Climate Change Countermeasures

Basic Approach

Hitachi High-Tech Group is promoting systematic activities to reduce energy-induced CO₂ emissions as a response to climate change. Specifically, we are making efforts to reduce CO₂ emissions throughout the value chain through ongoing efforts such as use of renewable energy, promotion of environmental investment, improvement of manufacturing processes, and environmentally conscious design, aiming at the creation of a decarbonized society.

Initiatives

Toward the Realization of a Decarbonized Society

Approximately 97% of the energy used in Hitachi High-Tech Group business activities both inside and outside Japan is electric power. In order to more efficiently reduce CO₂ emissions, we have assigned top priority to switching over to renewable energy, with the aim of achieving zero CO₂ emissions by FY2030. Going forward, we will promote this as a global activity to include CO₂ reduction at sites in other countries.

Promotion of switching to a decarbonization menu for contracted electric power at sites (Reduction of Scope 2 emissions)

Scope 2 emissions were reduced to zero by switching over to renewable energy sources for electric power and making active use of renewable energy value at the Hitachi High-Tech head office (April 2020), at Hitachi High-Tech Fine Systems (April 2020), at the Hitachi High-Tech Manufacturing & Service Corp. head office (April 2020) and No. 6 Works (May 2020), at the Hitachi High-Tech Science Fuji Oyama Works (April 2020), at Hitachi High-Tech Kyushu (February 2019), and at Hitachi High-Tech Solutions Mito Works (June 2021). Also, in March 2021, we constructed a semiconductor manufacturing equipment manufacturing site "Naka-Marine Site" in Hitachinaka City, Ibaraki Prefecture, and it uses renewable energy power and emits zero CO₂ since its completion,.
Meanwhile, five of our sites in other countries have been supplied with renewable electricity from hydroelectric power generation, and we will continue to expand the utilization of renewable energy in the future.

Promoting Reduction of Fuel Used at Sites (Scope 1 Emissions Reduction)

At the Hitachi High-Tech Group, fuel is consumed by cargo handling equipment at manufacturing sites and by commercial vehicle operations. In order to realize a decarbonized low-carbon society, we are promoting the switch to electric power for cargo handling equipment and to EV and hybrid models for company vehicles. Our aim is to achieve zero CO₂ emissions by FY2030.
Hitachi High-Tech Fine Systems Corporation and Fuji Oyama Works of Hitachi High-Tech Science Corporation used offset credits to achieve zero emission in Scope 1 in FY2020.

Status of Promotion of Carbon Neutrality

Hitachi High-Tech Corporation Head Office, Hitachi High-Tech Fine Systems Corporation, Fuji Oyama Works of Hitachi High-Tech Science Corporation, Hitachi High-Tech Kyushu Corporation, and Naka-Marine Site have achieved carbon neutrality through initiatives such as switching to renewable energy power, utilizing renewable energy values and offset credits, and using EVs in vehicles.
We continue our efforts on a global basis and aim to achieve carbon neutrality at all Hitachi High-Tech Group sites by FY2030.

Promoting Energy Conservation with Environmental Investment and Process Reforms, and Promoting the Introduction of Internal Carbon Pricing^*

Hitachi High-Tech Group established the Environmental Investment Guidelines in FY2016 to improve the ease and efficiency of environmental investment. Since the investments made in FY2017, these guidelines have contributed to the growth of environmental investment and improvement in the reduction effect in the amount of electricity consumed versus investment. In FY2020, the amount of environmental investment declined 39% versus the previous fiscal year, but the reduction effect in electricity consumption versus investment amount was 2.6 times than that of the previous year. We are shifting to investments in initiatives with high cost-effectiveness. In addition, while we are promoting the introduction of an Internal Carbon Pricing system from FY2019 to further promote environmental investment, because of progress in reducing CO₂ emissions through the use of renewable energy and other sources, we have also started to consider new KPIs from FY2020, mainly focusing on reducing energy procurement costs. As the carbon pricing has been completed, we plan to finalize the new KPIs and the investment criteria under review and start applying them to investments in FY2022 and beyond.
We are also actively working to conserve energy in conjunction with our rationalization of manufacturing processes.

• * Internal Carbon Pricing: A system in which a company places a price on its own carbon emissions in order to quantitatively clarify the impact on current and/or future business activities and to facilitate strategic decision-making, based on the premise that addressing climate change will present both costs and opportunities.

FY2020 Energy Saving Examples

At the Hitachi High-Tech Group, we have worked to introduce LED floor lighting in offices and communal areas, etc.
In addition, we are replacing transformers and air-conditioning units with highly efficient equipment, and improving manufacturing processes, at our manufacturing sites.

