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Environmental

Environmental Data

GHG Emissions Throughout the Value Chain

Calculating GHG Emissions Throughout the Value Chain (Fiscal 2023)

Hitachi calculates greenhouse gas (GHG) emissions throughout the Value chain by referencing GHG Protocol standards. This gives us a good grasp of emission hotspots in our value chain with which we can establish effective targets and reduction measures. Most of the greenhouse gases emitted by Hitachi as a whole are energy-related CO2.
An extremely high share of our value chain emissions comes from the use of the products and services we sell. We thus believe that we can make a major contribution to decarbonization through our businesses by giving priority to enhancing the efficiency and energy-saving features of our products and services.

figure : Calculating GHG Emissions Throughout the Value Chain (Fiscal 2023)
figure : Calculating GHG Emissions Throughout the Value Chain (Fiscal 2023)

In-house:Within the scope of the company’s organizational boundaries. In principle, all business activities of the company itself and activities within or controlled by its consolidated subsidiaries.

Upstream:In principle, activities related to products and services that are purchased.

Downstream:In principle, activities related to products and services that are sold.

Detailed Data on GHG Emissions Throughout the Hitachi Value Chain (Hitachi Group, Fiscal 2023)

Category Description Reporting Boundary Emissions(Mt-CO2e) Percentage(%)
Total Scope 1, 2, and 3 Hitachi Group 214.38 100.0
Total Scope 1 and 2*1 Hitachi Group 0.68 0.3
Scope 1*2
Direct Emissions*1 Direct emissions from in-house fuel use and industrial processes (Aggregate of categories A, B, and C (excluding non-manufacturing sites for category C)) Hitachi Group 0.40 0.2
 Of which, Category A Direct emissions from in-house fuel use and industrial processes (Aggregated for category A only) 0.28
Scope 2*3
Energy-related Indirect Emissions*1 Indirect emissions from production of electricity and heat purchased by the company (Aggregate of categories A, B, and C (excluding non-manufacturing sites for category C)) Hitachi Group 0.28 0.1
 Of which, Category A Indirect emissions from production of electricity and heat purchased by the company (Aggregated for category A only) 0.20
Scope 3 Total Hitachi Group 213.70 99.7
Scope 3 Upstream (other Indirect Emissions)
1 Purchased Goods and Services Emissions from the resource extraction stage to the manufacturing stage, including raw materials, parts, supplied products, and sales Hitachi Group 21.80 10.2
2 Capital Goods Emissions generated in the construction, manufacture, and shipping of the company’s own capital goods, such as equipment, devices, buildings, facilities, and vehicles 1.11 0.5
3 Fuel- and Energy- related Activities not included in Scope 1 and 2 Emissions from procuring the fuel necessary for electricity and other energy production, including resource extraction, production, and shipping 0.05 0.0
4 Upstream Transportation and Distribution Emissions from the distribution of raw materials, parts, products supplied, and sales prior to the delivery of materials to the company, as well as other distribution activities of products for which the company bears the expense 0.02 0.0
5 Waste Generated in Operations Emissions from the transportation, disposal, and treatment of waste generated from the company’s operations 0.01 0.0
6 Business Travel Emissions generated from the fuel and electricity used by employees for business travel 0.04 0.0
7 Employee Commuting Emissions generated from the fuel and electricity used by employees commuting 0.05 0.0
8 Upstream Leased Assets Emissions from the operation of assets leased by the company, excluding those counted in Scope 1 and 2 Included in Scope 1 and 2
Scope 3: Downstream (other Indirect Emissions)
9 Downstream Transportation and Distribution Emissions from the transportation, storage, loading and unloading, and retail sales of products Hitachi Group 0.07 0.0
10 Processing of Sold Products Emissions by downstream companies during the processing of intermediate products N/A*4
11 Use of Sold Products*5 Emissions from the use of products by end users, such as consumers and businesses 190.20 88.7
12 End-of-life Treatment of Sold Products Sold Emissions from the transportation, waste disposal, and treatment of products by end users, such as consumers and businesses 0.19 0.1
13 Downstream Leased Assets Emissions from the operating of assets owned by the reporting company as the lessor, which are leased to other entities 0.02 0.0
14 Franchises Emissions by franchises under Scope 1 and 2 N/A
15 Investments Emissions related to the management of investments 0.15 0.1

Note:Due to the deconsolidation of auto parts-related companies, the company's figures are not included in the totals for fiscal 2023.

