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Materiality

Toward a Sustainable Society: Hitachi’s Materiality

Hitachi practices sustainable management, which positions sustainability as the core of its business strategy, and is working toward realizing a sustainable society through the Social Innovation Business.

In The Mid-term Management Plan 2024, we declared our new aspiration of “supporting people’s quality of life with data and technology that fosters a sustainable society.” While some of the nine planetary boundaries have already been exceeded, Hitachi is aware of each one and works to protect the planet and maintain society. Hitachi aims to solve social challenges to realize of a future that balances protection of the planet and people’s individual wellbeing.

The materiality analysis process

With a comprehensive understanding of social issues, Hitachi has identified six material topics and 15 sub-material topics based on an analysis of risks and opportunities from a sustainability perspectives as well as feedback from stakeholders.

Based on these material topics, Hitachi will monitor measures as well as discuss the progress of, and new initiatives for, each materiality at the Senior Executive Committee and the Board of Directors.

Materiality Our aspirations
Environment
Contributing to decarbonization and resource circulation
As a climate change innovator, Hitachi will contribute to the realization of a carbon neutral society with Hitachi’s superior green technologies, by providing value to customers in all business segments. We will also promote resource efficiency toward the transition to a circular economy.
Resilience
Contributing to the maintenance and rapid recovery of social infrastructure
Hitachi helps people live safely by contributing to the rapid recovery of supply chains and the maintenance of social infrastructure by providing system solutions that can respond immediately to risks, such as natural disasters, pandemics, and cyberattacks.
Safety & Security
Contributing to safe and secure society-building
Hitachi contributes to the realization of comfortable and active lifestyles for people by providing solutions in the building, mobility, and security fields that support urban development for safe and secure living.
Quality of Life
Contributing to physical and mental wellness and a prosperous life
Hitachi is harnessing our healthcare and digital technologies to help more people develop bonds and enjoy healthier, more prosperous lives. We will also continue to pursue the happiness and wellbeing of our employees, as we believe that their happiness and wellbeing is the ground on which Hitachi’s future will flourish even more fully.
Business with Integrity
Adhering to ethical standards as well as respect human rights
As a Group responsible for social infrastructure around the world, Hitachi will manage its business with honesty and integrity, trusted by society, respect human rights and provide a safe workplace. We will reflect a system of ethical and responsible business conduct, including respect for human rights, in our business activities and decision-making standards, working together with our employees, collaborative partners and communities throughout the supply chain.
Diversity, Equity and Inclusion (DEI)
Contributing to a society where everyone can shine
Hitachi has a place for everyone, welcoming differences in colleagues’ background, age, gender, sexuality, family status, disability, race, nationality, ethnicity, and religion. At Hitachi, we treat everyone fairly, recognizing differences to allow everyone to perform at their full potential.
We respect and value these and other differences because only through them we can understand our markets, create better ideas and drive innovation.

15 Sub-Material Topics and Targets

Material topics Sub-material topics Target Relevant SDGs
Environment
Contributing to decarbonization and resource circulation
Decarbonization Carbon neutrality through the value chain
  • FY2030: Achieve carbon neutrality in business sites (factories and offices)
  • FY2050: Achieve carbon neutrality through the value chain
Contributing to CO2 reduction through business
  • FY2024: 100 million metric tons/ year
Resource circulation Transition to a circular economy
  • FY2024: Full application Eco-Design for new product development
  • FY2030: Zero*2 waste to landfill*1 from manufacturing sites
Effective use of water
  • Reduction rate in water use per unit (compared to FY2010) FY2024: 24%, FY2050: 50%
Harmonize with nature Minimize impact on natural capital
Resilience
Contributing to the maintenance and rapid recovery of social infrastructure
Strengthening supply chains Build flexible supply chains capable of responding to disasters and risks
Maintaining social infrastructure Resilience and sophistication of maintenance through DX of social infrastructure
  • Contribute to stable energy supply through substation management
    Approx. 1.9 billion people*3
Safety & Security
Contributing to safe and secure society-building
Safe and secure urban environments Safe and comfortable transportation
  • A total of 15 billion people use railway services annually*3
Ensuring cyber security Secure cybersecurity for social infrastructure and business systems
Quality of Life
Contributing to physical and mental wellness and a prosperous life
Connected and prosperous society Increase healthy life expectancy and wellbeing
  • Blood tests and other physical exams: 20 billion tests/year*3
Build a trustful relationship with others
  • Users of happiness service (10 million in FY2022 → 90 million in FY2024)
Employee happiness More flexible working styles to increase engagement
  • Employee engagement score (FY2021: 65.0% → FY2024: 68.0%)
Business with Integrity
Adhering to ethical standards as well as respect human rights
Business ethics and compliance Encourage employees to apply ethical standards in day-to-day work.
  • Achieve a score of at least 60 (out of 100) in FY2022, the first year of results from Ethical Culture & Perceptions Assessment, improving it every year
Respect for human rights Promote human rights due diligence and strengthen monitoring of procurement partners for responsible procurement, including human rights
Occupational safety Creating a safe working environment without accidents
  • Zero fatal accidents
Safe and secure products and services Ensure products and services safety while putting customers first
Diversity, Equity and Inclusion (DEI)
Contributing to a society where everyone can shine
Diverse organization that fosters innovation Strengthen diversity in management
  • Ratio of female and non-Japanese executive and corporate officers (30% in FY2030)
Acquiring and developing digital talent
  • FY2021: 67,000 persons → FY2024: 98,000 persons
Contribution to a diverse and equitable society Empower DEI of society through community relationship programs
  • Support young generations in Asia through the Hitachi Young Leaders Initiative
    A total of 405 students participating (as of end of July 2022)
*1
Wherever this is compatible with local conditions and regulations
*2
Less than 0.5%
*3
FY2021 results

Note: Hitachi normally refers to its suppliers (including vendors or providers) as “procurement partners” who build business together on an equal footing

Hitachi has mapped the 15 sub-material topics in terms of importance for Hitachi and stakeholders. The level of importance to Hitachi is defined as the gap between our goals and our current initiatives.

Mapping the sub-materiality

Stakeholder dialogue about the materiality

We held a stakeholder dialogue with on the theme of materiality in Japan and Europe in fiscal 2021. We received feedback on Hitachi’s proposed materiality and measures for each materiality from disclosure experts, leading sustainability companies, European Commission, NGOs, international organizations, and institutional investors. In Europe, we divided it into a planet session and a people session, with Hitachi explaining its measures for the environment, human capital, and respecting human rights, while participants gave suggestions for new perspectives and improvements.

Principal comments from stakeholders

  • Hitachi should indicate the direction society wants Hitachi to move along or the goals that Hitachi itself has.
  • When it comes to diversity and inclusion, it would be better to include “equity” and make it “diversity, equity, and inclusion.”
  • For the circular economy, the approach shouldn’t just be to reduce materials and waste but also to think about new business models.
  • With human rights and decent work, Hitachi should go beyond conventional monitoring, audit, and other compliance approaches to engage with all aspects of supply chains through partnerships with external stakeholders.

We will continuously engage with diverse stakeholders and strive to enhance sustainable management.