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Sustainability Report 2026 Our ,Pledges Our Future
Report editorial policy Basic concept The Hitachi Sustainability Report 2026 outlines our ,approach strategies and key initiatives for sustainability undertaken in 2025.fiscal This report is intended as an engagement tool for all stakeholders to disclose information in accordance with international ,guidelines including the disclosure requirements of the GRI Standards and the industry disclosure standards relevant to Hitachi as defined by the Sustainable Industry Classification (System SICS of) the Sustainability Accounting Standards Board .)SASB( Our information disclosures related to climate change are based on the recommendations of the Task Force on relatedClimate Financial (Disclosures .(TCFD About subject notation ,Hitachi .:Ltd Only refers to ,Hitachi (.Ltd (consolidated-non :Hitachi Refers to the Hitachi Group including ,Hitachi .Ltd Key guidelines GRI• ,Standards Global Reporting Initiative SASB• ,Standards IFRS Foundation Environmental• Reporting ,Guidelines Ministry of the ,Environment Japan TCFD• Recommendations Report overview Period This report mainly covers fiscal 2025 April( 1, 2025, to March 31, (2026 :Note Some information on activities in April 2026 and after is also included Companies ,Hitachi .Ltd and its consolidated subsidiaries Reporting boundary Financial :data 824 ,companies namely ,Hitachi .Ltd and 823 consolidated ,subsidiaries method-equity ,associates and joint ventures Environmental :data 607 ,companies namely ,Hitachi .Ltd and 606 consolidated .subsidiaries Based on the Environmental Management Classification ,Criteria all Hitachi Group sites are classified into three (categories ,A B and 1*(C . The reporting boundary for environmental data is determined in accordance with the environmental risks associated with each .category The reporting boundary for each item is specified in the notes to the relevant .section Social and governance :data Boundary of individual data indicated Reporting cycle Published every year as an annual report Publication date September (2026 Previous :report September (2025 party-Third limited assurance To enhance the credibility of the disclosed sustainability ,data the Hitachi ESG Data Book 2026 received party-third limited assurance from Ernst & Young ShinNihon LLC for environmental performance .indicators The assurance was conducted in accordance with the International Standard on Assurance (Engagements ISAE (3000) ,)Revised and assurance for greenhouse gas emissions was conducted in accordance with ISAE 3410. The indicators that were assured are marked with a . 1* :A High environmental ,risk :B Medium environmental ,risk :C Low environmental risk Our reporting universe Hitachi Global Sustainability Investor Relations Our reporting universe Hitachi publishes three corporate :reports the Integrated ,Report the Sustainability Report and the Annual Securities .Report Each report discloses information that differs in terms of (content from quantitative information to strategic information and) time horizon from( past results to -medium to term-long .)perspectives In ,particular the Integrated Report and the Sustainability ,Report which are released on the same ,day can be read together to confirm sustainability initiative progress and data in addition to management .strategies We also invite you to visit our websites for additional .information party-Third limited assurance Value Creation Strategy Quantitative Information Results -Mid to Term-Long Perspective Corporate・ Strategy Briefing Materials Corporate・ Governance Report Business・ Report Financial・ Results Sustainability Report Integrated Report Annual Securities Report Hitachi Sustainability Report 2026 Our story Sustainability management Sustainability management Planet Planet Leadership / Empowerment Diverse perspectives Leadership / Empowerment Diverse perspectives Governance Governance Engagement Engagement Sustainability for all ESG data Sustainability for all ESG data 002
Contents Report guide 002 Report editorial policy 003 Contents Our story 005 Inspire the next 006 Message from our CEO 008 Message from our Chief Sustainability Officer 010 Business overview 012 From our foundation to our future 013 Our sustainability journey 014 Inspire 2027 management plan 015 Our PLEDGES for the future 018 Delivering positive impact Sustainability management 025 Hitachi Group sustainability strategy — PLEDGES 032 Sustainability strategy management structure 034 Sustainability initiatives and external evaluation Planet 040 Environmental vision and term-long environmental targets 043 ,Products services and solutions that support green (transformation (GX 048 Environmental governance 051 Decarbonization 058 related-Climate financial information (disclosure based on TCFD (recommendations 065 Circular economy 068 Nature positive Leadership and Empowerment 077 Global human capital management 087 Fulfilling and rewarding workplace Diverse perspectives 091 ,Diversity opportunity and inclusion Governance 098 Health and safety 104 Quality and product safety 107 Business ethics and compliance 114 Information security 118 Risk management 122 Corporate governance Engagement 130 Human rights 135 Sustainable procurement 141 Customer satisfaction Sustainability for all 144 Social contribution activities ESG data 148 Environmental data 157 Social data 166 Governance data Hitachi Sustainability Report 2026 Our story Sustainability management Sustainability management Planet Planet Leadership / Empowerment Diverse perspectives Leadership / Empowerment Diverse perspectives Governance Governance Engagement Engagement Sustainability for all ESG data Sustainability for all ESG data 003
Our story In this section 005 Inspire the next 006 Message from our CEO 008 Message from our Chief Sustainability Officer 010 Business overview 012 From our foundation to our future 013 Our sustainability journey 014 Inspire 2027 management plan 015 Our PLEDGES for the future 018 Delivering positive impact Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 004
In a world of constant ,progress Hitachi is keeping ,pace evolving and improving how we do things to solve some of s’society most complex .challenges Inspire the next This mindset of continuous growth has driven us for more than 116 years It will continue guiding us into the ,future placing innovation at the heart of our DNA as we harness the power of data and technology to advance a more sustainable .society re’We creating change that inspires the world By transforming social infrastructure through digital ,technology we are building a future in which environmental ,sustainability human wellbeing and economic growth advance .together It is how we will realize our mission of contributing to society through the development of ,superior original technology and .products We rise to meet new possibilities United by a wide-Group commitment to ,harmony sincerity and — above all — pioneering ,spirit we work together to inspire new possibilities for our customers and .society Hitachi Sustainability Report 2026 Our story Our story Sustainability management Sustainability management Planet Planet Leadership / Empowerment Leadership / Empowerment Diverse perspectives Diverse perspectives Governance Governance Engagement Engagement Sustainability for all Sustainability for all ESG data ESG data 005
Message from our CEO Accelerating our transformation toward sustainable growth under an unchanging mission Namihei Odaira founded Hitachi under the “mission to contribute to society through the development of ,superior original technology and .products Since” our ,founding Hitachi has contributed to the advancement of social infrastructure that supports s’people .lives Over the course of our 116 years of ,history we have grown alongside society while taking on those social challenges that emerge with changing .times Under this unchanging ,mission we are accelerating transformation based on the current management plan Inspire 2027, aiming to achieve a Harmonized Society where the ,environment wellbeing and economic growth are in .balance Fiscal 2025 was the first year of Inspire 2027, ,and despite an extremely uncertain business ,environment we capitalized on market needs for sustainable social .infrastructure As a ,result we saw growth in the power grids ,business rail control ,business and Japanese IT ,business while expanding the Lumada ,business which serves as a source of continuous and stable ,revenue across all .sectors As a result of our ,efforts revenues rose 8% year on year to 10,586.7 billion yen with an .Adj EBITA margin of 12.4%. Net income amounted to 802.3 billion ,yen core free cash flow was 1,170.2 billion yen and ROIC was 12.4%. These three results represent record highs for the group and a strong start under Inspire 2027. ,However we will not be .complacent The world is at a major turning ,point marked by geopolitical ,risks increasingly severe climate change and advances in driven-AI technological .innovation In ,particular advances in physical ,AI which exerts direct control over the real ,world will transform the very nature of social .infrastructure For ,Hitachi these changes present opportunities for further growth and value .creation At the same ,time these changes signal a new phase of competition with peers around the .world Toshiaki Tokunaga President & CEO Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 006
Creating value as a Digital Infrastructure Company Incorporating physical AI into social infrastructure is an area where ,Hitachi which has supported critical-mission social infrastructure for ,generations truly demonstrates our .value High reliability and safety are essential in the field of physical ,AI where a single error could have a significant negative impact on social .infrastructure Hitachi has a long history of supporting social infrastructure around the world across a wide range of business .fields We have not only brought numerous products and systems to the ,market but we have also built a vast treasury of data and expertise from practical .operations We will analyze this data using domain knowledge and AI to offer digital services that enhance site-on safety and .productivity In this ,way we will create new value for our customers and ,society fulfilling our commitment to becoming a leading-world Digital Infrastructure Company that continues to digitally transform social infrastructure that supports s’people .lives One concrete example is ,HMAX our ,powered-AI recurring Digital .Service HMAX leverages site-on data and domain knowledge that we have built up over generations and optimizes resource utilization and reduces environmental impact by extending the service life of ,equipment improving energy efficiency and so .forth At the same ,time HMAX enhances safety and ,productivity supporting the creation of resilient social .infrastructure Trust from society is the foundation of everything we are and .do Our founding ,spirit consisting of (Wa ,)harmony (Makoto (sincerity and (seishin-Kaitakusha pioneering ,)spirit as well as a fundamental emphasis on Basics and Ethics to do the right ,thing has been a shared value guiding our work at Hitachi for many .generations These elements are systematically organized into our sustainability ,strategy ,PLEDGES in light of current social challenges and the evolving business .environment Sustainability is the foundation of our management that drives us to solve social issues through our businesses and to achieve continuous .growth We strive to achieve the financial-pre targets under the strategic pillars of ,PLEDGES including themes of ,decarbonization circular ,economy human ,capital health and ,safety ,quality sustainable procurement and human .rights At the same ,time we seek to enhance effectiveness by incorporating them into the evaluation of executive .compensation Among the tangible ,accomplishments we achieved a 64% reduction in GHG ,emissions exceeding our fiscal 2025 target of 60%, through the adoption of saving-energy equipment and the expanded use of renewable energy sources as part of our efforts to achieve carbon neutrality at our business sites by fiscal 2030. In ,addition we are accelerating investments in the human capital that will drive future value creation and steadily building our talent .base As an ,example we expanded our pool of AI professionals to 39,000, making significant progress toward our fiscal 2027 target of 50,000. On the other ,hand while we fell short of our health and safety ,targets we are reinforcing our efforts in this area as one of s’management highest .priorities To ensure a safe working environment free from serious ,accidents including those involving contractors and partner ,companies we are strengthening measures across the .Group To advance the implementation of physical AI in critical-mission ,areas we must establish robust governance that ensures the ,reliability ,transparency and accountability of AI while respecting human rights and .privacy In ,parallel we must develop diverse talent that supports our growth strategy and strengthen engagement with business .partners These initiatives are woven into .PLEDGES Our steady execution of PLEDGES not only underpins the trust earned from our ,customers but also serves as the source of s’Hitachi sustained .competitiveness As One ,Hitachi we will continue to embed PLEDGES in our making-decision and ,actions enhancing business resilience through the achievement of financial-pre targets while steadily capturing new opportunities for .growth By pursuing improvements in both our financial-pre value and financial value ,together we will achieve sustainable growth in corporate .value Toward realizing the Harmonized Society we envision The social infrastructure of the future will require even greater levels of wide-society optimization through the tight interconnection of diverse systems and .operations We are confident that we can contribute to the realization of a Harmonized Society by becoming a Digital Infrastructure Company that leverages ,IT OT and product technologies and expertise accumulated over many ,years combined with a unified collection of diverse businesses and human .capital Every one of our 290,000 employees will continue to share the unwavering mission of contributing to .society ,Together we will create wellbeing and a sustainable society through greater ,environmental social and economic ,value working with our stakeholders for a better .future Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 007
For over a ,century Hitachi has driven social progress through .innovation ,Today with Lumada at our ,core we continue doing ,so connecting ,technologies industries and people to solve pressing global .challenges To advance true innovation and ,resilience we must lead with ,responsibility guided by our PLEDGES .strategy With PLEDGES as our action and makingdecision ,foundation our Inspire 2027 management plan aims to realize a society where the ,environment wellbeing and economic growth are in .balance Working “as One ,Hitachi we” combine our ,capabilities ,IT OT and products to create lasting value to deliver positive impact for ,customers society and our .business Lorena Dellagiovanna Senior Vice President and Executive ,Officer Chief Human Resources Officer and Chief Sustainability Officer Message from our Chief Sustainability Officer PLEDGES is s’Hitachi commitment for a more sustainable .future By embedding PLEDGES across our ,people operation and value ,chain we redefine our ,culture how we ,operate lead and “.grow ” Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 008
Toward a Harmonized Society With ,PLEDGES we are targeting sustainability for ,all combining our pioneering spirit with domain knowledge to strengthen Hitachi and enable a Harmonized .Society By ensuring our sustainability framework remains deeply embedded in our daily operations and wider business ,strategy together with our customers and ,partners we can collectively advance a future that is more ,resilient responsible and .inclusive Accelerating sustainable transformation Artificial intelligence is transforming the way we work and accelerating how we create .value At ,Hitachi we see AI as a force multiplier — empowering our people to amplify their ,expertise make better decisions and focus on the work that creates the greatest .impact Realizing this potential requires responsible .adoption We continue investing in the ,skills governance and culture needed to help our people harness AI ,confidently responsibly and .effectively By combining human expertise with ,AI we are strengthening ,innovation improving productivity and helping our customers and society accelerate sustainable .transformation Progressing with PLEDGES PLEDGES is how we do .business It guides the decisions we make every day and focuses our efforts on where we can create the greatest .impact As a global ,company we are advancing our response to environmental challenges as a core ,responsibility while accelerating our efforts as a key priority for building a sustainable society and achieving term-long business .growth Guided by our Environmental ,Vision we continue to accelerate ,decarbonization circularity and positive-nature initiatives by reducing ,emissions improving resource efficiency and deepening collaboration across our value .chain While challenges ,remain we are strengthening ,governance enhancing execution and leveraging driven-data making-decision to accelerate progress toward our carbon neutrality and zero-net .goals People are at the heart of our .business Their ,health safety and wellbeing remain our highest .priority We continue strengthening our ,systems capabilities and culture of shared responsibility to ensure everyone can work safely and .confidently We also continue investing in leadership development and fostering an environment where diverse perspectives drive innovation and everyone can ,grow contribute and .succeed Through our human capital ,strategy we are strengthening the ,capabilities individual leadership and culture needed to build a resilient organization that can ,adapt innovate and create term-long .value Trust is equally essential to sustainable .growth We are deepening a culture grounded in ,integrity ethics and ,compliance while advancing respect for human rights and environmental responsibility across our entire value .chain As One ,Hitachi we are embedding responsible actions and making-decision throughout all our business ,activities strengthening the trust that our stakeholders place in us and everything we .do Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 009
Hitachi by the numbers From industrial (sectors measurement and analytical ,instruments ,healthcare ,manufacturing distribution and water to) facility (domains building ,systems HVAC and industrial ,)equipment we deliver digital services combining reliability-high ,products domain expertise and physical AI to maximize customer lifetime .value Solutions in :action Advancing• ,safety ,productivity quality and environmental sustainability in buildings and factories Driving• innovation for line-front workers and improving s’people wellbeing From speed-high trains and digital signaling to smart technology and powered-AI ,operations we partner with customers to deliver seamless and sustainable mobility .solutions Solutions in :action Combining• advanced sensor technologies with the latest developments in AI and edge computing to maximize transportation ,performance extend asset life and optimize costs Enabling• ,smarter better optimized transportation systems Number of employees 287,901 Consolidated subsidiaries 606 Global revenue JPY B10,586.7 USD( (1B$70.1 Mobility Connective industries 1 Based on exchange rate JPY 151 to USD We have structured our business across the ,globe to make the biggest impact on the challenges facing society .today Through collaboration with our partners and ,customers and by bringing together the physical and digital ,worlds we will deliver real impact and advance sustainable .living Business overview Business sectors From power and utilities to ,renewables nuclear and industrial energy ,use we leverage advanced digital technologies and energy solutions to ensure a ,stable clean energy supply — powering a sustainable energy .future Solutions in :action Predicting• and preventing issues before they arise — maximizing ,uptime extending asset lifetime and optimizing performance and efficiency Helping• ensure ,secure reliable and sustainable operation of critical-mission energy infrastructure across the entire value chain From ,finance public ,services manufacturing and distribution to social infrastructure and industry-cross ,domains we accelerate digital transformation by integrating ,AI digital talent and domain .expertise Solutions in :action Integrating• critical-mission system expertise with AI technology to automate operations and enable precise risk prediction and management Accelerating• making-decision and maximizing operational efficiency while supporting the delivery of highly ,reliable autonomous financial infrastructure Digital systems & services Energy Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 010 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 011
For more than 116 ,years our founding “philosophy — contributing to society through the development of ,superior original technology and products — has” driven us to innovate technological solutions that solve the s’world greatest .challenges From our foundation to our future Our dedication to invention and unwavering focus on the future continue to drive our growth .today The founding spirit remains at the heart of our management ,approach guiding our commitment to contribute to society for current generations and those to .come Across our diverse ,businesses we create innovation that delivers positive impact — from energy solutions supporting a renewable future to services that improve ,health mobility and quality of .life This enduring commitment to progress inspires us to reimagine what is possible and build a more sustainable future for .all Sustainability and social impact have always been part of our .DNA As we advance our sustainability strategy PLEDGES and drive continuous ,innovation we are helping shape a more sustainable .future Leveraging our strengths in ,IT OT and ,products we accelerate the digital transformation of social .infrastructure As a Digital Infrastructure ,Company we aspire to realize a Harmonized Society where ,environment wellbeing and economic growth coexist in .harmony Our PLEDGES for the future Born in a time of social and industrial ,change Namihei Odaira aspired to contribute to society and improve s’people lives through .technology Determined to develop electric machinery through his own ,efforts he took on the challenge of machine development at the Hitachi .mine In 1910, after years of challenges and ,learning Odaira and a small team developed s’Japan first locally made horsepowerfive ,motor marking the beginning of .Hitachi Rooted in the values of (Wa ,)harmony (Makoto sincerity and) (seishin-Kaitakusha pioneering ,)spirit Hitachi has continued to create innovations that help society move .forward Where we started Where we are now Where we are heading Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 012
Environment Expanding carbon neutrality across the value chain Announced the target of achieving carbon neutrality across the value chain by fiscal 2050 Governance Enhancing ethical use of AI Established the Principles Guiding the Ethical Use of AI for the centered-human development of AI and its societal implementation Like ,innovation sustainability is a ending-never ,journey ,and at ,Hitachi we are continuously evolving how we operate to deliver better for ,people the planet and the .future Our sustainability journey Focusing on Social Innovation Business Shifted our business toward Social Innovation Business through a drastic transformation following a management crisis Governance Advancing governance reform Enhanced governance independence and transparency while strengthening interactions with capital markets Strengthening business ethics Established the Hitachi Group Codes of 1,Conduct clarifying common standards of conduct across the Group Environment Setting term-long environmental targets Formulated the Hitachi Environmental Innovation 2050 to address wideGroup environmental challenges Environment Setting the 2030 carbon neutrality target Announced the target of achieving carbon neutrality at factories and offices by fiscal 2030 Governance Strengthening the whistleblowing system Launched the Hitachi Global Compliance ,Hotline integrating multiple internal reporting systems across the Group Environment Introducing internal carbon pricing Commenced operation of Hitachi Internal Carbon Pricing )HICP( systems Social Fostering sustainable procurement Instituted the Hitachi Group Global Procurement 3Code to foster sustainable procurement To a more sustainable tomorrow Launching the Hitachi Group sustainability strategy Strengthened sustainability across the Group through the sustainability strategy PLEDGES Environment Updating term-long environmental targets Revised targets to focus on ,decarbonization circular economy and nature positive Validating zero-net targets The SBTi verified s’Hitachi zero-net based-science target for emissions reductions by fiscal 2050 2010 2013 2016 2019 2020 2021 2025 Social Enhancing human rights Established the Hitachi Group Human Rights 2,Policy outlining our commitment to respecting the rights of all stakeholders 1 Consolidated with the Hitachi Group Code of Ethics and Compliance and revised as the Hitachi Group Code of Ethics and Business Conduct in 2023 2* Updated in 2024 3* Issued the Hitachi Group Sustainable Procurement Guidelines for procurement partners in 2021 and updated them thereafter Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 013
The next stage of s’Hitachi growth Inspire 2027 management plan We bring together ,IT OT and products to drive the digital transformation of social ,infrastructure ,and through the Hitachi Group management ,plan Inspire 2027, are targeting a clear lookingforward :vision Revenue .Adj EBITA margin CF 2conversion ROIC 3Lumada revenue ratio 3Lumada .Adj EBITA margin YoY 8.2% 12.4% 103% 12.4% 40% 16% 1CAGR 9%–7 15%–13 Over 90% 13%–12 50% 18% Financial KPIs Harmonized Society Wellbein g Economic growth Pla n etary boundaries Enhancing sustainable growth Our business is built on a commitment to social innovation and we are evolving our position as a Digital Infrastructure ,Company leveraging our capabilities to drive ,sustainable financially resilient .performance To support ,this we have established a series of targets for increasing corporate value through sustainable .growth Delivering value to society We seek to harness the full value of our solutions to enhance ,wellbeing address global environmental challenges and foster economic .growth Through Inspire 2027 and our wideGroup sustainability ,strategy ,PLEDGES re’we incorporating responsible business ,considerations aiming to accelerate our positive impact on people and .planet Grow sustainably while contributing to a Harmonized Society where the ,environment wellbeing and economic growth are in balance Under Inspire 2027, we will endeavor to strengthen our business with Lumada as ,core enhanced by domain knowledge and .AI In an unpredictable business ,environment we aim to identify risks and remain agile to achieve ,enduring sustainable .growth Management plan Inspire 2027 1* 2027FY–2024FY 2* Core net/FCF (income excluding special (factors 3* Calculated based on revenue excluding certain business structural reform .operations Reflection of revenue consolidation offsets started from this period 2025FY results Inspire 2027 targets Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 014
With PLEDGES — our wide-Group sustainability strategy — we are working to create a ,better more sustainable future for people and the ,planet while advancing world-real .change Our PLEDGES for the future Hitachi Group Sustainability Strategy ,Decarbonization Circular ,economy Nature positive Human capital acquisition and ,development Individual leadership Employee ,engagement Organizational culture Inclusive workplace and opportunities for all Business ethics and ,compliance Health and ,safety Quality and product ,safety Information ,security AI ,governance Risk management Sustainable ,procurement Human rights Delivering value to society Planet Lead Green Transformation globally to achieve decarbonization Sustainability for all Accelerate value delivery to society and s’Hitachi sustainable growth through PLEDGE Engagement Build a sustainable value chain along with stakeholders Governance Build a resilient foundation with safety and ethics as a priority Diverse perspectives Drive innovation by maximizing capabilities and performance of diverse talents Empowerment Build a culture that praises learning and encourages challenges and growth Leadership Lead transformation with people who can boldly take on societal issues and pave the way for a brighter future Sustainability themes included P L E D G E S Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 015
The Hitachi s’Group business environment is changing day by day thus; strengthening the resilience of the organization is critical to achieving sustainable .growth Hitachi will enhance safe and secure workplaces throughout the Group and foster a corporate culture in which each and every employee acts with honesty and .fairness In ,addition Hitachi will continue to strengthen global risk management as well as ,governance with the aim of remaining a company that is trusted by .society As a company that operates its business around the ,globe engaging with diverse ,stakeholders Hitachi believes it is its responsibility to enhance sustainability initiatives throughout the entire value .chain To achieve ,this Hitachi will foster business activities that address environmental and human rights issues at all stages of the value ,chain and focus on sustainable procurement activities in cooperation with its procurement ,partners particularly in the .upstream Through collaborative creation along with ,stakeholders Hitachi aims to realize a sustainable society and business .growth The seventh pillar represents s’Hitachi commitment to deliver value to society through business activities based on the first six .pillars With the sustainability strategy at the core of its ,business Hitachi aims to deliver value to every corner of the world by further accelerating its Social Innovation Business centered on .Lumada Governance Engagement Sustainability for all A closer look into our PLEDGES Through ,PLEDGES we are targeting actions across seven strategic pillars that will help us advance a sustainable society and s’Hitachi business .growth To create ,innovation Hitachi believes it is essential to strengthen human capital and cultivate an organizational culture that encourages challenges and .growth Based on this ,approach Hitachi will strive to strengthen the development of generation-next leaders who will lead transformation and also enhance cultivating an organizational culture that encourages individual challenges and .growth In ,addition Hitachi respects and values diverse ,perspectives and by fostering an inclusive culture where employees can grow ,together it aims to deliver value to .society Hitachi believes that it is essential to address environmental issues that are becoming increasingly serious around the world from a term-long ,perspective and has established its Environmental ,Vision which sets out the direction of the Hitachi .Group Under this ,vision Hitachi has set the three strategic pillars of ,Decarbonization Circular economy and Nature ,positive and will foster wide-Group initiatives with the aim of becoming a global leader in GX to help protect our planet and achieve wellbeing for .people 64% 69.2 points 73.3 points Planet /Empowerment/Leadership Diverse perspectives 2027FY targets and KPIs 0.1 or less Total recordable injury frequency rate 2025FY progress 0.15 0.1 0.13 0.15 5,232 Governance Engagement Sustainability for all 2025FY progress 5,232 6,000 4,000 2024 2025 (2027 Target 2024) 2025 (2027 (Target 2027FY targets and KPIs 70 points Employee growth mindset score 2027FY targets and KPIs 80 points Employee engagement score 2024 2025 (2027 (Target 2025FY progress 69.2 70 66.5 2025FY progress 2024 2025 (2027 (Target 73.3 80 71.5 2027FY targets and KPIs ×1.5 (6,000+) Number of procurement partners taking action on environment and human (rights compared to (2024FY Planet 2025FY progress 2024 2025 (2027 (Target 2027FY targets and KPIs 75% GHG emissions reduction rate at operational sites factories( and (offices compared( to (2019FY 64% 75% 52% Leadership and Empowerment Diverse perspectives Watch a short video on Hitachi s’Group Sustainability :Strategy sustainability/en/com.hitachi.www WATCH Social impact areas where we are delivering sustainability for all Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 016 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 017
Delivering positive impact We will deliver positive impact to people and ,planet aiming for a Harmonized .Society Providing better transport Powering• ,efficient speed-high public transport Developing• smart traffic management for more ,seamless sustainable transport Advancing• electric vehicle and battery technology Supporting• the development of sustainable mobility Keeping people healthy Advancing• healthcare innovation Enhancing• clinical testing accuracy Advancing• cancer care and patient support Supporting• medicine development Supporting the development of industries Reducing• environmental impact and worker burden while improving productivity Improving• manufacturing processes with quality-high equipment Driving• smarter and safer ways of working for line-front workers with AI and IoT Supporting• sustainable business management through digital solutions Making living more comfortable and convenient Supporting• urban development with sustainable infrastructure Increasing• comfort and convenience of buildings Enhancing• convenience of local communities Enhancing• digital infrastructure in educational institutions Keeping society safe and resilient Supporting• disaster preparedness and response Ensuring• resilient data center and cybersecurity Advancing• and ensuring the stable operation of financial services Increasing• safety and security of buildings Building a more sustainable future Fostering• decarbonization across the value chain Driving• circular economy initiatives Protecting• food safety Providing• clean ,air water and waste management solutions Designing• proof-future and safe agricultural solutions Delivering sustainable energy Providing• leading renewable energy solutions Making• grids ,secure affordable and sustainable Developing• performance-high energy storage for a ,reliable carbon‑low future Ensuring• a stable power supply Aiming for a Harmonized Society Social impact story Social impact story Social impact story Social impact story Social impact story Social impact story Social impact story Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 018 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 019
The future of UK rail travel Hitachi Rail is on a mission to provide better ,transport innovating solutions that enhance train performance and .impact In the ,UK in a bid to cut fuel costs and ,emissions Hitachi Rail partnered with Angel Trains and TransPennine Express to conduct the s’nation first intercity battery .trial The trial demonstrated that switching from diesel to battery power when entering and leaving nonelectrified stations delivers superior performance and improved .effectiveness-cost s’What ,more with Hitachi s’Rail artthe-of-state mode-tri technology — through which trains can be powered by ,electricity battery or diesel — emissions and fuel costs can be cut by around 30%. Following the s’trial ,success Hitachi Rail continued partnering with Angel Trains to deliver 45 rail cars to operator Arriva .Group This milestone agreement will deliver multiple benefits to North East England — from more effective-cost operations and new employment opportunities to better air quality and a more sustainable public transport .industry The mode-tri fleet will reduce fuel costs and emissions ~by 30% while increasing passenger seat capacity by 400,000 per year re’We helping drive societal ,progress combining technological innovation and our pioneering spirit to proactively develop solutions that solve some of the s’world greatest .challenges From advancing wellbeing to powering a sustainable ,future here are just a few examples of how we turn our purpose into .action Innovation in action Realizing a society without fear of cancer Hitachi Tech-High is committed to creating value in healthcare by realizing a society without fear of .cancer As populations age and the need to balance work and treatment continues to ,grow healthcare providers are increasingly required to deliver highly accurate and sensitive ,diagnostics alongside friendly-patient treatment .options To address these ,challenges we support the advancement of healthcare through in vitro diagnostic systems for blood ,testing testing systems that use genomic ,information digital services that support treatment selection based on cancer genetic diagnostics and innovative based-ray-X treatment .systems Through these ,efforts we aim to reduce the burden on healthcare professionals and contribute to a healthcare environment in which patients can face treatment with greater .confidence Through our in vitro diagnostic ,systems we support blood testing for approximately 1 billion people each year and have contributed to the treatment of more than 120,000 cancer patients through our particle therapy systems Driving efficiency and leveraging tacit knowledge In facility management worksites facing a shortage of highly skilled ,workers Hitachi and Hitachi Plant Services have jointly “developed Frontline Coordinator — 1*“Naivy “,hereinafter( ,”)Naivy a generation-next AI agent designed to reduce the psychological burden on inexperienced line-front workers and improve operational .efficiency Naivy intuitively visualizes specific-context ,procedures even when inexperienced workers must handle unfamiliar ,tasks helping to reduce difficulties in identifying the appropriate equipment and determining the correct .actions Leveraging ,Naivy Hitachi Solutions has developed a Knowledge Utilization Application for Facility Management aimed at accelerating skill transfer in facility management .operations The system integrates equipment ,data various documents and the tacit knowledge of line-front workers into structured ,knowledge enabling facility managers to quickly and accurately access the information they .need By shortening the time required to identify and resolve ,issues the system contributes to the standardization of work quality and enhances overall productivity at .worksites In a verification trial of Naivy at a Renesas Electronics Corporation ,plant the operational performance of inexperienced workers in facility management tasks improved by approximately 30% “1* Naivy is” a service/product name used in Japan Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 020 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 021
Enabling smarter buildings Amid rising energy ,costs climate change and labor ,shortages the need for more ,efficient ,digitalized environmentally responsible buildings is .increasing ,However ,today -small and sized-medium buildings still face challenges such as high implementation costs and limited .solutions To address these ,challenges we have developed HMAX for ,Buildings a suite of generation-next solutions that brings together s’Hitachi decades of building operations expertise and advanced digital .technologies One of these ,solutions ,BuilMirai uses data from building equipment and s’people activities to support more efficient ,operations maintenance and energy .management It helps create buildings that are more comfortable and convenient and safer for .users By enabling centralized monitoring and management of multiple ,buildings it also helps reduce the workload of facility .managers Another ,solution the AI solution for ,engineers supports line-front engineers who perform site-on building equipment .maintenance By leveraging wearable cameras and other digital support devices to connect time-real site conditions with ,data it helps make maintenance work safer and more .efficient The AI can detect potentially hazardous situations and issue ,alerts as well as provide time-real guidance on required ,procedures helping workers make informed decisions and perform tasks more .effectively Collaborating to realize a circular economy With resource scarcity becoming an increasingly important ,challenge we are leveraging our technologies and expertise in ,collection disassembly and resource recovery to help create a more circular .economy In 2025, together with Hitachi Building Systems and Nichiwa ,Service Hitachi established and began operating a recycling network for permanent magnet motor traction machines replaced during the modernization of Hitachi .elevators ,Furthermore in 2026, together with Daikin ,Industries Etsu-Shin Chemical and Tokyo Eco ,Recycle Hitachi launched a collaborative scheme for recovering and recycling rare earth magnets used in commercial air conditioner .compressors This scheme — which will be fully launched in 2027 — adopts a demagnetization process that does not directly emit ₂CO and leverages based-AI image recognition technologies and robotics to enhance the efficiency of specific-model disassembly .processes Modernizing s’Pakistan payment systems Operating the payment networks that connect every bank in ,Pakistan LINK1 plays a vital role in strengthening the s’country .economy ,But when transaction numbers grew exponentially following a backedgovernment scheme to digitize the financial ,sector they knew they needed a more ,reliable scalable and responsive storage solution to support payment and billing .systems In ,response LINK1 deployed an flash-all solution based on Hitachi Virtual Storage (Platform VSP .arrays) Designed by Hitachi ,Vantara the system helps ensure seamless service by eliminating transaction .delays To drive operational ,resilience LINK1 installed the system across several production and disaster recovery data centers to ensure that if one site experiences ,issues the others remain .unimpacted Since deploying the ,system LINK1 has achieved 100% data ,availability with zero downtime as they made the .switch s’What ,more they achieved a 400% increase in output/input per (second ,)IOPS improving and accelerating the performance of critical-mission national payment .systems With Hitachi VSP ,arrays LINK1 has achieved 100% data availability and four times their original ,IOPS ensuring a ,fast reliable service for customers Unlocking the grids of the ,future today Electricity demand is growing exponentially — it serves as our main source of ,cleaner renewable ,power reducing emissions and accelerating the energy transition for a more sustainable future while meeting increasing .demand Hitachi launched HMAX ,Energy a suite of powered-AI services and solutions designed to safeguard critical energy infrastructure while enabling operational .efficiency Designed to be flexible to customers technology’ ,choices HMAX Energy optimizes ,planning prediction and prevention to strengthen energy security and .resilience By enabling early issue ,detection HMAX Energy extends asset .life Customer cases have shown a reduction of transformer failures by 50% and repair costs by up to 75%. At the same ,time through unlocking faster emergency responses and prevention of failures and ,repair the technology can reduce revenue losses from equipment breakdowns by as much as 60%. HMAX Energy is helping strengthen energy security and ,resilience combining ,data AI and deep domain expertise and trusted life cycle partnerships By doing ,so it will help drive a more circular approach to rare earth magnet ,use optimizing resource recovery and enhancing traceability HMAX for Buildings will continue to contribute to the future advancement and transformation of buildings through ongoing functional updates and expansion Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 022 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 023
In this section 025 Hitachi Group sustainability strategy — PLEDGES 032 Sustainability strategy management structure 034 Sustainability initiatives and external evaluation Sustainability management Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 024
Further integrating sustainable management Guided by our mission to contribute to society through the development of ,superior original technology and ,products Hitachi has spent more than 116 years working to solve the challenges facing .society Our management ,plan Inspire 2027, builds on this philosophy and sets out our vision of leveraging our strengths in ,IT OT and products more than ever before to grow sustainably while contributing to a Harmonized Society where the ,environment wellbeing and economic growth are in .balance The Hitachi Group formulated ,PLEDGES our wide-Group sustainability ,strategy to further integrate sustainability into our management ,strategy and we are advancing initiatives across the Group as we move to the next stage of sustainable .growth Approach for identifying IRO 1areas the Hitachi Group needs to address Evaluation criteria and approach for IRO analysis Process of formulating PLEDGES STEP 1 Create a list of sustainability topics Taking into account the business environment surrounding Hitachi and the broader social context related to ,sustainability a list of sustainability topics was created with reference to international sustainability standards such as the European Sustainability Reporting (Standards ESRS and) the Sustainability Accounting Standards (Board .(SASB STEP 2 Analyze and assess social ,impacts business risks and (opportunities (IROs Using the list of sustainability ,topics each business (unit (BU analyzed and assessed the risks and opportunities specific to their business characteristics and value ,chains as well as the potential social impacts of s’Hitachi business ,activities based on wideGroup .standards Based on the analysis and evaluation results from ,BUs business risks and opportunities and social impact scores were calculated for each ,topic visualizing the IRO areas that the Hitachi Group should .prioritize 1 Areas identified as requiring priority action based on an analysis and assessment of the relationship between Hitachi business activities and sustainability issues from the perspectives of both social impacts and business risks and .opportunities Hitachi Group sustainability PLEDGES—strategy STEP 3 Confirm stakeholder expectations and requests To validate the appropriateness of the IRO 1*areas identified through analysis and evaluation by the business ,units dialogues were conducted with 10 domestic and international ,groups including institutional ,investors international organizations and .NGOs These discussions helped confirm stakeholder expectations and ,requests as well as identify any perspectives that may have been overlooked during the evaluation .process STEP 4 Hold discussions with senior management From a -medium to term-long perspective grounded in the Hitachi s’Group management policies and ,strategies discussions were held by senior ,management including the President & ,CEO Chief Sustainability (Officer CSuO and) Chief Risk Management Officer .(CRMO( STEP 5 Formulate and receive approval for PLEDGES The IRO areas were organized into seven strategic ,Planet—pillars ,Leadership ,Empowerment Diverse ,perspectives ,Governance ,Engagement and Sustainability for .all For each ,pillar our aspirations and targets and KPIs were .defined The resulting framework was reported to and approved by the Senior Executive Committee and the Board of Directors as the Hitachi s’Group sustainability ,strategy ,PLEDGES under the Inspire 2027 .plan STEP 1 Creating a list of sustainability topics STEP 2 Analyze and evaluate IROs STEP 3 Confirming stakeholder expectations and requests STEP 4 Discussions by senior management STEP 5 Formulate and receive approval for PLEDGES Business risks and opportunities Impact on society IRO areas included in the sustainability strategy PLEDGES Evaluation criteria Definition Risks and opportunities Magnitude The degree of impact on the company when a risk or opportunity event occurs in our businesses Likelihood The likelihood of a risk or opportunity event occurring in our businesses Social impacts Scale The degree of positive or negative social impacts when such an impact occurs Scope The scope of the positive or negative social impacts when such an impact occurs Irremediable character The likelihood that a negative social ,impact if it ,occurred would be irreversible Likelihood The likelihood of a positive or negative social impact occurring Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 025
IRO areas of the Hitachi Group related-Climate financial information (disclosure based on TCFD (recommendations 1* Areas identified as requiring priority action based on an analysis and assessment of the relationship between Hitachi business activities and sustainability issues from the perspectives of both social impacts and business risks and .opportunities Themes IRO 1*area Time horizon Value chain Decarbonization Risks Risk of deteriorating earnings due to strengthened climate change (regulations policies and legal (regulations Business costs may increase if regulations are strengthened in various ,countries such as the introduction of carbon ,pricing including carbon .taxes -Short to term-long Own operations Risks Risk of reputational damage if perceived as lacking commitment to climate (change (reputation/market Hitachi sets and regularly updates targets related to climate ,change but there is a risk that these targets may not be .achieved There is also a risk that if the s’company disclosure such—activities as reporting in sustainability deteriorate—reports or ,cease our corporate reputation in the market will .decline -Short to term-long Own operations Risks Risk of deteriorating earnings due to physical risks from climate change related-Weather disasters believed to be caused by climate such—change as intensifying typhoons and (floods acute risks or) term-long temperature rises and heat (waves chronic could)—risks result in business interruptions or delays in procurement due to disruptions in the supply .chain -Short to term-long ,Upstream own ,operations downstream Opportunities Business opportunities through products and solutions that contribute to climate change mitigation and adaptation There is potential to expand business opportunities by increasing the provision of innovative products and services expected to contribute to climate change mitigation and .adaptation term-Short ,Upstream own ,operations downstream Social impacts (positive( Contributing to wide-society climate change mitigation and adaptation Through various initiatives toward green (transformation including)—GX providing environmentally conscious products and ,services fostering energy transitions toward ,decarbonization offering ,safe ,comfortable and clean means of ,transportation and improving system efficiency and utilization rates through digital Hitachi—technologies can advance decarbonization across the entire value ,chain potentially contributing to s’society climate change mitigation and .adaptation term-Short ,Upstream own ,operations downstream Social impacts (negative( Acceleration of wide-society climate change Many of s’Hitachi products provide value to customers through energy ,use ,which in ,aggregate results in high GHG emissions during product .use These emissions may be a contributing factor to global climate .change If GHG emissions across the value ,chain including those generated during product ,use are not ,reduced climate change could accelerate .further term-Short Downstream Circular economy Opportunities Potential to expand business opportunities through environmentally and conscious-cycle-life products and solutions There is potential to expand business opportunities by offering products and solutions designed with environmental and cycle-life ,considerations such as extending product lifespans and expanding recurring business .models term-Medium Own ,operations downstream Social impacts (negative( Depletion of s’society resources If the transition to a circular economy is not advanced through transformations in product ,design procurement and overall business ,models it could lead to resource .depletion term-Medium ,Upstream own ,operations downstream Nature positive Social impacts (negative( Ecosystem degradation due to climate change and water use Acceleration of climate ,change discharges into aquatic environments and other negative impacts on natural capital could lead to ecosystem .degradation term-Long ,Upstream own ,operations downstream Human capital acquisition and ,development individual leadership Opportunities Expanding business opportunities through appropriate talent development and recruitment Hitachi can strengthen its ,workforce including professionals with AI ,expertise leadership capabilities and other critical skills through developing and acquiring the right talent aligned with our business .strategy This enables Hitachi to drive ,innovation create new business ,opportunities support the development of products and services and contribute to business .growth -Short to term-medium Own operations Employee ,engagement organizational culture Opportunities Expanding business opportunities through enhanced employee engagement Higher employee engagement can lead to increased productivity and enhanced corporate brand ,value which can attract more talent and drive business .growth term-Short Own operations Inclusive workplace and opportunities for all Opportunities Expanding business opportunities through leveraging diverse perspectives By fully utilizing the diverse ,backgrounds ,perspectives and expertise of a diverse ,workforce Hitachi can foster innovation driven by new ,ideas acquire opportunities for new businesses and potentially drive business .growth -Short to term-long Own operations Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 026
1* Areas identified as requiring priority action based on an analysis and assessment of the relationship between Hitachi business activities and sustainability issues from the perspectives of both social impacts and business risks and .opportunities Themes IRO 1*area Time horizon Value chain Health and safety Risks Financial burden and loss of social credibility due to insufficient safety management If occupational incidents occur because safety management for employees and contractors is not thoroughly ,implemented it could not only cause a decline in productivity and loss of business ,opportunities resulting in a financial burden for the ,company but also lead to a loss of social .credibility term-Short Own operations Social impacts (negative( Impact on the health and safety of people working in the value chain If risk-high tasks involving ,hazards such as electric ,shocks working at ,heights heavy ,loads oxygen ,deficiency toxic ,gases or fires are not properly ,managed or if training is ,inadequate it could pose safety risks to ,employees contractors and others working in the value ,chain as well as potentially cause mental and physical health .issues term-Short ,Upstream own ,operations downstream Human rights Risks Loss of reputation and business opportunities due to insufficient respect for human rights If human rights ,issues such as labor problems or ,harassment occur within the ,company among procurement ,partners or among business partners in the value ,chain there are risks of supply chain disruptions and other procurement ,risks ,fines/lawsuits reputational damage and loss of business .opportunities term-Medium ,Upstream own ,operations downstream Social impacts (negative( Human rights violations affecting people involved in the value chain If appropriate human rights due (diligence HRDD processes) are not ,implemented or if responses to identified human rights issues are ,inadequate it could lead to the occurrence or continuation of human rights violations against stakeholders such as ,suppliers ,employees business partners and local .communities term-Short ,Upstream own ,operations downstream Sustainable procurement Risks Reputation and supply risks due to inadequate supply chain management If procurement is conducted from partners who do not consider human ,rights the ,environment or ,compliance and appropriate investigation or action is not ,taken it could lead to reputational damage and hinder stable .procurement term-Short ,Upstream own ,operations downstream Risks Risk of deteriorating earnings due to insufficient supply chain resilience Progress in protectionist policies and economic bloc formation in various countries and ,regions the expansion of export/import ,restrictions the occurrence of scale-large disasters and increasing economic uncertainty pose risks of supply chain disruptions and rising procurement .costs term-Short ,Upstream own ,operations downstream Social impacts (negative( Expansion of human rights violations and exacerbation of environmental impacts If responsible procurement is ,neglected it could lead to the expansion of human rights violations affecting workers at suppliers and other entities in the value ,chain as well as an increase in environmental .impacts term-Short ,Upstream own ,operations downstream Information security Risks Business interruption and reputational damage due to increasingly sophisticated and advanced cyberattacks If increasingly sophisticated and advanced cyberattacks result in system shutdowns or the destruction/theft of ,information there is a risk of business interruption and reputational .damage -Short to term-medium ,Upstream own ,operations downstream Social impacts (negative( Abuse of personal information and suspension of critical infrastructure services In s’Hitachi businesses that support various aspects of social ,infrastructure cyberattacks on our own systems or on the products and services we provide could result in information leaks or system ,shutdowns potentially leading to the abuse of personal information or the suspension of critical infrastructure ,services thereby undermining public safety and .security term-Medium Own ,operations downstream AI governance Risks Deterioration of earnings and loss of business opportunities due to inadequate governance in AI utilization If governance structure and risk management of AI utilization to address regulatory compliance are not ,implemented there is a possibility of reputational damage and fines due to AI .incidents ,Furthermore it may become a factor that impedes ,productivity which may lead to loss of business .opportunities -Short to term-medium Own operations Corporate ethics and compliance Risks Reputational damage and deterioration of earnings due to insufficient enforcement of business ethics Acts that deviate from international norms and including—ethics ,bribery violations of corruption-anti measures and breaches of competition pose—law risks such as loss of stakeholder trust and other reputational ,risks litigation ,risks deterioration of earnings due to fines and loss of business opportunities through exclusion from investment or trading partner .consideration -Short to term-medium Own operations Quality and product safety Risks Risk of deteriorating earnings due to the quality and safety of our products and solutions If issues arise with quality or product ,safety there are risks of incurring costs associated with remedial ,actions reputational damage and loss of business .opportunities term-Medium Own ,operations downstream Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 027
Hitachi Group sustainability PLEDGES—strategy We analyzed and assessed the relationship between Hitachi business activities and sustainability issues from the perspectives of both social impacts and business risks and .opportunities Based on our ,findings we formulated the sustainability strategy PLEDGES under the management plan Inspire 2027. For each strategic ,pillar we have defined our ,aspirations targets and ,KPIs and are working to advance sustainable .management 1* All manufacturing sites and manufacturing-non sites in categories A and B are covered 2 Per gross profit 3 All manufacturing sites 4 Ambitious target of 80 points is ,set which exceeds global (competitors base target is 75 points 5) A program to support up-bottom idea proposals and implementation aimed at Hitachi Group employees 6 At or above the benchmark score established for similarly situated companies utilizing external (s’institute Ethisphere ethical) culture and compliance perceptions assessment 7 Number of recordable injuries per 200,000 work hours 8 Based on METI Cyber Security Management Guidelines created with reference to globally recognized (standards IEC/ISO 27000 series and) (frameworks NIST Cybersecurity ,Framework .etc 9) Forecast of 2027FY–2025FY average Strategic pillars and aspirations Included themes KPIs 2027FY targets 2025FY results Planet Lead green (transformation GX globally) to achieve decarbonization Decarbonization GHG emissions reduction rate at business (sites factories and (offices 1 ( compared to (2019FY 75% 64% Number of procurement partners that set GHG reduction plans and targets 700 procurement partners 428 procurement partners Reduction in GHG emissions intensity rate through products and (2services compared to (2022FY 40% 41% Circular economy Application rate of environmental conscious design for new product development 100% 100% Waste landfill 3rate 2% 1.8% Effective utilization rate of plastic 3waste 92.5% 99.1% Nature positive Reduction rate in water use per (3unit compared to (2019FY 8% 22% Reduction rate of water usage at manufacturing sites located in stressed-water areas 1% -0.4% Leadership Lead transformation with people who can boldly take on societal issues and pave the way for a brighter future Human capital acquisition and ,development Individual leadership Number of global leaders who realize growth strategy 1,000 people 550 people Number of AI professional talents 50,000 people 39,000 people Employee growth mindset score 70 points 69.2 points Empowerment Build a culture that praises learning and encourages challenges and growth Employee ,engagement Organizational culture Employee engagement score 80 4points 73.3 points Number of people who receive allotment of Restricted Stock Unit 1,500 people 1,800 people Number of people eligible for Employee Stock Purchase Plan globally 150,000 people 130,000 people Diverse Perspectives Drive innovation by maximizing capabilities and performance of diverse talents Inclusive workplace and opportunities for all Realize innovative ideas through the “new Make a Difference 5program!” Governance Build a resilient foundation with safety and ethics as a priority Business ethics and compliance Ethical culture and compliance perceptions assessment score 85 6points 82.4 points Health and safety Total recordable injury frequency 7rate 0.1 or lower 0.15 Number of fatal incidents 0 4 Quality and product safety Executive participation (rate including Hitachi executives and business site senior management in) review sessions for related-product (incidents (HIROI-OCHIBO 100% 100% Information security Ensure and enhance information security by implementing measures based on the annual cybersecurity score 8monitoring AI governance Implement risk management for applying AI to ,products ,services and systems Risk management Strengthen process and talent of our global operation to foster effective risk management for growth Engagement Build a sustainable value chain along with stakeholders Sustainable procurement Number of procurement partners taking action on environment and human (rights compared to (2024FY 1.5 times 6,000+( procurement (partners 5,232 procurement partners Human rights Work to remediate the specific human rights risks identified Sustainability for all Accelerate value delivery to society and s’Hitachi sustainable growth through PLEDGE Delivering value to society Avoided emissions from the use of products and services per (year 2027FY–2025FY average 100) million year/tons 280 million 9year/tons Revenue of ,products ,services and solutions contributing to GX per (year 2027FY–2025FY average 4.6) trillion year/JPY 4.7 trillion 9year/JPY Sustainability evaluation indicators linked to executive compensation Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 028
Linking executive compensation to the sustainability strategy At ,Hitachi the Compensation ,Committee composed of a majority of independent external ,directors determines the policy for the compensation of directors and executive ,officers as well as the individual compensation details and amounts based on that .policy In fiscal 2023, we set the weighting of sustainability targets in Contributing to the SDGs By advancing management based on our sustainability ,strategy ,PLEDGES we aim to realize a Harmonized Society where the ,environment wellbeing and economic growth are in ,balance while helping address the diverse global challenges identified in the Sustainable Development (Goals .)SDGs We have identified specific SDG targets to which we can contribute most significantly through business activities with PLEDGES as the ,foundation under the management ,plan Inspire 2027. Through our active involvement across a broad range of business ,fields we believe we can contribute extensively to the achievement of SDGs beyond the goals ,identified and we will strive to contribute to the achievement of all 17 .SDGs SDG targets to which Hitachi contributes through our business activities term-short incentive (compensation STI at) 20% to strengthen sustainable management and enhance corporate .value For term-long incentive (compensation ,)LTI we grant additional shares equivalent to 10% of the standard amount if sustainability targets are .achieved In fiscal 2025, we incorporated selected targets and KPIs from the newly formulated sustainability strategy PLEDGES into the evaluation of executive compensation to further enhance .implementation 1* Ambitious target of 80 points is ,set which exceeds global (competitors base target is 75 (points Director and executive officer compensation PLEDGES strategic pillars KPIs Link to executive compensation 2027FY targets Planet GHG emissions reduction rate at business (sites factories and (offices compared) to 2019FY STI) 75% Leadership Employee growth mindset score LTI 70 points Empowerment Employee engagement score STI and LTI 80 1*points Number of fatal incidents STI 0.1 or Governancelower Total recordable injury frequency (rate (TRIFR 0 incidents Engagement Number of procurement partners taking action on environment and human (rights compared to 2024FY STI) 1.5 times Sustainability evaluation indicators linked to executive compensation Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 029
Sustainability and financial performance To advance sustainable ,management it is essential to identify how sustainability initiatives impact financial performance and to explore possible future .directions To support these ,efforts Hitachi uses a financial influence analysis to quantify and visualize the impact of sustainability initiatives and changes in indicators on financial .performance Building on these ,findings we use AI to conduct future scenario simulations to identify multiple future scenarios and the key decision points that differentiate each .scenario The insights help identify initiatives that can enhance corporate value over the medium to long term and support the exploration of initiatives under the sustainability strategy .PLEDGES Looking ,ahead we also aim to apply these insights to future management decisions and strategic .planning Financial influence analysis The financial influence analysis model was jointly developed by ,Hitachi the Isagawa Laboratory and Kazuo Yamada Laboratory at Kyoto .University This method is designed to clarify how sustainability initiatives affect financial .indicators This model quantifies the causal relationships between ESG and financial indicators and visualizes how changes in ESG performance contribute to corporate .value Hitachi analyzed approximately 3 to 10 years of ESG and financial data together with KPI trends under .PLEDGES The analysis confirmed that sustainability initiatives have a positive impact on financial performance by driving revenue growth and reducing the cost of .capital Financial-ESG indicators analysis based on causal hypothesis graphs Development of ESG measure simulator for predicting impact on financial indicators Hitachi Group sustainability PLEDGES—strategy Impact of sustainability initiatives on financial performance Following the financial influence analysis conducted during the development of ,PLEDGES Hitachi also analyzed the relationship between ESG indicators and financial performance in fiscal 2025. Through this ,process we examine the relationship between sustainability and corporate value enhancement and identify the key elements that contribute to sustainable .growth The results reaffirmed our fiscal 2024 ,findings confirming that indicators related to empowerment and ,diversity opportunity and inclusion have the potential to contribute to financial indicators such as revenue and .profit Our findings also confirmed that indicators related to business ,ethics compliance and health and safety including incidents influence ,costs including ,selling general and administrative .expenses The analysis also continued to confirm the effectiveness of environmental ,initiatives including efforts to reduce water ,use waste and GHG ,emissions as well as related-diversity ,indicators in lowering the cost of (capital .(WACC ,Furthermore the analysis provided new ,insights indicating that research and development investment tends to influence financial performance over the medium to long ,term reducing workplace accidents contributes to lower ,selling general and administrative ,expenses and creating a workplace that encourages employees to take on challenges has the potential to drive revenue .growth Analyzing the relation between sustainability and financial performance Financial influence analysis results s’Hitachi Corporate Value Enhancement Formula Past Present Future Financial influence analysis A quantitative analysis using academic and statistical methods to examine how sustainability initiatives from the past to the present have impacted financial .indicators Summary[ of analysis [results Indicators related to ,empowerment business ,ethics ,compliance ,diversity opportunity and ,inclusion the mentenviron and D&R have a positive impact on financial .performance Future scenario simulation Using AI to analyze the results of the financial influence ,analysis among other ,data multiple scenarios of s’Hitachi sustainable management through 2040 were simulated to explore the most desirable path .forward Summary[ of simulation [results Eight scenarios were generated for what Hitachi could look like in 2040 if our main targets of the Hitachi Group sustainability strategy PLEDGES are ,achieved along with the branching points and key indicators leading to each .outcome Diverse perspectives Indicators related to ,diversity opportunity and inclusion Governance Indicators relevant to business ,ethics compliance and health and safety Planet Indicators relevant to water ,use waste and GHG emissions Leadership and Empowerment Employee ,engagement indicators related to encouraging employees to take on challenges Sustainability for all Research and development investment Enhancing Growth Reducing the Cost of Capital Maximizing Value Creation ( ,Profit Cash Flow and (ROIC Enhancing Corporate Value Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 030
