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1、Hitachi Sustainability Report 2024Fiscal 2023 ResultsCONTENTSCONTENTS Report GuideReport Guide Report Editorial Policy .2 Hitachi at a glance .4 Assurance .6 ManagementManagement CEOs Message .8 Chief Sustainability Officers Message.10 Hitachi Group Identity .13 Mid-term Management Plan 2024 and Sus

2、tainability .14 Materiality .16 Framework for Promoting Sustainability Strategy .24 Engagement and Leadership .27 External Assessments and Awards .32 Social Innovation BusinessSocial Innovation Business Social Innovation Business.36 EnvironmentalEnvironmental Advancing Our Environmental Vision and L

3、ong-term Environmental Targets .43 Environmental Governance .48 Achieving a Decarbonized Society .53 Climate-related Financial Information Disclosure(Based on TCFD Recommendations).69 Achieving a Resource-Efficient Society .79 Achieving a Harmonized Society with Nature .85 Environmental Data .93 Soc

4、ialSocial Global Human Capital Management .104 Diversity,Equity and Inclusion .115 Occupational Health and Safety .127 Work-Life Management .138 Freedom of Association and Collective Bargaining .143 Respect for Human Rights Throughout the Value Chain .145 Responsible Procurement.152 Quality and Prod

5、uct Safety Management .161 Customer Satisfaction .164 Social Contribution Activities .166 Social Data .171 GovernanceGovernance Corporate Governance .183 Business Ethics and Compliance .195Risk Management .202Business Continuity Initiatives .207Information Security .209Governance Data .215Hi t ac h

6、i Su s t ai n ab i li t y Re po rt 2 0 2 41Report GuideReport Editorial PolicyBasic ConceptThe Hitachi Sustainability Report 2024 presents our stance on sustainability management,social innovation business,and ESG(environment,society,and governance),as well as initiatives conducted in fiscal 2023(in

7、cluding initiatives addressing materialities).This report is intended as an engagement tool for all stakeholders to disclose information in accordance with international guidelines,including thedisclosure requirements of the GRI Standards and the industry disclosure standards relevant to Hitachi as

8、defined by the Sustainable IndustryClassification System(SICS)of the Sustainability Accounting Standards Board(SASB).Our information disclosures related to climate change arebased on the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD).Starting with the Sustainability

9、 Report 2024,we have decided to publish the Sustainability Report in HTML format on our website for effective andtimely information disclosure.Additionally,for the convenience of stakeholders,we convert the HTML content into PDF format.We hope youbenefit from either of these formats.Report OverviewP

10、eriodThis report mainly covers fiscal 2023(April 1,2023,to March 31,2024)Note:Some information on activities in April 2024 and after is also included.CompaniesHitachi,Ltd.and its consolidated subsidiariesReporting BoundaryFinancial data:943 companies,namely Hitachi,Ltd.and 942 consolidated subsidiar

11、ies and equity-method associatesand joint venturesEnvironmental data:574 companies,namely Hitachi,Ltd.and 573 consolidated subsidiaries.Data covers Category A business sites*1 which have large environmental loads.Some data coverssites in Categories A,B,and C(excluding non-manufacturing sites for cat

12、egory C),and this isindicated in the notes for each section.Other data related information is provided in the notes toeach section.Social and governance data:Boundary of individual data indicatedReporting CyclePublishes every year as an annual reportPublication DateSeptember 2024(Previous report:Sep

13、tember 2023)*1 All group business sites are classified as A,B,or C(A:Major environmental risk,B:Medium environmental risk,C:Minor environmental risk)based on theCriteria for Classification of Environmental Management established by Hitachi.We engage in the most suitable management for each location

14、inaccordance with the respective level of environmental risk.About Subject NotationHitachi,Ltd.:Only refers to Hitachi,Ltd.(non-consolidated)Hitachi:Refers to the Hitachi Group including Hitachi,Ltd.Key GuidelinesGRI Standards,Global Reporting InitiativeSustainability Accounting Standards,IFRS Found

15、ationEnvironmental Reporting Guidelines(2012/2018 version),Ministry of the Environment,JapanTask Force on Climate-related Financial Disclosures(TCFD)Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 42Our Reporting UniverseHitachi publishes three corporate reports:the Integrated Report,the Sustaina

16、bility Report,and the Annual Securities Report.We define eachreports roles by content(from quantitative information to Value Creation Strategy)and time horizon(from results to the mid-to long-termperspective).In particular,the Integrated Report and the Sustainability Report,which are released on the

17、 same day,can be read together to confirm ESGinitiative progress and data in addition to management strategies.We also invite you to visit our websites for additional information.Our Reporting UniverseAbout the Hitachi GroupSustainabilityInvestor RelationsSocial InnovationIndependent AssuranceTo enh

18、ance the credibility of the disclosed sustainability data,the Hitachi Sustainability Report 2024(Posted in PDF format on the website at theend of September 2024)received third-party assurance for environmental,social,and governance performance indicators by KPMG AZSASustainability Co.,Ltd.in accorda

19、nce with the International Standard on Assurance Engagements(ISAE)3000 and 3410.The indicators that wereassured are marked with a.AssuranceHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 43Revenues for FY2023Target CAGR of 5-7%from FY2021 to FY2024Financial InformationAdj.EBITA ratio for FY 2023F

20、Y2024 target of 12%Financial InformationLumada business revenues for FY2023FY2024 target of 2.7 trillion yenLearn More About LumadaCore FCF3-year cumulative target(FY2022-FY2024)Progress of the Mid-term Management Plan 2024Achieve carbon neutrality by FY2050 throughout the value chainSustainabilityD

21、igital talents for FY 2024FY2024 target of 97KProgress of the Mid-term Management Plan 2024*Revenues,Adj.EBITA ratio are for the three sectors*Three sectors：Consolidated Total less the consolidated figures of Hitachi Astemo prior to be accounted by an equity-method affiliate,includes Others and Corp

22、orate items&Eliminations*Lumada business revenues are for FY2023(excluding Hitachi Astemo)*Number of employees is as of March 31,2024*Adjusted EBITA=Adjusted operating income acquisition-related amortization+equity in earnings(losses)of affiliates*Core FCF=Cash flows from operating activities CAPEXK

23、ey numbers8.6 trillion yen10.12.3 trillion yen1.5 trillion yen97K+Report GaideHitachi at a glanceHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 44In April 2022,Hitachi formulated the Mid-term Management Plan 2024 targeting further global advances and growth in the Social Innovation Business base

24、d on three pillars of growth:digital,green and innovation.To increase management efficiency and speed,we simplified our structure,grouping together businesses with similar characteristics organized into three sectors:Digital Systems&Services(DSS),Green Energy&Mobility(GEM)and Connective Industries(C

25、I).Revenues by Market(FY2023)Hitachi Group businessesHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 45Report GuideAssuranceAssuranceTo enhance the credibility of the disclosed sustainability data,the Hitachi Sustainability Report 2024(Posted in PDF format on the website at theend of September 20

26、24)received third-party assurance for environmental and social performance indicators by KPMG AZSA Sustainability Co.,Ltd.in accordance with the International Standard on Assurance Engagements(ISAE)3000 and 3410.The indicators that were assured aremarked with a.Performance Indicators Assured(Reporti

27、ng Boundary:Hitachi Group)The standards,guidelines,and calculation methods used in collecting environmental data are posted on our website.Calculation Methods for Environmental Load DataEnergy inputsGreenhouse gas emissions Scope 1(Energy-related CO2 emissions,and GHG emissions other than energy-rel

28、ated CO2)Greenhouse gas emission Scope 2(Energy-related CO2 emissions)*Calculated based on the market-based method.Greenhouse gas emission Scope 3 Category 11(Use of sold products)Total water withdrawal,Total water effluents discharged,Water quality(Biochemical Oxygen Demand(BOD)and Chemical Oxygen

29、Demand(COD)Number and ratio of women managersHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 46Notes to the Reader of Independent Assurance Report:This is a copy of the Independent Assurance Report and the original copies are kept separately by theCompany and KPMG AZSA Sustainability Co.,Ltd.Hi t

30、 ac h i Su s t ai n ab i li t y Re po rt 2 0 2 47ManagementCEOs MessageHitachis Transformation JourneyOver the past decade,Hitachi has embarked on a transformation journey to become aglobal leader in Social Innovation Business.The Social Innovation Business leverages Hitachis IT,OT(Operational Techn

31、ology),andproducts to solve social issues in collaboration with customers.Through the Lumada co-creation framework,we support the digital and green transformation(DX and GX)of societyand industry with our diverse business portfolio aligned with the three technological trends:Digital,Green,and Connec

32、tive.In our current Mid-term Management Plan 2024,we are making a significant shift towardorganic growth,expanding our Social Innovation Business globally with Lumada at thecore.Our goal is to realize a sustainable society supported by data and technology,enhancing peoples well-being.Moving forward,

33、Hitachi will continue to evolve its SocialInnovation Business and promote sustainability management to protect the planet,maintainsociety,and realize the well-being of every individual.The Driving Force of Our Sustainability Management“Contribute to society through the development of superior,origin

34、al technology and products.”This strong belief of Hitachis founder,NamiheiOdaira,has been passed down as our corporate philosophy throughout our history of over 110 years.Hitachis founding spirit of Harmony,Sincerity,and Pioneering Spirit expresses our core values that we uphold as we strive to solv

35、e social issues,by focusing on society and people.Hitachi has created the slogan“Hitachi Social Innovation is POWERING GOOD”for the Social Innovation Business.Protecting the earths healthyenvironment while fostering economic growth and supporting the well-being of people around the world,in other wo

36、rds,realizing“GOOD”forsociety,is the guiding principle for our Social Innovation Business.To expand the Social Innovation Business,it is important to have individuals who resonate with our corporate philosophy and have a strong will todrive social innovation.These talented individuals become the dri

37、ving force of our sustainability management.Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 48One Hitachi Teamwork that Evolves Sustainability ManagementWith the advent of generative AI,the demand for digitalization is rapidly increasing.Meanwhile,the global economy is pursuing the path to stable

38、 growth despite itsvulnerabilities,due to complex geopolitical situations,and shortages of resources,energy,and labor.We believe it is crucial to identify new growth opportunities that are unlocked bythe impact of generative AI on society,and the social issues that emerge from shifts suchas climate

39、change and demographics,and further advance our efforts toward realizing asustainable society.To tackle the increasingly diverse,severe,and complex social issues,it is important tostrengthen our problem-solving capabilities using Lumadas customer co-creationframework.The Hitachi Group has welcomed n

40、ew members with global and diversebackgrounds and expertise through business portfolio reforms and M&As.Thesecolleagues are our indispensable human capital for collaborating with customers across theglobe to solve social issues.Hitachis diverse businesses in Digital,Green,and Connective play a signi

41、ficant role in creating solutions to address complex social challenges.Toleverage this diversity as a strength,it is important to embrace the One Hitachi mindset.In April 2024,we launched a new business structure to accelerate digital growth and strengthen global competitiveness by appointing leader