*1Aggregated according to Hitachi's internal categories A, B, and C (excluding non-manufacturing sites for category C). The row labeled “Of which, category A” is aggregated for category A only. In the text, unless otherwise noted, the aggregation pertains to category A, which is subject to environmental management.

*2Including SF6, PFC, HFC, N2O, NF3, and CH4. The gas and fuel oil conversion factors are based on the List of calculation methods and emission factors used in the Greenhouse Gas Emissions Calculation, Reporting and Publication System.

*3CO2 emissions from electricity consumption is calculated using a market-based calculation method. CO2 electrical power conversion factors: We used adjusted conversion factors for individual power businesses based on the Act on Promotion of Global Warming Countermeasures in Japan. In China, we used the average emissions factor published by the government for the regional power grid. For other countries, we used the latest values for each fiscal year supplied by the International Energy Agency (IEA) for individual countries or by power supply companies.

*4Cannot be determined due to insufficient information about the processing.

*5Emissions are calculated based on the annual energy consumption of each product, multiplied by the number of units sold, the product's lifetime, and the CO2 emission factor. The CO2 emission factor used is based on the country-specific emission factors (mainly 2021 version) provided by the IEA.

Detailed Data on Resource Input and Environmental Load Output

Energy Inputs and GHG Emissions During Business Operations

The following is an outline of the energy consumed during Hitachi’s business operations and the part of our environmental load consisting of greenhouse gas (GHG) emissions.

Energy Inputs

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*1 FY2023*3
Energy Inputs Hitachi Group GWh 12,427 9,674 9,957 5,387 3,291
Renewable Energy Electricity Total Hitachi Group GWh 18 138 193 706 769
(Self-generated amount) Hitachi Group GWh 18 22 34 25 29
Purchases: Includes non-fossil certificates) Hitachi Group GWh 116 159 681 741
Non-renewable Energy Electricity Electricity Hitachi Group GWh 5,992 4,498 4,584 2,218 715
Fuel and heat*2 City gas Hitachi Group GWh
(billion m3)
1,933 (0.15) 1,339 (0.11) 1,373 (0.11) 767 (0.06) 665(0.06)
LPG、LNG Hitachi Group GWh(kt) 2,015 (150) 1,646 (111) 1,705 (118) 1,217 (82) 989(65)
Other natural gas Hitachi Group GWh
(billion m3)
258 (0.02) 276 (0.02) 319 (0.03) 261 (0.02) 46(0.004)
Fuel oil (heavy oil, kerosene, etc.) Hitachi Group GWh (ML) 792 (75) 653 (61) 495 (47) 197 (19) 95(9)
Solid fuel (coke) Hitachi Group GWh (kt) 1,333 (162) 1,111 (137) 1,278 (156)
Steam, hot water and cold water Hitachi Group GWh (PJ) 86 (0.31) 13 (0.05) 10 (0.04) 21 (0.08) 12(0.04)

Note: Aggregated for category A only until fiscal 2022 according to Hitachi's internal categories. Aggregated for categories A, B, and C (excluding non-manufacturing sites for category C) for fiscal 2023 according to Hitachi's internal categories.

*1Significant decrease for fiscal 2022 due to deconsolidation of materials-related and construction machinery-related companies.

*2Used 3.6MJ/kWh in the conversion from calorific value.

*3In fiscal 2023, the amount decreased due to the deconsolidation of the auto parts-related companies.

Greenhouse Gases Emitted

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*1 FY2023*3
Total Greenhouse Gases*2 Hitachi Group kt-CO2e 4,415 3,313 3,412 1,565 676
Energy-related Total CO2 Emissions Total Hitachi Group kt-CO2 4,374 3,296 3,384 1,538 618
(Direct emissions) Hitachi Group kt-CO2 1,489 1,202 1,245 459 339
(Indirect emissions) Hitachi Group kt-CO2 2,885 2,094 2,139 1,079 279
Total other than Energy-related CO2 Greenhouse gas Emissions*4 Total Hitachi Group kt-CO2e 41 17 28 26.7 58.6
Sulfur hexafluoride (SF6) Hitachi Group kt-CO2e 24 11 20 22.0 33.2
Perfluorocarbons (PFC) Hitachi Group kt-CO2e 4 0 2 1.3 0.9
Hydrofluorocarbons (HFC) Hitachi Group kt-CO2e 3 1 3 2.4 22.5
Dinitrogen monoxide, nitrogen trifluoride, methane (N2O ,NF3,CH4) Hitachi Group kt-CO2e 2 2 3 0.9 1.9
CO2 from non-energy sources Hitachi Group kt-CO2e 8 3 0 0.2 0.2

