Fiscal 2019 Results - Hitachi

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Hitachi Sustainability Report 2020Fiscal 2019 Results

overnanceAssuranceHitachi Sustainability Report 202001C O N T ENT S02 Introduction0203Editorial PolicyHitachi Group Profile05 Management060708CEO s Message09Sustainability Management1520Executive Officer s Message22 Environmental2325Corporate CredoEngagement and Initiatives68Innovation Management70 Research and Development73 Intellectual Property75Human Capital77 Global Human Capital Management80 Talent Development83 Diversity and Inclusion86 Work-Life Management89 Occupational Health and Safety95 Freedom of Association and CollectiveAdvancing Our Environmental Visionand Long-Term Environmental Targets25 The Environmental Vision and Hitachi08 Hitachi Group Identity09 The 2021 Mid-term Management Planand Sustainability10 Sustainability Strategy PromotionStructure12 Contribution to the SDGs (SustainableDevelopment Goals)Environmental67 SocialEnvironmental Innovation 205026 Environmental Action Plan28Environmental Governance28 Framework for PromotingEnvironmental Governance29 Environmental Management System3315 Stakeholder Engagement17 Main Initiatives and Groups in WhichHitachi Is Involved18 International Standardization Activities19 Main Groups in Which Hitachi ParticipatesAchieving a Decarbonized Society33 Efforts to Achieve a Decarbonized Society34 Contributing to a Decarbonized SocietyBargaining96Human Rights97 Respect for Human Rights ThroughoutThrough the Decarbonization Business100Achieving a Resource Efficient Society45 Efforts to Achieve a Resource Efficient110at Business Sites (Factories and Offices)40 Climate-related Financial InformationDisclosure (Based on TCFDRecommendations)External Assessments and Awards45the Value Chain36 Contributing to a Decarbonized SocietySociety46 Building a Water Efficient Society49 Building a Society That Uses Resources123Governance124Corporate Governance125 Corporate Governance131Compliance132 Promoting Work Practices in Line withInternational Codes of Ethics135Risk Management136 Addressing Risks and Opportunities140 Business Continuation Initiatives141Information Management143 Information Security145 Personal Information Protection146 Online Content Management147Governance DataValue Chain Management102 Responsible Procurement106 Quality and Product Safety Management108 Customer SatisfactionCommunity111 Social Contribution Activities114Social DataEfficiently52Achieving a Harmonized Society withNature52 Efforts to Achieve a Harmonized Societywith Nature53 Managing and Reducing ChemicalSubstances55 Preserving Ecosystems56Environmental Data56 GHG Emissions Throughout the Value Chain58 Environmental Load from Operations63 Environmental Load by Region65 Environmental Management Data66 Environmental Accounting148 Assurance148Independent Assurance

