Hitachi Group
Corporate Social Responsibility Report 2009

Contents

001

CSR Activity Reporting Policy

002 commitment Message from the CEO
004

Misleading Representations of Refrigerators and Our Response

005 vision Hitachi’s CSR Vision009 Highlights 2009

Toward a Sustainable Society

009

Hitachi’s Environmental Vision009

Global Warming Prevention toward 2025

013

Hitachi’s Environmental Technologies 1 Securing a Stable Electric Power Supply and Reducing CO2 Emissions

017

Hitachi’s Environmental Technologies 2 Contributing to Water Treatment Operations

021

Environmental Management in Monozukuri

026

Environmental Activity Topics

029

Extending Our Collaborative Projects Overseas

032

Hitachi’s CSR Management033

Corporate Governance033

Strengthening Governance

034

Internal Control

035

Group Management

036

CSR Promotion Activities

036

Striving to Be a Global Leader in CSR

038

Self-Assessment of CSR Activities

040

European CSR Project041

Respect for Human Rights

041

Human Rights Policy

042

Raising Awareness of Human Rights

042

Hitachi and the United Nations Global Compact

043

Compliance and Risk Management043

Risk Management043

Code of Conduct regarding Corporate Ethics and Compliance

045

Preventing Recurrences of Antimonopoly Law Violations

045

Expert Opinion on Hitachi’s CSR Activities and Hitachi’s Response

046

Global Push to Stop Corruption

047

Compliance Reporting System

048

Protecting Personal Information and Information Security

049

Export Control

050

Respect for Intellectual Property

050

Business Continuity Plans (BCP)

052

Hitachi: Living Together with Society

053

Improving Monozukuri and Service

053

Ensuring Product and Service Quality

057

Building Customer Feedback into Our Products

059

Universal Design062

Communication with Shareholders and Investors

062

Policy on Information Disclosure063

Proactive IR Approach

063

General Meeting of Shareholders

064

Basic Policy for Prevention of Takeovers

065

Results of External SRI Assessments in Fiscal 2008066

Working in Harmony with Local Communities

066

Finding Solutions for Social Issues

067

Educational Initiatives

069

Environmental Initiatives

071

Social Welfare Initiatives

073

Six Foundations Promote Diverse Activities

074

Support for Volunteer Activities

074

Social Contributions Made by Companies in the Hitachi Group075

Employees: The Key to Hitachi’s Future

075

Creating a Work-Friendly Corporate Culture

075

Openness: Promotes the Expression of Employees’ Full Potential

075

Challenge: Supports Growth077

Diversity: A Base for the Healthy Expression of Individuality

081

Employment

081

A Safe, Pleasant Workplace

083

Enriching the Lives of Employees and Their Families

084

Collaborative Creation with Suppliers

084

Sharing CSR Awareness

084

Formulation of Supplier Guidelines

085

Working with Suppliers to Promote CSR Activities

085

Promoting the Use of Environmental Management Systems by Suppliers

086

Partnerships

087

Improving Supplier Relations with an Open-Door Policy

088

Company Profile / Hitachi Group Profile / Economic Performance

091

Comparative Table with GRI Guidelines

101

Indexes by Category

101

Policy, Vision, and Guidelines

102

Result Data

103

Inquiries

CSR Activity Reporting Policy

Reports on material issues

Reports on detailed activities

Latest information

bookletHitachi Group
Corporate Social Responsibility
Report 2009 Digest

PDF

bookletHitachi Group
Corporate Social
Responsibility
Report 2009

On Hitachi, Ltd. Web site

Hitachi Group
Environmental
Sustainability
Report 2009

CSR (corporate social responsibility):
http://www.hitachi.com/csr/

Environmental Activities:
http://www.hitachi.com/environment/

Information about the Hitachi Group’s CSR activities is available in two formats: this PDF version, Hitachi Group Corporate Social Responsibility Report 2009, which
can be accessed on the Web, and a shorter printed booklet called Hitachi Group Corporate Social Responsibility Report 2009 Digest. In Digest version, we focuse onreporting areas of CSR activity that the Hitachi Group has particularly emphasized. In response to requests from stakeholders who are especially interested in theenvironmental field, we are publishing a new booklet, the Hitachi Group Environmental Sustainability Report from 2009, providing detailed environmental transparency
and information (scheduled to be published at the end of July 2009). In addition to the online publication of these two booklets (Hitachi Group Corporate Social
Responsibility Report 2009 Digest and Hitachi Group Environmental Sustainability Report 2009 ), we will report further details and the latest information on CSR
activities and environmental activities on our Web site.
Related Reports
We report on the financial performance of Hitachi, Ltd. in the “Financial Highlights” and Annual Report. Research and development and intellectual property (intellectual
property rights and brands), which are major aspects of the technology management of Hitachi, Ltd. and its major subsidiaries, are covered in the R&D and Intellectual
Property Report.
Scope of This Report
Period: 		
The main period covered is fiscal 2008 (April 1, 2008 through March 31, 2009)
Companies: 		Companies covered under consolidated reporting of the Hitachi Group
Scope of data:
Financial data:
Hitachi, Ltd. and 944 consolidated subsidiaries (including modified entities to which the equity method of consolidated reporting applies)		and 166 affiliated companies that use the equity method
Social data:
Scope of data indicated under each item
Environmental data: Hitachi, Ltd. and 241 consolidated subsidiaries (including companies outside Japan) (accounting for 90% of the environmental load of 				
the Hitachi Group for the amount of electricity used and wastes generated)
Guidelines Referred to in Preparing This Report“Environmental Reporting Guidelines” (FY 2007 version), Ministry of the Environment, Japan“Environmental Reporting Guidelines 2001—With Focus on Stakeholders,” Ministry of Economy, Trade and Industry, JapanGRI Sustainability Reporting Guidelines 2006, Global Reporting Initiative* This CSR report is published on an annual basis.

001

commitment

Message from the CEO
Remaining true to Hitachi’s founding spirit,
the Hitachi Group will enter the next era through communication with society

Communication with Stakeholders: Conducting Business with a New Sense of Values
The global business environment slowed in fiscal 2008, making it an extremely difficult year for
us. This situation, combined with such factors as global warming and wildly fluctuating resource
prices, has shaken people’s belief in the supremacy of science and technology, and the pursuit ofeconomic gain. I believe that future economic activity must be conducted under the constraints
imposed by the fact that the earth’s environment has limits. I also believe that, if society as awhole adopts a new sense of values that recognize these additional constraints, we can lookforward to a prosperous future. It will take more than the commitment of national governments,
however, to nurture this sense of values. It is essential for us to reach a “grass roots” consensus—
through communication—that also includes private corporations, NPOs, NGOs, educational andresearch institutions, and other stakeholders, who have a range of perspectives. At Hitachi, we arecommitted to integrating into our business decisions full communication with stakeholders.

Using Hitachi’s Strengths to Pursue Social Innovation Businesses
To overcome the current economic crisis, we are reforming the business structure of the HitachiGroup as a whole. Our strengths lie in two broad fields: social infrastructure such as power andindustrial systems, and information and telecommunications systems, including financial systems
and communications networks. By combining these two fields, we will dedicate the majority of ouroperating resources to “social innovation businesses.”Three areas in particular are important for improving our profit structure. The first is the fusionof our information and telecommunications systems with our power and electrical systems.
We are working on several projects that combine the very latest technologies in informationand telecommunications systems with the social infrastructure, including smart grids, smart
transportation, smart logistics, and cloud computing for business applications.
The second area involves our transformation into a truly global corporation. This means
connecting with local partners throughout the world and localizing our operations by employing
people who are intimately familiar with local conditions. In February of this year, we became aparticipant in the UN Global Compact, whose Ten Principles (including respect for human rights)
we view as highly significant for globalizing our operations.
The third area involves expanding our environmental business activities. We are accelerating
research and development programs centered on nuclear power generation, high-efficiency coalfired power generation, environmentally conscious data centers, and lithium-ion batteries, among
other programs.
Working under the constraint of a limited global environment, and setting our sights on thesustainable development of society, we can create new value that has not existed before. Throughour social innovation businesses, we are committed to contributing to happiness tomorrow.
I believe this is our mission, and that an approach such as this will satisfy the demands of all
stakeholders.
July 2009

Hitachi Group Corporate Social Responsibility Report 2009 | commitment | Message from the CEO
002

Takashi Kawamura
Chairman, President and Chief Executive Officer
Hitachi, Ltd.

Hitachi Group Corporate Social Responsibility Report 2009 | commitment | Message from the CEO003

Misleading Representations of Refrigerators and Our Response
On April 20, 2009, Hitachi Appliances, Inc. received a cease and desist order from the Japan Fair Trade Commission, basedon the Act against Unjustifiable Premiums and Misleading Representations. Hitachi misled that effect of reducing CO2 emission of refrigerators is better than they actually were. The items cited were representations in the Refrigerator General Catalog
issued in November 2008 and February 2009, as well as on our Web site, in newspaper advertisements and posters. In addition, Hitachi Appliances returned the 2008 Energy Conservation Grand Prize (ECCJ Chairman’s Prize) that was received fornine refrigerator products in February 2009.
This incident has greatly damaged the trust in, and expectations of, Hitachi, Ltd. and Hitachi Appliances among customers and everyone else concerned. We wish to express our deep apologies. We have conducted a thorough internal
investigation to determine the causes and have taken measures to ensure that it never happens again. The following is an
outline of the cease and desist order and our response.
Contents of Cease and Desist Order Given to Hitachi Appliances
The Japan Fair Trade Commission, according to the cease and desist order, judged that customers might be misled into
believing that the products were considerably better than they actually were. The Commission referred to two points:(1) In the winter 2008 and early spring 2009 editions of the Refrigerator General Catalog and on the Hitachi Web site(from around November 2008 to March 2009), it stated that the core material of the flexible vacuum insulation panels
used in the Eiyo Ikiiki Shinku Chirudo V series refrigerators—on sale in September 2008—was recycled resin fromdiscarded refrigerator shelves and other items. It was further stated that the amount of CO2 emitted during the production of flexible vacuum insulation panels was reduced by 48%, compared with our conventional refrigerators. In fact,
however, the use of recycled resin was limited to certain models and to refrigerators produced during a certain period,
and the reduced amount of CO2 emissions was much lower than indicated.
(2) Newspaper advertisements and posters at retail outlets stated that recycled resin from discarded refrigerator shelves
and other items was used as the core material for the flexible vacuum insulation panels in all nine refrigerator models
in the Eiyo Ikiiki Shinku Chirudo V and the Big & Slim 60 series. In fact, it was only used in some of these models.
Our Response
We take this matter, which has undermined the trust of our customers and many other stakeholders, very seriously.
Accordingly, on April 27, 2009, we set up the Supervisory Office for Product Environmental Information under the
direction of Takashi Hatchoji, Executive Vice President and Executive Officer. We have been investigating similar cases at
Hitachi and Hitachi Group companies, identifying common issues, and working hard to prevent any reoccurrence. Hitachi
Appliances has set up an Emergency Countermeasures Office to investigate the root causes, and has made and promoted
measures to improve internal controls to prevent this from happening again. In addition, they are reinforcing employees’
awareness to further strengthen compliance.
To investigate similar cases, we examined environmental information about our product in catalogs, Web sites, newspaper advertisements, and posters of Hitachi and Hitachi Group products other than those that received the cease anddesist order. To date, no similar cases have been found. However, misprints and descriptions that might be inconsiderate ofcustomers, as well as representations that might be misleading, were uncovered in certain products. In these cases, we took
immediate steps to revise these representations to prevent any similar incidents that could be construed as misleading toour customers or other stakeholders.
To address this issue, we have analyzed the causes and problems and identified the following common issues for
Hitachi Group companies.
1. In all business processes—technology development, product design, advertising, and applications for awards—there were systems for confirming the consistency of a product’s environmental information at every stage. However, no system existed for overall confirmation.
2. For representations in advertising materials in general, Group-wide criteria had been set, but their application was left to the business group or
Hitachi Group company in charge of each product, and there was no system for regularly reviewing or objectively verifying appropriate use.
3. Amid growing social concern about products that affect the environment, employees did not have enough understanding about representations that appeal to customers using environmental information about a product.

In view of these investigation results and common issues, we are implementing the following reoccurrence prevention andcompliance measures, and we will do our best to restore trust.
(1) Preventing
Reoccurrences• Revise the company regulations, clarify provisions for handling environmental product information, and clearly define
responsibilities for this type of information during each business process and for applications for environment-related
awards. In addition, thoroughly audit these responsibilities.
• Improve the regulations and systems that each Group company must use and abide by.
• Publish prevention measures for all Hitachi Group employees and incorporate this into employee education lectures on
representing environmental information about products.

(2) Improving
Compliance
Measures• Set up an advisory group—including outside experts—to provide guidance on whether or not representations of environmental information for products are appropriate, and implement regular checking.
• Regularly audit whether the management of environmental product information is being properly implemented.
• Return back to basics and Hitachi’s founding spirit; further improve the education system and thoroughly implement
education as part of Hitachi spirit reconfirmation activities—the main theme of the campaign “Strengthening The Base
’08–’09” that is being promoted Group-wide from fiscal 2008—to ensure that all employees, from their viewpoint, consider
how best to deliver information from the perspective of our customers and other stakeholders.

Hitachi Group Corporate Social Responsibility Report 2009 | Misleading Representations of Refrigerators and Our Response004

vision

Hitachi’s CSR Vision
Creating a sustainable world through innovation:
Hitachi is tackling the basic issues faced by global society

The Hitachi Group’s CSR activities are based on the Fundamental Credo as well as the future ofsociety that we pursue, as expressed in the Hitachi Group Vision. Since our founding, we havetackled and resolved the social issues that arose in each age. Recently, various global problems
have emerged, such as climate change and energy resource scarcities. By fully utilizing theempirical knowledge and technologies accumulated over our almost one century, we will continue
to solve global issues by optimizing group synergy.
Fundamental Credo
The basic credo of Hitachi is to further elevate its founding concepts of harmony, sincerity and pioneering
spirit, to instill a resolute pride in being a member of Hitachi, and thereby to contribute to society through thedevelopment of superior, original technology and products.
Deeply aware that a business enterprise is itself a member of society, Hitachi is also resolved to strive
as a good citizen of the community towards the realization of a truly prosperous society and, to this end, toconduct its corporate activities in a fair and open manner, promote harmony with the natural environment,
and engage vigorously in activities that contribute to social progress.
Adopted June 1983, Revised September 1996
Hitachi Group Vision
We will contribute to the solution of fundamental global issues, and pursue the realization of a better,more prosperous global society, in line with Hitachi’s founding spirit, utilizing the Group’s knowledge andtechnology.
Adopted January 2006
CSR Policy of the Hitachi Group
1. Commitment to Corporate Social Responsibility (CSR)
The Hitachi Group, including all its executives and employees, recognizes CSR as a vital part of corporate
activity and is therefore committed to a course of social responsibility in accordance with this CSR policy forthe sustainable development of society and business.
2. Contribution to Society through Our Business
The Hitachi Group will contribute to the building of a prosperous and vibrant society by providing safe, highquality products and services through business activities based on its excellent research, technology andproduct development.
3. Disclosure of Information and Stakeholder Engagement
The Hitachi Group will disclose information openly and transparently in order to maintain and develop a
relationship of trust with its various stakeholders, and act responsibly towards them through various meansof communication.
4. Corporate Ethics and Human Rights
The Hitachi Group will undertake its business based on the principles of fairness and sincerity, act with theutmost respect for human rights and pursue a high sense of corporate ethics in the global business market
which encompasses diverse cultures, morals, ethics, and legal systems.

Hitachi Group Corporate Social Responsibility Report 2009 | commitment | Hitachi’s CSR Vision005

5. Environmental Conservation
The Hitachi Group will strive to minimize environmental effects and utilize resources towards the developmentof a sustainable society that is in harmony with the environment.
6. Corporate Citizenship Activities
The Hitachi Group will promote social contribution activities as a good corporate citizen in order to realize abetter society.
7. Working Environment
The Hitachi Group will make every effort to create a pleasant and motivating working environment for all its
employees and to fully support those employees who desire self-fulfillment and self-development throughtheir work.
8. Responsible Partnership with Business Partners
The Hitachi Group will make every effort to promote fair and sound business practices among our business
partners by fostering a common awareness of social responsibility.
Adopted March 2005
(For the specific plans and achievements of each policy, see pages 37 and 38)

Exchanging Views on CSR and Corporate Management with BSR’s†1 President(Left) Aron Cramer / President and CEO, Business for Social Responsibility (BSR)(Right) Kazuo Furukawa / Senior Corporate Adviser, Hitachi, Ltd.

Global CSR management from a long-term perspective is more important
than ever amid these challenging worldwide economic conditions
Furukawa: Since Hitachi was founded, we have pursued CSR according to our corporate credoof contributing to society through business, but initially we did not do much to promote a greaterawareness of CSR in society at large. With the progress of globalization in recent years, I feel it
has become important to conduct CSR activities not just by reflecting Japanese values but by
positively incorporating a more global perspective.
Cramer: With the advance of globalization, transparency is expected of businesses worldwide, andas the points of connection between business and society change, many companies have begun
doing business with CSR at the core of corporate management.
Furukawa: I think CSR is essentially a balance between sustainable development, the environment,

Hitachi Group Corporate Social Responsibility Report 2009 | commitment | Hitachi’s CSR Vision006

and human welfare. While worldwide concern was focused on the environment, the global
economy faced an unprecedented crisis beginning in fiscal 2008. This is exactly the time whencompanies must reconsider CSR from a long-term perspective.
Cramer: I completely agree. The business environment is becoming more challenging worldwide
and the balance of power among countries and regions is changing. At a time like this, we needto look at longer term trends and reconsider what kind of value CSR brings to a company. In thiscontext, CSR can add significant value if integrated fully into business strategy.
Furukawa: At the same time, at Hitachi we continue to have strong concerns about human rights,
and we are tackling these issues, but different countries or regions approach this in different ways.
I feel that we need a global perspective that goes beyond national borders.
Cramer: Yes, human rights are becoming a fundamental issue for companies. The challenge ahead
is for companies to decide how they should be incorporated into basic CSR concepts, and how
they can be applied within business operations globally. A thorough and successful approach to
CSR depends on this.
Furukawa: We have to recognize the differences first, and then the new steps that are required will
become apparent. On my business trips overseas, I have talked with people working in Hitachi’s
local offices. To my surprise, they include people my age who have just started working. I don’t
think we can solve problems by simply imposing our way of thinking on them unilaterally.
Cramer: On the other hand, there are many global companies that are interested in making surethat they apply consistent policies and values worldwide.
Furukawa: At Hitachi too, we strive to share common ideals and values globally. Our aim is to be acompany whose CSR activities are recognized throughout the world. We hope you will continue togive us various advice and support from a global perspective.
December 2008
†1 Business for Social Responsibility (BSR): Founded in the United States in 1992, BSR is a global network ofmember companies providing advice and solutions related to CSR.

Method for Selecting Material Issues
At Hitachi, we view the participation of stakeholders as an essential part of the decision-making
process for CSR materiality, in tandem with assessing the magnitude of issues from the viewpointsof management and social sustainability. In fiscal 2008, with the support of the global network BSR,
we engaged in dialogues with stakeholders mainly on the themes of pressing global environmental
problems and other issues that require high-level attention in our corporate business strategy. The
chief executive officers of Hitachi and members of BSR also discussed global social issues and thelong-term outlook of CSR activities. We report on the material issues defined through our analysis
in our CSR reports and environmental reports. Various dialogues with external stakeholders areheld regularly at a global level and, based on the deliberations of the CSR Promotion Committee—
comprised of Hitachi executive officers—the most significant are then incorporated into CSR
activities from the following fiscal year onward.

Hitachi Group Corporate Social Responsibility Report 2009 | commitment | Hitachi’s CSR Vision007

Importance for stakeholders

Summary of Issues That Hitachi Considers ImportantUse, circulation, anddischarge of water

Supply chain

Products that help createa sustainable society

Discrimination
prevention

Global diversity

Chemicals and emissions Making existing products
from operations
more energy efficient
Labor/safety
and hygiene

Product safety
Customersatisfaction (CS)CSR issues raised through dialogues with stakeholders are assessed and confirmed from two
perspectives: importance for stakeholders and effect on business success. Activities that addressespecially important issues are detailed in CSR reports.

Effect on businessDialogue with Stakeholders in North America
Hitachi places environmental projects at the core of our business strategy. During dialogues withstakeholders on global environmental strategy held in New York in March 2009, a wide-ranging exchangeof views was made on activities expected of Hitachi. We will use these views to refine our environmental
vision, and the methods that we use to participate in global discussions. The issues emerging from these
dialogues will be incorporated into future programs as vital issues in our CSR activities.
Participating stakeholders: Jason Morrison, Pacific Institute; Shin Furuya, Domini Social Investments; Peter Holzaepfel, The Climate Group; Leslie Cordes,
The UN Foundation; Richard A. Liroff, Investor Environmental Health Network; Mark Cohen, Resources for the Future
Facilitators: Dunstan Hope, BSR; Raj Sapru, BSR
Main Hitachi Group participants: Tadahiko Ishigaki, Senior Vice President and Executive Officer, Chief Executive for the Americas; Takashi Hatchoji, HitachiGroup Chief Environmental Strategy Officer; Kiyoshi Kinugawa, President, Hitachi America, Ltd.

Key Suggestions from Stakeholder Dialogues• Clearer explanations of criteria and measurement methods for environmentally conscious products, aswell as environmental management• Increasing transparency and full disclosure of globally integrated corporate environmental data
• Use of Hitachi’s wide-ranging technologies and know-how for resolving high-priority sustainability
challenges in regions throughout the world

Hitachi Group Corporate Social Responsibility Report 2009 | commitment | Hitachi’s CSR Vision008

Highlights 2009

Toward a Sustainable Society
The Hitachi Group aims to realize a better global environment
through innovation, business operations, and activities worldwide
Hitachi’s Environmental Vision
The quest for a comfortable existence has led humankind to create a highly convenient society.
Today’s society, however, requires a vast amount of energy, and is causing problems, such as
global warming, resource depletion, and environmental damage. We should challenge thesecommon issues if we are to maintain a comfortable existence into the future.
We are committed to the prevention of global warming, the conservation of resources, andthe preservation of the ecosystem as the three pillars of our vision. Our goal is to achieve a moresustainable society by promoting global production that reduces the environmental burden of a
product throughout its lifecycle. We are working toward this goal by setting progressive targets forfiscal 2010, 2015, and 2025.
The Three Pillars of Hitachi’s Environmental Vision
Prevention of
Global Warming
Reduce CO2 emissions
in energy production
Enhance energy
efficiency of our
products

Towards a Sustainable Society

Conservation of
Resources

Preservation of
Ecosystem

Collect products forreuse or recycling

Reduce negative effecton air, water and soil

Global Warming Prevention toward 2025
We are setting specific goals intended to prevent global warming, which we view as a particularly
urgent mission in realizing a sustainable society.
Fiscal 2025 Goal: Long-Term Environmental Vision 2025

To help reduce annual CO2 emissions by 100M tonnes
by 2025 through Hitachi products and services*
Fiscal 2015 Goal: Medium-Term Environmental Vision 2015

*With fiscal 2005 as the base year,
Hitachi plans to produce more environmentally conscious
products and services.

Achieve emission neutral
Fiscal 2010 Goal

• 12 percent reduction in Hitachi Group CO2
emissions (from FY 1990 for Japan domestically)• 5 percent reduction in CO2 emissions per unit ofproduction (from FY 2003 for outside Japan)

Hitachi Group Corporate Social Responsibility Report 2009 | Highlight 2009 | Toward a Sustainable Society009

Fiscal 2010 Goal
• 12 percent reduction in Hitachi Group CO2 emissions (from FY 1990 for Japan domestically)• 5 percent reduction in CO2 emissions per unit of production (from FY 2003 for outside Japan)

To meet Japan’s Kyoto Protocol commitment of a 6-percent reduction in greenhouse gases, theJapanese government has created the Kyoto Protocol Target Achievement Plan. In fiscal 2008,
we raised our fiscal 2010 CO2 emission reduction target from 7 to 12 percent. This is now in linewith the industry target value laid out in the Achievement Plan that was revised in March 2008.
For operations outside Japan, we are striving to achieve an annual reduction of 1 percent in CO2emissions per unit of production.

Fiscal 2015 Goal: Medium-Term Environmental Vision 2015
Achieve emission neutral

We are working to achieve emission neutral by fiscal 2015 in the pursuit of monozukuri that reduces
the environmental burden of products throughout their lifecycle.
The Emission Neutral Concept
Reduced social(indirect) burden

Direct environmental burden

CO2 emissions
from material
production

Materials/
rawmaterials

CO2 emissions
frommanufacturing
CO2 emissions
from waste
recycling

Manufacturing

CO2 emissions
fromtransportation

Distribution

Reduced CO2
emissions
during productuse throughenergy-saving
products

Reduced CO2
emissionsin producttake-back andrecycling

Use

Take-back/recycling

The Emission Neutral Concept
Emission neutral means reducing CO2 emissions from material production, manufacturing and distribution (the direct burden) and also reducing CO2 emissions bymaking energy- and resource-saving products (the social burden) to make the two environmental burdens equal.

Fiscal 2025 Goal: Long-Term Environmental Vision 2025
To help reduce annual CO2 emissions by 100M tonnes through by 2025 Hitachi products and services** With fiscal 2005 as the base year, Hitachi plans to produce more environmentally conscious products and services.

In 2007, we set a goal to reduce annual CO2 emissions by 100 million tonnes through Hitachi
products by 2025. Seventy percent, or 70 million of that 100 million tonnes, comes from power
generation and other aspects of energy supply, while 30 percent, or 30 million tonnes, is associatedwith energy consumption, including industry, transportation, commercial and residential use.
For power generation and energy supply, we will provide products that reduce CO2 emissions
by expanding the provision of nuclear power and renewable energy technologies, as well as further
improving the efficiency of thermal power generation. For energy consumption, we are committed
to pursuing high energy efficiency in industry, transportation and daily living, such as developing
hybrid drive systems that use lithium-ion batteries and creating power-saving data centers that

Hitachi Group Corporate Social Responsibility Report 2009 | Highlight 2009 | Toward a Sustainable Society010integrate ICT (information and communication technology) with air conditioning technology.
Plan for CO2 Emission Reduction		(millions of
tonnes/yr)

100 million
tonnes/yr

Amount of CO2 curbed

100

80

63
60

40

20

0

Breakdown of 2025 CO2 Emission Reduction

Transportation,commercial andresidential
Industry
10%
20%
Power
generation
70%

35
14

2010 2015 2020 2025 (FY)

Specific Steps to Help Reduce CO2 Emissions by 100 Million Tonnes

Make all of our products Eco-Products
Pursue environmental efficiency of products through technology.
Promote green technology, environmental business investment and collaborative projects in global markets.

