Materiality 1
Contributing to a Sustainable Global Environment

Basic Ideas and Visions

Corporate management in harmony with the global environment plays an important role in the sustainable development of society and companies. In addition to reducing resource and energy consumption as well as the environmental impact associated with business activities, the Hitachi High-Tech Group aims to achieve sustainable consumption and production through the provision of environmentally-conscious products and services as well as initiatives throughout the value chain.

Action Targets

1. Realize a decarbonized society

In order to reduce CO₂ emissions arising from energy consumption associated with business activities, we will systematically make environmental investments that have a significant impact on reducing CO₂ emissions and promote the proactive use of renewable energy. In providing products and services, we will also work to contribute through our business, such as selling LiB^*1 production equipment that will help reduce CO₂ emissions.

• ^*1 LiB: Lithium-ion Battery

Specific Actions

Draft and execute CO₂ emissions reduction

1. Environmental investments
2. Use renewable energy
3. Enhance electricity visualization monitoring function

2. Realize a recycling-oriented society

We will make efforts to effectively use water resources, conserve resources, and reduce waste in business activities. Specifically, we will work to reduce the amount of water used by using the equipment cooling water in our factories more efficiently. In addition, we will introduce environmentally conscious design (eco-design) for our products and work to reduce the resources used to manufacture our products, and thereby reduce the amount of waste generated and recycle resources.

Specific Actions

1. Reduce water consumption by using equipment cooling water more efficiently
2. Curb the volume of waste generated by using eco-design for our products

3. Realize a society in harmony with nature

In order to reduce the negative impact of business activities on natural capital, we will work to reduce the negative impact of chemical substance emissions, and aim to realize a future that enriches both people and nature. We will work on biodiversity conservation activities such as forest conservation activities that will increase the positive impact.

Specific Actions

1. Increase the positive impact such as CO₂ absorption by promoting forest conservation activities
2. Secure new activity bases for biodiversity conservation activities (Japan and overseas)

Action Plan

• ^*2 Wording has been standardized in accordance with the "Sustainability" section of the Hitachi High-Tech website.
• ^*3 Base year: FY2010

FY2020 Initiative Results

1. Realize a decarbonized society

Promote carbon neutrality by switching to renewable energy and EVs for company vehicles and using offset credits

• The Hitachi High-Tech Group has set a goal of achieving a state of zero CO₂ emissions (carbon neutrality) by FY2030, an earlier target than that set by Japanese government, and is working to achieve a decarbonized society. We are engaging in continuing investment in environmental equipment to reduce electric power usage at our manufacturing sites and of¬fices inside and outside Japan. We are also promoting the switch to decarbonized electric power (such as power from renewable energy sources, etc.) for electricity, which accounts for approximately 97% of the energy consumption involved in our business activities.
  • Switch made at four sites in Japan, and supply of power begun (four out of nine manufacturing sites)
  • Reviewing and switching at one site that had switched over in FY2019
  • A new site completed in March 2021 is using renewable energy from the start of operations
  • Based on the results to date and the outlook, we expect power supply to begin at seven of the nine manufacturing bases
  • Renewable energy from hydroelectric power is used at seven sites outside Japan
  • The Hitachi High-Tech head office, Hitachi High-Tech Fine Systems, Hitachi High-Tech Science Fuji Oyama Works, Hitachi High-Tech Kyushu, and Hitachi High-Tech Naka-Marine Site have achieved carbon neutrality through such activities as switching to renewable electricity, utilizing renewable energy value and offset credits, and switching to EV for company vehicles.
• As a result of these initiatives, FY2020 emissions were reduced from FY2019 by 4,930 t-CO₂. The Group's CO₂ emissions therefore came to 31,292 t-CO₂.
• We submitted responses to the CDP*4 climate change questionnaire and received an "A- (leadership level)^*5" evaluation in FY2020, one rank higher than the previous year.