overnanceAssuranceHitachi Sustainability Report 2020102-45 102-46 102-50 102-51102-52 102-56Ed i t o r i a l Po lic yBasic ConceptThe Hitachi Sustainability Report 2020 presents our stance toward environmental (E), social (S), andgovernance (G) issues, and details the activities we undertook in relation to these in fiscal 2019.[Key Guidelines Referred to in Preparing This Report] GRI Standards, Global Reporting InitiativeEach section is labeled with GRI topic numbers showing which disclosure requirement it corresponds to. Sustainability Accounting Standards, Sustainability Accounting Standards Board Environmental Reporting Guidelines (2012 version, 2018 version), Ministry of the Environment, JapanUse the category tabs,navigation icons, and linkbuttons to go directly todifferent sections of this report.Link ButtonsInasmuch as the report is a tool with which we engage with our stakeholders throughcomprehensive information disclosure, it is based on the disclosure requirements of the GRISustainability Reporting Standards (GRI Standards). Additionally, in creating the report, as well asClick to go tocorresponding websiteDisclosure Systems for Financial and Non-Financial InformationClick to go tocorresponding pagereferring to the industry disclosure standards relevant to Hitachi as defined in the SustainabilityAccounting Standards Board (SASB)’s Sustainable Industry Classification System (SICS), withThe Hitachi Integrated Report discloses both financial and non-financial information about Hitachi’srespect to climate change, we disclose a variety of information based on the proposals of the Taskvalue creation process. The Hitachi Sustainability Report serves as a tool for comprehensivelyForce on Climate-related Financial Disclosure (TCFD).reporting more detailed ESG-related information.Navigation IconsWhat This Report Covers (Boundary of Reporting)Period:The main period covered is fiscal 2019 (April 1, 2019, to March 31, 2020)Note: Some information on activities in April 2020 and after is also included.Companies:Hitachi, Ltd. and its consolidated subsidiariesBoundary of Data:Financial data: 1,224 companies, namely Hitachi, Ltd. and 1,223 consolidatedsubsidiaries and equity-method associates and joint venturesSocial data:Boundary of data indicated under each indicatorEnvironmentaldata:815 companies, namely Hitachi, Ltd. and 814 consolidatedsubsidiaries. However, for environmental performance data associatedwith Hitachi’s business operations, Hitachi, Ltd. and consolidatedsubsidiaries whose environmental load comprises 90% of the total(based on Hitachi calculations) are included.Reporting Cycle:Published every year as an annual reportDate Published:November 2020 (Previous report: October 2019)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 2019.[Symbol Marks Used in This Report]02Financial InformationNon-Financial InformationImportanceHitachi Integrated Report1Click to go backone pageClick to go forwardone pageCategory TabsAnnualSecurities ReportWeb:Investor .com/sustainability/ComprehensivenessIndependent Assurance* Technical terms, proper nouns, tables, diagrams, etc. requiring explanationTo enhance the credibility of this report, we have engaged KPMG AZSA Sustainability Co.,[Hitachi References in This Report]Hitachi, Ltd.: Information on or initiatives of Hitachi, Ltd.Hitachi and the Hitachi Group: Information on or initiatives of all Group companiesLtd. to provide assurance on environmental and social performance indicators. Themarkindicates disclosed information assured in accordance with International Standard on AssuranceEngagement (ISAE) 3000 and ISAE ctionManagementGo to the beginning of thecorresponding section

overnanceAssuranceH i t a c h i G ro up Pro f ileCompany ProfileRevenue and Share by Segment(as of March 31, 2020)Others484.8 billion yen (5%)Corporate nameHitachi, Ltd.IncorporatedFebruary 1, 1920 (founded in 1910)Head office1-6-6 Marunouchi, Chiyoda-ku, Tokyo, JapanRepresentativeToshiaki Higashihara, President and CEOCapital458.79 billion yenNumber of employees31,442 (unconsolidated basis)301,056 (consolidated basis)Number of consolidated subsidiaries(including variable interest entities)814 (Japan: 173, outside Japan: 641)Number of equity-method associatesand joint ventures409Hitachi Chemical*1631.4 billion yen (7%)Hitachi ConstructionMachinery931.3 billion yen (10%)201-1102-78,767.2 billion yen (down 8%, year on year)7.5% (down 0.5 percentage points)EBIT*1183.6 billion yen (down 64%)Net income attributable to Hitachi, Ltd. stockholders87.5 billion yen (down 61%)ROIC*29.4% (up 0.9 percentage points)Capital expenditure399.6 billion yen (down 4%)R&D expenditure293.7 billion yen (down 9%)Europe(billion yen)Asia(billion 67.28.0Revenue (left .5201620172018Net income attributable to Hitachi, Ltd. stockholders (right scale)2019200(FY)Adjusted operating income ratio (%)0Mobility1,144.4 billion yen (12%)Other Areas(Consolidated for fiscal 2019, based on IFRS)North America1,102.9 billion yen (13%)22,034 employeesJapan4,529.0 billion yen (52%)162,100 employees924.4 billion yen (10%)17,850 employees1,767.5 billion yen (20%)86,787 employeesRevenue, Adjusted Operating Income Ratio, and Net Income8,000Industry840.7 billion yen (9%)Note: Revenue by segment includes intersegment transactions.*1 Deconsolidated in April 2020.*2 Became a wholly-owned subsidiary in May 2020.Revenue and Share by Region*1 EBIT: Income from continuing operations before income tax, less interest income, plus interest charges.*2 ROIC: Return on invested capital. Calculated as follows: ROIC (NOPAT Equity method gain/loss) Invested capital 100. NOPAT (Netoperating profit after tax) Adjusted operating income (1 – Tax burden). Invested capital Interest-bearing debts Capital.Note: Hitachi’s consolidated financial statement is prepared based on the International Financial Reporting Standards (IFRS).9,162.28,767.2 billion yenSmart Life1,472.9 billion yen (15%)Adjusted operating income10,034.3Energy399.2 billion yen (4%)Consolidated RevenueHitachi High-Tech*2694.6 billion yen (7%)Revenue10,000IT2,099.4 billion yen (22%)Hitachi Metals881.4 billion yen (9%)Consolidated Financial Highlights for Fiscal 2019,Based on the International Financial Reporting Standards (IFRS)12,000(Consolidated for fiscal 2019, based on IFRS)443.1 billion yen (5%)12,285 employeesRevenue by RegionJapan:4,529.0 billion yenOutside Japan:4,238.1 billion yenHitachi Sustainability Report 202003

