EnvironmentalHitachi established its “Environmental Vision” to define and clarify the society which we seek from a long-term perspective, given the trend of deepening environmental issues in the world and its management policy. To realize “Decarbonization”, “Circular Economy”, and “Nature Positive” which are set forth by its Environmental Vision, Hitachi formulated long-term environmental targets called “Hitachi Environmental Innovation 2050”.
Carbon neutrality
at factories and offices
FY2030
Reduce GHG emission
by 52% through the value chain
FY2030
Achieve net zero
by FY2050
FY2050
SAQ completed
by procurement partners
4,029
companies
(FY 2024)
Hitachi has set out targets to achieve decarbonization throughout its value chain by FY2050 among “Hitachi Environmental Innovation 2050”
Among our long-term environmental targets “Hitachi Environmental Innovation 2050”, we have set a goal of achieving carbon neutrality by FY2030 at our factories and offices.
To achieve this goal, we promote initiatives with a roadmap to reduce GHG emissions including CO2 by 50% from the base year in FY2024, 80% in FY2027, and carbon neutrality in FY2030.
As specific measures, we strive to achieve the followings, with particular emphasis on increasing power sources with additionality*1:
Among our long-term environmental targets “Hitachi Environmental Innovation 2050”, we have set a goal of achieving net zero by FY2050 and reducing GHG emissions by 52% through the value chain by FY2030 (compared to FY2022)
Hitachi is supported by procurement partners which establish and maintain our value chain in wide business areas. It is important for Hitachi to have support from procurement partners and liaise with them to achieve the carbon neutrality through the value chain.
Our initiatives to reduce the upstream GHG emissions in the value chain include Scope 3 Category 1*3, in collaboration with our procurement partners. In May 2025, the revised Hitachi Group Sustainable Procurement Guidelines*4 were released. The updated guidelines clearly outline the Code of Conduct that procurement partners are required to follow in terms of compliance with laws and regulations, and are expected to respond to the Self Assessment Questionnaire (SAQ) and accept on-site audits. New items have also been added, such as respect for land rights and contributions to the circular economy. These guidelines have been distributed to procurement partners to raise awarness and promote understanding. Also, we requested our procurement partners to measure GHG emissions, set and disclose a GHG reduction goal and promote initiatives to inimize GHG emissions.
In order to calculate GHG emissions of Scope 3 Category 1, Purchased Goods and Services, in the value chain upstream, we use the spend basis method to cover entire group procurement activities and also reflect the primary data obtained from procurement partners into the calculation in part. We ensure that the primary data collection from procurement partners are through our engagement and utilize a third-party sustainability evaluation platform, EcoVadis.
We are also promoting collaboration with procurement partners to reduce Scope 3 Category 1. We engaged in dialogue with 21 procurement partners selected in FY 2022. Through these discussions, we explored methods for GHG reduction, calculation techniques, and approaches to data collection, analysis, and utilization.Leveraging the insights and methods gained, we carried out reduction initiatives with approximately 100 procurement partners in FY 2023, and expanded the efforts to approximately 250 partners in FY 2024. Moving forward, while continuing our existing efforts, based on insights gained from previous fact-finding surveys, we will focus on supporting small and medium-sized enterprises by developing and providing capacity-building programs and support tools ( “Handbook for Carbon Reduction Journey” and others).
In addition, to reduce CO2 emissions from products and services purchased upstream in the value chain, we began, in FY 2023, to source all newly refined aluminum (AL ≥ 99.7%, standard ingots) for domestic use in Japan from manufacturers that produce it primarily using hydropower.In FY 2024, through co-creation with procurement partners, we also began adopting green steel*5 produced using the mass balance approach. In addition to these efforts, we are actively considering and incorporating environmentally friendly procurement practices, including the use of product materials made with renewable energy, new technologies, and recycled materials.
As part of the Hitachi Group's Green Procurement*1 initiative, we explicitly formulate our ideas and requests regarding environmentally friendly businesses and share them with procurement partners. In 1998, the Hitachi Group was at the forefront of the industry by formulating its original Green Procurement Guidelines, in which we compiled our fundamental policy regarding the procurement of environmentally friendly parts and products, and by working with our procurement partners in accordance with this policy. In 2021, Hitachi Group revised the Green Procurement Guidelines along with the Hitachi Group Sustainable Procurement Guidelines.
In the Green Procurement initiative, we request our procurement partners to comply with the Guidelines and deliver items relating to the partners' environmental preservation activities (such as establishing an environmental management system and obtaining recommended certifications). In addition, we strive to procure items that have a reduced burden on the environment, for example, items that demonstrate (or are produced by using) the best practices for saving resources, saving energy, recycling, and properly managing the chemical substances in products and providing adequate information.
The Guidelines are available in three languages: Japanese, English and Chinese.
Please enter the Portal of Green Procurements for details on chemical substances contained in products.
For the purpose of risk management and engagement with procurement partners, Hitachi evaluates and analyzes the state of sustainability initiatives at procurement partners.
Starting in FY2022, we adopted the EcoVadis third-party evaluation platform for monitoring and evaluating the sustainability performance of our procurement partners. We perform assessments regarding procurement partners who represent a large portion of our procurement and who are important to our business strategy. We confirm sustainability efforts based on a checklist covering four areas: environment, labor and human rights, ethics, and sustainable procurement. In FY2024, we conducted sustainability assessments of 4,029 procurement partners (in 62 countries) across the Hitachi Group.
We use the information obtained from these evaluations to identify companies requiring corrective action, to discuss
and monitor improvement methods, and to select and conduct sustainability audits. We will continue to work with more procurement partners and expand the number of our partners evaluated by EcoVadis assessment.
We engaged in dialogue with 21 procurement partners selected in FY 2022. Through these discussions, we explored methods for GHG reduction, calculation techniques, and approaches to data collection, analysis, and utilization.Leveraging the insights and methods gained, we carried out reduction initiatives with approximately 100 procurement partners in FY 2023, and expanded the efforts to approximately 250 partners in FY 2024.
Moving forward, while continuing our existing efforts, based on insights gained from previous fact-finding surveys, we will focus on supporting small and medium-sized enterprises by developing and providing capacity-building programs and support tools ( “Handbook for Carbon Reduction Journey” and others).
We held sustainable procurement seminars in an effort to deepen procurement partners' understanding of Hitachi policies and the importance of sustainability.
We invite our procurement partners in Southeast Asia, India, China, and Japan to the Regional Sustainability Procurement Seminar to address social issues proactively together with our procurement partners. 156 procurement partners participated in the FY2024 seminar. We strive to communicate the Hitachi Group Sustainable Procurement Policy to each region.
