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Corporate management that is in harmony with the global environment plays an important role in achieving sustainable progress for business and society. Limiting the resource and energy consumption as well as environmental burden associated with business activities throughout the lifecycles of our products, the Hitachi High-Tech Group not only reduces the environmental burden in our business area but also engages in green procurement and provides eco-friendly products and services. We engage in sustainable consumption and manufacturing through these and other such efforts. Our long-term environmental targets are stated in Hitachi Environmental Innovation 2050 and the Environmental Action Plan shared by the entire Hitachi Group, according to which we seek CO2 reduction, waste reduction, legislative management, management of chemical substances, eco-design and lifecycle assessment, and protection of biodiversity. We coordinate these and other such efforts with the ISO14001 environmental management system and promote environmental activities to fulfill our CSR as well as to work toward achieving a low-carbon society, realizing a recycling-oriented society, and realizing a society in harmony with nature.
The nations at the COP21 meeting held in December 2015 agreed to adopt a target of limiting the increase in average global temperatures compared with the pre-industrial revolution level to 2°C in the second half of this century. This Paris Agreement came into force on November 4, 2016. A report in October 2018 then stated that unless the average temperature increase was kept under 1.5°C, it would exceed the range at which the global environment carries on self-purification. It therefore became necessary to further expand worldwide warming prevention activities. In Japan, greenhouse gas emissions reduction targets have been set both for the medium term (26% reduction from FY2013 levels by FY2030) and for the long term (80% reduction by 2050).
Further, environmental goals were recognized as a shared global undertaking as embodied also in the SDGs by "Goal 13: Take urgent action to combat climate change and its impacts," which established targets to be achieved and common rules for international society in the 21st century. The Global Risks Report of the World Economic Forum has also placed climate-related risks at the top of the global risks that are highly likely to occur. This shows that efforts to address environmental problems, and climate change in particular, are recognized as common issues for the whole world. We also saw, from the investment industry, a proposed framework for disclosure of the status of corporate measures to address climate-related risks and other such non-financial information.
From a business perspective as well, it is becoming increasingly crucial for corporations in times ahead to respond appropriately to climate change and other environmental-related social priorities, while contributing also to the reduction of environmental impact in terms of their corporate business.
The Hitachi High-Tech Group takes the view that it is thanks to the global environment that a sound society and business are even possible. Therefore we consider the resolution of environmental problems to be of the utmost importance, and we also place importance on developing business for the purpose of "solving social problems." To this end, the Hitachi High-Tech Group has established "Contributing to a sustainable global environment" as a key component of the Materiality (key issues) that was formulated in May 2018.
We are focusing on the impact from climate change as a global environmental challenge, and promoting activities linked to our business processes that give top priority to reducing greenhouse gas emissions.
Restricting emissions of CO2, the principal greenhouse gas, involves reducing energy usage, but any expansion in business scale tends to increase emissions. We are addressing this situation by promoting the switch to low-carbon options (such as renewable energy) for the electric power used at each of our sites, by production process reforms, and by capital investment for facility rationalization in order to improve energy efficiency. We are also targeting opportunities to expand our business by supplying eco-friendly products based on new product development processes built around the principles of eco-design and life cycle assessment. This contributes to reduced CO2 emissions through the value chain by helping customers to cut energy consumption at the product usage stage and so forth.
We will continue with measures to identify climate change risks and opportunities according to the climate scenarios we began examining in FY2018, and will press ahead with corresponding measures. At the same time, we will promote company-wide implementation of these activities, such as by incorporating them into risk management and management strategy addressing climate-related risks in particular.
We will engage, as well, in measures for realizing a recycling-oriented society on the basis of the effective utilization of resources, and for realizing a society in harmony with nature based on activities to minimize our impact on natural capital.