Hitachi Group Corporate Social Responsibility Report 2006

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percent used pulp.

Hitachi Group
Corporate Social Responsibility Report 2006

About the Hitachi Group CSR Report 2006
This report describes the corporate social responsibility (CSR) activities ofthe Hitachi Group in order to explain to our many stakeholders the Group’s
philosophy and activities as clearly and accurately as possible.
In addition to outlining the framework, systems, and results, this year’s
report focuses on Hitachi’s CSR activities through the implementation and theexperience steadily accumulated since the company’s foundation.
The first section summarizes the Hitachi Group’s CSR activities andgovernance. In the second section, “Next Society,” we report on the social
dimension. In the third section, “Next Eco,” we report on our environmental
activities.
Of special note in fiscal 2005 was the fruition of efforts to develop environmentally friendly products and services, such as our energy-conservation
service business (ESCO/Energy-Service Company) and the Eco Cute, a highoutput integral natural refrigerant (CO2) heat pump hot-water heater, bothof which have won critical acclaim. Further details regarding these and otherprojects are contained within this report.
We hope this report will serve to further your understanding of the CSR
efforts of the Hitachi Group, and facilitate our dialogue with you.

Scope of This Report
Period: The main period covered is fiscal 2005 (April 1, 2005 through March 31, 2006)
Companies: Companies covered under consolidated reporting of the Hitachi Group
Scope of data:
Financial data
Hitachi, Ltd. and 932 consolidated subsidiaries (including modified entities towhich the equity method of consolidated reporting applies) and 158 affiliatedcompanies that use the equity method
Social data
Scope of data indicated under each item
Environmental data Hitachi, Ltd. and 274 consolidated subsidiaries (including companies outside Japan)
Related Reports
We report on the financial performance of Hitachi, Ltd. in the “Financial Highlights” and Annual Report.
Thirty Hitachi Group companies and 10 production facilities publish their own reports on environmental
activities and social dimensions. In addition, 44 Hitachi Group companies and three production facilities
provide information on their websites. (For details, please visit “Information Disclosure via the Internet, bySite” on the “hitachi green web” site.)
Guidelines Referred to in Preparing This Report“Environmental Reporting Guidelines” (FY 2003 version), Ministry of the Environment, Japan“Environmental Performance Indicators Guideline for Organizations” (FY 2002 version), Ministry of theEnvironment, Japan“Environmental Reporting Guidelines 2001—With Focus on Stakeholders,” Ministry of Economy, Tradeand Industry, Japan“Sustainability Reporting Guidelines 2002,” Global Reporting Initiative* This CSR Report will be published on an annual basis.

Inquiries:
Hitachi, Ltd.
(For inquiries on this report or CSR activities overall)
CSR Promotion Department, Corporate Communications Division
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/(For inquiries on environmental activities)
Corporate Environmental Policy Division
1–18–13 Soto-Kanda, Chiyoda-ku, Tokyo, 101-8608, Japan
Tel: +81-3-3258-1111, Fax: +81-3-4564-4074
http://greenweb.hitachi.co.jp/en/
On the cover:
The cover photo is from Moana Loa Garden Park (Monkey Pod tree), Oahu Island,
Hawaii. This tree has become known as the “Hitachi Tree” through televisioncommercials over many years. The tree represents an abundance of the qualities
that we like to emphasize at Hitachi—Synergy, Growth, and Strength.

Contents
2

Company Profile

		 Economic Performance		 Hitachi Group Profile
4

Messages from Hitachi’s Top Executives

6

Corporate Governance and Group Management

7

Compliance and Risk Management

9

CSR Promotion Activities of the Hitachi Group13

Hitachi CSR Activities

Next Society
Creating the Future with Our Stakeholders
22

Customers and Hitachi

26

Working in Harmony with Society

31Partnership with Shareholders and Investors

32

Working Together with Suppliers

34

Employees Make Hitachi What It Is

37

Hitachi Global CSR Activities

Next Eco
Aiming for Sustainable “Monozukuri” (Design, Manufacture, and Repair of Products)
42

Hitachi Group’s Environmental Action Plan

48

Eco-Mind & Global Environmental Management

52

Environmental Impact Data for Corporate Activities (FY 2005)

54

Next-Generation Products and Services

59

Super Eco-Factories & Offices

65

Worldwide Environmental Partnerships

66

Dialogue with the Experts

68

Data on hitachi green web

Symbols Used in This Report
For technical terms and proper nouns with a dagger (†), further explanations are given inside columns on the same or following pages.
W E B : This symbol indicates the title and address of a related Internet website.
Graphs and other visuals use universal design for readers with color-impaired vision.
Customer and company names may be abbreviated or referred to without their titlesin this report.

Company Profile

Hitachi Group Profile

Corporate Name: Hitachi, Ltd.
Incorporated: Incorporated February 1, 1920 (founded in 1910)
Head Office: 1– 6 – 6 Marunouchi, Chiyoda-ku, Tokyo 100 – 8280, Japan
Representative: Kazuo Furukawa, President and Director

Hitachi, Ltd. and the Hitachi Group make up a corporate groupconsisting of a total of 1,091 companies, including 476 consolidated subsidiaries within Japan, and 456 overseas, and 80
affiliated companies in Japan that use the equity method and 78
overseas. In terms of business activities, there are seven business units, as indicated on Page 3, with revenues of about 9.5
trillion yen. The Group employs about 350,000 employees.

Asia

EuropeNorth America

Number of companies: 251
Number of employees: 86,796
Revenues: 1,619,235 million yen

Number of companies: 88
Number of employees: 5,354
Revenues: 748,480 million yen

Number of companies: 75
Number of employees: 15,514
Revenues: 968,957 million yen

China as a subset of
the Asia totals:
Number of companies: 133
Number of employees: 40,359
Revenues: 736,751 million yen

Japan
Number of companies: 477
Number of employees: 242,659
Revenues: 5,825,156 million yen

Other
Number of companies: 42
Number of employees: 5,556
Revenues: 302,973 million yen

Economic Performance
As of March 31, 2006

Period: Fiscal year ending March 31, 2006 (consolidated basis)
Revenues:

Capital Stock: 282,033 million yen
Number of employees (unconsolidated basis): 41,157
Number of employees (consolidated basis): 355,879
Number of consolidated subsidiaries:
932 (Japan: 476, overseas: 456)
Number of affiliated companies that use the equity method:
158 companies (Japan: 80, overseas: 78)

 9,464.8 billion yen (105% compared with the previous year)
Operating income (loss):
256.0 billion yen (92% compared with the previous year)
Capital investment:954.7 billion yen (99% compared with the previous year)
R&D expenditure: 405.0 billion yen (104% compared with the previous year)
Overseas output as a percentage of consolidated net sales: 20%
See website for economic performance reports.

http://www.hitachi.co.jp/IR/index.html

Financial Results (consolidated basis)
Revenues and Operating Income (loss)

Revenues by Industry Segment in FY 2005 (billions of yen)
Revenues
Operating income (loss)

Revenues(billions of yen)

10,0008,000

7,993.7

8,632.4

9,027.0

9,464.8

1,000

600

4,000

400

279.0
152.9

0

2001
-117.4

2002

Financial Services
517.9 (5%)

Logistics, Services & Others
1,214.7 (11%)

Information
Telecommunication
Systems
2,360.9 (21%)

800

6,000

2,000



8,191.7

Operating income (loss)(billions of yen)

184.8

2003

256.0

High Functional Materials &Components
1,600.2 (15%)

Electronic Devices
1,204.4 (11%)

200
2004

2005 (FY)0-200

Digital Media &Consumer Products
1,305.6 (12%)

Power & Industrial Systems
2,805.1 (25%)

Total Sales by Industry: 11,009 billion yen
Consolidated Net Sales: 9,464 billion yen

Information & Telecommunication Systems

This security PC ✽ has an in-built
finger vein authentication system,
but no internal HDD

Electronic paper display ✽This blade system ✽ integrates
server, communications, storage andmanagement software functions

Systems integration, outsourcing, software, hard disk drives, disk array subsystems, servers, mainframes, personal computers, telecommunication equipment, automatic teller machines (ATMs)
Hitachi Communication Technologies, Ltd., 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 Systems, Ltd., Hitachi Software Engineering Co., Ltd., Hitachi Systems & Services, Ltd.,
Hitachi Data Systems Holding Corp.

Electronic Devices

Exposure system
for large scale glass
substrate by Hitachi
High-Technologies
Corporation

Small and medium-sized LCD
by Hitachi Displays, Ltd.

Open MRI system
by Hitachi Medical Corp.

Liquid crystal displays (LCD), semiconductor manufacturing equipment, testing and measurement, medical electronics equipment, semiconductors
Hitachi Displays, Ltd., Hitachi High-Technologies Corporation, Hitachi Medical Corp., Hitachi Electronic Devices (USA), Inc., Hitachi Semiconductor Singapore Pte. Ltd.

Power & Industrial Systems

Ultra-large hydraulicexcavators by Hitachi
Construction MachineryCo., Ltd.

Elevators ✽ supplied to
AKIHABARA UDX

Train ✽ supplied to
TSUKUBA EXPRESS

Nuclear power plants, thermal power plants, hydroelectric power plants, industrial machinery and plant construction, automotive products, construction machinery, elevators, escalators, rail vehicles,
air-conditioning equipment
Babcock-Hitachi K.K., Hitachi Air Conditioning Systems Co., Ltd.*1, Hitachi Construction Machinery Co., Ltd., Hitachi Industrial Equipment Systems Co., Ltd., Hitachi Industries Co., Ltd.*2,
Hitachi Kiden Kogyo, Ltd.*3, Hitachi Via Mechanics, Ltd., Japan Servo Co., Ltd., Guangzhou Hitachi Elevator Co., Ltd., Hitachi Automotive Products (USA) , Inc., Hitachi Building Systems Co., Ltd.,
Hitachi Engineering Co., Ltd.*3, Hitachi Engineering & Services Co., Ltd.*3, Hitachi Plant Engineering & Construction Co., Ltd.*2

Digital Media & Consumer Products

Hi-Vision Plasma TV ✽Refrigerator
by Hitachi Home & Life Solutions, Inc.*1

Recordable DVD
by Hitachi Maxell, Ltd.

Optical disk drives, televisions, Plasma display, LCD projectors, mobile phones, room air conditioners, refrigerators, washing machines, information storage media, batteries
Fujitsu Hitachi Plasma Display Limited, Hitachi Home & Life Solutions, Inc.*1, Hitachi Maxell, Ltd., Hitachi Media Electronics Co., Ltd., Hitachi Home Electronics (America), Inc.,
Shanghai Hitachi Household Appliances Co., Ltd.

High Functional Materials & Components

Die bonding materials
for semiconductors
by Hitachi Chemical Co., Ltd.

Amorphous alloys
for transformers
by Hitachi Metals, Ltd.

TAB tapes for highdensity mountingof semiconductors
by Hitachi Cable, Ltd.

Wires & cables, copper products, semiconductor-related materials, printed wiring boards and related materials, organic/inorganic chemical products, plastic molded products, LCD-related materials,
specialty steels, magnetic materials, ductile cast-iron products, forged and cast-steel products
Hitachi Cable, Ltd., Hitachi Chemical Co., Ltd., Hitachi Metals, Ltd.

Logistics, Services & Others

Financial Services

Multifunctional IC card andelectronic tollcollection cardby Hitachi Capital Corporation

Hitachi Transport System, Ltd. operates
a third-party logistics solutions business (see p. 64)
General trading, transportation, property management
Chuo Shoji, Ltd., Hitachi Life, Ltd., Hitachi Mobile Co., Ltd., Hitachi Transport System, Ltd.,
Nikkyo Create, Ltd., Hitachi America, Ltd., Hitachi Asia Ltd., Hitachi China Ltd., Hitachi Europe GmbH

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

Major Products & Services
Major Consolidated Subsidiaries ✽ in this table indicates Hitachi, Ltd. products.
*1: Hitachi Air Conditioning Systems Co., Ltd. and Hitachi Home & Life Solutions, Inc. merged on April 1, 2006. The name of the newly merged company is Hitachi Appliances, Inc.
*2: On April 1, 2006, Hitachi Plant Engineering & Construction Co., Ltd. took over part of the operations of Hitachi, Ltd.’s Industrial Systems Division through a corporate split agreement, merging with Hitachi Kiden Kogyo, Ltd. and Hitachi
Industries Co., Ltd. The name of the newly merged company is Hitachi Plant Technologies, Ltd.
*3: On April 1, 2006, Hitachi Engineering & Services Co., Ltd. took over the operations of the electrical engineering division of Hitachi Engineering Co., Ltd. through a corporate split agreement. On the same day, Hitachi Engineering Co., Ltd.
merged with Hitachi Information & Control Systems, Inc.

Company Profile Messages from Hitachi’s Top Executives

Looking toward Our Centennial:
Contributing to Society through Technology
Based on the Hitachi Spirit
Etsuhiko Shoyama
Chairman and Director
Hitachi, Ltd.



Hitachi, Ltd. will celebrate its centennial in 2010. Since its establishment as anelectrical repair shop, Hitachi, Ltd. has continued to pursue high ethics andits founding philosophy of “contributing to society through the developmentof superior, original technology and products.” We have constantly grappledwith the social issues faced by Japan and the world and have worked toresolve them through our unique technology and businesses. We have beensuccessful in gaining the confidence of society in every age precisely because
we have steadily addressed issues based on Hitachi’s founding spirit which canbe captured in the words: “harmony,” “sincerity,” and “pioneering spirit.”
Our philosophy will not change no matter how much the times or thesocial environment do. As we look toward our centennial, we will remember
our roots and continue to be a company that provides new value by resolving
fundamental issues faced by the global community based on our founding
philosophy and spirit. This very stance is the basic thinking behind the
Hitachi Group’s CSR.
“Contributing to society through the development of technology” isnot simply conducting state-of-the-art R&D and delivering superior products and services. One of the missions of the Hitachi Group is to share withsociety the knowledge and experience we have gained through technology
development.
It is of particular concern that children today are moving away from thesciences, and Hitachi feels a strong need to develop creative human resources
and nurture a scientific spirit. Many people visited the Hitachi Group Pavilion
at the 2005 World Exposition in Aichi, Japan. Through our main attraction on
the theme of “Nature Contact—Interacting with endangered animals broughtback to life by Hitachi IT,” we hope children had a chance to think about
the importance of protecting biodiversity and the global environment and tofurther develop their sensibilities, curiosity, and spirit of inquiry.
Contributing to society in various ways for the promotion of science andtechnology will continue to be an important element in the Hitachi Group’s
CSR activities in the future.
I believe CSR is the very essence of management and the embodimentof Hitachi’s founding philosophy. Through CSR activities, all employees share
Hitachi’s noble spirit and sense of mission and raise the value of society byaddressing issues one by one in a dedicated, steady, and consistent way.
In line with Hitachi’s founding spirit, the entire Hitachi Group will joinhands to promote CSR activities together so that we can earn even greater
trust from all our stakeholders in the future.

Messages from Hitachi’s Top Executives

Implementing CSR by Demonstrating Our“Truly Collective Strengths”
Since its founding, Hitachi has pioneered cutting-edge fields in step with thetimes while focusing on business that supports social infrastructure. Hitachi’sfounding philosophy of “contributing to society through the development ofsuperior, original technology and products” and its founding spirit captured
in the words “harmony,” “sincerity,” and “pioneering spirit” have been passed
down to us as our corporate DNA and remain very important, even in thisday and age.
To ascertain rapidly global changes and new social issues quickly from thestakeholders’ standpoint and then spearhead social innovation, the CSR Policyof the Hitachi Group was established in March 2005 and full-scale CSR activities launched. In this first year, we focused on creating a group-wide framework
to promote understanding of CSR and instill the CSR Policy among both management and employees. This report describes some of these activities.
It will still take some time before every employee can talk about CSR
in his or her own words, but our CSR activities are not something transient;
they are something that we are dedicated to promoting over time. We ask
you to keep submitting your comments and suggestions regarding our activities in this area.
Today the world faces increasingly complex and diverse issues, including environmental conservation, physical security issues, and improvementof the quality of life, and fundamental solutions to these issues are called
for. To this end, the Hitachi Group’s mission is to demonstrate its truly collective strengths and develop its activities by bringing together its uniqueand wide-ranging operations and the technology and expertise developed
over its long history.
Featured in this report are Hitachi’s finger-vein authentication system
and Kokoro Gatari, a communication device for patients suffering from severe
amyotrophic lateral sclerosis (ALS; also known as Lou Gehrig’s disease),
which can judge whether someone wants to say yes or no by measuringchanges in cerebral blood flow. These two devices represent the applicationof optical topography, one of the Hitachi Group’s core technologies, to thefields of information security and social welfare and are good examples ofHitachi’s creating new value by bringing our technological strengths to bearon social issues and needs and seeking solutions.
As we further enhance understanding of CSR throughout the Groupand raise the level of our efforts, we will link our CSR activities to social
contributions through our business by offering new proposals for safe andsecure social infrastructure and environmental conservation.
When I was appointed president in April 2006, I proposed “trust, challenge, and leap forward” as catchwords that I would like to share with all our
employees. These catchwords are my way of expressing the founding spiritof Hitachi in today’s parlance. Each Hitachi Group employee is encouraged
to tackle difficult “challenges” and “leap forward” with society as they earn
the “trust” of stakeholders. I look forward to leading this effort.

Kazuo Furukawa
President and Director
Hitachi, Ltd.



CSR

Management

Corporate Governance andGroup Management
Hitachi, Ltd. and each company of the Hitachi Group are working toenhance corporate governance to improve management response time,increase transparency, and earn the trust of our stakeholders.

†2 SO Act (Sarbanes-Oxley Act)
U.S. legislation enacted in July
2002. Article 404 of the law
mandates company management
the responsibility of creating andmaintaining internal controls related
to financial reporting, and also
requires that the controls be assessed by independent auditors. To
assure the reliability of consolidated
financial reporting, internal control
must be applied group wide.
†3 COSO Framework
An internal control framework
advocated by the COSO (Committeeof Sponsoring Organizations of theTreadway Commission) and adopted
by a majority of U.S. corporations.

Strengthening Governance

COSO framework. We have also gone beyond

Since switching to a Committee System †1 ofthe legal requirements to enhance transparency

governance in June 2003, Hitachi, Ltd. has been

and credibility and strengthen our management

working to enhance corporate governance andinfrastructure. Besides our improvement of theinternal control to increase speed and flexibility ofquality of our internal controls, in fiscal 2005,

business operations and strengthen supervision.

we established internal control using a group

Now we are working even harder to earn thestandard checklist for all Hitachi Group’s con-confidence of all our stakeholders by strength-

solidated companies that are outside the scopeening internal controls throughout the Group inof the fiscal 2004 documentation. (Approximately

compliance with Japan’s new Corporation Law,

230 companies are included in the fiscal 2004

while further improving governance and the ef-

documentation.) Fiscal 2006 is the actual SO Act

ficiency of management.

compliance year, and we are actively involved in

Seeking to assume the role of Hitachi Group

ensuring smoother operation, ongoing resolution

headquarters, we are promoting the compilationof issues, and better understanding of internalof guidelines for environmental compliance, risk

control among all Hitachi Group employees.

management, and internal audits, encouraging
internal audits of Group companies, and work-

Group Management

ing to increase corporate value through ongo-

The Hitachi Group spans many business types.

ing dialogue with our shareholders and otherWe are making an effort to foster synergy among

stakeholders.

these businesses by nurturing partnerships while
respecting each company’s independent creativ-

Internal Control

ity. Hitachi Group Headquarters was established

As a company registered with the U.S. Securities

in April 2004 to develop and implement the Groupand Exchange Commission and subject to thebusiness strategy that maximizes this synergy

Sarbanes-Oxley †2 (SO) Act, Hitachi, Ltd. ad-

and makes optimum use of group management

opted the COSO framework †3 for internal control

resources. Since April 2006, the Group Strategy

in fiscal 2004. Since then we have been improv-

Committee aimed at “integrated management

ing and reorganizing Hitachi group-wide internalwith direction” has been deliberating manage-

control over financial reporting based on thement policies for the entire Group.

Governance Structure of Hitachi, Ltd.

Hitachi Internal Control Assessment Framework

General Meeting of Shareholders
SEC

Election

Written oath

Board of Directors(14 members, including 4 from outside)

Board of Directors

Hitachi, Ltd. CEO and CFO

Audit Committee

ReportInternal audit
reportInternal Control Committee

ReportProject Management OfficeInternal audit
reportInternal Auditing OfficeNominating Committee Audit Committee Compensation Committee(5 members, including (5 members, including (5 members, including
3 from outside)
3 from outside)
3 from outside)
Election

Supervision

Executive Officers: Timely execution of company business

Monitoring

Written oath
Hitachi Group HQs(Hitachi Group HQs andHitachi, Ltd. Business Groups)

ReportHitachi Group Subsidiaries

Audit

Independent auditors†1 Committee System
Corporate governance system inwhich executive officers, elected andmonitored by the Board of Directors,
execute corporate and businessmatters, while the Board of Directors
determines basic management
policies and oversees the conductof business by executive officers.
Hitachi switched to the system under
the provisions of the new Corporation Law that goes into effect May
2006. A total of 18 Hitachi Group
listed companies, including Hitachi,Ltd., had switched to the Committee
System.

Compliance and Risk Management
With its involvement in business activities that deal with public works andvital information, the Hitachi Group places top priority oncompliance and ethical business behavior and is working continuously tostrengthen protection of private information and enhance risk management.

