent in impact assessments regarding ecotoxicity (air),urban air pollution, and resource consumption. Also, we
found negative impacts were reduced by 8% in fiscal 2020
from fiscal 2019. To further reduce our environmental load
to minimize our impact on natural capital, we will enhancea wide range of activities such as increasing the energy
efficiency of our products and services, advancing factory
efficiency, using resources more effectively, and properly
managing chemical substances.
As for our positive impact activities, we havebeen advancing social contribution activities like forest
conservation and business activities that directly contributeto ecosystem preservation such as building water treatment*1 IDEA v2: One of Japan’s leading inventory databases which is needed to
implement LCAs for calculating negative impacts.

Hitachi Sustainability Report 2021

063

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Assurance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
Achievinga aResource
ResourceEfficient
EfficientSociety
Society Achieving
AchievingaaHarmonizedHarmonizedSociety
Society with
with Natureplants. We are also looking to quantify the impact of these
activities.
We estimate the benefits gained through our forest
conservation activities (flood prevention, water impoundment,water purification, soil loss prevention, and carbon fixation)
on an ongoing basis using evaluation methods commonlyused in forestry-related public works projects.

In fiscal 2020, we started collecting data on forested
areas targeted for conservation activities using theEnvironmental Data Collection System (Eco-DS). These
data are needed to evaluate forest conservation efforts.

Negative Impact on Natural Capital (FY 2020)
Other

9%

28%
Climate change

Land use

15%
Resource
consumption

17%

Negative Impacts on Natural Capital
2016

（%）

100

100

92

80
60
40
20

Achievements in Fiscal 2020

10%Environmental Data

21%
Ecotoxicity (air)

0

2019

2020

(FY)

Scope of Negative Impact Calculations

Signing the Call to Action Statement, Initiatedby Business for Nature
In June 2020, the global Business for Nature coalition issued
a Call to Action statement. The aim is to encourage policy
makers around the world to adopt policies to “to reverse
nature loss in this decade.” Hitachi agrees with this goal andhas signed the statement.
The Call to Action states that healthy societies, resilient
economies and thriving businesses rely on nature. It urges
governments to adopt policies to reverse the loss of nature,and calls for the protection, restoration, and sustainable useof natural resources.
Business for Nature’s Call to Action

Urban air pollution

Note: Calculated from version 2 of the Life-cycle Impact Assessment Method
based on Endpoint Modeling (LIME2) by using IDEAv2

Hitachi Sustainability Report 2021

064

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Assurance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
Achievinga aResource
ResourceEfficient
EfficientSociety
Society Achieving
AchievingaaHarmonizedHarmonizedSociety
Society with
with Nature

Environmental DataManaging and Reducing Chemical Substances
Managing Chemical Substances
Approach

Hitachi believes that the control and reduction of chemical
substances like volatile organic compounds (VOCs), one of
the causes of urban air pollution, are important to minimizing
our impact on natural capital.
Based on this belief, Hitachi formulated the Regulations
for Environmental CSR-Compliant Monozukuri to manage
chemical substances at all stages of its operations—fromdesign and development, procurement, and production
to quality assurance and shipping. Chemical substancesin our products are divided into two categories, prohibited
substances and controlled substances, for separate
management to respond to legal and regulatory frameworks
at shipping destinations. With regard to chemical substancesused in our business operations, we reduce risk by assigning
three ranks to the use of such substances: prohibited,
reduced, and controlled, as well as by educating chemical
substance handlers and managers on laws and regulations
and on proper risk assessment.

Managing Chemical Substances in Our Products
SystemActivities

Hitachi designates the chemical substances in our products
requiring management as Voluntarily Controlled Chemical
Substances. With the basic principle of taking as our model
the standards of the EU, where regulations are stringent,
we determine and manage controlled chemical substances
extensively, regardless of export destination, type of industry,or purpose of use. Specifically, we distinguish between
prohibited substances (Level 1), which are basically illegal
to use inside and outside Japan in products (including
packaging) but which might be found in products fromsuppliers, and controlled substances (Level 2), which
includes substances we are required to track and manage
the use of and substances requiring attention to recycling
or appropriate disposal methods. The list of managed
substances and levels is revised when necessary based on
updates to the EU’s REACH*1 and other regulations, with theaim of adding substances to the list of Voluntarily Controlled
Chemical Substances six months before they are officiallyregulated.
Hitachi’s Voluntarily Controlled Chemical Substances

Achievements in Fiscal 2020
Because five substances including phenol
isopropylated phosphate (PIP [3:1]) were to be added
to the list of restricted substances under the UnitedStates’ Toxic Substances Control Act (TSCA*2)
in March 2021, we in April 2021 revised them asprohibited substances and controlled substances.
As a result, the list of Voluntarily Controlled Chemical
Substances now contains 23 prohibited substancegroups and 25 controlled substance groups.
*1 REACH: The European Union regulation of Registration, Evaluation,
Authorization, and Restriction of Chemicals.
*2 The act comes under the authority of the United States Environmental
Protection Agency.

Managing Chemical Substances in Our Business
Operations
SystemActivities

GRI 305-7

Hitachi has been cutting emissions of chemical substancesfrom its factories and other sites through stricter
management, such as by expanding the number and scopeof controlled chemical substances.
Information on our efforts has been translated into
English and Chinese and shared globally with Hitachi Group
members. We also follow legally prescribed procedures inmeasuring and managing emissions*1 of sulfur oxides (SOx)and nitrogen oxides (NOx), whose measurement is required
under the laws and regulations of our business site locations,and are advancing efforts to further restrict emissions.
We comply with Japan’s Pollutant Release and Transfer
Register (PRTR) Law*2 through Groupwide monitoring ofchemical substances released into the atmosphere or into
public waters, removed outside our plants as waste, ordischarged into sewage systems, reporting the results tolocal governments for each office or plant. Although some
substances are exempt from reporting due to their small
quantities, our policy is to aggregate and manage data on
the handling, emission, and transfer of all PRTR substances
totaling 10 kilograms or more per year.
*1 Emissions of SOx and NOx: Calculated from data by business site (measured
values, exhaust volume, content rate, etc.).
*2 PRTR Law: Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of Improvements to
the Management Thereof.

Hitachi Sustainability Report 2021

065

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Assurance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
Achievinga aResource
ResourceEfficient
EfficientSociety
Society Achieving
AchievingaaHarmonizedHarmonizedSociety
Society with
with Nature

Environmental Data

Achievements in Fiscal 2020
In fiscal 2020, toward the target of reducing atmospheric emissions of chemical substances per unit by 17% from thebase year 2010, we were able to achieve a reduction rate of 33%. To reduce the emissions, we are switching from paints
containing VOCs to water-soluble and powder paints as well as expanding their use and altering the painting and washingprocesses.

 educing Atmospheric Emissions of Chemical Substances
R(Hitachi Group)

Environmental Action Plan for 2021 Management Values(t) eduction in Atmospheric Emissions of ChemicalR
Substances per Unit (Hitachi Group)

5,000

FY 2010(base year)

4,380 15

Emissions

4,006 tActivity amount*

1

Emissions

2,374 t898

662

FY 2020

67%

92
165

57
172

4,000

100%

4,472 13

291

245

3,000

4,389 12
65
130

3,882

966
184

52
57
197

754
125

93
35
158
439
84

2,000
3,183

Activity amount

3,059

3,032

2,374

2,697

1,000

Reduction in Atmospheric
Emissions of Chemical
Substances per Unit

33% reduction
FY 2020 reduction target rate: 17%*1 A value closely related to atmospheric emissions of chemical substances at
each business site (for example, substances handled, sales, and output)

1,563

0

2016

■ Japan■ China■ North America

2017

2018

2019

2020

(FY)

■ ASEAN, India, and other Asian regions■ Europe■ Other regions

Notes: • Atmospheric emissions of VOCs and other chemical substances arecalculated from the content rate included in the ingredients• Regional classifications were changed in fiscal 2020, and the past data
was recalculated based on this.

Case studies of Reducing Chemical Substances in
Our Business Activities

Hitachi Sustainability Report 2021

066

Contents
Environmental
Environmental

Introduction

Management

Environmental

SocialGovernance

Assurance

Executive
ExecutiveSummary
Summary Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets Environmental
EnvironmentalGovernance
Governance Achieving
Achievinga aDecarbonized
DecarbonizedSociety
Society Achieving
Achievinga aResource
ResourceEfficient
EfficientSociety
Society Achieving
AchievingaaHarmonizedHarmonizedSociety
Society with
with Nature

Environmental Data

Preserving Ecosystems
Ecosystem Preservation Activities Menu

Initiatives to Preserve Ecosystems
Approach

Activities

Category
GRI 304-3

At Hitachi, we seek to reduce negative impacts on natural
capital caused by business activities and to promote positive
impacts, such as by undertaking social contribution activities
to protect nature and providing products and services that
help preserve the ecosystem, thereby minimizing our impact
on natural capital by fiscal 2050 and realizing a society inharmony with nature.
Hitachi created an Ecosystem Preservation Activities
Menu citing the specific activities to be undertaken to
promote the preservation of the ecosystem, including not
only CO2 emission reductions, resource recycling, andchemical substances management but also activities thatare difficult to quantify but are nonetheless important,such as the protection of rare species and efforts to makebiodiversity a criterion when making investment decisions.
Each business site sets its goals and promotes initiatives
based on the Ecosystem Preservation Activities Menu.

Business sites

Value chain

Community

Water use thattakes watershedecosystems into
consideration

Activities taken

No. of menu items

Production

Reducing use of resources that cannot be reused

4

Transportation

Using packaging that takes ecosystem into consideration

7

Collection, disposal, andrecycling

Reducing hazardous materials in products

2

Product planning,development, and design

During R&D, estimating impact on biodiversity during a product’s life cycle andimplementing, if needed, mitigation measures

3

Site management

Using native species, setting up biotopes

17

Water use

Using rainwater1

Investment and acquisition

Confirming impacts on biodiversity when investing in or acquiring a business, andimplementing measures to minimize such impacts

1Market entry andexpansion

Including biodiversity as an investment criterion

1

Business development

Developing products and services to purify water, air, and soil and expanding suchbusinesses

1

Procurement

Preferentially procuring paper and other office supplies that take biodiversity into
consideration

17

Transportation

Implementing ballast water measures during marine transportation

2

Sales

Implementing sales expansion of products that take biodiversity into consideration

9

Collection, disposal, andrecycling

Reusing and recycling components

7

Entire value chain

Promoting the use of renewable energy

1

Engagement

Promoting employee activities outside the company

3

Social contribution

Implementing desert greening and afforestation activities

12

Water intake

Observing and collecting biota information (impact on ecosystem depending on
intake volume)

14

Water discharge

Setting up biota management indicators and making observations (species andnumbers of inhabiting organisms)

14

Case studies of Promoting Ecosystem Preservation

Hitachi Sustainability Report 2021

067

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

Environmental Data
GHG Emissions Throughout the Value Chain

GRI 302-2/305-1/305-2/305-3/305-4/305-5

Calculating GHG Emissions Throughout the Value Chain (Fiscal 2020)

Procurement of Raw Materials and Parts

Hitachi calculates greenhouse gas (GHG) emissions throughout the value chain in
conformance with GHG Protocol standards. This gives us a good grasp of emission
hotspots in our value chain with which we can establish effective targets andreduction measures. CO2 accounts for almost all of Hitachi’s GHG emissions, with

SCOPE 3SCOPE 1SCOPE 3

Upstream

Direct emissions

Downstream

1 Purchased goods andservicesthere being negligible releases of other gases, making it all the more important tofocus on CO2 reduction efforts.

Suppliers, etc.

An extremely high share of our value chain emissions comes from the useof the products and services we sell. We thus believe that we can make a major
contribution to decarbonization through our business operations by giving priority toenhancing the efficiency and energy-saving features of our products and services.

Construction
companies, etc.

9.1 %
1.7 %

3 Fuel- and energy-related

activities not included in
Scope 1 and 2

Extraction
companies, etc.

0.3 %and distribution

Shipping companies

SCOPE2
Indirect emissions from productionof electricity and heat purchasedby the company

Direct emissions from in-house
fuel use and industrial processes

1.22 Mt-CO e [1.7 ]%2Total GHG
Emissions

72.4

SCOPE 3：
Down Stream

Mt-CO2eOther indirect emissions notcovered by Scope 1 and 2(Emissions by other entities related
to the company’s activities)

60.8 Mt-CO e [84.0 ]2%

Direct emissions fromin-house fuel use andindustrial processes

1.7

Processors of intermediate products
N/A

Indirect emissions fromproduction of electricity
and heat purchased by
the company

11 Use of sold products

Product end users

83.2

%

SCOPE 3：
Upstream

products

Waste treatment companies

%

0.0 %

0.1 %

14 Franchises Franchise members

6 Business travel

0.0 %15 Investments

Transportation companies, etc.

Other indirect emissions notcovered by Scope 1 and 2(Emissions by other entities related
to the company’s activities)

0.7 %13 Downstream leased assets

Waste treatment companies

7 Employee commuting%

12 End-of-life treatment of sold

Users of leased assets

Transportation companies, etc.

N/A

Investment destinations

0.1 %

0.1 %

8 Upstream leased assets

Leasing companies
Included in Scope 1 and 2

8.26 Mt-CO e [11.4 ]
2

0.0 %

10 Processing of sold products

Energy-related
indirect emissions

2.9

distribution

Shipping companies%

SCOPE 20.1 %9 Downstream transportation and5 Waste generated in operations

2.09 Mt-CO e [2.9 ]2Transport, Use, Waste Disposal/Recycling

2 Capital goods

4 Upstream transportation

SCOPE 1

Production%

In-house: Within the scope of the company’s organizational boundaries. In principle, all business activities of the company itself andactivities within or controlled by its consolidated subsidiaries.
Upstream: In principle, activities related to products and services that are purchased.
Downstream: In principle, activities related to products and services that are sold.
P069 Detailed Data on GHG Emissions Throughout the Hitachi Value Chain (Fiscal 2020)
P071 Energy Inputs and GHG Emissions During Business Operations

Hitachi Sustainability Report 2021

068

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceAchieving
AchievingaaDecarbonized
DecarbonizedSociety
SocietySocialGovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

ReportingBoundary

Calculation
Results(Mt-CO2e)

Percentage(%)

Direct emissions from in-house fuel use and industrial processes

Hitachi Group

1.22

1.7

Indirect emissions from the production of electricity and heat purchased by the company

Hitachi Group

2.09

2.9

Hitachi Group

3.31

4.6

Detailed Data on GHG Emissions Throughout the Hitachi Value Chain (Fiscal 2020)
Category

Description

Scope1*1
Direct emissions
Scope2*2
Energy-related indirect emissions
Scope 1 and 2 total
Scope 3: Upstream (other indirect emissions)Purchased goods and services

Emissions from the resource extraction stage to the manufacturing stage, including raw materials, parts, supplied products, and sales

6.61

9.1

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

1.26

1.7

3

 uel- and energy-related activities
F
notincluded in Scope 1 and 2

Emissions from procuring the fuel necessary for electricity and other energy production, including resource extraction, production, andshipping

0.18

0.3

4

Upstream transportation and distribution

Emissions from the distribution of raw materials, parts, products supplied, and sales prior to the delivery of materials to the company,
as well as other distribution activities of products for which the company bears the expense

0.07

0.1

5

Waste generated in operations

Emissions from the transportation, disposal, and treatment of waste generated from the company’s operations

0.07

0.1

6

Business travel

Emissions generated from the fuel and electricity used by employees for business travel

0.01

0.0

7

Employee commuting

Emissions generated from the fuel and electricity used by employees commuting

0.06

0.1

1

8

Upstream leased assets

Hitachi Group

Included in
Scope 1 and 2

Emissions from the operation of assets leased by the company, excluding those counted in Scope 1 and 2

Scope 3: Downstream (other indirect emissions)
Emissions from the transportation, storage, loading and unloading, and retail sales of products

0.01

10 Processing of sold products

Emissions by downstream companies during the processing of intermediate products

N/A

11 Use of sold products*4

Emissions from the use of products by end users, such as consumers and businesses

60.24

83.2

12 End-of-life treatment of sold products sold*4

Emissions from the transportation, waste disposal, and treatment of products by end users, such as consumers and businesses

0.50

0.7

13 Downstream leased assets

Emissions from the operating of assets owned by the reporting company as the lessor which are leased to other entities

0.03

0.0

14 Franchises

Emissions by franchises under Scope 1 and 2

N/Aー

15 Investments

Emissions related to the management of investments

9

Downstream transportation and distribution

0.0

*3

Hitachi Group

0.06

0.1

Scope 3 total

Hitachi Group

69.05

95.4

Total

Hitachi Group

72.40

100

*1 Including SF6, PFC, HFC, N2O, NF3, and CH4. The gas and fuel oil conversion factor is based on the list of emissions and calculation methods published by Japan’s Ministry of the Environment.
*2 CO2 emissions were calculated using the 2017 CO2 electrical power conversion factor for countries (in CO2 per kWh) in Emission Factors (2019 edition), published by the International Energy Agency (IEA).
*3 Cannot be determined due to insufficient information about the processing.
*4 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).

Hitachi Sustainability Report 2021

069

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
Governance

Environmental Load from Operations
Overview of the Environmental Load from Business Operations(Hitachi Group, Fiscal 2020)

SocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

GRI 301-1/301-2/302-1/302-4/303-1/303-2/303-3/303-4/303-5/305-4/305-5/305-6/ 305-7/306-1/306-3/306-4/306-5

The following is an outline of total resource inputs (energy, raw materials, etc.) and the environmentalload (greenhouse gas emissions, waste generation, etc.) of Hitachi Group operations during fiscal 2020.
Products shipped:1,807k

INPUT

OUTPUT

Total Resource Inputs
Fuel oil

Total Energy Input

4%(crude oil equivalent)

1.51

Gas

17%

GL

3,066
56.4

kt

3%

Plastics

4%

kt

Total Chemical
Substances Handled

Ozone-depleting
substances handled

0%Greenhouse gas
substances handled

10%

Groundwater,
etc.

Total Water Input

26.35

Solid fuel

6%

3,313

Electricity

73%

33%
million m3

Metals93%

1,061

Operations

3.1

Tap water

Waste
reduction

19%

kt

kt

Water recycling

50.77million m

3

23.25

7%

Landfill

Ozone-depleting
substances emitted(CFC-11, etc.)

0%23%
SOx (sulfur oxides) 7 %NOx(nitrogen oxides)

Total Volume ofWater Effluents Discharged

19%

48%

＊

Chemical Substances
Discharged orTransferred

90%

1%

kt-CO2e 1

Total Volume of Waste
and Valuables

PRTR
substances
handled *2

Industrial
water, river
water

Other
GHG
emissionsGreenhouse Gas Emissions

Othermaterials

Raw Materials Input

Total Environmental LoadCO 2emissions

99%

Recycle74%

PRTR
substancesdischarged ortransferred*²

70%

Undergroundinfiltration,
evaporation, etc.

11%

Seweragemillion m3

Public water

66%

23%

*1 CO2e: CO2 equivalent. *2 PRTR substances: The 462 chemicals designated in Japan’s Pollutant Release and Transfer Register (PRTR) Law.

Hitachi Sustainability Report 2021

070

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

Detailed Data on Resource Input and Environmental Load Output

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.
Energy Inputs
Reporting Boundary
Renewable energy

Electricity

Non-renewable energy

Electricity

Hitachi GroupUnit
GWh (TJ)

FY 2016

Gas

Natural gas
For heating

Billion m (PJ)
Hitachi GroupFor coolingTo generate steam

138.2 （497.5）*¹

5,903 (57.4)

6,020 (58.4)

6,021 (58.4)

5,992 (58.2)

4,498 （43.9)—

130 (1.3)

128 (1.3)

128 (1.3)

96 ( 1.0 )—

277 (2.7)273 (2.7)273 (2.7)

208 ( 2.0)—

3.2 (7.7)

3.2 (7.7)

3.2 (7.7)

3.2 ( 7.7)

0.18 (8.1)

0.19 (8.6)

0.18 (8.4)

0.15 (7.0)—

18.4 (0.9)

18.6 (0.9)

18.6 (0.9)

Million m3 (PJ)
kt (PJ)

LPG, LNG, etc.

FY 202018.0 (64.8)

kt (TJ)
3

FY 2019

7.1 (25.6)

For coolingTo generate steam

FY 2018

3.2 (11.5)

GWh (PJ)

For heating

FY 20172.9 (10.4)

0.11

(4.8)

14.2 ( 0.6 )—10.3 (0.5)

10.5 (0.5)

10.5 (0.5)

8.0 ( 0.4 )—

291 (0.68)

268 (0.63)

232 (0.54)

161 ( 0.38)

241 (13.0)

269 (14.5)

251 (13.5)

150 (8.0)

111

(5.9)

Fuel oil (heavy oil, kerosene, etc.)

ML (PJ)

149 (5.6)

117 (4.5)

87 (3.3)

75 (2.9)

61

(2.3)

Solid fuel (coke)kt (PJ)173 (5.2)

179 (5.4)

188 (5.5)

162 (4.8)

137

(4.0)

PJ (GL)89 (2.30)

91 (2.35)

88 (2.27)

81 (2.07)

61 (1.51)

Total energy consumption (crude oil equivalent)

Hitachi Group*¹ From FY 2020, the amount of purchased renewable energy is added to the amount of generated renewable energy.

Greenhouse Gases Emitted
Reporting Boundary
CO2 emissions
Other GHGs

Hitachi GroupUnit

FY 2018

FY 2019

FY 2020

5,322

5,433

4,973

4,374

3,296

37

40

35

24

11

PFCs (perfluorocarbons)

4

4

5

4

0

HFCs (hydrofluorocarbons)

19

7

3

3

1

2

1

3

2

2

Hitachi Group

kt-CO2e

CO2 from non-energy sources
Total GHGs*¹

FY 2017SF6 (sulfur hexafluoride)

N2O, NF3, CH4 (dinitrogen monoxide,
nitrogen trifluoride, methane)

kt-CO2

FY 2016

Hitachi Group

kt-CO2e

3

3

7

8

3

5,387

5,488

5,026

4,415

3,313

*¹ Total GHGs: Scope 1 and 2 total
Notes: • CO2 emissions indicate the total of Scope 1 and Scope 2 emissions which are associated with those emerging from energy use. Those emissions emerging from renewable energy are considered zero.
 O2 emissions from electricity consumption is calculated using a market-based calculation method. Regarding CO2 electrical power conversion factors: In Japan (including power plants), adjusted conversion factors for individual power businesses based on the•C
Act on Promotion of Global Warming Countermeasures are used; outside of Japan, the latest values for each fiscal year supplied by the International Energy Agency (IEA) and by power supply companies as conversion factors for individual countries are used.
• The gas and fuel oil conversion factor is based on the list of emissions and calculation methods published by Japan’s Ministry of the Environment.

Hitachi Sustainability Report 2021

071

Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

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.
Raw Material Inputs
ReportingBoundary
Raw materials

MetalsUnit

FY 2016

New materials
Recycled
materials, etc.

Plastics
New materials
Recycled
materials, etc.

Hitachi Groupkt

FY 2018

FY 2019

FY 2020

3,388

4,031

3,454

2,861

1,497

1,571

1,624

1,372

1,075

1,213

1,817

2,407

2,082

1,786

169

151

165

147

115

167

150

163

143

113

2

1

2

4

2

314

258

207

175

90

New materials

308

250

201

173

89

Recycled
materials, etc.

6

8

6

2

1

3,193

3,797

4,403

3,776

3,066

Other materials

Total amount of raw materials

FY 2017
2,710

Hitachi Groupkt

Waste and Valuables Generated

Waste reduction
RecycleReportingBoundary

Unit

Hitachi Groupkt (kt*1)

Reuse
Materials recycled

Hitachi Groupkt (kt*1)

Thermal recovery

FY 2016

FY 2017

FY 2018

FY 2019

FY 202068 (0.4)

83 (9.0)

94 (5.6)

101 (17.5)

75 (9.8)

1 (0.4)1 (0.4)1 (0.0)5 (2.2)35 (11.4)

1,001 (21.5)

1,038 (20.2)

1,044 (25.6)

919 (25.3)

740 (17.6)

12 (2.4)

11 (1.4)

13 (1.4)

21 (4.9)

11 (5.4)

Landfill

Hitachi Groupkt (kt*1)

254 (2.0)

223 (5.2)

232 (3.7)

256 (6.1)

200 (4.9)

Total waste and valuables generated

Hitachi Group

kt

1,336

1,356

1,384

1,302

1,061

Nonhazardous (hazardous)

Hitachi Groupkt (kt )1,309 (27)

1,320 (36)1,348 (36)1,246 (56)1,012 (49)*²*1*1 Figures in parentheses are the generation of waste defined as hazardous under the Basel Convention.
*2 The hazardous wastes imported and exported are zero tons, and hazardous wastes transported internationally are 0%.

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Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

Inputs, Discharges, and Transfers of Chemical Substances During Business Operations
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 and transfers.

Chemical Substances Handled
ReportingBoundary
Chemical substances
handled

PRTR substances handled
Ozone-depleting substances handledUnit

FY 2016

kt
Hitachi GroupFY 2018

FY 2019

FY 2020
51*1

205

189

177

208

1,219

561

241

0.25

3,425

5,656

6,332

8,520

5,426

193.6

211.9

195.9

185.8

56.4

t

Greenhouse gas substances handled
Total amount of chemicals handled

FY 2017
190

Hitachi Groupkt

ReportingBoundary

Unit

Chemical Substances Discharged or Transferred

Chemical substancesdischarged ortransferred

PRTR substances discharged ortransferred
SOx (sulfur oxides)
NOx (nitrogen oxides)

kt
Hitachi Group

Ozone-depleting substances emitted(CFC-11, etc.)
Total Amount of Discharges andTransfers		

tt (t-ODP*2)

Hitachi Groupkt

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

4.5

4.3

4.1

3.4

2.1

290

297

274

256

209

1,007

929

930

822

706

1.1(0.05)

24 (0.61)

27 (0.70)

9.8 (0.28)

0.06 (0.002)

5.8

5.5

5.3

4.5

3.1

* 1 Due to deconsolidation of material company, the handling volume decreased.
* 2 ODP (ozone depletion potential): A coefficient indicating the extent to which a chemical compound may cause ozone depletion relative to depletion by CFC-11 (trichlorofluoromethane, ODP = 1.0). The conversion factor uses the ODP and global warming potential
published by Japan’s Ministry of the Environment.

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Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

Water Inputs and Effluent Discharges During Business Operations
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.

Water Input*1
ReportingBoundary
Surface water

FY 2016

Unit

Tap water (water for drinking andother household uses)

Million m3

FY 2017

FY 2018

FY 2019

FY 2020

7.77

7.4

7.61

7.95

5.10

18.41

17.46

16.63

15.58

12.62

Million m3

14.92

13.56

12.74

12.84

8.60

Rain water

Million m3

0.03

0.02

0.01

0.02

0.01

Recycled water (recycled from the wastewater of otherorganizations)

Million m3

0.21

0.1

0.03

0.02

0.01

Million m3

41.34

38.54

37.02

36.41

26.35

Industrial water, river water
Groundwater

Hitachi Group

Total water use

Hitachi Group*1 There is no water intake from the sea.

Water Effluents Discharged*1
ReportingBoundary
Public water
Hitachi Group

Sewerage
Total water effluents discharged
BOD (biochemical oxygen demand)
COD (chemical oxygen demand)*²

Million m

FY 2017
26.16

FY 2018
23.12

FY 2019
22.44

FY 2020
22.46

15.29
5.44

3

8.93

8.62

8.18

7.74

Million m3

3.68

3.39

3.48

3.21

2.52

Hitachi Group

Million m3

38.77

35.13

34.1

33.41

23.25

Hitachi Group

t

347

380

368

204

172

531

575

1,648

383*2

400

Underground infiltration, evaporation, etc.
Water quality

FY 2016

Unit
Million m3*1 There is no discharge into the sea.
*2 The fiscal 2019 figure excludes business sites (which accounted for around 60% of demand the previous year) from which data collection was hampered due to the spread of COVID-19.

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Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

Environmental Load by Region
Achieving a Decarbonized Society
CO2 Emissions by Region
Reporting BoundaryUnit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Japan

2,392

2,377

2,285

2,030

1,448

China

265

283

236

264

185

ASEAN, India, and other Asian regions

470

499

540

572

360

North America

1,415

1,461

1,286

1,167

1,003

Europe

10

16

15

30

18

Other regions

38

58

57

83

56

Power plants

732

739

554

228

226

5,322

5,433

4,973

4,374

3,296

Total

Hitachi Group

kt-CO2

Hitachi Group

kt-CO2

Notes: • Regional classifications were changed in fiscal 2020, and the past data was recalculated based on this.
• Regarding CO2 electrical power conversion factors: in Japan (including power plants), adjusted conversion factors for individual power businesses based on the Act on Promotion of Global Warming Countermeasures are used; outside of japan, the latest
values for each fiscal year supplied by the International Energy Agency (IEA) as conversion factors for individual countries are used; outside of Japan, the latest values for each fiscal year supplied by the International Energy Agency (IEA) and by power supply
companies as conversion factors for individual countries are used.

Achieving a Resource-Efficient Society
Water Input by Region
Reporting BoundaryUnit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Japan

32.72

30.17

29.00

28.01

19.50

China

1.51

1.51

1.34

1.32

0.95

ASEAN, India, and other Asian regions

4.00

4.04

3.93

4.09

1.92

2.98

2.56

2.45

2.36

3.30

North America

Hitachi Group

Million m3

Europe

0.02

0.04

0.04

0.28

0.36

Other regions

0.11

0.22

0.26

0.35

0.33

41.34

38.54

37.02

36.41

26.35

Total

Hitachi Group

Million m3

Note: Regional classifications were changed in fiscal 2020, and the past data was recalculated based on this.

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Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

Waste and Valuables Generated by Region
ReportingBoundary

Unit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Japan

435

455

461

418

China

48

55

55

56

50

ASEAN, India, and other Asian regions

107

117

130

148

100

737

713

722

656

582

2

4

4

10

9

North America

Hitachi Groupkt

EuropeOther regions
Total

Hitachi Group

kt

311

7

12

12

14

9

1,336

1,356

1,384

1,302

1,061

Note: Regional classifications were changed in fiscal 2020, and the past data was recalculated based on this.

Achieving a Harmonized Society with Nature
Atmospheric Emissions of Chemical Substances by Region
ReportingBoundary

Unit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Japan

3,182

3,058

3,032

2,697

1,563

China

291

245

184

125

84

661

898

966

754

439

118

104

94

197

158

Europe

57

58

65

57

35

Other regions

15

13

12

52

93

4,325

4,378

4,352

3,882

2,374

ASEAN, India, and other Asian regions
North America

Total

Hitachi Group

Hitachi Grouptt

Notes: • Atmospheric emissions of VOCs and other chemical substances are calculated from the content rate stated in the ingredients.
• Regional classifications were changed in fiscal 2020, and the past data was recalculated based on this.

Hitachi Sustainability Report 2021

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Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

Environmental Management Data
Number of ISO 14001 Certified Companies (as of March 2021)
Reporting BoundaryUnit

FY 2020

Japan

85

China

43

ASEAN, India, and other Asian regions
North America

Hitachi Group*1

42Companies

10

Europe17

Other regions

5

Total

Hitachi Group*1

Companies

202*1 Companies with at least one certified business site.
Note: Regional classifications are revised from those used in fiscal 2020 and Mexico, the Middle East, Central and South Africa and other Asian regions wereadded as other regions.

Number of Regulatory Violations and Complaints
ReportingBoundary
Regulatory violations

Unit

FY 2017

FY 2018

FY 2019

FY 2020

1

3

4

4

5

Air quality

2

1

2

0

0

1

0

3

0

4

2

4

4

1

1

6

5

3

5

3

Waste materials

Hitachi Group

Cases

Other (equipment registration, etc.)
Complaints

FY 2016

Water quality

Hitachi Group

Cases

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Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental Accounting

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

GRI 201-1

Environmental Investments
ReportingBoundary
Total
investments

Investments in energy-saving equipment and equipment that directly reduces
the environmental load

Hitachi Group

Unit
Billions ofyen

FY 2016
5.12

FY 2017

FY 2018

10.99

FY 2019

9.86

9.71

FY 2020
5.75

Environmental Protection Costs
ReportingBoundary
ExpensesUnit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Business area

Maintenance costs for equipment with low
environmental loads, depreciation, etc.*1

19.19

22.17

23.57

22.62

19.14

Upstream/Downstream

Green procurement expenses, recovery and recyclingof products and packaging, recycling expenses

0.63

0.72

0.68

0.68

0.62

Administration

Labor costs for environmental management and theimplementation and maintenance of environmental
management systems

5.12

5.69

6.72

4.98

5.88

63.13

62.55

61.86

77.01

60.64

Research anddevelopment costs

Hitachi Group

Costs of research and development and productdesigns to reduce the environmental burden caused
by products and production processes

Billions ofyenSocial activities

Planting, beautification, and other environmental
improvement costs

1.21

1

0.93

0.25

0.22

Environmental
remediation

Environmental mitigation costs, contributions, andcharges

0.22

0.33

0.4

0.17

0.12

89.50

92.46

94.16

105.71

86.62

Total

Hitachi Group

Billions ofyen*1 Equipment depreciation costs are calculated using the straight-line method over five years

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Contents
Environmental
Environmental

Executive
ExecutiveSummary
Summary

Introduction

Management

Advancing
AdvancingOur
OurEnvironmental
EnvironmentalVision
VisionandandLong-Term
Long-TermEnvironmental
EnvironmentalTargets
Targets

Environmental

Environmental
EnvironmentalGovernance
GovernanceSocialAchieving
AchievingaaDecarbonized
DecarbonizedSociety
Society

GovernanceAchieving
AchievingaaResource
ResourceEfficient
EfficientSociety
Society

Assurance

Achieving
AchievingaaHarmonizedHarmonizedSociety
Societywith
withNature
NatureEnvironmental
Environmental Data

Environmental Protection Effects
Economic Effects*1
Major FY 2020 Activities
Net income effects
Cost reduction
effects

Recovering value from waste by sorting andrecycling
Installing high-efficiency equipment (lighting, power
supply, etc.)

Total

Reporting Boundary

Hitachi Group

Hitachi GroupUnit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

4.96

6.90

8.35

12.42

9.66

7.77

14.54

7.70

6.20

4.62

12.73

21.44

16.05

18.62

14.28

Billions of yen

Billions of yen*1 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.

Physical Effects*1 (amount of reduction)
Major FY 2020 Activities
Reduction inenergy used during
production

Installing LED lighting, upgrading air-conditioning
equipment, etc.

Reporting Boundary
Hitachi Group

Unit
Million kWh

FY 2016

FY 201751

FY 2018
41

FY 201955

FY 2020
48

51*1 The effect of capital investments is calculated by the reduction in electricity consumption in the fiscal year it was invested each fiscal year.

Environmental Liability
We have appropriated 5.5 billion yen in costs for the disposal of waste containing PCB and 2.4 billion yen to clean up contaminated soil as the amounts that we can reasonably project, as of end of
March 2021, as future environmental liabilities.

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

081 Innovation Management

SocialStriving to Increase Social Value
In order to grow sustainably and improve social value, Hitachi
must meet a range of social expectations. As well as creating theinnovation sought by society, we need to establish a working
environment where diverse talent can shine, and rigorously
implement fair business practices and respect for human rights
throughout the value chain.
We also aim for greater involvement in and development of
the communities related to our businesses.

081 Executive Summary
083 Research and Development
088 Intellectual Property

091 Human Capital
091 Executive Summary
094 Global Human Capital Management
101 Talent Development
105 Diversity and Inclusion
110 Work-Life Management
114 Occupational Health and Safety
123 Freedom of Association and Collective Bargaining

124 Human Rights
124 Executive Summary
125 Respect for Human Rights Throughout the Value Chain

130 Value Chain Management
130 Executive Summary
132 Responsible Procurement
137 Quality and Product Safety Management
139 Customer Satisfaction

141 Community
141 Executive Summary
142 Social Contribution Activities

146 Social Data
146 Innovation Management
147 Human Capital
154 Value Chain Management
155 Community

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Contents

Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capitalー Why it matters ー

Value Chain Management

Community

Social Data

GRI 103-2

Hitachi is focusing its efforts on Social Innovation Business as part of its mission “to contribute to society through the development of superior, original technology andproducts.” We have also set a goal to become a “global innovation leader” driving Society 5.0 initiatives and contributing to the realization of the UN’s Sustainable
Development Goals (SDGs). In fiscal 2021, the final year of the 2021 Mid-term Management Plan, we are accelerating open innovation through initiatives focusing on the threeareas of Environment, Resilience, and Security & Safety; further enhancing Lumada and NEXPERIENCE, a co-creation methodology for collaborative creation with customers,
and leveraging “Kyōsō-no-Mori,” a new research initiative for open collaborative creation. Hitachi is creating solutions that help customers improve the value they provide tosociety, the environment, and the economy, deploying our intellectual property of these solutions globally and so helping to address social issues by achieving the SDGs andthe Society 5.0 initiative.

What

How

ー What we are doing ー

研究開発 &
Research
Development

Human Rights

Assurance

Relevant SDGs

Innovation Management
Why

Governance・Generating valueinnovation (forEnvironment, Resilience,and Security & Safety)
・Contributing to Lumada
business expansion(development of worldleading technology for OT× IT × Products)
・Strategic positioning toresolve future challenges
facing society (reinforcing
initiatives to address theneeds of society in 2050)

ー How we are doing it ー

Policy andpromotion structure

To become “a global innovation leader” driving Society 5.0 and the realization of the SDGs, the Global Center for Social
Innovation (CSI) is working with front-line teams to foster value-based innovation. Also, the Center for Technology Innovation(CTI) is promoting technology development to expand the Lumada business. In addition, the Center for Exploratory
Research (CER) is promoting research to address the needs of society in 2050 as a stepping stone toward solving futuresocial issues.
Achievements in Fiscal 2020

Develop and socially
Established principles guiding the ethical use of AI
implement human-centric AI
Generate and share visions through Held collaborative forums with leading universities, published the research results
industry- governmentacademia
Promoted open innovation with governments and academic institutions in each country and region
collaborations
Realize Lumada cyberphysical systems (CPS)
Generate productinnovation
Enhance technology
platforms
Foster thedevelopment of top-class
AI talent
Adapt to a newnormal society

Promoted technology development in the areas of AI, 5G, beyond 5G, massively big data processing, cybersecurity, andauthentication infrastructure
Reinforced research and development in areas such as robotics and electrification
Technology developments in quantum computing, regenerative medicine and hydrogen systems as disruptive technology
Top-class AI talent: 356 employees

Target350 employees by fiscal 2021 Achieved ahead of schedule in April 2021

Established the Lumada Data Science Lab. bringing together top data scientists
Developed and implemented work shift optimization solution suitable for remote working
Developed the “BuilMirai” IoT platform for building management

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialInnovation Management

What・Creating solutions
and supporting global
expansion

Human Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social DataHowー What we are doing ーIntellectual
Property

Socialー How we are doing it ー

Policy andpromotion structure

・Promoting IP activities toresolve social issues suchas SDGs and Society 5.0

Under the Social Innovation Business, Hitachi has formulated and implemented an IP strategy that consists of three pillars:competitiveness, collaboration, and society. By establishing sites in various countries, we are also promoting global IP
activities for the globalization of our business.
Achievements in Fiscal 2020
Developed a issue discovery and ideation methods using intellectual property information

Strengthen solution
creation

Implemented incentive measures such as in-house education
Launched the Environmental Intellectual Property Enhancement Project to improve the provision of environmental value

Deploy Hitachi-developed
intellectual property
globally

Enhanced international patent applications (PCT applications) including the results of open innovation

Contribute to solvingsocial issues

Promoted “IP for society” which utilizes intellectual property in specific fields that are of great public interest to maintain social norms and advancesolutions to social issues

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Research and Development
Hitachi’s R&D Policy and Initiatives
PolicyR&D Policy for Fiscal 2021

Generate value-based innovation

Activities

Over a history of more than a 100 years, Hitachi’s researchand development has pursued the company Mission “tocontribute to society through the development of superior,original technology, and products,” and generating innovation
for the future by pursuing cutting-edge technologies of thetime. In the 2021 Mid-term Management Plan, the Research& Development Group set a goal to become a “global
innovation leader” driving Society 5.0 initiatives to contributeto the realization of the UN's Sustainable Development Goals(SDGs), and accelerated open innovation which assimilates
external knowledge into our OT × IT × Products technology
platforms and knowhow.
Further, against a backdrop of a rapidly changing
society and environment, Hitachi is focusing on the threeareas of “Environment,” “Resilience,” and “Security & Safety”
to deliver value-based innovation through the use of Lumada
to resolve issues.
Through such initiatives, Hitachi aims to simultaneously
enhance “Social,” “Environmental,” and “Economic” value forour customers and raise people’s quality of life (QoL).