Overview of future scenario simulation Hitachi uses AI to conduct our future scenario simulation in support of our goal of balancing sustainability and corporate value .enhancement The simulation identified eight possible future scenarios through 2040 based on 154 .indicators Among ,these the balanced green–digital ,model which emphasizes balanced investment in both digital technologies and green initiatives to build a foundation for -medium to term-long ,growth emerged as the preferred path toward business growth and social value .creation The analysis also found that achieving this scenario will require the phased implementation of initiatives aligned with the sustainability strategy .PLEDGES These initiatives include improving ROIC and operating ,profit strengthening engagement with procurement ,partners advancing ,diversity reinforcing business ethics and information ,security and strengthening the human capital needed to lead green (transformation GX and) digital (transformation DX .initiatives) Although forecasting an uncertain future is inherently ,difficult Hitachi strives to further advance sustainable management by combining driven-AI simulations and other digital technologies with human experience and .judgment Overview of future scenario simulation Number of :indicators 154 :Period 2025-2040 Simulation assuming the achievement of the key PLEDGES targets 2032 2036 2038 2035 2037 1: Steady incremental transition 2: rich-Cash ESG leader model 3: Environmental focus x Profit compression 4: Green x Service transformation 5: ESG momentum x profit-High growth 6: Digital × Green balance 7: driven-Tech expansion x ,risk-High reward-high returns 8: Green hardware focus x ciencye-High investment Building● a sustainable supply chain Increasing● the ratio of female ,employees .etc Strengthening● overall training and education Increasing● the ratio of Japanese-non ,employees .etc Developing● green talent Training● on ,ethics security and other related topics Developing● digital talent Developing● talent capable of internal ,creation-co .etc Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 031
Establish a structure to foster sustainability Under the leadership of Chief Sustainability (Officer ,(CSuO Lorena ,Dellagiovanna Hitachi engages in sustainability initiatives on a wide-Group .basis The Senior Executive Committee deliberates and makes decisions on important sustainability .issues These issues are submitted to the Board of Directors as .needed The Committee deliberates and decides on important managerial ,matters including the following :strategies Business• and regional management :strategies Matters relating to management strategies for each business and region necessary for s’Hitachi .growth Risk• management :strategies Matters needed to strengthen the s’Company management base linked to growth through a unified and horizontal understanding of risks across the entire Hitachi Group .globally Human• resources :strategies Matters needed to foster an organization and culture aimed at the growth of ,Hitachi and to secure and cultivate human .resources Other• strategies including sustainability strategies relating to the Hitachi Group .globally By formulating and executing various strategies in an integrated manner as One ,Hitachi we aim to further enhance our corporate value and achieve sustainable .growth As a company with a Nominating ,Committee Hitachi has an Audit Committee composed of independent directors that conduct an annual audit of sustainability related .operations Reports on important sustainability issues are made to the Committee by the executive officers .responsible Sustainability strategy management structure Toward further integration of sustainability and business Sustainability leaders in sectors and business (units BUs are) appointed to further integrate sustainability into our .businesses The Sustainability Steering ,Committee comprising the CSuO and the sustainability leaders from sector and ,BU meets quarterly to discuss the ,initiatives current challenges and responses needed to execute ,PLEDGES the wide-Group sustainability .strategy Governance structure for fostering the sustainability strategy PLEDGES Committees for fostering the sustainability strategy PLEDGES In addition to the quarterly Sustainability Steering Committee chaired by the ,CSuO we hold the Sustainability Promotion Meeting once or twice a year to discuss important sustainability initiatives and share .information The meeting brings together sustainability representatives from ,sector ,BU major Group company and regional .headquarters We also have a dedicated meeting structure for each of the themes covered by the Hitachi Group sustainability ,strategy .PLEDGES These themes include the ,environment human ,capital health and ,safety quality and product ,safety sustainable procurement .etc These meeting ,structures comprising representatives from ,sectors BUs and major Group ,companies discuss wide-Group initiatives and share information to further strengthen sustainability across the .Group Sustainability Steering Committee Sustainability Promotion Meeting Board of Directors Senior Executive Committee Various committees and meetings related to PLEDGES Engagement Governance /Leadership Empowerment Diverse perspectives Planet Management-Eco Meeting Scope 3 Reduction Project Meeting 2030CN Promotion Project Scope(Meeting 1 2and ( Decarbonization R3 Promotion Project Meeting Circular economy Nature Positive and Water Risk Measures Working Group Nature positive Health and Safety Leaders Meeting Health and safety Business ethics and compliance Quality and product safety One Hitachi Compliance Conference QA Manager-Division Liaison Meeting Human rights Information security AI governance Risk management Committee AI Supervisory Committee Risk Management InformationcersO Security RMO( Meeting) Human capital HR Steering Committee Steering /Committee Global Council Diversity opportunity HRDD Execution Managers Meeting Sustainable Procurement Conference Sustainable procurement Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 032
Overview of sustainability related conference bodies 1* Chief Sustainability *Officer 2 Chief Human Resources *Officer 3 ,Diversity Opportunity and *Inclusion 4 Center of *Excellence 5 Chief Digital & Security Officer 6 Chief Compliance Officer 7 Chief Risk Management Officer 8 Chief Procurement Officer Strategic pillars Meeting Attendees Purpose Frequency PLEDGES Sustainability Steering Committee 1CSuO , Deputy ,CSuOs Sustainability Leaders of sectors and BUs Discuss and decide on measures necessary to execute PLEDGES across the entire ,Group as well as on current issues and responses Every quarter Sustainability Promotion Meeting Deputy ,CSuO sustainability representatives of business promotion division heads at BUs and major Group ,companies Sustainability Officers of regional headquarters Deliberate and share information related to material sustainability initiatives Once or twice per year Planet Management-Eco Meeting Heads of the business ,promotion ,related-environment (MONOZUKURI production and) procurement divisions from BUs and major Group companies Deliberate ,on plan and implement action (plans environmental action plans to) achieve s’Hitachi environmental term-long goals Every year-half 2030CN Promotion Project (Meeting Scope 1 and (2 Heads and members of the related-environment and (MONOZUKURI production divisions) from BUs and major Group companies Monitor and discuss measures to accelerate implementation focused on Scope 1 and 2 emissions reduction Every year-half Scope 3 Reduction Project Meeting Heads and members of the ,related-environment (MONOZUKURI production divisions) and sustainable procurement divisions at BUs and major Group companies Monitor and discuss measures to accelerate implementation focused on Scope 3 emissions reduction Every year-half R3 Promotion Project Meeting Heads and members of the related-environment and (MONOZUKURI production divisions) from BUs and major Group companies Drive R3 initiatives aimed at achieving a circular economy Every quarter Nature Positive and Water Risk Measures Working Group Heads and members of the related-environment divisions from BUs and major Group companies Monitor and discuss measures focused on positive-nature initiatives and water risks Every year-half /Leadership Empowerment HR Steering Committee 2,CHRO Deputy ,CHROs Global HR ,leaders Business HR (leaders Sector CHROs and) Corporate HR leaders Discuss and make decisions on the Human Capital Strategy and key HR initiatives Every month Diverse perspectives Steering Committee Global 3DOI Division ,Head DOI general managers from each ,sector Global HR 4CoE Head Set the strategy to leverage diverse perspectives through inclusive culture and based-merit processes that ensure equal opportunities for all Every quarter Global Council DOI Officers from BUs and major Group companies Implement policies and initiatives for leveraging diversity and share best practices Every month Regional Council Leaders responsible for overseeing DOI in each region representative; business leader and DOI leaders from BUs and Group companies in each region Develop and implement global initiatives that account for specific-region ,challenges regulations and cultures One to three times every six months Governance Health and Safety Leaders Meeting Individuals responsible for health and safety at BUs and major Group (companies ,CHROs officers in charge of health and (safety Instruct and communicate health and safety activity policies and measures confirm; progress share; details on important incidents related to health and safety and; discuss measures to prevent recurrence Once per two months QA Manager-Division Liaison Meeting Heads of the quality assurance divisions at BUs and major Group companies Discuss and develop shared Hitachi Group quality improvement activity policies and measures for products and services Every quarter Information Security Committee 5,SO&CD Information Security Audit ,Officer Information Security Training ,Officer and representatives of ,BUs business sites and Corporate Departments Discuss and decide on policies and measures regarding information security and personal information protection Every year-half AI Supervisory Committee Leaders of major corporate ,divisions the AI utilization promotion ,division sector promotion (leaders including those (overseas Support the establishment and operation of a Hitachi Group framework to manage risks that may arise from AI utilization Every quarter One Hitachi Compliance Conference 6CCO and compliance officers of BUs and major Group companies Raise awareness of and discuss compliance measures Once per year (RMO Risk Management Officers Meeting) 7CRMO , Deputy ,CRMOs RMOs of each ,sector ,BU and regional headquarter Discuss advancing ,ERM sharing information on material business risks and fostering a wide-Company risk culture Once per two months Engagement HRDD Execution Managers Meeting HRDD execution managers at BUs and major Group companies Provide information and knowledge necessary for HRDD implementation and share and discuss the status of implementation in BUs and major Group companies Once or twice per year Sustainable Procurement Conference 8,*CPO heads of the procurement divisions at BUs and major Group ,companies individuals responsible for and engaged in sustainable procurement Communicate the Hitachi Group sustainable procurement policies and strategies to all procurement divisions and improve knowledge and share best practices Once or twice per year Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 033
Hitachi aspires to support the development of sustainable .societies To amplify our ,efforts we engage in external initiatives and evaluations that help enhance our sustainability .performance Sustainability initiatives We actively contribute to a range of international initiatives and groups which exist to drive sustainability on a global .scale Sustainability initiatives and external evaluation World Business Council for Sustainable Development (WBCSD( Became a member in 1995 Adopted SOS 1.5 project in 2020 World Economic Forum Participant in the World Economic (Forum WEF Davos) Meeting since 2014 ESG Disclosure Study Group (EDSG( Participant in the ESG Disclosure Study Group as a founding member since 2020 The Science Based Targets (initiative (SBTi Received SBTi validation in 2025 for s’Hitachi zero-net based-science targets through fiscal 2050 Business for Social Responsibility (BSR( Became a member in 2007 and has participated in the Human Rights Working (Group (HRWG since 2016 Japan Climate (Initiative (JCI Became a member in 2018 The Valuable 500 Participant since 2021, supporting inclusion for people with disabilities United Nations Global (Compact (UNGC Signatory since 2019 Committed to conducting business activities in accordance with the principles of the UN Global Compact Business Ambition for C1.5° Signed in 2020, supporting the goal of limiting the global temperature increase to C1.5° above industrialpre levels Initiatives of the ESG Disclosure Study Group The ESG Disclosure Study (Group EDSG was) established in 2020 under s’Hitachi leadership and continues to be led-co by Hitachi .today EDSG is s’Japan largest sectorprivate community for corporate disclosure and sustainable ,management bringing together more than 130 business ,companies institutional ,investors audit ,firms government organizations and other .stakeholders EDSG works closely with global sustainability ,organizations including the IFRS ,Foundation to exchange practical insights and develop recommendations that reflect international .trends The s’organization activities include working groups on improving the Integrated ,Report developing sustainability talent and embedding integrated thinking into ,management along with sharing information on a continuous basis through seminars and webinars featuring .experts Through our participation in ,EDSG we will continue to deepen dialogue and creation-co with diverse stakeholders and exercise leadership in driving sustainable management and information disclosure in .Japan In doing ,so we aim to contribute to sustainable value creation across .society ESG Disclosure Study Group Stakeholder engagement Hitachi endeavors to accurately identify the various social issues that each country and region ,faces and to work toward resolving these issues through engagement in collaborative creation with a wide range of ,stakeholders including ,customers governments and ,municipalities as well as academic and research .institutions Dialogue with stakeholders Disclosure Policy Stakeholder-Multi (Policy Japanese (only Sustainability initiatives Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 034
Industry leadership and policy recommendations Hitachi established the position of Chief Government and External Relations (Officer CGRO in) April 2026. Under this ,structure the Global Government Affairs Division leads engagement with governments and international organizations in coordination with our six global :regions the ,Americas ,EMEA ,APAC ,India China and .Japan These activities help to create business opportunities and generate value aligned with policy priorities and social challenges in areas such as energy and social .infrastructure Governments are also increasingly seeking s’Hitachi .views We contribute to the realization of a better society by making recommendations through ,councils as well as making recommendations through discussions in business and industry .associations Participation in government councils and business and industry associations Group/Council Participants Activities Meeting on Digital Administrative and Fiscal Reform Executive Chairman Toshiaki Higashihara Aims to realize social transformation by fundamentally reviewing s’Japan administrative and fiscal systems from a centric-user perspective in response to rapid population ,decline as well as by maximizing the use of digital technologies to maintain and strengthen public services and revitalize local economies Hitachi[ Received] invitation from the Japanese government Chairman; joins as an expert member and submits recommendations regarding digital transformation DX( in) government and data utilization World Economic Forum Executive ,Officers led by Executive Chairman Toshiaki Higashihara and President & CEO Toshiaki Tokunaga An international forum in which leaders from various ,field including ,economics politics and ,academia participate to discuss solutions to challenges facing the ,world regions and industries through dialogue and collaboration Hitachi[ Participates] in events such as the Davos Forum to engage in discussions and advocate for solutions to ,global regional and industry ;challenges advocates for achieving net zero at COP as a member of the World Economic s’Forum Alliance of CEO Climate Leaders National Association of Manufacturers Hitachi Corporate Office in Washington DC Lobbying and making policy ,recommendations as the largest association of manufacturers in the United ,States to support the international competitiveness of member corporations Hitachi[ Gathers] information and shares insights on policy and regulatory trends affecting the manufacturing sector in the United States Japan Business Council in (Europe (JBCE Hitachi Europe Government Relations Office Making policy recommendations to contribute to the further development of Japan-EU relations and the EU economy as the body representing Japanese corporations in the EU Hitachi[ Provides] insights and contributes to discussions based on policy trends regarding EU-Japan relations and the business environment within the EU Japan Business (Federation (Keidanren Executive Chairman Toshiaki Higashihara Vice( ,Chair Keidanren Board of (Councillors An economic organization whose members include leading companies and industry associations in Japan proposes; a vision for the future of s’Japan economy and industries Shares views on key issues such as ,DX green (transformation GX and) human resources development to achieve Future Design 2040 Hitachi[ Leverages] our broad and diverse expertise and dispatches chairpersons and members to various committees actively; carries out initiatives to contribute to policy proposals and economic development in Japan and overseas Japan Electrical ‘Manufacturers (Association (JEMA Executive Vice President and Executive Officer Yasunori Inada ,Director( (JEMA A major industry association representing companies engaged in the manufacture and supply of electrical equipment and systems in Japan pursuing; the sustainable development of electrical manufacturing by providing recommendations on various governmental and administrative policies and promoting product safety ,awareness international standardization and compatibility ,evaluation statistical research work and the development of human capital for STEM fields Hitachi[ Participates] in policy and regulatory discussions through various committee activities and public statements in the power and electrical manufacturing sectors contributes; to the development of recommendations for the government pursues; standardization Japan Electronics and Information Technology Industries Association (JEITA( President & Chief Executive Officer Toshiaki Tokunaga Vice( ,Chairperson (JEITA A major industry association in Japan representing companies in the ,electronics information technology and digital industries in Japan examines; and makes proposals on digital ,technology data usage and market creation under the mission to achieve Society 5.0 offers; insights into developments of international ,legislation agreements and standards to develop digital trade and strengthen international competitiveness Hitachi[ Participates] in discussions on digital technology and industrial policy through various committee activities contributes; to policy recommendations and making-rule Japan Machinery (Federation (JMF Executive Chairman Toshiaki Higashihara Vice( ,Chairman (JMF Provides policy recommendations to the Diet and the ,government conducts surveys and research on the machinery industry and drives international standardization activities for the comprehensive progress and development of the machinery industry Hitachi[ Participates] in discussions on policy and regulatory development aimed at improving the business environment in the machinery industry has; served as chair organization for four years since fiscal 2022, providing recommendations to the Japanese government and leading the industry .S.U-Japan Business (Council (JUBC Executive Chairman Toshiaki Higashihara Vice( ,Chairman (JUBC Exchanges views and develops policy recommendations regarding various issues with .S.U-Japan economic relations from the point of view of the .S.U-Japan business community as a whole Hitachi[ Participates] in dialogue between the Japanese and .S.U business communities on key issues affecting .S.U-Japan economic relations and holds discussions aimed at developing policy recommendations Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 035
Efforts in international standardization activities Hitachi views international standardization as one of the key means of establishing the international rules needed to achieve a sustainable .society We actively participate in standardization activities through international standards organizations such as the 1IEC , 2,ISO and 3,T-ITU as well as in consortia and forums established across regions and industries .worldwide For ,example for the circular (economy ,)CE Hitachi established the AIST-Hitachi Circular Economy Cooperative Research Laboratory together with the National Institute of Advanced Industrial Science and (Technology ,)AIST working to create internationally accepted rules and standards originating from .Japan Existing CE metrics have generally lacked a efficiency-cost ,perspective limiting their ability to incentivize .investment Hitachi works to address this gap by standardizing a new CE metric called Circular added-Value (Productivity .)CVP This metric captures the economic efficiency of circular investments by making improvements in investment efficiency .visible In standardizing ,CVP Hitachi aims to accelerate the transition to a CE for society as a ,whole expand the application of efficiency-high and optimization technologies to circular economy initiatives and help solve social .challenges Providing solutions consistent with international standards through international standardization activities allows Hitachi to support the sound development of global markets and facilitate innovation to resolve social .challenges 1 International Electrotechnical .Commission An international organization composed of member countries and regions 2 International Organization for .Standardization An international organization composed of member countries and regions 3 International Telecommunication Union Telecommunication Standardization .Sector A specialized agency of the United Nations Research Report on Circular added-Value (Productivity (CVP Policy advocacy and standardization activities related to climate change Employee participation in international standardization activities A Hitachi employee has been serving as a member of the 1SMB , an level-upper committee supervising the s’IEC standardization .activities Our employees can also be found in other key international ,positions including ,chairpersons secretaries and other leadership positions across various ,bodies and participate in a variety of technical committees within international standardization .organizations In recognition of these contributions to international standardization ,activities two Hitachi employees received honors from the Minister of ,Economy Trade and Industry and the General-Director of the Innovation and Environment Bureau at the fiscal 2025 Industrial Standardization Awards presented by s’Japan Ministry of ,Economy Trade and (Industry .(METI 1 Standardization Management .Board Fifteen members are appointed from IEC member .countries Seven members are elected by the standing member countries and eight by general election Hitachi Group Standardization Committee Structure for advancing international standardization activities The Hitachi Group Standardization Committee has been established under the Chief Technology (Officer CTO to) promote international standardization activities through wide-Group .collaboration The Steering 1Committee identifies priority themes for s’Hitachi -medium to term-long ,activities and through discussions and strategic initiatives conducted by dedicated working ,groups takes a leading role in advancing global international standardization .activities In ,addition the Hitachi Group Standardization Committee supports talent development by incorporating lectures and practical training on international standardization into programs for developing technical .leaders The committee also operates an internal recognition program to honor employees who have made significant contributions to international standardization .activities 1 A committee chaired by the Executive Officer in charge of ,D&R who serves as CTO of the Hitachi ,Group and composed of level-CTO executives from each business (unit (BU and major Group .company The committee makes decisions on organizational-cross projects spanning multiple BUs and Group companies President & CEO Global Intellectual Property Group IP Operation Division Steering Committee :Members International standardization promoters in ,BUs major Group ,companies Group corporate ,divisions the D&R ,group .etc making-Rule Promotion Group Secretariat Priority Theme 2 Working Group … Planning Working Group Priority Theme 1 Working Group Liaison Committee Hitachi Group Standardization Committee :Head Executive officer in charge of (D&R (CTO :Members International standardization (officers level-CTO executives from various (companies in ,BUs major Group ,companies Group corporate ,divisions the D&R ,group .etc Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 036
Sustainability initiatives and external evaluation We look to internationally recognized external assessments to confirm our current efforts and seek for .improvements External ESG evaluations MSCI ESG Ratings MSCI Selection Indexes Good4FTSE JPX/P&S Carbon Efficient Index s’World Most Ethical RCompanies SX Brands CDP Climate Change and Water Security A List MSCI Japan ESG Select Leaders Index FTSE JPX Blossom Japan Index Catalyst Award Supplier Engagement Assessment MSCI Nihonkabu ESG Select Leaders Index FTSE JPX Blossom Japan Sector Relative Index ISS ESG Corporate Rating Inclusion in ESG indices External assessments and awards Rated( in (2026 MSCI Awarded( in (2026 s’World Most Ethical RCompanies Rated( in (2026 ISS ESG Awarded( in (2026 CATALYST Awarded( in (2026 SX Brands Rated( in (2025 CDP Rated( in (2025 CDP Continued( inclusion in (2026 MSCI Selection Indexes Continued( inclusion in (2026 Good4FTSE Index Series Continued( inclusion in (2026 JPX/P&S Carbon Efficient Index Continued( inclusion in (2026 FTSE Blossom Index Series Continued( inclusion in (2026 FTSE Blossom Index Series Continued( inclusion in (2026 MSCI Japan ESG Select Leaders Index Continued( inclusion in (2026 MSCI Nihonkabu ESG Select Leaders (Index Japanese (only Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 037
Planet In this section 040 Environmental vision and term-long environmental targets 043 ,Products services and solutions that support green (transformation (GX 048 Environmental governance 051 Decarbonization 058 related-Climate financial information (disclosure based on TCFD (recommendations 065 Circular economy 068 Nature positive Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 038
Our aspiration is to become a global leader in green (transformation (GX As“ One ,Hitachi we are advancing ,Planet the first pillar of our sustainability ,strategy .PLEDGES Addressing environmental challenges is not only our responsibility as a global company but also a critical management priority for sustainable .growth Guided by our Environmental ,Vision we are driving ,decarbonization circular economy and positive-nature initiatives across our value .chain Alongside reducing the environmental impact of our own ,operations we address global environmental challenges through solutions that enable renewable energy ,integration clean mobility and highly efficient social ,systems products and .services We will continue to balance risk mitigation with growth opportunities while advancing s’society green “.transformation To achieve our ,aspiration we are leveraging our strengths in business and technology to help protect our .planet Underpinning our efforts is the Hitachi Environmental Vision — built on three strategic :pillars ,Decarbonization Circular economy and Nature .positive We contribute to the realization of a sustainable society by reducing greenhouse (gas GHG emissions) across the value ,chain improving resource ,efficiency reducing ,waste conserving biodiversity and promoting the responsible use of water .resources Planet 2025FY highlights 64% Factories and offices GHG emissions reduction rate 1.8% Waste landfill rate 280 million tons Avoided emissions per year Forecast( of 2027FY–2025FY (average 22% Reduction rate in water use per unit Megumu Tsuda Vice President and Executive ,Officer Deputy ,CSuO General Manager of Global Environment ,Division General Manager of Global Sustainability Division PLEDGES Leadership Video — Planet WATCH Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 039
Environmental Vision and Hitachi Environmental Innovation 2050 For ,Hitachi the environment forms the core “of Planet in” its PLEDGES sustainability strategy and is an important foundation supporting -medium to term-long value creation through green .transformation As environmental issues become increasingly severe ,worldwide Hitachi believes that a -medium to term-long perspective that looks ahead to future generations is ,essential and has established Environmental Vision to set out the direction the Hitachi Group should .pursue To realize this ,vision Hitachi has established term-long environmental targets for fiscal “2050, Hitachi Environmental Innovation 2050, built” around the three pillars of ,decarbonization circular economy and nature .positive Through data and innovative ,technologies Hitachi is advancing initiatives aimed at solving environmental and social challenges while enhancing corporate .value :Decarbonization• Achieve 1zero-net across the value chain by fiscal 2050. We will contribute to the reduction of greenhouse (gas GHG emissions) and the decarbonization of the value chain through efficiency-high ,products innovative services and future .technologies Circular• :economy Aim to achieve circular transformation by fiscal 2050 in which resources and businesses operate in a circular .model We intend to transition to a circular business model that minimizes energy and resource use while maximizing value across the entire life cycle of both products and .services Nature• :positive In addition to minimizing the impact of our business activities on nature by fiscal 2050, we aim to mitigate damage from natural disasters and contribute to nature ,resilience including faster .recoveries The Environmental Action Plan defines these environmental ,activities including the achievement of term-long environmental .targets The plan is a term-short action ,plan which we pursue in year-three ,increments to implement throughout the Hitachi .Group 1 In accordance with the C1.5° emissions reduction ,scenario reduce GHG emissions throughout the value chain as much as ,possible and permanently remove and neutralize the remainder by absorption or sequestration 1* At factories and ,offices through reducing emissions and offsetting residual emissions compared to 2019FY 2* Gross based-profit intensity value compared to 2022FY 3* Defined as a final disposal (rate landfill waste/disposal and valuables of) less than 0.5% in any given fiscal year in the Hitachi .Group Pursued in assumed conformance with ,regulations ,conditions .etc 4* At manufacturing sites 5* Application of environmentally conscious design in the design of ,products or implementation of environmental impact assessments for product groups 6* Intensity value compared to 2019FY 7* For major products and ,projects in addition to compliance with necessary regulations Environmental Vision and term-long environmental “,targets Hitachi Environmental Innovation “2050 Environmental vision and term-long environmental targets term-Long Environmental Targets Hitachi Environmental Innovation 2050 Pursue dual missions “of GX for CORE “and” GX for GROWTH to” achieve our environmental targets using data and innovative technology Decarbonize the value chain by highly ciente ,products innovative ,services and future technologies Net Zero by 2050FY Maximize the value throughout the entire lifecycle of products and services by building evolving business ecosystems As a responsible partner for ,infrastructure minimize the impact on and from ,nature ensuring swift recovery Nature Resilience by 2050FY Circular Transformation by 2050FY Environmental Vision Hitachi aims to become a global leader in green transformation through its Social Innovation Business to help protect our Planet and achieve being-well for People Decarbonization Circular Economy Nature Positive Environmental Action Plan Set environmental action items and targets every three years in order to achieve the term-long targets Carbon neutrality by 12030FY 52% GHG emission reduction in the value chain by 22030FY Zero landfill waste by 3,2030FY 4 5design-Eco for all relevant product groups by 2030FY 10% water usage reduction by 62030FY Impact assessment on and from nature in the value chain by 72030FY Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 040
Main targets toward achieving Hitachi Environmental Innovation 2050 Hitachi has established the following main targets for fiscal 2030 and fiscal 2050 under ,decarbonization circular economy and nature .positive We will further advance our environmental initiatives to achieve these .targets Decarbonization Hitachi aims to achieve carbon neutrality at all business sites factories( and offices by) fiscal 2030, using fiscal 2019 as the base year for .comparison In ,addition Hitachi has set a target to reduce the greenhouse (gas GHG emissions) defined—intensity as emissions per unit of value (added gross across)—profit the value chain by 52% from the fiscal 2022 ,level and is working to achieve this .goal Nature positive Recognizing water as part of natural ,capital Hitachi aims to reduce water use by 10% by fiscal (2030 compared to the fiscal 2019 .)baseline In ,addition we will continue assessing both our impacts on natural capital and the impacts of nature on our business activities throughout the value ,chain while keeping a close eye on international initiatives such as the Conference of the (Parties COP-CBD to) the Convention on Biological Diversity and the Taskforce on related-Nature Financial (Disclosures .(TNFD Achieving Hitachi Environmental Innovation 2050 To achieve the goals of Hitachi Environmental Innovation 2050, Hitachi is pursuing two key “:missions GX for CORE “and” GX for .GROWTH The” first ,pillar known as GX for ,CORE accelerates the Hitachi s’Group own green .transformation The second ,pillar GX for ,GROWTH drives green transformation for customers and society through innovative .solutions By advancing GX for CORE and GX for GROWTH in ,tandem Hitachi will create and enhance solutions and continuously increase the environmental value it .delivers Through the pursuit of these ,missions we will accelerate the realization of ,decarbonization circular economy and nature paving—positive the way toward a sustainable future where people can live with peace of .mind Circular economy To deliver value across product life ,cycles Hitachi aims first to eliminate landfill waste at manufacturing sites and to apply design-eco to all related product groups by fiscal 2030, thereby promoting environmentally conscious design and the transition to circular business .models 1* Intensity based on gross profit 1* year3- average from 2025FY to 2027FY GX for CORE and GX for GROWTH Targets and KPIs 2027FY 2030FY 2050FY GHG emissions reduction at business (sites factories and (offices 2019FY) base (year 75% Carbon neutrality zero-Net GHG emissions intensity reduction 1rate across the value (chain 2022FY base (year 40% 52% Targets and KPIs 2027FY 2030FY Waste landfill rate 2.0% 0% application rate New products All relevant product design-Eco groups Targets and KPIs 2027FY 2030FY Reduction rate in water use per 1unit ( 2019FY base (year 8% 10% for CORE for GROWTH GX in Hitachi Group Contribution to GX for customers and society through innovative solutions GX GX Create and enhance solutions by dual missions Carbon Neutrality Zero Landfill Waste 10% Water Usage Reduction Avoided emissions M100 1year/tons GX Revenue 4.6 Trillion 1year/yen Main KPIs by 2030FY Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 041
Environmental Action Plan To achieve the Environmental Vision and the Hitachi Environmental Innovation 2050 term-long environmental ,targets Hitachi draws up an Environmental Action Plan containing indicators and targets set every three .years 2027 Environmental Action (Plan fiscal (2027–2025 In conjunction with the revision of the term-long environmental ,targets Hitachi Environmental Innovation 2050 and the Inspire 2027 management ,plan Hitachi has established the specific metrics and targets of the 2027 Environmental Action (Plan .)2027FY–2025FY We will advance our environmental initiatives to achieve these targets over a year-three .span 1* :Scope All manufacturing sites and B/A manufacturing-non sites 2 Per gross profit 3 2027FY2025-FY average 4 Calculated from 2025FY actual results and 2027FY–2026FY .forecasts 5 All manufacturing sites Category Activity KPIs Base year 2025FY targets 2025FY results 2026FY targets 2027FY targets Factories and offices Reduction of GHG at business sites GHG emissions reduction 1rate 2019FY 60% 64% 65% 75% Value chain Reduce GHG emissions throughout the value chain Number of procurement partners that set GHG reduction plans and targets 1,000( companies by (2030 400– companies 428 companies 500 companies 700 companies Products and services Reduce GHG emissions of products and services GHG emissions intensity reduction 2rate 2022FY 30% 41% 35% 40% Avoided :emissions 100 million tons per 3year – :Target 100 million (year/tons 2027FY2025-FY (average :Forecast 280 million metric 4year/tons 2027FY2025-FY( (average Circular economy – Promote design-eco Application rate of environmental conscious design for new product development – 100% 100% 100% 100% Factories and offices Enhance efficiency in the use of resources Waste landfill 5rate – 3.0% 1.8% 2.5% 2.0% Effective utilization rate of plastic 5waste – 87.5% 99.1% 90.0% 92.5% Nature positive Biodiversity conservation Contribution to biodiversity conservation Reduction rate in water use per 5unit 2019FY 6% 22% 7% 8% Reduction rate of water usage at manufacturing sites located in stressed-water areas Previous FY 0.6% -0.4% 0.8% 1.0% environmental business Products and services GX revenue Revenue of ,products ,services Growth through and solutions contributing to GX per 3year – – :Target 4.6 trillion (year/yen 2027FY–2025FY (average :Forecast 4.7 trillion 2027FY–2025FY(4*year/yen (average Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 042
s’Hitachi approach to GX Based on our founding “,mission contribute to society through the development of ,superior original technology and “,products Hitachi leverages ,IT OT and products to contribute to green (transformation GX as) a digital infrastructure .company Hitachi operates globally across four key :sectors ,Energy ,Mobility Digital Systems & ,Services and Connective .Industries Hitachi implements a range of GX ,initiatives including the provision of products and services that minimize environmental impacts during ,use energy transition solutions for ,decarbonization ,safe ,comfortable and clean modes of ,transportation and enhanced system efficiency and uptime through digital .technologies We introduce the following examples based on our three :pillars ,decarbonization circular economy and nature .positive Business overview ,Products services and solutions that support green (transformation (GX Featured examples Decarbonization Contributing to the maximization of renewable energy utilization through digital control With the anticipated increase in electricity demand due to the expanding use of ,AI leveraging renewable energy for carbon neutrality is an urgent .priority Hitachi supports the use of renewable energy with digital technology that integrates IT and .OT Our efforts include providing regional-cross grid management systems that deliver renewable energy from production sites to distant consumption ,areas as well as generation-next nationwide load dispatching systems and electricity balancing market systems that support grid ,stabilization which becomes more critical as renewable energy usage .grows Hitachi builds the generation-next nationwide load dispatching systems by combining our expertise in power systems accumulated over many years with Hitachi s’Energy global .products Case study of s’Hitachi Regional-Cross Operation System featured by WBCSD Digital control to maximize the use of renewable energy voltage-High direct (current HVDC transmission) system Innovation in distance-long and highly efficient transmission with high voltage direct (current (HVDC Hitachi s’Energy HVDC efficiently transmits large amounts of energy over long distances from remote locations to demand ,areas supporting output fluctuations and stabilizing interconnected AC .systems HVDC plays a vital role in transforming energy systems as a transmission technology that supports the mass introduction of renewable .energy This technology has been recognized by the World Business Council for Sustainable (Development WBCSD as) a concrete example of emissions .reduction HVDC case study featured by WBCSD Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 043
Advancing railway decarbonization through battery technology Hitachi Rail introduced the s’world first powered-battery passenger train in Japan and s’Europe first battery hybrid train in .Italy The train introduced in Italy reduced 2CO emissions by approximately 50% compared with conventional powered-diesel .trains Hitachi Rail is currently testing a new battery system on intercity express trains in the .K.U The battery ,unit which delivers over 700 kW of ,power is expected to reduce emissions and fuel costs by up to 30%. The project also demonstrates that battery technology can contribute to lower infrastructure costs by reducing the installation of overhead line facilities in tunnel sections and at complex .junctions Replacing diesel engines with performance-high batteries and enabling effective-cost partial electrification allows Hitachi Rail to provide a cost-lower pathway to more efficient rail decarbonization .worldwide Passengers also benefit from the ability of intercity express trains to operate in emission-zero battery mode on electrified-non sections of ,track improving air quality and reducing .noise Social impact story powered-Battery hybrid railcar Recycled mineral filled-oil transformer Recovered permanent magnet motor hoisting machine Circular economy Transitioning transformers to a circular model to support energy transition Hitachi is working to reduce environmental impacts and advance the reuse of finite resources in ,transformers key components of power .infrastructure At Hitachi ,Energy initiatives are being advanced across the entire value chain in collaboration with customers and .partners For ,example recycled mineral ,oil recovered and refined from used ,transformers has been utilized as insulating oil for distribution transformers and most recently also successfully tested and technically validated for power .transformers Substituting virgin mineral oil with recycled mineral oil as the dielectric insulating fluid can typically reduce the related‑material carbon footprint of transformers by up to 8%, without requiring any change in transformer .design This substitution also allows the average recycled content at transformer level to increase by approximately 20%. Advancing resource circulation through permanent magnet motor recycling Hitachi Building Systems has established and begun operating a recycling network for permanent magnet motor hoisting machines replaced during modernization projects for Hitachi .elevators This initiative encourages the circular use of ,resources including rare earth ,elements and helps reduce environmental .impact ,Specifically permanent magnet motors are removed from hoisting machines recovered during modernization ,projects then disassembled and demagnetized to recover the .magnets The recovered magnets are recycled by external specialist manufacturers for reuse as regenerated ,magnets while copper wiring and steel components are likewise separated and recycled as material .resources At ,present approximately 80 tons of (motors gross motor (weight are processed .annually Looking ,ahead this volume is projected to grow to approximately 650 tons per year in line with demand for elevator modernization ,projects and Hitachi Building Systems will continue to scale up its processing capacity .accordingly ,Furthermore by newly including industrial motors used across the Hitachi Group within the scope of this ,network we will reduce ,waste secure stable volumes of recovered resources and expand demand for recycled .materials Social impact story Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 044
Pursuing a circular economy through business model transformation Hitachi Industrial Equipment Systems and Hitachi Global Air Power are engaged in rebuilding and remanufacturing services for air .compressors When servicing a s’customer air ,compressor Hitachi Industrial Equipment Systems collects the major components removed for ,replacement then ,disassembles overhauls and inspects them before storing them as rebuilt products for future .use These rebuilt products are subsequently utilized when servicing other customers air’ .compressors Hitachi Global Air Power provides remanufacturing services for air .compressors Used air compressors are collected from customers and restored to new-like condition by incorporating the latest specifications that can be ,retrofitted thereby extending the service life of the .equipment Looking ,ahead both companies will expand the range of products eligible for rebuilding and remanufacturing .services Nature positive Advanced wastewater treatment and provision of reclaimed water Amid growing global concerns over water scarcity and environmental ,degradation countries and regions worldwide have been facing diverse water and environmental challenges in recent .years Against this ,backdrop Hitachi has stepped up to offer tailored solutions to address these .needs In the ,Philippines we implement an advanced treatment and water reclamation project at the Alabang Sewage Treatment Plant in the Manila metropolitan .area The project uses a membrane (bioreactor MBR 1system) to remove nitrogen and ,phosphorus and further treats the effluent using a reverse (osmosis (RO 2system and ultraviolet disinfection to produce reclaimed water that meets the s’country drinking water .standards In addition to designing and delivering mechanical and electrical ,equipment Hitachi also provides digital (transformation DX ,solutions) such as remote plant monitoring and operation optimization ,systems contributing to improved water quality and meeting growing water .demand 1* A membrane (bioreactor MBR system) is a sewage treatment system that combines activated sludge treatment and immersion membranes to enable concentration-high activated sludge .treatment This system is easy to ,maintain conserves ,space is low ,cost and ensures quality-high treated water 2* A reverse (osmosis RO system) is a water purification system that uses pressure higher than osmotic pressure to force water through a semipermeable ,membrane resulting in purified water Inundation and flood damage forecasting In recent ,years the increased frequency and severity of floods in ,Japan exacerbated by climate change and other ,factors have required local governments to enhance .countermeasures Such countermeasures include not only physical infrastructure but also driven-data disaster preparedness ,measures such as the creation of flood hazard .maps Hitachi implements flood forecasting ,initiatives including the delivery of a basin flood damage prediction system to Aomori .Prefecture This prediction system integrates map ,data river data and laser (profiler 1*(LP data to run ,speed-high precision-high flood simulations that support risk assessment and evacuation .planning The system also automatically integrates river water level and weather ,data enabling continuous hour24- flood forecasting with predictions extending up to six hours in .advance Through the creation of a ,new more precise flood risk (map flood frequency map and) an internal water hazard 2,map Hitachi helps municipalities prepare for both internal and 3external ,flooding contributing to more robust flood risk .management 1* dimensional-Three topographic data obtained via airborne laser surveying 2* An internal water hazard map summarizes estimated data such as flood area and depth when internal (water water flowing through sewers and waterways floods) due to heavy rain or similar events 3* External water refers to water flowing in rivers Remanufactured air compressor Alabang Wastewater Treatment Plant in Metro Manila Basin flood damage prediction system Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 045
Enabling safe and resilient infrastructure using Service Suite X In the utilities and rail ,industries effective work ,management including vegetation ,management is essential to ensure ,safety reliability and regulatory .compliance Through Service Suite X work management software ,platform Hitachi Energy enables a shift from ,intensive‑labor reactive practices to a ,proactive digitally integrated approach that covers ,prediction planning and field execution within a ,loop‑closed native-cloud software .platform By integrating workforce ,information vegetation data and time‑real field inputs into a single source of ,truth Service Suite X supports driven‑AI scheduling risk ,assessment prioritization and optimized work .planning Field crews are equipped with firstmobile access to critical ,information while time‑real progress visualization and driven‑data reporting improve operational ,efficiency enhance field safety and support the resilient and sustainable operation of critical .infrastructure Enhancing forest value and supporting local communities through digital technology Forests cover approximately 70% of s’Japan .land ,However aging populations and labor shortages have left many forests insufficiently .maintained As a ,result the inherent functions and value of ,forests including watershed protection and 2CO ,absorption are not being fully .utilized Hitachi Systems implements the Forest Survey DX Service nationwide to strengthen the multifaceted functions of ,forests including watershed 1protection , and enhance forest .value This service uses drones and aerial laser surveying to assess large forest areas quickly and .safely AI technology then visualizes data including tree ,counts ,species size and carbon .sequestration The service also generates CS topographic maps and statistical reports using terrain data and analyzes forest ,conditions including levels of forest degradation and .density These insights support forest management ,planning carbon credit generation and positive-nature ,initiatives enabling Hitachi Systems to help build a more sustainable future for the .region 1 Watershed protection is the ability of forest soils to retain precipitation and regulate the flow of water into ,rivers helping to mitigate flooding and maintain stable river flows during periods of .drought Rainwater is also naturally filtered as it passes through forest ,soils improving water .quality GHG avoided emissions Hitachi calculates our contribution to decarbonization through collaborative creation with customers as avoided .emissions This metric indicates the extent to which Hitachi products and services contribute to reducing GHG emissions associated with ‘customers business ,activities expressed in terms of avoided .emissions Under the 2027 Environmental Action ,Plan Hitachi aims to achieve average annual avoided emissions of over 100 million tons over the year-three period from fiscal year 2025 through fiscal year 2027. As of fiscal year 2025, the projected average over the planned period is expected to reach 280 million .tons We developed our methodology for calculating avoided emissions with reference to international ,discussions including guidance published by the ,WBCSD and calculate the metric based on this .methodology Our calculation takes customer GHG emissions from the introduction and use of Hitachi products and services and compares these emissions with those under a baseline scenario established by .Hitachi International discussions aimed at improving the transparency and credibility of avoided emissions continue to .evolve For ,example the WBCSD published guidance on avoided emissions in March 2023 and issued a revised version in July 2025. In ,Japan the GX 1League is examining the use of avoided emissions in relatedclimate opportunity disclosures and .evaluations The 2IEC is also advancing standardization efforts related to avoided .emissions These developments reflect growing international discussion on how to assess contributions to decarbonization through products and .services Hitachi participates in these international discussions through organizations including the WBCSD and ,IEC contributing insights gained through practical application of the .methodology We will continue working to enhance the :Note KPIs are based on the 2027FY–2025FY .average Forecasts are calculated based on 2025FY actual results and 2027FY–2026FY .forecasts Infrastructure operations enabled by Service Suite X area-Wide forest surveys using drones 2027 Environmental Action Plan KPI Avoided :emissions 100 million metric tons year/ :Forecast 280 million metric year/tons 2027FY2025-FY( (average :Target 100 million metric year/tons 2027FY2025-FY( (average Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 046
Calculating avoided emissions 1( Transition) to fossil-non energy Calculate• the amount of GHG emissions reduced by using fossil-non energy sources compared to electricity supplied from the grid 3( Electrification) Calculate• the amount of GHG emission reductions compared to products and services before electrification GX revenue Hitachi aims to contribute to and accelerate green transformation GX( for) society and customers through our .businesses We disclose GX revenue as an indicator of the progress and outlook of these .efforts GX revenue represents the revenue of ,Hitachi .Ltd and our consolidated subsidiaries derived from businesses classified as environmental“ businesses under” criteria established by .Hitachi These criteria take into account regional environmental ,policies Hitachi business lines and concepts reflected in the six environmental objectives of the EU Taxonomy (Regulation climate change ,mitigation climate change ,adaptation the sustainable use and protection of water and marine ,resources the transition to a circular ,economy pollution prevention and control and the protection and restoration of biodiversity and .(ecosystems ,Accordingly this indicator differs from environmental metrics defined under the EU Taxonomy Regulation and other regulatory frameworks adopted in various .jurisdictions GX revenue is evaluated based on a year-three average .basis Under the 2027 Environmental Action ,Plan the target is to achieve an annual average of 4.6 trillion yen over the year-three period from fiscal 2025 through fiscal 2027. 2( Energy) saving Calculate• the amount of GHG emissions reduced by improving energy efficiency compared to products and services with equivalent functions :Examples ,HVDC wind ,turbines .etc :Example Electrification of industrial equipment 2027 Management values of the 2027 Environmental Action Plan Revenue of ,products services and solutions contributing to GX :Examples ,Compressors ,elevators .etc The criteria used to define environmental ,businesses which form the basis for calculating GX ,revenue may be revised in the future in response to changes in government environmental policies and shifts in investor and societal perspectives on environmental .issues transparency and credibility of our calculations and disclosures while contributing to the decarbonization of customers and society as a .whole 1* A place where companies aiming to achieve sustainable growth with a view to becoming carbon neutral by 2050 collaborate with companies engaged in similar ,initiatives as well as with entities from across ,industry government and academia 2* International Electrotechnical Commission :Note KPIs are based on the 2027FY–2025FY .average Forecasts are calculated based on 2025FY actual results and 2027FY–2026FY .forecasts Grid power from thermal power ,generation .etc derived-fossil-Non electricity from wind power ,generation .etc GHG avoided emissions GHG emissions Old products New products GHG avoided emissions GHG emissions Industrial/Transfer (engines fossil (fuels Industrial/Transfer motors GHG avoided emissions GHG emissions 4.6 trillion yen .� trillion� yen 2027FY target 2025-2027FY( (average 2024FY result 2022-2024FY( (average 2027 Environmental Action Plan KPI Revenue of ,products services and solutions contributing to GX :Forecast 4.7 trillion year/yen 2027FY2025-FY( (average :Target 4.6 trillion year/yen 2027FY2025-FY( (average Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 047
Environmental governance structure To achieve our Environmental Vision and achieve its term-long environmental ,targets Hitachi Environmental Innovation 2050, Hitachi is building a global system to support making-decision and execution in environmental management for ,companies comprising ,Hitachi .Ltd and consolidated .subsidiaries To promote sustainable ,management we hold the Sustainability Promotion Meeting once or twice a ,year consisting of the Chief Sustainability (Officer ,)CSuO Deputy ,CSuO heads of business promotion divisions of each business (unit BU and) major Group ,companies as well as sustainability officers of regional .headquarters This meeting serves as a forum to discuss and share information on important sustainability .initiatives Important environmental matters related to achieving our term-long environmental targets are submitted to the Senior Executive Committee for discussion and ,decision and to the Board of Directors when .necessary Under the three pillars of our Environmental ,Vision ,decarbonization circular economy and nature ,positive we have established separate meetings for important ,topics with responsible officers from each BU and major Group companies as the main .members Through these ,meetings we promote environmental activities across the Hitachi Group by developing Group-cross measures and sharing .information Hitachi is working to lead green (transformation GX globally) under the two pillars of GX for (CORE s’Hitachi own GX and) GX for (GROWTH GX together with customers and ,(society establishing the necessary framework to support these .efforts As a company with a Nominating ,Committee .,etc Hitachi has an Audit Committee composed of independent directors that conduct an annual audit of sustainability related ,operations including environmental .matters Reports on climate change and other important environmental issues are made to the committee by the executive officers .responsible Sustainability strategy management structure GX for CORE and GX for GROWTH Decarbonization Overview of sustainability related conference bodies Executive compensation system linked to environmental value We incorporate sustainability assessments into our executive compensation system and reflect certain environmental targets and KPIs based on our sustainability ,strategy ,PLEDGES in executive compensation .evaluations Refer to the following link for more .details Linking executive compensation to the sustainability strategy Structure for fostering environmental governance Environmental governance Sustainable procurement Sustainable Procurement Conference Board of Directors Management-Eco Meeting Senior Executive Committee 2030CN Promotion Project (Meeting Scope 1 and (2 Scope 3 Reduction Project Meeting Sustainability Steering Committee Sustainability Promotion Meeting Decarbonization R3 Promotion Project Meeting Circular economy Nature Positive and Water Risk Measures Working Group Nature positive Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 048
Enhancing our environmental management system Hitachi has approximately 1,370 business sites of different sizes engaging in a wide variety of .activities We classify these sites into three environmental risk :categories (A high ,)risk (B medium (risk and (C low ,)risk based on globally standardized Environmental Management Classification 1Criteria , and implement our environmental management according to the environmental risk level of each .site In fiscal 2025, approximately 120 major sites were classified as Category .A For sites of companies acquired by Hitachi that have a large environmental (impact equivalent to Category ,)A we classify them as Category A after an adjustment period of several years to adapt to s’Hitachi environmental management .system The business units and Group companies participate in formulating the Environmental Action Plan at Management-Eco ,Meeting set targets based on the plan and work toward achieving .them The Environmental Action Plan is thoroughly communicated throughout the Hitachi Group via environmental strategy officers appointed from among the heads of environmental promotion divisions at BUs and Group .companies In addition to s’Hitachi own environmental management ,system major global manufacturing sites have also acquired party-third ,certifications such as ISO 2.14001 We have also established a system to encourage procurement partners to reduce their environmental ,impact including efforts toward carbon neutrality upstream in the value .chain We summarize s’Hitachi approach to sustainable and green ,procurement as well as requirements for procurement ,partners in various ,guidelines which are distributed to .them We also hold procurement briefings and conduct sustainability audits to further strengthen engagement with procurement .partners Certain environmental data is subject to party-third limited .assurance See the Hitachi ESG Databook 2026 for more information on .assurance Hitachi ESG Data Book 2026 1 We score each site based on criteria for environmental management ,classification such as electricity ,consumption waste ,generation water use and whether the site is subject to legal .regulations Based on this ,score we categorize the site into one of the three categories 2 181 Hitachi Group business sites have acquired party-third ISO 14001 (certification as of March .(2026 Number of ISO 14001 certified companies Sustainable procurement Collection of environmental impact data using our ESG Management Support Service As part of our environmental ,management Hitachi uses the ESG Management Support (Service MSS-ESG to) collect approximately 20 categories of environmental related ,data ranging from energy ,use water use and waste ,generation to whether an item falls under relevant environmental ,laws regulations and environmental .accounting Data collection for fiscal 2025 covered roughly 1,370 business sites in 72 .countries The aggregated data is used to provide feedback to improve environmental ,measures such as in determining business site environmental management ,classifications identifying environmental management issues and sharing instructive examples within the .Group We also compile data on key metrics twice a year for the approximately 120 major sites in Category A and the approximately 80 manufacturing sites in categories B and .C We established an international help desk to support the system and encourage an understanding of environmental ,management offering support in ,Japanese English and .Chinese Chemical substance management system Hitachi manages data on chemical substances in procured ,materials parts and products using a green procurement system compatible with the 1chemSHERPA .format This framework allows us to identify the chemical substances that are used in our from—products design and ,development procurement and production to quality assurance and and—shipping to ensure compliance with the laws and regulations of export destination .countries To ensure proper use of chemical substances in our business ,operations we operate a database for chemical substance management called ,CEGNET which keeps track of the latest laws and regulations and our own voluntary management ,rules and is used for risk searches for new substances handled at each .site The system also registers the chemical substances in ,use aggregates data on quantities ,handled emitted and ,transferred and supports efforts to reduce .emissions 1 A shared transmission scheme throughout the supply chain to ensure proper management of chemical substances in products and continuing compliance with the growing-ever requirements of major global laws and regulations like the REACH (regulation EU regulation of ,Registration ,Evaluation Authorisation and Restriction of Chemicals and) RoHS (directive EU rules restricting the use of hazardous substances in electrical and electronic (equipment Briefings for procurement partners We registered data regarding chemical substances contained in approximately 1.44 million ,materials parts and products in our green procurement system as of the end of fiscal 2025. In ,addition we hold briefings for procurement partners who use the system to help our partners learn how to operate the system and .chemSHERPA The briefings also help improve partner understanding of trends in regulatory .revisions In fiscal 2025, we held 4 ,briefings with a total of 1,654 .participants Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 049
Environmental education for employees Hitachi offers learning-e based environmental education to all Group ,employees from new hires to senior .management We also provide annual specialized training on environmental risks and compliance with related-environment laws and regulations for level-working employees in charge of environmental management and internal environmental .audits Particularly in ,China we provide training focused on compliance with the s’country environmental laws and ,regulations which have been tightened in recent .years Environmental compliance In addition to ensuring compliance with the laws and regulations of each country and ,region Hitachi strives to minimize environmental risks by establishing voluntary management criteria that are more stringent than regulatory requirements and by conducting internal .audits We make periodic examinations of soil and groundwater to detect contamination at business sites where hazardous chemical substances ,are or once ,were .used If contamination is ,found we conduct cleaning and monitoring activities until decontamination is .complete In ,addition Hitachi has established rules for communicating information on environmental ,issues such as the impact of business activities on the surrounding ,environment including water ,quality waste ,materials air ,quality noise and ,vibration complaints and the external environmental impact of .disasters In this ,way we ensure that BUs and Group companies promptly collect and share information with the corporate environment division of ,Hitachi .Ltd If a violation occurs or a complaint is ,received Hitachi shares information on the causes and countermeasures throughout the Group ,and under appropriate guidance from BUs and Group ,companies continuously strengthens compliance activities to prevent .recurrence Number of regulatory violations and complaints 1* According to the Hitachi Group Global Audit ,Standards which specify matters concerning internal audits conducted by business units and the Group companies 2* According to the Environmental Action Plan Implementation status of internal environmental audits Environmental education in fiscal 2025 Implementing department Target Frequency Corporate environment divisions Global( Environment ,)Division ,Hitachi .Ltd Business ,units headquarters of the Group companies and business sites with high environmental risks Usually every three years Corporate environment divisions of BU and Group companies Major business sites and subsidiaries of business units and the Group 1companies Sites of business units and the Group companies outside Japan that are classified as Category A in our environmental management 2classification ISO certified14001- business sites Audit( teams Divisions) within business sites Contents of training Target Number Hitachi Group training on basic environmental ,management recent amendments to laws and operational procedures Employees working in air ,quality water quality and waste management :Japan 62 ,companies 1,767 people :waste( 1,091 people + :compliance 676 (people :China 29 ,companies 56 people 23 ,companies 38 people Environmental management training program to reduce environmental risks in China and raise the knowledge of level-working employees Working level employees 23 ,companies 38 people New employee training New employees in the China Hitachi Group Not conducted in 2025FY Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 050
Efforts to achieve decarbonization Climate change is an urgent global challenge in s’today world that threatens the foundations of economic and social systems .worldwide Hitachi monitors developments in international ,discussions including the Conference of the (Parties COP to) the United Nations Framework Convention on Climate ,Change and deepens cooperation with governments and other stakeholders to tackle environmental issues from a global .perspective In doing ,so we aim to become a Climate Change Innovator and accelerate s’society .decarbonization Under our mission of GX for ,CORE we will accelerate measures to reduce our own GHG emissions to achieve carbon neutrality at business (sites factories and offices by) fiscal 2030. ,Additionally as stated in our term-long environmental ,targets Hitachi Environmental Innovation 2050, we are working toward achieving net zero by fiscal 2050. Under GX for ,GROWTH we will contribute to the decarbonization of society through the growth of businesses that contribute to a greener .future For ,example Hitachi Energy plans to invest approximately 6.25 billion USD between fiscal years 2024 and 2027 to enhance ,manufacturing ,engineering digital ,technologies research and development and ,partnerships helping to accelerate the clean energy .transition This investment will also help to reduce emissions during the use of our products and ,services which account for the majority of GHG emissions in Decarbonization our value .chain Hitachi will tackle environmental issues on-head by providing products and services with minimal environmental impact and by offering a wider range of solutions that reduce GHG emissions for customers and .society Ratio of GHG emissions at each stage of s’Hitachi value chain in fiscal 2025 The zero-net based-science target validated by SBTi In ,addition Hitachi has received validation from the (SBTi Science Based Targets 1*(initiative for our based-science zero-net target for achieving the C1.5° target set by the Paris .Agreement Certified targets are as .follows 1* International initiative where companies and financial institutions set based-science greenhouse (gas GHG emission) reduction ,targets and have the validity of such targets reviewed and certified 2* GHG emissions from purchased products and ,services and GHG emissions from the use of sold products 3* Gross profit 4* We plan to neutralize residual emissions that are difficult to reduce through GHG absorption and removal Waste Disposal / Recycling Scope( 3 Category 5, (12 Transportation Scope( 3 Category 4, (9 Production Scope( 1, Scope (2 Use Scope( 3 Category (11 Other Capital( ,goods (.etc Procurement of Raw Materials and Parts Scope( 3 Category (1 7.2% 0.2% 0.2% 91.3% 0.1% 0.9% 2030FY 2050FY term-Short target term-Long target zero-Net target Scope 1, 2 2019FY( base (year Total reduction of 83% Total reduction of 90% 4zero-Net throughout the entire value chain Scope 3 Category 1, 211 2022FY( base (year Per unit of added 3*value 52% reduction Per unit of added value 97% reduction Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 051
Environmental strategy for achieving decarbonization Initiatives for achieving decarbonization
- Achieve carbon neutrality at our own business sites and production (activities by fiscal (2030 Introduce• saving-energy and renewable energy equipment Procure• electricity from fossil-non power sources
- Achieve class-world energy efficiency in products Achieve• energy conservation by developing environmentally conscious products from the design stage
- Collaborate with procurement partners toward decarbonization Distribute• Sustainable Procurement Guidelines and Green Procurement ,Guidelines requesting all procurement partners to set GHG emission reduction targets Hitachi• has accumulated knowledge of GHG reduction and calculation and analysis methods through dialogue with the 21 procurement partners selected in fiscal 2022. We applied this knowledge to GHG emissions reduction activities with approximately 428 procurement partners in fiscal 2025 and aim to expand these activities to 500 partners in fiscal 2026.
