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Hitachi

Hitachi High-Technologies GLOBAL

The Hitachi High-Tech Group strives to reduce the burden that we place on the environment, controlling costs associated with efforts to reduce the environmental burden. We are also measuring the quantity of resource inputs into our business activities and the scale of emissions that impose a burden on the environment.

Environmental Accounting

The Hitachi High-Tech Group has introduced environmental accounting since FY2001 as a tool for managing our environmental conservation activities. We confirm our cost-effectiveness with regard to environmental conservation and conduct evaluations of the Group's engagement in environmental initiatives.

As the result of our activities this year, our environmental conservation expenses rose by ¥391 million (about 16%). The primary factor behind this rise in environmental conservation expenses were R&D costs, as the Hitachi High-Tech Group introduced a new environmentally conscious design system for the design of our own products.

In FY2016, our environmental conservation expenses were ¥2,801 million, and we invested ¥601 million in environmental protection.

Compared with FY2015, environmental conservation expenses increased by ¥391 million and environmental investment rose by ¥68 million.

  • * The charts below have been formulated in compliance with the Ministry of the Environment’s Environmental Accounting Guidebook II.
  • * Calculation Standards
  1. Scope of calculation:
    Hitachi High-Technologies (head office, branches in Japan, manufacturing divisions in Japan) and manufacturing Group companies in Japan, sales-focused Group companies (some), and a service-focused Group company (HFD)
  2. Period covered:
    April 1, 2016 - March 31, 2017
  3. Costs:
    Includes labor costs, R&D costs, depreciation costs, etc.
  4. Effects:
    Net earnings effect: Earnings from operations relating to environmental conservation
    Cost reduction effect: Sum by which costs are reduced as a result of measures to reduce the environmental burden (does not include expected effects)

Environmental Conservation Expenses

Environmental Conservation Expenses
Classification FY2015 FY2016 Increase/
Decrease
Notes
1. Business area costs
Cost of minimizing the environmental burden arising from business activities in each business area
738 665 ▲73 Decrease is desirable due to contribution to environmental burden
Breakdown Pollution prevention costs
Cost of preventing pollution, including air, water, and soil pollution
189 215 26
Environmental conservation costs
Costs associated with the prevention of global warming and energy conservation
373 347 ▲26
Resource recycling costs
Costs associated with resource conservation and waste reduction and recycling
176 103 ▲73
2. Upstream/downstream costs
Cost of minimizing the upstream/downstream environmental burden arising from business activities
13 25 12
3. Administration costs
Cost of management activities focused on environmental conservation
650 635 ▲15 Increase is desirable due to contribution to environmental initiatives
4. R&D costs
Cost of R&D activities
986 1,433 447
5. Social activity costs
Cost of social projects
23 64 41
6. Other
Environmental remediation costs
1 1 0
Total expenses of environmental conservation (1–6) 2,411 2,824 413  
A = All environmental conservation costs - environmental conservation effects (economic effects) 2,360 2,764 -  

Unit: ¥1 million/year

Environmental Conservation Benefit

FY2016 Environmental Conservation Benefit
Item Conservation benefit (FY2015) Conservation benefit (FY2016) Key details
Economic benefit Net earnings effect 28 27
Cost reduction effect 23 33  
Total 51 60  
Material benefit Reduction in electricity usage 1,592Mwh/year 453Mwh/year LED lighting, double roofing, replacement of air conditioning
Reduction in the volume of waste sent for final disposal 6.4t/year 2.1t/year  

Unit: ¥1 million/year

Environmental Investment Costs
Classification FY2015 FY2016 Increase/Decrease Notes
Total environmental investment 533 601 68  

Unit: ¥1 million/year

Breakdown of Environment-related Investment by Purpose (Year-on-Year Change)

Greenhouse Gas

The Hitachi High-Tech Group is identifying our greenhouse gas emissions throughout the value chain and strives to reduce emissions.

Third-Party Assurance

In order to enhance the credibility of this report, FY2016 figures marked with have received third-party assurance from KPMG AZSA Sustainability Co., Ltd. in accordance with the International Standard on Assurance Engagements (ISAE) 3000, ISAE 3410, and the Practical Guidelines for Assurance of Sustainability Information from the Japanese Association of Assurance Organizations for Sustainability Information.

Greenhouse Gas Emissions across the Value Chain
Scope Category Emissions (t-CO2)
Scope1 *1*4 5,339
Scope2 *2*4 53,240
Scope3 *3*5 1. Purchased goods and services 1,523,335
2. Capital goods 94,970
3. Fuel and energy not included in Scopes 1 and 2 (Exempt)
4. Upstream transportation and distribution (Under consideration)
5. Waste generated by business activities 1,332
6. Business travel 7,972
7. Employee commuting 12,397
8. Upstream leased assets (Calculated as part of Scope 1)
9. Downstream transportation and distribution 6,958
10. Processing of sold products (Exempt)
11. Use of sold products 3,655,605
12. Disposal of sold products 8,844
13. Downstream leased assets (Included in No. 11)
14. Franchises (Exempt)
15. Investments (Exempt)
Total 5,369,992
*1
Direct emissions of greenhouse gases from the organization itself. Includes greenhouse gases from non-energy sources.
*2
Indirect emissions due to the use of electricity, heat, and steam supplied by other companies
*3
Indirect emissions not included in Scopes 1 and 2
*4
Reporting boundary for Scopes 1 and 2 emissions: Hitachi High-Tech Group companies (excluding three overseas subsidiaries)
*5
Reporting boundary for Scope 3 emissions: Hitachi High-Technologies, Hitachi High-Tech Group Domestic Companies, Hitachi Instrument (Suzhou), Ltd., Hitachi Instruments (Dalian) Co., Ltd.

Materials Balance

The following information shows the quantity of resource inputs into the business activities of the Hitachi High-Tech Group and the scale of emissions that impose a burden on the environment.

Quantity of Resource Inputs and Emissions That Impose a Burden on the Environment

  • * Reporting boundary: Hitachi High-Technologies and Hitachi High-Tech Group companies in Japan.
  • * Raw material inputs do not include components, semi-finished goods, or products purchased from external parties.