Compliance Framework
The Hitachi Group operates on the principles ofInformation Security Governance
Overview“conformance with the law and business ethics”

The Hitachi Group’s approach for the protection

and “fair and disciplined competition.”of personal information and information security

In February 2002, Hitachi, Ltd. establishedcan be boiled down to the following two points.

the Compliance Division, directly reporting to(1) Precautionary measures and prompt re-

the President, which has been carrying out

sponse to security

compliance education and monitoring business

Hitachi clearly classifies information assets toactivities of Hitachi Group companies.

be protected and takes safeguarding measures
based on vulnerability assessment and risk

Compliance Education

analysis. We also have an emergency manual for

Responding to the recent amendment of Japan’s

security breaches, written form the standpoint

Antimonopoly Law, Hitachi provided educationthat they are inevitable, not potential.

to familiarize the managers in charge of sales(2) Promotion of stronger ethical and security

with the content of the new law in October 2005.

awareness among data users

We also have been providing education to all

Hitachi has prepared a curriculum tailored tosales employees at each sales office. In addition,

various levels—staff, managers, etc.—and is

we have revised our Antimonopoly Law Hand-

working to raise the prevailing sense of ethics

book and distributed it to all sales employees ofand security awareness through companywide

Hitachi, Ltd. and its Group companies, to ensure

education utilizing e-learning. We are also work-

their understanding of the Antimonopoly Law.

ing on the use of audits to identify and address

In addition, beginning October 2004, in

problems early.

response to the Unfair Competition Prevention
Law, compliance education, including that con-Efforts to Protect Personal Information

cerning a ban on gifts to foreign civil servants,

In May 2001, Hitachi constituted a “preparatory

was conducted at our global bases in Europe,committee on protection of personal informa-

the United States, China, and Southeast Asia.

tion” within Hitachi’s Information and Telecom-

Compliance lecture
In March 2006, a lecture for
executives of departments in chargeof sales to public organizationsdelivered by a professor specializingin compliance at a law school was
attended by some 250 employees
from about 50 Hitachi Group
companies.

“Basics and Ethics Daily Calendar”
At Hitachi Building Systems Co.,
Ltd., a daily calendar featuringmottos concerning “business basics
and ethics” was compiled to instill
consciousness of complianceissues. Distributed in the company
and provided to other Hitachi Group
companies, it is helping to promotecomplete employee awareness.

munication Systems Group, which often handles
Expanding the “Whistle-Blower” System

customers’ personal information and corporate

In April 2003, Hitachi instituted a “companywide

secrets. In December of the same year, thewhistle-blower system” with the aim of preventing

aforesaid business group adopted rules forillegal or unethical behavior, promptly address-

the protection of personal information, and ining infractions, and enhancing self-governing

February 2003 the business group obtained

capacity. In response to the enactment of thethe certification of the Japanese Privacy Mark

Whistle-Blower Protection Law, we extended theprogram. In October 2004 Hitachi adopted thesystem to all present and former Group employ-

Personal Information Protection Rules and aees, employees of suppliers, and temporary staff

Personal Information Protection Policy.

in October 2004. We also adopted a system in

In April 2005, Hitachi established the Infor-

December 2003 whereby employees can reportmation Security Division to take charge of the

any problems directly to the Directors, and inprotection of personal information and informa-

May 2004, we revised the system to accept

tion security, and is working to ensure that theanonymous report.

entire Hitachi Group complies with the Personal

Personal information protection andinformation security cards

Information Protection Law.
CSR Management CSRManagement

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

Examples of personal information protection guidelines for
employees
Collecting personal information:
Never gather unnecessary information; specify purpose of information.
Using personal information:
Information may not be used unlesspurpose is specified.
Storage and management of
personal information:
Never leave personal information out
on your desk; avoid making copies.
Disposing of personal information:
Dispose of hard copies in shredderand completely erase electronic data.
†1 BCP
Business Continuity Plan, a plan
designed to ensure the continuity ofbasic business operations and therapid return of business to normal in
the event of a crisis such as a major
earthquake.
WEB

For more on protection of personal
information (Personal Information
Privacy Policy), go to
http://www.hitachi.com/privacy-e/
index.html

Hitachi enhanced the level of protection inInformation Protection Laws Concerning Fields

Next Steps in the Protection of
Personal Information and
Reinforcement of Information Securityof Economy and Industry published by the Min-At Hitachi, we approach privacy and information

istry of Economy, Trade and Industry in Japan.

security issues as an aspect of risk management,

Hitachi’s actions are categorized in the following

with the aim of creating corporate value and afour groups:

corporate climate that inspires customers andconformance with the Guidelines for Personal

clients with confidence. In fiscal 2006, we in(1) Organizational security: Clearly designate responsibility and commission, maintain the security
procedures, and audit the record.
(2) Personal security: Make a nondisclosure agreement of “personal information classified as secret”
and execute adequate education and training.
(3) Physical and environmental security: Monitor
people entering and exiting key buildings/rooms
and take other steps to prevent theft of personal
information.
(4) Technological safeguards: Control access to information systems that handle personal data, takemeasures to prevent use of unauthorized software, and monitor use of information systems.

In April 2006, Hitachi adopted an Information Se-

tend to go a step further with the following four
improvements:(1) Institute a companywide personal information
protection system that will earn the Japanese
Privacy Mark for the entire company.
(2) Enhance information security at the global
level.
(3) Establish procedures for swift response tobreaches and build a powerful response apparatus.
(4) Draw up a business continuity plan (BCP) to
respond to possible cyber-terrorism.

curity Policy and distributed it to all employees incard form with the Personal Information Protection

BCP †1 Activities

Policy to ensure that everyone is completely fa-

Companies today need to prepare for the pos-miliar with its content. We have also implemented

sibility of natural disasters, terrorist attacks,

proactive measures to prevent Internet-related

and other unforeseen events that could disrupt

breaches, including a ban on the use of individu-

their business. It is particularly essential that theally owned computers for business use.

Hitachi Group create a mechanism for continuing
operations, many of which are global and affectHitachi Group Guidelines for
Major Earthquake Countermeasures(Revised in 2005)



Basic Approach toInformation Security

essential social infrastructure.

Information leakage is a serious problem thatlearned from the response to disasters such as

erodes public confidence. Hitachi, Ltd. has al-

the Niigata Chuetsu Earthquake and the required

ready instituted a complete, integrated package

response to a major earthquake occurring directlyof security measures, including companywide

under Tokyo, we revised the 1993 Guidelines for

identification management and authentication

Major Earthquake Countermeasures, the 2005

systems. Now we are conducting preparatory

version being a model for manual revision in busi-

studies for the adoption of a unified groupwide

ness divisions and Group companies.

For example, taking into account the lessons

system. The establishment and maintenanceIn August 2005, we set up an Expert BCP

of information security requires a substantial

Promotion Panel, centered on personnel frominvestment, but we are creating the optimum

the Risk Management Department and the Infor-

security environment as efficiently as possible

mation and Telecommunication Systems Group,by consolidating all of the Group’s information

to compile guidelines for drafting a Hitachi Groupsystems divisions.

BCP scheduled for around September 2006.

CSR Promotion Activities of the Hitachi Group
Corporate social responsibility (CSR) is founded on
the understanding and practice of each individual employee.
Based on the “CSR Policy of the Hitachi Group”
we are promoting a wide range of activities to nurture this spirit of CSR.

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 the development 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 thisend, to conduct its corporate activities in a fair and open manner, promote harmony with the naturalenvironment, and engage vigorously in activities that contribute to social progress.
(Adopted June 1983, revised September 1996)

Hitachi’s CSR Concept
Since its founding, Hitachi has endeavored to

Basic CSR Framework“contribute to society through the development

Commitment of Top Managementof original technologies and products,” and weFundamental Credo

have long cherished our founding spirit of “har-Corporate Governancemony,” “sincerity,” and “pioneering spirit” in all ofour business activities.
In response to the needs and expectations

Human value

Environmental
value

Economic value

Social valueof society today, the Hitachi Group is expanding its CSR activities based on the fundamental

Compliancecredo and founding spirit. For Hitachi, CSR

Corporate Ethics

means engaging in activities to increase social,economic, environmental, and human value. We
understand that such activities must be pursued
within a framework of the clear commitment of
top management and a policy of strengthening
corporate governance, and rooted in a cultureof compliance and high ethical standards. The
Hitachi Group’s mission is to “contribute to thesolution of fundamental global issues, and to pursue the realization of a better, more prosperous

CSR Policy of the Hitachi Group
1. Commitment to Corporate Social
Responsibility (CSR)
2. Contribution to Society
through our Businessglobal society, in line with the company’s found-

3. Disclosure of Information andStakeholder Engagement

ing spirit, utilizing the true collective strengths of

4. Corporate Ethics and Human Rights

the group, characterized by its knowledge and

5. Environmental Conservation

technology.” This also defines our CSR vision.

6. Corporate Citizenship Activities

In March 2005, we formulated the “CSR
Policy of the Hitachi Group” aimed at translating these ideals and mission into action. This
document sets forth policies for the entire HitachiWEB

CSR Policy of the Hitachi Group
http://www.hitachi.com/csr/group/
promote/index.html

7. Working Environment
8. Responsible Partnershipwith Business Partners(Adopted March 2005)

Group, to promote group-wide CSR activities.
CSR Management CSRManagement

CSR Promotion Activities
in Fiscal 2005

CSR activities. In the future, specific plans will

The Hitachi Group consists of approximately

work together on specific issues.

be developed to enable all Group companies to

1,000 companies with a total of some 350,000
employees. During fiscal 2005, member compa-

Hitachi Group CSR Workshop.

nies worked to adopt and implement the CSR

Creating a Network of Domestic andInternational Group Companies

Policy of the Hitachi Group. The fiscal 2004 CSR

The Hitachi Group is developing a group-wide

self-evaluation pointed to “human rights” andplatform for sharing CSR information and plans.

“supply chain management” as priority issues.

In June 2005, 151 major affiliated compa-

These were the focus of attention in fiscal 2005,

nies appointed directors and promotion officers

together with a stronger program for communi-

in charge of CSR, and the “Hitachi Group CSR

cating with stakeholders. Practical activities were

Promotion Officers’ Meeting” was launched. In

implemented through the biannual meetings of

September, a “CSR Workshop” for the CSR

the CSR Promotion Committee and meetings ofpromotion officers of Hitachi, Ltd. and 11 Groupthe CSR promotion teams (28 meetings). In ad-companies (mainly listed companies) was held todition, to further enhance understanding of CSR

discuss common CSR-related challenges facing

and promote activities, CSR explanation meet-

the Hitachi Group.

ings for managers were held both in Japan (15meetings) and overseas (China; 3 meetings).

A “CSR Global Meeting” was also held withthe participation of CSR promotion officers from

Creating CSR awareness and developing

Group companies in North America, Europe,

cooperative ties among Group companies are es-

China, and other parts of Asia. Participants dis-sential steps for accelerating the Hitachi Group’s

cussed partnership with overseas subsidiaries

Structure of Hitachi Group CSR Promotion
President

SeniorExecutive
Committee
CSR
Promotion
Committee

Senior Executive Committee:
Decides CSR management policies
at 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.

10

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

Hitachi, Ltd., 932 consolidated subsidiaries,
and 158 companies that use the equity methodDialogue with stakeholders
Hitachi took part in a project organized by a Japanese
nonprofit organization, in which some 30 participants fromstakeholders and Hitachi, Ltd. engaged in discussion.

and the pursuit of CSR activities suited to theparticular needs of each region.

from stakeholders in future activities.
The Hitachi Group issued its first CSR Re-

Hitachi is now looking to enhance its forums

port in fiscal 2005, and a “Corporate Social Re-

for discussing group-wide CSR issues, and work-

sponsibility” page was added to the Hitachi, Ltd.

ing to develop more specific CSR initiatives.

website, to report CSR activities to stakeholders.
Directors in charge of CSR have conducted dia-

Establishing “the CSR Policy of
the Hitachi Group”

logue and exchange with CSR experts in JapanTo promote better understanding of the CSR

been published in “Dialogue with Stakeholders”

Policy of the Hitachi Group, in November 2005

and made available to the executives of Hitachi,

the Hitachi Group Corporate Social Responsibility

Ltd. and Group companies in Japan.

and overseas, and details of the dialogue have

Guidebook was issued. Designed for corporate

In November last year, we had an oppor-

managers, this guidebook explains the basics oftunity for public evaluation of our CSR activities

CSR, the current demands of society, and theand for a lively exchange with a broad range of

CSR policy and initiatives of the Hitachi Group,

stakeholders from the general public and aca-

under specific policy headings. The guidebook

demic communities through a project organizedhas been distributed to about 9,700 managers of

by a Japanese nonprofit organization.

Hitachi, Ltd. and is being used at 81 Group com-

The views and comments received frompanies (as of March 2006). English and Chinese

stakeholders participating in these activities will

editions have also been produced and are being

be put to use in future activities as the Hitachi

used in subsidiaries throughout the world.

Group continues to reach out with CSR informa-

The main points of the guidebook were

CSR e-learning program“Corporate Social Responsibility
Activities of the Hitachi Group”

tion and dialogue.

summarized in an e-learning program madeavailable to all employees in March 2006 through“Hitachi-LearningGate,” an e-learning systemshared by members of the Hitachi Group. Sixtyeight Group companies are currently using thisprogram (as of March 2006).
These educational materials are being used
to re-examine daily operations from a CSR perspective.
Disclosure and Dialogue on CSR Activities

The Hitachi Group actively provides information on
its CSR activities to the general public and is engaged in various forms of dialogue with stakeholders. Its aim here is to evaluate the CSR activities ofthe Hitachi Group from an external perspective andto incorporate the views and comments received

Hitachi Group Corporate Social Responsibility Guidebook

CSR Management 11

CSRManagement

Hitachi Group Three-Year
CSR Roadmap

purpose in mind, to guide the Group’s efforts to

The Hitachi Group believes CSR activities requireing the expectations and demands of society andlong-term commitment and persistence from all

reviewing the business strategies and past activi-

employees. For the future development of soci-ties of the Hitachi Group, the Roadmap identifies

ety and the Hitachi Group, we believe we musta number of goals and challenges for each of the

become engaged in high-level social issues.

major items in the CSR Policy of the Hitachi Group.

implement more concrete activities. By determin-

The “Hitachi Group Three-Year CSR Roadmap (fiscal 2006 – 2008)” was formulated with thisThe major activities and initiatives scheduled forfiscal 2006 are outlined in the table below.

Basic Concept of Three-Year CSR Roadmap
Medium-Term Business Strategies

Becoming
a leading global CSR company

CSR evolution level

Implementation of
Fundamental Credo
2010

Analysis of present situation
based on
“CSR Policy of the Hitachi Group”

Apr. 2006

Apr. 2007

Verifying/evaluating
CSR activities

Optimizing CSR activities andimplementing strategic CSR

Apr. 2008

Group-wide involvement
in social issues

Mar. 2009

Major Activities in Fiscal 2006
CSR Policy of the Hitachi Group12

Description of Activities (excerpts)

1. Commitment to corporate social responsibility

Increase of the learning rate of the CSR e-learning program
Employee survey of CSR awareness2. Contribution to society through our business

Development of a group-wide system for Customer Satisfaction (CS) activities
Strengthen the prevention of recurrence of serious product trouble

3. Disclosure of information andstakeholder engagement

Expansion of IR activities of business divisions
Strengthen the prevention of information leakage

4. Corporate ethics and human rights

Review of ethics education
Analysis of present status of ethics and compliance in all Group companies

5. Environmental conservation

Group-wide integration of environmental departments and acquisition of ISO 14001 environmental
management system certification
Introduction of Super-Eco Products and Super-Eco Factories

6. Corporate citizenship activities

Group-wide and worldwide implementation of social contribution activities
Expansion of support programs in education (universal design, IT, environment)

7. Working environment

Survey of working environment on business process and opinion surveys
Cultivating global managers and advancing diversity through global education programs

8. Responsible partnership with business partners

Ensure that overseas partners are completely familiar with the “Guidelines for Procurement and BusinessTransactions” (see page 32)
Monitoring of the CSR activities of domestic and international partners

Hitachi

CActivities
SR

Creating a Better World through CSR Activities—Selected Hitachi Group Activities in 2005

Douglass School students play on a giant world map createdby the World Game Institute (WGI), a Hitachi Foundation grant recipient.
The WGI is a U.S. research and education organizationthat provides materials through which children can learn while playing.

© Mitsuya Okumura

The Hitachi Foundation
Marks Its 20th Anniversary
Established in 1985 in Washington, DC,
the Hitachi Foundation aims to enhance the well-being ofdisadvantaged people and communities in North America andto create knowledge that advances good corporate citizenship.

Katsushige Mita, the fifth presidentof Hitachi, Ltd., Hitachi establishedThe Hitachi Foundation in Washington, DC to better fulfill its responsibilities as a good corporate
citizen in the United States.
The Hitachi Foundation wasestablished to contribute to American society. Governed by a Boardof Directors composed of highly accomplished Americans, the Foundation’s broad purpose is to enhance
the well-being of disadvantaged
people and communities in North
America and to generate knowledge
that defines and advances the practice of good corporate citizenship.
Mita served as Honorary
Chairman and The Honorable Elliot
Richardson, former U.S. Attorney
General and Secretary of the U.S.
Department of Commerce, became
the Foundation’s founding Chairman of the Board. Mita was succeeded by Tsutomu Kanai in 2004
and Richardson was succeeded by
Joseph Kasputys in 1998. Dr. Kasputys, who served on the Foundation
Board since its inception, had provided vision and inspiration for two
decades. He stepped down in 2005.
His successor, Dr. Bruce MacLaury,president emeritus of the Brookings Institution, follows in this tradition of accomplished leadership.
The Foundation is managed by an
American staff. Delwin Roy, the firstpresident & CEO, was succeededin 1998 by the current president &CEO, Barbara Dyer.

Three Key ProgramsIn the 1980s, when the U.S.Japan relationship was tense
due to economic issues, Hitachi
was not immune to the problem.

It became essential to consider the
responsibilities that accompanied
the growth of business in the UnitedStates. Thus, in 1985, proposed by

The founding chairman Richardson
was convinced that local, national,
and international problems could
only be solved by partnerships
among the government, private,

Hitachi CSR Activities 13

1

Hitachi

CActivities
SR
nonprofit, and community sectors.
The Hitachi Foundation became acatalyst for creating and guiding
such partnerships. The Foundation’s three programs, in place by
1987, are: the Business & Community Grants Program; the Yoshiyama
Award for Exemplary Service to theCommunity; and the Hitachi Community Action Partnership.
The Foundation’s programsreflect a cross-section of ideas andpractices that are at the center of thecorporate citizenship field. Entering
its 21st year, the Foundation intends
to blend community strengthening
with business’ responsibility to society, generating practical knowledge
and new approaches.
Hitachi views the Foundation
as a pioneering and exemplary model for corporate social contributions.
Today some Hitachi Group companies are trying to promote programs
similar to those of the Foundationin regions around the world.

14

The Hitachi Foundation’s Programs:
Business & Communities Grants ProgramThis program provides grants to business-community partnership programs addressing the issue of
economically and socially isolated people. This program focuses, for example, on education and training
programs that allow people with little employment opportunities to develop work skills and gain employment.
Yoshiyama Award for Exemplary Service to the Community
This program honors high school seniors from across the United States for their outstanding service to theircommunities. This award was established with funds donated by Hirokichi Yoshiyama, the fourth president of
Hitachi, Ltd., upon his retirement as Hitachi chairman. Since 1988, the Yoshiyama Award ceremony has been
held 18 times and recognized 176 high school seniors. This program is intended to provide recognition andencouragement for the young award recipients and to inspire others to create a better society.
Hitachi Community Action PartnershipThis program provides a means for 21 Hitachi Group companies in North America to be actively engaged intheir communities. Coordinated through Hitachi employee Community Action Committees (CACs), the Group
companies plan donations and volunteer activities that help the communities where Hitachi employees live
and work. The Foundation provides matching funds, and with Hitachi America, Ltd. provides guidance andtechnical support to the Group companies and their CACs.

WEB

The Hitachi Foundation
http://www.hitachifoundation.org

messagevoicesMessage from the Chairman

Yoshiyama Alumni Today

Bruce MacLaury,
Chairman of
The Hitachi Foundation Board

Daphne Walker(currently Chief Magistrate Judge)
Recipient of the 1990 Yoshiyama Award“Thanks to the generous support of Hitachi,Ltd., both through financial contributions
and enthusiastic participation, The Hitachi
Foundation continues the course
set by its predecessors. Our futurechallenge is to develop and publicize
actions and ideas that give context
to the phrase ‘corporate social
responsibility.’ In particular, showing
new ways in which businesses can
exercise their abilities and make asocial contribution beyond the powerof government and social organizations alone.”“Of the various awards
I’ve received, theYoshiyama Award isstill special to me.
When we received
the award, they told
us we should start thinking about
what people would remember usfor. That’s what I stay focused on.”Daphne Walker keeps a picture of the
Yoshiyama Awardees in her office toremind her of her purpose. Daphne
promoted social exchange with children in disadvantaged communities.
In 2004, she was elected Chief Magistrate Judge for Georgia’s Clayton
County—the first African-American
to hold that post.

Hitachi Community Action Partnership Activities
An employee of Hitachi America, Ltd. reads aloud tofirst-graders at a public elementary school. Story time isan opportunity not only to tell children tales but also tostrengthen the ties between the children and adults.

Recipients of the 2005 Yoshiyama Award
The young award recipients were lauded for their outstanding
contributions to their communities, including the promotionof human rights. The 10 recipients stand with The Hitachi
Foundation’s former Board Chair Joseph E. Kasputys (front
right) and President & CEO Barbara Dyer (front left).

2

Hitachi

CActivities
SR

B

Ensuring Our
Safety and Security throughInformation Security

uilding a safe and secure society: a pressing need for today.
To respond more effectively to security needs in business and daily
life, Hitachi launched the “Hitachi
Security Project” in April 2005, offering comprehensive security solutions from the three perspectives of“business information,” “daily living,” and “a safe society.”

