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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.

Independent Assurance

In order to enhance the credibility of this report, FY2021 figures marked with image:check mark icon have received independent assurance from SOCOTEC Certification Japan Co., Ltd. in accordance with the International Standard on Assurance Engagements (ISAE) 3000 and ISO14064-3.

Initiatives

Toward the Realization of a Decarbonized Society

Approximately 97% of the energy used in our Group's business activities is electric power. In order to more efficiently reduce CO2 emissions, including at our sites outside Japan, we have assigned top priority to switching over to renewable energy, with the aim of achieving zero CO2 emissions by FY2027.

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’s site in Saitama Prefecture (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.
Six of our sites outside Japan also receive electricity from renewable energy sources, and we will work to further expand the use of renewable energy sources in the future.

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

The Hitachi High-Tech Group consumes fuel for cargo handling and drying of paints at manufacturing sites, and by commercial vehicle operations. In order to realize a decarbonized society, we are promoting the switch to electric power for cargo handling equipment and to EV for company vehicles, aiming to achieve zero CO2 emissions by FY2027.
Hitachi High-Tech’s site in Saitama Prefecture, Hitachi High-Tech Manufacturing & Service Corp. No. 6 Works, Hitachi High-Tech Science Fuji Oyama Works, and Hitachi High-Tech Solutions Mito Works used offset credits to achieve zero emissions in Scope 1 in FY2021.

Status of Promotion of Carbon Neutrality

Hitachi High-Tech Corporation Head Office, Hitachi High-Tech’s site in Saitama Prefecture, Hitachi High-Tech Manufacturing & Service Corp. No. 6 Works, Hitachi High-Tech Science Fuji Oyama Works, Hitachi High-Tech Solutions Mito Works, 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 switching to EV vehicles.
We will continue our efforts on a global basis, aiming to achieve carbon neutrality at all Hitachi High-Tech Group sites by FY2027.

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 FY2021, we introduced an Internal Carbon Pricing system (internal carbon price of 14,000 yen/t-CO2) to further promote environmental investment, and began applying the system to investments made in FY2022.
We are also actively working to save energy by streamlining our 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.

FY2021 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

Item Measure
Renewable energy Installation of solar panels on building rooftops
Air Conditioning System Improvement in air conditioner operation mode for clean rooms
(Adjustment of the control accuracy for holidays and nighttime, discrete control of cleanliness for each compartment)
Installation of controllers of the energy-saving type in air conditioner
Installation of air conditioning remote monitoring system
Installation of hybrid fans
Installation of underfloor air conditioning systems
Installation of watering system to exterior unit
Air Conditioning and Power utilization efficiency Less power loss through installation of phase advance capacitors
Installation of super-amorphous transformers
Installation of automatic power factor regulators
Reduction in current-on durations of products
Various equipment and facilities Installation of air conditioner compressors controlled by the number of air conditioner units in operation
Installation of inverter-controlled cooling water supply equipment
Installation of EV charging stations
Lighting Installation of a system for automatic selection of illuminance
Installation of lights for automatic detecting the presence of persons
Installation of LED lights
Installation of inverter ballasts with luminaires
Fewer lights are lit and unnecessary lights are turned off when not needed.
Building Laying double roofs
Implementation of thermal barrier coating
Replacement with thermal windows
Enlightenment activity Handbills are distributed and signboards are installed in energy-saving months.
Cool Biz and Warm Biz
“Green” walls on building windows and walls

In FY2021 our annual amount of CO2 emission was 27,656 tons of CO2, against our target of 35,900 tons of CO2. 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 to zero 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 Japanimage:check mark icon

Graph: 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

Graph: 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)image:check mark icon

Graph: Changes in Energy Usage (Crude Oil Equivalent)

* Reporting boundary: All Hitachi High-Tech Group companies (Excluding Hitachi High-Tech Ireland and Hitachi High-Tech Israel. The figures from FY2018 include Hitachi High-Tech Analytical Science and excludes Hitachi High-Tech Russia and Hitachi High-Tech Kuwait Office in FY2020.)

* 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)

graph: 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 Japanimage:check mark icon

Graph: Changes in Volume of CO₂ Emissions Outside Japan

* Reporting boundary: Overseas subsidiaries (excluding Hitachi High-Tech Ireland and 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 FY2021 CO2 emission factor for electric power is based on the value published by the IEA (International Energy Agency) in 2021 for 2019. For FY2020, values published by the IEA in 2020 for 2018 were used; 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 2017 were used for the calculation of the FY2018 figure, CO2 emissions would have been 10,349 tons.)

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.

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. We were also 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.
Our 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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