overnanceAssuranceHitachi Group ProfileHitachi High-TechKey Business Segments[Main Products and Services]102-2102-6102-10203-1IT[Main Products and Services]Systems integration, consulting, control systems, cloud services, software, IT products (storage,servers), ATMs[Consolidated Subsidiaries]Hitachi Information & Telecommunication Engineering, Ltd., Hitachi-Omron Terminal Solutions, Corp.,Hitachi Solutions, Ltd., Hitachi Systems, Ltd., Hitachi Computer Products (America), Inc., HitachiGlobal Digital Holdings Corporation, Hitachi Payment Services Private Limited, Hitachi Vantara LLCEnergy[Main Products and Services]Energy solutions (nuclear, renewable energy, thermal, power grids)[Consolidated Subsidiaries]Hitachi-GE Nuclear Energy, Ltd., Hitachi Plant Construction, Ltd., Hitachi Power Solutions Co., Ltd.Industry[Main Products and Services]Industrial systems, water and environmental systems, industrial machinery[Consolidated Subsidiaries]Hitachi Industrial Equipment Systems Co., Ltd., Hitachi Industrial Products, Ltd., Hitachi Industry& Control Solutions, Ltd., Hitachi Plant Services Co., Ltd., JR Technology Group, LLC, Sullair USPurchaser, Inc.Note: Sullair US Purchaser, Inc. changed its name to Hitachi Industrial Holdings Americas, Inc. on April 1, 2020.Mobility[Main Products and Services]Elevators, escalators, railway systems[Consolidated Subsidiaries]Hitachi Building Systems Co., Ltd., Hitachi Elevator (China) Co., Ltd., Hitachi Rail Europe, Ltd.Smart Life[Main Products and Services]Medial electronics, Smart Life & Ecofriendly systems (refrigerators, washing machines, room airconditioners, air-conditioning equipment), automotive systems (powertrain systems, chassissystems, advanced driver assistance systems)[Consolidated Subsidiaries]Hitachi Automotive Systems, Ltd., Hitachi Global Life Solutions, Inc., Hitachi Automotive SystemsAmericas, Inc., Hitachi Consumer Products (Thailand), Ltd.Medical and life science products, analytical equipment, semiconductor processing equipment,manufacturing and inspection equipment, advanced industrial productsNote: Hitachi High-Tech Corporation became a wholly-owned subsidiary of Hitachi, Ltd. on May 20, 2020. As a result, the Hitachi High-Techsegment was merged into the Smart Life segment.Hitachi Construction Machinery[Main Products and Services]Hydraulic excavators, wheel loaders, mining machinery, maintenance and services, constructionsolutions, mine management systemsHitachi Metals[Main Products and Services]Specialty steel products, functional components and equipment, magnetic materials and powerelectronics materials, wires, cables and related productsHitachi Chemical[Main Products and Services]Functional materials (electronics materials, printed wiring boards materials, electronicscomponents), advanced components and systems (mobility components, energy storagedevices, life science-related products)Note: Hitachi Chemical Company, Ltd. ceased to be an affiliate of Hitachi, Ltd. through a share transfer on April 20, 2020. As a result, theHitachi Chemical segment was abolished.Others[Main Products and Services]Optical disk drives, property management[Consolidated Subsidiaries]Hitachi-LG Data Storage, Inc., Hitachi Life, Ltd., Hitachi Urban Investment, Ltd.,*1 HitachiAmerica, Ltd., Hitachi Asia Ltd., Hitachi (China) Ltd., Hitachi Europe Ltd., Hitachi India Pvt. Ltd.*2*1 Hitachi Urban Investment, Ltd. merged with Hitachi Life, Ltd. and changed its name to Hitachi Real Estate Partners, Ltd. on April 1, 2020.*2 Hitachi America, Ltd., Hitachi Asia Ltd., Hitachi (China), Ltd., Hitachi Europe Ltd. and Hitachi India Pvt. Ltd. are the Hitachi Group’s regionalsupervising companies for the Americas, Asia, China, Europe and India respectively, and sell the Hitachi Group’s products.Note: Consolidated subsidiaries are listed as of March 31, 2020.Hitachi Sustainability Report 202004