Protecting personal information, guarding against crime,
ensuring the food safety—these are just some examples ofheightened security consciousness nowadays.
The Hitachi Group utilizes all of its capabilities to provide solutionsfor keeping our society safe and secure.

Ensuring Safety and Securityof Information
Leakage of personal and sensitive
information is a serious social issue
today. To enable real protection, securing information systems alone
is not enough. A total approach isneeded addressing from “where,”“who,” and “how” to handle information to document disposal.
Given the huge volumes of information and funds being transferredover networks, technologies forhighly reliable user authentication
are of critical importance. For this,Hitachi has developed a biometricauthentication system called the“finger vein authentication system”
that reads the unique vein patterns
in one’s finger using near-infrared
light. Because this system uses characteristics hidden inside the body, it
is difficult to forge and more securethan fingerprint, face, and voice au-

ATM equipped with finger vein authentication unit.

thentication. This new technology
is already widely in use in entrance
control and automated teller machines (ATMs).
Hitachi has also developed adiskless “security PC” to prevent
leakage of information from a lost or
stolen computer. Security PCs arebeing deployed within Hitachi under our information security policy.
Other technologies developed by
Hitachi include encryption systems
for data protection, and “digital wa-

Hitachi’s Safety and Security Solutions

Authentication and access control
Finger vein authentication systems, secure networks

Crime-prevention solutions for school and communities
Crime-prevention at schools, “Smart Lights”

Business

Prevention and control of
information leakage
Security PC, digital watermark print
solution systems

Anti-terrorrism and crime-prevention solutions
Explosive detectors,
X-ray inspection systems for baggage

Daily Life
HitachiTotal Security Solutions
Safety, Security,
and Comfort

Safety in Society

Traceability solutions
Food traceability systems,
logistics management systems

Disaster-prevention solutions(for prevention and crisis response)
Advanced fire management systems,
personal safety tracking systems

termark print solution” to prevent
reproduction and duplication of
documents.
The Hitachi Group will continue to put all of its resources towork in helping build a safe andsecure society.
reportDisarming
Anti-Personnel Minesin Cambodia and Sri Lanka
The anti-personnel mine remover developed by Yamanashi Hitachi Construction Machinery Co., Ltd. which
was introduced in the 2005 CSR
Report is being used in various sitesof the world. During 2005, it delivered
14 units to Cambodia and one unit
to a Japanese NGO operating in Sri
Lanka. In January 2006, a new model
equipped with a metal detector was
delivered to Nicaragua.

The anti-personnel mine remover in use
in Nicaragua. After mine removal, theland will be used for orchards, etc.

Hitachi CSR Activities 15

Hitachi

3

CActivities
SRI

n Japan, there is serious concern that children are losing
touch with science. The Japanese
government has formulated theScience and Technology Basic Plan
with the intention of keeping Japan
at the highest international level ofscientific and technological creativ-

ity, and one of its major themes isnurturing creative human resources.
This plan is implemented under theguidance of the Council for Scienceand Technology Policy †1, which has
as one of its expert members Hitachi
Chairman Etsuhiko Shoyama, who
has emphasized the importance ofDeveloping Scientific Minds
Hitachi is implementing its founding mission,“to contribute to society through technology.”
This extends beyond product development to include
the education of youth, the introduction of
the fruits of innovation, and programs aimed
at raising public interest in science and technology.

At Spring Science Camp 2006, students prepare samples for observation under an electron microscope.

active scientific minds. The HitachiGroup itself engages in various programs designed to spark interestin science and technology among
young people.

Developing the Next Generationof Scientists and Engineers
Programs that revolve around our
research departments include many
lectures and hands-on learning opportunities for elementary and highschool students. Since 2003, forexample, Hitachi, Ltd. has opened
its research facilities to high school
students as part of the Spring Science Camp program sponsored by
the Japanese Ministry of Education, Culture, Sports, Science andTechnology. A total of 40 students
were given the opportunity to gain
first-hand experience with suchcutting-edge technologies as nanotechnology and future displays. In
addition, Hitachi Research Laboratory (Ibaraki, Japan) has conducted
Science Mini Seminars since 1995
for local elementary and junior highschool children, with a total of morethan 100 participants. Fifteen students participated in the Science
Seminars, which the company’s
Mechanical Engineering ResearchLaboratory (Ibaraki, Japan) began
conducting in 2005.
Other Hitachi Group companies also offer educational programs that take advantage of theirreportCooperation with
the Spring Science CampFor three days from March 21, 2006, Spring
Science Camp 2006 was held at Hitachi,Ltd.’s Central Research Laboratory under
the auspices of the Ministry of Education,
Culture, Sports, Science and Technology.
Ten high school boys and girls who
applied for the camp and were selectedfrom all over Japan visited the facility
and directly experienced such advanced

16

technologies as the electron microscope,
three-dimensional imaging display, speechsynthesis, and the μ-chip. Participant comments included: “It was exciting to use anelectron microscope to see a sample I had
prepared myself”; “It was really fruitful totalk directly with researchers”; and “I wantto keep pursuing my dreams, too.”
The Hitachi Group will continue tocooperate with the Spring Science Camp
program.
Students operate the electron microscope.

Hitachi

3

CActivities
SR
respective fields of business andtechnical expertise. Hitachi HighTechnologies Corporation and
Hitachi Instruments Service Co.,
Ltd. have conducted hands-on experiential programs using electronic
microscopes at several elementary
schools in Japan since 2001. Similarly, Hitachi Plant Technologies,
Ltd. has sponsored the “We Love theEarth Class” program each year forelementary school students in the
Matsudo area in Japan since 1998,
with a focus on water purificationand sewage treatment technologies,
which offers a fun way for children
to learn about the importance of environmental conservation.
We are also active throughan organization called Himawari(Sunflower), founded by and composed primarily of retirees from the
Hitachi Group’s electric power divisions. This group is dedicated todisseminating understanding andknowledge of energy and global
environmental problems among
elementary and junior high school
students by conducting classes andsupporting experiments.

Exploiting Hitachi Expertisefor the Benefit of the World
Since our inception, the HitachiGroup has disclosed the technologies it has developed and their results in an ongoing dialogue withthe world. This open attitude is

exemplified by Hitachi Hyoron, (theHitachi Review), which first cameout in 1918. The 1000th edition ofthis publication, which makes thelatest results Hitachi has achieved in
cutting-edge technologies available
to scholars, customers, and otherinterested parties, was publishedin May 2005, giving it the longest
history of any publication by a private-sector manufacturing firm inJapan. For 88 years, in volume after
volume, Hitachi has poured its passion for technology into these pages
for others to share.
Another activity that has garnered public attention is the Hitachi
Technical Forum, an annual eventthat was initiated in 2001. Operated
by the Hitachi Henjinkai, or Henjin
Association, which is comprised ofresearchers with advanced degrees,
the forum invites Hitachi engineers
and world-level figures of authority
to present lectures with the aim ofincreasing exchange among customers, scholars, and students.
Young researchers working
at Hitachi, Ltd.’s Central ResearchLaboratory and Advanced ResearchLaboratory are engaged in anotherunique activity, introducing advanced technologies to high school
students, college students, andteachers, who in turn vote to recognize the presenter of their choicewith the Best Presentation Award.
Similarly, the Central Research Labo-

The “We-Love-the-Earth Class”
sponsored by Hitachi Plant Technologies, Ltd.

Members of the volunteer group “Himawari” lead experiments
evaluating the effects of CO2 gas on global warming.

ratory and the Systems Development
Laboratory present advanced technologies to customers twice a year
at an event called “Technology Community.” In these and other ways, theHitachi Group is actively engaged inpromoting science and technology.
Hitachi will continue its commitment to creating new solutions
through the fusion of wide-ranging
technology and knowledge, and will
put even more energy into widening
its circle throughout the world tonurture future generations.
†1 Council for Science and Technology Policy (CSTP) is
one of the four important policy councils of the Cabinet
Office. The CSTP is made up of the prime minister, relevant
ministers, and experts in Japan.

reportThe 1000th Edition of
Hitachi Hyoron

Hitachi Fellow Dr. Hideaki Koizumi gives the keynote
address at the forum held to commemorate the 1000th
edition of Hitachi Hyoron.

Hitachi Hyoron was launched in 1918.
When it was founded, the general tendency
was for companies to keep their technologies secret. But Hitachi decided to widely
publish the results of its independently developed technologies with the aim of raising
the technical level of Japanese industry,
and thereby contributing to the development of society. For more than 80 years,
we have done just that. In November 2005,
a special forum was held to commemorate
the 1000th edition, with the participation ofmany distinguished scientists, including Dr.
Charles M. Vest, president emeritus of MIT
in the United States, and Hitachi Fellow Dr.
Hideaki Koizumi. Lively discussions were
held concerning thefuture of science andtechnology.

The 1000th edition of
Hitachi Hyoron.

Hitachi CSR Activities 17

4Hitachi

CActivities
SR

The WorldSkills
Competition,
Supporting Manufacturing

Kazutoshi Onuki of Hitachi High-Technologies Corporation on his way to agold medal in Mechanical Engineering CADD. He has also won the national
championships two years running.

Since its founding, Hitachi has devoted itself to fostering
young technicians and passing down skills within the organization.
We have competed in the national championships
for the WorldSkills Competitions since the first in 1963,
with strong results at domestic and international competitions.

T

he WorldSkills Competitions
are held every two years, withmen and women age 22 and under
representing their countries in 40
categories.
The 38th competition was heldin Helsinki, Finland in May 2005.

Japan’s contingent included
five Hitachi Group employees who won in the national
championships. Yoshiyuki
Akatsuka of Hitachi Plant
Technologies, Ltd. and Kazutoshi
Onuki of Hitachi High-Technologies
Corporation both won gold medals
in the world competition, marking
the fourth year in a row Hitachi hastaken home the gold.
All five team members aregraduates of Hitachi Senior Technical School, a fully accredited fulltime vocational high school whose
graduates are assigned to HitachiGroup companies, and represent
the future of manufacturing at
Hitachi.

One-on-One Interaction
between Instructors andTeam Members

Takayuki Akatsuka of Hitachi Plant Technologies, Ltd. took
the gold medal in CNC Machining (above).
Yoshihisa Mashiko of Hitachi, Ltd.’s Hitachi Works uses alathe in preparation for the national championships (below).

18

Hitachi has sent more than 2,000
people to the WorldSkills Competition. We regard it as an importantvenue for developing both products
and people. Winning requires thetechnical skill, broad creative thinking, and clear judgment connected
to making high-quality, dependable
products.
The Hitachi Group selects
team members from new employees

at each production facility and gives
them two to three years of training.
Members live together with instructors, mostly former participants
themselves, and interact with themin practical sessions modeled on
the actual competition. The training polishes the members’ skills andspirit, and helps instructors improvetheir leadership skills.
The decline of skilled technicians in manufacturing is becoming a societal problem, but skills at
Hitachi are passed down throughthis kind of training and generationtranscending teamwork. The same
holds true for Group companies
and overseas production facilities
not participating in the WorldSkills
Competition. Kazutoshi Onuki remarks, “Winning a gold medal wasa major goal, and I want to make themost of this experience, keep studying, and help make great productsfor Hitachi.” Hitachi, too, will continue to devote itself to the job ofmaking things and training people,
and ensuring the quality and dependability of all its products.

5

Hitachi

CActivities
SRI

f documents are shredded too
finely they are difficult to recycle;
too coarsely, and information could
be exposed. To address this, Hitachi
Information Systems, Ltd. in 1999
became the first company in Japan
to commercialize a closed-loop recycling system †2 using wet shredders to turn waste documents into
pulp, which paper manufacturers
use to make paper that is recycled
back to the company in a closed
loop. The system has won highmarks for conservation and security,and many companies are adopting
it. In partnership with HITACHIYou and I Co., Ltd.†3, a special unitof Hitachi, Ltd., we have modified
this system so that it may be operated by mentally challenged people.
The system was first implemented
in 2001 at Fancl Smile Co., Ltd., aspecial subsidiary of Fancl Corporation, and subsequently at a nonprofit group, the city of Fujisawa in
Kanagawa Prefecture ( Japan), andfour Hitachi Group companies. Asof March 2006, this has led to theemployment of 19 individuals atthese seven locations.

Expanding Employment
with Normalization
Hitachi, Ltd.’s Central ResearchLaboratory (HCRL) implemented
the system in 2005.
HCRL worked with the Nakano
Welfare Organization for the Challenged, and other organizations tocreate a safe, accessible environment for challenged people. HCRLHCRL staff with three employees of Hitachi You and I Co., Ltd. (back row, center).
A safe, accessible workplace was created with the help of various staff members.

Paper Recycling System
Increases Employment of
Mentally Challenged People
This combined recycling and information security
system also helps in the process of normalization †1.

now has two mentally challenged
people in charge of collecting andsorting documents, pulping them,and removing the pulp. Several creative ideas make it easy for employees to work safely and efficiently,
including a message board listing
work procedures. Hirokazu Aoyagi,
general affairs unit manager, reportsthat the hard work of these employees has inspired the other staff, andcreated employment opportunities
for mentally challenged people atother workplaces.
It is our goal to create employment for some 100 mentallychallenged people by packaging
the business model we have established, extending it to other HitachiGroup facilities, other businesses,
and governmental agencies, implementing at least 20 systems in thenext few years.
†1 Normalization: The process of creating social infrastructure to ensure, as much as possible, the right of challenged
people to live normal lives without perceiving them as
special.
†2 This closed-loop system was awarded the Recycling
Promotion Council Chairman’s Prize in 2000.

HITACHI You and I Co., Ltd. is in charge of paper recycling (right).
The system includes a message board (left) showing work procedures and safety measures.

†3 HITACHI You and I Co., Ltd. was established in 1999 as a
special subsidiary of Hitachi, Ltd. to help mentally challenged
people participate in society. The company employs 45
challenged people (as of March 2006) and handles cleaning,internal mail, recycling, moving equipment, and other tasks,
primarily at Hitachi Group facilities in the Kanagawa area.

Hitachi CSR Activities 19

6Hitachi

CActivities
SR

Kuniaki Ozawa, General Manager, Ubiquitous Systems Division,
Ubiquitous Platform Systems, Hitachi, Ltd. talks about his experiences.

Kokoro Gatari—Connecting Patients and Families
ALS †1 is a disease that causes the muscles
in a person’s body to cease functioning properly.
Hitachi has developed the communication devices “Den-no-shin †2”and “Kokoro Gatari” to connect ALS patients with their families.

T

here are around 7,000 patients in Japan with ALS. I firstlearned about ALS when a fellow
employee contracted the disease. I
would visit and speak to him, but
he was unable to respond because
he could not move the muscles required to write or speak. As I was
involved in developing information
devices for ease of use by the elderly
and physically challenged, I immediately began work on developing acommunication device for ALS patients. In 1997, we developed Denno-shin, a device using sensors todetect subtle movements, like thoseof an eyebrow, enabling ALS patients
to construct sentences on a computer. It was commercialized by Hitachi

Cerebral blood flow data from Kokoro Gatari. Blood flow
differs between “yes” (left) and “no” (right) responses.
Precision was improved by developing a light source that
accurately measures blood flow volume and a sensor that
attaches firmly to the head, as well as by analyzing frequency
in addition to volume of blood flow.

20

Keiyo Engineering & Systems, Ltd.,and 3,300 total units have shipped
as of March 2006. The commentsof patients and families have been
truly uplifting. A patient told us thatbeing able to have conversations has
renewed his will to live.

Helping Patients and Families
Sustain the Will to Live
Development of Kokoro Gatari was
inspired by a phone conversation
with a family member of a completely immobilized patient. The family
just wanted the patient to be able tosay whether the care provided wasadequate. How could patients who
have lost complete control of theirmotor functions communicate?
What I thought of was research on
cerebral blood flow using an optical
topography †3 system developed by
Hitachi. I visited the research teamand had them build a prototype that
could detect changes in blood flow
between resting and active states,
like when doing math in one’s head.
I asked the patient to do math toindicate a “yes” response, but it wasa struggle at first because the rate
at which the device was correct did
not really improve.
To raise the rate, we elicitedthe cooperation of professors at
Kagoshima University, former
Hitachi researchers, our prototyper
Excel of Mechatronix, and the Japan
Amyotrophic Lateral Sclerosis Association. Students at the university
discovered that cerebral blood flow
increased when singing, providing
a major clue. As a result of building
several prototypes, we improved therate to 80% and in December 2005
Excel commercialized the device
under the name “Kokoro Gatari.”
The reception was outstanding,with inquiries from Japan, U.S.,
Norway, and Peru. We have sincedelivered 10 units in Japan and 3
units for trials in the U.S.

For Patients All Over the WorldIn an effort to create environmentsthat provide information access foreveryone, Hitachi has also commercialized sign language animation
software called “Mimehand” andsoftware for senior citizens and novice computer users called “Shinyu.”
I think support should be extended
within the Hitachi Group to further
promote these products. Regarding
Kokoro Gatari, we plan to further
improve its accuracy and shorten
measurement time. We hope it willfind use in the U.S., where there are
500,000 potential users (including ALS patients and others), andthroughout the world.
†1 ALS stands for amyotrophic lateral sclerosis. It is a
progressive, incurable disease affecting the motor nerves inthe spinal cord and causing muscles throughout the body tostop functioning.
†2 Den-no-shin was jointly researched with Kitasato
University East Hospital and commercialized by Hitachi Keiyo
Engineering & Systems. It is a communication device to help
people with spinal cord injuries and people dealing with theaftereffects of cerebrovascular accidents.
†3 Optical topography is a technology for mapping brain
activity like a topographical map. It shines near-infrared
light on a person’s body and picks up blood flow based onwhether the light passes through or is reflected back.

Noboru Matsuda, “Under a Big Tree”(Grand Prize of photograph contest with the theme of “The Hitachi Tree,”promoted by Hitachi, Ltd. in Japan)

Next Society

Creating the Future with Our Stakeholders

Next
Society
Questionnaire booklet issued
by the Information &Telecommunications Systems

Customers and Hitachi“Thinking and acting from the perspective of our customers.”
This is the basic philosophy behind all the corporate activities of the Hitachi Group.
Customer satisfaction and creating products of genuine value
are the highest objectives.

Hitachi Philosophy
in Customer Satisfaction

and Group companies. When necessary, staff

Our Customer Satisfaction (CS) Management

CS offices visit customers to gather more detailed

Guidelines constitute one of the pillars of

information to help improve our operations.

members from the relevant business fields andHitachi’s business management. We pursue CS

Hitachi Electronics Services Co., Ltd., which

in line with such mottos as “reliability and speed,”

provides management service for information“realizing the customers’ dreams,” and “the bestsystems, holds monthly meetings of its Customer

solutions partner.”

Satisfaction Improvement Committee, headed

The “CS Improvement Committee,” consist-by the president of the company, and is actively

ing of Hitachi, Ltd. and three group companies

implementing the three themes of “improving

in consumer fields, meets to review and discuss

quality,” “enhancing service processes and in-

the CS activities of the Hitachi Group companies,

frastructure,” and “cultivating customer-oriented

based on reports of activities from each section,

personnel.” The company uses customer satis-

with the aim of improving CS level.

faction scores as a criterion for determining bonus

All business groups and Group companies

payments, and it is also focusing on CE †1 educa-

have a “CS Improvement Section” dedicated totion measures, such as introducing a self-evalua-fine-tuning CS activities to customer needs andtion system for measuring customer satisfaction.

the characteristics of their particular businesses.

The company has also developed “ASSIST †2,”
a support system for early detection of system†1 CE
Customer Engineer, engineers
specializing in maintaining
customers’ computers and systems.
†2 ASSIST
Advanced Service Support
Information System Technology
A foundational technology thatenables appropriate preventive
maintenance and the prompt
response to system failures.

Customer
Satisfaction
CS
Activities
in Information andtroubles useful in improving on-site response.

Management Guidelines

1. Our customers determine the value of products
and services
2. Information from our customers is the source ofimprovement
3. Offer prices and quality that are competitive
4. Respond rapidly to keep our promises to ourcustomers
5. Adopt systems that prevent accidents and minimize their impact

CS Activities in the Consumer Appliances
Division Carries the “Customers’ Voice”
into Product Development
Innovations in IT and other technologies aretransforming our lifestyles and changing thefunctions and roles expected of consumer appliances. Hitachi Appliances, Inc., which handles
Hitachi’s consumer appliance business, has

CS Activities in the Information andTelecommunications Division Seeks toShare Values with Customers

developed a system for carrying customers’

Hitachi is working under the “uVALUE” concept

central role in this system, receiving more thanof creating optimum value for customers by

400,000 calls and e-mails per year. All customer

integrating customers’ businesses with Hitachi’s

calls on product selection, repairs, questions,businesses and information technologies. To

and complaints are kept in computer files andensure the smooth progress of this work, we con-can be searched and indexed as needed.

voices into the development of new products
and services. Hitachi Answer Center plays aduct a customer satisfaction questionnaire every
year. We make every effort to incorporate the pre-22

cious feedback of customers into our products

Ensuring Product Safety andResponding to Accidents

and services. Survey results are summarized

In December 2005, faulty wiring was discov-in a booklet made available to customers, andered in 238,872 washer-dryers manufactured

further analyzed and shared with branch offices

between August 2001 and December 2002. It

How the 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 businessgroups and executives representing manufacturing technologies and quality assurance departments. The meetings are convened eighttimes a year.