42、s withdiverse backgrounds.Lorena Dellagiovanna,Chief Sustainability Officer and CDEIO,also took on the role of CHRO to reinforce sustainabilitywithin the organization.In order to deepen sustainability management,Inclusive Leadership that embraces diverse and conflicting opinions,creates integrated i

43、deas,andprovides guidance to demonstrate One Hitachi teamwork is crucial.By increasing the number of inclusive leaders,we can strengthen teamworkwith various stakeholders,such as our customers and partners,who work with us to solve social issues,thereby driving further growth of the SocialInnovation

44、 Business.Hitachi will deepen sustainability management and accelerate the growth of our Social Innovation Business and continue our transformationjourney towards enhancing our corporate value.Please look forward to Hitachis future.Keiji KojimaPresident&Chief Executive Officer Hitachi,Ltd.Hi t ac h

45、i Su s t ai n ab i li t y Re po rt 2 0 2 49ManagementChief Sustainability Officers MessageMy Mission as a Chief Sustainability Officer,CHRO,and CDEIOAt Hitachi,sustainability and strategy are inseparable.Sustainability is stronglyintegrated into our strategy and is at the core of Hitachi Group Ident

46、ity,rooted in the sincerebelief of our founder,Namihei Odaira.He firmly believed that through the development ofsuperior,original technology and products,we could contribute to society.This sincerebelief has been at the heart of Hitachi for over a century.Our more than 110-year history is a testamen

47、t to this belief.From the beginning,Hitachihas supported the development of society and the improvement of peoples lives throughunique and innovative technologies.While Hitachi contributed to these broader goals,thecompany itself flourished.In essence,Hitachi embodies the philosophy that societalcon

48、tribution through technology and a companys sustainable growth are fundamentallyinterconnected and mutually reinforcing.Today,Hitachis sustainability management focuses on addressing Planetary Boundariesand Wellbeing.Grounded in our universal management philosophy,we are dedicated tocreating a susta

49、inable society,looking both at the present and the future.As a member of Hitachis management team,I strive to make decisions based on acomprehensive understanding of what society and the world need today and in the future.This holistic approach defines my sustainability leadership.As a leader of Hit

50、achis sustainability efforts,I have always valued looking at issues frommultiple perspectives.What benefits one group might be a disadvantage to another,andactions that benefit the current generation in the short term can pose challenges for futuregenerations.With my appointment as CHRO,in addition

51、to my roles as Chief Sustainability Officer and CDEIO since fiscal 2024,my responsibilities haveexpanded to include human resources.Todays social issues are so complex that they cannot be solved with a conventional way of thinking.Solving them requires a new,agile,andholistic approach while also bei

52、ng creative.The source of such innovative thinking and creativity is our people from all over the world with variousbackgrounds.This is why Hitachi is committed to integrating sustainability,human capital management,and diversity,equity,and inclusion(DEI)atthe most senior level.Moving away from conv

53、entional thinking and leveraging peoples creativity in sustainability efforts helps us address socialissues more effectively and elevates employee engagement as they contribute to solving these issues through their daily work.Moreover,at Hitachi,we believe that non-financial considerations underpin

54、financial success,and enhancing peoples uniqueness will foster long-term financial growth.Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 410Our Progress in SustainabilityHitachi has identified six material topics and 15 sub-material topics under our sustainability management framework,and variou

55、s initiatives are wellunderway.Looking back on fiscal 2023,we successfully met most of our sustainability goals and KPIs.We will continue to accelerate our evolutionand enhance our practices to achieve more advanced sustainability management.Advancing Environmental GoalsSome of the notable progress

56、we made in the area of environment relates todecarbonization and circular economy.Regarding our decarbonization efforts,we are making good progress with our internalinitiatives,achieving a 74%reduction in CO2 emissions at our business sites compared tothe base year of fiscal 2010.We are also working

57、 with our customers to reduce societysCO2 emissions through our Social Innovation Business.As of fiscal 2023,we areforecasting to contribute to approximately 153 million metric tons(Mid-term ManagementPlan 2024 three-year average)of avoided emissions.Significant contributions came fromHitachi Energy

58、,which specializes in electric power transmission and distribution.The total grid-connected capacity of Hitachi Energys HVDC technology now stands at 150GW,equaling Japans peak demand.This milestone reflects the increasing global shifttoward clean energy.To support this growing demand,Hitachi Energy

59、 has hired over 8,000new employees globally and has invested$3 billion in manufacturing,engineering,and R&D since 2020.These efforts underscore ourcommitment to supporting our customers as long-term strategic partners and highlight the impact of our sustainability initiatives.In circular economy,our

60、 reduction rate in water use per unit compared to fiscal 2010 was 30%,and 75%of our sites achieved zero waste tolandfill.To reduce environmental impact,we are transforming our business model,shifting toward using fewer raw materials,water,and other resourcesmore efficiently and sustainably.As a comp

61、any with a long history in manufacturing,we recognize the need to approach production with a newmindset.We are also moving from a sell-only business to a service-type business model,where we focus on the use of products rather than just theirownership.This shift not only aligns with our sustainabili

62、ty goals but also ensures we remain relevant and competitive in the evolving market.Our DEI InitiativesAs a global company,Hitachi boasts a rich and diverse workforce,and we believe that incorporating the perspectives of diverse individuals into ourmanagement and business operations fosters innovati

63、on and drives our growth.DEI is truly the engine behind Hitachis success and is a corebusiness driver that supports us in reaching our MISSION.Creating an inclusive environment for all people,regardless of their diverse backgrounds,age,gender,sexuality,family structure,disability,race,nationality,et

64、hnicity,or religion,is essential to unlock the full capability of our approximately 270,000 employees worldwide.At the core of our DEI strategy,we focus on three topics:gender diversity,cultural diversity,and multi-generation.In fiscal 2023,we revised ourDEI Policy to more comprehensively respect in

65、visible human diversities,including LGBTQIA+,disabilities,and neurodiversity,and we areimplementing specific measures.As a result of our efforts,the ratio of women and non-Japanese nationals appointed to the senior managementlayer,reached around 12%and 25%respectively,making headway toward our targe

66、ts of 30%by fiscal 2030.We also made an important stepforward in embedding DEI in our daily work by including DEI KPIs in employees performance reviews.This will drive behavior change and a shiftin mindset toward a more inclusive workplace.Through these approaches,we will ensure that our employees f

67、eel engaged and that they play anintegral part in what we do as a company.Generative AI and Sustainability ManagementIn 2023,we witnessed an epoch-making technology,generative AI,take the world by storm,impacting industries and society as a whole.Generative AI can significantly improve work efficien

68、cy,allowing people to focus on more value-added and creative tasks.However,as its useexpands,the demand for data centers will rise,leading to increased power consumption and CO2 emissions.So how should we view this innovative technology from the perspective of balancing planetary boundaries and well

69、being?At Hitachi,we aim to analyze both the positive and negative impacts of generative AI from multiple perspectives,including environmental impactsand ethical implications.Our goal is to derive optimal solutions that enhance societys wellbeing while staying within planetary boundaries.Securing top

70、-tier digital talent is crucial for Hitachi,especially in this context and with our business centered around Lumada.Our digital talentworkforce has grown from 83,000 in fiscal 2022,to 95,000 in fiscal 2023,and we will continue strengthening the acquistion and development ofdigital talents to 97,000

71、by fiscal 2024 as per our original target.Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 411Message to Our StakeholdersHitachi has been dedicated to reforming our business portfolio with a focus on the SocialInnovation Business under the slogan of“Hitachi Social Innovation is POWERING GOOD.”We a

72、re committed to contributing to a sustainable society and to peoples happinessthrough various social innovation initiatives based on this concept.This approach hasenabled Hitachi to grow sustainably,which I believe is reflected in our stock price,marketvalue,and reputation for sustainability managem

73、ent,including our performance on ESGevaluations.As the global company we have become,I truly believe that we can do even more to makea positive impact on a global scale through our Social Innovation Business.As ChiefSustainability Officer,CHRO,and CDEIO of Hitachi,my goal is to foster collaborations

74、 thattranscend the boundaries of geographical regions and business fields,unleashing our fullcapabilities.I feel that society and the world trust Hitachi and have high expectations of us,and we are committed to continuing to meet and exceed theseexpectations.Lorena DellagiovannaSenior Vice President

75、 and Executive Officer,Chief Sustainability Officer,CHRO,General Manager of Human Capital Group and CDEIO Hitachi,Ltd.Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 412ManagementHitachi Group IdentityCarrying out Corporate Activities Based on the Hitachi Group IdentityApproach&PolicySince our fo

76、unding,Hitachi has been working to solve the challenges facing society by following our MISSION:Contribute to society through thedevelopment of superior,original technology and products.Our VALUES,present in the Hitachi Founding Spirit and reflecting Harmony,Sincerity,and Pioneering Spirit,guide our

77、 mission and inspire our actions.The MISSION and VALUES are our foundation,and together with the addition ofthe Hitachi Group Vision of the companys future,we define the Hitachi Group Identity.As the group continues to grow globally,Hitachi had reached approximately 270,000 employees on a consolidat

78、ed basis in fiscal 2023,about 60%of whom working outside Japan.Similarly,sales revenue generated in non-Japanese markets account for about 60%of total revenue.In this ageof working together with employees from different countries with different cultures,we must cherish Harmony,Sincerity and Pioneeri

79、ng Spirit.Hitachi businesses solve social issues and supports sustainability.Moving forward,it is essential that all employees around the world,despite theirdifferent language and thinking,continue to engage in constructive discussion.As we pursue our goal of contributing to society,we must maintain

80、common Hitachi VALUES across the group.With the Hitachi Group Identity as our foundation,we will grow as individuals and as an organization.Together with our colleagues worldwide,wewill contribute to society through our Social Innovation Business.Hitachi Group IdentityHitachi Group IdentitySolidifyi

81、ng the Hitachi Group IdentityActivitiesHitachi offers awareness activities through training tools and courses,assuming that social issues can be solved if each employee understandsand practices the Hitachi Group Identity.One way we encourage an understanding of and familiarity with the Hitachi Group

82、 Identity and the Hitachi Brand is with the annual Inspiration ofthe Year Global Awards.These awards recognize remarkable activities that contribute to enhancing the value of the Hitachi Brand by building onthe Hitachi Group Identity.In fiscal 2023,we received 229 applications from Hitachi Group emp

83、loyees around the world.Among them,the GrandsPrix were awarded to the projects from each region that use technology to achieve sustainability and improve well-being,including a project inwhich a global team uses digital technology and experimental automation technology to create a system for the qui

84、ck development of highlyfunctional materials,and another that supported the development of intelligent prosthetics and orthotics for victims who lost limbs in the war inUkraine.The Grand Prix-winning projects were recognized at the Global Awards Ceremony and shared with all employees through our int

85、ranet.Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 413ManagementMid-term Management Plan 2024 and SustainabilityTowards Sustainable SocietiesMid-term Management Plan 2024Approach&PolicyStrategy&TargetIn accordance with Hitachis Mission to“contribute to society through the development of superi

