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Hitachi

Mid-term Management Plan 2024 and Sustainability

Towards Sustainable Societies—Mid-term Management Plan 2024

In accordance with Hitachi’s Mission to “contribute to society through the development of superior, original technology and products,” we pursue our Social Innovation Business leveraging core strengths in IT (Information Technology) × OT (Operational Technology) × Products, and Lumada*1 to help build sustainable societies.
To respond to the increasingly complex global issues of recent years, it is essential that we conduct management from a long-term perspective and maximize Hitachi’s diverse management resources to achieve further evolution in our Social Innovation Business.
Hitachi has responded by imagining the future—what the earth, society, and people will look like and what Hitachi will act like in 2050. Based on the future, in April 2022, we back-casted to formulate the Mid-term Management Plan 2024 which clarified what Hitachi should do now and what Hitachi should achieve over the medium- to long term.

*1
Lumada: Solutions, services, and technologies that leverage Hitachi’s digital technology and are offered to customers to accelerate the digitization of customers’ businesses.

Vision Targets of Mid-term Management Plan 2024

Hitachi continues to grow across diverse industries and solve social issues through the three global trends of Digital, Green, and Connective as change drivers.
The environment is reaching limits on a global scale as the thresholds of several of the nine planetary boundaries have already been crossed. Also, wellbeing (physical, mental, and social) is a growing global issue, therefore it is significant that we focus both on planetary boundaries and wellbeing.
Hitachi aims to resolve the increasingly complex social issues through its business, while respecting planetary boundaries and realizing wellbeing for all individuals. We will further evolve our Social Innovation Business driven by three growth drivers: Digital, Green, and Innovation, and contribute to solve social issues. We will also grow Lumada globally as a customer co-creation framework, accelerating expansion through four cross-organizational functions: Green, Digital, Innovation, and Global M&S.

Supporting quality of life with data and technology that foster a sustainable society

Supporting quality of life with data and technology that foster a sustainable society

Contributing to the SDGs

Hitachi’s Social Innovation Business aims to create sustainable societies by solving global social and environmental issues as defined by the SDGs, and we consider these solutions to be a source of sustainable growth for us. We strive to create social, environmental, and economic value through our Social Innovation Business, reduce negative social and environmental impacts and seek a deeper understanding of business risks arising from social and environmental changes to ensure business continuity and greater resilience.
Based on our Mid-term Management Plan 2024, we examined the relationship between the opportunities and risks associated with the SDGs and our businesses to identify 13 goals as Hitachi priority SDGs issues: five goals through which we make particularly significant impacts through our key businesses and six goals through which we particularly contribute in the course of our corporate activities.
Through our active involvement across a broad range of business fields, we believe we can contribute extensively to the achievement of SDGs beyond the 13 goals identified, and we will strive to contribute to the achievement of all 17 SDGs.

Bussiness Strategy / Corporate Commitment

Framework for Promoting Sustainability Strategy

Establish a System to Promote Sustainability

Hitachi pursues sustainability initiatives across the group under the leadership of Chief Sustainability Officer, Lorena Dellagiovanna.
In April 2022, Hitachi established the Growth Strategy Meeting, Risk Management Meeting, and Human Resource Strategy Meeting to deliberate on the following important issues within the Senior Executive Committee that discusses important topics in Hitachi’s corporate management.

Growth Strategy Meeting: Matters related to management strategies for the growth of the Hitachi Group
Risk Management Meeting: Matters necessary for the proper management of risk in the Hitachi Group
Human Capital Strategy Meeting: Matters necessary for establishing organization and culture, and securing and developing human capital for the growth of the Hitachi Group

The Growth Strategy Meeting discusses and decides on matters related to the Hitachi Group’s management strategy and accelerates the formulation of strategies necessary for its growth.
The Risk Management Meeting discusses and decides on important matters related to group-wide risks, and aims to realize a solid management foundation in coordination with growth strategies through a centralized and cross-sectional understanding of risks.
The Human Resource Strategy Meeting discusses and decides on matters necessary to foster the Hitachi Group’s organization and culture as well as to secure and develop human resources, thereby supporting its further growth through the enhancement of human capital.
After discussions at these meeting bodies, important sustainability issues are deliberated on by the Senior Executive Committee to make decisions, and are submitted to the Board of Directors for further discussions as necessary.