In creating easy-to-use products

Lifestyle Research Center

Ease-of-use and design of prototypes and production models are tested 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 of consumers. For example, designers go to Hitachi Answer Center tolisten to the voices of customers, and gain a better understanding of their perspective.

was determined that in a worst-case scenario,

Voice of Customer Flow Chartthe faulty wiring in the heater unit could lead
Repair request

announced through advertisements placed in

Response

Japan’s leading newspapers on December 21,
2005, and a “Washer-Dryer Smoke Accident
Countermeasures Office” was established. All
customer calls pertaining to the problem werecollected at a special center, and Hitachi went
to great length to ensure prompt inspection andInformation on after-sales services

Service
Information
CenterIndividual business groups
Quality assurance department

Feedback on improvements

Information sharing

Customers

to smoke or fire during use. This problem was

Design department
Inquiry

Customer
SupportCenterResponse: Response activities

Information sharing
Filed in database: Flow of information

Feedback

Manufacturing department: Sharing of information

repair at no charge to customers. Measures
are being developed to prevent recurrence of

Quality Assurance Flow Chart

incidents such as this, including changes in the

Product Manufacturing Process

product design and materials. Lessons from thisCustomers

Quality Assurance Activities

Market trends

to ensure that customers could choose Hitachi
products with full confidence. Safety protocols for

Product planning

Design review

DesignPrototype evaluation/approval

new product development were strengthened,for example, with regard to review of materials,
study of product construction, and verification ofPurchased goods

Management of purchased goods

Manufacturing

In-line quality control (QC)*

Inspection

Improving inspection techniques

overall product safety.

Quality AssuranceEver since its inception, the credo of the HitachiGroup has been “Quality First.” To this end, theShipment/delivery

Feedback to each activity

accident were applied to other products as well,

Collecting field data
and after-sales services

Customers

best traditions of “MONOZUKURI” (manufacturing) have been passed from one generation to
the next. The entire Hitachi Group is striving to
improve quality, under the quality assurance
slogan “Giving our customers the best quality inproducts and services.”
Hitachi is engaged in quality assurance

Activities Supporting Quality Assurance
Reliability technologies• Activities of sub-committee on
quality reliability• Product safety• Technical laws
• Quality management evaluation...

Organization and Management• Product accident management• QF priorities management system• OCHIBO HIROI• Product quality improvement
activities...

activity at all stages—from product planningto shipment, we place special emphasis on

Human Resources• Activities for nurturing
OCHIBO HIROI spirit• Improving ethical awareness ofengineers• Quality and reliability education• Campaign for raising quality
awareness...

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

the planning and design phases in particular,
because improvements in these upstream processes do the most to improve product quality.

selected to report on their activities as a means

The 34 divisions of Hitachi, Ltd. and 70

to raise consciousness and motivate action

Hitachi Group companies have been participat-

throughout the Group’s production facilities.

ing in the implementation of the Hitachi GroupFor example, the Disk Array Systems Division

Quality First 21 Movement since fiscal 2003.

of Hitachi, Ltd. made extensive use of testingIn April 2005, 10 production facilities that had

tools developed in-house in order to thoroughlyachieved conspicuous results in this regard were

inspect and evaluate embedded software †1 at†1 Embedded software
Software utilizing microprocessors
built into automotive, portableterminals, smart appliances, etc. tocontrol their communication with thedevice as a whole or with external
devices.

Next Society 23

Next
Society

the design stage, thereby drastically reducing the

products with the applicable laws, and is working

number of production defects.

to keep all of its production facilities fully informed
and up-to-date on changes in the legal environ-

Product Safety Activities

ment. In fiscal 2005, a compliance-diagnosis

Hitachi aims to prevent product-safety accidents

system was developed, and some production

so customers can use our products with full

facilities began to implement self-evaluation andconfidence. In our pursuit of zero accidents, we

diagnosis. This system is slated to be expanded

keep a close eye on any accidents, or risks, thatto all Group production facilities.

might be exposed by the Product Liability Law
Accident simulation conducted for
product safety training purposes,
in which smoke is emitted from an
improperly connected condenser.

of Japan, and we engage a panel of experts to

OCHIBO HIROI

review our performance. Also, divisional meet-

OCHIBO HIROI (gleaning) is Hitachi’s program

ings have been established throughout thefor adopting the customers’ perspective in

Hitachi Group to raise safety awareness throughreflecting on past accidents and working to

the sharing of information and mutual productprevent recurrences. Started in 1951 as a council

safety diagnostics. In fiscal 2005 product safety

for reviewing serious accidents at the highest

activities were further augmented by additional

levels of company management, the credo ofevaluation and testing facilities, accident simula-this program is “The soul of OCHIBO HIROI

tions, and lectures.

is customer satisfaction,” and “Don’t put a lid
on mistakes or problems.” The conscious andEthics Awareness Card†1
On October 13, 1997, Hitachi
received a warning from the thenMinistry of International Trade andIndustry concerning false records onannealing of pipes in nuclear power
plants, and was ordered to prevent
recurrences. Since then, the nuclear
power division of the Hitachi Group,
pledging never to repeat this error,
has designated the 13th of every
month “back to basics and the rightpath day.”

Promoting Compliance with Technical Laws

unconscious causes leading to an accident, as

Amid widespread concern over product liability

well as the direct technical causes of it, are thor-

and the environment, relevant laws have become

oughly investigated to ensure there is no future

increasingly complex. The Hitachi Group is ac-recurrence. Similar products are also examined

tively engaged in promoting compliance withto prevent similar accidents.

technical laws covering manufacture. Based on
the three core themes of understanding legal
trends, developing Quality Management System

Quality Assurance Efforts
in the Nuclear Power Divisioncompliance, and raising compliance awareness,

In the Nuclear Power Division, “safety first” andHitachi has developed a “legal map” linking its“quality” are the watchwords of our operations.
Hitachi distributes its “Ethics Awareness Card” tosome 3,800 employees in this division, as well as
to about 12,500 employees of cooperating com-

Outline of Compliance Diagnostic System

panies, to drive home this message. The 13th

Planning

Specifications

Improving processes

DesignPurchasing

Improving
implementation

Products andservices
Manufacturing

Monitoring
implementation of
improvements*

Successive
monitoring

Customersof every month is designated “Back to Basics

Product Development Process

24

primarily for young technicians, on ethics andcase studies from both Japan and abroad.
Information technologies are used exten-

Field

sively in accident prevention. In an ongoing research and development (R&D) project, Hitachi isconducting R&D on a work history management

Evaluation of processes
and implementation
Compliance Diagnostic Systemand the Right Path Day,” †1 and features lectures,*Monitoring with Hitachi’sCompliance guidelines

system, in which IC chips fitted to workers andequipment automatically generate chronologi-

Easy-to-use and easy-to-understandremote control unit for air conditioners. Users can directly choose theoperation mode and find temperature
settings with the guidance of soundsignals. The remote comes with astrap for hanging from a bedpost.

cal records of “what work was performed when,

Web Accessibility

where and by whom.”

Hitachi is actively engaged in creating information-friendly environments, for easy access to

Universal Design

information. As part of this endeavor, HitachiStanding in the Shoes of Users

researched font sizes, color use, and page lay-

The concept of universal design is to createout for creating accessible web sites. The results

products and services that are accessible to as

were compiled in 2000 as Web Universal Design

many people as possible of all ages, both sexes,

Guidelines. We have continued to improve on

and any physical condition. The Hitachi Groupthese guidelines, which are reflected in the web

stands in the shoes of users to pursue universal

sites of the Hitachi Group companies. Hitachi

designs in a wide range of its products, including

Government and Public Corporation System

consumer electronics and information systems,

Engineering, Ltd. has developed and marketed

as well as public facilities like railway vehicles,“ZoomSight,” a tool for rendering highly acces-

and elevators and escalators.

sible web sites with such features as “text-to-

For instance, development engineers expe-

speech functions,” “adding phonetic alphabet torience what it is like to use a wheelchair and go

Chinese characters,” “enlargement of text andon outings with physically challenged, so they

images,” and “color modification.” “ZoomSight”

can learn first-hand the obstacles to users. The

is currently being used by the Hitachi Group as

knowledge gained from these experiences is put

well as by a wide range of local government

directly to use in developing new products andorganizations and companies.

services. Products brought to market in this way
offer advantages to various users. One example
is easy-to-push elevator buttons, operable using

Promoting Use and Understandingof Universal Design

the elbow or the fist. Such buttons are also easy

Hitachi has been a member of the International

to operate when the arms are full. Another ex-

Association for Universal Design, an organization

ample is remote controls for air conditioners, withdedicated to spreading and developing universal

specially designed sound signals. This featuredesign, since its inception in November 2003.

helps visually impaired users, as well as people

Hitachi is also engaged in furthering understand-using the remote control in a dark room.

ing of universal design among children.

Testing a public information terminal.
Many different types of people wereenlisted to test the terminal fromearly in the development stage.
The views of experts were also
incorporated into the design.

Testing of a vacuum cleaner by
the visually impaired. Workshops
are conducted in which people use
products in order to test usability
and find unnoticed problems.

Web site, created by “ZoomSight,”
with roman characters to show thereadings of Chinese characters.

reportVolunteer Staff Teach Classes
on Universal Design
Hitachi has developed a participatory program
aimed at promoting deeper understanding
with regard to universal design. During fiscal
2005, six classes were held in elementary
schools and as part of community events.
In November, a class was held at an elementary school in Nakano Ward, Tokyo. The
49 participating sixth graders were given a talkon the basics of universal design, followed bya workshop on “how to design a TV remotecontrol for the visually impaired.” The pupils
also engaged in discussions with a visually
impaired guest speaker living near the school
and considered some of the common problems faced by the visually impaired, such as
guide markers and the elevation of sidewalks
from the road. These educational activities
are contributing to a better appreciation ofuniversal design inside the company.

Next Society 25

NextSociety

Working in Harmony with Society
Nurturing People, Connecting to the Future
Committed to this statement,
Hitachi undertakes social contribution activities

Social Contribution Philosophy and Policy

employee to find fulfillment by listening to society
and developing cognitive flexibility and desire,Philosophy
The Hitachi Group strives to demonstrate its corporate citizenship in response to social needs andexpectations, while endeavoring to enrich the quality of life and realize a better society.

as well as the strength to forge ahead. In thisPolicyThe 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 optimaluse of our knowledge and information technology
in three specific areas, namely, education, the environment, and social welfare.

fields of education, the environment, and welfare,way, they will become the force behind Hitachi’s
future.
Hitachi places priority on activities in thewith a commitment to making maximum use of
our resources. We engage in numerous educational activities ranging from support for family
education and the sound development of young
people to scholarships for young researchers
and internationally oriented faculty members
and teacher exchange programs. To work fora recycling society, we apply the environmental

Hitachi’s Social Contribution Activities

technologies and expertise we have acquired

In 2002, Hitachi adopted social contribution

through our business operations to promote

activities as a major corporate endeavor andenvironmental education and assist NPOs. In

formulated a social contribution philosophy andthe field of welfare, we have worked to reduce

policy that are commonly pursued by all Hitachi

the digital divide and provide support to help

Group members. Corporate citizenship activities

the physically challenged people participate inhave been established as one of the items in thesociety.

CSR Policy of the Hitachi Group.
Our commitment to social contribution
stems not only from a sense of duty to the soci-This is the kind of company Hitachi seeks
to be: one that nurtures people and connectswith the future.

ety that supports our business, but also from ourbelief that it will help Hitachi to grow and bringSupport for Volunteer Activities

out our latent strengths. Hitachi’s business is inti-

To give our employees the freedom to volunteer

mately connected with society, and globalization

whenever they want to, we are creating a volun-

continues unabated. To ensure smooth opera-

teer support system centered on Hitachi, Ltd.

tions, it is essential for us to share the values ofthat offers assistance in three areas: providing

the countries and regions in which we operate

information; helping employees obtain leaveand establish relationships of mutual trust withtime; and providing funding.

them. By actively dealing with social issues while
engaging in an ongoing dialogue with people,
we build good relations with our stakeholders,Information: Providing Volunteer Informationand Seminars

including customers and local communities, andUsing our corporate intranet, we not only sup-earn their complete trust.

ply all Hitachi Group employees with information
about volunteering but also hold such events as“Individual Fulfillment”
as a Member of Society

the Hitachi Volunteer Seminars and Corporate

We at Hitachi encourage our employees tovolunteer opportunities.

participate in volunteer activities. We want every
26

Citizenship Evening Seminars, which provide

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

Local
communities

Volunteer activities, etc.

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

Stockholders

Hitachi Group
companies

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

Realization of a better society

Individual fulfillment

Customers

Hitachi Group
employees

Time: Leave Systemcompany on the basis of applications received.

In 1993, we established a special annual paid

In fiscal 2005, seven projects were funded.

leave system to support social contribution activities and self-enrichment. We have also created a

Six Foundations in the Hitachi Groupcumulative annual paid leave system that allows

Since 1967, Hitachi has established six foun-

employees to save four unused paid-leave days

dations in Japan and abroad that are engaged

per year, up to a maximum of 20 days.

in social contribution activities. With the aim ofconnecting humanity to a brighter future, these

Funding: Hitachi Volunteer Support Programorganizations are involved in a wide spectrum of

For social contribution activities conducted by

activities in such fields as science and technol-

NPOs in which Hitachi Group employees partici-

ogy, education, the environment, and interna-pate, Hitachi provides funding of up to 300,000

tional exchange.

yen per project. Projects are selected within the

Six Foundations of the Hitachi Group
Name

Date Founded

Main Activities

The Hitachi Mirai Foundation

1967

This foundation supports activities to prevent juvenile crime and delinquency and promote healthy youth
development. It also supports various corrective education and welfare provided by correctional institutions.
In fiscal 2005, 1,261 elementary school children took part in the 28th Youth Sports Promotion Meet.

The Kurata Memorial
Hitachi Science and Technology
Foundation

1967

This foundation conducts promotional activities and provides research grants including the “Kurata Grants”
for young researchers conducting basic or applied research in fields of science and technology such as
physics, chemistry, electricity and electronics, mechanical engineering, and information science. In fiscal
2005, a total amount of 50 million yen was granted to 38 researchers.

The Odaira Memorial
Hitachi Education Foundation

1971

This foundation promotes family education and school education, awarding commendations for
distinguished services in these fields. In fiscal 2005, 335 mother-and-child pairs took part in the Motherand Child Classes held by Hitachi Family Education Center (Hitachi City) and Hitachi Family Education
Research Institute (Yokohama), which conduct this foundation’s child rearing support activities.

The Hitachi Environment Foundation

1972

This foundation promotes and encourages studies and research on environmental issues andenvironmental preservation activities. In fiscal 2005, it held the “Citizens Taking the Initiative in
Environmental Education Symposium” in four cities—Yokohama, Sapporo, Hiroshima, and Nara.

The Hitachi Scholarship Foundation

1984

Through support for academic exchange and joint research among universities in Southeast Asia
and Japan, this foundation promotes the development of human resources that can contribute to thedevelopment of science and technology in Asia and the mutual understanding among the countries.
(see p. 29)

The Hitachi Foundation

1985

Programs supported by this foundation include: projects aimed at improving the lives of Americans whoare economically and socially isolated; matching fund programs linked to the Hitachi Group companies inNorth America; and awards for high school students in recognition of their community service activities.
(see p. 13)

The Hitachi Mirai Foundation
implements the Children and Future
Support Project in conjunction withJapan Federation of Big Brothers
and Sisters. Last year, the tenth year
since the Great Hanshin Earthquake
struck in Hyogo Prefecture, 54
elementary school children living
in western Japan learned about
the importance of interpersonal
relationships under the guidance ofyoung volunteers.

Next Society 27

Next
Society
Wheelchair Basketball Experience
Workshop: Children watch afast-paced game and then practicepassing and shooting in wheelchairs
themselves and play a short game.

Examples of Activities Pursued
in Fiscal 2005

in emergencies and for disaster prevention. The

Wheelchair Basketball Experience Workshop

November 2005, with a total of 77 people (Hitachi

In December 2005, Hitachi partnered with theGroup employees and their family members) par-Japan Paralympic Caravan Executive Com-

ticipating. Under the guidance of experts frommittee (a non profit organization supported byNGOs and local authorities, participants learned

our volunteer support program) to host the first

how to provide emergency first aid and walked

Hitachi Group wheelchair basketball experiencethrough the streets making emergency maps

workshop in Chiba, Japan. Local elementary andshowing the locations of evacuation routes,

junior high school students participated by firstpublic telephones, fire hydrants, and other key

watching a game played by wheelchair athletes

facilities. These workshop sessions will continue

and then trying the wheelchairs themselves andto be held in different locations.

first workshop session was held in Yokohama inplaying a game with the athletes and the Hitachi
employees who served as supporting staff. We

Hitachi Business Lecture Series at
Waseda University: 12 executives ofHitachi, Ltd. give lectures.

hope that this experience will encourage chil-

Hitachi Business Lecture Series
at Waseda University

dren to think about creating a society in which

For six months beginning in September 2005, theeveryone finds it easy to live. Plans call for the

Hitachi Business Lecture Series was presented atworkshop to be held once a year in various loca-

Waseda University School of International Liberaltions throughout Japan.

Studies. The series featured Hitachi executives
who gave lectures in English on Hitachi’s busi-

As part of their disaster response
volunteers workshop, participants
divide up into groups and walkthrough the streets to make maps
for use in emergencies.

Disaster Response Volunteers
Workshop in Japanness in the global market to an audience of 70

The importance of volunteer action during di-

to help foster future international leaders, the lec-

sasters is now widely recognized. In response,tures were based on concrete cases related to

Hitachi holds workshops for employees and their

the international business environment, researchfamilies to prepare them for action as volunteers

and development, M&A, and brand strategies.

students, including overseas students. Intended

voices
Receiving Training
in Disaster Response
Yoshiko Shibato,
Brand Management Department, Hitachi, Ltd.

We w e re i n t e re s t e d i nvolunteer activities, so I participated with my family. We
learned how important it is forvolunteers both to create andmaintain a network of mutual
assistance and to gain the trust of disaster victims through empathy. We also learned about
how prefectural authorities deal with disasters,
and how to provide victims with assistance28

using materials close to hand. By walking
through the streets and drawing emergency
maps, we identified dangerous locations andconfirmed useful facilities, making the wholeexperience very meaningful.

Participating in the Hitachi-CFR
Fellowship Program
Jennifer Amyx,
Assistant Professor, Department of Politics,
Pennsylvania State University

For six months starting in September 2005, I
worked on a project at the Institute for International Monetary Affairs (IIMA) that was commis-

sioned by Japan’s Ministry of
Finance. I researched Japan’s
relationship with the rest of
Asia, with an emphasis on
the financial strategies ofJapanese companies andtheir relationships with financial institutions.
Through this, I was able to deepen my understanding of Japanese policy issues. Currently
I’m working on a project at the U.S. Treasury
Department concerning Japanese and East
Asian policy. As a specialist in Japanese policy
research, I found the half year I experienced inJapan to be extremely informative and useful.
(see p. 29)

Participating in the 2006 Turin Paralympics
The Hitachi Systems & Services ski group. Miyuki Kobayashi (left photo, right)
won the gold medal in the 12.5 kilometer biathlon and the bronze medal in
the 7.5 kilometer biathlon. Shoko Ota (left photo, left) won the bronze medalin the 12.5 kilometer biathlon.
The Japanese ice sledge hockey team with coach Nakakita (right photo,
second from right)

The lecture series was part of a comprehensive

young instructors in natural sciences fields re-cooperative framework established between

lated mainly to science and technology at univer-

Hitachi and Waseda University in 2004.

sities in Southeast Asian countries are invited toJapan every year. As of March 2006, 21 of these

The Hitachi Scholarshipscholarship students are currently studying at

The Hitachi Scholarship Foundation was estab-leading universities in Japan (the total number oflished in 1984 out of the founders’ belief that forscholarship students including graduates is 128).

the sake of cooperation and progress among

After completing doctoral or masters courses,

Japan and other Asian nations we must notthey return to their countries and foster futureneglect the fostering of Asia’s talented young

generations in their specialist fields as instructors

people. Through the Hitachi Scholarship, one ofat their respective universities.

the Foundation’s principal activities, about five

Examples of Social Contributions Made by Hitachi Group Companies
Activity

Promoting Company

Activity Content

Japan-U.S.-Europe School Teachers
Exchange Program

Hitachi, Ltd.

This exchange program was established to promote mutual understanding among Japan, the U.S., and Europe in cultural,social, and educational fields. In fiscal 2005, nine participants from six countries came to Ibaraki Prefecture in Japan, where
they visited schools and enjoyed a home-stay experience.

Hitachi-CFR Fellowship Program

Hitachi, Ltd.

Established in cooperation with the American think tank CFR (Council on Foreign Relations), this program invites young
leaders from governments, corporations, and universities to Japan to conduct research on the Japanese economy andsociety. Since 1997, 25 people have participated in the program.

Support for Nittoho* Tatara(*The shortened Japanese name for theSociety for Preservation of Japanese
Art Swords)

Hitachi Metals, Ltd. and HMY, Ltd.

This project *1 provides technical support for the recreation of tatara, an ancient Japanese steelmaking process forJapanese sword making that uses foot-operated bellows. In addition to providing for the ongoing training of technicians, it
provides mining concession rights and support for the maintenance of furnaces.

Hitachi Capital Forest

Hitachi Capital Corporation

This was the first project to get underway through the Corporate Forest system established in 1992. The Hitachi Capital
Forest is located in the city of Shizuoka Prefecture in Japan. Every year, the growth of the planted trees is checked, theforest is cleaned, and people are provided with environmental educational opportunities.

Water Purification Activities
in Kasumigaura

Hitachi Construction Machinery Co., Ltd.

Company employees participated in Kasumigaura Citizen’s Association (Japan) and helped to implement a broad range
of environmental programs aimed at purifying water quality, including: tree planting; forest thinning; reconstitution ofwoodlands around water sources.

