CSR Management

As a global company, we share our stakeholders’ values and pursue sustainable growth by integrating
management strategies and CSR. We align our CSR activities with our Mid-term Management Plan torealize the Hitachi Group Vision, creating both social and economic value.
Management Strategies and CSR
Hitachi’s Vision
We created our Group Vision in May 2013, at the start of the 2015

cycle to ensure execution of our activities and to improve the quality

Mid-term Management Plan, with the aims of delivering innovationsof our management.

that help to answer society’s challenges and of building a safe, secure,

CSR Management Framework

comfortable, and fair society. The Group Vision indicates the path tothe next stage of growth.

Hitachi delivers innovations that answer society’s challenges.
With our talented team and proven experience in global
markets, we can inspire the world.

For Hitachi, CSR is about realizing the world we envision in ourGroup Vision.
Hitachi’s CSR Activities
To realize the Hitachi Group Vision, which draws on our Corporate
Credo and Founding Spirit that form the core of our CSR, we havebeen sharing throughout the Group our CSR policy, created in 2005,
as the basis of our CSR activities. Looking toward the next Mid-term

2015 Mid-term Management Plan and Non-financial Performance

Management Plan that will start from fiscal 2016, we have shifted theIn addition to financial activities, improved non-financial performance

CSR policy to a framework based on ISO 26000 to further integrate

aimed at addressing Hitachi’s key issues plays a crucial role in achiev-

management and CSR strategies. From fiscal 2014, we have been

ing the 2015 Mid-term Management Plan goals. We set targets forfurther improving communications with our stakeholders to recognize

non-financial activities related to key management policies and started

and fulfill our social responsibilities. We will also reinforce the PDCA

these activities in fiscal 2013.

Material Issues for Hitachi

Management Focus

Fiscal 2015 Targets

Fiscal 2014 Results
Sustainable Business

Innovation:
Expand R&D centers
Strengthen service
Increase R&D staff by 500 peoplebusinesses that maximize
Strengthen Open Innovation
IT utilization and bringabout innovation
Eco-Product sales ratio: 90%

Promoted R&D in 7 areas globally (as of June 2015)
Japan: about 200 people   Outside Japan: about 300 people
Japan: 246 cases   Outside Japan: 85 cases
Caring for the Environment
93%
Diversity Management

Global:Deliver innovation tocustomers and society
globallyDiversity among directors

Outside directors: 8   Non-Japanese: 4 (of which 2 are women)   (as of June 2015, out of 12 directors)

Female senior executives

Appointed female head of CSR and Environmental Strategy Division as senior executive-level director
on April 1, 2015. Complete appointment by fiscal 2015

Female managers (Hitachi, Ltd.) Fiscal 2020 target: 1,000 women

434 womenRespect for Human Rights

Implement due diligence on business and human rights

Created guide for conducting human rights due diligence and shared with Group companies
Public Policy Initiatives

Engage in dialogue with government officials
Provide forums for stakeholder dialogue

Policy council participation
Events held in Europe and Australia
Diversity Management

Transformation:
Promotion of global human capital management strategy
Transform Hitachi: To
deliver innovation bystandardized and speedy
operation
Promotion of Hitachi Smart Transformation Project
Target outcome (aggregated fiscal 2011–15): 400 billion yen28

Introduction of Global Grading System, which applies to all managers in the Hitachi Group worldwide,
as a common platform for job evaluations, assessing the value of management duties against acommon standard
Sustainable BusinessTotal up to fiscal 2014: 320 billion yen

Hitachi, Ltd. | Annual Report 2015

Environmental Activities

Environmentally Conscious Production

Accompanying economic and social development around the world,

We have set targets for efficient energy use, waste amounts, chemicala range of environmental problems, such as climate change, resource

substance emissions, and water use to reduce the environmental

depletion, and ecosystem destruction, are becoming increasingly

burden of our business activities.

severe. At Hitachi, we aim to achieve the environmental management
described in our Environmental Vision—which in turn aspires to help

Promoting Global Warming Countermeasurescreate a sustainable society—by employing our company’s resources

Hitachi is working to reduce the energy use per unit as one way toto reduce the burden of human activities on the environment. We areuse energy more efficiently to reduce the environmental burden ofcommitted to global warming prevention, resource conservation, andour business activities. To achieve further reductions, we are system-ecosystems preservation as the three pillars of our vision. Our goal is toatically installing high-efficiency equipment and devices, from LED

achieve a more sustainable society by promoting global production thatlighting to inverter air conditioners, and increasing the efficiency ofreduces the environmental burden of a product throughout its life cycle.

our energy usage by improving manufacturing processes.

Hitachi’s Environmental Vision

Reduction in Energy Use per Unit

From base year

16%reduction• FY2005 (base year)• FY2014

Energy Used
1,746ML

Energy Used
1,683ML

Activity Amount*=100%

Activity Amount= 84%* A value closely related to the emission factor numerators (environmental burden) ofenergy use from business activities (for example, production quantity, output, building
floor space, and number of employees).

Environmentally Conscious Products and Services

Waste Reduction Initiatives

We develop environmentally conscious products called Eco-Products

Hitachi has set targets for waste and valuables generation in factories

as part of our initiative to reduce the environmental burden of ourand offices around the world.

products and services as much as possible. Eco-Products must meetcriteria used in the design and development stages, when we evaluate

Reduction in Waste and Valuables Generated per Unit

the extent to which their environmental burden can be reduced. To
promote their development, we have set targets for raising theEco-Product sales ratio, a figure measuring Eco-Product sales against

From base year

total product sales. Eco-Products that meet even more demanding

25%

requirements are designated as Eco-Products Select. We are also

reduction

working to produce more of these products.
In fiscal 2014, our Eco-Product sales ratio reached 93% and weincreased the number of Eco-Products Select models by 133, bringing
the total to 343 products.

• FY2005 (base year)• FY2014

Amount Generated
782kt

Amount Generated
692kt

Activity Amount=100%

Activity Amount=75%29