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Hitachi Sustainability Report 2019 Fiscal 2018 Results Hitachi Social Innovation Contents 45 Contributing to a Low-Carbon Society at Factories 124 Customer Satisfaction 02 Introduction and Offices 127 Community 02 How to Use This Report 50 Climate-related Information Disclosure 127 Social Contribution Activities 02 Editorial Policy (Based on TCFD Recommendations) 04 Hitachi Group Profile 55 Achieving a Resource Efficient Society 55 Efforts to Achieve a Resource Efficient Society 132 Governance 55 Enhancing Efficiency of Water Usage 133 Corporate Governance 07 Management 58 Improving Efficiency in the Use of Resources 141 Compliance 08 CEO’s Message 62 Achieving a Harmonized Society with Nature 142 Sharing Our Codes of Conduct and Values Across 10 Executive Officer’s Message: CSR and 62 Efforts to Achieve a Harmonized Society with Nature the Group the Environment 63 Managing and Reducing Chemical Substances 144 Promoting Work Practices in Line with International 12 Corporate Credo 67 Preserving Ecosystems Ethics Codes 12 Hitachi Group Identity 70 Environmental Data 146 Risk Management 13 Sustainability Management 70 Environmental Load Through the Value Chain 146 Addressing Risks and Opportunities 13 The 2021 Mid-term Management Plan 72 Environmental Load from Operations 150 Stable Provision of Products and Services and Sustainability 76 Environmental Accounting 151 Information Security 14 Sustainability Strategy Promotion Structure 16 Contribution to SDGs 19 Engagement and Participation in Initiatives 78 Social 155 Data 19 Stakeholder Engagement 79 Innovation Management 156 Indicators and Data 26 Main Initiatives and Groups in 79 Research and Development (R&D) 160 Key Sustainability Challenges and GRI Standards Which Hitachi Is Involved 82 Intellectual Property 161 Main Assessments and Awards 27 International Standardization Activities 85 Human Capital 164 Independent Assurance 85 2021 HR Strategy 86 Developing Global Human Capital 28 Environmental 91 Diversity and Inclusion 29 Advancing Our Environmental Vision and 96 Work-Life Management Long-Term Environmental Targets 100 Occupational Health and Safety 30 The Environmental Vision and Hitachi 107 Human Rights Environmental Innovation 2050 107 Respect for Human Rights Throughout the 31 Environmental Governance Value Chain 31 Enhancing Environmental Governance 111 Freedom of Association and 32 Environmental Action Plan Collective Bargaining 34 Environmental Management System 113 Value Chain Management 39 Achieving a Low-Carbon Society 113 Responsible Procurement 39 Efforts to Achieve a Low-Carbon Society 119 Quality and Safety Management 39 Contributing to a Low-Carbon Society Through the 122 Rigorous Information Management Decarbonization Business 123 Use of Personal Data and Protection of Privacy Hitachi Sustainability Report 2019 1 How to Use This Report Use the category tabs, navigation icons, and link buttons to go directly to different sections of What This Report Covers (Boundary of Reporting) this report. Period: The main period covered is fiscal 2018 (April 1, 2018, to March 31, 2019) Companies: 1,222 companies, namely Hitachi, Ltd. and 1,221 consolidated subsidiaries (including 418 equity-method associates and joint ventures) Link Buttons Click to go to corresponding website Click to go to corresponding page Boundary of Data: Financial data: 1,222 companies, namely Hitachi, Ltd. and 1,221 consolidated subsidiaries (including 418 equity-method associates and Click to go back one page joint ventures) Navigation Icons 1 Click to go forward one page Social data: Boundary of data indicated under each indicator Environmental 804 companies, namely Hitachi, Ltd. and 803 consolidated Category Tabs data: subsidiaries. However, for environmental performance data associated with Hitachi’s business operations, Hitachi, Ltd. and consolidated Go to the beginning of the corresponding section subsidiaries whose environmental load comprises 90% of the total (based on Hitachi calculations) are included. Reporting Cycle: Published every year as an annual report Contents Introduction Management Environmental Social Date Published: October 2019 Contents Introduction Management Environmental Social Notes: • The data for each fiscal year are the results according to the boundary of data in that fiscal year. • The base fiscal year data has been revised to match the boundary of data for fiscal 2018. Editorial Policy [Symbol Marks Used in This Report] Basic Concept * Technical terms, proper nouns, tables, diagrams, etc. requiring explanation The Hitachi Sustainability Report 2019 details the environmental (E), social (S), and [Hitachi References in This Report] governance (G) issues that are vital to the sustainability of our operations and society, presenting Hitachi, Ltd.: Information