Product Development for a Sustainable Society
To reduce the environmental burden of CO2, we are building up the environmental efficiency of all
products.
First, we intend to make all Hitachi Group products Eco-Products †1 by fiscal 2025. To
achieve major improvements in environmental efficiency, we have also developed the Super EcoProduct classification. These are Eco-Products that have either an efficiency of global warming
prevention†2 or a resource efficiency †3 at least 10 times greater than standard products (fiscal
2000 products), or when these products are industry leaders based on their achievement ratiosof energy conservation standards†4 or other similar indicators, or are highly regarded outside the
Hitachi Group. The intention is to boost the percentage of Super Eco-Products to Eco-Products tomore than 30 percent by fiscal 2010.
We have identified the environment and energy as priority areas for channelling Group
resources. We look forward to using our technology to meet the challenge of environmental
protection, another step toward achieving a sustainable global environment.
Hitachi’s Eco-Product System

Super Eco-Productst Products with either a global warming prevention
or resource efficiency at least 10 times greater thanstandard products (based on FY 2000 products)
t Industry leaderst Highly regarded outside Hitachi

Eco-Products
Products that meet Assessment for DfE standards

Hitachi Group Corporate Social Responsibility Report 2009 | Highlight 2009 | Toward a Sustainable Society011

†1 Eco-Products: Products that meet certain standards under the Assessment for DfE (Design for Environment)
system, which uses criteria such as material reduction and longevity to provide a quantitative assessment ofenvironmental burden.
†2 Efficiency of global warming prevention: When evaluating a product’s value for function and life span, theratio of that product’s value to the quantity of greenhouse gases generated during its lifecycle.
†3 Resource efficiency: When evaluating a product’s value for function and life span, the ratio of that product’s
value to the amount of resources used during the product's lifecycle.
†4 Achievement ratios of energy conservation standards: Standard target values for energy efficiency have been
established for home appliances and other products on the basis of the Law Regarding the Rationalizationof Energy Use. The achievement ratio indicates the degree to which these standard target values have been
met. The target values were determined with reference to the most energy-efficient products available in themarket.
Eco-Products
http://www.hitachi.com/environment/library/glossary/kj/ecoproduct.html

Hitachi Group Corporate Social Responsibility Report 2009 | Highlight 2009 | Toward a Sustainable Society012

Highlights 2009 | Toward a Sustainable Society—Hitachi’s Environmental Technologies 1

Securing a Stable Electric Power Supply andReducing CO2 Emissions
We are developing a range of power generation technologies
that will help reduce CO2 emissions

Methods of power generation and CO2 emission reduction toward 2050
Energy demand in developing countries is expected to increase rapidly and growth in the
consumption of fossil fuels is anticipated. Therefore, achieving reduced CO2 emissions—while
maintaining a stable energy supply—is a social challenge requiring a worldwide solution. Thereis international consensus that CO2 emission levels need to be halved by 2050 if we are to limit
global warming. That will require securing a stable energy supply while developing and innovating
power generation methods and technologies that greatly reduce CO2 emissions.
Changes in the Global Electric Power Supply Mix and CO2 Emission Volumes

Halved CO2 emissions scenario
Forecasts of electric power supply
mix and CO2 emission volumes
under a scenario in which
CO2 emissions are halved

Gas
17%

Gas
17%
Coal
24%
Gas
20%

Coal
40%

Renewableenergy18%
CO2emissions
27 billion
tonnes( 9.7 billion tonnes ) *Nuclear
power
15%

Coal
13%

Renewableenergy
38%

Oil
0%

24.9
billiontonnesRenewableenergy46%

14billiontonnes( 2.3 billion tonnes ) *Nuclearpower
23%( 6.4 billion tonnes ) *Oil
3%

Nuclear
power
18%
Gas
21%

Oil
7%

Renewableenergy15%

Nuclearpower
8%62 billion tonnes( 27.3 billion tonnes ) *

Oil
3%

Coal
52%

Figures above have been rounded to whole numbers.
Estimates of the International Energy Agency’s (IEA)
Energy Technology Perspectives 2008.
Some data also obtained from Hitachi Research Institute estimates.

Extended-line CO2 scenario
Forecasts of electric power supply mix andCO2 emission volumes under a scenario in whichcurrent reduction policies remain unchanged* Figures in parentheses indicate amounts emitted by power generation.

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Securing a Stable Electric Power Supply and Reducing CO2 Emissions
013

CO2 Emission Volumes by Main Power Generation Methods
Power-generating
fuel combustion

975

Facilities andoperations

800

519

600

887

400

111 53

29
Wind

Combined
cycle LNG

88
Coal-fired

0

Photovoltaic

408

200

11

22
Nuclear

1,000

Small-scalehydro( g-CO 2 /kWh )Figures include CO2 emissions not only from power-generating fuel combustion but
from all the energy consumed in the electric power supply process—from themining of raw materials to the construction of power generation plants, fueltransportation, operation, repairs and maintenance.
The nuclear power figure includes domestic reprocessing of spent fuel currently
being planned, “pluthermal” use (assuming plutonium is recycled once), and highly
radioactive waste disposal.
Based on Research Report Y99009 and Research Report Y01006(August 2001, Central Research Institute of Electric Power Industry).

The Hitachi Group’s Power Generation Technologies
Current Group projects include cutting-edge nuclear power generation plants, more efficientcoal-fired power generation, power systems using sources such as solar and wind power, gridconnection control and battery storage technologies, as well as smart grids.†1 We are also
conducting joint R&D with research institutes, universities and other companies on technologies
for the future, including IGCC,†2 a promising candidate for next-generation high-efficiency power
generation; CCS,†3 which isolates and recovers the CO2 emitted from sources such as thermal
power plants for storage underground and elsewhere; and next-generation nuclear power plants
with more effective resource use.
†1 Smart grids: Next-generation power grids to optimize power transmission by utilizing information technology†2 IGCC: Integrated Gasification Combined Cycle (coal)†3 CCS: Carbon (dioxide) Capture and Storage(Left) 2,000 kW wind power generator developed jointly with Fuji Heavy Industries Ltd.
(Right) High-efficiency 600°C-class high-pressure turbine for thermal power generation

Main Power Generation Product and Technology Development Projects
CO2 emission reduction

Renewable energy power generation systems
Grid connection control
Battery technologies
Smart grids
CCS

High efficiency/effective use ofresources

Advanced boiling water reactors
High-efficiency coal-fired power generation
IGCC
Fast reactors

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Enhancement in Next-Generation
Power Generation Technologies

Yoichi Kaya
Director-General, Research Institute of
Innovative Technology for the Earth

The keys to halving CO2 emissions by 2050 are
innovations and improvements in the supply ofenergy, which accounts for around 40 percent
of CO2 emissions and where demand will keep
growing. While the base will be stable nuclear
power plant operations, there are many areas
where we can contribute, including improving
the nuclear fuel cycle, using IGCC in particular to
improve coal-fired power generation efficiency,
and by creating battery technologies—vital in
expanding renewable energy use. I strongly
expect Hitachi to become even more involved increating both a low-carbon society and greater
power supply stability by developing practical,
concrete, and innovative technologies from along-term perspective.

Hitachi’s Nuclear Power Generation Technology: For High Reliability
Responding to Global Nuclear Power Needs
Nuclear power generation is currently undergoing a renaissance. This is due partly to thewide distribution of uranium—used for fuel—across politically secure regions and its potential
contribution to energy supply stabilization, as well as the fact that no CO2 is emitted. Even in the
United States, where no new nuclear power plant has been built since 1973, plans are currently
under consideration to build more than 30 new nuclear power plants. Nuclear power generation is
expected to play a major role in reducing CO2 emissions in the years ahead.
Since putting the Tsuruga-1 nuclear power plant into operation in 1970, we have participatedin the construction of 20 nuclear power plants in Japan, amassing technological know-how while
maintaining and fostering expert human resources. In July 2007, Hitachi-GE Nuclear Energy wasestablished as a nuclear power joint venture between Hitachi and General Electric, a company
with extensive construction experience in the United States. This strategic move positions us in the
North American market with the technical capabilities and human resources that we have nurtured
to respond to the expected boom in nuclear power generation.

High Reliability
A key feature of our nuclear power business is that we handle the entire process from plant design
through to manufacture, installation and pre-operation by having many Hitachi Group companies
work in collaboration. We are striving to improve quality control by building a comprehensive
engineering database for centralized information management—from the drawings produced byour 3D CAD system to manufacturing plans and installation plans to progress monitoring during
construction.
We also attach ultra-small RFID (radio-frequency identification) chips called µ-chips to pipes
and cables shipped to construction sites, enabling detailed product and process management at

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Securing a Stable Electric Power Supply and Reducing CO2 Emissions015

new nuclear power plants.
Our interest in enhancing manufacturing and installation efficiency has led to putting aside thetraditional approach of installing machinery and laying pipes on-site during construction. Instead,
we have created a proprietary large-block modular construction method where plant components,
such as machinery and pipes, are assembled off-site and finished modules are then shipped tothe construction site. Using this method for nuclear power plant construction makes it easy tobuild according to plan; it also ensures top-level quality and security control. Large-block modular
construction will have a major impact on power plant construction in North America, as well asother regions.

(Left) Module assembly factory (Hitachi Works, Hitachi GE Nuclear Energy)(Right) Nuclear reactor containment vessel being lifted into Unit No. 3 at Chugoku Electric Power Company’s Shimane Nuclear Power Station in Japan

Looking to Tomorrow
As a builder of power plants, we have constructed many boiling water reactors (BWRs), the mostcommon type of nuclear power plant in Japan. Since 1995, we have also been building advanced
boiling water reactors (ABWRs) which offer high reliability. Moreover, we are working with theJapanese government, electric power companies and other manufacturers on a national project
to develop the next generation of light water reactors. These new reactors are intended to takeadvantage of the replacement reactor construction demand that will emerge around 2030, with aneye on the international market as well.
The reserves to production ratio for uranium is said to be around 85 years. To improve uranium
use efficiency, we have been deeply involved in building a nuclear fuel reprocessing plant and in agovernment-led fast reactor development program.

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Highlights 2009 | Toward a Sustainable Society—Hitachi’s Environmental Technologies 2

Contributing to Water Treatment Operations
Hitachi’s joint global R&D—researching the effective use of valuable water resources
Worldwide Water Problems
The 21st century has been called “the century of water,” with water shortages made worse by
global warming. Around 1.1 billion of the world’s approximately 6.5 billion people (as of 2006)
do not have access to safe drinking water. Some 2.4 billion people have to live without proper
sanitation, including wastewater and sewage treatment. Regions lacking adequate sanitation also
suffer from serious water contamination problems. Thus, water treatment technologies will soon
be critical for global environmental conservation.
World Water Stress in 2025*
More than 40%
High to extreme stress
40–20%
Medium to high stress
20–10%
Low to medium stress
Less than 10%
Low stress* Water stress refers to the ratio of water demand to renewable water resources. When this ratio tops 40 percent, it is said to be high. According to Vital Water Graphics(United Nations Environment Programme), four billion people are expected to face high water stress by 2025.

Ratio of People with Access to Good Sanitation (2004)

100%

Developed
countries

50%

Developing
countries

36%

Less-developed
countries

Source: Health indices, The State of the World's Children 2008 ( UNICEF )Hitachi Group Water Treatment Technologies
We contribute to global environmental conservation by offering water treatment systems andtechnologies for treating tap water and sewage, industrial wastewater and ship ballast water—for asafe and reliable water supply, the base of human existence.

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Contributing to Water Treatment Operations
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Hitachi’s Main Water Treatment Technologies
Sewage treatment
Industrial wastewater treatment

Technology using microorganisms to efficiently remove nitrogen from sewage and industrial wastewater

Sewage reclamation and recycling
Industrial water reclamation and recycling

Water treatment technology combining membrane separations and biological treatments

Ship ballast water purification

Water treatment technology combining flocculation and magnetic separation that avoids the use of
disinfectants and protects marine environments

Water Stress and Safe Water

Taikan Oki
Professor, Institute of Industrial Science
The University of Tokyo

Pressure from population growth, economic
development, urban concentration and climatechange are squeezing world water supply anddemand ever more tightly. This is less due
to water shortages in arid areas than due tothe lack of a social infrastructure for a stablesupply. The Hitachi Group and other companies
can contribute to solving the world’s water
problems in many ways, including creating thesocial mechanisms for maintaining a healthywater cycle and teaching skilful water use thatminimizes water pollution, as well as the transfer
of water treatment technologies and the supplyof funds. Supporting access to water promotes
good health, hygiene, and food production as
well as energy, transportation, and education.
This underpins sustained economic growth in
the developing world and world stability; it also
substantially contributes to Japan’s national
interests.

Technologies Creating Safe and Reliable Water
Solving Water Contamination
China’s urbanization has gone hand in hand with severe water pollution. A prime example is TaiHu
Lake, an area in the Yangtze River Delta known for its scenic beauty. Large amounts of bluegreen algae now bloom there every summer, causing a strong odor in the tap water of coastal
regions fed by the lake. This is thought to be due to nitrogen and other substances in domestic
and industrial wastewater flowing into rivers, lakes, and marshes, causing eutrophication (whentoo many nutrients cause excess growth of plants and organisms).
To address this problem, we are looking to deploy a unique nitrogen removal system using
immobilized microorganisms trapped in polymer gel cubes.
The most common sewage treatment method is the activated sludge process, where air
bubbles are fed into a bioreactor, using the action of microorganisms for water purification. While
this is an effective way to break down organic matter, it cannot completely remove contaminants
such as nitrogen. With entrapped immobilized microorganism technology, microorganisms thatcan remove nitrogen are trapped in a polymer gel shaped into 3-mm cubic pellets. Injecting thepellets into the bioreactor substantially boosts the nitrogen removal rate. PEGASUS, a nitrogen

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Contributing to Water Treatment Operations
018

removal system jointly developed with the Japan Sewage Works Agency, uses this technology. It isalready performing well in sewage in Japan and private-sector industrial wastewater treatment.

Gel containing highly concentrated microorganisms

Joint Research Verifies Feasibility
To deploy this new technology in China, it was vital to use actual wastewater to verify thetechnology and win over the government and major design institutes that determine sewage plant
specifications. We have demonstrated the effectiveness of entrapped immobilized microorganisms
through joint research with a number of Chinese universities.
In conjunction with the Shanghai Jiao Tong Univer­sity, under a joint research project, we set
up a pilot plant for tests at a brewery in Guangdong Province. These tests produced good results
and proved the effectiveness on wastewater containing high concentrations of ammonia. We also
undertook on-site verification in sewage plants in cities in the TaiHu Lake area. In our research with
Nanjing University, we made an on-campus evaluation of entrapped immobilized microorganisms
and also performed demonstration experiments at sewage plants.

A PERSEUS system installed at a construction workers’ housing complex
in Dubai processes wastewater for about 1,500 people

Reusing Water Resources
We have also developed a system for water recycling and reuse in regions with serious water
shortages. The PERSEUS system produces treated water suitable for reuse with a membranebioreactor where a membrane is submerged in a bioreactor for solid-liquid separation.
The PERSEUS system is already in commercial use. Units began operating in 2007, forexample, in Dubai in the United Arab Emirates, a city that is attracting attention for its large-scaleurban development. In September 2008, a new company was set up with local investors to gather
domestic city wastewater in tank trucks for advanced treatment using the PERSEUS system,
where the treated water is sold for use in industry, toilets, irrigation, and plantations.
At the same time, given that many areas with serious water shortages are in the developingworld, increasing the market penetration of water recycling technologies will require a significant
lowering of costs. We are jointly researching how to do this with leading universities around theworld that have special technologies. In Singapore, which has the NEWater Plan for recycling

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Contributing to Water Treatment Operations019

wastewater as a drinking water resource, we have begun working with Nanyang Technological
University to apply the university’s leading-edge technologies to develop a system that is driven
by a small amount of energy. We are also collaborating with China’s Sichuan University to createa low-cost hollow fiber membrane that combines the university’s polymer material and spinningtechnologies with our membrane treatment technologies.

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Contributing to Water Treatment Operations
020

Highlights 2009 | Toward a Sustainable Society

Environmental Management in Monozukuri
We are set to reduce, from a long-term perspective,the environmental burden of products over the entire product lifecycle
Environmental Action
We have written the Hitachi Action Guidelines for Environmental Conservation, which outline
the Group’s environmental management policy based on Hitachi, Ltd. Standards of Corporate
Conduct. Using these guidelines, we have adopted three pillars for our environmental vision: theprevention of global warming, conservation of resources, and preservation of the ecosystem.
The target in our medium-term plan, Environmental Vision 2015 is to achieve emission neutral by
fiscal 2015. Drawing on the Sustainability Compass, which lays out directions for environmental
activities, we have developed an Environmental Action Plan with specific targets for fiscal 2010.
The GREEN 21 evaluation system is used to assess the progress of our activities, verify the results,
and ensure continual improvement.
Hitachi Action Guidelines for Environmental Conservation (excerpt)
This document lays out 10 specific guidelines that include a statement on meeting our social responsibilities
through environmental protection activities, relevant business activities, and forging cooperative relationships
with stakeholders.
PurposeIn order to realize an environmentally harmonious and sustainable society through products and services,
Hitachi is committed to meeting its social responsibilities by promoting globally applicable monozukuri(designing, manufacturing, or repairing of products), which is aimed at reducing environmental burdens of
products throughout their entire lifecycle, ensuring environmental conservation.
Hitachi Action Guidelines for Environmental Conservation (full text):
http://www.hitachi.com/environment/activities/more/guideline.html

Medium-Term Plan Environmental Vision 2015
To achieve emission neutral by fiscal 2015 (see pages 9 and 10)

Environmental Action Plan
Action items and targets have been set for each of the four axes of our Sustainability Compass. Action items
include expanding our Eco-Product lineup, steps to counter global warming, efficient use of resources, andproactive communication on environmental issues. Environmental Action Plan targets are reviewed andoptimized to reflect, for example, the state of the global environment, requests from stakeholders, and earlytarget achievement.
N

W

Sustainability
Compass

E

S

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Environmental Management in Monozukuri
021

The GREEN 21 Evaluation System
GREEN 21 is an evaluation system designed toensure steady implementation of the Environmental Action Plan and continual improvements,
and to raise the effectiveness of environmental
activities. GREEN 21 is an evaluation tool thatnumerically assesses the degree to which thatyear’s Environmental Action Plan goals havebeen achieved, then displays the results in radar
charts for easy viewing and use in environmental
management. Version 3 was created in linewith the Action Plan and has 55 items in eightcategories based on the four a xes of the
Sustainability Compass. Assessments are madefor each plant and office, and the results are also
reflected in the overall performance evaluation ofeach business group and company. This reveals
weak points in environmental action and shows
improvements needed in the next fiscal year.
In fiscal 2008, a Group average score of 1,108
Green Points (GPs) was achieved, exceeding thetarget of 1,024 by 84 points. Regarding green
procurement in particular, efforts are being madeto improve GP scores by providing individualized,
visiting advisors to the procurement divisions
and environmental promotion divisions of groupbusinesses and companies, coupled with support
for the environmental activities of procurementtransaction partners.

FY 2010: 1,280 GPs
FY 2008: 1,108 GPs
FY 2007: 966 GPs

8. Worldwide Environmental
Partnerships
130 GPs
7. Eco-Factories:
Resource Recycling
140 GPs

6. Eco-Factories:
Reducing Global Warming
123 GPs

1. Eco-Management
146 GPs
160
2. Eco-Mind
151 GPs
80
3. Eco-Products:
Manufacturing
133 GPs

0

5. Next-Generation Product/
Service Strategy
138 GPs

4. Eco-Products:
Green Procurement
147 GPs

Reducing Environmental Burden throughout the Product Lifecycle
Our goal is to achieve emission neutral (see pages 9 and 10) to help build a sustainable society.
We are pursuing environmental protection based on actions designed to respond to environmental
regulations and to reduce the environmental burden at all stages of the manufacturing process—from materials procurement, manufacturing, distribution, and product use, through to disposal.
Product Lifecycle

DesignProcurement

Production

Distribution

Use

Disposal andrecycling

Develop and design products with a low environmental burden
Implementing Ecodesign
Minimizing the environmental burden of products to the greatest possible extent means focusing on

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Environmental Management in Monozukuri
022

the impact at every stage of the product lifecycle. We have integrated Assessment for DfE (Designfor Environment) into product development: We evaluate environmental burden using eight criteria,
including resource reduction and product longevity. Based on these criteria, products having better
environmental performance than previous models (before the latest major design change) arecalled Eco-Products. To implement proper and efficient Eco-Product development not only design
divisions but also every operational unit, including planning, procurement, manufacturing andquality control, is required to integrate environmental consideration into their work. We will achieve
this by incorporating ecodesign into our existing management system. The system will enableprompt responses to environmental laws and regulations, as well as environmental information
disclosure requirements, to make products with outstanding environmental performance.
Integrating Ecodesign into the Existing Management System
Planning

DesignProcurement

Manufacturing

Quality control
Example of a
product assessedin FY 2008

Assessment for
DfE Criteria

Resource reduction
2.9
Packaging materials
5(reduction, etc.)
3.3
3Product
longevity
3.5

2
Information
provision
4.2

Energyefficiency
5.00

Environmental protection
3.0

Resource
recycling
3.4
Ease ofdecompositionand processing
2.6

A perfect score is five points for each criterion. Products that scoreat least two points in all eight criteria and have an average score ofat least three across all eight criteria are defined as Eco-Products.

Procure materials and products with a low environmental burden, share environmental information
across the supply chain, and promote environmental protection with suppliers
Environmental CSR-Compliant Monozukuri
We have promoted environmentally conscious product manufacturing across the entire
manufacturing process, through product design, parts/materials procurement, manufacturing,sales and providing service. Accordingly, we have developed common rules for environmental
CSR-compliant monozukuri and a framework for managing chemical substances contained in
products. Since 2005, we have employed the Information Management System for Chemical
Substances Contained in Products. We now have information on the chemical composition of
more than 624,000 parts (March 2009) to ensure green procurement. We are also improving ourcompliance with the REACH†1 regulation, the compulsory registration and notification for chemical
substances used in the European Union (EU).
†1 REACH: Registration, Evaluation, Authorisation, and Restriction of Chemicals (This EU regulation came into
force on June 1, 2007.)

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Environmental Management in Monozukuri
023

A Gree’ Net
Parts chemical
content information

Design forEnvironment( DfE )

Green
procure-ment

DesignProcurement

Environmental CSR
database
Total amount of designatedchemical substances
received and shipped

Reduction ofenvironmental
burdenRisk management( individual producttraceability )Manufacturing

Qualityassurance
Distribution

Customers/society

Information Management System for
Chemical Substances Contained in Products

Disclosure ofenvironmental information

Environmentally conscious manufacturing

Product

Parts andmaterials

Environmental information

Supplier

Managing Chemical Content of Products

Promote environmentally conscious manufacturing through energy saving, effective resource use,
and management of chemical substancesSuper Eco-Factory & Office Certification
We internally give Super Eco-Factory & Offices certification to facilities that achieve outstanding
results and take pioneering steps in environmental burden reduction. By highlighting the initiatives
taken by certified factories and offices, we are encouraging environmental action across the wholeGroup.
Assessment is based on six criteria, including energy efficiency, improvements in resource
recycling and VOC†2 emission reduction to certify those facilities that achieve industry-leading
environmental efficiency and a reduction in adverse environmental burden. Nine facilities havebeen certified as Super Eco-Factories & Offices up to fiscal 2008. Our goal is to raise this to 30
across the Hitachi Group by fiscal 2010.
†2 VOC: Volatile organic compounds

Super Eco-Factory & Office Certification Criteria
1. Energy efficiency
2. Improvements inresource recycling
3. VOC emissions reduction
4. Water recycling
5. Renewable energy use
6. OtherSuper
Eco-Factories
Certified as achieving industry-leading
direct environmental burden reduction( special commendationor use of original technologies
to meet targets )Eco-Factories
GREEN 21 activities
Overall assessments ofenvironmental management andenvironmental burden reduction
based on target goals for a given fiscal year
Offices and Factories

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Environmental Management in Monozukuri
024Reduce the environmental burden of transportation with modal shifts and more efficienttransportation

Popularize products with a low environmental burden

Resource recycling, proper treatment for disposal

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Environmental Management in Monozukuri
025

Highlights 2009 | Toward a Sustainable Society

Environmental Activity Topics
Here we present some of our environmental activities
during 2008 based on the four axes of the Sustainability Compass

Eco-Mind & Global Environmental Management

Conferences of Staff in Charge of Environmental Issues in Four Key Regions
Outside of Japan, the Hitachi Group is organizing environmental activities in these regions: the Americas,
Europe, China, and the rest of Asia. In 2008, management in charge of environmental activities gatheredin each region to understand Hitachi’s policy and the world’s environmental regulations, and to share
information on their environmental activities, such as energy conservation. Through these conferences,
regional networks were developed to deepen collaboration, clarify issues and provide encouragement for
further action. We will continue to hold these events to develop our global environmental activities whilereflecting regional characteristics.

