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Hitachi

Corporate InformationSustainability

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 the realization of a sustainable world as a global leader of our Social Innovation Business. In working toward realization of this goal, Hitachi is focusing efforts on the three key areas of Environment, Resilience, and Security & Safety to contribute to 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 through collaborative creation using the knowledge in our business areas and our partners around the world and by providing Lumada, a solution that accelerates digital innovation as a cyber-physical system that allows the cyber and physical spaces to interact.
We continue to further merge sustainability and business to contribute to the resolution of social issues through initiatives like Society 5.0 and Sustainable Development Goals (SDGs).

Hitachi's Business Vision

Improve Quality of Life Add value for customers Social value Environmental value Economic value Resolve social and management issues by forcusing on three key areas Environment Resilience Security & Safety Provide OT IT Products as a Package Lumada

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 to sustainability, shares progress and results, and finds ways to connect these to further improvements and new initiatives.
Sustainability Promotion Meetings holds twice a year that 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 for advancing 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, and Australia, as well as environmental officers in the United States, 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 together with Sustainability Promotion Meetings. Global and Regional Environmental Meetings are also held regularly, allowing environmental initiative officers from regional headquarters outside Japan to share common practices and promote 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 reporting and deliberations by the Executive Sustainability Committee on progress being made toward these efforts. We have worked with business units and key Group companies to strengthen our structure to promote human rights and diversity initiatives.
The Sustainability Promotion Division holds regular dialogue 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 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.

As a company that maintains committees, including a Nominating Committee, Hitachi has an Audit Committee that conducts business auditing. The committee is made up of directors selected as Audit Committee members. Yearly reports concerning important matters related to sustainability are made by executive officers in charge, and feedback from the Audit Committee is put to advantageous use in the work of promoting sustainability.

Fiscal 2020 Executive Sustainability Committee Agenda Items

Term Agenda Items
April 2020
  • Hitachi Environmental Innovation 2050
    - 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
  • Reporting and structural enhancements related to the status of plans for achieving Hitachi Carbon Neutrality 2030
  • Approaches regarding goals for 2030 at the stage of product and service utilization

The Sustainability Strategy Promotion Structure

Chart of The Sustainability Strategy Promotion Structure

Bolstering the Environmental Business Promotion Structure

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

Identifying Priority Initiatives as Strategic Focus Areas

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 the degree of impact for Hitachi and the degree of interest and importance for all our stakeholders in order to make society and Hitachi’s management sustainable. We have identified particularly high-priority initiatives among these as Strategic Focus Areas.

Strategic Focus Area

Chart of Strategic Focus Area

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

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 appropriate compensation for their duties.

Achievements in and after Fiscal 2020

In May 2020, we declared a target: to achieve carbon neutrality in our business sites (factories and offices) 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 the president and executive officers.

Key ESG-Related KPIs

✓ 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 Achievements in FY 2020 Progress made toward the goal and achievements in made Target
Environment Business Sites (Factories and Offices) Reduction rate of CO2 emissions (base: FY 2010) 39% FY 2021 20% or higher
FY 2030 100%
(carbon neutrality)
FY 2050 (Maintain 100%)
Reduction rate in water use per unit
(Hitachi Group) (base: FY 2010)
24% FY 2021 26% or higher
FY2050 50%
Reduction rate in waste and valuables generation per unit
(Hitachi Group) [Base: FY 2010]
14% FY 2021 12% or higher
FY 2050 50%
Society Digital talent (Hitachi Group) Approx. 35,000 people FY 2021 37,000 people
Number of Data scientists (Hitachi Group) Approx. 3,000 people
(Achieved ahead of schedule)
FY 2021 3,000 people
Number of Top-class AI talent (Hitachi Group) 356 people
(Achieved ahead of schedule)
FY 2021 350 people
Ratio of female executives and corporate officers (Hitachi, Ltd.) 10.1%*1
[10%]
FY 2024 15%*1
FY 2030 30%*1
Ratio of non-Japanese executives and corporate officers (Hitachi, Ltd.) 11.6%*1
[10%]
FY 2024 15%*1
FY 2030 30%*1
Number of female managers in Japan (Hitachi, Ltd.) 800 people*2
[800 people]
Fatal accidents (Hitachi Group) 3 cases 2021 0
Fatal accidents (Hitachi, Ltd.) 0 cases 2021 0
Lost time accidents (Hitachi Group) 314 cases 2021 Halve the number compared to 2018(253 cases)
Lost time accidents (Hitachi, Ltd.) 4 cases 2021 Halve the number compared to 2018(3 cases)
*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

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