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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 introduced environmental accounting starting in 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 in the present fiscal year, our environmental conservation expenses rose by ¥292 million (about 8.8% year on year). The main factors in this rise in environmental conservation expenses in the area of management activity costs included the increase in environment-related personnel, the rise in education expenses, and so on. In the area of R&D and design costs, the main factors were the increases in design development expenses to support European F gas regulations, increases in development expenses for performance upgrades to existing equipment and for new products, and so on.
There were also increases in environmental conservation costs, and these are contributing to the heightened effectiveness of environmental conservation. The increases occurred due to promotion of activities for achieving a low-carbon society, realizing a recycling-oriented society, and realizing a society in harmony with nature. These are based on the long-term environmental targets of Hitachi, Ltd., in Hitachi Environmental Innovation 2050 and on the Hitachi High-Tech Group Materiality of "Contributing to a sustainable global environment." The effect of reduction in electric power use per investment in FY2018 increased by a factor of 4.4 year on year.

  • * 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 (Hitachi High-Tech Fielding Corporation)
  2. Period covered:
    April 1, 2018 - March 31, 2019
  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 FY2017 FY2018 Increase/
Decrease
Notes
1. Business area costs
Cost of minimizing the environmental burden arising from business activities in each business area
827 828 1 Decrease is desirable due to contribution to environmental burden
Breakdown Pollution prevention costs
Cost of preventing pollution, including air, water, and soil pollution
219 124 ▲95
Environmental conservation costs
Costs associated with the prevention of global warming and energy conservation
403 508 105
Resource recycling costs
Costs associated with resource conservation and waste reduction and recycling
204 197 ▲7
2. Upstream and downstream costs
Cost of minimizing the upstream/downstream environmental burden arising from business activities
16 18 2
3. Administration costs
Cost of management activities focused on environmental conservation
573 704 131 Increase is desirable due to contribution to environmental initiatives
4. R&D costs
Cost of R&D activities
1,860 2,008 148
5. Social activity costs
Cost of social projects
28 34 6
6. Other
Environmental remediation costs
0 3 3
Total expenses of environmental conservation (1-6) 3,303 3,594 291  
All environmental conservation costs - environmental conservation effects (economic effects) 3,220 3,533 313  

* There were no environmental fines or penalties during the fiscal year.

Unit: ¥1 million/year

Environmental Conservation Benefit

Environmental Conservation Benefit
Item Conservation Benefit (FY2017) Conservation Benefit (FY2018) Key Details
Economic benefit Net earnings effect 49 30 Reduced purchase price for scrap (mainly metal) material generated in manufacturing processes
Cost reduction effect 34 31  
Total 83 62  
Material benefit Reduction in electricity usage 107 MWh/year 423 MWh/year Increase in replacements of air-conditioning equipment, etc., by domestic Group manufacturing companies
Reduction in the volume of waste sent for final disposal 1.6 t 0 t  

Unit: ¥1 million/year

Environmental Investment Costs
Classification FY2017 FY2018 Increase/Decrease Notes
Total environmental investment 747 672 ▲75  

Unit: ¥1 million/year

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

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