(Left) Chinese Regional Conference in Suzhou, March 2009,(Right) European Regional Conference in Brussels, January 2009

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Environmental Activity Topics
026

Next-Generation Products and Services

Forty-six Eco-Products Newly Registered
1,103 Hitachi Group products (6,961 models) were registered as Hitachi Eco-Products in 2008. These
products have high external reputations.
Hitachi Energy Recovery System—Micro-Hydropower System
Hitachi Industrial Equipment Systems Co., Ltd.
• Winner of 2008 Promotion Council Chairman’s Prize, 5th Eco-Products Award (2008)• Winner of the Japan Machinery Federation Chairman’s Prize, JMF Award for Energy-Conserving
Machinery
Hitachi Industrial Equipment has developed a system that recovers surplus hydropower energy frombuildings and factories as electrical energy. Optimizing rotation speed enables highly efficient energy
recovery, and miniaturization increases the range of places where it can be installed.
Agricultural Information Management System: GeoMation Farm
Hitachi Software Engineering Co., Ltd.
• Winner of 2008 Promotion Council Chairman’s Prize, 5th Eco-Products Awards (2008)• Winner of Ministry of Internal Affairs and Communications Prize on Environment, u-Japan Award
A system adapting satellite image remote sensing technology and map information ensures crop quality
through fertilizer management and reduces energy consumed in the drying process by optimizing theharvesting time of crops, such as wheat.
Hitachi Appliance’s Drum-type washer-dryer (BD-V3100, BD-V2100)
Hitachi Appliances, Inc.
• Winner of METI Minister’s award, Energy Conservation Grand Prize 2008
The product recovers heat emitted by the motor, etc., and reuses it to dry clothing. This energy-saving
technology reduces power consumption.
Packaged Air Conditioner for Cold Regions (standard heating capacity of 8 kW–16 kW)
Hitachi Appliances, Inc.
• Winner of Environment Minister’s Award for Activities to Fight Global Warming 2008 (Technology
Development and Commercialization Category)This product has a highly efficient inverter compressor and a heat exchanger for outdoor units that repel
frost, improve heating capacity, and reduce energy consumption when the outside is cold. Individual
operation of indoor units is also available for efficient air conditioning.
Power
Generator
Water
Wheel

Runner

Water
Flow(Left) Micro-Hydropower System, (Left-Center) Satellite image—GeoMation Farm
(Right-Center) BD-V3100, Drum-type washer-dryer, (Right) Packaged Air Conditioner for Cold Regions

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Environmental Activity Topics
027

Super Eco-Factories & Offices

Nine More Super Eco-Factories & Offices Certified
Based on their 2008 performance, nine more facilities have been certified as Super Eco-Factories &Offices. The performances of previously certified facilities are reassessed yearly to determine whether
they will retain their certification. Up to now, 26 facilities are recognized as Super Eco-Factories or Offices.
For example, Hitachi Industrial Equipment Systems’ Narashino Division uses the business concept of“contributing to the environment and energy conservation.” Accordingly, they develop and manufactureenergy-saving products and actively implement energy saving at the plant. By introducing highly efficient
amorphous transformers, inverter controls for production facilities, a power monitoring system, andceramic metal halide lights, the Narashino Division has reduced annual CO2 emissions by 1,720 tonnes.
The plant exploits natural and renewable energies as well, including a photovoltaic power generation
system and micro-hydropower generation that uses surplus energy.

Narashino Division, Hitachi Industrial Equipment Systems Co., Ltd.
(Right) The new production building uses high-insulation glass and energy-saving equipment(Left) Solar panels installed on the roof of the production building

Worldwide Environmental Partnerships

Hitachi Booths at Eco-Products Exhibitions Attracted 34,000 Visitors
We introduced environmental activities and environmentally conscious technologies and products at
exhibitions around the world. In 2008, we exhibited 31 products at Eco-Products 2008 in Tokyo—basedon the theme of how Hitachi can contribute to protecting the earth. Outside of Japan, we showcased eight
products, including home appliances and industrial machinery, at the Fifth Eco-Products International
Exhibition in Manila, the Philippines. Visitors were invited to write messages about the global environmentand Hitachi’s environmental activities on cards, which were then pinned to a board to form an “eco tree.”
The Hitachi booths at these eco-products exhibitions in Japan and abroad attracted 34,000 visitors.

Eco Badges for All 400,000 Hitachi Employees
To promote environmental awareness among Hitachi management and staff, in 2008 an eco badge
displaying the Hitachi Tree was distributed to all of Hitachi’s management and employees worldwide.
Wearing these badges will encourage everyone to make the effort to achieve yearly targets based on
Hitachi’s Environmental Vision.

(Left) “Eco tree” covered with messages (Eco-Products International Exhibition)(Right) Eco Badges for All

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Environmental Activity Topics
028

Highlights 2009 | Toward a Sustainable Society

Extending Our Collaborative Projects Overseas
Our collaborative projects, where we join forces with our worldwide partner companies,
government institutions, and universities to develop environmental technology,
are contributing to environmental protection programs outside of Japan

Project  Japan-China Energy Conservation andEnvironmental Business Promotion Model Project
In Yunnan Province, China, we are active in the Model Project for Energy Saving and Utilization ofWaste Heat/Pressure through Electrical Systems. This is a collaborative effort between Hitachi, theEnergy Conservation Office of the People’s Government of Yunnan Province, and the China Center
for Business Cooperation and Coordination of the National Development and Reform Commission.
The first phase of the project: operations in April 2008 of two sets of Hitachi high-voltage inverters
at Kunming Iron & Steel Co, Ltd., one of Yunnan’s major steelmakers. The company was able toreduce energy consumption by an average of 26 percent.
In addition, the high-voltage inverter for intake pumps that Hitachi provided for Tianda Chemical
Industries Co., Ltd. and the high-voltage inverter for slurry pumps that we provided for Yunnan
Three Circles Chemical Co., Ltd. began operating in July and September 2008 respectively. As
a result, the Hitachi inverters were able to help these companies achieve immediate initial energy
savings of 25.7 percent.
Hitachi’s inverter units were used as the base for the inverter systems, while Dongfang
Hitachi (Chengdu) Electric Control Equipments Co., Ltd. assembled them. Using our patented
energy monitoring technology, these inverter systems allow energy savings to be clearly viewed
on monitors. This cutting edge technology is based on energy-saving evaluation and monitoring
technologies from Hitachi’s motor drive energy conservation service, HDRIVE. Collaborative
creation between Hitachi (China) Research & Development Corporation and Dongfang Hitachi(Chengdu) Electric Control Equipments worked together to develop the system.
Following up on the projects in Yunnan Province, Hitachi joined forces with the China Center
for Business Cooperation and Coordination and the Ningbo Municipal People’s Government tolaunch a second national-level project: the Cooperation Project for Energy-saving and Emission
Reduction among SMEs in Ningbo. Thirty SMEs in Ningbo were selected to serve as modelcompanies for this project. Plans are to conduct trial energy audits and to expand eligibility for the
project once the results have been confirmed.

A monitor showing how much energy is being saved		

An energy audit of a model company in the city of Ningbo

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Extending Our Collaborative Projects Overseas
029

Project  Joint Research on Coal Combustion Technology for CO2 Reduction

The environmental burden of coal is not low, however it will not go away soon; it is an abundant andlow cost source of energy, with infrastructure in place to support its use. Therefore Hitachi realizes
the best course of action is to help clean up the process and reduce the negative impact of coalenergy in the short to medium term, while in the long term investing in and enabling alternative
energy technologies and products that support a sustainable future. Since conventional coal-fired
thermal power plants burn coal with air, it is necessary to separate nitrogen and CO2 in the flue gas
to recover CO2. Using the oxygen-combustion method, the main components in the flue gas arewater and CO2, making it easier to recover CO2. This system can be adapted to coal-fired power
plants around the world by adding oxygen supply equipment. Requiring few major modifications,
it is believed that practical application is close at hand. In Germany, in particular, there are plansto test oxy-fuel combustion technology. Hitachi companies, especially Hitachi Power Europe, areparticipating in European projects, working on system design.
For basic research, we have exchanged joint statements with the German state of North
Rhine-Westphalia on technology for reducing CO2 from coal-fired plants. We are jointly researchingwith leading universities, as well. Our research project with RWTH Aachen University uses theuniversity’s own oxy-fuel combustion test furnace to compile data on combustion, and we areusing more sophisticated numerical analysis techniques to improve the reliability of oxy-fuelcombustion furnaces.

Oxy-fuel combustion testing equipment at Aachen University (Germany)
Photo courtesy of © Peter Winandy, RWTH Aachen University

Forum  Ongoing Environmental Cooperation with the Chinese Government

In 2006, Hitachi set up the China Energy Conservation and Environment Commercialization
Promotion Project Team. Since then we have cooperated by touring projects in Japan withrepresentatives of China’s central and provincial governments, including a film project with the
China Environmental Protection Ministry and China Central Television (CCTV).
Due to strong support from the National Development and Reform Commission, we have held
three joint Energy Conservation and Environmental Protection Technology Exchange Conferences
since 2007, bringing together Japanese and Chinese companies, research institutions, anduniversities to exchange ideas and create alliances on environmental research. These meetings aremaking a contribution to China’s environmental protection programs. In October 2008, the ChinaJapan High Level Forum on Energy Saving and Environmental Protection Policies, sponsored by
the Development and Research Center of the State Council, was held in Beijing, with Hitachi,
Hitachi Research Institute, and Hitachi (China) as the supporting Japanese companies.

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Extending Our Collaborative Projects Overseas
030This forum had about 200 attendees from both countries’ governments and industries,
and featured four sessions: “Policies and Regulations for Energy Conservation and Reductionof Emissions,” “Energy Conservation and Reduction of Emissions for Companies,” “Societal
Programs for Energy Conservation and Reduction of Emissions,” and “Collaborations between
Japan and China on Energy Conservation and Environmental Protection.” Each session included
lectures and discussions.

The China-Japan High-Level Forum on Energy Saving and Environmental Protection Policies

Forum  Environmental Events in the United States and Singapore

In March 2009, Hitachi held environmental seminars and exhibitions in the United States andSingapore, with government officials and other influential public figures as guests.
A climate change forum titled Meeting Energy Needs, Reducing Environmental Impact,
attracting about 400 participants, was held in Washington, D.C. and was jointly organized by theAmerican Association for the Advancement of Science and The Brookings Institution. In addition
to a keynote address by U.S. Senator John Kerry, the forum featured panel discussions on climatechange policy, research and development of the energy supply, and energy conservation, among
other topics.
In Singapore, the Hitachi Eco Conference received the backing of the Singapore government,
including the Ministry of the Environment and Water Resources and the Economic Development
Board, and attracted about 280 government figures and other guests. Discussions covered energy
and water resources, both pressing local issues.

Meeting Energy Needs, Reducing Environmental Impact,
a forum held in the United States

The Hitachi Eco Conference held in Singapore

Hitachi Group Corporate Social Responsibility Report 2009 | Highlights 2009 | Extending Our Collaborative Projects Overseas
031

Hitachi’s CSR Management
Hitachi’s CSR activities
worldwide are following a roadmap
to a better, more affluent society for all humankind

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management032

Corporate GovernanceBy enhancing corporate governance, the Hitachi Group is promoting speedier,more efficient management and is meeting the expectations of stakeholders
as a business that merits the public’s trust

Strengthening Governance
We operate on the committee system†1 to more effectively manage oversight by bringing in outside
directors and to speed up decision making by giving executive officers broader powers. We havealso set up a Group-wide system of internal controls, strengthened governance and management
efficiency, and have worked hard to earn the trust of all stakeholders.
To reinforce the role of the Group headquarters, we have established guidelines on theenvironment, compliance, risk management, and internal audits. As well, we have implemented
internal audits of Group companies. We are striving to enhance corporate value through close
communications with all stakeholders.
†1 Committee system: A corporate governance system where a board of directors makes basic policy decisions
and oversees the execution of business by executive officers, while the executive officers, appointed by theboard of directors, execute the company’s business affairs
Governance Structure of Hitachi, Ltd.
General Meeting of Shareholders
Election

Board of Directors(12 members, including 5 from outside )Nominating Committee
Audit Committee Compensation Committee( 4 members, including ( 5 members, including ( 4 members, including
3 from outside )3 from outside )3 from outside )Election

Supervision

Executive Officers: Timely execution of company business

Executive Compensation
Compensation for every director and executive officer is set by the Compensation Committee
based on the Japanese corporate law governing companies with committees.
Compensation for directors and executive officers consists of monthly salaries together with
year-end allowances for directors and performance-based bonuses for executive officers. While
compensation for directors is generally fixed, performance-based bonuses for executive officers
are determined individually according to business performance and the outcome of work carriedout under the officers’ management. Monetary compensation is the basis of the compensation
system. Beginning with compensation for fiscal 2008, the scheme for directors and executive
officers has been revised to eliminate retirement allowances. In fiscal 2008, executives werecompensated as follows:

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Corporate Governance033

Summary Compensation Table
Salaries and year-end allowances or performance-based bonuses
Category

Total amount(millions of yen)

Recipients (number)

Directors(outside directors)

13
(5)

408
(95)

Executive officers

26

1,133

Total

39

1,542

* The number of Directors indicated excludes the two Directors who serve concurrently as Executive Officers.
* The compensation to Directors includes the monthly salary of the two Directors, who retired due to expiration of
their terms of office at the close of the 139th Ordinary General Meeting of Shareholders held on June 20, 2008,
for their terms of office of this year.

Internal Control
As a public company listed on the New York Stock Exchange, Hitachi, Ltd. is registered with
the U.S. Securities and Exchange Commission and is subject to the Sarbanes-Oxley Act.†2 A
comparable internal control evaluation and reporting system (J-SOX†3) came into effect in Japan
at the beginning of fiscal 2008. Accordingly, the Hitachi Group as a whole and all listed Group
companies now evaluate internal control systems and report the results on a consolidated basis.
We are committed to full compliance with these and other applicable laws and regulations.
Beyond that, we consider it an important social responsibility to re-engineer our internal control
systems, to improve the transparency and credibility of our businesses, and to strengthen ourmanagement structure by clarifying, examining, and visualizing our management and operationalframeworks.
As a conglomerate of many companies, we have adopted a framework that assigns
accountability at the Group level, including responsibilities for the design and operation of internal
controls. Accordingly, Hitachi Group companies are required to revise, document, and evaluate theeffectiveness of their operations in line with guidelines determined by specific levels of corporate
scale and business content. Management assessment of each company is collected at the Grouplevel, and is reported to Hitachi, Ltd. along with the certification.
†2 Sarbanes-Oxley Act (SOX): Section 404 of this act, enacted in July 2002, mandates company managementwith the responsibility of establishing, maintaining, and evaluating internal control over financial reporting,and requires that control be assessed by independent auditors.
†3 J-SOX: A framework for evaluating and reporting internal control over financial reporting under the Japanese
Financial Products Transaction Law. It came into effect with the promulgation of the Financial Instruments
and Exchange Law in June 2006 and has been applied since April 2008.
Hitachi Internal Control Assessment Framework
SEC*1

Management
assessment
reportFinancial
Services
AgencyHitachi, Ltd.
CEO and CFO*2
ReportInternal Control
Committee

Internal Control
Committee Office

Board of Directors
Audit Committee

ReportReportInternal audit
reportInternal audit
reportInternal Auditing
OfficeAudit

Monitoring

Certification, Management
Assessment Report*1 SEC:
Securities andExchange Commission*2 CFO:
Chief Financial Officer

Hitachi Group HQs(Hitachi Group HQsand Hitachi, Ltd.
Business Groups)

Hitachi Groupsubsidiaries

Internal Control Handbook

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Corporate Governance034

Independent auditors

				Group Management
In the Hitachi Group, we strive for a management approach that fosters synergy among companies
by nurturing connections while respecting each company’s independent creativity. In a quest for
strategies to maximize Group synergy and make optimal use of Group management resources,
we are currently developing whole Group management policies through the Group Strategy
Committee established in April 2006.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Corporate Governance035

CSR Promotion Activities
Objective view to strengthening CSR management
Striving to Be a Global Leader in CSR
In 2006, we established the Three-Year CSR Roadmap, a medium-term plan for CSR activities.
Based on this roadmap, we set fiscal year targets and activities that strengthen our CSR efforts
over this period. Our objectives in fiscal 2008 were to optimize and carry out strategic CSR.
Through dialogues with stakeholders, we prioritize material issues for the sustainable developmentof society and for business. We also applied CSR self-assessment tools to clarify challenges withineach division. We are now incorporating these issues into our strategy, with the goal of becoming
a global leader in CSR in 2010—the year of our company’s centennial.
Three-Year Roadmap Concept
2010
Toward an advanced
global CSR company

Medium-Term Business Plan

Level of CSR Evolution

Realization of ideals

Determination ofcurrent statusbased onthe CSR Policy of
the Hitachi Group

April 2006

Verification andvaluation of
CSR activities

April 2007

Optimization of
CSR activities andimplementation ofstrategic CSR

April 2008

Group-wide efforts
to resolve issues
in society

March 2009

Structure of Hitachi Group CSR Promotion
President

SeniorExecutive
Committee
CSR
Promotion
Committee

Senior Executive Committee:
Decides CSR management policies
at the executive level
CSR Promotion Committee:
Consists of Executive Officers responsible for CSR
Discusses policies and plans for CSR activities
CSR Promotion Teams:
Consists of managers responsible for CSR
in each department. Prepares,
implements and follows up on
detailed plans for CSR activities

Corporate
Communications Division
CSR Promotion Department(Secretariat )CSR Promotion Teams:
Group Management,
Corporate Brand Management,
Customer Satisfaction, Overseas Operations,
Employee Relations & Human Resources,
Legal Affairs, Corporate Citizenship,
Environmental Conservation, Compliance,
Quality Assurance, Procurement,
Public Relations

Business groups
Group directors& CEOsCSR promotion officers

Production
facilities

Affiliated companies
President
CSR promotion officers

Affiliatedcompanies

Overseassubsidiaries
Hitachi, Ltd., 944 consolidated subsidiaries,
and 166 companies that use the equity method

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | CSR Promotion Activities
036

Results of CSR Activities in Fiscal 2008 and Goals/Plans for Fiscal 2009This table summarizes the main CSR activities and results based on the Hitachi Group Three-Year
Roadmap in fiscal 2008, as well as plans for future activities.
CSR Policy of the
Hitachi Group

Fiscal 2009 Goals/Plans• Implemented CSR e-learning courses
overseas (attendance rate: North andSouth America 70%, China 90%)
• Held CSR workshops (in five Asian
countries)• Held CSR working group sessions in
EuropeP. 39• Implement CSR e-learning
courses in other Asian
countries• Engineer plan-docheck-act (PDCA) cycle
through the adoption of
Hitachi Group shared CSR
visualization tools (tentativename)• Developed Hitachi Group CSR selfassessment tools and implemented
them throughout the Group (used at 22
companies)

PP.
38–39

• Increase the number ofcompanies where CSR selfassessment tools are applied,
and implement tools overseas• Determine important
themes for Hitachi GroupCSR activities and havethem reflect the concernsof society as well as
management• Determined important CSR issues for
the Hitachi Group and themes for CSR
activities• Assessed important issues andbusiness operations beneficial to society
from management and stakeholders’perspectives

PP. 7–8• Introduce materiality
process*1 and incorporate
it into corporate strategy,
business operations, andmanagement decision making• Improve the PDCA cycledriven work process• Implemented process improvement
measures (strengthened management ofchange points, etc.) in business divisions
prioritized by the need for quality
improvement

P. 53• Put a stop to serious
accidents and foster global QA(quality assurance) leaders• Develop skills of sales
divisions in order to boost
CS activities• Conducted exchanges of opinions withbusiness groups and Group companies(in four locations) on CS activities from
customers’ perspective

PP.
57–58

• Strengthen Group network of
Web sites for general customer
inquiries

3. Disclosure of
information andstakeholder engagement• Send out more, anddisclose more completely,
information on priority
initiatives• Conduct dialogues withstakeholders in Japan andoverseas• Refine CSR Web site andimprove searches• Disclosed information two ways:
through CSR Report Digest (booklet)
and CSR Report (PDF) to provide moredetailed information• Conducted dialogues on environmental
issues with stakeholders (in the U.S.)
and held environmental forums, etc., (inChina, the U.S., and Singapore)• Improved both index for CSR Web site
and Web page layout

P. 1, 8P. 31

• Issue clear, concise
Environmental Report• Conduct dialogues withstakeholders in all overseas
regions• Improve transparency anddisclose more information on
CSR Web site

4. Corporate ethics andhuman rights• Implement corporate
ethics and complianceeducation programs basedon the Corporate Ethics andCompliance Handbook• Continue implementing
compliance education
programs in Asia

• Used the Corporate Ethics andCompliance Handbook (English edition,
Chinese edition) throughout HitachiGroup companies• Implemented compliance education
programs in Asia (five countries) andrevised the employee notification systemin the Philippines• Established company regulations
regarding the prevention of bribery• Joined the United Nations Global
Compact

PP.
41–42• Develop a global education
program on human rights• Implement e-learningcompliance programs in Asian
countries

5. Environmental
conservation• Promote and expand
integrated EMS certification
program• Boost Super Eco-Productratio to 15%• Register eight more Super
Eco-Factories and Offices• Four Hitachi Group companies
acquired integrated EMS certification:
Hitachi Metals, Ltd., Hitachi Plant
Technologies, Ltd., Hitachi Maxell, Ltd.,and Hitachi Medical Corporation.
• Achieved Super Eco-Product ratioof 18%• Registered nine more Super EcoFactories and Offices (bringing the total
to 26)

PP.
21–28• Promote and expand
integrated EMS certification• Boost Super Eco-Productratio to 22%• Register eight more Super
Eco-Factories and Offices

2. Contribution to society
through our businessResults in Fiscal 2008

• Implement CSR e-learning
courses in the Americas,
and China and other Asian
countries• Continue holding CSR
workshops and seminars
overseas

Achievement
Level

Page(s)1. Commitment tocorporate social
responsibility

Activities in Fiscal 2008

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | CSR Promotion Activities037

6. Corporate citizenshipactivities• Implement programs
on global environmental
themes• Implemented programs in U.S.A.,
China, Singapore, Thailand, thePhilippines, and Japan

PP.
66–74

• Implement programs inemerging countries andmarkets• Continue implementing
programs on global
environmental themes• Expand educational support
programs (further improve
visiting lectures on Universal
Design)• Plan and deploy newsocial contribution programs
to satisfy needs in emerging
countries• Planned programs in India and South
Africa• Incorporate aging andother important social
issues into existing social
contribution programs anddeploy them

• Held the EU-Hitachi Science andTechnology Forum on the theme of theaging society• Expand educational
support programs (increase
regions for visiting lectures
on Universal Design)• Implemented educational support
programs at 21 elementary schools,
etc., mainly in the Tokyo metropolitanarea

7. Working environment• Promote improved
diversity awareness Groupwide• Continue encouraging
appointment of female
managers• Plan and deploy initiatives(development and trial
implementation of training
curriculum) to reaffirm
Hitachi’s founding spirit andideals• Held Women’s Summit Tokyo 2008
(co-sponsored with other companies)• Promoted diversity awareness ineach business group (holding work-lifebalance seminars, etc.)• Implemented community contribution
activities (lectures on work-life balancein communities where business offices
are located) and participated in the
Ministry of Health, Labour and Welfare’s
Work-Life Balance Project• Set up a diversity promotion Web site
• Implemented special executive andmanagement training to reaffirm what
Hitachi is

PP.
77–80

• Promote diversity
awareness in the HitachiGroup (encourage informationexchange and developmentof shared tools through theDiversity Development Group
Committee)• Develop a training curriculum
for confirming and learning
through experience the values
and conduct shared by all
Hitachi employees

8. Responsible
partnership with business
partners• Information sharing about
supplier monitoring results
among Group companies• Provide assistance forsmall and medium-sized
suppliers to improve
environmental management
systems through MMM
Club*2 activities• Disseminated within the Hitachi Groupthe results of a survey on CSR promotion
at Hitachi, Ltd.’s main suppliers, andimplemented CSR monitoring at Group
companies• Conducted educational activities for
suppliers (holding various lectures, etc.)
through MMM Club activities

PP.
84–87

• Revise the Guidelines
for Procurement Activities
and publish Hitachi Group
Supply-Chain CSR Deployment
Guidebook and implement it
among suppliers• Expand the scope ofmonitoring of suppliers: Achieved: Partially achieved*1 Materiality process: Activities, with the participation of stakeholders, to clarify the important issues influencing society and management*2 MMM Club: Organization run primarily by suppliers who have acquired environmental certification through Hitachi’s activities to support suppliers’ environmental
safety programs. The three Ms come from the first letter of mottainai in its use as an international environmental term.

Self-Assessment of CSR Activities
CSR Self-Assessment Tool
The CSR Self-Assessment Tool (“Tool”) developed in fiscal 2008, was created with the aim to
examine our position and the direction that we should be taking. With outside experts, we referredto the indices used by major SRI†1 and sustainability investor surveys, as well as global standards.
We then summarized the elements required into 47 categories and set five levels to be reached foreach category. Finally, by assembling and analyzing the results of self-assessments in eight policy
areas that correspond to Hitachi’s CSR policy, we clarified our strengths, weaknesses and where
we need to be heading, as well as the results we hope to achieve.
To ensure that all companies in the Hitachi Group use this tool, discussions were held several
times with major Hitachi Group companies during its development. Also, an application manualwas created to demonstrate the effective use of the Tool. In addition, the manual lays out scoring
criteria and explains how the Tool can be applied, depending on each individual Hitachi company’sbusiness area and scale of operations.
†1 SRI (Socially Responsible Investment): Investment activities by investment funds that assess companies fromthe viewpoint of CSR and select shares accordingly.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | CSR Promotion Activities
038

Fiscal 2008 Self-Assessment Results
By using the Tool, we found that the structures and systems required for effective CSR are mostly
in place. We also discovered areas that need improvement, including the link between CSR andthe medium-term business plan, unified information disclosure within the Group, and the sharingof and education on global standards throughout the Group.
The Tool is being applied at 22 major Hitachi Group companies, including Hitachi, Ltd., andeach company is drawing up an action plan that takes into account its industry, scale, management
strategy, and other details.
FY 2008 Self-Assessment Results (Hitachi, Ltd.)
Policy 1
Commitment to corporatesocial responsibility (CSR)
70.5%
Policy 2
Policy 8
100
Contribution to society throughResponsible partnershipour businesswith business partners
71.5%
70.0%
50
Policy 7
Working environment
77.9%
Policy 6
Corporate citizenship activities
76.5%

0

Policy 5
Environmental conservation
74.0%

Policy 3
Disclosure of informationand stakeholder engagement
75.6%
Policy 4
Corporate ethics andhuman rights
64.2%

Main topics covered in each policy of the CSR Self-Assessment Tool
Policy 1: CSR vision; CSR education; risk management
Policy 2: Coordination with business strategies; sustainable designs;customer satisfaction
Policy 3: Information disclosure; dialogue with stakeholders
Policy 4: Corporate governance structure; awareness of ethics; compliance; andhuman rights
Policy 5: Carbon management strategies; resource recycling; ecosystem conservation
Policy 6: Strategic social contribution; participation in local communities; social enlightenment
Policy 7: Respecting diversity; fulfilling work environments; work-life balance
Policy 8: CSR procurement; communication with suppliers

voicesEnhancing CSR Management
through Self-Assessment

Peter D. Pedersen
Chief Executive, E-Square Inc.