overnanceAssuranceHitachi Sustainability Report 202005ManagementCONTENTS060708CEO s Message09Sustainability Management15Engagement and Initiatives20External Assessments and AwardsExecutive Officer s MessageCorporate Credo08 Hitachi Group Identity09 The 2021 Mid-term Management Planand Sustainability10 Sustainability Strategy PromotionStructure12 Contribution to the SDGs (SustainableDevelopment Goals)15 Stakeholder Engagement17 Main Initiatives and Groups in WhichHitachi Is Involved18 International Standardization Activities19 Main Groups in Which Hitachi Participates

overnanceAssuranceMeeting Society’s Challenges Through the Social Innovation Business with an Open,Vigorous Mind, Considering the Needs and Feelings of OthersOur most prized source of problem-solving prowess is the mindset of our employees.who have suffered from its symptoms and those who have lost loved ones. I also wish toThis was the impetus for holding a “Make a Difference!” idea contest, where employeesapplaud the courage and dedication of medical professionals and other essential workerswere challenged to devise new ways of responding to the crisis caused by COVID-19 andwho have put their own lives at risk to be of service to others.thereby deepen their awareness of their links with society and its values. Some of theWe at Hitachi are committed to prioritizing the health and safety of all our stakeholders,proposals have already been implemented, and others will follow. In advancing ourincluding our customers, partners, and employees and their families. Our operations havebusiness in these uncertain times, we will actively engage with our employees, highlightingbeen sustained by employees who are encouraged to work from home whenever possiblethe importance of the social, environmental, and economic value central to the Sustainableto prevent the spread of infection. We are now seeking ways to adapt to the “newDevelopment Goals (SDGs). As digitalization progresses, people are increasingly seekingnormal” by transitioning to shifts based on remote work for a wide range of jobout “sharing” rather than “ownership,” leading to a new set of values built on a sharingcategories and promoting workstyles that are aligned with employees’ type of work andeconomy. In such a society, it becomes all the more important to have a deeprole. One unique initiative to promote employee communication has been an experimentunderstanding of other people. Enhancing our resilience, then, will require each and everyenabling closer online contact using an application that measures happiness levels. Ouremployee to relate to society’s issues as their own, consider the needs and feelings ofsupport measures for COVID-19 to date include provision of free medical equipment andothers, and vigorously spearhead changes in advancing the Social Innovation Business.supplies, donations by executives and employees, loans through nonprofit organizations,Of the many challenges confronting society, addressing climate change and otherand support for infectious diseases research. Hitachi will continue to direct its resourcesenvironmental issues is Hitachi’s top priority. As the first step toward becoming a leaderto tackling the global challenge of COVID-19.in creating environmental value and spearheading a decarbonized society, we announcedThe 2021 Mid-term Management Plan announced in fiscal 2019 outlines Hitachi’sour commitment this year to achieve carbon neutrality at Hitachi Group business sites bystrategy for achieving a sustainable world as a global leader in the Social Innovationfiscal 2030. The knowhow we accumulate will also be offered as solutions to ourBusiness through improvements in social, environmental, and economic value as well ascustomers in advancing our activities toward this goal.contributions to people’s quality of life and enhanced customer value. COVID-19 hasOver the past 110 years since its founding, Hitachi has grown by addressing thehighlighted the challenges confronting society and Hitachi, but the goals we have set outchallenges confronting society. We will continue to offer solutions to such challengesin the management plan remain unchanged. As employees shift increasingly to remotethrough close dialogue with our stakeholders.work and the digitalization of our economy accelerates through contactless technologiesand automated production, we will contribute to addressing society’s challenges throughour Social Innovation Business.06102-14C E O ’s Me ssag eAs COVID-19 cases continue to rise around the world, my thoughts go out to all thoseHitachi Sustainability Report 2020Toshiaki HigashiharaPresident & CEOHitachi, Ltd.