Hitachi High-Technologies
Yasato Forest Planting Festival

Hitachi High-Technologies Corporation

As part of our environmental conservation activities, we have begun a forestation program that will continue for 60 years. In
April 2005, a forestation festival was held in which 150 employees and family members participated.

Participation in the Turin WinterParalympics (March 2006)

Hitachi Systems & Services, Ltd.

Support was provided for the establishment and activities of a ski group for the physically challenged. The group sent a
coach and four skiers to take part in the Paralympics in Turin.

Hitachi, Ltd. andother Hitachi Group companies

The coach for Japan’s national ice sledge hockey team was dispatched from Hitachi, Ltd.’s Electric Group. Seventeen
Hitachi Group companies provided financial support.

Assistance for the Visually Impaired andGuide-Dog Training

Hitachi Building Systems Co., Ltd.

As part of efforts to assist the visually impaired, this program has contributed to the Japan Guide Dog Association since
1993 and established a matching gift program in 1997 to support the training of guide dogs.

Participation in Red Nose Day

Hitachi Europe, Ltd.

Employees of Hitachi Europe, Ltd. participate in “Red Nose Day,” during which they dress up in red suits like clowns andraise funds for disadvantaged children.

Support for Shanghai Hitachi
Hope Primary School

Shanghai Hitachi Household Appliances
Co., Ltd.

This project provides support for the reconstruction of schools devastated by the flooding of the Yangtze River, and ongoingprovision of funding, school supplies, and goods for daily life. In fiscal 2005, the program was awarded a commendation by
the Shanghai Chamber of Commerce.

Support for Affected Areas andVictims of the U.S. Hurricane Disaster

Hitachi Group (North America)

A donation of one million dollars was provided to assist with rehabilitation. A Hitachi Cable Group company*2 conductedsupport activities in the affected area and Hitachi Data Systems Senior Vice President Rod McCowan was appointed CEO of
a recovery corps*3 by the governor of Louisiana.

*1: In the 1970s, a group of people involved in traditional Japanese sword making established the Society for Preservation of Japanese Art Swords.
*2: Oxford Wire & Cable Services, Inc. (OWCS) (U.S.A.)*3: The Louisiana Family Recovery Corps

Next Society 29

Working in Harmony with Society
Topics for Fiscal 2005: The 2005 World Exposition, Aichi, Japan

Striving for Coexistence ofPeople andAll Other Living Things—Contact with Endangered Species through IT

Through their contact with simulated endan-

1.7 Million Visitors

gered species, visitors were able to experience
the wonder of humans coexisting peacefully withAt the 2005 World Exposition held in Aichi,

other living creatures.

Japan from March 25 through September 25,
2005, the Hitachi Group sponsored the “Nature
The barrier-free design included
deep counters and other amenities
to ensure that patrons in wheelchairs could comfortably enjoy theactivities.

Attendants and service crew
members bid farewell to the lastvisitors as they leave the pavilion.

Entertainment Ride,” which drew more than 1.7

The Hitachi Group Pavilion was constructed andmillion visitors.

operated with new technologies to reduce the

The Hitachi Group Pavilion utilized advanced

burden imposed on the natural environment,

information technologies to create an unprec-

with an emphasis on new energy sources andedented attraction that “revived” endangered

recycling. Bifacial photovoltaic solar modules de-species and allowed visitors to interact withveloped by Hitachi were installed on the outsidethem as if they were really there. Visitors also

to power some of the building using sunlight, thereceived special simulation software that enabledcleanest and most environmentally friendly power

them to meet again with endangered-species

source available. In addition, with the target ofcharacters that they had “raised” at home on

100% of the concrete, asphalt, wood, and steel

their own PCs, and could download to their own

being recycled, we achieved the overall recycling

computers photos of themselves taken inside

rate of more than 98% for all the materials used

the pavilion. In these and other ways, Hitachi

to make the pavilion.

presented proposals for realizing a ubiquitous
information society.

Comments from Visitors“This is the most fun I’ve ever had in
my life.” “I was really surprised when
I saw the animal I had raised throughthe binoculars.” “I’m grateful that myoldest son said that his dream was
to find work to help protect wild
animals.”
These are just some of the enthusiastic comments Hitachi received
in response to the “Nature Contact”
attraction. Now that the expo is over,Pavilion Concepts Moved to
the Science Museum
The concepts behind the Hitachi Group Pavilion

voices30

Concern for the Environment

Contact—Hitachi Group Pavilion’s Ubiquitous

have been reinstalled at the Hitachi Booth in thewe continue our commitment to conveying the importance of harmonious
coexistence between humans and allother living creatures.

“I didn’t just see him —I met him.”
This advertisement
thanking the public cameout on September 26,
2005, the day after the2005 World Exposition,
Aichi, Japan closed.

Science Museum (Tokyo, Japan). This attraction
offers new virtual experiences for visitors whoseek contact with nature and animals.

The Hitachi Booth at the Science
Museum has a table display thatgives visitors the virtual experience ofinteracting with nature and animals.

Partnership with Shareholders and Investors
Timely, fair and unbiased, and accurate—these are the watchwords ofthe Hitachi Group as it responds to the needs of shareholders andinvestors by making management as transparent andinformation as widely available as possible.

Trends in Shareholder Composition (%)

Disclosure: Accurate Information
in a Timely Fashion
The Hitachi Group places importance on inform-

Financial Institutions andSecurities Firms

Individuals

Foreign Investors

30.62

29.79

34.66

March 2004

ing stakeholders of its current business conditions

Others Institutions
4.92
Governments
0.01
3.96
0.00

and future outlook in a fair, unbiased, accurate,
March 2005

and timely fashion. Hitachi led the industry in

27.90

31.67

36.47
3.75
0.00

releasing its consolidated financial statement
March 2006

back in 1959, and since 1963 we have been

27.12

29.54

39.59

compiling consolidated financial tables using
U.S. accounting standards to enable assessment
and comparison of Hitachi Group performanceally given on June 1 each year and posted on

by international criteria. We have also released

our website, to ensure that shareholders have ad-financial statements every quarter since fiscal

equate time to study all motions on the agenda.

2002. In these and other ways, we are striving toenhance the transparency of management andpromote full disclosure of information.

Results of External SRI †1 Assessments
in Fiscal 2005
The Hitachi Group is eager to cooperate in theInvestor Relations

external assessments required for inclusion in

In the Hitachi Group, investor relations are

the major SRI (socially responsible investment)

founded on ongoing disclosure of information inindexes, and we have received high marks incompliance with all relevant laws and regulations.

those evaluations.

At Hitachi, Ltd., top executives, the financial,

In fiscal 2005, Hitachi, Ltd. was selected forlegal, and corporate communications divisions,the sixth straight year as a recommended stockand each business division work together toby the Dow Jones Sustainability Index †2 com-hold a wide range of meetings for this purpose,

piled by SAM Group. In addition, a large number

including business briefings and tours of ourof Hitachi Group companies were included in

manufacturing and research facilities for inves-

EIRIS’s FTSE4Good Global Index †3 and thetors and analysts, as well as investor meetings

Morningstar SRI Index.

sponsored by securities firms. We seek feedback

Significantly, Hitachi was named the number

from shareholders and investors and work hard

one ranked company in the 2006 Roberts Envi-

to incorporate it in our management and busi-

ronmental Center Sustainability Index Scores forness operations.

the “Electronics, Semiconductor, and Peripherals
Sector.”An “R&D Information Meeting”
held in April 2006 for analysts andinstitutional investors†1 Socially Responsible
Investment (SRI)
An approach to investing in whichstocks are selected partly on thebasis of criteria relating to corporatesocial responsibility (CSR).
†2 DJSIThe Dow Jones Sustainability
Index, developed by the Dow Jones
Corporation (U.S.) and SAM Group(Switzerland), evaluates companies
based on economic, environmental,
and social performance.
†3 The FTSE4Good Global Index
An index developed by EIRIS (U.K.),
which evaluates corporations basedon their environmental, social, andhuman rights performance.
WEB

2006 Roberts Environmental Center
Pacific Sustainability Index Scores
http://www.roberts.mckenna.edu/
PSI/pdf/Electronics2006.pdf

General Meeting of Shareholders
At Hitachi’s Ordinary General Meeting of Shareholders, we offer audio-visual reports designed
to give shareholders a thorough understanding

Results of External SRI Assessments in Fiscal 2005of the company’s situation. Management mat-

Institution

SAM

EIRIS

Morningstar

ters are presented by the President and Chief

Index

DJSI

FTSE4Good Global Index

SRI Index

Companies
selected

Hitachi, Ltd. /Hitachi
ChemicalCo., Ltd.

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

Hitachi, Ltd. / Hitachi Metals, Ltd. / Hitachi
Construction Machinery Co., Ltd. / Hitachi
Maxell, Ltd. / Hitachi High-Technologies
Corp. / Hitachi Transport System, Ltd. /Hitachi Information Systems, Ltd.

Executive Officer, and much of the informationis posted on the Hitachi website following themeeting.
Advance notification of the meeting is usu-

Next Society 31

Next
Society

Working Together with Suppliers
The Hitachi Group procures raw materials, parts, and services
from companies around the world.
We are committed to building partnerships with our suppliers
to provide highly reliable products and services.

Basic Procurement Policies

responsibilities are fulfilled throughout the supply

Hitachi, Ltd. has established the “Guidelines forchain.
Hitachi is also participating in the creation

WEB

Procurement Activities” to serve as the basis of

Hitachi Group Procurement
http://www.hitachi.com/
procurement/

all transactions. The basic policies include:of guidelines for promoting CSR throughout the(1) Respecting the principle of fair competition

supply chain, a project being undertaken by

and guarantee equal business opportunities

Japan Electronics and Information Technology

for companies around the world;

Industries Association.

(2) Choosing suppliers on the basis of appropriate procedures by evaluating the quality of the

Collaborations with Good Partners

materials, prices, delivery time, the reliability

The Hitachi Group partners with suppliers toof management and technical development

conduct “Value Engineering for Customers,”

capacities as well as whether the supplier isor VEC activities. These activities are aimed atfulfilling its corporate social responsibilities;

improving design, materials, processing, andandother areas in order to provide customers with

(3) Promoting long-term, trust-based relations
with suppliers by sharing CSR philosophy andcreating positive partnerships.

high performance products and services.
In developing a compact, large-capacity
refrigerator with outstanding energy efficiency,
one issue we faced was the development ofHigh-performance, energy-efficient
refrigerator developed jointlywith Okura Industrial (R-SF42VM)

Sharing Our CSR Philosophy
with Suppliers

vacuum insulation with exceptional insulating

Sharing information on CSR activities is essentialCo., Ltd., a company with advanced technicalto building a business model in which our sup-capacities in the field, to develop the vacuum

pliers develop as we develop. The CSR Policy

maintenance film (the most important part in vac-of the Hitachi Group sets forth the principle

uum insulation). We succeeded in making a film

“Responsible Partnership with Business Part-

that reduced energy consumption by some 25%.

ners,” and we convey the importance of CSR to

The manager of the Technology Department at

suppliers at policy presentations.

Okura Industrial Co., Ltd. remarked, “Creating

performance. We worked with Okura Industrial

Added to the criteria for selecting suppli-

a high value-added product by working withers in the Guidelines for Procurement Activities

Hitachi to fuse new technology with a material

in April 2005 were respect for human rights,

we developed was a very significant endeavor.”

environmental protection activities, socialWEB

contribution, and the creation of good working

Green Procurement

Green Procurement
http://greenweb.hitachi.co.jp/en/
ecoproducts/green/index.html

conditions. We communicated these criteria to

The Hitachi Group encompasses a wide vari-

our approximately 4,700 Japanese suppliers

ety of business sectors, and we manufacture

and requested that they promote CSR together

and sell a large range of products for eachwith Hitachi. We are currently developing similarindustry and service. In order to promote more

activities for suppliers outside Japan and thosewidespread green procurement, we issued theof our Group companies.

Green Procurement Guidelines in July 1998.

WEB

Green Procurement Guidelines
http://greenweb.hitachi.co.jp/en/
ecoproducts/green/guideline.html

32

Looking ahead, we plan to monitor the

The Guidelines were written to share awarenessprogress of suppliers in promoting CSR andregarding environmental conservation activities

then consider how to ensure corporate social

with suppliers so that our Monozukuri (PLM andGreen Procurement Guidelines

Total SCM) manufacturing processes comply

Support for Green Supplierswith environmental CSR policies. In addition to

The Hitachi Group is promoting HI-KES through aworking to procure parts (products) and services

collaboration with the KES Certification Division.

that incorporate environmental impact reduc-

HI-KES is a program for promoting environmen-

tion measures, we are also asking more of ourtal conservation activities together with suppliers

suppliers inside and outside Japan to actively

who have not acquired ISO14001 certification.

participate in green procurement. As a part ofSuppliers that have acquired KES certification

this effort, as outlined below, we are expanding

attend a Hitachi environmental seminar and join

our network of green suppliers and providing

the HI-KES Club, which provides opportunities tosupport for them.

share information on environmental initiatives that

†1 KES“KES Environmental Management
System Standard” promoted underthe “Miyako Agenda 21 Forum”
program.
†2 Eco Action 21
System to evaluate environmental
activities created by Japan’s Ministryof the Environment.
†3 Eco Stage
Evaluation system for supporting environmental management promotedby the Eco Stage Institute.
†4 A Gree’ Net
An Internet-based system developedby the Hitachi Group for collecting
information on supplier environmental activities and chemical
substances in procured products.

contribute to member companies’ operations.

Expanding Green Suppliers

In addition, with a view to reducing the en-

While ISO 14001 certification serves as proof ofvironmental impact of products throughout theira supplier’s active commitment to environmental

lifecycles, we updated and published our Green

conservation, we also encourage suppliers to

Procurement Guidelines in October 2005, incor-

adopt simpler approaches, such as registoring

porating mechanisms for managing chemical sub-under the Hitachi Environmental Certification

stances contained in procured products. These

Scheme. Small and medium-sized suppliers

guidelines were provided to suppliers and efforts

who have acquired certification in an environ-

were made to unify awareness of this issue.

mental management system, either KES †1, Eco
Action 21 †2, or Eco Stage †3, and who agreewith Hitachi’s approach to green procurement,

Green Supplier Ratio

are registered as “green suppliers.” This systemstarted in October 2003.
One of the indicators we use to trackprogress in environmental conservation at eachproduction facility is the green supplier ratio. We
recorded a green supplier ratio of 70% in fiscal
2005 and are targeting 100% by the end of fiscal
2006.

(Target Value)

(%)

(100)

100
80
60

60

70

40
20
0

2004

2005

2006 (FY)*Data from 47 Hitachi Group manufacturing companies,
including Hitachi, Ltd. (as of March 2006).

Hitachi requests that suppliers disclose

ISO 14001

low environmental impact. We also have themregister this information along with informationon their environmental conservation initiatives inour green procurement system, “A Gree’ Net” †4.
Presentations and lectures are held inside and

KES
Promoted by Hitachi, Ltd. in cooperation with the KES Certification Division

Eco Action 21

outside Japan in order to encourage use of thissystem among greater numbers of suppliers.

Eco Stage

Registered as Green Supplier

curement of parts (products) and services with

Hitachi Environmental Certification Scheme
Register with Green Procurement Systemdelivered materials in order to facilitate pro-

Attend “Hi-Green Seminar” *information on environmental compliance on*Hi-Green seminars facilitate understanding of Hitachi’s approach to green procurement

Next Society 33

NextSociety

Employees Make Hitachi What It Is
Motivating employees to put forth their best efforts.
Hitachi is what it is today because of the day-in, day-out efforts of its employees.
Hitachi is committed to human resources development andcreating a better work environment.

Creating a Work-Friendly
Corporate Culture“360-Degree Feedback Program”

Hitachi is transforming its corporate culture,

workshops to understand feedback from their

guided by three key words. “Openness” tosuperiors, colleagues, subordinates, and juniorencourage frank communication and to pro-staff members, with the help of expert instruc-vide employees with opportunities to express

tors. It helps managers have a new understand-their full potential. “Challenge” to aspire to highing of their strong points and weak points, andgoals and transformation. “Diversity” to respect

develop their capability.

In this program, about 10,000 managers attend

individuality. Through this approach, Hitachi isendeavoring to nurture human resources that

“Challenge” Nurtures Positive Attitude

meet the requirements of the age and to create

Human Resources Development

a better work environment in which outstanding

We pay close attention to capacity-building andhuman resources can give full expression to their

the career development of our employees. In

individual capabilities.

addition to on-the-job capacity building, Hitachi
operates the following six educational programs:“Openness” Promotes Capacity-Building“Management Development,” “Education for En-

Personnel Systems

gineers,” “Production Worker Training,” “Educa-

At Hitachi, Ltd., our personnel system is designedtion for Internationalization,” “Sales Education,”to assess the strengths and achievements ofand “Training by Job Function.” Furthermore,

employees fairly and transparently and to reflectgroup-wide training and education is conducted

these findings in salaries and bonuses. Elements,

at the Hitachi Institute of Technology, the Hitachi

standards, and methods of evaluation are fully

Institute of MONOZUKURI Skills and Engineer-

disclosed as employees meet their evaluators toing, and the Hitachi Institute of Management

arrive at a shared assessment. In the course ofDevelopment.

these discussions, employees receive feedback

In career development, we believe growthon their strengths and weaknesses as well as

is realized through mutual understanding of theguidance on achievement of business goals

individual’s wishes and goals and the company’s

and capacity building. An evaluation manual

expectations. For this purpose, Hitachi provides

is used to minimize disparity. As a further step,

various types of opportunities for self-realization

employees are surveyed annually to review theand personal growth through work.

evaluation process, and follow-up work is done
†1 ACE Training
Advanced Course for Creative
Engineers aims to train businessintegrators.

34

to ensure its proper management.

Engineer Education: ACE Training †1

Launched in 2001 by the Hitachi Group, thisSurvey of All Employees

training program is geared to educating busi-

Hitachi, Ltd. conducts an annual survey of all ofness-development integrators. The aim here is

its 41,000 employees to check on such matters

to hone the conceptualization and management

as employee satisfaction, workplace culture, andskills required for proposing new businesses

views on management. Known as the “Businessand acting as its development leader. Trainees

Process and Opinion Survey” (B.O. Survey), thereceive instruction from executives, superiors,survey is conducted through the Intranet. Re-

and institute staff over around nine months whilesults are analyzed for each workplace and areformulating medium-term business plans and theused in personnel policies and business culture

technical vision and action plans needed for theirtransformation.

realization.

Male/Female Employee Ratio

Number of Newly Graduated Recruits in Fiscal 2005

(March 2006)

FemaleFemale14%

Female
19%

15%

Total
newly graduated recruits

38%

Engineering andsciences graduates

Male

Male

Liberal arts
graduates

85%

81%

86%

Female

62%
Male

Male
*Data: Hitachi, Ltd.

Training Hitachi Group Managers
for the Global Scene

Energizing Human Resources

The Hitachi Group is engaged in training man-

have adopted an open approach to personnel

agers for work on the global scene by offering

placement. Established to enable employees to

the Global Strategy Course (GSC) and Interna-

apply for job openings and transfers, the “Grouptional Management Course (IMC) to managers

Open-Placement System” †3 received a total of

in Hitachi’s overseas subsidiaries. GSC features

440 applications during fiscal 2005, resulting in the

joint discussions of group management issues

transfer of 58 employees to jobs of their choice.

Hitachi, Ltd. and the Hitachi Group companies

by domestic and overseas managers. In IMC,

Hitachi, Ltd. has also created an “Intra-

young managers from all parts of the world comecompany Free Agent (FA) System” allowing

together to learn intercultural management skills

employees to apply directly for transfers to otherand to discuss related case studies. While nur-divisions. During fiscal 2005, a total of 100 appli-

turing a global perspective, these courses con-cations were received, leading to 22 transfers.

tribute to group unity by sharing the corporate
philosophy of the Hitachi Group and exchanging“Diversity” Respects Individuality

information on group businesses.

Responding to Declining Birth Rates
and the Aging Society

Establishing a Unified Learning Platform
for the Hitachi GroupIn 2000, Hitachi, Ltd. introduced the “Gender-“Hitachi-LearningGate” was introduced as aa better work environment by eliminating gendergroup-wide e-learning platform to expand theconsiderations from personnel assignment andrange of learning opportunities for employees

by striving to maintain a balance between workand has some 260,000 users. In this learningand family life. Hitachi employees are entitled toenvironment, courses required for all employeesmaternity leave extending to the end of Marchas well as a wide selection of elective courses

following the first birthday of the child.†4 They cancan be taken. In particular, law-related courses

also opt for shorter working hours until the childare widely used by group companies to speedilyreaches the third grade. Hitachi has adopted adevelop a shared understanding of newly en-re-employment system allowing persons to re-forced legislation. Overseas group companies

sume their jobs after retiring for such reasons as

are also promoting the use of this platform,childrearing, long-term care of family members,

including a trial course on brand education thatand transfers of spouse.

was introduced in fiscal 2005 by Hitachi’s North
American affiliates.

Free and Family-Friendly Plan” (F.F. Plan), creating

Hitachi Group e-Learning System
Hitachi-LearningGate†2
Career Development Workshop
A total of about 2,000 employees
have participated in workshops since
October 2002 (as of March 2006).
†3
Group Open-Placement System
Originating in Hitachi, Ltd., thesystem was expanded in March
2004 to cover other companies
in the Hitachi Group, with 20
participating companies as of March
2006. More than 380 employees
have transferred using this systemsince its inception in 1991.
†4
Extension of maternity leave
Maternity leave can be extended bya maximum of six months from theend of the maternity leave period(end of March following the firstbirthday of the child).