Work with front-line teams to generate value in“Environment,”“Resilience,” and “Security & Safety”

established in April 2019 to agilely integrate disruptive technology
and business models from startups and quickly establish new
businesses that capture changes in society and its needs.
Global R&D Structure (As of April, 2021)

Contribute to the business expansion of Lumada
Accelerate Lumada platform technology development
Promote development of world-leading technology for
OT×IT×Products which supports value creation

Strategic positioning to resolve future societal issues
Strengthen initiatives with a view to society in 2050

Chief Technology Officer (CTO), andGeneral Manager of the Research & Development Group
Technology Strategy Office
Global R&D strategy

Global Center for Social Innovation (CSI)
Driving creation of value-based innovation
Regional centers

North America Europe China India APAC

Center for Technology Innovation (CTI)

Hitachi’s Structure to Promote R&D
Structure

Activities

To realize the R&D policy, the Global Center for Social
Innovation (CSI) is working with front-line teams to generatevalue-based innovations. Further, to accelerate theexpansion of Lumada business, the Center for Technology
Innovation (CTI) is developing world-leading technology for
OT × IT × Products which supports value creation.
In regard to Environment, a key area of focus for
Hitachi, we are pursuing close collaboration with Hitachi
ABB Power Grids and Hitachi Astemo for decarbonizationand electrification. Furthermore, the Center for Exploratory
Research (CER) is pursing research focusing on society in
2050, to strategically position Hitachi for resolving futuresocietal challenges.
It is working closely with the Corporate Venturing Office

Establishing world-leading technology platforms

Center for Exploratory Research (CER)
Challenging future societal issues

BU R&D (Hitachi ABB Power Grids, Hitachi Astemo, etc.)

Achievements in Fiscal 2020
The Lumada Data Science Laboratory was establishedas part of Kyōsō-no-Mori*¹ to bring together top
data scientists to further enhance value throughdigital solutions. In July 2020, Fellow Kazuo YANO
commercialized technology to measure “well-being,”
and established Happiness Planet, Ltd. in April 2020. to
support corporate management and workstyle reforms.
*1 Research initiative launched from the Central Research Laboratory in April
2019 to pursue open innovation.

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialIn February 2021, we drafted the “Principles Guiding
the Ethical Use of AI” to develop and implement in society
human-centric artificial intelligence (AI) for Hitachi's Social
Innovation Business, as well as convening the Environment
and R&D Strategy Information Meeting to discuss R&D
strategies for carbon neutrality with investors and analysts.
Against a backdrop of a rapidly changing society andenvironment, Hitachi is contributing to activities to raise
people’s quality of life (QoL) through such initiatives.

Value-based Innovation
Structure

Activities

Focusing on the three areas of the “Environment,”“Resilience,” and “Security & Safety,” Hitachi is working with
global front-line teams to generate value-based innovations.
In the area of the Environment, Hitachi will contribute to
the realization of a net-zero society by promoting researchand development in decarbonization, renewable energy,
electrification, and so on. With regard to Resilience, we will
improve resilience in industry and societal infrastructures. For
Security & Safety, our goal is to realize a digital healthcare
society using Hitachi’s leading-edge measurement
technologies and data analytics.
Following the launch of the Lumada Data Science
Laboratory (LDSL), Hitachi redefined generating innovation
in a “new normal” society as “linking wisdom and ideas
across industries, space, and time,” and established theLumada Innovation Hub Tokyo in April 2021 as Hitachi's
flagship center to achieve this goal. Hitachi will accelerate
the pace of innovations using our co-creation methodology,“NEXPERIENCE” to pursue collaborative creation withcustomers globally based on visions for 2050.

Innovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Global Open Innovation Network

Achievements in Fiscal 2020
In fiscal 2020, to resolve the challenges facing society,Hitachi identified the changes faced by our customers
andsociety, drafted a vision with industry-academiagovernment, and began sharing this vision with the world.
In Japan, an industry-academia collaboration forum
was held by the Hitachi The University of Tokyo Laboratory(H-UTokyo Lab.).*¹ “Creating value through energy systems
and socio-technical scenarios for a carbon neutral 2050”
was discussed and a proposal was published. Based on
this proposal, we have begun activities to implement therecommendations for environment-related policies. Further,the Hitachi Kyoto University Laboratory*¹ summarizedresearch achievements and discussions related to thedrafting of “Societal challenges in 2050: A social value
proposal from academia and industry for their resolution”
based on exploratory insights of future societies andcultures, and published this as a book entitled, “Beyond
Smart Life.”
Outside of Japan, as part of our activities to promote
regional co-creation, we engaged in joint projects withThailand’s prestigious Chulalongkorn University to create
new services that will help build a future digital city andalso China’s Tsinghua University to tackle issues related
to climate change, health, and elderly care. In Australia,
an agreement was formed to work with the Liverpool City
Council (LCC) and the South Western Sydney Local HealthDistrict (SWSLHD) in areas such as digital healthcare.
*1 Joint laboratories were established in 2016 with the University of Tokyo andKyoto University respectively, to create value based on future social issues.

RegionEuropeResearch centers
UK (London & Cambridge), Denmark (Copenhagen),France (Sophia Antipolis), Germany (Munich)Americas

United States (Santa Clara & Detroit)

China

Beijing, Shanghai, Guangzhou

Asia(Oceania)

India (Bangalore), Singapore, Thailand (Chonburi),Japan

Australia (Sydney)
Tokyo (Kokubunji-shi & Marunouchi), Ibaraki (Hitachi-shi),Kanagawa (Yokohama-shi), Saitama (Hatoyama-machi)

Contributing to the Expansion of Lumada Business
Structure

Activities

Hitachi is continuing to enhance Lumada to realize valuebased innovation. Priority is being placed on the developmentof technology in AI, 5G/beyond 5G, massively big dataprocessing, and cybersecurity/authentication platforms which
will be core technologies in a Lumada CPS (cyber-physicalsystem) that will seamlessly and in real time connect thedigital with the real world.

AI
At the Lumada Data Science Laboratory, our top data
scientists who include researchers, engineers andconsultants, are working to resolve the issues faced by ourcustomers. At the same time, we are pursuing activities
to strengthen our technological standing, such as throughactively participating in renowned international competitions
and attaining top-class results in the fields of video andnatural language processing.

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Contents

Introduction

Management

Environmental
Social5G/beyond 5G
To accelerate the development of 5G solutions, 5G testbed
environments have been set-up at our Silicon Valley site
in the United States and Kyōsō-no-Mori in Japan. These
demo environments will be leveraged to co-create solutions
using 5G real time control for not only the Industry businessdomain but also Mobility and Energy.

Massively Big Data Processing
We will continue to enhance the functionality of Hitachi's
strength, the data base software Hitachi Advanced Data
Binder (HADB), to increase its competitive advantage, as
well as contribute to accelerating our customers’ digitaltransformation (DX) by enabling the quick extraction of value
from various types of big data.

Technology Developments in Cybersecurity/
Authentication Platforms
We are pursuing activities to realize Data Free Flow with
Trust (DFFT) which was proposed by the Government ofJapan and have also jointly published a white paper on trustand governance with the World Economic Forum (WEF) andthe Ministry of Economy, Trade, and Industry of Japan. In
the area of authentication platforms, Hitachi is developing
an authentication platform to support Society 5.0 such as
hands-free authentication technologies using PBI*1 anddigital certificate technologies for renewable energy.
In addition, we are also strengthening research anddevelopment in areas such as robotics and electrification
technologies to further advance technology platforms
supporting key products such as high-speed trains,elevators, particle beam therapy equipment, biochemical/
immunological analysis systems, inverters, and air
compressors.

Innovation Management

SocialHuman CapitalThrough such activities, we will establish world-leading
technologies leveraging Hitachi’s expertise in OT×IT×Products,
and deliver high value to our customers.

Achievements in Fiscal 2020
In the area of the environment, Hitachi was awarded
the Excellence Award for the development and global
standardization of a phthalates detection system for
RoHS2, in the 47th Environmental Awards co-sponsoredby Japan’s National Institute for Environmental Studies(NIES) and Nikkan Kogyo Shimbun. Hitachi was also
awarded the 52nd “Ichimura Prize in Industry against
Global Warming” for the development of energy-saving
industrial motors using amorphous magnetic alloy foil. In
addition, Hitachi’s integrated bio authentication platform
service that enables hands-free authentication andcashless settlements received the Masuda Award in the
63rd Best 10 New Products Awards (2020) sponsoredby Nikkan Kogyo Shimbun. We are actively pursuing
initiatives to contribute to the development of society
such as the development and provision of services
enabling safe and secure personal authentication andfinancial settlements.

Strategic Positioning to Resolve Future Societal Issues
Activities

Looking ahead to society of 2050, Hitachi is laying the
groundwork to resolve future societal challenges by investingin the development of quantum computers, regenerative
medicine, and hydrogen systems.
In addition to the research pursued at the Hitachi

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Cambridge Laboratory - a key research sites for quantum
computer research; in Japan, a proposal for a largescale silicon computer led by distinguished researcher
Hiroyuki Mizuno in Japan was selected as a Moonshot
Research and Development Program project promoted by
the Japan Science and Technology Agency (JST) and theJapanese government. The project focuses on researchand development of large-scale silicon quantum computing
technologies powered by silicon semiconductor technologies.
In the field of regenerative medicine, Hitachi’s automatedcell culturing equipment was employed by Sumitomo
Dainippon Pharma Co., Ltd. to cultivate iPS cells for theworld’s first clinical trial for the treatment of Parkinson’s
disease, led by physicians at Kyoto University. This is the firsttime that a commercial cell culturing equipment developed
through industry-academia collaboration has been used in aclinical trial, and represents a significant step toward making
regenerative medicine available to a wider population.
In the area of hydrogen systems, we worked with Denyo
Kosan Co., Ltd. and the National Institute of Advanced Industrial
Science and Technology (AIST) after receiving the tender for the“Support Project for Promoting the Introduction of Renewable
Energy in Fukushima Prefecture,” and realized improved efficiency
of hydrogendiesel power generation systems.
For other combinations of a wide range of fuels, Hitachi ispursuing greater efficiency using AI control technology to flexibly
respond to changes in composition. For blue hydrogen production
systems, we will realize a 30% reduction in water usage
compared to conventional systems by employing Hitachi’s uniqueshift catalysts which are structurally controlled at the atomic level.
Trial operations are currently underway since August 2020, at the
New Energy and Industrial Technology Development Organization(NEDO)’s Osaki CoolGen PJ Stage 2. Hitachi will continue its work
to realize a sustainable hydrogen value chain through such efforts.

*1 PBI: Public Biometrics Infrastructure

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

R&D Investment and Fostering Digital Talent
Developing Technology to Prevent the Spread of COVID-19
Hitachi’s considers the safety and health of all its
stakeholders, including customers, partners, andHitachi Group employees and their families worldwide
as its first priority, and is committed to preventing the
spread of the novel coronavirus (COVID-19).
In October 2020, Hitachi used its original computational
technology, CMOS annealing, to provide a work shiftoptimization solution that can draw up work shifts for ten
to several hundred employees. CMOS annealing, whichis the core technology involved in this solution, is able toquickly solve highly complex largescale computational
problems called combinational optimization problems.
In the “new normal” it is expected that society will shift
toward a more flexible workstyle that takes advantage
of both telecommuting and in-person attendance.
Accordingly, this solution is being made available to awide range of businesses as a Lumada solution that
accelerates digital innovation and supports corporate
measures for work-life balance and diverse workstyles.
Further, in November 2020, Hitachi developed theIoT platform ”BuilMirai” that provides the high added
Developing Technology to Prevent the Spread of

COVID-19 value of increased management efficiency
and greater user comfort that is needed for building
management in the “new normal.” The platform helps
to realize a comfortable environment in buildings by
alleviating congestion and adjusting temperature
settings in accordance with the level of crowding;connecting a facility’s equipment control systems,
such as elevators and air-conditioning systems, withthe people flow data in each area of the building. Also
in November 2020, Hitachi conducted a technologicaldemonstration during a professional baseball gameat the Tokyo Dome where images of visitors captured
by cameras were replaced by silhouette icons using
a “human flow visualization solution” to ascertain
crowding within the stadium while respecting visitor
privacy. As a technology that can support measures
such as positioning visitor guides to alleviate
crowding, it will be applied to prevent the spread of
infections in commercial facilities and event venues aswell sporting events.

Activities

Investing approximately 4% of revenue in research anddevelopment, Hitachi is committed to strengthening businessin the five core sectors of our Social Innovation Business,
as well as medium- to long-term initiatives for future growth.
Corporate-led research and development is focused on cocreation with customers, investing in the development ofworld-leading technologies and disruptive technologies. We
are also enhancing and expanding common digital platforms
and research capabilities outside of Japan to achieve an
n-fold increase in the Lumada business, our growth engine
and to promote global deployment.
Further, Hitachi is strengthening its workforce of digital
experts, including in the AI area, to respond to society's needs
based on the recent advances in digitalization. At the Lumada
Data Science Laboratory, we are training and increasing thecapabilities of our engineers and consultants in the fields of AI
and data analytics through practical business experience. The
Research & Development Group is particulary focused on
training top-class talent in the field of AI.*¹ At the end of fiscal
2020, there were 356 such talent, and we will continue thefocus on talent training in fiscal 2021.
*1 Top-class researchers who use AI/analytics, and data scientists
who received internal certification.

Top-Class Digital Talent in the AI Field
(FY)

2020

356
306

2019
226

2018
0

100

200

Hitachi Sustainability Report 2021

300

400

(people)086

Contents

Introduction

Management

Environmental
SocialR&D Expenditure(billion yen)

(%)
5

5,000
4,000

3.5%

3.6%

3.4%

3.4%

3.4%

3,239

3,329

3,231

2,937

2,935

3,580

4
3

3,000
2,000

2

1,000

1

0

2016

2017

■ R&D expenditure (left scale)

2018

2019

2020

2021 FY(planned)0⃝ R&D expenditure as % of revenue (right scale)

Principles Guiding the Ethical Use of AI
PolicyEven as the significance of AI as a source of innovation
continues to grow, there are still concerns that its use
may negatively impact the lives of people and society as
a whole through actions unintended by the developers or
malicious intervention by a third party as well as the AI itself
unexpectedly contributing to discrimination and increased
poverty.
To develop human-centric AI and implement it into ourSocial Innovation Business, Hitachi drafted and published its
guiding principles for the ethical use of AI.
The principles comprise of three standards of conduct
in planning, societal implementation, and maintenancestages, together with seven items to be observed in all
stages, such as safety, privacy, fairness, equality, and theprevention of discrimination.
By reducing ethical risks hidden in the development ofAI, Hitachi hopes to contribute to realizing a higher quality oflife (QoL) and a sustainable society through the development
and societal implementation of safe and secure, humancentric AI.

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Principles guiding the ethical use of AI:
Standards of conduct (Excerpt)

1. D evelopment and use of AI will be planned for the realization ofa sustainable society
2. AI will be societally implemented in society with a humancentric perspective
3. AI will be maintained and managed to provide long-term value

Principles guiding the ethical use of AI:
Items to be addressed (Excerpt)

1. Safety
2. Privacy
 airness, equality,
3. F
and prevention of discrimination
4. Proper and responsible
development and use

5. Transparency, explainability
and accountability
6. Security
7. Compliance

By publishing a white paper on our activities toestablish AI ethics, we hope to stimulate discussions insociety as a whole. We will continuously review coverage toimprove AI ethics and operations by assimilating the diverse
perspectives of stakeholders.
Principles guiding the ethical use of AI in Social Innovation Business
Hitachi’s Activities for the Ethical Use of AI in Its Social
Innovation Business

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social DataIntellectual Property
Hitachi’s 2021 Intellectual Property Mid-term Management Plan
PolicyIntellectual property (IP) is a key element of Hitachi’s businessstrategy. Hitachi will promote IP activities to create solutions
that enhance social, environmental, and economic value forcustomers in line with the 2021 Mid-term Management Plan,
globally deploy the created IP, and contribute to resolving social
issues related to the SDGs and Society 5.0 through IP activities.
IP activities support Hitachi’s solution creation from theperspective of intellectual property through the developmentof issue discovery and ideation methods making use of IP
information (Patent-thons), along with the implementationof internal incentive measures, and so on. In particular,
looking forward, we will bolster our support of solution
creation that is intended to contribute to the enhancementof environmental value for our customers.

Regarding global deployment of the IP we havecreated, we will contribute to the globalization of Hitachi’sbusiness by strengthening international patent applications(PCT applications) that cover inventions that were developed
through open innovation with our customers and partners in
addition to inventions from our own R&D activities. We will
work to promote further globalization in particular, working
in cooperation with new members of the Hitachi Group,
including Hitachi ABB Power Grids and Hitachi Astemo, etc.
Regarding helping to solve social issues, in fiscal 2019
Hitachi introduced the “IP for society” concept, in which it
promotes the use of IP in certain highly public domains tomaintain and evolve social norms. We will work in cooperation
with external organizations (national and local governments,

To Become a Global Leader in Delivering Enhanced Value Using Intellectual Property

Intellectual Property Division
Value, solutions

Socialvalue

Environmental
value

Economic
value

Social issues,customer issues
Broad businesssector issues

Strengthen global Contribute to social
issue resolution with IP
IP abilities

IP Knowledge
Diverse IP utilization
experience(OT × IT × Products)

IP creation, patenting
abilities

universities, organizations in the United Nations, international
standards organizations, etc.) through the use of IP to makecontributions to businesses aimed at achieving SDGs.

Achievements in and after Fiscal 2020
Regarding solution creation, now that the patent-thons
are mostly established, we are beginning to makecontributions to the creation of high-quality solutions
meant to resolve serious issues. Additionally, awareness of
IP solutions, such as protection, utilization, and appropriate
handling, is seeing improvement due to efforts we aremaking, including education within our organization.
Regarding global deployment of the IP we havecreated, we are working to strengthen PCT applications
suited to the business plans of each sector as weengage in consultations with our various businessdivisions. In particular, the IP departments of both
Hitachi, Ltd. and Hitachi ABB Power Grids are engaged
in discussions regarding global IP activities.
With regard to contributions to resolve social
issues, Hitachi has announced to open its IP concerning
the Mother & Child Health Survey in cooperation
with Hokkaido University, the City of Iwamizawa, andMorinaga Milk Industry Co., Ltd. Looking forward, we willcontinue to consider ways we may be able to contributeto the resolution of social issues utilizing our IP.
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Contents

Introduction

Management

Environmental
SocialInnovation Management

Environment
In fiscal 2021, we newly established an Environmental IP Enhancement Center within theIntellectual Property Division. With it, we have begun considering policies (solution creation
contributing to environmental value realization, construction of IP libraries, etc.) aimed at
improving environmental value from the perspective of intellectual property. With regard to the
IP libraries in particular, our hope is to link the IP we possess internally with the environmental
value the utilization of such IP may bring about to realize visualization of them and promote theiruse both within the company and externally.
In addition, Hitachi has registered the technology for the desalination of seawater to resolve
water-related issues as well as the technology for a type of ink that detects changes in temperatureand then changes color to help tackle food waste issues, with WIPO GREEN a platform forenvironmental technology operated by the World Intellectual Property Organization (WIPO).
Achieving Visualization and Scaling Beyond the Company with IP Libraries that Link IP with Environmental Value

Hitachi’s Environmental Vision
Hitachi Environmental
Innovation 2050

High-speed battery
deterioration diagnosis(Hitachi High-Tech)*¹

Visualization of green
energy*²

Environmental value

Environmental value

Registration

Utilization

IP

IP
Environmental
value

IP

CO2 reduction

IP (A)

High-speed battery
CO2 reduction
deterioration diagnosis

IP (B )

Optimization ofEnergy savings
production management

IP (C)

Solutions
Visualization ofgreen energy

Optimization of
CO2 reductionbuilding management

Constructing IP libraries (ex.)

ScalingEx.: Home appliance recycling(Taiwan)Environmental
value

Scaling

Human CapitalHomeappliance
recycling

Appropriate
registration
WIPO GREEN
in IP
marketplaces (Environmental technology transfer platform)

Human Rights

Assurance

Value Chain Management

Community

Social Data

PolicyUnder the Social Innovation Business, Hitachi has formulated and implemented an IP strategy
that consists of three pillars: competitiveness, collaboration, and society.
The IP strategy for competitiveness is centered on acquiring and utilizing patents and otherIP rights. “IP Master Plans” customized for the nature of each business are formulated andimplemented to enforce competitiveness.
The IP strategy for collaboration is a strategy based on collaboration. As opportunities
for collaborative creation with our customers and partners increase through the use of our IoT
platform, Lumada, we have expanded the scope of our IP activities to include not only copyrights,
patents, and trade secrets but also information assets such as data and information, and areusing IP to promote partnerships and build ecosystems.
Our activities rooted in Hitachi’s “IP for society” concept work to promote the useof our IP in certain highly public domains to maintain and evolve social norms in order tomake contributions to resolving social issues. Through such activities, we will promote theconstruction of ecosystems and build relationships with like-minded companions to contributeto the improvement of social value.
Hitachi Group Codes of Conduct: 6. Protection of Intellectual Property and Brand

OT (Product/O&M)

IP strategy for new era

IT (SI)

Competition stage(Competition)

Collaboration stage(Collaboration)
Close

IP for societyOpen

IP for customer/partner

IP for Hitachi

Hitachi

IP Master Plan

Hitachi

Promote partnership

Enhance competitiveness

HitachiOpen

Design future society/
Progress social modelIoT (Digital Solution)

IP

High-efficiency
seawaterdesalination
systemGovernance

Hitachi’s IP Strategy

IPIP

IP (D)

Contributing to society
Realization of SDGs, Society 5.0, and thecircular economy
Environmental
valueSocialCustomer

CustomerPartnerStandardization
International
Government
University
organization
agencyPartner

Co-creation IP activity*1 PCT application JP2020/028961*2 Patent application 2019-073173

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialInnovation Management

Framework for IP Activities

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Awards for IP

Structure

Activities

We currently have IP offices in the United States (Santa Clara and Detroit), China (Beijing),
United Kingdom (London), Thailand (Bangkok), and Singapore to cover our globalized business.
Furthermore, with the involvement of Hitachi ABB Power Grids, we are accelerating the pace of
globalization with our IP activities, adding operation sites in Switzerland and India.

We are proud of Hitachi’s inclusion in Clarivate Plc’s Derwent Top 100 Global Innovators list forthe past 10 years consecutively.
Organizer

Imperial Invention Prize (top prize) at the

FY 2017

Achievements in Fiscal 2020
The spread of COVID-19 has limited in-person communication. While a variety of issues remain
to be solved, Hitachi has been able to maintain a certain level of IP activity because the majorityof our internal IP activities have been digitized, along with our proactive use of internally-createdonline tools. While our global locations in particular experienced challenging circumstances, withlockdowns, travel restrictions, and so on, Hitachi has continued almost the same IP activities as
before the pandemic through the adoption of working from home and so on.

Reward System for Employee Inventions
We motivate employees in the R&D field with an ample reward system for new inventions. To
make this reward system as fair and transparent as possible, we set standards to evaluate
inventions and disclose these standards to employees. We also have a mechanism for receiving
inquiries about the rewards, as well as opinions on the reward system.
We have established a special department within the Intellectual Property Division to planand operate this system, while an internal Invention Management Committee made up of
R&D, legal affairs, personnel management, and IP experts ensures that the system operates
effectively across the whole Group.
Internal Rewards for Inventors
Invention Information System

System allowing inventors to check the evaluation standards used to
calculate rewards for inventions

Arbitration Committee for Invention
Rewards

Committee to which inventors can appeal if they disagree with theamount they have been awarded

Business Contribution Awards Annual Top 100

President’s awards to the top 100 inventors based on patent rewards received

Patent Contribution Awards Top 50

Ranking of the top 50 young inventors (under 35 years of age) based on
patent rewards received within five years of their joining Hitachi

FY 2018

National Commendation for Invention
Japan Instituteof Invention andInnovation

Object of Award
Inventions concerning
particle beam therapy
systems

The Japan Patent Attorneys Association
Chairman Award at the National Commendation
for Invention

Inventions concerning
x-ray fluoroscopy
systems

Imperial Invention Prize (top prize) at the
National Commendation for Invention

Designs concerning UK
high-speed rail vehicles

Japan Patent Office,Ministry of Economy,
Trade, and Industry

Award from Minister of Economy, Trade, andIndustry at the Intellectual Property Achievement
AwardsExcellent company thatutilizes the intellectual
property rights system

Clarivate Plc

Selected for inclusion in Derwent Top 100
Global Innovators (2021) list (for 10thconsecutive year)

The most innovative
companies andinstitutions in the world

FY 2019

FY 2020

Award

Protecting Our Designs and Brand
Protecting Hitachi’s designs and brand is crucial for promoting our Social Innovation Businessand supporting our global operations. We take resolute measures against such infringements
as making and selling counterfeit goods, copying our designs or carrying the Hitachi brand, andillegally applying for or registering trademarks of such goods.
In recent years, we are taking action to identify counterfeiting networks, whose manufacturingmethods and sales channels have become more sophisticated and diverse. We are also working
with e-commerce site operators on countermeasures against online counterfeit sales.
In 2019, the government of Japan appended the strengthening of countermeasuresagainst counterfeit goods to its action plan regarding SDGs. With the building and improvementof intergovernmental cooperation and relationships, Hitachi is also taking part in joint publicprivate initiatives, including cooperation with the International Intellectual Property Protection
Forum (IIPPF).
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Contents

Introduction

Management

Environmental
SocialHuman CapitalWhy
ー Why it matters ー

Innovation Management

Human Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Relevant SDGs

GRI 103-2

In order to engender innovation and create new value in a global and digital era, Hitachi is working on attracting, retaining, and developing diverse talent and transforming its
organization to drive sustainable business growth. With due attention paid to respecting the rights of employees, equality of opportunity, occupational health and safety, andemployee well-being, we strive to build good relations between employees and the company including providing work environments where employees can feel proud andhappy to work at Hitachi and engaging in active dialogue regarding employee treatment and career advancement.
In recognition of the “new normal” in light of the ongoing coronavirus (COVID-19) pandemic, not only are we promoting diverse working styles as a driver of telecommuting
innovation, in order to improve productivity and allow employees to use their abilities to the utmost, we are also implementing job descriptions, performance management, andother systems to clarify the role of, expectations for, and output of each employee’s position and accelerate the pivot to job-based human capital management.

What

How

ー What we are doing ーGlobal Human
CapitalManagement

Social・Developing global humancapital・Building job-based HR
management

ー How we are doing it ー

Policy andpromotion structure

Achievements in Fiscal 2020

・Ensuring fair evaluationand compensation
・Fostering "I will" mindset
and corporate culture・Supporting new work
styles for the postpandemic new normal

The Hitachi Group aims to achieve a high level of employee engagement across its companies worldwide. We are striving
to create an environment that maximizes the value our diverse pool of human capital can provide. Accordingly, we are
implementing global human capital management to ensure effective hiring, promotion, and development of human resources.

Announced an accelerated shift to job-based human capital management

Implement global humancapital management tohire, promote, and develop
diverse human capital

Expanded the use of people analytics at business divisions in Japan, which enables data on employee awareness and behavior to be utilized for
HR and executive management measures
Conducted a global employee survey (number of respondents: approx. 180,000; survey response rate: 90%; response results: scores improved
again in all categories)
Supported new work styles for the post-pandemic new normal

Promote employee mindset reform to Held an employee idea contest project called “Challenge to COVID-19” (number of ideas submitted: 1,430)
foster more independent human capital
Introduced a new social contribution scheme in which employees and the company work together
with an awareness of the individual

What

How

ー What we are doing ーTalentDevelopment

・Securing and fostering humancapital capable of creating value

ー How we are doing it ー

Policy andpromotion structure・Developing managementlevel leadership
・Developing digital talent・Utilizing a learning
management system

Hitachi aims to develop human capital who can help solve social issues. In addition to workplace learning, we are promoting
training to enhance the individual abilities, skills, and expertise of employees worldwide.
Achievements in Fiscal 2020

Develop managementlevel leadership

Number of participants of Global Management Training Programs: 3,559
Moved all management training online (target group: management-level)

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Digital talent: Approx. 35,000 (as of the end of fiscal 2020)
TargetDevelop digital talentOver 37,000 employees by fiscal 2021

Number of data scientists: Approx. 3,000 (as of the end of April 2021)
Target3,000 employees by fiscal 2021

Achieved ahead of schedule in April 2021

Established a training system for digital transformation (DX) and a range of digital talent training programs targeting different positions

What

How

ー What we are doing ーDiversity andInclusion・Integrating diversity andinclusion into businessstrategy・Accelerating HitachiGroup initiatives
worldwide

ー How we are doing it ー

Policy andpromotion structure

Accelerating efforts to deliver on the Hitachi Diversity & Inclusion Statement, we appointed our first female executive officer,
Lorena Dellagiovanna, as Chief Diversity and Inclusion Officer (CDIO), to lead initiatives worldwide. The Sustainability
Strategy Committee is made up of Hitachi executives, and its role is to determine strategies to implement across theentire Group. We have also established a Diversity Development Council in partnership with the HR departments of groupcompanies from Hitachi, Ltd. and major Group companies.
Achievements in Fiscal 2020
Ratio of female executive and corporate officers: 10.1%

Promote diversity among
executives

Target

10% by fiscal 2020, Achieved in April 2021 , 15% by fiscal 2024, and 30% by fiscal 2030

Ratio of non-Japanese executive and corporate officers: 11.6%
Target 10% by fiscal 2020, Achieved in April 2021 , 15% by fiscal 2024, and 30% by fiscal 2030
Number of female managers at Hitachi, Ltd.: 800 (as of October 2020)

Women’s empowerment

Target

800 managers by fiscal 2020 (double the number in fiscal 2012) Achieved ahead of schedule in October 2020

The CDIO participates in Talent Committees and discusses development of future leaders from the perspective of diversity
Mentoring of female management candidates by the CDIO

Inclusion of people withdisabilities

Member of The Valuable 500—an international movement to promote the advancement of people with disabilities.
Employment rate of people with disabilities at Hitachi, Ltd. 2.37% (Legally required employment rate: 2.3%)

What

How

ー What we are doing ーWork-LifeManagement

・Promoting work-life reform・Enhancing work-life
management support
systems

ー How we are doing it ー

Policy andpromotion structure

We believe that practicing work-life management will enrich employees’ work and private lives, enhance professionalism, andbuild personal character resulting in both individual and organizational growth over the long term. Based on this philosophy,
we have established systems to support work-life reforms and a balance between employees’ work and private lives.
Achievements in Fiscal 2020・Developing support
systems that meet diverse
employee needs

Adopted a remote and satellite office work system (Coverage: About 95% of all employees)

Promotion of work-life
management

Enhanced measures to support employee work-life balance such as establishing a consultation and support service for employees providing
long-term home care to a family member
Financial support for purchase of telecommuting equipment

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Contents

Introduction

Management

Environmental
SocialInnovation Management

What

Occupational
Health and
Safety・Preventing work-related
accidents

Human Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social DataHowー What we are doing ー・Establishing occupational
health and safety
management systems

Socialー How we are doing it ー

Policy andpromotion structure

・Providing support forstaying mentally andphysically healthy

The Hitachi Group Health and Safety Policy is shared with employees worldwide. We make efforts to create safe, secure andhealthy workplaces that are accident-free. Hitachi, Ltd. has built an organization in which employees can promote safety
activities of their own accord. To support this, we established a Safety Management Division that reports directly to thepresident. In fiscal 2021, this division was reorganized as the Health and Safety Management Division. The new organization
will help strengthen global Group-wide initiatives and promote integrated management of both occupational safety and health.
Achievements in Fiscal 2020
Number of fatal accidents (Hitachi Group): 3, Number of fatal accidents (Hitachi, Ltd.): 0

Prevent work-related
accidents*

TargetTargetEmployee healthpromotion0

Number of lost-time accidents (Hitachi Group): 314; Number of lost-time accidents (Hitachi, Ltd.): 4
198 which is half the number recorded in 2019 (Hitachi Group); 3 which is half the number recorded in 2019 (Hitachi, Ltd.)

Percentage of stress-check participants deemed to have high stress: 11.6%
Specific health guidance implementation rate: 27%* Data based on calendar years (January to December)

What

Freedom of
Association
and Collective
Bargaining

Howー What we are doing ー・Respecting the rights of
employees
・Fostering employeemanagement dialogue

ー How we are doing it ー

Policy andpromotion structure

The Hitachi Group Codes of Conduct call for the upholding of the fundamental rights of employees in line with theprinciples of the United Nations Global Compact. We also actively pursue dialogue with individual labor unions and theirrepresentatives in accordance with the laws and regulations in each country and region to deepen mutual understanding of
employee working conditions and treatment as well as business conditions.
Achievements in Fiscal 2020

Japan: Held Hitachi Group management meetings four times (once a quarter)
Deepen mutual
understanding through
China (Hitachi China): Held management information round-table meetings with labor unions
dialogue between employees
and management
Europe (Hitachi Europe): Held annual labor-management meeting

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Contents

Introduction

Management

Environmental
SocialGlobal Human Capital Management

Innovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

GRI 404-2

Developing Global Human Capital
Approach

As an innovation partner in the IoT era, Hitachi is developing
its Lumada-based Social Innovation Business worldwide,with the aim of becoming a global leader in this field.
In order to realize this management strategy, we mustsecure, assign, and develop the best human resources forthe job regardless of their nationality, gender, or age. They
must be able to promote global projects together as“One Hitachi.”
Furthermore, in order to accurately ascertain thechallenges faced by society and customers and to propose
innovative solutions, we must foster an employee mindset
that encourages operating proactively and independently
while sharing ideas with society and customers. Fosteringa corporate culture to support this is also an issue for theGroup’s human capital management.
As a global human capital management measure,
Hitachi is putting a lot of effort into the proper hiring,promotion, and development of global human resources.
This can be seen with the launch of a shared worldwide HR
evaluation system and a leadership development program.
In addition, as a way of integrating the various existingmeasures for the management of global human capital,
we have built a platform containing an array of information
about the skills, career orientations, and other aspectsof our human capital. We use the platform for globally
optimized placement, identifying and nurturing management

leaders of the future, and strengthening manager employee
communication.
Hitachi’s 2021 HR Strategy, based on its 2021 Midterm Management Plan, is designed to allow the company’s
diverse global team to grow through their work, feel proud
and happy about working at Hitachi, respect diverse values,and contribute to the creation of safe and vibrant workplaces
each in their own way. To this end, we are advancing avariety of enhanced measures around the four key conceptsof Talent, Culture, Organization, and HR Transformation.
Meanwhile, in anticipation of a new normal in the
post-pandemic world, we are accelerating the transition
to working from home as a standard workstyle for a wide
range of duties. Hitachi will also further diversify its employee
workstyles by using work from home as a driver for change.
In addition, the Hitachi Group has been updating its
job descriptions with the aim of fully utilizing the capabilities
of employees and further improving overall productivity. We
are moving toward job-based HR management by clarifying
the role of, expectations for, and output of each employee’s
position. This includes the creation of performance
evaluation systems.

Main Enhanced Measures of the 2021 HR Strategy
Four Key Concepts of the HR
Strategy

Main Enhanced Measures
Toward Fiscal 2021

TalentDevelop digital talent*1
Develop the mindsets and skills
to become global leaders
Promote diversity and inclusion*2

Attract, retain, and develop diverse
talent to lead business growth

CultureTransform organizational culture andemployee mindsets to encourage
proactivity and individual growth

Organization
Reform the organization andtransform employment policies
to adapt to environmental
changes; take action onorganizational reshuffling

HR Transformation
Transformation

Build Hitachi culture globally*3
Foster a culture of careerownership

Ensure safety, health, andcompliance*4
Build job-based HR
management*5
Ensure steady integration of
Hitachi ABB Power Grids
Execute HR transformation,
promote digital HR
Implement HR careerdevelopment and mindset
transformation＊1

P102 Developing Digital Talent＊2

P105 Diversity and Inclusion＊3P009 Solidifying the Hitachi Group Identity＊4

P114 Occupational Health and Safety＊5

P095 Developing Global Human Capital

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Developing Global Human Capital
Structure

In the past, Hitachi developed separately optimized HR
systems and measures for each Group company operating
outside Japan. With the aim of creating organizations thatcan succeed globally, we began building a global humancapital management platform in fiscal 2012.
While digitizing human resources information for
approximately 250,000 Group employees worldwide to
get an overall picture, we started by selecting 50 leader
candidates from among the Group’s young talented
employees who can support Hitachi’s global growth. This
launched the “Future 50” program to develop future leaders.
In fiscal 2013, we conducted an employee survey (Hitachi
Insights) and rated 50,000 manager positions worldwide as

Hitachi Global Grade (HGG). The information was then utilized
for the implementation of Global Performance Management(GPM) in fiscal 2014, which links the career goals of
individual employees to business areas in the Group. Hitachi
University was launched in fiscal 2015 as a management
learning system for the entire worldwide Group. Also in fiscal
2015, we introduced a worldwide integrated platform forhuman capital management as a way to integrate the global
human capital management measures already introduced,
and its scope is gradually being expanded.
Hitachi will continue to enhance its corporate value
by improving its human capital management systems andenvironments, and by utilizing HR technology and data.

Global Human Capital Management
FY

2012

FY

2013

FY

2014

FY

2015~

Global Human

Hitachi Global Grade

Global Performance

Global education platform

Capital Database(HGG)

Management (GPM)（Hitachi University）

Database creation for Approx. 250,000
people’s human capital information

Grading of 50,000 positions worldwide
from manager level and above

Implementation for 112,000 people (withphased expansion of implementation)

Introduced new learning system to
300,000 people

Selection/development of

Global Employee Survey

Amended compensation for manager

Global integrated platform for

global leaders(Hitachi Insights)

level and above (Japan [Hitachi, Ltd.])

human capital management

Selection/ development of around
500 people with top-level global
talentApprox. 682 participant
companies worldwide
Approx. 177,940 respondents(Response rate: 86%)
Provided in 11 languages

Phased expansion of linkage
between HGG and GPM
Excluding seniority-based portion
for manager level and above
Toward job-based compensation

FY 2015 Test implementation
FY 2017 Implementation in JapanFY 2020 153,000 people
FY 2021 224,000 people

We aim to create an environment that can maximize each
employee’s human resource potential.
 hared Global Foundation for Group-wide Human Capital
S
Management
Global Human Capital

Plan to transfer control of the functions

Databaseto Global Human Capital Management
Integrated Platform from 28 July 2021

Hitachi Global Grade(HGG)

To evaluate the role and responsibilitiesof each position by the unified standards
shared by the entire Group

Global Performance
Management (GPM)

To align business and individual objectives
and promote sustainable improvement
and growth of both individuals andbusinesses

Global Leadership
Development

To clarify human capital requirements forkey management positions and identify
and develop candidates for management
leadership from around the world

Hitachi University

A management learning system sharedglobally by the entire GroupP101 Talent Development

Integrated Platform
for Human CapitalManagement

An integrated platform for global humancapital management and management
measuresPhased implementation of human capital management platform shared globally by the entire Group
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Contents

Introduction

Management

Environmental
Social

Hitachi Global Grade (HGG)
In order to promote business strategy by utilizing diverse
talents, job and task-oriented talent management isneeded. Hitachi Global Grade (HGG) is one way to realize
this. This system has been adopted for all positions in all
our organizations worldwide. The system consists of nine
grades, and each position is evaluated based on the global
common standards of the entire Hitachi Group.

SocialInnovation Management

Human Capital

Governance
Human Rights

Supervisors provide coaching and feedback to theirstaff to help them achieve their targets. They encouragecontinuous performance improvements which lead to themedium- and long-term development of employees.
By clarifying the skills and behaviors that individuals
need to demonstrate, while explaining how their actions
contribute to the success of the business, we cultivate
employee fulfillment at work and encourage employees totake ownership over their work and self-development.

Global Performance Management (GPM)
Global Performance Management (GPM) forms thefoundation for business management and performanceenhancement with the aim of promoting the sustainablegrowth of organizations and individuals.
There are five items that are particularly important for Hitachi
to become a global leader in the Social Innovation Business.
They have been set as common competencies (behaviors) for
the Hitachi Group and are applied to all employees.

Common competencies of Hitachi Group
Competencies

Common Definition

Safety & Integrity

Be bold to do the right thing for yourself andothers.

Challenge(Pioneering spirit)

Be agile, and learn from failures to succeed.

Customer Focus(Sincerity)

Empathize with customers, and collaborate tocreate innovation.

Collaboration(Harmony)

Speak up and listen respectfully to others.

GrowthBe hungry to grow yourself, other, and theorganization.

Integrated Platform for Human Capital Management
The Hitachi Group has adopted a worldwide integrated
platform for human capital management. In order toconsolidate its global human capital management practices
and policies, we have accumulated a massive amount of
information about our talent, including their professional skills
and career preferences, into process and a database.
Up-to-date information about our talents is always

Value Chain Management

Assurance
Community

Social Dataavailable on this cloud-based platform which enables
authorized employees to access it from their PCs or smart
devices at any time.
This platform gives us the power to search our talents
Group-wide and globally when launching new projects,
gathering talent information, as well as utilizing that
information to manage the team. Moreover, by having all
talent data on one platform, various but correlated processes
such as performance management, development planning,and career plans can be efficiently managed together on thesame system.
Since the pilot program in fiscal 2015 and full-scale
adoption by Hitachi, Ltd. in fiscal 2017, the platform iscurrently being expanded to Group companies worldwide.

