Hitachi Construction Machinery

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Our Approach towards SDGs

At the United Nations Sustainable Development Summit 2015, held in September, more than 150 UN member nations agreed on universal sustainable development goals.
Undertaking SDGs is not only a way to improve corporate value but a valid approach to strengthen stakeholder relations. Moreover, each SDG has an extremely close affinity to the HCM Group’s eight key initiative themes. Therefore, the HCM Group has scrutinized the relationship between its corporate activities and the SDGs to take action as part of its sustainable growth strategy capitalizing on its own strengths.

Sustainable Development Goal

Growth strategy and the SDGs

In fiscal 2018, we identified the correlation between the HCM Group’s activities and the SDGs and established 10 key theme goals.
The Hitachi Group is contributing directly and indirectly to all 17 goals set out in the SDGs. As for our 10 key theme goals, we believe that we can meet and beat each target through our business strategy.

SDGs goals Main ongoing initiatives Anticipated effects
SDGs4 Ensure inclusive and equitable quality education and promote lifelong learning [Activities for education]
• Support acquisition of qualifications from training institutes
• Assistance at Hitachi Construction Machinery Songgang Xi Wang Elementary School in China
• Manufacturing Technology Transfer Promotion Program in India
• Internship program in Zambia
• Supporting self-reliance in Cambodia
• Participate in construction machinery fairs for education
Develop children and leaders of the future
[Provide technology acquisition and educational]
• opportunities for employees
• Implementation of succession plan
• International Skills Competition
• Hold service mechanic competitions
Increasing the skill level of individuals and technical levels in Japan and abroad contributes to sustainable growth
SDGs5 Achieve gender equality and empower all women and girls [Empower women in the workplace]
• Developing female instructors at training centers
Encourage gender equality, etc., by providing a work environment that provides a high level of motivation to women
SDGs6 Ensure availability and sustainable management of water and sanitation for all [Reduce emissions and prevent pollution]
• Identify areas with high water stress level
• Reduce water usage in business activities
• Management of chemical substances (Reduce water risk)
Support local communities by ensuring sustainable management of water and conducting water-saving activities in areas of high risk
SDGs7 Ensure access to affordable, reliable, sustainable and modern energy for all [Reduce environmental impact for manufacturing processes]
• The introduction of “Emilia” electric power monitoring system
Realize efficient energy use by adopting proprietary technology on the manufacturing floor
[Utilize renewable energy]
• Install solar panels
Ensure access to affordable, reliable, sustainable and modern energy
SDGs8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all [Expand new businesses globally]
• The parts remanufacturing business
Contribute to creating local employment opportunities and economic growth by hiring locally
[Business structure reform]
• Restructure domestic development and production bases
Achieve decent work for all and realize a safe and efficient production line
Value Creation Story 2
[Work Style Reform]
• Reinforce occupational safety and health
• Employee health advancement
• Promote diversity
• Equal labor and wages
• Elimination of forced and child labor
Promote sustainable economic growth, full and productive employment through promoting decent work for all

* “Diversity promotion” correlates with SDG 5 depending on the case.

[Promote a safe and secure work environment]
• Corporate Governance
• Compliance
• Human rights initiatives
Strengthen organization and improve corporate value thereby enhancing economic productivity through initiatives in governance

* “Respect for human rights” correlates with SDG 5 depending on the case.

SDGs9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation [Develop products and solutions using ICT and IoT]
• Expand Solution Linkage
• Develop labor-saving machinery that is unmanned/uses robotics
Support economic development and general welfare and realize a safe and productive labor environment through innovative technological development that creates new value

* “Development of labor-saving machinery” correlates to SDG 8

[Enhance services globally]
• Establish regional sales companies
Contribute to local infrastructure and economic development by expanding sales channels
[Risk management]
• Formulate Business Continuity Plan (BCP)
• Enhance the Business Continuity Management (BCM) structure
• Increase resilient residential areas
Develop resilient infrastructure and promote sustainable industrialization through measures against risks faced by businesses such as natural and man-made disasters (terrorism and civil unrest)

* “Increase resilient residential areas” correlates to SDG 11

SDGs11 Realize inclusive, safe and resilient cities and human dwellings that are sustainable [Supply and support construction machinery]
• Develop infrastructure in each country
• Supply rental equipment to local governments
Achieve a sustainable urban and living environment resilient against disasters
Value Creation Story 4
SDGs12 Ensure a sustainable consumption production pattern [Enhance value chain business]
• Expand rental business globally
Ensure a sustainable consumption and production pattern by enhancing the value of the product life cycle
Value Creation Story 1
[Reuse and recycling of products]
• Initiatives of the parts remanufacturing business
Contribute to reduction of waste
[Provide accurate information on products and services]
• Prompt disclosure of recall information
• Prevent risk in the supply chain (mainly procurement related)
Ensure sustainable a consumption and production pattern
[Improve the quality of our products]
• Realize the vision of “Made by Hitachi” uniform worldwide quality
• Increase used equipment distribution
• Developing technologies for competitive differentiation
Minimize environmental impact through ensuring a sustainable consumption and production pattern while maintaining safety and quality throughout the product life cycle

* “Develop distinctive technology” correlates to SDG 9

SDGs13 Take urgent action to combat climate change and its impacts [Development of clean technologies and environmentally con- scious technologies]
• Hybridization of construction machinery
• Electrification of construction machinery
Contribute to minimizing risks of climate change through developing and putting into practical use construction machinery with low-carbon technologies
Value Creation Story 3
[Address risks of climate change]
• Introduce solar power generation
• Introduce internal carbon pricing
• Conserve water resources
• Consider biodiversity
Contribute to solutions for global environmental issues by adopting renewable energy and introducing energy saving equipment

* “Introduce solar power generation” correlates to SDG 7, “Conserve water resources” to SDG 6, and “Consider biodiversity” to SDG 15

SDGs17 Enhance means of sustainable development and revitalize the global partnerships [Development support in local communities through cooperation with outside organizations]
• Assistance at Hitachi Construction Machinery Songgang Xi Wang Elementary School in China
• Desert afforestation activities in the Horqin Desert in China
• Manufacturing Technology Transfer Promotion Program in India
• Supporting self-reliance in Cambodia
Help energize innovation using global partnerships
[Promote CSR throughout the entire value chain]
• Promote fair procurement among suppliers
• Pass down and transfer technologies globally
Energize global partnerships
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