Sustainability Focus Areas
Sustainability Focus Areas
The Hitachi High-Tech Group establishes management-critical issues selected through a defined process as Sustainability Focus Areas and develops them into concrete initiatives, aiming to achieve a Harmonized Society. Furthermore, by leveraging the Power of Knowledge to identify the issues that truly warrant our approach, and advancing business development grounded in the Sustainability Focus Areas, we will maximize value on both financial and pre-financial fronts.
*1PLEDGES: A sustainability strategy undertaken across the Hitachi Group that places sustainability at the core of management strategy to deepen "Sustainable Management" for the Hitachi Group’s sustainable growth
Process for identifying Sustainability Focus Areas
In 2017, our Group identified the Sustainability Focus Areas on which we should concentrate, in order to solve social issues and remain a company needed by society. Subsequently, taking into account significant changes in the social landscape, stakeholder expectations, and global sustainability trends, in 2024 we reexamined these Focus Areas. We strive more than ever to create value for society and enhance corporate value, with the aim of deepening "Sustainable Management" that places sustainability at the core of our management strategy.
STEP 1: Listing sustainability issues
Based on the business environment and social conditions related to sustainability, we referred to the Hitachi Group’s common list of sustainability topics, which was prepared considering international sustainability standards including ESRS (European Sustainability Reporting Standards) and SASB (Sustainability Accounting Standards Board).
STEP 2: Value chain mapping
We identify stakeholders involved in the value chain (upstream/Hitachi High-Tech/downstream), and natural capital dependent on the value chain by business segment.
STEP 3: Analysis and evaluation of business risks/opportunities and social impact (IRO)
For sustainability topics, conduct analysis and evaluation of business risks/opportunities and social impact, taking into account the characteristics of each business and the value chain. Based on the analysis and evaluation results by business divisions, we calculated business risk/opportunity and social impact scores for each topic and visualized the IRO areas that the Hitachi High-Tech Group should prioritize.
Approach to the IRO areas the Hitachi Group should address
Approach to IRO analysis/evaluation standards
STEP 4: Preparing proposals for Sustainability Focus Areas
We organized the sustainability topics with large impacts in terms of business and social impact, as well as the areas to which we particularly wish to contribute through our business, and prepared a draft of the Sustainability Focus Areas.
STEP 5: Determining Sustainability Focus Areas
We presented the draft Sustainability Focus Areas to the Sustainability Promotion Committee and finalized them.
Basic ideas
Contributing to a Sustainable Global Environment
Corporate management in harmony with the global environment plays an important role in the sustainable development of society and companies.
The Hitachi High-Tech Group seeks to reduce resource and energy consumption and environmental impacts associated with business activities through advanced technologies, and aims to achieve decarbonization, circular economy, and nature positive by providing environmentally conscious products and services and through initiatives across the entire value chain.
Contributing to Healthy, Safe, Secure Lives
“Healthy, safe and secure lives” is a common desire for all people. Our Group will contribute to a future in which people can continue to lead healthy, enriched lives by pursuing automation integrated with digital technologies and beam/analysis, providing healthcare services tailored to individuals, developing infrastructure for the digital society, and ensuring safe and secure lives.
Contributing to the Sustained Development of Science and Industry
To develop science and industry, advanced technology that supports them is essential. Our Group supports the advancement of cutting-edge technologies centered on semiconductors through our observation, measurement, and analysis technical capabilities and products that generate data as the source for solving issues, as well as through deep co-creation relationships with partners. We also aim to contribute to improving productivity and quality in research and development and on production floors, and we work to solve challenges and strengthen the industrial supply chain in collaboration with procurement partners. To advance future talent, we deploy social contribution activities globally that leverage our own products and technologies, contributing to the sustainable development of science and industry.
Establishing a Sound Management Foundation
Establishing a sound management foundation is essential for the sustainable growth of a company. Our Group will strengthen governance and strive to sophisticate risk management and respect for human rights throughout the value chain to enhance corporate value over the long term. In addition, to accelerate our business, we will utilize new technologies and digital tools in our operations while pursuing innovation in our proprietary technologies and the expansion of ideas that serve as the source of innovation.
We will remain a company that is trusted and needed by society and that has a positive impact on society.
Developing and Utilizing Diverse Human Resources
It will be crucial to continuously provide creative and innovative values to customers and society in order to succeed against competitions in the global market while realizing sustainable growth. Our Group regards the talent that delivers our value as one of our most important management resources, and we are committed to fostering a culture that respects diversity and to building systems and environments that enable every employee to fully achieve their potential. We also aim to develop transformative talent capable of generating continuous innovation.
Governance
Hitachi High-Tech Group positions sustainability at the core of its corporate management and has established a governance framework. The Board of Directors oversees material matters related to climate change and social issues and reflects them in management strategy. In addition, we have established a Sustainability Promotion Committee, which oversees company-wide initiatives and makes decisions that underpin sustainable growth.
Strategy
Our Group integrates sustainability into its business strategy. We identify environmental and social risks and opportunities and, through strong products generated by “Front” and “Technology” and the use of data, create value and contribute to achieving a Harmonized Society in which the environment, well-being, and economic growth are in balance.