I find it extremely interesting and significant thatthe Hitachi Group has sketched out what it wants
to do as a company and has developed andadopted self-assessment tools based on its eight
CSR policies. I also think that it was excellent thateven the process of deciding on the evaluation
tools was itself carried out in participation with themain Group companies and entailed a thoroughdebate. In many cases, expanding CSR management to the group becomes an issue. It is notuncommon for this to reach an impasse because
issues within individual group companies remainunresolved. The most effective aspect of Hitachi’s
CSR self-assessment tools is the common measure for the Hitachi Group as a whole. At the sametime, it permits an evaluation that is appropriate
to the unique business characteristics of eachcompany within the Group.
I think we can expect to see in the future thateach Hitachi Group company will no longer be“evaluating for the sake of evaluating,” but will
understand the direction for improvement indicated by these tools and will come up with their own
ways to further enhance CSR management.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | CSR Promotion Activities
039

European CSR Project
In order to implement CSR activities best suited for Europe, Hitachi’s Regional Corporate Centre
in Europe launched a CSR project that looked at what the Hitachi Group as a whole—as well
as Hitachi Group businesses in Europe—must focus on, and the level of interest of stakeholders
in the region. The main themes were promoting environmental projects, encouraging diversity,
respecting human rights, and promoting CSR procurement. The project’s working group pays
close attention to trends in EU policy as it considers plans and measures for each theme. The
European Corporate Office of Hitachi, Ltd., is also participating.
The focus in fiscal 2008 was on identifying common concerns of the Hitachi Group Europe,and identifying measures which the Group as a whole could implement. While working to developthese measures from fiscal 2009, we will also emphasize communications with European
stakeholders.

A meeting on the European CSR Project

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | CSR Promotion Activities
040

Respect for Human Rights“Cherish humanity”—a global approach to respecting human rights
Human Rights Policy
Basing our corporate activities on the concept of “cherishing humanity,” we respect stakeholders’human rights throughout our business, including product safety, information disclosure,environmental conservation, and employment practices. We believe that new values are created byunderstanding and mutually recognizing the thinking and values of others. For the Hitachi Group,with our diverse businesses, our policy on human rights is a core management component that is
directly tied to our Group synergy—given that we share new values that transcend our employees’
race and gender, or the company or division they work in.
Based on this view, in February 2009, we joined the United Nations Global Compact,†1 declaring
to the international community that we are committed to enhancing our corporate activities using
the UN principles as guidelines. We will share these principles with the entire Hitachi Group, andthey will be reflected in our daily work.
The Ten Principles of the United Nations Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed humanrights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
Labour Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right tocollective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

†1 The United Nations Global Compact is an international initiative first proposed by former UN SecretaryGeneral Kofi Annan and formally launched at UN Headquarters in New York in July 2000. With the goal of
constructing a sustainable society, the Global Compact calls for companies, along with UN agencies, NPOs,
NGOs, and other civil society organizations, to follow 10 principles on human rights, labor standards, theenvironment, and anti-corruption. As of March 2009, approximately 6,700 organizations have joined.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Respect for Human Rights
041

Raising Awareness of Human Rights
Our human rights code of conduct is in our Corporate Ethics and Compliance Handbook, which
is distributed to all employees. To improve awareness of the need to consider human rights,
training is given at every level. In addition, in Europe we use cultural awareness training to deepen
understanding of the cultures, customs, and values of other countries, and to help our employees
adopt better methods of communication.
In fiscal 2008, a European working group was launched to consider human rights initiatives.
Since Europe has a diverse history, many cultures and societies, we believe that the activities there
will be instrumental in promoting human rights in the entire Group.
Regarding procurement, in fiscal 2007 we conducted a survey focusing on CSR—including
the handling of human rights—on approximately 100 of our largest suppliers, using the Japan
Electronics and Information Technology Industries Association (JEITA) guidelines. In fiscal 2008,
we analyzed the results, while in Asia, we held procurement training courses with a specific focus
on human rights for Group companies.

Procurement training course held in Malaysia

Hitachi and the United Nations Global Compact
Hitachi, Ltd. became a signatory of the United Nations Global Compact in February 2009, and weare now reviewing regulations, training, and other measures within the company.
We are carrying out surveys and supporting education on procurement based on our revised
Guidelines for Procurement and Business Transactions. To ensure that our internal code of ethics
permeates the entire Group, we are both clearly describing human rights issues and developing
and reviewing training programs.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Respect for Human Rights042Compliance and Risk Management
Raising employee awareness and understanding to strengthen compliance
Risk Management
We identify financial and nonfinancial risks assessing how the company and its business divisions
may be affected. We make basic information—including environmental, social, governance, legal
trends and know-how—available to every business and all employees. This information is sharedto prevent and treat the problems from occurring or reoccurring. In addition, we audit areas of
the business where problems have occurred in the past or where problems could occur, anddivisions in charge use the information from the audits to improve their compliance and develop an
emergency response, where appropriate.
Major Risks and Divisions in Charge
Risk

Division Responsible

Content of sales contracts and transactions withcustomers

Legal Affairs, Compliance

Worksite safety and health, labor management

Human Resources, Employee Relations

Management of the procurement process

Procurement

Information security

IT

Appropriate accounting and assets

Finance

Export management rules

Export Management

Transactions with antisocial individuals andorganizations

General Affairs (inquiry)

Environmental protection

Environment

Ensuring employee safety and business continuity
during natural disasters, political conflicts, crimes,
etc.

Risk Management

Risk Management Frameworkt*OGPSNBUJPODPOTPMJEBUJPOt4JNQMFPSHBOJ[BUJPOt%JSFDUMJOLUP
top management

Decisionmaking

1SFTJEFOU FYFDVUJWFWJDFQSFTJEFOUT FYFDVUJWFPGmDFST

3JTL.BOBHFNFOU%FQBSUNFOU
Notification(SPVQQSPEVDUJPOGBDJMJUJFTBGmMJBUFTDPNQBOJFT
3JTLSFTQPOTFNBOBHFST 
Getting the right information
to the right people
at the right time

ActionEmployees & family members (1 million)

Decision making, notification and action are conducted in that order

Code of Conduct regarding Corporate Ethics and Compliance
In February 2008, we completely revised the Business Ethics Handbook to account for recentchanges in the law, reissuing it as the Corporate Ethics and Compliance Handbook. The scope ofaction outlined in the revised handbook was approved by the Board of Directors in May 2008. It

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management043

has been distributed to all Group companies, including in Chinese and English editions. As well as
continuing to use the handbook in training and education, Group companies confirm the status oftraining and education through compliance audits.
The Corporate Ethics and Compliance Handbook Table of Contents
Sincere and Fair Business Activities• Sales Activities• Provision of Safe High-Quality Products and Services• Observance of Engineering Ethics• Procurement Activities• Respect for the Hitachi Brand
Environmental Protection
Relations with Society• Disclosure of Company Information• Use of Inside Information and Prevention of Insider Trading• Contribution to Local Communities• Relations with Politics and Government Administration• Prevention of Anti-social Transactions• Observance of Laws Governing Imports and Exports• Observance of Laws and Respect for the Culture and Customs of Each Nation and Region• Regarding Gifts, Business Entertainment, Etc.
Respect for Human Rights
Management Foundations• Management and Use of Information• Management and Preservation of Company Assets• Arranging a Work Environment That Draws Out Employee Strengths
Revised February 2008
The Corporate Ethics and Compliance Handbook Table of Contents
http://www.hitachi.com/csr/csr_images/handbook_en.pdf

Compliance Seminars in Asia
Over 150 Hitachi Group companies are operating throughout Asia (in eight countries, excluding
Japan and China). Every year, we conduct education programs on employee corporate ethics
and compliance (compliance seminars in Asia). In fiscal 2008, around 80 managers participated inseminars held in the Philippines, Thailand, Malaysia, Indonesia, Singapore, and Vietnam. In tandemwith these seminars, invited lecturers from CSR Asia—a provider of CSR education, surveys andconsulting services—held workshops on joint CSR activities with suppliers.

Compliance seminar in Asia (Malaysia)

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management044

Preventing Recurrences of Antimonopoly Law Violations
Since 2002, when we received administrative sanctions for bidding on government contracts, wehave been working hard to improve compliance awareness.
From April 1999 to July 2003 we were involved in bid rigging on a Tokyo Bureau of Seweragecontract for a pump facility. In August 2008, we were ordered to pay an administrative fine,and in November 2008 we received a business suspension order. In addition, from April 2003
to December 2005 we were found to have violated the Antimonopoly Law when bidding on anelectrical equipment construction project for a City of Sapporo sewage plant. Accordingly, in
October 2008, we received an administrative fine order and a cease and desist order, and in
March 2009 we received a business suspension order. We take these violations very seriously,
and are engaging the entire company in complying with the Antimonopoly Law. When an issue
arises, the Hitachi President and CEO will communicate with all employees, and the executive incharge will interview all the employees involved, asking them to submit a written oath to obey thelaw. In addition, we intend to strengthen compliance awareness—throughout the company—by
enforcement through our audits and training.
Violations on Bidding for Public Contracts and Initiatives for Prevention
Action (in Japan)

PeriodPunishment

Steps for prevention

Bidding on contract for electricalinstruments and construction of
mechanical facilities for the Kohoku
Water Supply Bureau’s new Tamariwaterworks

March 1999

Interference with competitive bidding.
Court ruling: Sept. 2002
Business suspension order: Oct. 2002

Established Compliance Division / carry out
audits and guidance on business activities/ thorough sales education / improved work
process / established advisory committee ofoutside members for oversight

Bidding on special pump facility
construction for Tokyo Bureau of
Sewerage

April 1999–July 2003

Violation of Antimonopoly Law.
Order for payment of fine: Aug. 2008
Business suspension order: Nov. 2008

Established a compliance division within theSocial Solutions Business Division to strengthen
training and guidance

Bidding on construction of tunnel
ventilation equipment on the Shinjuku
route of the Metropolitan Expressway,
Tokyo

2004

Violation of Antimonopoly Law.
Order for payment of fine: Sept. 2006
Business suspension order: Feb. 2007

Expanded use of notebooks for recording
compliance data,* strengthened training andauditsBidding on a City of Sapporo contractfor electrical equipment construction
related to a sewage disposal facility

April 2003–Dec. 2005

Violation of Antimonopoly Law
Order for payment of fineCease and desist order: Oct. 2008
Business suspension order: March 2009

Interviews conducted by executives of all sales
employees involved / request for signed pledges/ additional expansion of training and audits* In these notebooks employees keep a record by themselves that they avoided situations that would have been illegal or that they suspected may have been illegal.

We will observe the Antimonopoly Law (Japan) and the foreign competition laws
In accordance with the concerned laws and the Hitachi Code Standards of Corporate Conduct, we willobserve the Antimonopoly Law as a matter of course and act under the basic principles of “conduct inaccordance with the law and with the correct corporate ethicsact according to the rule of law and ethicalcorporate rectitude” and “fair and orderly competition.”
Quoting from the Corporate Ethics and Compliance Handbook

Expert Opinion on Hitachi’s CSR Activities and Hitachi’s Response
Third-Party Expert Opinion—A Constant Effort to Observe the Laws
I believe that Hitachi, Ltd. and the Hitachi Group are in the vanguard of compliance. For example,
their understanding of the risks and their responses, their Corporate Ethics and ComplianceHandbook, setting up a Compliance Division, and creating an internal whistle-blower system show
a very solid approach to the issue. Many of these measures were in response to past incidents
or problems, but whenever those issues arose, they dealt with them head on. I feel that thesemeasures reflect the lessons they have learned.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management045However, it is a shame that incidents and issues have continued, even recently, suggesting thatcompliance is never ending and that observing laws and regulations requires a constant effort. I
think that even stronger, steadier action is needed to improve compliance awareness through daily
monitoring, regular training, and other means.
I look forward to seeing how Hitachi further improves compliance.

Hideaki Kobayashi
Attorney
Kobayashi & Associates Law OfficeHitachi’s Response—Enhancing the Environment for Compliance
It is extremely regrettable that, even recently, incidents and issues have arisen that have caused
concern. As Mr. Kobayashi points out, we hope to use what we have learned from the past as
we think about future measures. In particular, in order to respond to his indication that we must
make a constant effort, we would like to systematically set the time and points at which we should
reconfirm and reinforce our corporate ethics and compliance, and I hope to follow up on that.
In addition, we are trying to further improve our response to each type of risk and aresystematically working to discover new risks and understand the risks throughout the entire Group.
At the same time, we are devising ways to enhance the environment for compliance through suchmeans as fostering the kind of legal mind that can constantly sense problems, and creating asystem to check for risk.

Toshiaki Kuzuoka
Vice President and Executive Officer in Charge of Legal & Corporate Communications,
Corporate Brand Management, and Management Audit Hitachi, Ltd.

Global Push to Stop Corruption
Controls on bribery by Japanese corporations abroad have been tightened, and more cases arebeing exposed through the U.S. Foreign Corrupt Practices Act. In August 2008, we created internal
regulations for preventing corruption of public officials and others within and outside Japan. We
also implemented detailed guidelines on entertaining and exchanging gifts. Every Group company
set up similar regulations. In October 2008, an independent lawyer from the U.S. was invited topresent on anticorruption policies, and 212 employees in charge of promoting compliance in Group
companies attended. We will further bolster our policies through audits and training.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management046

Lecture on global compliancevoicesPreventing Corruption througha High Standard of Corporate Regulations

Richard Dean
Attorney,Baker & McKenzie LLP

In recent years, corruption has been increasing,
especially in developing countries, and it has
been defined as a crime in international conventions established by the United Nations, theOECD, and others.
Corruption wastes enormous resources,
undermines the proper functioning of markets,and destroys confidence in legal systems. Thereis also evidence that corruption impacts national
security interests.
The Hitachi Group is doing its part by providing training and monitoring systems to ensurecompliance awareness, and by setting high standards for its employees in the areas of integrity,business conduct, and ethics.
The Hitachi Group has taken decisive steps
to meet the challenge of global corruption, whichis receiving increased attention from political andbusiness leaders, as well as from law enforcement agencies. The anticorruption regulations
that Hitachi enacted in 2008 are being extended
to Hitachi Group companies on a global basis,and Hitachi is playing a leading role among major
Japanese corporations in the fight against corruption.

Compliance Reporting System
To prevent illegal or unethical behavior, to promptly address infractions, and to enhance the ability
to self-regulate, we have instituted a company-wide Compliance Reporting system. Employees
can now report directly to the division responsible at Hitachi (Compliance Division) or to an outside
attorney. This system can be used not only by Hitachi Group employees and former employees, but

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management047

also by suppliers and temporary staff. Another system—Channel to the Board of Directors—has
been introduced to allow employees to report problems anonymously straight to the directors.
Report Processing Flow
1 . Reporting

Individuals who
submit reports

2 . Investigation initiation noticeCompliance Divisionor outside attorney

3 . Feedback on investigation findings

Protecting Personal Information and Information Security
The Hitachi Group emphasizes two points in policies to protect personal information andinformation security:(1) Precautionary measures and prompt security responses
Hitachi clearly classifies information assets to be protected and takes safeguarding measures based on
vulnerability and risk analysis. We also have an emergency manual for security breaches, based on theassumption that these are inevitable, not just possible.
(2) Promotion of stronger ethical and security awareness among data users
Hitachi has prepared a curriculum tailored to various personnel levels—staff, managers, etc.—and is
working to raise the prevailing sense of ethics and security awareness through Group-wide education usinge-learning. We are also working on the use of audits to identify and address problems early on.

Basic Approach to Information Security Governance
Clearly designate assets to be protected• Sort through information assets and conduct risk analysis

Raise user literacy• Educate managers and staff• Enforce rigorous use of checklists

Information
assetsto be protected

Put in place preventive measures• Apply IT to leak prevention• Apply rigorous managerial measures

Establish information security system• Put in place managerial framework (appointment of ofﬁcer in charge of information security, etc.)• Establish system for reporting breaches

Protecting Personal Information
Hitachi has established a personal information protection management system based on our
Personal Information Protection Policy. With this system, we take effective measures and improve
the protection and handling of personal information through e-learning courses for all employees
and periodic audits.
In February 2009, we renewed the Privacy Mark†1 certifications earned in February 2007. Asof March 2009, 62 Hitachi Group companies have received Privacy Mark certifications. Odaira
Memorial Tokyo Hitachi Hospital, which earned Privacy Mark certification in July 2007, will renew
this certification, and other Hitachi-affiliated hospitals are expected to receive this certification in
fiscal 2009.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management048

†1 Privacy Mark: Certification awarded by the Japan Information Processing Development Corporation (JIPDEC)
to companies and organizations recognized for properly managing personal information

Privacy Mark

Personal Information Protection Policy
http://www.hitachi.com/privacy-e/index.html

Efforts regarding Information Security
The rapid spread of digital information and computer networks has made information security
crucial for businesses that keep the public’s trust. We are constantly working to prevent security
breaches by applying the Three Rules for Preventing Leakage of Confidential Information. Using thissystem to minimize damage in the event of a breach, we promptly contact customers, report to thegovernment agency responsible, investigate the cause, and take steps to prevent a reoccurrence.
Measures are taken to prevent unauthorized information disclosure throughout the Group.
These measures include: encryption software Hibun; security PCs that do not save data;
document access control and data revocation software Katsubun; as well as filtering systems forunauthorized or malicious e-mail and/or Web sites.
In line with the Global Information Security Administration Standards, Group companies
outside Japan are also making every effort to strengthen information security.
Three Rules for Preventing Leakage of Confidential Information
Rule 1.
In principle, confidential information cannot be taken from the workplace.
Rule 2.
Permission must be obtained from an immediate supervisor to take any confidential information from theworkplace.
Rule 3.
Security precautions should always be taken when storing confidential data on a laptop computer, external
storage device, etc., and when taking such a device out of the workplace.

Export Control
For basic export control, we use the Hitachi Standards of Corporate Conduct, which states that
we “shall help maintain international peace and security through compliance with trade laws andregulations.” We adopted rules for controlling security exports based on this policy in 1987, and wecontinue to strive for the strictest possible export controls. This means investigating the destination,
application, and buyers of all goods and technologies intended for export and promoting all legal
compliance.
In addition, we are promoting Group-wide export controls by providing guidance to all HitachiGroup companies on rules and a framework for export control, as well as supporting education

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management049

and training to ensure that everyone follows the same policies and practices for export control. We
also instruct all Hitachi Group companies outside Japan to comply with all applicable laws andregulations, including local export controls.

Respect for Intellectual Property
Our basic policy on intellectual property rights (IPR) is that they are essential. We respect the
intellectual property rights of other companies, just as we expect them to respect ours. To becertain of honoring other companies’ IPR, we work hard to avoid patent infringements during
product development, stipulating in Group regulations that preliminary surveys must be carriedout to determine the coverage of other companies’ patents. Before using another company’s
intellectual property, we negotiate and obtain a license.
For our own intellectual property, we provide licenses to businesses wishing to make use of
these assets, operating on the principle of compensated sharing. If another business is found tohave violated our IPR, we encourage that business to acquire the necessary licensing, and we willtake legal action, if necessary.
We are also taking aggressive steps to stamp out counterfeit goods around the world,
including those from China and other parts of East Asia, the Middle East, and Africa. We workwith local authorities to protect the Hitachi brand by uncovering violations of business, trademarks,
Web sites, and domain names, as well as other intellectual assets. Through these measures, weearn the confidence of markets, consumers, and government agencies, maintain order in markets
where our products circulate, and protect consumer trust in the Hitachi brand.

Business Continuity Plans (BCP†2)
Major natural disasters, epidemics, terrorist attacks, and other risks occurring throughout the world
cannot be ignored by corporations doing business on a global scale. To guard against these risks,and being deeply committed to the social infrastructure, we are enhancing our BCPs to minimize
the impact on society of any interruption to business operations.
Formulation of Novel Influenza Action Plan and BCPs
Since December 2006, the Hitachi Group has disseminated the Guidelines for Formulation of BCPs
to all Group companies in preparation for risks such as major natural disasters. In April 2008, as aprecaution against novel strains of influenza that have given rise to fears of a pandemic†3 in recent
years, we set up a special organization called the Risk Management Headquarters, headed by the
President. In the event of a pandemic, the Risk Management Headquarters will take the lead in
securing the safety of all Hitachi Group employees and their families and measures will be taken to
ensure that operations essential for maintaining social functions, such as medical services, public
security, and lifelines, are continued without interruption.
As part of these preparations, Hitachi formulated the Guidelines for Pandemic Influenza
Preparedness in June 2009 and distributed them to all Group companies. These guidelines
incorporate the specific criteria for action in the event of a pandemic and the pilot BCPs regarding
the maintenance of power plants, financial services, and elevators to ensure the continuity ofessential social functions.
Based on the Guidelines for Formulation of BCPs and the Guidelines for Pandemic Influenza
Preparedness, all Hitachi Group companies are formulating BCPs in accordance with their various
operations so that they are fully prepared for emergencies.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management050

Guidelines for Pandemic Influenza Preparedness

Table Top Exercise to Prepare for Large-Scale DisasterIn February 2009, six major Group service companies†4 held a table top exercise based on anearthquake in Tokyo. These six companies provide essential products and services, including
water and sewage equipment, elevators, computers, electrical machinery, and consumer
electronics. Strengthening cooperation among these companies, this exercise underscored theneed to quickly restore the infrastructure, such as the machinery and equipment that would bedamaged by a major earthquake. The roughly 100 employees who participated took requests
for assistance, provided information, and came up with responses. Through this emergency
simulation, they learned to make decisions calmly and to act quickly.
Disaster simulation exercises have been held annually since 1998, so far at 17 sites throughout
Japan. As well, we use a satellite communications system, and a function check of the system has
also been done every month.

The disaster simulation exercise†2 Business Continuity Plan (BCP): A plan for ensuring the continuation of core operations and prompt restoringof operations to normal in the event of a disaster or accident†3 Pandemic: The rapid spread of an infectious disease throughout the world†4 Hitachi Appliances, Inc.; Hitachi Engineering and Services Co., Ltd.; Hitachi Industrial Equipment Systems
Co., Ltd.; Hitachi Electronics Services Co., Ltd.; Hitachi Building Systems Co., Ltd.; and Hitachi Consumer
Marketing, Inc.

Hitachi Group Corporate Social Responsibility Report 2009 | CSR Management | Compliance and Risk Management051

Hitachi: Living Together with Society
Working with customers, suppliers, employees,
and local communities, our products and corporate activities
help to create a better quality of life and a happy society

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society052

Improving Monozukuri and Service
Protecting our tradition of Monozukuri craftsmanshipwhile improving product and service quality worldwide
Ensuring Product and Service Quality
Since we began, our tradition of monozukuri craftsmanship has placed top priority on quality first.
Using the slogan, providing customers with the highest quality products and services, our wholeGroup is immersed in quality assurance (QA)—from product planning and delivery to after-sales
service. We are now focused on improving the quality of products and services made outside
Japan, especially in China and the rest of Asia.
Quality Assurance Flow Chart
Product Manufacturing Process
Market trends

Product planning

Design review

DesignPrototype evaluation/approval
Purchased goods

Management of purchased goods

Manufacturing*OMJOFRVBMJUZDPOUSPM 2$

Inspection

Improving inspection techniques

Shipment/delivery

Feedback to each activity

Customers’ needs

Quality Assurance Activities$PMMFDUJOHmFMEEBUB
BOEBGUFSTBMFTTFSWJDFT

Customers

Activities Supporting Quality Assurance
Human resourcest1FOFUSBUJPOPGOCHIBO HIROI spiritt*NQSPWFNFOUPGUFDIOJDJBOT
ethical awarenesstEducation on quality and reliabilityt*NQSPWFNFOUPGRVBMJUZmSTU
awareness...

Technologiest2VBMJUZSFMJBCJMJUZDPNNJUUFFtProduct safetytObservance of technicalregulationstAssessment of quality
management...

Organization & control
t$POUSPMPGEFGFDUJWFQSPEVDU
accidentst2VBMJUZmSTUDPOUSPMTZTUFNtOCHIBO HIROI (gleaning)t1SPEVDURVBMJUZJNQSPWFNFOU...

* In-line QC: Review and verification for identifying potential defects at development and prototype stages of product lifecycle

Strengthening Our Quality Assurance (QA) System in China
In China, Hitachi has about 80 subsidiaries, with a diverse array of products and services, working
to train human resources and improve product quality. To add value and boost local production,
we set up the Shanghai Product Quality Assurance Center in February 2007 to improve quality
and create a unified QA system. Every year, the center holds the Conference for QA Managers at
Hitachi Group Companies for quality awareness and to encourage information sharing. Also, toprovide quality guidance, tough measures are being taken on approval systems for suppliers andother partners.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Improving Monozukuri and Service053

Conference for Quality Assurance Managers at Hitachi Group Companies (China)

OCHIBO HIROI: Human Resources / Organization & Control
OCHIBO HIROI (gleaning) is Hitachi’s program for adopting the customer’s perspective whenreflecting on past accidents and working to prevent reoccurrences. Started in 1951 as a council
at the highest levels of company management for reviewing serious accidents, the credo of thisprogram is “the spirit of OCHIBO HIROI is customer satisfaction” and “don’t put a lid on mistakes
or problems.” The direct technical and motivational causes leading up to accidents are thoroughly
investigated to ensure that there is no future reoccurrence. Similar products are also examined toprevent the same kind of accident.
Employee Training to Improve Quality and Reliability: Human Resources
At the Hitachi Group, we develop courses tailored to every technical and skill level for divisions
involved with design and quality assurance, including “Reliability: Fundamentals and Applications,”“Product Safety,” and “Engineering Ethics.” Our “Engineering Ethics” course introduces managers
to the views of experts and reviews examples of applied ethics. As well, discussions are held on
real-life workplace issues, recognizing that it is vital for every engineer to think and act ethically as
an individual. More than 50,000 employees have taken our general e-learning course “Introduction
to Engineering Ethics.”
Individual production facilities have also been implementing their own employee training
programs for specialized skills. At our Hitachi Works, for example, we have set up a training center
to upgrade manufacturing, inspection, and maintenance skills and also provide young quality
assurance employees with practical training in QC seven tools.†1 As well, lectures are given byexperts on such topics as Attitude for Quality Assurance Personnel.
†1 QC (quality control) seven tools: Seven statistical methods needed to pursue quality control: (1) pareto
diagram, (2) cause-and-effect diagram, (3) histogram, (4) checklist, (5) scatter diagram, (6) control chart, and(7) stratification (grouping of data by common factors)

QC training

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Improving Monozukuri and Service054

Improving Product Safety: Technologies
The Hitachi Group is dedicated to providing safe products and services by combining wide-ranging
expertise with technologies covering planning, research, design, manufacturing, quality assurance
and maintenance.
When developing products, our top design and verification priority is the safety of life, healthand property. For example, we design consumer electronics with safety mechanisms to prevent,if a component fails, serious injury due to fire or electric shock. We also do forced ignition testing
to confirm product safety in the unlikely event that a product catches on fire, and take othersteps to ensure thorough safety precautions. Risk assessments are done based on broad-based
cooperation among Hitachi divisions and research laboratories.
Promoting Compliance with Technical Laws: Technologies
Amid widespread concern over product liability and the environment, laws that companies mustobserve regarding products have become increasingly complex. In view of this situation, we
actively promote compliance with technical laws for monozukuri. In addition, we have established
a compliance management system for production facilities based on three core themes: clarifying
the laws corresponding to products; refining the monozukuri compliance processes†2 which
ensure products reflect legal and product regulation requirements; and raising overall complianceawareness. We also support compliance activities such as the development of a “legal map,”
keeping track of and sharing information on legal amendments, and applying compliancediagnoses. In fiscal 2008, diagnoses were conducted at the 20 main divisions through selfevaluation and mutual division evaluation based on our own compliance guidelines. From now on,
we will implement mutual evaluations based on new compliance guidelines in accordance with the2008 edition of ISO 9001 standards.
†2 Monozukuri compliance processes: Work processes to ensure the compliance of each monozukuri phase
based on ISO 9001 standards.

