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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. Based on the long-term environmental targets which are stated in Hitachi Environmental Innovation 2050 shared by the entire Hitachi Group and Hitachi High-Tech’s Environmental Action Plan, we seek to lower our environmental impact by reducing CO2 emissions, waste generation, and other such means, to strengthen our legislative management and management of chemical substances, to implement eco-design and lifecycle assessment, and to protect 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 decarbonized 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 are also seeing growing demand from the investment industry and from stakeholders 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 decarbonized 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.
At the presentation on the progress of the 2021 Mid-Term Management Plan held at the end of May 2020, Hitachi, Ltd., declared its commitment to "FY2030 Carbon Neutrality" to support the acceleration of Hitachi Environmental Innovation 2050. The Hitachi High-Tech Group will proceed with measures to bring forward the target years for achieving objectives even as we continue with our current activities.
We will engage, as well, in measures for realizing a recycling-oriented society on the basis of the effective utilization of water and resources, and for realizing a society in harmony with nature that is oriented toward minimizing the negative impact of emissions of chemical substances and maximizing the positive impact from ecosystem conservation and other such activities.
We have been promoting the identification of climate change risks and opportunities, together with measures to address them, based on climate scenarios under examination since FY2018. We will continue these measures while also actively promoting specific measures for risk management and management strategy to address climate-related risks in particular. Going forward, we will actively disclose the climate-related information obtained through these measures, in accordance with the recommendations by TCFD. In engaging in disclosure as a member of the Hitachi Group, which supported the recommendations by TCFD, we will also coordinate with Hitachi, Ltd., our parent company, in our efforts to achieve substantial disclosure.