Integrated Platform for Human Capital Management

Managers

HR Division

Organizational restructuring/humancapital placement

Training/learning

Performance

Evaluation/compensation

Cultivation plan

Career Development

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialTransformation to Job-Based HR Management
Approach

SystemActivities

In anticipation of the new normal of a post-pandemic world,in May 2020, Hitachi began promoting new workstyles
with telecommuting as a standard option for a wide rangeof duties. In addition, we announced an accelerated shift
to job-based HR management. This involves clarifying theduties and necessary skills and experience and assigninghuman resources based on their desires and abilities toperform the required duties.
In order for the Hitachi Group to expand its Social
Innovation Business worldwide, we need diverse and selfmotivated human resources to fully utilize their uniquepersonal strengths and abilities. Through job-based HR
management, Hitachi can assign the right people to the rightjobs according to their personal abilities and motivations,regardless of their attributes such as nationality, gender,or age. The aim of our job-based HR management is to
produce organizations and human resources that generateinnovations by maximizing individual and organizational
performance and by improving mutual engagement.
To achieve this, Hitachi, Ltd. has been devising ways
to make its jobs and human resources more visible.
Specifically, in fiscal 2020, we adopted a talent review
system to investigate placement and training based oneach individual’s aptitude and career goals. In fiscal 2021,
we introduced formal job descriptions. While continuing
discussions with the labor union, we have also focused on
employee communication to help them recognize the needfor job-based HR management and to update their thinking.
As a result, the majority of Hitachi, Ltd. employees now
understand the need for job-based HR management.

Innovation Management

SocialHuman Capital

As part of these efforts, Group companies in Japanare undertaking initiatives such as the adoption of formal
job descriptions and promoting internal communication
to help employees recognize the need for job-based HR
management and to help change their ways of thinking.
By transforming to job-based HR management, Hitachi
wants to enhance employee self-motivation, create a stronger
sense of unity between the company and its members, andpromote both personal and organizational growth.

Ensuring Fair Evaluation and Compensation
SystemWe believe that a fair global system of employee evaluationand compensation is essential for attracting diverse andhighly engaged human capital regardless of nationality.
Accordingly, we have established a Global Compensation
Philosophy shared by all Group companies based on theprinciples of ensuring market competitiveness, paying basedfor performance, and maintaining transparency.
We have developed a performance-based
compensation system for regular employees that is fairand competitive in the context of the labor market for eachnational or regional industry. Each employee’s compensation
is based on an annual performance review. Feedback on
this review is also provided as fuel for further development.
We ensure compliance with the laws and regulationsof each country and region in which we operate when
determining compensation. In Japan, which accounts forabout half of the Group’s regular employees, starting pay
for new graduates is roughly 20% higher than the weighted
average of Japan’s regional minimum wages (as of April
1, 2021).

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Promoting People Analytics
Activities

Hitachi’s People Analytics initiative involves gathering andanalyzing data about regular employee awareness andbehavior and putting it to use in human resources andmanagement policy.
Quantifying the effect of human resources initiatives has
always been difficult. Evaluations have tended to be basedon the experience or intuition of the evaluator. However,with People Analytics, which uses IT such as AI and data
analysis, optimal initiatives based on objective indicators
and analysis can be promulgated. Not only does this allow
human resources departments to follow the development ofeach and every individual employee, it can also contribute to
management by activating human capital.
In concrete terms, this means conducting a survey
based on a unique psychological analysis developed
under the academic guidance of the University of Tsukuba
and then making use of AI in analyzing the awareness of
individuals, job assignments, and behavioral data arisingfrom the survey’s results. This makes it possible to provide
individual employees with insights that encourage a change
in behavior, streamline human capital placement, andotherwise formulate more effective and precise humanresources initiatives.

Achievements in Fiscal 2020
In fiscal 2020, Hitachi launched this unique survey
and its analytics at business divisions in Japan. In
addition, we have drawn up a project roadmap andglobal priority initiative themes to promote People
Analytics across the entire Group.

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Contents

Introduction

Management

Environmental
SocialConducting a Global Employee Survey

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Fostering the “I Will” Mindset as Part of the
Corporate Culture (Mindset Reform)

Activities

Employee engagement*1 has always been critical to
Hitachi’s people practices and thus the Global Annual
Survey – Hitachi Insights is one of the programs that
Global HR runs to measure engagement across the HitachiGroup companies. In September 2020, the survey wasadministered for the eighth time in 14 languages and around
200,000 employees worldwide were invited to participate
with 180,000 responding. This response rate of 90% was
the highest since its launch in 2013. We continue to see
the trend of increases across all the categories with an
overall approval rating of 64% (3% higher than last year
and 10% higher than 2013). The engagement indicatorscore was 62% (2% higher than last year and 9% higher
than 2013). Hitachi continuously aims for further enhancing
the level of engagement by communicating the results andtaking concrete actions through the PDCA cycle by senior
management and managers.

Approach

Activities

In order to promote the Social Innovation Business that
Hitachi is striving to build, employees need to generateinnovation by demonstrating creativity and a desire to takeon challenges. Therefore, we need to transform the mindsetsof employees so that they will take the initiative to act on
their own. Hitachi recognizes the diversity and independence
of individual employees. We will create an organizational
culture that makes the most of individuality thereby fostering
individuals who take the initiative and develop and support
individuals who demonstrate career ownership.
Employee support is being expanded for personal
development including customized benefits under the
Cafeteria Plan and recommendations relating to materials for
self-development. We are also continuing to provide regulareducation so that each employee can acquire the skills
they need.

*1 Employee engagement: Hitachi uses the term “engagement” to refer to
employees’ understanding of the company’s strategies and policies as well as
their job satisfaction and desire to take actions on their own initiative to bringabout results.

Number who took
Global Employee
SurveySurvey response rate

180,000

Approx.

people90%
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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Promoting the “Make a Difference!” Idea Contest
Activities

Hitachi believes that changing the awareness of eachand every employee is necessary for achieving thecorporate reforms needed to steadfastly uphold our
medium- to long-term vision. We therefore launched
the “Make a Difference!” idea contest for all employees
around the theme of the “I will” mindset. This isdesigned to encourage participants’ growth not only
through a change in perspective as their ideas arelinked to real experience in creating new businesses
but also by providing an opportunity for employees tothink for themselves, make decisions, and see a projectthrough to completion. From prize-winning ideas, actual
businesses have been born.
In fiscal 2020, we also used the platform of “Makea Difference!” to gather ideas globally across the Groupfor new workstyles or ways Hitachi employees could
come together as one and contribute to society byhelping solve challenges related to the pandemic. This
project entitled “Challenge to COVID-19” attracted
some 1,430 ideas from around the world.
After reviewing the ideas, we summarized themost outstanding ones into 16 themes, and proceededwith investigating how to implement them as aGroup-wide activity. For one of the specific social
contribution activities, Hitachi provided one million

Microfunds a nonprofit organization in the United States.
And to increase the interest in science among children
around the world, Hitachi High-Tech launched an initiative
to provide new online learning classes. It is based on thescience education support activities that the company
has been carrying out using its own tabletop scanningelectron microscopes. In the area of new workstyles, wehave gathered many ideas involving paperless offices,
digitization of personal seals, and improvement of thetelework environment. These are now being promoted
under the SMiLE*¹ for Work Innovation Project formed forthe purpose of realizing new ways of working at Hitachi.
Specifically, Hitachi has set reduction targets for achieving
paperless offices and is revising business processes andestablishing document storage rules. Moreover, we arepromoting a plan to completely abolish the use of physicalname seals for internal purposes by the end of fiscal 2021
and are switching to online document processing systems.
We have also been coordinating with external partners to
adopt electronic seal systems for documents, and we havestarted using electronic signature services for sales andprocurement operations in the second half of fiscal 2020. To
improve the telework environment, we began providing new
laptop computers to employees in January 2021. These
devices are less likely to cause communication delays and

US dollars in loans to small businesses that havebeen impacted by the pandemic worldwide. Thiswas done through the crowd funding platform Kiva

they minimize the risk of data leakage in the event of loss
or theft. Full-scale deployment of the computers began in
March 2021. Some of the selected innovative ideas involved

utilizing the benefits of Hitachi technology and included
ideas that we had already started putting into practicaluse. Examples of these are a solution for being able towalk through buildings operated by touchless systems
in order to prevent the spread of infection and a sensorbased solution for reducing infectious disease risks.
Going forward, Hitachi will continue to foster an “I will”
mindset among employees through the activities of
the “Make a Difference!” idea contest. We will work torealize new outstanding ideas that contribute to society.
*1 SMiLE: Styles & Methods Innovation, Lead Enablement

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

New Workstyle Measures for the New Normal in the Pandemic
Introducing a New Social Contribution
Scheme Enabling Hitachi and Its
Employees to Make Donations Together
Activities

In fiscal 2021, the Hitachi Group introduced
a social contribution scheme through which
donations made by employees in response todisasters, accidents, disease outbreaks, and so on
will be matched by the Group in full. This scheme
will serve to provide support for employees who
proactively engage in social contribution efforts byselecting donation recipients experiencing social
issues in multiple numbers and across multiple
countries. Participating in social contribution
activities together with our employees in this way
will serve to increase employee engagement as wellas promote the embodiment of the Hitachi Group
corporate credo and further solidify the HitachiGroup identity. In fiscal 2021, the Group plans tomatch donations up to approximately 30 million yen
starting with India, where the spread of COVID-19
has become more severe, and expanding to othercountries facing a range of different social issues in
the future.
P142 Social Contribution Activities

Approach

Activities

During the COVID-19 pandemic, ensuring the health andsafety of all employees is our highest priority as supporting
and we strive to prevent the spread of the virus. As wellas promoting telecommuting for, in principle, all positions
except those requiring a physical presence for society tofunction, we are undertaking initiatives to protect employees
from infections and support telecommuting. With the
evolving diversity of our employees' work styles, we arefurther promoting the creation of a rewarding workplace

where each employee can play an active role.
COVID-19’s impact is global, and our countermeasuresin each region are informed by the conditions at regional
headquarters. Hitachi Europe asked telecommuting
employees what they needed, and developed an action
plan to provide it. At Hitachi India, an e-learning course on
COVID-19 was created and shared to raise awareness ofthe virus and how employees can prevent its spread.

Hitachi, Ltd.’s Main Measures Supporting New Workstyles for the New Normal

Support based on
immediate risk ofinfections

Main policies
for supporting
medium- tolong-term
telecommuting

Financial support for purchases necessary to
prevent infections¥3,000 per month per person is provided toward the cost of telecommuting or
if working at the office for masks, disinfectant, etc.

Financial support for the purchase of
telecommuting equipment

Financial support for the purchase of IT devices, work desks, chairs, and otherequipment for telecommuting

Establishment of a Novel Coronavirus
Countermeasure Allowance

For employees who work in environments where risk of infection is thought to behigh, an allowance of ¥500 to ¥1,000 per day depending on the level of risk

Deployment of Inbound Medical Assistance
Services for foreign employees working in
Japan

In addition to a 24-hour year-round call center offering medical assistance in
16 languages for foreign employees and their families in Japan, referrals andappointments to medical facilities and arrangements for emergency transportand hospitalization, translation via telephone, and other services are provided.

IT environment improvements

Development of remote access environments, provision of PCs with advanced
data security (volatile memory), and delivery of notebook computers anddisplays to employee homes, etc.

Appropriate health support for long-term
telecommuters

Remote counseling by occupational physicians and other medical staff, provision
via intranet of information for staying mentally and physically healthy, etc.

Provision of communication activation tools

Using Hitachi’s unique Happiness Level, which measures people’s feelings ofcontentment, to stimulate communication

P122 Helping to Protect Employees Against COVID-19
P145 Hitachi Group’s COVID-19-Related Support Efforts
P178 Responding to COVID-19

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Contents

Introduction

Management

Environmental
SocialTalent Development

Approach

Hitachi has traditionally placed great emphasis on developing
talent, including the establishment of the ApprenticeshipTraining School, a predecessor of today’s Hitachi Industrial
Skills Academy, in 1910, the year of Hitachi’s own founding.
The pedagogical principles established in 1959 as our
Educational Guidelines emphasized the spirit of yūeki(guidance through assistance) and jikyō (endeavor throughone’s own efforts).
That spirit has been maintained to the present day. In
addition to on-site training through work tasks, we are also
expanding training programs globally across the Group to
improve individual capabilities, skills, and specialties. We willcontinue to support the growth of each and every individual
employee with the goal of developing employees who cancontribute to resolving social issues.

Securing and Developing Human Resources
Who Create Value
Approach

Human Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

GRI 404-2

Hitachi’s Approach to Talent Development
PolicyInnovation Management

SocialActivities

By utilizing People Analytics, Hitachi is expanding the hiringof value-creating human resources. These individuals cansolve not only problems given to them but also identify otherissues faced by customers and thereby provide added value
to them. Once these human resources are hired, we focus
on training them to become employees who can take thelead in changing and transforming Hitachi.

Management-Level Leadership Development
Approach

Activities

Hitachi believes that innovation in talent management toresolve the diverse challenges of global society is essential
to increasing social, environmental, and economic value
making it vital to develop the management-level leadership
who will drive this innovation and change. For this reason,
we approach management-level leadership development as
a medium- to long-term initiative with top management andthe Nominating Committee playing a central role.
When developing candidates for appointment in thenext and subsequent term to executive positions including
CEO, CXO, and division heads several hundred candidates
are selected from the Hitachi Group’s human capital aroundthe world and given both on-the-job training (OJT), including
stretch assignments, and off-the-job training (Off-JT) such asexternal training and coaching.
We also select around 50 outstanding emerging
employees as future candidates for management-level
leadership as members of the “Future 50” program. By
giving this Future 50 tough assignments and opportunities
for direct discussions with independent directors, we
accelerate their development with focused educational
activities.

Global Management Training
SystemActivities

We are globalizing our talent development programs inaccordance with our global talent management strategy todevelop management-level human capital.

Achievements in Fiscal 2020
In fiscal 2020, the pandemic made it difficult to
conduct in-person group training. Therefore, we
devised online group training for senior management
leaders in different locations and were able to provide
continuous training in this way.
The Global Group Executive Development
Course (Global GEC) is for new leaders of Hitachi
subsidiaries outside Japan including the executives of
the new Group company, Hitachi ABB Power Grids.
This e-learning course, attended by 33 people infiscal 2020, brings a basic understanding of Hitachi’s
management and provides the latest information foradvancing our Social Innovation Business. We arecontinuously creating new programs to develop talent.

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialManagement Training Currently Offered Globally

Innovation Management

SocialHuman Capital

Developing Digital Talent

Global Leadership
Acceleration Programfor Key Positions(GAP-K)

Selective training is held for three months
to accelerate the development of future
management candidates. It is conducted
online and connects participants fromall over the world. It is attended by 27
people from eight countries.

Global Advanced
Program for
Leadership
Development (GAP-L)

It is held twice a year with the aim ofdeveloping the superior leadership,mindset, and skills necessary to drive
Hitachi’s global development. It is
attended by 51 local leaders from 14
countries that are expected to perform
well in overseas subsidiaries.

Global Leadership
Acceleration Programfor Managers(GAP-M) Ready to
Lead (R2L)

It is leadership training with globallyunified content for general managers
and new managers. It is held in eightregions and attended by 2,700 people.

Number of Participants of Global Management Training Programs

Approach

Goals

SystemTo accelerate our Social Innovation Business using digitaltechnologies, we are working to develop human capital thatcan lead a digital transformation (DX). We are increasing theamount of digital talent across the entire Hitachi Group fromapproximately 30,000 employees in fiscal 2019 to 37,000
in fiscal 2021. In fiscal 2020, there were approximately
35,000.
In April 2021 we achieved ahead of schedule ourfiscal 2021 goal of 3,000 data scientists with specialist
knowledge of data analysis including AI, IoT, and theutilization of big data. Hitachi will continue to expand its
digital solutions globally.

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Achievements in Fiscal 2020
Aiming to further develop and strengthen our digitaltalent, we consolidated our various training institutes
into the Hitachi Academy in April 2019 and are
currently constructing a training system for developing
human capital to drive digital transformation. In fiscal
2020, we continued to maintain a training systemfor digital transformation and a range of digital talentskill training programs targeting different positions
and focusing on developing digital talent in order toaccelerate our Social Innovation Business. We also
hold basic training programs on digital transformation
throughout the year to raise the level of digital literacy
for the entire Hitachi Group in Japan.
Through a development policy that combines
the knowledge and skills obtained by participating in
training with OJT, we will strengthen our digital talentdevelopment with broader fundamental training andspecialist development.

(people)

5,000
4,000

3,530

3,821

3,844

4,063

3,559

Number of Data Scientists in the Hitachi Group
Achieved ahead of schedule

3,000(people)

2,000

3,000

1,000
0

Approx. 3,000
Goal of FY 2021

2,500

2016

2017

2018

2019

2020 (FY)

Approx. 2,000

2,000
1,500
1,000

Approx. 1,000
700

500
0

June 2018

April 30, 2019 April 30, 2020 April 30, 2021 End of FY 2021

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Contents

Introduction

Management

Environmental
Social

Hitachi University (Learning Management System)
Activities

Hitachi University is a global learning platform in which all
Hitachi employees and managers can register and takenecessary training in a timely manner to develop theirbusiness goals and future careers. This platform supportsbusiness line managers to grow businesses through thedevelopment of talent. In addition, the HR department
utilizes training transcripts to implement effective talentdevelopment measures.

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Career Development Support in Japan
Activities

Hitachi has developed a broad range of career development
support that focuses on “internal careers,” namely,
employees’ individual values and rewarding activities, aswell as their views on the meaning of their work. By ensuringthat individuals can fulfill their potential and maximize
their creativity, and by linking individual growth to positive
outcomes and growth for the organization, we enhance ourcorporate value. Along with promoting self-understanding
and fostering strong individuals with autonomy to think andact for themselves, we are also providing support to createa framework that will capitalize on the engagement andmotivation of individuals and enhance mutual understanding
as a way of fostering the teamwork needed to enhanceorganizational strength and performance.
Recognizing the importance of maximizing individualand organizational performance as we seek to becomea major global player, we implement Global Performance
Management (GPM) grounded in diversity and the individual
thereby promoting career development with respect for each
employee’s individuality and personal aspirations.
In concrete terms, based on the idea that the foundationof career development is the work that each employee
performs daily in the workplace, we implement a cycle
aimed at the growth of each employee through a process
in which goals for daily tasks are set and then pursued andfollowed by evaluation of the results to formulate the next
objectives. We established the GPM program which includes
the following initiatives.

Global Performance Management

Performanceplanning

Career interview

After consulting with their supervisors to reach aconsensus on short-term objectives, employees
work with supervisor guidance and support.
At the end of the fiscal year, they consult withsupervisors on whether these objectives were
met and set new ones for the next fiscal year.
Regular employees meet with supervisors
to discuss medium- and long-term careerplans regarding such matters as requests fortransfers or overseas postings.

We also provide direct support for individual careerdevelopment through a career development program that
supports workplace communication. This program is the
Hitachi Career Development Workshop (H-CDW).
Through self-analysis work, participants consider the
direction they should proceed in, their career goals, andtheir career path, and then engage in self-directed efforts todevelop their career and abilities. Around 14,500 people haveparticipated in the program so far (as of March 31, 2021) with afocus on technicians, managers, and researchers in their thirties.
In addition to those programs, Hitachi also offers programs
targeting specific age groups such as career education foryoung groups and training for middle-aged or older groups tohelp them prepare for the changes ahead in their careers.
We also operate a Career Consultation Room as part ofour personalized career development support. At the Career
Consultation Room, employees can speak with professionalcounselors about any challenges they have regarding theirwork, their career, or interpersonal relationships in order tohelp them find a solution.
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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Initiatives at Regional Headquarters to Develop Employee Skills
Hitachi is a company with global operations, so its skills development programs are implemented primarily by its regional headquarters in keeping with the focus of each region’s business operations andcultural environment. Through these efforts, we seek to identify and nurture the human capital who will become Hitachi’s leaders globally across the Group.

Hitachi America, Ltd.
For employees in the Americas aspiring to become global leaders, Hitachi University’s
global learning platform is used alongside a global management training program. HR
business partners work with managers at Hitachi Vantara Corp.—the core of Hitachi’s
digital solutions—to assess employee skills and capabilities while helping employees set
and achieve their personal goals.

Hitachi Asia Ltd.
A regional program to enhance the knowledge and skills needed to grow Hitachi’s business in
Asia is being implemented in addition to making full use of global management training courses
and an e-learning platform for general employees. Training roadmaps to develop employee
knowledge, skill sets, and competencies are created to achieve optimal work performance.

Hitachi Europe Ltd.
Employees across Europe can develop their skills through classroom lectures and online classes
enabling them to acquire professional qualifications in cultural awareness, presentation skills, andIT desktop skills. Global management training and other programs bring together Hitachi leadersin Europe which helps to build an important network in support of “One Hitachi.”

Hitachi India Pvt. Ltd.
The L&D Committee consists of senior executives and meets twice a year to discuss training
programs. Employees are encouraged to build skill sets by making full use of global management
training courses and the e-learning platform for general employees. Along with the adoption of
telecommuting as a measure to deal with the COVID-19 pandemic, employee training was also
moved online. As a result of preparatory learning by participants and follow-up sessions at theoffice, the training proved to be even more effective than initially anticipated.

Hitachi (China) Ltd.
The growth of all employees is promoted through a training system catering to different levelsof development which enables workers to develop the specialized and comprehensive skills
they need to perform their jobs. In addition to global training through Hitachi University andan e-learning platform for general employees, the company provides specific content to allow
employees to acquire the skills and knowledge required for business activities in China.

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Diversity and Inclusion
Toward Achieving Diversity and Inclusion
PolicyAt Hitachi, Diversity and Inclusion matter as they are a
crucial component to build innovation, growth, and a longterm sustainable business. The Statement on Diversity andInclusion was created to demonstrate our commitment.

Statement on Diversity and Inclusion
Diversity and Inclusion Open Our Future
Diversity is the wellspring of our innovation andour growth engine. Hitachi regards personal
differences such as gender, nationality, race,
religion, background, age, disability, and sexual
orientation, as well as other differences as facetsof people’s individuality. By respecting our
employees’ individualities and positioning themas an advantage, Hitachi frames its diversity andinclusion as conducive to both the individual’s andthe company’s sustainable growth. With a diverse
workforce, strong teamwork, and broad experiencein the global market we will meet our customers’
needs.

Diversity and Inclusion Integrated with Business
Strategy
PolicyHitachi has positioned Diversity and Inclusion as part of its
management strategy, and embraces all aspects of Diversity
included in the Statement on Diversity and Inclusion. To
further accelerate activities at a global level, it is transitioning
to integrate Diversity and Inclusion with each businessstrategy. To exhibit strong commitment by the management,
the Chief Diversity and Inclusion Officer (CDIO) position
was established in April 2020, with Lorena Dellagiovanna
appointed to lead Diversity and Inclusion globally across thewhole Hitachi Group.
As a first step of this transition, in fiscal 2020, we
implemented gap data analysis, external assessments, andinterviewed business/function leaders to understand ourcurrent situation. Based on the analysis, we determined theDiversity and Inclusion global strategy for the medium tolong term.
In addition, as part of the strategy, Diversity andInclusion targets were set by business units, corporate
functions, and Group companies. The procedure todefine the targets included individual meetings with top
management and the CDIO, where discussions focusedon how Diversity and Inclusion can address issues in thebusiness as Hitachi operates in a variety of industries
and markets.

Diversity Management Promotion Framework
Structure

To achieve our aspirations, Hitachi has created a structure tolead global and regional actions.
At a global level, Sustainability Strategy Meetings(Diversity and Inclusion sessions) and the Diversity andInclusion Council are held every six months to promote theGroup's policies and initiatives. From fiscal 2021, Diversity
and Inclusion sessions were added to the Sustainability
Strategy Meetings with the aim of determining the direction,
defining the priorities on initiatives and investments, andsharing experiences within the top management of Groupand global companies. The Diversity and Inclusion Council
focuses on aligning itself with the global Diversity andInclusion strategy and conducts discussions on specificactions in partnership with the HR departments of Group
companies globally.
Regional Diversity and Inclusion lead positions
are created to drive initiatives aligned to local businessstrategies. Lastly, under the CDIO, the Diversity and Inclusion
Development Center supports implementation of global andregional initiatives, and by communicating the Diversity andInclusion strategy globally it creates value for internal andexternal stakeholders.
We also hold regular meetings to exchange opinionswith labor unions.

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Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Hitachi Diversity Structure

Assurance

Value Chain Management(people)

800

800

635

577

Sustainability Strategy Meeting
Chair: CEO
Lead: CDIO
Participants: Head of BU/Function/
Group Companies

Chief Diversity &Inclusion Officers

200

6.5%
6.0

4.8%

4.2%

4.0
2.0

2000

2016

2017

2018

2019

October
2020

2020 *2 (FY)0

Note: Figures include section manager–level employees and above.
*1 Since fiscal 2017, “Female managers” has included managerial employees
dispatched from Hitachi, Ltd. to other companies and those accepted fromother companies by Hitachi, Ltd. Earlier figures include regular managerial
employees dispatched to other companies but exclude those accepted fromother companies.
*2 The reason for the decline between October 2020 to the end of fiscal 2020
was due to business transfers. Independent assurance was provided on
the percentage and number of female managers for end of fiscal 2020 (asof March 31, 2021)

Diversity and Inclusion Targets

With the aim of increasing diversity among executive officers
and executive and corporate officers and managers, Hitachi
has created two key performance indicators (KPIs).
The goal set in November 2017 was to increase theratio of female executives and corporate officers from 2.5%
to 10% by fiscal 2020, and for non-Japanese executives
and corporate officers to raise it from 3.5% to 10% in thesame period. This goal was achieved in April 2021.
Another goal was to increase the number of female
managers in Hitachi, Ltd. to 800 by fiscal 2020 (double the

6.3%■ Female managers*¹ (left scale)● Ratio of total female managers*¹ (right scale)

Diversity & Inclusion Development
Center Human Capital Group

Activities

8.0

73

Diversity and Inclusion Council:
0

(%)

768

5.5%
4.1%

400

HR lead of BU/
Function/Group Companies

700

509

600

Goals

Social Data atio and Number ofR
Female Managers (Hitachi, Ltd.)
Executive Chairman & CEO

Advisors: External Directors

Community

GRI 405-1

number at the end of fiscal 2012) which was achieved in
October 2020, six months earlier than the target completiondate.
For the next step, we have decided on a new target,
based on the Diversity and Inclusion global strategy in April
2021, to achieve 30% for both female and non-Japanese
executive officers and corporate officers by fiscal 2030. As amilestone, we have set target of 15% by fiscal 2024.
With our new goals, we will accelerate our global
initiatives.

 atio of Female and Non-Japanese Executive andR
Corporate Officers (Hitachi, Ltd.)（%）
30.0
30.0 30.0(people)
9

8
7

7
6

5

6

5

2

3

2.6
0

11.6

8.8

6.4

20.0

15.0

4
8.6

15.0

10.1
5.0

10.0

7.1

June 2018 June 2019 July 2020 June 2021 End of FY
End of FY
2024 (Target) 2030 (Target)0■ Number of female executive and corporate officers (left scale)■ Number of non-Japanese executive and corporate officers (right scale)● Ratio of female executive and corporate officers● Ratio of non-Japanese executive and corporate officers

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
Social atio and Numbers of Male/Female and Japanese/NonR
Japanese Directors (Hitachi, Ltd., as of June 2021)
Male

FemaleJapanese

NonJapanese

Number

13

11

2

7

6

%

100

84.6

15.4

53.8

46.2

Directors

Ratio of female executive andcorporate officers

Ratio of non-Japanese executive
and corporate officers

Human Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Diversity and Inclusion Strategy Execution

Total

Item

Innovation Management

Social10.1%

11.6 %

Activities

In fiscal 2020, so as to understand the issues throughout Hitachi and to facilitate understanding diversity and inclusion even more,
we have increased our activities such as meetings with top management, active communication with employees through events,
and we have joined The Valuable 500—an international movement to promote the advancement of people with disabilities. We willcontinuously implement actions both on global and regional priorities.
For fiscal 2021, at a global level, the Diversity and Inclusion global strategy is based on the following five pillars. Progress in
implementing these five pillars shall be reported on and reviewed in the global structure. Group companies are also advancing
diversity management in accordance with their challenges and circumstances at the global level.
Diversity and Inclusion Actions Based on the Following Five Pillars
Pillars

Fiscal 2024 target

Fiscal 2021 actions

Overall trategic metrics of Diversity and InclusionS
are monitored and disclosed

 et policies, guidelines, and strategic metrics (KPIs), base line analysis andScontinuous data gathering
Strengthen Diversity and Inclusion structure(1) Leadership
Commitment

 ocal leadership team commitments withV
tracking and accountability globally ommunication strategy and campaigns to be defined based on priorities
C
showing leadership commitment

Inclusive
culture is cultivated: Everyone isrecognized to have a fair opportunity andfreedom to express their own ideas andopinions

Renewal of internal/external communication globally
Review companywide training/events
Accelerate talent exchange globally

Targeted recruiting initiatives and array ofchannels for diverse communities globally a Group-wide policy to commit to diversity and inclusion in recruiting
SetBuild scenarios on the speed of change in 3–5 years, and put elementsof Diversity and Inclusion in recruiting activities tailored to the region andbusinessDifferentiated benefits companywide anda robust network of employee resourcegroups (ERGs)*

 upport informal activities of employees including ERGs to expand theirS
networks, broaden their horizons, and have voices advocate inclusivity
Review benefits packages and policies(2) Culture(3) Recruitment(4) Retention* Employee-led groups, which are based onshared characteristics and experience(5) Advancement

 iverse talent in decision-levelDmanagement- Achieve the new target (15% of directors
are female or non-Japanese ) for
executive officers and corporate officers
in Hitachi as the milestone toward 2030

 DIO’s direct communication with future leaders (1 on 1 mentoring, groupCsessions, events, etc.) and Global Leadership Development activities(identify and develop talented employees for management positions within
the Hitachi Group globally)

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Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Female Empowerment
Activities

To ensure an environment where women are able to perform
at their best in all layers of the organization, the CDIO
participated in Talent Committee sessions and had positive
discussions about aspiring, talented future employees.
Based on actions determined at the Diversity and Inclusion
global strategy and Talent Committee sessions, the CDIO ismentoring female leaders and leader candidates globally.
In addition, the annual Global Women’s Summit (in fiscal
2020 it was cancelled due to COVID-19) has been held since
fiscal 2016 to realize gender equality in the Hitachi Group as
well as other dedicated events for female employees that areheld in partnership with the business units to encourage all
female employees.
 atio and Number of Female Managers
R(Hitachi Group)(people)

4,000

6.7

3,000

2,562

8.3

7.3

3,975

(%)

9.5

8.9

5,000

4,302

4,641

10.0
8.0

3,325
6.0

2,000

4.0

1,000

2.0

0

2016

2017

2018

2019

2020 (FY)0■ Female managers (left scale)● Ratio of total female managers (right scale)Note: The figures are based on the total number of female managers including
those dispatched from Hitachi, Ltd. to other companies. Rising numbersof female managers in part reflect improved coverage of our human capital
databases.

Activities related to the empowerment of women are also
being developed globally in Group companies, and we arefurther strengthening the global structure of the Diversity andInclusion program.
Examples of actions being taken in regions and Group
companies include Hitachi Astemo establishing a globalorganization with the appointment of a global Diversity andInclusion manager under the leadership of its CEO. With oneof the key focus areas being increasing diversity across theentire organization, aspects of Diversity and Inclusion havebeen integrated in various HR processes including acquiringand managing talented employees with an increased
focus on gender diversity and having a variety of different
nationalities. All of the initiatives are embedded in a cohesive
Diversity and Inclusion statement to build and leverage an
inclusive work environment and fully embrace diversity.
Hitachi ABB Power Grids (HAPG) launched Diversity
360 as a company strategic priority to ensure diversity andinclusion penetrates all aspects of management practicethroughout the Group. One of the four work streams is“Female acceleration” with a management commitment
to increase female representation at three levels of theorganization; senior leadership positions, middle managers,
and early career hires. The target is supported by arobust and comprehensive plan including Employee Value
Proposition (EVP) to reflect the aspiration to hire employeeswith different ways of thinking, and the Female Talent
Development Program in pipeline planning and structural
integration to incorporate Diversity and Inclusion into allpolicies related to the employee lifecycle such as equal pay
and flexible working.

In Japan, actions within the group are being
implemented such as Hitachi Japan Group Women’s Career
Success Survey which measures the progress of female
inclusion activities; it was launched in 2013 and is held every
two years. Alongside these efforts, we are implementing
actions such as Hitachi Japan Group Women Leaders’Meeting held every two years to support female employees
at the supervisory level and above and career developmenttraining for early career female employees. Hitachi, Ltd.
provides HR support and communicates with employees
to prevent employees having to leave the workforce due
to child/nursing care issues (for details see the Work Life
Balance page). In addition, we are working to change themindset of managers and male staff regarding gender parityand examining our working style as a whole with the aim oftransforming our corporate culture. Employee compensationis set according to each individual’s role and achievements,
with no divisions or differences based on gender or age.
P111 Enhancing Work-Life Management Support Systems

 asic Salary and Total Individual Compensation for Female
Band Male Managers (Fiscal 2020)(Hitachi, Ltd.)
Basic Salary

Total Individual Compensation

100：104

100：106

Note: Benefits for male and female employees are identical. Differences between
male and female employees’ salary and compensation are due to age
distribution, grade distribution, etc.

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Disability Inclusion
Activities

Hitachi Group joined The Valuable 500, a global CEO
community launched at the World Economic Forum torealize the inclusion of people with disabilities throughbusiness leadership and opportunities. By joining thisworldwide movement, Hitachi accelerates the inclusion ofpeople with disabilities internally and externally.
Disability inclusion actions in regional and Group
companies are implemented in compliance with the local
laws. In the case of regional Group companies, Hitachi
Europe employees and contractors must complete training
on “equality and diversity” as part of their induction plan,since disability inclusion is legally protected. Through thetraining, employees will be able to understand how tocontribute to creating an inclusive workplace for all.
Hitachi ABB Power Grids ensured it aligned disability
inclusion in the HR processes and policies within the group.
This includes equal employment opportunity policies,
induction programs for on boarding as well as buddy
programs as part of retention and support. In addition,
Hitachi ABB Power Grids is currently making its website
more accessible and will continue to make the application
process better for people with disabilities. Hitachi ABBPower Grids has also ensured its recruiting policy is alignedwith requirements by conducting a review to create an
inclusive workplace by examining things such as the office
infrastructure.
In Japan, Hitachi, Ltd. and domestic Group companies
have actively implemented the recruitment of people withdisabilities such as using online recruiting fairs, partnerships
with special subsidiaries, expanded their job capabilities,
and responded to the growing needs of working from homesuch as with the digitalization of documents. As a result,

GRI 405-1

as of June 2021, the employment ratio of people withdisabilities was 2.37% at Hitachi, Ltd.*¹ and 2.42% for theentire Group in Japan. Both of these figures exceed Japan’s
legally required employment ratio of 2.3 %.
As of April 1, 2020, “Hitachi You and I,*²” which wasestablished by three special subsidiaries, created the
Recruitment Retention Support Division. The Division ensures
support for the long-term employment of the disabled
and develops an environment where the job satisfactionof employees is high. In addition, we have implemented“Working Together with the Disabled,” an e-learning course,that 168,000 people out of 176,000 (attendance rate 95%)
attended for the domestic Hitachi Group and which aims tointroduce non-discrimination policies and accommodation
designed for the disabled.
*1 Includes one special subsidiary and 23 related Group companies.
*2 The new company’s name is Hitachi You and I Co. Ltd. The company employsaround 450 people, of which around 380 have disabilities.

 mployment of People with Disabilities and Employment
E
Ratio (Hitachi, Ltd.)*1
Legally required employment rate*²(people)
3,500

2.33

3,000

2.23

2,500

1,500

1,848

2,575

2.3

1,899

2.1

1,437

2.0

981

1,000

1.9

1.85

500
0

1.8

2000

2017

■ Employment of people
with disabilities (left scale)

2018

2019

2020

0

2021 (FY)● Employment ratio (right scale)*1 Includes special subsidiaries and related Group companies. (One special
subsidiary and 23 related Group companies in fiscal 2021.)*2 The legally required employment rate was 1.8% up to fiscal 2012, 2.0% between
fiscal 2013 and 2017, 2.2% in fiscal 2018 and became 2.3% from fiscal 2021.
Note: • Data compiled on June 1 of each fiscal year.
• The employment ratio is calculated according to methods prescribed in
the relevant laws.

Employment ratio of people withdisabilities

Our approach on B-BBEE
in South Africa

2,403

2.4

2.2

2.15

2,000

2.26

(%)

2.37

2.37%

As Hitachi expands its business in South Africa, it pursues activities alignedwith the country’s Broad-Based Black Economic Empowerment (B-BBEE)*¹
policy to create employment and economic development. As of 31 March
2021, Hitachi Construction Machinery Southern Africa has achieved a
B-BBEE rating of level 4.

*1 B-BBEE: Companies and organizations in South Africa are scored on their B-BBEE approaches and contributions, and are rated on a scale from level 1 (the highest) to 8,
and “non-compliant.”

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Contents

Introduction

Management

Environmental
SocialWork-Life Management

SocialInnovation Management

Human Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Approach

Hitachi goes beyond “work-life balance,” in which employees
are simply urged to balance work and private life, to promote“work-life management” which encourages employees toproactively take charge of improving the quality of both theirwork and private lives. We believe that practicing work-life
management will enrich employees’ work and private lives,enhance professionalism, and build personal character,
resulting in both individual and organizational growth over thelong term. Based on this philosophy, we have establishedsystems to support work-life reforms and a balance between
employees’ work and private lives.

Promoting Work-Life Reform
Approach

SystemActivities

Hitachi, Ltd. promotes the companywide work-life reform
initiative, Hitachi Work-Life Innovation, to develop workstyles
allowing talent from diverse backgrounds to work withenthusiasm and demonstrate strong performance.
Today, approximately 95% of all employees take advantage
of our telecommuting and satellite office work programs,
including managerial-level employees, flex workers, and careertrack regular employees who need to balance work withchild care, nursing care, or medical treatment. This provides
employees with flexibility concerning where and when they work.
The programs do not require the applicants to come into theoffice for a certain amount of time nor are there any limitations
on the number of times for doing so, which allows employees
to work from wherever they need to be for child care or nursing
care. If posted away from their families, they can work fromtheir family home. We are also rolling out location-free work for
managerial-level employees, which allows them to perform theirduties from anywhere when approved by the company.
Coverage of telecommuting andsatellite office work programs

Approx.

95%

Work-Life Innovation Initiatives at Hitachi, Ltd.
Activity

Key components

Top commitment

Send message within company

Review of operations and processes

Reform administrative operations at headquarters
Clarify rules for outgoing email
Use support tool designed to optimize meeting durations and participant numbers and improve meeting efficiency

Strengthening of workplace
management

Increase operational transparency using in-house consultants (experience-oriented approach)
Improve attendance management system for compliance rule enforcement

Promotion of time- and locationindependent work practices

Expand telecommuting program
Create environments where internal wireless local area networks (LAN) can be accessed safely
Distribute around 30,000 IT tools to support paperless and online meetings
Roll out location-independent work for managerial-level employees
Expand satellite office network (150 sites as of April 2021)
Reform administration by promoting electronic signatures and paperless systems

Companywide promotional tactics

Share on Hitachi's intranet site
Share best practices by giving awards

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Contents

Introduction

Management

Environmental
SocialEnhancing Work-Life Management Support Systems
SystemGRI 401-2/401-3

Hitachi, Ltd. and certain Group companies in Japan are
working to create even more supportive workplaces byintroducing and expanding various programs to help
employees balance work and family life. We have provided
an allowance to support child care and work; launched
Hokatsu Concierge child-care matching service, aninformation-providing service for finding nurseries; andprovided a child-care matching service in collaboration withcompany-led nurseries. Through these kinds of support,
we offer an environment where work and parenting can bebalanced with peace of mind.
Hitachi regularly conducts employee awareness andinternal fact-finding surveys concerning nursing care. Basedon the results of these surveys, we are working to enhancemeasures to help employees balance their work and homenursing care responsibilities. As Japan’s population ages,
the number of regular employees facing the challenge ofproviding nursing care for elderly family members is growing.
Consequently, Hitachi has been offering financial support
for these employees by establishing new programs such as
Work-caregiving balance support points under the Cafeteria
Plan. By also holding seminars on how to balance workand nursing care responsibilities, employees receive useful
information which transforms their awareness of the worklife balance. This includes learning about the importance ofcontinuing to work while fulfilling nursing care responsibilities
along with expert information on how to achieve thisbalance.
Hitachi has also introduced a service that warmly supports
employees dealing with nursing care concerns. In addition to
helping employees apply for public programs and find nursing
care facilities, the service can also arrange counseling to help
employees cope with the emotional challenges.

SocialInnovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

New Measures in Fiscal 2020
Balancing Work, Child Care and Nursing Care
MeasuresMain Details and Purpose

Child-care matching service in collaboration withcompany-led nurseries (started operation in fiscal
2020)

 ew support measures to promote the balancing of work and child careNSupporting a more balanced approach between work and parenting, we launched a childcare matching service in collaboration with company-led nurseries. This service, created withthe help of the Cabinet Office’s support program, enables employees who are looking for anursery for their children to apply for admission to a company-led nursery, thereby expediting
an early return to work for employees on maternity or child-care leave.

Launched Nursing Care Concierge (October 2020)

Contact point for obtaining consultation and support regarding nursing care concerns

Expanded the number of people eligible for Workcaregiving balance support points (January 2021)

To increase financial support

Established Work-caregiving Balance System
Development Support Points (January 2021)

To enhance support for creating better home care environments

Work-Life Management Support System at Hitachi, Ltd.
Child-Care Support System
For women

Nursing-Care Support System

For men

Work/leave system enabling flexible work styles

Flexible working hours
Shorter working hours(generally 6, 6.5, or 7 hours)
Working from satellite offices
Working from home
Elimination of posting
employees away
Annual paid leave (in hours)

Fertility treatment leave (1 year total)

Pregnancy

Leave for prenatal medical appointments,
pregnancy problem leave, etc.
ChildbirthMaternity leave (8 weeks before and8 weeks after childbirth)Child-careleaveChild-care leave (up to 3 years, until the child completes the first grade of elementary
school; can be taken nonsequentially)

Return towork

Flexible working hours
Shorter working hours(generally 6, 6.5, or 7 hours)
Working from satellite offices
Working from home
Elimination of posting employees away
Annual paid leave (in hours)
Half-day leave
Family-nursing leave

Paternity leave (5 days total)

Half-day leave
Family-nursing leave
Child-nursing leave
Nursing-care leave Nursingcare leave (5 days per person
receiving care per year)
Nursing-care leave(1 year in total, can be taken
nonsequentially)

Financial support

Child-nursing leave
Leave for overseas spouse transfers(3 years or less)
Allowance for Balancing Child Care andWork (up to 100,000 yen per year per
child; until the child completes the third
grade of elementary school) ork-caregiving balance support points (1,000 points
W[100,000 JPY] per person receiving care per year)
Work-caregiving balance support points (3,000 points[300,000 JPY] per person receiving care)

Hokatsu Concierge
Child-care matching service incollaboration with company-led nurseries

 ursing Care Concierge (consultation service)N
Distribution of Handbook on Balancing Work and Caregiving
Holding seminars on how to balance work and nursing care responsibilities

Consultation services and information provision

Cafeteria Plan (child-care and nursing-care menu)

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Contents

Introduction

Management

Environmental

SocialSocialInnovation Management

Human Capital

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Male

24.3

32.7

37.8

38.1

33.8

Female

100.0

100.0

100.0

100.0

100.0

Male

100.0

100.0

100.0

100.0

100.0

Female

100.0

100.0

100.0

100.0

99.7

Male

98.7

98.4

99.7

96.9

97.7

Female

100.0

99.2

100.0

100.0

99.7

Male

1.6

2.2

2.7

4.0

7.3

Female

99.6

99.7

100.0

99.6

99.6

Male

96.7

100.0

94.3

100.0

100.0

Female

97.1

98.5

97.4

97.4

98.9

Male

100.0

96.6

90.9

84.8

71.4

Female

98.6

98.0

99.4

95.5

98.0

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Return and Retention Rates After Maternity and Child-Care Leave (Hitachi, Ltd.)Definition
Maternity/partner's
leave utilization rate (%)

Total number of employees who took maternity
leave or partner’s maternity leave/ Total number of
employees with newborn children

Return rate formaternity/partner's
leave recipients (%)

Total number of employees not resigning on the
day after completing maternity leave or partner’smaternity leave/ Total number of employees who
took maternity leave or partner’s maternity leave

Retention rate formaternity/partner's
leave recipients (%)

Total number of employees who did not resign
within one year after maternity leave or partner’smaternity leave/ Total number of employees who
took maternity leave or partner’s maternity leave

Childcare leave
utilization rate (%)

Total number of employees who took child-careleave/Total number of employees with newborn
children

Return rate for childcare
leave recipients (%)

Total number of employees returning from child-careleave/Total number of employees who planned toreturn from child-care leave(Number of employees returning excludes those planned
to return and resigned voluntary without returning)

Retention rate forchildcare leaverecipients (%)

Total number of employees continuously working
one year after returning from child-care leave/Total
number of employees returning from child-care leave

In-House Child-Care Centers
Hitachi, Ltd., in collaboration with its labor union and 17 Group
companies, has set up in-house child-care facilities withcapacity for approximately 70 children in its Yokohama Office as
a way to support employees in balancing work with child care.

Support Systems and Measures that Meet
Diverse Employee Needs
SystemGRI 401-2/404-2

Hitachi, Ltd. and the Hitachi Group in Japan are working
to meet the needs of employees as their lifestyles become
more diverse. Through domestic Group-wide lifestylesupport programs and measures, we have implemented

systems that provide the necessary level of support
based on the business environment of each company
and the needs of employees. These measures include thefollowing: a Cafeteria Plan program, housing support suchas dormitory and family housing and a housing allowancesystem, allowances for balancing work with child andnursing care, retirement and pension plans, a consolation
payment system, an employee stock ownership program,
Hitachi Group insurance, a property accumulation promotion
system, internal sales, and a Health Insurance Society.
In the past, these lifestyle support programs andmeasures were only available in principle to regular
employees. Based on Japan’s Equal Pay for Equal WorkAct that came into effect in 2020, some systems havebeen updated so that they also cover limited-term contract
employees. In addition, for those measures that are unsuitable
for limited-term contract employees due to the purpose andnature of the program concerned, we provide support toemployees regardless of their employment type. This includes
the provision of welfare allowances as an alternative measure.
With regard to retirement benefit programs, Hitachi Group
companies in Japan have partially or fully implemented defined
benefit corporate pension plans, defined contribution pension
plans, and lump-sum retirement allowance plans. These plans
respond to the diverse needs of people in old age by providing
supplementary benefits in addition to public pensions and play
an important role in allowing retired people to live more affluently.

Achievements in Fiscal 2020
In fiscal 2020, the incentive system to encourage regular
employee participation in the stock ownership program
was changed at Hitachi, Ltd. and some Group companies
in Japan. Under the new system, the stock option
incentive rate varies according to the degree of the target
achievement under the 2021 Mid-term Management Plan
and the number of shares already held by the employee
concerned. While raising awareness of the benefits ofmanagement participation, we are helping employees toaccumulate assets over the medium and long term.
Furthermore, as part of its Cafeteria Plan benefits
program, Hitachi, Ltd. has been taking special
measures during the COVID-19 pandemic. This
includes raising funds to support professionals on
the healthcare frontlines, while also subsidizing costs
incurred to purchase computer equipment such as
monitors and Wi-Fi routers, as well as desks, chairs,
and other items they may need to work from home.

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Initiatives at Regional Headquarters to Create a Good Working Environment
The Statement on Diversity and Inclusion guides Hitachi’s endeavors to create work environments that allow our diverse range of human capital to work with enthusiasm and to support
workstyles that are conducive to each employee achieving their full potential. Region-specific policies are also implemented by our regional headquarters.
Hitachi America, Ltd.
Initiatives to promote diversity and inclusion include a mentor program and webinars toshare the experiences of employee role models. Of the employees promoted from January
to early August 2020, 36% were women and 83% were from minority groups. Nearly
30% of minority employees at Hitachi America hold director or higher positions. New hires
during the same span were about one-third women and approximately half were ethnic
minorities.

Hitachi (China) Ltd.
Activities are being promoted to strengthen inter-divisional cooperation. A group of
mainly younger employees are asked to introduce their division’s work to workers in otherdivisions to deepen understanding and encourage collaborative creation across divisions.
This activity was held four times in fiscal 2020, twice in Beijing and twice in Shanghai,
including online sessions and with a total of 63 employees participating. The network built
through these activities has contributed to smoother business operations.
Hitachi Europe Ltd.

Hitachi Asia Ltd.
Efforts to make Hitachi Asia the best place to work in Asia include providing equal
opportunities for all employees and creating workplaces that foster and retain outstanding
human capital. The company is particularly striving to improve team management, which
is a key business capability. The focus is on sharing knowledge and skills, enhancing
communication and coaching, and promoting the acceptance of diversity to boost
employee engagement. It also supports the creation of opportunities for employees
to engage in recreation together in order to further enhance communication between
employees.

In addition to Hitachi Insights, which is conducted across the worldwide Hitachi Group,
each region of Hitachi Europe separately surveys those who have chosen to leave
the company. The information is analyzed and used to help create workplaces where
employees prefer to stay long term. Support is provided to employees’ philanthropic
activities, with auctions and sporting events being organized to benefit a charity selectedby a vote among employees each year.
Hitachi India Pvt. Ltd.
In India, where the pandemic has been especially severe, this company has been
accelerating online measures to improve communication between employees. Sixty
participants from Hitachi India and its group companies participated in an online workshop
program. By enhancing participant follow-up before and after the program, the activity
received high marks from those who took part. As part of other measures to deal with
COVID-19, Hitachi India introduced virtual coffee breaks for employees working from home.
Also, the company is enhancing efforts to support the mental health of telecommuters
including the promotion of online yoga using a mobile app.

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Occupational Health and Safety
The Basic Principle for Occupational Health and Safety
PolicyGRI 403-1“Health and Safety Always Comes First.” is the basic
principle underlining the Hitachi Group Health and Safety
Policy which is shared by all Hitachi Group companies
around the world. Employees work together to create
healthy, safe, and secure work environments that aim tobe accident free. Moreover, we actively adopt practices toprotect our own health and safety and share the belief that
all work-related accidents can be prevented. We also strive
to build a culture of raising mutual awareness.

Establishing Occupational Health and Safety Management System
Structure

SystemIn fiscal 2020, the Safety Management Division promoted
the creation of organizations to support independent
safety activities by employees. The Health and Productivity
Management Promotion Office of the Human Capital
Division has been working to improve employee healthcare
support to promote even better health management. In April
2021, we established the Safety and Health Management
Division to integrate and operate the organizations thatmanage Occupational Safety and Occupational Healthand Productivity Management. The aim is to build a global
safety and health management system, strengthen efforts
toward zero work-related accidents, and further improve theemployee support system both physically and mentally.

Hitachi Group Health and Safety Policy“Health and Safety Always Comes First”
Policies

In accordance with our mission, “Contribute to society through the development of superior, original technology andproducts,” the Hitachi Group will endeavor to ensure safe and healthy workplaces under the principle of “Health and
Safety Always Comes First.”

To accomplish this, we will:
1. Continually be involved in health and safety activities in order to prevent work-related injuries and sickness by designating the health andsafety of employees as management’s top priority
2. Comply with the local laws and regulations in each company regarding health and safety
3. Develop a safe and comfortable work environment by encouraging employees to maintain their own health and taking a proactive stance on
health and safety activities in the workplace
4. Require an understanding of Hitachi’s principles and the promotion of health and safety awareness from all business partners*¹ of the Hitachi Group5. Contribute to the creation of a safe and pleasant society by emphasizing activities that make health and safety a top priority in all of
Hitachi’s business activities (Revised November 2013)*1 Includes contractors like vendors and suppliers, etc.

GRI 403-1/403-2/403-3/403-4/403-8

Health and Safety Officer Meeting is held bimonthly withoccupational health and safety officers from each Group
company and representatives from each division attending.
The members set plans and objectives for Group-wide safety
strategies, review ongoing efforts to improve occupational
health and safety activities, and share the clear commitment
from top management to make protecting the health andsafety of employees their top priority. In addition, the meeting
monitors the progress of each Group company and division’s
health and safety activities, education, training, etc., andalso sets Group-wide KPIs. From fiscal 2021, the meetinghas begun to identify risks, conduct risk assessments, andmitigate the risks of high-risk operations*¹ on a global basis.
The Audit Committee is composed of directors that
audit the Group's health and safety plans, policies, andactivities every year. For critical health and safety issues,
such as fatal accidents and cases that could lead to deaths,
the status of occupational health and safety management
is reported at least once a year to the Senior Executive
Committee and at meetings of Group company presidents.
In Japan, a health and safety commission—composedof business owners, labor union officials, and employees—
is convened at each business site every month to discussand share information related to such issues as workrelated accident cause analysis and countermeasures andhealth and safety activities in light of the situation regarding
employees who have taken sick leave.
*1 Examples of high-risk operations and environments: (1) work high above theground (2) industrial vehicles (3) heavy objects (4) machinery and equipment(5) lack of oxygen (6) toxic gases (7) fires and explosions

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Safety Management Framework

Achievements in Fiscal 2020
BUs/
Group companies

Hitachi, Ltd. headquarters

Safety and Health Management Division

Health and Safety Officer Meeting
Attended by health and safety managers
and executive officers (CHRO, etc.) fromeach BU/Group company

Instructions/communicationof Hitachi Group
activities policies/
initiatives

Business sites/Works

Sharing of activities policies/
initiatives in each BU/Group company

Reporting of KPIs andmajor incidents

Safety Audits by External Specialist Institutions
Four Hitachi Group sites in Japan underwent safety audits by a third-party organization from January to September 2018. As
a result, the following were pointed out as issues to be addressed in order to realize the Group’s health and safety policy whichstates: “Health and Safety Always Comes First.” (See “Issues Identified” in the table.)
In response to these findings in fiscal 2019 and 2020 we promoted activities with a focus on monitoring the current situation
and building a foundation for issue resolution. The following specific measures were taken in fiscal 2020.
Issues Identified

Fiscal 2020 targets

Specific measures taken in fiscal 2020

Insufficient Group-wide safety
management systems

Continued to strengthen
cooperation with each businesssite and ascertained the actual
situations of safety activities

Continued
to hold meetings of the Safety Strategy Promotion
meeting (once every two months): Changed policy to require theattendance of safety representatives (CHROs of each business
unit and officers responsible for safety at each Group company)
Improved the frequency of global accident reporting from once
per fiscal year to once a month
Enhanced reporting of incidents and accidents

Leadership by the organization’s
top management has not been fully
demonstrated which has led to a
decline in the safety awareness of
employees

Raised awareness of the need torebuild a culture of safety

Held top-level discussions between the general manager anddeputy general managers of the Safety Management Divisionand the business unit CEOs and launched safety training forexecutives

Lack of safety expertise andimplementation skills in the workplace

Launched safety education
to develop human resources
at business units and Group
companies

Held safety training for line managers and safety staff as well as
instructor training workshops for safety staff

Who is accountable for the
performance of safety activities is
unclear, and fundamental measures todeal with accidents are inadequate

Analyzed accident causes,
improved methods for horizontal
initiative deployment, and ensured
full-scale implementation ofcorrective and preventive measures

Analyzed accident data for Tier 1-1 (lost-time accidents) andmore severe accidents and reviewed the accident investigationsin JapanIn fiscal 2020, the Hitachi Group promoted
infrastructure development that included collecting
information for the building of a global health andsafety management system. The aim is to rebuild aculture of safety in which all Group employees canthink and take safety steps proactively. As an initiative
toward eliminating work-related accidents, in July 2020
the frequency of global accident statistics reportingwas changed from once every six months to once amonth in order to better track accident data. Initiatives
directly under the Safety Management Division havebeen expanded to improve health and safety activities
at sites outside Japan where serious accidents haveoccurred. To further raise awareness of the need torebuild a culture of safety, the Group has initiatedsafety training to enhance safety awareness among
management as well as leadership training basedon the use of external consultants. The Group also
conducted safety training for each organizational levelsuch as enhanced safety training for line managers
and safety staff on the frontlines. A total of about 320
people participated in these activities.

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Contents

Introduction

Management

Environmental
SocialInitiatives for Preventing Work-related Accidents
Employee Engagement

GRI 403-5/403-7

Hitachi is developing organizations where employees are
self-motivated to maintain safety activities and prevent workrelated accidents. We aim to achieve zero fatal accidents
by 2021 and halve lost-time accidents compared to 2018
across Group sites worldwide.
2021 Safety Targets (KPI)
TargetFatal accidents

Lost-time accidents

Hitachi Group

Zero accidents

Halved compared to 2018(253 accidents)

Hitachi, Ltd.

Zero accidents

Halved compared to 2018
(3 accidents)

In order to achieve these goals, the Safety Management
Division is taking the lead in holding monthly Safety Strategy
Promotion Council meetings, interviewing the departmentsin charge of safety, as well as analyzing accident causes andconducting training. It also implemented various measures inline with five action plans in fiscal 2020.
Action Plans

Hitachi sets and applies its own safety standards to beobserved at manufacturing sites globally as well as advancing
health and safety measures tailored to the operationsof individual companies. In particular, under the Safety
Management Division we have worked to improve our safety

Human Capital

Initiatives to Prevent Work-related Accidents

awareness of workplace safety

taking actions accordingly
3. Irregular operations, situation recognition, and appropriate responses
4. Improving expertise and the ability to promote safety activities
5. Analysis of the causes of accidents and thorough measures toprevent recurrences

Innovation Management

measures both in terms of our policies by examining andimproving our risk assessment frameworks and our protocols
by using IT and digital technology to prevent accidents.
Additionally, because the risk of accidents is higher for
workers not yet accustomed to their work or environment,
employees and temporary workers receive health andsafety training on their work and on-the-job training before
work begins to help prevent accidents by ensuring thatthey understand work procedures and dangers. We arealso working to build an education system that meetsthe requirements of the occupational health and safety
management system integrated across the Group’s operations
worldwide. At each business site, the system will provide
training for safety administrators at each organizational leveland safety training for specific hazardous work activities asappropriate for the organizational structure or business type.
When business restructuring occurs, we share the details of
the health and safety management frameworks and initiatives of theorganizations to be merged in advance, and, paying all due respect
to the organizational cultures on both sides, we ensure that safety isalways preserved during the execution of a smooth business launch.

1. The top management’s commitment to safety and raising
2. Ensuring full awareness of the need to put safety first andSocialKey Safety
Management
Designation
SystemIncident
Investigation
Database

TargetDetailsGroup
companies
and businesssites that haveexperienced
seriouswork-related
accidents

Under the leadership of top
executives, target companies
and business sites take on
management-driven initiatives toformulate specific plans, and theprogress of these plans is monitored
by safety officers, who also leadinitiatives to prevent recurrences.

Entire GroupAn Incident Investigation Database
was built to analyze accidents andformulate future countermeasuresin accordance with the Incident
Investigation System establishedin 2019. The database is currently
operational for Japan, and we
intend to roll it out globally.

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Enhancement of Safety Education
In order to ensure safety awareness among all officers andemployees, Hitachi carries out safety training specific to eachorganizational level. With the aim of changing safety awarenessstarting at the top, in fiscal 2020, we established new safety
training for executives. Over a total of four sessions, 76
executives learned about their roles and responsibilities forsafety and then made their own personal safety commitments.
After attending the training, we also evaluate the changes inawareness and behavior of the executives through 1-on-1
interviews with external consultants.

Current Work-related Accident Situations
Activities

GRI 403-9

In fiscal 2020, the total number of accidents fell due to thesuspension of operations during the COVID-19 pandemic.
Unfortunately however, three fatal accidents occurred within
the Hitachi Group worldwide. The number of lost-time
accidents decreased by about 21% from the previous fiscal
year, but there is still considerable room for improvement.
In 2020, Hitachi, Ltd. and Group companies in Japan
had no fatalities and 52 lost time injuries (Hitachi, Ltd.: 4).
Globally, in 2019 and 2020, there were multiple fatal
accidents caused by electrocution involving both employees
and contractors (five out of the eight fatal accidents
were electrocutions). We recognize the need to improve
workplace environments, which pose risks such as electric
shocks, and to build a safety management system that also
includes contractors.
In 2021, Hitachi plans to undertake global risk
management concerning serious accidents with the goalsof achieving zero fatal accidents while halving lost-time
accidents compared to 2018. In the short term, the Group will
work on minimizing the risk of electrocutions in all business
Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
Socialdivisions worldwide and remediate high-risk operations andequipment. This will be done by implementing occupational
accident prevention measures that clarify the safety manager
at the business site level and by investing in and installing
hardware to reduce risks. The initiative is to be completed by
the end of fiscal 2021.
In the medium and long term, Hitachi will build a safety
management system covering the Group’s operations
worldwide while establishing Group-wide KPIs and making
their performance visible. We will provide follow-up safety
training for executives, redefine the roles and necessaryfunctions of safety organizations and staff, and increase thenumber of safety experts.

Innovation Management

SocialHuman Capital

1.5

1.15

1.66

0.51

0

0.18

1.80

1.20

1.20

1.20

0.58

0.54

0.52

0.20

0.17

0.17

2016

2018

2019

2020 (year)

0.25
2017

All industries
Electrical machinery sector

Social Data

2016

2017

2018

2019

2020

120

■ North America

27.65

24.33

27.96

20.76

18.98

■ Central andSouth America

2.33

1.62

0.44

0.57

100

2.12

■ Europe

10.70

10.82

6.08

4.78

80

3.09

■ India

2.07

1.44

1.44

1.63

1.07

■ China

1.59

1.53

1.46

1.17

60

1.12

■ Asia (excluding
India and China)

5.43

4.41

3.34

2.63

1.55

40

■ Oceania

39.07

24.41

21.94

29.07

12.95

■ Africa

17.26

9.93

11.76

9.72

20

25.37

■ Overseas total

7.76

7.42

7.43

5.78

4.90

■ Japan

1.57

1.85

1.64

1.53

0

2016

2017

2018

2019

2020 (year)

1.34■ Global total

3.95

4.22

4.20

3.45

2.89

(year)

Initiatives to Improve Employee Health

1.02

0.45

Community

1.95

1.83

1.0
0.5

Value Chain Management*2 Occurrence rate is the rate of workplace accidents per 1,000 directly
contracted employees (ncluding cases without lost workdays).

0

1.63

Human Rights

Assurance

Hitachi Group’s Global Safety Figures (Occurrence Rate*²)

Work-related Accident Frequency Rate
2.0

Governance■ Manufacturing industries⃝ Hitachi Group *¹

Note: Work-related accidents are defined as those involving fatality or work-timeloss of one day or more.
*1 Hitachi Group figures for Japan including Hitachi, Ltd., are for 200 Group
companies in 2016; for 201 Group companies in 2017; for 188 Group
companies in 2018; for 169 Group companies in 2019; and for 136 Group
companies in 2020.

Approach

Activities

GRI 403-6/403-10

Hitachi believes that health is the foundation for employees
being able to work energetically and with peace of mind. The
basic principle of the Hitachi Group Health and Safety Policy,
shared by all Group companies globally, is that “Health and
Safety Always Comes First.” Based on this principle, we
strive as one to create working environments that allow
workers to do their jobs without anxiety over their mental or
physical health.
Until recently, health measures have been concentrated
in Japan and the Health and Productivity Management
Promotion Office of the Human Resources and Labor
Administration Division, and the Health InsuranceSociety, BUs, Group companies, and the Occupational
Health Division collaborated and were the main bodyfor implementing measures. In order to promote healthmanagement as part of organizational management, theHealth Management and Productivity Promotion Office andthe Safety Management Division have now been integrated.
The new Health Management Promotion Department of

the Health and Safety Management Promotion Division is
working on health measures shared across the worldwide
Hitachi Group in collaboration with safety-related personnel.
In the short term, we will steadily implement healthmanagement measures in Japan, strengthen mental healthsupport in accordance with new workstyles, and work tothoroughly prevent lifestyle-related diseases. Over the medium
and long term, we will develop a Group-wide health and safety
policy after ascertaining the actual conditions of occupational
health measures globally, and identifying issues. The necessary
initiatives will then be implemented in a unified way.
Fiscal 2021 Targets for Health Management (KPIs)

Hitachi Group(Japan)Percentage of employeeswith high stress according
to the stress-check system

Percentage whohave received special
health guidance

10% decrease fromfiscal 2020

40% of employees

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Contents

Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capital

In April 2020, the Health and Productivity Management Promotion Office of the Human Resources and Labor Administration
Division was established with the aim of strengthening cooperation with the Occupational Health Promotion Center and the Health
Insurance Society. We have been working on mental and physical health measures to deal with the diversification of workstyles andthe pandemic situation. Specific measures taken in Japan include the creation of a system for employees to consult the company's
occupational physicians remotely during the pandemic, based on an extraordinary meeting of the occupational physicians. A
campaign was also launched to encourage personnel to regularly record their health data such as body temperature and weight tosupport personal health management. Outside Japan, employee mental health measures were implemented in each region.

◦ Occupational healthcare provided by occupational
physicians, nurses, and other occupational healthcare
personnel both at health-management centers locatedat individual business locations and regional healthmanagement centers serving multiple business locations◦H ealth maintenance measures provided based on periodic

Absences
（%）
1.00

0.56

◦Q
 ualitative improvement of occupational healthcare activities
and the human capital development of occupational
healthcare workers through regular meetings, study groups,
and training sessions attended by both occupational
healthcare workers and human resources officers

0.60

0.64

0.65

0.62

0.24

0.25

0.22

0.50

0.24

medical exams and other examinations to prevent serious disease◦ M edical interviews and advice to prevent mental andphysical disorders among employees working long hours◦ Consultations and guidance by occupational healthcare
workers to address employees’ health concerns andencourage regular exercise◦ Proactive implementation of stress checks specified bylaw at all business sites—even those employing fewer
than 50 employees which are only required to makeefforts toward compliance—to help prevent mental healthissues and revitalize workplaces

Human Rights

Value Chain Management

Assurance
Community

Social Data

Addressing Mental HealthAchievements in Fiscal 2020

Health Support Initiatives in Japan

Governance

0.00● Mental

2016

0.26

2017

2018

2019

2020 (year)● PhysicalNote: Percentage of employees taking sick leave for seven or more consecutive
days, or formally taking leave (Number of employees taking sick leave permonth/Number of employees per month × 100)

Percentage of stress-checkparticipants deemed to have highstressSpecific health guidance
implementation rate

11.6%
27%

Activities

GRI 403-6

Hitachi has established measures addressing mental health tobe taken by employees, workplace managers, occupational
healthcare workers, and human resources divisions, and it
is working to spread basic mental health knowledge andunderstanding of ways to deal with stress as well as reinforcing
the ability of those in positions of authority to respond to theseissues. The mental illness incidence rate among employees infiscal 2020 was lower than in the previous year. Nevertheless,we have developed a proactive approach that anticipates
increases in mental strain such as that caused by the changing
workstyles and behavioral constraints during the pandemic.
(1) Regular one-on-one interviews(2) Expansion of a system for remote consultations withoccupational physicians(3) Introduction of an EAP*¹ consultation service for Group
companies that have not yet adopted it(4) Individual interviews with expatriate employees(5) Tips for working from home posted on the intranet(6) Identification of health issues using a telecommuting survey
Also, based on the results of the telecommuting survey andthe opinions of occupational physicians, we plan to provide
even more proactive support for employees who need
it. This includes consultations with those who have been
diagnosed with elevated stress, looking for warning signs in
attendance information, establishing a health consultation
service for managers, conducting resilience training, andholding individual health interviews with young employees.
*1 Employee Assistance Program

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Contents

Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capital

Initiatives Addressing Mental Health at Hitachi
Occupational physiciansand occupational healthcare
staff

Self-care(individual)Line care(superior)

Human resources
division

Working environment improvement workshops, etc.

Mental health education

Stress coping seminars
EAP consultations and otherconsulting services

Indicator management(while mentally
unhealthy)

Management to prevent
recurrence (fromdecision to return toafter returning to work)

Repetition management(during repetition after
return to work)

Workplace management

Health exams of various types

Promotion of various
types of health exams

Health consultations
Regular consultations

Leave system

Support for returning towork
Programs supporting
return to work
Regular consultations

Regularconsultations

Workplace management

Health consultations

Trial return system

Handbooks for employees
taking leave

Condition management(at beginning of andduring absences andleave)

Mental healthconsultations during
medical exams

Line care training
360FBP＊1

Regular consultations

Consideration of tasks upon return
Regular consultations
Follow-up status checks after return
to work

Promotion oftraining andeducation
Workplacemanagement
guidance
Reduction oflong working
hours

Management of
those working
extensive
overtime
Managementof employees
on leave
Programs
supporting
return to work
Regularconsultations

Training for human resources officers

e-learning; “Thinking about
mental and physical health”
versions 1–3

EAP corporate
diagnosis

Handbooks for managers
e-learning for managers

Health improvement
activities (Seminars andhealth guidance fromoccupational physicians)

Human Rights

Assurance

Value Chain Management

Community

Social Data

Promoting Collabo-Health*1

Stress-check system specified in law

Preventive management(while healthy)

Governance

As well as carrying out individual health improvement
initiatives according to their own unique characteristics,
Group companies in Japan strive to maintain and improve
the health of employees by taking full advantage of theservices offered by the Health Insurance Society.*² Hitachi isalso working to ensure that all Group companies are certified
under the Health and Productivity Management Organization
Recognition Program by the Ministry of Economy, Trade, andIndustry. Health promotion initiatives are also evaluated on
an annual basis with recognition of the most accomplishedcompanies and business sites within the Group heightening
the motivation among business owners and employees topursue such activities.
*1 Collabo-Health: A concept involving insurers like the Health Insurance Society
proactively working with business owners, with a clear division of labor and agood working environment, to effectively and efficiently improve the health of
insured persons (employees and their families), including preventive strategies.
*2 Hitachi Health Insurance Society: Hitachi Group employees and theirfamilies are members of this organization which is one of Japan’s largest
health insurance associations. As of the end of March 2021, there were 191
participating corporations and 447,153 insured persons (223,007 membersand 224,146 dependents).

 umber of Hitachi Health Insurance Society Member
N
Corporations Certified Under the Health and Productivity
Management Organization Recognition Program
Category

FY 2020Large
companies

58(Including 7 with “White 500”
status)45

small-andmediumsizedcompanies

41(Including 3 with “Bright 500”
status)26

Collaboration to support return to work

Guidance to external facilities
supporting return to work

GRI 403-6

Activities

FY 2019*1 360FBP: 360-degree Feedback Program.

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Contents

Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capital

Encouraging Employees to Receive Medical Exams and Quit Smoking
GRI 403-6

MedicalExam and Screening Attendance Rates
0
（%）
100.0
90.0
80.0

93.2

92.9

79.0

81.4

78.1

78.4

80.7

78.5

96.8

95.8

93.2

81.2

83.0
82.2
81.1

56.3

56.6

37.1

38.7

39.1

2018

2019

2020

81.3

80.6

79.3

83.5

82.7

70.0
60.0

50.0

51.1

35.3

35.6

2016

2017

53.2

50.0
40.0
30.0
0

Human Rights

Value Chain Management

Assurance
Community

Social Data

Measures to Prevent Infectious Disease

Activities

In Japan, Hitachi has established a system offering financial
support for medical exams by the Health Insurance Society
and encourages employees aged 35 and over in particular
to receive the general physical and other exams specified inlaw as well as targeted screening based on age in order topromote early diagnosis and treatment such as for lifestyle
related diseases and cancers.
Furthermore, as a response to the rise in metabolic
syndrome, and in addition to special health guidance madecompulsory for the Health Insurance Society, we actively
promote policies to prevent and control conditions suchas diabetes, cerebral strokes, and myocardial infarctions.
Hitachi has also introduced an online quit smoking program
so that employees do not need to visit a clinic during the
pandemic. This helps employees to stop smoking whileworking from home. Of the approximately 300 employees
who signed up more than 80% have succeeded in stoppingsmoking.

Governance

General physical exam*1▲ Uterine cancer screening*3
Intestinal cancer screening*4(FY)■ Breast cancer screening*2● Stomach cancer screening*4
Lung cancer screening*5*1 Men and women aged 35 and over *2 Women aged 30 and over
*3 Women aged 25 and over
*4 Men and women aged 30 and over*5 In fiscal 2016–2017, men and women aged 50 and over; from fiscal 2018,it changed to men and women aged 35 and over

Activities

GRI 403-6

In addition to measures to prevent the spread of COVID-19,
we have been vaccinating employees against hepatitis A,
tetanus, and cholera to prevent them from contracting
infectious diseases during business travel outside Japan.
In Japan, the Health Insurance Society has established
an incentive point system to reward influenza vaccine
recipients, including employee family members, with theaim of preventing influenza outbreaks in the workplace. As
an initiative to prevent catching influenza, we recommend
employees get vaccinated before the flu season gets
underway. The program is used by about 120,000 employees
and their families every year.
In fiscal 2019 we introduced an incentive point system incooperation with the Health Insurance Society to encourage
applicable employees to receive an antibody test for andvaccination against measles and rubella—both of which are
now free of charge. This is part of our efforts in Japan totarget male employees of the generation not covered by thenational MR vaccination program as children.

Smoking Rate Trend
（%）
40.0

32.0％

31.5％

30.9％

29.8％

28.4%

2016

2017

2018

2019

2020

30.0
20.0

10.0
0.0

(FY)

Note: Employees aged 35 and over (results of specific medical examinations)

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialAchievements in Fiscal 2020
As a measure to prevent the spread of COVID-19
while commuting and when in the office, we ask
employees to check their temperature and physicalcondition before leaving for work, and to always stayhome if they have a fever or feel unwell. We encourage
the full implementation of the government’s infection
prevention guidelines. We have implemented full-scale
infection prevention measures according to the type ofwork. This includes providing disinfectant and masks
to employees engaged in the maintenance of social
infrastructure. Hitachi has taken a whole range of otherpreventive measures such as mandatory mask wearing
at all sites as well as thorough temperature checks
and workplace disinfection based on the installationof thermal cameras, non-contact thermometers, andautomatic sanitizer dispensers at building entrances.
We have also spaced out seating in offices, employee
cafeterias, and conference rooms, installed droplet
blocking partitions, limited the number of passengers
in elevators, suspended the use of smoking rooms andensured physical distancing in common areas.

Innovation Management

SocialHuman Capital

Health Promotion Initiatives for Employees andTheir Families
Activities

GRI 403-6

To encourage healthy lifestyles among employees and theirfamilies, the Hitachi Health Insurance Society has establisheda portal site for individuals entitled My Health Web.
By providing information on health exam results anda system of incentive points allowing employees to receive
rewards for entering health-related activities, the site raises
health awareness, helps employees understand the state of
their own health, and offers a range of support for adopting
a healthier lifestyle.

Achievements in Fiscal 2020
In fiscal 2020, Hitachi added an online service
that allows employees and their families to makeappointments for medical examinations using My
Health Web in order to encourage regular checkups.
Further supporting health management during
the pandemic, we launched the online “Amabie
Campaign” that encouraged employees to record
their daily health data such as body temperature
and weight. The campaign ran for four months from
May to August 2020, and about 30,000 people
participated. This initiative continued even after theend of the campaign.

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Health and Safety Considerations for
Nuclear Businesses
GRI 403-7

Since 2008, Hitachi has been working with theworld’s leading nuclear power plant vendors todevelop voluntary, private principles of conduct
covering the export of nuclear power plants andreactors. The Nuclear Power Plant and Reactor
Exporters’ Principles of Conduct were formallyrevealed on September 15, 2011. They wereadopted by all involved in their development, andwe have also indicated our adherence to them.
Regarding our employees and other persons
employed at nuclear sites under the Hitachi Groupumbrella, we perform exposure management
based on our internal management systems andperform evaluation of radiation damage (dosemanagement).
For health management in particular, ourmanagement indicators for radiation exposure
are stricter than those set by Japan’s Ministry of
Health, Labor, and Welfare. We monitor physicaland mental health along with exposure doses
even for employees of partner companies, and an
occupational physician from Hitachi visits sites toperform examinations and offer health advice.
Nuclear Power Plant and Reactor Exporters’
Principles of Conduct

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Contents

Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Helping Employees in Japan Stay Healthy
Initiative

Helping to Protect Employees Against

Details

COVID-19

Remote counseling by occupational
physicians

Established remote counseling by occupational physicians and nurses as an early-response measure toaddress the mental and physical health concerns of long-term telecommuters

Hitachi has been taking measures to prevent the
spread of COVID-19 and ensure the health andsafety of employees and their families globally
across the Group.
Hitachi, Ltd. adopted a sweeping workfrom-home policy in March 2020 and maintained
a telecommuting rate of 70% during the state of
emergencies in Japan. In addition to establishingin-house procedures to deal with infections among
employees, we adhere to government guidelines
for preventing the spread of infection. Should an
employee test positive, we instruct everyone in thesame workplace to stay home and monitor theirhealth, and we also disinfect the workplace.
We are expanding our efforts to address abroad array of mental and physical health concerns
among long-term telecommuters. For example, we
provide remote healthcare counseling, offer tips on
staying healthy while working from home, support
foreign employees seeking medical services inJapan, and ensure the human rights of infected
employees.
Hitachi Group companies outside Japan
have also been supporting employee healthduring the pandemic. Their efforts include holding

Tips on staying healthy while working
from home

The website provides advice for maintaining physical and mental health as well as contact information for

mental health workshops and providing Employee
Assistance Program (EAP) consultation services.

health consultation providers. It provides information on ways to keep mentally and physically fit—suchas stress-coping strategies and simple, at-home exercises—and links to career, family-health, and othercounseling services.

Inbound Medical Assistance Services

A 24-hour year-round call center offering medical assistance in 16 languages for foreign employees and theirfamilies in Japan, including referrals and appointments to medical facilities and arrangements for emergency
transport and hospitalization, translation via telephone, and other services

Looking after infected employees

Messages delivered by the CEOs of business units giving reassurances to infected individuals and raisingawareness among their colleagues

Supporting the Mental Health of Employees Outside Japan
RegionDetails

EuropeEstablishment of a mental health consultation service
EAP consultation services
Mental health workshops for managers and employees
Health resilience training
Providing information on mental health measures through in-house newsletters
Virtual sessions on topics such as team leadership while working from home as well as workstyles and work
lifestyles to improve productivity, etc.

USA

EAP consultation services
Wellness programs (virtual yoga and wellness workshops)
Setting recommended dates for taking leave

Asia

Virtual engagement activities (dialog between top management and employees, recreation, etc.)
Wellbeing programs (build mental resilience)
Structured 1-on-1 communications
Daily team communication and health status management by managers

Hitachi Group’s General Policies in Response to COVID-19

P145 Hitachi Group’s COVID-19-Related Support Efforts

P120 Measures to Prevent Infectious Disease

P178 Responding to COVID-19

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Freedom of Association and Collective Bargaining
Respecting the Rights of Employees
PolicyGRI 102-41

The Hitachi Group Codes of Conduct call for the upholdingof the fundamental rights of employees in line with theprinciples of the United Nations Global Compact.
In Japan, where labor unions are recognized, weespouse the three fundamental rights of labor unions (toorganize, to bargain collectively, and to act collectively)
as seen in the collective agreement between the CEO of
Hitachi, Ltd. and the representative of the Hitachi Workers
Union.
The Hitachi Workers Union membership*¹ rate isapproximately 97%, as of February 28, 2021.
* 1 Union members/All employees except managers who are not eligible to join
the labor union.

We also hold quarterly Hitachi Group management
meetings to share information and exchange views
and opinions on Group business conditions among theFederation of Hitachi Group Workers Unions (FHGWU).
Group companies outside Japan also actively pursue
dialogue with individual labor unions and their representatives
in accordance with the laws and regulations in each country
and region to deepen mutual understanding of employee
working conditions and treatment as well as businessconditions.
Labor Management Dialogue at Regional Headquarters
in China and Europe
Hitachi China

Mutual Communication Between Employees and Management
SystemThe relationship between employees and management at
Hitachi, Ltd. and Group companies in Japan is stable withhealthy ongoing dialogue.
At Hitachi, Ltd., the Central Management Council, theBusiness Units Management Council, and the BusinessSites Management Council work to enhance mutualcommunication between employees and management
contributing to smooth management and businessdevelopment and improving working conditions for union
members.

Hitachi Europe

To maintain good communication with
employees, we hold management roundtable meetings with labor unions to share
information on corporate management
conditions and issues. In fiscal 2020, the21st meeting was held online.
Since 1996, our European labormanagement meeting has been held every
year as a place for senior management
and employees to exchange opinions on
the Group’s business environment andstrategies.

Notification of Work-related Transfers and Reassignments
SystemGRI 402-1

The collective agreement between Hitachi, Ltd. andthe Hitachi Workers Union states that any transfer orreassignment of an employee for work-related reasonsshould adequately take into consideration the situation of
the employee as well as requiring the company to promptly
inform the Hitachi Workers Union of the decision. Morespecifically, in cases of large-scale transfers, reassignments,
or moving the company will consult with the labor union
regarding the basic issues involved.