Hitachi-Quality Monozukuri through Improved Work Processes: Technologies
To provide excellent products and services, it is necessary to improve the quality of individual work
processes, such as planning, design, and manufacturing. For this reason, we constantly apply
and continually improve the PDCA†3 cycle during each process. At the Hitachi Group, we use thein-house developed Hitachi Evaluation System for Quality Management.
Through this system, the extent to which a project is following set processes and whether there
are problems with those processes can be determined quantitatively. This makes it possible to use
data on successful cases at other divisions stored within the system, and to deal with the problems
that are uncovered. For business divisions requiring considerable improvement, a specialist teamevaluates the quality of processes and focuses on eliminating weak points. As of March 2009, thissystem was being used at 45 divisions of Hitachi and 21 Hitachi Group companies. To promote its
wider use among Group companies from fiscal 2009 onwards, we plan to improve the system’s
accuracy of evaluation and ease of use.
†3 PDCA (plan-do-check-act): Operating an organization taking these four steps as a single process.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Improving Monozukuri and Service055

Hitachi Evaluation System for Quality Management
Division

Framework( Work rules )Product development projectWork process
Plan Specifications Design Procurement Manufacture

Product

Implementation( Compliance with rules )Evaluation( Based on ISO 9001)

Improvement

Application of best practices
to other production facilities
Hitachi evaluation
system for quality
management system

Accumulation of best practices

Best practices

Response in Case of Product Malfunction or Damage: Organization & Control
If any of our products malfunction, we work to minimize adverse effects for consumers, mobilizing
all divisions affected to mount a rapid response. In serious cases, we assess the scope ofdamage and thoroughly investigate the cause of the accident. We then submit a status report
to top management within 24 hours of the incident. Therefore, we strive to implement a quick,appropriate response, while simultaneously sending timely reports to the Ministry of Economy,
Trade and Industry (METI) and publishing information about the incident on our Web site.
If necessary, we recall a product over concern about possible malfunctions or accident,
then we make a public announcement through newspaper advertisements and/or Web siteannouncements to inform consumers about repairs or exchanges.

Response Flow in the Event of Product Malfunction
Obtaining information

Quality Assurance Division

Customer liaison

Fire department, police department

Company officers

Ministry of Economy,
Trade and Industry

Confirming
accident status
Investigative committee on
serious product accidents

Flow of information

ReportOnsiteinvestigation
Product
investigation

Investigation ofdamage scope

Decision concerning
serious product accident

Product recall
Serious productaccident

Disposition and reporting

Investigation of
cause

Customer

Accident
occurs

Sharing of information

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Improving Monozukuri and Service
056

Newspapers
Web site
Notification

topics
Providing High-Quality Elevators
for the World’s Highest Observatory
In October 2008, the Shanghai World Financial
Center opened in the Pudong District of Shanghai,
China. Featuring an observatory at 474 meters,*
this soaring tower uses Hitachi elevators. The
setting required elevators that could safely andefficiently lift large numbers of people quickly andcomfortably to the tower’s upper floors. To answer
this need, Hitachi’s Mito Design & Production
Division, research laboratories and Group
companies worked together to develop vibrationdampening devices, as well as high-output,
high-performance traction machines and control
systems, and other innovations that enhance both
comfort, energy efficiency, and safety. To increase
capacity, a double-deck design was adopted,
making it possible to transport 48 passengers
at a time. In this way, Hitachi elevators are usedevery day by many people, providing support forthis popular landmark.

Shanghai World Financial Center

Double-deck elevator* Highest in the world in October 2008

Noboru Arahori
Division Manager, Mito Design & Production Div., Urban
Planning and Development Systems, Hitachi, Ltd.

Building Customer Feedback into Our Products
We made our Customer Satisfaction (CS) Management Guidelines one of the pillars of Hitachi’sbusiness management, and we continue to improve CS with the goal of “creating innovation
through collaboration with customers.” We use CS surveys tailored to each business operation. In
addition, we analyze customer opinions submitted to the Hitachi Customer Answer Center.
Customer Satisfaction Management Guidelines• Our customers determine the value of products and services• Information from our customers is the source of improvement• Offer prices and quality that are competitive• Respond rapidly to keep our promises to our customers• Adopt systems that prevent accidents and minimize their impact
Formulated in 1994

Web Site Customer Support
We established customer support on Hitachi’s corporate Web site. From here, we are able toprocess information (customer inquiries, opinions, requests, complaints) and use it to improve
products and services, through cooperation with customer support of relevant Hitachi Group
companies. We will maintain and improve our Web site as an important point of contact, committing

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Improving Monozukuri and Service057

to timely, reliable and more accurate responses to customers while strengthening collaboration
among Hitachi Group companies.
Breakdown of Inquiries Received from Hitachi Web Site Customer Support
Complaints
Product inquiries
from corporations
33%

Product inquiries Inquiries concerningfrom consumers corporate activities*
29%

24%

10%

Opinions and requests
3%
Other
1%

January through December 2008
* Managerial policy, television commercials,
requests for donations and support, Web site, etc.

CS Activities of the Information and Telecommunications Systems Group
Using the concept of uVALUE,†4 the Information and Telecommunications Systems Groupis working to bring about a people- and community-friendly intellectually creative society by“collaborating to create the best value for our customers.” This is based on the perspective of
our customers, who evaluate our products and services through annual customer surveys. These
questionnaire surveys provide us with customers’ opinions not only on Hitachi’s products, services
and activities, but also on the vision and concepts of the Information and Telecommunications
Systems Group and the policies on which the Hitachi Group is focusing. Furthermore, we are
analyzing and evaluating the results, and are incorporating them into our CS activities to ensure that“collaborative creation,” one of the Hitachi Group’s management policies, is useful to customers
and that they choose Hitachi as their partner. For the fiscal 2008 customer survey, as in fiscal
2007, we obtained customer understanding and cooperation for giving—in an amount equivalent
to the compensation that would have gone to survey respondents—a donation to the non-profit
organization Good Earth Japan.†5†4 uVALUE is an operational concept that combines the Hitachi Group’s diverse business activities with IT.
This approach—working toward the realization of a richer society—is intended to create value in a society
characterized by ubiquitous IT.
†5 Good Earth Japan was established in March 2007 to support the independence of local residents in areas
where landmines have been removed. In fiscal 2008, it established an elementary school in a Cambodian
village that had been cleared of landmines, and implemented the Good Earth Japan Cambodia Study Tour.
CS Efforts in the Information and Telecommunications Systems Group

Correct incorporation intouVALUE-based operations

Employee attitude survey

Achievinga higher order of CS

Employee self-evaluation

Requests/demands

Suggestions/complaints

Society, customers
Collaboration to create value

Synthesis of survey results

Customer questionnaires

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Improving Monozukuri and Service058

CS Activities for Home Appliances
Hitachi receives various opinions, including questions and complaints, from customers regarding
home appliances, such as plasma TVs and washing machines, via the Hitachi Customer Answer
Center and a Web site. Hitachi Appliances, Inc., which handles Hitachi’s home appliance business,has developed a system for using these customers’ concerns in the development of new products
and services. In particular, the Hitachi Customer Answer Center receives more than 600,000 phone
calls and e-mails a year. Apart from cases where it is necessary to confirm the product used by
the customer and the conditions of use, customer service employees respond to all telephone
calls and e-mails on the spot. All communications from customers on product selection, repairs,
questions, and complaints are kept in computer files as “customers’ voices” and can be searched
and indexed as needed. In addition, consumer questionnaires are conducted on products, andthe opinions received are used in the design of new products and services.
Voice of Customer Flow Chart
Repair request

Information on after-sales services

Individual business groups
Quality assurance department

Feedback on improvements

Information sharing

Customers

Response

Service
Information
CenterDesign department
Inquiry
Response

Customer
SupportCenter: Response activities

Information sharing
Filed in database: Flow of information

Feedback

Manufacturing department: Sharing of information

How Customers’ Voices Are Reflected in Hitachi Appliances, Inc.
In products and services

E-wave (intranet)

Checking customer information on new products and complaints
reported from various sections of the company and using thisinformation for product planning and service improvement.

Voice of Customer Solution (VCS) Meetings

Regular discussion meetings to respond to customer dissatisfaction.
Chaired by the president and attended by the heads of business groups
and executives responsible for design, manufacturing technology, andquality assurance, the meetings are held four times a year.

In creating easy-to-use products

Lifestyle Research Center

Ease-of-use and design of prototypes and production models aretested by consumers, and the information is used in creating future
products.

In developing human resources

CS Dojo (training for improving customer
satisfaction)

Employees are given an opportunity to directly hear the voices ofconsumers. For example, designers go to the Hitachi Customer Answer
Center to listen to the voices of customers, and then incorporate theirperspective into new designs.

Universal Design
The Hitachi Group’s Approach to Universal Design
The Hitachi Group is involved in society and people’s lives in a variety of fields and activities. We
believe Universal Design (UD) is one of our corporate social responsibilities for improving quality ofuse, accessibility, and product life span. UD is an approach that we believe can make products
and services easy to use for everyone, regardless of age or ability.
Hitachi, Ltd., a founding member of the International Association for Universal Design,†6 iscommitted to creating a society where more people can live with peace of mind. The Hitachi
Escalator VX Series was awarded the Chairman’s Special Prize at the Kids Design Award 2008,
sponsored by the Kids Design Association.†7 Five Hitachi products and services, including our“power-assisted walking support system,” were recognized with awards.

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Quality of use means product quality that makes the user feel easy and pleasant to use theproduct. Accessibility is an index of how many people can use the product or service. Life spanrefers to all the stages of the product from before purchase to disposal.
†6 International Association for Universal Design: Founded in 2003, the International Association for Universal
Design is dedicated to the healthy development of society and the enhancement of people’s lives throughthe dissemination and application of UD.
†7 Kids Design Association: Founded in 2006, the Kids Design Association was started by companies andother organizations in Japan dedicated to creating and disseminating designs that promote the safe, secureand healthy development and growth of children.
The Hitachi Group’s Approach to UD

AccessibilityLife Span

By developing and providing
products that more people canuse, we seek to strengthen
every customer’s bond withsociety and lead them to thenext society.

We work to maintain connections with customers in many
ways—throughout the life spanof our product or service—by
providing information throughsales and after-sales support.

Quality of Use
We seek to provide products
and services that are easy tounderstand, easy to use, andthat create a sense of highvalue for all customers.

The Product Development Cycle and UD Guidelines
Through this fundamental approach, the Hitachi Group pursues an “upward spiraling” productdevelopment cycle—basic research, formulation of guidelines, and product development—involving
a network of users and experts at every stage of product development. Based on research into
the characteristics of user behavior and recognition, the requirements of products are formulated
as guidelines and reflected in product development. The information obtained during productdevelopment is entered in a database and shared throughout the Hitachi Group. Information is
also distributed outside the company to promote standardization and educational activities.
Basic research

Human network
Product development

Database

Guidelines

Transmissionof informationand educational
activities

Product development cycle and UD Guidelines

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UD Concepts and Examples in Each Product Field
Those in charge of products formulate UD concepts in each field and develop products andservices based on these concepts, sharing them with development staff. Monozukuri is promoted,
taking into account a wide range of users, including the aged, people with disabilities, children,and foreigners.
UD Concepts and Examples of Digital Home Appliances
Since we view customers as users from the moment they take an interest in a product, we see
it as essential to consider every aspect of quality from pre-purchase to disposal of products,
including ease of use, useful functions, environmental impact, safety, and maintenance. We also
make products that match users’ physical and mental condition and lifestyles so that they become
strongly attached to them. Examples of these products are refrigerators with easy-to-use shelves,and freezer and vegetable compartment doors that open with electric power, and washingmachines equipped with “teaching buttons” that provide verbal (voice) instructions not just on thevarious washing menues but also operating status and solutions to problems.
UD Concepts and Examples of Public Equipment and Systems
Public equipment and systems must be designed so that all people, including children, canuse them. Since they are to be used in public spaces, it is also necessary to consider morecharacteristics than usability, such as security, privacy, and safety. For example, escalators
must not only be easy to get on and off but they require safety features that take all users into
consideration, such as multi-sensors which give users verbal (voice) warnings if they lean too far
over the handrail. At the Second Kids Design Awards held in 2008 by the Kids Design Association,
Hitachi’s VX-series escalators won the Chairman’s Special Award, and four other Hitachi products
and activities, including our Active Walking Support System, received awards.
UD Concepts and Examples of Web and Information Systems
Since the Internet is used for communications, to retrieve information, and is a highly valued tool forthe disabled, it must be easy to access, easy to use, and be highly secure. For these reasons, we
provide software for viewing our Web sites that can be used like a TV remote control. The software
also has features geared to users’ individual needs, such as easy adjustment of the size and colorof text and images, phonetic reading of Chinese characters, and text-to-speech conversion.

Easy-to-use refrigerators

Washing machineswith verbal (voice) instructions

Escalators taking into
account children’ s safety

Web site viewing software
geared to various users

Products based on UD concepts

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Communication with Shareholders
and Investors
To ensure that shareholders and investors can make sound investment decisions,
we provide the information they need in a fair and appropriate way
and strive to enhance communication with them

Policy on Information Disclosure
Hitachi, Ltd. communicates with shareholders and investors in accordance with the disclosure
policy. We disclose not only information required by laws or regulations, but also informationthat promotes deeper stakeholder understanding of Hitachi management policies and businessactivities.
Disclosure Policy
1. Basic Policy
Hitachi’s corporate credo is to contribute to society through the development of superior, originaltechnology and products. With this in mind, Hitachi seeks to maintain and develop trust relationships withall stakeholders, including shareholders and other investors, customers, business partners, employees andregional communities. We will fulfill our responsibility to stakeholders by disclosing information in a fair andhighly transparent manner, and by conducting various communication activities.
2. Information Disclosure Standards
Hitachi discloses information as appropriate in a fair and highly transparent way, in compliance with the laws
and regulations of the stock exchanges on which the Company is listed.
Hitachi discloses not only information required by laws and regulations, but also management
and financial information that is regarded as useful in deepening stakeholder understanding of Hitachi
management policy and business activities. Hitachi also discloses non-financial information on the socialand environmental impact of Hitachi Group activities. Hitachi’s stance on disclosure recognizes that society
regards the above information as important.
3. Disclosure Methods
Hitachi uses appropriate means to disclose the information required by laws and regulations of the stock
exchanges on which the Company is listed. The Company also posts this information on Web sites
immediately after it is disclosed.
Hitachi also discloses information not required by laws and regulations by distributing news releases,
holding press conferences and presentations, posting information on Web sites, and conducting otherdisclosure activities in an appropriate, precise and timely manner.
4. Quiet Period
Hitachi stipulates a quiet period of a certain length prior to earnings announcements to prevent information
leaks and to maintain disclosure fairness. During this period, Hitachi refrains from answering inquiries aboutbusiness performance and related matters.
5. Forward-looking Statements
For disclosures, Hitachi may make statements that constitute forward-looking statements that reflect
management’s views with respect to certain future events and financial performance at the time of disclosure
and include any statement that does not directly relate to any historical or current fact. Such statements are
based on information available at the time of disclosure and are subject to various risks and uncertainties.
Certain forward-looking statements are based upon assumptions of future events which may not prove
to be accurate. Hitachi discloses the factors that could cause actual results to differ materially from thoseprojected or implied in forward-looking statements.

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Proactive IR Approach
Hitachi conducts a wide range of IR activities including business strategy meetings for institutional
investors and analysts, tours of production and R&D facilities, participation in investor meetingssponsored by securities companies, and one-on-one meetings with institutional investors andanalysts.
In fiscal 2008, in addition to the financial information meetings for each fiscal quarter, we
held three business strategy meetings on information and telecommunication systems, hard disk
drives, and research and development. In May 2008, then-president, Kazuo Furukawa, held aprogress report meeting on “collaborative creation and profits,” an important aspect of Hitachi’s
management policy.
Our management executives held more than 60 meetings with institutional investors andanalysts in and outside Japan, including two visits to investors in the United States and Europe.
Also, IR divisions in Japan and overseas held one-on-one meetings with over 400 investors andanalysts during the year. We are making every effort to communicate back within the Group theopinions that institutional investors and analysts voiced at these meetings and to ensure that theiropinions are reflected in management and business policies.
In addition, we continue to disclose information in a timely manner, for example, by postingmaterials of various explanation meetings on the Web site that provides information for shareholders
and investors. On our Web site for individual investors, we also provide information that promotesa deeper understanding of the Hitachi Group.

Business strategy meeting on the hard disk drive business

Publications Providing Business Information• Financial Statements				• Financial Reports				• Annual Reports 					• R&D and Intellectual Property Report 		• Business Reports• Financial Highlights (main financial data)• Hitachi Group CSR Reports• Form 20-F filed with the U.S. SEC

General Meeting of Shareholders
At the ordinary general meeting of shareholders, we offer audio-visual reports designed to give
shareholders a thorough understanding of our situation. The president and chief executive officer
reports on management subjects, and some of this information is then posted on the Web site forshareholders and investors following the meeting. To ensure that shareholders and investors areable to study financial proposals in advance, in addition to sending written notices of the conveningof meetings, this information is also posted on the Web site.

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Investors
http://www.hitachi.com/IR-e/index.html

Trends in Shareholder Composition
Financial institutions& securities firms

Individuals

Foreign investors

March 2007

27.63

28.09

40.49

March 2008

27.16

27.06

42.10

March 2009

Other institutions
3.79
National &local governments
0.00
3.68
0.00

4.03
0.00
30.60

30.24

35.13
(Unit: %)Basic Policy for Prevention of Takeovers
We invest considerable management resources in basic research for the future and for thedevelopment of pioneering products and businesses. To ensure that these management measuresbear fruit, it is necessary to maintain the continuity of management policies over a certain periodof time. To this end, we keep shareholders and investors informed not only about management
results for each term but also management measures looking ahead to the future.
We do not deny the significance of stimulating corporate activities or the economy through thetransfer of management control rights. However, regarding large purchases of Hitachi and HitachiGroup companies’ shares, it is necessary to cautiously assess the impact that such a purchaseor purchase proposal would have on our corporate value and shareholders’ joint profits, basedon considerations such as the purchaser’s business profile, future plans, and past investment
behavior.
At present there is no imminent concern that any particular party will acquire a large
amount of Hitachi’s shares, and we have not established any special measures (anti-takeovermeasures), should such a purchaser appear. Nevertheless, as a natural duty to our shareholders
and investors, we constantly monitor Hitachi share transactions and movements, and if a party
appears attempting to purchase large amounts of shares, we will immediately take the measuresconsidered appropriate. Specifically, this will mean assessing the purchase proposal with theassistance of external experts, as well as negotiating with the purchaser. In addition, when suchan acquisition does not contribute to our corporate value and the joint profits of shareholders,we will promptly determine the need for and contents of specific countermeasures, and set up aframework for their implementation. A similar response will be made in the event of any attempt topurchase large amounts of the shares of any Hitachi Group company.

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Results of External SRI†1 Assessments in Fiscal 2008
Institution

Index

Companies selected

DJSI*1 Asia Pacific Index

Hitachi, Ltd. / Hitachi Chemical Co., Ltd.

DJSI Asia Pacific 40 Index

Hitachi, Ltd.

EIRISFTSE4Good Global Index*2

Hitachi Chemical Co., Ltd. / Hitachi Capital Corp. / Hitachi Metals, Ltd. /Hitachi Software Engineering Co., Ltd. / Hitachi High-Technologies Corp. /Hitachi Maxell, Ltd.

Morningstar

SRI Index

Hitachi, Ltd. / Hitachi Chemical Co., Ltd. / Hitachi Construction MachineryCo., Ltd. / Hitachi Information Systems, Ltd. / Hitachi High-Technologies
Corp. / Hitachi Transport System, Ltd.

SAM

*1 DJSI (Dow Jones Sustainability Index): A global SRI index that was developed by Dow Jones & Company (U.S.A.) and Sustainable Asset Management (SAM) Group(Switzerland). The Asia Pacific Index—covering Japan, Asia, and Australia—was launched in 2008.
*2 FTSE4Good Global Index: An index developed in the UK by EIRIS, Ethical Investment Research Services, which evaluates corporations, apart from specific industries,
based on their environmental, social, and human rights performance.

†1 SRI (Socially Responsible Investment): Investment activities by investment funds that assess companies fromthe viewpoint of CSR and select shares accordingly.

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Working in Harmony with Local Communities
Contributing to society through a broad range of activities
and assistance for education, the environment, and social welfare
Finding Solutions for Social Issues
Grounded in the Hitachi Group’s Social Contribution Philosophy and Policy, we are offering broadbased assistance in three prioritized fields: education, the environment, and social welfare. Making
full use of human, material, financial and technological resources, we address social issues,
including support for family education and the healthy growth of children and teens; fostering
young researchers; sponsoring international student and teacher exchanges; educating people
about the environment; assisting environmental NPOs; working to narrow the digital divide; andhelping people with disabilities.
Hitachi, Ltd. and our five domestic foundations contributed about 1.5 billion yen for social
contribution activities in fiscal 2007.
Social Contribution Philosophy and Policy
Philosophy
The Hitachi Group strives to demonstrate good corporate citizenship in response to social needs andexpectations, while endeavoring to enrich the quality of life and realize a better society.
PolicyThe Hitachi Group promotes various social contribution activities to build a vibrant society based on
fostering leadership to implement reformation for the next era. This is achieved by making optimal use of
our knowledge and information technology in three specific areas: education, the environment, and social
welfare.
Adopted Feburary 2002

Breakdown of Funding for Social Contribution Activities
Other
10%

Culture andthe arts
21%

Scholarships and education
41%
Total expenditure:
1.472 billion yen

Social welfare
24%

Note: Data on Hitachi, Ltd.
and five domestic foundations
for fiscal 2007

Environment
4%

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Approach to Social Contribution Activities
Social Contribution Activities of the Hitachi Group

Local
communities

Foundations

Active operations as Hitachi Group foundations
Dissemination of information

Enhanced brand value

Business partners

Actively engaging in social contribution activities to enhance brand value
Supporting the volunteer activities of employees
Social contribution activities that allow us to fulfill our duty to society,such as disaster assistance

Shareholders

Hitachi Group
companies

Vitalization of business activities
through more flexible thinking andgreater desire to work

Realization of a better society

Individual fulfillment

Volunteer activities, etc.

Customers

Hitachi Group
employees

Educational Initiatives
We run a teacher exchange program, accept international students and researchers, and conduct
other initiatives on a global scale to help foster the next generation’s leaders. We also devote muchenergy to science education, given that increasing numbers of young people are turning awayfrom the sciences.
Education Case Study 1: Hitachi–DST Scholarship Program for South African Engineers
Hitachi, Ltd. assists young South African engineers working in the field of power generation andutilities by inviting them to Japan for technical training.
South Africa, a strategic emerging market, has electric power shortages and urgently needs
young technicians. To help, we have partnered with South Africa’s Department of Science andTechnology (DST) to create a training program for young people with engineering degrees and aminimum of three years’ work experience in the energy industry. Beginning in fiscal 2009, theseengineers will receive practical on-site training—and gain engineering expertise—at Hitachi’s
electric power plants. After training, they will apply what they have learned to electric power utilities
in South Africa, contributing to the development of their country’s social infrastructure.

South African engineers for the Hitachi-DST Scholarship Program

Education Case Study 2: Promoting Science Education
through the Community Partnership Academy of Wisdom
To contribute to society and provide children with opportunities to study science, Hitachi Plant
Technologies, Ltd. (HPT) established the “We-Love-the-Earth Class” in 1998, based in Matsudo
City, Chiba in Japan. Children participating in the program have fun learning about the importanceof environmental conservation. In fiscal 2007, the program was renamed the Community
Partnership Academy of Wisdom, accompanied by increasing the number of study themes andHitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Working in Harmony with Local Communities067

learning locations so that these science courses can take advantage of the special characteristics
of each business site.
In fiscal 2008, Academy programs were implemented in seven locations, including Toshima
Ward in Tokyo and Matsudo City in Chiba, with about 680 children taking part. We also participated
as a local company in the Science Festa†1 held at Bunsei Elementary School, a school run by the
Toshima Ward (Tokyo) government. During that event, we presented a program called Learning
about the Buoyancy of Air with a Hot Air Balloon in the gymnasium, and gave children and theirparents hands-on experience with a hot air balloon on the school’s athletic field.
†1 Science Festa is a science event for children hosted by Bunsei Elementary School that was first held in
fiscal 2007. Instructors included university students from near-by Rikkyo University as well as Hitachi Plant
Technologies employees.