86、or,original technology and products,”we pursueour Social Innovation Business leveraging core strengths in IT(Information Technology)OT(Operational Technology)Products,and Lumada*1to help build sustainable societies.To respond to the increasingly complex global issues of recent years,it is essential

87、that we conduct management from a long-term perspective andmaximize Hitachis diverse management resources to achieve further evolution in our Social Innovation Business.Hitachi has responded by imagining the futurewhat the earth,society,and people will look like and what Hitachi will act like in 205

88、0.Based onthe future,in April 2022,we back-casted to formulate the Mid-term Management Plan 2024 which clarified what Hitachi should do now and whatHitachi should achieve over the medium-to long term.*1 Lumada:Solutions,services,and technologies that leverage Hitachis digital technology and are offe

89、red to customers to accelerate the digitization ofcustomers businesses.Mid-term Management Plan 2024Progress of the Mid-term Management Plan 2024Vision Targets of the Mid-term Management Plan 2024With the three growth drivers of Digital,Green and Innovation,the Mid-term Management Plan 2024 aims to

90、achieve global growth.The environment is reaching limits on a global scale as the thresholds of several of the nine planetary boundaries have already been crossed.Also,wellbeing(physical,mental,and social)is a growing global issue,therefore it is significant that we focus both on planetary boundarie

91、s andwellbeing.Hitachi aims to resolve the increasingly complex social issues through its business,while respecting planetary boundaries and realizing wellbeingfor all individuals.We will further evolve our Social Innovation Business and contribute to solving social issues.Supporting Quality of Life

92、 with Data and Technology that Foster a Sustainable SocietyHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 414Contributing to the SDGsApproach&PolicyHitachis Social Innovation Business aims to create sustainable societies by solving global social and environmental issues as defined by theSDGs,and

93、 we consider the business to be a source of sustainable growth for us.We strive to create social,environmental,and economic valuethrough our Social Innovation Business,reduce negative social and environmental impacts and seek a deeper understanding of business risksarising from social and environmen

94、tal changes to ensure business continuity and greater resilience.Based on our Mid-term Management Plan 2024,we examined the relationship between the opportunities and risks associated with the SDGs andour businesses to identify 13 goals as Hitachi priority SDGs issues:five goals through which we mak

95、e particularly significant impacts through ourkey businesses and eight goals through which we particularly contribute in the course of our corporate activities.Through our active involvement across a broad range of business fields,we believe we can contribute extensively to the achievement of SDGsbe

96、yond the 13 goals identified,and we will strive to contribute to the achievement of all 17 SDGs.Hitachis Priority SDGsHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 415ManagementMaterialityToward a Sustainable Society:Hitachis MaterialityApproach&PolicyStrategy&TargetHitachi practices Sustainabi

97、lity Management,which positions sustainability as the core of its business strategy,and is working toward realizing asustainable society through the Social Innovation Business.In the Mid-term Management Plan 2024,we declared our aspiration of“supporting peoples quality of life with data and technolo

98、gy that fosters asustainable society.”While some of the nine planetary boundaries have already been exceeded,Hitachi is aware of each one and works to protectthe planet and maintain society.Hitachi aims to solve social challenges to realize a future that balances protection of the planet and peoples

99、individual wellbeing.Planetary BoundariesThe Materiality Analysis ProcessWith a comprehensive understanding of social issues,Hitachi has identified six material topics and 15 sub-material topics based on an analysis ofrisks and opportunities from a sustainability perspective as well as feedback from

100、 stakeholders.Based on these material topics,Hitachi is monitoring measures as well as discussing the progress,and new initiatives for each materiality at theSenior Executive Committee and the Board of Directors.Materiality Analysis ProcessHitachi is currently working to gain an understanding of and

101、 prepare to act on the sustainability reporting standards prescribed by the EUsCorporate Sustainability Reporting Directive(CSRD),the International Sustainability Standards Board(ISSB),and others.We will continue toreview our material topics and the process of identifying them on an ongoing basis,in

102、formed by the changing demands of society and needs of ourstakeholders.16Hitachi Sustainability Report 202415 Sub-Material Topics and TargetsMaterialityOur aspirationsSub-material topics Targets/KPIsFY2023 ProgressEnvironment Contributing todecarbonizationand resourcecirculationAs a climate change i

103、nnovator,Hitachi will contribute to therealization of a carbon neutralsociety with Hitachis superiorgreen technologies,by providingvalue to customers in allbusiness segments.We will alsopromote resource efficiencytoward the transition to a circulareconomy.DecarbonizationCarbon neutrality through the

104、 value chain Targets/KPIs FY2030:Achieve carbon neutrality in businesssites(factories and offices)FY2050:Achieve carbon neutrality through thevalue chain74%of total CO2reduction rate atfactories and offices(compared toFY2010)Contributing to CO2 reduction throughbusiness Target/KPI FY2024:100 million

105、 metric tons of CO2avoided emissions per year153 million metrictons per year*1 ofCO2 avoidedemissionsResourcecirculationTransition to a circular economy Targets/KPIs FY2024:Full application Eco-Design for allnewly developed products FY2030:Zero*2 waste to landfill*3 frommanufacturing sites198 produc

106、tsidentified as subjectof Eco-Design 146 sites(75%)achieved zero wasteto landfillEffective use of water Target/KPI Reduction rate in water use per unit(compared to FY2010)FY2024:24%,FY2050:50%30%reduction inwater use per unitHarmonize withnatureMinimize impact on natural capitalAchieving aHarmonized

107、 Societywith Nature17Hitachi Sustainability Report 2024MaterialityOur aspirationsSub-material topics Targets/KPIsFY2023 ProgressResilience Contributing tothe maintenanceand rapidrecovery of socialinfrastructureHitachi helps people live safelyby contributing to the rapidrecovery of supply chains andt

108、he maintenance of socialinfrastructure by providingsystem solutions that canrespond immediately to risks,such as natural disasters,pandemics,and cyberattacks.Strengtheningsupply chainsBuild flexible supply chains capable ofresponding to disasters and risksSocial InnovationBusinessMaintainingsocialin

109、frastructureResilience and sophistication of maintenancethrough DX of social infrastructureBusiness Case:Contribute to stable energysupply through substationmanagement to approx.1.9 billionpeople*4Safety&Security Contributing tosafe and securesociety-buildingHitachi contributes to therealization of

110、comfortable andactive lifestyles for people byproviding solutions in thebuilding,mobility,and securityfields that support urbandevelopment for safe and secureliving.Safe andsecure urbanenvironmentsSafe and comfortable transportationBusiness Case:Contributed to a total of 15 billionpeople annually th

111、rough railwayservices*4Ensuringcyber securitySecure cybersecurity for social infrastructureand business systems18Hitachi Sustainability Report 2024MaterialityOur aspirationsSub-material topics Targets/KPIsFY2023 ProgressQuality of Life Contributing tophysical andmental wellnessand a prosperouslifeHi

112、tachi is harnessing ourhealthcare and digitaltechnologies to help more peopledevelop bonds and enjoyhealthier,more prosperous lives.We will also continue to pursuethe happiness and wellbeing ofour employees,as we believe thattheir happiness and wellbeing isthe ground on which Hitachisfuture will flo

113、urish even more fully.ConnectedandprosperoussocietyIncrease healthy life expectancy and wellbeingBusiness Case:Blood tests and other physicalexams:20 billion tests/year*4Build a trustful relationship with others Target/KPI Users of happiness service:90 thousand inFY202449 thousand users ofhappiness

114、serviceEmployeehappinessMore flexible working styles to increaseengagement Target/KPI Employee engagement(positive response rate):FY2024 71.0%*568.6*6 employeeengagement(positiveresponse rate)19Hitachi Sustainability Report 2024Social InnovationBusinessMaterialityOur aspirationsSub-material topics T

115、argets/KPIsFY2023 ProgressBusiness withIntegrity Adhering toethical standardsas well as respecthuman rightsAs a Group responsible for socialinfrastructure around the world,Hitachi will manage its businesswith honesty and integrity,trustedby society,respect human rightsand provide a safe workplace.We

116、 will reflect a system of ethicaland responsible businessconduct,including respect forhuman rights,in our businessactivities and decision-makingstandards,working together withour employees,collaborativepartners and communitiesthroughout the supply chain.Businessethics andcomplianceEncourage employee

117、s to apply ethicalstandards in day-to-day work.Target/KPI Achieve a score of at least 60(out of 100)inFY2023,the first year of results from EthicalCulture&Perceptions Assessment,improving itevery yearScore of 76.5Respect forhuman rightsPromote human rights due diligence andstrengthen monitoring of p

118、rocurementpartners for responsible procurement,including human rights Targets/KPIs FY2023:Conduct human rights riskassessments for all BUs(10 BUs)and majorGroup companies FY2024:Respond to human rights risksConduct humanrights riskassessments at allBus(10 BUs)andmajor Hitachi GroupcompaniesOccupatio

119、nalsafetyCreating a safe working environment withoutaccidents Target/KPI Zero fatal accidents4 fatal accidentsSafe andsecureproducts andservicesEnsure products and services safety whileputting customers firstQuality and ProductSafety ManagementDiversity,Equityand Inclusion(DEI)Contributing to asocie

120、ty whereeveryone canshineHitachi has a place for everyone,welcoming differences incolleagues background,age,gender,sexuality,family status,disability,race,nationality,ethnicity,and religion.At Hitachi,we treat everyone fairly,recognizing differences to alloweveryone to perform at their fullpotential

121、.We respect and valuethese and other differencesbecause only through them wecan understand our markets,create better ideas and driveinnovation.Diverseorganizationthat fostersinnovationStrengthen diversity in management Target/KPI Ratio of women and non-Japanese executiveand corporate officers:FY2030

122、 30%respectively11.8%of women and25.0%of non-Japanese executiveand corporateofficers*7Acquiring and developing digital talent Target/KPI FY2024:97,000 persons*895,000 personsContributionto a diverseandequitablesocietyEmpower DEI of society through communityrelationship programs Target/KPI Nurture an

123、d empower next-generation talentParticipants inHitachi YoungLeaders Initiative 32people 437 peoplecumulative*9 Participants inHitachi High-Techscience educationsupport activities 59,911 people427,273 peoplecumulative*1020Hitachi Sustainability Report 2024*1:Mid-term Management Plan 2024 three-year a

124、verage*2:Less than 0.5%*3:Wherever this is compatible with local conditions and regulations*4:FY2022 results*5:Target has been raised in FY2023 since we achieved the initial target/KPI in FY2022*6:Excluding Hitachi Astemo*7:As of June 2024*8:Excluding Hitachi Astemo*9:Cumulative total since 1996*10:

125、Cumulative total since 1990 Hitachi has mapped the 15 sub-material topics in terms of importance for Hitachi and stakeholders.The level of importance to Hitachi is defined as the gap between our goals and our current initiatives.Stakeholder Dialogue about the MaterialityWe held a stakeholder dialogu

126、e on the theme of materiality in Japan and Europe in fiscal 2021.We received feedback on Hitachis proposedmateriality and measures for each materiality from disclosure experts,leading sustainability companies,European Commission,NGOs,international organizations,and institutional investors.In Europe,

