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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 ¥479 million (about 17% year on year). The primary factor behind this rise in environmental conservation expenses was active R&D investment centered on growth fields declared in the Medium-Term Management Strategy of the Hitachi High-Tech Group.
In FY2017, our environmental conservation expenses were ¥3,303 million, and we made ¥747 million in environmental investment.
Compared with FY2016, environmental conservation expenses increased by ¥479 million and environmental investment rose by ¥146 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
  2. Period covered:
    April 1, 2017 - March 31, 2018
  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 FY2016 FY2017 Increase/
Decrease
Notes
1. Business area costs
Cost of minimizing the environmental burden arising from business activities in each business area
665 827 162 Decrease is desirable due to contribution to environmental burden
Breakdown Pollution prevention costs
Cost of preventing pollution, including air, water, and soil pollution
215 219 4
Environmental conservation costs
Costs associated with the prevention of global warming and energy conservation
347 403 56
Resource recycling costs
Costs associated with resource conservation and waste reduction and recycling
103 204 101
2. Upstream and downstream costs
Cost of minimizing the upstream/downstream environmental burden arising from business activities
25 16 ▲9
3. Administration costs
Cost of management activities focused on environmental conservation
635 573 ▲63 Increase is desirable due to contribution to environmental initiatives
4. R&D costs
Cost of R&D activities
1,433 1,860 426
5. Social activity costs
Cost of social projects
64 28 ▲36
6. Other
Environmental remediation costs
1 0 ▲1
Total expenses of environmental conservation (1-6) 2,824 3,303 470  
A = All environmental conservation costs - environmental conservation effects (economic effects) 2,764 3,220 456  

Unit: ¥1 million/year

Environmental Conservation Benefit

Environmental Conservation Benefit
Item Conservation benefit (FY2016) Conservation benefit (FY2017) Key details
Economic benefit Net earnings effect 27 49
Cost reduction effect 33 34  
Total 60 83  
Material benefit Reduction in electricity usage 453Mwh/year 107Mwh/year Shift to LED lighting, adoption of double roofing, etc.
Reduction in the volume of waste sent for final disposal 2.1t 1.6t  

Unit: ¥1 million/year

Environmental Investment Costs
Classification FY2016 FY2017 Increase/Decrease Notes
Total environmental investment 601 747 146  

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.

Independent Assurance

In order to enhance the credibility of this report, FY2017 figures marked with have received independent assurance from KPMG AZSA Sustainability Co., Ltd. in accordance with the International Standard on Assurance Engagements (ISAE) 3000 and ISAE 3410.

Greenhouse Gas Emissions across the Value Chain

Greenhouse Gas Emissions across the Value Chain
Scope Category Emissions (t-CO2)
FY2017 results
Scope1 *1 *4 5,482
Scope2 *2 *4 52,770
Scope3 *3 *5 1. Purchased goods and services 1,463,846
2. Capital goods 34,466
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 1,052
6. Business travel 7,760
7. Employee commuting 10,280
8. Upstream leased assets (Calculated as part of Scope 1)
9. Downstream transportation and distribution 7,272
10. Processing of sold products (Exempt)
11. Use of sold products 3,553,090
12. Disposal of sold products 1,017
13. Downstream leased assets (Included in No. 11)
14. Franchises (Exempt)
15. Investments (Exempt)
*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 and heat 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 two overseas subsidiaries)

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.