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Basic Approach to Environmental Management

Basic Approach (Environmental Management)

Corporate management that is in harmony with the global environment plays an important role in achieving sustainable progress for business and society. Limiting the resource and energy consumption as well as environmental burden associated with business activities throughout the lifecycles of our products, the Hitachi High-Tech Group not only reduces the environmental burden in our business area but also engages in green procurement and provides eco-friendly products and services. We engage in sustainable consumption and manufacturing through these and other such efforts. We are also pursuing the realization of a decarbonized society, a resource efficient society, and a society harmonized with nature to achieve Hitachi Environmental Innovation 2050, the shared long-term environmental targets of the Hitachi Group, and to address the areas of materiality of the Hitachi High-Tech Group. We will take various action to reduce our environmental impact including CO2 emissions and waste generation, strengthen regulatory management and management of chemical substances, implement eco-design and lifecycle assessment, and protect biodiversity in coordination with operation of ISO 14001 environmental management systems.

Hitachi High-Tech's Targeted Direction

Our Group takes the view that it is thanks to the global environment that a sound society and business are even possible. Therefore we consider the resolution of environmental problems to be of the utmost importance, and we also place importance on developing business for the purpose of "solving social problems." To this end, our Group has established "Contributing to a sustainable global environment" as a key component of the Materiality (key issues) that was formulated in May 2018.
We are focusing on the impact from climate change as a global environmental challenge, and promoting activities linked to our business processes that give top priority to reducing greenhouse gas emissions.
Restricting emissions of CO2, the principal greenhouse gas, involves reducing energy usage, but any expansion in business scale tends to increase emissions. We are addressing this situation by promoting the switch to decarbonized options (such as renewable energy) for the electric power used at each of our sites, by production process reforms, and by capital investment for facility rationalization in order to improve energy efficiency. We are also targeting opportunities to expand our business by supplying eco-friendly products based on new product development processes built around the principles of eco-design and life cycle assessment. This contributes to reduced CO2 emissions through the value chain by helping customers to cut energy consumption at the product usage stage and so forth.
In 2020, Hitachi, Ltd. declared Hitachi Carbon Neutrality 2030 to help accelerate achievement of the Hitachi Environmental Innovation 2050 goals. The Hitachi High-Tech Group will proceed with its existing activities, aiming to achieve carbon neutrality by FY2027.
We will engage, as well, in measures for realizing a resource efficient society on the basis of the effective utilization of water and resources, and for realizing a harmonized society with nature that is oriented toward minimizing the negative impact of emissions of chemical substances and maximizing the positive impact from biodiversity protection and other such activities.

Information Disclosure Based on TCFD Recommendations*

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. The Study Group conducted scenario analysis (identification of specific climate change risks and opportunities, consideration of measures to address them, etc.) for each of the Hitachi High-Tech Group's businesses. We will continue actively promoting specific initiatives for management strategy and risk management addressing climate-related risks, in particular.
We will disclose climate-related information obtained from these efforts in accordance with the TCFD recommendations. 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.

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