Information Disclosure Based on TNFD Recommendations: General Requirements

Application of Materiality

In response to the demands of society, the Hitachi High-Tech Group has identified five materiality in order to clarify what social issues we should address and how we can benefit society by utilizing our business characteristics and business models. The first of these, “contributing to a sustainable global environment,” was chosen in light of the growing seriousness of environmental issues, including climate change, dwindling resources, loss of biodiversity, and other issues. We believe that only by protecting the global environment can society and sound markets function, making our business and our daily lives possible. From the perspective of contributing to a sustainable global environment, we have now evaluated the impact of natural capital on business activities and impact of business activities on natural capital.

Scope of Disclosure

This report covers the entire value chain (direct operations and upstream) for evaluation and disclosure. The scope of direct operations is all Hitachi High-Tech consolidated Group companies, while the scope of upstream is major suppliers. We have four business domains: Nano-Technology Solutions, Healthcare Solutions, Core Technology Solutions, and Value Chain Solutions manufacture our main products. As for the scope of disclosure, using the scoping process, we decided to focus our evaluation on the three business domains of Nano-Technology Solutions, Healthcare Solutions, and Core Technology Solutions which manufacture our main products.

Locations of Nature-related Issues

In line with the definition of nature-related sensitive locations in the TNFD, we used several biodiversity risk assessment tools based on geographic information to evaluate and further weigh material locations. These were scored and prioritized using our own method.
The results of our evaluation of Japan, China, the U.S., Germany, and Finland as locations with nature-related issues are available to the public. Further, the initiatives of the locations that were designated as priority locations as a result of our evaluation are introduced below.

Integration with Other Sustainability-related Disclosures

To integrate our disclosures with other sustainability-related disclosures, we have aligned them with the disclosures already made in the TCFD framework on climate-related issues. This is because the TNFD disclosure framework was originally developed based on the TCFD, and we also consider the relevance of climate scenarios in our biodiversity scenario analysis.

Time horizons considered

Consistent with our scenario analysis of climate-related issues, we have evaluated the situation from a short-term (three years), medium-term (FY2030), and long-term (FY2050) time perspective. We then estimated the business environment in 2030 and 2050.

Engagement with Local Communities and Stakeholders in Identifying and Assessing Nature-related Issues

In accordance with our Multi-Stakeholder Policy, the Hitachi High-Tech Group aims to be a successful enterprise trusted not only by shareholders but also by all our stakeholders, including employees, business partners, customers, creditors, and local communities. Through business activities that emphasize value creation through high-tech solutions, we will engage in collaboration with multi-stakeholders where appropriate, and contribute to the progress and development of society. We are committed to open, transparent, and reliable business practices. As we continue to grow, we will value the environment and strive to build a prosperous community, fulfilling our social responsibility and contributing as a corporate citizen with passion and pride in our work.
With this TNFD-based disclosure, we will continue to promote engagement with all stakeholders related to the risks and opportunities associated with natural capital.