127、we divided it into a planet session and a people session,with Hitachi explainingits measures for the environment,human capital,and respecting human rights,while participants gave suggestions for new perspectives andimprovements.Principal comments from stakeholdersWe will continuously engage with div

128、erse stakeholders and strive to enhance sustainability management.Hitachi should indicate the direction society wants Hitachi to move along or the goals that Hitachi itself has.When it comes to diversity and inclusion,it would be better to include equity and make it diversity,equity,and inclusion.Fo

129、r the circular economy,the approach shouldnt just be to reduce materials and waste but also to think about new business models.With human rights and decent work,Hitachi should go beyond conventional monitoring,audit,and other compliance approaches to engage withall aspects of supply chains through p

130、artnerships with external stakeholders.21Hitachi Sustainability Report 2024Reflecting Sustainability Targets in Executive Compensation EvaluationActivitiesIn fiscal 2023,Hitachi amended the executive compensation system to further accelerate growth as a global company,and to further strengthenlinks

131、between increases in corporate value and compensation.The revised executive compensation system is more closely linked to the Mid-termManagement Plan 2024 and incorporates sustainability targets.Specifically,sustainability evaluations that had been used as an index for individual short-term incentiv

132、e compensation(STI)are now treatedseparately and account for a ratio of 20%.In addition,an additional grant of shares equivalent to 10%of the standard amount of medium-to long-term incentive compensation(LTI)will begranted if the sustainability targets are achieved.Sustainability evaluation in STI w

133、ill be aligned to materiality topics including Environment,Business with Integrity and Quality of Life,each linked tosub-materiality topics targets listed below.Going forward,Hitachi will enhance link of compensation and the growth of the company,cultivating a growth mindset and strive to achieve gl

134、obalgrowth as One Hitachi.22Hitachi Sustainability Report 2024Materiality Targets Linked to Executive CompensationSustainability Evaluation Categories Related to STIsMaterialitySub-material topics targetEnvironmentDecarbonizationResourcecirculationBusiness with IntegrityOccupationalsafetyQuality of

135、LifeEmployeehappinessSustainability Evaluation Categories Related to LTIsMaterialitySub-material topics targetQuality of LifePositive response rate regarding employee engagement:68%more as a wholegroupDiversity,Equity andInclusion(DEI)DEI achievement rate:(1)Ratio of women executives:15%or more(2)Ra

136、tio of non-Japanese executives:15%or moreAcquisition and development of digital talents:98,000 or more employees as awhole groupCompensation to Executive OfficersCarbon neutrality through the value chainContributing to CO2 reduction through businessEffective use of waterCreating a safe working envir

137、onment without accidentsMore flexible working styles to increase engagement23Hitachi Sustainability Report 2024ManagementFramework for Promoting Sustainability StrategyEstablish a System to Promote SustainabilityStructureHitachi pursues sustainability initiatives across the group under the leadershi

138、p of Chief Sustainability Officer,Lorena Dellagiovanna.At the HitachiGroup,the Senior Executive Committee,which includes the Growth Strategy Meeting,Risk Management Meeting,and Human Resource StrategyMeeting,deliberates and makes decision on important sustainability issues.These issues are submitted

139、 to the Board of Directors as needed.The Growth Strategy Meeting discusses matters relating to the management strategies necessary for the Groups growth.The Risk Management Meeting deliberates and makes decisions on important group-wide risks.The Meetings goal is to strengthen theCompanys management

140、 base linked to growth strategies through a unified and horizontal understanding of risks across the entire Group.The Human Resource Strategy Meeting is positioned as an advisory body to the President,who makes decisions related to the organization andhuman capital,and the Meeting discusses matters

141、needed to foster an organization and culture aimed at the growth of the Group,and to secureand cultivate human resources.We promote sustainability practices throughout the entire Group under the leadership of the Chief Sustainability Officer.We hold the SustainabilityPromotion Meeting once or twice

142、a year to discuss important sustainability initiatives and share information.The meeting is chaired by the ChiefSustainability Officer.The other members are the heads of the Business promotion divisions of each business unit(BU)and key Group companiesand the Sustainability Officers of regional headq

143、uarters.Individual sustainability themes such as carbon neutrality,circular economy,human rights due diligence(HRDD),diversity,equity,and inclusion(DEI),occupational safety and health,supply chains,quality assurance,etc.are promoted by meeting bodies consisting of responsible staff at BUsand princip

144、al Group companies as part of cross-organizational activities in the Hitachi Group,who discuss measures and share information acrossthe entire Group.Framework for Promoting Sustainability StrategyHitachi Sustainability Report 202424Overview of Sustainability Related Conference BodiesMeetingAttendees

145、PurposeFrequencySustainabilityPromotionMeetingChief Sustainability Officer,Business promotion divisionheads at BUs&key Group companies and RHQSustainability OfficersDeliberation,information sharing related to materialsustainability initiativesOnce ortwice per yearEco-ManagementMeetingHeads of Busine

146、ss promotion/Environment-related/MONOZUKURI(production)/Procurement divisions from BUs and key GroupcompaniesDeliberation,planning,and implementation of actionplans(environmental action plans)to achieve theHitachi environmental long-term goalsEvery half-yearEco-ManagementCN2030Promotion ProjectMeeti

147、ngHeads and members of Environment-related/MONOZUKURI(production)divisions from BUs and key Group companiesMonitoring and implementation of CN action planand discussion of accelerationEvery half-yearEco-Management3RPromotion ProjectMeetingHeads and members of Environment-related/MONOZUKURI(productio

148、n)divisions from BUs and key Group companiesPromotion of actions for 3R activities towardrealizing CEEveryquarterSustainableProcurementConferenceChief Procurement Officer,heads of the procurementdivisions at BUs and key Group companies,andindividuals responsible for and engaged in sustainableprocure

149、mentCommunicate the Hitachi Group sustainableprocurement policies and strategies to allprocurement divisions,improve knowledge andshare best practicesEvery half-yearHRDDExecutionManagersMeetingHRDD execution managers from BUs and key GroupcompaniesProvide information and knowledge necessary forHRDD

150、implementation,and share status ofimplementation in BUs and key Group companiesOnce ortwice per yearSenior DEICouncilDEI leaders from each sector and BU(CDEIO and CHRO)Set our DEI Strategy,targets,and global priorityissuesEvery half-yearGlobal DEICouncilDEI leaders from BUs and key Group companiesIm

151、plement DEI policies,initiatives and share bestpracticesOnce pertwo monthsHealth andSafetyLeadersMeetingIndividuals responsible for health and safety at BUs,keyGroup companies(CHRO,officer in charge of health and safety)Instruct and communicate occupational health andsafety activity policies and mea

152、sures,confirmprogress Share the details of important incidents related tooccupational health and safety,discuss measures toensure the prevention of recurrenceOnce per two monthsQA Division-ManagerLiaisonMeetingHeads of the quality assurance divisions at BUs and keyGroup companiesDiscuss and develop

153、shared Hitachi Group qualityimprovement activity policies and measures for products and servicesEveryquarterHitachi Sustainability Report 202425Framework for Implementing the Hitachi GX StrategyAiming to be a global leader in green transformation(GX),Hitachi formulated a Green Strategy consisting of

154、 GX for CORE and GX for GROWTH,striving to put into place a framework to execute our strategy.With the aim of increasing our environmental presence,we established the Environmental Strategy Planning Division in April 2024.This Divisionwill facilitate the development of policies and roadmaps for our

155、Green Strategy as a whole.Based on this strategy,our Internal EnvironmentInitiatives Division(which leads GX for CORE,our environmental activities within the Hitachi Group)and our Global Environment Business Division(which drives GX for GROWTH,Company growth through green businesses)collaborate with

156、 each of our business sectors,all fosteringenvironmental contributions in their respective business fields,to promote the Green Strategy throughout the group.Framework for implementing GX strategyHitachi Sustainability Report 202426ManagementEngagement and LeadershipStakeholder EngagementApproach&Po

157、licyActivitiesIn its commitment to promoting the Social Innovation Business,Hitachi endeavors to accurately identify the various social issues facing eachcountry and region,and to work toward resolution of these issues through engagement in collaborative creation with a wide range of stakeholders,in

158、cluding customers,governments and municipalities,as well as academic and research institutions.In addition,with the goal of enhancing thevalue of our human capital,we work to promote for direct dialogues between the management and employees,who are an essential managementresource.Furthermore,with th

159、e recent rise in ESG investment,we actively engage in dialogues with shareholders and investors as well.Dialogues with StakeholdersDisclosure PolicySustainability LeadershipApproach&PolicyActivitiesHitachi work with diverse global initiatives and organizations to make rules that contribute to the cr

160、eation of a sustainable society and to solvesocial issues.Industry Leadership and Policy RecommendationsAs part of developing Hitachis Social Innovation Business on a global scale,Hitachi views government institutions and private bodies in eachcountry and region of the world as important partners.Ou

161、r Government&External Relations Group leads our efforts to strengthen ties with thesebodies.We collaborate with business locations worldwide to develop mutual relationships with local communities,working with governments andinternational organizations in each country.At the same time,the Group seeks

162、 new business opportunities for Hitachi,creating value based on thevarious regional social issues and policies.More frequently,governments are asking for our opinions.We also contribute to building better societies by making requests directly andproposing solutions through discussions in economic or

163、ganizations and industrial bodies.Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 427Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 428Participation in Government Councils/Business and Industry AssociationsCouncil/GroupParticipantActivitiesPanel Discussion regardingInfrastructure SystemIntern

164、ational ExpansionStrategy 2025(CabinetSecretariat of Japan)Executive Chairman ToshiakiHigashihara (attended as a private sectormember)Proposals regarding appropriate concrete measures to be taken based onthe Japanese governments Infrastructure System International ExpansionStrategy 2025Japan Busines

165、s Federation(Keidanren)Executive Chairman ToshiakiHigashihara (attended as the Vice Chair)Disseminating opinions on important issues such as digital transformation(DX)and green transformation(GX)to accelerate Keidanrens effortsunder the theme of Society 5.0 for SDGs and to establish sustainablecapit

166、alismJapan Electronics andInformation TechnologyIndustries Association(JEITA)President&CEO Keiji Kojima (attended as the Chairman)Examining and making proposals on the promotion of digital technology,data use,and market creation under the mission to achieve Society 5.0 Offering insights into paradig

167、ms of international legislation,agreements,and standards to develop digital trade and strengthen internationalcompetitivenessJapan Electrical ManufacturersAssociation(JEMA)Vice President Kenji Urase (attended as the Director)Promoting the sustainable development of electrical manufacturing bysubmitt

168、ing opinions on various governmental and administrative policiesand promoting product safety awareness,international standardizationand compatibility evaluation,statistical research work,and thedevelopment of human capital for STEM fieldsJapan Machinery Federation(JMF)Executive Chairman ToshiakiHiga

169、shihara (attended as the Chairman)Providing opinions to the Diet and the government,conducting surveysand research on the machinery industry,and promoting internationalstandardization activities for the comprehensive progress anddevelopment of the machinery industryWorld Economic ForumExecutive Offi