Note: CO2 emissions from electricity consumption is calculated using a market-based calculation method. CO2 emission coefficients for Japan (including power plants) are the latest adjusted emission coefficients for each electric utility based on the Act on Promotion of Global Warming Countermeasures. For China, we use the average emissions factor for the regional power grid published by the government. For countries other than Japan and China, we use the latest IEA emission factors by country for each fiscal year or the latest factors provided by power supply companies.

Note: The gas and fuel oil conversion factors are based on the list of calculation methods and emission factors used in the Greenhouse Gas Emissions Calculation, Reporting and Publication System.

Note: Aggregated for category A only until fiscal 2022 according to Hitachi's internal categories. Aggregated for categories A, B, and C (excluding non-manufacturing sites for category C) for fiscal 2023 according to Hitachi's internal categories.

*1Significant decrease for fiscal 2022 due to deconsolidation of materials-related and construction machinery-related companies.

*2Total GHGs: Scope 1 and 2 total

*3In fiscal 2023, the amount decreased due to the deconsolidation of the auto parts-related companies. HFC emissions saw a significant increase as recycling-related companies were added to the aggregation scope.

*4The sources included in the calculation of greenhouse gas emissions other than energy-related CO2, are as follows: carbon dioxide from cooling and welding applications, methane used for research purposes, hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulfur hexafluoride (SF6), methane, nitrogen trifluoride (NF3), dinitrogen monoxide (N2O) from the manufacture of semiconductor devices and testing of semiconductor inspection equipment, hydrofluorocarbons from the recovery of HFCs during the disposal of refrigeration and air conditioning equipment, sulfur hexafluoride from the production, filling, and testing of high-voltage transformers and power transmission and distribution equipment.

Raw Material Inputs and Waste and Valuables Generation During Business Operations 

The following is an outline of the raw materials used during Hitachi’s business operations and the part of our environmental load consisting of the generation of waste and valuables.

Raw Material Inputs

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*1 FY2023*3
Total Amount of Raw Materials Hitachi Group kt 3,776 3,066 3,235 788 3,345
Raw Materials Metals Total metals Hitachi Group kt 3,454 2,861 3,083 685 2,430
New materials Hitachi Group kt 1,372 1,075 909 614 2,428
Recycled materials, etc. Hitachi Group kt 2,082 1,786 2,175 71 2
Plastics Total plastics Hitachi Group kt 147 115 74 43 148
New materials Hitachi Group kt 143 113 72 40 146
Recycled materials, etc. Hitachi Group kt 4 2 2 3 2
Other materials Total other materials Hitachi Group kt 175 90 77 61 767
New materials Hitachi Group kt 173 89 76 54 766
Recycled materials, etc. Hitachi Group kt 2 1 1 7 0.1

Waste and Valuables Generated

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*1,2 FY2023*3
Total Waste and Valuables Generated Total / (hazardous) Hitachi Group kt 1,302 /(56) 1,061 /(49) 1,111 /(61) 356 /(57) 164 /(13)
Waste Reduction Hitachi Group kt 101 /(17.5) 75 /(9.8) 74 /(10.5) 47 /(23.1) 11 /(4.4)
Recycle Reuse Hitachi Group kt 5 /(2.2) 35 /(11.4) 36 /(18.7) 18 /(6.2) 7 /(0.3)
Materials recycled Hitachi Group kt 919 /(25.3) 740 /(17.6) 784 /(19.3) 256 /(16.7) 131 /(6.0)
Thermal recovery Hitachi Group kt 21 /(4.9) 11 /(5.4) 13 /(6.5) 16 /(4.6) 11 /(1.6)
Landfill Hitachi Group kt 256 /(6.1) 200 /(4.9) 204 /(5.7) 20 /(6.5) 4 /(0.6)

Note:Figures in parentheses are the generation of waste defined as hazardous under the Basel Convention. The amount of hazardous substances in parentheses is indicated as internal figures.

