Hitachi : Selected as a constituent of 'FTSE4Good Index Series' and 'FTSE Blossom Japan Index'
January 26, 2021 at 06:22 am EST
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Hitachi, Ltd. (TSE:6501, 'Hitachi') today announced that the company has been selected as a constituent of the 'FTSE4Good Index Series' and the 'FTSE Blossom Japan Index,' world-leading ESG (Environmental, Social, and Governance) indexes.
In recent years, ESG investments have been gaining momentum in the capital market, as companies evaluate and decide on investments from ESG perspectives. The 'FTSE4Good Index Series' and the 'FTSE Blossom Japan Index' are among the most important criteria used by investors worldwide for corporate ESG activities. The 'FTSE Blossom Japan Index' has been adopted as a passive ESG investment management benchmark selected by the Government Pension Investment Fund (GPIF), the world's largest public pension fund.
Since its establishment, based on the corporate philosophy of 'Contributing to society through the development of superior, original technology and products,' Hitachi has demonstrated continued growth alongside the development of society. In the 2021 Mid-term Management Plan announced in May 2019, the company put forward goals for simultaneously increasing three types of value for society and the customers - Social value, Environmental value, and Economic value - as part of efforts to achieve a sustainable world. In this Mid-term Plan, milestones for achieving the long-term environmental goals laid out in 'Hitachi Environmental Innovation 2050' are reflected in management strategies for business rollout. As a leader in environmental value in particular, Hitachi announced 'Hitachi Carbon Neutrality 2030' to assist in building a decarbonized society, and is accelerating activities aimed at achieving carbon neutral in its own business site (factories and offices) by FY2030.
Hitachi will strive to develop and provide new solutions that apply digital technologies to take on a variety of challenges, including ESG, for customers and society. By improving Quality of Life and increasing value for customers, Hitachi will contribute to building a sustainable society.
About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is focused on its Social Innovation Business that combines information technology (IT), operational technology (OT) and products. The company's consolidated revenues for fiscal year 2019 (ended March 31, 2020) totaled 8,767.2 billion yen ($80.4 billion), and it employed approximately 301,000 people worldwide. Hitachi drives digital innovation across five sectors - Mobility, Smart Life, Industry, Energy and IT - through Lumada, Hitachi's advanced digital solutions, services, and technologies for turning data into insights to drive digital innovation. Its purpose is to deliver solutions that increase social, environmental and economic value for its customers.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).