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 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 a future that balances protection of the planet and people’s individual wellbeing.
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 is monitoring measures as well as discussing the progress, and new initiatives for each materiality at the Senior Executive Committee and the Board of Directors.
Materiality | Our aspirations |
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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. |
Materiality | Sub-material topics Targets/KPIs | FY2022 Progress | |
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Environment Contributing to decarbonization and resource circulation |
Decarbonization |
Carbon neutrality through the value chain
Targets/KPIs
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Contributing to CO2 reduction through business
Target/KPI
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Resource circulation |
Transition to a circular economy
Targets/KPIs
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Effective use of water
Target/KPI
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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 Business Case Contribute to stable energy supply through substation management to approx. 1.9 billion people*4 |
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Safety & Security Contributing to safe and secure society-building |
Safe and secure urban environments | Safe and comfortable transportation Business Case Contributed to a total of 15 billion people annually through railway services*4 |
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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 Business Case Blood tests and other physical exams: 20 billion tests/year*4 |
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Build a trustful relationship with others
Target/KPI
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Employee happiness |
More flexible working styles to increase engagement
Target/KPI
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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.
Target/KPI
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Respect for human rights |
Promote human rights due diligence and strengthen monitoring of procurement partners for responsible procurement, including human rights
Targets/KPIs
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Occupational safety |
Creating a safe working environment without accidents
Target/KPI
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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
Target/KPI
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Acquiring and developing digital talent
Target/KPI
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Contribution to a diverse and equitable society |
Empower DEI of society through community relationship programs
Target/KPI
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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.
We held a stakeholder dialogue 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
We will continuously engage with diverse stakeholders and strive to enhance sustainable management.
In fiscal 2023, Hitachi amended the executive compensation system to further accelerate growth as a global company, and to further strengthen links between increases in corporate value and compensation. The revised executive compensation system is more closely linked to the Mid-term Management Plan 2024 and incorporates sustainability targets.
Specifically, sustainability evaluations that had been used as an index for individual short-term incentive compensation (STI) are now treated separately and account for a ratio of 20%.
In addition, an additional grant of shares equivalent to 10% of the standard amount of medium- to long-term incentive compensation (LTI) will be granted if the sustainability targets are achieved.
Sustainability evaluation in STI will be aligned to materiality topics including Environment, Business with Integrity and Quality of Life, each linked to sub-materiality topics targets listed below.
Going forward, Hitachi will enhance link of compensation and the growth of the company, cultivating a growth mindset and strive to achieve global growth as One Hitachi.
Materiality | Sub-material topics target |
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Environment |
[Decarbonization]
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Business with Integrity |
[Occupational safety]
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Quality of Life |
[Employee happiness]
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