*1Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.

*2The amount for fiscal 2022 includes the amount of waste and valuables generated by energy companies and auto parts-related companies that have become consolidated subsidiaries since fiscal 2020.

*3In fiscal 2023, the amount decreased due to the deconsolidation of the auto parts-related companies.

Water Inputs and Effluent Discharges and Consumption During Business Operations

The following is an outline of the total amount of water resources and consumption used during Hitachi’s business operations and the part of our environmental load consisting of effluent discharges.

Water Input

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*2,3 FY2023*5
Total Water Withdrawal*1 Hitachi Group Million m3 36.41 26.35 26.03 14.23 10.59
Surface Water Tap water (water for drinking and other household uses) Hitachi Group Million m3 7.95 5.10 5.23 5.53 2.37
Industrial water, river water Hitachi Group Million m3 15.58 12.62 12.47 5.17 5.28
Rain water Hitachi Group Million m3 0.02 0.01 0.01 0.01 0.01
Groundwater Hitachi Group Million m3 12.84 8.60 8.32 3.52 2.93
Recycled Water (Recycled from the Wastewater of other Organizations) Hitachi Group Million m3 0.02 0.01 0.01 0.00 0.00

Water Effluents Discharged

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*2,3 FY2023*4,5,6
Total Water Effluents Discharged Hitachi Group Million m3 31.09 21.24 21.25 12.15 9.14
Public Water Hitachi Group Million m3 22.46 15.28 15.40 8.26 6.30
Sewerage Hitachi Group Million m3 7.74 5.44 5.31 3.76 2.75
Groundwater Hitachi Group Million m3 0.89 0.52 0.54 0.12 0.09
Water Quality BOD (biochemical oxygen demand) Hitachi Group t 232 204 156 77 9
COD (chemical oxygen demand) Hitachi Group t 400 406 301 137 2

Consumption

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*2,3 FY2023*5
Total Consumption Hitachi Group Million m3 5.32 5.11 4.78 2.08 1.45
Contained in Products Hitachi Group Million m3 0.07 0.14 0.00 0.00 0.00
Contained in Waste Hitachi Group Million m3 0.05 0.01 0.01 0.00 0.00
Evaporation, etc. Hitachi Group Million m3 5.20 4.96 4.77 2.08 1.45

*1Figures through fiscal 2021 represent water usage in manufacturing processes and general daily usage at manufacturing sites classified as Category A within Hitachi, as well as general daily usage in locations other than manufacturing sites. Figures for fiscal 2022 and onward represent water usage in manufacturing processes and daily general usage at Category A manufacturing sites.

*2Fiscal 2022 water usage of an energy-related and auto parts-related companies included in the scope of consolidation since fiscal 2020 is included in the reported figures above.

*3Significant decrease in fiscal 2022 due to deconsolidation of materials-related and construction machinery-related companies.

*4For fiscal 2023, the above reported values include BOD/COD of energy companies that have been consolidated since fiscal 2020.

*5In fiscal 2023, the amount decreased due to the deconsolidation of the auto parts-related companies.

*6Water quality for fiscal 2023 decreased due to a revision in the aggregation method. This revision excluded discharges to sewage systems and counted only either BOD or COD for the same discharge destination.

Inputs and Discharges of Chemical Substances During Business Operations

The following is an outline of the chemical substances handled during Hitachi’s business operations and the part of our environmental load consisting of chemical substance discharges.

Chemical Substances Handled

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*3 FY2023*5
Total Chemical Substances Handled*1 Chemical substances handled Hitachi Group kt 83.68 47.49*2 26.20 1.70 0.97

Chemical Substances Discharged

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*3 FY2023*5
Total Chemical Substances Discharged Hitachi Group kt 4.98 3.27 3.50 1.39 0.65
Chemical Substances Discharged Chemical substances discharged*4(VOC, etc.) Hitachi Group kt 3.88 2.37 2.50 1.09 0.62
SOx (sulfur oxides) Hitachi Group kt 0.3 0.2 0.2 0.01 0.00
NOx (nitrogen oxides) Hitachi Group kt 0.8 0.7 0.8 0.29 0.03

Note:Sulfur oxides (SOx) and nitrogen oxides (NOx) are chemical emissions that are released from the combustion of fuel, not due to the chemicals used.

