Sustainability of the Kasado site

Hitachi Rail’s mission is to improve the quality of human life by enabling people to do more and feel better. The company has committed itself to do this in an environmentally and socially responsible manner.

To ensure the diversity of the Organization and to the medium-to long-term growth of corporate value, the Midterm Management Plan and other matters related to management strategies, each Director has contributed comments drawing on their knowledge and experience and conducted lively discussions on the included topics.

Corporate Governance

Hitachi Rail’s mission is to improve the quality of human life by enabling people to do more and feel better. The company has committed itself to do this in an environmentally and socially responsible manner.

To ensure the diversity of the Organization and to the medium-to long-term growth of corporate value, the Midterm Management Plan and other matters related to management strategies, each Director has contributed comments drawing on their knowledge and experience and conducted lively discussions on the included topics.

Our People

For the purpose of promoting society, local high school students and industrial high school students were adopted in priority.

Develop to the program for enhancing communication, we held a behavior safety workshop inviting external instructors and conducted activities that enhanced employee resilience. Conducted to traffic safety measure program and continuous improvement measures to prevent Covid-19 infection. We conducted stress check evaluations and developed an EAP (Employee Assistance Programme) to line managers with high-stress tendencies for fatigue management.

Risk management

Premises developed an external warehouse cost reduction program. We had reviewed the optimised storage in the premises and achieved quality improvement. As a result of reviewing the workplace Heating, Ventilation & Air Conditioning system, the ventilation system was improved.

Develop countermeasures to prevent work related accidents in Kasado works. The business environment is changing day by day, impacted by the continued advance of information and communications technology, such as the Internet of Things (IoT), and geopolitical risks arising from complex shifts in global political and economic conditions. Kasado Works aims to create new revenue opportunities while controlling risk.

In order to achieve this, we maintain a clear understanding and analysis of the operating environment, taking into account social issues, as well as our competitive advantages and management resources. We also conduct risk management with an eye toward the many risks the company should be prepared for as well as opportunities for growth.

The Environment

Regarding Waste management; The target is to achieve zero final disposal and 100% recycling of waste. In order to contribute to the recycling-circular economy society as a waste reduction program, a change from wooden pallet to corrugated cardboard was carried out.

Monitor the efficiency of production processes. Many activities that are part of orignal equipment initiatives will directly address this requirement. Within the environmental sustainability arena, a broader understanding of efficiency, known as eco-efficiency, has been developed to help overcome this narrow focus.

▪ Increasing resource productivity by minimizing the use of materials, energy, water, and land required to produce or provide our products and services;

▪ minimizing discharges, especially of toxic substances, to air, water and land, while increasing the use of renewable materials;

▪ redesigning products to increase their service value while maintaining functions that the customer needs and wants. This can be done by increasing product functionality or flexibility (i.e. by making products that are modular in construction);

▪ using smaller quantities of materials through increased yields, substitution, recycling and reuse;

▪ using materials derived from renewable feedstock;

▪ running factories at higher capacity and rates of use;

▪ discharging fewer toxic wastes and in smaller quantities;

▪ increasing the efficiency of work equipment, i.e. computers, photocopiers, lighting, heating, pumps;

▪ increasing the efficiency of equipment/ machines, dryers, heat exchangers, steam traps, temperature controllers;

▪ reducing energy network distribution losses by generating energy closer to where it is needed.

The pond on the premises of the Kasado Works is inhabited by native species (Rare plants and animals; Moths, Gentians, etc.), which we have protected. We are also removing non-native plant species. It is also important to promote the coexistence of the project and the ecosystem by inviting residents to visit the site.

Sustainable Supply Chain

Apply to the legislative requirements to comply with the REACH/ROHS/RAEE regulations. Commitments for the future:

▪ Periodically review business activities to evaluate the increased economic, social and environmental value achieved and communicate this to shareholders.

▪ Employ efficient, effective, beneficial and continuously improving work practices that balance and optimise human, technological, economic and natural resources.

▪ Wherever feasible, use resources derived from sustainable sources, recycled materials and less hazardous materials.

▪ Assess the potential environmental impacts of planned discharges to land, water or air and select options that minimize overall economic, social and environmental impacts.

Sustainability topics and contribution to SDGs

Sustainability topics and contribution to SDGs “Hitachi Rail will reduce its environmental impact, develop a sustainability culture and improve quality of life for our people and communities”

(A. Razeto, Group Head of CSR and Sustainability)

The UN Environment Programme’s Emissions Gap Report 2020 found that global greenhouse gas (GHG) emissions hit a new high of 59.1 gigatonnes (Gt) of CO2 equivalent in 2019.

Over the past decade, emissions have continued to increase at a rate of 1.5% per year, rising in all major economic sectors.

Particularly, a closer look at GHG emissions breakdown by economic sector reveals that:

Power production today generates the largest share of GHG emissions (30%). About 50% of electricity comes from burning fossil fuels, mostly coal and natural gas.

▪ Industry represents the second-largest share of GHG emissions (21%), burning fossil fuels for energy, as well as GHG emissions from mineral products (such as cement) and other chemical reactions necessary to produce goods from raw materials.

▪ The Transportation sector contributes around 16% of global GHG emissions, with road transport being primarily responsible (94% of the sector). Rail, shipping and aviation are relatively smaller, with emissions in international territory comprising 4% of total.

▪ Agriculture contributes 16% of total GHG emissions, with most emissions coming from enteric fermentation (ruminant animals, such as cattle), nitrogen fertilizers on agricultural soils, and municipal waste.

▪ Buildings contribute to 7% of global GHG emissions, arising primarily from fossil fuels burned for heat.

Should this pattern continue, the world is projected to warm by 3°C to 5°C by 2100, with catastrophic effects on human civilization. To prevent this risk, a major turnaround in emissions trajectories is needed in all sectors (reduction of approximately 3-6% per annum between now and 2030) to limit the rise in surface temperatures and avoid catastrophic climate change effects.

In 2015, world leaders met in Paris and agreed to limit the global temperature rise by the end of the century to well below 2°C and to pursue efforts to limit the temperature increase even further to 1.5°C.

According to the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5°C requires net human-caused carbon dioxide (CO2) emissions to fall by 45% by 2030 and to reach net-zero by 2050. Even limiting the temperature rise to 2°C will need CO2 emissions to fall by 25% by 2030, requiring a turnaround of the present trend and approximately $75 trillion in investment.

In 2015, the United Nations presented 17 Sustainable Development Goals (SDGs) to be achieved by 2030. Combined with the company mission to contribute to society through the development of superior, original technology and products that power sustainable connectivity, Hitachi Rail is well-positioned to make a meaningful contribution to achieving the selected SDGs. Sustainability is at the heart of our business; we have an obligation to inspire and build a better and more sustainable future for employees, customers, and all users of products.