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Hitachi

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The 2021 Mid-term Management Plan and Sustainability

Since its founding, Hitachi has responded to social challenges by placing its Corporate Credo of contributing to society through the development of superior, original technologies and products at the center of its business. In recent years, we have promoted our Social Innovation Business in order to contribute to improving people's quality of life and realizing a sustainable society. We have implemented sustainable management, placing sustainability at the center of our business strategy and—in our 2021 Mid-term Management Plan announced in May 2019 and ending in fiscal 2021—setting ourselves the goal of contributing to the realization of a sustainable world as a global leader of Social Innovation Business. We strive to simultaneously increase social, environmental, and economic value, as well as enhance our customers' corporate value and the peoples' quality of life.

With our 2021 Mid-term Management Plan, we have advanced to a new stage, identifying five sectors where we can increase social, environmental, and economic value for our customers simultaneously: mobility, smart life, industry, energy, and IT. In order to increase the three kinds of value simultaneously, we will expand our Social Innovation Business through collaborative creation with our partners around the world by providing Lumada, a solution that accelerates digital innovation, as a cyber-physical system allowing the cyber and physical spaces to interact.

Based on these ideas, we continue to pursue the 2021 Mid-term Management Plan, further merging sustainability and business to contribute to the resolution of social issues through initiatives like Society 5.0 and Sustainability Development Goals (SDGs).

Enhancing Three Kinds of Value with Solutions in Five Sectors

With the five products as a foundation, by using Lumada to provide mobility, smart life, industry, energy, and IT solutions, we strive to increase social, environmental, and economic value, as well as enhance our customers’ corporate value and the peoples’ quality of life.

Sustainability Strategy Promotion Structure

In 2017, Hitachi, Ltd. launched the Executive Sustainability Committee to discuss and reach decisions on the Group's sustainability strategy. The committee comprises President and CEO Toshiaki Higashihara and other members of the Senior Executive Committee, along with the CEOs of every business unit.

Sustainability Promotion Meetings attended by sustainability strategy promotion officers from business units were also established under the committee to strengthen our systems for promoting specific measures for advancing sustainability, including contribution to achieving the SDGs. We aim to achieve a sustainable society through long-term corporate strategies focusing on ESG (environmental, social, and governance) in business activities as well as conventional CSR activities to take responsibility for our corporate impact on society and respond to requests from stakeholders.

To review and discuss CSR initiatives, CSR Corporate Meetings are regularly held by officers from corporate divisions of Hitachi, Ltd., as are CSR Manager Meetings attended by CSR and social contribution officers from business units and Group companies. Global and Regional CSR Meetings are also held regularly, allowing CSR officers from regional headquarters outside Japan to share common directions and exchange information with the aim of promoting sustainability. And, to discuss and implement specific measures to achieve long-term environmental targets, Eco-Management Meetings, whose members are environmental promotion officers from business units and Group companies, and Sustainability Promotion Meetings are working together. Global and Regional Environmental Meetings are also held regularly, allowing environmental initiative officers from regional headquarters outside Japan to share common directions and promote environmental initiatives.

The CSR and Environmental Strategy Division at Hitachi, Ltd., which played a leading role in CSR management and activities across the entire Hitachi Group, was enhanced and renamed the Sustainability Promotion Division in April 2018 in response to growing awareness and importance of sustainability in management and business. The new division is responsible for holding regular dialogue with stakeholders in each region in cooperation with regional headquarters. Through such dialogue, we endeavor to grasp global social issues promptly, extensively, and deeply, incorporating them into the issues our management deals with. At the same time, this dialogue lets us safeguard our corporate responsibility in a global society and make continued efforts to improve as we strive to achieve sustainable management and a sustainable society.

Sustainability Strategy Promotion Structure

Global CSR Meetings Members: CSR officers at regional headquarters and Hitachi Ltd. global sites Key roles: Report and discuss Hitachi, Ltd. sustainability strategy and activities, report and discuss CSR activities at regional headquarters outside Japan Global Environmental Meetings Members: Environmental officers at regional headquarters and Hitachi, Ltd. global sites Key roles: Report and discuss Hitachi, Ltd. environmental strategy and activities, report and discuss environmental activities at regional headquarters outside Japan Sustainability Promotion Meetings Members: Business promotion division heads at BUs and key Group companies Key roles: Discuss and implement specific measures for sustainability strategy CSR Corporate Meetings Members: General managers in corporate planning, human capital, legal, procurement, quality control, and other corporate divisions Key roles: Discuss CSR activities of corporate divisions CSR Manager Meetings Members: CSR officers of BUs and Group companies Key roles: Report and discuss sustainability strategy and activities, introduce sustainability activities of BUs and Group companies Regional CSR Meetings Members: CSR officers at Group companies outside Japan Key roles: Report sustainability strategy and activities and discuss and share information on regional CSR initiatives Eco-Management Meetings Members: Environmental promotion division heads at BUs and key Group companies Key roles: Discuss and implement concrete measures to achieve long-term environmental targets in sustainability strategy Environmental Manager Meetings Members: Environmental strategy officers at BUs and Group companies Key roles: Promote environmental policies and develop environmental information and activities Regional Environmental Meeting Members: Regional environmental specialists at global sites Key roles: Develop environmental policies and initiatives, share information on regional environmental regulations and local environmental issues
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Executive Sustainability Committee Meetings

In fiscal 2018, the Executive Sustainability Committee held meetings in June and December.

At the December meeting, as part of our countermeasures against climate change, we discussed the expansion of our decarbonization business and introduction of the Hitachi Internal Carbon Pricing (HICP) system as specific approaches to achieving our long-term environmental targets (for CO2 reduction). We also discussed corporate measures that are the foundations of management, like human rights, CSR procurement, and the development of human capital;sustainability-related stakeholder engagement; and specific information disclosure requirements.

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