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Environmental Report

Environmental Performance

Environmental Initiatives within the Supply Chain

Hitachi Chemical Group’s core segments—functional materials, energy storage and system devices, and automotive products—are playing a major role in making our customers’ finished products smaller and lighter as per their needs. As a result, the Group is contributing to reducing environmental impact throughout the supply chain. Following the rise of overseas sales as a component of overall revenue, we are also helping to reduce the environmental impact of transportation that has emerged in association with the increased local manufacturing.

Curbing Product-derived Environmental Impact

Hitachi Chemical Group is participating in activities that help our customers curb product-derived environmental impact by promoting sustainable engineering that capitalizes on our strengths as a manufacturer of high-performance materials and energy storage devices. In our Medium-term Management Plan starting in fiscal 2016, we have set a goal for the reduction of resource usage in a subsection of products and are promoting various activities to achieve this goal. We will continue to make further improvements to our target products and contribute to the reduction of product-derived environmental impact.

Scope 3

The Hitachi Chemical Group also calculates greenhouse gas emissions throughout its entire value chain. In fiscal 2013, we started calculating emissions in the upstream processes of 8 out of 15 total categories based on the Ministry of the Environment’s Basic Guidelines for the Calculation of Greenhouse Gas Emissions Volume throughout the Supply Chain Ver. 2.1. In regard to downstream processes, we calculated the greenhouse gas emissions volume of our main products through Life-Cycle Analysis, LCA, and are planning to make further calculations based on these results. Aside from anisotropic conductive film, we implemented LCA for 3 products in fiscal 2016. In fiscal 2018, we are planning to implement LCA for 18 products.

Going forward, by improving the accuracy and expanding the scope of Scope 3 calculation, we will utilize the calculations to reduce greenhouse gas emissions volume throughout the entire value chain.

Greenhouse gas emissions
Scope Category Description Applicable sites* Emissions Year on Year
FY 15 FY 16
1 - Direct emissions B 144,262 145,849 1%
2 - Indirect emissions B 541,073 560,113 4%
3 1 Purchased products and services A 596,800 554,300 -7%
2 Capital goods B 90,500 109,900 21%
3 Fuel and energy-related activities not included in the scopes 1 and 2 B 36,800 38,600 5%
4 Transportation and distribution (upstream) A 21,500 21,100 -18%
5 Wastes from business activities A 26,300 33,700 28%
6 Business trips C 8,100 8,500 5%
7 Employee commuting C 5,300 5,500 4%
8 Lease assets (upstream) - N/A N/A -
9 Transportation and distribution (downstream) - (Under consideration) (Under consideration) -
10 Process of sold products - (Under consideration) (Under consideration) -
11 Usage of sold products - (Under consideration) (Under consideration) -
12 Disposal of sold products - (Under consideration) (Under consideration) -
13 Lease assets (downstream) - N/A N/A -
14 Franchise - N/A N/A -
15 Investment - 15,900 3,700 -77%
Total: 1,724,300 1,477,862 -14%

Applicable sites: A — major production sites (42 sites at 24 companies). B — sites of consolidated companies. C — Hitachi Chemical Co., Ltd.

Product Recycling

Although some products made out of chemical materials are extremely difficult to recycle, Hitachi Chemical works to promote activities that maximize efficient resource utilization to the fullest extent possible. While such composite materials as wiring boards and carbon fiber-reinforced plastic were very difficult to collect and separate into component materials for recycling, we have established collection and separation technology based on a method for depolymerizing unsaturated polyester under ordinary pressure that allows us to separate composite material wastes into resins, fibers, metals, and rare metals and to collect them to reuse as recycled materials. We are currently working to develop a business that collects waste materials from customers and sell them as recycled materials. Additionally, our energy storage devices and systems business actively cooperates with organizations such as the Battery Association of Japan to establish a framework for recycling automotive storage batteries. We also have acquired regional certifications for collecting industrial batteries to push further ahead with efficient and appropriate recycling of used batteries.

Environmental Impact of Transport

In the Hitachi Chemical Group, only our company falls into the category of designated shippers under the Japanese Energy Saving Law. We are also working to reduce the environmental impact of transport at our other major production sites in Japan, including at other Group companies in Japan.

In fiscal 2016, we achieved a 2% reduction in transport-associated CO2 emissions over the previous year and a 3% improvement in CO2 emissions per production unit by pursuing greater transport efficiencies and making modal shifts. As we have been increasing local production following the increase in the share of overseas sales within the Hitachi Chemical Group, we are seeing improvement in reductions in the environmental impact of air and marine transport associated with exports from Japan.

Environmental Impact of Transport

Environmental Impact of Transport

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