Energy-Saving Activities at Business Sites

In FY2020 our annual amount of CO₂ emission was 31,688 tons, against our target of 41,900 tons. This achievement was influenced by greater than planned progress in switching over to renewable energy sources for the electric power used as well continuous promotion of environmental investment and other such factors.

Based on these results, we will continue taking initiatives to reduce CO₂ emissions and to save energy by installing equipment and facilities of an energy-saving type, by efficiently using energy, and by generating renewable energy.

Performance Data

Changes in Volume of CO₂ Emissions in Japan

• * Reporting boundary：Hitachi High-Tech and group companies in Japan
• * Calculation method: Conforms to the Manual for Calculation and Reporting of Greenhouse Gas Emissions (Ministry of the Environment and Ministry of Economy, Trade and Industry). CO₂ emissions volume calculated using conversion factors adjusted for power options provided by electric power companies and retail power suppliers.

Changes in CO₂ Emissions per Unit of Revenue in Japan

• * Reporting boundary: Manufacturing sites of Hitachi High-Tech Corporation Head Office and group manufacturing companies in Japan
• * Calculation method: Conforms to the Manual for Calculation and Reporting of Greenhouse Gas Emissions(Ministry of the Environment and Ministry of Economy, Trade and Industry) CO₂ emissions volume calculated using conversion factors adjusted for power options provided by electric power companies and retail power suppliers.

Changes in Energy Usage (Crude Oil Equivalent)

• * Reporting boundary: All Hitachi High-Tech Group companies (The FY2018 figure includes Hitachi High-Tech Analytical Science and excludes Hitachi High-Tech Ireland, Hitachi High-Tech Israel, Hitachi High-Tech Russia, Hitachi High-Tech Kuwait Office
• * Calculation method: Conforms to the stipulations of the Act on the Rational Use of Energy

Changes in Energy Usage Improvement Rate per Unit of Sales in Japan (Crude Oil Equivalent)

• * Reporting boundary: Hitachi High-Tech Group companies in Japan
• * Calculation method: Conforms to the stipulations of the Act on the Rational Use of Energy
• * Energy usage improvement rate per unit: The rate of improvement over the base FY 2010 {(1 - base units of the relevant site for the relevant fiscal year/base units of the relevant site for the base year) x environmental impact at the relevant site for the base year calculated by group companies in Japan}

Changes in Volume of CO₂ Emissions Outside Japan

• * Reporting boundary: Overseas subsidiaries (excluding Hitachi High-Tech Russia, Hitachi High-Tech Kuwait Office, Hitachi High-Tech Ireland, Hitachi High-Tech Israel)
• * Calculation method: Conforms to the Manual for Calculation and Reporting of Greenhouse Gas Emissions (Ministry of the Environment and Ministry of Economy, Trade and Industry). However, the FY2020 CO₂ emission factor for electric power is based on the value published by the IEA (International Energy Agency) in 2020 for 2018. For FY2019, values published by the IEA in 2019 for 2017 were used; for FY2018, values published by the IEA in FY2017 for 2015 were used; for FY2017 and earlier, 2005 values published by the IEA in 2010 were used. (If IEA factors for 2005 were used for the calculation of the FY2018 figure, CO₂ emissions would have been 10,349 tons.)
• * CO₂ emissions for FY2019 were revised from 7,918 to 8,303 due to calculation errors.

Supporting the Recommendations by TCFD^*

We have been instituting measures to support TCFD since we began studies of it in FY2018. We established a working group (the TCFD Study Group) under the Sustainability Promotion Committee in November 2020, and we will continue promoting the identification of specific climate change risks and opportunities, the study of measures to address them, and related activities, in every segment of the Hitachi High-Tech Group by September 2021. We will continue actively promoting specific initiatives for management strategy and risk management addressing climate-related risks, in particular.
In FY2021, we will 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.

• * The Task Force on Climate-related Financial Disclosures (TCFD) recommended that corporations and other enterprises disclose information relating to climate change risks, opportunities, and so on.

CDP^*1 Evaluation

We have responded to CDP climate change questionnaires at the Hitachi High-Tech Group. In FY2021, we received a score of " Leadership: A-" for “best practices in the managing environmental issues” in our businesses. In addition, we were selected as Supplier Engagement Leader, the highest rating in the Supplier Engagement Rating (SER) assessment performed by CDP. This is the first time we have been selected for our actions to reduce greenhouse gas emissions across the entire Hitachi High-Tech supply chain.
The Hitachi High-Tech Group will work toward improvements in corporate value, while making effective efforts to address climate change risks.

• *1 CDP: A UK-based independent non-profit organization. It receives requests from investors around the world, and investigates, evaluates, and discloses information relating to companies’ effects on climate change, water security, and forests.

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