Science education event held by the HPT Academy

Education Case Study 3: Educational Support for Indian Institutes of Technology
India is in the midst of an economic boom that is creating an urgent need for engineers andtechnicians. In fiscal 2008, Hitachi India Trading Pvt. Ltd. began providing educational support
to students of Indian Institute of Technology Hyderabad (IIT-H). Beginning in October 2008,
researchers from Hitachi, Ltd., who were dispatched from Japan, presented 10 lectures. To help
the students experience first hand the joys and challenges of monozukuri craftsmanship, we
donated three sets of power tools manufactured by Hitachi Koki India., Ltd. for them to use.
Professor Ravinder David Koilpillai of IIT-H spoke with gratitude about the Hitachi contribution,saying, “Hitachi’s efforts to support development of IIT-H are very helpful and appreciated not onlyby the students but by IIT-H as a whole.”

IIT-H students getting hands-on experience with power tools

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Environmental Initiatives
The Hitachi Group’s social contribution activities protect the environment and foster anenvironmentally oriented mindset, with the aim of realizing a sustainable society.
Environmental Case Study 1: Promoting Afforestation
In July 2008, Hitachi Group companies in Thailand took part in the opening ceremony andcommemorative tree planting for the Billion Tree Campaign at Thailand’s Sirindhorn International
Environmental Park. The campaign, underway since 2007, is jointly run by the Sirindhorn
International Environmental Park Foundation (under the Royal Patronage of Her Royal Highness
Princess Maha Chakri Sirindhorn), the United Nations Environment Programme (UNEP), theDepartment of Environmental Quality Promotion of the Thai Ministry of Natural Resources andthe Environment, and the Foundation for Global Peace and Environment. For the second year in arow, Hitachi has been a corporate sponsor. To date, Thai Hitachi Group companies have donatedabout 2.3 million baht (7.3 million yen), as well as two mini excavators from Hitachi Construction
Machinery Co., Ltd.
In September 2008, working with the Green Network, a non-profit organization (NPO), HitachiGroup employees volunteered for an afforestation program in the Horqin Desert in China’s Inner
Mongolian Autonomous Region. In 2007, these volunteers, along with students from Inner Mongolia
University for the Nationalities, planted 1,300 pine seedlings and cared for already planted shrubs
and poplar trees.
Through these activities, we are deepening our friendships and relationships with other people
and raising awareness among Hitachi employees of the importance of volunteer work that helps toimprove the quality of life of people in rural communities.
Plant for the Planet! Plant for the Future!—The Billion Tree Campaign in Thailand
http://www.hitachi.com/environment/showcase/employee/ex/plant01/index.html
Volunteer Experience Tour to Horqin Desert Greening Project in China
http://www.hitachi.com/environment/showcase/employee/ex/horqin/index.html

Planting commemorative trees in Thailand

Environmental Case Study 2: Kanagawa Children’s Environmental Summit in Yokohama
In February 2009, the Yokohama branch of Hitachi, Ltd. joined Kanagawa Shimbun to sponsor
the Kanagawa Children’s Environmental Summit, raising children’s awareness of energy and theenvironment. About 150 participants from eight elementary schools in Kanagawa Prefecture took
part. Before the summit, the children visited production plants and environmental facilities to study

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energy and ecology, including a bird sanctuary at Hitachi, Ltd. Enterprise Server Division, the home
appliance recycling operations at Tokyo Eco Recycle Co., Ltd., and a district heating and coolingsystem built by Hitachi. At the summit, children reported on what they had learned, talking about,for instance, high-efficiency thermal power generation, living in harmony with habitats of animals
such as wild birds, and protecting the environment by growing eelgrass (amamo).†2 During thepanel discussion, there was a lively exchange of ideas on what the children had learned and what
they would like to see adults and corporations do. To build a better future, we will continue joining
with children and our planet’s future generations in thinking about local environmental activities.
†2 Eelgrass (amamo): A marine plant, growing in shallow waters, that purifies the water and provides habitat.

Kanagawa Children’s Environmental Summit

Environmental Case Study 3: Developing EcoSoft Environmentally Friendly Software
Hitachi Software Engineering Co., Ltd. has developed an agro-information management systemcalled GeoMation Farm that uses proprietary technology based on a geographic information
system (GIS). This innovative system addresses the longitudinal management of crops and harvest
planning. Traditionally, farmers harvest wheat by visually judging ripeness and then deciding on
the order of harvesting. However, each farmer judges ripeness in a different way, and wheat thatis harvested too early requires costly drying. In response to requests received from the TokachiShimizu branch of the Japan Agricultural Cooperatives (JA) in Hokkaido, a software application
was developed that analyzes the growth cycle of wheat. After on-site trials, the client improved
harvesting efficiency and reduced the amount of energy required to dry the grain. Currently, thesystem is being used at ten locations in the Tokachi region, including the Shihoro JA branch. Koichi
Nishida, section head of the Shihoro branch, said about the software, that “a unified harvest season
reduces stress among farmers and eases the burden on the environment.” GeoMation Farm has
also won accolades as a way to combat global warming, winning the 2008 Environment CategoryAwards of u-Japan Grand Prize sponsored by the Ministry of Internal Affairs and Communications,and the 2008 Green IT Award Chairman’s Award sponsored by the Green IT Promotion Council.

Map of projected wheat growth		

Award ceremony for the u-Japan Grand Prize

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Social Welfare Initiatives
The Hitachi Group engages in these activities to create a better society by enriching lives—throughsupport for the healthy development of young people and activities that help the socially andeconomically disadvantaged reintegrate into society.
Social Welfare Case Study 1: Healthier Menus for Third World Children
We are enriching the quality of life and building a better society through social activities, including
fostering the healthy growth of children and teens, and supporting the reintegration into society ofthe socially or economically isolated.
Today, as millions in developing countries suffer from starvation and malnutrition, in developed
countries obesity and related lifestyle illnesses have become endemic. The cafeterias on themain campus of Hitachi, Ltd. have been participating since June 2008 in the TABLE FOR TWO†3
program, serving healthy meals to employees, with part of the savings going to developing
countries. For example, when an employee has a smaller amount of rice—cutting calorie intake—the savings are passed on to children in developing countries for school lunches. In fiscal 2008,
on average 55.5 percent of Hitachi, Ltd. main campus employees participated, as well as othersfrom Hitachi Software Engineering Co., Ltd., Hitachi Construction Machinery Co., Ltd., and Nikkyo
Create, Ltd. We will call on all employees to participate, broadening the reach as far as possible.
†3 TABLE FOR TWO: A program originating in Japan that addresses both hunger in the developing world, andobesity and other lifestyle-related diseases in the developed world.

Hitachi Software Engineering employees’ cafeteria

Social Welfare Case Study 2: Supporting the Development of Healthy YouthThe Hitachi Mirai Foundation is dedicated to nurturing healthy children and realizing a bright andhappy society by supporting the Japan Federation of Big Brothers and Sisters (BBS).†4 Each year,
the foundation financially supports the Parent and Child Crafts Workshop: Kite Making and Flying
program organized by the Hachioji branch (Tokyo) of BBS. In the workshop held in December
2008, 285 people took part, including 193 children and parents, as well as support staff. For many
children and parents, this event was the first time they had made and flown kites. The serene,
cheerful atmosphere was enjoyed by all.
The Hitachi Mirai Foundation also supports the Movement for a Brighter Society†5 advocatedby the Ministry of Justice. In December 2007, it received a commendation from the Minister ofJustice for contributions to the movement.
†4 The Japan Federation of Big Brothers and Sisters (BBS) is a volunteer mentoring organization dedicatedto preventing juvenile delinquency and helping youth who face an array of difficulties to develop in healthy
ways.
†5 The Movement for a Brighter Society, which is promoted by the Ministry of Justice, focuses on establishing

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vibrant regional communities in which children and adults can lead energetic lives. In fiscal 2008, the Hitachi
Mirai Foundation provided financial support for activities in 10 locations.

Parent and Child Crafts Workshop

Social Welfare Case Study 3: Developing and Distributing Sign Language
Animation Technology
Since the end of the 1980s, there has been rising awareness and support for the elderly andpeople with disabilities—both inside and outside Hitachi. Against this background, we began
developing a sign language translation system for the hearing impaired. As well, in 1996, wedeveloped sign language animation software called Mimehand. Further improvements andpractical applications followed, and the program was incorporated into the CommunityStationEX system, a multifunctional system used by municipal governments for automatically issuingcertificates. In 2000, we introduced an electronic Japanese/sign language dictionary (under thesupervision of the Japanese Federation of the Deaf), and in 2006 we developed an information
system for the hearing impaired to use when receiving stomach X-ray examinations (manufactured
by Hitachi Medical Corporation). These applications have been warmly received. In July 2009, we
provided technology to STARFISH-SD Inc., the maker of Sign Language Forest, a sign language
learning game designed for the Nintendo DS. In this way, we are helping to create and distribute
sign language animation programs for a variety of applications.
We will continue to develop applications for our sign-language animation technology in an
ongoing effort to support sign language and to create a society where the hearing impaired canlive in comfort and security.

Screen display showing the Mimehand program

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topics
Assisting Dongfang Electric Corporation
after the Sichuan Earthquake
For a speedy recovery and to provide emergency aid to the victims of the Sichuan Earthquakethat occurred in China on May 12, 2008, Hitachi
contributed 245 million yen in the form of relief
donations, construction equipment and otheritems for reconstruction. Manufacturing plants ofDongfang Electric Corporation that make turbines
for thermal power plants were hard hit. At the
Hanwang plant, where 90 percent of the buildings were demolished, making key parts, such as
turbine blades and rotors, became impossible.
So the Hitachi production plant in HitachiCity, Ibaraki Prefecture, Japan, made substitutes
for these critically needed parts, keeping delays
in shipping electrical power equipment to a minimum while continuing to ensure the high level ofproduct reliability and safety that the Hanwang
plant was known for. Electric power shortages
are a serious problem in China, so Wen Shugang,president of Dongfang Electric, expressed his
gratitude that delays in China’s plans for construction of new power facilities had been avoided,saying, “Thanks to Hitachi’s cooperation, recovery from the damage caused by the earthquake
has been very smooth.”(Top) Hitachi Construction Machinery excavators, important for earthquake recovery(Bottom) Earthquake damage at Dongfang Electric Corporation’s Hanwang plant

Six Foundations Promote Diverse Activities
Hitachi has six foundations located both in Japan and the U.S. that are active in many areas,
including promoting family and science education, inviting university teachers and researchers
from Southeast Asia, protecting the environment, supporting the healthy development of young
people, and working on corporate citizenship initiatives in the U.S.
Hitachi’s Foundations
The Odaira Memorial Hitachi Education Foundation
The Hitachi Environment Foundation
The Kurata Memorial Hitachi Science and Technology Foundation
The Hitachi Mirai Foundation
The Hitachi Scholarship Foundation
The Hitachi Foundation (U.S.A.)
Hitachi’s Foundations
http://www.hitachi-zaidan.org/global/index.html

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Support for Volunteer Activities
Hitachi supports employees who volunteer by giving them information, time off, and financial
assistance.
We disseminate information about volunteer activities through seminars, the company intranet,and other media. In fiscal 2008, we sponsored five seminars, including one held outdoors. To
encourage people to donate their time, we have instituted special annual paid leaves (in addition
to regular annual paid leaves) that may be used for volunteer activities or other forms of personal
growth. Financially, we sponsor a semi-annual volunteer support program called The Growing
Tree that provides financial assistance for non-profit organizations in which Hitachi employees arevolunteering or actively participating. In fiscal 2008, assistance was given in 11 cases, for about 3
million yen.
Seminar Example (Forest Growing Volunteer Activity)
http://www.hitachi.com/environment/showcase/employee/ex/plant01/index.html

Social Contributions Made by Companies in the Hitachi Group
Category
Education

Environment

Social welfare

Activity

Company

Using their Tabletop Microscopes, this company provides elementary and junior highschool students with the opportunity to explore the microscopic world through hands-on
experience and experiments. In fiscal 2008, a microscope lending program was begun
mainly for educational institutions in Japan, to promote scientific inquiry.

Hitachi High-Technologies Corporation

Hitachi Group employees visit elementary schools, primarily in Tokyo, as volunteer teachers
to talk about Universal Design (UD). In fiscal 2008, 1,585 students participated in 41
classes. The program was awarded the 2nd Kids’ Design Award.

Hitachi, Ltd.

We began the Tsinghua Information Forum—Hitachi Lecture in China during fiscal 2008
to encourage thinking about careers in science and engineering. Hitachi researchers andwell-known scholars from around the world presented six lectures.

Hitachi, Ltd.
Hitachi (China) Research & Development
Corporation

Forty-four companies in the Hitachi Group participate in the Ecocap* program in many
locations throughout Japan in an effort to raise employee awareness of environmental
issues through daily activities.

Hitachi Group

Since fiscal 2006, the company has provided volunteers who research, by survey, theMiyama shijimi butterfly, which is threatened with extinction. This program encourages
participants to think about the preservation of ecosystems and biodiversity. In fiscal 2008,
11 employees and their family members took part.

Hitachi, Ltd.

Since 1997, the company consistently participated in annual reforestation projects aimed
at preserving the environment of the Silang Santa Rosa River (the Philippines). Six Hitachi
employees volunteered in June 2008, planting about 300 saplings.

Hitachi Global Storage Technologies
Philippines Corporation

In April 2008, the company established the Magokoro Fund which is a fund made up ofmonthly contributions of 100 yen deducted from the salaries of participating employees withmatching funds from the company. The money raised goes toward transportation safety,
environmental protection, and social welfare programs.

Hitachi Transport System, Ltd.

Working with leading American foundations, as well as the U.S. Department of Labor andother entities, the foundation initiated a five-year program in 2007 designed for workforce
development. This nationwide program provides grants to promote employment andtechnical training for low-wage workers, contributing to improvements in labor conditionsin the U.S.

Hitachi Foundation (U.S.)In June 2008, extensive flooding in the Mississippi River basin inflicted heavy damage on
homes in the U.S. Midwest. To help out, 60 company volunteers went to Winona, Minnesota
to help repair 12 homes, remove rubble, and clean up the environment.

Hitachi Global Storage Technologies,
Inc. (U.S.)

This company was awarded the 5th Asahi Corporate Citizen Award by the Asahi Shimbun
Company, a major Japanese newspaper, for their 2008 CSR activities. The award
recognizes their long-term contributions to international society, including their developmentof landmine removal equipment and support for the restoration of regions damaged bylandmines

Yamanashi Hitachi Construction
Machinery Co., Ltd.

* This program collects plastic bottle caps, sells them to recyclers, and uses the proceeds to provide vaccinations to children throughout the world.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Working in Harmony with Local Communities
074

Employees: The Key to Hitachi’s Future
Respecting employees’ individuality and promoting activities to achieve work-life balance
Creating a Work-Friendly Corporate Culture
Hitachi, Ltd. is working hard to nurture human resources that can meet the requirements of the
new age and to create a better work environment. This endeavor is guided by three key words:(1) openness to encourage frank communication and to provide employees with opportunities toexpress their full potential, (2) challenge to aspire to high goals and personal transformation, and(3) diversity to respect individuality.

Openness: Promotes the Expression of Employees’ Full Potential
The Hitachi Group has instituted a range of initiatives designed to encourage frank, open
communication so that employees can achieve their full potential. These include personnel system
reforms, an employee awareness survey, and the 360-Degree Feedback Program.
Personnel Systems
At Hitachi, Ltd., our personnel system is designed to assess the strengths and achievements of
employees fairly and transparently and to reflect these findings in salaries and bonuses. Elements,
standards, and methods of evaluation are fully disclosed as employees meet their evaluators toarrive at a shared assessment. In the course of these discussions, employees receive feedbackon their strengths and weaknesses as well as guidance on achievement of business goals andcapacity building. An evaluation manual is used to minimize disparity. As a further step, employees
are surveyed annually to review the evaluation process, and follow-up work is done to ensure
proper management.
Survey of All Employees
We conduct an annual survey of all 41,000 employees of Hitachi, Ltd. to check on items such as
employee satisfaction, workplace culture, and views on management. Known as the Business
Process and Opinion Survey, this survey is conducted through the Hitachi intranet. Results areanalyzed for each workplace and are used for revising personnel policies and transforming thebusiness culture.
360-Degree Feedback Program
In this program, about 10,000 managers attend workshops and engage in e-learning to understandfeedback from their superiors, colleagues, subordinates, and junior staff, with the help of expert
instructors. Understanding feedback in turn enables managers to reassess their own strong points
and areas needing improvement, as a capacity-building exercise.

Challenge: Supports Growth
Because we believe that maximizing employee potential is vital for continuing to provide new value,
we work hard to improve employees’ abilities and their careers.
Employee Capacity Building
For capacity building, we supplement in-house education based on on-the-job training with

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future075

an elaborate training system. This training consists of six educational programs: “Management
Development,” “Education for Engineers,” “Production Worker Training,” “Education forInternationalization,” “Sales Education,” and “Training by Job Function.” These programs are offeredacross the Hitachi Group in conjunction with educational institutions, such as the Hitachi Instituteof Technology, the Hitachi Institute of MONOZUKURI Skills and Engineering, and the Hitachi
Institute of Management Development. In addition, in order to expand educational opportunities
for employees, Hitachi has also developed a unique e-learning system (in Japanese, English, andChinese) for Group companies.
Supporting Career Development
We work to create an environment where employees can discuss their careers with theirsupervisors to deepen mutual understanding between both parties and enable both to tackle theirjobs with a clear vision.
We also operate the Career Development Workshop, a development support program
designed to foster independent human resources. It helps participants achieve self-realization,
enabling them to develop a deeper self-understanding, including their reasons for working, living
and their work values, as well as how to set their personal career goals.
We have also established the Group Open-Placement System for employees in Japan toexpress their intentions and expectations through job transfers. As of March 2009, 20 Group
companies were participating in this system; in fiscal 2008, there were 33 transfers. We havealso adopted an Intra-company Free Agent (FA) System allowing employees to apply directly
for transfers to other divisions. During fiscal 2008, 71 applications were received, leading to 10
transfers.
Global Manager Training
With our operations taking on an increasingly global perspective, it is absolutely critical that ourdomestic and overseas managers working on the frontlines of global business understand ourhistory, founding spirit, company operations, common values, corporate philosophy, and basic
management skills. To instill this understanding, we operate a four-day course, Global Fundamental
Course—Ready to Inspire, which offers the same training to all Hitachi managers around the world.
Since fiscal 2006, when it was launched, the course has been taken by more than 1,000 people.
From fiscal 2009 too, we plan to continue the course while broadening the regional and personnel
scope, as well as training methods.
Reward System for Employee Inventions
Many Hitachi employees are engaged in research and development, including some 1,200 with
doctorates. We have developed the Reward System for Employee Inventions to stimulate researchand encourage outstanding inventions.
Hitachi provides rewards for patent applications and registrations, as well as performance
rewards given at the stage where revenues are drawn from patent use and/or patent licensing
income. For performance rewards in particular, Hitachi works to ensure objective evaluations of theextent to which patents have contributed to Hitachi’s business and to provide equitable payment
for patents that have made a “substantial contribution.”
To ensure fair and transparent operation of the system, Hitachi has developed invention
reward criteria and made these known to employees. An Employee Invention Rewards Internal
Arbitration Committee has also been set up to receive inventors’ claims and to determine the

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future076

amount of payment for invention rewards that are offered. Hitachi’s Invention Information systempromotes communication between inventors and business divisions, enabling inventors to makeinquiries themselves to business divisions for information on internal or external use of patents andto confirm the basis for payment for invention reward calculations.
The Annual Top 100 Rewards for Use of Patents presidential award was launched in fiscal
2005. In addition, since 2006, the Top 50 Rewards for Patent Applications award has been given
to inventors aged 35 years and younger based on their records during their first five years at
Hitachi.

Diversity: A Base for the Healthy Expression of Individuality
At Hitachi, we believe that respect for people in all their diversity, respecting their ways of working,builds synergy among employees and helps to create new value.
To realize this goal, we have been encouraging diversity awareness at all Group companies,
mainly through the Diversity Development Project launched in August 2006, which reports directly
to the President and CEO. From fiscal 2008, we also started promoting work-life balance as a
key element of diversity. In “Strengthening The Base ’08–’09 —For Sustainable Growth—,” †1 a
project for all employees, we have been reforming our ways of working based on the themes“lively work styles,” “enhancing physical and mental health,” and “support for enlivening workplacecommunication.”
The results so far: many business groups have come up with their own activities, andawareness of diversity and work-life balance in and outside Japan has been gradually increasing.
In fiscal 2009, we will continue these activities, based on the same themes, in cooperation with all
Hitachi employees.
†1 Strengthening The Base ’08–’09 —For Sustainable Growth—: Activities for all Hitachi Group employees tostrengthen management foundations for future growth (April 2008–March 2010)

Co-sponsoring Women’s Summit Tokyo 2008
In October 2008, Hitachi co-sponsored Women’s Summit Tokyo 2008 together with othercompanies that promote diversity, contributing to the creation of a network of women working
in many business fields. Two hundred women from 20 companies in a variety of businesses took
part, engaging in a lively exchange of opinions on the theme of pursuing a career.
Participation in the Work-Life Balance Promotion Project
Hitachi is participating in the Work-Life Balance Promotion Project launched in 2008 by the
Ministry of Health, Labour and Welfare. This project aims to foster a balance between work and life
by publicizing specific activities and their results from 10 leading companies in different businessfields based on the Charter for Work-Life Balance and the Action Policy for Promoting Work-Life
Balance.
In July 2008, management executives of the participating companies issued the Declaration
by Top Management, stating the aims of the project and implementation priorities. In March 2009,
an action program was produced, outlining the results of implementations at each company,
including Hitachi, and the activities that will be conducted from fiscal 2009 onward.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future077

commitment
Individuals and the Team Create
Dynamism Together

Kenji Ohno
Vice President and Executive Officer (Human Capital),
Hitachi, Ltd.

The most important management task is toenhance corporate value by creating a vibrantwork environment, while fully harnessing the abilities of every employee. At Hitachi, we try to makefull use of diverse human resources and to reduce
long working hours to improve work efficiency
and communications. We have also establishedsystems that combine work with child rearing or
nursing care, and have been striving in each business group to create an atmosphere where thesesystems can be easily used. As a result of ourefforts to change our way of working—by cutting
overtime and encouraging employees to takeall vacations—we reduced the statistics for long
working hours by half compared with the previous year. In employee surveys, the percentage of
those who feel that they have too much work has
also decreased.
To emphasize diversity as well as further
enhance our organizational strength, we willcontinue to promote business innovation and toreform employees’ awareness of the way theywork.

“Working well, leading a good life”—logo of the Work-Life Balance Promotion ProjectMale/Female Employee Ratio(March 2009)
FemaleRatio of New Male/Female Graduate Recruits in Fiscal 2008
Female

14%

19%

81%

86%
Male

Male

Data: Hitachi, Ltd.

Data: Hitachi, Ltd.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future078Trend in the Number of Female Managers		
(People)Trend in the Number of Employees Taking Child Care Leave
Male

303

300

Female276(People)

247

250

500

200

400

150

300

100

200

73

436

2000

2006

2008 (FY)

2007

0

2007

Trend in the Number of Employees Using Nursing Care Leave

Male
Female(People)

20

400

18
10

200

2007

383
2

349

381

100

8
2008

350
1

300

10

10
10

Number of people who used system
at least once during period in question

Trend in the Number of Employees Working Shorter Hours

Female0(FY)

Data: Hitachi, Ltd.

Male

20

451

2008

Data: Hitachi, Ltd.

(People)

459
8

100

50
0

438
2

(FY)

Data: Hitachi, Ltd.

0
Number of people who used system
at least once during period in question

2007

2008

(FY)

Data: Hitachi, Ltd.

Number of people who used system
at least once during period in question

voicesTaking Child Care Leave with Understanding
and Support in the Workplace

Daisuke Komaki
Researcher, Information Service Research Center, System
Development Research Center, Hitachi, Ltd.

In the 2nd Questionnaire Survey on Companies
Facilitating Child-Rearing by Fathers, (by Fathering Japan and Daiichi Life Research Institute),
Hitachi was the top company for the second
consecutive year. According to our employee,
Daisuke Komaki, who took six months’ leave from
July 2008, “The project I was in charge of was at
a crucial stage, so I think everyone was surprised,
but thanks to their understanding and support
I was able to devote myself to looking after mychild. The person who took over for me upgradedhis skills, and I think the entire experience promoted understanding for men taking child careleave.”
Hitachi gained high marks for not imposing
any restrictions on how many times employees
can take child care leave, for expanding the system’s scope to three years up to the end of thefirst year of school, and for understanding thework-life balance.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future079

Employing Retirees (Japan)
Hitachi and Hitachi Group companies have adopted a life plan selection framework, designed tore-employ people aged 60 who want to continue working and are suited to company-designatedpositions. We strive to make full use of older people with deep experience, technical expertise,and skills.
Promoting Employment for the Physically and Mentally Disabled
We strive to meet the legally mandated ratio of physically and mentally disabled employees byholding employment fairs and consulting with Group companies. As of June 2008, 2,975 disabled
people were employed in Japan, accounting for 2.06 percent of employees at Hitachi, Ltd. and1.84 percent at Group companies. We will continue to create more opportunities for the disabledby improving the workplace and expanding the range of work.
Trend in the Employment Ratio for Physically and Mentally Disabled People
2.05(People)

1,300

1.88

2.11

Legally mandated
employment ratio

1,106

1,000

(%)

2.0

1,150

850

2.06

1.93

926

968

1.80

1,001

822

1.5

700
0

2004

2005

2006

2007

2008 (Year)0

Data: Hitachi, Ltd. (collected in June every year)

Fostering Women’s Leadership
Together with other companies in the San Francisco Bay Area, Hitachi Data Systems (HDS)
supports the Women’s Leadership Network. To promote the leadership of working women,
this network was launched in November 2008. Two HDS executives, Susan Lynch, Senior Vice
President and CFO, and Nancy Long, Senior Vice President for Global Human Resources, spoke
as network executives at the event. The network’s activities have been widely recognized, being
shortlisted for the 2008 Stevie Awards for Women in Business, which honors the achievements
and social contribution of people and organizations around the world.

Women’s Leadership Network launch

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future080

Employment
We believe that employment should be protected by government, employers, and employees.
The continuation of employment is also an important management issue. In response to recent
economic trends, and to ensure the most appropriate employment and allocation of personnel,
we are striving to maintain and expand employment by transferring people from mature to growthbusinesses and by creating new businesses in environmental and other fields.