170、cers centered onExecutive Chairman ToshiakiHigashihara and President&CEOKeiji KojimaContributing to improve world affairs through discussions toward solvingglobal,regional,and industrial challenges by cooperating with leadersfrom economics,politics,and academia participating in the forum.Signingan o

171、pen letter calling for commitment to net zero,shared globally aheadof COP28,as a member of the Alliance of CEO Climate LeadersJapan-U.S.Business CouncilExecutive Chairman ToshiakiHigashihara (attended as an ExecutiveCommittee member)Exchanging opinions and proposing policies regarding various issues

172、 withJapan-U.S.economic relations from the point of view of the Japan-U.S.business community as a wholeNational Association ofManufacturersHitachi Corporate Office inWashington DCLobbying and making policy proposals,as the largest association ofmanufacturers in the United States,to support the inter

173、nationalcompetitiveness of member corporationsJapan Business Council inEurope(JBCE)Hitachi Europe GovernmentRelations OfficeMaking policy proposals to contribute to the further development of EU-Japan relations and the EU economy as the body representing Japanesecorporations in the EUEfforts in Inte

174、rnational Standardization ActivitiesHitachi considers international standardization as an activity to define the international rules necessary for achieving sustainable societies.Hitachialso recognizes that international standards are stipulated specifications or criteria endorsed by members represe

175、nting specialized fields anddiverse stakeholders through fair discussion and international agreement.Therefore,Hitachi strives to solve social issues from a global perspective,engages in collaborative creation with a diverse range of stakeholders,including national and regional governments,academic

176、and research institutions,corporations,NGOs and NPOs,and users around the world tocreate new social norms(rules),and contribute to sustainable societies through our Social Innovation Business.Hitachi believes international standardization is as important as R&D and intellectual property.Hitachi part

177、icipates actively in standardizationactivities at international standardization organizations that include IEC*1,ISO*2,and ITU-T*3.Hitachi also participates in consortia established invarious regions and industrial fields around the world.For example,Hitachi is engaged in international standardizati

178、on activities in various fields including efforts concerning the circular economy(ISO/TC*4 323),the environmental standardization for electrical and electronic products and systems(IEC/TC111),smart communityinfrastructures(ISO/TC 268/SC*5 1),and unmanned aircraft systems(ISO/TC 20/SC 16).In addition

179、 to the subjects around which there arealready debate and established technical committees within international standard organizations,we also give attention to subjects that still requirea space for international discussion and the creation of an international consensus going forward.For example,IS

180、O/IWA 39*6 was finalized infiscal 2021,and Hitachi is working to create opportunities for various stakeholders to hold concrete discussions and come to an internationalconsensus based on the conclusions of this agreement,in the aim of achieving Society 5.0(an initiative led by the Japanese governmen

181、t that aimsto build a human-centered and sustainable society).Providing solutions consistent with international standards through these international standardization activities,Hitachi supports the sounddevelopment of global markets and facilitate innovation to resolve social issues.*1 IEC:Internati

182、onal Electrotechnical Commission.An international organization composed of member countries and regions.*2 ISO:International Organization for Standardization.An international organization composed of member countries and regions.*3 ITU-T:International Telecommunication Union Telecommunication Standa

183、rdization Sector.A specialized agency of the United Nations.*4 TC:Technical Committee*5 SC:Subcommittee*6 IWA:International Workshop Agreement,an ISO deliverable.ISO/IWA 39 provides gap analysis for standardization on sustainable human-centeredsocieties enabled with cyber physical systems.Participat

184、ion in International Standardization ActivitiesAn employee member of the Hitachi team has been serving as a member of the SMB*,an upper-level committee supervising the IECsstandardization activities,since January 2023.Our employees can also be found in other key international positions,including cha

185、irpersons,secretaries,and committee managers to various bodies,and participate in a variety of technical committees within international standardizationorganizations.In recognition for these contributions to international standardization activities,two Hitachi employees received the IECs 1906Award a

186、nd one employee received an Excellence Award from the ISO in 2023.*SMB:Standardization Management Board.Fifteen members are appointed from IEC member countries.Seven members are elected by the standingmember countries and eight by general election.Structure for Promoting International Standardizatio

187、n Activities at HitachiThe Hitachi Group Standardization Committee has been established to engage with international standardization activities involving groupwidecooperation.The Steering Committee*1 for the Standardization Committee selects areas for Hitachi to prioritize over the medium to long te

188、rm.Each working group engages in detailed discussions and strategic activities toward international standardization.The Hitachi Group Standardization Committee is also working to develop human resources who will promote international standardizationactivities.This includes incorporating internationa

189、l standardization into our training programs for developing business leaders and running aninternal awards program to recognize those who have made contributions through their work for international standardization.*1 Steering Committee:Headed by the executive officer overseeing R&D,this entity incl

190、udes chief technology officers of Hitachi business units and key Groupcompanies.The committee is responsible for decisions on cross-departmental and companywide standardization projects.Hi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 429Hitachi Group Standardization CommitteeMain Initiatives and

191、Groups Hitachi Is Involved withBased on its corporate mission of“contribute to society through the development of superior,original technology and products,”Hitachi promotesits Social Innovation Business with the aim of contributing to the realization of a sustainable society.As part of this,to play

192、 its proper role as aglobal corporation,Hitachi actively participates in international initiatives and groups addressing social issues on a global scale.Initiative or GroupActivitiesUnited Nations GlobalCompact(UNGC)Became a participant in 2009.Joined workshops organized by the Global Compact Networ

193、k Japan(GCNJ)onten different topics in fiscal 2022,including ESG,SDGs,and WEPs(theWomens Empowerment Principles)World Business Councilfor SustainableDevelopment(WBCSD)Became a member in 1995 Adopted SOS 1.5 project in 2020Business for SocialResponsibility(BSR)Became a member in 2007 and has particip

194、ated in the Human Rights WorkingGroup(HRWG)since 2016World Economic ForumParticipated in Davos Forum since 2014Task Force on Climate-related FinancialDisclosures(TCFD)Announced support for TCFD in 2018 and disclosed climate-relatedinformation based on the TCFD recommendationsHi t ac h i Su s t ai n

195、ab i li t y Re po rt 2 0 2 430Initiative or GroupActivitiesJapan Climate Initiative(JCI)Became a member in 2018 Joined the JCI Race to Zero Circle established in 2021The Science Based Targetsinitiative(SBTi)Obtained accreditation of“Targets for 1.5(medium-term targets)”in2020Business Ambition for1.5

196、Became a member in 2020,along with SBT1.5C certificationRace To Zero CampaignJoined in 2020,along with Business Ambition for 1.5C commitmentThe Valuable 500Became a member in 2021ESG Disclosure StudyGroup(EDSG)Participated as a founder and start-up member since 2020Hi t ac h i Su s t ai n ab i li t

197、y Re po rt 2 0 2 431ManagementExternal Assessments and AwardsInclusion in ESG Indices(Hitachi,Ltd.)(Continued inclusion in 2024)MSCI Japan ESG Select Leaders IndexTHE USE BY HITACHI,LTD.OF ANY MSCIESG RESEARCH LLC OR ITS AFFILIATES（“MSCI”）DATA,AND THE USE OF MSCILOGOS,TRADEMARKS,SERVICE MARKSOR INDE

198、X NAMES HEREIN,DO NOTCONSTITUTE A SPONSORSHIP,ENDORSEMENT,RECOMMENDATION,ORPROMOTION OF HITACHI,LTD.BY MSCI.MSCI SERVICES AND DATA ARE THEPROPERTY OF MSCI OR ITSINFORMATION PROVIDERS,AND AREPROVIDED AS-IS AND WITHOUTWARRANTY.MSCI NAMES AND LOGOSARE TRADEMARKS OR SERVICE MARKSOF MSCI.(Selected in 202

199、3)MSCI Nihonkabu ESG Select Leaders IndexTHE INCLUSION OF HITACHI,LTD.IN ANYMSCI INDEX,AND THE USE OF MSCILOGOS,TRADEMARKS,SERVICE MARKSOR INDEX NAMES HEREIN,DO NOTCONSTITUTE A SPONSORSHIP,ENDORSEMENT OR PROMOTION OFHITACHI,LTD.BY MSCI OR ANY OF ITSAFFILIATES.THE MSCI INDEXES ARE THEEXCLUSIVE PROPER

200、TY OF MSCI.MSCIAND THE MSCI INDEX NAMES ANDLOGOS ARE TRADEMARKS OR SERVICEMARKS OF MSCI OR ITS AFFILIATES.(Continued inclusion in 2024)FTSE4GoodFTSE Russell(the trading name of FTSEInternational Limited and Frank RussellCompany)confirms that Hitachi,Ltd.hasbeen independently assessed according tothe

201、 FTSE4Good criteria,and has satisfied therequirements to become a constituent of theFTSE4Good Index Series.Created by theglobal index provider FTSE Russell,theFTSE4Good Index Series is designed tomeasure the performance of companiesdemonstrating strong Environmental,Socialand Governance(ESG)practice

202、s.TheFTSE4Good indices are used by a widevariety of market participants to create andassess responsible investment funds andother productsHitachi Sustainability Report 202432Hitachi Sustainability Report 2024(Continued inclusion in 2024)FTSE Blossom Japan IndexFTSE Russell confirms that Hitachi,Ltd.

203、hasbeen independently assessed according tothe index criteria,and has satisfied therequirements to become a constituent of theFTSE Blossom Japan Index.Created by theglobal index and data provider FTSE Russell,the FTSE Blossom Japan Index is designedto measure the performance of companiesdemonstratin

204、g strong Environmental,Socialand Governance(ESG)practices.The FTSEBlossom Japan Index is used by a widevariety of market participants to create andassess responsible investment funds andother products(Continued inclusion in 2024)FTSE Blossom Japan Sector Relative IndexFTSE Russell confirms that Hita

205、chi,Ltd.hasbeen independently assessed according tothe index criteria,and has satisfied therequirements to become a constituent of theFTSE Blossom Japan Sector Relative Index.The FTSE Blossom Japan Sector RelativeIndex is used by a wide variety of marketparticipants to create and assess responsiblei

206、nvestment funds and other products(Continued inclusion in 2024)S&P/JPX Carbon Efficient IndexExternal Assessments Related to ESG(Awarded in 2023)Terra Carta SealHitachi,Ltd.has been awarded the 2023Terra Carta Seal by the Sustainable MarketsInitiative.The Terra Carta Seal recognizesglobal companies

207、that are actively leading thecharge to create a climate and nature-positivefuture.(Awarded in 2024)SX BrandHitachi,Ltd.has been selected as a SX Brand2024 by the Ministry of Economy,Trade andIndustry and the Tokyo Stock Exchange.Theaim of the SX Brand project is to select andaward a group of progres

208、sive companies thatenhance their ability to create a source offunds for growth in a sustainable manner andincrease corporate value throughsustainability transformation*1.*1 SX Brand is an initiative in which companiesstrive to improve long-term and sustainablecorporate value by synchronizing thesust