- Support businesses that contribute to the decarbonization of society as a whole Operate• power grid business to support the expansion of renewable energy Provide• efficient-energy speed-high trains and battery hybrid trains Provide• Lumada solutions that support the realization of decarbonization through digitalization
- Develop technologies to enable the transition to decarbonization Develop• efficiency-high ,products energy management systems and related-hydrogen technologies Policy advocacy and standardization activities related to climate change Hitachi believes that effective and practical ,policy regulatory and international frameworks are essential to addressing climate change and other environmental .challenges Based on this ,view we actively participate in policy advocacy and the development of global .frameworks Hitachi has played an active role in developing ,standards including design-eco ,standards primarily through TC 111, the committee responsible for environmental standardization within the International Electrotechnical (Commission .)IEC We contributed to the development of IEC 63372, an international standard published in January 2026 that establishes a framework for quantitatively assessing carbon ,footprints GHG emissions reductions and avoided .emissions We also participated in discussions on guidance for avoided emissions conducted through the World Business Council for Sustainable Development WBCSD( and) were featured as a case .study In ,Japan Hitachi engages in policy advocacy on decarbonization initiatives through ,Keidanren including emissions trading systems and the Asia Zero Emission (Community AZEC initiative) promoted by the Japanese .government We also actively advocate for effective related-climate disclosures through organizations including the TCFD ,Consortium based on dialogue between information providers and .users Sustainability initiatives Reduction of product and service GHG emissions during use Hitachi has set a target to reduce GHG emissions per unit of value (added gross 1*(profit ( Scope 3, Category 11 by) 40% by fiscal 2027 from the fiscal 2022 .baseline This indicator tracks GHG emissions generated during the use of products and ,services which account for the largest share of emissions across the value .chain In fiscal 2025, we achieved a reduction rate of 41%, exceeding our target of 30%. Although the decline in electricity emission factors slowed in certain countries and ,regions the introduction of new efficient-energy products used in industrial equipment and social ,infrastructure together with increased revenue from ,services contributed to achieving the .target 1* Per unit of gross profit 2027 Environmental Action Plan management values GHG emissions intensity reduction 1*rate 100% 59% GHG emissions during product :use GHG emissions during product :use 41% reduction :Target 30% 2022FY ( base (year 2025FY Gross profit GHG emissions = Compared with base year Gross profit GHG emissions = Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 052
GHG emission reduction at business sites factories( and offices and) Hitachi Carbon Neutrality 2030 In working toward realizing a decarbonized ,society Hitachi has set a carbon neutrality target at all business (sites factories and offices by) fiscal 2030 as part of our term-long environmental .targets Under the 2027 Environmental Action (Plan fiscal ,)2025-2027 in line with the revision of our term-long ,targets we have expanded the scope of our targets from only Category A business sites to include all manufacturing sites and both Category A and B manufacturingnon ,sites using fiscal 2019 as the new base .year In addition to conventional derived-energy 2,CO we also work to reduce derived-energy-non GHG .emissions The reduction rate of GHG emissions in fiscal 2025, based on this expanded scope and using fiscal 2019 as the base ,year was 64%. 2CO emissions reduction measures at Hitachi include savingenergy ,initiatives installation of renewable energy ,equipment 1PPA , as well as procurement of fossil-non energy and utilization of energy attribute 2.certificates Among these ,efforts our saving-energy ,initiatives installation of renewable energy equipment and PPAs help mitigate the risk of future energy price increases and support compliance with carbon .pricing We also focus on these measures to support our corporate mission of contributing to society through the development of ,superior original technologies and .products 1 Power purchase :agreement A term-long contract under which a buyer purchases renewable electricity from a power .generator 2 Energy attribute :certificate Accredits the environmental value associated with electricity generation from renewable energy .sources Unlike the purchase of renewable ,electricity acquisition of this environmental ,value which is separate from the electricity ,itself is regarded as equivalent to using energy sources that do not emit 2.CO Energy inputs and GHG emissions during business operations The specific initiatives to achieve carbon neutrality at business sites are summarized below by location (type ,factories .(offices 1* A contract whereby a ,corporation ,municipality or other legal entity purchases electricity generated by renewable energy from a power producer on a term-long (basis usually 10 to 25 .)years PPA stands for power purchase .agreement 2* The effect whereby the introduction of renewable energy electricity leads to an increase in new renewable energy generation .facilities Data up to fiscal 2019 and data from fiscal 2019 onward are shown in separate graphs due to differences in the calculation scope and other 1factors . 1 2CO emissions from Category A sites up to 2019.FY GHG (emissions including related-energy-non GHGs from) all manufacturing sites and Categories A and B manufacturing-non sites from 2019FY .onward 2* Figures beginning in 2019FY reflect all manufacturing sites and manufacturing-non sites for Categories A and .B GHG reduction roadmap Major initiatives for reducing GHG emissions at business (sites factories and (offices 2CO reductions up to 22019FY against the 2010formerFY base year GHG residual emissions 2CO residual emissions GHG emissions reduction rate (%) 2CO emissions reduction rate (%) ciencye-Energy ,measures renewable energy installations and PPAs 20% 45% Projected reduction by 2030FY compared with the 2019FY baseline fossil-Non energy procurement purchases( + (certificates 63% Carbon credits 17% 2019 2019 100 0 50 100 0 50 2010 2023 Former( base (year New) base (year 2024 2025 2026 2027 2028 2029 (2030 (year GHG residual emissions forecast 52% 2024FY reduction 64% 2025FY reduction 65% 2026FY target 75% 2027FY target Factories Improve• equipment efficiency by introducing and upgrading to efficiency-high (equipment Identify priority measures and manage rates of introduction and (upgrades Improve• production efficiency and energy use efficiency during production through use of the Lumada platform and production technologies cultivated over many years of experience Optimize• equipment operations and reduce wasted energy by installing smart meters Review• product designs and processes Optimize• control of equipment operations in response to production conditions Offices Construct• or relocate to new facilities with high energy efficiency Consolidate• and integrate existing facilities Install• saving-energy equipment and optimize equipment operations in collaboration with building owners Factories and offices Install• renewable energy systems Procure• electricity from fossil-non power sources Utilize• energy attribute certificates Utilize• renewable energy with 2additionality through corporate 1*PPA Engage• in capital investment to reduce 2CO through the use of Hitachi Internal Carbon (Pricing (HICP Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 053
The Hitachi internal carbon pricing framework Hitachi introduced the Hitachi Internal Carbon 1Pricing ( (HICP framework in fiscal 2019 to facilitate 2CO reduction at our business (sites factories and .)offices We reference global emissions trading schemes and carbon taxes to set internal carbon prices and convert the 2CO reduction effects of related-decarbonization capital investments into monetary .value This value is added to the effect of energy savings to evaluate the overall investment ,impact thereby providing incentives to further expand capital investment aimed at .decarbonization The introduction of the HICP framework enables us to incorporate risk factors such as potential increases in future carbon tax burdens and new emission regulations from the initial stages of capital investment .planning By prioritizing decarbonization ,investments we aim to minimize the impacts of future climate change risks and strengthen our corporate .resilience ,Initially we set the HICP rate at 5,000 2CO-t/yen in consideration of 2025 carbon taxes and carbon trading (prices .(2ETS ,Subsequently looking ahead to 2030, we increased the rate to 14,000 2CO-t/yen in August 2021 in consideration of anticipated carbon taxes and carbon trading .prices This increase allows us to respond proactively to future risks such as carbon taxes and to accelerate the implementation of saving-energy and renewable energy ,equipment our highest priority initiative aimed at achieving carbon .neutrality Hitachi utilizes the HICP system to facilitate additional investment that would not have qualified under previous criteria by converting 2CO reduction benefits into monetary .values This approach helps drive further reductions in 2CO .emissions In fiscal 2025, although the total investment amount ,decreased the number of adopted projects increased to 151, resulting in a substantial increase in ₂CO emissions reductions to 11,116 ₂.CO-t We will continue to utilize the HICP system to reduce 2CO .emissions 1* An house-in tool for voluntarily assigning a price to the amount of carbon generated or reduced within the ,company to support investment decisions and risk .management 2* Emission Trading .Scheme Activities and achievements at business (sites factories and (offices The 2027 Hitachi Environmental Action Plan sets a target to reduce GHG emissions at business (sites factories and .(offices In fiscal 2025, actual GHG emissions reduction was 64%, surpassing the target of a 60% reduction compared to the base year of fiscal 2019. This achievement was driven by steady progress through initiatives such as improving facility efficiency by introducing and upgrading efficiency-high ,equipment installing renewable energy systems and procuring electricity from fossilnon energy .sources GHG reduction roadmap HICP implementation results :Note From August 2021, the set carbon price was raised from 5,000 2CO-t/yen to 14,000 2CO-t/yen 1* Excluding an related-energy company that became a consolidated subsidiary in fiscal 2020 :Note Regarding 2CO emission factors for :electricity For ,Japan we used adjusted emission factors for each power company based on the Act on Promotion of Global Warming .Countermeasures For ,China we used the average emission factors for regional power grids published by the .government For other ,countries we used the latest annual emission factors for each country provided by the International Energy (Agency IEA or) the latest factors provided by power supply companies :Note 13.8 2CO-kt of retired carbon credits were deducted only from the 2027 Environmental Action Plan management .values For the figures subject to independent ,assurance emissions from the cancellation of credits for neutralization were not deducted :Scope* All manufacturing ,sites as well as manufacturing-non sites for Category A and .B GHGs emitted from the (organization Scope 1 and .(2 Environmental Action Plan management values GHG emissions reduction rate at business (sites factories and (offices .vs)* (2019FY 64% reduction :Target 60% Compared with base year 2019FY ( base (year 2025FY GHG emissions GHG emissions 36% 100% Energy reduction ecte 2CO reduction ectse Before introducing HICP After introducing HICP Investment ecte in monetary terms Hitachi internal carbon pricing framework e 2CO reduction = cost reduction Facilities that generate less 2CO have higher asset values Energy reduction ecte Asset values increase Virtual ectse are realized when Investments are assessed 2CO reduction ectse are converted into monetary value and added virtually Before After Category 12021FY 12022FY 2023FY 2024FY 2025FY Number of HICP projects 59 94 52 70 151 Investment (M[ [(JPY 1,464 1,185 2,234 2,282 1,300 2CO reduction [volume [2CO-t 1,230 2,519 4,302 2,864 11,116 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 054
Trends in GHG emissions Hitachi( s’Group ,factories offices and power (plants Sites powered by 100% renewable electricity 1* :Scope Category A sites through 2022FY all; manufacturing sites and Categories A and B manufacturing-non sites from 2023FY .onward 2* In fiscal 2023, the amount decreased due to deconsolidation of auto related-parts companies 3* From fiscal 2023, amounts include related-energy-non GHG (emissions (e2CO-kt 4* derived-Energy 2CO emissions in fiscal 2025 were 304 2CO-kt for Scope 1 and 157 2CO-kt for Scope (2 market (based Introducing renewable energy To reduce 2CO ,emissions Hitachi installs renewable energy power generation equipment on our premises and actively procures electricity generated by newly constructed renewable energy equipment located .site-off ,Furthermore by expanding the introduction of corporate ,PPA we are accelerating the replacement of fossil derived-fuel electricity with electricity from renewable energy .sources The renewable electricity introduced will comply with the standards set by the GHG .Protocol Renewable electricity procurement and use across the Hitachi Group in fiscal 2025 amounted to 1,045 .GWh This accounted for 75% of the electricity consumption of all manufacturing sites and Category A and B manufacturing-non ,sites which are included in the target management scope of the 2027 Environmental Action (Plan .(2027FY–2025FY At 189 ,sites 100% of the electricity consumed was sourced from renewable .sources Of these ,sites 57 achieved carbon neutrality reduced( Scope 1 and 2 GHG emissions to zero through) enhanced savings-energy and purchases of credits for .neutralization In ,addition Hitachi Energy continues to actively pursue decarbonization by supplying 100% of house-in electricity from fossil-non fuel .sources North America Other regions Japan Power Plants China ,ASEAN ,India and rest of Asia Europe (2CO-kt( 4,000 3,000 2,000 1,000 1,563 180 178 364 1,039 533 174 197 385 133 3,384 0 (FY( 44 16 73 43 337 175 291 167 17 52 3 45 47 1,538 676 601 460 23 35 5 43 37 144 168 21 35 3 49 39 Region/Country Sites using 100% renewable energy Carbon neutrality Europe 78 4 (sites Hitachi Energy (Group 2 (sites Hitachi tech-High (Group 1 (site Hitachi Rail (Group 1 (site Hitachi , (.Ltd North America 19 4 (sites Hitachi Energy (Group 4 (sites Hitachi tech-High (Group 2 (sites Hitachi Industrial Equipment Systems (Group 1 (site Hitachi Rail (Group China 17 3 (sites Hitachi tech-High (Group 2 (sites Hitachi Industrial Equipment Systems (Group 1 (site Hitachi Energy (Group Japan 30 7 (sites Hitachi tech-High (Group 3 (sites Hitachi Industrial Equipment Systems (Group 3 (sites ,Hitachi (.Ltd Asia excluding( China and (Japan 26 7 (sites Hitachi Energy (Group 5 (sites ,Hitachi (.Ltd 1 (site Hitachi Industrial Equipment Systems (Group Other regions 19 5 (sites Hitachi Energy (Group 1 (site Hitachi Industrial Equipment Systems (Group Total 189 57 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 055
Initiatives with procurement partners to reduce environmental impact Hitachi operates across a wide range of business ,domains and our procurement is supported by many procurement partners from whom we source various products and .components In order to encourage these procurement partners to reduce their impact on the ,environment we familiarize our procurement partners with relevant guidelines and hold briefings to share our policy for .environment In ,particular to advance ,decarbonization Hitachi has set a target of achieving net zero across our value chain by fiscal 2050. To this ,end we encourage collaboration and cooperation with procurement partners on initiatives upstream in the value .chain Hitachi Group Sustainable Procurement Guidelines Environmental Vision and Hitachi Environmental Innovation 2050 Efforts toward carbon neutrality upstream in the value chain GHG emissions measurement upstream in the value chain Hitachi calculates GHG emissions of Scope 3 Category 1, Purchased Goods and ,Services upstream in the value chain by using a calculation method that covers the majority of procurement spending and partially incorporates primary data from procurement .partners We place emphasis on engagement in the collection of primary data from procurement ,partners utilizing the EcoVadis party-third sustainability evaluation platform and the Hitachi Sustainability .Questionnaire The Scope 3 Category 1 emissions in fiscal 2025 was 15.09 million metric .tons GHG emissions reduction efforts upstream in the value chain The Hitachi Sustainable Procurement Guidelines require procurement partners to set ,based-science wide-corporate GHG reduction targets in line with s’Hitachi GHG reduction targets and to report on .progress To encourage GHG reduction efforts among procurement ,partners we have engaged in dialogue with 21 partner companies selected in fiscal 2022 and explored GHG reduction ,measures emissions calculation methodologies and approaches to ,collecting analyzing and utilizing .data Based on these ,insights the number of procurement partners in fiscal 2025 that have established GHG emissions reduction targets and implementation plans increased to 428. We are working to expand that number to 500 by fiscal 2026. Target procurement partners were selected from those with the highest Scope 3 Category 1 emissions and key procurement partners in s’Hitachi business .activities Our selected procurement partners are located in a wide range of countries and regions and operate in a variety of ,industries including raw ,materials components and .equipment In terms of ,scale our partners include not only large companies but also small and sizedmedium .enterprises Hitachi has been working to understand the amount of GHG reductions upstream in our value chain by collecting reduction plans from procurement partners and analyzing the details of these .plans While some of the applicable partners are steadily calculating ,emissions setting targets and developing action ,plans Hitachi has recognized that particularly—others small and sized-medium are—enterprises uncertain about what steps to ,take how to schedule these ,steps how to apply specialized calculation methods and how to set appropriate .targets Hitachi established a decarbonization creation-co partner framework in fiscal 2025 for procurement ,partners particularly small and sized-medium ,enterprises based on findings from procurement partner assessments to .date We engage in direct dialogue to support procurement partners in calculating emissions and developing reduction targets and plans that reflect their .circumstances We also support capacity building for our procurement partners by preparing and providing the necessary ,tools including practical handbooks on carbon .reduction Going ,forward we will expand our support programs by leveraging assistance from public institutions with specialized expertise and practical experience to help procurement partners successfully implement their reduction .plans Hitachi is committed to expanding GHG emissions reduction activities with the goal of having 700 procurement partners establish reduction targets and plans by fiscal 2027. Sharing our Green Procurement Guidelines and related initiatives Hitachi distributes the Green Procurement Guidelines that define our basic position on procuring environmentally friendly parts and ,products as well as our requirements for procurement .partners The guidelines set out matters related to environmental conservation ,activities such as establishing environmental management systems and recommending the acquisition of environmental .certifications The guidelines also cover matters related to reducing the environmental impact of products supplied to .Hitachi These measures include conserving resources and ,energy ,recycling properly managing chemical substances in ,products and providing appropriate .information To address chemical substances in ,products we recommend that our procurement partners use 1chemSHERPA ,AI/CI a standardized format for communicating information on chemical substances in products throughout the supply .chain 1 Developed by the Japanese Ministry of ,Economy Trade and Industry to facilitate the management of chemical substances in products by creating a standardized format throughout the supply .chain The -chemSHERPA CI standard is applicable to chemical substances contained in chemical products and AI-chemSHERPA to those contained in molded products Hitachi s’Rail generation‑next digital plant achieving carbon (neutrality ,Hagerstown (USA Hitachi Rail commenced scale-full operations of its art-theof-state digital rail vehicle manufacturing facility in ,Hagerstown ,Maryland ,USA in ,September 2025. The Hagerstown plant is operated as a neutral‑carbon and waste‑landfill‑zero ,facility manufacturing and delivering rail vehicles to customers across North ,America including the ,Washington .C.D metropolitan ,area Baltimore and .Philadelphia At this ,facility 70%–60 of electricity is generated site-on from renewable ,energy while the remaining 40%–30 is supplied through the purchase of energy attribute (certificates ,(EACs enabling zero-net 2CO emissions on an annual .basis In ,addition the plant operates an ESG reporting system designed to simplify sustainability disclosures and continuously monitors energy and water use to support ongoing improvements in resource .efficiency 2027 Environmental Action Plan KPI Number of procurement partners that set GHG reduction plans and targets companies428 2025FY :target 400 companies Target by 2030:FY 1,000 companies Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 056
Adoption of environmentally conscious procured materials Since fiscal 2023, Hitachi has sourced all newly refined (aluminum Al ≥ 99.7%, standard ingots procured) for use in Japan primarily from manufacturers that produce the material using hydropower and other renewable .electricity This initiative contributes to reducing GHG emissions from products and services purchased upstream in the value .chain We also work with procurement partners to adopt green 1steel produced using the mass balance ,approach as well as recycled materials to support a circular .economy Looking ,ahead we will continue to adopt and explore environmentally conscious procurement materials through collaboration and cooperation with our procurement .partners 1 Steel products supplied with certifications indicating the allocation of GHG emission ,reductions such as 2,CO achieved through additional reduction projects carried out by steel .manufacturers These reductions are pooled and distributed across selected steel products by the .manufacturer Received the highest rating for CDP supplier engagement In April 2026, ,Hitachi .Ltd was selected as a Supplier Engagement ,Leader the highest rating in the Supplier Engagement Rating by ,CDP an international governmentalnon organization working in the environmental .sector Hitachi has been selected for the fifth consecutive year since 2021 in recognition of a series of initiatives aimed at realizing a zero-net ,society including reducing GHG emissions across the entire value .chain External ESG evaluations Reducing transportation energy consumption Hitachi works to reduce our environmental impact not only by reducing energy use at factories and ,offices but also by improving logistics ,processes including product shipping and .transportation We reduce related-transportation energy consumption associated with the (delivery shipment of) finished products by improving transport efficiency and reducing packaging size and .weight ,Also each business site works to reduce transportation energy consumption by pursuing modal shifts to more efficient transportation ,methods improving truck loading ratios and taking other .measures Our sites are also transitioning to friendly-eco vehicles for company .use Reducing 2CO emissions from business vehicles through Hitachi fleet management Hitachi is preparing to electrify our fleet of business vehicles as part of efforts to achieve zero-net by fiscal 2050. ,However companies face various challenges in introducing electric ,vehicles including the limited availability of electric vehicle options and insufficient charging .infrastructure To address these ,challenges Hitachi is steadily preparing for the electrification of business vehicles at each BU and Group company based on our own fleet management .plan ,Specifically Hitachi visualizes vehicle operating conditions using 1BPO and AI drive 2recorders and uses the resulting data to analyze driving behavior and monitor 2CO .emissions Based on the results of this analysis and ,monitoring Hitachi implements actions to reduce 2CO emissions from existing vehicles and is replacing business vehicles with electric vehicles in a phased manner to further reduce 2CO emissions from our .fleet 1* Abbreviation of business process .outsourcing BPO outsources the entirety of a business process to a specialized contractor 2* A service that uses AI to analyze recorded driving footage and identify potentially unsafe driving behaviors and driving .tendencies Hitachi fleet management In fiscal 2025, our reduction initiatives focused on leveraging BPO to centralize vehicle management and installing AI drive recorders to monitor vehicle operating .conditions These measures have already been implemented in 73% of our business vehicles in ,Japan and we plan to further expand their adoption going .forward In ,addition as a further measure to pursue centralized fleet ,management we will begin consolidating monthly parking .lots This consolidation will increase the number of basic charging stations as part of our charging infrastructure ,strategy thereby facilitating the introduction of electric .vehicles Green Procurement Guidelines Green Procurement Guidelines Annex Vehicle visualization Centralized• fleet management via BPO AI• drive recorders to monitor vehicle operation status Vehicle data analysis Analysis• of vehicle operation status and travel routes Analysis• of driver tendencies Continuous• monitoring of electrification rates and 2CO emissions Actions to reduce 2CO emissions Optimizing• fleet size based on vehicle utilization status Encouraging• driving-eco by reducing sudden acceleration and braking Fostering• awareness of 2CO reductions via visualizations of emissions Phased• vehicle ,electrification taking operational impact into account Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 057
Endorsement of the TCFD recommendations In June 2018, Hitachi announced its endorsement of the recommendations by the Financial Stability (s’Board FSB Task) Force on related-Climate Financial (Disclosures .)TCFD Since ,then we have continued to disclose information on the impact of climate change on our business and finances in line with the TCFD .recommendations This section provides disclosure of the Hitachi Group approach and efforts to address climate change based on the four pillars recommended by the (TCFD ,governance ,strategy risk ,management and metrics and .)targets s’Hitachi TCFD disclosure has been assessed as an Excellent TCFD Disclosure over several years from the perspective of domestic equity investment management institutions of the Government Pension Investment Fund of (Japan .(GPIF Governance Hitachi sees climate change and other environmental issues as important management .issues Climate change measures are a core part of the Hitachi sustainability ,strategy and policies and important matters concerning these matters are discussed by the Senior Executive Committee and submitted to the Board of Directors as .necessary Management supervises the formulation and revision of s’Hitachi term-long environmental ,targets Hitachi Environmental Innovation 2050, including greenhouse gas emission reduction ,targets through reporting to the Board of Directors when such targets are formulated or .revised In ,addition the Audit Committee conducts an audit of related-sustainability operations once a ,year and responsible executive officers report to the committee on important related-climate matters during the .audit We have participated as a planning committee member in the TCFD Consortium since its inception in 2019 as part of our outward TCFD .initiatives The consortium discusses effective corporate disclosure and efforts to link disclosed information to appropriate investment decisions on the part of financial related-Climate financial information (disclosure based on TCFD (recommendations institutions and .others We contributed to the development of the Scope 3 ,Guidebook which was published in March 2026. Sustainability strategy management structure Environmental governance structure Strategy Hitachi addresses the environment as an important foundation supporting -medium to term-long value creation through green .transformation Since 2002, we have advanced environmental initiatives by publishing our environmental vision and outlining its contributions as a global company toward realizing .decarbonization In fiscal 2016, we established our term-long environmental ,targets Hitachi Environmental Innovation 2050, based on the Paris Agreement and ,projections such as the s’IPCC Fifth Assessment Report 12.6RCP and 28.5RCP .scenarios In May 2025, Hitachi updated its term-long environmental ,targets Hitachi Environmental Innovation 2050, setting a new target of achieving net zero by fiscal 2050 which also serves as a transition plan for .decarbonization This target is also positioned as a target within .PLEDGES In ,addition s’Hitachi GHG reduction targets toward fiscal 2050 have been certified by the Science Based Targets initiative 4)SBTi( as a based-science zero-net ,target consistent with the C1.5° 5pathway outlined in the Paris .Agreement In pursuing these ,targets Hitachi demonstrates a commitment to contributing to global .decarbonization 1* A Representative Concentration (Pathway RCP scenario) under ,which at the end of the st21 ,century the projected increase in global temperatures from preindustrial levels is kept below C2° 2* An RCP scenario that projects that emissions will continue to ,rise resulting in an approximately C4° rise in global temperatures compared to preindustrial levels 3* Presented in the Sixth Assessment Report of the .IPCC A scenario that limits the projected temperature increase to roughly C1.5° under sustainable development 4* An international initiative where companies and financial institutions set basedscience GHG emission reduction targets and have their validity reviewed and certified 5* A target to limit the rise in global average temperature to C1.5° compared to industrialpre levels Environmental Vision and Hitachi Environmental Innovation 2050 Environmental strategy for achieving decarbonization GHG emission reduction at business (sites factories and offices and) Hitachi Carbon Neutrality 2030 Identification and assessment of related-climate risks and opportunities The Hitachi Group operates a broad array of businesses around the world with each business having its own set of risks and .opportunities To address the impacts of climate ,change relatedclimate risks and opportunities are assessed in accordance with TCFD .classifications For important businesses with relatively high likelihood of being affected by climate ,change risks and opportunities are evaluated on a business specific .basis In examining the risks and opportunities of climate ,change we classified the assessment time horizon into three :periods ,termshort ,term-medium and .term-long These classifications reflect the time frame in which the impact of climate change will become ,apparent defined respectively as .follows Time horizon for assessing related-climate risks and opportunities Degrees of impact Time horizon Reason for adoption termShort Over the next three ,years from fiscal 2025 to 2027 Corresponds to the year-three management period covered by 2027 Environmental Action Plan termMedium Up to fiscal 2030 Time horizon of our fiscal 2030 term-long environmental targets termLong Up to fiscal 2050 Time horizon of our fiscal 2050 term-long environmental targets Impact Definition Major Has an impact sufficient to disrupt business or cause it to substantially decrease or increase Medium Part of the business is impacted Minor Almost no impact Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 058
Responding to climate scenario risks and opportunities for each business Hitachi operates a broad array of businesses with each business having its own set of risks and .opportunities ,Accordingly scenario analyses were conducted for businesses with a relatively high likelihood of being affected by climate .change In selecting these ,businesses factors such as sales volume within Hitachi and the amount of GHG emissions from energy use during product and service utilization are .considered In the ,past certain businesses used fossil fuels as a primary energy .source ,However those businesses have already been removed from consolidation and are not included in the current .analysis As a result of the ,review the Railway ,Systems Power Generation Business ,environment major risks and opportunities and strategies under the C1.5° and C4° scenarios and Power ,Grids IT Systems and the Industrial Equipment businesses were selected for .analysis For each of these target ,businesses we examined the business environment and how best to ,respond mindful of changes in policy and market conditions under the C1.5° scenario and of the physical impacts of climate change under the C4° ,scenario .respectively C1.5° :scenario As projected by the 2.6RCP scenario in the s’IPCC Fifth Assessment ,Report the 1-1.9SSP scenario in the s’IPCC Sixth Assessment ,Report the IEA 450 scenario and the IEA Net Zero ,scenario a world is assumed in which stringent measures and regulations will be implemented to realize .decarbonization Risks and opportunities were examined on the premise of achieving zero-net by fiscal 2050. C4° :scenario The C4° scenario assumes a situation in which global GHG emissions increase due to insufficient regulation and related-climate disasters occur ,frequently as represented by the 8.5RCP scenario in the s’IPCC Fifth Assessment Report and the 5-8.5SSP scenario in the s’IPCC Sixth Assessment .Report ,Furthermore events expected to occur regardless of progress toward global decarbonization have been summarized as environmentalnon market (factors neither the C1.5° nor C4° .(scenario The major risks and opportunities for the selected businesses are outlined in the following .table Target businesses related-Mobility businesses related-Energy businesses Digital Systems & Services business Industrial equipment business The business ,environment major risks and opportunities under the C1.5° scenario Business environment Global demand will continue to expand for railway transport systems that emit relatively less GHG per distance ,covered with tighter GHG emission regulations in each country and .region Business environment Global demand for electricity from fossil‑non energy sources is expected to continue ,rising supported by the accelerated deployment of renewable and nuclear generation and the progressive tightening of GHG emission frameworks across major .jurisdictions Increasing alignment among leading economic powers in advancing underpinned—decarbonization by coordinated incentive schemes and support‑transition will—mechanisms influence capital allocation and technology .investment Power systems will be required to integrate a growing share of variable and distributed renewable .generation Policymakers and regulatory bodies will play a decisive role in prioritizing fossil‑non ,technologies while capital‑of‑cost dynamics and targeted support instruments will critically determine transition .speed Rapid driven‑policy adoption ,may ,however heighten user‑end affordability‑electricity pressures and trigger political responses that could shift policy ,direction including the rise of populist movements challenging decarbonization .trajectories Business environment Demand for ,saving-energy efficiency-high digital solutions will grow with tighter GHG emission regulations in each country and .region There will also be expanding demand for data centers and data analysis systems to accommodate the expansion of data utilization ,businesses including the use of ,AI in addition to the expansion of related-environment financial ,businesses such as investments and ,loans for decarbonization businesses and green bond .issues Business environment Global demand for saving-energy industrial equipment will grow with tighter GHG emission regulations across countries and .regions Risks A decline in competitiveness in the railroad sector if there are delays in the development of innovative technologies expected to contribute to the reduction of GHG .emissions ,Specifically delays in the development of new technologies such as dynamic (headways flexible operations based on passenger demand and) support for new mobility services .,g.e( .)MaaS ,Also a decline in competitiveness due to delays in the timely marketing of effective and sustainable products that comply with increasingly stringent laws and regulations for .decarbonization Risks Exceptional growth in electricity demand may exceed the production capacity of established ,suppliers lowering barriers to entry for new market participants and increasing competitive and operational .risks scale‑Large expenditure‑capital programs may divert strategic focus from innovation essential for competitiveness beyond the current industry .cycle Accelerated development‑technology timelines could adversely affect term‑long quality and .resilience Limited international and regional coordination in balancing supply and demand across grids with high renewable variability may impede energy‑renewable .deployment ,Additionally the rapid expansion of intensive‑electricity data centers may absorb a significant share of new energy‑clean ,additions potentially constraining decarbonization progress and slowing the structural displacement of based‑fossil .generation Risks Competitiveness will decline if there is a slowdown in technological and human resource development to provide saving-energy and highly efficient digital ,solutions or if decarbonized measures for intensive-energy data centers are .delayed Risks Competitiveness will decline if there are delays in the development of -high ,efficiency loss-low .products Opportunities A transition of most distance-long public transportation to the railway sector under the C1.5° ,scenario since rail is a mode of transportation that contributes to decarbonization with low GHG emissions per unit of .transportation Expanded business opportunities by developing and delivering railroad cars that are more energy efficient than existing models by converting to mode-bi railroad cars and by increasing the efficiency of rail services with digital .technology Opportunities Growing demand for renewable energy and grid modernization offers significant opportunities across advanced transmission ,technologies digital grid management ,solutions life cycle service offerings and integrated energy platform models capable of supporting diverse generation .sources Substantial investment is expected to continue flowing into offshore ,wind ,solar digital load management ,systems high and ultra high voltage transmission infrastructure and energy storage .systems These developments create favorable conditions for expanding flexible grid ,solutions digital monitoring capabilities and platform based services essential for managing the increasing complexity of decarbonized power .systems There are major opportunities as grids become smarter and more ,connected ranging from digital grid technologies to the rapid out‑build of HVDC lines and border‑cross .interconnectors As fossil generation ,declines revenues increasingly shift toward energy‑clean ,integration positioning modernized grids at the center of the .transition Opportunities There will also be expanded demand for related-environment financial services such as investments and loans for decarbonization businesses and green bond .issues Demand will grow for energy saving and efficiency-high digital solutions that contribute to .emissions-zero Opportunities Utilization of ,IoT digitalization and connectivity to develop innovative products and solutions that contribute to GHG emission reductions beyond the -energy saving performance of individual .products Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 059
Target businesses related-Mobility businesses related-Energy businesses Digital Systems & Services business Industrial equipment business The business ,environment major risks and opportunities under the C4° scenario Business environment Demand for powered-electric transport will gradually ,expand even without tighter energy .regulations Damage from ,typhoons floods and other natural disasters caused by climate change could rise .sharply Business environment In a warming‑high ,trajectory continued reliance on fossil fuels drives sustained increases in fuel ,prices improving the relative cost competitiveness of fossil‑non energy .sources Moderate growth in renewable and nuclear demand occurs unevenly across ,regions reflecting divergent and often polarized positions among major economic powers some; jurisdictions pursue significant energy‑clean ,investment while others deprioritize climate policy and indirectly benefit from the mitigation efforts of more ambitious .economies related‑Climate natural disasters intensify ,sharply increasing the need for extensive adaptation‑climate measures to protect system‑power .assets At the same ,time scale‑large migration from exposed‑climate and affected‑heat regions places additional pressure on energy ,infrastructure altering demand patterns and stressing local .grids Business environment Demand for ,new efficiency-high technology will expand as multiplex digital systems in response to natural disaster BCPs will result in increased energy .consumption Demand will also grow for social and public systems to reduce damage from natural .disasters In ,addition climate change will increase risks to food ,procurement including agricultural ,crops and there will be a growing need for solutions to address these .risks Business environment ,Typhoons floods and other natural disasters caused by climate change will increase .significantly Risks The frequent occurrence of natural disasters will exacerbate damage to production ,facilities worsen working environments and disrupt supply ,chains leading to delays in deliveries and the procurement of .parts Risks More frequent and severe climate hazards heighten the risk of physical damage to generation‑power assets and transmission and distribution ,networks complicating restoration efforts and prolonging service .interruptions These conditions amplify chain‑supply ,fragility disrupt logistics and delay procurement of critical .components The recurring impact of extreme events also slows the timely development and deployment of ,generation transmission and distribution technologies designed to withstand hostile environmental ,conditions reinforcing operational uncertainty and increasing resilience‑system .costs At the same ,time the policy landscape becomes harder to ,navigate with fragmented climate rules and volatile fossil fuel prices making long term planning .difficult ,Altogether these pressures reduce the reliability of the power ,system disrupt economies and increase public demand for urgent upgrades to keep the grid .functioning Increased likelihood that climate related-change extreme weather ,events such as heat ,waves storms and ,floods might also increase the risks of negative impacts on HE operations and supply ,chain causing costs due to infrastructure ,damages business ,disruptions challenges in meeting supply and demand for necessary parts and adverse effects on the workforce in the .facilities Risks Natural disasters will exacerbate damage to production ,facilities worsen working environments and disrupt supply ,chains leading to delays in deliveries and the procurement of parts and increased risk of damage to data .centers Risks Natural disasters will exacerbate damage to production ,facilities worsen working environments and disrupt supply ,chains leading to delays in deliveries and the procurement of .parts Opportunities Transport systems more resilient to natural disasters can be .developed Competitiveness can be enhanced by providing added value in such forms as saving-energy railcars and adaptability to new .technologies Opportunities Rising temperatures increase overall electricity ,consumption particularly from expanded cooling .needs These conditions drive demand for resilient generation technologies and hardened transmission and distribution infrastructure engineered to operate reliably under extreme .conditions Existing networks can enhance their competitiveness through targeted resilience upgrades that improve system ,durability reduce vulnerability to climate shocks and maintain performance despite escalating environmental .stresses Opportunities Demand will increase for social and public systems that help reduce damage from natural disasters and for digital solutions required as part of .BCP In ,addition demand is growing for digital analytical solutions utilizing data and AI in the agriculture and biotechnology .sectors ,Furthermore demand for resilient-disaster data centers is expanding Opportunities Efforts to accommodate IoT products will lead to higher demand for remote control and remote maintenance during natural .disasters environmental-Non market factors neither( the C1.5° nor C4° (scenario Economic• growth will lead to urbanization and population growth around the world which will drive the railway business globally as an efficient form of public transport for large numbers of passengers regardless of climate .conditions The market size in Japan and Europe will remain ,flat but the Asian market overall will see substantial .growth Decreased• demand for distance-long transportation due to travel restrictions caused by the pandemic and greater use of remote .work ,However we do not expect the decline to be as severe as in air .transportation Competition• will grow as major railway manufacturers in various countries expand their businesses to meet global .demand Economic• ,growth urbanization and population growth will push up demand for ,energy especially ,electricity mainly in developing .countries Political• trends in each country and region related to climate change and energy ,issues and changes in public .awareness Energy• supply and demand will diversify due to various ,factors such as GHG ,emissions the environmental ,burden economic ,performance safety and supply .stability Digital• technology will develop further to enhance the stability and efficiency of the power .supply Further• digitization globally will exponentially increase the volume of data ,circulated accumulated and .analyzed New• services and businesses utilizing digital technology will .expand As a ,result demand for data centers and energy consumption will .increase Slower• market expansion due to heightened geopolitical and trade .risks Growing• automation market driven by the use of digital technologies such as AI to reduce labor ,needs update aging infrastructure and respond to population decline and labor shortages due to aging .societies Increase• in the number of employees working remotely due to the global outbreak of infectious .diseases Growing demand for factory automation to accommodate a smaller number of .workers The• industrial market in emerging economies will grow due to a rise in production .plants Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 060
Target businesses related-Mobility businesses related-Energy businesses Digital Systems & Services business Industrial equipment business Response to future business risks business( (opportunities Response to business risks under C1.5° or C4° scenarios Continue• to strengthen the railway ,business as global demand for railways will increase under either .scenario ,Specifically• develop and market more saving-energy railcars and battery powered railcars for electrified-non .sections Strengthen railway services through digital ,utilization such as dynamic (headway flexible operations in response to passenger demand and) new mobility services such as .MaaS Increase• competitiveness by strengthening sustainable activities while adhering to international ,standards .etc Given• the increasing frequency of natural ,disasters take risk aversion into account when deciding the location and equipment layout of a new .plant Keep an eye on the supply chain in strengthening our ability to respond to business disruption risks in accordance with our .BCPs Evaluate and analyze organizational structures and physical ,locations reflecting the results of this work in response .measures Response to business risks under C1.5° or C4° scenarios Continue• to enhance the response to relevant markets in view of expected expanded demand for fossil-non energy under either .scenario Production• capacity expansion .investments Strengthen• the provision of grid ,solutions digital service ,solutions and energy platforms that can accommodate the increased use of renewable energy and diversification of energy supply and demand .management Given• the increasing frequency of natural ,disasters develop technologies for resilientdisaster renewable energy systems and resistant-disruption power distribution/transmission .systems Take risk aversion into account when deciding the location and equipment layout of a new production .plant Keep an eye on the supply chain in strengthening our ability to respond to business disruption risks in accordance with our .BCPs Response to business risks under C1.5° or C4° scenarios Continue• to develop innovative digital technologies and utilize ,AI nurture necessary human capital and enhance digital service solutions that generate new value in view of the expected growth in demand for digital services and the subsequent market expansion under either .scenario ,Specifically• enhance competitiveness by providing saving-energy and high efficiency digital solutions that contribute to the following :outcomes emissions-zero related-environment; financial services for decarbonization businesses social; and public systems to prevent natural ,disasters reduce damage and enhance resilience and; digital systems for .BCPs Given• the increasing frequency of natural ,disasters strengthen our ability to respond to business disruption risks in accordance with our .BCPs Actively• promote the use of ,AI decarbonization and enhanced disaster resilience in data centers to strengthen competitiveness as sustainable and resilient .facilities Response to business risks under C1.5° or C4° scenarios Under• either ,scenario continue developing ,saving-energy efficiency-high products that use IoT .technology Focus particularly on connected products with communication .features ,Miniaturized ,efficiency-high loss-low products can also help reduce GHG .emissions Given• the increasing frequency of natural ,disasters take risk aversion into account when deciding the location and equipment layout of a new .plant Keep an eye on the supply chain in strengthening our ability to respond to business disruption risks in accordance with our .BCPs environmental-Non market factors neither( the C1.5° nor C4° (scenario Partial impact on the revenue of Mobility ,Segment which accounted for approximately 12% of s’Hitachi revenue at 1,321.5 billion yen in fiscal 2025 Partial impact on the revenue of the Energy ,Segment which accounted for approximately 30% of s’Hitachi revenue at 3,219.9 billion yen in fiscal 2025 Partial impact on the revenue of the Digital Systems & Services ,Segment which accounted for approximately 28% of s’Hitachi revenue at 2,940.0 billion yen in fiscal 2025 Partial impact on the revenue of the Industrial Products & ,Services which accounted for approximately 6% of s’Hitachi revenue at 659.1 billion yen in fiscal 2025 :Note The above scenario analyses are not future projections but attempts to examine our resilience to climate .change How the future unfolds may be quite different from any of these scenarios Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 061
Climate related-change risks in the Hitachi Group Based on a business-by-business ,review no significant climate related-change risks that were difficult to address were identified at .Hitachi When considering whether existing businesses will be viable in ,decarbonization businesses that use electricity as their primary energy source can adapt by switching to electricity derived from fossil-non energy .sources On the other ,hand businesses that currently use fossil fuels are expected to require various measures to ,adapt such as adopting generation-next ,technologies including hydrogen and ,biomass and carbon offset .initiatives Since many of s’Hitachi businesses use electricity for the majority of ,operations there is little significant risk associated with the unavailability of fossil .fuels The following is a summary of s’Hitachi overall risks under the C1.5° scenario and the C4° .scenario For s’Hitachi business ,portfolio it has been determined that these climate related-change risks can be managed through appropriate .countermeasures 1( Transition) risks associated with the shift to a decarbonized (economy mainly risks under the C1.5° (scenario 2( Risks) related to the physical impacts of climate (change C4° (scenario Responding to water risks Category Major risks Time horizon Impact Main initiatives Policy and legal Increased business costs from the introduction of carbon ,taxes fuel and energy consumption ,taxes emissions trading systems and other measures Short to long term Medium • Advance activities to achieve net .zero Avoid• increases in business costs by further enhancing production and transport efficiency and expanding the use of fossil-non based-fuel .energy Encourage the adoption of saving-energy equipment by introducing Hitachi Internal Carbon (Pricing .(HICP Transition• from fossil using-fuel businesses to fossil-non using-fuel .businesses Facilitate• investments that contribute to .decarbonization For ,example Hitachi Energy plans to invest approximately 6.25 billion USD from 2024FY to 2027.FY Technology Loss of sales opportunities due to delays in technology development for products and services aimed at decarbonization Short to long term Medium • Contribute to reducing GHG emissions by developing and marketing innovative products and services that lead to the achievement of term-long environmental ,targets as well as expanding the decarbonization .business Advance• the development of saving-energy and carbon-low products by implementing Environmentally Conscious Design Assessments when designing products and .services Market and reputation Impact on business due to a decline in reputation or assessment of the s’Company approach to climate change issues Medium to long term Minor • Established a zero-net target under the Hitachi Environmental Innovation 2050 term-long environmental targets and obtained zero-net validation from the SBTi to drive decarbonization .efforts Disclosing• information on climate change initiatives and progress through sustainability ,reports the corporate ,website responses to CDP and participation in events such as .COP Category Major risks Time horizon Impact Main initiatives Acute and chronic physical risks related-Climate risks to business ,continuity including increased severity of typhoons and floods acute( ,)risks as well as term-long rising temperatures and heat (waves chronic (risks Short to long term Medium • Consider the possibility of flood damage when deciding on the ,location equipment layout and other conditions for a new plant Compiled• the Water Risk Guidelines for identifying water risks and ,countermeasures and ensured compliance at major manufacturing sites .globally Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 062
related-Climate (opportunities Hitachi (Group Hitachi views addressing environmental ,challenges including climate ,change as a key management priority and sees contributing to decarbonization as a significant business ,opportunity particularly in the C1.5° ,scenario which assumes progress in .decarbonization Under its term-long environmental ,goals Hitachi Environmental Innovation 2050, we have set a target of achieving net zero across the entire value chain by fiscal 2050. Achieving this target requires not only decarbonizing factories and ,offices but also reducing GHG emissions associated with the use of sold products and ,services which account for a large portion of value chain .emissions In ,addition achieving the target of 100 million metric tons of avoided emissions per year will require Hitachi products to make a significant contribution to GHG emissions .reduction Hitachi will continue to advance these initiatives and contribute to resolving issues related to climate .change Category Main opportunities Impact Main initiatives Services and markets for products Expansion of business opportunities through the expanded deployment of innovative products and services that can contribute to the mitigation of and adaptation to climate change Major • Expand business areas that contribute to .decarbonization In• the energy ,field advance power generation using fossil-non fuel energy sources and the installation of supporting power .grids In• fields such as mobility and connective ,industries advance the reduction of GHG emissions during product use by enhancing energy efficiency through greater utilization of digital (technology Green by Digital and) by developing products with class-world .efficiency Facilitate• the adoption of free-carbon solutions and services through creation-co with .customers Resilience Provision of solutions to address related-climate natural disasters Medium • Providing flood simulators and evacuation and emergency operation support systems Providing• disaster prevention ,solutions such as performance-high firefighting command systems The results of these studies of related-climate risks and opportunities indicate that Hitachi has not recognized any significant or address-to-difficult climate related-change risks at this .stage It has been determined that contributions to climate change action can be regarded as business .opportunities Hitachi believes that we have high resilience in the transition to decarbonization over the medium to long ,term as we closely monitor market trends and develop business flexibly and strategically under both the C1.5° and C4° .scenarios Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 063
Risk management Hitachi ,identifies evaluates and manages climate related-change risks for each BU and Group company to determine environmental impacts and other .factors The results are consolidated by the Global Environmental Division of ,Hitachi .,Ltd and any risks or opportunities recognized as particularly important for the Group as a whole are deliberated by the Senior Executive Committee ,and if ,necessary by the Board of .Directors Metrics and targets Hitachi has established -medium to term-long metrics and targets under the Hitachi Environmental Innovation 2050 term-long environmental .targets term-Short metrics and targets are detailed and tracked in the Environmental Action ,Plan which is formulated every three .years Metrics for climate change are based on GHG emissions for Scopes 1, 2 and 3. For Scopes 1 and 2, Hitachi uses the GHG emissions reduction ,rate and for Scope 3, the GHG emissions intensity reduction .rate Total GHG emissions from the use of sold products in Scope 3 in Category 11, which account for significant emissions given the nature of s’Hitachi ,business fluctuate greatly due to ,changes .,etc in sales ,volumes products handled and the business .portfolio As a ,result the outcomes of ,initiatives such as energy conservation and efficiency ,improvements are often difficult to .see ,Therefore intensity reduction of GHG emissions has been established as a metric for providing customers and society with products and services that offer equivalent value while emitting less GHG .emissions In ,conjunction avoided emissions that contribute to decarbonization is also set and managed as a metric toward creating a decarbonized society as a .whole GHG emissions generated at business (sites factories and (offices are continuously reduced by utilizing the Hitachi Internal Carbon (Pricing HICP ,system) which provides incentives for capital investments that contribute to GHG .reductions The carbon price for HICP is set at 14,000 yen per 2.CO-ton In ,addition we incorporate sustainability assessments into our executive compensation system to achieve our term-long environmental targets and address climate .change We reflect certain environmental targets and KPIs based on ,PLEDGES our sustainability ,strategy in executive compensation .evaluations Linking executive compensation to the sustainability strategy Environmental Vision and Hitachi Environmental Innovation 2050 Decarbonization ,Products services and solutions that support green transformation (GX( GHG emission reduction at business (sites factories and (offices and Hitachi Carbon Neutrality 2030 Calculating GHG emissions throughout the value (chain fiscal (2025 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 064
Efforts to achieve a circular economy Environmental issues continue to intensify associated with increased economic and social activities within the conventional linear economy of mass ,production mass consumption and mass .disposal These problems involve resource ,shortages tight supply and demand for ,energy environmental pollution caused by increasing ,waste global warming and the loss of .biodiversity To solve these problems and create sustainable ,societies we must shift away from linear economies and toward circular .economies ,Hitachi together with customers and ,society contributes to the transition to a circular economy through our business .activities Circular economy initiatives We aim to achieve a circular transformation of resources and business operations by fiscal 2050 under our term-long environmental ,target Hitachi Environmental Innovation 2050. Circular transformation involves shifting toward circular business models by minimizing energy and resource use and maximizing value throughout the entire life cycle of products and services through initiatives such as enhancing value and extending product lifespans during product usage via sharing and recurring ,use and recovering resources from life-of-end products through remanufacturing or .recycling ,Furthermore to achieve circular ,transformation Hitachi actively works to reduce landfill waste and implement ,design-eco an environmentally conscious approach to product .design Since resources that are landfilled or discarded during the manufacturing process lose their ,value Hitachi aims to achieve zero landfill waste generated at our manufacturing facilities by fiscal 2030. ,Additionally transitioning to a circular business ,model including landfill waste ,reduction requires design-eco in product development .stages ,Accordingly we aim to apply design-eco to all applicable product groups by fiscal 2030. Circular economy Approaches toward circular transformation With the goal of achieving a circular ,transformation Hitachi strives to continuously utilize resources and assets throughout the product life cycle to reduce and prevent waste .generation To this ,end we implement three :approaches innovation in upstream product ,design innovation in the product manufacturing process and innovation of our business .model 1( Product) design Through environmentally conscious design assessments and life cycle assessments for new products that involve design ,activities we will reduce waste by standardizing ,parts extending service ,life utilizing recycled materials and designing for easy ,recyclability while considering resource circulation across the whole value .chain To this ,end we set a target of 100% application of the relevant assessments to all new products involving design activities and work to achieve this goal by fiscal 2027, based on the Hitachi Eco Design Management Guidelines and Hitachi Eco Design Activity Guidelines that reflect the latest international .trends In fiscal 2025, we achieved a rate of 100%. 2( Manufacturing) process In our manufacturing ,processes we optimize manufacturing volumes for products and components based on supply and ,demand digitize design processes for paperless ,work reduce packaging material ,usage reduce defective products through quality improvements and reduce the use of chemical .substances We implement these initiatives while sharing best practices among .divisions We also set specific targets for the waste landfill rate and the effective utilization rate of plastic ,waste monitoring progress against these .targets Approaches toward circular transformation Processin g Assembly/ house-In manufactur ni g sites Customers Transforming into a Circular Economy by innovating Material Procurement partners Initiatives under enhancement Use Product● design Manufacturing● process Business● model Sharing / Resale Refurbishment / Reuse Return Recyc el through ni house- back-take Recyc el through party-third back-take Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 065
3( Business) model To adapt to a society that is transitioning from goods to ,experiences as well as from ownership to ,use we enable the effective use of resources and assets through ,leasing useper-pay ,systems ,subscriptions products as a ,service reuse and based-sharing .models At the same ,time we collect used products and consider ,resale use as repair ,parts or recycling of these products to further utilize resources and assets .efficiently To this ,end we share our goals with diverse stakeholders in the value chain and drive .creation-co We also advance research and development involving raw ,materials ,products ,tools applications and services necessary for our ,goals leveraging the strengths of s’Hitachi ,IT OT and products to support the realization of a circular economy not only in our value ,chain but also in our customers .activities’ Improving the environmental performance of products and services through design-eco Pursuing a circular economy through business model transformation Management of waste and valuables generated at business sites We collect environmental load data for waste and 1valuables generated at business sites to centrally manage the volumes of waste and valuables generated and exported by .type For hazardous ,waste in ,particular we ensure thorough compliance with laws and ,regulations and engage in proper disposal within the .Group We use the ESG Management Support (Service MSS-ESG to) collect .data Our 2027 Environmental Action Plan sets a fiscal 2025 waste landfill rate target of 3.0% as a more advanced circular economy .indicator The waste landfill rate is an indicator that shows the proportion of final (disposal landfill disposal relative) to the total amount of waste and valuables .generated The waste landfill rate amounted to 1.8% in the fiscal year in ,question meeting our .target Waste and valuables generated during the fiscal 2025 increased by 8 kt year on ,year mainly due to changes in business .activities ,Meanwhile we continued to advance resource circulation through measures including installing recycling facilities at business ,sites loop-closed recycling of waste as raw materials at other Group business sites and repeated use of packing and cushioning materials for .transportation These efforts helped limit the amount of waste sent to landfill and kept the waste landfill rate below the .target These efforts also increased the number of business sites that achieved zero landfill 2waste to 167. 1* Materials generated through business .activities Each country has a legal definition of .waste In ,Japan the Waste Management and Public Cleansing Law defines waste as ,garbage bulky ,waste incineration ,ash ,sludge human ,waste waste ,oil waste ,acid waste ,alkali animal carcasses and other solid or liquid contaminants or unwanted .materials ,Valuables ,meanwhile are the materials left over after business activities other than ,waste and can be sold or transferred free of charge to other parties as items of .value 2* Defined as a final disposal (rate landfill waste/disposal and valuables of) less than 0.5% for the relevant fiscal year in the Hitachi .Group Pursued in assumed conformance with ,regulations ,conditions .etc Trends in waste and valuables 1generation ( Hitachi (Group All manufacturing sites 1* Through fiscal 2021, this volume was the amount of waste and valuables generated by major business .sites Beginning in fiscal 2022, this volume is the total amount of waste and valuables generated in the manufacturing processes of all business sites and the amount generated at offices other than manufacturing processes 2* In fiscal 2022, the amount decreased significantly due to deconsolidation of relatedmaterials and construction related-machinery .companies From fiscal 2022, the above figures include waste and valuables generated by an related-energy company and auto related-parts companies which have been included in the scope of consolidation since fiscal 2020 3* Fiscal 2023 amounts decreased due to the deconsolidation of auto related-parts companies Raw material inputs and waste and valuables generation during business operations (kt( (FY( North America Other regions Japan China ,ASEAN India and rest of Asia Europe 1,500 1,000 500 331 49 87 613 109 69 1,111 22022 2021 2024 356 154 0 2025 162 21 10 62 34 9 19 29 16 43 38 19 15 8 45 25 42 20 39 31 10 44 32023 164 50 39 17 2027 Environmental Action Plan management values Waste landfill *rate 1.8 % 2025FY :3.0%target Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 066
Effective utilization rate of plastic waste We began strengthening our activities in fiscal 2022 toward achieving a 100% effective 1utilization rate of waste plastics throughout the entire Hitachi Group by fiscal 2030. In fiscal 2025, we set an effective utilization rate target of 87.5% and achieved 99.1%. To improve the effective utilization ,rate we implement measures including design changes for equipment and products that do not generate ,waste reduction of waste through yield ,improvements house-in ,reuse sorting and accumulation of waste to enhance value and recycling measures through detailed .sorting Hitachi Global Life Solutions adopted a new design with consideration to product .usability In cordless stick vacuum ,cleaners for ,example the company has worked on conscious-eco designs together with a lightweight design and improved suction .power Certain stick vacuum cleaners use recycled plastic for more than 10% by weight of the plastic materials used in ,components such as the bases of accessory stick vacuum .stands The company also uses unpainted exterior resin parts to improve the recyclability of plastic .materials Another example is the s’company use of removable ion-lithium ,batteries which allow the batteries to be easily separated when products are disposed .of ,Furthermore Kanto Eco Recycle .,Co .,Ltd a subsidiary of Hitachi Global Life Solutions that handles the recycling of used household ,appliances has introduced a sorting device for mixed plastics in the recycling process for washing machines and other .products The company began scale-full operations of this device in early April of fiscal 2024. To facilitate recycling of home appliances in ,Japan Hitachi Global Life Solutions established an efficient recycling system to comply with the 2001 Act on Recycling of Specified Home .Appliances This system recycles four categories of life-of-end home (appliances air ,conditioners ,TVs freezers/refrigerators and washing dryers/machines on) a nationwide scale as part of cooperative efforts among five 2.companies In fiscal 2025, approximately 78 kt of materials were recycled out of :Note Includes all manufacturing sites approximately 87 kt of life-of-end products .processed By product ,type the recycling rate for refrigerators and freezers was 80%, exceeding the legal requirement of 70% by 10 percentage ,points while the rate for washing machines and dryers was 94%, exceeding the legal requirement of 82% by 12 percentage .points 1 Effective utilization encompasses material ,recycling chemical recycling and thermal .recovery Pursued in assumed conformance with ,regulations ,conditions .etc 2 Hitachi Global Life ,Solutions Sharp ,Corporation Sony ,Corporation Fujitsu General Limited and Mitsubishi Electric Corporation 3* Parts and materials recovered from four categories of life-of-end home (appliances air ,conditioners ,TVs freezers/refrigerators and washing dryers/machines and) recycled through house-in ,use ,sale or transfer free of charge to other entities for use Improving the environmental performance of products and services through designeco Hitachi introduced an environmentally conscious design process based on the international standard IEC 62430 to steadily improve the environmental performance of our products and .services Through this ,process we implement design-eco practices by integrating compliance with environmental ,regulations environmental considerations and an understanding of stakeholder requirements into our design and development .activities All products involving design activities fall within the scope of these ,practices and Hitachi applies design-eco across all applicable product .groups We use our Environmentally Conscious Design Assessments to conduct a multifaceted evaluation of 30 environmental impact categories across the entire product life ,cycle from raw material procurement to disposal and ,recycling including climate ,change resource depletion and impacts on .ecosystems For ,example we evaluate opportunities to reduce environmental impacts throughout the life cycle by reducing packaging materials and improving energy efficiency during product .use We also apply Life Cycle (Assessments ,)LCAs in addition to our Environmentally Conscious Design ,Assessments to quantitatively measure and verify environmental .impacts These impacts include the consumption of mineral ,resources fossil fuels and water ,resources as well as climate change and air .pollution We use assessment results to improve the design of generation-next products and provide transparent disclosures to ,stakeholders supporting the continuous enhancement of environmental .performance 1* IEC 62430: The standard developed by the International Electrotechnical Commission IEC( concerning) environmentally conscious design for electrical and electronic products 2027 Environmental Action Plan management values Effective utilization rate of plastic waste 99.1 % 2025FY :target 87.5% 2027 Environmental Action Plan management values Application rate of environmentally conscious design for newly developed products 100 % 2025FY :target 100% Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 067