Business Risks / Opportunities and social impact
| Sustainability Focus Areas |
Themes | Risks / Opportunities / Impact | Time horizon | Value chain | |
|---|---|---|---|---|---|
| Contributing to a Sustainable Global Environment |
Decarbonization | Risks |
Risk of deteriorating earnings due to strengthened climate-related regulations (policy and legal regulations) If regulatory tightening progresses, such as the introduction of carbon pricing (e.g., carbon taxes) in various countries, business costs may increase. |
Short to long term | Own operation |
| Risks |
Risk of lost business opportunities for products with insufficient climate action While we strive to provide products/services that take climate change mitigation into account, if we fail to meet market requirements, there is a risk our presence will decline. |
Short to long term | Downstream | ||
| Opportunities | Business opportunities from products and solutions that contribute to climate change mitigation and adaptation Business opportunities from products and solutions that contribute to climate change mitigation and adaptation By expanding the provision of eco-design products that contribute to climate change mitigation and adaptation and by rolling out related services, we expect to create new business opportunities. |
Short to long term | Own operation, Downstream | ||
| Impact (Positive) | Contribute to society-wide climate change mitigation and adaptation Through co-creation with procurement partners and customers, we will help improve work efficiency across the value chain—R&D, manufacturing, product use, and disposal—and reduce various environmental impacts, thereby advancing climate change mitigation and contributing to achieving a sustainable global environment. |
Short term | Downstream | ||
| Circular economy |
Risks | Risk of lost business opportunities if efforts for products/solutions that consider the environment and life cycle are insufficient We are working to achieve CO2 emissions-reduction and promotion of the 3Rs through the eco-design of our products; however, if we fail to meet market requirements, there is a possibility of lost business opportunities. |
Short to long term | Own operation | |
| Impact (Positive) | Creating social value for low-carbon, resource-circulation-oriented products through eco-design By leveraging product eco-design to bring to market ahead of competitors products with lower CO2 emissions and CFP, as well as products that require fewer input resources, we help raise awareness of decarbonization and resource circulation among customers and society at large. |
Short term | Own operation | ||
| Nature positive |
Risks | Operational risks in the absence of a water resource strategy We are working to improve water-use intensity, address water risks, and identify and address water risks in the supply chain; without these efforts, we might be unable to cope with anticipated future cost increases and risks to continued operations. |
Short to long term | Own operation | |
| Risks | Risks in the absence of initiatives for pollution prevention At our company, through initiatives such as reducing the landfill rate of waste and reducing the amount of valuable materials generated, we work to prevent pollution arising in manufacturing processes; without these efforts, there is a risk of penalties due to violations of legal requirements such as environmental laws. |
Short to long term | Own operation | ||
| Developing and Utilizing Diverse Human Resources |
Talent acquisition and development Individual leadership |
Opportunities | Expansion of business opportunities through appropriate talent development and recruitment Expansion of business opportunities through appropriate talent development and recruitment By appropriately developing and securing talent in line with our business strategy, we may achieve business growth through the creation of innovation and business opportunities, the development of products and services, increased production volumes, and more. |
Short term | Downstream |
| Employee engagement Fostering culture |
Opportunities | Expansion of business opportunities through improved employee engagement Higher employee engagement can lead to improved productivity and, through a stronger corporate brand, further talent acquisition, thereby potentially driving business growth. |
Short term | Own operation | |
| Opportunities | Achieving fair treatment of talent and business growth We emphasize fair treatment and ensure equity and transparency in our work environment. These efforts can increase employee retention and engagement, strengthen organizational branding, and support talent acquisition. |
Short term | Own operation | ||
| Inclusive workplaces and growth opportunities | Opportunities | Expanding business opportunities by leveraging diverse perspectives By fully leveraging the diverse backgrounds, perspectives, and expertise of a diverse workforce, we can foster innovation driven by fresh ideas and potentially drive business growth by capturing new business opportunities. |
Short term | Own operation | |
| Establishing a Sound Management Foundation |
Corporate ethics and compliance | Risks | Decline in reputation and deterioration of earnings due to insufficient enforcement of corporate ethics There are risks of a decline in reputation—such as loss of stakeholder trust—arising from behavior that deviates from international norms and ethics, including bribery and corruption and violations of competition law; risks of deteriorating earnings due to lawsuits and fines; and risks of lost business opportunities such as exclusion from consideration by business partners. |
Short to medium term | Own operation |
| Occupational safety and health | Risks | Financial burdens and decline in public trust due to inadequate safety management If occupational accidents occur because safety management for employees and contractors is not rigorously enforced, it may lead to financial burdens for the company due to reduced productivity and lost business opportunities, as well as a decline in public trust. |
Short term | Own operation | |
| Human rights | Risks | Decline in reputation and loss of business opportunities due to insufficient respect for human rights If human rights issues—including labor issues and harassment in the value chain—arise within our company, procurement partners, or business partners, there are risks such as procurement risks including supply chain disruptions, risks of lawsuits and fines, a decline in reputation, and loss of business opportunities. |
Short term | Upstream | |
| Sustainable procurement | Risks | Reputational and supply risks due to inadequate supply chain management If we source from procurement partners that do not consider human rights, the environment, or compliance, and fail to conduct appropriate investigations and take action, there is a possibility of a decline in reputation and impediments to stable procurement. |
Short term | Upstream | |
| Quality and product safety | Risks | Risk of deteriorating earnings due to the quality and safety of product solutions If quality or product safety issues arise, there are risks such as costs associated with remediation, a decline in reputation, and loss of business opportunities. |
Medium term | Own operation | |
Risk management
Our group identifies and evaluates risks and opportunities that have financial impacts, as well as impacts on society, arising from sustainability topics. By reviewing the evaluation results once a year, we reflect changes in the business environment and advance both risk mitigation and opportunity creation. Through this process, we maximize our positive impact on the environment and society and achieve sustainable growth.
Metrics and targets
To promote and monitor our efforts for the Sustainability Focus Areas, we set targets (focused initiatives) related to each focus area.
*1 PLEDGES: A sustainability strategy undertaken across the Hitachi Group that places sustainability at the core of management strategy to deepen "Sustainable Management" for the Hitachi Group’s sustainable growth