A Safe, Pleasant Workplace
At Hitachi, ensuring the safety and health of employees is the highest priority of all. Aiming to
reduce fires and accidents to zero, we do our best to maintain high health and safety standards
and to make continual improvements.
Employee Health and Safety
From many years of safeguarding employee safety and improving the work environment, wehave acquired in-depth expertise on safety and health. We then apply this expertise to everyday
operations, including health management, where employees are given guidance based on regular
medical check-ups with company physicians.
Trends in the Occupational Accident Rate
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0

All industries
Manufacturing industries
Electrical machinery sector
Hitachi, Ltd.

2004

2005

2006

2007

2008 (Year)As of May 30, 2009, FY 2008 figures are not available, except for Hitachi.

Safety Policies of Hitachi Global Storage Technologies
Hitachi Global Storage Technologies (Hitachi GST) develops and implements worker safety andhealth policies, part of an action plan for all of its employees worldwide.
Programs are produced by an independent in-house team that takes into account divisionaland regional effectiveness. Policies range from monitoring chemicals and machinery in factories
to managing hygiene in dormitories and cafeterias at factory locations. We are ensuring safer
environments for workers both on the job and in private life. Work safety and health teams include
employees and experts who receive individual guidance and Internet-based training. They work
together to improve their safety knowledge, through electronic discussions or via telephone, andthrough outside courses. As a result, Hitachi GST currently has OHSAS 18001†2 certification at 10
global sites.
†2 OHSAS (Occupational Health and Safety Assessment Series) 18001 is a certification based on a set of
regulations and procedures for managing and controlling occupational health and safety risks.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future081

Hitachi Global Storage Technologies (Thailand)(Above) Members of the worker safety and health team(Below, left) On-site interviews conducted by team members, (Below, right) On-site confirmation of safety and health

Ensuring Better Work Hours
To improve productivity and operational efficiency, we return to the basics in our reviews of how
managers and other employees work. We encourage employees to reduce overtime and takeannual holidays. In this way, we try to ensure appropriate work hours and help employees maintaina good work-life balance, which ultimately strengthens them and the organization as a whole.
Training for Strengthening Communication Skills
To revitalize workplace communications, we started a training program in 2008 for managers
to strengthen their communication skills. To promote diversity and good interpersonal relations
based on trust—as well as to achieve organizational goals—we stress respect for individuality anddifferences of opinion and culture, while seeking a full consensus. The hands-on training during thetwo-day program focuses on communication skills that are the basis for all interactive skills: active
listening, essential for mutual understanding; and assertion, which allows people—after opinions
and ideas are expressed—to reach a conclusion that all parties can accept.

A training session for strengthening communication skills (Photo courtesy of Nikkei Information Strategy)

Promoting Mental HealthIn recent years, maintaining the mental health of employees has emerged as a major social
concern. We have put up a stress-level checklist on our intranet so that employees can easily ratethemselves. We also address mental healthcare by providing access to specialists and counselors.
In addition, an EAP†3 Center has been established to help employees resolve their worries andHitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future082concerns through person-to-person, telephone, and in-house online counseling. After ensuring
privacy, findings from these programs are relayed to management for use in improving the work
environment.
†3 EAP (Employee Assistance Program): Provides employees with psychological, physical, and social support

Basic Attitudes to HIV/AIDS
Since 1995, Hitachi, Ltd. has promoted an understanding within the Hitachi Group of HIV/AIDS
based on the following three points.
Basic Attitudes Concerning HIV/AIDS(1) We will actively build AIDS awareness in keeping with the understanding that the most important thing is“to cultivate accurate knowledge and understanding of HIV/AIDS on the part of every employee.”(2) We will respond to known cases of infection by giving the highest consideration to respecting the humanrights of those infected, and consider how to delay the onset of illness.
(3) With a view to protecting the privacy of individuals, no testing for HIV/AIDS will be conducted as a part ofany routine physical examinations for employees done within the company, whether the physical examinationis legally sanctioned or not (i.e., voluntary).

Enriching the Lives of Employees and Their Families
Hitachi has instituted a range of measures designed to support richer, more stable lives for our
employees and their families.
Supporting Employee Self-Help Efforts and Independence
We employ measures designed to support an employee’s self-reliance and independence.
These include housing support such as dormitories, company housing, and a housing allowancesystem, as well as other measures such as an asset-building savings program, an employee stock
ownership program, group insurance and consolation payments. In 2000, a new “cafeteria plan”
system was introduced that allows employees to select the benefits they will receive. Choosing
from a list of options, such as skills development, childcare, nursing care, health promotion anddonations, allows employees to tailor a program to their individual lifestyles and needs. Employees
can select the support that they need—when they need it—according to their “cafeteria points.”
Employee Life-Planning Support through Corporate Pensions
With Japan’s declining birth rate, the aging of society, and the growing diversity of post-retirement
lifestyles, corporate pensions seem positioned to play an increasingly important role.
In response to the diversification of post-retirement lifestyles, changes in the employment
system, and revisions to legal systems, the Hitachi Group has fundamentally revamped retirement
allowances and pensions. Defined contribution and defined benefit plans have been introduced
within the systemic infrastructure—across the Group—to provide life planning support for
employees. For defined contribution plans, we encourage the active participation of employees
in their post-retirement planning through, for example, education on asset management andinvestments. For defined benefit plans, we have boosted the number of benefit options in responseto employees’ diverse needs.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Employees: The Key to Hitachi’s Future083

Collaborative Creation with SuppliersWorking with suppliers to promote CSR through guideline formulation, active
communication through surveys, and information sharing
Sharing CSR Awareness
The Hitachi Group values partnership and openness with suppliers. We are committed tomaintaining and improving the mutual understanding and trust of our suppliers from both thelong term business relationship and sustainability point of view. While providing equal business
opportunities, we select suppliers from around the globe based on the principle of open
competition.

Formulation of Supplier Guidelines
Hitachi, Ltd. formulates and publishes the Hitachi Supply-Chain CSR Deployment Guidebook,conforming to the guidelines of the Japan Electronics and Information Technology Industries
Association (JEITA). We have asked our suppliers to use this guidebook for self-evaluations, a
process that allows us to deepen understanding and communication for CSR. Also, in line with
the United Nations Global Compact, we revised our Hitachi Guidelines for Procurement Activities,
effective June 2009.
Guidelines for Procurement Activities
These guidelines define business transaction standards which shall be applied to all HITACHI executives
and employees in connection with their activities purchasing necessary materials, products, services, andinformation from outside sources.
1. Overall procurement activities of Hitachi shall adhere to the “HITACHI Company Conduct Standards.”
2. HITACHI shall maintain proper partnerships, mutual understanding, and reliable relationships with
suppliers with a view to the long term results.
(1) HITACHI shall treat all suppliers impartially and be prohibited from favoritism such as giving unfair priority
to any specific suppliers.
(2) HITACHI respects fair business dealings with suppliers and will avoid any improper act which mightcause a loss to a supplier apart from normal and customary business transactions.
(3) HITACHI shall keep suppliers’ trade secrets strictly confidential and prevent them from being
revealed or improperly used.
3. HITACHI develops suppliers to maintain competitiveness from a worldwide point of view.
(1) HITACHI responds to all suppliers’ offers sincerely, and is always willing to offer the information necessary
for suppliers to complete on an even playing field.
(2) HITACHI shall periodically check and review suppliers’ performance and will consider offering moreadvantageous business opportunities when comparison with other resources allows.
4. Through a designated selection process, suppliers shall be evaluated by product quality, reliability,
delivery, price, suppliers’ business stability, technical development ability, fair and transparent information
release, compliance with societies’ rules, regulation compliance, respect for human rights, elimination of
discrimination in respect of employment and occupation, elimination of all forms of forced and compulsory
labor, environmental preservation activities, social contributions, good working environment, and recognitionof social responsibilities with business partners.
(1) HITACHI shall not request quotations from suppliers with whom there is no intention to enter into a futurebusiness relationship.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Collaborative Creation with Suppliers084(2) In accordance with specified internal procedures, the role and responsibility for specifications, terms andconditions, product acceptance and inspection belongs to each Requester, Procurement Department andInspection Department.
(3) Procurement Departments shall be a representative of HITACHI when contracting with suppliers
Revised in 2009
* All companies in the Hitachi Group act in accordance with these guidelines

The Hitachi Supply-Chain CSR Deployment Guidebook
http://www.hitachi.com/ICSFiles/afieldfile/2009/03/12/SC_CSR_E.pdf

Working with Suppliers to Promote CSR Activities
In fiscal 2008, we conducted surveys with more than 100 of Hitachi, Ltd.’s main suppliers, analyzed
the results and provided them with feedback. The results showed that—compared with othercategories, such as product quality and safety, and the environment—more attention needs tobe paid to human rights, fair labor practices, fair trade and ethics, and social contributions. In thisway, we are helping our suppliers to understand and improve their own performance. In addition,
we are building a database of the survey results that will be shared throughout the Hitachi Group.
In fiscal 2009, we will add approximately 300 more suppliers to the number of suppliers whose
self-evaluation results we have monitored using the guidebook. We will also start monitoring
suppliers to other group companies to promote CSR throughout our supply chain.
Results of Surveys Conducted to Promote CSR among Suppliers
Human rights/
fair labor practices
3.4
Social contributions
2.9

Safety and health
3.8

Information security
3.9

Product quality and safety
4.0

Environment
3.8

Fair trade and ethics
3.3

Maximum score for each category: 5 points

Promoting the Use of Environmental Management Systems by Suppliers
For green procurement,†1 we ask all suppliers to promote environmental management systems(EMSs) by acquiring certifications. We actively support the acquisition of EMS certifications, suchas KES,†2 Eco Stage,†3 and Eco-Action 21,†4 mainly for small and medium-sized suppliers. We
organized the MMM Club with those suppliers who have acquired certification as members,
using information exchanges on activities and training courses to promote qualitative EMS
improvement.
For handling chemicals, for which regulations are becoming stricter and chemical content
management more complicated—throughout the world—we recommend that suppliers manage
them based on the product chemical content management mechanisms drawn up by JAMP†5and promote the development of rational, efficient management systems.
We also accumulate information on chemicals in Hitachi Group products in every process of

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Collaborative Creation with Suppliers085corporate activities, ensuring that the product chemical content management system correspondswith the EU’s REACH regulation, and that we are able to respond flexibly to suppliers’ chemical
information management methods.
†1 Green procurement: The procuring of parts and materials with reduced environmental impact from suppliers
that are actively protecting the environment†2 KES: A Japanese environmental certification system administered by the KES Environmental Organization,
an NPO†3 Eco Stage: An assessment system being promoted by the Eco Stage Institute to support environmental
management. Eco Stage is a registered trademark of Mitsubishi UFJ Research & Consulting Co., Ltd.
†4 Eco-Action 21: An environmental certification system operated by the Institute for Global Environmental
Strategies, based on the Eco-Action 21 Guidelines formulated by the Ministry of the Environment†5 JAMP (Joint Article Management Promotion-consortium): An entity to promote cross-industrial activities
for the establishment and dissemination of specific mechanisms to manage appropriately and facilitate thedisclosure and conveyance of information on chemicals contained in supply chain products

Green Procurement Guidelines
http://www.hitachi.com/environment/library/pdf/green_en.pdf

topicsGreen Procurement Overseas
Taking advantage of regular procurement division
meetings, we are training our procurement managers outside Japan to implement the Group’s
green procurement policies. In April 2008, a
North American Procurement Conference washeld in Dallas, Texas, where chemical substanceregulations—an issue for corporate procurement
divisions worldwide—were discussed. European
companies have led the way, as exemplified by
the REACH regulation. However, North Americancompanies are getting more involved in managing
chemical substances in products, while maintaining relations with suppliers.
Participants receive more comprehensive
information about environmental policies from theperspective of procurement management. In apractical sense, conferences are also an opportunity to explain registering and managing information on chemical substances using our Integrated
Management System for Chemical Substances
Contained in Products.

Participants at the North American Procurement Conference

Partnerships
Collaborative creation (joint activities) with trustworthy, technologically advanced suppliers isessential for product development. Hitachi continuously strives to strengthen partnerships withsustainable suppliers. The Hitachi Partner Day is held once a year to promote Hitachi’s business
management policy and strategy. In fiscal 2008, about 170 executives from 74 suppliers took partin the Hitachi Partner Day.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Collaborative Creation with Suppliers086

Improving Supplier Relations with an Open-Door Policy
We are creating opportunities to broaden our range of transactions with an open-door policy.
We are striving to forge links with SMEs by cooperating with local government SME-assistanceorganizations and by holding product shows and business meetings for members of the HitachiGroup. In fiscal 2007, we held the Osaka Prefecture Hitachi Group Show and Business Meetingand in fiscal 2008, in collaboration with the Nagano Prefecture Small and Medium-sized Business
Promotion Center and Tokyo Small and Medium-sized Business Promotion Corporation, we held
the Nagano Prefecture New Technology and New Construction Method Show, and the Tokyo
New Technology and Construction Method Show and Business Meeting. We are planning to workwith various institutions to hold similar shows with local governments in fiscal 2009.
Among other countries, Hitachi is focusing on India and Vietnam in particular, both of which
are undergoing rapid economic growth as emerging markets. We have been making every effort tocultivate and expand our business in these countries, for example, by participating in parts supply
shows sponsored jointly by Japan External Trade Organization (JETRO) and local organizations.

Hitachi Group Corporate Social Responsibility Report 2009 | Hitachi: Living Together with Society | Collaborative Creation with Suppliers087Company Profile
Corporate Name:
Incorporated: 		
Head Office: 		Representative:			

Hitachi, Ltd.
February 1, 1920 (founded in 1910)
1–6–6 Marunouchi, Chiyoda-ku, Tokyo 100-8280, Japan
Takashi Kawamura,
Chairman, President and Chief Executive Officer

Hitachi Group Profile
Hitachi, Ltd. and the Hitachi Group make up a corporate group consisting of 1,110 companies:
403 consolidated subsidiaries within Japan and 540 outside Japan, as well as 77 equity-method
affiliates in Japan and 89 outside Japan. For business activities, there are seven business units, as
indicated on the next page, with total revenues of about 10 trillion yen. The Group employs about
400,000 employees.

Asia
EuropeNumber of companies: 142
Number of employees: 11,056
Revenues: 904,425 million yen

Number of companies: 275
Number of employees: 107,647
Revenues: 1,911,290 million yen

North America
Number of companies: 78
Number of employees: 14,867
Revenues: 899,550 million yen

Japan
Number of companies: 403
Number of employees: 260,677
Revenues: 5,861,448 million yen

Other
Number of companies: 45
Number of employees: 5,882
Revenues: 423,656 million yen

Economic Performance
As of March 31, 2009				
Period: Fiscal year ending March 31, 2009									(consolidated basis)
Common Stock: 282,033 million yen		
Revenues:
10,00.3 billion yen
Number of employees 					(unconsolidated basis): 40,549				
(89% compared with the previous year)
Operating income:Number of employees 				(consolidated basis): 400,129				
127.1 billion yen
Number of consolidated subsidiaries: 			
(37% compared with the previous year)
Capital investment:
943 (Japan: 403, outside Japan: 540)		
Number of equity-method affiliates:			
788.4 billion yen 		
166 (Japan: 77, outside Japan: 89)			
(81% compared with the previous year)		
						
R&D expenditure:												416.5 billion yen							
(97% compared with the previous year)				Overseas output as a percentage of consolidated net sales: 24%088

See Web site for economic performance reports.
http://www.hitachi.com/IR-e/

Financial Results (consolidated basis)
Revenues and Operating Income
Revenues( billions of yen )12,00010,000Operating income( billions of yen )Revenues
Operating income

1,200

11,226.7
9,027.0

10,247.9

9,464.8

10,000.3

1,000

8,000

800

6,000

600

4,000

345.5

279.0

256.0

182.5

2,000
0

2004

400

2005

2006

127.1
2007

2008 ( FY )Revenues by Industry Segment in Fiscal 2008 (billions of yen)
Financial Services
412.0 (4%)

Logistics, Services & Others
1,089.9 (9%)

Information &Telecommunication
Systems
2,594.4 (23%)

High Functional Materials &Components
1,556.8 (14%)
Electronic Devices
1,151.0 (10%)
Digital Media &Consumer Products
1,261.5 (11%)

Power & Industrial Systems
3,310.5 (29%)
Total Sales by Industry: 11,376 billion yen
Consolidated Net Sales: 10,000 billion yen

089

200
0

Major Fields of Business and Products
Information & Telecommunication Systems

Data center(unification control
center)Hitachi Global Storage
Technologies’
500-gigabyte 2.5-inch
hard disk drive

Large disk array
subsystem

Systems integration, outsourcing services, software, hard disk drives, disk array subsystems, servers, mainframes, PCs, telecommunication equipment, ATMs
Hitachi Communication Technologies, Ltd., Hitachi Kokusai Electric Inc., Hitachi-Omron Terminal Solutions, Corp., Hitachi Computer Products (America), Inc., Hitachi Computer Products (Europe) S.A.S.,
Hitachi Global Storage Technologies Netherlands B.V., Hitachi Electronics Services Co., Ltd., Hitachi Information & Control Solutions, Ltd., Hitachi Information Systems, Ltd.,
Hitachi Software Engineering Co., Ltd., Hitachi Systems & Services, Ltd., Hitachi Data Systems Corporation, Hitachi Information & Telecommunication Systems Global Holding Corporation

Electronic Devices

Hitachi Displays’
3.2-inch wide and
IPS LCD for “One-Seg”
compatible mobile phones

Hitachi Medical’s
superconducting
high-field
open MRI machine

Hitachi High-Technologies’
scanning electron microscope

Liquid crystal displays (LCD), semiconductor manufacturing equipment, testing and measurement, medical electronics equipment, semiconductors
Hitachi Displays, Ltd., Hitachi High-Technologies Corporation, Hitachi Medical Corporation, Hitachi Display Devices (Suzhou) Co., Ltd.

Power & Industrial Systems

Hitachi Construction
Machinery’s
hydraulic excavator

Monorail* in Dubai, UAE

Hitachi Vehicle Energy’s
square lithium-ion battery
for hybrid vehicles

Nuclear power plants, thermal power plants, hydroelectric power plants, industrial machinery and plants, automotive products, construction machinery, elevators, escalators,
railway vehicles, power tools
Babcock-Hitachi K.K., Clarion Co., Ltd., Hitachi Construction Machinery Co., Ltd., Hitachi-GE Nuclear Energy, Ltd., Hitachi Industrial Equipment Systems Co., Ltd., Hitachi Koki Co., Ltd.,
Hitachi Via Mechanics, Ltd., Hitachi Automotive Products (USA), Inc., Hitachi Elevator (China) Co., Ltd., Hitachi Building Systems Co., Ltd., Hitachi Engineering & Services Co., Ltd.,
Hitachi Mobile Co., Ltd., Hitachi Plant Technologies, Ltd., Hitachi Power Europe GmbH

Digital Media & Consumer Products

UT (Ultra Thin) LCD TVs

Hitachi Maxell’s
prismatic lithium-ion
rechargeable batteries
featuring thin typeand high capacity

Hitachi Appliances’
Drum-type washer-dryer

Optical disk drives, Plasma TVs, LCD TVs, LCD projectors, mobile phones, room air conditioners, refrigerators, washing machines, information storage media, batteries, air-conditioning equipment
Hitachi Appliances, Inc., Hitachi Maxell, Ltd., Hitachi Media Electronics Co., Ltd., Hitachi Plasma Display Ltd., Hitachi Home Electronics (America), Inc.,
Shanghai Hitachi Household Appliances Co., Ltd.

High Functional Materials & Components

Hitachi Chemical’s
adhesive film
for protection of the surfaceof optical sheets

Hitachi Cable’s
halogen-free 150°C
heat-resistant power
supply harness for HEV

Hitachi Metal’s
neodymium magnet
NEOMAX®

Wires & cables, copper products, semiconductor materials, circuit boards and materials, organic/inorganic chemical products, synthetic resin products, display related materials, specialty steels,
magnetic materials and components, high-grade casting components and materials
Hitachi Cable, Ltd., Hitachi Chemical Co., Ltd., Hitachi Metals, Ltd.

Logistics, Services & Others

Financial Services

Hitachi Transport System’s
Keihin Distribution Center, a distribution center
equipped with security systems

Multifunctional IC card andelectronic toll collection auto card

General trading, logistics, property management
Chuo Shoji, Ltd., Hitachi Life, Ltd., Hitachi Transport System, Ltd., Nikkyo Create, Ltd.,
Hitachi America, Ltd., Hitachi Asia Ltd., Hitachi (China) Ltd., Hitachi Europe Ltd.

Leasing, loan guarantees, insurance services
Hitachi Capital Corporation, Hitachi Insurance Services, Ltd.

Major Products & Services Major Consolidated Subsidiaries (As of March 31, 2009) The products marked with an asterisk in the above table are those of Hitachi, Ltd.
(Notes) 1 Hitachi Kokusai Electric Inc. has become a consolidated subsidiary of Hitachi, Ltd. through a take-over bid to acquire its shares.
2 Hitachi Data Systems Corporation merged with Hitachi Data Systems Holding Corporation on March 31, 2009.
3 Hitachi Information & Telecommunication Systems Global Holding Corporation was established on April 1, 2008 to oversee Hitachi Data Systems, etc.
4 Hitachi Koki Co., Ltd. has become a consolidated subsidiary of Hitachi, Ltd. through a takeover bid to acquire its shares.
5 Hitachi Mobile Co., Ltd. changed its name to Hitachi Auto Parts & Service Co., Ltd. on April 1, 2009.
6 Fujitsu Hitachi Plasma Display Limited changed its name to Hitachi Plasma Display Limited on April 1, 2008.

090

Comparative Table with GRI Guidelines
In formulating the Hitachi Group Corporate Social Responsibility Report 2009, we referred to the
GRI Sustainability Reporting Guidelines 2006 (Global Reporting Initiative).
The following is a comparative table with the GRI Guidelines.
* Link to the pertinent sections of the CSR Report 2009 (PDF format) are provided.

Item

Index

Items Disclosed

Related Pages in This
Report and Other
References

Statement from the most senior decision maker of the organization(e.g., CEO, chair, or equivalent senior position) about the relevance ofsustainability to the organization and its strategy

Message from the CEO

pp. 2–3

Message from the Chief Environmental
Strategy Officer

Environmental Sustainability
Report 2009 : pp. 2–3

Description of key impacts, risks, and opportunities

Hitachi’s CSR Vision
CSR Promotion Activities > Results of CSR
Activities in Fiscal 2008 and Goals/Plans
for Fiscal 2009

pp. 5–8
pp. 37–38

Hitachi Group Corporate Environmental
Management

Environmental Sustainability
Report 2009 : pp. 6–7

Environmental Vision 2015
Achieving the Long-Term Plan:
Environmental Vision 2025

Environmental Sustainability
Report 2009 : pp. 8–9

1. Strategy and Analysis
1.1

1.2

2. Organizational Profile
2.1

Name of the organization

Company Profile

pp. 88–90

2.2

Primary brands, products, and/or services

Company Profile

pp. 88–90

2.3

Operational structure of the organization, including main divisions,operating companies, subsidiaries, and joint ventures

Financial Section

Annual Report 2009

2.4

Location of organization’s headquarters

Company Profile

pp. 88–90

2.5

Number of countries where the organization operates, and names ofcountries with either major operations or that are specifically relevant tothe sustainability issues covered in the reportCompany Profile

pp. 88–90

2.6

Nature of ownership and legal form

Financial Section

Annual Report 2009

2.7

Markets served (including geographic breakdown, sectors served, andtypes of customers/beneficiaries)

Financial Section

Annual Report 2009

2.8

Scale of the reporting organization, including:- Number of employees

Company Profile

pp. 88–90- Net sales (for private sector organizations) or net revenues (for public
sector organizations)

Financial Section

Annual Report 2009

- Total capitalization broken down in terms of debt and equity (for private
sector organizations)

Financial Section

Annual Report 2009

- Quantity of products or services provided

Financial Section

Annual Report 2009

- The location of, or changes in operations, including facility openings,
closings, and expansions

Financial Section

Annual Report 2009

- Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector organizations)

Financial Section

Annual Report 2009

Awards received in the reporting period

Toward a Sustainable Society> Environmental Activity Topics > NextGeneration Products and Services
Communication with Shareholders andInvestors > Results of External SRI
Assessments in Fiscal 2008
Employees: The Key to Hitachi’s Future> Diversity That Permits Individuality
to Shine > Taking Child Care Leave
with Understanding and Support in the
Workplace

p. 27
		
		
pp. 64–65

Stakeholder Evaluations

Environmental Sustainability
Report 2009 : p. 43

2.9

2.10

Significant changes during the reporting period regarding size, structure,or ownership including:

091

p. 79

3. Report Parameters
3.1

3.2

3.3

3.4

Reporting period (e.g., fiscal/calendar year) for information provided

CSR Activity Reporting Policy

p. 1

Environmental Activity Reporting Policy

Environmental Sustainability
Report 2009 : cover 2

CSR Activity Reporting Policy

p. 1

Environmental Activity Reporting Policy

Environmental Sustainability
Report 2009 : cover 2

CSR Activity Reporting Policy

p. 1

Environmental Activity Reporting Policy

Environmental Sustainability
Report 2009 : cover 2

Contact information

p. 103

Hitachi’s CSR Vision > Method for
Selecting Material Issues

pp. 7–8

Environmental Activity Reporting Policy

Environmental Sustainability
Report 2009 : cover 2

Hitachi Group Corporate Environmental
Management

Environmental Sustainability
Report 2009 : p. 6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased
facilities, joint ventures, suppliers) See GRI Boundary Protocol for further
guidance

CSR Activity Reporting Policy

p. 1

Environmental Activity Reporting Policy

Environmental Sustainability
Report 2009 : cover 2

State any specific limitations on the scope or boundary of the report

CSR Activity Reporting Policy

p. 1

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Environmental Activity Reporting Policy

Environmental Sustainability
Report 2009 : cover 2

Environmental Load Information Collection
Methods

Environmental Sustainability
Report 2009 : p. 12

Date of most recent previous report (if any)

Reporting cycle (annual, biennial, etc)

Contact point for questions regarding the report or its contents

Report Scope and Boundary
3.5

Process for defining report content, including:- Determining materiality- Prioritizing topics within the report- Identifying stakeholders the organization expects to use the report

3.6

3.7

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations

Company Profile

pp. 88–90

3.9

Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to thecompilation of the Indicators and other information in the report

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Environmental Load Information Collection
Methods

Environmental Sustainability
Report 2009 : p. 12

3.10

Explanation of the effect of any re-statements of information provided
in earlier reports, and the reasons for such re-statement (e.g., mergers/
acquisitions, change of base years/periods, nature of business,measurement methods)

Explanation is given if necessary tocomplement data descriptions

3.11

Significant changes from previous reporting periods in the scope,boundary, or measurement methods applied in the report

—

—

3.12

Table identifying the location of the Standard Disclosures in the reportComparative Table with GRI Guidelines

pp. 91–100

Policy and current practice with regard to seeking external assurance
for the report If not included in the assurance report accompanying
the sustainability report, explain the scope and basis of any external
assurance provided Also explain the relationship between the reportingorganization and the assurance provider(s)——Assurance
3.13

4. Governance, Commitments, and Engagement
Governance
4.1

Governance structure of the organization, including committees under thehighest governance body responsible for specific tasks, such as setting
strategy or organizational oversight

Corporate Governance > Strengthening
Governance

p. 33

4.2

Indicate whether the Chair of the highest governance body is also an
executive officer (and, if so, their function within the organization’s
management and the reasons for this arrangement)

Corporate Governance > Strengthening
Governance

p. 33

4.3

For organizations that have a unitary board structure, state the numberof members of the highest governance body that are independent and/or
non-executive members

Corporate Governance > Strengthening
Governance

p. 33

092

4.4

Mechanisms for shareholders and employees to provide recommendations
or direction to the highest governance bodyCompliance and Risk Management >Compliance Reporting System
Communication with Shareholders andInvestors

pp. 47–48
pp. 62–65

4.5

Linkage between compensation for members of the highest governancebody, senior managers, and executives (including departurearrangements), and the organization’s performance (including social andenvironmental performance)

Corporate Governance > Strengthening
Governance

p. 33

4.6

Processes in place for the highest governance body to ensure conflicts ofinterest are avoided.