• ^*4 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.
• ^*5 "A-1 (leadership level)": Discloses specific actions that recognize it as a leading company.

Promoting widespread adoption of electric vehicles (EVs) by providing total solutions that include lithium-ion battery (LiB) research and development, manufacturing, and quality inspection processes

• We provide total solutions that improve safety, quality, yield, and productivity for manufacturers that develop and manufacture LiBs used as storage batteries for EVs and PHVs. We will contribute to the realization of a decarbonized society by contributing to the diffusion of EVs through the expected increase in demand for LiBs and the support of next-generation batteries.

2. Realize a recycling oriented society

Reduce waste generated in manufacturing, logistics, and so on, and reduce use of water due to changes in manufacturing processes

• We have continued to reduce the amount of wood waste disposed of by changing the specifications of the reusable shipping cartons used for physical distribution of parts and products with our overseas manufacturing sites.
• We adopted environmentally conscious design (eco-design) in the development of our own products, reducing the generation of waste during the manufacture of those products to lower levels than previous models.
• As a result of our activities, our reduction in water use per unit in FY2020 was improved by 53% over the base fiscal year and our waste generation per unit improved 29% over the base fiscal year. In addition, we introduced water-related risk assessment, and the sources of water intake and discharge were investigated in more detail than before.
• These initiatives were highly evaluated in the CDP water security questionnaire, leading to an evaluation of "A- (leadership level),” an improvement on the previous fiscal year.

Providing a solution to visualize the residual performance of LiBs to promote the expansion of end-of-life battery applications

• We have developed a "high-speed battery degradation diagnosis method" that instantly evaluates the performance degradation and remaining life of LiBs used as storage batteries for EVs and PHVs, and have achieved significantly faster diagnosis compared to conventional methods. Visualizing the remaining performance of batteries will help drivers to use up their capacity to the end, reduce anxiety about EVs, and contribute to the dissemination of EVs. By accelerating the diagnosis, it is possible to lower power consumption during the process, which contributes to CO₂ reduction. We are also collaborating with recycling companies and fleet operators to explore business possibilities that will lead to the expansion of uses for used batteries, with the aim of achieving a circular economy.

3. Realize a society in harmony with nature

Forest conservation and other such activities carried out at each of our sites inside and outside Japan

• We have formulated a global concept of activities for biodiversity conservation. By repeating the process of observation, activity, measurement of changes before and after the activity, analysis and evaluation, and feedback to the next activity, we will work as a unified Group in the aim for " Striving to create a rich future for both humans and nature".
• We have been continuously implementing biodiversity conservation activities and afforestation activities with the aim of restoring ecosystems to their native state. These activities are underway in the Woodlands of Hitachi High-Tech Science, located in a natural area surrounding the R&D facility at the Hitachi High-Tech Science Fuji Oyama Works (Sunto-gun, Shizuoka Prefecture), and in the Hitachi High-Tech Yasato Forest, located on national forest lands that we have on loan in Ishioka City, Ibaraki Prefecture.
• In December, the Woodlands of Hitachi High-Tech Science received the top AAA (triple-A) rating in the Japan Habitat Evaluation and Certification Program (JHEP) renewal certification by the Ecosystem Conservation Society-Japan. This is in recognition of the efforts to conserve and restore biodiversity over the past five years since 2015, when it first obtained JHEP certification^*6.

• ^*6 JHEP certification system: A system that evaluates, ranks, and certifies the difference between the values of biodiversity in the "pre-business past" and the "post-business future" by comparing them. This is the only certification system in Japan that clearly states that a company is engaged in a business that does not reduce (no net loss) or improves (net gain) the quantity and quality of natural resources compared with before it started operations there.

Scene of tree planting in the Woodlands of Hitachi High-Tech Science

Link

• Climate Change
• Recycling of Resources
• Providing Environmentally Conscious Products
• Biodiversity Conservation Activities

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