Efforts to achieve nature positive Nature Risk ,Rising published by the World Economic Forum WEF( in) 2020, reports that the creation of approximately 4.4 trillion USD of economic ,value or more than half of global ,GDP depends on natural capital and ecosystem services it .provides Since that ,publication the significant impact of the deterioration of nature on economic activity and corporate management has continued as a point of .emphasis The Global Risks Report 2025, also published by the ,WEF lists environmental issues among the top risks for the next ,decade highlighting the growing severity of related-nature ,risks including biodiversity ,loss ecosystem ,collapse the depletion of natural resources and critical changes to Earth .systems At the th15 Conference of the Parties to the United Nations Convention on Biological (Diversity 15COP-CBD held) in 2022, “the Montreal-Kunming Global Biodiversity Framework was” ,adopted including “the 30by30 target to” conserve at least 30% of land and water areas by 2030. The Task Force on related-Nature Financial (Disclosures (TNFD published its final recommendations in 2023, and discussions led primarily by the International Sustainability Standards Board ISSB( are) underway to develop disclosure standards for relatednature risks and opportunities based on the TNFD .framework As a ,result there is a growing international trend to incorporate dependencies and impacts on natural capital in business decisions and .disclosures Natural capital is the foundation of a sustainable ,society deeply intertwined with social .infrastructure Social infrastructure extends beyond physical ,systems playing a vital role in advancing symbiosis with nature along with the conservation and restoration of .biodiversity As a responsible partner for social ,infrastructure Hitachi commits to contributing to the realization of a nature positive .future Nature positive Nature positive initiatives Under Hitachi Innovation 2050, our term-long environmental ,target we aim to minimize the impact of our business activities on nature by fiscal 2050, mitigating damage from natural disasters and contributing to nature ,resilience including faster .recoveries To achieve nature ,resilience Hitachi has set a target to improve water resource use efficiency by 10% by fiscal 2030. We also aim to conduct assessments that evaluate the mutual interactions with nature across the entire value chain for major products and .projects Nature resilience approaches Hitachi pursues water conservation and water usage reduction at manufacturing sites as part of efforts to achieve nature .resilience At sites located in stressed-water ,regions the company strives to mitigate water risks through measures that include improving water intake management and equipment .upgrades Hitachi also recognizes the importance of water stewardship as a contribution to the conservation of water .resources Water stewardship is a broad concept that encompasses not only water management within owned ,facilities but also water management in local communities and across the value .chain As part of these ,efforts we invest in research and development and develop products and services that contribute to improving the water cycle and reducing the risk of related-water .disasters Our work extends to advanced wastewater treatment and flood damage prediction .systems We view these D&R ,investments as well as the results of these ,investments as support for solutions to local water issues As part of the framework supporting water risk assessment and ,management we invest in the ESG Management Support Service .)MSS-ESG( In ,addition we engage external experts to conduct risk analyses and develop response measures for risk-high locations in light of regional characteristics and business .operations We view these initiatives as examples of investments that support efforts to address related-water .risks Our endorsement of the 30by30 Alliance for Biodiversity and certifications of Natural Symbiosis Sites signal not only the conservation of ,biodiversity but also our collaborations with local stakeholders aimed at maintaining and restoring a healthy water .cycle Both in Japan and ,overseas we will work to strengthen water stewardship in collaboration with local ,communities pursuing initiatives tailored to the characteristics and challenges in each .region Management of water use at business sites Hitachi regards reducing water consumption at business sites and the preservation of water quality as key .priorities We conduct comprehensive water ,management including wastewater volume and water quality ,monitoring across the entire process from water intake to usage and .discharge ,Specifically we engage in wide-Company initiatives that include visualizing and enhancing the management of water intake using flow meters and other .devices We also take measures to prevent water ,leaks recycle cooling water and purify and reuse .wastewater We continue to monitor and manage our operations to minimize wastewater pollution through water quality ,measurements such as BOD and .COD In the event of any issues or incidents related to wastewater ,discharge we respond in line with a management cycle that identifies the ,cause implements corrective measures and prevents .recurrence These and related efforts are covered within our environmental compliance .framework Resil ei nce Social Infrastructure Nature Business Operations Natural Capital Infrastructure Natural Disaster Minimizing impacts Mitigating and Adapting to impacts Resilience Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 068
The 2027 Environmental Action Plan includes the following relatedwater KPIs to enhance (:monitoring 1 Reduction) rate in water use per unit (and 2 Reduction) rate of water usage at manufacturing sites located in stressed-water 1areas . In fiscal 2025, the first year under 2027 Environmental Action ,Plan we set a target of a 6% improvement across all manufacturing sites for the reduction rate in water use per unit in connection with water used in manufacturing processes and general daily .usage We achieved a reduction rate of 22%, exceeding our target by a significant .margin We reduced the volume of water used by 0.20 million 3,m equivalent to a reduction of 2.1% compared with the base .year Our measures to reduce water usage included strengthening water intake management by installing ,flowmeters installing water pipes above ground to prevent ,leakage recirculating cooling water and reusing purified waste .water On the other ,hand we set a target of a 0.4% year-on-year reduction of water usage at manufacturing and business facilities located in stressed-water .regions Our results here were a 0.6% increase compared to the previous .year The manufacturing facilities are located in ,China ,Italy the United ,States ,Thailand ,India ,Germany ,Egypt ,Spain ,Poland and .Türkiye At 13 ,facilities water use increased due to higher production .volumes Going ,forward we will work in collaboration with facilities located in stressed-water regions to develop water conservation plans and .measures We will also strengthen business resilience by ensuring the consistent implementation of these ,measures sharing best practices across locations and engaging in regular dialogue with the relevant .sites We collect and manage data related to discharge volume based on categories that include discharge (destinations ,rivers ,lakes ,groundwater marine waters and sewer .(systems 1 stressed-Water areas are defined as areas rated High or above for Baseline Water Stress or Baseline Water Depletion in the World Resources (s’Institute WRI Aqueduct) ,tool or rated High or above for Water Availability in the World Wide Fund for (s’Nature (WWF Water Risk .Filter At ,Hitachi areas rated High or above in any of these indicators are included in the KPI .scope Water Inputs and effluent discharges and consumption during business operations 1* Total amount of water used in manufacturing processes and general daily usage at manufacturing sites 2* :Scope All manufacturing sites 3* Activity amount is a value closely related to water use at each business (site for ,example ,output sales and production (weight 2027 Environmental Action Plan management values Reduction rate in water use per 1,unit 2 1 Includes manufacturing processes and daily usage at manufacturing ,sites and daily usage at manufacturing-non sites 2* In fiscal 2022, the amount decreased significantly due to deconsolidation of relatedmaterials and construction related-machinery .companies From fiscal 2022, the above figures include water usage by an related-energy company and auto related-parts companies which have been included in the scope of consolidation since fiscal 2020 3* Fiscal 2023 amounts decreased due to the deconsolidation of auto related-parts companies Trends in water (1usage Hitachi (Group 100% 78% 22% reduction :Target 6% 2019FY ( base (year 2025FY Compared with base year Activity 3amount Usage = Activity 3amount Usage = Water usage Water usage North America Other regions Japan China ,ASEAN India and rest of Asia Europe 0 10 20 30 2021 22022 32024 19.08 0.87 1.88 3.68 0.21 0.32 26.03 14.56 9.83 2025 10.01 32023 10.92 3.57 0.42 8.19 0.90 0.57 0.92 4.19 4.81 0.10 5.17 3.54 0.59 0.36 0.52 0.10 0.52 0.35 0.51 4.69 3.51 0.13 0.64 0.41 0.63 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 069
2027 Environmental Action Plan management values Reduction rate of water usage at manufacturing 1sites located in stressed-water areas 1 Excludes sites where water is used solely for WASH services and not for manufacturing .purposes (WASH ,Water Sanitation and Hygiene is) an integrated concept that aims to ensure access to safe ,water sanitation facilities and hygienic .conditions Breakdown of water usage in stressed-water areas Responding to water risks Since s’Hitachi exposure to water risks varies depending on the region and business ,operations we believe it is important to identify water risks specific to each location and implement risk mitigation .measures To advance these measures in a planned and consistent ,manner we compiled procedures for identifying and addressing water risks into the Water Risk 1Guidelines . Through fiscal 2024, we applied these guidelines to major manufacturing sites classified under Environmental Management Category .A ,However we expanded their scope to include all manufacturing sites beginning in fiscal 2025. We use our ESG Management Support (Service MSS-ESG and) various globally recognized tools for water risk ,assessment in addition to and-region specific-operation water risk identification .checklists We use these data and checklists to identify and evaluate the water risks annually for each business ,unit Group company by country and region and for the entire .Group In recent ,years the TNFD international framework for disclosure has highlighted the importance of incorporating biodiversity perspectives into water risk .assessments ,Consequently we are also conducting risk assessments focused specifically on biodiversity by utilizing related-biodiversity data included in the Water Risk 2Filter and the water risk identification .checklist Based on these assessment ,results we implement specific measures tailored to the nature of the risk at each location where we determine area water risk to be .high For ,example at sites facing ,challenges such as the risk of water leaks or instability in water ,supply we implement measures to prevent leaks by moving water distribution pipes above .ground At sites with manufacturing processes that consume large amounts of ,water we have introduced measures that include the recycling of cooling water to reduce water withdrawal and mitigate related-water .risks By translating the results of our water risk assessments into concrete measures across all manufacturing ,sites we effectively reduce water and biodiversity ,risks while we continue to improve our assessments and response .measures 1* Water Risk :Guidelines Prepared with reference to the guide for Setting Site Water Targets Informed By Catchment Context created by members of the UN Global ,Compact the CEO Water ,Mandate the Pacific ,Institute ,WRI WWF and other global institutions with the aim of helping companies set effective site water targets 2* Water Risk :Filter A water risk assessment tool developed by the World Wide Fund for (Nature (WWF Identification of Water Risks Using the ESG Management Support (Service (MSS-ESG 1* A water risk assessment tool developed by the World Resources (Institute WRI 2) A water risk assessment tool developed by the World Wide Fund for (Nature (WWF 3 Percentage of total annual water withdrawal relative to the available and renewable supply 4 Percentage of total annual consumption relative to the available and renewable supply 5 A metric based on a model-multi approach that integrates the best available global water scarcity risk (metrics .,g.e water ,depletion water (stress Compared with base year Water usage 100% :Target 0.6% 2024FY ( base (year 2025FY Water usage 100.4% 0.4% increase Other regions Europe North America Rest of Asia China Japan Regional water risks Operational water risks Risk identification method Enter address information into the global tool Aqueduct 1* to identify risks Enter address information into the global tool Water Risk Filter 2 to identify risks Risks identified through MSS-ESG using information such as a business s’site volume of water intake and effluents discharged and related-water initiatives Number of evaluation items related to water ,resources water ,quality water ,damage ,regulations reputational ,risk .etc Physical (risks eight quantitative ,(items Physical (risks two qualitative ,(items regulatory and reputational (risks three (items Physical (risks five risk ,categories 23 items in ,)total regulatory (risks four risk ,categories eight items in ,)total reputational (risks three risk ,categories 11 items in (total Approximately 70 items Risk assessment level-Five :scale ,low ,medium-low ,high-medium ,high high-extremely level-Five :scale very ,low ,low ,medium ,high and very high level-Five :scale very ,low ,low ,medium ,high and very high Risk results excluding( sites where water use is limited solely to WASH (services Baseline water 3stress at high or :higher 23 business sites Baseline water resource 4depletion at high or :higher 7 business sites Water at5availability high or :higher 4 business sites Including the 24 business sites listed on the ,left operational water risks from Very low to Low Any metric at high or :higher 24 business sites Comprehensive risk assessment results None of our business sites face an overall high water risk Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 070
In fiscal 2025, we conducted a regional water risk assessment covering all manufacturing and business .sites Based on the understanding ,that among water ,risks being located in a stressedwater region is the most significant risk ,factor we conducted an assessment and identified a total of 24 business 1sites operating in ,China ,Italy the United ,States ,Thailand ,India ,Germany ,Egypt ,Spain ,Poland and Türkiye as having high water risk from the perspective of water .stress As a result of evaluating the operational water ,risk all business ,sites including the previously identified risk-high business ,sites were found to have Very low to Low operational risks related to water .risks For this ,reason Hitachi believes that none of our business sites faces overall high water .risk Water usage at the 24 business sites with high regional water risks was 1.32 million 3,m accounting for about 14% of the 9.26 million 3m of water used in s’Hitachi main manufacturing .processes 1 Excludes facilities that use only WASH (services water not used for manufacturing (purposes Understanding water risks in the supply chain Hitachi believes it is important to understand the water risks faced by procurement partners to ensure stable procurement of parts and .products In fiscal 2025, we used the Aqueduct and the Water Risk Filter to identify regional water risks among companies assessed by (EcoVadis about 2,500 companies selected based on transaction history and country of .operation About) 1,928 of these partners responded to our survey regarding environmental ,initiatives and we shared the results with relevant internal .departments Moving ,forward we will strive to understand the water risks of our procurement partners further by expanding the scope of the .survey Assessment of natural capital and biodiversity at manufacturing sites Overview of initiatives related to natural capital and biodiversity Hitachi conducts reviews based on the LEAP ,approach referencing the recommendations of the Task Force on related-Nature Financial (Disclosures .)TNFD Our goal here is to assess the dependencies and impacts on natural capital and biodiversity at the manufacturing sites we operate ,directly with the aim of reducing related-nature risks and enhancing business .sustainability ,Below we provide an outline of our approach and overview for manufacturing ,sites as well as the direction of our future .initiatives Identify• priority geographical (locations (Locate We conducted a screening of our manufacturing sites from the perspective of .biodiversity We categorized our business activities by sector and identified the locations for ,evaluation focusing on business areas we consider to have a relatively strong relationship with natural .capital Evaluate• dependencies and impacts on natural (capital (Evaluate In terms of dependencies and impacts on natural ,capital we utilized (ENCORE a natural capital evaluation tool to) identify dependencies and impacts on ecosystem services related to our ,operations as well as to analyze trends in the impact of our business activities on the natural .environment As a ,result we recognize that ecosystem (services .,g.e the water cycle and prevention-disaster functions are) linked to the stability of our .operations ,Accordingly certain business (activities .,g.e use and discharge of ,chemicals external factors such as noise and ,light .etc may) impact the natural .environment Assess• related-nature (risks (Assess We used the WWF Biodiversity Risk (Filter BRF and) the WWF Water Risk (Filter WRF to) assess the importance of ,biodiversity ecosystem ,health and related-water .risks Our assessment indicated ,that depending on business characteristics and ,location we own sites where consideration for ecosystems and water resources is particularly .important ,Accordingly we recognize the need to take measures appropriate to the nature of the risks .involved Future• (initiatives (Prepare Based on the assessment ,results Hitachi plans to implement initiatives in ,phases prioritizing locations where we believe it is most important to address related-nature .risks Moving ,forward we will utilize the assessment results from ,ENCORE BRF and WRF to conduct reviews that account for the natural environment and regional characteristics surrounding our business .sites As ,necessary we will continue to assess business site conditions and engage in .dialogue Through these ,initiatives we aim to balance reductions in our environmental impact with the sustainability of our ,businesses while also enhancing disclosures of natural related-capital information in accordance with the TNFD .recommendations Screening by (sector high or higher of) related-nature risks using external tools :Note Gray shading indicates related-nature risks assessed as high for the relevant sector using external .tools related-Nature risk assessment framework Relative distribution of related-nature risks by (sector high or (higher Energy Mobility CI DSS Natural capital Dependency Flood mitigation services ,Education science and research services Impact Emissions of harmful soil and water pollutants (Disturbances .,g.e ,noise (light Emissions of greenhouse-non gas air pollutants Biodiversity Importance Soundness Watersheds and water risks Physical risks Regulatory risks Reputational risks Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 071
Efforts to conserve ecosystems Building on longstanding ecosystem conservation ,activities Hitachi advances initiatives aimed at contributing to the global targets under the Montreal-Kunming Global Biodiversity (Framework .(GBF ,Specifically the Hitachi Group is working to obtain certifications as Nationally Certified Sustainably Managed Natural Sites and advance forest conservation activities as a means to contribute to 30,by30 the global target under the GBF to conserve at least 30% of land and ocean areas by 2030. Individual BUs and Group companies pursue their own ,targets conducting activities focused on measures against invasive alien species and the prevention and reduction of plastic pollution in line with the global target to reduce major induced-human threats to biodiversity Through assessments based on the LEAP approach of the Taskforce on related-Nature Financial (Disclosures ,)TNFD Hitachi has reaffirmed that ecosystem conservation is a material issue for each business site and facility to address according to their respective business characteristics and local .conditions Natural capital and ecosystem services support Hitachi business ,activities with our social infrastructure businesses at the ,core and the degradation of natural capital and ecosystem services could lead to -medium to term-long business .risks Based on this ,understanding the Hitachi Group pursues a broad range of initiatives to achieve nature positive outcomes and enhance business .resilience We work in collaboration with local communities and relevant stakeholders on these and other initiatives that extend well beyond biodiversity conservation to include maintaining healthy water cycles at the watershed level and preserving ecosystem .services Support for Business for s’Nature Call to Action In 2020, the global Business for Nature coalition issued a Call to 1Action , encouraging policy makers around the world to adopt policies “to reverse nature loss in this .decade Hitachi” .Ltd supports and has signed the Call to .Action 1 The Call to Action states that healthy ,societies resilient economies and thriving businesses rely on .nature The statement urges governments to adopt policies to reverse the loss of ,nature and calls for the ,protection restoration and sustainable use of natural resources Support for 30by30 Alliance for Biodiversity led by the Ministry of the ,Environment Japan 30by30 is an international framework that aims to conserve or protect at least 30% of the land and sea areas in Japan by 2030 to achieve nature positive goals of curbing biodiversity loss and encouraging restoration by the same .year Nationally Certified Sustainably Managed Natural Sites by the Ministry of the Environment Nationally Certified Sustainably Managed Natural Sites are a certification system launched by the Ministry of the Environment in fiscal 2023 as part of efforts to achieve positive-nature .goals Areas where sector-private initiatives conserve ,biodiversity including corporate ,forests satoyama-satochi ,landscapes and urban green ,spaces are eligible for .certification These The 30 by 30 Alliance for Biodiversity was established to promote achievement of the 30 by 30 target agreed to at the 7G Summit 2021 and consists of ,governments companies and .NPOs The goals of the alliance are to expand national ,parks register 1satoyama-satochi“ landscapes” and corporate (forests areas of biodiversity preservation planned by various organizations in) international ,databases pursue conservation in such areas and share information concerning these .activities ,Hitachi .Ltd supports this mission and is actively engaged in related .initiatives 1 An area consisting of ,farmlands irrigation ,ponds secondary ,forest plantation forest and grasslands surrounding human settlements that is located between more ,natural deep mountainous areas and urban areas of intensive human activities recognized ,areas excluding overlaps with protected ,regions are registered as Other Effective based-area Conservation Measures OECM( in) the international ,database and contribute to achieving the 30by30 .target In fiscal 2023, Hitachi had three sites recognized under this certification .program Company name Site name Location Site overview ,Hitachi .Ltd Kokubunji :Site Mori-no-Kyoso Kokubunji ,City Tokyo Primary vegetation includes ,dogwood sawara cypress and konara .oak The site features a variety of natural ,environments such as ,springs ,ponds natural ,forests bamboo groves and ,grasslands creating a diverse ecosystem that supports a wide range of .species Hitachi Group Mito Business Sites Hitachinaka ,City Ibaraki Prefecture The naturally occurring tall red pine trees have been preserved in a way that closely resembles the original forest at the time the works were .established ,Additionally in the greenbelt known as the Sagiyama ,area large ,forests primarily consisting of Japanese bay and hackberry vegetation—trees believed to represent the s’area potential natural are—vegetation being systematically maintained and .managed Hitachi Tech-High Hitachi Tech-High Woodlands of Hitachi Tech-High Science Oyama ,Town Sunto ,District Shizuoka Prefecture Efforts are being made to manage and conserve the green spaces within the site to create a forest rich in .biodiversity Initiatives include 1. Maintaining and restoring green ,spaces 2. Converting artificial forests into natural ,forests 3. Restoring the Japanese pampas grassland and 4. Eradicating invasive plant .species Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 072
Managing chemical substances Hitachi believes that properly managing the use of chemical ,substances including volatile organic (compounds ,)VOCs is important not only for reducing pollutant emissions into the air and ,water but also for minimizing impacts on natural .capital Based on this ,belief Hitachi formulated the Environment and Based-CSR MONOZUKURI Standards to manage chemical substances at all stages of our from—operations ,design development and ,procurement to ,production quality assurance and .shipping We divide chemical substances in our products into two :categories prohibited substances and controlled .substances These categories are managed separately to ensure compliance with legal and regulatory requirements in export .destinations With regard to chemical substances used in our business ,operations we manage them in three :categories ,prohibited reduced and .controlled We also provide education on ,laws regulations and risk assessment to chemical substance handlers and managers to further reduce .risks Classification examples Prohibited (substances Level (1 Substances for which use in (products including packaging is) generally prohibited in Japan and ,overseas but which may still be present in procured .items Controlled (substances Level (2 Substances for which tracking and management are ,required as well as substances that should be considered for recycling or appropriate .disposal Managing chemical substances in our products Hitachi defines the chemical substances in our products that require management as Hitachi Group voluntarily controlled chemical .substances As a ,rule we use the stringent EU standards as our baseline for identifying and managing these ,substances regardless of export ,destination ,industry or .application We review and update the list of managed substances and management levels in accordance with revisions to the s’EU 1REACH and other .regulations In ,principle we designate substances as Hitachi Group voluntarily controlled chemical substances at least six months before they are officially .regulated 1 ,Registration ,Evaluation Authorisation and Restriction of .Chemicals An EU regulation concerning the ,registration ,evaluation authorisation and restriction of .chemicals Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 073
Trends in reducing atmospheric emissions of chemical substances Hitachi( (Group :Note Atmospheric emissions of VOCs and other chemical substances are calculated from the content rate included in the ,materials .etc 1* In fiscal 2022, amount decreased due to deconsolidation of the related-materials and construction related-machinery .companies From fiscal 2022, the above figures include atmospheric emissions of chemical substances from auto related-parts companies which became a consolidated subsidiary in fiscal 2020 2* Fiscal 2023 amounts decreased due to the deconsolidation of auto related-parts companies Managing chemical substances in our business operations Hitachi has endeavored to reduce emissions of chemical substances from factories and other facilities by designating substances for reduction and expanding the scope of substances under .management We translate reduction case studies into English and ,Chinese and share them within the Hitachi Group to improve global adoption and management .standards At each business ,site we regularly measure and manage atmospheric emissions (2 .,g.e sulfur (oxides ,)SOx nitrogen (oxides NOx and) volatile organic (compounds VOCs in)) accordance with the local laws and regulations of the respective .sites We continue to monitor these selected substances at manufacturing and business sites in Japan and overseas using .MSS-ESG At the same ,time we strictly enforce compliance with laws and ,regulations while engaging in management in accordance with our own .standards In fiscal 2024, the final year of the 2024 Environmental Action ,Plan we set a target of an 8% improvement in atmospheric chemical substance emissions per unit compared to the base year of fiscal 2010, and achieved a 29% ,improvement surpassing the target by a significant .margin We switched from paints containing VOCs to soluble-water and powder ,paints improving processes in painting and washing operations to achieve significant emissions .reductions Based on these ,results we did not set standalone numerical targets for reducing chemical emissions in the 2027 Environmental Action .Plan ,Rather the plan describes a transition to a management (phase KPI selection and ,)focus reflecting the fact that risks have been sufficiently mitigated through the substantial reductions achieved to .date At the same ,time we will continue to conduct regular measurements and monitoring of atmospheric ,emissions including ,SOx NOx and .VOCs Our practical goal here is to ensure compliance with laws and ,regulations as well as to manage these substances in line with our own .standards In ,addition we conduct life cycle (assessments LCAs during) the product design and development stage to evaluate environmental impacts across the entire product life ,cycle pursuing measures that include adopting VOC-low paints and alternative .substances In this ,way we have built a system designed to reduce chemical emissions throughout the entire product life .cycle Hitachi will continue to reduce environmental risks posed by chemical substances through ongoing monitoring and .management 1 A total of 50 substances selected based on hazard and atmospheric .emissions Approximately 100% of substances in fiscal 2025 were classified as VOCs 2* Calculated using specific-site (data measured ,values exhaust ,volume content ,rate (.etc Inputs and discharges of chemical substances during business operations (kt( 3.0 2.0 1.0 1.85 0.06 0.34 0.15 0.72 0.23 2.50 1.09 0.62 0 0.47 0.40 0.07 0.03 0.02 0.01 0.06 0.05 0.51 0.10 0.37 0.09 0.28 0.09 0.03 North America Other regions Japan China ,ASEAN India and rest of Asia Europe Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 074
In this section 077 Global human capital management 087 Fulfilling and rewarding workplace Leadership and Empowerment Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 075
Our Human Capital strategy focuses on the development of ,talent leadership and organizational capabilities To strengthen global competitiveness by securing class-world ,talent our Human Capital strategy focuses on three core :areas Talent ,Management Total Reward and One HR .Platform Through Talent ,Management we strengthen our global approach to ,attract develop and deploy talent across the Group while reinforcing leadership development for a ready-future .workforce Through Total ,Reward we enhance compensation ,transparency equity and market competitiveness based on a strong performance-for-pay .philosophy One HR Platform increases visibility into our workforce and supports more global drivendata human capital management and the development of new digital .capabilities People“ are the foundation of s’Hitachi sustainable growth and creation of social .value As ,AI technologies and business needs continue to ,evolve developing the ,skills leadership and capabilities needed for the future is becoming increasingly .important Through One ,Hitachi we are bringing together diverse talent and expertise across the Group while strengthening the capabilities required to execute our business strategy and support term-long sustainable business .growth By investing in our ,people prioritizing ,health safety and ,wellbeing and strengthening our ,organization we are building the capabilities that will drive innovation and create lasting value for ,customers society and our “.stakeholders Susumu Takimoto Vice President and Executive ,Officer Deputy ,CHRO Deputy General Manager of Human Capital ,Group General Manager of Global Safety and Health Management Division PLEDGES Leadership Video — Leadership and Empowerment WATCH Leadership and Empowerment FY highlights2025 550 people Global leaders who realize our growth strategy 69.2 points Employee growth mindset score 73.3 points Employee engagement score Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 076
Global human capital strategy At ,Hitachi people are the engine of value creation and .growth Based on this ,belief we are making proactive investments in human capital and aspire to become an employer of choice globally under our management ,plan Inspire 2027. Operating in an environment shaped by rapid technological ,advancement increasing global competition for talent and evolving skill ,requirements Hitachi has designed Talent ,Management Total Reward and the One HR Platform as three strategic .priorities Through various initiatives in these key ,areas we systematically address emerging risks and organizational challenges before they .materialize These efforts support to leverage the full capabilities of the Group to deliver long term value for society and all .stakeholders Global human capital management Talent Management At ,Hitachi we globally integrate talent ,acquisition development and deployment to support each s’employee proactive career growth and capability .development We focus on developing leaders who can drive our business strategy and strengthening succession planning to ensure a sustainable pipeline of future leadership .talent Total Reward We are transforming our total reward framework to drive ,transparency equity and market ,competitiveness with a focus on job based pay structures and a strong pay for performance .philosophy Through this ,transformation we aim to establish an Connection between three focus six/areas HR/initiatives program attractive and Hitachi specific offering that enhances ,acquisition retention and motivation of diverse talent .globally One HR Platform We support both global consistency and locally tailored execution through a platform that integrates people data across the Group and enables the digitalization of HR processes and employee .experiences Through this integrated ,framework we are strengthening the execution of our strategy while fostering the growth and engagement of each ,employee thereby enabling sustainable business growth and term-long value creation for .society 3 Focus Areas 6 Initiatives HR Programs Talent Management Enable talent ,acquisition development and mobility to accelerate synergy Talent acquisition Workforce deployment Transformation to based-job HR management in Japan Cultivate an employee growth mindset Career training and consultation services to support directed-self career development Talent development initiatives to establish a learning organization Regional initiatives to develop employee skills Global Performance (Management (GPM Leadership development for sustainable growth Selecting and developing global (leaders (GLD Total Reward Fostering a performancehigh culture Global compensation philosophy ensuring fair evaluation and compensation Compensation levels and systems in Japan employment-Re after retirement age (Japan( Incentivize employees to increase corporate value Restricted stock units (plan (RSU Employee stock purchasing plan (ESPP( Initiatives to support employee wealth (building (Japan One HR Platform Enhance Global HR platform to strengthen One Hitachi collaboration Hitachi Global Grade (HGG( Integrated human capital management platform Integration of acquired companies Strengthen AI expertise and adopt Acquiring and developing AI professionals AI literacy program The use of AI in HR operation Advancing people analytics Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 077
Global human capital management structure To ensure the reliable and effective implementation of our human capital ,strategy Hitachi has established a globally integrated Human Capital Management .structure Under the leadership of the Chief Human Resources (Officer ,)CHRO the group HR ,function business HR teams and regional HR teams work together as one to effectively drive HR initiatives across the .Group By integrating the ,following we are achieving a unified operating :model ( 1 Establish) strategy globally ( 2 design-Co) key global programs ( 3 Implement) ,locally based on business and regional contexts Key matters related to the formulation and implementation of HR programs are discussed and approved by the Senior Executive Committee ,and as ,necessary reported to the Board of .Directors By leveraging functional-cross working groups and incorporating diverse perspectives from across the ,Group we enhance the quality of our .programs Global human capital management structure 1* Center of Excellence Global human capital targets Hitachi has established Group wide human capital targets and KPIs to strengthen execution and monitor systematically our .progress In fiscal 2025, these programs advanced ,steadily with measurable progress against key .indicators 1* The willingness of employees to understand the s’company strategy and ,initiatives find purpose and fulfillment in their work and proactively take ownership of achieving .results 2* The figures are cumulative count of achievements meeting the prescribed ,criteria including completion of internal development programs and acquisition of certified-vendor related-AI .qualifications Figures are shown in thousands 3* Linked to executive compensation 4* The percentage of positive responses to employee engagement survey ,questions measured across four :dimensions pride in working for the ,company perception of the workplace as a great place to ,work sense of fulfillment and accomplishment in work and intention to remain with the company in the near .term 5* Ambitious target of 80 points is ,set which exceeds global (competitors base target is 75 (points Global human capital targets Corporate division and Business HR Head of Japan HR CHRO ceO Strategy & Transformation Deputy CHRO Global 1CoE Global Shared Services Head of regional HR DSS CHRO Connective Industries CHRO Energy CHRO Mobility CHRO Nuclear Energy BU CHRO D&R CHRO Head of corporate HR CHRO Board of Directors Senior Executive Committee Group One HR Global human capital steering committee PLEDGES Strategic Pillars Included Theme KPIs 2027FY targets 2025FY results Leadership Human capital acquisition and ,development individual leadership Number of global leaders who realize growth strategy 1,000 people 550 people Number of AI professional 2talents 50,000 people 39,000 people Employee growth mindset 3score 70 points 69.2 points Empowerment Employee 1engagement , organizational culture Employee engagement 43score 80 5*points points73.3 Number of people who receive allotment of Restricted Stock Unit grant 1,500 people 1,800 people Number of people eligible for Employee Stock Purchase Plan globally 150,000 people 130,000 people Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 078
Enhancing employee engagement As part of our Human Capital ,management Hitachi monitors Employee Engagement through the global employee survey Hitachi( Insights and) has established the employee engagement score as a KPI to monitor the status and identify areas of .improvement ,Specifically Hitachi focuses on key engagement ,drivers including talent ,deployment corporate culture and the work ,environment and implements various initiatives to enhance employee .engagement Hitachi also strengthens way-two communication with top management and employees through town hall ,meetings roundtable discussions and internal social .platforms As a ,result the employee engagement score for fiscal 2025 reached 73.3 ,points representing an increase of 1.8 points compared with fiscal 2024. As part of Inspire 2027, Hitachi aims to achieve an ambitious target of 80 .points From fiscal 2026, Hitachi will strengthen employee experience through redesigning our survey to leverage s’employee opinions and feedback for further ,improvement using enabled-AI support for result analysis and action .planning In ,addition the survey results encourage dialogue between managers and team ,members helping employees strengthen their sense of ,ownership support professional growth and improve overall organizational .performance Executive communication activity Ask“ Me Anything Sessions” Hitachi regularly “hosts Ask Me Anything ,sessions” where the CHRO answers employees questions’ .directly These sessions attract a large global audience and promote way-two ,dialogue helping employees better understand the s’company strategic ,priorities business direction and human capital ,strategy while fostering an inclusive and participative workplace .culture Townhall Meetings Town hall meetings provide a platform for direct dialogue between executives and ,employees helping to share business strategy and key ,priorities strengthen employee ,engagement reinforce our culture and foster a stronger sense of One .Hitachi Talent Management Enable talent ,acquisition development and mobility to accelerate synergy To respond with agility and continuity to a rapidly changing business ,environment Hitachi focuses on strengthening the talent and skills required for strategy execution through a ,based-job integrated talent ,framework while enhancing our ability to place leaders in the right roles at the right .time This approach also enables effective talent flow across the Group by connecting ,acquisition ,development mobility and fostering continuous learning and a growth .mindset Talent acquisition In response to intensifying competition for ,talent the rapid emergence of new skills and shifts in candidate expectations and ,demographics Hitachi has closely aligned Talent Acquisition and Talent Management teams within the global Center of (Excellence CoE to) drive an integrated talent .strategy Talent Acquisition teams embedded within the business units BUs( are) positioned as specialists in specific locations and .sectors This approach supports agile hiring and targeted ,initiatives including programs for career-early talent while also promoting the placement of talent into highly specialized .roles In ,Japan we are advancing a personalized talent acquisition ,strategy focused on new graduate ,recruitment with a strong emphasis on a based-job .model This approach aligns individual career aspirations with specific ,roles ensuring candidates are matched with opportunities tailored to their unique needs and .strengths A cornerstone of this approach is our based-job internship ,program which enables new graduates to immerse themselves in real job functions and business .operations Through these on-hands ,experiences candidates can explore specialties and preferences ,firsthand supporting a more thoughtful and driven-self matching .process Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 079
Strategic workforce planning that enables business growth / Hitachi Rail Hitachi Rail aligns term-long project ,plan technology roadmaps and regional growth strategies to identify future workforce needs on a skills basis and drive strategic talent .acquisition This approach enables the recruitment of talent with transferable ,skills as well as individuals from related ,industries while strengthening term-long .employability Workforce deployment At ,Hitachi we ensure effective talent allocation through a global and structured approach that aligns ,roles capabilities and business ,priorities enabling effective deployment across the .organization Talent reviews conducted at ,global business and regional levels provide visibility on employee ,capabilities performance and ,potential supporting informed allocation and succession .planning Hitachi also promotes internal mobility across businesses and ,regions providing employees with access to diverse career opportunities through internal job posting processes and ,platforms while enabling the organization to respond to evolving business .needs These initiatives are complemented by efforts to strengthen global mobility policies and frameworks and expand the adoption of based-job ,management particularly in .Japan Through the optimal deployment of ,talent these efforts reinforce employee motivation and a shared sense of ,purpose enabling both individuals and the organization to grow ,sustainably while enhancing workforce agility and supporting the continuous development of leadership talent to drive the effective execution of business .strategy Transformation to based-job HR management in Japan Hitachi has been promoting based-job HR management through both the development of structures and ,frameworks as well as initiatives aimed at driving changes in mindset and ,behavior resulting in the establishment of a solid foundation for based-job talent .management Concrete outcomes of promoting based-job management can be seen in several .areas For ,example under the internal-group job posting ,system both the number of open positions and applicants have doubled over the past five .years By clearly defining job responsibilities and ,requirements this system has expanded opportunities for employees to proactively apply for roles based on their skills and career .aspirations As a ,result there has been a steady increase in cases where the most suitable talent for each role is appointed based on individual motivation and ,capabilities regardless of attributes such as ,nationality ,gender or .age In graduate ,recruitment we have introduced a matching-job approach under which job categories or positions are confirmed at the time of the .offer In a survey of job offer recipients conducted in fiscal 2025, more than 90% expressed positive ,feedback noting a strong sense of alignment between their skills and career aspirations and the assigned ,job as well as a clearer understanding of their joining-post ,roles which contributes to higher .motivation We will continue operating the based-job management —cycle covering ,recruitment ,compensation capability development and performance ,improvement and reassignment based on skills and .motivation In this ,way the system will remain grounded in the jobs required to execute our business strategy and we will achieve timely talent acquisition and maximized .performance We expect these efforts to further strengthen our competitiveness and realize sustainable .growth Target state of s’Hitachi based-job HR management Inspire 2027 To realize sustainable growth as One Hitachi Timely Placement and Acquisition of the Suitable Talent for Each Job Job based on business strategy Reassignment based on skills and motivation Maximizing Performance Talent &development performance .mgmt Pay for /job performance Career /ownership job based hiring Open positions .incl( internal and external (postings Strengthening competitiveness through job based .mgmt cycle Past Achievements and (Initiatives (Foundation Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 080
Cultivate an employee growth mindset We are committed to fostering agility to adapt effectively to evolving business ,needs creating an innovative and drivenpurpose culture that encourages ,ownership initiative and continuous .learning This goal is supported by creating a psychologically safe environment through the adoption of Hitachi Group Core 1Competencies along with scaled reskilling and upskilling initiatives aligned with business .needs Senior Leadership and people managers play a central role in this ,effort supported by development programs that emphasize ,coaching constructive feedback and learning from job-the-on .challenges At the same ,time global talent mobility is being promoted to broaden experience and ,perspective reinforcing a culture where employees are encouraged to take ,initiative speak up and Career training and consultation services to support directed-self career development At Hitachi .,Ltd we are focusing on fostering a growth mindset that encourages employees to think and act for their own .careers To support this ,system we introduced career training as a foundational program that directly influences employee directedself career .development The program uses the Must-Can-Will framework to promote specific initiatives for individuals to make directed-self efforts to develop their career and abilities by giving extra support in formulating action plans toward their intended .career To ,date approximately 19,500 employees have participated in this program as( of the end of March .)2026 Going ,forward we will continue to implement the program for all generations of .employees At our Career Consultation ,Room we provide a career consultation service that supports employees in their career development and helps to assign the right person in the right place for open positions through matching ,advice which enables specific consultations on the internal-group job posting ,system and career ,consulting which supports the s’employee overall career .development Going ,forward we will continue to support individual understandingself and career planning while respecting the individuality and aspirations of each ,employee thereby linking individual motivation and abilities to improved ,performance engagement and overall .being-well Talent development initiatives to establish a learning organization In response to the rapid advancement of digital technologies and the growing complexity of ,society Hitachi is fostering a learning organization that drives business growth and enhances organizational capabilities .globally To this ,end we are building an environment that enables all employees to continuously and timely acquire the knowledge and skills they .need Operating across different ,markets Hitachi designs common frameworks to build and deploy ,capabilities which are implemented locally to reflect regional business and market ,conditions combining global consistency with local .execution These initiatives are supported by wide-Group platforms and processes such as Hitachi 1Academy . Opportunities include global learning ,programs digital and related-data capabilities continuously build capability in a changing .environment We will continue to monitor the progress of these initiatives through Hitachi ,Insights our global employee engagement ,survey by using a Growth Mindset Score as a KPI to measure employees attitudes’ toward ,learning ,adaptability organizational culture and managerial .support In fiscal 2025, the Growth Mindset score reached 69.2, showing steady progress toward our fiscal 2027 target of 70. Looking ,ahead Hitachi will continue to enhance mechanisms that create the right environment and structure so that employees who aspire to do more are enabled to achieve great .things 1* Formulated based on s’Hitachi founding (spirit Hitachi Values and) business ,strategies .etc They specifically define how to embody the Hitachi founding spirit as behaviors expected of all Hitachi Group employees Hitachi Group Core Competencies People champion Innovation Customer & society focus People champion Related s’Hitachi founding :spirit Harmony Customer & society focus Related s’Hitachi founding :spirit Sincerity Innovation Related s’Hitachi founding :spirit Pioneering spirit Cultivate an inclusive work environment based on safety and ,trust which values diverse perspectives and encourages speaking up and growth so that we can perform at our .best Focus on societal ,challenges always act honestly and be accountable for contributing to society through collaboration with internal and external .stakeholders Drive innovation with a passion for ,learning challenge the status quo and respond with speed to create new .value Sustainable growth Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 081
development and structured talent ,processes such as talent ,reviews succession planning and leadership development ,initiatives to ensure consistent implementation of talent initiatives across the .organization As part of this ,effort we expanded access to LinkedIn 2Learning to all indirect employees across the Hitachi Group from fiscal 2025, establishing the program as a wide-Group learning .platform In ,addition to further encourage learning through LinkedIn Learning and foster a culture of directed-self ,learning we plan to integrate LinkedIn Learning into a wide range of training programs beginning in fiscal 2026. ,Furthermore we implemented globally ,standardized based-role training programs for ,managers aligned with a common .framework In ,Japan we also utilize the Learning Experience (Platform (LXP by integrating multiple platforms and enabling visibility and sharing of ,skills learning progress and .knowledge By recommending optimal learning opportunities tailored to each ,employee the LXP serves as a foundational learning infrastructure and contributes to the advancement of based-job .management 1 A corporate university responsible for human capital development across the Hitachi .Group The academy was established in 2019 through the integration of three training institutions within the Hitachi ,Group and provides education and training programs globally in areas such as (DX digital ,)transformation IT and OT skills and global leadership .development 2* An online video learning platform provided by ,LinkedIn one of the s’world largest professional .networks Regional initiatives to develop employee skills Regional Headquarters — Hitachi ,America Hitachi ,Europe Hitachi ,Asia Hitachi India and Hitachi China — play a key role in coordinating implementation across ,regions ensuring alignment with global frameworks while adapting initiatives to local .priorities Through this ,approach Hitachi strengthens our workforce capabilities and enables ,consistent effective execution across diverse .markets Global Performance (Management (GPM Global Performance (Management GPM forms) the foundation for business management and performance enhancement with the aim of fostering the sustainable growth of organizations and .individuals Hitachi has established the Hitachi Group Core Competencies behavioral( goals as) the behaviors expected of all employees and applies them across the Group as a common standard for performance evaluation and development through our GPM .system Supervisors provide coaching and feedback to employees to help them achieve their .targets By clarifying the skills and behaviors that individuals need to ,demonstrate while explaining how their actions contribute to the growth of the ,business we cultivate employee fulfillment at work while encouraging employees to take ownership of their work and .development-self In fiscal 2025, with the aim of realizing more sophisticated talent ,management we revised the evaluation terms and definitions to enable a looking-forward assessment of both results and .behavior In ,addition we have established guidelines to encourage honest ,feedback thereby accelerating the growth of both individuals and the .organization Nurturing career‑early talent through global development / Hitachi Energy Hitachi s’Energy Global +Power Graduate Program provides STEM graduates with practical experience through six month job .rotations The program is designed to attract and develop high potential talent for future leadership .roles With over 320 participants from around 35 ,countries the program has achieved a 99% retention rate during participation and 96% one year after ,completion helping to build a diverse and sustainable talent .pipeline Leadership development for sustainable growth In response to the globalization of our business and rapid changes in the business ,environment Hitachi regards the development of future leaders as a key pillar of our human capital strategy to support sustainable growth and term-long value .creation To strengthen the talent pool of future ,leaders Hitachi is redefining what future leaders need to ,succeed enhancing the leadership development program .accordingly The program aims to support individuals from all levels to learn ,quickly think strategically across the ,organization drive ,change empower diverse talent and inspire with a clear .vision Through this ,approach Hitachi seeks to develop generation-next global leaders and build a robust pipeline that supports succession planning across the entire .group Training for managers Empowering leaders through learning and coaching / Hitachi Energy Hitachi s’Energy Power Your Leadership program promotes leadership mindsets and behavioral change among managers worldwide through ,learning-e workshops and collaborative .learning In ,addition professional coaching is provided through a combination of programs designed for all employees and focused-leadership .programs Since fiscal 2022, more than 250 participants have completed over 2,100 hours of ,coaching supporting individual growth and reflection-self while driving organizational .transformation Training Overview 2025FY results Global Leadership Acceleration Program for Managers ,)M-GAP( Ready to Lead Leadership training with common global content for managers and new managers Held in 7 regions/countries ,Japan( the United ,States the United ,Kingdom ,India ,Singapore China and Taiwan with) 3,086 participants Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 082
Total Reward Fostering a performance-high culture To create an environment where employees can confidently demonstrate their capabilities and take on ambitious ,challenges Hitachi strives to maximize employee engagement and performance through fair and transparent evaluation and ,treatment appropriate based-performance ,compensation term-long incentives and support programs tailored to different life .stages Our total reward is designed not only to recognize term-short ,results but also to place emphasis on behaviors that reflect oriented-future growth and ,challenge thereby encouraging sustained contribution to the .organization Through these ,initiatives we reinforce a performance-high culture and strengthen sustainable .competitiveness Global compensation philosophy ensuring fair evaluation and compensation Hitachi respects and supports human rights as described in the International Labour (s’Organization ILO Declaration) on Fundamental Principles and Rights at ,Work and we are committed to ensuring fair evaluation and .compensation We also believe ,that to empower a diverse workforce regardless of ,nationality we must establish globally consistent systems for evaluating and compensating talent .fairly As part of this ,effort Hitachi has established the Global Compensation Philosophy as a formal policy to embody the Hitachi Group Identity and to secure and retain talent who drive business growth and maximize value for ,stakeholders including shareholders and ,customers while also enhancing employee .engagement This philosophy is founded on three core principles shared across the entire :Group
- Ensuring market competitiveness
- performance-for-Pay
- Maintaining transparency We ensure compliance with the laws and regulations of each country and region in which we operate when determining .compensation For ,instance we conduct comprehensive and periodic checks through our system to ensure compliance with minimum wage requirements in .Japan After developing a based-performance compensation system that is fair and competitive in the context of the labor market for the industry in each country or ,region we made the system for determining compensation known to all regular .employees We thus evaluate the performance of all regular employees each year and then determine the amount of .compensation ,Furthermore ,Hitachi .Ltd introduced a system for all regular employees in which compensation varies according to individual employee performance and company .performance In addition to evaluation ,results employees receive feedback on their strengths and areas for improvement identified via the ,evaluation as well as challenges and goals for future work to encourage personal .growth Compensation levels and systems in Japan At ,Hitachi .,Ltd in response to changes in the labor market environment and increasing workforce ,mobility we have reviewed compensation levels across job grades in Japan and raised compensation ranges with the aim of ensuring competitivemarket .remuneration This initiative is intended to appropriately evaluate and reward each s’employee goals and ,achievements thereby enhancing engagement and fostering a virtuous cycle of value .creation At the same ,time to realize fair and transparent compensation based on roles and ,responsibilities we are progressively transitioning toward a based-job compensation framework in .Japan By enabling compensation to be set in line with professional expertise and the significance of each ,role we aim to build a talent portfolio aligned with our business .strategy In ,addition we are enhancing transparency around compensation by disclosing level-job compensation ranges at the time of .recruitment As part of our talent management ,framework Hitachi is advancing the implementation of a based-job compensation ,system establishing clearer compensation standards that reflect job responsibilities and the scope of .roles Compared with the traditional -seniority or based-competency compensation ,approach this has enhanced transparency and strengthened employees understanding’ and acceptance of compensation .decisions employment-Re after retirement (age (Japan In ,Japan where there is a retirement age and reemployment ,system ,Hitachi .Ltd and certain Group companies in Japan anticipate an increase in employees reaching retirement age in the .future We believe that leveraging these employees skills’ and experience is essential for sustainable .growth To create an environment where employees can thrive regardless of ,age we have implemented a system in which the working conditions under the reemployment system after retirement are the same as those before ,retirement and compensation is based on the jobs after .reemployment Incentivize employees to increase corporate value In a complex and rapidly changing business ,environment Hitachi encourages employees to adopt a term-long perspective in their actions by positioning the alignment of employee incentives with term-long corporate value creation as an important element of the human capital .strategy Through this ,approach Hitachi seeks to reinforce a foundation that supports sustained growth and value creation across the .Group Restricted stock units (plan (RSU Going ,forward Hitachi will expand based-stock ,compensation previously limited to the executive officers and the corporate officers of ,Hitachi .Ltd and executives of selected group ,companies to include a wider range of group company officers and certain employees to extend an ownership mindset across ,leadership encourage a management perspective and align the eligible Directors and employees with shareholder interests to create term-long corporate .value We also expect this expanded program to enhance employee engagement and support the attraction and retention of performing-high .talent In ,addition beginning April 2026, RSUs have been granted to more than 1,800 leaders across more than 40 1countries comprising employees of Hitachi and directors and employees of certain .subsidiaries The RSUs extend to between two and three levels below BU CEOs or functional .leaders 1 Residents of countries where it is difficult to deliver shares due to overseas laws and regulations will receive an amount equivalent to RSU in lieu of the delivery of the s’Company shares by trust Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 083
Employee stock purchasing (plan (ESPP ,Hitachi .Ltd and certain Group companies in Japan have adopted an employee stock purchasing plan to support asset accumulation among employees and enhance their sense of participation in .management Under the employee stock purchasing ,plan employees will receive training on asset accumulation when acquiring ,Hitachi .Ltd shares and may receive incentive payments based on ,Hitachi .Ltd .performance This system links the growth of the company to employee asset .accumulation The shares held by s’Hitachi Employee Stock Purchasing Plan rank ninth in terms of major company (shareholders shareholding :ratio 1.73% as of March 31, .(2026 ,Furthermore we are working to introduce a new framework that will allow employees outside 1Japan to purchase company .stock Through this ,initiative we aim to further support employees in building personal ,assets strengthen a sense of belonging and align the interests of employees with those of .shareholders Our goal is to expand the Employee Stock Purchasing Plan to cover 150,000 eligible employees by fiscal 2027. 1 Excludes employees in countries where legal or operational constraints make implementation difficult Initiatives to support employee wealth (building (Japan ,Hitachi .Ltd and the Group companies in Japan offer partial or full defined benefit pension ,plans defined contribution pension ,plans and sum-lump retirement allowance .plans These plans respond to the diverse needs of employees as they age and to changes in employment ,patterns helping to ensure security and stability in life after retirement while enhancing .being-well At ,Hitachi .,Ltd these defined benefit pension ,plans defined contribution pension plans and sum-lump retirement allowance plans are available to all regular .employees We also have systems in place for regular-non ,employees based on employment .status One HR Platform Enhance global HR platform to strengthen One Hitachi collaboration Hitachi is advancing the development of a globally integrated talent management platform to enhance visibility into talent and optimize talent ,deployment thereby strengthening the competitiveness of the Group as a .whole Starting with the development of a talent database and the implementation of a Global Leadership Development Program for selected top ,talent we continue to expand our efforts through common job grading and performance ,management a global learning platform and a globally integrated human capital management .platform Through these ,initiatives Hitachi aims to enable the visualization of talent and the strategic development and appointment of leaders across countries and ,businesses thereby strengthening makingdecision capabilities and execution across the .organization Hitachi Global (Grade (HGG To empower a diverse workforce to drive business ,forward -role and based-job talent management is .essential One of the key tools for achieving this talent management is the Hitachi Global (Grade HGG .system) The HGG consists of 11 ,grades and each position is evaluated based on the common standards of the entire Hitachi .Group Integrated human capital management platform Through our human capital management ,platform we share date-to-up talent (information professional ,skills career ,preferences .etc via) a cloud .system The platform enables centralized management of various ,processes including search for talent across the .Group We utilize this information for team ,management performance ,management development planning and career .development The platform is gradually being expanded across the whole .Group 1* The decrease from 2022FY is due to changes in the number of Group .companies Introduction of the integrated human capital management platform A global talent platform driving talent growth at scale / Hitachi Energy Hitachi Energy is strengthening its global talent platform under Inspire 2027 to support the recruitment of 15,000 ,employees leveraging a robust digital foundation and standardized .processes By establishing a single source of talent data and common ,governance the company is improving data ,quality operational efficiency and functional-cross ,collaboration enabling driven-data talent management at .scale As a ,result it can process more than one million applications annually and support scale-large hiring while using automation and analytics to enhance efficiency and strengthen ,diversity inclusion and a performance-high .culture Integration of acquired companies Hitachi gradually integrates newly acquired companies into our global human capital .framework ,Specifically we foster the adoption of common HR ,systems talent management practices and governance ,processes while considering local business and market .conditions Through this ,approach Hitachi supports the effective integration of employees and strengthens organizational alignment across the .Group 30 20 10 2021 2022 18.1 2023 28.9 1*21.8 2024 2025 22.6 26.5 0 10( thousand (people (FY( Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 084
Strengthen AI expertise and adoption Hitachi positions strengthening and adoption of AI expertise as a key element of our human capital ,strategy recognizing AI as a critical driver of competitiveness and value creation to ensure ready-future talent and .organization We recognize that if knowledge of AI and the skills to utilize it do not become sufficiently ,widespread there is a risk of falling behind in adapting to technological ,changes and challenges related to risk management and ethics may come to the .fore By reinforcing related-AI capabilities across the ,Group Hitachi aims to enhance execution of business transformation while managing related-technology risks and supporting ,sustainable term-long .growth Acquiring and developing AI professionals The strengthening of AI talent at Hitachi started in fiscal 2024 with the goal of developing 50,000+ AI .professionals With the advancement of AI technology and the expansion of its application ,areas focus areas are expanding to include agentic AI and physical .AI We are promoting the acquisition of AI skills and capabilities necessary for business promotion in each division through both development and recruitment .approaches Through this ,initiative we were able to expand to approximately 39,000 AI professionals in fiscal 2025. In developing AI ,professionals as a measure to quickly equip members with the necessary skills required for each business ,promotion we are globally deploying and promoting a flexible combination of various ,methods including s’Hitachi unique training .programs Business assistance AI application project / Hitachi Elevator China( .,Co) .Ltd Hitachi (Elevator China .,Co) .Ltd has established an AI management platform that enables the sharing and reuse of AI capabilities across business functions while advancing powered-AI initiatives to support operational .processes Through standardization and ,phantomization the company is strengthening functional-cross collaboration and accelerating digital transformation across the group through ,responsible centered-human AI .adoption As a ,result it has enhanced collaboration and optimization across ,functions enabling scalable and sustainable AI deployment while strengthening organizational alignment and .execution AI literacy program Hitachi is taking a ,structured group wide approach to strengthening AI literacy by integrating workforce ,education hands on AI ,adoption and robust .governance This approach is anchored on three key .pillars
- AI Center of (Excellence AI :)CoE Serves as a central hub for driving value creation through the ,safe ethical and practical use of ,AI in line with the s’Group responsible AI .principles
- AI literacy training :program Focuses on building a foundational understanding of AI ,concepts increasing employee familiarity with AI technologies and strengthening awareness of risk management and readiness for AI .use
- Digital community of :practice Brings together employees across functions to embed AI tools such as Copilot into everyday ,work share AI best practices and promote continuous learning through knowledge sharing and peer-to-peer .collaboration The use of AI in HR operation Hitachi leverages AI across our core HR platform and selected external digital platforms to enhance ,productivity operational efficiency and overall employee .experience AI enabled capabilities are automating recruitment ,processes including candidate screening and interview ,scheduling as well as onboarding processes and workforce data ,analysis enabling HR teams to shift their focus from administrative activities to valuehigher strategic work that supports business growth and talent .development Integration with external AI platforms has further strengthened HR operations by enhancing candidate ,management case management and service-self inquiry ,support resulting in improved responsiveness and reduced turnaround .times Digital assistants and chatbots provide 24/7 employee support for key programs such as the Stock Incentive .projects In ,addition enabled-AI learning platforms deliver personalized development recommendations based on employees ,roles’ skills and career ,paths with particularly strong impact in the digital business .sector Through responsible ,adoption AI has delivered measurable improvements in talent ,acquisition including higher application completion and candidate (engagement ,)99.2% increased recruiter (capacity approximately 12,733 hours saved and) significantly reduced time to .hire As AI capabilities continue to ,mature Hitachi will continue to apply ,responsible human centered AI to drive measurable productivity gains and operational efficiency across HR ,functions further enhancing value creation throughout the HR .organization Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 085
Enabling driven-data hiring through talent analytics / Hitachi Rail Hitachi Rail uses dashboards to visualize recruitment status and labor market ,trends supporting driven-data .makingdecision By integrating internal and external talent ,data it aims to advance driven-data ,recruitment strengthen access to external talent markets and accelerate access to critical .talent This approach enhances recruitment sophistication and reduces reliance on passive .hiring Advancing people analytics By leveraging driven-data ,insights rather than relying solely on experience and ,intuition Hitachi is pursuing driven-data human capital management that incorporates employee feedback and ,data aiming to enhance organizational productivity and employee wellbeing while creating an environment where everyone can proactively tackle challenges and perform at their .best As one concrete ,initiative Hitachi introduced an onboarding survey in fiscal 2025. By understanding the expectations and concerns of new employees early ,on we have built a system that enables timely and personalized ,support creating an environment where everyone can perform at their best with confidence from the .start Through these ,measures we will directly link individual growth with organizational vitality and further strengthen human capital across the entire .Group Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 086
