MSCI Upgrades Hitachi's ESG Rating to AA
Hitachi has disclosed that it was awarded an AA rating in the MSCI ESG Rating as of February 2023.
MSCI ESG Research evaluates global public and private companies' exposure to industry-specific ESG risks and their ability to manage those risks compared to their peers. Ratings are provided on a scale of AAA (leader) to CCC (laggard).
Hitachi's recent AA rating is due in part to its noteworthy sustainability initiatives, including compliance training and transparent disclosure of R&D investments aimed at generating green value.
For the second consecutive year, Hitachi has earned a place on the double "A List" for Climate Change and Water Security.
In addition, the company has been chosen to be a member of several ESG indices, including the FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relative Index, MSCI Japan ESG Select Leaders Index, and the S&P/JPX Carbon Efficient Index, all of which are adopted by the GPIF.
Hitachi is committed to sustainable management and has set ambitious long-term environmental targets under its Hitachi Environmental Innovation 2050 initiative, including achieving carbon neutrality across its business sites by FY2030 and throughout its entire value chain by FY2050.
The company also aims to increase the proportion of female and non-Japanese executive and corporate officers to 30% by FY2030 and has implemented an evaluation system that incorporates environmental value into short-term incentive compensation for executive officers.
Leveraging data and technology, Hitachi is dedicated to addressing various challenges faced by customers and society and contributing to the creation of a sustainable society where people can thrive.