overnanceAssuranceHitachi Sustainability Report 2020102-14Ex e c u t i v e O ff icer’s Mes s ageLeading the Transformation Toward Sustainable LifestylesThe many social issues that the coronavirus pandemic has brought to the fore haveOur third initiative has been to promote the visualization of social and environmentalprompted us to rethink the ways Hitachi should help meet those challenges. We havevalue. To help build a sustainable society through our Social Innovation Business, our 2021given renewed thought to how we can be of benefit to society and what we must do toMid-term Management Plan calls for the enhancement of social, environmental, andfulfill our mission. We need to do more than simply adapt to the “new normal” of livingeconomic value for our customers through solutions in five sectors, namely, IT, energy,with COVID-19 but accelerate a shift to employment policies that enable our valuableindustry, mobility, and smart life. In fiscal 2019, we reexamined our businesses to identifyhuman capital to achieve their full potential, such as through telecommuting and skills-how they could best help achieve the SDGs. Through quantification and other means, webased hiring, as well as by embracing diversity and inclusion. Our efforts to achieve atried as much as possible to visualize the social and environmental value each businesshuman-friendly Society 5.0*1 and to lead the transformation toward more sustainablewas generating. We also focused our efforts on ascertaining our businesses’ social andlifestyles will be focused on our Social Innovation Business, aimed at enhancing social,environmental impact, both positive and negative. This information will allow us to offerenvironmental, and economic value.solutions that are more sustainable and to provide even greater social, environmental, andWe have implemented three major sustainability-related initiatives during fiscal 2019through the first half of fiscal 2020.The first was to step up our efforts to disclose non-financial information, holding our firsteconomic value for our customers.The 2030 timeline for achieving the SDGs is only a decade away. As the officerresponsible for sustainability and government & external relations, I remain keenly aware ofESG Briefing in fiscal 2019. After President and CEO Toshiaki Higashihara gave an overviewthe importance of multi-stakeholder capitalism,*2 working closely with the governments ofof the course Hitachi is taking in his opening remarks, an independent director and executivemany countries and actively promoting dialogue with stakeholders in the social sector toofficers provided details regarding our governance measures, strategy for human capital, andachieve our goal of a decarbonized, digital society.environmental initiatives. We will be upgrading both the quality and quantity of our ESGdisclosures going forward as well as continually strengthening our initiatives in these areas.The second was in the area of climate change. Until now our efforts have focused onachieving our long-term environmental targets called Hitachi Environmental InnovationAdhering to our foundational Corporate Credo of contributing to society through thedevelopment of superior, original technologies and products, our 300,000 employeesaround the world will continue striving to build a sustainable and human-centered world asenvisioned by Society 5.0.2050, which includes a CO 2 reduction target of 80% throughout the value chain by fiscal2050 (compared to fiscal 2010). To move more vigorously toward these goals, weintroduced an internal carbon pricing system in fiscal 2019 and announced our aim ofattaining carbon neutrality for in-house manufacturing by fiscal 2030. We are working withour customers, partners, and other stakeholders to achieve a decarbonized society.07*1 Society 5.0: A proposal for a new super-smart, human-centric society from the Japanese government. It aims to achieve botheconomic development and the resolution of social issues through the closer integration of cyberspace (virtual reality) and thephysical universe. The moniker denotes the next stage in human evolution from the hunter-gatherer (Society 1.0), agrarian(Society 2.0), industrial (Society 3.0), and information (Society 4.0) societies.*2 Multi-stakeholder capitalism: A concept aimed at achieving sustainable growth with the interests of many different stakeholders in mind, rather than focusing on shareholder profits.Hitoshi ItoVice President and Executive OfficerHitachi, Ltd.