Labor-Management Cooperation toward
improving Health and Safety Levels
SystemHitachi, Ltd. and the Hitachi Workers Union are dedicatedto improving health and safety levels through employeemanagement cooperation. This includes signing a collective
agreement on the promotion of, among other things, healthand safety measures, a health and safety committee, educationand training programs, and health checks for employees.
The committee works to ensure a healthy and safe work
environment through their initiatives that include planningand tracking health and safety activities each year, reviewing
their measures to prevent work-related injuries, and sharing
information on whether employees have received theirannual health check-ups.

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialHuman Rights
Why
ー Why it matters ー

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Relevant SDGs

GRI 103-2

Hitachi understands that respecting human rights in business activities is not only essential for corporate sustainable development but is also a responsibility that all companies
must fulfill. In 2013, to clarify corporate responsibility with respect to human rights, we established the Hitachi Group Human Rights Policy based on Hitachi’s Corporate Credo
and Group Vision and designated it one of the highest codes governing our internal regulations. Under the Hitachi Group Human Rights Policy, we pursue initiatives to ensure
respect for human rights not just within Hitachi itself but for everyone in our supply chain or otherwise involved with our business activities, products, or services. As well as
implementing global training and awareness-raising activities and establishing grievance mechanisms to address employee concerns throughout the Hitachi Group, in recent
years we have focused on human rights due diligence (HRDD) working to construct frameworks and systems for recognizing and reducing human rights risks.

What

How

ー What we are doing ー・Ensuring awareness of
Respect for
Hitachi Group Human
human rights
Rights Policy
throughout the ・Raising human rights
awareness among
value chain

executives and employees

・Recognizing human rights
risks and constructing
frameworks and systems
for reducing themthrough human rights due
diligence (HRDD)
・Raise human rights
awareness amongsuppliers including issues
involving child labor andforced labor

ー How we are doing it ー

Policy andpromotion structure

Hitachi has established the Hitachi Group Human Rights Policy and pursues initiatives that ensure human rights are respected.
Hitachi, Ltd. has a Corporate Human Rights Promotion Committee composed of the heads of business units and corporate
divisions and chaired by the executive officer in charge of human resources. In fiscal 2021, the scope of the Executive
Sustainability Committee's mandate was expanded to cover human rights topics as part of sustainability management.
Achievements in Fiscal 2020
Consolidated general consultation and reporting systems (contact points) for harassment and human rights issues into the Hitachi Global
Compliance Hotline

Raise human rights
Distributed a human rights message from the Executive Chairman & CEO on Human Rights Day
awareness among
executives and employees
Carried out executive human rights training using external lecturers
Appointed a Chief Diversity and Inclusion Officer (CDIO) to promote activities across the entire Hitachi Group

Recognize and minimize
human rights risks through Established a project team to promote human rights due diligence (HRDD) at the headquarters of Hitachi, Ltd.
HRDD
Created a priority risk questionnaire to evaluate measures being taken to prevent forced labor and migrant labor (for Hitachi Group companies
and suppliers)

An initiative to promote therespecting of human rights Conducted online CSR procurement briefing sessions for suppliers in China, Thailand, and other Asian countries.
by suppliers

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Respect for Human Rights Throughout the Value Chain
Hitachi Group Human Rights Policy

Framework for Human Rights

PolicyHitachi believes that respecting human rights is its
responsibility as a global company and indispensable in
conducting business. To this end, in May 2013 we formulated
the Hitachi Group Human Rights Policy. The Senior Executive
Committee reviewed and approved this policy, designating it
one of the highest codes governing our internal regulations.
During the formulation of the policy, Hitachi held stakeholder
dialogues, and invited representatives from the European
Commission, the International Labour Organization (ILO),
NGOs, and external companies, as well as lawyers specializing
in human rights issues, and the opinions and suggestions ofthese attendees are reflected in the final policy.
In the policy, we clarify our understanding of humanrights as being, at a minimum, those outlined in theInternational Bill of Human Rights*¹ and the ILO’s Declaration
on Fundamental Principles and Rights at Work. This policy
shapes Hitachi’s approach to meeting the responsibility torespect human rights including implementing human rights
due diligence (HRDD)*² in line with the UN Guiding Principles
on Business and Human Rights,*³ providing appropriate
education to employees, adhering to laws and regulations in
all the regions and countries where we operate, and seeking
ways to honor the principles of international human rights
when faced with conflicts between internationally recognizedhuman rights standards and national laws.
In accordance with the policy, we use opportunities
such as our e-learning program on human rights andmessages from our Executive Chairman & CEO (andat that time also our president) Toshiaki Higashihara on

Structure

Human Rights Day to continuously raise awareness among
all employees. The policy is also included in the HitachiGroup CSR Procurement Guidelines for our suppliers,
and we strive, through a range of activities, to promote
understanding among suppliers of our approach to humanrights and ensure that they act in accordance with it.
*1 International Bill of Human Rights: Collective name for the Universal
Declaration of Human Rights and International Covenants on Human Rights
adopted by the United Nations.
*2 Human rights due diligence (HRDD): An ongoing process to identify andassess potential and actual human rights negative impacts, take appropriate
action to prevent or mitigate potential impacts, track the effectiveness ofactions to address impacts, and communicate externally.
*3 Guiding Principles on Business and Human Rights: Included in the March2011 “Report of the Special Representative of the Secretary-General on theissue of human rights and transnational corporations and other businessenterprises, John Ruggie” (A/HRC/17/31).

Hitachi Group Human Rights Policy
Details of the dialogue with stakeholders during the formulationof the Hitachi Group Human Rights Policy
P128 Human Rights Awareness Initiatives Targeting Suppliers and Procurement Personnel

Respect for the Rights of Children
Hitachi respects the rights of children as outlined in the
United Nations Convention on the Rights of the Child andthe Children’s Rights and Business Principles developed by
the United Nations Children’s Fund (UNICEF). We strive toeliminate child labor in the Group and its supply chains as
specified in the Hitachi Group Codes of Conduct. We havealso set forth in other relevant internal regulations our policyof respecting human rights including the rights of children.

GRI 406-1

Hitachi, Ltd. has a Corporate Human Rights Promotion
Committee to gauge the impact of business activities onhuman rights and to deliberate on mechanisms and policies
for preventing human rights violations, thereby improving
Group-wide human rights awareness. The executive officer
in charge of human resources chairs this body, whose
members include representatives from corporate divisions.
From fiscal 2021, the framework changed and the Executive
Sustainability Committee composed of Executive Chairman& CEO Higashihara and other members of the Senior
Executive Committee and the heads of business units andcorporate divisions will also deliberate on global humanrights issues including HRDD.
 itachi, Ltd. Framework for Promoting Respect for Human
H
Rights (FY 2020)
Corporate Human Rights
Promotion Committee
Chairperson

Executive officer in charge of humanresources
Vice-Chairperson

Executive officer in charge of legal
affairs and risk management
Members

Personnel in charge of corporate
divisions such as procurement,
human resources, and CSR, including
executive officers in charge of sales
and sustainability promotion

Hitachi Group Codes of Conduct

Hitachi Sustainability Report 2021

Business Unit
and Business Site
Committee
Chairperson

Business unit
presidents anddivision heads
Members

Division managers

125

Contents

Introduction

Management

Environmental
SocialEstablishing a Global Grievance Mechanism
SystemGRI 102-17

In April 2020, we consolidated the Hitachi Group’s internalreporting systems into the Hitachi Global Compliance
Hotline. The hotline is provided through a third-party platformthat supports dozens of languages. Consultations areavailable 24 hours a day through calling or online messaging.
We merged the general consultation and reporting systems(contact points) for harassment and human rights issues
at the business sites of each business unit and Group
company into this hotline in fiscal 2020.
These efforts will clarify who to consult with on humanrights issues, make it easier for employees and those working
with us to access these services, and promote the Groupwide effort globally including a grievance mechanism, thathelps Hitachi grasp and identify violations of human rights.
P169 Compliance Reporting System

Raising Human Rights Awareness Among
Executives and Employees
Employee Engagement

GRI 412-2

Hitachi conducts regular group training and seminars anduses videos to educate employees at each business site
and Group company. As of fiscal 2020, the target is for each
employee to attend one session every year instead of theprevious target of once every three years. In fiscal 2020, theapproximate participation rate was 86.3% at Hitachi, Ltd. and
78.3% at Group companies in Japan. Through various othertraining and awareness-raising activities such as onboarding
education for new employees and training for job positions,
we are also communicating to our employees the importanceof them respecting human rights in each of their roles.

Innovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Implementation Status of Activities to Raise Awareness of Human Rights

Achievements in Fiscal 2020
As part of the fiscal 2020 human rights training forexecutive officers at Hitachi, Ltd., attorney Yoshihiko
Matake of the firm Nagashima Ohno & Tsunematsugave a lecture entitled “Latest Trends in Legal andCompliance concerning Business and Human Rights.”
In addition to corporate scandals, which havebeen frequent in recent years, the guest lecturer
talked about the human rights risks faced by global
companies, the importance of HRDD as a prevention
measure, and the latest trends in human rights
legislation, especially in Europe. Mr. Matake suggested
that companywide cooperation is necessary to identify
inherent business risks and to effectively implement
due diligence concerning business partners. He alsostressed the necessity for executive-level commitment
and leadership.
In Japan, where a revised labor law designed toprevent power harassment took effect in June 2020,
we are raising awareness of the issue of harassment
through seminars for executives and workplace
discussion sessions for all employees as well as training
for different levels and employees transferred abroad.

TargetAll HitachiGroupexecutives
andemployees

Details

Results of Fiscal 2020

Distributed a human rights
message by Executive
Chairman & CEO Toshiaki
Higashihara on Human
Rights Day (every year)

Distributed toapprox. 242,000
executives andemployees

E-learning course on
business and humanrights (provided in 15
languages, taken about
once every three years)

Not implemented infiscal 2020
(A total of more than160,000 people
took it in fiscal 2019)

Lecture on human rights by anoutside expert (held annually)
Executive
officers ofHitachi, Ltd.

Note: In fiscal 2020,
attended a lecture on
the “Latest Trends inLegal and Complianceconcerning Businessand Human Rights”

Attended by
34 people

Human Rights Due Diligence (HRDD) Initiatives
Activities

In our Hitachi Group Human Rights Policy, we pledged todevelop mechanisms for and to continue the implementation of
HRDD. We are working to improve our business processes. For
example, our CSR procurement guidelines reflect the results of
HRDD risk assessments performed in our procurement divisions.
We analyzed and reassessed a wide variety of information
including the results of our HRDD to date; human rights issues
specified in Hitachi’s codes and guidelines; information, advice,
and inquiries from non-governmental organizations, the media,
and experts; assessments of corporate efforts concerninginternational initiatives; and the results of self-checks by suppliersand Group companies. Taking these results into account, wehave identified forced labor and migrant labor as a priority risk
for the Hitachi Group and this is now being addressed Groupwide. Forced labor and migrant labor are issues of high concernthat are increasingly the subject of legislation around the world.
Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialAchievements in Fiscal 2020
Development of Systems to Promote HRDD
The position of chief diversity & inclusion officer (CDIO)
has been established for the Hitachi Group. We
have also set up a project team at the Hitachi, Ltd.
headquarters to promote HRDD. It is composed ofmembers from the human resources, procurement, andCSR divisions. The project team holds regular meetings
to investigate HRDD measures for the Hitachi Groupand its suppliers. It also prepares relevant internal
manuals, and responds to inquiries from business units
and Group companies.
In order to carry out HRDD specific to eachbusiness area of the Hitachi Group, HRDD promotion
committees were set up and persons responsible forpromoting and implementing HRDD were appointed
in each business unit and major Group company.
We are developing a system to enhance humanrights risk management while taking into account thecharacteristics of each business and value chain.

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Results of HRDD Activities
The Hitachi Group prepared a priority risk questionnaire (about 30 questions in total) to evaluate the situation within theGroup and at its suppliers regarding forced labor and migrant labor which have been defined as Group-wide priority risks.
In preparation for this survey, Hitachi obtained a review from a non-governmental organization, The Global Alliance for
Sustainable Supply Chain (ASSC). The ASSC also provided advice concerning the questionnaire content and consistency
with global industries and international standards such as those of the ILO. The purpose of this questionnaire is not only toascertain the level of human rights compliance efforts, but also to promote continuous improvement by investigating andimplementing corrections and measures based on the evaluation results from each BU or Group company.
Hitachi has also created a Human Rights Risk Management Implementation Manual. It complements the guidelines
for implementing HRDD prepared in 2014 and enables the guidelines to be applied more effectively in the operations of ourbusiness units and Group companies. The manual was reviewed by the nonprofit organization Shift. It provided advice on its
consistency with the United Nations Guiding Principles on Business and Human Rights and on the explanations in the manualfor each step of the HRDD process. Shift also delivered lectures to Hitachi business units and Group companies on the latest
developments concerning business and human rights, and on the importance of HRDD.
Implementation Status of HRDD
Initiatives
FY 2013

Implemented HRDD pilot programs at certain Group companies and analyzed and evaluated human rights risks in six ASEAN
countries with the support of the nonprofit organizations Shift and Business for Social Responsibility (BSR).

FY 2014Developed a document with guidelines for implementing HRDD in collaboration with ShiftFY 2015

Initiated HRDD in procurement divisions under the guidance of Shift. Assessed and prioritized human rights risks that employees arelikely to confront in the supply chain and explored mitigation strategies

FY 2016

Launched HRDD in human resource divisions under the guidance of Shift.
Assessed and prioritized human rights risks for employees and explored mitigation strategies

FY 2017

Incorporated results of HRDD in procurement divisions into the revision of CSR procurement guidelines for suppliers; revised
the checklist used in supplier CSR monitoring (self-checks)

FY 2018

Assessed and prioritized human rights risks in some business units and Group companies under Shift’s guidance and discussed
medium-term action plans
Implemented self-checks for about 100 Group companies in Southeast Asia using checklists for suppliers with the support of Verite
Southeast Asia

FY 2019

Analyzed and reassessed results of HRDD to date to determine human rights risks that the Hitachi Group must address as a whole

FY 2020

Launched the HRDD promotion project team. Created a questionnaire on Group-wide priority risks (forced labor and migrantlabor) with the support of the nonprofit organization ASSC and used it within the Hitachi Group. Prepared a Human Rights Risk
Management Implementation Manual with the help of Shift.

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Addressing the Risks of Child Labor and Forced Labor
Activities

The Hitachi Group Codes of Conduct clearly express
Hitachi’s firm stance against the use of child labor or forcedlabor either in Group companies or in our supply chain.
Recognizing the growing risks of forced labor amid theongoing globalization of business, Hitachi also developed
an e-learning program for all Group executives andemployees on the subject of human rights. The program
draws on specific case studies to convey the importanceof preventing forced labor and human trafficking problems
before they occur.
Hitachi’s CSR procurement guidelines for suppliers also
clearly forbid the use of child labor or forced labor. As partof our efforts to raise awareness in our supply chain, we
distributed these guidelines to tier 1 suppliers and conducted
CSR procurement seminars in China and Thailand.
In fiscal 2020, the Hitachi Group prepared aquestionnaire concerning forced labor and migrant labor,
which were defined as Group-wide priority risks. In fiscal
2021, we will use this questionnaire to evaluate the progressof this initiative within the Hitachi Group and we also plan tosurvey suppliers.

GRI 408-1/409-1

Human Rights Awareness Initiatives Targeting Suppliers and Procurement Personnel
TargetInitiatives

Employees responsible for procurement
and human resources in Southeast Asia

Held a four-part webinar series led by speakers from NGOs and businesses implementing
advanced countermeasures

Suppliers in China

Held CSR procurement seminars to explain the Hitachi Group’s CSR activities and respectfor human rights

Suppliers in Malaysia

Conducted on-site visits and interviews regarding the working and living conditions of
migrant laborers, who are considered at high risk of bonded labor and other issues

Suppliers in China

Held CSR procurement seminars to explain the SDGs and other recent sustainability
trends, as well as how environmental and labor issues, including human rights, are linked tobusiness risks

European Group companies

Procurement personnel from European Group companies formed the Responsible Supply
Chain Working Group

Suppliers in China

Held CSR procurement seminars to explain Hitachi Group CSR policies and activities as wellas the severity of human rights risks

European Group companies

Created a webinar titled “Implementing the UN Guiding Principles on Business and Human
Rights” for procurement personnel in the working group mentioned above

Suppliers in Thailand

Held CSR procurement seminars to explain forced labor by providing case studies

European Group companies

Introduced human rights risk analysis into the selection of suppliers which should receive
Supplier Assessment Questionnaires (CSR self-checklists). The above-mentioned working
group discussed the self-check results under the guidance of Shift and explained thesituation regarding the development of due diligence legislation in Europe.

Suppliers in China, Thailand, and other
Asian countries

Used e-learning to explain CSR measures to suppliers in China during the COVID-19
pandemic. For suppliers in other parts of Asia CSR briefing webinars were held. By sharing
the results of supplier CSR monitoring activities in the region we raised supplier awarenessthereby helping each company to enhance its CSR activities.

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

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Contents

Introduction

Management

Environmental
SocialResponse to Technical Intern Training Program
IssuesActivities

In 2018, the Organization for Technical Intern Training, a legal
entity whose establishment was approved by competent
ministers conducted on-site inspections at Hitachi, Ltd. and
11 Group companies. These inspections identified violationsof the Act on Proper Technical Intern Training and Protectionof Technical Intern Trainees, and the relevant companies
were provided with recommendations for improvement
regarding intern training. Additionally, in September 2019,
Hitachi, Ltd. received an order for improvement from the
Immigration Services Agency of Japan and the Ministry of
Health, Labour and Welfare regarding the construction ofits systems for carrying out proper technical intern training
according to authorized plans.
The companies subject to the improvement
recommendations and orders submitted reports to Japan’s
Organization for Technical Intern Training by October
2019. They stated that relevant improvements had been
completed, and the reports were accepted. We have taken
further strict measures to ensure that no further violation willtake place throughout the entire Group. In March 2020, we
implemented Group-wide policies, guidelines, and checksystems for technical intern training, and in November webegan conducting internal audits.
We continue to strive to carry out appropriate technicalintern training in accordance with relevant laws and theaims of the Technical Intern Training Program and with due
consideration for human rights on the basis of the HitachiGroup Human Rights Policy.

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Response to Concerns over Uyghur Labor
Activities

In March 2020, a report from the Australian Strategic Policy
Institute indicated that one of Hitachi’s suppliers may beusing Uyghur forced labor in China.
We conducted a social compliance review via a thirdparty based on international standards to review the
supplier’s management system, specifically looking at how
employees were managed, given the allegations stated in
the report. We found nothing to support allegations of forcedlabor. Through various forms of engagement the HitachiGroup will continue its efforts to respect the human rights of
its workers including those employed by suppliers.
P132 Responsible Procurement

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Value Chain ManagementWhy
ー Why it matters ー

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Relevant SDGs

GRI 103-2

As businesses become more globalized, procurement risk is also increasing in supply chains. That is why the Hitachi Group is going beyond mere supply chain risk
management to pursue sustainable procurement instead. We recognize that we must actively work with our suppliers to improve social, environmental, and economic value forour customers. Specifically, we thoroughly screen new suppliers based on the Hitachi Group Global Procurement Code and implement sustainable procurement by conducting
CSR monitoring and audits at suppliers. Going forward, we will be working with suppliers to achieve carbon neutrality throughout our value chain.
Hitachi was founded on the principles of “Harmony, Sincerity, and Pioneering Spirit.” We ensure product quality and safety by adhering to these principles, along with thebasics and ethics, and by putting right and wrong before profit and loss. All employees embrace our policy of making quality and reliability a top priority, and this strengthens
our quality assurance activities. By continuing to provide high-quality, thoroughly safe products, Hitachi will maintain the trust of customers and society.

Note: Hitachi normally refers to its suppliers as “procurement partners” who build business together on an equal footing, but we use the term “suppliers” in consideration of the search ability of external evaluation bodies in this report.

What

How

ー What we are doing ーResponsible
Procurement

ー How we are doing it ー・Strengthening global
partnerships
・Sharing responsible
procurement policies with
suppliers
・Improving support forsustainable procurement
including CSR monitoring,audits, and procurement
briefings for suppliers・Responsible mineralprocurement measures

Policy andpromotion structure

Positioning the Hitachi Group Global Procurement Code as the highest code, Hitachi promotes sustainable procurement
based on Hitachi Group Sustainable Procurement Guidelines and other accompanying guidelines. We are also working toensure sustainable procurement for the entire Hitachi Group. This is done under the guidance of the Hitachi Group CSR/BCP Procurement Committee which is made up of representatives from the business units (BUs), CSR / BCP Procurement
Committees at major Group companies, and the Value Integration Division which reports directly to the president. In fiscal
2021, the committee made a new start as the Sustainable Procurement Council.
Achievements in Fiscal 2020

Share the responsible
procurement policy

Continued distributing the Hitachi Group CSR Procurement Guideline to suppliers
Implemented CSR monitoring for suppliers using check sheets (Target: 271 suppliers)

CSR monitoring/ auditing

Conducted CSR audits in China and other Asian countries (Target: 27 suppliers)Prepared a questionnaire on forced labor and migrant labor to help manage human rights risks

Hold CSR Seminar for
Suppliers

Explained Hitachi Group CSR measures using e-learning, and held CSR Seminar for Suppliers (Target: 450 suppliers)

Responsible mineralprocurement measures

Continued surveys on supply chains and the countries of mineral origin using the Conflict Minerals Reporting Template (CMRT)

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Contents

Introduction

Management

Environmental
SocialInnovation Management

What・Practicing our policyof making quality andreliability a top priority
・Adhereing to basics andethics, and putting rightand wrong before profit
and loss

Human Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social DataHowー What we are doing ー

Quality andProduct Safety
Management

Socialー How we are doing it ー

Policy andpromotion structure

We are promoting quality and safety as part of the Hitachi Group Code of Conduct, and our basic quality assurance
principles are outlined in the relevant section of the company rules. In order to thoroughly promote quality governance,
we are strengthening our promotion structure to put the safety and security of our customers first. This is being achieved
by making the quality assurance departments of Hitachi business units and Group companies independent from thebusiness divisions.
Achievements in Fiscal 2020
Strengthened customer satisfaction (CS) and organizational structure for quality assurance
Carried out technical law compliance activities

Improve product reliability
and customer satisfaction

Promoted product safety activities
Promoted quality assurance activities globally
Promoted accident prevention activities and emergency responses to product accidents
Conducted quality and reliability education

Customer
Satisfaction

・Improving CS by reflecting
customers’ voices in ourbusiness・Digital marketing that isalways based on personal
information protection
rules・Promoting advertising
activities
・Providing comprehensive
customer support online
・Improving CS in home
appliances

Policy andpromotion structure

Dedicated account managers serve as gateways for corporate customers to deal with Hitachi Group companies in Japan. The
entire Group works with these managers to build even closer relationships with clients and to improve customer satisfaction (CS).
Achievements in Fiscal 2020

Continue CS activities

Held seminars and forums to improve CS

Conduct suitable
advertising activities for
products and services

Promoted communication activities based on our Advertisement Guidelines and Social Media Policy

Promote CS activities
using customer
inquiry personnel andquestionnaires

Website inquiries to comprehensive customer support: 5,220

Conducted a customer satisfaction survey using the Evaluation Survey for Customer Repair Services (Satisfaction rate: 94.6%)

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Responsible Procurement
Basic Procurement Guidelines
PolicyGRI 102-9

The Hitachi Group attaches great importance to conductsustainable business (ESG) for increasing the values ofenvironmental, social, and economic goals. In our value
chains, we also believe that developing our business withsustainability will lead to prosperity for suppliers and the
Hitachi Group. Amid rising risks as businesses globalize, toproactively avoid risks inherent in the supply chains, we aretaking steps to reinforce risk identification and management.
In addition, we are addressing the sustainable procurement
initiatives with suppliers to increase environmental, social,and economic value.
In April 2019, Hitachi instituted the Hitachi Group
Global Procurement Code. Based on the framework of
our sustainable procurement, this is our highest code for
procurement activities. It calls on Group companies andsuppliers to give due consideration to human rights, labor
practices, safety, ethics, quality, and security in the supply
chain. All Group companies follow the code, and we shareglobal supply chain issues within the Group as we engage inprocurement activities. Suppliers are also selected strictly inaccordance with the code’s provisions.
Procurement activities are also carried out according to
the Hitachi Group CSR Procurement Guidelines, which are
based on the results of human rights due diligence (HRDD)
performed by procurement divisions and globally recognized
standards. We reviewed the guidelines in fiscal 2021 andproduced a revision retitled the Hitachi Group Sustainable

Procurement Guidelines.
We will also revise all our policies and procedures
regularly in the future to ensure that they always reflect global
demands regarding corporate supply chain management.
Hitachi Group Sustainable Procurement Guidelines

Sustainable Procurement Management Framework
Structuresystem for enhancing sustainable procurement. As of
fiscal 2021, the committee has established the Sustainable
Procurement Council. The committee members consist of
the heads of procurement divisions at business units andmajor Group companies.
The members will investigate and share strategies for
improving ESG value, while enabling procurement divisions
to further improve supply chain management.

GRI 412-1

With the global expansion of Hitachi’s business, Hitachi
places great importance on the promotion of sustainable
management (ESG) in order to improve environmental,social, and economic value throughout the supply chain, andit engages in discussions at all procurement conferences
and meetings.
CSR supply chain management, responsible minerals
procurement, and green procurement policies andinitiatives are discussed within Hitachi’s Value Integration
Division, which reports directly to the president of Hitachi,Ltd. Policies and initiatives adopted after this discussion
are shared throughout the Group through the Hitachi Group
CSR/BCP Procurement Committee, which includes CSR/BCP Procurement Committees members from business
units and key Group companies.
In fiscal 2020, in order to strengthen the sustainableprocurement management framework, Hitachi, Ltd.
decided to rename and redefine the Hitachi Group CSR/BCP Procurement Committee. This was done based ona multi-faceted discussion of the Group’s management

Number of HitachiGroup suppliers(as of March 2021)

30,000Approx.

companies(66 countries)

Sustainable Procurement

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Contents

Introduction

Management

Environmental
SocialSupply Chain Management Organizational Structure

Value Integration Division

Policy/strategy formulation for social,environmental, and economic value
improvement(Managers from each procurement division)
Group Procurement Strategy
Meeting (biannual)
BU Procurement
Meetings(annual)Regional procurement
conferences(Once or twice annually
per region)

Category Strategic
Conference(annual)Sustainable
Procurement Council(biannual)

Incorporation/implementation in work/
production lines(All procurement personnel)
BU
procurement members

Major Group company
procurement members

Human CapitalStrengthening Global Partnerships
Structure

President & COO

Innovation Management

SocialActivities

GRI 204-1

A key element of the Hitachi Group Vision is to strengthen
our partnerships with suppliers.
In order to promote procurement based on local
production for local consumption in line with our business
policy of international expansion, we have appointed
procurement officers to oversee local procurement in China,
the rest of Asia, Europe, and the Americas. These officers
carry out activities such as CSR audits, CSR monitoring (selfchecks), and CSR Seminar for Suppliers in their respective
regions to strengthen sustainable procurement.
Local procurement officers in China are also responsible
for addressing environmental risks in China. Throughthe Institute of Public and Environmental Affairs, anenvironmental NGO, the officers obtain information about
polluting enterprises made public by China’s central andregional government bodies. They use this information not
only for screening businesses which have transactions
with these enterprises but also for urging the enterprises
themselves to make improvements.

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Sharing Responsible Procurement Policies
with Suppliers
Activities

To share procurement policies with the approximately 30,000
suppliers of Hitachi business units and Group companies,
Hitachi, Ltd. is undertaking the following initiatives.

Distributing the Hitachi Group CSR
Procurement Guidelines
To ensure that the guidelines are strictly followed,
Hitachi, Ltd. makes them available in Japanese, English,
Chinese, and Thai and distributes them to approximately
30,000 suppliers around the world. We also request
acknowledgment in writing by suppliers that they understandthem. We reviewed the guidelines in fiscal 2021 andproduced a revision retitled the Hitachi Group Sustainable
Procurement Guidelines.

Rate of Local Procurement of Materials for Main Regions

China

98%

Rest of Asia

77%

Europe80%

Americas70%

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Contents

Introduction

Management

Environmental
SocialSharing Our Green Procurement Policies andRelated Initiatives
We distribute guidelines that define our basic position on
procuring environmentally friendly parts and products as wellas our requirements of suppliers.
The guidelines set out requirements, such as
establishing environmental management and recommend
obtaining environmental certificates. They also include
environmental conservation—reducing the impact of
products supplied to Hitachi, such as conserving resourcesand energy, recycling, managing chemical substances in
products, and fully disclosing related information.
To address the issue of chemical substances in
products, we recommend using chemSHERPA*¹ CI/AI,
a standardized format for communicating information on
chemical substances in products throughout the supply
chain.
Also, as an initiative aimed at realizing carbon neutrality,
we plan to request that 70% of our suppliers (based on
the total amount of our transactions and does not include
publicly listed subsidiaries) have CO₂ reduction plans.
*1 chemSHERPA: Developed by the Japanese Ministry of Economy, Trade,and Industry to facilitate the management of chemical substances in
products by creating a standardized format throughout the supply chain. The
chemSHERPA-CI standard is applicable to chemical substances containedin chemical products and chemSHERPA-AI to those contained in molded
products.

Green Procurement Guidelines
Supplementary Data

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Implementing Sustainable Procurement
Activities

Hitachi considers the development of business with anemphasis on sustainability to be an activity that will leadto mutual prosperity for the Hitachi Group as well as our
suppliers. Based on this philosophy, we engage in CSR
monitoring, CSR audits, and CSR Seminar for Suppliers topromote and implement sustainable procurement.

CSR Monitoring (Self-Checks)
We ask key suppliers to conduct CSR monitoring (selfchecks) using checklists based on the Hitachi Group CSR
Procurement Guidelines. After collecting and analyzing
the results, we provide feedback for related business
operations to suppliers, and then work with those involvedin the operations to resolve issues related to the suppliers.
We are also reinforcing our onboarding procedures for
new suppliers in Japan, including providing them with theguidelines and asking them to complete a checklist. In fiscal
2020, the Human Rights Due Diligence (HRDD) Promotion
Project Team established at the headquarters of Hitachi,Ltd. created a questionnaire concerning the use of forcedlabor and immigrant labor. This issue has been defined
as a human rights risk that the entire Hitachi Group must
address. In fiscal 2021, the Group will require suppliers
to take the questionnaire, and will strive to ascertain theactual risk situations at suppliers. We want to help suppliers
improve their efforts in this area, including addressing any
human rights issues they may have.

GRI 308-2/414-2

Implementation of CSR Audits
Hitachi, Ltd. has been auditing the manufacturing bases of
its and Group companies’ suppliers in China and the restof Asia. For these audits, we engaged external evaluatorssuch as the experienced CSR auditing company Intertek
Certification.*1 Our audits are based on the international
SA8000 certification standard developed by Social
Accountability International (SAI), an American CSR
evaluation institution. These audits investigate our workplace
practices, and an Responsible Business Alliance (RBA)recognized auditor checks suppliers’ CSR initiatives from theperspectives of labor and human rights, health and safety,
the environment, and ethics. Suppliers needing improvement
were requested to submit improvement action plans, andHitachi, Ltd., together with Group companies, will work withand advise the suppliers until they complete the planned
improvements.
*1 Intertek Certification: With a presence in over 100 countries across the globe,
the Intertek Group provides a wide array of certification services in every
industrial field.

P126 Human Rights Due Diligence (HRDD) Initiatives

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Contents

Introduction

Management

Environmental
SocialInnovation Management

SocialHuman Capital

Violations in Fiscal 2020

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Increasing Green Purchasing of Office Supplies

In fiscal 2020, audits were conducted of 27 suppliers in China and the rest of Asia. Though there were no significant violations, the following
minor problems were identified with some suppliers, which were accordingly asked to remedy the issues.

Activities

Hold CSR Seminar for Suppliers

Hitachi is improving our green purchasing rate*¹ by usinga Group-wide online procurement system called theE-sourcing Mall. This system has a range of environmental
friendly products and promotes procurement by clearlylabeling these products. In fiscal 2020, our green purchasingrate reached 83%.

In order to share the philosophy of Hitachi among our suppliers, we provide suppliers directly with information. Specifically, we holda CSR Seminar for Suppliers for Hitachi Group’s suppliers in China and the rest of Asia.

*1 Green purchasing rate: The percentage, by monetary value, of products with
the Eco Mark among all products purchased subject to the Act on Promoting
Green Procurement.

Activities in Fiscal 2020

Response to the Conflict Mineral Issue

Failure to comply with legal working hours including overtime:
Failure to provide sufficient emergency exits, or to provide or repair exit signage:Failure to provide appropriate discharge methods for wastewater/exhaust gases from production processes:

18 suppliers
27 cases
7 suppliers

In fiscal 2020, in consideration of factors including travel restrictions put in place to prevent the spread of COVID-19, we decided to use
e-learning to explain the Hitachi Group’s CSR policies to suppliers in China rather than holding a face-to-face seminar. For suppliers
elsewhere in Asia, we held a webinar on CSR which was attended by 84 participants from 78 companies. In the webinar, we showedGroup-wide CSR procurement activities and CSR-related initiatives and indicated CSR monitoring results (as averages) for suppliers in Asia,
separated by category, to raise awareness with the aim of strengthening each company’s CSR activities in the future.
Through this meeting, we received feedback such as “I would like to share information on CSR policies from companies other than
Hitachi,” and “I would like to discuss what we should do to help CSR culture take root in our company.” We believe that the webinar helped
participants deepen their understanding of our efforts on CSR and green procurement activities. Also, in a survey we conducted following
the webinar, we received an 88% approval rating regarding the online format and a 97% approval rating regarding the content of Hitachi’s
CSR monitoring questionnaires.

CSR Procurement Activities Implementation Status Fiscal 2020

CSR monitoring (self-checks)

271

companies

CSR audits

27

companies

CSR Seminar for Suppliers

450

companies

PolicyStructure

Activities

In fiscal 2013, Hitachi formulated its Conflict Minerals
Procurement Policy, declaring its stance and commitments
regarding conflict minerals. The policy was revised in fiscal
2016 to explicitly lay out measures to be implemented toensure responsible procurement. Expanding the scope ofcorporate responsibilities for the procurement of minerals
is a global trend, with companies increasingly expected toaddress the overall risks to human rights as well as conflictrisks, and recognize responsibilities that extend beyond thecountries adjoining the Democratic Republic of the Congoto a wider area where the risks are high. In considerationof this, in fiscal 2021 we revised this policy to formulate the
Hitachi Group’s policy the Responsibility Supply Chain of
Minerals.
Sales divisions, business groups, plants, procurement
divisions, and other divisions within individual business unitsand Hitachi Group companies work together to respondto investigation requests and inquiries relating to conflictminerals. We also strive to grasp developments in conflict
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Contents

Introduction

Management

Environmental
Socialmineral-related laws and regulations in each country andregion and what global society demands of enterprises, andwork to share information within the Group.
Each Hitachi business unit and Group company
investigates its use of conflict minerals and reports theresults to customers when requested. Supply chain
investigations are carried out with the cooperation of therelevant entities’ sales, procurement, and CSR divisions. In
addition, Hitachi, Ltd., a member of the Japan Electronics
and Information Technology Industries Association (JEITA)’s
Responsible Minerals Trade Working Group, has beenaddressing the issues of conflict minerals with othermembers of the association.
In fiscal 2020, we checked on the investigation andreply results on Hitachi, Ltd. and key Group companies
through January to December 2019. As a result, we havenoticed that Hitachi, Ltd. and three key Group companies(Hitachi Metals, Hitachi High-Technologies, and Hitachi
Astemo) performed investigations and replied to a total of
1,645 requests from customers.
P024 Main Groups in Which Hitachi Participates

SocialInnovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Hitachi Group’s Policy for the Responsible Supply Chain of Minerals
The Hitachi Group is committed to responsible procurement activities as its policy to ensure that the procurement of materials containing
conflict minerals (tin, tantalum, tungsten, and gold) and cobalt does not encourage the activities of armed groups, human rights violations
including child labor, corruption, and environmental destruction in the conflict and high-risk regions.
The Group also respects the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and HighRisk Areas and conducts more detailed investigations based on the Guidance while understanding social issues and the expected roles ofcompanies in the regions.
For its suppliers, the Group will continue to inquire into their minerals’ country of origin and supply chains using the Conflict Minerals
Reporting Template (CMRT) issued by the Responsible Minerals Initiative (RMI), and request its suppliers to procure minerals from smelters
certified under RMI’s Responsible Minerals Assurance Program (RMAP).

Hitachi’s Conflict Minerals Response Framework
Headquarters

Individual BUs/Group companies
Raising awareness/
information provision

Customers

CSR
division
CSR
division

SupportCoordination
Procurement Support
division

Grasp national Imformation
regulatory trends sharing
Grasp global
trendsInformation
sharing

Understandcustomer needs

Sales divisions
Contacts in business groups/plants(technical divisions, etc.)
QA divisions/R&D divisions*²

Coordination
Raising awareness/
information provision

Sustainable
Procurement
Council
Grasp national
regulatory trends
Grasp global
trendsCheck specifications
Check for presence of
3TG*¹

Supplier
investigation
Raisingawarenessof supplier

Procurement divisions
Consultation

Supplier A

Supplier B

Supplier C

Supply chain due diligence by individual BUs/Group companies*1 3TG: Collective term for four commonly used conflict minerals: tin, tantalum, tungsten, and gold.
*2 May differ depending on business unit or Group company

Hitachi Group’s Policy for Responsible Supply Chain of Minerals

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Contents

Introduction

Management

Environmental
SocialQuality and Product Safety Management
Hitachi’s Approach to Quality Assurance Activities
Approach

As stipulated in the Hitachi Group Codes of Conduct, we
aim to meet customer needs and specifications whenproviding products and services. We strive to ensure
quality and safety by setting independent standards asnecessary, in addition to complying with all relevant laws
and standards. The Quality Assurance Standards in our
corporate regulations also set out our basic principles for
quality assurance. Embracing the Hitachi Founding Spirit of“Harmony, Sincerity, and Pioneering Spirit,” we adhere tobasics and ethics and put right and wrong before profits andlosses, with all employees sharing our policy of prioritizing
quality and reliability above all else. We are strengthening
the organization and management, technology, andhuman capital aspects of our quality assurance activities
in every process—from planning and development todesign, manufacturing, testing, delivery, and maintenance.
Furthermore, under our approach of making prevention the
duty of quality assurance, we are strengthening beyond
reoccurrence prevention and striving toward preventing
incidents from occurring in the first place.
Our unique practice of OCHIBO-HIROI, which means“gleaning” in English, involves analyzing and learning fromfailure to further develop our technologies. When an incident
occurs, we not only investigate the technical causes but also
thoroughly discuss the process, framework, and motivating
factors leading up to the occurrence, along with ways toprevent reoccurrences, in order to improve our productreliability and customer satisfaction.
Hitachi Group Codes of Conduct

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

GRI 417-1

Framework for Quality Assurance and Quality Assurance Activities
Structure

To ensure full control over quality governance, Hitachi
has separated the quality assurance division from the
manufacturing division in every business unit and Group
company, creating a framework for activity in which its
customers’ safety and trust are the top priorities. In order tostrengthen this framework further, we have made BU andGroup company quality assurance divisions independent ofbusiness divisions and reinforced their reporting lines to the
Quality Assurance Division at our head office, establishingsystems for close information sharing between the two sides.
We are also strengthening governance by giving greater
authority to the Quality Assurance Division at our head office.
Regarding our services business, which continues togrow in scale, we have established a Service and Software
Quality Enhancement Division and are sharing quality
activities and current challenges, while also enhancing thereliability of our embedded software as the field becomes
more advanced and complex by applying our solutions
division’s software development capabilities and expertise tostrengthen the reliability of our product divisions (embedded
software development divisions).

Technical Law Compliance Activities
Distribute product regulations worldwide, along with
amendment trends and enforcement dates, among
Hitachi Group companies.
◦ Clarify product-specific laws (the product-specific lawsmap); regulatory compliance activities, and continuous
process improvements based on our product compliancemanagement system.

Product Safety Activities◦ Ensure safety by reducing risks through design(fundamental safety design), protective measures(safeguards), and usage information (such as user
instruction manuals).
◦ Conduct risk assessments from a wide perspective incollaboration with related business units and researchlaboratories.
◦ Make the safety of our customers’ life, health, andproperty the top priority in product development andverify safety at every step, from development andproduction to sales and maintenance.
◦ Use the Guide for Preparing User Instruction Manuals toimprove risk communication with our customers.

Global Quality Assurance Activities◦ The Hitachi Group is building a worldwide quality
assurance system by globally deploying Hitachi’s basic
principles of quality assurance along with its Quality
Assurance Standards. We are receiving accident reports
from Group companies outside Japan, and as in Japan,
we are also establishing international quality assurance
reporting lines that are independent of the businessdivisions, as well as practicing OCHIBO-HIROI. Throughthese activities, we promote the establishment of a global
quality assurance framework.