Individual sustainability themes such as carbon neutrality, circular economy, human rights due diligence (HRDD), diversity, equity, and inclusion (DEI), occupational safety and health, supply chains, quality assurance, etc. are promoted by meeting bodies consisting of responsible staff at BUs and principal Group companies as part of cross-organizational activities in the Hitachi Group, who discuss measures and share information across the entire Group.
Since fiscal 2022, we hold the Sustainability Promotion Meetings chaired by the Chief Sustainability Officer to discuss and share information on important measures related to sustainability across the group, aiming to deepen sustainable management further.

Framework for promoting sustainability strategy

Framework for promoting sustainability strategy

Overview of Sustainability Related Conference Bodies

Meeting Attendees Purpose Frequency
Sustainability Promotion Meeting Chief Sustainability Officer, Business promotion division heads at BUs & key Group companies and RHQ Sustainability Officers Deliberation, information sharing related to material sustainability initiatives Once or twice per year
Eco-Management Meeting Heads of Business promotion/Environment-related/MONOZUKURI (production)/Procurement divisions from BUs and key Group companies Deliberation, planning, and implementation of action plans (environmental action plans) to achieve the Hitachi environmental long-term goals Twice per year
Eco-Management CN2030 Promotion Project Meeting Heads and members of Environment-related/MONOZUKURI (production) divisions from BUs and key Group companies Monitoring and implementation of CN action plan and discussion of acceleration Twice per year
Eco-Management 3R Promotion Project Meeting Heads and members of Environment-related/MONOZUKURI (production) divisions from BUs and key Group companies Promotion of actions for 3R activities toward realizing CE Four times per year
Sustainable Procurement Conference Chief Procurement Officer, heads of the procurement divisions at BUs and key Group companies, and individuals responsible for and engaged in sustainable procurement Communicate the Hitachi Group sustainable procurement policies and strategies to all procurement divisions, improve knowledge and share best practices Twice per year
HRDD Execution Managers Meeting HRDD execution managers from BUs and key Group companies Provide information and knowledge necessary for HRDD implementation, and share status of implementation in BUs and key Group companies Once or twice per year
Global DEI Council DEI leaders from BUs and key Group companies Implement DEI policies, initiatives and share best practices Once or twice per year
Health and Safety Leaders Meeting Individuals responsible for health and safety at BUs, key Group companies (CHRO, officer in charge of health and safety) Instruct and communicate occupational health and safety activity policies and measures, confirm progress
Share the details of important incidents related to occupational health and safety, discuss measures to ensure the prevention of recurrence
Once per two months
QA Division-Manager Liaison Meeting Heads of the quality assuarance divisions at BUs and key Group companies Discuss and develop shared Hitachi Group quality improvement activity policies and measures for products and services Every quarter

Framework for Implementing the Hitachi GX Strategy

Aiming to be a global leader in green transformation (GX), Hitachi formulated a Green Strategy consisting of GX for CORE and GX for GROWTH, striving to put into place a framework to execute our strategy.
The Internal Environment Initiatives Division leads environmental activities within the Hitachi Group. At the same time, the Global Environment Business Group drives growth through green businesses. And the business sectors foster environmental contributions through their respective business fields by working together to lead green strategies throughout the group.

Framework for implementing GX strategy

Framework for Implementing the Hitachi GX Strategy

Stakeholder Engagement

In its commitment to promoting the Social Innovation Business, Hitachi endeavors to accurately identify the various social issues facing each country and region, and to work toward resolution of these issues 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 for direct dialogues between the management and employees, who are an essential management resource. Furthermore, with the recent rise in ESG investment, we actively engage in dialogues with shareholders and investors as well.