overnanceAssuranceHitachi Sustainability Report 202008C or p or ate CredoHitachi Group IdentityApproach102-16Hitachi’s Mission is to contribute to society through the development of superior, original technologyand products. This Mission has been carefully passed on to generations of employees andHitachi Group Codes of ConductHitachi Group Identitystakeholders throughout our 110-year history. Our Values reflect the Hitachi Founding Spirit ofHarmony, Sincerity and Pioneering Spirit, which was shaped by the achievements of our predecessorsin the company as they worked hard to fulfill the Mission. Our Vision was created based on our Missionand Values. It is an expression of what Hitachi Group aims to become in the future as it advances in itsnext stage of growth. Our Mission, Values and Vision combine to form the Hitachi Group Identity.Based on the Hitachi Group Identity, and continuously considering the next generation, weThe mission that Hitachiaspires to fulfill in societyMISSIONThe values crucial tothe Hitachi Group inaccomplishing its missionVALUESContribute to society through the development ofsuperior, original technology and products.promote corporate activities with a view to the medium and long term informed by sensitivity to theneeds of a changing society. The Mid-term Management Plan is our action plan to realize the HitachiGroup Vision; by integrating our management and sustainability strategies, we seek to enhance theHitachi Founding Spirit:Harmony, Sincerity, Pioneering Spiriteffectiveness of this approach.The implementation of the plan is a way for us to fulfill our responsibilities as a good corporatecitizen through robust, diverse governance; the Pioneering Spirit and strong ethical stance of ouremployees; and operations that help address social issues. We operate and pursue our activities inline with the Hitachi Group Codes of Conduct, the guidelines for ethical behavior and decision-What the Hitachi Groupaims to becomein the futureVISIONHitachi delivers innovations that answersociety’s challenges. With our talentedteam and proven experience in globalmarkets, we can inspire the world.making shared by all executives and employees of the Hitachi Group.Solidifying the Hitachi Group IdentityEmployee EngagementHitachi promotes brand education through training tools and courses based on the idea that social issuesincreasing social, environmental, and economic value were selected from various regions for the Grandcan be solved if each and every one of its employees understands and embodies the Hitachi GroupPrix, including “Making the Sea Beautiful Again! Water Infrastructure Business in Papua New Guinea” andIdentity.“Using AI in Providing Smart Building Solutions in Singapore.” The Grand Prix–winning projects wereOne way we promote understanding of and familiarity with the Hitachi Group Identity and the Hitachirecognized at the Global Awards Ceremony and shared with all employees through our intranet.Brand is through the annual Inspiration of the Year Global Award, which recognize remarkable activities that“Hitachi Group Identity Movie—I am Hitachi,” a movie featuring the Grand Prix–winning projects, wascontribute to enhancing the value of the Hitachi Brand by demonstrating the Hitachi Group Identity. In fiscalunveiled on our website, allowing a wide range of people inside and outside the Group to see how Hitachi2019, the award saw 211 applications from Hitachi Group employees around the world. Projects thatGroup employees around the world are endeavoring to improve people’s quality of life every day whilerepresented the practice of the Hitachi Group Identity and contributed to a sustainable society byholding the Hitachi Group Identity close to their heart.Hitachi Group ntity/index.htmlHitachi Group Identity Movie—I am tity/i am hitachi/index.html

