Our Business Model

Harmonized Society with Nature
We strive to minimize Hitachi’s impact on natural capital, which bestows the benefits of nature on humankind
by assessing ecosystem impact and advancing measures to minimize the burden at each stage of Hitachi’svalue chain. Moreover, we are preserving the ecosystem through our products and services, such as our airand water purification systems and environmental monitoring systems. We also endeavor to minimize theenvironmental burden of our factories and offices.

Ecosystem Assessments and Their Implementation

CEO Message

the burden (negative impact) on the ecosystem caused bybusiness activities and maximizing the positive impact, such as byundertaking social contribution activities to protect nature andproviding products and services that preserve the ecosystem.
Regarding impact and other ecosystem preservationassessments, we are deliberating the matter not only within theGroup but also through our participation in activities outside thecompany, such as the biodiversity working group of four Japaneseelectrical and electronic industry associations* and the Japan
Business Initiative for Biodiversity (JBIB).
* The Japan Electrical Manufacturers’ Association (JEMA), Japan Electronicsand Information Technology Industries Association (JEITA), Communications
and Information Network Association of Japan (CIAJ), and Japan Business
Machine and Information System Industries Association (JBMIA).

Strategic Focus

In fiscal 2016 Hitachi created an Ecosystem Preservation Activities
Menu citing the specific activities to be undertaken to promote thepreservation of the ecosystem. We are encouraging each businesssite to advance their own initiatives. This menu was created byadding the pioneering activities of other corporations andorganizations to the list of items that had already been subject toassessment since 2010. It consists of 116 items covering all
aspects of our business operations, including the value chain.
Each business site selects those activities it plans to launch fromthe menu, and the total number of initiatives becomes Hitachi’starget for ecosystem preservation. In fiscal 2016, 144 new
initiatives were launched, far in excess of our initial goal of 30.
In the long term, we seek to minimize the impact on natural
capital and realize a harmonized society with nature by minimizing

Efforts Toward Building a Harmonized Society with Nature

Working together with employees and their families, the HitachiGroup participates in the Japanese Forestry Agency’s Corporate
Forest Program to preserve forests in several locations.
The Group has been conducting tree-planting activities
since 2007 in the Yuyu Forest in Ibaraki Prefecture. Each year
employees and their families gather to plant trees, clear
underbrush, prune, and perform other forest maintenanceactivities. They also take part in activities including environmental
education and handicraft classes using pruned materials.
The Hitachi High-Tech Yasato Forest embarked on a 60-year planin 2005 to cultivate trees. Employees and their families participate in
the work of pruning and thinning to grow a healthy forest.

Hitachi Power Solutions Co., Ltd.
employees at the Yuyu Forest.

Value Creation

Hitachi Group Forestation Activities

Hitachi High-Technologies Corporation
employees at the Yasato Forest.

Integrated Management System for Chemical Substances
Contained in Products
Suppliers

Environmental information
Survey/register

Integrated Management System for Chemical Substances Contained in Products

Registration database

Manage amounts of designatedchemical substances in a productby material and part

Collection database

Manage total amounts ofdesignated chemical substancesby product and businessCommunicateCustomer/society

Environmental information disclosure

Hitachi, Ltd. Integrated Report 2017

73Performance

Working closely with suppliers and customers, we gather andmake available information on chemical substances across thesupply chain via the Integrated Management System for Chemical
Substances Contained in Products, which has been in operation
since fiscal 2005. As of March 31, 2017, chemical substanceinformation for more than 1.31 million parts and products wasregistered under this integrated management system. In fiscal
2016, we upgraded our system to respond to the shared
information transmission scheme (chemSHERPA) on chemical
substances contained in products.

Management & GovernanceAppropriate Management of Chemical Substances