The Hitachi, Ltd. Labor Union operates a
day-care center for Group employees known as“Genki Club.” Located in the Labor Hall of the

Supporting Career Development

Union’s Software Division, the day-care center

The “Career Development Workshop” †2 is thehas the full support of Hitachi, Ltd. and 20 Group

core component of the “Career Development

companies. The facility provides full-time care for

Support Program” of Hitachi, Ltd. Primarily aimed

23 children and temporary care for 2 children (asat employees in their thirties, the workshop is de-of March 2006).

signed to help participants deepen career under-

In response to the aging of society, a “life-

standing, engage in career planning for the future,plan selection system” was introduced in Apriland promote self-realization through work.

2001. By offering re-employment after age 60,
the plan aims to provide post-retirement work

Number of People
Using Maternity andLong-Term Care Leaves andShortened Working Hours
April 2005 – March 2006

Maternity leave
Male 6; Female 183
Long-term care
Male 2; Female 5
Shortened hours
Male 2; Female 94*Data: Hitachi, Ltd.

Next Society 35

Next
Society

Labor Accident Rates (per million hours)

Ratio of the Physically Challenged(%)(Number)

2.0
1.8
1.6
1.4
1.2
1.0
0.8
All industries
0.6
Manufacturing industries 0.4
Electrical industry
0.2
Hitachi
0.0

1,300
1,150

(%)

1,249

1.93

1.88

Statutory
requirement

1.82

1.80

1.76
1,007

1,000

2.0

926

1.66
822

850

1.5

731
700
2001

2002

2003

2004

2005 (FY)*Rates for all industries, manufacturing industries, and electrical industry reflect accidents resulting in four or moredays of absence. Rates for Hitachi, Ltd. and Hitachi Group reflect accidents resulting in one or more days of absence.

0

June
2001

June
2002

June
2003

June
2004

June
2005

0

*Data: Hitachi, Ltd.

opportunities to willing employees and to thereby

Review of Corporate Pensions

contribute to maintaining a vital company. The

Responding to changes in employment patterns

system offers reemployment opportunities inand the legal system, Hitachi, Ltd. has thoroughly

specified jobs at Hitachi, Ltd. and Group compa-

reviewed its retirement allowances and pensions,nies to interested employees who have reached

and introduced a defined-contribution pension

the age of 60.

plan at an early stage. In addition to encouraging
the active involvement of employees in their own

Promoting Employment for
the Physically Challenged

post-retirement planning, this system is aimed at

Having actively promoted employment and cre-introduced in 2003 to raise on-the-job aware-ation of job opportunities for physically challenged

ness of the pension plan by giving employees apersons, Hitachi, Ltd. has achieved an employ-clear picture of their pension-fund balance.

promoting self-reliance. A cash balance plan wasment ratio for them of 1.93%, exceeding the level
required by law. But the ratio for the entire major

Securing the Safety of Employees

affiliated companies stands at 1.69%, falling

We endeavor to maintain and improve safety andshort of the statutory requirement. The resources

hygiene standards under the motto, “Protect-of the Hitachi Group are being brought to bear

ing the safety and health of employees comesto promote employment and to rectify this situa-

before all else.” Experiences accumulated overtion. For instance, Group companies participate

long years are put to effective use as part of our†5 EAP
Employee Assistance Program providing employees with psychological,
physical, and social support.

in joint interviews of challenged persons, and the“safety and hygiene knowledge.”WEB

The basic policies of Hitachi, Ltd. on
HIV/AIDS have been applied to the
Hitachi Group since 1995.
http://www.hitachi.com/csr/society/member/safety/index.html

relevant staff provide advice and information on

In the area of employee health, a healthsuccessful cases to Group companies that havecounseling office provides support, while a spe-

yet to reach the required level. Efforts are also

cialist team of physicians and industrial healthbeing made to improve the work environment

staff works to promote health. An EAP †5 Centerfor challenged employees, including creation ofhas also been established within the company

an Intranet-based counseling service.

and an EAP counseling service helps resolve
problems through face-to-face, telephone, andonline counseling. While giving due consideration

voices“It’s comforting thatit’s so close to work.”
Kumiko Saito
Software Division, Hitachi, Ltd.

“We have been using Genki Club for ayear now, since I got
back to work aftermaternity leave. It’s in
the building where I
work, and it is comforting to know that
I can be with my daughter immediately
if there is ever any problem. I guess
most parents see their children off every morning, but my daughter shares36

to protection of privacy, findings from these
the commute, and sends me off to
my job with a big smile. She has a lotof friends there, and enjoys herself. I
really like it, too, since it allows me towork without worries.”

programs are relayed to management for use inimproving the work environment.
The Hitachi Group is working together tocope with asbestos-related health problems. To
alleviate any health concerns, the Group companies pay for and provide medical examinations
to all current and former employees who haveworked with asbestos. In case the decline ordamage of the buildings or facilities in whichasbestos was used may cause exposure to thedust, we take steps such as removal, contain-

Genki Club

ment, and enclosure.

Hitachi Global CSR Activities

North America

message

Hiroaki Nakanishi

Executive Vice President andExecutive Officer, Chief Executive
for North America, Hitachi, Ltd.

Corporate social responsibility (CSR) is no longer just a buzzword. Being highly responsible
partners in the communities in which we operate is a given. Being intensely sensitive to ourenvironment is how we must operate to be a successful global company. I am proud of theperformance of the Hitachi Group of companies in North America as active participantsin conservation efforts and in helping the needy in our communities.
We welcome all Hitachi people in North America to join with us in sustaining excellent
relationships with our stakeholders and being active participants in our communities andsociety at large. Good corporate social responsibility is a critically important componentof our brand and our DNA.

Grassroots Activity by
Community Action Committees (CAC)

Hitachi Production Affiliates Receive
Environmental Awards from California

Reading to schoolchildren, feeding the hungry,

For outstanding achievement in environmental

comforting the elderly, mentoring high school

protection and waste reduction, two Hitachi

students, donating blood, and participating incompanies have been recognized by thedisaster relief efforts are just a few of the many

California Integrated Waste Management Board

ways that Hitachi companies and employees inthrough its Waste Reduction Awards Program

North America connect with their communities.

(WRAP). Each business is judged based upon

The Hitachi Community Action Partnership,

its own accomplishments. Hitachi Automotive

a collaboration of Hitachi North America com-

Products (USA), Inc. in Torrance, and Hitachi

panies and The Hitachi Foundation, promotes

Global Storage Technologies (Hitachi GST) in

community involvement and corporate social

San Jose, were honored as two of the state’s

responsibility through a network of employee-

top winners of the WRAP for the Year for 2005.

driven Community Action Committees, number-

In 2004, Hitachi Automotive Products

ing 30 throughout North America, with several(USA), Inc. diverted more than 1.8 million pounds

thousand Hitachi Group employees participating(869.5 tons) of materials from disposal and saved

as volunteers.

720,000 dollars by utilizing used cores instead ofCalifornia Environmental Award(WRAP) received: A member of the
California Integrated Waste Management Board visits a plant of Hitachi
Automotive Products (USA).

new product for manufacturing. In 2004, Hitachi
GST recycled about 72% of the solid waste generated at the site, diverted 1,750 tons of material
in 2004, and saved an estimated 20,000 dollars
thanks to the resale value of the materials.

CAC activity: The “North American Food Drive” is one CAC activity. HitachiGroup employees deliver foodstuffs by car to underprivileged people in a
number of places in North America.

Next Society 37

Hitachi Global CSR Activities

Europemessage

Sir Stephen Gomersall

In today’s competitive business environment, companies need closer relationships with
their stakeholders and communities to achieve long-term success. Hitachi in Europe works
in partnership with our stakeholders to ensure we meet their business expectations, whilst
also building trust and awareness in the Hitachi brand.
Hitachi’s mission is to act as a good corporate citizen by contributing technology forthe economic, social, and environmental benefit of society. To strengthen our CSR activities
in Europe we are uniting the efforts of our Group companies to build Hitachi’s reputation
as a responsible company, partner, and contributor to European society.

Chief Executive for Europe

The EU Science andTechnology ForumThe Twinning Project uses the information and communication technologies (ICT)of Hitachi’s interactive whiteboards to enable

The EU Science and Technology Forum wasEnglish and Japanese schools to share in each

The eighth EU Hitachi Scienceand Technology Forum: Professor
Alessandrini of the University ofRome addresses the Forum.

founded in 1998 as a realization of Hitachi’sothers’ culture, whilst enhancing curriculum of-founder Namihei Odaira’s commitment to “Con-ferings by increasing student interest in foreign

tribute to society through technology.” The objec-

languages and understanding of ICT.

WEB

tive of the Forum is to contribute to public policies

The project forms part of a wider campaignthat will improve the daily life of EU citizens, bydeveloped by the Department for Education

creating a platform for the sharing of knowledge

Services to prepare schoolchildren and young

among Hitachi’s scientists and researchers andpeople for working with different cultures and na-

leading experts from academia and industry.

tionalities. This is achieved by twinning schools

EU Hitachi Science andTechnology Forum
http://www.hitachiforum.com

The eighth Forum was held in Athens, Greece
Hitachi Software Engineering Europe(UK) Ltd.’s educational support project.
Japanese Minister of Education, Culture, Sports, Science and Technology
Kenji Kosaka listens to an explanationof the School Twinning Project, whichmakes use of an interactive whiteboard.
WEB

The School Twinning Project(London Grid for Learning)
http://www.japan.lgfl.net/

from the 20th to 22nd of May, 2005. It brought
together around 130 technologists, executives,and policy-makers on the theme “Technology
and Its Impact on the City of the Future.” After the38

countries to share information.

Volunteer Activities—The Maidenhead
Christmas Shopmobility

forum a summary of the findings was widely dis-

The Maidenhead Christmas Shopmobility (U.K.)

tributed to officials of the European Commission,

was started in 1995 to help local elderly andmembers of the European Parliament, academia,

disabled people to do their Christmas shopping.

business partners, and opinion leaders, as a

In order to achieve this Hitachi Europe Ltd. works

contribution to the EU public policy debate.

with NPO, Maidenhead Shopmobility. The event

Education Support Program—School Twinning Project
Christmas Shopmobility: A Hitachi
Europe employee helps a seniorcitizen in a wheelchair as part of theChristmas Shopmobility program.

across the globe, enabling children in different

for 2005 was held with the help of volunteers
from Hitachi Europe Ltd. who helped: pushwheelchairs, carry shopping bags, and escort

Hitachi Software Engineering Europe (UK) Ltd.

their elderly or physically challenged partners

recently launched a School Twinning Project in con-around town to enjoy the Christmas entertain-

junction with the London Grid for Learning (LGfL).

ment provided by the shops.

Hitachi Global CSR Activities

Asia

messageShunsuke Ohtsu
Managing Director
Hitachi Asia Ltd.

For many years, the Hitachi Group has responded to the economic, social, and environmental needs of Asia. Such responsiveness is based on Hitachi’s founding ethos of “harmony,”“sincerity,” and “pioneering spirit,” and the fact that we have emphasized on building
relations of trust with local communities and governments.
Our social contribution projects and programs have provided technology, know-how,funding, and manpower to countries throughout Asia, fostering beneficial changes in Asia’s
economies, societies, and environment, while building a foundation for Hitachi Group
operations in the region.
Our task is to pass on the founding spirit of Hitachi to the next generation, whileworking in harmony with communities in Asia.

workshops, and community work. The seventhSingapore: Christmas Light-Up 2005

HYLI was held from July 11 to 16, 2005 in
Kuala Lumpur, Malaysia on the theme “Balancing

Hitachi continued its support of the Orchard

People, Planet, and Profit in Asia’s Future.”

Road Christmas Light-Up for the 15th year. Since
1991, we have helped to brighten Singapore’s

Thailand: Hitachi Library Project

tourist belt while contributing to 146 social service programs.

Since 1993, Hitachi Asia (Thailand) Co., Ltd. has

Through the Christmas Light-Up, the Hitachi

been providing school books and educational

Group of companies in Singapore raised funds

materials to elementary and junior high schools

to support social service programs under fourin Thailand’s remote areas through the Hitachi

areas: Nurturing Children to Succeed, Dignify-

Library Project. The Hitachi Library Project aims

ing the Lives of the Elderly, Keeping Families

to enhance students’ knowledge and reading

Together, and Helping People with Disabilities

skills. To date, 160 schools in rural Thailand have

Lead Independent Lives.

benefited from the project.

As a result of Hitachi’s unwavering supportof the Christmas Light-Up, we were conferredThailand: “White Factory”

the Special Recognition Award by the Singapore
Tourism Board (STB) on March 2, 2006.

Singapore’s Orchard Road Christmas Light-Up: Funds raised throughthis event contribute to 146 social
service programs.

Hitachi Young Leaders Initiative: The
seventh HYLI was held from July
11 to 16, 2005 in Kuala Lumpur,
Malaysia, bringing together 24
university students selected fromSingapore, Indonesia, Japan,
Malaysia, the Philippines, andThailand to discuss the theme“Balancing People, Planet and Profit
in Asia’s Future”.

Hitachi Chemical Automotive Products (Thailand)Co., Ltd. (HCAP) is one of five companies in

Hitachi Young Leaders Initiative

Rayong invited to participate in the nation’s antidrug exhibition promoting drug-free workplaces.

The Hitachi Young Leaders Initiative (HYLI) is

Initiated by the Department of Labour Protection

a community relations program developed by

and Welfare under the Ministry of Labor andHitachi in Asia in 1996. Reflecting Hitachi’s

Social Welfare of Thailand, the project provides

long-term commitment to Asia, HYLI aims toemployers and workers with information on drug

identify and groom potential Asian leaders. The

prevention and supports internal policies for drug

one-week program comprises a forum, student

prevention in factories.

Hitachi Library Project: Children at
Ban Nam Om-Noi School (Thailand),recipient of book donations fromthe project.

Next Society 39

Hitachi Global CSR Activities

China

message

Minoru Tsukada

Vice President andExecutive Officer of Hitachi, Ltd.
Chief Executive for China

The Hitachi Group believes that making a positive contribution to the resolution of theissues faced by society is an important corporate responsibility. As a member of Chinesesociety, our company not only provides products and services to satisfy the needs of the customers, but also maintains open and transparent operations as we fulfill our social responsibilities to preserve the environment, to ensure ethical behavior and respect for the law, toachieve harmony with local communities, and to meet the needs of our employees.
We aim to achieve a richer and more vibrant society, hoping to provide new values
and dreams. We are aiming to become “The Most Trusted Partner in China” to all Chinese
people, and will continue our efforts to earn that trust.

Promoting Corporate
Social Responsibility (CSR)

Planting trees: A forestation projectin the Horqin Desert of China’s
Inner Mongolia Autonomous Regioncommissioned by Hitachi Construction Machinery (Shanghai) Co., Ltd.
from the environmental NGO Green
Network. The project is not only
expected to help arrest desertification, but also to contribute to thevitality of the region by creating local
employment opportunities.

China Fellowship Program Research
Seminar: Mr. Liejun Wang, Development Research Center of the StateCouncil of P.R. China, giving a reportat the seminar.
†1 Academy of Macroeconomic
Research, National Development
and Reform Commission
Chinese Academy of International
Trade and Economic Cooperation,
Ministry of Commerce of thePeople’s Republic of China; Development Research Center of the StateCouncil; Chinese Academy of Social
Sciences.

project in the Horqin Desert in the Inner Mongolia
Autonomous Region, and the establishment by

In fiscal 2005 Hitachi (China) Ltd. prepared a

Shanghai Hitachi Household Appliances Co.,

Chinese edition of the Hitachi CSR Report andLtd. of the Shanghai Hitachi Hope Primary

Guidebook for distribution to Hitachi Group com-School in Jiangxi province.

panies in China, and in December established a

In addition, Hitachi sponsors the Hitachi

CSR Implementation Committee within Hitachi

Cup Chinese Celebrated Universities Debate(China) Ltd., with the goal of instilling awareness

Invitation Game (2005 was the 11th), bringing

of CSR, sharing information, and considering

together college students from all over China. In

courses for action in this regard. In March andfiscal 2005 a China Fellowship Program was also

April 2006, CSR seminars were held in Beijing,

initiated, inviting researchers from China’s top

Shanghai, and Guangdong for the representatives

research institutes†1 to come to Japan, whereof local Hitachi Group companies, with the aim ofthey not only participate in seminars, but alsoraising consciousness regarding this issue.

have the opportunity to learn more about Japa-

Other group training sessions were con-nese culture and make contacts with colleagues.

vened in various locations, including combined

Activities such as these can serve as a bridge

training for new employees of Hitachi Groupbetween our two countries, building a foundationcompanies, and other training sessions devoted

for future-oriented cooperation.

to CSR-related themes such as compliance,
procurement, and environmental management.

Contributing to Society
The Hitachi Group sees the environment andeducation as two significant areas in which it
can contribute to Chinese society. Examplesof this are the support by Hitachi Construction

40

Machinery (Shanghai) Co., Ltd. of a forestation

The Hitachi Cup Chinese Celebrated Universities Debate
Invitation Game: The 11th of this series was held in
December 2005 in Shanghai.

Yasuo Hatano, “Surrounded by Colors”(Public Voting Prize of photograph contest with the theme of “The Hitachi Tree,”promoted by Hitachi, Ltd. in Japan)

Next Eco

Aiming for Sustainable “Monozukuri”(Design, Manufacture, and Repair of Products)

Next
Eco

Hitachi Group’s Environmental Action Plan
To realize our environmental management objectives,
we have formulated a long-term plan, or “Environmental Vision,”based on our Hitachi Action Guidelines for Environmental Conservation.
We then create yearly action plans, guided by our Sustainability Compass,verifying and improving our environmental performancealong the way using our GREEN 21 program.

Hitachi Action Guidelines for Environmental Conservation
The basic philosophy of these Guidelines is based on
the “Hitachi, Ltd. Standards of Corporate Conduct” (RuleNo. 2272, established on June 28, 1983). These Guidelines are intended to set forth Hitachi’s action guidelines
for addressing environmental conservation in relation toits business activities.

4. Hitachi will promote globally-applicable “MONOZUKURI” with the aim of reducing environmental
burdens at every stage, including product researchand development, design, production, distribution,
sales, usage, and final disposal.
5. Hitachi will investigate and review the environmental
impact caused in the course of its “MONOZUKURI”
processes. Hitachi will also introduce excellent
technologies and materials useful to safeguard theenvironment, in other words, to reduce environmental burdens through energy and resource saving,chemical substance management, recycling, andother measures.
6. Hitachi’s environmental conservation efforts are
not only to be focused on observing international
environmental regulations and those of national andlocal governments, but also on conserving the environment by implementing voluntary environmental
standards when necessary.
7. Regarding globally-applicable “MONOZUKURI”
activities, impact on the local environment and community are to be considered. In addition, measuresthat meet local communities’ requests should be
implemented.
8. Hitachi will educate its employees on the observanceof environment-related laws, raise their environmental
awareness, and encourage their interest in society atlarge and broad-based environmental conservation
activities.
9. Hitachi will evaluate potential environmental problems and prevent them from occurring. In the eventthat any environmental problem occurs, Hitachi willtake appropriate measures to minimize the impact
on the environment.
10. Hitachi will make efforts to disclose information on its
environmental conservation activities to its relevant
stakeholders. Hitachi will also actively communicate
with these stakeholders so as to strengthen mutual
understanding and forge cooperative relationships
with them.
(Adopted March 1993)(Revised November 2004)

PurposeIn order to realize an environmentally harmonious andsustainable 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 life cycles, ensuring
environmental conservation.
Action Guidelines
1. Global environmental conservation is a critical challenge shared by all humans. Hitachi is committed,
therefore, to fulfilling its responsibilities by assistingin the realization of an environmentally harmonious
and sustainable society as one of its management
priorities.
2. Hitachi will make efforts to contribute to society by
developing highly reliable technologies and production processes, while identifying needs considering
concerns related to global environmental conservation and limited resources.
3. Members of the board in charge of environmental
conservation are responsible for facilitating appropriate environmental conservation activities. Departments responsible for environmental conservation
should endeavor to promote and ensure environmental conservation activities, including improving
environment-related rules and regulations andsetting goals for environmental burden reduction.
These departments should also confirm that theirenvironmental conservation activities are conductedin a proper manner and ensure that these activities
are maintained and improved.