209、ainability of society with that of itself whilecarrying out the necessary management andbusiness reforms to achieve suchsynchronization.(Rated in 2024)MSCIHitachi,Ltd.earned an AA rating under theMSCI ESG Rating.Hitachi Sustainability Report 202433Hitachi Sustainability Report 2024(Rated in 2023)CDP

210、Hitachi,Ltd.was selected for the CDPs AList,the highest rating for climate change,forthree consecutive years.A List,the highestrating given by the CDP for companies,in thetwo areas of climate change and watersecurity.The company is also selected as aSupplier Engagement Leader,the highestrating for s

211、upplier engagement.(Continued inclusion in 2023)ISS ESGHitachi,Ltd.has also been certified as Primein the ESG Corporate Rating by ISS ESG.Human Resources Awards and RecognitionKurumin CertificationHitachi,Ltd.received Kurumin certification from the Ministry of Health,Labour and Welfare in 2011.This

212、certification was granted underJapans Act on Advancement of Measures to Support Raising Next-Generation-Children,in recognition of Hitachis achievement indeveloping and implementing action plans supporting child care,helping employees work with the peace of mind that comes from agood work-life balan

213、ce.In addition to Hitachi,Ltd.,several other groupcompanies in Japan received Kurumin certification including HitachiHigh-Tech,Hitachi Systems,and Hitachi Solutions.Eruboshi CertificationHitachi,Ltd.pursue diversity as an important component ofmanagement strategy and strives to create work environme

214、nts thatenable diverse talent to play active roles.In recognition of theseinitiatives,we received Eruboshi certification,which is conferred tocompanies that implement exceptional measures under Japans Act onPromotion of Womens Participation and Advancement in theWorkplace.In addition to Hitachi,Ltd.

215、,several other group companiesin Japan have received Eruboshi certification,including Hitachi High-Tech,Hitachi Systems,and Hitachi Solutions.Hitachi Sustainability Report 202434Hitachi Sustainability Report 2024Received Award in the Technology Utilization Categoryat the 2024 Nikkei Smart Work Award

216、sHitachi,Ltd.received an award in the Technology Utilization Categoryat the 2024 Nikkei Smart Work Awards sponsored by Nihon KeizaiShimbun,Inc.This award recognizes advanced companies thatincrease productivity and achieve sustainable growth through workstyle reform.Hitachi,Ltd.received the highest o

217、verall ranking of 5 stars(deviation value of 70 or higher),receiving the highest level of S+inall three evaluation categories.In addition to efforts to improve inter-organizational communication using AI and the use of AI atmanufacturing sites,Hitachi also received high praise for its efforts tospee

218、d up the search for materials that are likely to have desiredproperties by introducing materials informatics that utilize knowncompound data accumulated by its unique natural language processingtechnology and new compound data generated by AI.Hitachi alsoreceived high scores in technology evaluation

219、s by reporters.Hitachi received Award in the Technology Utilization Category at the2024 Nikkei Smart Work Awards(Japanese only)Awarded Gold in the 2023 Pride IndexHitachi,Ltd.has been recognized for its efforts to promote diversity,equity and inclusion,including LGBTQIA+groups.Hitachi,Ltd.received t

220、he Gold award,the highest award in the 2023 Pride Index,which is an index sponsored by work with Pride that evaluatesinitiatives related to sexual minorities.Pride Index(Japanese only)Awarded Human Capital Leaders and Human CapitalManagement Quality(Gold)in the 2023 Human CapitalSurveyHitachi,Ltd.ha

221、s been awarded the Human Capital Leaders andHuman Capital Management Quality(Gold)in the 2023 Human CapitalSurvey jointly conducted by the HR Technology Consortium,HRResearch Institute(ProFuture Inc.),and MS&AD Interrisk Research&Consulting,Inc.The survey investigates the status of efforts bycompani

222、es and organizations regarding their human capitalmanagement and disclosure.Hitachi,Ltd.has been continuouslyworking on the evolution of human capital management for more than10 years,and has implemented this framework on a global basis.Consequently,Hitachi received the awards in recognition of its

223、clearand detailed disclosure of the link between its management and humanresources strategies.Hitachi,Ltd.receives the Human Capital Leaders and Human CapitalManagement Quality(Gold)awards in the 2023 Human Capital Survey(Japanese only)Ranked First in industry for Four Consecutive Years inNikkei Wom

224、ans 100 Best Companies Where WomenActively Take PartHitachi,Ltd.has claimed top spot for the fourth consecutive year in the2024 edition of Nikkei Womans 100 Best Companies Where WomenActively Take Part in the electrical,machinery,and automobile-relatedindustry category(36th out of 479 responding com

225、panies in allindustries).This survey measures and gives scores based on fourindicators:1)promotion to managerial positions,2)promotion ofwomens active engagement,3)work-life balance and 4)workstylediversity.In addition to career support including mentoring for womenand dialogue with top executives,H

226、itachi has been strengthening itsequality and inclusion measures,such as establishing a womenshealth consultation desk,striving to create an environment in which allemployees can thrive.Hitachi Sustainability Report 202435Hitachi Sustainability Report 2024Social Innovation BusinessSocial Innovation

227、BusinessAiming for a Sustainable SocietyApproach&PolicyHitachi has identified six material topics and 15 sub-material topics as important management issues and pursues sustainability management asthe core of business strategy.The Mid-term Management Plan 2024 focuses on business that emphasizes both

228、 environmental challenges and the wellbeing of each and everyperson.Based on this strategy,we strive to grow and expand our Social Innovation Business.Hitachis Social Innovation BusinessApproach&PolicyHitachi aims to support peoples quality of life with data and technology that fosters a sustainable

229、 society,while respecting planetary boundariesand realizing wellbeing for all individuals.The key to achieving this goal is the growth of our Social Innovation Business,which is business thatprovides solutions for social and customer challenges through co-creation with various partners by leveraging

230、 IT x OT x Products and Lumada.Hitachis Social Innovation Business CasesActivitiesMaterialityAdvancing a Sustainable Energy Future for AllHitachi Energy is a global technology leader that is advancing a sustainable energy future for all and supporting the worldwide efforts in reducingthe impact of g

231、reenhouse gases.The elimination of SF6 from high-voltage electrical substation equipment is widely accepted as being animportant step toward reaching carbon neutrality and enabling more sustainable grid operations.EconiQ,Hitachi Energys eco-efficient portfoliofor sustainability,accelerates the indus

232、trys transition away from SF6 with products,services,and solutions,that are proven to deliver exceptionalenvironmental performance.Over the last two years,Hitachi Energy has made substantial progress in commercializing high-voltage EconiQ products that eliminate SF6 withscalable solutions for the lo

233、west carbon footprint.Various high-voltage SF6-free EconiQ products have been installed across the globe,including72.5 and 145-kilovolt(kV)Live Tank Breakers,145 kV gas-insulated switchgear,and 420 kV gas-insulated lines.An important milestone was the launch of the 420 kV SF6-free circuit breaker in

234、 2022,a breakthrough technology that unlocks the widest range ofeco-efficient switchgear applications and accelerates the energy transition.Another innovation,EconiQ retrofill,replaces SF6 in installed high-voltage gas-insulated lines with an eco-efficient gas mixture to improve the environmental an

235、d life cycle performance of the equipment.Thecommercialization of SF6-free alternatives is important as it unlocks new decarbonization pathways for transmission system operators.HitachiEnergy is reinforcing its commitment toward a carbon-neutral energy future through EconiQ.Addressing the growing de

236、mand for eco-efficientsolutions,Hitachi Energy will continue to expand the SF6-free portfolio across the entire high-voltage switchgear range,demonstrating thescalability of the portfolio and strengthening the companys position as a sustainable technology leader within the industry.Hi t ac h i Su s

237、t ai n ab i li t y Re po rt 2 0 2 436EconiQ of Hitachi EnergyCo-creation on Advanced Technologies Leading Environmental and Social Value CreationIn Andorra,Hitachi Energy is working as a partner with the countrys public electricity supplier,Forces Elctriques dAndorra(FEDA),to meetgrowing electricity

238、 demand while protecting the natural environment and peoples livelihoods.Located inland in Europe with an area of 468km2,approximately 92%of Andorras land is covered in forest.The country therefore puts great effort into environmental conservation to mitigate theeffects of climate change.Hitachi Ene

239、rgy provides a new renewable energy solution that can guarantee the growth of the electricity supply while working on FEDAs LaGonarda substation to optimize the distribution of electricity between two valleys in the north of the country.Operations at this substation havebeen made possible through co

240、llaboration between companies that share a common vision and passion for a sustainable energy future.Whenbuilding the substation,environmental impact study was conducted to check the impact on local residents,flora and fauna and to ensure thesubstations efficiency.Measures are then taken to minimize

241、 the impact on the environment when building substations in woodland close toresidential areas.During this process,Hitachi Energy was selected by FEDA as a partner capable of providing sustainable and environmentallyfriendly power equipment.Specifically,Hitachi Energy provided Europes first EconiQ t

242、ransformer to FEDA.As well as its low carbon footprint,Hitachi Energys 20/26 MVA,106/21 kV three-phase power transformer also emits extremely low levels of noise,minimizing noise disturbance to local residents and wildlife.It is also insulated and comes with optimal cooling technology to suppress vi

243、bration and electromagnetic interference beyond required standards.To further improve safety,the transformer was filled with high fire point fluid and inside a room with an isolating wall.Those supplementarycharacteristics not only help in reducing noise levels but also contribute to physically isol

244、ate the transformer to create extra containment levels incase of transformer failure.The collaboration between FEDA and Hitachi Energy has improved operational efficiency and reduced the carbon footprint by approximately 15%compared to conventional designs.Hitachi Energy also provides a Life Cycle A

245、ssessment(LCA)report to enable FEDA to make decisions basedon a thorough assessment of the transformers environmental performance and service life as an asset.A disposal manual is also provided toensure that,when the time comes to dispose the transformer,materials are salvaged safely and with minima

246、l impact on the environment.This project,with co-creation at its heart,considers the lifecycle from raw material procurement to disposal at every stage of the order process toproduct evaluation.Hitachi Energy will continue to work towards achieving a decarbonized society through its business.FEDAs L

247、a Gonarda substation equipped with a Hitachi Energy EconiQ transformerHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 437Hitachi Rail Develops Europes First Tribrid TrainAs the EU and European governments set goals to achieve net zero by 2050,decarbonization solutions are being sought for various

248、 transport.Due to cost of new infrastructures,there are thousands of tracks that are unlikely to be electrified in Europe.Electrification,construction andmaintenance of overhead lines are costly and take time to deliver.As a result,the proportion of electrified railway lines across Europe remainsbel

249、ow 60%.To address such social challenges,Hitachi Rail has developed Europes first tribrid train derived from Hitachi Rails Masaccio Platform and called“Blues”in collaborations with the customer.Blues is a train that runs off three different power sources that include electricity,batteries,and a dies

250、elengine.On electrified routes,it uses pantographs to draw power from the overhead lines,but on non-electrified lines,it primarily operates usingbatteries.When the batteries are low on charge,it switches to the diesel engine.This flexibility enables the train to operate smoothly andseamlessly on bot