Creating a workplace where employees can stay healthy and perform to their full potential with confidence is an important foundation for sustainable corporate .growth Hitachi is committed to fostering a fulfilling and rewarding workplace by promoting flexible ways of working and strengthening support tailored to different life .stages In addition to providing work arrangements that are not constrained by time or ,location Hitachi systematically offers systems and initiatives that support employees in balancing work with child care and nursing .care Through these ,efforts Hitachi seeks to create an environment where every employee can continuously contribute and deliver .value Implementing style-work reform Hitachi pursues style-work reforms to help employees with diverse backgrounds thrive and perform at their .best ,Today ,Hitachi .Ltd offers home-from-work and satellite office programs to approximately 95% of ,employees supporting flexible work regardless of time or .location Under these ,programs employees do not need to commute to the office for a certain amount of ,time and they may work outside the office without any .limitations Employees may also work at locations where they provide child ,care nursing ,care .,etc or where relatives .reside In fiscal 2024, we began permitting employees to work in locations outside Japan where their relatives ,reside subject to certain .conditions ,Hitachi .Ltd also introduced free-location work for levelmanagerial employees and employees eligible for discretionary ,work which allows these individuals to work on a spot remote .basis We have eliminated minimum daily work hours for time-flex ,work allowing for regular work days to “become work-non .days ,Furthermore” we also began expanding rest and vacation options by introducing the Life Support Leave (program ,purposemulti 100% paid leave ,)program responding to diversifying needs for time .off As part of our efforts to create autonomous and flexible work ,styles we make policy recommendations through KEIDANREN Japan( Business Federation and) the Japan ‘Employers Federation of ,Electrical Electronics & Information ,Industries and offer input on government ,committees such as the Working Conditions Committee within the Ministry of ,Health Labour and s’Welfare Labor Policy ,Council as representatives of various economic .associations Fulfilling and rewarding workplace Expanding support systems for balancing work with child care and nursing care Hitachi works to enhance workplace environments that help employees balance work with child care and nursing .care ,Specifically at ,Hitachi .,Ltd we organize necessary support based on the four perspectives (of 1 information) (,provision 2 financial) (,support 3 style-work) reform (and 4 mindset) ,reform and provide and implement concrete support measures as an ,inclusiveall integrated .package Similar initiatives are also being rolled out across the Group companies in .Japan Activities for balancing work with child care and nursing care In terms of support for balancing work and child ,care we provide a range of programs tailored to each ,stage from before care-child leave begins through employees return’ to .work ,Hitachi .Ltd shares video messages from top management and ,employees including ,men who have taken care-child ,leave and encourages employee declarations of their intent to take .leave Through these ,initiatives we enhance workplace communication and understanding and aim to ensure that all eligible employees are able to take advantage of care-child leave and related .programs We also hold seminars for both employees planning to take leaves and their supervisors to ease concerns during the leave period and provide stronger supports for their return to .work Additional leave-post support includes a care-child and work balance allowance and other assistance .programs With regard to support for balancing work and nursing ,care due to the declining birthrate and aging population in ,Japan the Recent activities at ,Hitachi .Ltd Category Activity Key components care-Child Expectant parent seminars For• employees who are expecting a child themselves or whose partner/spouse is expecting a ;child aims to provide the knowledge necessary to consider taking care-child leave and to encourage the use of leave and work systems Over• 90% of participants who are men stated that they would like to take care-child leave after attending the seminar Declaration of care-child leave via workflow system Initiative• aimed at identifying care-child leave intentions early and securing time to build workplace support structures Facilitates• communication and meetings with supervisors regarding the use of care-child leave while also providing necessary information on relevant systems and seminars during the period leading up to the start of the leave care-Child and s’women health concierge services Provides• support for finding a nursery school service Shares• parenting quizzes and articles aimed at encouraging s’men involvement in ,care-child and also offers an advice service for women with related-health concerns care-Nursing Strengthening workplace communication to support life-work balance Distributed• the Nursing-Work Care Balance Workplace Communication Guide to all employees Outlines( communication flow and key points to help facilitate dialogue between employees facing care-nursing ,responsibilities their ,supervisors and (specialists care-nursing ((concierges Introduction and expansion of nursing care (concierge individual consultation (service Provided• services to employees and their families for nursing related-care ,concerns delivered by care-nursing experts acquainted with our company programs These• services cover approximately 90% of the Group employees within (Japan as of March (2026 Regular seminars and lectures Regular• panel discussions featuring Hitachi Group employees with experience of handling both work and ,caregiving and lectures by external experts In• fiscal 2025, approximately 10,000 employees ,participated with about 90% reporting that the sessions helped alleviate their concerns and anxieties Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 087
number of employees facing the challenge of providing nursing care for elderly family members increases .continuously In ,response we expand our support programs with the aim of helping employees balance work and nursing care and preventing turnover because of providing .care ,Hitachi .Ltd and the Group companies in Japan regularly conduct employee awareness and finding-fact surveys concerning nursing .care Based on the results of these ,surveys we enhance measures to help employees balance their work and home care-nursing .responsibilities Specific initiatives include regular care-nursing seminars featuring panel discussions with Hitachi Group employees who have caregiving .experience We also set up consultations with experts familiar with internal and external support systems and develop a communication guide for supervisors and subordinates to facilitate better conversations around balancing work and .care ,Hitachi .Ltd took the lead in implementing these ,initiatives and over 80% of employees are now aware of national and company support .programs These efforts have helped prevent or reduce employee turnover and extended leave due to .caregiving ,Additionally in response to what is known as “the 2025 “,problem occurring as the members of s’Japan first baby boom enter the over-and75- age ,bracket we formulated plans for measures to support a balance between nursing care and work at all Hitachi Group companies in Japan and are pursuing initiatives in this .area To help employees to balance work with child care and nursing ,care it is essential to foster a workplace culture that makes it easy for these employees to access and utilize various support .systems To this ,end we launched new Seminars to Promote Diverse Work Styles in fiscal 2024 for all Group employees in .Japan These seminars explain the background behind our efforts to support diverse work styles and emphasize the importance of wide-workplace engagement in style-work .reform Our goal is to create a culture that respects s’everyone work and private ,lives regardless of personal circumstances such as child care or nursing ,care and encourages mutual .support Preventing long working hours and heavy workload Hitachi complies with the laws and regulations of each country and region concerning long working hours and heavy .workload To maintain employee health and improve ,productivity ,Hitachi .Ltd sets wide-Company KPIs for style-work reform in Japan each fiscal .year In this ,way we strengthen workplace management and review business .processes We also offer learning-e programs to ensure compliance with laws and regulations related to working hours and annual paid .leave Workplaces and projects that may involve long working hours are managed on an individual .basis To manage long working hours and prevent heavy ,workload we have introduced a way to check employees working’ hours based on PC ,use and also provide labor related-management information and send out alerts to help supervisors monitor the working conditions of their subordinates in a timely ,manner thereby supporting appropriate management in the .workplace We extend similar efforts to the Group companies in Japan to prevent long working hours and heavy workload using IT .tools While the law requires premiums of 25% for ,overtime 25% for night-late work and 35% for work on weekends and ,holidays ,Hitachi .Ltd pays 30%, 30% and 45%, .respectively In addition to paying over the minimum legally required premium rates for ,overtime night-late work and work on weekends and ,holidays we also give employees who work their prescribed working hours on weekends or holidays time off in .lieu Employees receive the premium rate for the hours worked even if they take this time off in .lieu Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 088
Diverse perspectives In this section 091 ,Diversity opportunity and inclusion Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 089
We bring different perspectives together to create shared value through collaboration Guided by our belief “of ,Together we are ,stronger Hitachi” values each s’person uniqueness and the different perspectives they .bring Across our ,businesses ,countries functions and ,teams we believe better ideas emerge when people with different ,backgrounds experiences and ways of thinking work .together This is how we strengthen ,innovation improve making-decision and create value for customers and .society The foundation for realizing this is ,Diversity Opportunity and (Inclusion .)DOI Diversity brings different .perspectives Inclusion makes sure those perspectives are heard and .respected And Opportunity means transparent and based-merit talent processes that allow people to contribute and .grow Through global direction and local ,action we continue to embed DOI into how we ,lead work and make people ,decisions from recruitment and development to evaluation and career .progression Diverse perspectives FY highlights2025 15.9% Women executive and corporate officers 23.2% Ethnically and culturally diverse executive and corporate officers 3,000~ Leaders completed Inclusive Leadership training Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 090
Our approach to advancing ,Diversity Opportunity and Inclusion At ,Hitachi we respect and value each s’other .uniqueness By fostering an environment where people collaborate and support one ,another our culture drives the success of our mission to contribute to .society “Because ,Together we are .“stronger This belief reflects how we ,work grow and create :value by bringing together different ,perspectives enabling psychological safety and strengthening inclusive .leadership In fiscal 2026, we refined our narrative under ,Diversity Opportunity and (Inclusion ,)DOI to reflect our focus on fair ,access based‑merit processes and inclusive systems that translate diverse perspectives into ,innovation business success and positive societal .impact This approach is embedded in the Hitachi Global Policy on Diverse ,Perspectives which sets the principles and practices that shape a culture of ,inclusion ,fairness collaboration and term-long .competitiveness These values are more than principles they; are our compass as we create a workplace culture where people feel they truly ,belong are empowered to contribute their ,best feel proud of their impact and grow .together Hitachi Global Policy on Diverse Perspectives Global DOI management structure Under the leadership of the Chief Sustainability (Officer ,(CSuO Hitachi has strengthened our global and regional management structure to advance inclusion and leverage diverse perspectives in line with business needs and local .priorities This approach reflects a more strategic and operational approach to embedding ,Diversity Opportunity and Inclusion across the .Group Topics related to DOI are discussed both within the executive and operational levels to ensure common ,direction clear accountability and disciplined .execution The Steering ,Committee comprised of the General Manager of Global DOI ,Division the General Managers of DOI for each sector and the Global HR Center of Excellence COE( ,Head) sets the overall strategy and .direction The Global ,Council comprised of leaders responsible for DOI from Business (Units BUs and) major Group ,companies supports implementation by aligning priorities and advancing initiatives tailored to local business and market .contexts Important matters are reported to and deliberated on by the Senior Executive Committee ,and when ,necessary reported to the Board of .Directors Regional councils are established across six :regions the ,Americas ,EMEA ,APAC ,India Japan and .China Regional DOI leaders in each region work closely with business leaders and DOI leaders representing BUs and Group companies to translate global direction into local .actions This management ,structure together with visible executive ,sponsorship helps embed inclusion and diversity into our businesses and strengthen .accountability The corporate global team supports this structure by advancing wide-Group initiatives and fostering an inclusive culture grounded in ,fairness based-merit processes and opportunity for .all Global ambitions Diversity at the leadership level ,Hitachi .Ltd has established an aspirational target to strengthen diversity at the leadership .level By fiscal 2030, we aim for 30% of executive and corporate officer positions to be held by women and another 30% by ethnically and culturally diverse 1individuals . This commitment is also aligned with the Japanese Cabinet s’Office target for women to hold 30% of executive positions at companies listed on the Tokyo Stock Exchange Prime Market by 2030. 1 Counting the number of Japanese-non members Global DOI management structure Diversity at the leadership (level ,Hitachi (.Ltd ,Diversity opportunity and inclusion Policy of diverse our—perspectives foundational values Since our founding in 1910, Hitachi has been guided by the values of ,Harmony Sincerity and a Pioneering .Spirit These values are not only part of our ,legacy they continue to shape the way we ,lead collaborate and innovate .today Viewed through the lens of our ,values our approach to leveraging diverse perspectives is as :follows • (Harmony Wa encourages) us to collaborate across ,differences deepen mutual understanding and create a sense of belonging regardless of ,role ,region or background (Sincerity• Makoto reminds) us to act with integrity and ,empathy always striving for ,fairness transparency and ethical behavior in how we treat others and make decisions Pioneering• (Spirit Seishin-Kaitakusha drives) us to challenge ,convention embrace new perspectives and create-co solutions that serve society and improve lives Board of Directors Senior Executive Committee Steering Committee Regional/Global Council 10 5 20 15 40.0 30.0 10.0 20.0 0 0 June 2022 June 2023 June 2024 June 2025 End of 2030FY (KPI( 9 13 9 16 9 19 25.0 June 2026 11 18 16 11 Number of women executive and corporate (cerso left (scale Number of culturally/ethnically diverse executive and corporate (cerso left (scale Ratio of women executive and corporate (cerso right (scale Ratio of culturally/ethnically diverse executive and corporate (cerso right (scale (Persons( (%) 30.0 12.2 11.4 11.8 30.0 20.3 17.6 15.9 15.9 26.1 23.2 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 091
Fostering new business creation through :DOI Make a !Difference Since fiscal 2015, Hitachi has conducted idea contests open to all employees across the group with the aim of strengthening an ownership mindset and fostering a strong corporate .culture To ,date more than 4,930 ideas have been ,submitted and outstanding proposals for new businesses and internal transformation have received support to help bring those ideas to .life For Hitachi to achieve sustainable ,growth it is essential not only to create new ,businesses but also to foster an environment in which diverse talent can fully realize their .potential To this ,end Make a Difference provides! a platform that empowers each employee to take initiative with a pioneering .spirit It brings together proposals from employees across the Group and around the globe who offer diverse ,perspectives and helps transform outstanding ideas into viable .businesses In ,addition by recognizing and honoring employees who embody the pioneering spirit that has defined Hitachi since its ,founding we seek to build even greater momentum for .innovation Focus areas initiatives Our DOI strategy focuses on five :areas ,cultures ,genders ,generations people with disabilities and neurodiversity and +.LGBTQIA ,Together these priorities help build a culture where people feel ,respected included and empowered to contribute their .best These areas also support s’Hitachi broader aim of turning diverse perspectives into ,innovation stronger people outcomes and positive impact for customers and .society Cultural and ethnic inclusion Hitachi generates over 60% of our revenue outside Japan and employs nearly 60% of our workforce outside .Japan As a global ,company we strive to ensure that our systems and practices enable people of all ,nationalities cultural backgrounds and regions to contribute to their full .potential Our workforce reflects a wide range of ,nationalities ,languages races and cultural .backgrounds This diversity strengthens our ability to understand the needs of ,customers partners and ,communities while also encouraging innovation and supporting sustainable business .growth Hitachi recognizes that empowerment must be accompanied by education and .awareness For this ,reason Hitachi is committed to fostering a deeper understanding of how to work effectively across .cultures By helping teams navigate different communication ,styles making-decision norms and approaches to trust and ,feedback Hitachi strengthens our ability to collaborate across the .globe This cultural agility supports smoother internal operations and enhances our ability to serve diverse customers and .stakeholders In fiscal 2026, Hitachi will place particular focus on leading with cultural ,awareness strengthening leaders ability’ to ,recognize value and work effectively across differences and to create environments where diverse perspectives are ,understood respected and translated into stronger collaboration and better business .outcomes Initiatives at the global level As a global organization operating across diverse regions and ,cultures Hitachi recognizes that cultural diversity is not only a source of ,difference but also a foundation for collaboration and value .creation To deepen mutual understanding across the ,Group Hitachi launched a global campaign in fiscal 2025 focused on cultural .inclusion As part of this ,initiative employees from various regions around the world were interviewed about how cultural backgrounds influence ways of ,working including ,making-decision communication ,styles and approaches to .meetings These conversations were captured in a series of short videos and shared ,globally providing employees with opportunities to learn from real experiences and perspectives across .cultures By sharing personal insights rooted in day-to-day ,work the videos highlight not only the challenges that can arise from cultural ,differences but also the potential for new ideas and innovation when those differences are understood and .respected These efforts support ongoing dialogue and understanding across s’Hitachi global .workforce Inclusion and opportunity across genders At ,Hitachi we believe that balanced gender representation strengthens our ability to understand and respond to the needs of ,customers society and the markets in which we .operate As of the end of March 2026, women represented 23.4% of s’Hitachi global workforce and 17.4% of employees in managerial .roles We recognize that continued progress is ,needed particularly in ,leadership and we remain committed to creating an environment in which women and all employees can develop their ,capabilities contribute fully and advance based on merit and .talent Our approach focuses on building fair opportunities by ensuring that the right people are in the right roles and that advancement processes are transparent and .based-merit Through ,this Hitachi aims to strengthen our talent pipeline and build a more inclusive organization .overall We also recognize that progress in gender inclusion requires both structural action and cultural .change For this ,reason Hitachi continues to strengthen leadership ,accountability inclusive leadership capabilities and workplace environments that enable people to .thrive Through these ,efforts we seek to create a company where opportunities are more widely ,available talent is recognized fairly and diverse perspectives contribute to better ,making-decision innovation and sustainable .growth :Note Figures include enrolled employees with employment contracts as of March 31, including employees seconded from the Hitachi Group to other companies and employees on ,leave and excluding employees seconded from other companies to the Hitachi .Group Manufacturing workers not registered in the employee database and employees of some newly consolidated companies are not .included As of the end of fiscal 2025, the number of manufacturing workers not registered in the employee database was 22,000. The increase in the number and percentage of women managers over time reflects improved coverage of our employee database and changes in the number of consolidated .companies ,Also employees whose (grades job titles are) not registered in the employee database are not included in the number of managers Ratio and number of women (managers Hitachi (Group Number of women (managers left (scale (Ratio right (scale (FY( (%) 2021 2022 2023 2024 2025 16,000 12,000 8,000 4,000 0 15.0 20.0 10.0 5.0 0 9.8 4,762 13.0 14.1 15.8 17.4 15,040 8,639 8,461 11,739 (Persons( Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 092
Tackling the gender pay gap Hitachi applies the same system of compensation and benefits regardless of employee .gender Since fiscal 2023, Hitachi has conducted an annual global survey on the gender pay ,gap defined as the ratio of the average pay per woman to that per .man The results of the percentage for fiscal 2025 were 82.4% ,globally 72.9% in Japan and 91.2% in other .regions The gender pay gap results from a number of different ,factors including a high proportion of men in senior and higher .positions Especially in ,Japan women holding managerial positions are less than ,men and the percentage of women working shorter hours is higher compared to .men Hitachi will continue to increase the number of women in managerial positions in Japan through DOI activities to bridge the .gap Women in :Tech One Hitachi in Action In fiscal 2025, Hitachi advanced gender inclusion in technology through a “unified One Hitachi presence” at the Women in Tech Summit in .Poland ,GlobalLogic Hitachi Energy and Hitachi Vantara jointly engaged a large ,audience presenting a shared commitment to inclusive innovation and expanding opportunities for talent across the .Group Speakers from across Hitachi companies showcased expertise in areas such as AI and digital ,engineering while the initiative strengthened talent engagement and recruitment .outreach It was also recognized with the ESG Award at the Hitachi 2025FY Global IT Awards “as Women in Tech – One “.Hitachi This collaboration demonstrates how group-cross alignment strengthens talent pipelines and supports inclusive growth across .Hitachi Gender inclusion initiatives in Japan At Hitachi in ,Japan we are committed to advancing gender inclusion by promoting flexible work styles and career development programs that support s’women growth and .success One such initiative is “the Career & Beyond mentoring” ,program which supports women who aspire to managerial roles as well as those who feel uncertain about their career .paths The program fosters career understanding and confidence to support proactive career ,development while promoting networking among .participants To create an environment where diverse talent can ,thrive we also promote active participation in childcare regardless of .gender By raising awareness among not only employees themselves but also managers and workplace ,colleagues we are fostering a workplace culture that encourages employees to take care-child .leave ,Specifically we provide continuous learning ,opportunities such as workplace support campaigns and learning-e ,programs to promote understanding and practical support within .teams As a result of these ,initiatives in fiscal 2025, the paternity leave and related leave up-take (rate including spousal childbirth (leave reached 94.5% at Hitachi .,Ltd representing significant progress toward fostering a workplace environment where employees can achieve a healthy balance between work and private life and support one .another In ,addition in connection with International s’Men Day and International s’Women ,Day we held health seminars designed to improve literacy around andropause and .menopause The seminars were structured to be beneficial for any ,gender including for employees who support the health of their partners or workplace team ,members and were attended by 3,300 .employees As part of our efforts to support the next ,generation we also provided external outreach programs aimed at encouraging junior high and high school girls to pursue related-STEM career .paths These initiatives included opportunities for dialogue with Hitachi Group employees and office ,tours contributing to greater awareness of STEM careers among .students Collaboration across generations At ,Hitachi we value the ,strengths experience and perspectives of all .generations We believe that when people across age groups work together with mutual respect and ,openness they create stronger ,collaboration richer ideas and more innovative solutions that reflect the needs of society and our .customers ,Today s’Hitachi workforce includes four generations working side by ,side combining standing-long expertise with emerging skills and fresh .perspectives As of the end of fiscal 2025, Generation Z represented around 20% of our global ,workforce and this share is expected to grow in the years .ahead Our approach to generational inclusion is not based on labels or ,stereotypes but on recognizing the uniqueness of each individual and creating opportunities for people to learn from one .another Through open ,dialogue mentorship and structured collaboration across ,generations we aim to build an environment where employees of all ages feel ,valued heard and .supported By combining complementary strengths across ,generations Hitachi seeks to turn generational diversity into a source of ,innovation knowledge continuity and sustainable .growth Generation inclusion at Hitachi Energy Czech Republic At Hitachi Energy Czech ,Republic generation inclusion is embedded in everyday .operations The GA manufacturing unit in Trutnov has been recognized for its strong commitment to supporting employees aged 55+ and fostering collaboration across .generations In 2025, the site was awarded first place in the large company category of the “regional Company Friendly to Employing People 55+ .competition” With 15% of its workforce aged over 55, the Trutnov team implements age responsive HR ,practices flexible work ,arrangements continuous learning opportunities and structured support for smooth retirement .transitions These efforts reflect Hitachi s’Group belief that ,experience lifelong learning and intergenerational collaboration are key drivers of ,resilience innovation and sustainable .growth People—Accessibility with disabilities and neurodiversity Hitachi is committed to creating an environment in which people with disabilities and neurodivergent traits feel ,respected supported and empowered to contribute their .best We continue to strengthen ,awareness accessibility and support across the workplace so that all employees can thrive and participate .fully At ,Hitachi we understand disability as a broad concept that includes both visible and visible-non ,differences including ,physical ,mental intellectual and sensory .differences We recognize and value neurodiversity as a form of cognitive diversity and acknowledge that individual characteristics and needs .vary By respecting diverse characteristics and ,experiences we strive to create an inclusive workplace where everyone can thrive and achieve their full .potential Our approach focuses on creating more accessible ,workplaces systems and ways of ,working while also strengthening ,recruitment retention and term-long .opportunity Since joining The Valuable 500 in 2021, Hitachi has continued to advance disability inclusion through leadership commitment and systemic .change Across the ,Group we are working to embed accessibility principles into physical ,environments digital ,tools talent processes and everyday .practices As part of these ,efforts Hitachi participated in SYNC 25 in December 2025 in ,Tokyo the s’world first Accountability Summit for disability ,inclusion and had a discussion on driving measurable Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 093
and transformative progress across our global .network To further support inclusion at ,scale Hitachi has developed a comprehensive Disability Inclusion ,Guide consisting of video and materials covering core inclusion concepts and diverse disability .characteristics Developed in fiscal 2025, the guide is designed for use across all teams and is being deployed globally throughout fiscal 2026. Through these ,efforts Hitachi aims to build a workplace where inclusion is ,practical sustainable and closely linked to stronger people outcomes and term-long business .value Employment of people with disabilities in Japan ,Hitachi .Ltd and Hitachi Group companies in Japan recruit people with disabilities through accessible and accommodating processes without .discrimination As of June 2026, the employment ratio of people with disabilities was 2.74% at ,Hitachi .Ltd and 2.78% for the entire Group in .Japan Employment of people with disabilities and employment ratio ,Hitachi( 1*(.Ltd :Note Data is compiled on June 1 of each fiscal .year The employment ratio is calculated according to methods prescribed in the relevant .laws 1* Includes special subsidiaries and related Group (.companies 1 special subsidiary and 22 related Group companies in June 2026. Figures include ,Hitachi (.Ltd 2* The legally required employment rate was 1.8% through 2012, 2.0% from 2013, 2.2% from 2018, 2.3% from 2021, 2.5% from 2024 and 2.7% from July 2026. Inclusive AI at GlobalLogic GlobalLogic advances disability inclusion through its work on Inclusive .AI In partnership with the American Association of People with (Disabilities ,)AAPD the company is developing‑co an Inclusive AI Governance Framework that integrates ,accessibility fairness and privacy into AI systems from the design .stage This approach reflects a shift toward inclusive ,design ensuring that diverse user needs are considered from the outset rather than addressed .retrospectively By embedding these principles into its governance and development ,processes GlobalLogic aims to deliver AI solutions that are both responsible and .accessible This initiative demonstrates how inclusive innovation can create value for a broader range of users while supporting sustainable and socially responsible digital .transformation Initiatives in Japan In ,Japan Hitachi is advancing disability inclusion through a combination of driven-employee initiatives and structured led-company .efforts In 2025, following a proposal from an internal Employee Resource (Group ,)ERG Hitachi sponsored the Deaflympics Tokyo 2025. Through this ,initiative we supported two athletesemployee from within the ,Group fostering a sense of pride while deepening understanding across the organization of the unique strengths of the Deaf .community We also hosted a scale-large seminar titled “the Disability Inclusion ,Cafe engaging” more than 3,000 .employees The session aimed to deepen understanding of inclusive hiring and highlighted how workplace inclusion can act as a catalyst for broader societal .change In ,addition we are sharing specialized case studies with HR ,teams based on surveys of employees with disabilities and their .managers This initiative is designed to enhance recruitment accuracy and strengthen retention support across .Japan Through these ,efforts Hitachi is strengthening the effectiveness of disability inclusion in Japan while contributing to the advancement of inclusion across the .Group Respect for individual identity and +LGBTQIA—uniqueness Hitachi is committed to creating an environment where people of all identities feel ,safe ,respected included and empowered to contribute their .best We believe this commitment is essential to unlocking the ,creativity collaboration and innovation that support our shared .success As part of this ,commitment Hitachi recognizes and supports +LGBTQIA employees across the .Group We strive to foster a culture of understanding and inclusion where all ,employees regardless of sexual ,orientation gender ,identity or gender ,expression can thrive with dignity and authenticity and advances a range of ,initiatives including awareness ,campaigns ,education training and regionally led programs that reflect local needs and .contexts Through these ,efforts we aim to build a workplace that respects each s’person ,individuality fosters a sense of belonging and values diverse .perspectives Initiatives at the global level During Pride Month in June 2025, Hitachi launched a global campaign to raise awareness about +.LGBTQIA As part of these ,activities we collected everyday experiences from the +LGBTQIA community and shared them “as Real Voices from Our Colleagues to” deepen understanding of the experiences that +LGBTQIA colleagues may encounter and to encourage all employees to reflect on what inclusive behavior truly .means Hitachi has also created the +LGBTQIA Toolkit and made it available to all .employees The Toolkit offers definitions of terminology related to +,LGBTQIA and showcases specific actions that can be put into practice in the workplace to foster awareness and .inclusion Initiatives in Japan Since April 2020, most Hitachi Group companies in Japan have extended the same benefits to employees with sex-same partners as those with sex-opposite .partners These benefits include family care ,leave childcare support and life-work balance .initiatives In recognition of these ,efforts ,Hitachi .Ltd and several Group companies were honored in the PRIDE Index 2025, an evaluation of related+-LGBTQIA initiatives led by the Japanese General Incorporated “Association work with “.Pride Hitachi has also demonstrated global support for +LGBTQIA communities by sponsoring local pride .parades In ,Japan Hitachi participated “in Tokyo Pride 2025 as” a sponsoring ,company exhibiting a booth in collaboration with ,ERG and 140 ,executives 2000 June 2022 June 2023 June 2024 June 2025 June 2026 Employment of people with (disabilities left (scale Employment (ratio right (scale Legally required employment 2*ratio (Persons( (%) 2.43 2.48 0 5,000 4,000 3,000 2,000 1,000 0 2.64 2,290 2,334 2,560 2.74 2.66 1.85 2,767 1.8 2.0 2.2 2.4 2.6 2.8 2,650 981 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 094
employees and their families also participated in the Pride Parade to show their .allyship As part of our broader commitment to ,inclusion Hitachi also supports the Business for Marriage Equality ,campaign which advocates for the legalization of sex-same marriage in .Japan Effort to embed DOI strategy into everyday practice Hitachi aims to embed DOI into everyday operations by both the top down and the bottom up ,approach combining led‑ driven‑.participation direction with leadershipemployee Leadership capability and employee awareness training Embedding DOI across the organization requires both leadership capability and shared awareness among employees and we enhance learning and capability .development For ,leaders Hitachi focuses on strengthening inclusive leadership as a core .capability In fiscal 2024, Hitachi launched a global Inclusive Leadership program for executive ,officers corporate officers and Group company .presidents This program focuses on ,awareness-self inclusive communication and the behaviors that help leaders welcome and value different .perspectives To embed these principles more ,broadly Hitachi certified house-in trainers and expanded the program to around 3,000 senior leaders across the Group in fiscal 2025, with plans for further .expansion For the broader ,organization learning opportunities help build awareness of how assumptions can influence everyday decisions and .behaviors Hitachi has developed and rolled out an learning-e program to foster a shared understanding of ,fairness based-merit processes and inclusive ways of .working In fiscal 2025, approximately 80,000 employees completed the ,program and we continue to expand the program .globally driven‑ Visible leadership commitment and employee engagement Hitachi reinforces DOI through visible leadership commitment and driven‑ employee.engagement Executives demonstrate their commitment to inclusion through level‑ clear messaging and consistent role ,modeling including top DOI messages and video communications that highlight the importance of inclusive leadership through a s’leader own ,actions experiences and everyday .behaviors driven‑ engagement is led in part by ,ERGs which play a Employee vital role in advancing inclusion from the bottom .up ERGs foster ,networking psychological safety and open ,dialogue while bringing employee perspectives into the .organization Through ,practical authentic and locally grounded ,activities ERGs help translate DOI principles into meaningful everyday experiences across the .Group Catalyst Award Hitachi was recognized by ,Catalyst a global nonprofit ,organization with the 2026 Catalyst ,Award a premier global award for workplace inclusion ,initiatives for our efforts to embed inclusion into our business strategy and governance .structure The award acknowledges our work to advance inclusive leadership and strengthen talent practices through a combination of global governance and local .implementation Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 095
Governance In this section 098 Health and safety 104 Quality and product safety 107 Business ethics and compliance 114 Information security 118 Risk management 122 Corporate governance Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 096
Governance 2025FY highlights 82.4 Ethical culture and compliance perceptions assessment score 100% Of employees trained on information security and personal information protection We are building our business on a resilient and trusted ,foundation fostering shared responsibility for honest and ethical operations The foundation of all our business activities lies in conducting our operations with ,integrity based on fair and transparent .management Under a governance structure that ensures the effectiveness of ,oversight we are enhancing ,robust wide-Group risk .management Amid an increasingly uncertain and rapidly evolving ,environment we continuously enhance these frameworks to strengthen s’Hitachi term-long .resilience Under our founding ,spirit we ensure the Group works together to create ,safe ,secure comfortable and healthy workplaces for ,all while “delivering Hitachi Quality — qualityhigh” and safe products and services — to customers around the .world At the same ,time we are strengthening our information security measures to protect critical assets and build trust with .stakeholders In ,addition we are advancing our approach to AI governance for our ,products services and ,systems fostering ethical use of emerging .technologies Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 097
Basic approach for health and safety Hitachi communicates the Hitachi Group Health and Safety Policy to all Hitachi Group companies worldwide in ,Japanese English and .Chinese This policy is based on our philosophy that Health and Safety Always Comes .First We coordinate with all related ,companies including contractors and procurement ,partners to ensure the Group works together to create ,safe ,secure comfortable and healthy workplaces for .all We instill our belief in everyone who works at the Hitachi Group that occupational incidents and illnesses can be prevented and that each of us is responsible for our own health and .safety We also strive to actively adopt practices to protect our own health and safety and foster a culture of raising mutual .awareness Hitachi Group Health and Safety Policy Structure of the health and safety management system At ,Hitachi under the direction of the Chief Human Resources (Officer ,)CHRO the Global Safety and Health Management Division at the headquarters oversees the wide-Group health and safety management .system The division is responsible for formulating and implementing strategies for health and safety ,initiatives setting targets and wide-Group KPIs and monitoring the progress of .initiatives As part of these ,efforts a bimonthly Health and Safety Leaders Meeting is ,held bringing together officers in charge of health and safety at each Group company and the health and safety manager of each division to share policies and review progress on health and safety .initiatives The Senior Executive Committee receives reports and discusses the number of incidents and responses to health and safety ,risks the results of which are reported to the Board of .Directors Each business ,site plant and other location holds a monthly Structure of the health and safety management system Health and safety Health and Safety Committee Meeting with the participation of management and .employees During these ,meetings the committee analyzes the causes of accidents and workplace ,incidents discusses response ,measures reviews measures based on the status of employees on sick leave and shares relevant .information In the event of a serious accident or ,disaster the Global Safety and Health Management Division becomes involved ,directly as ,appropriate to support root cause analysis and improvement measures for corrective action and preventing .recurrence In ,Japan the Hitachi Workers Union also participates in the Health and Safety ,Committee reflecting s’Hitachi commitment to engage in management-employee cooperation for improving health and .safety Hitachi continuously improves the health and safety management system by analyzing the factors behind incidents and implementing measures to prevent ,recurrence sharing best ,practices and conducting .training As a result of these ,efforts we have obtained 45001ISO and other international certifications at multiple .locations management-Labor cooperation toward improving health and safety levels deliberate/Report Hitachi Group activities results/initiatives/strategies/policies Monitor ,KPIs risk ,assessment and activities/measures for major incidents Share activities /strategies/policies initiatives in each Business (Unit /(BU Group company Report ,KPIs risk ,assessment major incidents and results of activities Group/BUs companies Global Safety and Health Management Division Attended by health and safety managers and executive (officers ,CHRO .etc from) each Group/BU company Health and Safety Leaders Meeting Business factories/site in Japan and abroad ,Hitachi .Ltd headquarters Senior Executive Committee Audit Committee communication/Instructions of Hitachi Group activities initiatives/strategies/policies Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 098
Global health and safety targets Hitachi is committed to creating ,safe free-incident and healthy workplaces by eliminating serious incidents and fostering a strong safety .culture Our aspiration for health and safety in 2035 is to prioritize health and safety above all and achieve a globally level-top safe .environment In line with our sustainability ,strategy ,PLEDGES we have set targets of zero fatal ,incidents including ,contractors and a 1TRIFR of 0.1 or lower by fiscal 2027 and are advancing initiatives to achieve .them Fatal incidents including those involving contractors and TRIFR have been trending downward over the past three years as a Key initiatives in health and safety To achieve targets for fiscal 2027, Hitachi has identified five key elements of health and safety—safety culture and ,leadership communication and ,engagement risk ,management governance and and—competency is advancing initiatives based on these .elements Safety targets and (results Hitachi (Group Key initiatives for fiscal 2027–2025 Trend in fatal incidents and total recordable injury frequency rate (TRIFR( 1 Lost Time Injury Frequency (Rate number of recordable injuries per 200,000 working (hours result of our ongoing .efforts ,However both increased in fiscal 2025. Through our ,analysis we confirmed that there is room for improvement in risk assessments and risk mitigation measures for risk-high 2.activities In light of these ,challenges we are strengthening our efforts to enhance risk assessments and further embed a culture of .safety ,Specifically we are introducing risk assessment support systems that utilize AI to prevent risks from being .overlooked At the same ,time we are clarifying the competency requirements for risk assessment practitioners to reduce assessment variability and improve consistency in .judgment 1 Total Recordable Injury Frequency (Rate number of recordable injuries per 200,000 work (hours (2* 1 electric) (shocks high (,)voltage 2 work) at (,height 3 industrial) (,vehicles 4 heavy) (,lifting 5 getting) caught in or between (,objects 6 confined) (,space 7 toxic) ,gases (8) fires and explosions KPI 2021FY results 2022FY results 2023FY results 2024FY results 2025FY results 2027FY targets Fatal incidents including( (contractors 2 cases including( 1 case at (contractors 5 cases including( 2 cases at (contractors 4 cases including( 4 cases at (contractors 2 cases including( 0 cases at (contractors 4 cases including( 1 case at (contractors 0 cases per year Total recordable injury frequency rate (TRIFR( 0.27 0.26 0.16 0.13 0.15 0.1 0 1 2 3 4 5 6 0.0 0.1 0.2 0.3 0.4 2021FY 2022FY 2023FY 2024FY 2025FY 2 5 4 2 4 0.11 0.10 0.07 0.05 0.27 0.26 0.16 0.13 0.07 0.15 Number of fatal incidents 1*LTIFR (TRIFR for (reference Safety culture and leadership Strict• compliance with the Hitachi Group Health and Safety Policy Raise• safety awareness across the organization and close perception gaps between job levels through safety awareness surveys Address• common challenges across the Hitachi Group through the Global Health and Safety Steering (Committee One Hitachi (Approach Communication and engagement Foster• psychologically safe workplaces through enhanced communication initiatives Deploy• Group-cross communication ,programs such as house-in health and safety conventions and site-inter visits within BUs Risk management Support• qualitative improvements in risk assessment to eliminate serious incidents and reduce incident severity Institutionalize• early detection and monitoring practices to help reduce the incidence of mental health disorders Governance Standardize• health and safety practices in line with the Hitachi Group Health and Safety Management System including( performance evaluations via corporate ,audits ups-follow on management reviews and occupational health (initiatives Competency Develop• and deploy specialized training programs for risk assessment and incident ,investigation as well as qualification and competency requirements Improve• employee literacy in both mental and physical health through continuous education Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 099
Deployment and operation of the health and safety management system To raise the overall level of health and safety across the Group and to strengthen and correct risk management ,practices Hitachi has established the Hitachi Group Health and Safety Management System (Standards available in Japanese and ,)English which meet the requirements of ISO 45001. We deploy and operate this system across all business (units BU and) Group .companies To further enhance health and safety efforts ,wide-Group we have established and operate wide-Group ,guidelines including the Hitachi Group Risk Assessment Guidelines and the site-On Construction Safety Management (Guidelines available in ,Japanese ,English and .)Chinese These guidelines support a unified management system by providing health and safety procedures and rules tailored to business ,characteristics emergency response procedures and procedures for hazard identification and risk .assessment Risk assessment At ,Hitachi risk assessments are conducted in accordance with the Hitachi Group Risk Assessment ,Guidelines which align with the Hitachi Group Health and Safety Management System .Standards These assessments are carried out when introducing or modifying ,machinery changing ,processes or in response to ,incidents in order to mitigate .risks In ,particular to prevent serious incidents and reduce the lost time injury frequency (rate ,)LTIFR Hitachi emphasizes proper risk assessments for risk-high activities and implements standardized risk management practices across the .Group To ensure quality-high risk ,assessments it is essential to accurately identify hazards and develop effective mitigation .measures To support ,this we are working to improve the quality of risk assessments at each Group company and business ,site by leveraging AI and accumulated knowledge so that hazards can be appropriately identified and effective countermeasures can be planned and .implemented Internal audits and monitoring Hitachi reports annually to the Audit Committee on its health and safety ,policies plans and performance for review and .discussion Reports are also made at least once a year to the Senior Executive ,Committee meetings of the Group company presidents and other ,bodies about important issues such as fatal incidents and potentially serious .events The results of monitoring incidents requiring improvement in particular are also .reported In ,addition we established a system to conduct annual internal audits based on the Hitachi Group Health and Safety Management System .Standards In fiscal 2025, we conducted audits for six BUs and Group .companies These standards require each BU and Group company to supervise and manage health and safety activities across the domestic and international sites under their .jurisdiction To comply with these ,standards we have established and operate a tiered-three audit (system lines of .(defense :audits-Self• Conducted independently by each site Business• :audits Conducted by the health and safety departments of each BU or Group company for the sites under their control Corporate• :audits Conducted by the Global Safety and Health Management Division at headquarters for each BU and Group s’company health and safety department Through this multilayered audit ,framework Hitachi works to ,review evaluate and improve health and safety activities across its numerous sites .wide-Group Implementation of health and safety training To prevent ,incidents Hitachi provides a wide range of health and safety training for all executive officers and employees and fosters a culture of health and .safety For all ,employees we offer learning-e programs that are available at any ,time focused on health and .safety The same content is also used in annual training sessions for newly appointed managers and assistant managers to deepen their understanding of .safety 3,938 individuals participated in this training in fiscal 2025. For line ,managers safety officers and senior ,executives we offer person-in training programs with more specialized .content For ,example the Safety Instructor Development Program for Safety Personnel and Line Managers is designed to train instructors responsible for safety education at each BU and Group ,company with the aim of ensuring consistent implementation of wideGroup safety .initiatives In ,addition we conduct executive training focused on safety for senior executives at each BU and Group company to reinforce their awareness of their roles and responsibilities as leaders in building safe .workplaces ,Moreover after executive officers complete ,training we also evaluate changes in awareness and behavior through one-on-one interviews with external .consultants Beyond these wide-Group ,programs each BU and Group company implements training tailored to their specific risk profiles to advance health and safety .education This includes distributing work guidelines and procedures relating to business and .industry We also conduct focused-safety training at each organizational ,level as well as education and drills tailored to each organization and business ,type for line managers and safety staff and for workers engaged in specific hazardous activities in the .field We provide individual guidance to new hires and temporary workers in ,particular as they are at a higher risk of .injury We perform this training through job-the-on training to increase awareness and understanding of work procedures and dangers before engaging in .work Number of participants in specialized safety training by grade Ensuring the health and safety of contractors Hitachi has set a target of zero fatal ,incidents including those involving .contractors At the same ,time preventing incidents involving contractors remains a key ,challenge particularly in ,construction installation and service and maintenance work conducted .site-off To address this ,challenge we are strengthening our safety management .systems ,Specifically we revised the site-On Construction Safety Management Guidelines in fiscal 2024 and have expanded a wide-Group integrated 2021FY 2022FY 2023FY 2024FY 2025FY Management executives (training BU ,CEOs Group company ,presidents (.etc 138 173 25 93 71 Safety instructor development program for safety personnel and line managers
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1* Rate of positive responses to questions regarding wellbeing related to health and (safety measured across seven ,categories including belief that the company takes steps to ensure employee physical and mental ,being-well employee works with a sense of ,fulfillment employee has a person with whom they can speak ,freely employee can freely express their (emotions 2* Percentage of employees who took seven or more consecutive days of sick leave or a leave of absence due to a mental (illness Number of cases of sick leave or leave of absence due to a mental illness ÷ average monthly number of employees × (100 3* Percentage of employees who took seven or more consecutive days of sick leave or a leave of absence due to a physical (illness Number of cases of sick leave or leave of absence due to a physical illness ÷ average monthly number of employees × (100 safety management framework that includes contractors to enhance safety standards at .worksites The revised guidelines stipulate a systematic approach to contractor ,selection including preliminary (assessments screeningpre of) safety records and ,risks as well as competency ,assessments safety management by ordering party and operational workflows from the planning stage through project .completion In ,addition our contracts require compliance with the site-On Construction Safety Management ,Guidelines and we operate practical safety management processes across the Group that are aligned with actual business .practices In fiscal 2025, we placed particular emphasis on ensuring these requirements were firmly embedded at worksites and promoted the sharing of insights and risk information accumulated across .businesses At the workplace ,level in addition to orientation training to ensure awareness of safety rules and emergency ,procedures we strengthened health and safety training for contractors and increased both the quality and frequency of health and safety .patrols Health and safety professionals conduct regular site-on inspections to point out areas of risk and provide guidance on .improvements At the same ,time we work to embed a collaborative safety culture by sharing best practices among contractors and recognizing outstanding examples through .awards ,Furthermore with regard to contractor ,management we conduct audits to verify that operations are being carried out in accordance with ,guidelines and we gain an understanding of ground-the-on operations to drive continuous .improvement In fiscal 2025, we incorporated the issues and insights identified through audits to step up the improvement cycle toward raising the quality of guideline .implementation Results and progress regarding these initiatives are regularly reported and shared through our internal health and safety management .process In ,addition Hitachi clearly defines a health and safety code of conduct for contractors and procurement partners in the Hitachi Group Sustainable Procurement .Guidelines These guidelines establish requirements for ensuring occupational safety and ,health properly managing hazardous ,work and conducting safety ,training thereby promoting safety awareness throughout the value .chain By strengthening collaboration with ,contractors we are helping to ensure a safe and secure value .chain Hitachi Group Sustainable Procurement Guidelines Addressing mental health Hitachi recognizes the importance of both led-company care provided through the workplace and by ,managers and care-self by ,employees and promotes initiatives tailored to .each Through led-company care ,initiatives we help workplace colleagues and managers recognize signs of physical and mental distress at an early stage and connect the employee with appropriate .support At the same ,time we support employees in recognizing stress and changes in their own physical and mental condition so they can take preventive action and respond .appropriately We will continue to promote proactive mental health measures to address stress and mental health challenges associated with changes in work styles and working .environments Addressing physical health Hitachi regards maintaining good physical health and enabling employees to continue working in a healthy and energetic manner as an important foundation for fulfilling life and sustainable .growth To support ,this we help employees gain an accurate understanding of their own health status and take a proactive approach to prevention and .improvement We also provide an environment that supports improvement in lifestyle ,habits disease prevention and the prevention of disease ,progression as well as balancing medical treatments with .work ,Furthermore we address global health ,challenges including measures to combat infectious ,diseases and promote environments where employees and their families work and live safely and with peace of .mind Health targets and results Initiatives to improve employee health Hitachi regards improving employees wellbeing as an important foundation for sustainable .growth Across the ,Group we are working to create workplaces where employees can work safely and maintain both mental and physical .wellbeing To support ,this we use the annual global employee survey to assess employee wellbeing ,and based on the ,results promote initiatives addressing both mental and physical .health Looking ahead to fiscal 2027, we have established the wellbeing score related to health and safety from our global employee ,survey as well as the mental and physical related-health absence ,rates as key .KPIs We strive to improve employee wellbeing through continuous improvements in these .areas Health Management Strategy Map Enhancing employee engagement KPI Reporting boundary 2023FY results 2024FY results 2025FY results 2027FY targets Wellbeing 1score Hitachi Group - 69.4 70.6 75 points Mental absence 2rate Hitachi Group companies in Japan 0.85 0.90 0.95 0.86 or lower Physical absence 3*rate Hitachi Group companies in Japan - - 0.18 0.19 or lower Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 101
Medical exam and screening attendance rates Hitachi( Group companies in (Japan In ,Japan Hitachi has established a system that offers financial support for medical exams by the Health Insurance .Society We encourage employees aged 35 and over to receive general physical and other exams specified under ,law as well as targeted screening based on ,age for the early diagnosis and treatment of relatedlifestyle ,diseases ,cancer .etc At ,Hitachi Health Insurance Societies in Japan pursue policies to prevent and control conditions such as ,diabetes cerebral strokes and myocardial .infarctions In fiscal 2025, we offered three smoking cessation programs to encourage smoking cessation for employees working at ,home the ,Minchare the Fully Online Smoking Cessation Program and the Easy Smoking Cessation .Program A total of 826 individuals participated in the ,program and 52.3%, or 432 ,people quit far—smoking more than results from outpatient smoking cessation .clinics Promoting Health-Collabo ,Hitachi .Ltd and the Group companies in Japan carry out a variety of health improvement ,initiatives including 1Health-Collabo , according to their respective .characteristics While making full use of the services provided by the Hitachi Health Insurance 2Society to maintain and improve employee ,health we also work toward obtaining certification under the Health and Productivity Management Organization Recognition Program of the Ministry of ,Economy Trade and .Industry In ,addition we evaluate health promotion initiatives on an annual ,basis giving recognition to the most accomplished companies and business sites within the Group to heighten motivation to pursue such .initiatives 1* A concept involving ,insurers such as the Health Insurance ,Society who work proactively with business owners to establish a clear division of labor and form positive working environments that prevent illness and improve the health of insured (persons employees and their families effectively) and efficiently 2* Hitachi Group employees and their families are members of this ,organization which is one of s’Japan largest health insurance .associations As of the end of March 2026, there were 136 participating corporations and 298,186 insured (persons 159,014 members and 139,172 (dependents 1* Men and women aged 35 and older 2 Men and women aged 30 and older 3 Women aged 30 and older 4 Women aged 25 and older 1 Employees aged 35 and (over results of specific medical (examinations Smoking 1rate (trend Hitachi Group in (Japan Medical exam and screening attendance rates Hitachi( Group in (Japan Number of Hitachi Health Insurance Society member corporations certified under the Health and Productivity Management tionOrganiza Recognition (Program Hitachi Group in (Japan (FY( General◆ physical 1exam ▼ Lung cancer 1screening Intestinal● cancer 2screening ● Stomach cancer 2screening Breast■ cancer 3screening ▲ Uterine cancer 4*screening (%) 0 40.0 60.0 80.0 100.0 39.3 57.1 80.6 85.5 98.0 40.9 58.4 82.4 92.8 87.3 86.4 85.5 98.7 97.2 2021 2022 2023 2025 61.0 42.1 ● ● ● 92.8 86.2 85.2 97.4 ◆ ◆ ◆ ◆ 60.8 ■ ■ ■ ■ 41.9 ▲ ▲ ▲ ▲ ● ● ● ● ● ▼ ▼ ▼ ▼ 97.2 92.4 85.5 84.5 ◆ 60.1 ■ 47.5 ▲ ●● ▼ 84.7 86.5 2024 (FY( 0 10.0 20.0 30.0 40.0 27.6 27.0 26.3 24.6 24.1 2021 2022 2023 2025 (%) 2024 2021FY 2022FY 2023FY 2024FY 2025FY Large companies 75/87 companies Including( four with White“ 500 (status” 78/80 companies Including( four with White“ 500 (status” 75/78 companies Including( seven with White“ 500 (status” 65/65 companies Including( nine with White“ 500 (status” 65/66 companies Including( 11 with White“ 500 (status” -Small and sized-medium companies 66/70 companies None( “with Bright 500 (status” 65/66 companies Including( two with Bright“ 500 (status” 61/62 companies Including( three with Bright“ 500 (status” 43/43 companies Including( three with Bright” 500 status” and two “with NextBright 1000 (status” 39/39 companies Including( one with Bright” 500 status” and three “with NextBright 1000 (status” Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 102
Health promotion initiatives for employees and their families In ,Japan Hitachi supports healthy behaviors among employees and their families through MY HEALTH ,WEB a portal site operated by the Hitachi Health Insurance .Society More than 90% of employees are registered on the ,site and a variety of initiatives are ,provided including incentive points and access to health examination results and other related-health .information For ,example we introduced Risk ,Simulator a service that predicts the risk of hospitalization for eight major diseases based on the health examination results of employees and their ,families with approximately 10,000 users in fiscal 2025. We also offer a walking program called ,Walkfes conducting two campaigns in spring and fall over a combined period of approximately 100 ,days with around 50,000 participants in each .campaign ,Additionally to encourage employees and their families to proactively undergo health ,examinations we provide a health examination reservation service through MY HEALTH .WEB To encourage spouses and other dependents to undergo health ,examinations we provide health information and health examination reservation services through a smartphone app in addition to MY HEALTH .WEB Approximately 37,000 people have been registered for this .service Addressing global health ,issues including infectious disease prevention Hitachi endeavors to prevent infectious disease among employees on overseas assignments and business .travelers To this ,end we provide information for employees posted overseas and business travelers regarding vaccinations for hepatitis ,A ,tetanus ,cholera .,etc according to the health conditions in the destination .country We offer vaccinations at house-in health management centers or outside medical .institutions We also post information on the Hitachi Group intranet to help travelers and their families to live ,safely providing warnings for personnel living overseas about infectious diseases including ,malaria one of the three major infectious diseases in the .world Information includes descriptions of ,symptoms prevention and what to do if one contracts a .disease ,Furthermore in ,Japan the Health Insurance Society offers an incentive point system to reward influenza vaccine ,recipients including employee family ,members with the aim of preventing influenza outbreaks in the .workplace ,Moreover as an initiative to prevent contracting ,influenza we recommend employees get vaccinated prior to the flu .season Nearly 65,000 employees and their families take advantage of the program every .year Health and safety considerations for nuclear power businesses Since 2008, Hitachi has worked with the s’world leading nuclear power plant vendors to develop the Nuclear Power Plant and Reactor Exporters Principles’ of ,Conduct a set of voluntary principles established by the private sector for exports of nuclear power plants and .reactors The Principles of ,Conduct which were adopted by all vendors involved in their ,development were formally announced on September 15, 2011, and Hitachi has expressed its commitment to comply with .them Nuclear Power Plant and Reactor Exporters Principles’ of Conduct Support for radiation workers For workers engaged in related-radiation tasks at nuclear power plants in ,Japan Hitachi uses the Hitachi Radiation Control System to centrally manage radiation ,exposure including that of partner company .personnel Hitachi has established our own internal radiation exposure ,standards which are more stringent than those required by Japanese ,law and manages exposure appropriately based on these .standards In terms of health ,management in addition to legally mandated periodic health ,checkups Hitachi supports employee being-well through site-on health consultations with house-in occupational .physicians To ensure safety in related-radiation ,work employees receive foundational training on radiation and safety before starting .tasks Practical training is also provided through immersive programs such as experiential safety training and virtual (reality (VR ,simulations helping reinforce knowledge and raise safety awareness to ensure safe work .practices Initiatives to reduce radioactive waste To help make nuclear power a safer and more sustainable energy source and improve its social ,acceptability Hitachi is advancing the development of fast reactors and fuel cycle .technologies These efforts aim to promote more efficient use of resources and reduce the environmental impact of radioactive .waste Fuel cycle Initiatives to enhance nuclear power plant safety Based on the lessons learned from the Fukushima Daiichi Nuclear Power Plant ,accident Hitachi is strengthening safety measures to ensure that existing nuclear power plants comply with new regulatory .standards ,Furthermore we are advancing the development of ,ABWR-HI an innovative water-light reactor incorporating enhanced safety features from the design ,stage with the aim of achieving both enhanced safety and reduced environmental .impact Innovative new water-light reactor ABWR-HI Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 103
Approach to quality assurance activities Hitachi was founded on the founding spirits of ,Harmony Sincerity and Pioneering .Spirit Guided by the values of adhering to the basics and ,ethics and placing right and wrong before profit and ,loss Hitachi is firmly committed to the principle of quality and reliability .first Trust in the quality of our products and systems is ,paramount we prioritize (Safety S >> (Quality) Q > (Delivery) (D < (Cost ,)C placing the highest importance on safety and .quality In the event of an ,incident it is crucial to thoroughly analyze ,failure learn from ,it and apply to advance our technology and prevent .recurrence To gather insights from ,failures Hitachi has held review sessions for product known—incidents as HIROI-OCHIBO since)—gleaning( the ,s1950 with the aim to prevent ,recurrence avoid ,incidents and promote technological .advancement As stipulated in the Hitachi Group Code of Ethics and Business ,Conduct we aim to provide products and services that meet the needs and requirements of our ,customers complying with relevant laws and standards and ensuring quality and safety by setting additional standards of our own where .necessary Our basic principles for quality assurance are also in the Quality Assurance Standards within our company ,rules and are communicated to .employees Hitachi Group Code of Ethics and Business Conduct Quality assurance structure Hitachi places the highest priority on customer safety and trust in our quality assurance structure and positions quality assurance divisions within business (units BUs and) Group companies as organizations independent from ,design manufacturing and business .divisions We also establish clear reporting lines and ensure close information sharing between quality assurance divisions at each company and the corporate quality assurance group at .headquarters Giving greater authority to the corporate quality assurance group at headquarters also allows us to further strengthen quality assurance governance across the .Group When a product incident occurs in the Hitachi ,Group the quality Quality assurance activities HIROI-OCHIBO review sessions for product incidents Based on our approach that prevention is the essence of quality ,assurance Hitachi conducts HIROI-OCHIBO review sessions on product incidents as part of our efforts to prevent incidents before they .occur We hold the sessions for individual business divisions every six months in .principle These sessions take place from the s’customer perspective and share the impact of the incident while identifying not only the technical ,causes but also the business processes that led to the incident and the psychological and behavioral factors affecting the individuals .involved We have set a target of 100% executive (participation including Hitachi executives and business site senior management in) HIROIOCHIBO sessions and collect annual participation data to strengthen efforts to prevent product .incidents Executive participation in the HIROI-OCHIBO review sessions conducted in fiscal 2025 was 100%. Quality enhancement activities related to ,service software and security Our software and services are areas that continue to grow in .scale To strengthen quality in these ,areas we ensure that our product divisions incorporate the software development capabilities and expertise that our solutions divisions .possess In doing ,so we strive to ensure higher levels of reliability in increasingly sophisticated and complex .software ,Furthermore we are improving and incorporating secure development and maintenance processes for our products and services to address the increasing security risks arising from network connectivity and .openness Technical law compliance activities Hitachi fosters internal awareness of product ,regulations laws amendments and enforcement dates in each country and .region We also work to clarify regulations with specific-product regulatory ,maps pursue regulatory compliance and implement continuous process improvements under our product compliance management .system Quality and product safety assurance division in the relevant BU or Group company reports the incident to the corporate quality assurance .group Weekly reports are provided to management ,executives including the Executive ,Chairman and the President & CEO at ,Hitachi .Ltd In the event of a serious ,incident the quality assurance division promptly reports to ,management including the Executive ,Chairman and the President & CEO at ,Hitachi .Ltd These response procedures are reviewed every six months and improved as .necessary Quality assurance structure Global quality assurance structure Hitachi operates globally through business portfolio reforms and .A&M To deliver Hitachi Quality to customers around the world in line with our corporate ,philosophy we are strengthening and embedding a global quality assurance .structure ,Specifically we promote s’Hitachi basic principles of quality assurance globally and establish a framework for receiving incident reports from overseas Group .companies We also establish international reporting lines independent of the business ,divisions conduct rigorous fail/pass assessments through quality assurance divisions and practice ,HIROIOCHIBO consistent with those in .Japan Executive ,Chairman President & CEO Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 104
