Hitachi Selected as “Excellent TCFD Disclosure” by GPIF’s External Asset Managers for the Third Consecutive Year
Hitachi, Ltd. (TSE: 6501) has been selected as an “excellent TCFD*1 disclosure” from external asset managers entrusted with the Japanese equity investment of Japan’s Government Pension Investment Fund (GPIF) forthe third consecutive year. Hitachi received a high evaluation from eight asset managers, which is the highest number among the selected companies.
The reasons for the selection are as follows.
The description of each item is in line with the TCFD Recommendations and Implementation Guidance and the high level of initiatives. The descriptions are also very clear.
For each business segment, segment strategies are disclosed in a matrix based on the business environment, risks, and opportunities under the 1.5°C and 4°C scenarios and the market environment perception based on factors other than the environment that do not depend on the 1.5°C and 4°C scenarios. The company clearly states that it is highly resilient under any scenario.
The 1.5°C and 4.0°C scenario analysis for each of the main businesses, together with the consideration of non-environmental factors, indicates a high degree of resilience. The establishment of a green strategy promotion structure can be understood through sustainability-related meetings.
The contribution to decarbonization and the linkages to their own business are disclosed clearly throughout. Thedetailed disclosure of decarbonization business opportunities and reduction contributions shows a commitment to contributing to decarbonization through its business. It is also highly commendable that internal carbon pricing enables the company to invest in decarbonization.
Beyond the TCFD framework, high quality disclosures can be identified on climate change and related environmental topics. It can provide investors with clear and understandable information on key points, even though it covers multiple business areas.
All four items of the TCFD, including specific targets, detailed settings and use cases, are commended for their easy-to-understand disclosure to the reader.
Sustainability governance, particularly compensation governance, is highly effective. The company clearly states that it is highly resilient across the value chain through transition planning and scenario analysis. It expresses the size of its contribution potential and business opportunities through, for example, proactive disclosure of reductioncontribution targets and results.
There is a balanced disclosure of the actions that have been taken so far regarding the four TCFD elements ‘Governance’, ‘Strategy’, ‘Risk Management’ and ‘ Metrics and Targets’. In particular, the disclosure of actual andtargeted reductions in greenhouse gas emissions is easy to understand and highly evaluated.
Hitachi began disclosing risks and opportunities related to climate change with Hitachi Sustainability Report 2014. The requirement of the disclosure was highlighted in the TCFD Final Report (TCFD recommendations) released in 2017. In response, Hitachi expressed its support for the TCFD recommendations in 2018 and began enhancing its disclosures based on the TCFD recommendations with Hitachi Sustainability Report 2018. Additionally, since its establishment in2019, Hitachi has been actively involved as a planning committee member in the TCFD Consortium*2.
Going forward, Hitachi is committed to pursuing business activities aimed at achieving its Environmental Vision and long-term environmental targets outlined in “Hitachi Environmental Innovation 2050”, while also continue to advancethe disclosure of information in a demand of stakeholders.
(1) The Task Force on Climate-related Financial Disclosures (2) An organization that facilitates discussions on effective corporate information disclosure and aims to link disclosed information with appropriate investment decisions by financial institutions and others.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) andproducts. Hitachi operates under the business structure of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s consolidated revenues for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.
The Secretary for Environment and Ecology, Mr Tse Chin-wan, today (March 27) inspected various premises under the Municipal Solid Waste (MSW) Charging Demonstration Scheme to understand the premises’ preparatory work.
Accompanied by the Director of Environmental Protection, Dr Samuel Chui, and the Government Property Administrator, Mr Eugene Fung, Mr Tse inspected the designated refuse collection point and recycling area on one floor of the South Wing of the West Kowloon Government Offices, as well as the central refuse collection point in the basement. The officials were briefed by the relevant staff on the progress of the preparatory work for the Demonstration Scheme, including co-ordination with other departments in the building and the publicity work.
Mr Tse also visited the Café de Coral fast-food restaurant in Admiralty Centre, Admiralty, to inspect the process of handling waste in the kitchen, and listened to the views of the person-in-charge of the restaurant on MSW charging and problems that may arise during the implementation, as well as on practical arrangements and requirements of the operation. Mr Tse thanked the Café de Coral Group for its support to the Environmental Protection Department (EPD)’s implementation of the Demonstration Scheme.
“The premises under the Demonstration Scheme we visited today advised that they are fully prepared for the implementation. I expressed my heartful gratitude to the participating government departments, institutions and persons, particularly the participating premises for their support and collaboration. We believe that the experience and outcome of the Demonstration Scheme will assist the Government in better grasping the overall situation,” said Mr Tse.
Moreover, Dr Chui, together with EPD officers, today also paid a visit to Genius Court located in Kowloon City to observe on-site the preparatory work of this single-block residential building, particularly on how the property management company and the cleaning frontline staff are complementing the trial. He also chatted with residents who collected designated bags (DBs) for MSW charging at the management office to learn about the recycling facilities in the vicinity of the building. Dr Chui applauded them and thanked them for their participation in the Demonstration Scheme to join hands with the Government in taking this critical step forward.
