Basic Concept For a Harmonized Society with Nature

Biodiversity has been positioned as an issue closely tied to climate change that needs to be tackled, and governments, investors, and others are increasingly demanding that companies address this issue.
For its part, the Hitachi Construction Machinery Group is already implementing biodiversity-conscious initiatives at its business sites, and we believe it is important to actively communicate these initiatives internally and externally to further promote biodiversity initiatives.

Accordingly, the Hitachi Construction Machinery Group has formulated a “Biodiversity Policy” that serves as the basis for the Group's biodiversity initiatives.

As one of the actions that reflect the ideas of this policy, Hitachi Construction Machinery and Hitachi Construction Machinery Tierra joined the "30by30* Alliance for Biodiversity" promoted by the Ministry of the Environment. The Group will continue undertaking biodiversity initiatives based on this policy.

Hitachi Construction Machinery Group Biodiversity Policy

１．Commitment

• The Hitachi Construction Machinery Group's vision, ‘Ensure a prosperous land and society for the future. We contribute toward realizing a safe and sustainable society.’, represents our vision of a society based on harmonious coexistence with society. Based on this vision, and recognizing that the Group's business activities depend on the benefits of biodiversity and have the potential to affect ecosystems, we aim to realize a society in harmony with nature through the development of environmentally friendly products and the promotion of a circular economy, including regeneration projects.

２．Compliance with national laws and regulations in accordance with international conventions 

• We comply with the relevant laws and regulations of each country, including the prohibition of illegal logging of forests, in accordance with international biodiversity conventions such as the Convention on Biological Diversity, and work to conserve biodiversity in the areas where we operate.

３．Addressing biodiversity through business

• We strive to reduce environmental impact along the value chain, from design and development to production and logistics, with the aim of promoting a circular economy and realizing nature positivity.
• We aim to reduce the impact on the ecosystem by actively working on the lengthening of product life cycles and the remanufacturing business based on the ‘4 Rs*1’, thereby reducing waste and new resource inputs.
• By actively developing and providing ICT construction solutions, we will improve productivity and shorten construction periods, thereby contributing to the reduction of greenhouse gases and sustainable forestry management.

４．Understanding the relationship between business and biodiversity and reducing impacts

•  With the aim of preventing biodiversity loss (no net loss), we will select priority areas for biodiversity conservation, assess the impacts and dependencies on nature, including biodiversity, arising from our operations, as well as risks and opportunities, and promote appropriate measures. In addition, we aim to create a net positive impact (i.e. the effect of compensatory measures on biodiversity exceeds the loss of biodiversity) by 2050, and we will work to prevent deforestation that has a negative impact on ecosystems through afforestation and other reforestation initiatives.
• When operating in priority areas from a biodiversity perspective, targets and indicators will be managed by adopting the concept of prioritization (mitigation hierarchy*2), whereby negative impacts are avoided, reduced or minimized and compensatory measures are taken for those impacts that still remain. 

５．Stakeholder engagement and disclosure 

•  Collaborate and dialogue with the Hitachi Construction Machinery Group's employees, procurement partners, local communities and NGOs to increase the effectiveness of biodiversity conservation initiatives. 
• Proactively disclose information on initiatives based on this policy.

６．Scope and jurisdiction

•  This policy will be promoted within not only the Hitachi Construction Machinery Group, but also procurement and business partners for their endorsement.
• The Board of Directors reports on and approves the development and changes to this policy.

*1    ４Rs : Reduce, Reuse, Recycle, Renewable
*2　mitigation hierarchy : A framework for minimizing adverse effects on nature with a long-term perspective. It is a concept that guides organizations to first avoid impacts, and if that is not possible, to reduce the impact on nature, and finally to fulfil their responsibility to restore affected areas and ecosystems

Responding to the biodiversity crises

Companies depend on the benefits from nature, such as atmosphere, water, and soil. These benefits are supported by biodiversity. In order to prevent its loss and to maintain and restore them, the Hitachi Construction Machinery Group believes that we can contribute to ecosystem conservation through both its business and social contribution activities related to nature conservation.

Biodiversity is faced with four types of crisis. Hitachi Construction Machinery Group is providing support through our products and through employee participation in order to respond to these crises.

Conservation of the natural environment at test site

Since its establishment in 1992, Hitachi Construction Machinery Urahoro Test Site in Hokkaido has played an important role to provide safe, secure, and high-quality products to customers while preserving the greenery and nature of the region's unique Quercus oak forest and humid broad-leaved forest. At the testing site, we carry out forest conservation activities based on long-term plans. When conducting business activities, we conduct natural environment surveys to minimize the impact on the on-site ecosystem. A variety of plants and animals grow in the vast forest of Urahoro Test Site. In order to grasp and protect these ecosystems, we conduct surveys of birds, plants, and benthic animals every time we carry out forest development work.
Additionally, we hold an Eco School every year for local elementary school students, with the aim of helping them rediscover the wonders of Urahoro's natural environment and the meaning of nature conservation activities.

Conservation of Lake Biwa

Hitachi Construction Machinery Tierra, located in Shiga Prefecture, supports the Mother Lake Goals (MLGs), which are goals for a sustainable society in 2030 with Lake Biwa, and is conducting various activities to preserve Lake Biwa. They hold Lake Biwa seminars for executives and environmental managers to learn important things about protecting and utilizing Lake Biwa, they also carry out clean-up around lakes and rivers, exterminate invasive species, and engage in activities as rice field owners.

Afforestation of the Horqin Desert

Hitachi Construction Machinery (Shanghai) has carried out Afforestation of the Horqin Desert for a 10-year period since 2005. Aiming for the restoration of habitats that have been destroyed and turned to desert due to over-grazing etc. and protection of weak ecosystems, a 100,000m2 desert belt within the Horqin desert of China’s autonomous Inner Mongolia region has been designated as an “Hitachi Construction Machinery Carbon Offset Forest” and afforested, which has contributed greatly to greening. 26 of our partner dealers are participating in our new plan for the next 10 years which commenced in 2015 for the first time, and afforestation of a desert belt of 130,000m2 has begun.

Through this initiative, we were able to protect the trees planted in desert areas from illegal logging and wild animals, and successfully allowed them to grow larger. Progress in greening has reduced wind and dust damage, leading to environmental improvements. Additionally, by asking people from nearby villages to take care of the trees, they also contributed to the creation of continuous employment.

Soil Restoration After Mine Closure

After mining has completed, soil restoration (rehabilitation) is a crucial issue in order to protect the environment and enable stable use of the sites.

It is important to return the mine to a self-sustaining natural ecosystem and a state that ensures the safe future use of the land, and our group's business partners are actively working on soil restoration.

We will continue to work on biodiversity issues in collaboration with stakeholders.