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Contents

Introduction

Management

Environmental
SocialResponding to Product Incidents

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Quality and Reliability Education
Employee Engagement

Structure

When a product incident occurs, the division responsible
acts swiftly to resolve the problem. In the case of a severe
incident, we report to government agencies in line with legal
requirements and disclose information about the incident tocustomers on our website and through other communication
channels. At the same time, we ensure a status report is
promptly submitted to top management, ensuring fast andappropriate action at all companies across the Group.
In the case we determine that retroactive action isnecessary, we notify customers via newspaper advertising
and websites in order to carry out the necessary repair or
replacement program.

We conduct field-specific technical lectures for engineers
engaged in MONOZUKURI (craftmanship) at a range oflevels from basic to expert.
Each business unit also conducts specialized technicalcourses regarding manufacturing, quality assurance, andmaintenance at their quality assurance training centers.

Response Flow in the Event of Product Incident

Incident
occurrence

Hitachi Group

Information
gathering

Top management
CustomerliaisonCustomers,
retailers

ReportQA Division
Confirmation of status

Emergency
response
authorities

Investigative
committee on
serious productincidents

Investigation of cause

Response andreportingConsumer Affairs
Agency, etc.

On-siteinvestigation

Product
investigation

Investigation ofdamage scope

Decision on
seriousness

Seriousproduct
incident

Product recall Notification
via web, media

Flow of information
ReportInformation sharing

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Contents

Introduction

Management

Environmental
SocialCustomer Satisfaction

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

GRI 103-2

Structure for Reflecting Customers’ Voices

Advertising Activities

Structure

PolicyThe sales and marketing divisions at Hitachi, Ltd. use customer input in developing management, product, and solution strategies.
We identify key customers who will help grow our business, then assign an account manager to each one. These accountmanagers serve as customers’ “portals” into Hitachi Group companies in Japan, and the whole Group works with them to build
closer relationships with customers, including the following initiatives for improving customer satisfaction (CS).
Initiatives for Improving CS
Initiative

Location

OutlineExecutive seminars

Headquarters and branches inJapan

Engage in direct dialogue with customers to learn their expectations ofHitachi and opinions about product strategies, and use this knowledge
to create sales activity proposals based on customer needs

Hitachi Social Innovation Forum

Global

Accelerate collaborative creation with customers in Hitachi’s Social
Innovation BusinessTechnology Community program

R&D sites in Japan

Create opportunities for researchers to speak directly with customers
and contribute to collaborative creation of new businesses based on
customer needs and Hitachi technology

Digital Marketing
Activities

Based on strict personal information protection rules, Hitachi collects and analyzes customer information acquired from participantsin various online seminars and events, and from website browsing history data. Our digital marketing activities are used for productdevelopment, improvement of customer service, and sales promotion activities linked with a sales support system (SFA).
P183 Personal Information Protection

Because Hitachi, Ltd. believes that advertising activities mustshow proper consideration for society as a whole as well ascomplying with laws and regulations, it has established a setof Advertisement Guidelines which are followed and updated
in line with social developments.
To ensure that these guidelines are strictly followed
at all business locations globally even where languages
and customs may vary an Advertising Material Checklist
is included. All items on the checklist are confirmed whencreating advertisements.
When conducting communications and promotional
activities on social media channels, we abide by the Hitachi
Social Media Policy to not only protect our brand but also
avoid violating the rights of others. It stipulates our policies
for social media use and specific promotional methods.
To raise awareness of this policy among members of thecompany, we carry out e-learning activities in Japanese,
English, and Chinese about the use of social media andaddressing associated risks.

Providing Customer Support Online
Activities

Hitachi offers comprehensive global customer support
on its website to respond to customer inquiries, opinions,requests, and complaints.
We also conduct training courses like our Web Inquiry
Responsiveness Improvement Course to improve our
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Introduction

Management

Environmental
Socialhandling of these inquiries. The course has been held
since fiscal 2009. Going forward, we will continue to utilize
our websites as important ways to communicate with ourcustomers. The Hitachi Group will work to strengthen andimprove cooperation among its member companies in orderto respond more quickly and accurately.
Customer Support Activities in Fiscal 2020

Inquiries to comprehensive
customer support

Web Inquiry ResponsivenessImprovement Course
attendees

5,220

Not held in fiscal 2020 due to thepandemic (858 attendees in total
since fiscal 2009)

Activities

The Home Appliances Customer Satisfaction Division
provides services and solutions to improve the quality of life
for people of all ages and regions. In Japan, these initiatives
are carried out under the slogan, “360° Happiness: Moresmiles to life for one and all.”Our call center and website handle about 2.10 million
customer inquiries, repair requests, and complaints aboutwashing machines, refrigerators, and other appliances per
year.*¹ We have undertaken a number of initiatives to better
respond to inquiries and to reflect customer feedback in ourmonozukuri (craftmanship), including improving the contact
success rate by using outsourcing; creating a database ofcustomer feedback including consultations, inquiries, andcomplaints; and enhancing our website’s FAQ section.
We also conduct semiannual customer service

Innovation Management

Human Capital

evaluation surveys at approximately 90 service centers inJapan. Based on the answers, we improve services throughCS training courses and other programs.
In fiscal 2020, more than 20,000 customers responded
to the questionnaire, and 94.6% of them expressedsatisfaction with our customer service.
With the expansion of Hitachi’s markets, sales offices
and manufacturing sites have been opened mainly in Asia,and the Near East and Middle East. We are also working on
unifying management of operations outside Japan.
*1 Since fiscal 2013, technical inquiries from suppliers and parts orders havebeen excluded from these statistics.

Customer Contact Cases, Call Completion Rate*¹(12-Month Average)(%)(Cases per month)
100,000

Improving CS in Home Appliances

Social

76.4

82.3

82.3

100

82.0
62.3＊280,00060,00036,91938,81732,26436,28020,000

40

(FY)
2016

2017

Human Rights

2018

2019

2020

Assurance

Value Chain Management

Community

Social Data

Results of Evaluation Survey for Customer Repair Services (CS)
（％）
100
95

97.4

97.3

97.3

96.5

94.6

90
85
80
75
0

2016

2017

2018

2019

2020

(FY)

Notes: Target scope:	Customers for whom repairs services are provided(approx. 1.09 million cases a year)
Response rate: 32% (20,705 responded out of a total of 64,200)
Question:	How satisfied were you with the service from the repair
request to completion?
Responses:	Satisfied/Somewhat satisfied/Somewhat
dissatisfied/Dissatisfied (4 levels)
Satisfaction level:	Percentage of respondents who answered “Satisfied”
or “Somewhat satisfied”

Flow of Customer Service

60

36,40740,000080

Governance

Customers
Response

Inquiry

RepairRepair request

200■ White goods (electrical home appliances and other products) and brown
goods (electronic equipment) (left scale)⃝ Call completion rate (right scale)* 1 Call center call completion rate
* 2 The reason for the significant change in the completion rate is due to callcenter staff reductions as part of measures to prevent the spread of COVID-19
and due to the double-digit increase in the number of calls received comparedto the previous year.

Customer Support Center(no repair)

Repair Contact Center

Input indatabase
Feedback on
improvements

Information
on repairservice

Feedback

Individual business division
Qualityassurance
division
Response activity

Designdivision
Flow of information

Hitachi Sustainability Report 2021

Manufacturing
division
Information sharing

140

Contents

Introduction

Management

Environmental
SocialCommunityWhy
ー Why it matters ー

Innovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Relevant SDGs

GRI 103-2

Hitachi aims to create social and environmental value not only through the Social Innovation Business but also by making social contributions and is working actively tocontribute to the sustainable development of both society and business. We believe that Hitachi, as a company seeking to resolve social issues through innovation, has animportant mission to foster not only its own human capital but also those who will contribute to society in the field of science and technology more broadly. We are focusing
our efforts on activities related to science, technology, engineering, arts, and mathematics (STEAM) education, which has gained attention as a tool for fostering human capital
capable of using cutting-edge technologies to enhance their creativity, expressivity, and problem-solving skills. As a global company, we also support charitable and volunteer
activities among employees, because it is essential for employees to actively volunteer their time and to participate in charitable work to address local issues and needs if weare to build trust with local communities and grow together with them as a good corporate citizen.

What

How

ー What we are doing ーSocialContribution
Activities

Social・Promoting social
contribution activities
in the areas of STEAM,
the environment, andcommunity engagement
・Promoting social
contribution activities
through the Hitachi Global
Foundation
・Providing support related
to COVID-19

ー How we are doing it ー

Policy andpromotion structure

Guided by our vision of “Nurturing People, Connecting to the Future,” we are working to develop a wide range of social
contribution activities worldwide, including volunteer and pro bono work. In fiscal 2021, we have also introduced a newsocial contribution scheme in which employees and the company work together to make donations.

Achievements in Fiscal 2020
Despite the impact the COVID-19 pandemic has had on many of our activities, we provided over 1.91 billion yen (a 4.2% increase comparedSocial contribution activity
to the previous fiscal year) in funding toward social contribution activities worldwide, including human resources development and support for
funding and number ofdisaster-struck areas. Additionally, 39,982 Hitachi Group employees (around 11% of the total, a 54% decrease compared to the previous fiscal
participating employees
year) participated in social contribution activities.

Provide STEAM
education

Amid the impact the COVID-19 pandemic has had on many of our activities, we have switched to online platforms for some, including workshops
for schoolchildren in Singapore and Japan.

Support through the
Hitachi Foundation

The Hitachi Foundation established a new research grant under the Hitachi Fund Support for Research Related to Infectious Diseases to promoteacademic research on topics such as COVID-19 and to share the findings internationally.
Provided US$1 million to support business owners impacted by COVID-19 through loans by the nonprofit organization Kiva

Provide support related
to COVID-19

Donated about 50 million yen to the Japan Committee for UNICEF and charitable institutions in India, and provided 500 oxygen concentrators(worth approx. 30 million yen) to Hitachi Group companies in India.

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Contents

Introduction

Management

Environmental
SocialSocial Contribution Activities

Innovation Management

SocialHuman Capital

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

GRI 201-1

Policy on Social Contribution Activities
PolicyIn order to achieve the 2021 Mid-term Management Plan, Hitachi is committed to creating social and environmental value throughthe Social Innovation Business. At the same time, we are actively promoting social contribution activities in regions where we
operate, conscious of the fact that these activities will help create social and environmental value as well as contributing to thesustainable development of both society and business. In fiscal 2019, we reviewed our policy on social contribution activities
based on the belief that we, as a company aiming to resolve social issues through innovation, have an important mission to foster
not only our human capital but also those who will contribute to society centered on the field of science and technology. We
also provide our employees with opportunities to actively volunteer their time in response to the needs and challenges of local
communities, as well as supporting those communities through donations and pro bono activities. We believe this is essential inforging good relationships with local communities and growing together with them as a good corporate citizen.
Social Contribution Activities

Social Contribution Activities

Policy on Social Contribution Activities
Nurturing People, Connecting to the Future
At Hitachi, our Corporate Mission, “to contribute to society through the development of superior, original technology and products,” isthe basis for everything we do. We believe it is our purpose to contribute to solving societal and environmental issues and help achieve theSustainable Development Goals (SDGs) by accelerating our Social Innovation Business, as well as undertaking corporate citizenship activities.
Central to this goal are people: people in our business, people in our local and global communities, and people who are our future.
Ultimately, it is individuals that have the ability to create innovation, bring social impact, and deliver social good to society.
Therefore, the Hitachi Group is committed to investing in, developing, nurturing, and empowering future generations, together with our
employees and diverse stakeholders in the following areas:

Funding for Social Contribution Activities
Activities

GRI 413-1

In fiscal 2020, Hitachi and The Hitachi Global Foundation
provided over 1.9 billion yen in funding toward social
contribution activities worldwide, including initiatives tocultivate a talented younger generation and financial
donations and other support for disaster-struck areas.
Additionally, while a cumulative total of 39,982 Hitachi Group
employees (around 11% of total employees) participatedin social contribution activities, the number amounted toless than half of the previous fiscal year’s total due to theworldwide spread of COVID-19.
Hitachi Group employees are contributing to society
through community-based activities in various forms andareas, such as cleaning up around our business sites, visiting
and donating goods to welfare facilities, and participatingin charity events. Many employees make full use of theirknowledge and skills acquired through work to contributeto society, such as running workshops for schoolchildren on
a wide range of themes, from science and the environment
to career education, and implementing programs aimed tosupport non-profit organizations through pro bono activities.

◦ STEAM (science, technology, engineering, arts, and mathematics)◦T he environment◦C ommunity engagement

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Contents

Introduction

Management

Environmental
SocialBreakdown of Funding for Social Contribution Activities in Fiscal 2020

43.5%

Community
supportHumandevelopment

1,910.47

million yen*1

1.2% Environment

10.8%*1 Japan: Hitachi, Ltd., 119 Group companies, and the Hitachi Global

Foundation.
Outside Japan: 209 Group companies.
Funding includes monetary and in-kind donations, independently organizedprograms, participation or dispatch of employees, community use of facilities,
and employee donations; excludes personnel costs incurred from theparticipation or dispatch of employees.

88,134

2,195*2
1,953*1

1,500
1,000

Community

Social Data

Hitachi promotes human development activities centered on fostering the next-generation of human capital as a priority area
for social contribution activities. We are actively working on a wide range of issues at global and local community levels andimplementing programs to support development of next-generation leaders and science and engineering human capital.
The cultivation of talented IT professionals in particular is a global challenge amid the rapid development of IT using AI and big
data. In recent years, we have therefore been focusing on activities related to STEAM education, which has gained attention as atool for fostering human capital capable of utilizing cutting-edge technologies to enhance their creativity, expressivity, and problemsolving skills.
In fiscal 2020, many social contribution activities were interrupted by the COVID-19 pandemic while some were moved online.
Hitachi also provided support for business owners, researchers, and medical professionals.
Specific Examples of Social Contributions

1,888

53,74953,74954,62954,629

948

841

*3

100,000

1,833*4

1,910*5

39,982
32,116957

776

80,00060,000STEAM

40,000527
500
0Value Chain Management

Activity

BU/Group company

Engineering education to develop future enginners in the United Kingdom

Hitachi Rail

Activities to support online science education with electron microscopes in Republic of Singapore

Hitachi High-Tech,
Hitachi Asia

Pro bono activities to help create a world free of hunger

Hitachi Consulting

Online workshop as part of the career education for a junior high school

Hitachi, Ltd.

(people)

2,500
2,000

Human Rights

Assurance

Specific Examples of Social Contribution Activities

Funding for Social Contribution Activities and Number of Participating Employees(million yen)

Human Capital

Governance

Activities

44.5%

Other
(including 11.5%
for disaster relief)

Innovation Management

Social

740

2016

2017

Hitachi scholarship program for the Asian University for Women

20,000
383

278

325

2018

2019

2020

(FY)

0

■ Hitachi, Ltd., the Hitachi Global Foundation (left scale)■ Hitachi Group (left scale) ■ Of Hitachi Group funding, amount related to STEAM⃝ Total employees participating (right scale)*1 Japan: Hitachi, Ltd., 134 Group companies, and the Hitachi Global Foundation.
Outside Japan: 159 companies.
*2 Japan: Hitachi, Ltd., 141 Group companies, and the Hitachi Global Foundation.
Outside Japan: 196 companies.
*3 Japan: Hitachi, Ltd., 142 Group companies, and the Hitachi Global Foundation.
Outside Japan: 152 companies.
*4 Japan: Hitachi, Ltd., 153 Group companies, and the Hitachi Global Foundation.
Outside Japan: 234 companies.
*5 Japan: Hitachi, Ltd., 119 Group companies, and the Hitachi Global Foundation.
Outside Japan: 209 companies.

Environment

Hitachi Young Leaders Initiative

Hitachi, Ltd., Hitachi Asia Ltd

Providing lecturers for The Hitachi Global Foundation’s Hitachi Future Innovator Program

Hitachi, Ltd., Hitachi Group

Providing science workshops for elementary schools as part of the ecosystem

Hitachi, Ltd.

Sato-umi activities

Shikoku Hitachi Group

Support for environmental education programs targeting young people
Community
support

Hitachi, Ltd.

Free provision of company facilities to local residents and groups

Hitachi Construction
Machinery Southern Africa
Some Hitachi Group
companies

Notes: The examples include activities that were suspended in 2020 due to the spread of COVID-19 infection.

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialIntroducing a New Social Contribution Scheme Enabling
Hitachi and Its Employees to Make Donations Together
In fiscal 2021, the Hitachi Group introduced a social contribution
scheme through which donations made by employees in
response to disasters, accidents, disease outbreaks and so on
will be matched by the Group in full. This scheme will serve toprovide support for employees who proactively engage in social
contribution efforts by selecting donation recipients experiencing
social issues in multiple numbers and across multiple countries.
Participating in social contribution activities together with
our employees in this way will serve to increase employee
engagement as well as promote the embodiment of the HitachiGroup corporate credo and further solidify the Hitachi Groupidentity. In fiscal 2021, the Group plans to match donations up to
approximately 30 million yen starting with India, where the spreadof COVID-19 has become more severe, and expanding to othercountries facing a range of different social issues in the future.

Innovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Achievements in Fiscal 2020
The issues created by the COVID-19 pandemic have made one of Hitachi’s core areas for social contribution especiallyrelevant, namely, the promotion of academic research, science and technology. Accordingly, the Hitachi Fund Support for
Research Related to Infectious Diseases was established in fiscal 2020 based on donations from Hitachi, Ltd., its executives
and employees, and Group company executives. Research grants will be provided by the fund starting fiscal 2021.
The Hitachi Global Foundation’s first Asia Innovation Awards were also held in fiscal 2020, and the research findings ofthe award winners have been shared publicly.
As part of Hitachi’s human development efforts, Hitachi Future Innovator Program was provided for elementary schools
while implementing physical distancing measures because of the pandemic. An educational forum was also held online.
With the aim of realizing an inclusive society, Hitachi held a symposium using the webinar format, and many people
from all over Japan participated.
Social Contribution Activities

Specific Examples of The Hitachi Global Foundation Activities
Area

Activity

Contributing to Society Through The Hitachi Global Foundation
Inheriting the intention of Namihei Odaira, the founderof Hitachi, to contribute to society through businessactivities, we wholeheartedly embrace the importanceof social contributions. Since 1967, we have establishedfive foundations, including one for supporting scientists
and another for supporting the development of university
lecturers in Southeast Asia. These formed the basis of The
Hitachi Global Foundation today, which was established in2015 through a merger of the existing five foundations. In
accordance with Odaira’s aspirations, The Hitachi Global
Foundation conducts social contribution activities centered on
the three areas of “promotion of academic research, scienceand technology,” “human development,” and “realization of an
inclusive society”as its core areas, and will develop activities
that meet the social needs through experiences and knowhow that the Hitachi Group has accumulated.

SocialPromotionof academic
research, scienceand technology

Details

Kurata Grants

A program supporting researchers who engage in the pursuit of solutions to social challenges, in creativeand pioneering research in the natural sciences and engineering, or in unraveling the complex challenges
faced by advanced technological societies and exploring the underlying philosophical and historical elements
through research in the humanities and social sciences.
[Total number of grants awarded by the end of fiscal 2020: 1,477]

The Hitachi
Global Foundation
Science andTechnology
Seminars

An awareness-raising initiative providing opportunities for the public to learn more about cutting-edge
research and science and technology topics, with the aim of helping people discover the fascinating fields inscience and the importance of seeing the world from a scientific perspective.
[In fiscal 2020, a technology webinar was given by Professor Hidetoshi Katori of the University of Tokyo entitled,“Optical Lattice Clock: A Clock for Seeing the Distortion of Space- Time.” There were 290 participants.]

The Hitachi Global
Foundation Asia
Innovation Awards

An initiative providing awards for achievements in research and development in science and technology
innovation that help solve social challenges in the ASEAN region.
[Fiscal 2020 was the first year; 14 awards were given.]

Hitachi Fund
Support for
Research Related
to Infectious
Diseases

A new research grant initiative with the aim of promoting academic investigations, analysis, andconsideration of newly apparent issues based on data and evidence with the aim of sharing the findings andresearch results internationally. This grant was established because the COVID-19 pandemic has caused
enormous harm to countries around the world and issues and vulnerabilities have become apparent invarious areas including politics, economics, legal systems, science and technology, and international affairs.
[The fund was officially set up in 2020, and the process of receiving, selecting, and funding applications will
start in fiscal 2021.]

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Contents

Introduction

Management

Environmental
SocialArea

Innovation Management

SocialHuman Capital

Activity

Governance
Human Rights

Value Chain Management

Assurance
Community

Social Data

Details
A program promoting the development of science and engineering human capital targeting Japanese schoolchildren in the upper grades of elementary
school that is aiming to cultivate personality traits (creativity, curiosity, independence, and the spirit to challenge) and abilities (problem finding and solving

Hitachi Future Innovator Program

abilities) required for future human resources in science and technology in order to create innovators who will take a leading role in resolving social issues.
[Total number of schools and students participating as of the end of fiscal 2020: 14 schools and 1069 students]
Held an educational forum webinar entitled, “The Evolution of Education and Japan's Future: Talent Development to Innovate the Future.” There were

Human development

300 participants.

Pioneer Talk interviews on thewebsite My Tomorrow

Realization of an inclusive society

Symposium on the realization of
an inclusive society

A program aiming to support science and engineering education for women in order to promote human capital diversity and innovation by showing the
rewards of science and engineering careers to female junior and senior high school students in Japan.
[In fiscal 2020, female role models from the fields of science and technology were invited as guests and two talks were held.
(The fields of future city planning and building construction) Transcripts of the talks are available on The Hitachi Global Foundation website]
A program urging a new understanding among citizens of the importance of constructing an “inclusive society” which is defined as a society where
people can feel happy and lively transcending differences such as gender, nationality, age, disability, and sexual orientation and accept various positionsand values. [In fiscal 2020, a symposium webinar was held on the theme of foreign education and employment opportunities for Japanese high school
students. There were 589 live-stream viewers and 350 subsequent views.]

The Hitachi Global Foundation Web site

Hitachi Group’s COVID-19-Related Support Efforts
Initiative

Details

Support for business owners

Provided one million US dollars to support business owners impacted by COVID-19 through loans by the nonprofit organization Kiva.

Support for research

A fund of 150 million yen has been established from donations of Hitachi, Ltd., executive officers, corporate officers, and employees to The Hitachi Global Foundation. It is to support research
aimed at promoting prosperity worldwide by implementing evidence-based academic research and analysis to address issues and weaknesses that have become apparent in the international
community during the course of the COVID-19 pandemic.

Donations for medical professionals(funds and supplies)

Medical supplies and equipment were provided free of charge, including medical masks, face shields, and computed tomography (CT) equipment, along with financial donations.

Support for India

About 50 million yen was donated to the Japan Committee for UNICEF, charitable organizations in India, and others. Also 500 oxygen concentrators (worth about 30 million yen) were provided
to Hitachi Group companies in India, and employee-oriented support measures related to medical treatments and so on were implemented.

How Hitachi is responding to COVID-19

Hitachi Sustainability Report 2021

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Contents

Introduction

Management

Environmental
SocialSocial Data

SocialInnovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

GRI 201-1

Innovation Management
Research and Development
R&D Expenditure
Reporting BoundaryUnit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

R&D expenditure

Hitachi Group

Billions of yen

323.9

332.9

323.1

293.7

293.5

Ratio of R&D expenditure to revenue

Hitachi Group

%

3.5

3.6

3.4

3.4

3.4

Top-Class Digital Talent in the AI Field
Reporting Boundary
Top-Class Digital Talent in the AI Field

Hitachi Group

Unit
PeopleFY 2016

FY 2017―

FY 2018―

FY 2019

226

FY 2020306

356

Notes: Disclosure began in fiscal 2018.

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Contents

Introduction

Management

Environmental
SocialHuman CapitalSocialInnovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

GRI 102-7/102-8/401-1/401-3/403-9/403-10/404-1/405-1/405-2

Employee Data
ReportingBoundary
Number of employees

RegionHitachi Group

Unit

158,194

China

44,73644,08040,784

41,67351,903ASEAN, India, and the rest of Asia

41,91344,53644,22945,114

61,411

20,071

21,884

20,98522,034

27,12214,80816,517

17,074

17,85032,449Other areas

12,615

12,172

10,786

12,285

19,785

303,887

307,275

295,941

301,056

350,864

195,645

199,193

196,221

199,603228,278

PeopleMale

PeoplePeople

Male

Total

Total

PeopleEuropeFemaleHitachi, Ltd.

FY 2020

162,100

FemaleAverage age

FY 2019

162,083

Total
Hitachi, Ltd.

FY 2018

168,086

Total
Gender

FY 2017

169,744

North America

Hitachi Group*¹

FY 2016Japan

PeoplePeopleMale
FemaleAge
Age

42,46041,87043,58145,35951,381

238,105

241,063

239,802244,962

279,659

29,921

29,22027,82825,628

24,100

5,710

5,705

5,662

5,814

5,750

35,631

34,92533,49031,442

29,850

41.9

42.3

42.6

43.0

43.5

38.7

39.2

39.5

40.1

40.8

41.4

41.8

42.1

42.4

43.0

*1 Approximately 40,000 employees in part of manufacturing workers not registered in the employee database and approximately 30,000 employees of some newly consolidated companies are not included.
Note: Regional classifications were changed from fiscal 2020.		

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Introduction

Management

Environmental
SocialReportingBoundary

Average service (years)

RegionHitachi Group*¹

Unit

FY 2018

Community

FY 2019

Social Data

FY 2020
18.8

18.9

China

7.3

8.5

8.8

8.4

8.4

ASEAN, India, and the rest of Asia

7.2

7.5

7.4

7.4

7.2

8.4

8.7

7.1

7.2

6.4

Europe

7.9

8.4

7.6

8.3

6.0

Other areas

4.5

7.3

6.4

7.6

7.5

15.0

14.9

15.1

15.0

13.6

15.8

15.4

15.8

15.7

14.2

Years

Years
Male

Years
Years

Male
Female

Total

Years
Years

Male
Hitachi Group*¹

FY 2017

Value Chain Management

18.8

Total

Turnover rate*2*3

FY 2016

Human Rights

18.0

FemaleHitachi, Ltd.

Human Capital

Assurance

18.4

Total
Hitachi Group*¹

Innovation Management

GovernanceJapan

North America

GenderSocialFemaleJapan%

Outside Japan

11.6

12.6

11.8

11.8

11.0

15.0

14.9

15.1

15.0

13.6

17.9

18.3

18.5

18.5

18.8

15.2

15.5

15.6

15.6

16.0

17.5

17.8

18.0

17.9

18.3

4.7

5.0

5.8

4.8

4.1

7.8

7.8

8.4

7.2

5.2

2.3

2.1

2.2

2.5

2.0

12.9

13.4

15.4

10.9

7.4

Total

%

5.3

5.5

6.3

5.2

4.3

Hitachi, Ltd.

%

1.5

1.5

1.6

1.7

1.4

*1 Approximately 40,000 employees in part of manufacturing workers not registered in the employee database and approximately 30,000 employees of some newly consolidated companies are not included.
*2 The figures are based on number of employees including those dispatched from Hitachi Group to other companies.
*3 Figures include only voluntary resignations.
Note: Regional classifications were changed from fiscal 2020.

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Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Global Human Capital Management
Approval Rating in Global Employee Survey
Reporting BoundaryEngagement indicator
Overall

Hitachi GroupUnit

FY 2016%

FY 2017

FY 2018

FY 2019

FY 2020

58

58

60

60

62

60

61

60

61

64

Note: Questions change slightly each year. Above figures are not adjusted for changes in questions. Comparing fiscal 2020 results with previous years using only the same questions, overall approval has improved forfive straight years.

Talent Development
Reporting BoundaryUnit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Number of participants of global management
training programs

Hitachi Group

People

3,530

3,821

3,844

4,063

3,559

Digital talent headcount*1

Hitachi Group

People―――Approx. 30,000

Approx. 35,000

Average amount invested in education per employee*²

Hitachi Group

―

―

―

―

66,900*³―

118,500*4

127,800*5

128,000*6―

Hitachi Group companies inJapan

Reporting Boundary
Number of data scientists*7

Hitachi Group

Yen

Unit
PeopleJune 30, 2018
Approx. 700

April 30, 2019
Approx. 1,000

April 30, 2020
Approx. 2,000

April 30, 2021
Approx. 3,000*1 Disclosures began in fiscal 2019.
*2 Disclosure of figure as Hitachi Group began in fiscal 2020. Disclosure of figure as Hitachi Group in Japan began from fiscal 2017.
*3 Hitachi, Ltd., 45 Group companies in Japan, and 78 Group companies outside Japan.
*4 Hitachi, Ltd. and 14 major Group companies in Japan*5 Hitachi, Ltd. and 13 major Group companies in Japan*6 Hitachi, Ltd. and 12 major Group companies in Japan*7 Disclosures began in fiscal 2018.

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Introduction

Management

Environmental
SocialSocialInnovation Management

Governance

Human Capital

Human Rights

Assurance

Value Chain Management

Community

Social Data

Diversity and Inclusion
Reporting Boundary

Unit
Japan

Ratio of female employees*1

Ratio of female employees

Ratio and number of female managers*1*2*3

40.6

39.6

39.5

37.5

34.1

24.5

24.3

24.6

25.3

20.7

(People)

24.5

24.2

26.2

24.9

22.7

Europe

22.7

20.4

21.5

21.3

22.0

Other areas

35.1

27.9

22.1

23.4

18.2

ASEAN, India, and the rest of Asia
North America

18.8

19.4

19.1

Hitachi, Ltd.

%

16.8

17.2

17.8

19.0

19.7

6.7(2,562)

7.3(3,325)

8.3(3,975)

8.9(4,302)

9.5(4,641)——

16.6(14,909)

17.8 (18,028)

18.2 (18,675)

3.3(113)3.2(128)

3.4(135)

3.9(147)

4.5 (156)

4.4(396)

4.6(449)

5.3(500)

6.2(553)

7.3 (612)

Hitachi Group
General manager or above%(People)Section manager
Total% (People)

4.1(509)

4.2(577)

4.8(635)

5.5(700)

6.5 (768)

Hitachi, Ltd.

Female:Male—

100:102

100 : 103

100:104

100:104—

100:104

100 : 105

100:106

100:106

Japan

18.8

19.4

23.1

23.0

23.9

China

37.7

40.8

35.6

30.9

31.9

ASEAN, India, and the rest of Asia

26.6

19.4

25.3

27.7

22.2

22.0

26.2

32.8

29.7

23.2

20.5

19.6

23.8

22.9

26.5

Hitachi Group

North America%

EuropeOther areas
Total
Ratio of new female graduates hired *7

16.0

18.2

Hitachi, Ltd.

Ratio of new female employees hired *1

FY 2020

15.6

18.3

Ratio and number of female managers

Total individual compensation ratio of female to male managers*6

FY 2019

14.9%

Hitachi Group

Basic salary ratio of female to male managers*6

FY 2018

14.2

Total

Ratio and number of female assistant managers*1*3*4*3 *5

FY 2017

13.9

%

China
Hitachi GroupFY 2016

Hitachi, Ltd.

%Technical
Administrative

Total

%
%

29.2

22.8

27.3

28.9

17.8

24.2

22.1

26.7

26.3

23.8

20.8

17.2

17.9

17.8

17.7

42.1

53.8

51.6

48.9

36.3

26.3

26.6

24.2

25.3

21.1

*1 Hitachi Group figures exclude approximately 40,000 manufacturing workers and approximately 30,000 people in newly consolidated companies as they are not registered yet. *2 The figures are based on all female managers including those dispatched from
Hitachi Group to other companies. *3 Rising numbers of female managers and female assistant managers in part reflect improved coverage of our human capital databases. *4 Disclosures began in fiscal 2018. *5 Since fiscal 2017, “female managers” has included
managerial employees dispatched from Hitachi, Ltd. to other companies and those accepted from other companies by Hitachi, Ltd. Figures prior to fiscal 2016 include regular managerial employees dispatched to other companies but exclude those accepted fromother companies. *6 Benefits for men and women are identical. Differences between male and female salaries and compensation are due to age distribution, grade distribution, etc. Disclosures began in fiscal 2017. *7 Graduates from universities or colleges (including
postgraduate schools and technical colleges)

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Introduction

Management

Environmental
SocialReporting Boundary

SocialInnovation Management

Human Capital

FY 2016

Unit

Governance
Human Rights

FY 2017

Assurance

Value Chain Management

FY 2018

Community

FY 2019

Social Data

FY 2020

Maternity/partner's leave
utilization rate*1

Male

24.3

32.7

37.8

38.1

33.8

Female

100.0

100.0

100.0

100.0

100.0

Return rate for maternity/

Male

100.0

100.0

100.0

100.0

100.0

partner's leave recipients*2

Female

100.0

100.0

100.0

100.0

99.7

Retention rate for maternity/

Male

98.7

98.4

99.7

96.9

97.7
99.7

partner's leave recipients*3

Hitachi, Ltd.

Childcare leave utilization rate *4
Return rate for childcare leaverecipients*5
Retention rate for childcare
leave recipients*6

Female

100.0

99.2

100.0

100.0

Male

1.6

2.2

2.7

4.0

7.3

Female

99.6

99.7

100.0

99.6

99.6

%

Male

96.7

100.0

94.3

100.0

100.0

Female

97.1

98.5

97.4

97.4

98.9

Male

100.0

96.6

90.9

84.8

71.4

Female

98.6

98.0

99.4

95.5

98.0

*1 Total number of employees who took maternity leave or partner’s maternity leaves/ Total number of employees with newborn Children*2 Total number of employees not resigning on the day after completing maternity leave or partner’s maternity leaves/Total number of employees who took maternity leave or partner’s maternity leave*3 Total number of employees who did not resign within one year after maternity leave or partner’s maternity leave/ Total number of employees who took maternity leave or partner’s maternity leave*4 Total number of employees who took child-care leave/Total number of employees with newborn children*5 Total number of employees returning from child-care leave/Total number of employees who planned to return from child-care leave. Number of employees returning excludes those who planned to return and resigned voluntary without retuning*6 Total number of employees continuously working one year after returning from child-care leave/Total number of employees returning from child-care leave

Ratio of Female and Non-Japanese Executive and Corporate Officers
Reporting Boundary
Number of female executive and corporate officers
Ratio of female executive and corporate officers
Number of non-Japanese executive and corporate officers
Ratio of non-Japanese executive and corporate officers

Hitachi, Ltd.

Unit

June 2017

June 2018

June 2019

July 2020

June 2021

People

2

2

4

5

7

%

2.4

2.6

5

7.1

10.1

People

3

5

7

6

8

%

3.7

6.4

8.8

8.6

11.6

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Introduction

Management

Environmental
SocialSocialInnovation Management

Governance

Human Capital

Human Rights

Assurance

Value Chain Management

Community

Social Data

Ratio and Number of Male/Female and Japanese/Non-Japanese Directors
Reporting Boundary
Number of male directors
Number of female directors
Hitachi, Ltd.

Number of Japanese directors
Number of non-Japanese directors

Unit

June 2017

June 2018

June 2019

July 2020

June 2021

People

11

10

9

11

11

%

84.6

83.3

81.8

84.6

84.6

People

2

2

2

2

2

%

15.4

16.7

18.2

15.4

15.4

People

8

8

7

7

7

%

61.5

66.7

63.6

53.8

53.8

People

5

4

4

6

6

%

38.5

33.3

36.4

46.2

46.2

13

12

11

13

13

Total

Employment of People with Disabilities and Employment Ratio

Employment of people with disabilities
Employment rate

June 2017

June 2018

June 2019

June 2020

June 2021

Reporting Boundary

Unit

Hitachi Group companies
in Japan*1

People

1,437

1,848

1,899

2,403

2,575

%

2.15

2.23

2.26

2.33

2.37

*1 It includes special subsidiaries and related Group companies. (There were one special subsidiaries and 23 related Group companies in June 2021.)

Occupational Health and Safety
Number of Fatal Accidents, Occupational Accident Severity Rate and Occupational Accident Frequency Rate
Reporting Boundary
Number of fatal accidents(Number of deaths of employees)

Hitachi Group
Hitachi, Ltd.

Number of lost-time accidents

Unit

*1

2019

2020

0

4

3

(People)

(3)

(5)

0

(4)

(3)

Cases

1

0

0

0

0

(People)

(1)

0

0

0

0

425

485

506

396

314

68

92

64

57

52

11

11

6

6

4

Cases

Hitachi, Ltd.
Occupational accident frequency rate

2018
5

Hitachi Group

Occupational accident severity rate*1

2017
3

*1

Hitachi Group companies in Japan*1

2016

Cases

Hitachi Group companies in Japan*1

—

0.18

0.17

0.11

0.03

0.00

Hitachi Group companies in Japan*1

—

0.18

0.25

0.2

0.17

0.17

Notes: Work-related accidents are defined as those involving injuries without lost workday or more from January to December each year.
*1 Hitachi Group figures for Japan, including Hitachi, Ltd., are for 200 Group companies in 2016, 201 in 2017, 188 in 2018, 169 in 2019, and 136 in 2020.

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Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Hitachi Group s Global Safety Figures (Occurrence Rate)
Reporting Boundary

Unit

2016

2017

2018

2019

2020

Hitachi Group’s

North America

27.65

24.33

27.96

20.76

18.98

global safety figures(Occurrence rate)*1

Central and South America

2.33

1.62

0.44

0.57

2.12

Europe

10.7

10.82

6.08

4.78

3.09

India

2.07

1.44

1.44

1.63

1.07
1.12

Hitachi Group

%

China

1.59

1.53

1.46

1.17

Asia (excluding India and China)

5.43

4.41

3.34

2.63

1.55

Oceania

39.07

24.41

21.94

29.07

12.95

Africa

17.26

9.93

11.76

9.72

25.37

Overseas total

%

7.76

7.42

7.43

5.78

4.90

Japan

%

1.57

1.85

1.64

1.53

1.34

Global total

%

3.95

4.22

4.2

3.45

2.89

*1 The occurrence rate is the rate of workplace accidents per 1,000 directly contracted employees resulting in injuries without lost workday or more.
Notes: Reported statistics is from January to December every year.

Absence Rate
Reporting Boundary
Mental

Hitachi Group companies inJapanPhysical

Unit

2016

%

2017

2018

2019

2020

0.56

0.60

0.64

0.65

0.62

0.24

0.26

0.24

0.25

0.22

Note: The percentage of employees taking sick leave for seven or more consecutive days or formally taking leave (number of employees taking sick leave per month/number of employees per month × 100)

Medical Exam and Screening Attendance Rates
Reporting BoundaryUnit

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

81.1

78.1

78.5

79.3

81.2

*2

50.0

51.1

53.2

56.3

56.6

Uterine cancer screening*3

35.3

35.6

37.1

38.7

39.1

78.4

80.7

80.6

82.7

82.2

Intestinal cancer screening*4

79.0

81.4

81.3

83.5

83.0

Lung cancer screening*5

93.2

92.9

93.2

95.8

96.8

General physical exam*1
Breast cancer screening

Stomach cancer screening*4

Hitachi Group companies
in Japan％*1 Men and women aged 35 and over *2 Women aged 30 and over *3 Women aged 25 and over *4 Men and women aged 30 and over *5 For fiscal 2016 and 2017 it was men and women aged 50 and over, but from fiscal 2018 it was changed to men and women
aged 35 and over.

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Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Value Chain Management
Responsible Procurement

CSR Procurement Activities Implementation Status
Reporting BoundaryUnit

FY 2016

CSR monitoring (self-checks)
CSR audits

Hitachi Group

Companies

CSR Seminar for Suppliers

FY 2017

FY 2018

FY 2019

FY 2020

Total for specified period

316

131

345

291

271

2,072＊1

20

18

24

19

27

176＊2

29

65

126

59

450

741＊3

*1 Total from fiscal 2011 to fiscal 2020.
*2 Total from fiscal 2012 to fiscal 2020.
*3 Total from fiscal 2015 to fiscal 2020.
Note: In fiscal 2020, CSR Seminar for Suppliers were held by webinar and e-learning instead of face-to-face.

Rate of Local Procurement of Materials for Main Regions
Reporting BoundaryUnit

FY 2016

China

FY 2017

FY 2018

FY 2019

FY 2020

64

78

88

90

98

83

70

81

78

77

Rest of Asia

64

71

71

71

80

Americas

69

57

66

69

70

EuropeHitachi Group%

Conflict Mineral Issue
Number of surveys on conflict minerals
conducted from customer requests*4

Reporting Boundary

Unit

Hitachi Group

Cases

2016

2017
ー

2018
1,422

2019
1,874

2020
1,645

ー

*4 Disclosures began in 2017.
Note: Reported statistics is from January to December every year.

