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Hitachi's Approach for Biodiversity and E cosystem Service. 10 September 2012. Hitachi, Ltd. Environmental Strategy Office Senior Chief Engineer. Yoshiaki ICHIKAWA. Hitachi Business Portfolio. ( As of March, 2012 ). Power Systems . ICT Systems.

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Hitachi's Approach for Biodiversityand Ecosystem Service

10 September 2012

Hitachi, Ltd.

Environmental Strategy OfficeSenior Chief Engineer


hitachi business portfolio
Hitachi Business Portfolio

(As of March, 2012)

Power Systems

ICT Systems

Social Infrastructure &Industrial Systems

  • 8%


  • 16%
  • 11%

Electronic Systems & Equipment

Financial Services

  • 9%

Total118B US$

  • 10%
  • 3%
  • 7%
  • 8%
  • 7%
  • 13%
  • 8%

Digital Media & Consumer Products



High Functional Materials & Components

Components & Devices

Automotive Systems

relationship between ecosystem corporate activities



Ecosystem services

Supply of raw materials

(marine products, timber, etc.)

and water



Efforts for the preservation of ecosystems

Contributions through businesses

Contributions to ecosystems

in product lifecycles


Negative impact

Reduction of environmental impact

Contribution to ecosystems

through products/services


Contribution of ecosystems

Positive impact

Social contribution activities

for conservation of nature


Contribution of ecosystems

Positive impact

Relationship between Ecosystem &Corporate Activities

Hitachi Group help ecosystem conservation through business and corporate citizenship activities while receiving benefits from ecosystem and giving impacts.

biodiversity ecosystem tools and concepts
Biodiversity/Ecosystem Tools and Concepts



(Finance mechanism)






Mitigation Hierarchy


Satellite (measure

by image)

No Net Loss

Net Positive Impact




FSC, MSC, RA (RainForest Alliance),

Green procurement


Mitigation Bank




Management & performance(KPI)







*1Replacement Cost Method*2Willing to Pay*3Payment for Ecosystem Services

*4Habitat Evaluation Process

*5Life cycle Impact assessment Method based on Endpoint modeling

*6Equator Principles*7CorporateEcosystem Valuation

*8Ecosystem Service Review

*9Access and Benefit-Sharing

*10 Business and Biodiversity Offsets Programme

*11 Business to Earth

target business case geomation farm
Target Business Case: GeoMationFarm

Scope: Application of GeoMation Farm, an agricultural information management system that improves efficiency of resource use and enhances crop productivity.

The hypothetical studies are conducted, targeting the USA and France. (Note: This study is a high-level theoretical analysis based on publicly available data, and not based on empirical data taken from actual regions or the farms.)

Current Situation:

The demand and use of IT in agriculture, as well as the economic assessment of the benefits of agriculture (societal and environmental) is growing, but sometimesdifficult to implement, due to the difficulty in assessing the effects of the agricultural activities on ecosystems.

a key finding through cev
A key Finding through CEV

Step 5 of Stage 3: Relative magnitude value of directly affected ecosystem services & externalities, USA and France

Key: Green shade = positive impact (i.e. benefit); Orange shade = negative impacts (i.e. cost)

+ = minor, ++ = moderate, +++ = major benefit (same scale for -, - -, - - - )

o = no/negligible impact


Baseline: Condition at current state

Business as Usual: Simulation if current practice continues for the next 25 years.Precision Agriculture: Simulation if PA is used in agricultural practice for the next 25 years.

cocn council on competitiveness nippon
COCN: Council on Competitiveness -Nippon
  • Group of corporations and academic institutions aiming to improve Japanese industrial competitiveness through the cooperation with policy makers and other business organizations, and advocacy.
  • 32 companies, 4 universities, 1 research institute
  • Cross-sectoral
business and biodiversity study group
Business and Biodiversity Study Group
  • 1. Background
    • The COP10 in Nagoya raised attention to business activities from the viewpoint of ecosystem conservation.
  • 2. Purpose
    • COCN started Business and Biodiversity Study Group in 2010 for 2 years-activity:
      • to study about what are the points to consider and what the companies can do for biodiversity
      • To develop a methodology
  • 3. Member
    • 2 construction companies, 1 developer, 1 bank
    • 4 electric/electronics, 1 material producer, 1 think-tank
    • 1 research institute, 1 university, 1 consultant
    • (coordinater: Hitachi, Ltd.)
business biodiversity checklist
Business & Biodiversity Checklist
  • 1. Purpose for Assessment
    • To identify risks and opportunities
    • To improve activities through PDCA cycle
  • 2. Assessment Items
  • 6 stages of product or
  • service life cycle
  • 3 stages of
    • Land use
    • Conservation
    • Business opportunities
  • Each item has 5 stages

(44 items)

what we check
What We Check
  • Whether biodiversity or ecosystems are taken into account…
  • 1. Design
  • in the deliverables produced by the design process
  • 2. Procurement
    • when raw materials and parts (or equipment as components of services) to produce goods (or provide services) are purchased
  • 3. Manufacturing
  • for the production in its factories
  • 4. Transportation
    • when the company is the consigner (i.e., the actor who bears the shipping charge)
  • 5. Use and/or Operation
  • when products or services are used, operated, or maintained
  • 6. Disposal and Reuse
    • by promoting reduce, reuse, and recycle at the end of product life
how to improve
How to Improve

Example: design stage

definition: decide product or work specifications


Result by radar chart

Grasp points to improve



result of trial
Result of Trial

Manufacturers score high at production phase

Manufacturing (Chemifal/Pharmaceutical)

Manufacturing (Electric)

Low at use phase



it eco experimental village
IT Eco Experimental Village

Hitachi, Ltd. opened an IT eco experimental village in Hadano, Kanagawa Prefecture. The trials are underway to study the usefulness of IT for ecosystem preservation by conducting ecosystem preservation activities and monitoring.

We are displaying the village’s temperatures and humidity on a website for the visualization of environmental information using sensors and cloud computing.

Photographed inside the village

Entrance to IT eco experimental village


Thank you for your attention

Dr. Yoshiaki Ichikawa