251、h electrified and non-electrified sections,reducing CO2 emissions and saving fuel.Furthermore,by shutting off the engine whenapproaching,stopping at,and departing from stations,fuel consumption can be reduced by up to 50%compared to conventional diesel trains,witha significant reduction in noise as

252、well.Moreover,the Blues is equipped with the European Rail Traffic Management System(ERTMS),a single European signaling and speed controlsystem that ensures operability across national railway systems.ERTMS monitors and controls train speed,acceleration,and braking systems tooptimize energy consumpt

253、ion and reduce CO2 emissions,while automatically activating train safety features in an emergency.Every feature and solution are designed to optimize energy consumption,such as the innovative air conditioning system that regulates itsfunctioning based on real time number of passengers on board and t

254、he LED lighting system that contributes to save energy significantly.Blues Train introduction not only addresses environmental concerns but revolutionizes the passenger experience thanks to its distinctive designimproved by merging Italian and Japanese cutting-edge technologies and well-proof know-h

255、ow in the industry.The four-car layout can host up to300 passengers,reaching a maximum speed of 160 km/h,thereby enhancing performance and reducing journey times.Blues Train embraces the most innovative solutions to improve passengers journey(e.g.passengers information screens,passengers countingtec

256、hnology,drinks and snacks dispenser area,bike areas and high luggage transport capacity,USB and 220V power sockets for greaterconnectivity)and ensures passengers safety controls thanks to closed-circuit television(CCTV)surveillance.Hitachi Rail has delivered the Blues model to Italys railway operato

257、r,Trenitalia.Trenitalia is on track to modernize its trains and transform regionalrailway systems with Blues trains now operating in eight regions across the country.Looking ahead,Hitachi Rail aims to leverage its advancednext-generation hybrid technology to support Europes train operators and their

258、 moves toward decarbonization,while offering secure,comfortable,and highly convenient transportation options.Blues is Europes first tribrid train developed by Hitachi RailHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 438Supporting High-capacity EV Charging at Major Commercial Truck DepotHitachi

259、 Energy is supporting US-based Penske in its efforts to deploy electric vehicles to its customers by providing the state-of-the-art Grid-eMotion Fleet EV charging system.Grid-eMotion Fleet is an integrated DC fast-charging grid-to-plug charging solution.Penske is rolling this outat a major commercia

260、l truck depot in Stockton,California,to support high-capacity charging for its electric vehicles.In this groundbreaking project,Grid-eMotion Fleet offers scalability and multi-megawatt high-power charging capacity tailored to meet thedemanding requirements of truck fleets of varying sizes.System fea

261、tures include space savings of up to 60 percent compared to conventionalcharging systems,and reduced cabling needs by up to 40 percent,all while maintaining high-capacity charging performance.Investing in electric vehicle and charging solutions enables customers to decarbonize their fleets and compl

262、y with emissions regulations.As such,building a robust public and private charging infrastructures is essential.Penske has been a pioneer in adopting battery electric commercialvehicles and has made substantial investments in testing,maintaining,and expanding charging infrastructure to support these

263、 vehicles.Thecompany has been continually testing and operating EV trucks across its leasing,rental and logistics fleets in various industries including retail,manufacturing,grocery,quick-service restaurant chains,medical,and automotive parts.Hitachi Energys Grid-eMotion Fleet charging system in Sto

264、ckton is already being used to charge a growing number of small,medium and heavy-duty trucks.Its 10 charging stations can simultaneously charge 10 trucks at a maximum of 100kW each,or five trucks at a maximum of 200 kWeach,showcasing its versatility and scalability for Penskes fleet operations.Addit

265、ionally,Hitachi and Penske are exploring AI-based smart charging solutions to optimize vehicle charging processes.This endeavor isexpected to unlock fresh prospects in service,maintenance and electric vehicle charging throughout Penskes fleet.Penskes EV charging station equipped with Hitachi Energys

266、 charging solution,Grid-eMotion FleetHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 439Consolidated Digital Backup to Boost CybersecurityHitachi Vantara has developed a robust data protection and digital backup system for Germanys RWTH Aachen University,helping the universitybolster its cybersec

267、urity measures.The German State of North Rhine-Westphalia(NRW)is a leading industrial region in Germany and home to 18.1 million people.NRW is focusingon strengthening the digital capabilities of its 42 public universities and higher education institutions to improve and streamline services across t

268、hehigher education sector.As part of this innovation program,NRW has decided to consolidate digital infrastructure services,including data backupand recovery.RWTH Aachen University,one of Germanys Universities of Excellence and home to over 47,000 students,has been spearheading the drive tocreate a

269、standardized backup and recovery service.Traditionally,the design and operation of data backup and recovery processes and solutionsat universities in NRW varied by school,faculty,and research institute,with some more reliable than others.To boost productivity acrossuniversities,increase cost-efficie

270、ncy and strengthen protection against cyberthreats such as ransomware,the state decided to fund a project tobuild a consolidated digital infrastructure service for all universities.Working closely with Hitachi Vantara,RWTH deployed Hitachi Content Platform(HCP),a high-performance,scalable distribute

271、d object storagesolution,across six data centers at RWTH Aachen.The system was built with six clusters,each with 12 nodes and a total capacity of 56 PB,toensure that if one location fails due to a major disaster such as a power outage or fire,there will be no impact for users or mission-critical dat

272、a.The university also launched a large-scale IT service program called Datensicherung.NRW(NRW Data Backup),available to all universities in thestate,with the HCP playing a crucial role in its operation.By utilizing NRW Data Backup,universities in the state of NRW can more easily and cost-efficiently

273、 minimize the risk of data loss.RWTH Aachen University has deployed the Hitachi Content Platform(HCP)to its data centersRWTH Aachen Enhances Cybersecurity with Scalable Object Services|RWTH Aachen University Customer Story|Hitachi VantaraHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 440Initiati

274、ves to Develop HealthcareAmong numerous social issues,the increasing prevalence of serious illnesses such as cancer accompanying an aging population is becoming asignificant challenge not only in Japan but also worldwide.Because of this,there are high hopes for development in the healthcare field.Th

275、roughcollaborative creation with medical and pharmaceutical professionals,Hitachi is contributing to the development of global healthcare,includingearly detection of diseases and less invasive treatments,by promoting the advancement and digitalization of diagnosis and treatment.In the field of diagn

276、ostics,Hitachi primarily develops and provides measurement and analysis systems used in the biomedical and life sciencefields,supporting accurate and reliable in vitro diagnosis.In the field of clinical chemistry and immunological blood testing,in particular,HitachiHigh-Tech analytical systems are u

277、sed to conduct approximately 20 billion tests per year,supporting the advancement of diagnosis and therapyplanning around the world.With regard to new in-vitro diagnostics,we have invested in U.S.company Invivoscribe,Inc.,a global provider of testingservices mainly for blood cancers,collaborating wi

278、th them to advance molecular diagnostics.This collaboration will enable us to contribute to theearly detection of cancer,therapy planning,and drug development by pharmaceutical companies,leading to healthier and safer societies.Additionally,we have begun developing a new genetic testing system in co

279、llaboration with Sysmex Corporation.This genetic testing system will bedeveloped based on Hitachi High-Techs capillary electrophoresis sequencer.Initially focusing on clinical implementation in the field of cancer,theaim is to gradually expand into other disease areas.Hitachi High-Tech has opened th

280、e Healthcare Innovation Center Tokyo,an integrated laboratory near Tenkubashi Station in the Haneda area,which serves as a place for collaborative creation with customers and knowledge sharing.We will use the innovations created at the center toimprove the quality of life for people all over the wor

281、ld.Hitachi has been actively engaged in advancing radiation cancer therapy and regenerative medicine in therapeutics.Radiation therapy is a cancertreatment method that involves treating the affected area without the need for surgical removal,thereby putting the body under relatively lessstress.In Ma

282、y 2023,Taiwans first heavy ion therapy system commenced operations at Taipei Veterans General Hospital.Additionally,in July,theHKSH Medical Group,with the Hong Kong Sanatorium&Hospital under its umbrella,and in August,the National Cancer Centre Singapore,started operations of proton therapy systems,

283、reflecting the growing use of radiation therapy systems around the world.To date,more than100,000 patients have been treated with Hitachis system(as of December 2023).In addition,by leveraging our expertise accumulated in radiation therapy systems,we have developed a new X-ray therapy equipment,the

284、OXRAYlinear accelerator,taking it to market in July 2023.Hitachi will contribute to the further development of cancer treatment by providing minimallyinvasive,cost-effective radiotherapy systems that are tailored to each patient,helping to create a society without fear of cancer.In regenerative medi

285、cine and cell therapy,we are conducting joint research with Kyoto University and Rebirthel Co.,Ltd.to promote the use ofallogeneic T-cell therapy,an effective treatment for cancer.The widespread use of allogeneic T-cell therapy,which is more versatile and allows forthe treatment of larger numbers of

286、 patients,will require the development of automated cell culture technology that supplies large quantities of cellswith consistent quality.Hitachi will contribute to the practical application of this technology through this joint research.We have also begun joint research with Mass General Brigham(M

287、GB)of Harvard Medical School,the world-renowned medical research institutionin the United States,in the field of gene and cell therapy to overcome intractable diseases.Hitachi will leverage its diverse technology portfolio,including its automated cell culture and digital technologies,to contribute t

288、o the practical application of the new therapy pioneered by MGB.In April 2024,Hitachi integrated some if its businesses,including its radiation therapy system and automated cell culture system for regenerativemedicine,into Hitachi High-Tech.By further integrating digital technologies into diagnosis

289、and treatment,we aim to create healthcare innovations,from high-quality,high-function diagnostics and minimally invasive treatments,to optimal diagnosis and treatment,and personalized medicine.Healthcare Innovation Center TokyoThe OXRAY linear acceleratorHi t ac h i Su s t ai n ab i li t y Re po rt

290、2 0 2 441Creating a Happy WorkplaceThe change from the mass production and consumption society of the 20th century to a 21st century society that values the environment anddiversity is rapidly occurring.So there is a growing movement to review companies,work styles,and communities from the perspecti

291、ve ofhappiness or,in other words,wellbeing.Hitachi established Happiness Planet,Ltd.in 2020 to develop software applications and services that use data to enable people and groups to behappy and productive.By analyzing large amounts of data,we discovered that people in happy and productive groups ar

292、e more likely to havetriangular-shaped connections,whereas those in unhappy groups have V-shaped ones.The Happiness Planet application helps to create suchtriangular connections,i.e.Factor X for happy and productive people.Since organizations tend to have V-shaped or vertical relationships with peop

293、le,we use digital technology to help establish the triangularrelationships that lead to the creation of happy and productive groups.Facilitated by smartphone or PC apps,people are put into groups of threeeach week in order to create triangular connections and interactions that lead to mutual underst

294、anding.By fiscal 2023,Happiness Planet have provided services to 200 companies and over 40,000 users.This creation of triangular relationships wasfacilitated in a wide range of organizations in various sectors,from large corporations to small-and medium-sized enterprises,in areas rangingfrom IT,manu