The EPD started the preparatory work for the Demonstration Scheme in January 2024, including liaising with relevant bureaux and departments to identify suitable premises; discussing with the management of the selected premises; co-ordinating; as well as developing the framework and detailed workflow. The first group of premises covered under the Demonstration Scheme includes public and private residential buildings, “three-nil” buildings, shopping malls, restaurants and residential care homes. Taking into account the situation of each selected premise, the EPD has provided relevant Best Practice Guides and training materials on implementing MSW charging for reference, and briefed the property management practitioners or relevant representatives on their responsibilities.
The EPD officers had earlier visited the relevant premises to conduct on-site assessments to refine the scheme arrangements and assist responsible persons in getting prepared for the implementation of the Demonstration Scheme. The EPD has also prepared publicity materials such as posters, slogans and promotional videos for the selected premises to display in public areas and on every floor for notifying the residents or occupants about the relevant arrangements before the commencement of the scheme. EPD officers will then visit the residents or occupants of the selected premises to learn about their opinions, experiences and problems encountered.
The participating premises will start using DBs upon the commencement of the Demonstration Scheme on April 1. Therefore, it is expected that starting from April 2 most of the premises will collect waste disposed by using DBs. In addition to the arrangement on the technical aspect of the trial, the Government will also collect views and experiences on the trial from different stakeholders through opinion surveys, with a view to better grasping the overall situation.
Hitachi, Ltd. (TSE: 6501) has been selected as a Supplier Engagement Leader, with the highest rating of“Supplier Engagement Rating” in 2023 by CDP, an international non-governmental organization in the environmental field. This is the third consecutive year that Hitachi has been selected as a Supplier Engagement Leader.
In 2023, Hitachi was also selected as a CDP A list company*1 (the highest rating) in the area of “Climate Change” in recognition of its leading efforts and highly transparent disclosures.
The CDP’s “Supplier Engagement Rating” evaluates corporate activities within supply chains regarding climate change and selects companies with especially excellent activities for its “Supplier Engagement Leader”. In 2023, 450+ companies were selected as Supplier Engagement Leaders by CDP.
Hitachi has established long-term environmental targets as “Hitachi Environmental Innovation 2050,” with the goal ofthe establishment of a sustainable society. Hitachi has been promoting sustainable management and working specifically to achieve the carbon neutrality of its business sites (factories and offices) by FY2030 and its entire value chain by FY2050. To achieve carbon neutrality throughout its value chain and develop sustainability-minded business activities that lead to the prosperity of both the Hitachi Group and its procurement partners(2), Hitachi has distributedthe Hitachi Group Sustainable Procurement Guidelines and Green Procurement Guidelines(3), requesting all procurement partners to set greenhouse gas reduction targets.
Hitachi drives Social Innovation Business to solve customers’ and society’s challenges and supports people’s quality oflife with data and technology that fosters a sustainable society.
(1) News release dated February 7, 2024: Hitachi Recognized as ‘A List’ on Climate Change for the Third Consecutive Year – www.hitachi.com/New/cnews/month/2024/02/240207c.html (2) Hitachi normally refers to its suppliers (including vendors or providers) as “procurement partners” who build business together on an equal footing. (3) Hitachi Group Sustainable Procurement Guidelines and Green Procurement Guidelines – https://tinyurl.com/88vxmn44
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states andregions. Founded in 2000 and working with more than 740 financial institutions with over $136 trillion in assets,CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests.Over 24,000 organizations around the world disclosed data through CDP in 2023, with more than 23,000 companies – including listed companies worth two thirds global market capitalization – and over 1,100 cities, states and regions.Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is afounding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more
About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) andproducts. Hitachi operates under the business structure of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s consolidated revenues for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.
Eisai Co., Ltd. announced today that it has been selected for the first time by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) as one of the Nadeshiko Brand 2024, as a listed company excelling in the promotion of women in the workplace.
The Nadeshiko Brand initiative aims to introduce certain Tokyo Stock Exchange(TSE)-listed enterprises that are outstanding in terms of encouraging women’s empowerment in the workplace as attractive stocks to investors who place emphasis on improving corporate value in the medium- and long-term, thereby further raising investors’ interest in such enterprises and accelerating the encouragement of women’s empowerment and information disclosure in outstanding enterprises. The initiative has been co-conducted by METI and TSE since FY2012.
Eisai’s Articles of Incorporation defines employees as one of the major stakeholders and specifies that Eisai endeavors to “respect human rights and diversity,” “providing full opportunities for growth in support of self-fulfillment,” and “create an employee-friendly environment” in addition to “ensuring stable employment”. In line with this, Eisai has formulated an “Integrated HR Strategy” and have been implementing human resource policies with the pillars of “well-being including employee health”, “diverse workstyle”, “employee growth”, and “organizational and business growth”, that ensure both individuals and the organization grow together.