Flow of Hitachi Group’s Environmental Activities
VisionVision-based action plan

Action guidelines
for Environmental Conservation

Category

2005 target

Check against the plan2005 result

Eco-Mind & Global Environmental Management
Promote environmental management

Strengthen global environmental management

Number of partner companies now reporting environmental impacts
Japan: 218; Overseas: 57; Total: 275
Enhanced environmental promotion systems in Europe and China

Enhance self-evaluation system

Score: 640 Green Points (GPs)“GREEN 21” version 2
Score: 649 GP

Nurture environmental literacy

Enhance global environmental education

76,000 people completed Internet education classes
Internet education in English was improved
Environmental education content was prepared in Chinese

Promote environmental accounting

Promote internal usage of environmental accounting

Implemented efficiency management and developed case studies of
efficiency improvements

Expand eco-products

Expand eco-products to 76%

Eco-products increased to 76%
Awarded the Minister of Economy, Trade and Industry’s Prize forhigh-output integral natural-refrigerant (CO2) heat pump water
heater and the Eco-Products Promotion Council Chairman’s Prize
for washing and dry-ing machine (Beat Wash), both in the ecoproducts category of Eco-Products Awards

Promote control ofhazardous substances used in products

Total elimination of hexavalent chromium, lead, cadmium, mercury, PBB,PBDE (electrical and electronic devices subject to the RoHS Directive)

Progress in implementation

Promote green procurement

Percentage of Green Suppliers 70%

Percentage of Green Suppliers reached 70%

Construct a sustainable business model

Expand product recycling systems, and expand lease and rental
business
Expand environmental solution-model business
Diffuse sustainable business to society

Hitachi Lighting, Ltd., developed a “lighting service pack” as a new
business modelAwarded the Minister of Economy, Trade and Industry’s Prize forthe energy service company (ESCO) project and the Eco-Products
Promotion Council Chairman’s Prize for our business platform project,both in the eco-services category of the Eco-Products Awards

Sustainable
Business Models
82 GPsEco-Management
78 GPs80

Eco-Management:
Risk Management
93 GPs40

Next-Generation Products and Services

Super Eco-Factories & Offices

Sustainability Compass

42

Item

Efficient use of resources

Reduce final disposal rate to 80% or less (rel. to FY 1998)
Promote zero emissions

Reduced final disposal rate to 44% (rel. to FY 1998)
Achieved zero emissions at 97 sites

Management of chemicals

Use of “prohibited substances”: complete elimination
Use of “substances subject to reduction”: 30% reduction(rel. to FY 2000)

Use of “prohibited substances”: eliminated completely
Use of “substances subject to reduction”: reduced by 60%(rel. to FY 2000)

Environmental Action Plan

Worldwide Stakeholder
Collaboration
81 GPs0

Eco-Factories:
Resource Recycling
82 GPsEco-Mind
87 GPsNature-Friendly
Products
75 GPsEco-Factories:
Prevention of Global Warning
71 GPsGREEN 21 version 3

Environmental Vision 2015
As a global citizen, we will promote innovation throughout the world while developing
the potentials of the future generation to pioneer next-generation products and services.

Next-Generation Products & Services
Provision of next-generation products and services
We will continue to make innovations for highly
competitive products and services that will contributeto structuring a sustainable society and deploy new
business models.

Sustainability
Compass

Eco-Mind & Global Environmental Management

Worldwide Environmental Partnerships

Eco-mind & global environmental management
Throughout our entire group, we will create an advanced
eco-mind and the power to transform it into action andbuild / operate a global management and evaluation system.

Collaboration with stakeholders
We will strengthen environmental communications
and actively endeavor to realize concrete partnerships
with our stakeholders while clarifying our objectives
and achievements.

Super Eco-Factories & Offices
Factories and offices with high-level ofconsideration for environment
We will thoroughly carry out activities for theprevention of global warming and continue our efforts
to promote recycling, and at the same time, to build
up our bases with consideration for the environment.

Hitachi Group’s
Environmental Vision 2015 andStage 2 Environmental Strategy

a “social impact” created by finished products

In fiscal 2001, the Hitachi Group formulated its

by equivalent amounts.

after they are in the hands of the user. “Emission
Neutral” aims to reduce both types of impacts

Environmental Vision 2010, which looked ahead

Calculations based on our domestic op-

as far as fiscal 2010. As part of this vision, we

erations for fiscal 2004 indicate that in fiscal

promoted the Stage 1 Environmental Strategy

2015 the “direct impact” of our activities will

for the period ending in fiscal 2005. The strategy

be reduced to approximately 7 million tons of

has steadily delivered results. Now, building on

CO2 equivalent, while, through energy-saving

this first stage of work, we are putting into effectproducts and other means, we will reduce thea new medium-term plan with more ambitious“social impact” by approximately seven million

goals, Environmental Vision 2015.

tons of CO2 equivalent as well.

Two key concepts of Environmental Vision2015 are “Pioneering Sustainability” and “Emis-

The Concept of Emission Neutralsion-Neutral.” Our “Sustainability Compass”
indicates that we must progress along four particular paths, the specific action plan for which

Direct loads
Component
Materials

Production

Social loads
Distribution

Usage

Recovery &Recyclingis provided in our second five-year plan to fiscal
2010—the Stage 2 Environmental Strategy.

Emission Neutral
In addition to the “direct impact” imposed by
the procurement of raw materials, their process-Energy consumed
during refinement
and processing

Energyconsumedin manufacturing

Energy required
for transportation

Reduction of
products’ electricenergy use

Reduction ofenergy required
for recycling

Energyrequired
for recycling

ing, production, and distribution, there is also
Next Eco 43

Next
Eco
Roadmap ahead to fiscal 2015
The table presents the roadmap ahead to fiscal 2015 for each “Sustainability Compass” category of Environmental Vision 2015.
Category

Item

2010

2015

Promote environmental management

Create integrated environmental management system, by business group/group companies

Consolidate management of supply chain data source control

Enhance self-evaluation system

Incorporate “GREEN 21” activities and performance appraisals

Nurture environmental literacy

Establish environmental skill standards and a qualification treatment system

Implement group environmental education for each global region

Promote environmental accounting

Establish environmental accounting that takes into account external economic effects

Utilize sustainability accounting as a management indicator

Increase percentage of Super Eco-Products to 30%
100% development of eco-products

Expand scope of environmental assessment(“social lifecycle assessment”)

Eco-Mind & Global Environmental Management

Next-Generation Products and Services
Expand eco-products

Global warming prevention factor: 50%*1 or 20%*2 improvement (rel. to FY 2000)
Resource efficiency factor: 70%*1 or 20%*2 improvement (rel. to FY 2000)
Use of recycled plastic: 20% increase per product (rel. to FY 2000)
Use of packaging material: 10% reduc-tion per product (rel. to FY 2000)
Promote control ofhazardous chemical substances used in products

Take the initiative to set product lifecycle specifications and standards

Promote green procurement

Give awards to green procurement partners (total 100 companies)

Develop environmental partnerships with a global perspective

Construct a sustainable business model

Expand environmental solution-model business, and diffuse in the company

Improve infrastructure for new energy businessOverall

Increase number of “Super Eco-Factories” to 30

Develop “Emission Neutral Factories”

Efficient use of resources

Waste emissions: 20% reduction (rel. to FY 2000)
Resource recycling rate [Japan]: 10% increase (rel. to FY 2005)
Water usage [overseas]: 10% reduction (rel. to FY 2005)

Expand recycling system

Management of chemicals

VOC emissions to the atmosphere [Japan]: 45% reduction (rel. to FY 2000)
VOC emissions rate to the atmosphere [overseas]: 10% reduction (rel. to FY 2005)

Reduce CO2 emissions

Achieve specific targets established by the industry group, or:CO2 emissions per unit of production [Japan]: 25% reduction (rel. to FY 1990)
CO2 emissions per unit of production [overseas]: 5% reduction (rel. to FY 2003)
Total CO2 emissions [Japan]: 7% reduction (rel. to FY 1990)

Increase transport efficiency

Energy use per unit of production [Japan]: 4% reduction (rel. to FY 2006)

Super Eco-Factories & Offices

Adopt measures based on a post-Kyoto Protocol concept

Worldwide Environmental Partnerships
Information disclosure and dialogue

Exchange opinions with environment experts [both in Japan and overseas]

Personnel exchange with environmental organizations

Global citizenship activities

Offer tours of Super Eco-Factories to local communities
Develop the Group’s environmental programs among social contribution activities

Initiatives for environmental partnerships with stakeholders*1: Information & Telecommunication Systems, Digital Media & Consumer Products*2: Electronic Devices, Power & Industrial Systems, High Functional Materials & Components, Logistics, Services & Others

Consolidation of Hitachi Group’s
Environmental Management

certification of ISO 14001 in the business groups

In fiscal 2006, Corporate Environmental Policy

fiscal 2010. In this way, through a management

Division and the environmental management

system Hitachi Group that retains the flexibility

divisions of the individual Group companies will

to deal with the diversity of the group’s fields ofreceive integrated ISO 14001 Environmental

business, we plan to execute PDCA (plan-do-

Management System certification. (Our bases

check-act) cycles and improve our environmentalof operation have already earned this certifica-management continuously.

tion individual sites.) Moreover, an integrated
44

and the group companies will be carried out by

Application of ISO 14001 to Hitachi Group Environmental Operation Organization
President of Hitachi, Ltd.
Hitachi Group
Environmental Operation
Organization* EMS (2006)

Integrated EMS by business groups
and group companies (to 2010)

EMS by site

Senior Executive Committee for Environmental Policy
Environmental Management Operations Committee

Environmental operations
officers of business groups
Site

Environmental operations
officers of group companies

Site

No. of ISO 14001-certified sites (as of March 2006): 311

Site

Site

* Hitachi’s Corporate Environmental Policy
Division and units of Hitachi’s businessgroups and group companies focusing
on environmental activities

Super Eco-Products

and taking advantage of customer feedback to

To date we have been developing products

help us in development of environmentally-friendly

based on Design for Environment further, ex-products.

panding our range of Eco-Products, and working to decrease the environmental impact andSuper Eco-Factories

increase the Environmental Efficiency Factor, an

From fiscal 2006 on, the Hitachi Group will work

evaluative tool for improving quality of life.

to achieve further improvements in energy sav-

In our product development, we are defining

ing, reduce emissions of hazardous substances,the products that have an Environmental Effi-and expand resource recycling. There are 300 of

ciency Factor of 10 or more, are industry leaders,the Group’s operations sites around the world,

and are highly regarded outside the company,that impose a particularly substantial burden on

as “Super Eco-Products.” Looking ahead tothe environment, and we aim to convert 30 of

fiscal 2010, we intend to expand sales of suchthese sites into Super Eco-Factories by fiscal

products to more than 30% of total sales.

2010. Standards for the Super Eco-Factories are

Furthermore, in order to make the Environ-now being formulated. We plan to certify thatmental Efficiency Factor an indicator that is easythese production plants represent the cutting

for consumers to understand, we are collaboratingedge in environmental efficiency, in aspects suchwith independent organizations to formulate andas use of renewable energy, and minimization

standardize guidelines. At the same time, we areof wastewater, chemical emissions, and otheralso making advances in information disclosure

waste products.

†1 Carbon offset
The concept of offsetting CO2 emissions by equivalent contributions insuch areas as reforestation.

message
Comment by a Consultant
Who Assisted withEnvironmental Vision 2015
To formulate Environmental Vision 2015, 22
people from the Operations Strategy Department, the Business Department, Group
companies, and the Environment Division participated in a two-day retreat. The vision was
finalized later, after further study and deliberation in the Group Environment Committee andScene at the two-day retreat to draft
Environmental Vision 2015

department meetings. Also at the retreat wasPeter D. Pedersen, CEO of E-Square, Ltd.,
who participated as a consultant, offering
information and progressive ideas, and guiding the structure of the meeting. We asked
Mr. Pedersen to comment on the completed
Environmental Vision 2015.
Expectation of Stronger Leadership
The Hitachi Group’s Environmental Vision2015 and its Stage 2 Environmental Strategy
convey a clear message and offer concretegoals and targets. They are easy for stakeholders to understand, and progress is easy
to verify.
The message of “Pioneering Sustainability” and the ambitious goal of “Emission
Neutral” are very interesting to me. The presentation of the roadmap based on “Sustainability Compass” and the maintenance andcontinuous improvement of the GREEN 21
appraisal system are also very impressive.
One question in my mind relates to“Emission Neutral.” It’s not clear whether thisbig target is a commitment to society (a goalthat must be achieved), or more like a wish or
desire. I hope to see the kind of enthusiasm
and leadership that will really strive to reachthis goal, making extensive use of carbon offset †1 methods as far as necessary, on top of
promoting energy conservation and improving
product efficiency.
Hitachi’s Reply to the Comment
We will be implementing “Emission Neutral”
as a genuine commitment involving a global
collection of data, including data from our
suppliers, and be linked with our businessstrategies.
Peter D. Pedersen
Born 1967 in Denmark. CEO of the CSR
and environmental consultancy firm
E-Square. He is also known for bringing
the “Lifestyle of Health and Sustainability” (LOHAS) movement to Japan.

Next Eco 45

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Eco
FY 2005 Action Plan and Achievements
For each item of the FY 2005 Action Plan, the planned actions and actual results compared with targets.
Targets for FY 2006 were formulated based on this information and the newly drafted Stage 2 Environmental Strategy.
Category

Item2005 target

2005 result

Achievementlevel

Eco-Mind & Global Environmental Management
Promote environmental management

Strengthen global environmental management

Number of partner companies now reporting environmental impacts
Japan: 218; Overseas: 57; Total: 275
Enhanced environmental promotion systems in Europe and China✦✦✦

Enhance self-evaluation system

Score: 640 Green Points (GPs)“GREEN 21” version 2
Score: 649 GPs✦✦✦

Nurture environmental literacy

Enhance global environmental education

76,000 people completed Internet education classes
Internet education in English was improved
Environmental education content was prepared in Chinese✦✦✦

Promote environmental accounting

Promote internal usage of environmental accounting

Implemented efficiency management and developed case studies of
efficiency improvements✦✦✦

Expand eco-products

Expand eco-products to 76%

Eco-products increased to 76%
Awarded the Minister of Economy, Trade and Industry’s Prize forhigh-output integral natural-refrigerant (CO2) heat pump water
heater and the Eco-Products Promotion Council Chairman’s Prize
for washing and dry-ing machine (Beat Wash), both in the ecoproducts category of Eco-Products Awards✦✦✦

Promote control ofhazardous substances used in products

Total elimination of hexavalent chromium, lead, cadmium, mercury, PBB,PBDE (electrical and electronic devices subject to the RoHS Directive)

Progress in implementation✦✦✦

Promote green procurement

Percentage of Green Suppliers 70%

Percentage of Green Suppliers reached 70%✦✦✦

Construct a sustainable business model

Expand product recycling systems, and expand lease and rental
business
Expand environmental solution-model business
Diffuse sustainable business to society

Hitachi Lighting, Ltd., developed a “lighting service pack” as a new
business modelAwarded the Minister of Economy, Trade and Industry’s Prize forthe energy service company (ESCO) project and the Eco-Products
Promotion Council Chairman’s Prize for our business platform project,both in the eco-services category of the Eco-Products Awards✦✦✦

Efficient use of resources

Reduce final disposal rate to 80% or less (rel. to FY 1998)
Promote zero emissions

Reduced final disposal rate to 44% (rel. to FY 1998)
Achieved zero emissions at 97 sites✦✦✦

Management of chemicals

Use of “prohibited substances”: complete elimination
Use of “substances subject to reduction”: 30% reduction(rel. to FY 2000)

Use of “prohibited substances”: eliminated completely
Use of “substances subject to reduction”: reduced by 60%(rel. to FY 2000)✦✦✦

Reduce CO2 emissions

Progress toward achievement of specific targets established by theindustry organization (FY 2010), or:
CO2 per unit of production [Japan]: 20% reduction (rel. to FY 1990)
Total CO2 emissions [Japan]: 3% reduction (rel. to FY 1990)

CO2 per unit of real production: reduced by 55% (rel. to FY 1990)[production facilities belonging to the electrical and electronic industries]
CO2 per unit of production [overseas]: reduced by 0.5%
(rel. to FY 2003)
Total CO2 emissions [Japan]: reduced by 19% (rel. to FY 1990)✦✦✦

Increase transport efficiency

CO2 emissions for transport of products (outside sites): at least 2%
reduction (rel. to FY 2000)

CO2 emissions for transport of products: reduced by 30%✦✦✦

Information disclosure and dialogue

Disclose information through diverse channels worldwide
Expand environmental town meetings with local communities

Conducted a Group advertising campaign, “Create the Next Eco”
Exhibited at the International Eco-Products Exhibition and EcoProducts 2005 Exhibition
Conducted dialogues with local communities at Hitachi Joei Tech andHitachi Chemicals Shimodate Office✦✦✦

Global citizenship activities

Enhance environmental education activities in association with local
communities

97 companies participated in activities of a national environmental
campaign “Team Minus 6%”
87 facilities participated in Ministry of the Environment-sponsored“Lights Down” campaign
Provided educational support for 4 events at Wada Junior High Schoolin Tokyo’s Suginami ward, Waseda University, and other venues✦✦✦

Next-Generation Products and Services

Super Eco-Factories & Offices

Worldwide Environmental Partnerships✦: Requires effort

for improvement✦ ✦ ✦: Achieved
46

Targets for 2006

Corresponding
page

Obtain certification for environmental management system, under the Hitachi Group Environmental
Promotion Mechanism

P. 44 – 45,
48 – 49

Upgrade “GREEN 21” to version 3 and enhance score to 768 GPs

P. 49

Promote Internet education classes

P. 48

Promote internal use of indicators for efficiency in environmental impact reduction and other parameters

P. 50 – 51

Percentage of eco-products: increase to 80%
Introduce Super Eco-Products
Global warming prevention factor: 17%*1 or 7%*2 increase (rel. to FY 2000)
Resource use factor: 24%*1 or 7%*2 increase (rel. to FY 2000)
Use of recycled plastic per product: 7% increase (rel. to FY 2000)
Use of packaging per product: 4% reduction (rel. to FY 2000)

P. 54

Establish suitable control systems of individual parts to eliminate use of six specific substances in
products (June 2006)

P. 55

Increase rate of Green Suppliers to 100%P. 34

Construct the development plan and sales expansion plan until 2010 for the sustainable businessmodel and devise strategies

P. 57 – 58

Resource recycling rate [Japan]: 2% increase (rel. to FY 2005)
Waste generation: 12% reduction (rel. to FY 2000)
Water use [overseas]: 2% reduction (rel. to FY 2005)

P. 59

VOC emissions to the atmosphere [Japan]: 41% reduction (rel. to FY 2000)
VOC emission rate to the total consumption [overseas]: 2% reduction (rel. to FY 2005)

P. 60

CO2 emissions per unit of real production: 21% reduction (rel. to FY 1990) [production facilities
belonging to the electrical and electronic industries]
CO2 emissions per unit of production [overseas]: 2% reduction (rel. to FY 2003)
Total CO2 emissions [Japan]: 7% reduction (rel. to FY 1990)

P. 62 – 63

Determine the volume of energy used in transport (of products, waste materials) and formulate energy
conservation plans

P. 64

Participate proactively in environmental activities organized by various organizations
Exchange opinions with environment experts, local residents, and other stakeholders

P. 65

Participate in the “Environment Minister of Our Home” program
Add an environmental field to the educational support program conducted by our volunteer employees
Implement environmental programs for social contribution by the Group

P. 65*1: Information & Telecommunication Systems, Digital Media & Consumer Products*2: Electronic Devices, Power & Industrial Systems, High Functional Materials & Components,
Logistics, Services & Others

Next Eco 47

Next
Eco
The Hitachi Environmental Conferencein Asia held in Bangkok, Thailand

Eco-Mind &Global Environmental Management
From firmly establishing the Eco-Mind vision as a part ofits corporate culture to building a systematic environmental management system—
Hitachi is striving to improve and enhance its system
to continually promote efficient environmental management and activities.

Environmental Management Systemodologies. Organizations are set up to promote

The Hitachi Group has built a consolidated

environmental activities in each business, andenvironmental management system. Hitachi’senvironmental operations officers are appointed

Senior Executive Committee for Environmental

to manage matters within the business groups of

Policy, chaired by the president of Hitachi, Ltd.,

Hitachi, Ltd. and its Group companies, subsidiar-assesses and determines the environmental poli-ies, and affiliated companies.

cies and strategies of the entire Hitachi Group.

The Hitachi Group’s global activities in 2005

These policies are then delegated to the Envi-

included hosting meetings of environmental com-ronmental Management Operations Committee

mittees in various regions of Asia and China, as

to be communicated throughout the Hitachi

well as meetings of regional Eco-Factory Com-

Group.

mittees in China for persons in charge of imple-

The Environmental Committee and eachmenting of activities to exchange opinions andsub-committee work to achieve goals and re-views. In addition, an Environmental Manage-

solve problems by conducting investigations andment Center was established in Hitachi (China)developing technologies and evaluation meth-Ltd. (Shanghai Office), and a person dedicatedEnvironmental Management System
Senior Executive
Committee forEnvironmental Policy

President

Business groups
Group directors, CEOs
Environmental operations
officers

Eco-Management
Committee

Corporate
Environmental Policy
Division

Production facilities
Operation heads
Environmental management
officers
Affiliated companies
Presidents
Environmental management
officers

Eco-Products
Committee
Environmental
Committee
Eco-Factory
Committee

Sustainable BusinessCommittee

Major affiliated companies
Presidents
Environmental operations
officers

Production facilities
Operation heads
Environmental management
officers

Hitachi, Ltd.,932 consolidated subsidiaries,
and 158 affiliated companies

Affiliated companies
Presidents
Environmental management
officers

Status of ISO 14001 Certification (as of March 2006)
Japan

No. ofcertified sites

Group training

Overseas

Production
Sites

Non-Production
Sites

Production
Sites

Non-Production
Sites

Total

176

64

65

6

311

Environmental Education andTraining System

General employees

Specialized education
General education

Training forSpecialized educationeach company/
General educationsite based on ISO 14001

48

Environmental
Management
Operations Committee

Regional Environmental Committee

Senior Executive Committee
for Environmental Policy:
Assesses and sets environmental
management policies at executive
management level (semi-annual).
Environmental Management
Operations Committee:
Enforces environmental policies anddevelops environmental information
and activities (semi-annual).
Environmental Committee:
Assesses environmental issues anddraws up policies (semi-annual).
Sub-Committees:
Discuss issues, draft policy(as required).
Main themes: Eco-Management(environmental management,
educational activities, disseminationof information), Eco-Products (promotion of eco-product development,
reduction of harmful substancesused in products), Eco-Factories(reduction of environmental impacts
of production), Sustainable Business(support for the creation of sustainable business models, strengtheningof related activities)

Auditor training

Japan		Hokkaido/Tohoku regions
20
Kanto/Koshinetsu regions
168
Hokuriku/Chubu regions
18
Kansai region
16
Chugoku/Shikoku/Kyushu regions 18
Total
240

Administration

Asia
49
America 15
Europe7

Executive management level

Auditor training

Eco-Products development training
Eco-Mind education (via the Internet)
Training for employees working in certain operations
Eco-Mind education for each company/site

Education about environmental management

Green Point Average: Results and Targets
FY 2002: 377 GPs
FY 2003: 441 GPs
FY 2004: 527 GPs
FY 2005: 649 GPs
FY 2005 target: 640 GPs

Sustainable
Business Models
82 GPsEco-Management
78 GPs80

Eco-Management:
Risk Management
93 GPs40
Worldwide Stakeholder
Collaboration
81 GPs0

Eco-Mind
87 GPsEco-Factories:
Resource Recycling
82 GPsNature-Friendly
Products
75 GPsEco-Factories:
Prevention of Global Warning
71 GPsto environmental matters was appointed in thereceive specialized education and design and

Evaluation Categories

European Corporate Office.

manufacturing personnel are trained to develop

Eco-Management
Environmental management, action
plan, environmental accounting

Eco-Products. Specialized training and emer-

Environmental Management System
Based on ISO 14001

gency drills are conducted at the job sites thathave a significant impact on the environment.