295、facturing,finance,healthcare,and nursing.All Nippon Airways Co.,Ltd.(ANA)held a team competition event called the ANA GroupHappiness Cup using the Happiness Planet app to give employees a better sense of connection between each other and help stimulatecommunication.The Hitachi Group used this app to

296、 create triangular relationships between new employees.Use of the app strengthened peerrelationships,increased employee motivation,and improved performance in examinations for IT certifications.Working with various partners toleverage our strengths in IT,OT,and products,Hitachi will continue to purs

297、ue initiatives to create happy workplaces,happy lives,and wellbeing insociety.Triangular Relationships Essential for Wellbeing in anOrganizationSmartphone App ScreenshotHi t ac h i Su s t ai n ab i li t y Re po rt 2 0 2 442EnvironmentalAdvancing Our Environmental Vision and Long-term EnvironmentalTa

298、rgets“Environmental Vision”and“Hitachi Environmental Innovation 2050”Approach&PolicyStrategy&TargetTaking into account the growing urgency of environmental issues in the world and the management policies,Hitachi formulated an EnvironmentalVision that clearly outlines our vision for society from a lo

299、ng-term perspective.In working toward achieving this vision,we have established a set oflong-term environmental targets aimed at building a decarbonized society,a resource-efficient society,and a harmonized society with nature underthe banner of Hitachi Environmental Innovation 2050 and are working

300、to advance them.With the aim of achieving a decarbonized society and based on the Paris Agreement and the discussions within the international community thatfollowed its signing,Hitachi has set targets aimed at limiting the average global temperature rise to 1.5C as compared to pre-industrial levels

301、.Hitachi set the goal of achieving carbon neutrality by fiscal 2030 in our factories and offices,and by fiscal 2050 throughout our value chain.We arecurrently engaged in measures to achieve these goals.To meet our goal of Achieving a Resource-Efficient Society,we aim to create a sustainable society,

302、while keeping the transition to a circulareconomy in mind,by improving the efficiency of water and resources use at Hitachi by 50%by fiscal 2050(compared to fiscal 2010 levels).To meet our goal of Achieving a Harmonized Society with Nature,we strive to minimize our impact on natural capital by keepi

303、ng a close eye oninternational initiatives such as the 15th Conference of the Parties(COP15)to the Convention on Biological Diversity,held in December 2022,andthe Task Force on Nature-Related Financial Disclosure(TNFD).Hitachis environmental initiatives,including the achievement of these long-term e

304、nvironmental targets,are mandated by the short-termEnvironmental Action Plan which is updated every three years and pursued Groupwide.Achieving a Decarbonized SocietyAchieving a Resource-Efficient SocietyAchieving a Harmonized Society with NatureEnvironmental Vision and Long-term Environmental Targe

305、ts:Hitachi Environmental Innovation 205043Hitachi Sustainability Report 2024Progress in Reaching Hitachi Environmental Innovation 2050 TargetsActivitiesWe are making progress with major Hitachi Environmental Innovation 2050 targets,as shown below.We are generally on track,and we willcontinue strengt

306、hening our environmental activities to achieve these targets.Regarding our long-term value chain target to help build adecarbonized society,we are developing activities which help to reduce CO2 emissions by providing products with top-tier environmentalperformance.For a Decarbonized SocietyReduced C

307、O2 Emissions at Business Sites(Factories and Offices)FY2023TargetFY2023ResultFY2030TargetFY2050TargetReduction Rate of Total CO2(Compared to FY2010 Hitachi Group)35%74%CarbonNeutralityCarbonNeutralityActivities and Achievements at Business Sites(Factories and Offices)For a Resource Efficient Society

308、Enhanced Efficiency in the Use of Waste and Valuable Generation at Business Sites(Factories and Offices)FY2023TargetFY2023ResultFY2030TargetFY2050TargetReduction Rate in Waste and Valuables Generation per Unit(Comparedto FY2010 Hitachi Group)17%15%50%reductionManagement of Waste and Valuables Genera

309、ted at Business SitesEnhanced Efficiency in the Use of Water at Business Sites(Factories and Offices)FY2023TargetFY2023ResultFY2030TargetFY2050TargetReduction Rate in Water Use per Unit(Compared to FY2010 HitachiGroup)23%30%50%reductionManagement of Water Use at Business Sites44Hitachi Sustainabilit

310、y Report 2024Green StrategyApproach&PolicyGreen Strategies for Sustainable GrowthThrough its Social Innovation Business,Hitachi is leading the way in resolving global environmental issues,helping to create a sustainable societythat balances protecting the global environment with quality of life(QoL)

311、.To realize this vision,Hitachi is promoting a green strategy consisting of two pillars.The first pillar,known as GX for CORE,accelerates the HitachiGroups own green transformation.The second pillar,GX for GROWTH,provides innovative solutions,strongly supporting green transformation for customers an

312、d society.By working on both pillars,GX for CORE and GX for GROWTH,Hitachi will accelerate the deeper development of technology and expertise,thusimproving the environmental value it provides on a continued basis.Through the steady implementation of our green strategy,we will acceleratethe realizati

313、on of a decarbonized society,a resource-efficient society,and a society in harmony with nature,paving the way for a sustainable futurewhere people can live with peace of mind.The Hitachi Green Strategy45Hitachi Sustainability Report 2024Environmental Action PlanApproach&PolicyTo achieve its Environm

314、ental Vision and the Hitachi Environmental Innovation 2050 long-term environmental targets,Hitachi draws up anEnvironmental Action Plan containing indicators and targets for the three-year period covered by the Mid-term Management Plan and steadilypromotes its implementation.Environmental Action Pla

315、n for 2024(Fiscal 20222024)Hitachi pursues environmental activities under the Environmental Action Plan for 2024(Fiscal 20222024)that were based on the 2024 Mid-termManagement Plan.The targets set for fiscal 2023 and our results are as follows.Environmental Action Plan for 2024Our environmental acti

316、vities and targets are updated every three years with a view to achieving our long-term environmental targets.Environmental ManagementItemsIndicatorsFY2023TargetsFY2023Results(Achievement Level)Final FY(2024)TargetsEnvironmentalhuman capitaldevelopmentPromoteenvironmentalhuman capital developmentPro

317、mote environmental human capitaldevelopmentEnvironmental human capital development mindfulof changes in personnel composition,includinggenerational shifts A Decarbonized Society:Achieved,:Partially achievedItemsIndicatorsFY2023TargetsFY2023Results(Achievement Level)Final FY(2024)TargetsFactories and

318、officesReduce total CO2Reduction rate of total CO2*1(compared toFY2010)35%74%50%Improvetransportationenergyconsumption per unit(Japan)Improvement rate of transportation energyconsumption per unit(Japan)*2(compared to FY2020)3%30%4%Products andservicesReduce CO2emissions ofproducts andservicesReducti

319、on rate of CO2 emissions per unit(compared to FY2010)13%24%14%CO2 avoided emissionsTarget:CO2 avoided emissions of 100 million metrictons per year(FY2024)Forecast:CO2 avoided emissions of 153 millionmetric tons per year*3Promote eco-designEnvironmentally conscious design assessmentsand LCA applicati

320、on rates for newly developedand designed productsTarget:Full application Eco-Design for all newlydeveloped products FY2023 Results:198 products identified as subjectof Eco-Design46Hitachi Sustainability Report 2024 A Resource Efficient Society:Achieved,:Partially achievedItemsIndicatorsFY2023Targets

321、FY2023Results(Achievement Level)Final FY(2024)TargetsProducts andservicesPromote eco-designEnvironmentally conscious design assessmentsand LCA application rates for newly developedand designed productsTarget:Full application Eco-Design for all newlydeveloped products FY2023 Results:198 products iden

322、tified as subjectof Eco-DesignFactories andofficesEnhanceefficiency in theuse of resourcesNumber of sites achieving zero landfill waste*4124146158Reduction rate in waste and valuablesgeneration per unit(compared to FY2010)17%15%20%Reduction rate in water use per unit(comparedto FY2010)23%30%24%Effec

323、tive utilization rate of plastic waste81%96%85%Water risksRespond to waterrisksResponding to water risksMinimization of business impacts regarding waterrisks A Harmonized Society with Nature:Achieved,:Partially achievedItemsIndicatorsFY2023TargetsFY2023Results(Achievement Level)Final FY(2024)Targets

324、Water risksRespond to waterrisksResponding to water risksMinimization of business impacts regarding waterrisksChemicalsubstanceReduce chemicalemissionsReduction rate in chemical atmosphericemissions per unit(compared to FY2010)6%22%8%EcosystempreservationImpact on naturalcapitalCalculation of negati

325、ve impacts(business unit/group company-level LCA implementation)/Calculation ofpositive impacts(forest conservation activities)*1 Reduction rate of total CO2:Indicator representing CO2 emissions from Hitachis consumption of energy alone*2 This is a target for Japan only.Targets in other countries ar

326、e set on a voluntary basis*3 Three-year average*4 Pursued in assumed conformance with regulations,conditions,etc.Less than 0.5%47Hitachi Sustainability Report 2024EnvironmentalEnvironmental GovernanceFramework for Promoting Environmental GovernanceStructureTo achieve our Environmental Vision and Hit

327、achi Environmental Innovation 2050 long-term targets,Hitachi is building a global system to supportdecision-making and environmental management for a total of 574 companies,comprising Hitachi,Ltd.and 573 consolidated subsidiaries(as ofMarch 31,2024).In fiscal 2022,we established the Sustainability P

328、romotion Meeting,chaired by the Chief Sustainability Officer and consisting mostly of managersfrom each business unit(BU)and major group company.The purpose of these meetings is to discuss and share information related toenvironmental issues and other important matters related to sustainability.The

329、Senior Executive Committee discusses and makes decisionsrelated to important environmental matters for achieving our long-term environmental targets,including decarbonization,water use,and resourcecirculation.Matters are referred to the Board of Directors when necessary.Hitachi established separate

330、meetings to address important topics such as carbon neutrality and the circular economy.The main membersattending these meetings are individuals responsible for environmental activities at each BU and major group companies.Through these meetings,we pursue environmental activities across the Hitachi

331、Group,examining measures and sharing information.Aiming to be a global leader in green transformation(GX),Hitachi formulated a Green Strategy consisting of GX for CORE and GX for GROWTH,striving to put into place a framework to execute our strategy.In an effort to enhance our presence in the environ

332、mental field,we established our Environmental Strategy Planning Division in fiscal 2024.ThisDivision will develop policies and a comprehensive roadmap for our Green Strategy.Based on this strategy,our Internal Environment InitiativesDivision leads environmental activities(GX for CORE)within the Hita

333、chi Group.At the same time,the Global Environment Business Group drivesgrowth(GX for GROWTH)through green businesses.In addition,the business sectors foster environmental contributions through their respectivebusiness fields,collaborating to implement green strategies across the group.Hitachi,Ltd.,a company with a Nominating Committee,etc.under the Companies Act,has adopted a committee system to s