Pursuit of thorough safety design and safety monitoring for products and services When developing products and ,services Hitachi makes the safety of customer ,lives health and property the top priority in product .design We strive to ensure safety at every ,step from development and production to sales and .maintenance Safety is ensured through risk reduction according to the following order of :priority (design fundamental safety ,)design protective measures safeguards( and) (information precautions for .)use ,Also we conduct risk assessments from a wide perspective in collaboration with related BUs and research .laboratories International standards certification for our quality management system s’Hitachi quality management system has acquired certification from external certifying .organizations We are committed to effectively applying the findings of party-third evaluations to improve our business .operations Based on these ,efforts we have obtained quality management system certification globally for each of our product .categories As of the end of March 2026, the status of major certifications is as .follows Certification status may change due to various ,factors including business ,globalization the establishment or relocation of sites and A&M .activity To this External audits concerning product quality assurance Hitachi commissions regular external audits of product safety for certified products and other .products Relevant logos indicate products that have received .certification We also undergo regular external audits for products following certification to confirm ongoing quality .standards :Mark-S Indicates party-third certification for electronics based on a certification system administered by the Steering Council of Safety Certification for Electrical and Electronic Appliances and Parts of (Japan (SCEA Frequency( of external :audits 1 year/time Audit; :scope Product and factory quality (control UL :Mark Indicates compliance with safety standards established by UL ,Solutions a safety certification company Frequency( of external :audits 4 year/times Audit; :scope (Products Quality and reliability education Hitachi provides education and training on quality and reliability tailored to different employee groups on a regular .basis Topics cover a wide range of ,areas including the safety of products and .services In addition to offering learning-e courses on s’Hitachi quality ,philosophy which are available at any time for all ,employees we also feature quality assurance as a topic for specific-position and oriented-executive ,training as well as new employee .education Hitachi also holds various basic and specialized technical courses related to the reliability of its :Note Survey results are as of the end of March 2026 Use of AI in quality assurance operations Hitachi leverages the knowledge and expertise we have accumulated over many years to advance and improve the efficiency of quality assurance operations through the use of .AI We aim to enhance quality and operational efficiency by using AI as a complementary tool while continuing to place human judgment and experience at the center of .operations Omika Works conducted verification testing on the use of AI trained on the experience and expertise of skilled personnel to support quality assessments and ,analysis as well as responses to field issues and .inquiries The site now operates using this .AI The AI supports the site in searching and analyzing past ,cases as well as preparing .reports As a ,result Omika Works has improved shipping quality and significantly shortened response times while reducing reliance on the experience of personnel in .charge The use of skilled s’personnel tacit knowledge has also proven effective in facilitating the transfer of .expertise Hitachi will continue advancing quality assurance by combining the strengths of AI and human .expertise Management system certification ,end we conduct annual surveys of the number of certified sites and the number of sites planning to obtain .certification Enhancing S >> Q > D > C training Hitachi provides training for employees involved in product and service safety or quality to increase awareness and understanding of the s’company operational :priority Safety S( >> (Quality) Q > ) (Delivery D > (Cost) .)C This training reinforces the importance of safety and quality among .employees To ensure relevance considering changes in ,products services and the business ,environment we review and update training materials every three .years In fiscal 2025, we revised the C>D>Q>>S training materials and plan to begin training at sites wide-world in fiscal 2026. products and services every .year Each BU also conducts specialized technical courses regarding ,manufacturing quality assurance and .maintenance Quality and reliability education Area Name of standard Number of certified sites Overall quality ISO 9001 1,062 sites Railway business TS/ISO 22163 18 sites Medical devices ISO 13485 24 sites Training program Target Purpose Timing s’Hitachi quality philosophy All employees To deepen understanding of s’Hitachi basic approach to quality and the initiatives that put this approach into practice Ongoing New employee training New employees Upon joining the company Training for newly appointed managers Newly appointed managers Annually S >> Q > D > C training Employees involved in product and service safety or quality To instill s’Hitachi operational priority of S >> Q > D > C Annually Specialized technical training Employees involved in product and service safety or quality Practical and technical training on product safety and quality Annually Executive candidate training Future executive leaders To deepen understanding of s’Hitachi quality philosophy Annually Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 105
Response to product safety incidents In the event of an ,incident the quality assurance division in the BU or Group company in charge of the product acts swiftly to resolve the .problem The responsible divisions ensure product safety by not only investigating the technical ,causes but also thoroughly discussing the ,process organizational structure and underlying factors leading up to the ,occurrence along with ways to prevent .recurrence In the case of a severe ,incident we provide prompt status reports to top ,management issue reports to government agencies in line with legal requirements and provide relevant information disclosure to customers on our website and through other communication .channels At the same ,time we have a structure in place to ensure that fast and appropriate action is implemented at all companies across the .Group If we determine that retroactive action is ,necessary we notify customers via newspaper advertisements and websites to carry out the necessary repair or replacement .program Response procedure for product incidents Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 106
Doing business ,ethically honestly and transparently Hitachi believes that business ethics and compliance are the foundation of the ,company and fosters ,fair transparent and honest .management We strive to create an open environment in which every employee acts ethically and maximizes .performance In addition to ensuring compliance with laws and ,regulations we require not only employees but also business partners to understand and adhere to the Hitachi Group Code of Ethics and Business (Conduct “the ,”)Code which serves as the s’Group formal policy on business ,ethics including the prevention of bribery and ,corruption as well as various related policies and .rules We promote a culture of speaking up to ensure timely reporting and action in the event of an actual or suspected violation of laws and regulations or the .Code The Hitachi Group Identity embodies our ,Mission the Hitachi Founding ,Spirit and the Hitachi Group .Vision We believe this identity is an important part of the Hitachi s’Group commitment to business ethics and .compliance Through the One Hitachi Compliance ,Program which aims to strengthen compliance throughout the Group and organization ,globally Hitachi fosters a corporate culture in which every employee understands what is expected of them and acts with integrity and .fairness ,Furthermore to ensure thorough business ethics and compliance throughout the value ,chain we have established s’Hitachi Expectations of Business Partners as principles that our business (partners including procurement ,partners intermediaries involved in s’Hitachi ,business agents and contractors should) .uphold In this ,way we are working to promote understanding of s’Hitachi commitment to ethical business ,activities respect for human rights and .more Hitachi Group Code of Ethics and Business Conduct s’Hitachi Expectations of Business Partners bribery-Anti and corruption-anti Compliance with the Hitachi Group Code of Ethics and Business Conduct Hitachi has established the Hitachi Group Code of Ethics and Business Conduct as the s’Group policy on business ,ethics and it applies to the entire .Group All (employees including temporary and time-part employees are) required to complete annual business ethics and compliance training and to formally indicate by their signature that they will comply with the policies embedded in the .code These policies include business ,ethics conflicts of ,interest bribery-anti and ,corruption-anti fair and free ,competition ,sustainability human ,rights respect for diversity and individuality and community .involvement The Code has been translated into more than 20 languages and is shared with ,executives employees and all relevant stakeholders on s’Hitachi website and on the intranets of ,Hitachi .Ltd and other Group .companies The compliance division regularly reviews and updates the Code to strengthen our ethical standards and to ensure its continued effectiveness in response to changes in the external ,environment including legislative and regulatory .updates As part of these ,efforts we partially revised the content in fiscal 2025 to reflect the latest initiatives and ensure alignment with actual .practices This included updates to the tree-decision flow for making appropriate judgments and the process flow following the submission of a report through the whistleblowing system in order to provide more clarity regarding these process .flows We also reported these changes to the Senior Executive ,Committee as well as the Audit Committee members who are executive-non .directors Business ethics and compliance Ethics and compliance structure Under the leadership of the Chief Compliance (Officer ,(CCO Hitachi conducts the One Hitachi Compliance ,Program in which the Hitachi Group Code of Ethics and Business Conduct serves as the core operating ,guidelines to strengthen business ethics and compliance throughout the .Group The Senior Executive Committee deliberates and makes decisions on important Compliance .issues These issues are submitted to the Board of Directors as .needed In ,addition the CCO regularly reports important compliance ,matters including corruption ,issues to the Senior Executive Committee and Audit Committee members who are executivenon .directors The advice and counsel received by the CCO is incorporated in the planning and operation of compliance initiatives and the CCO reports back on previous .instructions For ,example the creation of a specific-compliance audit team was advised by the members of the Audit Committee in fiscal 2023. The compliance division created the recommended team and reports back on compliance audits conducted on a regular .schedule ,Additionally Hitachi appointed Regional Compliance Managers in ,Japan ,China ,Taiwan South ,Korea ,Oceania ,Europe the Middle East and (Africa ,)EMEA North ,America ,India South ,Asia Southeast Asia and South America to support regional business (units ,)BUs Group companies and other entities to meet global and local compliance and regulatory .requirements Regional Compliance Managers also play a role in facilitating collaboration across the .Group ,Furthermore approximately 700 selected Heads of Ethics and ,Compliance Compliance Managers and Persons in Charge of Compliance and others from BUs and Group companies around the globe work to streamline business ethics standards and drive the efficiency and effectiveness of the One Hitachi Compliance .Program These people are key stakeholders in promoting ethics awareness among management and .employees They coach colleagues through ethical ,dilemmas raise concerns and potential risks to their legal division or ,Hitachi s’.Ltd compliance division and conduct investigations when .appropriate Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 107
The compliance division and Regional Compliance Managers hold regular meetings with global and local Heads of Ethics and ,Compliance Compliance Managers and Persons in Charge of Compliance and ,others to provide updates on ethics and compliance ,initiatives ,trends and to provide additional resources to support fulfillment of their respective .roles Ethics and compliance structure Global target for ethics and compliance Hitachi encourages each employee to apply high ethical standards in their day-to-day work and strengthens its business ethics and compliance .culture As part of these ,efforts Hitachi has established a KPI based on the results of an awareness assessment on corporate ethics and compliance conducted by ,Ethisphere a based.-S.U research institute specializing in global business .ethics Under the Hitachi Group sustainability strategy ,PLEDGES we have set a target of achieving a score of 85 by fiscal 2027 based on relevant benchmarks and have been implementing a range of ,initiatives including the .following Enhance• the effectiveness and trust of the whistleblowing system by shortening the investigation ,period thereby enabling timely responses and early detection and remediation of misconduct and concerns Foster• workplace discussions and communication with supervisors to encourage the sharing of ethical issues Utilize• the Global Compliance Platform to centralize rules and promote understanding and adherence As a result of these ,efforts the score has improved year over ,year reaching 82.4 in fiscal 2025. We report progress to the Senior Executive Committee and the Audit Committee members who are executive-non ,directors and will continue to pursue further improvements going .forward Initiatives to deter compliance-non Hitachi implements comprehensive initiatives to deter compliancenon and to reduce exposure to unethical .opportunities These include conducting training on business ethics and ,compliance implementing specific-compliance audits and conducting due diligence of third .parties In ,addition Hitachi strengthens its up-speak culture and enhances the Global Compliance (Hotline whistleblowing ,)system with a clear commitment to .retaliation-non Through these ,measures Hitachi promotes early detection and prevention of potential misconduct and minimizes opportunities for unethical behavior to .arise Business ethics and compliance training To foster shared values and encourage higher levels of compliance awareness in the ,Group Hitachi conducts annual business ethics and compliance training for all (employees including temporary and time-part employees based) on the Hitachi Group Code of Ethics and Business Conduct and internal .rules This training covers business ,ethics bribery-anti and ,corruption-anti ,gifts travel and ,entertainment money-anti laundering ,laws ,fraud fair ,competition information owned by ,others data ,protection conflicts of ,interest reporting and retaliation-non and the Hitachi Global Compliance .Hotline After completing the ,training participants pledge to comply with the Hitachi Group Code of Ethics and Business .Conduct In fiscal 2025, the training was completed by a total of 316,164 employees (wide-Group including temporary and time-part ,)employees representing a participation rate of 96.9% during the designated training period beginning in October in conjunction with Hitachi Group Ethics & Compliance .Month The training remains available beyond the training ,period and employees are encouraged to complete it on an ongoing .basis In ,addition we conducted data analysis on the level of understanding among training participants by region and job ,category as well as the time required to complete ,training to identify areas of risk or the need for additional .training Additional training is also provided for employees new to ,Hitachi and appointed-newly .managers ,Furthermore Hitachi provides an Executive Ethics and Compliance Briefing for Members of the Board of Directors and Newly Appointed ,Directors led by the Chief Compliance (Officer CCO and) external .experts In fiscal 2025, the briefing covered several key ,topics such as fostering a culture of ethical ,behavior addressing compliance challenges and Chief Compliance Officer Support by Heads of Ethics region and Compliance Compliance Managers Persons in Charge of Compliance ,India South Asia and Southeast Asia South America ,China ,Taiwan South Korea and Oceania Japan Regional Compliance Managers ,BUs Group companies North America EMEA Board of Directors Regular reports to the Audit Committee members Senior Executive Committee Audit Committee members KPI 2023FY score 2024FY score 2025FY score 2027FY target Ethical culture and compliance perceptions assessment score 76.5 79.8 82.4 85.0 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 108
reviewing industry best ,practices benchmarks and the implications of key regulatory .changes Business ethics and compliance training Ethics and compliance audits and risk assessments Ethics and compliance audits and risk assessments ,Hitachi s’.Ltd Internal Auditing Office conducts internal ,audits targeting areas such as ,bribery-anti corruption-anti and competition law ,compliance of all BUs and the Group companies every four .years In ,addition internal audits are carried out by the audit or compliance department of each BU and the Group .company ,Furthermore ,Hitachi s’.Ltd Compliance Audit Team adopts a based-risk approach and launched specific-compliance audits targeting ,bribery-anti corruption-anti and competition law compliance at Group companies identified as relatively .risk-high In fiscal 2025, audits were conducted at nine Group .companies These audits are conducted using a structured PDCA cycle to support continuous improvement of the compliance .program To promote the early identification of compliance risks and the streamlining and acceleration of response ,efforts the compliance division is implementing a developed verification-self .tool This tool enables the collection and analysis of data related to compliance risks at each business unit and the Group .company At the regional ,levels each Regional Compliance Manager continues to strengthen cooperation with Group companies in their respective regions and maintain a framework to conduct risk ,assessment supporting each company in identifying risks and implementing appropriate .measures In ,addition in fiscal 2025, we launched the Hitachi Group Ethics and Compliance Risk Management .Framework The Framework establishes a ,consistent wide-Group approach to ,identifying assessing and managing Ethics & Compliance ,risks clarifies roles and responsibilities according to the Three Lines ,Model defines key Ethics & Compliance risk categories and provides practical tools to support effective implementation of the Framework across .Hitachi Program Purpose Timing Business ethics and compliance training for all employees To foster shared values and to encourage higher levels of compliance awareness Annually Training for new employees To ensure a complete understanding of the Hitachi Group Code of Ethics and Business Conduct Upon joining the company Training for newly appointed managers Annually Ethics and compliance board briefing To explain benchmarks and improvement measures to ,directors and seek their advice on compliance operations Annually Type Target Scope Timing Internal Audits All BUs and the Group companies Audits• conducted in accordance with the Audit s’Office schedule Review• of standard ,mechanisms such as compliance ,structures rules and processes Operational• checks of risk-high (items .,g.e entertainment expenses and interactions with (competitors Every four years SpecificCompliance Audits Group companies identified as relatively risk-high Audits• focus on selecting targets based on a based-risk approach depth-In• investigations that include public-non information obtained through external ,resources and more effective interviews conducted in the local language Selected on a based-risk basis Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 109
Due diligence on business partners Hitachi conducts due diligence on the compliance aspects of its business partners in accordance with Hitachi Group Business Partner Compliance Due Diligence .Policy ,Specifically we have implemented an internal reputational due diligence program including the introduction of a party-third management system to identify reputational .risks Such reputational risks include direct or indirect involvement in ,bribery ,corruption human rights or labor rights ,violations money ,laundering environmental ,crimes violations of competition law or international trade ,restrictions such as sanctions and /import export controls and other factors related to potential business .partners This program promotes the creation of fair and sound partnerships by preventing Hitachi from engaging with parties that are likely to act in a manner inconsistent with s’Hitachi ethical culture and ensuring measures to reduce the risk of ,bribery corruption and other unethical .behavior Hitachi employs a system for conducting due diligence and creating due diligence reports through a platform from an external service ,provider and we have assigned several due diligence analysts to an internal global compliance .team The goal of this system is to improve and standardize business partner ,screening as well as to create and maintain ,records when initiating or renewing transactions with business partners .globally In ,addition we have published s’Hitachi Expectations of Business ,Partners which sets out s’Hitachi expectations for its business partners and emphasizes the importance of ethical business ,practices preventing ,bribery corruption and money ,laundering protecting human rights and maintaining fair and transparent business .practices As a guideline for ethical behavior in all business ,relationships it is also consistent with the Hitachi Group Code of Ethics and Business .Conduct s’Hitachi Expectations of Business Partners Strengthening our up-speak culture Hitachi believes that a up-speak where—culture employees are encouraged to raise concerns and feel confident that they can do so without fear of is—retaliation essential for the early detection and prevention of breaches of ethical and regulatory .expectations When an employee discovers an actual or suspected violation of ,laws ,regulations or the Hitachi Group Code of Ethics and Business ,Conduct or when employees have questions about business activities in ,general we encourage them to consult with or report the matter to their ,leaders the relevant department Human( ,Resources Compliance and ,)Legal or the Hitachi Global Compliance .Hotline ,Annually during the Hitachi Group Ethics & Compliance ,Month messages were delivered by the President & CEO as well as other Hitachi ,leaders emphasizing to all Hitachi Group employees the importance of speaking .up In fiscal 2025, Hitachi released a series of one-on-one ethics and compliance interview .videos These videos feature the CCO asking Hitachi leaders about their previous personal compliance ,challenges and aim to serve as examples of how employees can handle their compliance .challenges Hitachi Global Compliance Hotline Whistleblower( (System The Hitachi Global Compliance Hotline is a reporting channel that uses a whistleblowing system operated by a party-third organization and is available 24 hours a ,day seven days a week to Hitachi Group ,employees business partners and other .stakeholders To ensure that no one is treated ,unfairly anonymous reporting is permitted when ,legal and all information received is kept strictly confidential except where necessary to conduct an .investigation Consultation and reporting are ,available by free-toll calls or ,online for all matters involving violations of laws and ,regulations the Hitachi Group Code of Ethics and Business ,Conduct and violations of human rights including harassment and other .misconduct Phone numbers for the Hitachi Global Compliance Hotline are available for employees and other stakeholders to speak to a representative in their native .language The phone lines are staffed by specially trained party-third ,representatives with translators in approximately 50 .languages based-Web reporting is also .available Data supplied during a report is stored on secure servers maintained by the third party that administers the .hotline To address and resolve contacts with the Hitachi Global Compliance Hotline ,efficiently we assign inquiries to investigators based on area of .expertise After a confidential review of the ,concern the investigator determines whether the report requires an .investigation If an investigation is ,necessary appropriate investigative measures are .taken For any related-compliance concerns that are ,substantiated disciplinary actions may be .taken Discipline comes in many ,forms from warnings to suspensions or .termination ,Also when ,necessary monitoring is conducted for a certain period after the completion of the investigation to verify whether corrective actions are .effective Strengthening compliance practices across industries In fiscal 2025, the compliance division hosted the second annual roundtable for compliance professionals featuring 20 participating global companies based in .Japan The roundtable fosters ,collaboration knowledge sharing and strategic discussions to strengthen compliance practices across .industries s’World Most Ethical RCompanies In 2026, ,Hitachi .Ltd was recognized as one of the s’World Most Ethical Companies by® ,Ethisphere a .S.U research institute specializing in global corporate ,ethics marking its second consecutive year receiving this .recognition This prestigious award recognizes companies that demonstrate excellence in business ethics through an evaluation of over 240 proof points on practices that support robust ethics and ,compliance ,governance a culture of ,ethics environmental and social impact and initiatives that support the value .chain :Note “The s’World Most Ethical Companies “and” Ethisphere names” and marks are registered trademarks of Ethisphere .LLC Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 110
The CCO reports ,to and receives necessary instructions ,from the members of the Audit Committee on a quarterly basis regarding the number of cases ,reported ,trends .etc Serious incidents of noncompliance are immediately reported to the .CCO In fiscal Reporting and monitoring structure 2025, we received 1,950 reports from across the .Group We also concluded the processing of 1,788 (reports including reports that occurred in previous years during) fiscal 2025 where relatedcompliance issues were confirmed in 432 .cases Details of fiscal 2025 reports 1* Labor ,management travel ,expenses commuting ,costs .etc Hitachi Global Compliance Hotline Grievance mechanisms for human rights bribery-Anti and corruption-anti Hitachi has made it clear that we do not tolerate ,bribery ,kickbacks or any other corrupt behavior by employees or business ,partners or any conduct that violates the bribery-anti laws and regulations of countries and ,regions including the .S.U Foreign Corrupt Practices (Act .(FCPA To assist in making ,decisions we have established the Hitachi Group Code of Ethics and Business ,Conduct which includes provisions on bribery-anti and .corruption-anti Whenever such provisions are ,revised they are subject to approval by the Senior Executive Committee and reported to the Audit Committee members who are executive-non .directors In ,addition we have also established the Hitachi Group BriberyAnti and Corruption-Anti ,Policy as well as rules and guidelines related to the provision and acceptance of ,gifts entertainment and travel ,expenses as well as donations and political .contributions Under these ,policies when providing or accepting entertainment or ,gifts or making donations or political ,contributions executive officers and employees must not exceed the scope of actions permitted by bribery-anti laws and regulations and must comply with s’Hitachi internal .rules These policies indicate specific limits in terms of monetary value and the number of times that ,entertainment gifts and other arrangements may be provided to third .parties Hitachi policies also prohibit facilitation .payments These policies and guidelines clearly define what constitutes acceptable and unacceptable ,behavior enabling employees to make appropriate and consistent decisions in .practice In ,addition they establish clear requirements for prior ,approval documentation and keeping-record for activities such as the provision and acceptance of ,gifts entertainment and travel ,expenses as well as donations and political .contributions ,Furthermore Hitachi established the Hitachi Group Business Partner Due Diligence Policy covering business partner screening ,procedures and the Hitachi Group Conflicts of Interest Policy covering ,definition identification and management guidelines for conflicts of .interest As an additional effort to manage the risk of corrupt ,practices Hitachi has established and implemented procedures for screeningpre (of 1 the) provision and acceptance of ,gifts entertainment and travel (expenses 2; the) selection of business Answer Whistleblowers Report Hitachi Global Compliance Hotline Report Audit Committee members Chief Compliance (Officer (CCO Compliance divisions Supervise Report Supervise Investigations Responses Statistics analysis Categories HR 1*issues Harassment Financial Procurement Competition law Bribery Other Total Areas where whistleblowing cases occurred Americas 85 161 33 5 0 5 143 432 Europe 52 157 30 6 0 4 160 409 Middle East and North Africa 13 9 9 0 1 2 24 58 Sahara-Sub 0 1 1 0 0 0 7 9 APAC excluding( (Japan 35 61 28 5 17 17 128 277 Japan 112 388 33 3 3 3 225 765 Total 297 777 134 19 31 31 687 1,950 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 111
(partners 3; donations) and political contributions and; (4) business ,acquisitions joint ventures and other forms of investment and financing for each transaction .type In doing ,so we take into account the risk of corrupt practices by /country region in the screening procedures according to the score of the Corruption Perceptions (Index CPI published) annually by Transparency International and other relevant .factors During the initial compliance screening for A&M and other ,transactions we also evaluate the target s’company bribery and corruption ,risks as well as other compliance ,risks and conduct the Ethics & Compliance risk assessment and due diligence ,process in accordance with the Hitachi Group Ethics & Compliance Guideline on Mergers and .Acquisitions Educational activities for preventing bribery and corrupt practices One of the major topics covered in the Hitachi annual business ethics and compliance training is the prevention of bribery and .corruption This training includes more specific details on preventing bribery and corruption when providing or receiving ,gifts travel and .entertainment In ,addition we post the wideGroup educational materials on bribery-anti and corruption-anti on the intranet for use by all Group .companies In conjunction with the United Nations International’ CorruptionAnti Day on December 9, we posted an article on the Hitachi Group employee news ,website calling on employees to refamiliarize themselves with the Hitachi Group Code of Ethics and Business Conduct and Hitachi Group Bribery-Anti and CorruptionAnti Policy and to promote .awareness We also share the latest .S.U Department of Justice enforcement policies on ,bribery corruption and other corporate crimes at regular meetings for Heads of Ethics and ,Compliance Compliance ,Managers Persons in Charge of Compliance and others at the Group .companies The meetings are designed to expand the knowledge of Heads of Ethics and ,Compliance Compliance Managers and Persons in Charge of Compliance and ,others as well as confirm the rationale and direction of the Hitachi Group compliance .program Fair competition Hitachi engages in business in accordance with the law and business ,ethics and we practice fair and open .competition We have also established the Hitachi Group Code of Ethics and Business Conduct and the Hitachi Group Fair Competition ,Policy and its operational .standards In fiscal 2021, we revised the guidelines for preventing cartel activity and improved the relevant forms based on the revised .guidelines Educational activities for preventing violations of competition law As with our bribery-anti and corruption-anti ,initiatives Hitachi addresses compliance with competition laws as one of the main topics in our annual business ethics and compliance .training Through this ,training we strive to ensure that employees fully understand all relevant rules and operational .standards ,Additionally we have established standards related to global contact with competitors for overseas employees to inform them of the practicalities .involved Export controls s’Hitachi basic export control policy is to comply with export and import laws and regulations on a global basis to maintain international peace and ,security and to manage exports appropriately in accordance with internal .regulations ,Hitachi .Ltd established Corporate Regulations concerning Security Export Control based on this policy to ensure implementation of strict export control practices in line with relevant laws and .regulations We screen all goods and technologies intended for export against such factors as destination countries and ,regions as well as intended end use and end .users We provide guidance and educational support for the formulation of regulations and the establishment of frameworks to Hitachi Group companies to ensure that the Group companies follow the same export control policies in accordance with relevant laws and .regulations As part of our training program for all Group ,companies we offer courses and learning-e programs on export ,controls consisting of a basic learning-e program in 15 languages and an learning-e program for practitioners in Japanese and .English Hitachi strives to ensure that export controls are thoroughly enforced throughout the .Group Violation of laws and regulations In fiscal 2025, Hitachi recorded no incidents in which Hitachi was prosecuted or penalized by authorities for ,bribery corrupt ,practices competition laws or export .controls Prevention of antisocial transactions and money laundering To cut off all relationships with antisocial ,forces the Hitachi Group Policy Against Money Laundering and Antisocial Transactions includes provisions stating that we will never engage in antisocial transactions under any ,circumstances and will refuse any improper demands and unfair .deals We conduct periodic assessments of all new and existing business .partners In ,Japan we insert force-antisocial rejection clauses in .contracts If we determine that a business partner belongs to an antisocial ,force we can promptly void the contract and end the .relationship The Hitachi Group acts decisively to eliminate approaches from antisocial forces in partnership with external specialist (institutions the National Center for Removal of Criminal Organizations or the .(police ,Furthermore the policy clearly establishes s’Hitachi stance of not tolerating any involvement with persons or organizations engaged in money laundering or other illegal activities within or outside of .Japan Using a based-risk ,approach we conduct due diligence on prospective customers and business ,partners including checking against country sanctions lists and inspecting payment details for red .flags ,Additionally we include clauses in contracts which prohibit money laundering and terrorist .financing Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives 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Tax compliance To respond to tax risks associated with the globalization of our ,business including tax audits and litigation by tax authorities in various ,countries Hitachi conducts appropriate tax governance throughout the Group by identifying tax risks on a quarterly basis under the management of the .CFO To ensure thorough compliance with these ,rules we strive to raise awareness among all employees involved in tax management filing( and paying ,taxes handling tax audits and managing tax risk and) in the handling of other related-tax .matters
- Group companies strictly comply with all relevant ,laws follow the spirit of the laws and implement tax management when pursuing their business ,activities bearing in mind such international tax compliance standards as the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations of the ,OECD as well as that s’body Action Plan on Base Erosion and Profit (Shifting .(BEPS
- Group companies ,effectively continually and proactively manage related-tax issues in a manner befitting their status as socially responsible ,organizations maintaining s’Hitachi brand value and seeking to maximize shareholder .value
- Group companies build sincere and positive relations of trust with the tax authorities in the regions where these companies do ,business striving to maintain and develop those .relations In accordance with these ,policies we established rules on transfer pricing management for the Group ,companies seeking to identify and mitigate potential tax risks related to transfer pricing in transactions with affiliated-foreign ,parties as well as to ensure .compliance As stated ,above we strive to raise awareness of these rules and ensure that they are .followed Tax compliance initiatives By following the relevant related-tax rules applicable to the Group as a ,whole Hitachi manages tax risks associated with .globalization For ,example we strengthen risk management and compliance with laws and regulations by identifying and sharing matters indicated by the tax authorities and related-tax legal proceedings in each .country The results of our tax filings and tax audits in Japan are reported to the ,CFO and we work continuously to ensure appropriate tax reporting and prevent .fraud In preparing tax ,filings we determine whether tax-anti haven legislation .applies When legislation ,applies we reflect said rules properly in the tax filing to ensure appropriate tax .payments Hitachi follows rules for transfer pricing management and manages transfer pricing in accordance with the OECD Transfer Pricing Guidelines and the laws and regulations on transfer pricing in each country or region where the Group companies are .located We paid 364.5 billion 1yen in income taxes for the fiscal year ended March 31, (2026 :Japan 56%, :Overseas .(244% 1* Refers to income taxes paid in the consolidated statements of cash flows 2* Based on the percentage in the country-by-country report submitted to tax authorities Stakeholder collaboration and engagement Hitachi continues efforts to build relationships of trust through sincere responses to tax authorities and to reduce tax risks through researching appropriate tax treatment in consultation with external tax .advisors We also collaborate with the business community through industry associations to lobby for viable tax reform that contributes to the stronger international competitiveness of Japanese .companies Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 113
Approach to information security Cyberattacks are increasing ,worldwide and incidents that may have a social impact not only on a s’company own operations but also across the entire value chain are becoming more .frequent In ,addition the misuse of AI technology is leading to a rise in the number of attacks as well as increasingly advanced and sophisticated attack ,methods further heightening the risks faced by .companies Against this ,backdrop ,Hitachi a company transforming social infrastructure through digital ,technologies recognizes cybersecurity as one of its key management priorities and advances cybersecurity initiatives from both value creation and risk management .perspectives Across the ,Group we are implementing common initiatives to strengthen information ,security including cybersecurity and data .protection Information Security Report Information security policy Based on the Information Security ,Policy Hitachi has established various related-security .rules These basic rules include the Information Security Management Rules and the Hitachi Group Privacy .Principles The Information Security Management Rules define the basic matters that must be complied with in relation to the ,formulation ,implementation maintenance and ongoing improvement of information security management .systems They further stipulate that Personal Information Protection Management ,Systems including the ,policies must be reviewed at least once a .year Information Security Policy Information security Privacy protection policy Hitachi has established the Hitachi Group Privacy ,Principles which set out the privacy protection principles and basic guidelines for data protection that all Hitachi Group executives and employees are required to .follow The Hitachi Group Privacy Principles define the fundamental principles for privacy protection in accordance with the eight principles of the OECD Privacy ,Guidelines which have been incorporated into personal information protection laws and regulations in various countries and .regions Basic Principles Relating to Privacy Protection Personal information protection policy ,Hitachi .Ltd has established the Personal Information Protection ,Policy which is disseminated to all executive officers and employees and is publicly disclosed on its .website The Personal Information Protection Policy clearly specifies the types of data ,collected how data retention is handled and the circumstances under which data may be .disclosed When acquiring personal information from customers or others in the course of business ,activities the department responsible for handling such personal information provides a notice detailing the person responsible for managing personal ,information the purposes for which the information will be ,used and the handling of personal information when provided to third parties or .contractors In ,principle personal information is collected only after obtaining the consent of the individual .concerned Referring to the Hitachi Group Privacy ,Principles ,Hitachi s’.Ltd Personal Information Protection Policy and related ,regulations each Hitachi Group company establishes its own Personal Information Protection Policy and works to build and operate personal information management .systems About Personal Information Protection of ,Hitachi (.Ltd Privacy Policy and (Summary About Personal Information Protection of ,Hitachi .Ltd Appropriate management of contractors When Hitachi outsources the handling of personal data to ,contractors we require them to protect personal data at a level equivalent to that required under the Hitachi Group Privacy .Principles For ,example Hitachi has established internal regulations governing the outsourcing of personal information and conducts the screening and supervision of .contractors When outsourcing business ,operations Hitachi screens candidate companies and selects only those that protect personal information at a level equal to or higher than s’Hitachi own .standards We only outsource business operations to contractors that agree to contracts incorporating strict personal information management ,provisions including the establishment of a management framework ,and in ,principle a prohibition on .subcontracting ,Furthermore we regularly assess contractors and encourage them to recognize their ,responsibilities thereby strengthening the management and supervision of .contractors In ,addition the Hitachi Group Sustainable Procurement ,Guidelines which set out requirements for procurement ,partners include provisions on the prevention of personal and confidential information leakage and are shared with procurement .partners Hitachi Group Sustainable Procurement Guidelines Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 114
Structure for advancing information security At ,Hitachi the Chief Digital & Security (Officer CD & ,)SO who is responsible and accountable for information security and data protection across the ,Group establishes policies and measures and oversees the maintenance and promotion of the management .system The Information Security ,Committee chaired by the CD & SO and consisting of business (unit (BU heads and representatives from corporate ,functions is held regularly to review and improve the management .system The Information Security Committee deliberates and determines various information security policies and ,measures including cybersecurity and data protection .initiatives Information on the policies and measures ,adopted as well as their implementation ,status is regularly reported to the Senior Executive Committee and Audit Committee members of the Board of .Directors The Senior Executive Committee deliberates and makes decisions on important information security .issues These issues are submitted to the Board of Directors as .needed The policies and measures determined by the Information Security Committee are communicated to all ,BUs business sites and the Group companies through channels such as the Information Security Promotion ,Council which is attended by Information Security Implementation Officers and other relevant .personnel Within each ,BU business ,site and Group ,company Information Security ,Officers Information Security ,Managers Information Security Admin ,Office and Data Protection Managers work together to implement information security and data protection .measures They are responsible for promoting employee awareness and training and ensuring that policies and measures are effectively implemented within their respective .organizations In the event of an information security ,incident they report the incident to the information security organization within the relevant ,BU business ,site or Group ,company or to s’Hitachi corporate information security .division Support for investigation and incident resolution is provided as .necessary Global target for information security Under the Hitachi Group sustainability ,strategy ,PLEDGES we have established the target of ensuring and enhancing information security across the Hitachi .Group To achieve this ,target we formulate and implement various measures based on industry trends and global regulatory .developments ,Specifically the information security division conducts annual assessments-self by monitoring the Cybersecurity ,Score which was developed with reference to guidelines such as the Ministry of ,Economy Trade and s’Industry Cybersecurity Management ,Guidelines to verify whether appropriate security measures are being effectively .implemented In this ,way we strive to ensure and enhance information .security In fiscal 2025, we assessed the governance status across the entire Hitachi Group with the aim of enhancing the effectiveness of risk .management We monitored the effectiveness of measures implemented by each BU and Group company and improved the management .framework At the same ,time we improved existing measures to enhance monitoring capabilities and accelerate incident .response As regulatory requirements continue to tighten across countries and ,regions we intend to leverage our global data protection framework to ensure a stable and consistent .response Structure for advancing information security Strengthening global governance for cybersecurity and data protection To strengthen cybersecurity governance on a global ,basis Hitachi has established region branches reporting directly to headquarters in the ,Americas ,Europe ,Asia India and ,China and has appointed a Head of Cybersecurity for each region .branch To strengthen data protection ,governance Hitachi has appointed Data Protection Advisors within regional headquarters in the ,Americas ,Europe ,Asia India and .China Through these Heads of Cybersecurity and Data Protection ,Advisors Hitachi provides support to ,BUs business sites and Group companies in each region and promotes coordination across the .Group Region Head・ of Cybersecurity Data・ Protection Advisor Chief Digital & Security (SO&CD(cerO Information Security Committee Information Security Promotion Council ,BUs business sites and the Group companies Support Chairperson Chief Information Security (cerO concurrently serving as (SO&CD Members Secretariat Information Security Audit cerO Information Security Training cerO Representatives from ,BUs business sites and corporate functions Information・ Security cerO Information・ Security (Manager Admin (ceO Data・ Protection Manager and others Corporate information security division Collaboration Board of Directors Senior Executive Committee Regular reports Audit Committee members Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 115
Information security management In accordance with the Information Security Management ,Rules Hitachi has established an information security management system incorporating the international standard IEC/ISO 27001. In light of the increasing severity of cyberattacks in recent ,years we continue to strengthen information security based on the Information Security ,Standards operational procedures that comply with the .S.U government standards 800-53/171.SP ,Audits assessments and monitoring of information security and data privacy Hitachi advances its information security and data privacy initiatives through the PDCA cycle of its management .system We conduct regular ,audits assessments and monitoring to verify that the management system is being properly implemented across ,BUs business sites and Group .companies Audits ,Hitachi s’.Ltd audit department conducts regular audits of all business ,operations including information ,security at ,BUs business sites and Group .companies All divisions of ,Hitachi .Ltd and Group companies in Japan conduct annual internal audits of information security and personal information .protection Internal audits are conducted independently by auditors appointed by the President & .CEO Auditors are not permitted to audit their own ,divisions thereby ensuring fairness and .independence Group companies in Japan conduct internal audits equivalent to those conducted by ,Hitachi .,Ltd and the results are reviewed by the corporate information security .division Assessments Hitachi conducts regular site-on assessments through specialized internal security teams to verify the implementation status of information security measures and reduce security .risks Monitoring With regard to data ,privacy Hitachi conducts annual monitoring of Group companies to confirm that internal regulations in accordance with the Hitachi Group Privacy Principles have been properly established and .implemented checks-Self All divisions of ,Hitachi .Ltd conduct annual checks-self to confirm the operational status of personal information .protection In ,addition business divisions that handle important personal information conduct monthly checks to confirm the operational status of their respective .operations Training and awareness on information security and data privacy Hitachi holds annual learning-e programs on information security and data privacy for all executive officers and .employees At ,Hitachi .,Ltd completion of learning-e on information security and personal information protection is .mandatory In fiscal 2025, the completion rate reached 100%, excluding those unable to participate due to reasons such as leave of .absence In ,addition ,Hitachi .Ltd offers a variety of training programs tailored to different target groups and ,objectives including classroom sessions for new ,employees newly appointed ,managers and Information Security ,Managers to provide education on information security and personal information .protection ,Hitachi .Ltd shares its training content within the Group and is actively engaged in information security and personal information protection training throughout the entire .Group Hitachi also conducts simulated targeted mail-e attack training to educate employees about targeted mail-e attacks and other .cyberattacks Employees receive deceptive emails designed to simulate actual ,attacks helping to raise security awareness through firsthand .experience In ,addition Hitachi regularly holds seminars for Hitachi Group employees to raise awareness of information security and personal information .protection We promote raising-awareness ,initiatives including sharing relevant information via our corporate .intranet Prevention of information leakage and incident response Hitachi implements a number of common IT security measures to prevent information ,leakage including device ,encryption secure ,PCs electronic document access control and expiration processing ,software ID management and access control via authentication ,infrastructure and mail-e and website filtering .systems In response to targeted mail-e attacks and other ,cyberattacks we participate in private-public sharing-information initiatives and strengthen various IT security ,measures including depth-in-defense .strategies To prevent information leakage from procurement ,partners when outsourcing work involving the handling of ,information we review and assess their information security measures in advance based on s’Hitachi information security .requirements We also provide security education materials to procurement ,partners and we ask procurement partners to check and remove business information from personally owned .devices At ,Hitachi when an information security incident ,occurs we follow established emergency response .procedures These procedures outline immediate actions such as internal and external ,reporting prompt containment measures and identification of the affected information .assets They also cover stage-early responses such as investigating the ,cause addressing complaints and establishing communication procedures for notifying affected .individuals In the event of an information security ,incident ,BUs business sites and Group companies must report the incident immediately to the information security division in accordance with established emergency response .procedures In ,addition the emergency response procedures detail the process for notifying the relevant authorities and affected individuals in the event of a personal information .leak Cybersecurity initiatives As a wide range of ,cyberattacks including supply chain ,attacks ransomware ,attacks and attacks exploiting day-zero ,vulnerabilities continue to ,occur and the sources and impacts of incidents continue to ,expand Hitachi addresses these risks through cybersecurity management tailored to the characteristics of each ,environment including internal IT ,environments development and testing ,environments production and manufacturing ,environments supply ,chains and products and .services Hitachi also continues to strengthen its cyberattack monitoring and incident response capabilities to reduce business .risks Cybersecurity management Hitachi has established standards for vulnerability management and network security in internal IT environments and requires BUs and Group companies to regularly assess the status of their security measures and implement corrective actions where .necessary As a wide-Group ,measure we monitor the status of vulnerability mitigation measures on devices and follow up with users and .administrators In the development and testing ,environments as well as production and manufacturing ,environments we have established standards and guidelines for the implementation and operation of each environment to ensure security ,compliance and promote Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 116
measures based on these guidelines throughout the Hitachi .Group We also share s’Hitachi information security requirements with procurement partners and work closely with them to strengthen .security In ,addition we have established management principles for ensuring and maintaining the security of products and ,services and we promote measures based on these principles throughout the Hitachi .Group To enable appropriate responses to vulnerabilities and ,incidents we have established Product Security Incident Response (Teams ,)PSIRTs responsible for the technical aspects of product and service ,security at ,headquarters BUs and Group .companies These teams work collaboratively to address vulnerabilities and respond appropriately to incidents relating to products and .services ,Furthermore based on the Three Lines of Defense ,concept we have established a framework to maintain security measures for development and testing ,environments production and manufacturing ,environments and products and .services As the first line of ,defense each BU and Group company conducts assessments-self to confirm compliance with guidelines and management .principles As the second line of ,defense the headquarters information security division monitors the results of these .assessments-self As the third line of ,defense the audit division reviews the implementation of these monitoring .activities Cybersecurity monitoring and incident response enhancement Hitachi maintains 24/7/365 monitoring and incident response functions through the Hitachi Security Operations (Center .(SOC This enables the early detection of scale-global cyberattacks and a rapid .response Hitachi also strengthens its cybersecurity monitoring capabilities through Endpoint Detection and (Response 1*(EDR to monitor device behavior and strengthen authentication ,protection and through External Attack Surface (Management 2)EASM to identify and manage its attack .surface We continue to improve and strengthen our cybersecurity monitoring environment by leveraging the latest .technologies 1 Systems to monitor suspicious behavior and attacks on endpoint devices such as computers and enable rapid response 2* Systems to identify and manage assets exposed to external ,networks such as the ,internet that could become targets of cyberattacks Data protection initiatives As the use of data continues to expand and border-cross data flows ,increase risks related to data protection are also .growing Based on the Hitachi Group Privacy Principles and the Personal Information Protection ,Policy Hitachi promotes data privacy and personal information protection while strengthening governance in line with legal and regulatory developments in each country and .region Through these ,efforts Hitachi seeks to achieve both the appropriate management and effective use of .data Privacy protection initiatives ,Hitachi .Ltd has introduced the Hitachi Privacy Impact (Assessment PIA system) and conducts privacy impact assessments for operations involving the handling of personal ,data thereby working to prevent related-privacy issues before they .occur The system is also being gradually introduced across Group .companies Through the development of guidelines and ,checklists as well as regular training ,programs we promote the implementation of appropriate privacy protection measures and raise employee awareness of privacy .protection In ,addition due to the nature of its ,business the Digital Systems & Services ,Sector which drives s’Hitachi digital ,business has established the position of Personal Data Officer responsible for overseeing the handling of personal ,data as well as the Privacy Protection Advisory ,Committee which brings together expertise in privacy protection and supports risk assessments and the development of mitigation .measures Through this ,framework we are further strengthening our privacy protection .efforts Personal information protection initiatives To maintain a level of personal information management that goes beyond the requirements of s’Japan Act on the Protection of Personal ,Information ,Hitachi .Ltd has established a personal information protection management system in accordance with the Japan Industrial (Standard JIS Q) 15001, Personal Information Protection Management Systems – .Requirements Through this ,system we promote the appropriate management of personal ,information provide educational programs for all employees and conduct periodic audits to help ensure the protection of personal .information Personal information is never provided to third parties without prior .consent When prior consent is ,obtained we require third parties receiving such data to comply with s’Hitachi rules for handling personal .information Responding to relevant laws around the world With increasing privacy ,risks countries and regions around the world are actively enacting and revising relevant laws and .regulations Hitachi ensures thorough compliance with applicable legal requirements across the Group ,globally monitors developments in ,laws regulations and social trends and implements appropriate .measures In ,Japan Hitachi complies with the requirements of the Act on the Protection of Personal Information regarding the reporting of personal data breaches and notification of affected .individuals In the event of a breach that may harm the rights and interests of ,individuals Hitachi promptly reports the incident to the Personal Information Protection Commission and notifies the affected .individuals In fiscal 2025, there were no reportable personal information breach incidents at ,Hitachi .Ltd under the Act on the Protection of Personal .Information party-Third evaluations and certifications ISMS certification Hitachi promotes the acquisition of party-third evaluations and certifications for information security .management As of the end of July 2026, 8 divisions of ,Hitachi .Ltd and 28 divisions across 17 Group companies in Japan had obtained ISMS certification based on IEC/ISO 27001, the international standard for information security management ,systems including .cybersecurity These certifications are maintained and renewed through periodic audits conducted by independent certification .bodies Hitachi is also expanding its ISMS certification efforts outside .Japan PrivacyMark certification Hitachi promotes the acquisition of party-third evaluations and certifications for personal information .protection As of the end of July 2026, ,Hitachi .Ltd and 38 Group companies in Japan had obtained 1PrivacyMark ,certification a party-third certification system for personal information protection in .Japan 1 A party-third certification granted to businesses that are recognized as having implemented appropriate measures for the management and protection of personal .information The certification is administered by the Japan Institute for Promotion of Digital Economy and (Community (JIPDEC Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 117
Risk management approach s’Hitachi business activities have been transformed through innovations in digital technologies such as AI and the advancement of ,globalization among other ,events and the types of risks that could have a significant impact on management have .diversified Since individual risks interact with each other and can affect business activities in a complex chain ,reaction they must be viewed from multiple ,perspectives such as their ,nature likelihood of occurrence and impact on Hitachi if they do .occur In ,addition for Hitachi to enhance its corporate value over the medium to long ,term it is important not only to view risks as threats but also to view them positively as business opportunities and create earningprofit opportunities in the risk management .process ,Accordingly Hitachi has developed a wide-Group risk management system and risk management ,process with reference to international risk management frameworks such as ERM-COSO and ISO 31000, to promote ,comprehensive efficient and systematic risk management across the Hitachi .Group Risk management Risk management system In accordance with internal rules for wide-Group risk ,management Hitachi has established a system for managing information on wide-Group risks and addressing risks of high importance on a priority .basis The Chief Risk Management (Officer ,)CRMO who is responsible for wide-Group risk ,management identifies risks across the Hitachi Group and reports to the Senior Executive Committee and the Board of Directors on the status of risk .responses ,Furthermore Hitachi has built a risk management system that classifies and organizes risk management functions and roles within the Hitachi Group into three (lines “the Line-Three .(“Model The functions and roles of each line are as .follows A Sector Risk Management (Officer RMO and) business unit RMO BU( RMO are) assigned to each sector and ,BU which are the first .line They implement and oversee risk management of the /sector BU that they are in charge ,of and report the status of risk management to the CRMO and Group .Corporate Group ,Corporate which is the second ,line manages risk in each ,division assigning an RMO where ,necessary and also works with the CRMO to provide ,advice support and ,monitoring .,etc for line-first risk .management The third ,line the Internal Auditing ,Office verifies and evaluates risk management in a position that is independent of the first and second ,line and provides advice where .necessary In addition to the ,above an RMO is also assigned to each ,region including ,Japan and works with the CRMO to provide risk management advice to the first line from the perspective of their .region Going ,forward Hitachi aims to strengthen the wide-Group risk management promotion system by further increasing information sharing between RMOs and cooperation across the Hitachi .Group Group risk management system Monitoring/Support Advice Report Region RMO BU RMO Sector RMO Cooperation /Support Monitoring Report CRMO Report Monitoring/Support Board of Directors and Audit Committee Senior Executive Committee Report Supervision Group Corporate Sector / BU Region Executive cerO in charge and Division Head Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 118
Risk management initiatives In accordance with internal rules setting out wide-Group risk ,items risk assessment methods and other relevant ,matters Hitachi continually identifies and assesses ,risks and implements and improves measures to address them through the following process in line with changes in the business environment both inside and outside the .Company A Identification) and assessment of risks Based on wide-Group risk ,items sectors and BUs identify risks related to their business activities and assess the 1impact and likelihood of (2occurrence up-bottom .)approach The results of the up-bottom approach are reviewed by members of the Senior Executive Committee and others from the perspective of the Hitachi Group as a whole and the overall risk ,portfolio and the key risks for the Hitachi Group are (selected down-top .(approach The selected key risks are organized and analyzed using tools such as risk heat .maps Among these ,risks those requiring prioritized discussion and action are designated as key focus .areas B Measures) to address risks Measures to address identified and assessed risks are formulated and implemented from the perspective of ,avoidance ,mitigation ,transfer ,acceptance .etc The status of measures for the key focus areas determined in the process described in A ,above) which include important management priorities such as ensuring strategic human capital and strengthening the supply ,chain is reported to the Senior Executive Committee and the effectiveness and appropriateness of the measures and the schedule for addressing risks are .discussed C Improvement) Hitachi adapts to the changing business environment by confirming that risks are being properly ,identified ,analyzed assessed and addressed and continually making improvements where .necessary AI related-governance initiatives s’Today business environment makes it essential for companies to achieve productivity gains and other business outcomes through the use of .AI For Hitachi to maintain and strengthen our competitive advantage in this business ,environment we must employ sophisticated management that enables us to proactively leverage AI while mitigating the critical risks associated with .AI We published the principles guiding the ethical use of AI and established AI ethics committees at organizations that handle ,AI thereby establishing AI governance mechanisms to manage risks from the perspective of AI .ethics We also established the AI Supervisory ,Committee chaired by the Chief Legal Officer .)CLO( This committee strengthens our global AI governance by overseeing the AI ethics committees across sectors and .BUs ,Furthermore Hitachi has set up the AI Advisory Board comprising external experts to foster discussions on appropriate AI .governance Inspire 2027 aims to provide term-long value through the development and utilization of centric-human .AI To this ,end we will enhance risk management in the application of AI to ,products services and systems centered around the AI Supervisory .Committee As part of these ,efforts we establish risk management processes tailored to the characteristics of each sector and BU while also improving the efficiency of AI risk .management We have also established guidelines governing not only the internal use of AI but also its external .applications In fiscal 2025, we expanded these guidelines to reflect the broader use of AI .agents Principles guiding the ethical use of AI in Social Innovation Business s’Hitachi Activities for the Ethical Use of AI in Its Social Innovation Business ,Additionally under the “slogan We Are All Risk ,Managers efforts” are made to foster a risk culture and risk ownership across the Hitachi Group and to increase the effectiveness of the risk management process through training programs that encourage a change in behavior and initiatives to strengthen human .resources 1* The impact is evaluated based on ,finance ,employees business/customers ,partners laws and regulations and other factors and from the perspective of .stakeholders 2* Evaluation is made in terms of the actual occurrence in the past and the estimated probability of future .occurrence Risk assessment process Illustrative group risk heat map Likelihood Impact : Risk items : Group top risks Technological progress Talent Procurement Includes responses to related-AI threats down-Top approach Members of the Senior Executive Committee .etc select key risks based on information about risks that were assessed and collected with the up-bottom .approach up-Bottom approach Each BU/sector identifies and assesses risks associated with its business .activities Perspective of individual businesses wide-Company perspective down-Top up-Bottom Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 119
Efforts against investment risks Hitachi established a clear making-decision framework for all stages of our ,business including investment and ,financing to ensure that we capture growth opportunities while appropriately managing .risk When making investment and financing ,decisions our deliberation structure comprises three :levels the Board of ,Directors the Senior Executive Committee and the relevant sector or .BU We delegate making-decision authority according to the size and risk profile of each ,proposal enabling prompt and appropriate .making-decision In order to effectively conduct deliberations at the Senior Executive ,Committee the Investment Strategy Committee has been established as an advisory .body The committee comprises members from corporate divisions and other organizations selected from a global .perspective For significant ,projects the committee deliberates on ,risks Quantitative understanding of risks Hitachi quantifies risks by calculating expected maximum potential (loss Value at Risk using) statistical methods for each type of assets held on the s’Group consolidated balance .sheet We also quantify the risks associated with the order backlog for time-lead-long contracts by taking future uncertainties into .account We regularly monitor our capacity for growth investment by visualizing available financial resources based on total consolidated net assets and other .indicators This approach helps us capture growth opportunities while keeping risk balanced with our consolidated financial .strength We also quantitatively analyze and assess risk levels and profitability on a regional and sectorper .basis Framework of making-decision ,countermeasures business ,feasibility growth strategies and other factors from multiple perspectives in light of changes in the business environment before making recommendations to the Senior Executive .Committee After an investment is ,executed we periodically monitor the status of the project against the .plan If the project fails to proceed as ,expected we assess whether to continue or withdraw to improve capital .efficiency We identify changes in the global economic ,environment digital ,technologies ,geopolitics customer trends and other factors surrounding Hitachi from both risk and opportunity .perspectives We continue to refine our criteria for investment and financing ,decisions as well as our investment-post PMI and monitoring ,framework to enhance -medium to term-long corporate value and achieve our management .plan Board of Directors Resolution by the Board of Directors particularly( important (matters Senior Executive Committee Decision by the BU/sector to withdraw ,from divest or continue with the business Monitoring by head office Monitoring by the BU/sector Conflicts with specified conditions Business ,withdrawal sale or continuation Approval by the President ( important (matters Approval by the sector or BU head Investment Strategy Committee When an investment is executed Clarifies the risk factors for a proposed ,matter identifies important discussion ,points and issues a (report including recommendations of approval or (disapproval Clarifies the risk factors for a proposed ,matter identifies important discussion ,points and issues a (report including recommendations of approval or (disapproval Senior Executive Committee BU/Sector Report Report A committee whose members are from related corporate ,divisions .etc such as the Finance Group :Chairperson CRMO After an investment is executed Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 120
Business continuity initiatives Given the close relationship of our business to social ,infrastructure Hitachi continues to strengthen business continuity (plans BCPs and) business continuity management BCM( to) ensure that risks do not disrupt our business or significantly affect .society At ,Hitachi each business division at each company prepares for scale-large ,earthquakes ,typhoons floods and pandemics by formulating Business Continuity (Plans BCPs based) on the Hitachi Group Guidelines for Developing Business Continuity ,Plans created in three (languages ,Japanese English and (.Chinese ,Hitachi .Ltd and domestic Group companies also implement earthquake preparedness simulation drills to effectively execute BCPs established by each business division and continuously improve plans as .needed In fiscal 2025, we continued preparations for a major earthquake in the Tokyo metropolitan area by conducting an initial response drill for response-disaster staff at the ,Hitachi .Ltd headquarters based on a scenario involving a temporary network .disruption We also explored preparations for a potential Nankai Trough Earthquake through lectures and .workshops In addition to the ,above please refer to the following for risks related to business operations and other relevant .information Annual Securities (Report the th157 business (term page (40 Risk (Factors IRO areas of the Hitachi Group related-Climate financial information disclosure based( on TCFD (recommendations Global human capital management Business ethics and compliance Information security Sustainable procurement 2023FY Added a drill scenario in which an earthquake strikes the Tokyo metropolitan area during daylight hours on a weekday and temporarily disrupts network ,connections requiring initial communication with response-disaster staff 2024FY Reconfirmed initial response ,procedures from ensuring the safety of response-disaster staff and confirming their status to gathering at the headquarters meeting ,room based on a scenario in which an earthquake strikes the Tokyo metropolitan area during daylight hours on a weekday 2025FY Conducted an initial response drill using emergency communication methods between headquarters and nearby office ,buildings with both person-in and remote ,participation based on a scenario in which an earthquake strikes the Tokyo metropolitan area during daylight hours on a weekday and disrupted network communications in central Tokyo Results of drills simulating headquarter earthquake measures Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 121