on or initiatives of Hitachi, Ltd. our stance and the activities undertaken in fiscal 2018. Hitachi and the Hitachi Group: Information on or initiatives of all Group companies in Inasmuch as the report is a tool with which we engage with our stakeholders through honest and outside Japan and transparent disclosures of information, it contains our basic policies, promotion systems, key performance indicators, and specific measures for our CSR initiatives in line with the disclosure [Key Guidelines Referred to in Preparing This Report] requirements of the GRI Sustainability Reporting Standards (GRI Standards). • GRI Standards, Global Reporting Initiative • Environmental Reporting Guidelines (2012 version, 2018 version), Ministry of the Environment, Japan Hitachi Sustainability Report 2019 2 Disclosure of Financial and Non-Financial Information Hitachi, following closely the deliberations of the European Union (EU) and the International Integrated Reporting Council (IIRC) about non-financial disclosure, presents information to match Hitachi Sustainability Report 2019 Fiscal 2018 Results the needs of stakeholders reading this report. Since the 2016 edition, the Hitachi Integrated Report has presented both financial and Hitachi Social non-financial information showing how Hitachi is striving to create value. The Hitachi Sustainability Innovation Report continues to serve as a comprehensive tool providing detailed non-financial information. Hitachi Sustainability Report 2019 Web Sustainability http://www.hitachi.com/sustainability/ Financial and Non-Financial Information Financial Information Reports Reports on Hitachi’s Value Creation Hitachi Integrated Report 2019 Hitachi Integrated Report 2019 Year ended March 31, 2019 Hitachi Web Web Social Environmental Activities Global Community Relations and Activities Innovation http://www.hitachi.com/environment/ (Social Contribution Activities) http://www.hitachi.com/sustainability/sc/ Web Investor Relations http://www.hitachi.com/IR-e/ Note: Information about Hitachi, Ltd. is also Note: We also disclose information about Hitachi, Ltd. in the Corporate Governance Report. Hitachi Integrated Report 2019 disclosed in the Annual Securities Report and the Report on the 150th Business Term. Non-Financial Information Reports Independent Assurance The Hitachi Sustainability Report 2019 provides non-financial information to investors, auditors, and CSR experts in an easily searchable, interactive PDF format To enhance the credibility of this report, we have engaged KPMG AZSA Sustainability Co., Ltd. (A4, 166 pages). The CSR website contains not only the contents of this report but also news releases to provide assurance on environmental and social performance indicators. This assurance was to provide up-to-date information to our diverse stakeholders. carried out in accordance with the International Standard on Assurance Engagement (ISAE) 3000 and 3410. Performance indicators for fiscal 2018 that have been assured are marked with in the report. Hitachi Sustainability Report 2019 3 Hitachi Group Profile Company Profile (as of March 31, 2019) Consolidated Financial Highlights for Revenue and Share by Segment Fiscal 2018, Based on the International (Consolidated for fiscal 2018, based on IFRS) Corporate name Hitachi, Ltd. Financial Reporting Standards (IFRS) Others Incorporated February 1, 1920 Smart Life & Ecofriendly Systems 534.4 billion yen (5%) (founded in 1910) Revenue 9,480.6 billion yen (up 1%, year on year) 485.0 billion yen (5%) Information & Telecommunication Systems Head office 1-6-6 Marunouchi, Automotive Systems 1 Subtotal of Revenue 2,065.9 billion yen (20%) Chiyoda-ku, Tokyo 100-8280, EBIT* 513.9 billion yen (down 20%) 971.0 billion yen (9%) by Segment Japan 10,285.6 billion yen Income from continuing 516.5 billion yen (down 19%) High Functional Materials Social Infrastructure & Industrial Systems Consolidated Revenue Representative Toshiaki Higashihara operations, before & Components 2,539.8 billion yen (25%) Representative Executive income taxes 1,704.4 billion yen (17%) 9,480.6 billion yen Officer, President, and CEO Construction Machinery Net income attributable to 222.5 billion yen (down 39%) 1,033.7 billion yen (10%) Hitachi, Ltd. stockholders Capital 458.79 billion yen Electronic Systems & Equipment 951.2 billion yen (9%) 2 Number of 33,490 (unconsolidated basis) Capital expenditure* 414.7 billion yen (up 11%) employees 295,941(consolidated basis) Note: Our revenue segments were reclassified in fiscal 2019 into five sectors and four subsidiaries. R&D expenditure 323.1 billion yen (down 3%) Number of consolidated IT 2,121.6 billion yen (20%) Hitachi High-Technologies Corporation 731.1 billion yen (7%) 803 (Japan: 181, Total assets 9,626.5 billion yen subsidiaries
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