Diversity is a source of innovation and an important approach to realize our corporate concept. Eisai has been promoting the creation of a corporate culture in which people with diverse values can play an active role regardless of nationality, gender, age, or other factors. In 2021, Eisai formulated a 10-year plan, named “Eisai Diversity & Inclusion 2021,” which includes targets for the ratio of women in management positions and the rate of men taking paternity and childcare leave, as well as action plans to achieve these targets. Eisai is planning and promoting specific and effective measures tailored to the circumstances of each office.
Moreover, in 2023 Eisai published the “Human Capital Report 2023(PDF)” that focuses on its human capital initiatives and KPI linked to its human resource strategies within Japan. Eisai will continue to strengthen its global information disclosure and DE&I (Diversity, Equity & Inclusion) promotion.
Eisai is seeking to provide impact to various stakeholders by delivering new value to patients and the people in the daily living domain through the activities of our employees who are the only stakeholders that can directly contribute to our corporate concept, human health care.
For further details on Eisai’s human capital strategy, including DE&I promotion, can be found in the annual Value Creation Report, and on the Sustainability page of the corporate website.
Media Inquiries: Public Relations Department, Eisai Co., Ltd. +81-(0)3-3817-5120
MHI Selected as Licensor of CO2 Capture Technology for Leading Low Carbon Hydrogen Production Project in Cheshire, UK
– CO2 capture technology will be provided to KBR, Ltd., the selected technology provider to EET Hydrogen’s HPP2 1,000 MW project in the HyNet CCUS cluster – Technology provision for this UK CCUS project to help deliver industrial decarbonization
Mitsubishi Heavy Industries, Ltd. (MHI) has concluded a license agreement with Kellogg Brown & Root, Ltd. (KBR, Ltd.), an operating company of the first-tier American engineering firm KBR, Inc., to provide CO2 capture technology for a low carbon hydrogen production plant being established in Cheshire in northwest England. The project, Hydrogen Production Plant 2 (HPP2), will be constructed at the Stanlow Manufacturing Complex, which hosts one of the UK’s leading refineries. The project owner is EET Hydrogen, the leading player in low carbon hydrogen production projects in the UK. KBR, Ltd. will provide hydrogen production process technology and the front-end engineering design (“FEED”).
Stanlow Manufacturing Complex (photo courtesy of KBR, Ltd.)
Under the agreement, MHI will license its “Advanced KM CDR Process™”, CO2 capture technology developed in collaboration with the Kansai Electric Power Co., Inc., and also provide the process design package (PDP) for the new post combustion CO2 capture plant. HPP2 will have an annual hydrogen production capacity of nearly 230,000 tons, which is expected to be the UK’s largest-scale low carbon hydrogen plants when it begins operation. HPP2 is a key pillar of the HyNet carbon capture, utilization and storage (CCUS) cluster. The captured CO2 will be permanently sequestered into depleted gas fields under the sea in Liverpool Bay.
The UK Government’s Department for Energy Security and Net Zero (DESNZ) has selected two initial clusters – HyNet (where EET Hydrogen is leading the critical hydrogen production projects) and East Coast. HPP2 augments the Hydrogen Production Plant 1 (HPP1) scheduled for construction as part of the large-scale low carbon hydrogen plant infrastructure planned by EET Hydrogen in the HyNet cluster.
MHI Group has formally declared its intent to achieve carbon neutrality by 2040, and the Company is now working strategically to decarbonize both the energy demand and supply sides. A core element of the Company’s “Energy Transition,” which targets decarbonization on the energy supply side, is the development of a CO2 solutions ecosystem integrating diverse sources of carbon emissions with modes for carbon storage and utilization. Going forward, MHI Group will continue to proactively promote its CCUS business worldwide, applying its proprietary CO2 capture technologies, contributing as a solutions provider to reducing greenhouse gas emissions on a global scale, and developing further solutions that contribute to environmental protection.
About MHI Group’s CO2 capture technologiesMHI Group has been developing the KM CDR Process™ (Kansai Mitsubishi Carbon Dioxide Recovery Process) and the Advanced KM CDR Process™ in collaboration with the Kansai Electric Power Co., Inc. since 1990. As of March 2024, the Company has delivered 16 plants adopting the KM CDR Process™, and two more are currently under construction. The Advanced KM CDR Process™ adopts the KS-21™ solvent, which incorporates technological improvements over the amine-based KS-1™ adopted at all 16 of the commercial CO2 capture plants delivered to date. The advanced version offers superior regeneration efficiency and lower deterioration than the KS-1™, and it has been verified to provide excellent energy saving performance, reduce operation costs, and result in low amine emissions.
For further information on MHI Group’s CO2 capture plants: www.mhi.com/products/engineering/co2plants.html
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