Hitachi views the expansion of ,term-long overall returns to shareholders and investors as an important management .objective To enhance corporate ,value we maintain good relationships with diverse stakeholders and are establishing a framework to foster sustainable value creation through ongoing .dialogue In terms of corporate ,governance we separate oversight from ,execution supporting swift business execution and underpinning highly transparent .management Corporate governance General Meeting of Shareholders Senior Executive Committee President & CEO Executive Vice Presidents and Executive O /cers Senior Vice Presidents and Executive O /cers Vice Presidents and Executive O cers Nominating Committee 4 directors Compensation Committee 3 directors Audit Committee 5 directors independent-Non Independent 2 executive members 9 executive-non members including( three (women Audit Audit Appointment oversight/ Appointment Report Report .Dept in charge .Dept in charge .Dept in charge Executive cerO .Dept in charge Executive cerO Internal Auditing ceO Accounting auditors One standing Audit Committee member Audit Audit Report POINT 2 POINT 1 Board of Directors POINT 3 POINT 3 POINT 3 POINT 3 POINT 3 POINT 3 POINT 2 POINT 2 s’Hitachi corporate governance framework and (features as of June (2026 Ratio of independent directors Tenure of independent directors Average years2.5 Ratio of Japanese-non and woman directors Country of origin Board of Directors (composition as of June (2026 Corporate Governance Report POINT 1 Independence of the Board of Directors A structure with a majority of independent ,directors including international directors The Board of Directors consists of 11 :members eight independent ,directors two directors who concurrently serve as executive officers and one executive-non .director The Board is chaired by an independent .director ,Furthermore by separating management oversight from ,execution we have established a structure that enables the Board to fully exercise its supervisory .functions POINT 2 Transparency in management Robust governance structure as a company with Nominating ,Committee .etc We have established three ,Nomination—committees Audit and each—Compensation chaired by an independent .director This structure is designed to strengthen the supervisory function of the Board of Directors while ensuring that discussions and reporting within the committees are conducted .effectively POINT 3 Enhanced collaboration through tripartite auditing s’Hitachi Audit Committee and internal audit sections collaborate with party-third accounting auditors to strengthen the Tripartite Auditing aimed at increasing the effectiveness of internal .controls :Video s’Hitachi corporate governance and tripartite auditing Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 122
Directors skills’ matrix The experiences and ,insights and skills of each director are as .follows 1* World Business Council for Sustainable *Development 2 International Chamber of Commerce 3 The European Chemical Industry Council 4 Operational Technology 5 Digital Transformation Definition Core skills Corporate management Experience and knowledge related to corporate management and management oversight Global business Practical experience in global business or management experience in a company operating globally Risk management Knowledge of the risk assessment and management required to sustain a company Professional skills Finance and accounting Leadership experience such as CFO or professional knowledge and practical experience in accounting and audits Legal affairs Expertise and practical experience in the legal affairs that are essential for conducting global business and rolling out new business Digital Practical experience in the digital business that is vital for promoting DX in the Social Innovation Business ,Government international and educational organizations Leadership experience in ,government governmental ,agencies international organizations or economic associations that facilitate an understanding of and response to regulations and social ,issues as well as practical experience at educational institutions Sustainability Expertise and practical experience of sustainability through corporate management Core skills Professional skills Corporate management Global business Risk management Finance and accounting Legal affairs Digital ,Government international and educational organizations No Name Major experiences and insights Sustainability 1 Ikuro Sugawara .Mr Sugawara has rich experience and insight from leadership positions in government agencies such as the Ministry of ,Economy Trade and ,Industry as well as serving as an independent director for global .companies ○ ○ ○ ○ 2 Ilham Kadri .Dr Kadri has rich experience and insight in global corporate management and sustainable ,management having served as CEO of ,Diversey Solvay and ,Syensqo as well as chairman of 1WBCSD , 2ICC and 3,Cefic and possesses experience and insight in economic and industry organizations and international .institutions ○ ○ ○ ○ ○ 3 Takashi Nishijima .Mr Nishijima grew the business globally through the integration of 4OT/IT and the promotion of 5DX as President of Yokogawa ,Electric and has rich experience and insight in global corporate management and sustainable .management ○ ○ ○ ○ ○ 4 Masahiko Chino .Mr Chino has rich experience and insight in global corporate management as well as ,accounting ,auditing and consulting as Chairman-Co of KPMG .Japan ○ ○ ○ ○ 5 Helmuth Ludwig .Mr Ludwig has rich experience and insight in the area of global corporate management and the digital ,business as CIO at ,Siemens as well as teaching experience at educational .institutions ○ ○ ○ ○ ○ 6 Eriko Sakurai .Ms Sakurai has rich experience and insight in global corporate management and sustainable ,management having served as the head of global business divisions at Dow ,Corning and regional operations at ,Dow as well as chair of the Sustainability Committee as an outside director of a financial .institution ○ ○ ○ ○ 7 Isabelle Deschamps .Ms Deschamps has rich experience and insight in the areas of corporate ,law corporate ,governance risk management including ,geopolitics and sustainable ,management having worked at ,Nestle ,Unilever Rio Tinto and other global .companies ○ ○ ○ ○ ○ 8 Ravi Venkatesan .Mr Venkatesan brings considerable experience and insight in corporate management and technology at global firms including Microsoft ,India ,Infosys Bank of Baroda and international organizations including ,UNICEF Rockefeller Foundation and the Global Energy Alliance for People and .Planet ○ ○ ○ ○ ○ 9 Toshiaki Higashihara .Mr Higashihara has rich global corporate management as well as sustainable management experience and ,insight having served as s’Hitachi ,CEO .etc as well as rich experience in key positions in government agencies and economic and industry .organizations ○ ○ ○ ○ ○ ○ 10 Mitsuaki Nishiyama .Mr Nishiyama has rich experience and insight in the areas of global corporate management and finance & ,accounting having worked as CFO at Hitachi and as chairman and president of Hitachi (Metals currently .(Proterial ○ ○ ○ ○ 11 Toshiaki Tokunaga .Mr Tokunaga has rich experience and insight in global corporate management and sustainable management as ,CEO .etc at .Hitachi ○ ○ ○ ○ ○ Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 123
Director and executive officer compensation Key principles of executive compensation Compensation structure and cash generation Accelerate sustainable management Emphasize alignment Keywith :principles Incentive plan Aim for ,growth profitability shareholder value Ensure global competitiveness in business and compensation Aligned with the -medium to term-long growth of corporate value and business performance Corporate value growth through performance-for-pay Linkage with the management
- plan -Medium to term-long growth 1 Alignment with the management plan For term-short incentive compensation and -medium and term-long incentive ,compensation set performance metrics toward the management plan targets as key performance (indicators KPIs to) encourage executives to achieve .them 2 Establishment of a compensation program and a performance evaluation program that fosters a growth mindset Pursue• an optimal balance among -,short -medium and term-long performance about ,growth profitability improvement and cash ,generation aiming for improvement of term-short performance and -medium to term-long growth in corporate .value Establish• a compensation program that significantly rewards performance by setting stretch goals and commensurate compensation .levels 3 Setting indicators to promote sustainable management Develop specific indicators and goals under the sustainability strategy ,PLEDGES and encourage their .implementation 4 Expansion of stock compensation that rewards growth in corporate value over the medium to long term Expand• stock compensation to better align with -medium to term-long corporate .value Promote• term-long share ownership through measures such as the establishment of shareholding .guidelines Attract and retain key talent 5 Competitive compensation levels with a global perspective Ensure competitive compensation levels to attract and retain key executives in the global ,market regardless of their residence or ,origin who lead global management of a global .organization 6 Compensation benchmarking with objectivity and transparency Reference the benchmarks in the .S.U and European markets in addition to the benchmarks in the Japanese market for analysis and setting-level from multiple .perspectives ,Transparency objectivity and fairness 7 Transparency and objectivity through enhanced compensation disclosure and shareholder engagement Endeavor to gain investors understanding’ and support through sufficient disclosure of the compensation program with a global perspective and ongoing shareholder ,engagement and continuously improve the program based on the insights gained through the .engagement 1( Directors) Compensation for directors is made up of basic compensation as fixed pay and based-stock .compensation The ratio for the base amount of basic compensation to based-stock compensation is -1.to2.5- The methods for determining each type of compensation are as .follows .A Basic remuneration The amount of basic remuneration is decided by adjusting the base amount to reflect time-full or time-part ,status committee membership and ,position meetings attended and other .factors .B Stock compensation Restricted stock compensation (units RSU are) granted to serve as an incentive to provide management oversight and advice with the -medium to term-long enhancement of corporate value in .mind After three years have ,passed Hitachi provides an amount equivalent to the granted units in the form of common stock or .cash If it is found that a director has engaged in misconduct during /his her term of ,office compensation for Directors that has already been paid shall be returned to the (Company clawback .)policy A director concurrently serving as an executive officer is not paid compensation as a .director Alignment of increased corporate value with employee compensation Hitachi has also introduced mechanisms for employee compensation to link individuals goals’ with those of the Company and determine ,compensation and the management goals set out in Inspire 2027 are used as one of the evaluation metrics when determining the compensation of individual .employees Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 124
2( Executive) Officers Compensation for Executive Officers consists of basic compensation as fixed pay and term-short incentive compensation and -medium and term-long incentive compensation as variable .pay The ratio of base amounts for each form of compensation is determined to ensure the enhancement of corporate value through global business ,growth referencing ratios for executive compensation at leading global ,companies including those in Europe and the United .States In the case of s’Hitachi President & ,CEO this ratio is 1 : 1.5 : 3. In ,addition ratios are set so that the higher the rank of an executive officer ,position the greater the variable compensation as a percentage of total .compensation The details of compensation are disclosed in the Compensation to Directors and Executive ,Officers .etc section on page 123 of s’Hitachi Annual Securities .Report Annual Securities (Report the th157 business (term .A Basic remuneration The amount of basic remuneration is decided by adjusting a basic amount set in accordance with the relevant position to reflect the results of an .assessment .B term-Short incentive (compensation (STI The amount of term-short incentive compensation is decided within the range of 0 to 200% of a basic amount set according to the relevant ,position by adjusting that amount to reflect financial results and individual .performance .C -Medium and term-long incentive (compensation (LTI The target (amount -medium and term-long incentive compensation (target LTI target is)) decided based on the positions of Executive Officers in order to propel management from a -medium to term-long perspective and to provide incentives to bring about a sustainable increase in corporate value by further promoting shared values among senior management and shareholders through the holding of shares from their term of .office In order to further clarify its commitment to enhancing corporate value over the long ,term in March 2026, the Company revised its executive stock compensation .program Under a globally unified ,program -medium and term-long incentive compensation consisting of restricted stock (unit RSU awards) and linked-performance stock (unit PSU awards) is .granted Details are available on page 125 of the Annual Securities .Report Annual Securities (Report the th157 business (term If it is found that an executive officer has engaged in misconduct during her/his term of ,office compensation for Executive Officers that has already been paid shall be returned to the (Company clawback .(policy Shareholding guidelines for Executive Officers are designed to further enhance the effectiveness of sharing value with shareholders through shareholding and to promote continued .shareholding ,Specifically the guidelines set a target whereby Executive Officers are expected to ,acquire within four years of ,appointment and continuously hold during their term of ,office shares equivalent in value to an amount calculated by multiplying their basic remuneration by coefficients determined according to their respective .positions Key Aspects of Compensation to Executive Officers 1 Strengthening the link with the management plan Adopt• the key indicators set forth in Inspire 2027 as KPIs ,STI( (LTI 2 Strengthening the link with corporate value enhancement Set• a high ratio of stock price condition (compensation (LTI Establish• a global competitive (comparison (LTI 3 Further evolving sustainable management Separate• sustainability evaluations and set at (20% (STI Some• targets and KPIs of the sustainability strategy PLEDGES are incorporated into executive compensation evaluation to encourage their (execution ,STI (LTI Revenues• Linking executive compensation to the sustainability strategy .Adj• EBITA margin Core• FCF Lumada• business revenues margin Revenues• .Adj• EBITA margin Core• FCF Lumada• business revenues margin EPS• Targets based on Sustainability strategy PLEDGES 2 2 1 3 3 3 3 3 +20% 1 1 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 125
Administrative performance of the Board of Directors The Board of Directors approves the basic management policy for the Hitachi Group and supervises the execution of the duties of executive officers and directors in order to sustainably enhance corporate value and shareholders common’ .interests The basic management policy includes the management plan and annual budget .planning The Board of Directors focuses on strategic issues related to the basic management ,policy as well as other items to be resolved that are provided in ,laws ,regulations the Articles of Incorporation and the Board of Directors .Regulations In fiscal 2025, by approving Inspire 2027 management plan and receiving progress reports on two occasions at board ,meetings we held many discussions on the ideal state the Hitachi Group should aim for in the future and the business strategies that would make that .possible We also widely discussed and deliberated on risk management pertaining to generative ,AI and responses to geopolitical risks in light of recent world .affairs Aside from these strategic discussions on basic management policies and related-risk ,discussions recognition is shared between the supervisory and executive sides of management by having the President & CEO report to the Board of Directors on important executive ,topics including key management issues discussed in the Senior Executive ,Committee an advisory body to the President & ,CEO and promoting discussion on such .topics To facilitate more lively discussion on these ,topics more time is allotted to exchanging opinions than explaining each .topic Board of Directors Meeting and major agendas in 2025FY :Note Figures exclude those from the Extraordinary Meeting of the Board of Directors held on October 9, 2025. Activities of the three committees 2025FY time spent and ratios of explanations and discussions of important (topics results up to March 31, (2026 0 50 100 150 200 250 300 350 400 450 Topics Main topics discussed CEO report Progress of capital related-policy ,matters response to ,investors .etc Inspire 2027 Resolution to approve Inspire 2027: 1 meeting Progress :reports 2 meetings Settlement of accounts Financial ,results business ,environment shareholder ,returns .etc Risk management Status of compliance ,initiatives improvements to Group governance and A&M ,processes AI risk ,management enterprise risk management ,)ERM( monitoring of investment and financing ,projects .etc ,Strategy .etc Research and development ,strategy regional ,strategy human capital ,strategy sustainability ,strategy individual A&M transactions Meetings held in 2025FY Major activities Nominating Committee 10 times • Decided the details of proposals for the election of directors Discussed• future CEO successor candidates Confirmed• the structure of executive officers for fiscal 2026 Discussed• the development of management leadership ,candidates conducted one-on-one interviews with leadership candidates Compensation Committee 7 times Confirmed• and deliberated over the processes and details of performance evaluations and individual target evaluations regarding the assessment of fixed compensation and term-short incentive compensation for executive officers Discussed• and deliberated on executive officer shareholding (guidelines to be introduced from fiscal .(2026 Decided• to revise the executive officer -medium and term-long incentive compensation program and transition to a structure consisting of a restricted stock (unit RSU program) and a performance share (unit PSU program) Reflected• changes in the business ,environment feedback from shareholders and investors and benchmark information and advice from party-third organizations in conducting deliberations Audit Committee 12 times Considered• matters such as strengthening s’Hitachi tripartite audit ,structure and auditing the development and operational status of an internal control system Verified• the results of financial statement audits and internal control audits based on the accounting s’auditor report Checked• and approved the quality control structure and compensation of the accounting auditor Received• regular reports on the ,risks challenges and opportunities of executive :departments covering ,sustainability human ,capital health and ,safety quality ,assurance brand ,management ,compliance ,cybersecurity and AI transformation Conducted• onsite audit of Group locations Meetings Meetings held (10 9 times) Average number of agenda items (7.3 8.0 per) meeting Average meeting length (160.2 170.0 minutes) Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 126
CEO appointment and ,dismissal and succession plan As stipulated in our Corporate Governance ,Guidelines our basic policy concerning the CEO requires that individuals serving in the position of CEO have extensive experience and achievements in the field of company .management They must also be considered optimally suited for conducting management aimed at achieving s’Hitachi goals of continuously raising its corporate value and further serving the common interests of its .shareholders Decisions regarding the appointment or dismissal of the CEO shall be made based on prior deliberations and proposals by the Nominating .Committee And after a preliminary report to the Nominating ,Committee s’Hitachi Board of Directors decides upon the appointment and dismissal of executive officers with the goal of constructing an optimal business execution system for .management Regarding our CEO succession ,plan as the speed of change in the management environment ,accelerates we are striving to build a system that enables us to appropriately and promptly secure and (develop both internally and globally necessary) management personnel who will provide leadership that will allow us to realize our growth .strategies ,Accordingly we are also concentrating on providing training for selected employees while targeting the early development of candidates for future management .positions Through ,this participants discuss what is necessary for s’Hitachi future growth and have opportunities to make recommendations directly to ,management fostering generation-next leaders who can act with confidence and .determination Analysis and evaluation of the effectiveness of the Board of Directors The Company evaluates the effectiveness of its Board of Directors each year in an ongoing effort to maintain and improve its .functions In ,particular beginning in fiscal 2025, to ensure the objectivity of the evaluation and incorporate multifaceted ,perspectives evaluations by Executive Officers and interviews conducted by a party-third organization have been .introduced The succession planning process 2025FY evaluation process Evaluation (results overall evaluation in (2025FY Future initiatives Early development of candidates for future management Narrow down CEO candidates Decision made by Board of Directors Narrow• down candidates through regular discussions and evaluations Propose• candidates to the Board of Directors Provide• selective training to personnel selected through interviews with management Implement• tough assignments Provide• opportunities to give recommendations to top management Change• selected members every year Promotion( to Executive (cerO
- assessment-Self by each director February( (2026 Board• role Board• (composition diversity of the ,Board the number and proportion of independent ,directors (.etc Board• (operation relation between the Board and Executive ,Officers appropriateness of agenda ,setting time ,allocation meeting ,frequency (.etc Three• committees (activities’ ,composition ,roles report to the ,Board (.etc Information• to the (Board provision of information such as the Board materials and business ,information (.etc Contribution• of the Board members (themselves understanding of the business and Hitachi Group ,Identity utilization of s’director knowledge and ,experience (.etc Contribution• by the (Board role of ,Chairperson contribution to the succession plan of ,CEO external ,communication (.etc
- based-Questionnaire evaluation by some Executive Officers March( (2026 Contribution• by the Board Board• Composition Relationship• between the Board and Executive Officers
- Interview conducted by a third party for independent directors From( February to March (2026 To• gain a deeper understanding of the directors assessment-self’ ,results an interview with independent directors was conducted by a third party
- Discussions among independent and executive-non directors March( (2026 Independent• directors and executive-non directors held a meeting and discussed the effectiveness of the Board of ,Directors referring to each evaluation result and the s’Board activities in fiscal 2025 with respect to the evaluation items described in 1 through 3 .above The discussion focused on such topics as the appropriate division of roles between supervision/oversight and ,execution strengthening communication between Directors and Executive ,Officers and the policy regarding the involvement of independent directors in investor engagement
- Discussions at the Board (meeting April (2026 The• Board analyzed and evaluated its effectiveness as a whole and confirmed the policy on approaches to further enhance the s’Board effectiveness based on director ,evaluations-self executive ,evaluations party-third interviews and Section 4 ,discussions considering comparison to the evaluation results for the previous year and measures taken for improving its effectiveness The overall effectiveness of the Board of Directors is ensured by the following strengths in :particular
- A healthy balance between oversight and execution of ,management built on transparency and trust
- A diverse Board composition designed with a global perspective
- A Board culture that enables ,open ,candid and substantive discussion 4. Effective facilitation of the meetings and smooth operations Enhance corporate governance and further improve the effectiveness of the Board Enhance the Board support system and improve practical issues in operations The• Board of Directors will continue to hold more vigorous discussions regarding management ,policies .etc from a -medium to term-long perspective with a thorough separation of execution and .oversight In• addition to discussions at Board of Directors ,meetings by setting up meetings for executive officers and directors to exchange opinions freely regarding the term-long management ,policy further promote sharing of understanding and fostering mutual trust between the Board and the .executives Independent• and executive-non directors will share information on the selection of CEO and executive candidates as appropriate and provide further support for the development of said candidates Increase• opportunities for Directors to further understand the businesses of the Company through briefing sessions to explain ,businesses visiting operation sites of the Hitachi Group and other means Further• improve the structure and contents of materials for the Board ,meeting early provision of meeting materials Dialogue with investors and information sharing with directors Establish and implement appropriate opportunities for dialogue and share feedback from investors with each director Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 127
Engagement In this section 130 Human rights 135 Sustainable procurement 141 Customer satisfaction Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 128
Sustainability starts in our .operations To have real ,impact we have to extend our efforts throughout the entire value chain .too Hitachi fosters business activities that emphasize sustainability across the entire value chain and aims to achieve the sustainable development of both society and .business We position respect for human rights as a fundamental responsibility of a global company and strive to prevent human rights violations across all aspects of business .activities Together with our procurement ,partners we advance sustainable procurement by conducting risk ,assessments audits and up-follow ,actions while also engaging partners through dialogue and .training We further collaborate to set and achieve GHG emissions reduction targets across the value .chain ” Sustainability is neither a cost nor a constraint it; is a growth driver that strengthens business resilience and .competitiveness Sustainable procurement is essential to putting sustainability at the core of our business activities throughout the value ,chain achieving mutual prosperity with our procurement partners and translating PLEDGES into concrete .actions As One ,Hitachi we strengthen supply chain resilience as part of our responsibility to society and .business We visualize risks and reduce them through close collaboration with procurement .partners By enhancing ,transparency building trust and advancing globally consistent ,practices we achieve both risk mitigation and ,growth delivering sustainable “.value Alice Po Vice President and Executive ,Officer ,CPO General Manager of Value Integration Division Engagement 2025FY highlights 5,232 Procurement partners taking action on environment and human rights 428 Procurement partners have set GHG reduction plans and targets PLEDGES Leadership Video — Engagement WATCH Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 129
Respecting the human rights of all people Hitachi believes that respecting human rights is both our responsibility as a global company and a business .essential We do not tolerate any acts that impair individual dignity or discriminate on bases such as ,gender sexual ,orientation ,age ,nationality ,race ,ethnicity ,ideology ,belief ,religion social ,status family ,origin ,disease or .disability We prioritize stakeholder engagement to understand and manage our human rights .impacts Stakeholders who are affected or may be affected include employees at Hitachi and its procurement ,partners local ,communities ,consumers other individuals or groups whose livelihoods or working environments may be ,affected industry ,associations government ,entities ,investors ,NPOs/NGOs human rights ,organizations .etc Hitachi Group Human Rights Policy In 2013, Hitachi conducted stakeholder dialogue inviting representatives from the European ,Commission the International Labour (Organization ,)ILO ,NGOs ,companies and ,lawyers and formulated the Hitachi Group Human Rights Policy as tier-top internal .rule In November 2024, Hitachi revised the policy to reflect business and international trends strengthening respect for human rights across the value .chain The policy incorporates feedback from numerous ,stakeholders including the based.-S.U human rights NPO ,Shift and was approved by the Senior Executive .Committee The update enhanced and clarified the international standards we commit to identified; six salient human rights issues and; clarified s’Hitachi human rights due (diligence (HRDD process based on our track .record Hitachi engages with diverse business ,partners promoting understanding of its policies and taking appropriate actions to uphold respect for human rights and strengthen efforts toward a sustainable .society We also protect freedom of expression and the right to ,privacy as recognized by international ,norms such as the International Covenants on Human ,Rights to prevent and mitigate human rights .impacts Human rights Revision of Hitachi Group Human Rights Policy Hitachi Group Human Rights Policy Hitachi Group Code of Ethics and Business Conduct Hitachi Group Sustainable Procurement Guidelines Encouraging procurement partners to conduct activities Structure for advancing respect for human rights Hitachi continues to strengthen human rights risk management globally by tasking the Chief Sustainability (Officer CSuO with) wide-Group human rights initiatives and policies based on the status of HRDD .progress Our HRDD Promotion ,Secretariat established within the headquarters of ,Hitachi (.Ltd consisting of the HR ,division procurement division and sustainability (division takes charge of core division-cross ,activities including investigating ,measures preparing manuals and guidelines and responding to internal and external .inquiries To address diverse businesses and value ,chains we appoint the heads of BUs and presidents of major Group companies to lead .HRDD We also assign HRDD Execution Managers to each BU and major Group .companies In ,addition BUs and the overseas subsidiaries of major Group companies work with regional headquarters to address regional human rights .issues We established a new HRDD Practitioners Meeting in fiscal 2025 to improve the quality of HRDD by confirming progress and discussing implementation (issues held four times in fiscal .(2025 We also hold an HRDD Execution Managers Meeting once or twice .yearly At this ,meeting we share and discuss the progress of HRDD at BUs and major Group ,companies with important matters deliberated and decided by the Senior Executive Committee and submitted to the Board of Directors as .necessary ,Furthermore the Audit ,Committee composed of external ,directors conducts audits of related-sustainability ,operations including human .rights Structure for advancing respect for human rights Roles of human related-rights meeting body and organization Senior Executive Committee HRDD Execution Managers Meeting HRDD Practitioners Meeting Human rights promotion meetings and organizations at BUs / major Group companies HRDD( Promotion ,Meeting (.etc Human rights promotion meetings and organizations in each region Board of Directors Information /sharing opinion gathering Meeting /body organization Attendees role/Purpose HRDD Execution Managers Meeting HRDD Execution Managers at BUs and major Group companies Provide• key information for HRDD and discuss implementation status across BUs and major Group companies HRDD Practitioners Meeting Human rights officers from ,BUs major group companies and regional headquarters Share• HRDD progress and issues Human rights meetings and organizations at major/BUs Group companies Persons responsible for HRDD ,promotion HRDD Execution Managers and persons in relevant divisions Pursue• human rights activities tailored to the business characteristics Regional Human rights promotion meetings HQ HRDD leads and selected Group/BU representatives Share• regional regulatory trends and risk discuss; responses to specific-region human rights issues Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 130
Implementation status of recent major HRDD Key risks by salient human rights issue HRDD process Global human rights targets Our goal under the Hitachi Group Sustainability Strategy PLEDGES is to identify and address human rights risks proactively through detailed implementation of .HRDD As a ,Group Hitachi works actively to remediate the specific human rights risks .identified Human rights due diligence HRDD( initiatives) Hitachi manages human rights risks according to the HRDD (process illustrated ,)herein based on the Human Rights Risk Management Implementation ,Manual and in line with the UN Guiding Principles on Business and Human .Rights 1( Assess) risks Under the Hitachi Group Human Rights ,Policy we identified forced (labor including violations of migrant workers ,)rights’ child ,labor ,harassment ,discrimination lack of health and safety and violation of freedom of association as salient human rights issues common across multiple BUs and Group .companies During the risk assessment phase of ,HRDD each BU and major Group company conducts a risk assessment that considers these salient human rights issues as well as the characteristics of each .business In fiscal 2025, we began creating a heat map visualizing human rights risks for each BU and major Group .companies We conduct risk assessments based on trends in the external environment noted through ,dialogues .,etc with .NGOs We conduct discussions within the HRDD Practitioners Meeting and use AI for certain aspects of the risk .assessments Based on criteria common throughout the Hitachi ,Group we assess the negative impacts of human rights issues across the value chain for all BUs and major Group ,companies including assessments of the severity and likelihood of .occurrence We proceed to investigate the situation on the ground through a assessment-self (questionnaire (SAQ and dialogue with ,stakeholders including rights .holders In this ,way we identify risks for which corrective action is .required Development of wide-Group risk assessment standards to support HRDD led by individual businesses Each BU and major Group company at Hitachi deals with a different business and external .environment The manner and severity of possible human rights risks are .diverse As each business entity best understands their own ,situation we believe it is important that each pursue HRDD under their own .responsibility Based on this ,idea the HRDD Promotion Secretariat has been supporting the efforts of each entity to implement HRDD led by each BU and major Group company since fiscal 2022. To strengthen the system that helps persons in charge of each BU and major Group companies to autonomously and effectively assess and judge human rights ,risks we developed common wide-Group human rights risk assessment standards based on an HRDD methodology developed with NPO .Shift In addition to developing a long list of human rights ,issues we also produced an evaluation criteria guide and evaluation .format Our efforts included the use of .AI We use AI for basic information related to risk assessments after discussions between BUs and Group companies and the HRDD Promotion .Secretariat In this ,way we reduce the risk of AI generating content that does not reflect the (facts .(hallucinations Year Implementation status 2022FY Transitioned from led-headquarters HRDD to a model led by business (units BUs and) major Group .companies Conducted four training sessions with Shift and carried out human rights risk .assessments 2023-FY 2024FY Conducted human rights risk assessments at all BUs and major Group .companies Held a guidance session led by Shift ,and at certain BUs and Group ,companies considered measures to address salient human rights issues and methods for verifying their effectiveness to promote understanding of the processes following human rights risk .assessments 2025FY Created measures based on the Shift methodology to implement HRDD more (effectively .,g.e formulate common standards for the Hitachi Group risk assessment ,process use AI for initial ,determinations .).etc Introduced a system to centrally manage the progress of HRDD at the (headquarters from risk assessment to making-decision and implementation of response measures at) BUs and major Group .companies Engage with stakeholders Hitachi Group human rights due diligence process
- Assess Risks
- Track 2. Integrate and Act
- Communicate Business process Salient Human Rights Issues Description Forced Labor ,Investigated( but no risk identified at this (time Child Labor Harassment Various types of harassment in the workplace Discrimination Discrimination in the (workplace lack of multilingual ,support .,etc may limit participation by foreign language (speakers Lack of Health and Safety Occupational incidents at Group factories and at subcontractor construction sites Violation of Freedom of Association Restrictions on freedom of association and the right to organize in certain Southeast Asian countries Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 131
Risk assessment for new businesses and projects At ,Hitachi investment decisions are made based on the scale and details of each .project The sustainability division participates in the Investment Strategy ,Committee which submits proposals to the Senior Executive ,Committee and conducts risk assessments that include human rights .considerations Similar processes are followed when BUs and the Group companies make their own investment ,decisions ensuring that risk assessments are thoroughly conducted before launching any new business or project across the .Group If human rights risks are identified after a project or business has ,begun a task force is assembled as needed to conduct checkingfact and take appropriate .action 2( Integrate) and act (and 3 Track) For human rights risks identified through fact checking surveys and other ,means as well as human rights issues raised by internal and external ,stakeholders we examine corrective measures that consider the degree of (involvement ,causing ,encouraging or ,)related and we pursue appropriate measures to ensure respect for human rights throughout the value .chain assessment-Self (questionnaire (SAQ As part of the HRDD risk assessment ,process Hitachi developed a assessment-self (questionnaire SAQ with) support from Business for Social (Responsibility ,)BSR a based.-S.U nonprofit and external human rights .expert The SAQ enables BUs and the Group companies to conduct due diligence on the six salient human rights issues identified in s’Hitachi Human Rights .Policy The SAQ is designed to assess whether business operations of each division align with the international standards to which Hitachi has .committed Use of the SAQ began across BUs and the Group companies in fiscal 2025. Response to recruitment fee burdens on workers A Group company accounted for using the equity method and based in Southeast Asia was found to have required workers to bear recruitment ,fees a practice permitted under local law but deemed inappropriate by the .ILO In ,response Hitachi collaborated with the majority shareholder outside the ,Group the minority shareholder within the Hitachi ,Group and ,Hitachi .Ltd to take corrective action in accordance with ILO .guidelines Affected employees received reimbursement within three months of the issue being .identified 4( Communicate) Hitachi discloses information on initiatives concerning respect for human ,rights including ,HRDD through our Sustainability ,Report websites and other .channels We also strive to deepen understanding of Hitachi initiatives through appropriate communication in response to ,questions observations and the like from ,investors ESG evaluation ,organizations NGOs and media .outlets In ,addition we incorporate opinions from both inside and outside our organization when considering future .measures Engage with stakeholders Hitachi places a strong emphasis on stakeholder engagement with rights ,holders the subjects of human ,rights and the individuals or organizations that represent .them In fiscal 2025, we conducted a total of 14 stakeholder (dialogues seven in fiscal ,)2024 the content of which is used in our human rights risk analysis and remediation .activities Depending on the details and degree of ,impact we established a task force with relevant stakeholders from Hitachi Group entities to implement more comprehensive .responses Measures to prevent harassment Hitachi recognizes harassment as a serious violation of human rights in the workplace and is committed to creating an environment where everyone is respected and feels comfortable expressing their .opinions In fiscal 2025, we established the Hitachi Group Harassment-Anti Rules to reinforce our tolerancezero attitude toward .harassment We include matters related to harassment in our annual compliance learning-e for all ,employees and we actively update learning-e materials on harassment prevention common to the Hitachi ,Group which we first developed in fiscal 2023. In ,addition training programs are tailored to the specific circumstances of each .workplace For ,example we conduct training programs for managers that focus on creating workplaces where employees feel safe and on developing management practices to foster open and communicative .workplaces All employees at the respective workplaces also receive training on harassment prevention and .communication ,Furthermore newly appointed managers and assistant managers are required to complete training that includes content on workplace human rights issues and harassment prevention to ensure proper understanding and application of these .principles Initiatives to prevent child labor and forced labor To prevent child ,labor Hitachi reviews official documents upon hiring to verify employee .age Our Business and Human Rights learning-e course and other raising-awareness materials offer case studies and other methods to inform employees ,that in accordance with the UN Guiding Principles on Business and Human ,Rights companies have a responsibility to respect rights not only within their own operations but also across their supply ,chains including among procurement ,partners particularly regarding child labor and forced .labor Encouraging procurement partners to conduct activities To deepen respect for human rights throughout our entire supply ,chain Hitachi includes the Human Rights Policy in the Hitachi Group Sustainable Procurement Guidelines for our procurement .partners We encourage an understanding of the Hitachi policy to strengthen respect for human rights and strive to ensure that our approach is put into .practice ,Moreover the guidelines make it clear that child labor and forced labor must be .eliminated We ensure the raising of awareness for human rights and engagement with procurement partners through efforts including Sustainability Procurement Seminars in various .regions Since fiscal 2022, we have utilized 1*EcoVadis , a party-third Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 132
evaluation ,platform to assess and monitor our sustainability performance relating to human ,rights including efforts to address forced labor and child .labor This assessment involved gathering responses from a survey to understand the actual situation on the .ground In addition to ,EcoVadis we use the proprietary Hitachi Sustainability Questionnaire to conduct written surveys across a wider range of procurement partners to expand our sustainability .assessment We also conduct sustainability ,audits including labor and human ,rights based on responses to our written .survey We explain to our procurement partners the issues identified during audits and request .improvements 1* A sustainability risk assessment service platform that evaluates companies in the four areas of ,environment labor and human ,rights ethics and sustainable procurement Strengthening engagement with procurement partners Efforts to raise awareness of human rights among officers and employees Based on the Hitachi Group Human Rights ,Policy we continue to raise awareness of human rights among Hitachi Group officers and .employees Our efforts include as messages from the President & CEO on the importance of respect for human rights on World Human Rights ,Day as well as learning-e (programs in fiscal 2025, 8,593 employees studied Business and Human ,Rights 82,107 employees studied Harassment Prevention and 3,876 employees studied training content for newly appointed managers and assistant .)managers In fiscal 2025, we also redoubled our efforts to reach out to employees through raising-awareness videos featuring sustainability .officers We also produce posters for display at global sites to convey the importance of respect for human .rights Initiatives for executive officers As part of annual executive ,training Hitachi invited the President and CEO of the based.-S.U human rights NPO Business for Social (Responsibility BSR to) speak at the 2025 .session The training focused specifically on affected-conflict and risk-high areas .)CAHRAs( The ,training which was also attended by the heads of ,BUs reinforced an awareness of human rights risks as an important management issue and served as a basis for ensuring respect for human rights in all aspects of our .businesses Initiatives for employees In ,Japan we aim for every employee to attend at least one annual human rights group ,training ,lecture or based-video educational activity held at each business site or Group .company In ,addition we conduct various awareness initiatives that include onboarding training directed at new ,hires training by job ,positions and training for employees transferred .abroad In this way and ,others we strive to help employees understand the significance of respecting human rights in their own .work At global ,sites regional headquarters play a central role in activities to promote HRDD according to the actual situation in each .region Examples include seminars by region and dialogues between outside experts and regional .executives We also hold annual human rights workshops .globally In fiscal 2025, we invited the Business and Human Rights (Center (BHRC to .participate More than 1,400 employees attended globally from various ,departments including procurement and ,sales to gain a deeper basic knowledge of human rights and understanding of the responses required of .companies Freedom of association and collective bargaining Mutual communication between employees and management The relationship between employees and management at Hitachi is stable with healthy ongoing .dialogue In ,Japan workers are guaranteed the three fundamental (rights the right to ,organize the right to collective bargaining and the right to collective action under) the ,law and Hitachi also respects these .rights The Federation of Hitachi Group Workers (Unions ,(FHGWU which comprises the trade unions of ,Hitachi .Ltd and the Group companies in ,Japan fosters mutual understanding between employees and management through .dialogue ,Specifically we regularly hold Hitachi Group management tables-round to share information and exchange views and opinions on the Group business .conditions In ,addition we have established five tableround conferences and ,committees such as the Hitachi Group Health and Safety Roundtable ,Conference which each meet once or twice a year to share information and exchange .opinions At Hitachi .,Ltd the Central Management ,Council the Business Units Management Council and the Business Sites Management Council have been established to ensure smooth management ,operations advance business ,growth and improve working conditions for union .members In ,addition 14 thematic ,committees advisory panels and table-round ,conferences including the Next 100 Labor and Management ,Committee the Central Compensation Committee and the Employment and Work Style ,Committee have been set up to facilitate information ,sharing opinion exchanges and discussions one to four times a year in each .group ,Hitachi .Ltd and the Hitachi Workers Union have been bound by a collective agreement since 1951. Every other ,year as part of the management-union negotiations held each ,spring we renew our collective agreement following discussion of revisions for the improvement of working .conditions Our Group companies in Japan have also concluded collective agreements between employees and management and revise these on an ongoing .basis The employee membership rate in trade ,unions .,etc in major group companies in (Japan 60 companies is) approximately 99% as of March 31, 2025. All ,Hitachi .Ltd ,employees with the exception of ,managers can join the Workers ,Union and the membership rate is approximately 96% as of March 31, 2025. The Group companies outside Japan also pursue dialogues with individual trade unions and their representatives in accordance with the laws and regulations in each country and .region These dialogues deepen mutual understanding of employees working’ conditions and compensation ,treatment as well as business .conditions For ,example Hitachi Europe holds an annual European Management-Labor Council meeting to provide a forum for management and employees to exchange views on the s’Group business environment and .strategies Hitachi China holds an annual management information meeting with the industrial (association trade union to) facilitate smooth communications with employees and share information on business conditions and .issues In ,addition the company and the industrial association concluded collective agreements on working ,conditions wage ,revisions the protection of women employees and other matters to protect the rights and interests of .employees In fiscal 2024, no Hitachi Group operating sites reported violations of freedom of association and the right to collective .bargaining Notification of guided-company reassignments and transfers to group companies The collective agreement between ,Hitachi .Ltd and the Hitachi Workers Union states that employees reassignments’ or transfers to group companies for related-work reasons should adequately take into consideration the situation of the ,employees as well as Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 133
require the company to promptly inform the Hitachi Workers Union of the .decision More ,specifically the company discusses with the union regarding basic matters related to scale-large ,transfers ,reassignments or changes in the .company management-Labor cooperation toward improving health and safety levels ,Hitachi .Ltd and the Hitachi Workers Union are dedicated to improving health and safety levels through employee management .cooperation This includes signing a collective agreement on the promotion of health and safety ,measures a health and safety ,committee education and training ,programs health checks for ,employees .etc The Health and Safety Committee works with the Group companies in Japan to ensure a healthy and safe work environment through initiatives that include formulating and tracking an annual health and safety .plan The committee also reviews measures to prevent occupational incidents and shares information on the health checkup .status Health and safety Grievance mechanisms for human rights Hitachi established a wide-Group internal reporting system called the Hitachi Global Compliance .Hotline This system is a whistleblowing system operated by a party-third organization and available in approximately 50 .languages It is available not only to Hitachi Group ,employees but also to business partners and other .stakeholders All ,reports including those concerning human rights and ,harassment are investigated in principle while maintaining confidentiality and .anonymity Once the facts are ,confirmed the whistleblower is informed of the investigation ,results and appropriate corrective actions are taken as .necessary We make every effort to deal with situations as ,appropriate including taking remedial action when .necessary The number of related-labor and harassment (reports including reports in previous years that) were resolved in fiscal 2025 was (272 of which 38 were confirmed as related-compliance (issues and (712 of which 225 were confirmed as related-compliance ,)issues .respectively Hitachi Global Compliance Hotline Hitachi Global Compliance (Hotline Whistleblower (System Initiatives to promote Based-Broad Black Economic (Empowerment BBEE-B in) South Africa As Hitachi conducts business in South ,Africa we pursue activities aligned with the s’country Based-Broad Black Economic (Empowerment 1*(BBEE-B policy to create employment and economic .development Hitachi Energy Hitachi Energy South Africa is advancing transformation and aligning with the Employment Equity (Act 2)EEA targets and plans in line with updated sector targets in 2025. The target is to have 70% of our workforce comprising employees from Historically Disadvantaged South (Africans (HDSA ,backgrounds based on occupational levels for employment ,equity with the ultimate aim of ensuring that there is diversity in the ,workforce including gender diversity of which the current female ratio is 33.5%. As of November 2025, the company achieved Level 1 under .BBEE-B The s’company training strategy is aligned with the skills development targets linked to .BBEE-B It also invests in its current employees in line with diversity and equity to enhance performance and promotability of internal .talent Every ,year the company hires graduates and trainees with HDSA ,backgrounds including learners living with .disability ,Currently employees with HDSA backgrounds comprise 60% of management / supervisory .positions 1 Companies and organizations in South Africa are scored on BBEE-B approaches and ,contributions rated on a scale from level (1 highest to) level (8 ,)lowest or as compliant-non 2* A South African law that promotes fairness and equal opportunities in the workplace for all employees 3* Historically Disadvantaged South Africans Hitachi Vantara Hitachi Vantara South Africa is committed to advancing transformation and inclusive economic participation in South Africa through targeted employment ,equity skills development and empowerment .initiatives The company currently maintains a Level 4 BBEE-B contributor status and continues to align its transformation strategy with national BBEE-B and Employment Equity .objectives HDSA represent 61% of employees within ,middle senior and top management ,positions reflecting the s’company commitment to building a diverse and representative leadership .pipeline The s’organization Workplace Skills Plan supports the proactive development and upskilling of employees across all ,levels ensuring continuous learning and improved career progression .opportunities Hitachi s’Vantara Skills Development initiatives include a Graduates Internship ,Programme a People Living with (Disability PWD Learnership) ,Programme bursary sponsorships for tertiary ,education and the adoption and support of a STEM and Arts specialized school for girls located in a previously disadvantaged .community In support of broader ,transformation Hitachi Vantara established the Hitachi Vantara Empowerment Trust in December 2025 to strengthen HDSA ownership participation and advance sustainable economic interest and .empowerment Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 134
Basic procurement policy Hitachi believes that embedding sustainability at the core of our business throughout our value chain will lead to mutual prosperity for procurement 1partners and the Hitachi .Group To achieve ,this we pursue sustainable ,procurement identifying and mitigating procurement risks associated with the globalization of business as early as .possible These risks include human rights violations and greenhouse gas emissions in the value .chain We established the Hitachi Group Global Procurement Principles as our level-highest code of conduct to be followed in our procurement .activities This code clearly states that Hitachi must give due consideration to ethics and ,compliance the ,environment human ,rights labor ,practices ,safety business stability and continuity and risk management systems in the value .chain The code requires that Hitachi asks its procurement partners to give due consideration to these areas as .well We also established the Hitachi Group Sustainable Procurement Sustainable procurement management framework Hitachi operates a dedicated sustainable procurement organization within the value integration ,division which is responsible for corporate .procurement The organization reviews and determines related .policies Once decisions are ,made they are thoroughly communicated across the Hitachi Group via platforms such as the Sustainable Procurement ,Conference which is attended by the heads of procurement divisions from business (units BUs and) major Group .companies This conference also facilitates the strategic development of sustainable procurement activities and the sharing of best ,practices enhancing wide-Group initiatives related to ,sustainability including environmental and human relatedrights .measures Key procurement strategies and sustainable procurement initiatives are regularly reported to the Senior Executive ,Committee and progress against targets is reported to the Board of .Directors Each ,year the division reports on priority procurement measures to the Audit ,Committee which consists of members of the Board of .Directors These reports include matters identified and addressed in the previous ,year and feedback from the Audit Committee is reflected in activities in the following .year Sustainable procurement Guidelines for procurement .partners The guidelines include the Hitachi Group Procurement Partner Code of ,Conduct which we expect all procurement partners involved in business with the Hitachi Group to comply .with The Code is organized into seven major :categories (labor including human ,)rights health and ,safety ,environment business ,ethics product quality and ,safety prevention of personal and confidential information leakage and management .systems We also use the guidelines as a communication tool to inform procurement partners about Hitachi Group initiatives and share our policies and activities related to .sustainability We aim to develop a sustainable society and business together with procurement partners by fostering procurement activities that adhere to these .codes 1 Hitachi normally refers to its (suppliers including vendors or providers “as) procurement partners who” build business together on an equal footing Sustainable procurement Hitachi Group Sustainable Procurement Guidelines Examples of the Hitachi Group Procurement Partner Code of Conduct Sustainable procurement management framework /BUs Group companies ,Hitachi .Ltd headquarters Report on activities Business locations and factories in Japan and overseas Share activities ,policies ,strategies and initiatives in each Group/BU company communicate/Instruct Hitachi Group activities ,policies ,strategies initiatives Senior Executive Committee Audit Committee Activity outcome monitoring Value Integration Division BU Procurement Meetings Regional Procurement Conferences deliberate/Report Hitachi Group activities ,policies ,strategies ,initiatives results wide-Company Global Procurement Strategy Meeting Group Procurement Leaders Meeting Sustainable Procurement Conference Categories Details 1 Labor Prohibition• of forced labor and child labor Compliance• with working hours Compliance• with minimum wage laws 2 Health and safety Prevention• of occupational injuries and illnesses Communication• of health and related-safety matters 3 Environment • Management and reduction of greenhouse gases Contribution• to the circular economy 4 Business ethics • Prevention of bribery and corruption Fair• competition 5 Product quality and safety • Ensuring product safety 6 Prevention of personal and confidential information leakage Protection• against threats to computer networks including cyberattacks Measures• to prevent personal information leakage 7 Management system Corporate• (commitment (declaration Conducting• due diligence on upstream suppliers in the value chain Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 135
Global targets for sustainable procurement Under Hitachi Group sustainability strategy ,PLEDGES Hitachi has set global targets for sustainable procurement to strengthen engagement with procurement .partners .audits We now provide the guidelines in 16 languages to help global procurement partners understand the guidelines in their local .languages ,Additionally to help procurement partners better understand the ,guidelines Hitachi has developed summary versions of the guidelines and introductory videos that highlight the key elements of the ,guidelines presenting the expected sustainability standards in an accessible .format We distribute these guidelines to procurement partners and work to promote understanding and compliance through sustainable procurement seminars and other communication .efforts Hitachi Group Sustainable Procurement Guidelines Sustainability assessments Hitachi manages sustainability risks across the upstream value chain by promoting sustainability initiatives among procurement partners and conducting sustainability assessments of procurement .partners We established the Hitachi Group Sustainable Procurement ,Guidelines which include the Hitachi Group Procurement Partner Code of ,Conduct and actively work to raise awareness of these .guidelines The guidelines are incorporated into Hitachi s’Group ,contracts and new suppliers undergo a compliance review that includes sustainability criteria during the onboarding .process In ,addition we conduct sustainability risk screening based on the industry and country of operation of each procurement .partner Based on the screening ,results procurement partners are selected for further evaluation based on criteria such as strategic ,importance procurement spend and business .continuity These selected partners are then assessed and analyzed through SAQs on their sustainability ,initiatives as part of efforts to foster engagement and conduct risk .assessments Hitachi utilizes the party-third evaluation platform EcoVadis to support the overall process of ,evaluation analysis and .monitoring EcoVadis assesses sustainability initiatives across four key :areas ,Environment Labor and Human ,Rights Ethics and Sustainable .Procurement In addition to ,EcoVadis we also use the proprietary Hitachi Sustainability Questionnaire to conduct SAQs Specific initiatives “involving procurement partners taking action on environmental and human rights together with Hitachi include” sustainability assessments and sustainability .audits We conducted these initiatives with 5,232 companies in fiscal 2025. Hitachi aims to build a sustainable value chain by accurately understanding the concerns and challenges faced by procurement partners and working together to resolve those .issues Initiatives with procurement partners to reduce environmental impact Human rights due (diligence HRDD initiatives) for procurement partners Strengthening engagement with procurement partners Raising awareness of the Hitachi Group Sustainable Procurement Guidelines Our Sustainable Procurement Guidelines set out the code of conduct we require procurement partners to ,follow including compliance with laws and ,regulations completion of AssessmentSelf (Questionnaires SAQs and) acceptance of site-on Global targets for sustainable procurement across a wider range of procurement partners to expand our sustainability .assessment In fiscal 2025, we conducted sustainability assessments of 5,090 procurement partners across the Hitachi .Group Based on the information obtained from these ,assessments we conduct the following .activities Set• a benchmark score for SAQs and request corrective actions from target companies Promote• focused improvement and monitoring of risk-high items Implement• sustainability audits for target suppliers where risk-high issues remain uncorrected Improvement efforts require the understanding and cooperation of procurement .partners To support these ,efforts Hitachi provides guidelines on corrective .measures Looking ,ahead Hitachi will strengthen measures to steadily assess the sustainability risks of procurement ,partners detect risks at an early stage and drive corrective actions through active engagement with .partners Sustainable procurement process Establishment of the Hitachi Group Sustainable Procurement Guidelines Initial risk screening based-Document survey site-On audits Improvement requests Monitoring KPI 2027FY targets 2025FY results Number of procurement partners taking action on environment and human rights compared( to (2024FY 1.5 times 6,000+) procurement (partners 5,232 procurement partners Number of procurement partners that set GHG reduction plans and targets 700 procurement partners 428 procurement partners Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 136
Sustainability auditing and monitoring Hitachi conducts sustainability audits of the manufacturing bases of our global procurement partners on a regular .basis We use external evaluation organizations to conduct sustainability 1*.audits Sustainability audits consist of based-document ,surveys employee interviews and facility inspections to confirm sustainability initiatives at procurement partners from the perspectives of labor and human ,rights health and ,safety ,environment and .ethics In fiscal 2025, Hitachi held audit briefing sessions in collaboration with external auditing organizations for 31 procurement partners in China and 6 procurement partners in Japan to encourage a deeper understanding of .audits Partners that are audited are selected based on the results of ,SAQs as well as the scale and importance of (partnerships .g.e procurement .)spend In fiscal 2025, sustainability audits were conducted on 142 procurement .partners We explain any issues identified during the audit to procurement .partners In ,particular when risk-high matters including violations of laws or regulations are ,identified we ask our procurement partners to take corrective ,action including identifying the cause of the occurrence and formulating an improvement .plan We then continue to provide guidance and monitor .improvements Going ,forward Hitachi will continue to expand our sustainability initiatives and mitigate sustainability risks in the value chain by providing training that supports improvements and conducting up-follow audits person-in for procurement partners who are deemed to be at high risk as a result of these .audits 1* Some Group companies conduct sustainability audits using internal auditors Initiatives with procurement partners to reduce environmental impact Hitachi works with procurement partners to build a sustainable value chain with a strong focus on environmental .responsibility To achieve net zero across the entire value chain by fiscal 2050, we are committed to reducing GHG emissions from purchased goods and (services Scope 3 Category .)1 We are strengthening engagement with procurement ,partners targeting the establishment of GHG emission reduction goals and plans with 700 partners by fiscal 2027. The number of partners that had established GHG emission reduction targets and plans reached 428 in fiscal 2025. Initiatives with procurement partners to reduce environmental impact Human rights due (diligence HRDD initiatives) for procurement partners Hitachi implements human rights due diligence initiatives for its procurement .partners These initiatives include sustainability ,assessments sustainability audits and ,monitoring and a hotline for procurement .partners Through these ,initiatives we strive to mitigate human rights risks by helping our partners understand s’Hitachi approach to respecting human .rights The Labor section of the Hitachi Group Sustainable Procurement Guidelines stipulates not only the prohibition of forced and child ,labor but also that working ,hours including ,overtime must not exceed the limits set by local laws and .regulations Where no such regulations ,exist total working ,hours including ,overtime should not exceed 60 hours per .week Regarding ,wages the guidelines require compliance with all applicable laws and ,regulations including those related to minimum ,wages overtime pay and legally mandated .benefits ,Furthermore we require our procurement partners to provide fair and competitive-market wages and benefits to ensure that employees have an adequate standard of living beyond legal .requirements Encouraging procurement partners to conduct activities Regional distribution of sustainability audits in 2025FY 19( ,countries 142 companies in (total Examples of matters identified for improvement Category Examples of matters identified Labor and human rights Requiring• employees to pay monetary deposits or recruitment (fees as defined by the ILO at) the time of hiring Employee• overtime hours not properly managed Health and safety Lacking• legally required building permits or fire safety permits Emergency• exits are locked Environment • Environmental impact assessments not properly conducted Ethics • Employees not trained on fair business Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 137
Procurement partner hotline Hitachi accepts consultations and reports regarding potential misconduct from ,stakeholders including procurement ,partners to foster honest and fair dealings with procurement .partners Potential misconduct includes violations of laws and regulations and the Hitachi Group Codes of Conduct and Business .Ethics We established the Hitachi Global Compliance Hotline as a help ,desk and we publicize the help desk and procedures on our .website The hotline is accessible 24 hours a ,day seven days a ,week online or via .telephone Hitachi Global Compliance Hotline Hitachi Global Compliance (Hotline Whistleblower (System Implementation of training and capacity building for the procurement personnel Hitachi provides trainings to procurement ,personnel raising awareness across divisions responsible for sustainable procurement .practices ,Specifically at all of our global ,locations we enhance understanding on human rights due ,diligence carbon ,neutrality advanced internal practices related to sustainable procurement and other important sustainability .initiatives We also offer learning-e on sustainable procurement to encourage a complete understanding of various policies that include the Sustainable Procurement ,Guidelines Green Procurement Guidelines and Policy for Responsible Supply Chain of .Minerals ,Furthermore we provide training on sustainable procurement not only to procurement personnel but also to newly appointed managers in procurement .divisions In fiscal 2025, 1,428 employees completed our .training In fiscal 2025, to further raise human rights awareness among Hitachi Group ,employees including those in working in procurement ,divisions Hitachi invited the profit-non organization Business for Social (Responsibility BSR to) conduct training on human rights risks in the value chain and the responsibilities expected of .companies Efforts to raise awareness of human rights among officers and employees Implementation of training and capacity building for procurement partners Hitachi provides sustainable procurement training tailored to each region for procurement partners in Southeast ,Asia ,China Japan and other regions to address social issues proactively together with our procurement .partners In fiscal 2025, 388 procurement partners participated in this ,training through which we seek to deepen understanding of the Hitachi Group sustainable procurement policy in each region and enhance procurement partners sustainability’ .capabilities We engage in capacity building with procurement ,partners targeting the establishment of GHG emission reduction goals and plans with 700 partners by fiscal 2027. We began providing decarbonization training tailored to each company in fiscal 2025 for selected collaborative partners with high emissions or a strategic role in decarbonization .efforts This training provides partner companies with on-hands support for emissions ,calculations reduction target setting and action plan .development We also provide ,handbooks instructional videos on emissions calculations and target setting ,methods emissions calculation templates and case studies to help strengthen each s’company .capabilities Participating in supply related-chain initiatives Hitachi participates in the Global Compact Network (Japan (GCNJ and actively exchanges views with Japanese companies on best practices related to sustainable .procurement As a member of the CSR Committee of Japan Electronics and Information Technology Industries (Association JEITA and) its Responsible Supply Chain Working ,Group we also work to raise CSR awareness within the ,industry address shared ,challenges and streamline CSR procurement .management As part of industry-cross ,initiatives Hitachi participates in the Human Rights Subcommittee organized by ,BSR using insights gained on legal and social expectations related to human rights to strengthen measures for mitigating human rights risks upstream in the value .chain Sustainability initiatives 1* A sustainability assessment service platform that evaluates companies in the four areas of ,environment labor and human ,rights ethics and sustainable procurement Sustainable procurement training tailored to each region Region Details Southeast Asia Provided 26 procurement partners with an overview of s’Hitachi sustainable procurement policy and ,strategies including environmental and human rights .initiatives Encouraged participation in 1EcoVadis assessments and .audits Also provided training on GHG emissions calculation and reduction methods and examples of carbon net/neutrality zero initiatives undertaken by procurement .partners China Provided 157 procurement partners with an overview of s’Hitachi sustainable procurement policy and ,strategies including environmental and human rights .initiatives Encouraged participation in 1EcoVadis assessments and .audits Also provided training on sustainability trends in ,China the importance of decarbonization initiatives and examples of carbon net/neutrality zero initiatives undertaken by procurement .partners Japan The Railway Systems BU held workshops for 38 procurement ,partners introducing European trends and case studies related to ecodesign and the circular .economy Hitachi Industrial Equipment Systems provided training for 167 procurement partners on methods for calculating and reducing GHG emissions using public resources and .tools Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 138