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Contents

Introduction

Management

Environmental
SocialSocialInnovation Management

Human Capital

Governance
Human Rights

Assurance

Value Chain Management

Community

Social Data

Community
Social Contribution Activities
Funding for Social Contribution Activities and Number of Participating Employees
Reporting Boundary
Funding for social
contribution activities

Hitachi, Ltd. and the Hitachi
Global Foundation
Hitachi GroupOf Hitachi Group funding,amount related to STEAM*6

Breakdown of funding
for social contribution
activities*7

Unit

Million Yen

Hitachi Group

Human development
Environment
Community support

Hitachi Group%

Other (number in parentheses:
disaster relief)
Total employees
participating

Hitachi Group

PeopleFY 2016

FY 2017

FY 2018

FY 2019

FY 2020

527

948

841

776

957

1,953*1

2,195*2

1,888*3

1,833*4

1,910*5

—

740

383

278

325

—

44.8

49.3

40.6

44.5

—

2.9

2.0

2.8

1.2

—

34.6

20.5

26.0

10.8

—

17.7 (9.7)

28.2 (6.9)

30.6 (4.7)

43.5 ( 11.5)

53,74954,62988,13439,982

32,116*1 Japan: Hitachi, Ltd., 134 Group companies, and the Hitachi Global Foundation.
Outside Japan: 159 companies*2 Japan: Hitachi, Ltd., 141 Group companies and the Hitachi Global Foundation.
Outside Japan: 196 companies*3 Japan: Hitachi, Ltd., 141 Group companies and the Hitachi Global Foundation.
Outside Japan: 152 companies*4 Japan: Hitachi, Ltd., 153 Group companies, and the Hitachi Global Foundation.
Outside Japan: 234 Group companies*5 Japan: Hitachi, Ltd., 119 Group companies and the Hitachi Global Foundation.
Outside Japan: 209 companies*6 The collection of statistics began in fiscal 2017.
*7 The breaking down of disclosures into the current classifications began in fiscal 2017.

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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

157 Corporate Governance
157 Executive Summary
158 Corporate Governance

Governance
Striving to Increase Corporate Value
Not only is Hitachi strengthening its corporate governance in areas like the role andcomposition of the Board of Directors and standards for determining the suitability
and independence of its independent directors, it is also taking self-directed action
to enhance corporate value by sharing its Codes of Conduct across the Group,
ensuring compliance with laws and regulations, and advancing risk management.
In this way, we contribute both to the company’s own sustainable growth and thedevelopment of the economy as a whole.

166 Compliance
166 Executive Summary
167 Promoting Work Practices in Line with International			Ethics Codes

172 Risk Management
172 Executive Summary
174 Addressing Risks and Opportunities
178 Business Continuation Initiatives

180 Information Management
180 Executive Summary
181 Information Security
183 Personal Information Protection

185 Governance Data
185 Corporate Governance
186 Compliance

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Introduction

Management

Environmental
GovernanceCorporate GovernanceCorporate GovernanceWhy
ー Why it matters ーCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

GRI 103-2

Hitachi views the expansion of long-term and overall shareholder returns as an important management objective. Hitachi, Ltd. and Hitachi Group companies maintain good
relationships with a wide range of stakeholders, and we recognize that these relationships make up an important part of our overall corporate value. Accordingly, we are striving
to establish a system that will facilitate the maintenance of these relationships and improve our corporate value primarily through the implementation of measures focused on
promoting constructive dialogue.

What

How

ー What we are doing ーCorporate
GovernanceSocial・	Implementing all of theprinciples of the Corporate
Governance Code・	Conducting board
meetings in a way thatsustainably enhances
corporate value andshareholders’ common
interests
・	Approving and dismissing
the CEO and formulating
a succession plan・	Determining appropriatecompensation for
directors and executive
officers
・Implementing internal
controls over financial
reporting・	Enhancing collaboration
through tripartite audits・	Building a more effective
and efficient auditing
systemー How we are doing it ー

Policy andpromotion structure

Hitachi, Ltd. adopted its current committee system in 2003 and has established an Audit Committee, Compensation
Committee, and Nominating Committee. Independent directors chair these committees and comprise the majority of themembers. The company has also created a system that enables sufficient exercise of supervisory functions by separating
the execution and supervision of business management.
Achievements in Fiscal 2020

Ensuring legality,
soundness, andtransparency of Hitachi’sbusiness

Analyzed and evaluated the effectiveness of the Board of Directors

To achieve carbon neutrality at Hitachi business sites (factories and offices) by fiscal 2030, Hitachi, Ltd. reviewed a system of evaluation taking
environmental performance into consideration in executive officers’ short-term incentive compensation and decided to introduce it in fiscal 2021.

Reviewing executive
compensation systems

A restricted stock compensation unit system was introduced as compensation for non-Japanese executive officers and corporate officers in fiscal
2020, and the scope of was expanded to executives at some Group companies In fiscal 2021.

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Introduction

Management

Environmental
GovernanceCorporate GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

GRI 405-1

Hitachi views the expansion of long-term and overall shareholder returns as an important management objective. Hitachi, Ltd. andHitachi Group companies maintain good relationships with a wide range of stakeholders, and we recognize that these relationships
make up an important portion of our overall corporate value. Accordingly, Hitachi are striving to establish a system that will facilitate
the maintenance of these relationships and improve our corporate value primarily through the implementation of measures focusedon promoting constructive dialogue. To advance these efforts effectively, we are working to improve our corporate governanceby ensuring thorough separation between the oversight and execution of management, establishing a swift business execution
system, and striving to achieve highly transparent management.

Implementing All the Principles of the Corporate
Governance Code
PolicyActivities

GRI 102-22

We are implementing all the principles of the Corporate
Governance Code.

Director Composition
History of Hitachi’s Corporate Governance Reform
Structure

1999

Structure

Activities

Introduction of Objective Perspective

2012

Management Advisory Committees
Practical advice from experts in Japan and overseas
Demarcation of Management Oversight and Execution 2014
Shifted to a company with committees (currently a2015company with nominating committee, etc.)
To increase management speed and improve2016
		 management transparency
Enforcement of Revised Companies Act

2010

Enhancement of Interactions with Capital Markets

Hitachi IR Day (briefing on business strategy
by division) was launched
Clarification of commitment of top management
		 of the business units to the capital markets
2012

Acceleration of Global Management
Independent directors including foreign directors
were increased
Independent directors comprised the majority of directors

Independence(ratio of Independent directors)

Diversity(ratio of non-Japanese andfemale directors)

Development of Corporate Governance Guidelines

2003

2006

Development of Guidelines for Strengthening
Governance

Development of Stewardship CodeStart of Application of Corporate Governance CodeEnhancement of Dissemination of Information
about Medium- to Long-term Sustainable Growth
Publication of an integrated report

Acceleration of the Social Innovation Businessacross 5 Growth Fields
Executive vice presidents were placed in 5 sectors
ESG briefing session held
An independent director (chair of the Audit
		 Committee) and the CEO shared their remarks
2019

Independent
directors
10 directors

Non-Japanese
directors
6 directors

76.9%

46.2%
2 female directors(15.4% of overall
director total)

Directors with Abundant Experience
The Board of Directors applies their abundant experience andknowledge related to the management of global companies,
legal affairs, accounting, capital markets, government
agencies, and the field of digital technology to facilitate
discussions informed by a wide variety of perspectives.
In June 2021, Helmuth Ludwig joined the Audit
Committee and Joe Harlan joined the Compensation
Committee, enabling even more diverse discussions
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Introduction

Management

Environmental
GovernanceSocialCorporate GovernanceCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

Hitachi’s Corporate Governance Framework and Its Features
GRI 102-18/102-22/102-23/102-24

Structure

The Senior Executive Committee is an advisory body to the
CEO or the President that conducts multifaceted discussions
and makes careful decisions regarding important matters that
impact Hitachi, Ltd. or the Hitachi Group. As of July 2021, theCommittee consisted of 11 members, including the Executive
Chairman & CEO, the President & COO, five executive vicepresidents, three senior vice presidents, and one vice president.

General Meeting of Shareholders

Senior Executive
Committee

Appointment
Appointment/
Oversight

Report2 Board of Directors

2 executive members

11

non-executive members(including 2 female members)

1

1

1

Nominating
Committee

Compensation
Committee

Audit
Committee

4 directors

5 directors

6 directors*

Executive Chairman & CEO
President & COO

Executive Vice Presidents andExecutive Officers/Senior Vice
Presidents and Executive
Officers/Vice Presidents andExecutive Officers

3 Report

Executive
Officer
Department
in charge

Executive
Officer
Department
in charge

Department
in charge* One standing Audit
Committee member

3 Audit

3 Audit
3 Audit
3 Report

Non-independent

Independent

Accounting
Auditors

Department
in charge

Transparency in Management

We became a company with committees (currently acompany with a nominating committee, etc.) in 2003.
We have established the Nominating Committee, theCompensation Committee, and the Audit Committee, which
are mostly made up of, and are chaired by, independent
directors. The system we have in place to ensuretransparency in management separates the oversight andexecution of management, facilitates the full exercise of
supervisory functions, and enables discussions and reports
to be conducted appropriately within these three committees.

POINT 2

3 AuditInternal
Auditing
OfficePOINT 1

Independence of the Board of Directors

We increased our number of independent directors,
including non-Japanese directors, in 2012.
Our Board of Directors, which is chaired by an independent
director, has 13 members, including 10 independent directors,
two directors who are also serving as executive officers, andone director who is not serving as an executive officer. In
addition, we have established a system that facilitates the full
exercise of supervisory functions by maintaining separation
between the oversight and execution of management.

POINT 3

Enhanced Collaboration through Tripartite Audits

Hitachi’s Audit Committee and internal audit section
collaborate with third-party accounting auditors tostrengthen its “Tripartite Auditing,” which aims to increase
the effectiveness of internal controls.
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Introduction

Management

Environmental
Governance

Administrative Performance of the Board of Directors
Structure

Corporate GovernanceCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

Description of the three committees’ activities

Activities

Activities

The Board of Directors approves basic management policy for the Hitachi Group and supervises theexecution of the duties of executive officers and directors in order to sustainably enhance corporate
value and the shareholders’ common interests. The basic management policy includes the Midterm Management Plan and annual budget compilation. The Board of Directors focuses on strategic
issues related to the basic management policy, as well as other items to be resolved that areprovided in laws, regulations, the Articles of Incorporation, and the Board of Directors Regulations.
Within the Board of Directors, there are three statutory committees—the Nominating
Committee, the Audit Committee, and the Compensation Committee—with independent
directors accounting for the majority of members of each committee. The Board of Directors
meetings were held on nine days during fiscal 2020, and the attendance rate of directors atthese meetings was 100%. The attendance rates for each independent director were as shownin the table below. To assist with the duties of the Board of Directors and each committee, staff
who are not subject to orders and instructions from executive officers are assigned.

Nominating
Committee

The Nominating Committee has the authority to determine proposals submitted to the general meeting ofshareholders for the election and dismissal of directors. The Nominating Committee consists of four directors,
three of whom are independent directors.
It determines director candidates and holds preliminary hearings concerning the appointment and dismissalof executive officers, including the CEO.
In fiscal 2020, the Nominating Committee held meetings on eight days.

Primary
Activities

In addition to deciding upon the contents of the proposal made concerning director appointments at theAnnual General Meeting of Shareholders, the Nominating Committee set an upper limit on the total termof office for independent directors and reviewed and confirmed the executive officer system implemented
in fiscal 2021. In addition, it promoted committee-related activities including discussions and individualinterviews aimed at developing candidates for future management and leadership positions.

Audit
Committee

The Audit Committee has the authority to audit the execution of duties of directors and executive officers
and to decide on proposals submitted to the general meeting of shareholders for the election anddismissal of accounting auditors. The Audit Committee currently consists of six directors, including fiveindependent directors and one standing Audit Committee member.
Hiroaki Yoshihara, the chairman of the Audit Committee, has been involved in accounting andother business practices at the KPMG Group for many years and possesses a considerable breadth ofknowledge concerning finance and accounting.
In fiscal 2020, the Audit Committee held meetings on 17 days.

Primary
Activities

The Audit Committee conducted activities that were focused on its priority matters for consideration,
which included the strengthening of collaboration and the facilitation of information sharing under a“Tripartite Audit” (audit by the Audit Committee, internal audit and audit by accounting auditors), andauditing of the establishment and operation of internal control systems from the perspective of risk
management and validity of execution of duties. In addition, a standing committee member worked toobtain information as needed in a timely and accurate manner, mainly by collaborating with the Internal
Auditing Office, among other departments, and attending important internal meetings such as the Senior
Executive Committee, and facilitated information sharing with other committee members.

Compensation
Committee

The Compensation Committee has the authority to determine remuneration policies for directors andexecutive officers and remuneration for individuals (including amounts of remuneration) based on them.
Currently composed of five directors, including four independent directors, the committee strives toensure objectivity, transparency, and fairness in the remuneration determination process.
In addition, the Compensation Committee verifies and reviews details of the process used for
determining remuneration for individuals, including assessments concerning basic remuneration
amounts, evaluations of progress made toward individual targets, and performance appraisals that are
tied to short-term incentive compensation.
In fiscal 2020, the Compensation Committee held meetings on four days.

Primary
Activities

The Compensation Committee determined remuneration amounts for individual directors and executive officers
in accordance with established policies while verifying and reviewing the processes and results of appraisals
for performance and individual targets tied to short-term incentive compensation for executive officers. In
addition, the committee reviewed the executive compensation system while giving due consideration tocompensation granted to managers at global companies and the goal of sharing value with shareholders, anddecided upon policies covering remuneration for directors and executive officers in fiscal 2021.

Attendance at the Board of Directors meetings held in fiscal 2020
Attendance/Number of days on which the meetings were held*
Name

SocialBoard ofDirectors

Nominating
Committee

Audit
Committee

Compensation
Committee

Katsumi Ihara

100%

—

100%

100%

Ravi Venkatesan

100%

—

—

—

Cynthia Carroll

100%

100%

—

—

Joe Harlan

100%

—

—

—

George Buckley

100%

—

—

—

Louise Pentland

100%

—

—

—

Harufumi Mochizuki

◎100％

◎100%

100%

◎100%

Takatoshi Yamamoto

100%

—

100%

100%

Hiroaki Yoshihara

100%

100%

◎100%

—

Helmuth Ludwig

100%

—

—

—

*N
 umber of days during term of office on which the Board of Directors meetings were held: 9; Mr. Venkatesan and Mr. Ludwig: 6
Number of days during term of office on which Nominating Committee meetings were held: 8
Number of days during term of office on which Audit Committee meetings were held: 17
Number of days during term of office on which Compensation Committee meetings were held: 4◎Indicates role as a board or committee chairperson

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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

Analysis and Evaluation of the Effectiveness of the Board of Directors
Activities

GRI 102-28

The Company evaluates the effectiveness of its Board of Directors each year in a continuous effort to maintain and improve its functions.
Fiscal 2020 Evaluation Process

Evaluation Results and Future Initiatives
Points of evaluation

1. Questionnaire-based selfassessment by each director(February–March 2021)

Composition: Diversity on the Board, the number andproportion of Inside and Outside Directors, etc.
Visibility of responsibilities and roles of the Board
Meeting operation: Meeting frequency, deliberation time,
agenda setting, quality of deliberation, Chairman s role, etc.
Contribution: Contribution to strategy building and changeof company culture, contribution to have constructive
discussions, utilization of Director s knowledge andexperience, discussions based on taking the Digital
Transformation, etc.
Understanding of the Company: Hitachi Group Identity, risk
factors, potential challenges and opportunities.
Three committees: Composition, responsibilities and roles,
coordination with the Board, etc.
Supporting system for the Board: Provision of necessary
information such as the Board materials, etc.

2. Discussions among independent
directors (March 2021)

Independent directors had a meeting and discussed theBoard effectiveness there.

3. Discussions at the Board meeting(May 2021)

The Board analyzed and evaluated its effectiveness as awhole and confirmed the policy on approaches to further
enhance the Board s effectiveness based on the resultsof the preceding process, considering comparison to theevaluation results for fiscal 2018 and measures taken forimproving its effectiveness in fiscal 2020.

Evaluation Results

Overall evaluationin fiscal 2020 he Board assessed that the Board members are diverse andTmake use of their knowledge and expertise to speak out, having
vigorous discussions especially on matters related to businessstrategies such as the mid-term management plan toward mid/long-term growth of corporate value. The Board, therefore,
concluded that the effectiveness of the Board as a whole ismaintained.
Future initiatives
 xamine the discussion process for strategy discussions basedEon a mid to long term perspective and establish a time and forum
for deepening discussions.

Further enhancement ofcorporate governance usiness strategy reports and discussions at Board meetings willB
continue to be implemented on a Sector by Sector basis, anddiscussions will focus on strategy, such as a risk matrix basedon factors such as the standing of the Company, the status ofcompetitors, technology, talent, finance and Lumada strategy.
 isk management, ESG and Investor relations will be submittedR
as agenda items as important matters for improving long term
corporate value.
 he Board will attempt to strengthen a relationship with theT
Nominating Committee and further contribute to succession
planning of CEO (e.g. enhancement of Nominating Committee’sreports to the Board, one-on-one meeting with CEO successor
candidates and next generation leader candidates).

Enhancement of supporting system
for the Board and improve practicalissues in operations

Post COVID-19, restarting to provide Independent Directors withinformation on opportunities of visiting sites and events of Hitachi Group.
Further improve structure and contents of materials for the Board
meeting and operation of provision of materials well in advance of
the Board meeting.

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Introduction

Management

Environmental
Governance

CEO Appointment, Dismissal, and Succession Plan
Structure

GRI 102-24

Hitachi’s Board of Directors decides upon the appointment
and dismissal of executive officers, including the CEO, withthe goal of constructing an optimal business execution
system for management. Decisions regarding theappointment or dismissal of executive officers are based on
proposals from the Nominating Committee. As stipulated
in our Corporate Governance Guidelines, our basic policy
concerning the CEO requires that individuals serving in theposition of CEO have extensive experience and achievementsin the field of company management. They must also be
considered optimally suited for conducting management
aimed at achieving Hitachi’s goals of continuously raising its
corporate value and further serving the common interestsof its shareholders. Decisions regarding the appointment
or dismissal of the CEO shall be made based on priordeliberations and proposals by the Nominating Committee.
Regarding our CEO Succession Plan, as the speed ofchange in the management environment accelerates, we are
striving to build a system that enables us to appropriately
and promptly secure and develop (both internally andglobally) necessary management personnel who will provide
leadership that will allow us to realize our growth strategies.
Accordingly, we are also concentrating on providing training
for selected employees while targeting the early developmentof candidates for future management positions. Moreover,
we are developing next-generation leaders capable of acting
authoritatively and resolutely by establishing forums whereparticipants can discuss what is necessary for Hitachi’s

STEP

1

Designate important
positions

STEP

2Define the roles and personnel
requirements associated with
important positions

STEP

SocialCorporate GovernanceCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

future growth and make recommendations to management.

Compensation Structure

In addition, we have identified a group of about 50
employees from around the Hitachi Group with nextgeneration development potential. People in this “Future
50” group are selected on merit, regardless of age, gender,or nationality. They are given challenges to help expand
their horizons and build their perspectives through toughassignments including different types of work and internaland external training opportunities. The Future 50 groupmembers receive one-on-one mentoring opportunities withindependent directors to benefit directly from their extensive
business experience and global perspectives. Our aim is
to change mindsets so that we can develop people forimportant positions in the future.

(1) Directors
Compensation for Directors is basic remuneration as fixed
pay. The amount of basic remuneration is decided byadjusting a basic amount to reflect full-time or part-timestatus, committee membership and position, and travel fromplace of residence, etc. A Director concurrently serving as
an Executive Officer is not paid compensation as a Director.

Director and Executive Officer Compensation
GRI 102-35/102-36

Basic Policy• Compensation shall be such that it enables the Company to attract
necessary personnel to achieve an improvement in corporate value
through global business growth.
• Compensation shall be commensurate with the roles andresponsibilities of each Director and Executive Officer.
• Compensation for Directors shall be such that it enables them toexercise the functions of supervision of management effectively.
• Compensation for Executive Officers shall be such that it enables
them to contribute to sustained improvement in corporate value
through the execution of business and employs an appropriatebalance between short-term performance and medium- and longterm performance.
• The level of compensation shall be determined considering compensationlevels at other companies as well as economic and market trends.
• The Compensation Committee utilizes external experts to gain expert
advice and an objective viewpoint, if necessary, for considering thedetails and amounts of compensation.

3

Select candidates forimportant positions

STEP

4

Evaluate candidates

STEP

5

Develop candidates(2) Executive Officers
Compensation for Executive Officers consists of basic remuneration
as fixed pay and short-term incentive compensation and mediumand long-term incentive compensation as variable pay.
The basic amount of basic remuneration, short-term
incentive compensation and medium- and long-term incentive
compensation is set based on the ratio of 1:1:1 as thestandard, taking into account the composition of executive
compensation for major global companies, in order to improve
corporate value through the growth of global businesses. The
higher position Executive Officer hold, the higher proportion ofvariable pay is set to the total annual compensation.
As part of efforts to achieve carbon neutrality at Hitachi
business sites (factories and offices) by fiscal 2030, in fiscal
2021, an evaluation system that considers environmental
value was introduced into short-term incentive compensationfor executive officers. Specifically, targets are set forenvironmental strategies and solutions to environmental
issues based on the divisions and operations handled
by each executive officer, and performance is evaluatedaccording to the degree of target achievement.
If it is found that an executive officer has been engaged
in misconduct during his/her term of office, compensation
for Executive Officers that has been already paid shall be
returned to the Company (clawback provision).
Annual Security Report (the 152nd Business term),
P101 Compensation to Directors and Executive Officers

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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

Compensation to Executive Officers (Fiscal 2021)
SystemGRI 102-35/102-36

Basic remuneration : short-term incentive compensation : medium- and long-term incentive compensation = 1:1:1 ratio
Total remuneration
Fixed pay
1 Basic remuneration
1

Variable pay
2 Short-term incentive
compensation

3 Medium- and Long-term
incentive compensation

Basic remuneration

Set according to the relevant position by adjusting that amount to reflect financial results and individual performance.

2

Short-term incentive compensation

The amount of short-term incentive compensation is decided within the range of 0 to 200% of a basic amount set according to therelevant position by adjusting that amount to reflect financial results and individual performance.
(Executive officers forming the Senior Executive Committee*¹)(Other executive officers)

Linked to evaluations of Company-wide performance (80%)
Linked to evaluations ofCompanywide performance (30%)

Linked to evaluations of divisional performance (50%)
Evaluated referring to adjusted operating income andoperating cash flows for each division, among otherindicators, to measure the level of achievement of targets
under the Mid-term Management Plan and the annual
budgets for divisions.

Evaluated referring to consolidated
revenues, adjusted operating income,
EBIT, and net income attributable
to Hitachi, Ltd. stockholders inorder to measure the level ofachievement of consolidated financial
forecastsdisclosed to stakeholders,
including shareholders and investors.

Linked to evaluations
regarding the achievementof individual targets (20%)
Varies according to theevaluation of the level ofachievement of individual
target for each Executive
Officer determined basedon his/her responsibility.

*1 The rates used for “other executive officers” apply when “executive officers forming the Senior Executive Committee” are in charge of sector or business units.

3

Medium- and Long-term incentive compensation

The shares of restricted stock◦ The restriction on transfer shall be lifted if executive
officers resign from all of the positions of the Company’s
executive officer, director, and corporate officer.
◦ With regard to one-half of the granted shares of restricted
stock, the number of shares whose transfer restriction islifted shall be determined after ex-post evaluation. In the
ex-post evaluation, the total shareholder return (TSR) of
Hitachi stock over the three years from the beginning of
the fiscal year when the medium- and long-term incentive
compensation is granted is compared with growth rate of
TOPIX over the same period.

TSR/TOPIX growth rate

Shares for which the transfer
restrictions are lifted

120% or more

Transfer restrictions are lifted for all
granted shares.

Between 80% or more but
less than 120%

Transfer restrictions are lifted forpart of granted shares*2.

Less than 80%

No granted shares have transfer
restrictions lifted.

*1 A system in which restricted stock compensation units are granted to theeligible persons, and over three years from the start of the business year inwhich the restricted stock compensation units were granted, one-third of thenumber of restricted stock compensation units granted is paid in each fiscal
year that passes, as Hitachi stock or cash.
*2 Number of shares whose transfer restrictions are lifted= Number of granted shares × {(TSR/TOPIX Growth Rate Ratio × 1.25) – 0.5}
Shares whose transfer restrictions are not lifted shall be acquired by Hitachi
without consideration.

Shares of restricted stock were introduced in fiscal 2019 as compensation for Japanese executive officers and corporate officers(the executive positions next to Executive Officers) to propel management from a medium- and long-term perspective and toprovide incentives to bring about a sustainable increase in enterprise value by further promoting senior management’s sharedvalues with shareholders through the holding of shares during their term of office. In fiscal 2020, a restricted stock compensation
unit system*¹ was introduced as compensation for non-Japanese executive officers and corporate officers. In fiscal 2021, thescope of the restricted stock compensation unit system was expanded to executives at some Group companies.

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Contents

Introduction

Management

Environmental
GovernanceSocialCorporate GovernanceComplianceInternal Control over Financial Reporting
Creation of a system focused on maintaining
transparency and a sense of urgency

Management of risk associatedwith global business expansion
Internal Control Assessment Framework
Financial
Services Internal
Agency Control
ReportHitachi, Ltd. President &CEO Chief Financial Officer

Audit
Committee

ReportCooperation

ReportReportReportJ-SOX Committee

Business Units andMajor Group Companies

Tripartite audit
approachInternal Auditing
Office(Internal Audit
Office)ReportSubsidiary Companies

Execution

Accounting auditors(accounting audits)

External Audits

Regulation

Enhanced Collaboration through Tripartite Audits
Structure

In pursuit of sustainable growthin corporate value, Hitachi’s Audit
Committee and internal audit section
collaborate with third-party accounting
auditors to strengthen its “Tripartite
Auditing,” which aims to increase theeffectiveness of internal controls. Our
Audit Committee takes the lead in thisregard, as the three parties communicate
closely to share risk information andassessments concerning risk response
while securing transparency and ensuring
appropriate checks and balances.

Risk Management

Assurance

Information Management

Governance Data

Building a More Effective and Efficient Auditing
System

Structure

To ensure the reliability of its consolidated
financial reporting, the Hitachi Group isestablishing and implementing relevantinternal controls. We evaluate theireffectiveness by adhering to standards forthe evaluation of internal controls related
to financial reporting that are generally
accepted as fair and reasonable.
Furthermore, we have establishedthe J-SOX Committee with the goal ofraising the effectiveness of these internal
controls. This committee evaluatesinternal control effectiveness andestablishes frameworks designed to
improve and strengthen them.

Governance

GRI 102-11

Sharing of risk information andassessments of risk response

Ensuring transparency and a sense of urgency
and improving the effectiveness of internal controls

Audit
Committee•Audit plans•Audit Policy and auditing methods• Assessment and reporting ofaudit results• Methods and results ofinternal audits•Evaluation of group audit system•Sharing of risk information • Reciprocal reporting and• Audit plans and results evaluation concerninggroup audits• Internal audit results• Reporting on the quality
control system

Tripartite audit
approachInternal audit
section(Internal Audit
Office)Accounting auditors(accounting audits)• Exchange of information regarding audit plans,
auditing methods, and audit results• Sharing of risk information• Division of internal auditing duties and mutual

Structure

GRI 102-11/102-19

Our Audit Committee formulates audit plans in accordancewith its risk-based approaches and conducts audits foreach consolidated business unit. Audit Committee members
meet directly with business unit heads before the internal
audit section’s audits are carried out. Then, these members
inform the internal audit section about concerns and issues
related to the implementation of business strategies aimed
at achieving sustainable growth that require attention. At
that time, the committee also verifies matters that carry highlevels of risk in terms of quality, measuring these risks throughemployee awareness surveys and thorough implementationof business strategies.
Hitachi’s internal audit section performs regular internal
audits at each business site and location. This section
reports directly to the President and is independent fromorganizations that are subject to its audits. The internal audit
section also formulates audit plans based on past audit
records and the most recent business circumstances. In
addition, this section performs audits upon receiving direction
from the Audit Committee, ensuring their effectiveness.
The internal audit section at Hitachi is responsible for
confirming the legality and appropriateness of all business
operations, including those related to accounting, production
management, sales, purchasing, IT systems, compliance,and human resources. Furthermore, acting on behalf ofour management team, the internal audit section confirms
whether the employees are well versed in the ideas andpolicies of our management, and their operations are being
carried out based on these ideas and policies and if businessstrategies are being implemented in a way that will efficiently
lead to sustainable growth.
To further raise audit effectiveness, we implemented autilization of audit information

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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance“chief auditor system” in each of our five sectors (IT, Energy,

accounting auditors discover a degree of risk that could

Industry, Mobility, Smart Life) in April 2019. Through thisaction, we built an internal control system spearheaded bychief auditors and enhanced collaboration with the executive
vice presidents who manage each sector and with the Audit
Committee.
Although these chief auditors do not act as legal agents
under the Companies Act, they still assume responsibility forgovernance in each sector. Statutory auditors, which function
as legal agents at Hitachi subsidiaries under the Companies
Act, also report to these chief auditors and work to improvethe effectiveness of Hitachi’s internal control systems.
When conducting business audits, we use IT systems to
expeditiously search for reference information contained withinmaterials submitted prior to audit in an attempt to improve
efficiency. We are currently enhancing a system that will allow
our internal audit section to share information with professional
accounting auditors using a data lake. When reading audit
reports submitted to the President by the internal audit
section, the President must be able to quickly understandthe issues identified by these reports and make prompt
judgments concerning whether immediate action is required.
In the future, our internal audit section will continue to maintainits transparency and independence while working to improveaudit efficiency as one member of our Tripartite Audit system.
Our accounting auditors perform audits that focus on
the accuracy and reliability of our financial statements. First,
they adopt a risk-based approach in response to the Group’s
overall financial status. Applying this approach, they thendetermine the scope and methods of the audit, formulate
an audit plan, and share opinions with the Audit Committee.
Next, based on the audit plan, they perform audits on eachof the five sectors and the business units that comprisethem, enabling effective and efficient understanding ofdata related to Hitachi’s finance department and each ofits business segments. If, during the auditing process, ourimpact future financial statements significantly or issues
that, even if monetarily small, could have a large qualitative
effect, they share related information regarding these risks
and issues and the progress on a response from the related
divisions with the Audit Committee and internal audit section.
They also work to improve and raise the effectiveness ofaudits by submitting “management letters” containing pointsof concern and improvement suggestions through the financedepartment. Recently, they have also been working to raise
the efficiency of checks on the accuracy of numerical figuresby using some IT systems to investigate all cases rather thanperforming test-checking through sampling.

GovernanceRisk Management

Assurance

Information Management

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Governance Data

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Contents

Introduction

Management

Environmental
GovernanceComplianceWhy
ー Why it matters ー

Corporate GovernanceCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

GRI 103-2

With the globalization of the economy, borderless corporate activities—spanning countries and regions with different governmental and economic frameworks, trade practices, and sets
of values—are increasingly vital. Spreading understanding of and respect for norms among all Hitachi Group employees is a fundamental management issue as we seek to rigorously
implement fair business practices and avoid risks around the globe.
Additionally, with stricter regulations in countries and regions around the world regarding important business practices such as bribery prevention and adherence to competition
laws, Hitachi has formulated in-house regulations in line with international standards and is sharing these regulations and enforcing thorough compliance with them throughout the Group.

What

How

ー What we are doing ーPromotingWork Practices
in Line with
International
Codes of Ethics

Social・Comply with the HitachiGroup Codes of Conduct
・Establishing andstrengthening
a compliance framework

ー How we are doing it ー

Policy andpromotion structure・Instituting and integrating
a compliance reporting
system・Preventing antisocialtransactions and money
laundering

Achievements in Fiscal 2020
Formulated the Hitachi Group Code of Ethics and Compliance

Complying with the HitachiGroup Codes of Conduct Had more than 300,000 executives and employees complete an e-learning program on the Hitachi Group Code of Ethics and Compliance(provided in 15 languages)

・Preventing bribery andcorrupt practices
・Complying withcompetition laws
・Carrying out strict export
controls
・Implementing thoroughtax compliance

The Hitachi Group Codes of Conduct and the Hitachi Group Code of Ethics and Compliance spell out decision-making
procedures and actions for all Hitachi Group executives and employees. To promote compliance, Hitachi has implemented
the Hitachi Group Compliance Program (HGCP) based on these standards. In addition, information is shared with business
units, key Group companies, etc., under the supervision of personnel responsible for Group-wide risk management andcompliance.

Hitachi Group Compliance Conference for working-level employees twice, each was divided among four regions

Strengthen complianceHeld interviews and provided improvement guidance for Group companies deemed “high-risk” in the compliance risk survey

Institute and integrate
a compliance reporting
system
Implement preventionof bribery and corrupt
practices and compliancewith competition law

Launched a Group-wide internal reporting system called the Hitachi Global Compliance Hotline and worked to integrate internal reporting systems
within the Group with it (Total number of Group-wide compliance reports: 639)
Established the Hitachi Group Anti-Bribery and Anti-Corruption Policy as well as the associated rules and clarified the standards and procedures
concerning entertainment, gifts, and other arrangements provided to or received from public officials and non-public officials alike
Established the Hitachi Group Fair Competition Policy and clarified the participation of departments responsible for compliance in types ofconduct other than with cartels (vertical relationships with customers, channel partners, suppliers, and so on)

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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Promoting Work Practices in Line with International Ethics Codes
Hitachi Group Codes of Conduct
PolicyEmployee Engagement

GRI 102-16

Hitachi, Ltd. has formulated the Hitachi Group Codes ofConduct, which all executives and employees across theentire Group pledge to uphold. The Codes of Conduct aretranslated into 14 languages from Japanese and shared with
Hitachi Group executive officers and employees around theworld.
In April 2020, we established the Hitachi Group Codeof Ethics and Compliance. This code supplements theCodes of Conduct and makes clear the ideas on corporate
ethics and compliance that must be shared across the entire
Hitachi Group.
Hitachi’s executive officers and employees around theworld have diverse cultural and educational backgrounds.
To ensure they thoroughly uphold corporate ethics andcompliance, all executive officers and employees take anannual e-learning course on corporate ethics. In addition, theHitachi Group monitors employees’ awareness of matterssuch as business ethics and compliance with an annual
survey as part of its efforts to cultivate a healthy corporate
culture.
Given the global reach of Hitachi’s business, the growthin possible risks is a concern. The Hitachi Group is working
hard to identify and avoid procurement risks throughout the
supply chain as much as possible. The third edition of the
Hitachi Group CSR Procurement Guidelines revised by the
Hitachi Group in January 2017 is based on version 5.1 of
the Electronic Industry Citizenship Coalition (EICC) Code of

Conduct as well as the Hitachi Group Codes of Conduct
established in August 2010. We distribute the guidelines
to suppliers and make efforts to raise awareness of themas CSR codes of conduct and standards that we expect
suppliers to adhere to.
In addition, we reviewed the guidelines in fiscal 2021.
The revised guidelines have been titled the Hitachi Group
Sustainable Procurement Guidelines.
Hitachi Group Code of Ethics and Compliance
P133 Sharing Responsible Procurement Policies with Suppliers

Achievements in Fiscal 2020
In fiscal 2020, more than 300,000 executive officers
and employees across the Hitachi Group took an
e-learning course (provided in 15 languages) on the
Hitachi Group Code of Ethics and Compliance. (Theparticipation rate was over 98%)
We have revised the Hitachi Group’s compliancerules. The three objectives for the revisions are as
follows: make codes that are easy for executive
officers and employees to understand, and provide
substantive reasons when actions are taken; andmore clearly share the compliance policy of Hitachithat is aligned with global standards with companies
and business divisions that join the Hitachi Group,
including through corporate buyouts.

Assurance

Information Management

Governance Data

GRI 406-1

Compliance Framework Structure
Structure

Based on the Hitachi Group Codes of Conduct and the
Hitachi Group Code of Ethics and Compliance, Hitachi
created the Hitachi Group Compliance Program (HGCP)
to promote compliance.
To implement this program we have appointed the
Hitachi Group Head of Risk Management and the HitachiGroup Head of Ethics and Compliance to supervise theHead of Ethics and Compliance in business units, key
Group companies, and other organizations. Under thissystem, policies and measures on compliance are sharedthrough communication with these Head of Ethics andCompliance. Head of Ethics and Compliance are assisted
by a Compliance Manager who implements practicalsupport measures. Globally, we have also appointed
Regional Head of Compliance in 11 regions, responsiblefor implementing education and sharing information
as well as arranging consultation services with outside
attorneys.
Issues in the promotion of compliance measures areclarified through individual dialogue with business units
and key Group companies, while the internal audit section
conducts Group-wide reviews once every four years toverify that each area of compliance is being appropriately
conducted. In cases where these reviews identify necessary
improvements, corrective measures are swiftly implemented.
In order to identify various risks, including risks of

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Introduction

Management

Environmental
Governancebribery and corrupt practices, Hitachi conducted risk
assessments on Group companies outside Japan in
the fiscal years of 2013 and 2017 and on all Group
companies in 2019. We will continue to perform regularrisk assessments like these and use the results to improve
compliance activities in all Group companies.

Compliance structure

Corporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

Achievements in Fiscal 2020
In the second half of the year, we appointed personnel in the United Kingdom to promote the compliance program andmade other efforts to strengthen its structure globally with the aim of driving implementation and optimization of the HGCP
across the entire Hitachi Group.
In May and June 2020, and January 2021, we held a Hitachi Group Compliance Conference for compliance persons
in charge at business units and Group companies. The conference was held four times for compliance persons in charge
in each of the following four regions: Japan; North, Central, and South America; Asia-Pacific; and Europe, the Middle East,
and Africa. At the conference in January 2021, the Chief Compliance Officer (CCO) personally explained Hitachi’s policies.
Interviews were conducted at Group companies deemed to be high risk based on the compliance risk survey
performed in fiscal 2019. The interviews were used to closely examine the situation at those companies and provide
guidance on how to improve. Based on the survey results, we will continue to allocate resources to high-risk operations
and regions, thereby securing the effectiveness of the program as we strive to take thoroughgoing measures according
to risk levels.

Representative Executive
Officer, President & COO

Hitachi Group Head of Risk Management (GHRM)

Chief Risk Management Officer (CRMO)

Hitachi Group Head of Ethics and Compliance (GHEC)

Chief Compliance Officer (CCO)

Regional business sites, branches, andcompanies (11 regions worldwide)

BUs, key Group companies, etc.
Heads of Ethics and Compliance (HEC)
Compliance Manager (CM)​

Local support by
regional businesssites, branches, andcompanies

Regional Heads of Compliance (RHC)

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Introduction

Management

Environmental
GovernanceSocialCorporate GovernanceCompliance

Compliance Reporting System
SystemTo prevent and promptly address illegal or inappropriate
activity and enhance its ability to self-regulate, Hitachi
has instituted an internal reporting system, a so-called
whistleblower system, allowing direct reports to be maderegarding actual or suspected compliance violations
including the provision of improper benefits to public
officials in and outside Japan. This system can be usedanonymously, not only by employees within the HitachiGroup but also by temporary staff and business partners,
such as suppliers and distributors. The facts related to allreports are subject to thorough investigation and reporters
are informed of the investigation results. We make every
effort to deal with situations as appropriate, including taking
remedial action where necessary. In fiscal 2020, we received
639 reports from all Group companies worldwide.
In addition, we have implemented the Channel to theBoard of Directors system to allow all Hitachi, Ltd. employees
to directly report problems anonymously or under their real
names to Hitachi directors in cases where they see any illegality
or extreme inappropriateness in business conduct by division
heads, executive officers, or other management personnel.
P126 Establishing a Global Grievance Mechanism

GRI 102-17

GovernanceRisk Management

In fiscal 2020, to further strengthen the Group’s
governance and compliance, we integrated internalreporting systems within the Group into a Group-widesystem called the Hitachi Global Compliance Hotline.
The harassment consultation service previously underthe management of the human capital division and theinternal reporting systems independently maintainedby Group companies were integrated into the new
system. However, the above-mentioned Channel tothe Board of Directors was not integrated, as thesystems have different purposes. The new systemenhances our reporting capacity by offering a service
24 hours a day every day in multiple languages bothonline and by telephone. In cooperation with business
units and relevant departments at Group companies,
we strive to promptly investigate, respond to, andtake corrective actions regarding reports received
through the hotline.

Information Management

Governance Data

Prevention of Antisocial Transactions andMoney Laundering
PolicyAchievements in Fiscal 2020

Assurance

Structure

To cut off all relationships with antisocial forces, in the
Hitachi Group Codes of Conduct and the Hitachi Group
Code of Ethics and Compliance, we have laid out provisions
stating that we will never engage in antisocial transactions
under any circumstances, and will refuse any improper
demands and unfair deals. We conduct eligibility checks on
new as well as existing business partners and, in Japan,
include antisocial force rejection clauses in contracts sothat if it is determined that a business partner belongs to an
antisocial force, we can promptly void the contract and end
the relationship. The entire Hitachi Group acts decisively toeliminate approaches from antisocial forces in partnershipwith external specialist institutions (the National Center for
the Elimination of Boryokudan or the police).
In fiscal 2020, we revised our established rules, adding
provisions on the prevention of money laundering in addition
to the prevention of antisocial transactions with a view toclarifying Hitachi’s stance of not tolerating money launderingand to strengthen concrete initiatives to prevent it.