*1We selected 50 substances from the perspective of hazards and atmospheric emissions.

*2Significant decrease due to deconsolidation of a materials-related company.

*3Significant decrease in fiscal 2022 due to deconsolidation of materials-related and construction machinery-related companies.

*4Approximately 100% of chemical emissions classified as VOCs.

*5In fiscal 2023, the amount decreased due to the deconsolidation of the auto parts-related companies.

Environmental Management Data

Number of ISO 14001 Certified Companies (Hitachi Group, as of March 2024)

Reporting Boundary Unit FY2020 FY2021 FY2022*1 FY2023*2
Total Hitachi Group Companies 202 185 281 178
Japan Hitachi Group Companies 85 66 66 45
China 43 43 61 47
ASEAN, India, and the rest of Asia 42 43 50 34
North America 10 9 13 15
Europe 17 15 52 27
Other 5 9 39 10

Note:Companies with at least one certified business site.

*1Significant changes in fiscal 2022 resulting from both the increase caused by the consolidation of an energy-related company and the decrease caused by the deconsolidation of materials-related and construction machinery-related companies.

*2In fiscal 2023, the amount decreased due to the deconsolidation of the auto parts-related companies.

Number of Regulatory Violations and Complaints

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022 FY2023
Regulatory Violations Water quality Hitachi Group Cases 4 5 2 0 1
Air quality 0 0 0 2 0
Waste materials 0 4 3 0 2
Other (equipment registration, etc.) 1 1 3 0 0
Complaints Hitachi Group Cases 5 3 3 0 1

Environmental Accounting

Environmental Protection Costs

Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*2 FY2023*3
Total Hitachi Group Billion Yen 1057.1 866.2 799.7 572.1 443.5
Expenses Business area Maintenance costs for equipment with low environmental loads, depreciation, etc.*1 Hitachi Group Billion Yen 226.2 191.4 195.6 63.0 45.5
Upstream/ Downstream Green procurement expenses, recovery and recycling of products and packaging, recycling expenses 6.8 6.2 6.4 0.8 0.6
Administration Labor costs for environmental management and the implementation and maintenance of environmental management systems 49.8 58.8 54.0 30.6 31.4
Research and development Costs of research and development and product designs to reduce the environmental burden caused by products and production processes 770.1 606.4 537.9 475.5 363.7
Social activities Planting, beautification, and other environmental improvement costs 2.5 2.2 2.6 1.1 1.5
Environmental remediation Environmental mitigation costs, contributions, and charges 1.7 1.2 3.2 1.1 0.8

*1Equipment depreciation costs are calculated using the straight-line method over five years.

*2Fiscal 2022 does not include the costs of an energy-related company that became consolidated since fiscal 2020. Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.

*3In fiscal 2023, the amount decreased due to the deconsolidation of the auto parts-related companies.

Environmental Protection Effects

Economic Effects*1

Major FY2023 Activities Reporting Boundary Unit FY2019 FY2020 FY2021 FY2022*2 FY2023*3
Total Hitachi Group Billion Yen 186.2 142.8 192.0 119.5 16.5
Net Income Effects Recovering value from waste by sorting and recycling Hitachi Group Billion Yen 124.2 96.6 151.5 78.9 11.5
Cost Reduction Effects Installing high-efficiency equipment (lighting, power supply, etc.) 62.0 46.2 40.5 40.6 5.0

*1 Economic effects include the following:
Net income effects: Real income from the sale of valuable materials and environmental technology patents.
Cost reduction effects: Reductions in electricity, waste treatment, and other expenses through activities that reduce environmental loads.

*2Fiscal 2022 does not include FY2022 costs of energy-related companies that became consolidated since fiscal 2020. Significant decrease due to deconsolidation of materials-related and construction machinery-related companies.

*3In fiscal 2023, the amount decreased due to the deconsolidation of the auto parts-related companies.

Environmental Liability

As the amounts that we can reasonably project as future environmental liabilities as of end of April 2024, we recorded 3.4 billion yen in costs for the disposal of waste containing PCBs and 1 billion yen to clean up contaminated soil.