Strengthening global partnerships Our procurement partner network has become increasingly globalized as our business has expanded .globally We now work with approximately 60,000 procurement partners across more than 60 .countries ,Accordingly we appoint procurement officers to oversee procurement activities locally in the main regions ,China( other Asian ,countries Europe and the Americas in) order to encourage procurement from locally based partners in line with the principle of promoting local production for local .consumption These officers carry out activities including sustainability ,monitoring sustainability audits and sustainable procurement seminars for procurement partners in their respective regions to strengthen sustainable .procurement Responding to the conflict mineral issue In fiscal 2013, Hitachi formulated a Conflict Minerals Procurement ,Policy declaring our stance and commitments regarding conflict .minerals The policy was revised in fiscal 2016 to lay out explicit measures to be implemented to ensure responsible .procurement Expanding the scope of corporate responsibilities for the procurement of minerals is a global .trend Companies are increasingly expected to address broader overall risks to human rights beyond the risk of being complicit in conflicts and recognize responsibilities that extend beyond the countries adjoining the Democratic Republic of the Congo to a wider area where the risks are .high In consideration of these ,developments we revised this policy to formulate the Hitachi s’Group Policy for Responsible Supply Chain of Minerals in fiscal 2021. Hitachi s’Group Policy for Responsible Supply Chain of Minerals 1* Collective term for four commonly used conflict :minerals ,tin ,tantalum ,tungsten and gold 2* May differ depending on BU or the Group company Structure and initiatives Sales ,divisions business ,groups manufacturing ,sites procurement divisions and other divisions within individual BUs and the Group companies work together to respond to investigation requests and inquiries relating to conflict .minerals We also strive to grasp developments in conflict related-mineral laws and regulations in each country and region and what global society demands of ,enterprises and work to share information within the .Group Each BU and the Group company investigate the use of conflict minerals and report the results to customers when .requested We carry out value chain investigations with the cooperation of the ,sales procurement and sustainability divisions of each BU and Group .company In ,addition ,Hitachi .Ltd is a member of the Japan Electronics and Information Technology Industries (Association s)’JEITA Responsible Minerals Trade Working .Group This working group addresses the issues of conflict minerals with other members of the .association Industry leadership and policy recommendations Ratio of local procurement of materials for main (regions (2025FY 91% 77% s’Hitachi conflict minerals response framework 96% 76% Customers Sales divisions Contacts in business /groups manufacturing and sales sites technical( ,divisions (.etc Procurement divisions Supply chain due diligence by individual Group/BUs companies Procurement partners A Procurement partners B Procurement partners C Quality assurance /divisions Design and D&R 2divisions Individual /BUs Group companies Sustainability related divisions Sustainable procurement council Raising /awareness information provision Raising /awareness information provision Information sharing Consultation Coordination Information sharing Grasp• national regulatory trends Grasp• global trends Grasp• national regulatory trends Grasp• global trends Procurement• partner investigation Raising• awareness among procurement partners Understand• customer needs Check• specifications Check• for presence of 1TG3 Support Support Headquarters Coordination Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 139
Procurement BCPs initiatives Hitachi is committed to enhancing our procurement Business Continuity (Plan BCP throughout) the Group to ensure that incidents 1 do not disrupt operations and cause significant impacts on .society The procurement divisions of each BU and major Group company work to minimize the impact of disasters through the following (:measures 1 minimizing) procurement risks through thorough standardization and the use of common ;parts (2) supplier-multi (arrangements 3; diversifying) manufacturing (locations 4; budgeting) for strategic inventory and; (5) considering alternative .products Concerns over the impact of geopolitical risks on supply chains increased in 2025 amid rising tariff ,impacts export controls and regional .conflicts Against this ,backdrop we strengthened our existing ,initiatives as well as supply chain resilience through the introduction of a procurement supply chain risk management platform that improves supply chain ,visibility enables early detection of risk ,incidents accelerates impact assessments and supports countermeasure .implementation 1 Events such as natural (disasters including major earthquakes serious) enough to disrupt business Procurement Resilience Strengthening and expanding the procurement supply chain risk management platform Hitachi implemented a procurement supply chain risk management platform for the procurement divisions of BUs and Group companies in .Japan This platform enables the rapid detection of related-disaster ,information identification of affected sites and assessment of impacts on a global .scale Hitachi is improving visibility into procurement supply chain risks globally through the introduction of optimized platforms tailored to regional and business .requirements Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 140
Improving communication with customers The sales and marketing divisions at Hitachi appoint an account manager to each customer to help leverage customer feedback in developing ,management product and solution .strategies These account managers serve as points of customer contact with the Group ,companies working to improve communication with customers while building closer relationships between customers and Hitachi Group .companies Strengthening global account management Aiming for sustainable global business ,growth Hitachi has appointed regional strategy officers in six key the—regions ,Americas ,EMEA ,APAC ,India Japan and to—China ensure that regional growth opportunities and risks are promptly reflected in management .strategies We also appoint Chief Marketing Officers CMOs( in) charge of global sales transformation to strengthen collaboration with business (units ,)BUs Group companies and regional ,headquarters and deliver solutions as One Hitachi to key customers and partners beyond regional and business .boundaries As priority ,initiatives we plan and execute sales strategies for new global business .development We also appoint Group Account Managers to represent the Group for key customers worldwide and build strategic partnerships in collaboration with BU-cross account .teams Digital marketing Hitachi created the One Hitachi Customer Relationship (Management CRM to) manage wide-Group marketing information centrally and consolidates market analysis on a global .basis We drive digital marketing by leveraging the CRM system in planning business strategies for ,growth customer ,targeting improving proposal ,quality understanding the state of communication with customers and monitoring .progress Advertising activities Hitachi established the Advertising Guidelines to comply with laws and regulations and ensure consideration for .society We developed a multilingual Advertising Material Checklist to ensure these guidelines are followed strictly at all business locations .worldwide All items on the checklist are confirmed when creating .advertisements Our social media activities are also rooted in corporate ethics and legal .compliance We establish policies and guidelines that protect the Hitachi brand and avoid infringing on the rights of .others We also carry out educational activities through learning-e courses in ,Japanese English and Chinese regarding specific operational methods and risk .countermeasures We noted no instances of violations of regulations or voluntary standards related to corporate advertising activities in fiscal 2025. About s’Hitachi social media activities Customer satisfaction Comprehensive online customer support Hitachi offers comprehensive global customer support on our website to respond to a wide range of incoming ,communications including ,inquiries ,opinions requests and .claims We take corrective actions and measures to prevent recurrence in the event of matters that we must address or resolve in connection with information .received We also take proactive efforts to incorporate customer feedback when forming these actions and preventive .measures Going ,forward we will further strengthen coordination among Hitachi Group companies and improve customer support and response mechanisms to respond to customer feedback more quickly and .effectively Contact Us Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 141
Sustainability for all In this section 144 Social contribution activities Through our ,business we are creating positive impact for people and the planet — delivering sustainability for .all Delivering positive impact Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 142
1* ,Science ,technology ,engineering the ,arts mathematics Social contribution activities 2025FY highlights JPY M2,091 Contributed by Hitachi 33,968 Participating Hitachi employees 60,650 Hours contributed Our social contribution activities nurture people and connect us to the future STEAM As a company driven by science and ,technology developing the talent of the future is .essential Through STEAM education ,support we are fostering the next generation of ,solvers-problem helping them unlock their creativity and solving-problem skills while strengthening the foundation for innovation and sustainable .growth Community support Wherever we have a ,presence we seek to build trust with our local .communities Through collaboration and ,support Hitachi promotes resilient communities and fosters ,harmonious term-long growth for those we call .neighbors Environment Addressing global environmental challenges — from climate change to resource scarcity — requires collective .action Through environmental education and based-community conservation ,initiatives we promote awareness and behavioral change that unlock greater sustainability and value creation for .all Science outreach programs using an electron microscope at an elementary school in the United (States Hitachi (Tech-High Beach cleanup by sustainability professionals gathered at Hitachi Rail Italy Meal box preparation for elderly residents in Hong (Kong Hitachi Digital and Hitachi (Vantara At the heart of our business approach is a commitment to addressing social ,challenges working toward a more Harmonized Society by promoting 1,*STEAM the environment and community .support Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 143
Approach to social contribution activities Under the Hitachi Group ,Identity we position social contribution activities as important activities that contribute to the creation of social and environmental ,value thereby supporting the sustainable development of both society and ,business and actively foster social contribution activities mainly in regions where we .operate With the social contribution statement Nurturing“ ,People Connecting to the ,Future we” engage in various activities focused on three key :areas (STEAM ,Science ,Technology ,Engineering ,Arts ,)Mathematics Environment and Community .support The Hitachi Group Policy on Social Contribution Activities clarifies s’Hitachi vision and approach to social contribution .activities Policy on Social Contribution Activities Funding for social contribution activities and the number of participating employees The Hitachi Group and the Hitachi Global Foundation provided 2,091 million yen in fiscal 2025 toward social contribution activities ,worldwide including initiatives to cultivate a talented younger generation and financial donations and other support for struck-disaster .areas A total of 33,968 Hitachi Group employees roughly( 11.8% of total employees participated) in social contribution .activities Support for employee social contribution activities Hitachi believes that each employee viewing social issues as their own and engaging actively in social contribution activities will lead to the growth of our entire .organization To this ,end we create systems that facilitate employee participation in social contribution .activities Social contribution scheme enabling Hitachi and employees to provide financial (support loans/donations together) Hitachi has introduced a social contribution scheme whereby financial (support loans/donations provided) by employees is matched by the .company The scheme not only helps to improve employee engagement through active social contribution ,activities but also gives added impact to the financial support provided by .employees Matching fund Hitachi makes use of a matching fund that enables employees to donate to nonprofit organizations in response to ,disasters ,accidents disease ,outbreaks or other such social .problems This matching fund utilizes a service provided by s’Canada Benevity which gives employees the ability to select the NPOs of their choice swiftly according to the social issues .faced Employees and the company have contributed a cumulative total of 92.05 million yen in donations to .date In fiscal 2025, these donations supported humanitarian assistance in Ukraine through the Japanese Red Cross ,Society earthquake relief efforts in Myanmar and Thailand and ,UNICEF among other .initiatives Microfinance Hitachi uses microfinance to provide loans to business owners in seven (fields ,agriculture ,education ,construction ,healthcare ,housing manufacturing and transportation that) contribute to solving social issues so that people in developing countries can become more .reliant-self This microfinance utilizes the crowdfunding platform provided by the US NPO Kiva ,Microfunds which works with microfinance institutions around the world online to provide individual support by matching borrowers with .lenders To ,date employees and the company have provided a total of USD 4.9 million in loans to 88,000 borrowers in 63 ,countries with a total of USD 150,000 provided in fiscal 2025. Hitachi sees microfinance as a way to break the chain of poverty in Social contribution activities 1* :Japan ,Hitachi .,Ltd 70 Group (companies 71 companies total and) the Hitachi Global .Foundation Outside :Japan 163 .companies Funding includes monetary and kind-in ,donations independently organized ,programs participation or dispatch of employees and employee .donations Funding excludes personnel costs incurred from the participation or dispatch of .employees Breakdown of funding for social contribution activities in 2025FY developing countries and will continue to work to support this type of financial .service Life support leave system ,Hitachi .Ltd introduced life support ,leave a paid leave program that employees can use for multiple purposes based on their needs at different life .stages The program supports employees in balancing ,work ,life career development and social ,contribution as well as autonomous work .styles Employees may take up to five days of leave per year for activities outside ,work including volunteer activities and serving as bone marrow or organ .donors In fiscal 2025, 4,153 employees used the ,program including 98 employees who participated in volunteer activities on 209 .occasions Examples of social contributions Hitachi engages in a wide range of social contribution ,activities both globally and in local ,communities with the aim of resolving social .issues Specific social contribution activities are published on social media with the hashtag .HitachiSocialGood# STEAM Hitachi fosters the development of the next generation through a wide range of ,initiatives including educational support activities that utilize the resources of Hitachi Group ,companies as well as grants and scholarships for young university faculty members and researchers in the natural .sciences Strengthening community engagement through digital skills development Hitachi Lift India has established an based-IT skill center in ,Noida ,India to strengthen the underserved community engagement and enhance digital ,literacy technical skills and career readiness among the members of the .community The center provides programs to develop basic IT skills ,employability contributing to expanded job opportunities and social participation for local communities in association with (Bombay-IIT a prestigious engineering and research .)institution This initiative supports human capital development through digital technologies and contributes to sustainable growth in the .region Hitachi Lift India will continue to create social value by fostering talent development tailored to local .needs Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 144
Educational outreach program for elementary school students (Hitachi China dispatched) employee volunteers to a primary school in collaboration with Hitachi ,Elevator Hitachi Energy and Hitachi .Tech-High ,Together the companies held classes for 195 elementary school students on ,science the environment and .safety These classes helped raise awareness of environmental protection and safety while fostering interest in science and .technology The companies also donated 630 educational ,materials including experimental teaching .kits STEM Innovation Lab The supported-GlobalLogic STEM Innovation Lab program aims to create an ecosystem that supports students learning’ in science by setting up STEM and robotics labs in government schools across .India These STEM labs give approximately 6,000 young ,people especially ,girls the opportunity to develop century-st21 skills and spark their interest in STEM and modern technologies such as ,robotics while making learning engaging and .enjoyable Through this ,initiative GlobalLogic helps provide equitable access to learning ,opportunities empowering young people to become the innovators who will help shape the .future Environment Hitachi engages in environmental education activities such as environmental experience classes and factory tours greening; activities such as forest conservation and tree planting and; cleanup activities around offices and ,factories as well as along .coastlines Environmental improvement through urban tree planting Hitachi Energy implemented planting-tree initiatives in India in collaboration with local communities to improve the urban .environment As part of efforts to promote greenery around urban ,infrastructure approximately 18,200 saplings were planted along a stretch of about one .kilometer In ,addition 7,400 saplings were planted across two public spaces in ,Vadodara and 6,200 saplings were planted at the Fire Department .campus These efforts contribute to greener urban ,environments improved biodiversity and the preservation of local .ecosystems This initiative has been carried out in partnership with Government ,authorities local stakeholders and relevant ,organizations with employee participation further strengthening environmental awareness and community .engagement Hitachi Energy will continue to work closely with local communities to help build a more sustainable .future Afforestation (activities Yasato (Forest Hitachi Tech-High regards corporate management that is in harmony with the global environment as an important factor in achieving sustainable development for society and the .corporation As a part of this ,approach the company received a loan of approximately 2.3 hectares of national forest in Ishioka ,City Ibaraki ,Prefecture under the Corporate Forest Program of the Forestry ,Agency and named this area the Hitachi Tech-High Yasato .Forest Since 2005, Hitachi Tech-High has engaged in a year60- program of afforestation activities in this .forest In fiscal 2025, volunteer members from the Hitachi Tech-High ,Group along with their families and secretariat ,staff participated in forest maintenance activities with the cooperation of the Ibaraki Forest Management Office and the Haga District Forest .Association The branch cutting ,process which involves removing branches from their base at the ,trunk helps produce quality-high .trees ,Thinning which involves removing some trees from an overcrowded ,forest creates a healthy forest where sunlight can penetrate .effectively Community support In addition to contributing to society through our business ,activities Hitachi also undertakes initiatives that leverage the resources developed through those activities to help solve issues and support development in local .communities To realize a sustainable ,society we engage in based-community initiatives while building trusting relationships with local .communities Fostering generation-next leaders in Asia through the Hitachi Young Leaders Initiative Hitachi .Ltd and Hitachi Asia have been supporting the Hitachi Young Leaders (Initiative HYLI since) 1996 with the aim of developing young leaders who will lead the next generation in .Asia The day-four ,program consisting of ,forums workshops and ,fieldwork is designed for university and graduate students from seven ASEAN countries and .Japan Participants discuss and exchange opinions on social issues facing ,ASEAN and on the final day of the ,program they make specific proposals for solving these social .issues In fiscal 2026, the th18 HYLI was held in the Philippines under the theme FLOW AS :ONE s’What next for a sustainable future As? of the end of May 2026, a total of 469 were active in various fields such as international ,organizations ,government companies and .NPOs Hitachi Young Leaders Initiative Disaster relief Hitachi promptly coordinates within the Hitachi Group to provide disaster relief and support for recovery efforts in affected ,areas depending on the scale of the .disaster Major activities include donations to organizations such as the Red Cross and the provision of relief .supplies Providing Donations for Earthquake Relief Efforts in Myanmar Hitachi donated a total of 40 million yen to the Japanese Red Cross Society and other organizations to support disaster relief and recovery efforts following the earthquake that struck central Myanmar on March 28, 2025. The Group also made donations to support programs administered by the American Red Cross and other organizations through a matching fund under which the company matches employee .donations Hitachi to donate to support the earthquake relief efforts in the central Myanmar Support for earthquake relief efforts in ,Kumamoto Japan Hitachi donated a total of 50 million yen to Kumamoto Prefecture and other recipients to support relief and recovery efforts for those affected by the earthquake that struck on July 28, 2026. In ,addition based on conditions and needs in the affected ,areas Hitachi Group worked with local governments and related organizations to provide essential relief ,supplies including drinking water and portable ,toilets were .delivered As part of our efforts to mitigate the impact of extreme ,heat Hitachi Group also delivered spot coolers that can be used without installation work and worked closely with local stakeholders to install commercial air conditioning .units Hitachi to donate to support the 2026 Kumamoto Earthquake relief efforts Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 145
Contributing to society through the Hitachi Global Foundation The Hitachi Global Foundation conducts activities that contribute to the public good centered on three :areas promotion of academic ,research science and technology human; development and; realization of an inclusive .society These contributions are in line with the intention of Namihei ,Odaira the founder of ,Hitachi to contribute to society through business .activities The Hitachi Global Foundation Examples of the Hitachi Global Foundation activities Area Category Details Promotion of Academic ,Research Science and Technology The Kurata Grants A grant program supporting researchers working to solve global social challenges by subsidizing original pioneering research in the natural sciences and ,engineering and research in humanities and the social sciences related to highly technological .societies We awarded the th57 Kurata Grant in fiscal 2025. The Hitachi Global Foundation Science and Technology Seminars An raising-awareness initiative providing opportunities for the public to learn more about edge-cutting science technology ,topics with the aim of supporting people in discovering the fascinating fields of .science We hosted an event titled Spotting Deepfakes AI— That Creates .vs AI That Protects in fiscal 2025. Deepfake :Detection Generative AI .vs Detection (AI Japanese (only The Hitachi Global Foundation Asia Innovation Award An initiative providing awards for achievements in research and development in science and technology innovation that help to solve social challenges in the ASEAN .region The th6 Hitachi Global Foundation Asia Innovation Award marked the s’event first overseas ,edition held in ,Jakarta .Indonesia This ceremony recognized the achievements of award recipients and deepened disciplinary-cross and organizational-cross collaboration among researchers through the participation of scholarship .alumni Report on the Hitachi Global Foundation Asia Innovation Award Ceremony 2025 Hitachi Fund Support for Research Related to Infectious Diseases A research grant initiative aimed at conducting academic ,investigations analysis and reflections on issues that became apparent under -19COVID using data and ,evidence and sharing findings and research results .internationally The grant program ended in fiscal 2024. We published a research report in October 2025 containing the research findings and the proceedings of the international symposium held in February (2025. Available on the s’foundation website and has been donated to major libraries across (.Japan Final Research :Report The Hitachi Fund Support for Research Related to Infectious Diseases Human Development Hitachi Future Innovator Program An exploratory learning program designed to help children discover and solve problems on their own at school with the aim of creating an ideal .school Hitachi Group employees serve as instructors to support learning by giving advice on the s’children .ideas In fiscal 2025, 47 employees from 11 Hitachi Group companies participated as .instructors We have implemented the program at 37 elementary schools for 2,569 students to .date Girls in Science Support Project A program aiming to support science and engineering education for women by sparking interest and enthusiasm for these fields among female junior and senior high school students in .Japan In fiscal 2025, the program focused on the topic of Designing the Future of :STEM The Society We Envision 10 Years From Now and provided a forum for women and men to discuss the future of women in STEM from the perspective of gender .bias PIONEER (TALK Japanese (only Realization of an Inclusive Society Realization of an Inclusive Society A program urging a shift in public understanding among citizens to create inclusive societies in which people accept various viewpoints and .values We foster disciplinary-cross exchange and mutual understanding among researchers and individuals directly ,affected while broadly sharing the experiences and activities of these .individuals We have published the Hitachi Global Foundation Global Society ,Review an electronic ,journal twice a year since December 2023. In fiscal 2025, we published Issues 4 and 5 of the Hitachi Global Foundation Global Society .Review Hitachi Global Foundation Global Society (Review (Japanese Hitachi Global Foundation Global Society (Review English (Summary Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 146
In this section 148 Environmental data 157 Social data 166 Governance data ESG data Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 147
GHG emissions throughout the value chain Calculating GHG emissions throughout the value (chain Fiscal (2025 Hitachi calculates GHG emissions throughout the value chain by referencing GHG Protocol .standards This gives us a good grasp of where and how much emissions occur in our value ,chain with which we can establish effective targets and implement reduction .measures Most of the greenhouse gases emitted by Hitachi as a whole are related-energy 2.CO An extremely high share of our value chain emissions comes from the use of the products and services we .sell We thus believe that we can make a major contribution to decarbonization through our businesses by giving priority to enhancing the efficiency and saving-energy features of our products and .services Environmental data 2027 Environmental Action (Plan fiscal (2027–2025 :house-In Within the scope of the s’company organizational .boundaries In ,principle all business activities of the company itself and activities within or controlled by its consolidated subsidiaries :Upstream In ,principle activities related to products and services that are purchased :Downstream In ,principle activities related to products and services that are sold Raw Materials and Parts Production ,Transport Procurement,Use of Waste Recycling/Disposal Scope 3 Upstream Scope 3 Downstream 1 Purchased goods and services ,Suppliers .etc 7.2% 2 Capital goods Construction ,companies .etc 0.7% 3 -Fuel and -energy related activities not included in Scope 1 and 2 Extraction ,companies .etc 0.0% 4 Upstream transportation and distribution Shipping companies 0.2% 9 Downstream transportation and distribution Shipping companies 0.0% 0.0% 10 Processing of sold products Processors of intermediate products Use of sold products Product end users 91.3% life-of-End treatment of sold products Waste treatment companies 0.1% Downstream leased assets Users of leased assets 0.0 A/N % Franchises Franchise members Investments Investment destinations 0.1% Scope 1 Direct emissions from house-in fuel use and industrial processes 0.1% Scope 2 related-Energy indirect emissions Indirect emissions from production of electricity and heat purchased by the 0.1%company 5 Waste generated in operations Waste treatment companies 0.0% 0.1% 0.0% 6 Business travel Transportation ,companies .etc Transportation ,companies .etc 7 Employee commuting 8 Upstream leased assets Leasing companies Included in Scope 1 and 2 11 12 13 14 15 Direct emissions Scope 2 Indirect emissions from production of electricity and heat purchased by the company Scope 3: Upstream Other indirect emissions not covered by Scope 1 and (2 Emissions by other entities related to the s’company (activities Scope 1 Direct emissions from house-in fuel use and industrial processes Scope 3: Downstream Other indirect emissions not covered by Scope 1 and (2 Emissions by other entities related to the s’company (activities 209.64 e2CO-Mt Total greenhouse gas emissions e2CO-Mt0.16 [0.1%] e2CO-Mt17.27 [8.2%] e2CO-Mt0.30 [0.1%] e2CO-Mt191.91 [91.5%] Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 148
Detailed data on GHG emissions throughout the Hitachi value (chain Hitachi ,Group Fiscal (2025 :Note GHG emissions quantification is subject to uncertainty when measuring activity ,data determining emission factors and considering scientific uncertainty inherent in the Global Warming Potentials 1* Aggregated according to s’Hitachi internal categories all; manufacturing sites and manufacturing-non sites for category A and .B The row “labeled Of ,which category A is” aggregated for category A .only In the ,text unless otherwise ,noted the aggregation pertains to category ,A which is subject to environmental management 2* Including 6,SF ,PFC ,HFC ,O2N 3,NF 4CH and .FN4-C The gas and fuel oil conversion factors are based on the list of calculation methods and emission factors used in the Greenhouse Gas Emissions ,Calculation Reporting and Publication .System The gas conversion factors not specified in the list are based on the values stipulated by Hitachi on technical literature 3* 2CO emissions from electricity consumption is calculated using a based-market calculation .method 2CO electrical power conversion :factors We used adjusted conversion factors for individual power businesses based on the Act on Promotion of Global Warming Countermeasures in .Japan In ,China we used the average emissions factor published by the government for the regional power .grid For other ,countries we used the latest values for each fiscal year supplied by the International Energy (Agency IEA for) individual countries or by power supply companies 4* Scope 3 Category 1 emissions are calculated for externally procured goods and services managed through respective procurement systems of Hitachi Group ,companies using data collected through s’Hitachi procurement data aggregation system 5* Emissions are calculated based on the annual energy consumption of each final product manufactured by ,Hitachi multiplied by the number of units ,sold the s’product lifetime and the 2CO emission .factor GHG emissions from 6SF leakage are also included in the calculations for certain ,products such as transformers and .switchgear 2CO emission factors are based on IEA specific-country emission (factors mainly 2023 (version Category Description Reporting boundary (Emissions e2CO-Mt Percentage) (%) Total Scope 1, 2, and 3 Hitachi Group 209.64 100.00 Total Scope 1 and 12 Hitachi Group 0.46 0.22 Scope 21 Direct 1emissions Direct emissions from house-in fuel use and industrial (processes aggregate of all manufacturing sites and manufacturing-non sites for category A and B Hitachi) Group 0.30 0.14 Of ,which category A Direct emissions from house-in fuel use and industrial (processes aggregated for category A only Hitachi) Group 0.29 0.14 Scope 32 related-Energy indirect 1emissions Indirect emissions from production of electricity and heat purchased by the (company aggregate of all manufacturing sites and manufacturing-non sites for category A and B Hitachi) Group 0.16 0.07 Of ,which category A Indirect emissions from production of electricity and heat purchased by the (company aggregated for category A only Hitachi) Group 0.11 0.05 Scope 3 Total Hitachi Group 209.18 99.78 Scope 3 (Upstream other indirect (emissions 1 Purchased goods and 4services Emissions from the resource extraction stage to the manufacturing ,stage including raw ,materials ,parts supplied ,products and sales Hitachi Group 15.09 7.20 2 Capital goods Emissions generated in the ,construction ,manufacture and shipping of the s’company own capital ,goods such as ,equipment ,devices ,buildings ,facilities and vehicles Hitachi Group 1.44 0.69 3 -Fuel and -energy related activities not included in Scope 1 and 2 Emissions from procuring the fuel necessary for electricity and other energy ,production including resource ,extraction ,production and shipping Hitachi Group 0.06 0.03 4 Upstream transportation and distribution Emissions from the distribution of raw ,materials ,parts products ,supplied and sales prior to the delivery of materials to the ,company as well as other distribution activities of products for which the company bears the expense Hitachi Group 0.50 0.24 5 Waste generated in operations Emissions from the ,transportation ,disposal and treatment of waste generated from the s’company operations Hitachi Group 0.02 0.01 6 Business travel Emissions generated from the fuel and electricity used by employees for business travel Hitachi Group 0.05 0.02 7 Employee commuting Emissions generated from the fuel and electricity used by employees commuting Hitachi Group 0.11 0.05 8 Upstream leased assets Emissions from the operation of assets leased by the ,company excluding those counted in Scope 1 and 2 Hitachi Group Included in Scope 1 and 2 ー Scope 3: (Downstream other indirect (emissions 9 Downstream transportation and distribution Emissions from the ,transportation ,storage loading and ,unloading and retail sales of products Hitachi Group 0.01 0.00 10 Processing of sold products Emissions by downstream companies during the processing of intermediate products Hitachi Group 0.02 0.01 11 Use of sold 5*products Emissions from the use of products by end ,users such as consumers and businesses Hitachi Group 191.46 91.33 12 life-of-End treatment of sold products Emissions from the ,transportation waste ,disposal and treatment of products by end ,users such as consumers and businesses Hitachi Group 0.22 0.10 13 Downstream leased assets Emissions from the operating of assets owned by the reporting company as the ,lessor which are leased to other entities Hitachi Group 0.02 0.01 14 Franchises Emissions by franchises under Scope 1 and 2 Hitachi Group A/N ー 15 Investments Emissions related to the management of investments Hitachi Group 0.18 0.09 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 149
:Note Aggregated for category A only until fiscal 2022 according to s’Hitachi internal .categories Aggregated for all manufacturing sites and manufacturing-non sites for category A and B for fiscal 2023 according to s’Hitachi internal categories 1* Significant decrease for fiscal 2022 due to deconsolidation of related-materials and construction related-machinery companies 2* In fiscal 2023, the amount decreased due to the deconsolidation of the auto related-parts companies 3* Used kWh/MJ3.6 in the conversion from calorific value 4* Past figures have been partly revised Environmental load from operations Energy inputs and GHG emissions during business operations Energy inputs Reporting boundary Unit 2021FY 12022FY 22023FY 2024FY 2025FY Hitachi Group GWh 9,957 5,387 3,353 3,178 2,948 Energy inputs Electricity Total Hitachi Group GWh 193 706 769 863 1,045 generated-Self( :amount Includes site-on PPA Hitachi) Group GWh 34 25 29 41 56 :Purchases( Includes fossil-non certificates Hitachi) Group GWh 159 681 741 822 989 Fuel and 3heat 4Biofuel Hitachi Group (GWh PJ ー) ー 62 (0.2) 66 (0.2) 64 (0.2) renewable-Non energy Electricity Electricity Hitachi Group GWh 4,584 2,218 715 510 355 Fuel and 3*heat City gas Hitachi Group (GWh billion (3m 1,373 (0.11) 767 (0.06) 665 (0.06) 631 (0.05) 89 (0.01) ,LPG LNG Hitachi Group (GWh (kt 1,705 (118) 1,217 (82) 989 (65) 971 (64) 969 (64) Other natural gas Hitachi Group (GWh billion (3m 319 (0.03) 261 (0.02) 46 (0.004) 52 (0.005) 286 (0.027) Fuel (oil heavy ,oil ,kerosene .etc Hitachi) Group (GWh (ML 495 (47) 197 (19) 95 (9) 74 (7) 78 (7) Solid (fuel coke Hitachi) Group (GWh kt (1,278) 156 ー) ー ー ー ,Steam hot water and cold water Hitachi Group (GWh (PJ 10 (0.04) 21 (0.08) 12 (0.04) 12 (0.04) 62 (0.22) Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 150
:Note 2CO emissions from electricity consumption is calculated using a based-market calculation .method 2CO emission coefficients for (Japan including power plants are) the latest adjusted emission coefficients for each electric utility based on the Act on Promotion of Global Warming .Countermeasures For ,China we use the average emissions factor for the regional power grid published by the .government For countries other than Japan and ,China we use the latest IEA emission factors by country for each fiscal year or the latest factors provided by power supply companies :Note The gas and fuel oil conversion factors are based on the list of calculation methods and emission factors used in the Greenhouse Gas Emissions ,Calculation Reporting and Publication .System The gas conversion factors not specified in the list are based on the values stipulated by Hitachi on technical literature :Note Aggregated for category A only until fiscal 2022 according to s’Hitachi internal .categories Aggregated for all manufacturing sites and manufacturing-non sites for category A and B for fiscal 2023 according to s’Hitachi internal categories 1* Significant decrease for fiscal 2022 due to deconsolidation of related-materials and construction related-machinery companies 2* In fiscal 2023, the amount decreased due to the deconsolidation of the auto related-parts .companies HFC emissions saw a significant increase as related-recycling companies were added to the aggregation scope 3* Total :GHGs Scope 1 and 2 total 4* The sources included in the calculation of greenhouse gas emissions other than related-energy 2,CO are as :follows carbon dioxide from cooling and welding ,applications methane used for research ,purposes (hydrofluorocarbons ,)HFC (perfluorocarbons ,)PFC sulfur hexafluoride ,)6SF( ,methane nitrogen (trifluoride ,)3NF dinitrogen (monoxide O2N from) the manufacture of semiconductor devices and testing of semiconductor inspection ,equipment hydrofluorocarbons from the recovery of HFCs during the disposal of refrigeration and air conditioning ,equipment sulfur hexafluoride from the ,production ,filling and testing of voltage-high transformers and power transmission and distribution equipment 5* A ,gas in mixture with carbon dioxide and ,oxygen used as an insulating gas that serves as an alternative to 6,SF which has a high greenhouse effect 6* From fiscal 2025, HFC emissions for a related-recycling company have been calculated based on actual measured values Greenhouse gases emitted Reporting boundary Unit 2021FY 12022FY 22023FY 2024FY 62025FY Total greenhouse 3gases Hitachi Group e2CO-kt 3,412 1,565 676 601 460 related-Energy total 2CO emissions Total Hitachi Group 2CO-kt 3,384 1,538 618 533 425 Direct( emissions Hitachi) Group 2CO-kt 1,245 459 339 325 268 Indirect( emissions Hitachi) Group 2CO-kt 2,139 1,079 279 208 157 Total other than related-energy 2CO greenhouse gas 4*emissions Total Hitachi Group e2CO-kt 28.2 26.7 58.6 68.3 35.4 Sulfur (hexafluoride 6SF Hitachi) Group e2CO-kt 20.4 22.0 33.2 39.6 32.2 (Perfluorocarbons PFC Hitachi) Group e2CO-kt 1.9 1.3 0.9 0.1 0.4 (Hydrofluorocarbons HFC Hitachi) Group e2CO-kt 3.3 2.4 22.5 26.6 1.4 Dinitrogen ,monoxide nitrogen ,trifluoride (methane ,O2N 3,NF 4CH Hitachi) Group e2CO-kt 2.5 0.9 1.9 1.7 1.1 2CO from energy-non sources Hitachi Group e2CO-kt 0.1 0.2 0.2 0.2 0.2 (fluoronitrile4-C 5)*FN4-C Hitachi Group e2CO-kt ー ー ー 0.0 0.0 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 151
:Note Figures in parentheses indicate the amount of waste defined as hazardous under the Basel .Convention The amount of hazardous substances in parentheses is included in the total as a subtotal 1* In fiscal 2022, the significant decrease is due to deconsolidation of related-materials and construction related-machinery companies 2* In fiscal 2022, the amount includes the input of raw materials from auto related-parts companies that have been consolidated since fiscal 2020 3* From fiscal 2023, the amount includes the input of raw materials from related-energy companies that have been consolidated since fiscal 2020. The input of raw materials from auto related-parts companies has been excluded due to their deconsolidation 4* The amount decreased due to a revision of the calculation method 5* In fiscal 2022, the amount includes the waste and valuables generated by related-energy and auto related-parts companies that have been consolidated since fiscal 2020 6* In fiscal 2023, the amount decreased due to the deconsolidation of auto related-parts companies Raw material inputs and waste and valuables generation during business operations Raw material inputs Waste and valuables generated Reporting boundary Unit 2021FY 1,22022FY 32023FY 42024FY 42025FY Total amount of raw materials Hitachi Group kt 3,235 788 3,345 1,617 750 Raw materials Metals Total metals Hitachi Group kt 3,083 685 2,430 1,126 499 New materials Hitachi Group kt 909 614 2,428 1,124 400 Recycled ,materials .etc Hitachi Group kt 2,175 71 2 2 99 Plastics Total plastics Hitachi Group kt 74 43 148 113 38 New materials Hitachi Group kt 72 40 146 111 32 Recycled ,materials .etc Hitachi Group kt 2 3 2 2 6 Other materials Total other materials Hitachi Group kt 77 61 767 377 214 New materials Hitachi Group kt 76 54 766 377 197 Recycled ,materials .etc Hitachi Group kt 1 7 0.1 0.1 16.6 Reporting boundary Unit 2021FY 1,52022FY 62023FY 2024FY 2025FY Total waste and valuables generated Total (/ hazardous Hitachi) Group kt 1,111 (61)/ 356 (57)/ 164 (13)/ 154 (14)/ 162 (14)/ Waste reduction Hitachi Group kt 74 (10.5)/ 47 (23.1)/ 11 (4.4)/ 7 (3.3)/ 9 (3.5)/ Recycle Reuse Hitachi Group kt 36 (18.7)/ 18 (6.2)/ 7 (0.3)/ 7 (0.4)/ 10 (0.2)/ Materials recycled Hitachi Group kt 784 (19.3)/ 256 (16.7)/ 131 (6.0)/ (6.9)122/ 122 (7.1)/ Thermal recovery Hitachi Group kt 13 (6.5)/ 16 (4.6)/ 11 (1.6)/ 14 (2.7)/ (3.0)17/ Landfill Hitachi Group kt 204 (5.7)/ 20 (6.5)/ 4 (0.6)/ 4 (0.4)/ 4 (0.3)/ Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 152
Water Inputs and effluent discharges and consumption during business operations Water input Water intensity Water effluents discharged Reporting boundary Unit 2021FY 22022FY 2023FY 2024FY 2025FY Water 6intensity Hitachi Group Million 3/m billions of yen 0.0025 0.0013 0.0012 0.0009 0.0009 Reporting boundary Unit 2021FY 2,32022FY 42023FY 2024FY 2025FY Total water 1withdrawal All areas / Areas( with water stress Hitachi) Group Million 3m 26.03 14.23 10.59 (1.26)9.20/ 9.46 (1.38)/ Surface water Tap water water( for drinking and other household (uses All areas / Areas( with water stress Hitachi) Group Million 3m 5.23 5.53 2.37 (0.53)2.23/ 2.53 (0.65)/ Industrial ,water river water All areas / Areas( with water stress Hitachi) Group Million 3m 12.47 5.17 5.28 4.33 (0.38)/ 3.99 (0.40)/ Rain 5water All areas / Areas( with water stress Hitachi) Group Million 3m 0.01 0.01 0.01 0.16 (0.09)/ 0.09 (0.05)/ Groundwater All areas / Areas( with water stress Hitachi) Group Million 3m 8.32 3.52 2.93 2.48 (0.26)/ 2.85 (0.28)/ Recycled (water Recycled from the wastewater of other (organizations All areas / Areas( with water stress Hitachi) Group Million 3m 0.01 0.00 0.00 0.00 (0.00)/ 0.00 (0.00)/ Reporting boundary Unit 2021FY 2,32022FY 4,72023FY 2024FY 2025FY Total water effluents discharged All areas (/ Areas with water stress Hitachi) Group Million 3m 21.25 12.15 9.14 (0.98)8.22/ 8.29 (1.03)/ Public water All areas (/ Areas with water stress Hitachi) Group Million 3m 15.40 8.26 6.30 5.80 (0.35)/ 5.33 (0.35)/ Sewerage All areas (/ Areas with water stress Hitachi) Group Million 3m 5.31 3.76 2.75 2.26 (0.62)/ 2.58 (0.67)/ Groundwater All areas (/ Areas with water stress Hitachi) Group Million 3m 0.54 0.12 0.09 0.16 (0.00)/ 0.38 (0.01)/ Water 8*quality (BOD biochemical oxygen demand Hitachi) Group t 156 77 9 7 5 (COD chemical oxygen demand Hitachi) Group t 301 137 2 2 3 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 153
:Note Figures in parentheses are the amount from all areas with water stress 1* Figures through fiscal 2021 represent water usage in manufacturing processes and general daily usage at manufacturing sites classified as Category A within ,Hitachi as well as general daily usage at locations other than manufacturing .sites Figures for fiscal 2022 through fiscal 2024 represent water usage in manufacturing processes and general daily usage at Category A manufacturing .sites Figures for fiscal 2025 represent water usage in manufacturing processes and general daily usage at all manufacturing sites 2* Fiscal 2022 water usage of an related-energy and auto related-parts companies included in the scope of consolidation since fiscal 2020 is included in the reported figures above 3* Significant decrease in fiscal 2022 due to deconsolidation of related-materials and construction related-machinery companies 4* In fiscal 2023, the amount decreased due to the deconsolidation of the auto related-parts companies 5* From 2024,FY if the amount of water withdrawal exceeds the sum of water effluents discharged and (consumption water withdrawal > water effluents discharged + ,)consumption the difference is added to the .consumption If the amount of water withdrawal is less than the sum of water effluents discharged and (consumption water withdrawal < water effluents discharged + ,)consumption the difference is added to the rainwater in the water withdrawal 6* Water withdrawal divided by s’Hitachi revenue in billions of Japanese yen 7* For fiscal 2023, the above reported values include COD/BOD of energy companies that have been consolidated since fiscal 2020 8* Water quality for fiscal 2023 decreased due to a revision in the aggregation .method This revision excluded discharges to sewage systems and counted only either BOD or COD for the same discharge destination :Note Sulfur (oxides SOx and) nitrogen (oxides NOx are) chemical emissions that are released from the combustion of ,fuel not due to the chemicals used 1* We selected 50 substances from the perspective of hazards and atmospheric emissions 2* Significant decrease in fiscal 2022 due to deconsolidation of related-materials and construction related-machinery companies 3* In fiscal 2023, the amount decreased due to the deconsolidation of the auto related-parts companies 4* Approximately 100% of chemical emissions classified as VOCs 5* Past figures have been partly revised Consumption Chemical substances handled Chemical substances discharged Inputs and discharges of chemical substances during business operations Reporting boundary Unit 2021FY 2,32022FY 42023FY 2024FY 2025FY Total consumption All areas (/ Areas with water stress Hitachi) Group Million 3m 4.78 2.08 1.45 0.98 (0.28)/ 1.17 (0.35)/ Contained in products All areas (/ Areas with water stress Hitachi) Group Million 3m 0.00 0.00 0.00 0.00 (0.00)/ 0.00 (0.00)/ Contained in waste All areas (/ Areas with water stress Hitachi) Group Million 3m 0.01 0.00 0.00 0.00 (0.00)/ 0.00 (0.00)/ ,Evaporation .etc All areas (/ Areas with water stress Hitachi) Group Million 3m 4.77 2.08 1.45 0.98 (0.28)/ 1.17 (0.35)/ Reporting boundary Unit 2021FY 32022FY 42023FY 2024FY 2025FY Total chemical substances 1handled Chemical substances handled Hitachi Group kt 26.20 1.70 0.97 0.68 0.65 Reporting boundary Unit 2021FY 22022FY 32023FY 52024FY 2025FY Total chemical substances discharged Hitachi Group kt 3.50 1.39 0.65 0.49 0.55 Chemical substances discharged Chemical substances 4*discharged ,VOC( .etc Hitachi) Group kt 2.50 1.09 0.62 0.47 0.45 (SOx sulfur oxides Hitachi) Group kt 0.2 0.01 0.00 0.00 0.04 (NOx nitrogen oxides Hitachi) Group kt 0.8 0.29 0.03 0.02 0.06 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 154
:Note Companies with at least one certified business site 1* Significant changes in fiscal 2022 resulting from both the increase caused by the consolidation of an related-energy company and the decrease caused by the deconsolidation of related-materials and construction related-machinery companies 2* In fiscal 2023, the amount decreased due to the deconsolidation of the auto related-parts companies Environmental management data Number of ISO 14001 certified companies Number of regulatory violations and complaints Reporting boundary Unit 2021FY 12022FY 2,32023FY 2024FY 2025FY Total Hitachi Group Companies 185 281 178 184 181 Japan Hitachi Group Companies 66 66 45 44 44 China Hitachi Group Companies 43 61 34 29 29 ,ASEAN India and the rest of Asia Hitachi Group Companies 43 50 27 36 29 North America Hitachi Group Companies 9 13 15 16 14 Europe Hitachi Group Companies 15 52 47 44 49 Other Hitachi Group Companies 9 39 10 15 16 Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Regulatory violations Water quality Hitachi Group Cases 2 0 1 0 3 Air quality Hitachi Group Cases 0 2 0 0 1 Waste materials Hitachi Group Cases 3 0 2 2 1 (Other equipment ,registration .etc Hitachi) Group Cases 3 0 0 1 0 Complaints Hitachi Group Cases 3 0 1 0 0 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 155
1* Economic effects include the :following Net income :effects Real income from the sale of valuable materials and environmental technology patents Cost reduction :effects Reductions in ,electricity waste ,treatment and other expenses through activities that reduce environmental loads 2* In fiscal 2022, the amount decreased significantly due to deconsolidation of related-materials and construction related-machinery .companies The costs of an related-energy company which has been consolidated since fiscal 2020 are not included 3* In fiscal 2023, the amount decreased due to the deconsolidation of the auto related-parts companies 1* Equipment depreciation costs are calculated using the line-straight method over five years 2* In fiscal 2022, the amount decreased significantly due to deconsolidation of related-materials and construction related-machinery .companies The costs of an related-energy company which has been consolidated since fiscal 2020 are not included 3* In fiscal 2023, the amount decreased due to the deconsolidation of the auto related-parts companies Environmental accounting Environmental liability As the amounts that we can reasonably project as future environmental liabilities as of end of April 2026, we recorded 3.0 billion yen in costs for the disposal of waste containing PCBs and 0.8 billion yen to clean up contaminated .soil Environmental protection effects Environmental protection costs Economic 1effects Major 2025FY activities Reporting boundary Unit 2021FY 22022FY 32023FY 2024FY 2025FY Total Hitachi Group Billion Yen 19.20 11.95 1.65 1.30 1.17 Net income effects Recovering value from waste by sorting and recycling Hitachi Group Billion Yen 15.15 7.89 1.15 0.83 0.98 Cost reduction effects Installing efficiency-high (equipment ,lighting power ,supply .etc Hitachi) Group Billion Yen 4.05 4.06 0.50 0.47 0.19 Reporting boundary Unit 2021FY 22022FY 32023FY 2024FY 2025FY Total Hitachi Group Billion Yen 79.97 57.21 44.35 41.28 60.83 Expenses Business area Maintenance costs for equipment with low environmental ,loads ,depreciation 1.etc Hitachi Group Billion Yen 19.56 6.30 4.55 4.47 4.88 /Upstream Downstream Green procurement ,expenses recovery and recycling of products and ,packaging recycling expenses Hitachi Group Billion Yen 0.64 0.08 0.06 0.06 0.05 Administration Labor costs for environmental management and the implementation and maintenance of environmental management systems Hitachi Group Billion Yen 5.40 3.06 3.14 2.83 3.09 Research and development Costs of research and development and product designs to reduce the environmental burden caused by products and production processes Hitachi Group Billion Yen 53.79 47.55 36.37 33.66 52.56 Social activities ,Planting beautification and other environmental improvement costs Hitachi Group Billion Yen 0.26 0.11 0.15 0.18 0.25 Environmental remediation Environmental mitigation ,costs contributions and charges Hitachi Group Billion Yen 0.32 0.11 0.08 0.08 0.01 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 156
Human capital Social data Employee data Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Number of employees by( region Hitachi) Group Total People 368,247 322,525 1268,655 282,743 287,901 By( region Japan) People 156,768 133,762 113,737 112,749 115,544 China People 50,707 43,410 33,167 33,735 35,088 ,ASEAN India and the rest of Asia People 69,876 62,614 52,704 55,655 54,026 North America People 27,914 22,863 17,906 19,683 18,866 Europe People 42,519 43,155 42,240 50,657 53,295 Other areas People 20,463 16,721 8,901 10,264 11,082 Number of employees by( gender and age Hitachi) 2Group Total People 283,020 294,746 237,160 246,797 256,007 By( gender Men) People 227,652 230,947 185,607 191,444 198,034 Women People 55,368 63,799 51,553 55,353 57,973 By( 3)*age 19–15 years old % 0.4 0.5 0.4 0.3 0.4 Japan % 0.3 0.2 0.2 0.2 0.2 Outside Japan % 0.1 0.2 0.2 0.2 0.2 29–20 years old % 15.2 19.0 19.9 19.5 19.7 Japan % 8.2 6.6 7.3 7.5 7.8 Outside Japan % 7.0 12.4 12.5 12.0 12.0 39–30 years old % 27.8 29.5 28.1 28.1 28.2 Japan % 12.7 9.8 10.1 9.6 9.4 Outside Japan % 15.1 19.6 18.0 18.5 18.8 49–40 years old % 28.5 26.2 25.1 25.3 25.5 Japan % 17.5 13.0 13.1 12.2 11.6 Outside Japan % 11.0 13.1 12.0 13.2 13.9 59–50 years old % 25.6 22.6 23.9 23.7 23.2 Japan % 19.1 15.9 17.2 16.2 15.7 Outside Japan % 6.5 6.7 6.7 7.4 7.5 69–60 years old % 2.4 2.2 2.6 2.9 3.0 Japan % 0.6 0.4 0.5 0.5 0.4 Outside Japan % 1.8 1.8 2.1 2.5 2.6 Over 70 years old % 0.1 0.1 0.1 0.1 0.1 Japan % 0.0 0.0 0.0 0.0 0.0 Outside Japan % 0.1 0.1 0.1 0.1 0.1 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 157
1* The decrease in the number of group employees from the previous fiscal year is mainly due to the deconsolidation of Hitachi Astemo 2* Manufacturing workers not registered in the employee database and employees of some newly consolidated companies are not .included As of the end of fiscal 2025, the number of manufacturing workers not registered in the employee database was 22,000 3* Hitachi does not employ 14–0 years old children 4* The figures are based on enrolled employees with employment ,contract including those seconded from Hitachi Group to other companies and those taking ,leave and excluding those seconded from other companies to Hitachi (Group as of March (31 5* Figures include only voluntary resignations Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Number of employees by( gender and age ,Hitachi) .Ltd Total People 29,485 28,672 28,111 25,892 25,934 By( gender Men) People 23,749 22,939 22,375 20,340 20,229 Women People 5,736 5,733 5,736 5,552 5,705 Average age Hitachi 2Group Total Age 41.7 40.4 40.6 40.8 40.9 By( gender Men) Age 42.1 40.9 41.2 41.3 41.4 Women Age 40.2 38.5 38.5 38.8 39.2 ,Hitachi .Ltd Total Age 43.3 43.4 43.4 42.9 42.3 By( gender Men) Age 43.8 43.9 43.9 43.4 42.9 Women Age 41.1 41.2 41.3 40.8 40.3 Average service (years( Hitachi 2Group Total Years 13.5 12.6 12.9 12.6 11.8 By( region Japan) Years 18.1 18.3 19.2 18.7 17.6 China Years 9.2 10.2 11.2 11.1 10.6 ,ASEAN India and the rest of Asia Years 8.2 7.1 5.0 5.0 4.8 North America Years 7.5 8.3 8.2 8.0 7.8 Europe Years 5.7 9.1 8.8 9.3 8.8 Other areas Years 5.7 6.7 6.8 6.7 6.2 By( gender Men) Years 13.8 13.4 13.7 13.3 12.5 Women Years 10.9 10.1 10.1 10.0 9.4 ,Hitachi .Ltd Total Years 18.5 18.6 18.5 18.1 17.0 By( gender Men) Years 19.0 19.2 19.1 18.7 17.6 Women Years 16.2 16.3 16.4 15.8 14.9 Turnover 4,rate 5 Hitachi 2Group Total % 7.5 8.5 6.3 5.8 6.0 By( region Japan) % 3.3 2.6 2.6 2.4 2.2 Outside Japan % 13.1 13.5 9.7 8.7 9.0 By( gender Men) % 7.1 7.8 6.1 5.9 5.8 Women % 8.9 10.8 6.9 5.5 6.4 ,Hitachi .Ltd Total % 1.8 2.0 2.1 2.0 2.1 By( gender Men) % 1.7 1.8 2.1 1.9 2.0 Women % 2.3 2.8 2.6 2.4 2.6 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 158
Talent development AI professional talents Employee engagement 1* Targets of the survey are ,Hitachi .,Ltd group companies with more than 500 ,employees some major group companies and regional .headquarters We compiled the results of the companies that responded 2* The past figure has been revised 1* The figures are the cumulative count of achievements meeting the prescribed ,criteria including completion of internal development programs and acquisition of certified-vendor related-AI .qualifications Figures are shown in thousands 1* Employee engagement score measures the positive response rate of 4 factors - pride in working for Hitachi whether; it is a workplace one would recommend to others as a great place to work job; satisfaction and sense of accomplishment and; desire to continue working for Hitachi for the foreseeable future Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Number of participants of management training programs Hitachi Group For management leaders People 76 87 72 74 48 For managers People 3,900 4,191 3,871 4,186 3,831 Training hours per employee Hitachi 1Group Hours 25.9 27.9 30.4 32.5 31.6 Average amount invested in training per employee Hitachi 1Group Yen 58,300 77,400 86,405 284,513 82,600 Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Employee engagement 1score Hitachi Group Global average Points 65 69.5 68.6 71.5 73.3 By( region Japan) Points 56 61.2 61.6 63.2 65.6 Outside Japan Points 80 82.3 80.2 80.9 81.6 Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Number of AI professional 1*talents Hitachi Group People ー ー ー 22,000 39,000 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 159
Registered ,employees ,managers ,wage new hires Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Number and ratio of registered 1employees Hitachi 2Group Total number of registered employees People 291,028 301,320 241,504 253,983 263,171 Number and ratio of women employees People (%) 58,830 (20.2) 67,224 (22.3) 54,315 (22.5) 58,801 (23.2) 61,645 (23.4) By( region Japan) People (%) 26,773 (16.5) 24,832 (17.9) 22,815 (19.4) 23,590 (20.2) 24,648 (20.8) China People (%) 7,594 (35.7) 7,869 (35.1) 4,504 (34.3) 4,666 (33.5) 4,887 (33.3) ,ASEAN India and the rest of Asia People (%) 9,120 (20.6) 15,851 (25.2) 11,359 (25.7) 11,785 (26.0) 12,322 (25.7) North America People (%) 4,954 (25.7) 5,076 (25.1) 4,049 (24.3) 4,689 (25.3) 4,647 (25.0) Europe People (%) 6,761 (23.8) 9,705 (23.6) 9,707 (24.0) 11,868 (24.6) 12,756 (24.7) Other areas People (%) 3,628 (23.4) 3,891 (24.6) 1,881 (19.8) 2,203 (19.9) 2,385 (20.2) ,Hitachi .Ltd Total number of registered employees People 32,713 32,086 31,565 29,381 29,186 Number and ratio of women employees People (%) 6,595 (20.2) 6,584 (20.5) 6,563 (20.8) 6,356 (21.6) 6,482 (22.2) Number and ratio of 3managers Hitachi 1,Group 2 Total number of managers People 48,690 65,171 61,291 74,135 86,417 Number and ratio of women employees People (%) 4,762 (9.8) 8,461 (13.0) 8,639 (14.1) 11,739 (15.8) 15,040 (17.4) By( region Japan) People (%) 1,540 (4.5) 1,609 (5.0) 1,669 (5.7) 1,821 (6.3) 1,979 (6.8) Outside Japan People (%) 3,222 (22.4) 6,852 (20.8) 6,970 (21.7) 9,918 (21.9) 13,061 (22.7) ,Hitachi 4.Ltd Total number of managers People 11,584 11,188 11,049 10,152 10,004 Number and ratio of women employees People (%) 785 (6.8) 826 (7.4) 866 (7.8) 863 (8.5) 894 (8.9) By( region Department) manager or above People (%) 146 (4.3) 160 (5.0) 170 (5.3) 179 (6.0) 194 (6.5) Section manager People (%) 639 (7.8) 666 (8.4) 696 (8.9) 684 (9.5) 700 (10.0) Wage ratio of women to 1,men 5, 6 Hitachi 2Group All employees % ー ー 80.1 82.6 82.4 Permanent and time-full employees % ー ー 80.6 83.5 83.5 Managerial level % ー ー 92.3 92.8 90.8 managerial-Non level % ー ー 86.2 86.7 86.7 time-Part or term-fixed employees % ー ー 74.0 73.7 67.1 Hitachi Group companies in 7Japan All employees % ー ー 69.4 71.7 72.9 Permanent and time-full employees % ー ー 70.2 72.3 73.9 Managerial level % ー ー 95.7 95.0 95.4 managerial-Non level % ー ー 79.2 80.1 81.7 time-Part or term-fixed employees % ー ー 61.5 62.4 65.1 Hitachi Group companies outside 2,8*Japan All employees % ー ー 89.9 92.2 91.2 Permanent and time-full employees % ー ー 89.5 92.3 91.3 Managerial level % ー ー 88.8 90.5 86.7 managerial-Non level % ー ー 91.9 91.3 90.6 time-Part or term-fixed employees % ー ー 97.2 91.4 83.7 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 160
1* The figures are based on enrolled employees with employment ,contract including those seconded from Hitachi Group to other companies and those taking ,leave and excluding those seconded from other companies to Hitachi (Group as of March (31 2* Manufacturing workers not registered in the employee database and employees of some newly consolidated companies are not .included As of the end of fiscal 2025, the number of manufacturing workers not registered in the employee database was 22,000 3* The increase in the number and percentage of women managers over time reflects improved coverage of our employee database and changes in the number of consolidated .companies ,Also employees whose (grades job titles are) not registered in the employee database are not included in the number of managers 4* The figures are based on the number of ,employees including those seconded from Hitachi Group to other ,companies those taking leave and those seconded from other companies to Hitachi (Group as of March .)31 Figures for fiscal 2021 exclude those seconded from other companies to Hitachi Group 5* We apply the same system of compensation and benefits regardless of the s’employee .gender The gender pay gap is resulting from factors including a high proportion of men employees in senior positions including managers ,and especially in ,Japan the proportion of women employees in managerial position is low and there is a higher proportion of women employees working shorter hours than men 6* Calculated in accordance with the laws and regulations of the country where each company is ,located basically based on assumed cash ,compensation including annual basic ,bonuses allowances and variable bonuses 7* Hitachi Group companies in Japan and the assumptions for these calculation are based on the Act on the Promotion of s’Women Active Engagement in Professional Life 8* Companies with 250 or more employees Diversity in the executive and corporate ,officers and directors Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Number and ratio of new employees hired Hitachi 1,2*Group Total People 29,539 32,733 25,696 26,482 27,448 Number and ratio of new women employees hired People (%) 6,489 (22.0) 9,593 (29.3) 7,003 (27.3) 7,280 (27.5) 7,441 (27.1) By( region Japan) People (%) 2,051 (15.7) 1,275 (25.8) 1,346 (26.0) 1,646 (27.2) 1,740 (26.8) China People (%) 449 (38.3) 377 (29.0) 179 (23.4) 225 (25.3) 284 (24.7) ,ASEAN India and the rest of Asia People (%) 1,402 (22.0) 4,314 (30.4) 2,900 (27.9) 2,820 (28.1) 2,746 (28.5) North America People (%) 927 (27.9) 1,212 (28.3) 897 (30.8) 848 (29.6) 685 (26.9) Europe People (%) 971 (27.9) 1,482 (28.8) 1,217 (27.2) 1,304 (26.4) 1,577 (28.0) Other areas People (%) 689 (27.4) 933 (32.7) 464 (23.6) 374 (21.9) 409 (21.5) ,Hitachi .Ltd Total People 911 1,088 1,207 1,301 1,587 Number and ratio of new women employees hired People (%) 195 (21.4) 247 (22.7) 277 (22.9) 307 (23.6) 371 (23.4) Reporting boundary Unit June 2022 June 2023 June 2024 June 2025 June 2026 Ratio of women and /ethnically culturally diverse executive and corporate officers ,Hitachi .Ltd Women Number People 9 9 9 11 11 Ratio % 12.2 11.4 11.8 15.9 15.9 Japanese-Non Number People 13 16 19 18 16 Ratio % 17.6 20.3 25.0 26.1 23.2 Reporting boundary Unit June 2022 June 2023 June 2024 June 2025 June 2026 Ratio of women and /ethnically culturally diverse directors ,Hitachi .Ltd Total People 12 12 12 12 11 Gender Men People 10 10 10 10 8 % 83.3 83.3 83.3 83.3 72.7 Women People 2 2 2 2 3 % 16.7 16.7 16.7 16.7 27.3 Nationality Japanese People 7 7 7 8 7 % 58.3 58.3 58.3 66.7 63.6 Japanese-Non People 5 5 5 4 4 % 41.7 41.7 41.7 33.3 36.4 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 161
1* Total number of employees who took maternity leave or s’partner maternity leaves / Total number of employees with newborn children 2* Total number of employees not resigning on the day after completing maternity leave or s’partner maternity leaves / Total number of employees who took maternity leave or s’partner maternity leave 3* Total number of employees who did not resign within one year after maternity leave or s’partner maternity leave / Total number of employees who took maternity leave or s’partner maternity leave 4* Total number of employees who took care-child leave / Total number of employees with newborn children 5* Total number of employees returning from care-child leave / Total number of employees who planned to return from care-child .leave Number of employees returning excludes those who planned to return and resigned voluntarily without returning 6* Total number of employees continuously working one year after returning from care-child leave / Total number of employees returning from care-child leave 7* Total number of employees who took care-child leave or partner maternity ,leave or the number of employees taking both / Total number of employees with newborn children 1* It includes special subsidiaries and related group (companies One special subsidiary and 22 related group companies as of June (2026 Employment of people with disabilities Maternity / s’partner ,leave care-child leave Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Maternity / s’partner leave ,Hitachi .Ltd Utilization 1rate Men % 32.9 43.9 51.3 58.3 77.8 Women % 100.0 100.0 100.0 100.0 100.0 Return rate for 2recipients Men % 100.0 100.0 100.0 100.0 100.0 Women % 100.0 98.3 99.5 97.5 100.0 Retention rate for 3recipients Men % 97.5 99.4 97.3 100.0 98.0 Women % 98.5 100.0 100.0 98.5 98.7 care-Child leave ,Hitachi .Ltd Utilization 4rate Men % 9.9 18.4 26.3 36.0 48.4 Women % 100.0 100.0 100.0 99.5 99.1 Return rate for 5recipients Men % 100.0 100.0 92.3 100.0 97.0 Women % 100.0 99.3 98.5 99.5 95.9 Retention rate for 6recipients Men % 94.4 100.0 96.3 98.2 93.1 Women % 96.6 95.9 96.7 98.7 97.4 care-Child or partner maternity leave ,Hitachi .Ltd Utilization 7rate Men % 40.6 56.8 65.2 71.9 94.5 Reporting boundary Unit June 2022 June 2023 June 2024 June 2025 June 2026 Employment of people with disabilities ,Hitachi 1.Ltd People 2,767 2,650 2,290 2,334 2,560 Employment rate of people with disabilities ,Hitachi 1*.Ltd % 2.43 2.48 2.64 2.66 2.74 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 162
Health and safety 1* Total Recordable Injury Frequency (Rate number of recordable injuries per 200,000 work (hours 2* Lost Time Injury Frequency (Rate number of recordable injuries per 200,000 working (hours 1* Percentage of employees who took seven or more consecutive days of sick leave or a leave of absence due to a mental (illness Number of cases of sick leave or leave of absence due to a mental illness ÷ average monthly number of employees × (100 2* Percentage of employees who took seven or more consecutive days of sick leave or a leave of absence due to a physical (illness Number of cases of sick leave or leave of absence due to a physical illness ÷ average monthly number of employees × (100 1* Men and women aged 35 and over 2 Men and women aged 30 and over 3 Women aged 30 and over 4 Women aged 25 and over 5 Employees aged 35 and (over results of specific medical (examinations Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Total recordable injury frequency (rate 1TRIFR ( Hitachi Group Total ー 0.27 0.26 0.16 0.13 0.15 By( region Japan) ー 0.12 0.14 0.13 0.11 0.11 (Asia excluding Japan ー) 0.11 0.09 0.05 0.05 0.07 North ,America Central and South America ー 1.20 1.10 0.38 0.30 0.32 Europe ー 0.45 0.39 0.32 0.26 0.30 Number of fatal incidents Hitachi (Group including contractors Cases) 2 5 4 2 4 Number of fatalities Hitachi Group Employees People 1 3 0 2 3 ,Hitachi .Ltd Employees People 0 0 0 0 0 Contractors Contractors People 1 2 5 0 1 Lost time injury frequency (rate 2LTIFR Hitachi) Group ー 0.11 0.10 0.07 0.06 0.07 Number of lost time injuries Hitachi Group Cases 432 372 175 161 192 Hitachi Group companies in Japan Cases 44 51 25 14 23 ,Hitachi .Ltd Cases 1 4 3 2 2 Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Absence rate Hitachi Group companies in (Japan By health type 1Mental) % ー ー 0.85 0.90 0.95 2Physical % ー ー ー ー 0.18 Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Medical exam and screening attendance rates Hitachi Group companies in (Japan By exam type General) physical 1exam % 80.6 82.4 92.8 92.8 92.4 Lung cancer 1screening % 98.0 98.7 97.2 97.4 97.2 Intestinal cancer 2screening % 85.5 87.3 86.4 86.2 85.5 Stomach cancer 2screening % 84.7 86.5 85.5 85.2 84.5 Breast cancer 3screening % 57.1 58.4 61.0 60.8 60.1 Uterine cancer 4screening % 39.3 40.9 42.1 41.9 47.5 Smoking 5*rate Hitachi Group companies in Japan % 27.6 27.0 26.3 24.6 24.1 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 163
Sustainable procurement Sustainable procurement activities Rate of local procurement of materials for main regions Green purchasing 1* Sustainability assessment in fiscal 2021 was focused on human rights and the environment 2* Sustainability assessment from fiscal 2022 onwards has been focused on ,environment labor and human ,rights ethics and sustainable procurement 3* Included the number of companies audited by Hitachi Energy beginning fiscal 2022 4* Procurement partners of Hitachi Astemo not included in the Sustainable Procurement Seminars from fiscal 2023 1* Hitachi Metals and Hitachi Construction Machinery were excluded from fiscal 2022, and Hitachi Energy was included from fiscal 2022 2* Excluded Hitachi Astemo from the second half of fiscal 2023 1* The ,percentage by monetary ,value of products with the Eco Mark among all products purchased subject to the Act on Promoting Green Procurement Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Sustainability assessment Hitachi Group (Companies Human (rights 12,524 21,374 3,227 4,029 5,090 (Environment( 1708 Sustainability audits Hitachi Group Companies 25 3128 150 153 142 Sustainable procurement seminars Hitachi Group Companies 359 520 4269 156 388 Reporting boundary Unit 2021FY 12022FY 22023FY 2024FY 2025FY Rate of local procurement of materials for main regions Hitachi (Group By region China) % 95 93 95 95 96 Asia excluding( China and (Japan % 87 85 81 81 76 Europe % 83 83 82 91 91 Americas % 83 74 82 80 77 Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Green purchasing 1rate Hitachi Group companies in Japan % 83 81 81 82 88 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 164
Social contribution activities Funding for social contribution activities and total employees participating 1* 2021FY :Japan ,Hitachi .,Ltd 103 Group companies and The Hitachi Global .Foundation Outside :Japan 252 companies 2022FY :Japan ,Hitachi .,Ltd 86 Group companies and The Hitachi Global .Foundation Outside :Japan 183 companies 2023FY :Japan ,Hitachi .,Ltd 85 Group companies and The Hitachi Global .Foundation Outside :Japan 166 companies 2024FY :Japan ,Hitachi .,Ltd 78 Group companies and The Hitachi Global .Foundation Outside :Japan 207 companies 2025FY :Japan ,Hitachi .,Ltd 70 Group companies and The Hitachi Global .Foundation Outside :Japan 163 companies 2* Area classifications were changed from fiscal 2022 Reporting boundary Unit 2021FY 2022FY 2023FY 2024FY 2025FY Funding for social contribution activities Hitachi Group and The Hitachi Global 1*Foundation Total Million yen 1,869 1,490 2,441 3,273 2,091 By( 2)area STEAM Million yen (%) 201 (10.8) 193 (12.9) 433 (17.8) 497 (15.2) 452 (21.6) Environment Million yen (%) 36 (1.9) 65 (4.3) 49 (2.0) 112 (3.4) 88 (4.2) Community support Million yen (%) 295 (15.8) (29.8)444 360 (14.7) 1,636 (50.0) 430 (20.6) Other Million yen (%) 1,337 (71.5) 789 (52.9) 1,599 (65.5) 1,028 (31.4) 1,121 (53.6) Of ,which disaster relief and humanitarian aid Million yen (%) 143 (7.7) 163 (11.0) 105 (4.3) 44 (1.3) 74 (3.6) Total employees participating Hitachi Group and The Hitachi Global 1Foundation People 33,585 23,576 28,398 32,493 33,968 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 165
Corporate governance Governance data Leadership demographics :Note As of June 2026 1* Including 8 independent (directors 4 from Japan and 4 from outside (Japan Unit Gender Nationality Total Men Women Japanese Japanese-Non Directors People 1*11 8 3 7 4 Executive officers People 36 31 5 31 5 Executive officers and corporate officers People 69 58 11 53 16 Ratio of women and culturally/ethnically diverse executive and corporate officers % 15.9 23.2 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 166
Business ethics and compliance Business ethics and compliance training Hitachi Global Compliance (Hotline Whistleblower (system 1* Participants of Hitachi Group employees of this training include temporary and time-part workers 2* Since fiscal 2023, only the number of participants who completed the training and the participation rate during the training period set in conjunction with the Hitachi Group Ethics & Compliance Month have been disclosed 1* Past figures have been partly revised Reporting boundary Unit 2021FY 2022FY 22023FY 2024FY 2025FY Number of participants of business ethics and compliance training Hitachi 1Group People 341,888 331,525 293,985 291,849 316,164 Participation rate of business ethics and compliance training Hitachi 1Group % 99.1 95.1 79.2 94.6 96.9 Reporting boundary Unit 2021FY 2022FY 12023FY 2024FY 2025FY Number of compliance reports Hitachi Group Total Cases 1,023 1,276 1,613 1,974 1,950 By( category HR) (issues Labor ,management travel ,expenses commuting ,costs .etc Cases) 226 294 281 287 297 Harassment Cases 341 457 669 865 777 Financial Cases 27 34 69 88 134 Procurement Cases 26 29 8 21 19 Competition law Cases 3 2 7 11 5 Bribery Cases 30 31 43 35 31 Others Cases 370 429 536 667 687 By( area Americas) Cases 238 343 389 479 432 Europe Cases 98 202 218 296 409 Middle North/East Africa Cases 54 59 46 55 58 Sahara-Sub Cases 13 4 7 9 9 (APAC excluding Japan Cases) 234 240 336 388 277 Japan Cases 386 428 617 747 765 Hitachi Sustainability Report 2026 Our story Sustainability management Planet Leadership / Empowerment Diverse perspectives Governance Engagement Sustainability for all ESG data 167
,Hitachi .Ltd Global Sustainability Division 6-6, Marunouchi ,chome1- ,ku-Chiyoda ,Tokyo 100-8280, Japan :Tel +81-3-3258-1111 /sustainability/en/com.hitachi.www://https