Policies for Preventing Bribery andCorrupt Practices
PolicyPreventing bribery and corrupt practices is a major
challenge for any company today. Hitachi established the
Hitachi Group Anti-Bribery and Anti-Corruption Policy
along with related regulations as part of the Hitachi Group
Compliance Program (HGCP). When providing or accepting
entertainment or gifts, or making donations or political
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Introduction

Management

Environmental
Governancecontributions, executive officers and employees must notexceed the scope of actions permitted by anti-bribery laws
and regulations and must comply with Hitachi’s internal
rules. These indicate specific spending limits in terms of themonetary value and number of times for entertainment, gifts,
and other arrangements to be provided to public officials. We
also have policies banning facilitation payments and requiring
due diligence procedures for business partners. With anticorruption regulations growing stricter in recent years aroundthe globe, we also expend great effort ensuring that we arein strict compliance with the US Foreign Corrupt Practices
Act (FCPA) and all other relevant laws and regulations in the
countries and regions where we do business.

Educational Activities for Preventing Bribery andCorrupt Practices
Employee Engagement

GRI 205-2

To ensure awareness of rules and policies concerning
prevention of bribery and corruption spelled out in the
Hitachi Group Codes of Conduct, the Hitachi Group Code of
Ethics and Compliance, and the Hitachi Group Compliance
Program (HGCP), we have developed teaching materials
and made them available in several languages for use byGroup companies worldwide.

Achievements in Fiscal 2020
In fiscal 2020, we established the Hitachi Group
Anti-Bribery and Anti-Corruption Policy along withrelated regulations, clarifying the standards andprocedures for entertainment, gifts, travel, and otherarrangements provided to and received from others,
whether public officials or not.

Corporate GovernanceSocialCompliance

Competition Law Compliance Policy
PolicyHitachi engages in business based on the principles ofconformance with the law and business ethics and fair andopen competition. We included business standards andguidelines related to these principles in the Hitachi Group
Compliance Program (HGCP), in addition to the HitachiGroup Fair Competition Policy.

Preventing Violations of Competition Law
Activities

As with our initiatives against bribery and corrupt practices,
we are developing educational activities globally while at thesame time ensuring that we comply with the related rules,
business standards, and guidelines. To enhance awarenessof ethical principles and practices globally, we created a
global version of our standards regarding contact withcompetitors. We also provide a collection of case studies oncompetition law and other topics for workplace discussion
to Group companies in three languages—Japanese, English,
and Chinese—to raise employee awareness.

Achievements in Fiscal 2020
In fiscal 2020, as we reviewed our rules related tocompliance, as described above, we established the
Hitachi Group Fair Competition Policy, which are rules
for complying with competition laws. We also clarified
the involvement of compliance departments in types ofconduct other than cartels (vertical relationships withcustomers, channel partners, suppliers, and others).

GovernanceRisk Management

Assurance

Information Management

Governance Data

Export Controls
PolicyStructure

For basic export control policies, we have adopted the
Hitachi Group Codes of Conduct, which state: “We will
help maintain international peace and security throughcompliance with all applicable laws and regulations
concerning import and export, and will operate appropriately
according to our internal rules and policies.” Hitachi, Ltd.
has established Corporate Regulations concerning Security
Export Control based on this policy to carry out strict export
control practices in line with relevant laws and regulations,screening all goods and technologies intended for export
against such factors as destination countries and regions
as well as intended end use and end users. We provide
guidance and educational support for the formulation ofregulations and the establishment of frameworks to HitachiGroup companies to ensure that all Group companies follow
the same export control policies in accordance with relevantlaws and regulations.
At present, as part of our educational program for all
Group companies, we operate online courses and e-learning
programs on export controls. We operate a basic e-learning
program in 14 languages and an e-learning program for staff inJapanese and English. These ongoing efforts help ensure thatexport controls are thoroughly enforced throughout the Group.

Hitachi’s Tax Compliance Approach
Approach

GRI 207-1/207-2/207-4

Hitachi has built a system of tax governance in order to
respond to tax risks associated with the globalization of its
business such as indications made by the tax authorities andtax-related legal proceedings in each country. Specifically,
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Introduction

Management

Environmental
Governancewe established tax-related rules for the purposes listed
below. To ensure thorough compliance with the rules, weare striving to raise awareness of them among all employees
involved in tax management (filing and paying taxes,
handling tax audits, and tax risk management) and thehandling of other tax matters.
1. Group companies strictly comply with all relevant laws
and implement tax management when pursuing theirbusiness activities, bearing in mind such international taxcompliance standards as the Transfer Pricing Guidelines
for Multinational Enterprises and Tax Administrationsof the Organisation for Economic Co-operation andDevelopment (OECD), as well as that body’s Action Plan
on Base Erosion and Profit Shifting (BEPS).
2. Group companies effectively, continually, and proactively
manage tax-related issues as socially responsibleorganizations, while maintaining Hitachi brand value andseeking to maximize shareholder value.
3. Group companies build sincere and positive relationsof trust with the tax authorities in the regions where
the companies do business, and strive to maintain anddevelop those relations.
In accordance with these rules, we have establishedrules on transfer pricing management for Group companies
to identify and mitigate potential taxation risks related totransfer pricing in transactions with foreign affiliated parties,
and to help ensure compliance. As stated above, we are
striving to raise awareness of these rules and ensure they
are followed.

Corporate GovernanceSocialCompliance

Tax Compliance Initiatives
Activities

By following the relevant tax-related rules applicable to theGroup as a whole, Hitachi manages tax risks associatedwith globalization. For example, we strengthen ourrisk management as well as compliance with laws andregulations by identifying and sharing indications made by
the tax authorities and the tax related legal proceedings ineach country. The results of our tax filings and tax audits
in Japan are reported to the management, and we arecontinuously working to ensure appropriate tax reportingand prevent fraud. In preparing tax filings, we determine
whether anti-tax haven legislation applies, and when it does,
we reflect it properly in the tax filing in an effort to makeappropriate tax payments.
Hitachi follows rules for transfer pricing management
and also manages transfer pricing in accordance with
the OECD Transfer Pricing Guidelines and the laws andregulations on transfer pricing in each country or region
where Group companies are located.
In the fiscal year ended March 31, 2021, we paid 188.9
billion yen*¹ in corporate income tax (76% in Japan and 24%
outside Japan*²).

GovernanceRisk Management

Assurance

Information Management

Governance Data

Violations of Laws and Regulation
Activities

GRI 205-3/206-1/419-1

In fiscal 2020, there were no incidents in which Hitachi
was prosecuted or penalized by the authorities regarding
bribery, corrupt practices, competition law or export control.
Regarding tax compliance, Hitachi acts in accordancewith all applicable laws and regulations and did nothave any significant fines or nonmonetary sanctions fornoncompliance with tax laws and regulations.

*1 Refer to income taxes paid in consolidated statements of cash flows ofHitachi, Ltd.
*2 Based on the percentage in the country-by-country report submitted to tax
authorities

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Contents

Introduction

Management

Environmental
GovernanceRisk ManagementWhy
ー Why it matters ーSocialCorporate GovernanceCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

GRI 103-2/403-2

Social issues, including rapid advancements in digitalization and complex changes in political and economic situations occurring worldwide, along with environmental issues,
including climate change, resource depletion, and major disasters, are bringing changes to the business environment that are difficult to predict. In this era, the maintenance ofour business model will be greatly affected by how we respond to these changes as well. Hitachi understands that, in this context, it will be necessary to identify and analyze
opportunities to attain sustainable growth and the risks that it must prepare for and appropriately address them.
Given the close relationship of our business with social infrastructure, we are enhancing our business continuity plans (BCPs) to ensure that the impact of risks does not disrupt
our business and thereby significantly affect society.

Meanwhile, we remain actively engaged in promoting our own sustainable growth while contributing to the realization of a sustainable society by seeking out
business opportunities that contribute to the resolution of global issues including those relevant to the UN Sustainable Development Goals (SDGs) and Society 5.0.
Also regarding climate change, which is an urgent issue worldwide, Hitachi discloses key information and strives to promote responses to climate change based on
the proposals of the Task Force on Climate-related Financial Disclosure (TCFD).

What

How

ー What we are doing ーRisk and
Opportunity
Management

・Understanding andresponding to risks andopportunities related toinvestment, sustainability,etc.

ー How we are doing it ー

Policy andpromotion structure・	Implementing risk
management tostrengthen the businessand ensure continuity

Hitachi launched an Investment Strategy Committee to strengthen the quantitative risk management of its investments. The
Executive Sustainability Committee deliberates on the social and environmental impact of our business activities to clarify
any negative impact our business has on society and the environment and to identify issues. The company also establishedthe new position of chief risk management officer (CRMO) in April, 2020 and has worked to better understand the risks andopportunities that may affect its business and to strengthen risk management activities.
Achievements in Fiscal 2020

Strengthen risk
management systems
Understand risks andoppotunities and takeappropriate action

Established the new position of CRMO

Continued to strive systematically to identify and address risks hindering the achievement of business objectives, and for climate change,
disclosed information based on the TCFD’s recommendations
P048 Climate-related Financial Information Disclosure (Based on TCFD Recommendations)

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Introduction

Management

Environmental
GovernanceCorporate Governance

What・Strengthen procurement
BCPs・	Improve the safetyof employees sent todangerous regions

Compliance

GovernanceRisk Management

Assurance

Information Management

Governance DataHowー What we are doing ーBusiness
Continuation
Initiatives

Socialー How we are doing it ー

Policy andpromotion structure

To increase preparedness for major disasters and other risks across the entire Group worldwide, we have issued the HitachiGroup Guidelines for Developing Business Continuity Plans. Also, to minimize the impact of disasters that may occur, theprocurement divisions in business units and key Group companies in Japan have created procurement BCPs.
Achievements in Fiscal 2020

Earthquake drills
simulating a major seismic Conducted drills to set up an earthquake task force on a remote-work basis
event
Further strengthening
procurement BCPs
Continuously improving
the safety of employees
sent to dangerous regions

Hitachi Group CSR/BCP Procurement Committee provided supplier diagnostic tools to procurement divisions

Posted information from risk consultants internally through our intranet
Provided medical assistance for Hitachi Group employees outside Japan

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Introduction

Management

Environmental
Governance

Addressing Risks and Opportunities
Investment Risks and Opportunities
Approach

Structure

The business environment is changing with each passing
day, for example, as a result of rapid digitalization andchanges in complex political and economic conditions
worldwide. Hitachi monitors and analyzes the businessenvironments, and based on factors such as social issues,
management resources, and our competitive superiority,
undertakes risk management from the perspective of bothfurther growth opportunities and responding to the risks that
Hitachi should prepare for, controlling risks while creating
profit opportunities. Hitachi established the Investment
Strategy Division in fiscal 2017 and the post of Chief Risk
Management Officer (CRMO) in April 2020 to better identify
the risks and opportunities that could potentially affectHitachi’s business and to strengthen risk management.
From fiscal 2017, as part of efforts to achieve asustainable society, the Executive Sustainability Committee
was established to discuss relations between Hitachi’sbusiness and social/environmental issues and to define theissues that Hitachi should target as business opportunities,
the negative impact that business could have on society andthe environment, and necessary countermeasures.

SocialCorporate GovernanceCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

GRI 102-11

Investment Risks and Opportunities
Structure

Hitachi’s Risk Management

Board of Directors
Senior Executive Committee
Monitoring / Management

Implement risk management to strengthen businessand ensure business continuity
P176 Major Risks and Opportunities
Investments
and lending• Enhance individual
investment andbusiness evaluation
criteria• Strengthen themonitoring oflarge-scale M&A andother projects

Social andenvironmental
issuesInformation
security

Occupational
health and safety

Ascertaining and• Promote information• Rebuild a culture of
security governance*
safety and establish
responding to risks
affecting society and• Promote collaborative a safe workplacecreation by fostering
the environment,
Developa security ecosystem •including climate
countermeasures tochange and human rights
prevent work-related
accidents

P048
P175

P125

P181

P114

Quality
Assurance
Implement quality
assurance activities
from the perspectivesof “organization andmanagement,”“technology,” and“human resources” inevery process—from
product planning anddevelopment to design,
manufacturing, delivery,
and maintenance.

P137

ComplianceBusiness
Continuity Plan
(BCP)

Business risks

To improve the• Establish and maintain • Implement systematic
BCP systems as arisk assessments andeffectiveness andrisk responses
efficiency of frameworks, disaster/hazard
countermeasure
implement balanced• Strengthen projectmeasures in keeping
management• Procurement BCPs
with the level of risk
P178
and confirm/improve
effectiveness based• Formulate BCPs at
on monitoring and amajor Hitachi facilities
central group-wide
whistleblower system

P166

Hitachi Integrated Report* Information security governance supports corporate governance by building and implementing an organization’s internal control mechanisms related to information security.

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Introduction

Management

Environmental
GovernanceSocialCorporate GovernanceCompliance

Structure

To accelerate the global Social Innovation Business amid
structural changes and increasing uncertainty in the world
economy, it is increasingly important to understand investment
risks and opportunities (e.g., M&A and orders for projects) andto take appropriate measures.
As shown in the flowchart on the right, regarding
individual investment decisions (e.g., execution, business planchanges, and disposals), under the ultimate authority of theBoard of Directors and depending on the scale and content
of the projects, Hitachi delegates authority to the Senior
Executive Committee (which, in principle, meets twice permonth) and respective business units to facilitate flexible andappropriate decision-making. In addition, regarding importantmatters to be deliberated by the Senior Executive Committee,
prior to deliberations, discussions are held with the Investment
Strategy Committee*¹ advisory body to confirm and review
not only the perspective of economic value in terms of cash
flow and the profitability of projects but also the impact onsocial value and environmental value. The findings, includingpros and cons, are reported to Senior Executive Committee
members, including the President.
After making an investment, Hitachi regularly monitors thebusiness objectives and achievement status of the project,considering changes in the external environment. In principle,
each business unit ensures flexibility, but the Headquarters
is also involved depending on the level of importance. Also,
regarding changes in business plans and the disposal orreorganization of important investment targets, discussions
are held by the Senior Executive Committee as in theexecution stage. For investment targets of which business is
not progressing as planned, Hitachi established a framework

Risk Management

Assurance

Information Management

Governance Data

Quantitative Understanding of Risks

Investment Risks and Opportunities
Approach

Governance

GRI 102-15/102-29/102-30/102-31

to deliberate on the pros and cons of continuing business,
including withdrawal, to improve capital efficiency.
Investment Execution Flowchart
Business Unit (BU)
management meeting
Investment Strategy
ReportCommittee
Clarify project risk factors, identify
important issues, report findings,
including project pros and cons

BU CEO or
Executive
Vice President
approval

Senior Executive
Committee

CEO orPresident
approval(important projects)

Board of Directors

Board of Directors
discussion(particularly important
projects)

Post-Investment Flowchart
Monitoring by business unit
Monitoring by Headquarters
Contravention of specified conditions

Business withdrawal, sale or continuation
determined by business unit
Investment Strategy
Committee

ReportSenior Executive Committee
Business withdrawal, sale or continuation

Through the above process, Hitachi will further strengthen
asset profitability and risk tolerance while ascertaining risks
before and after investments are made.

Activities

GRI 102-15

Hitachi calculates the maximum risk (Value at Risk) assumed
by statistical methods according to the type of assets heldon the Group’s consolidated balance sheet.
Considering total consolidated net assets and otherfactors, we visualize the surplus capacity of growthinvestments to monitor growth opportunities and ensure thatrisks are not excessively unbalanced compared to Hitachi’s
consolidated management strength.
In addition, by analyzing risk conditions in each regionand sector and the outlook for future trends, Hitachi gains aquantitative understanding of risk concentrations in specificregions and sectors in comparison with profitability.

Responding to increasingly challenging andcomplex risks
Activities

GRI 102-15/201-2

Hitachi conducts business activities in a variety ofindustries throughout the world and therefore needs totake a multifaceted approach to managing the businessrisks that prevent the organization from achieving its
business objectives. To systematically identify, evaluate,
and manage risks, while taking into account the effects ofreorganizing the business portfolio, Hitachi is rebuilding
group-wide risk management frameworks and putting inplace more systematic processes, using global standardpractices at Hitachi ABB Power Grids as a reference. Byfurther enhancing risk management, we will strengthen
our capability of responding to different risks in eachbusiness and at the same time gain a comprehensive andintegrated understanding of those risks and put in place
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Contents

Introduction

Management

Environmental
GovernanceSocialCorporate GovernanceCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Datameasures in advance to better achieve the organization’s goals.
Following is an outline of the main risks and opportunities. This list assumes that the content was reasonable at the time this report was issued.
Annual Securities Report (The 152nd Business Term).

Major Risks and Opportunities
Major risk factors

Details on risks and opportunities
Risks

Market risks(Changes in exchange
rates, capitalprocurement interest,and stock prices)

Geopolitical risks• Decline in sales of products and services in yen, and increased costs of raw material and parts
purchasing• Revaluation loss due to decline in value of inventory assets• Increasing capital procurement costs• Changes in fair value due to declining value of stockholdings
Risks• Effects on business from political, economic, and social trends in countries and regions worldwide
Risks• Raw material shortages and manufacturing cost increases resulting from fluctuations in prices/supply
Raw material /parts procurementand demand• Negative effects on production activities• Damage to reputation caused by violations of laws and regulations, e.g., human rights violations bysuppliers
Risks• Reduced competitiveness due to commoditization and cost reductions in cutting-edge products,
systems, and services
Intensifying competition• Reduced competitiveness when cutting-edge technologies are not developed or applied in products
and rapid technology
and services on schedule
innovations
Opportunities

Company actions• Hedging exchange rate/interest fluctuation risks• Promoting local production/local consumption strategies for products and services• Sell-off of cross-shareholdings
Hitachi Integrated Report 2021 (P73)• Regularly monitor global political and economic conditions, analyze effects on business, andimplement Group-wide responses• Build close relationships with multiple suppliers• Use and strengthen Group-wide procurement functions• Create business continuity plans (BCPs) to strengthen responses to risks of business stoppages
 ave suppliers conduct self-inspections and audits and promote understanding to prevent violations of laws•Hand regulations
P130 Value Chain Management• Expand digital solutions using Lumada• Increase added value of products and services through co-creation with customers• Create value through open innovations and the formation of ecosystems• Form innovation ecosystems
P083 Research and Development• Secure growth opportunities by developing innovative technologies
Risks• Increased integration costs from M&As and loss of intangible assets including goodwill• Increased costs on large-scale projects
Opportunities

M&As and receipt oforders for large projects • Build growth platforms by securing new management resources onduct analyses and discussions from various perspectives at meetings of the Investment Strategy•C
Committee, Senior Executive Committee, Board of Directors, and Auditing Committee, e.g., regarding
trends in markets, competitors, and technologies, as well as strategies, acquisition prices, PMI
processes, and potential risks
 onitor investment results • Manage project risks, including phase gate management by business units•M
P174 Addressing Risks and Opportunities
P158 Corporate Governance

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Contents

Introduction

Management

Environmental
Governance

Major risk factors

Corporate GovernanceCompliance

GovernanceRisk Management

Details on risks and opportunities
Risks• Loss of growth opportunities due to intensifying competition in recruiting and securing outstanding
talent in the digital field
Secure talentSocialOpportunities• Strengthen competitiveness by securing and fostering outstanding talent

Assurance

Information Management

Governance Data

Company actions• Expand direct hiring of digital talent• Build comfortable work environments for diverse talent• Create common HR systems worldwide• Use learning management systems and implement in-house training programs that are common
throughout the Group worldwide
P091 Human Capital

Risks• Deterioration in work efficiency and loss of trust due to inability to put in place work environments
Occupational Healthand Safety

where employees can work safely and with peace of mind

• At Safety Strategy Promotion Meetings, create plans and targets and continuously review the status of
improvements• Support improvement activities at overseas sites and other workplaces where major accidents andincidents have arisen• Establish contact points for remote consultations with occupational physicians
P114 Occupational Health and Safety, Employee Health
Risks

Compliance• Loss of trust, limitations on business activities and increases in related costs due to behaviors thatdeviate from international ethics and codes of conduct in relation to bribery, competition laws, export
management, and taxation
Risks• Indemnity liability and loss of sales capabilities due to declining quality and defects resulting from
Product quality andresponsibility

increasingly complex and advanced products and services and diversification of suppliers• Strengthen structures for promoting activities based on the Hitachi Group’s Code of Conduct and the
Hitachi Group Compliance Program (HGCP), and implement these structures worldwide• Integrate, unify, and enhance internal reporting systems throughout the entire Group
P166 Compliance• Strengthen QA structures• Implement accident prevention activities• Ensure compliance with technology laws and regulations• Ensure thorough quality risk assessments
 rovide training in responses in the event of incidents involving quality, trust, and product-related accidents•P
P137 Quality and Product Safety Management

Risks

Climate change,
large-scale disasters,
infections (COVID-19)• Delays or suspension in business activities ranging from production to shipment and sales• Decline in product/service demand and confusion in supply chains• Increasingly serious natural disasters resulting from climatechange
Opportunities• Increasing demand for solutions aimed at reducing risks• Activities targeting carbon neutrality in “Hitachi Environmental Innovation 2050” long-term
environmental goals• Analyze risks and opportunities based on climate change scenarios, and respond based on results• Expand environment-related business• Create BCPs to strengthen responses to risks of business stoppages• Create and implement effective infection countermeasures
P008 Environmental Strategies

Risks

Information security• Interruption of operations or information leaks resulting from cyberattacks• Information leaks resulting from expansion of remote working
Opportunities• Increase profit opportunities resulting from increased demand for security measures

P049 Response to Climate-related Risks and Opportunities• Build cyber monitoring environments that incorporate the latest technologies• Implement information security training, and ensure thorough auditing and inspections• Confirm and audit the status of information security among suppliers• Strengthen development of technologies and products suited to digital environments
P181 Information Security

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Contents

Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

Business Continuation Initiatives
Hitachi’s Thinking on BCPs
Approach

Structure

Given the close relationship of our business to social
infrastructure, we are enhancing our business continuity
plans (BCPs) to ensure that the impact of risks does not
disrupt our business and thereby significantly affect society.
The Hitachi Group Guidelines for Developing BusinessContinuity Plans (Overview) and the Hitachi Group Guidelines
for Developing Business Continuity Plans (By Department)
were issued in Japanese and then translated into English
and Chinese for distribution to all Hitachi Group companies
to enhance preparedness for major disasters and other risks.
Regarding infectious diseases, we released the HitachiGroup Guidelines for Pandemic Influenza Preparedness
in Japanese, English, and Chinese. In fiscal 2020, they
served as a useful tool in dealing with the novel coronavirus(COVID-19) pandemic.
We have also appointed personnel with responsibility
for risk-response policies at our main overseas bases.
Around 300 overseas Group companies prepared BCPs tostrengthen their ability to respond to business risks including
major disasters, infectious diseases, political instability, social
disruption, and acts of terrorism.

BCP Initiatives in Japan◦ Creating BCPs for major earthquakes, wind andflood damage, as well as novel strains of influenza as
appropriate to each business operation (from fiscal 2011)◦ Conducted earthquake drills simulating a major seismic
event (annually)◦ C onducted initial response drills simulating a major
earthquake in the suburbs of Tokyo (fiscal 2018)◦ Developed action plans including setting up substituteheadquarters in the Kansai region in case our Tokyo
headquarters temporarily cease to function (fiscal 2017)and conducted drills to set up the substitute headquarters(fiscal 2019)◦ Conducted drills to set up an earthquake task force ona remote-work basis on the assumption that a major
seismic event had occurred on a holiday, shutting down
traffic (fiscal 2019)◦ Conducted drills to set up an earthquake task force ona remote-work basis on the assumption that all work is

Responding to COVID-19
A COVID-19 task force led by the president of
Hitachi, Ltd. was established at Group headquarters
to provide instructions on preventive measures toGroup companies worldwide. Similarly, each Group
company formed its own task force to secure thesafety of its employees and business continuity while
helping to maintain the social infrastructure throughtheir business operations. Our regional headquarters
around the world gather local information as well asshare information on the measures taken by HitachiGroup companies in their respective regions.
P120 Measures to Prevent Infectious Disease
P145 Hitachi Group’s COVID-19-Related Support Efforts
P122 Helping to Protect Employees Against COVID-19

conducted remotely (fiscal 2020)

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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

Procurement BCPs Initiatives
Approach

Risk Management

Assurance

Information Management

Governance Data

Improving Safety for Employees Sent toDangerous Regions

Activities

Our procurement divisions are also working to enhance
BCPs across Group companies worldwide so that theoccurrence of incidents does not disrupt business and havea significant impact on society.
For example, to minimize the impact of disasters that
may occur, the procurement divisions in business units
and key Group companies in Japan do the following: (1)standardize and use generic parts to make procurement
as flexible as possible; (2) cultivate multiple suppliers; (3)distribute production across several locations; (4) budget
inventory strategically; and (5) consider substitute products.
We held desktop exercises to see whether or notprocurement BCPs would be effective against earthquakes
and to make further improvements held group discussions
about what should be done during and after such disasters.
We collaborate on these activities with procurement
divisions in business units and key Group companies outside
Japan as well as reviewing and sharing strategies in aneffort to enhance procurement BCPs throughout the Group
worldwide.

Governance

SystemAchievements in Fiscal 2020
In fiscal 2020, all major Group business sites in Japan
with production lines (147 sites in total) took steps tostrengthen the procurement BCPs. In January 2020,
we introduced the Procurement BCPs Management
System for our business partners in Japan toefficiently share information among Hitachi Group
companies during disasters.
In fiscal 2020, the Hitachi Group CSR/BCP
Procurement Committee, which includes members
from business units and key Group companies,
provided a supplier diagnostic tool to procurement
divisions in an effort to support suppliers’ BCP
initiatives.

The president of Hitachi, Ltd. strengthened our policy of
ensuring the safety of employees sent to countries andareas at high risk of conflicts, terrorism, and other threats.
On-site surveys are also conducted by in-house and outside
experts beforehand. After employees are dispatched, we
conduct additional local surveys every six months to confirm
the effectiveness of our safety policies.
Hitachi, Ltd. is also contributing to safety measures atother Japanese corporations operating outside Japan. To
help enhance collaboration between the private and public
sectors in this area, we participate in the Council for PublicPrivate Cooperation for Overseas Safety organized by
Japan’s Ministry of Foreign Affairs and take part in publicprivate exercises to counter terrorism and kidnapping.

Achievements in Fiscal 2020
In fiscal 2020, with demonstrations occurring aroundthe world and also the COVID-19 pandemic, we
endeavored to ensure the safety of our employees
working around the globe with a range of safetymeasures. These included the timely provision of
information to employees by alerts we issued andinformation from outside risk consultants posted on
our intranet. In addition, we employed an outside
specialist to provide medical assistance to HitachiGroup employees outside Japan.

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Introduction

Management

Environmental
GovernanceSocialCorporate Governance

Information ManagementWhy
ー Why it matters ー

What

Security

Risk Management

Assurance

Information Management

Governance Data

GRI 103-2

Even as the development of IoT creates new value, cyberattacks are growing increasingly sophisticated and widening in focus from traditional IT to encompass the IoT/OT
field as well. The risks for corporations include leaks of information, operational stoppages, and even direct disruption to business making information security one of themost critical issues companies face. Hitachi, in developing its Social Innovation Business, has highlighted the vital importance of information security governance as a key
management issue and is working to address it.
With the arrival of the digital age due to advances in IT and the globalization of socioeconomic activity, privacy risks have also increased. Data associated with individuals,
including location information and purchase history, has come to be known collectively as “personal data.” The use of personal data can be expected to create value going
forward, but protecting this data and showing due consideration for privacy is essential.

Howー What we are doing ーInformation

Compliance

Governance・Disseminating information
security policies
・Strengthening information
management

ー How we are doing it ー

Policy andpromotion structure・Preventing information
leaks
・Providing education
programs on information
security・Conducting thoroughinformation security audits
and inspections
・Personal information
protection・Managing customer
information

Hitachi has established Information Security Policies that foster cybersecurity risk management. The Information Security
Committee is chaired by the chief information security officer (CISO) who has the responsibility and authority for the
implementation and operation of Hitachi’s information security and personal information protection systems. The committee
determines relevant policies and measures, while the information security heads at each Hitachi business unit (BU) andGroup company promote workplace awareness and oversee measure implementation.
Achievements in Fiscal 2020

Strengthen information
management

In addition to ISO/IEC27001, which is an international standard, we are promoting compliance with the U.S. government standard SP800-171 in
our Global Information Security Management Regulations to strengthen information security governance globally.
Built a cyber monitoring environment that continually adopts the latest technology to defend against increasingly sophisticated cyberattacks

Provide education
programs on information
security

Held e-learning programs on information security and personal information protection (participating employees: around 40,000)

Conducted Information security and personal information protection audits at all Group companies and business units (annual)
Conduct thoroughinformation security audits
Conducted audits of 153 Hitachi Group companies in Japan including Hitachi, Ltd. in the same manner as at Hitachi, Ltd. and Hitachi, Ltd.
and inspections
confirmed all results

Personal information leaks Personal information leaks: 0
Privacy protection
initiatives by Hitachi’s IT
Sector· Published opinion surveys on use of consumer data in big data businesses· Hitachi initiatives were included in the Guidebook on Corporate Governance for Privacy in Digital Transformation (DX) ver.1.1 released by Japan’s
Ministry of Internal Affairs and Communications and Ministry of Economy, Trade, and Industry.

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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

Information Security
Information Security Policies
PolicyHitachi considers one of its top management priorities tobe information security governance to minimize the riskof business disruption such as leaks of information oroperational stoppages due to cyberattacks. The Japan
Business Federation’s Declaration of Cyber Security
Management also places emphasis on cyber security
measures as a critical management challenge from the
aspects of both value creation and risk management. Hitachi
approaches the issue of information security governancebased on the same philosophy.
At the same time, as a global company, we regard
cyber security risk as one of our management risks.
Accordingly, to enable us to declare both internally andexternally Group policies for addressing this risk, we haveformulated Information Security Policies in line with our
corporate management policies and based on our cybersecurity risk management.
We have our data centers and other divisions certified
by the ISMS Accreditation Center in accordance with the
ISO/IEC 27001 Information Security Management Systeminternational standard. This certification has been received
by seven divisions of Hitachi, Ltd. and 28 divisions of 23
Group companies.*¹*1 As of March 31, 2021.

Information Security Policies

1.Formulation and continuous improvement of information
security management regulations
2. Protection and continuous management of information assets
3. Strict observance of laws and standards
4. Education and training
5. Incident prevention and management
6. Assurance of fair business practices within the corporate
group

Framework for Promoting Information Security
President & COO

Information Security Chief
Auditor

Chief Information Security Officer

Information Security Committee

Framework for Promoting Information Security
Structure

At Hitachi, Ltd., the Chief Information Security Officer (CISO),
who is the C-level executive with ultimate authority andresponsibility regarding the handling of information security
and personal privacy issues oversees the promotion of
information security for all Hitachi products, services, andinternal facilities.
Chaired by the CISO, the Information Security
Committee determines all policies and procedures for
information security and personal information protection. As
a general principle, heads of business units and divisions
serve as information security officers. They also establish
information security promotion departments, work to
implement information security management in each
workplace, and provide relevant education to employees.
This framework is also implemented at Group companies
to promote information security across the Group throughmutual cooperation.

Information Security Management
Structure

Hitachi establishes its Global Information Security
Administration Rules which conform to the international ISO/IEC 27001 standard and follows NIST Special Publication
800-171 (National Institute of Standards and Technologyof the Department of Commerce in the United States) toreinforce its information security. These rules are globally
distributed by the headquarters of Hitachi, Ltd. and its Group
companies. Other measures include actively promoting
the use of shared security services and related support for
information security provided by regional headquarters in theAmericas, Europe, Southeast Asia, China, and India.
The Information Security Promotion Council and otherbodies convey policies and procedures for information
security and personal information protection determined by
the Information Security Committee internally and to othercompanies in the Hitachi Group. Information security officers
at business sites and companies ensure that these decisions
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Introduction

Management

Environmental
Governanceare implemented in the workplace.
Details of our information security initiatives arecontained in our Information Security Report.
Information Security Report

Achievements in and after Fiscal 2020
As Hitachi promotes new workstyles based on
telecommuting, the vulnerability posed by employees’
security awareness becomes a risk. Given this threat,
we are working to raise security awareness among
our employees with an employee-centered approach
alongside IT-based security measures.

Security Monitoring
In Hitachi, the Security Operation Center (SOC) monitors
security on a round-the-clock basis so global-scale
cyberattacks can be detected and countermeasures initiatedright away. The Incident Response Team (IRT) collects anddevelops threat intelligence*¹ and manages the response to
any security incidents.
Every year, cyberattacks become more sophisticatedwith damage tending to increase as attacks slip past
conventional detection and go undiscovered for longer
periods. To counter this risk, in fiscal 2020 we beganbuilding a cyber monitoring environment that always uses
the latest technology.
*1 Threat intelligence: An approach to countering cyberattacks using
knowledge of new threats gathered from multiple sources of
information on cyber security.

Preventing Information Leaks
Structure

Hitachi takes the following IT steps to prevent information

Corporate GovernanceSocialComplianceleaks: encrypting devices; using thin clients;*¹ employing
electronic document access control and expiration
processing software; maintaining ID management andaccess control by building an authentication infrastructure;and filtering e-mails and websites. In response to the recent
spate of targeted e-mail attacks and other cyberattacks,
we are participating in an initiative to share information
between the private sector and the government. We are alsoenhancing various IT measures such as a defense in depth
strategy.
To prevent leaks from our suppliers, we review theirinformation security measures based on Hitachi’s own
standards before allowing them access to confidential
information. We also provide tools to suppliers for security
education and for checking business information on
computers. In addition, we require suppliers to check andremove business information from personal computers.
*1 Thin client: A terminal with the minimum necessary software. Thin clientcomputing significantly enhances cyber security by storing applications anddata on the server.

Education on Information Security
Employee Engagement

Hitachi holds annual e-learning programs on information
security and personal information protection for all executive
officers and employees. More than 40,000 employees
at Hitachi, Ltd. participate in these programs, and theparticipation rate has reached almost 100%. We offer avariety of courses that have different goals and are tailoredto different target audiences, including new employees, newmanagers, and information system administrators. We also
implement simulation training to educate employees aboutphishing attacks and other cyberattacks. Employees aresent deceptive e-mails as phishing simulations to heighten

GovernanceRisk Management

Assurance

Information Management

Governance Data

their awareness of security through direct experiences.
Educational programs from Hitachi, Ltd. shared within
the Group provide Group-wide education on information
security and personal information protection.

Thorough Information Security
Audits and Inspections
Activities

The Hitachi Group has developed its approach to security
based on the “Plan-Do-Check-Act” (PDCA) cycle for its
information security management system. We conduct
annual information security and personal information
protection audits at all Group companies and business
units.
The president of Hitachi, Ltd. appoints officers
to conduct independent audits. These officers are
not allowed to audit their own units, underlining ourcommitment to fairness and objectivity in auditing.
There are 153 Hitachi Group companies in Japan,
including Hitachi, Ltd., that conduct audits in thesame way as Hitachi, Ltd., and all results are subject
to confirmation. For Hitachi Group companies outside
Japan, we use a common global self-check approach toensure Group-wide auditing and inspections. All business
units conduct Confirmation of Personal Information
Protection and Information Security Management annually
as self inspections. We conduct monthly Confirmationof Personal Information Protection Management at 733
operations (as of March 2021) that handle important
personal information. This regular control mechanism
ensures ample safety management and implementation.

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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

Personal Information Protection
during fiscal 2020.

Personal Information Protection Policy
Structure

Hitachi, Ltd.’s Personal Information Protection Policy sets out
its corporate philosophy and principles on personal information
protection. The policy is disseminated to all executive officers
and employees as well as being publicly available.
A personal information protection management system
based on the policy has also been established. Throughthe rollout of the system, as well as the safe handling of
personal information, programs for all employees, andperiodic audits we are ensuring protection of personal
information.
Personal Information Protection Policy

PrivacyMark*¹ Certification
Activities

GRI 418-1

Hitachi, Ltd. has received PrivacyMark certification. The
entire Hitachi Group is committed to personal information
protection with 39 Hitachi Group companies having received
the PrivacyMark as of March 31, 2021.
Hitachi also strives to safeguard personal information
globally at Group companies outside Japan based oneach company’s personal information protection policy
and ensures that they comply with all applicable laws
and regulations in each country and region as well as the
expectations of society at large.
There were no cases of personal information leakage*1 PrivacyMark: A third-party certification established in April 1998 that is grantedby the assessment body the Japan Information Processing Development
Corporation to businesses that have taken appropriate security management
and protection measures related to personal information.

Responding to Personal Data Protection Laws
Around the World
SystemWith the increasing risk of privacy violations in recent
years due to the advent of the digital age following
advances in IT and the globalization of socio-economic
activities, lawmakers are actively seeking to create andmodify relevant laws and legislation in countries andregions around the world. Hitachi pays close attention to
relevant laws and legislation on a global basis including
the European General Data Protection Regulation (GDPR)
and makes efforts to comply with them across the Group.
We also monitor relevant legislation and social trends andtake action when necessary.

Management Framework for Customer Information
Structure

Hitachi has deployed customer relations management(CRM) systems at approximately 200 Group companies,
which allow us to collect and accurately manage customer
and transaction information, in addition to using it as amarketing tool. This covers more than 80% of the orders
received across the whole Group with the database enabling

us to formulate more effective sales strategies and offer
collaborative solutions by multiple businesses.

Privacy Protection Initiatives by Hitachi’s IT Sector
Approach

Activities

We are taking proactive steps to protect privacy toensure that personal data is used safely and securely. In
our IT sector, which leads our digital business, we haveassigned a personal data manager responsible for privacy
protection and established a privacy protection advisorycommittee to support risk assessments and develop
countermeasures based on its knowledge and expertise ofprivacy protection. In accordance with the policies set by
the committee, our employees implement privacy impact
assessments for processes where personal data will behandled and take measures to prevent privacy violations.
In fiscal 2020, the number of cases where personal data
was handled increased because of our measures against
COVID-19. The committee has issued guidance on privacy
protection items of this sort and is putting measures inplace based on this guidance.
Furthermore, we regularly conduct consumer
opinion surveys on the use of consumer data in big
data businesses. The 2020 survey revealed trends
thought to be attributable to the current social climate
such as expectations for measures using personal datato help counter the spread of COVID-19. Initiatives
to regularly survey consumer opinions and then use
this information to assess and improve measures are
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Introduction

Management

Environmental
GovernanceCorporate GovernanceSocialCompliance

GovernanceRisk Management

Assurance

Information Management

Governance Data

regarded as important and are taken up as examples in
the Guidebook on Corporate Governance for Privacy inDigital Transformation (DX) ver.1.1 published by Japan’s
Ministry of Internal Affairs and Communications (MIC) andthe Ministry of Economy, Trade, and Industry.

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Introduction

Management

Environmental
Governance

Governance Data

SocialCorporate Governance

GovernanceCompliance

Risk Management

Assurance

Information Management

Governance Data

GRI 405-1

Corporate Governance
Leadership Demographics
Gender

Unit

Total

Male

Executive officers

People*1

Executive officers and corporate officers*1*3

Ratios of female and non-Japanese executive officers and corporate
officers%＊2

FemaleJapanese

Non-Japanese

11

2

7

6

32

31

1

28

4

69

62

7

61

8

13

Directors*1

Nationality(10.1%)(11.6%)*1 As of June 2021
*2 Including 10 independent directors (four from Japan and six from outside Japan)*3 Including fellows

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Introduction

Management

Environmental
GovernanceSocialCorporate Governance

GovernanceCompliance

Assurance

Risk Management

Information Management

FY 2018

FY 2019

Governance Data

Compliance
Compliance Reporting System
Compliance Reporting System
Reporting Boundary
Number of compliance reports*¹

Hitachi Group

Unit
Cases

FY 2016

FY 2017———

FY 2020459

639*1 Disclosures began in fiscal 2019.

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Introduction

Management

Environmental

SocialGovernance

Assurance
Independent Assurance

Independent Assurance

GRI 102-56

To enhance the reliability of the data disclosed in the Hitachi Sustainability Report 2021,
we have received independent assurance of key environmental and social performanceindicators by KPMG AZSA Sustainability Co., Ltd. The indicators that were assured aremarked with a.
The standards, guidelines, and calculation methods used in collecting environmental data
are posted on our website.
Calculation Methods for Environmental Load Data

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Inquiries

Sustainability Promotion Division
1-6-1 Marunouchi, Chiyoda-ku, Tokyo 100-8220, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4235-5835
www.hitachi.com/sustainability/