Corporate Governance > Strengthening
GovernanceCompliance and Risk Management > Codeof Conduct regarding Corporate Ethics andCompliance

p. 33
p. 44

4.7

Process for determining the qualifications and expertise of the membersof the highest governance body for guiding the organization’s strategy on
economic, environmental, and social topics.

—

—

4.8

Internally developed statements of mission or values, codes of conduct,
and principles relevant to economic, environmental, and social
performance and the status of their implementation

Hitachi’s CSR Vision
Compliance and Risk Management > Codeof Conduct regarding Corporate Ethics andCompliance

pp. 5–8
p. 44

Hitachi Group Corporate Environmental
Management

Environmental Sustainability
Report 2009 : p. 6

Corporate Governance > Strengthening
Governance; Internal Control
CSR Promotion Activities > Striving to Be a
Global Leader in CSR
Respect for Human Rights

pp. 33–34
		
pp. 36–38
		
pp. 41–42

Environmental Management Framework

Environmental Sustainability
Report 2009 : pp. 14–15

Environmental Load Information Collection
Methods

Environmental Sustainability
Report 2009 : p. 12——

Evaluating Environmental Activities

Environmental Sustainability
Report 2009 : p. 15

Compliance and Risk Management > Risk
Management; Business Continuity Plans(BCP)

pp. 43, 50–51

Hitachi Group Corporate Environmental
Management

Environmental Sustainability
Report 2009 : pp. 6–7

Respect for Human Rights
Environmental Efforts > Hitachi GroupTeam Minus 6% Campaign (Japanese only)
Environmental Efforts > Hitachi Carries Out
a Campaign to Support Green Electricity
through 10,000-Person Commitment(Japanese only)

pp. 41–42
Hitachi, Ltd. Web site

Involvement in International
Standardization

Environmental Sustainability
Report 2009 : p. 24

4.9

4.10

Procedures of the highest governance body for overseeing theorganization’s identification and management of economic, environmental,
and social performance, including relevant risks and opportunities, andadherence or compliance with internationally agreed standards, codes ofconduct, and principles

Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social
performance

Commitments to External Initiatives
4.11

4.12

4.13

Explanation of whether and how the precautionary approach or principle isaddressed by the organization

Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes orendorses

Memberships in associations (such as industry associations) and/or
national/international advocacy organizations in which the organization:- Has positions in governance bodies- Participates in projects or committees- Provides substantive funding beyond routine membership dues
- Views membership as strategic

Hitachi, Ltd. Web site

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization

Worldwide Environmental Partnerships

Environmental Sustainability
Report 2009 : pp. 40–43

4.15

Basis for identification and selection of stakeholders with whom to engage

Worldwide Environmental Partnerships

Environmental Sustainability
Report 2009 : pp. 40–43

093

4.16

4.17

Approaches to stakeholder engagement, including frequency ofengagement by type and by stakeholder group

Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics
and concerns, including through its reporting

Hitachi’s CSR Vision
Toward a Sustainable Society> Hitachi’s Environmental Technologies 1& 2; Extending Our Collaborative Projects
Overseas
CSR Promotion Activities >SelfAssessment of CSR Activities
Compliance and Risk Management >Expert Opinion on Hitachi’s CSR Activities
and Hitachi’s Response; Preventing
Corruption through a High Standard of
Corporate Regulations
Employees: The Key to Hitachi’s Future> Diversity: A Base for the Healthy
Expression of Individuality; Women’s Summit Tokyo 2008;
Participation in the Work-Life Balance
Promotion Project

pp. 5–8
pp. 13–20, pp. 29–31

Independent Experts Comment on Our
Environmental Activities and Our Response

Environmental Sustainability
Report 2009 : p. 43

Worldwide Environmental Partnerships

Environmental Sustainability
Report 2009 : pp. 40–43

Hitachi’s CSR Vision > Method for
Selecting Material Issues

pp. 7–8

Worldwide Environmental Partnerships

Environmental Sustainability
Report 2009 : pp. 40–43

Company Profile
Working in Harmony with Local
Communities > Finding Solutions for Social
Issues; Breakdown of Funding for Social
Contribution Activities

pp. 88–90
p. 66

Environmental Accounting

Environmental Sustainability
Report 2009 : pp. 17–18

Toward a Sustainable Society

pp. 9–31

Environmental Accounting

Environmental Sustainability
Report 2009 : pp. 17–18

Hitachi Group Corporate Environmental
Management

Environmental Sustainability
Report 2009 : pp. 6–7

Preventing Global Warming

Environmental Sustainability
Report 2009 : pp. 32–33

pp. 38–39
		
pp. 45–47
		
		
		
p. 77

Management Approach and Performance Indicators
Item

Performance Index: Core (C) / Add (A)Economic
Economic Performance Indicators
C
EC1

C
EC2

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other community
investments, retained earnings, and payments to capital providers andgovernments

Financial implications and other risks and opportunities for theorganization’s activities due to climate change

C
EC3

Coverage of the organization’s defined benefit plan obligations

—

—

C
EC4

Significant financial assistance received from government——

Market presenceA
EC5

Range of ratios of standard entry level wage compared to local minimum
wage at significant locations of operation

—

—

C
EC6

Policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation

Collaborative Creation with Suppliers> Formulation of Supplier Guidelines >Guidelines for Procurement Activities >The Hitachi Supply-Chain CSR Deployment
Guidebookpp. 84–85

Collaborative Creation with Suppliers> Promoting the Use of Environmental
Management Systems by Suppliers >Green Procurement Guidelines

pp. 85–86

Promotion of Green Procurement

Environmental Sustainability
Report 2009 : p. 24

Promotion of Green Procurement

Environmental Sustainability
Report 2009 : p. 24

C
EC7

Procedures for local hiring and proportion of senior management hiredfrom the local community at locations of significant operation

094

Indirect economic impacts
C
EC8Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or pro
bono engagement

Working in Harmony with Local
Communities

pp. 66–74

A
EC9

Understanding and describing significant indirect economic impacts,
including the extent of impacts

Environmental Accounting

Environmental Sustainability
Report 2009 : pp. 17–18

Hitachi Group Corporate Environmental
Management

Environmental Sustainability
Report 2009 : p. 6

Message from the Chief Environmental
Strategy Officer

Environmental Sustainability
Report 2009 : pp. 2–3

Environmental Management Framework

Environmental Sustainability
Report 2009 : p. 14

Brief, organization-wide policy (or policies) that defines the organization’s
overall commitment

Toward a Sustainable Society> Hitachi’s Environmental Vision; Global
Warming Prevention toward 2025

pp. 9–11

The most senior position with operational responsibility

Message from the CEO
Executive Officer

pp. 2–3
Annual Report 2009

Message from the Chief Environmental
Strategy Officer

Environmental Sustainability
Report 2009 : pp. 2–3

Environmental Management Framework

Environmental Sustainability
Report 2009 : p. 14

Environmental
Management Approach

Materials
C
EN1

Materials used by weight or volume

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

C
EN2

Percentage of materials used that are recycled input materials——

Direct energy consumption by primary energy source

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Preventing Global Warming

Environmental Sustainability
Report 2009 : pp. 32–33

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Preventing Global Warming

Environmental Sustainability
Report 2009 : pp. 32–33

Preventing Global Warming

Environmental Sustainability
Report 2009 : pp. 32–33

Environmental Accounting

Environmental Sustainability
Report 2009 : pp. 17–18

Making Products More Energy Efficient

Environmental Sustainability
Report 2009 : p. 22

Environmental Accounting

Environmental Sustainability
Report 2009 : pp. 17–18

Environmentally Conscious Manufacturing
and Services: More Products

Environmental Sustainability
Report 2009 : pp. 25–30

Achieve emission neutral

Environmental Sustainability
Report 2009 : p. 7

Environmental Accounting

Environmental Sustainability
Report 2009 : pp. 17–18

Making Products More Energy Efficient

Environmental Sustainability
Report 2009 : p. 22

Environmentally Conscious Manufacturing
and Services: More Products

Environmental Sustainability
Report 2009 : pp. 25–30

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Water Resource Conservation

Environmental Sustainability
Report 2009 : p. 35

Energy
C
EN3

C
EN4

A
EN5

A
EN6

A
EN7

Indirect energy consumption by primary source

Energy saved due to conservation and efficiency improvements

Initiatives to provide energy-efficient or renewable energy based products
and services, and reductions in energy requirements as a result of these
initiatives

Initiatives to reduce indirect energy consumption and reductions achieved

Water
C
EN8

Total water withdrawal by source

095

A
EN9

A
EN10

Water sources significantly affected by withdrawal of water

Percentage and total volume of water recycled and reused

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Water Resource Conservation

Environmental Sustainability
Report 2009 : p. 35

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Water Resource Conservation

Environmental Sustainability
Report 2009 : p. 35

Biodiversity
C
EN11

Location and size of land owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protected
areas

—

—

C
EN12

Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas

Working in Harmony with Local
Communities > Environmental Initiatives

pp. 69–70

Regional Environmental Protection

Environmental Sustainability
Report 2009 : pp. 41–42

A
EN13

Habitats protected or restored

Regional Environmental Protection

Environmental Sustainability
Report 2009 : pp. 41–42A
EN14Strategies, current actions, and future plans for managing impacts on
biodiversity

Hitachi Group Corporate Environmental
Management

Environmental Sustainability
Report 2009 : pp. 6–7

Regional Environmental Protection

Environmental Sustainability
Report 2009 : pp. 41–42——

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Preventing Global Warming

Environmental Sustainability
Report 2009 : pp. 32–33

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Preventing Global Warming

Environmental Sustainability
Report 2009 : pp. 32–33

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Preventing Global Warming

Environmental Sustainability
Report 2009 : pp. 32–33

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Preventing Global Warming

Environmental Sustainability
Report 2009 : pp. 32–33

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Managing Chemical Substances

Environmental Sustainability
Report 2009 : pp. 35–36

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Water Resource Conservation

Environmental Sustainability
Report 2009 : p. 35

Environmental Load Data for Corporate
Activities

Environmental Sustainability
Report 2009 : pp. 10–11

Using Resources Efficiently

Environmental Sustainability
Report 2009 : p. 34–35

A
EN15

Number of IUCN Red List species and national conservation list species
with habitats in areas affected by operations, by level of extinction risk

Emissions, Effluents, and Waste
C
EN16

C
EN17

C
EN18

C
EN19

C
EN20

C
EN21

C
EN22

Total direct and indirect greenhouse gas emissions by weight

Other relevant indirect greenhouse gas emissions by weight

Initiatives to reduce greenhouse gas emissions and reductions achieved

Emissions of ozone-depleting substances by weight

NO, SO, and other significant air emissions by type and weight

Total water discharge by quality and destination

Total weight of waste by type and disposal method

C
EN23

Total number and volume of significant spills

Rigorous Pollution Control

Environmental Sustainability
Report 2009 : p. 37

A
EN24

Weight of transported, imported, exported, or treated waste deemedhazardous under the terms of the Basel Convention Annex I, II, III, and VIII,
and percentage of transported waste shipped internationally

—

—

A
EN25

Identity, size, protected status, and biodiversity value of water bodies
and related habitats significantly affected by the reporting organization’sdischarges of water and runoff

—

—

096

Products and Services
A
EN26

A
EN27

Initiatives to mitigate environmental impacts of products and services, andextent of impact mitigation

Expanding Our Eco-Product Lineup

Environmental Sustainability
Report 2009 : pp. 20–24

Environmentally Conscious Manufacturing
and Services: More Products

Environmental Sustainability
Report 2009 : pp. 25–30

Increase in Resource Recycling from Used
Products

Environmental Sustainability
Report 2009 : p. 23

Products and Packages Recycling

Hitachi, Ltd. Web site

Monetary value of significant fines and total number of non-monetary
sanctions for non- compliance with environmental laws and regulations

Rigorous Pollution Control

Environmental Sustainability
Report 2009 : p. 37

Significant environmental impacts of transporting products and othergoods and materials used for the organization’s operations, andtransporting members of the workforce

Reducing CO2 Emissions fromTransportation

Environmental Sustainability
Report 2009 : p. 33

Total environmental protection expenditures and investments by typeEnvironmental Accounting

Environmental Sustainability
Report 2009 : pp. 17–18

Brief, organization-wide policy (or policies) that defines the organization’s
overall commitment

Message from the CEO
Hitachi’s CSR Vision

pp. 2–3
pp. 5–8

The most senior position with operational responsibility

Employees: The Key to Hitachi’s Future >Individuals and the Team Create Dynamism
Together
Executive Officer

p. 78

Percentage of products sold and their packaging materials that arereclaimed by category

ComplianceC
EN28
Transport
A
EN29
OverallA
EN30

Labor Practices and Decent WorkManagement Approach

Annual Report 2009

Employment
C
LA1

Total workforce by employment type, employment contract, and region

Company Profile

pp. 88–90

CLA2

Total number and rate of employee turnover by age group, gender, andregion

—

—

A
LA3

Benefits provided to full-time employees that are not provided to temporary
or part-time employees, by major operations——

Labor/Management Relations
C
LA4

Percentage of employees covered by collective bargaining agreements

—

—

C
LA5

Minimum notice period(s) regarding operational changes, including
whether it is specified in collective agreements——

Occupational Health and Safety
A
LA6

Percentage of total workforce represented in formal joint management–
worker health and safety committees that help monitor and advise on
occupational health and safety programs

—

—

C
LA7

Rates of injury, occupational diseases, lostdays, and absenteeism, and number of work- related fatalities by region

Employees: The Key to Hitachi’s Future >Employee Health and Safety > Trends in
the Occupational Accident Rate

p. 81

C
LA8

Education, training, counseling, prevention, and risk-control programs inplace to assist workforce members, their families, or community members
regarding serious diseases

Compliance and Risk Management> Business Continuity Plans (BCP) >Formulation of Novel Influenza Action Plan
and BCPs
Employees: The Key to Hitachi’s Future >A Safe, Pleasant Workplace > Promoting
Mental Healthpp. 50–51

—

—

C
LA9

Health and safety topics covered in formal agreements with trade unions

				
pp. 82–83

Training and Education
C
LA10

Average hours of training per year per employee by employee category

Environmental Education

Environmental Sustainability
Report 2009 : p. 17

A
LA11

Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing career
endings

Employees: The Key to Hitachi’s Future >Challenge: Supports Growth > Supporting
Career Development

p. 76

097

A
LA12

Percentage of employees receiving regular performance and careerdevelopment reviews

Employees: The Key to Hitachi’s Future >Challenge: Supports Growth

pp. 75–77

Diversity and Equal Opportunities
C
LA13

Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership, andother indicators of diversity

Employees: The Key to Hitachi’s Future> Diversity: A Base for the Healthy
Expression of Individuality

pp. 77–80

C
LA14

Ratio of basic salary of men to women by employee category——

Respect for Human Rights > Human Rights
PolicyCompliance and Risk Management > Codeof Conduct regarding Corporate Ethics andCompliance

p. 41

Executive Officer

Annual Report 2009

Human Rights
Management Approach
Brief, organization-wide policy (or policies) that defines the organization’s
overall commitment

The most senior position with operational responsibility

pp. 43–44

Investment and Procurement Practices
C
HR1

Percentage and total number of significant investment agreements that
include human rights clauses or that have undergone human rights
screening

—

—

C
HR2

Percentage of significant suppliers and contractors that have undergone
screening on human rights and actions taken

Collaborative Creation with Suppliers

pp. 84–87

A
HR3

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage of employees trained

Respect for Human Rights > Raising
Awareness of Human Rights

p. 42

—

—

—

—

Compliance and Risk Management > Codeof Conduct regarding Corporate Ethics andCompliance

pp. 43–44

Compliance and Risk Management > Codeof Conduct regarding Corporate Ethics andCompliance

pp. 43–44

—

—

—

—

Compliance and Risk Management > Codeof Conduct regarding Corporate Ethics andCompliance
Working in Harmony with Local
Communities > Social Contribution
Philosophy and Policy

pp. 43–44

Compliance and Risk Management >Expert Opinion on Hitachi’s CSR Activities
and Hitachi’s Response
Executive Officer

pp. 45–46

Non-Discrimination
C
HR4

Total number of incidents of discrimination and actions taken

Freedom of Association and Collective BargainingC
HR5Operations identified in which the right to exercise freedom of associationand collective bargaining may be at significant risk, and actions taken to
support these rights

Child LaborC
HR6Operations identified as having significant risk for incidents of child labor,
and measures taken to contribute to the elimination of child labor

Forced and Compulsory LaborC
HR7Operations identified as having significant risk for incidents of forced orcompulsory labor, and measures to contribute to the elimination of forced
or compulsory labor

Security Practices
A
HR8

Percentage of security personnel trained in the organization’s policies
or procedures concerning aspects of human rights that are relevant tooperations

Indigenous Rights
A
HR9

Total number of incidents of violations involving rights of indigenous people
and actions taken

Society
Management Approach
C
SO

C
SO

Brief, organization-wide policy (or policies) that define the organization’s
overall commitment

The most senior position with operational responsibility

Community

098

			
p. 66

			
Annual Report 2009

C
SO1Nature, scope, and effectiveness of any programs and practices thatassess and manage the impacts of operations on communities, including
entering, operating, and exiting

—

—

C
SO2

Percentage and total number of business units analyzed for risks related
to corruption

Compliance and Risk Management >Preventing Recurrences of Antimonopoly
Law Violations

p. 45

C
SO3

Percentage of employees trained in organization’s anti-corruption policies
and proceduresCompliance and Risk Management >Global Push to Stop Corruption

p. 46–47

C
SO4

Actions taken in response to incidents of corruption

Compliance and Risk Management >Preventing Recurrences of Antimonopoly
Law Violations

p. 45

Environmental Efforts > Hitachi GroupTeam Minus 6% Campaign (Japanese only)
Environmental Efforts > “One Kilogram Per
Person Per Day CO2 Reduction” Support
Campaign (Japanese only)

Hitachi, Ltd. Web site——

Compliance and Risk Management >Preventing Recurrences of Antimonopoly
Law Violations

p. 45

Compliance and Risk Management >Preventing Recurrences of Antimonopoly
Law Violations

p. 45

Rigorous Pollution Control

Environmental Sustainability
Report 2009 : p. 37

Misleading Representations ofRefrigerators and Our Response

p. 4

Corruption

Public Policy
C
SO5

A
SO6

Public policy positions and participation in public policy development andlobbying

Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country

Hitachi, Ltd. Web site

Anti-Competitive Behavior
C
SO7

Total number of legal actions for anti-competitive behavior, anti-trust, andmonopoly practices and their outcomes

ComplianceC
SO8Monetary value of significant fines and total number of non-monetary
sanctions for non- compliance with laws and regulations

Product Responsibility
Management ApproachC
PR

Brief, organization-wide policy (or policies) that defines the organization’s
overall commitment

Improving Monozukuri and Service >Ensuring Product and Service Quality

pp. 53–57

CPR

The most senior position with operational responsibility

Executive Officer

Annual Report 2009

Customer Health and Safety
C
PR1

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage of significant
products and services categories subject to such procedures

Improving Monozukuri and Service >Ensuring Product and Service Quality >Improving Product Safety: Technologies

p. 55

A
PR2

Total number of incidents of non-compliance with regulations andvoluntary codes concerning health and safety impacts of products andservices during their life cycle, by type of outcomes

Improving Monozukuri and Service >Ensuring Product and Service Quality >Improving Product Safety: Technologies

p. 55

Product and Service LabelingC
PR3

Type of product and service information required by procedures,and percentage of significant products and services subject to suchinformation requirements

Expanding Our Eco-Product Lineup

Environmental Sustainability
Report 2009 : pp. 20–24

A
PR4

Total number of incidents of non-compliance with regulations andvoluntary codes concerning product and service information and labeling,by type of outcomes

Misleading Representations ofRefrigerators and Our Response

p. 4

A
PR5

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction

Improving Monozukuri and Service >Building Customer Feedback into Our
Products

pp. 57–59

Marketing Communications
C
PR6

Programs for adherence to laws, standards, and voluntary codes related
to marketing communications, including advertising, promotion, andsponsorship

Compliance and Risk Management > Codeof Conduct regarding Corporate Ethics andCompliancep. 43–44

A
PR7

Total number of incidents of non-compliance with regulations andvoluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes

Misleading Representations ofRefrigerators and Our Response

p. 4

099

Customer Privacy
A
PR8

Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data——

Misleading Representations ofRefrigerators and Our Responsep. 4ComplianceC
PR9

Monetary value of significant fines for non- compliance with laws andregulations concerning the provision and use of products and services

Hitachi, Ltd. annual report
http://www.hitachi.com/IR-e/library/annual/index.html
Hitachi Group Environmental Sustainability Report 2009(scheduled to be published on September 17th, 2009)http://www.hitachi.com/csr/download/index.html
Hitachi, Ltd. environmental activities
http://www.hitachi.com/environment/
Hitachi Appliances, Inc. environmental activities
http://www.hitachi-ap.com/env_report_e.pdf

100Indexes by Category
To facilitate searching for information on CSR activities, indexes are provided according to the“Policy, Vision, and Guidelines” and “Result Data” categories.
Policy, Vision, and Guidelines
Category

Title

Items Disclosed

Hitachi’s CSR Vision

Related Pages in This
Report and Other
References

Fundamental Credop. 5

Hitachi Group Vision

p. 5

CSR Policy of the Hitachi Group

pp. 5–6

Toward a Sustainable Society

Hitachi Action Guidelines for Environmental
Conservation

p. 21

CSR
Management

The Corporate Ethics and ComplianceHandbookp. 44

Basic Approach to Information Security
Governancep. 48

Personal Information Protection Policy

pp. 48–49

Three Rules for Preventing Leakage ofConfidential Information

p. 49

Formulation of Novel Influenza Action Plan
and BCPs

pp. 50–51

Customer Satisfaction Management
Guidelines

p. 57

The Hitachi Group’s Approach to Universal
Design; UD Guidelines

pp. 59–60

Disclosure Policyp. 62

Basic Policy for Prevention of Takeovers

p. 64

Working in Harmony with Local Communities

Social Contribution Philosophy and Policyp. 66

Employees: The Key to Hitachi’s Future

Basic Attitudes to HIV/AIDS

p. 83

Collaborative Creation with Suppliers

Guidelines for Procurement Activities

pp. 84–85

The Hitachi Supply-Chain CSR Deployment
Guidebookp. 85

Green Procurement Guidelines

p. 86

SocialPerformance

Compliance and Risk Management

Improving Monozukuri and Service

Communication with Shareholders and Investors101Result Data
Category

Title

Items Disclosed

Related Pages in This
Report and Other
References

CSR
Management

Corporate Governance

Executive Compensation

pp. 33–34

CSR Promotion Activities

Results of CSR Activities in Fiscal 2008
and Goals/Plans for Fiscal 2009

pp. 37–38

SocialPerformance

Communication with Shareholders and Investors

Self-Assessment Results (Hitachi, Ltd.)

p. 39

Trends in Shareholder Composition

p. 64

Results of External SRI Assessments in
Fiscal 2008

p. 65

Working in Harmony with Local Communities

Breakdown of Funding for Social
Contribution Activities

p. 66

Employees: The Key to Hitachi’s Future

Male/Female Employee Ratio

p. 78

Ratio of New Male/Female Graduate
Recruits in Fiscal 2008

p. 78

Trend in the Number of Female Managers

p. 79

Trend in the Number of People Taking Child
Care Leave

p. 79

Trend in the Number of People Using
Nursing Care Leave

p. 79

Trend in the Number of People Working
Shorter Hours

p. 79

Trend in the Employment Ratio for
Physically and Mentally Disabled People

p. 80

Trend in the Occupational Accident Ratep. 81

Results of Surveys Conducted to Promote
CSR among Suppliersp. 85Collaborative Creation with Suppliers

102Inquiries:
Hitachi, Ltd.
CSR Promotion Department, Corporate Communications Division (For inquiries on this report orCSR activities overall)
1-6-6 Marunouchi, Chiyoda-ku, Tokyo, 100-8280, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4564-1454 http://www.hitachi.com/csr/
Environmental Strategy Office (For inquiries on environmental activities)
1-6-1 Marunouchi, Chiyoda-ku, Tokyo, 100-8220, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4235-5835 http://www.hitachi.com/environment/
On the cover: The cover photo is from Moanalua Garden Park (Monkey Pod tree), Oahu Island, Hawaii.
This tree has become known as the “Hitachi Tree” through television commercials over many years.
It represents the qualities that we like to emphasize at Hitachi—synergy, growth, and strength. (Photo: Tor Johnson)

103