overnanceAssuranceHitachi Sustainability Report 2020S u s t a i n ability Ma na g emen tThe 2021 Mid-term Management Plan and SustainabilityHitachi practices sustainable management, placing sustainability at the center of our business strategykinds of value simultaneously, we will expand our Social Innovation Business through collaborative creationand—in our 2021 Mid-term Management Plan ending in fiscal 2021—setting ourselves the goal ofwith our partners around the world by providing Lumada, a solution that accelerates digital innovation, as acontributing to the realization of a sustainable world as a global leader of Social Innovation Business. To thatcyber-physical system allowing the cyber and physical spaces to interact.end, our 2021 Mid-term Management Plan identifies five sectors where we can increase social,We continue to pursue the 2021 Mid-term Management Plan, further merging sustainability andenvironmental, and economic value simultaneously as well as enhance our customers’ corporate value andbusiness to contribute to the resolution of social issues through initiatives like Society 5.0 andpeople’s quality of life: IT, energy, industry, mobility, and smart life. Additionally, in order to increase the threeSustainability Development Goals (SDGs).Enhancing Three Kinds of Value with Solutions in Five SectorsSolutions Contributing to Enhanced Social/Environmental Value in Five SectorsSectorImproving quality of life and adding value for customersSocial valueEnvironmentalvalueEconomicvalueIncreasing social, environmental, and economic value throughbusiness and technology solutions in five sectorsSocial/Environmental Value Being CreatedContributing to India’s economic development byITexpanding payment services to over 400 millionpeopleEnergyManaging 25% of the world’s substations andproviding stable energy to around 1.8 billion peopleProviding a safe and secure water environment toIndustry70 million users per day by providing water supplyand sewerage systemsMobilitysolutionsSmart utionsProviding railway services that are safe, secure,Mobilitypleasant, and environmentally conscious to 18.5 billionpassengers per yearContributing to improvements in people’s quality ofSmart LifeProductProductProductProductProductlife by performing 20 billion blood tests and otherdiagnostic tests per yearRelevant SDGsSocial Innovation Business http://social-innovation.hitachi/en/2021 Mid-term Management Plan ebcast/190510.html09

overnanceAssuranceHitachi Sustainability Report 2020Sustainability ManagementSustainability Strategy Promotion Structure102-19 102-20 102-21 102-26 102-27 102-30 102-31 102-32 102-33 102-34 102-46 103-3Hitachi, Ltd.’s Executive Sustainability Committee comprises President and CEO Toshiaki H

Editorial Policy Contents Introduction Management Environmental Social Governance Assurance Hitachi Sustainability Report 2020 102-45 102-50 102-51 102-56 102-46 102-52 02 Basic Concept The Hitachi Sustainability Report 2020 presents our stance toward environmental (E), social (S), and governance (G) issues, and details the activities we undertook in relation to these in fiscal 2019.

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