Hitachi has established an environmental
management system based on the internation-

GREEN 21 Activities

ally-recognized ISO 14001 standards. All of our

In order to ensure that we continually makemanufacturing operations obtained ISO 14001

improvements and raise the level of our envi-

certification by 1999, and our non-manufactur-ronmental activities, all our work is evaluateding operations were certified by the end of fiscal

by the GREEN 21 (Version 2) system, a set of

2002. (There are currently 311 ISO 14001-

specific evaluation standards used for measuringcertified sites.) To consolidate and enhanceenvironmental activities. Because this system as-environmental activities within the Group, we

sesses the degree of progress we make towards

are currently building an environmental manage-

achieving goals set for a particular fiscal year,

ment system with the environmental operations

based on the mechanism of the activities or spe-

sections of each site playing a central role incifics of the goals being set, it serves as a vitalmanagement consolidation.

environmental management tool for promoting

Each site continually improves its opera-

environmental activities efficiently.

tions, undertaking self-assessment by means of

To rate an activity, the GREEN 21 systeminternal audits, and receives regular inspections

evaluates 53 distinct items spread over eightby external certification bodies. Internal audits

Sustainability Compass categories. The period

are conducted by approximately 2,000 auditors

covered is fiscal 2002 to 2005.

who have undergone specialized training and

The evaluation is rated on a scale of 0 to 5.

received certification within the Group. Since

A rating of 4 shows the goal has been achieved,

1973, each site has carried out environmental

while a rating of 5 shows the activity has ex-

audits within its business operations in parallel

ceeded the goal. The ratings are then multipliedwith its managerial audits.

by a weighting coefficient, with a maximum of

Eco-Management:
Risk Management
Compliance with laws andregulations, setting of independent
standards
Eco-Mind
Employee training and education
Nature-Products
Implementation of product andservice assessment, green
procurement, distribution
Eco-Factories:
Prevention of Global Warming
Energy saving at operation sites
Eco-Factories:
Resource Recycling
Waste reduction, chemical
substance management
Worldwide Stakeholder
Collaboration
Information disclosure, dialog, andcommunity activities
Sustainable Business Models
Development of management
systems, planning, productrecycling, environmental restoration
activities

100 “Green Points” (“GPs”) being awarded within

Environmental Educationeach category, giving a maximum possible rating

All of the employees of the Hitachi Group areof 800 for all eight categories. In fiscal 2005, agiven general training to raise their knowledge

score of 649 GPs was achieved, a 29% improve-and awareness of environmental matters, andment over the previous year and 9 GPs over the

specialized training how to implement environ-target of 640 GPs. It is particularly remarkablemental technologies.

that a 26-GP improvement was achieved in the

General education programs provide man-category Sustainable Business Models as a result

agement-level personnel with opportunities toof reexamining the business activities of the Groupobtain a better education in environmental mat-on the basis of shared information. Reinforced

ters, while Internet-based educational programs

environmental efforts raised the overall level.

are being promoted for other employees. (As of

The GREEN 21 evaluation standards have

March 2006, some 76,000 employees have at-been upgraded to version 3 from fiscal 2006 to

tended courses given in Japanese and English.)promote active efforts to enhance environmental

Environmental management system auditors

management activities further.
Next Eco 49

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Eco

Incentives to Promote Activities

on the degree to which environmental impacts

The GREEN 21 Award program has been es-

are controlled. Economic effects are calculated intablished to offer incentives for advanced envi-

terms of numerical values based on clear, precise

ronmental activities to encourage and promote

data. Evaluation of physical effects is based on

GREEN 21 activities. Based on an assessment

the effectiveness of reducing environmental im-of the overall performance of an activity, including

pacts not only during the manufacturing process,the total GREEN 21 score and the rate of improve-

but also during the use of our products. We arement, the GREEN 21 Award is conferred on top

trying to reduce environmental impacts, utilizing

environmental friendly products and technologies,

an “environmental impact reduction ratio” as an

facilities engaged in groundbreaking energy andindex for evaluating the extent to which eachresource savings or recycling and reuse activities,

type of environmental impact is reduced per unit

or programs achieving outstanding communica-

of expenditure.

tion with society (information disclosure, cultural†1 RoHS Directive
The EU’s Reduction on Use ofHazardous Substances in Electricaland Electronic Equipment (RoHS)
Directive will ban the use of six
chemical substances in electricaland electronics products sold in
the EU member countries from July
1, 2006.

exchange, or social contributions). Six activities

2005 Results

earned a GREEN 21 Award in fiscal 2005.

Compliance with the RoHS Directive †1 andimplementing measures to reduce the environ-

Environmental Accounting

mental impacts of our products has resulted in

Purpose of the System

an increase in R&D costs of 2.7 billion yen, and a

The Hitachi Group has employed an environmen-

3% increase (2.2 billion yen) in total expenditure.

tal accounting system since 1999 to promote

However, as a result of complying with the Direc-

continual improvements in our environmental

tive, the energy consumed through use of ourinvestments and activities. The system has also

products has been reduced by 720 million kWh.

helped people understand our corporate ap-

An increase of 6 billion yen in economic ef-

proach to the environment by providing informa-

fects was realized through the sale of materials

tion on how we allocate management resources

separated out from waste, promoting the reduc-for environmental activities, and on the value

tion of resource use in our products, and fromcreated through environmental technologies andan increase in the price of materials.

Eco-Products.

With the aim of reducing the environmental

While the costs covered in our environ-

impacts and costs, we have introduced “mate-mental accounting include depreciation, therial flow cost accounting” as a trial, assessing

effectiveness of our activities is evaluated in

the values of the material inputs and material

terms of both “economic effects,” evaluated inlosses (wastes) involved in the manufacturing

monetary terms, and “physical effects,” based

process.

Final Results
Prize

Business siteAward-winning activity

Grand Prize

Hitachi Appliances, Inc.

Development of the world’s first super-energy-saving domestic air conditioner with a “double acceleration
system” and of “Beatwash,” a super-water-saving washer-dryer

Eco-Mind & Management Sector Prize

Hitachi Transport System, Ltd.

Law-abiding waste management and promotion of the “3 Rs”

Eco-Factory Sector Prize

Hitachi Haramachi Electronics Co., Ltd.

Elimination of SF6 use and achievement of zero emissions in the high-pressure diode production process

Sustainable Business Sector Prize

Hitachi Information & Control Systems Division

Promotion of “HDRIVE” (Hitachi motor drive conservation of energy service)

Encouragement Prize

Hitachi Displays, Ltd.

Green Point improvement in overseas operations

Encouragement Prize

Hitachi Global Storage Technologies (Thailand) Ltd.

Energy conservation

50

CostsExpenses

Item

Costs (Unit: billion yen)

Overview

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

Business area costs

Costs of maintenance of equipment with low environmental impact, depreciation, etc.

38.21

35.00

29.02

31.82

32.46

Upstream/downstream costs

Green procurement expenses, recovery and recycling of products and packaging, recycling
expenses

3.27

2.40

2.76

2.69

2.59

Management activities costs

Labor costs of environmental management, implementation and maintenance of environmental
management system

11.09

10.41

12.29

10.76

9.76

Research and development
costs

R&D for the reduction of environmental impacts caused by products and production processes,
product design expenses

34.36

38.21

35.48

39.51

42.16

Social activity costs

Environmental improvements such as afforestation and beautification, PR and publicity expenses

0.53

0.52

0.37

0.61

0.38

Environmental damage costs

Environment-related measures, contributions, and levies

0.82

0.86

0.51

2.23

2.49

88.28

87.40

80.43

87.62

89.84

18.01

14.97

10.17

14.10

13.80

FY 2001

FY 2002

FY 2004

FY 2005

Total
Total investment

Investment in energy-saving equipment and equipment that directly reduces environmental impacts

Depreciation expenses on equipment investments are calculated using the straight-line method over 5 years.

Effects
Economic Effects *Item

Effects (Unit: billion yen)

Overview

FY 2003

Net income effects

Profit on sales of recycled waste

5.09

6.08

4.06

6.25

7.72

Reduced expenses effects

Reduction in material costs due to resource saving, reduction in waste treatment costs due toreduced waste, reduction in power expenses due to energy saving

13.56

12.11

11.67

12.77

17.29

18.65

18.19

15.73

19.02

25.01

Total

Physical Effect
Item

Amount Reduced (parentheses: equivalent no. of households)

Overview

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

Reduction in the amount of energy
used during production

Decrease in amount of energy used due to installation of energy-saving equipment

331 million
kWh(95,000)

189 million
kWh(55,000)

127 million
kWh(37,000)

125 million
kWh(36,000)

157 million
kWh(45,000)

Reduction in the amount of
final waste disposal

Decrease in final waste output volumes due to separation and recycling activities

7,369 t(25,000)

5,210 t(18,000)

5,612 t(19,000)

5,922 t(20,000)

5,254 t(18,000)

Reduction in the amount of energy
consumed during product usage

Decrease in energy requirements of Hitachi products

552 million
kWh(159,000)

742 million
kWh(214,000)

507 million
kWh(146,000)

730 million
kWh(210,000)

723 million
kWh(208,000)

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

66

53

44

33

36

1,750

1,200

1,690

1,690

1,6200Benefits on equipment investment are calculated using the straight-line method over five years, as with costs.
* Economic Effect includes the following items.
1. Net income effect: benefits for which there is real income, including income from the sale of resalable material and income from environmental technology patents.
2. Reduced expenses effect: reduction in electricity and waste treatment expenses arising from environmental impact reduction activities.

Efficiency of Environmental Impact Reduction*
Category
Reduction in energy used during production (million kWh/billion yen)
Reduction in amount of waste for final disposal (t/billion yen)

* This is an indicator of the efficiency of environmental impact reduction, calculated as the amount of environmental impact reduction divided by expenses needed for the reduction.

Cost ratio
by Industry Segment

Investment ratio
by Industry Segment

Economic Effect ratio
by Industry Segment

Investment ratio
by Countermeasure
Other

1%

2%

18%

30%

10%

3%

16%

21%
3%

6%
27%

55%
9%

1%

36%

3%

52%

18%

Prevention of
Global Warming

28%

7%
44%

10%

Waste Reduction

Pollution Prevention
Information & Telecommunication Systems

Electronic Devices

Power & Industrial Systems

Digital Media & Consumer ProductsHigh Functional Materials & Components

Logistics, Services, & Others

Next Eco 51

This chart shows resource inputs and environmental impacts
pertaining to the fiscal 2005 corporate activities ofthe 275 Hitachi Group companies covered by this report.

Corporate Activities (Japan)

Next
Eco
Input and Output
Input represents the total volume
of energy, materials (raw materials,
chemicals, etc.), and water usedin manufacturing of products andother business operations. Output
represents the products themselves,as well as the environmental impacts
caused in the course of business
operations, including CO2 and otherchemicals, waste products, andwastewater.

Environmental Impact Data
for Corporate Activities (FY 2005)

Total energy consumption (crude oil equivalent)
Electricity
Oil (crude oil equivalent)
New energy types

Electricity
Heat

Metals 1,266 kt

19,000 kℓ

Iron (including steel sheeting)

794 ktStainless steel

41 kt

Aluminum

93 kt

Copper300 ktOther nonferrous metals

118 kt

Thermoplastics

170 kt

Thermohardened plastics

35 kt

Rubber

8 kt

Other materials
Chemical substances

356 ktHandling volume for chemical substances covered under the PRTR law 203 kt
Handling volume for ozone-depleting substances

24 tHandling volume for greenhouse gases

725 t

59.98 million m3

Water consumption

Corporate Activities (Overseas)

384,000 kℓ
80 million kWh

Total input of materials

Plastics 191 kt

52

1,600,000 kℓ
4.81 billion kWh

Surface water

7.14 million m3

Industrial water

26.26 million m3

Groundwater

26.48 million m3

Total energy consumption (crude oil equivalent)
Electricity
Oil (crude oil equivalent)

617,000 kℓ
1.83 billion kWh
146,000 kℓ

Total input of chemical substances
Chemical substances

Handling volume for chemical substances covered under the PRTR law 12 kt

Water consumption

14.22 million m3
Surface water

5.27 million m3

Industrial water

6.35 million m3

Groundwater

260,000 m3

2,680 kt (2,680 kGWPt †1) *0.2% (FY 2005)

CO2 emissions

Total volume of products manufactured and sold

2,814 kt including packages

Volume of chemical substances discharged or transferred
Discharge or transfer volume for chemical substances covered under the PRTR law

4.4 t (0.3 ODPt †2)

Greenhouse gas emissions 23 t (412 kGWPt) SF67 t (168 kGWPt)

PFCs

6 t (68 kGWPt)

HFCs

0.05 t (0.6 kGWPt)

Substances subject to emissions regulations SOx

583 t *0.0009% (FY 2002)

NOx

1,841 t *0.03% (FY 2002)

Total volume of waste generated

592 ktWaste generated

592 kt *0.0009% (FY 2002)

Waste reduction
Recycling (rate) 524 kt (97%)

110 kt (20%)

Volume of material recycled

375 kt (73%)

Final disposal (rate)

Water quality†2 ODPt
Ozone depletion potential (ozone
depletion coefficient in CFC
equivalent, in tonnes)

39 kt (7%)
18 kt (3.3%) *0.0003% (FY 2002)
50.40 million m3

Total volume of wastewater
Breakdown of wastewater by destination†1 GWPt
Global warming potential (global
warming coefficient, in CO2 equivalent tonnes). Converted to amountof CO2 (t) by multiplying greenhousegas emissions by the global warming
coefficient. The global warming
coefficient shows the extent of
impact on global warming from agreenhouse gas, compared to theequivalent amount of CO2.

50 kt *0.0001% (FY 2002)
Volume re-used

Volume of thermal recycled

Volume ofwater reused
132.84 million m3

5.6 kt *0.01% (FY 2004)

Volume of discharge for ozone-depleting substances* Ratio of national total, and fiscal
year used for comparison. Source
for the total figures for Japan was
the FY 2004 PRTR results listed in
the Annual Report on the Environment in Japan 2005. (Ministry of theEnvironment)

Public waters

41.24 million m3

Sewerage system

9.16 million m3

BOD

327 t

COD

249 t

CO2 emission

1,656 kt (1,656 kGWPt)

Volume of chemical substances released or transferred
Discharge or transfer volume for chemical substances covered under the PRTR law 0.6 kt
SOx
NOx
Total volume of waste generated

Water quality

179 ktWaste reduction

20 kt

Recycling (rate)

109 kt (69%)

Final disposal (rate)

50 kt (28%)
11.06 million m3

Total volume of wastewater
Breakdown of wastewater by destination

88 t
179 ktWaste generated

Volume ofwater reused
8.01 million m3

128 t

Public waters

3.18 million m3

Sewerage system

7.88 million m3

BOD

133 t

COD

373 t

Next Eco 53

Next
Eco

Next-Generation Products and Services
The Hitachi Group is committed to contributing to a sustainable,
recycling-oriented society by offering products and services that reducethe burden on the environment by conserving energy and natural resources,
preventing global warming, and reducing the use of hazardous chemicals.

“eco” symbol

Eco-Products

Environmental Efficiency

Expanding Eco-Products

To utilize natural resources more effectively,

In 1999, the Hitachi Group introduced its As-

Hitachi has introduced an “Environmental Ef-

sessment for DfE (Design for Environment) toficiency” index to control environmental impact

help reduce the environmental burden imposed

and resource consumption. The index is used toat each stage of a product’s lifecycle. Under thisevaluate products by calculating two measures

scheme, products are assessed with respectof efficiency with respect to a product’s value

to eight criteria, including resource reduction,in terms of its function and lifespan. The first

product longevity, resource recycling, and easeof decomposition. Products that score at least 2
on a scale of 0 to 5 for all criteria and earn an av-

Approach to Complete Lifecycle Product Design
Resource Conservationerage score of 3 or higher are designated “EcoProducts.” These products are listed in catalogs
and websites with an “eco” symbol. As of March

Materials

Production

2006, a total of 940 products (4,506 models)

Environmental Efficiency of Hitachi
Products Based on Factor X

Distribution

Usage

RecoveryAppropriate
anddisposal
decomposition

Reuse / Recycling

were certified as Eco-Products, accounting forWEB

76% of Hitachi’s total net sales.

http://greenweb.hitachi.co.jp/en/pdf/
en-kouritsu.pdf

Environment Assessment
Assessment criteria: Resource reduction, product longevity, resource
recycling, ease of decomposition and processing, environmental conservation, energy efficiency, information disclosure, packaging materials

Percentage of products certified as Eco-Products(target value in parentheses)

Eco-Products Certification Trends
Percentage of products certified as Eco-products (% of net sales)
No. of certified products (no. of models in parentheses)

(%)
100

761
[2,864]80

568[2,056]

60

0

66

940
[4,506]

1,000
(80)

76
(76)

72

29
[714]
3
2000

2002

2003

2004

2005

800
600

46

40
20

817
[3,294]

Definition of Environmental Efficiency(No. ofproducts)

2006 (FY)• Prevention of Global Warming Efficiency =Product lifespan*1 × Product function
Volume of greenhouse gas emissions throughout
the product lifecycle

Product lifespan*1 × Product function∑ Resource value coefficients × (new resources usedin lifecycle*2 + resources disposed of in lifecycle*3)

Definition of Factors

400• Prevention of Global Warming Factor =Efficiency in prevention of global warming ofevaluated product

200

Prevention of global warming efficiency ofreference product0• Resource Efficiency =• Resource Factor =Resource efficiency of evaluated productResource efficiency of reference product*1: The specified usage period of a product*2: The quantity of resources used to manufacture a product, minus the quantity of resources reused or recycled*3: The quantity of resources used to manufacture a product, minus the quantity of reusable or recyclable resources

FY 2005 Awards
Award name

Initiative

Company name*

Second Eco-Products Awards (sponsored by the Eco-Products Awards Promotion Council)
Minister of Economy, Trade and Industry Prize (Eco-Products category)High-Output Integral Natural Refrigerant (CO2) Heat Pump Hot Water Heater

Hitachi Appliances, Inc.

Minister of Economy, Trade and Industry Prize (Eco-Services category)

ESCO Project

Hitachi, Ltd.

Promotion Council Chairman’s Prize (Eco-Products category)

Washer-dryer (Beat Wash)

Hitachi Appliances, Inc.

Promotion Council Chairman’s Prize (Eco-Services category)

Industry Platform Operations (Consolidated Logistics)

Hitachi Transport System, Ltd.

Environmental Efficiency Awards 2005 (sponsored by the Japan Environmental Efficiency Forum)
Japan Environmental Efficiency Forum Chairman’s Prize (Product Performance category)

Environmental efficiency of the Hitachi Group

Hitachi, Ltd.
* Company names are given as of April 1, 2006

54

External DVD camera packaging
Before (left) and after (right)

measure is the ratio of the product’s value tohave enhanced the function of “A Gree’Net,” ourthe total raw materials used in its production anddatabase system of environmental information,

the amount of waste remaining when the productincluding chemical composition of procurement

is disposed of (resource efficiency); the second

materials and parts. As of March 2006, the da-is the ratio of a product’s value to the quantity oftabase had a total of about 14,000 users andgreenhouse gases generated during its lifecycle

160,000 registered parts.

(prevention of global warming efficiency). We havealso devised another measure, or factor, which
expresses the improvement in a product’s envi-

Preparation for Enactment of
REACH †1 Regulations

ronmental efficiency relative to a reference year.

To promote safety evaluation of existing chemi-

In 2005, we calculated the environmental

cals, the EU is currently deliberating on enacting

efficiency of Hitachi Group products, and com-

the REACH regulations. These regulations would

piled representative examples in a leaflet entitledcover the vast range of existing chemicals andEnvironmental Efficiency of Hitachi Products

make it obligatory to control and register the

Based on Factor X. In recognition of this initiative,

chemical substances contained in products.

the Group received the Japan Environmental

The Hitachi Group is currently investigating more

Efficiency Forum Chairman’s Prize at the Envi-efficient management methods to ready itself forronmental Efficiency Awards 2005.

this eventuality.

Management of ProductChemical Content

Total Elimination of Asbestos in Products

Compliance with the RoHS Directive

products, the Hitachi Group is working to develop

To comply with the European Union’s RoHS

suitable alternative materials, even for applica-

Directive, we are working toward the complete

tions that fall outside current asbestos regula-elimination of the six chemicals specified in thetions. The use of asbestos for consumer products

directive—lead, hexavalent chromium, cad-

was totally discontinued in October 2005.

†1 REACH
Registration, Evaluation, Authorization, and Restrictions of Chemicals
Under this proposed EU regulatory
initiative, all businesses within the
EU zone that manufacture chemicals
governed by the regulations, or
products containing the chemicals,
as well as all manufacturers andsellers that export the chemicals
to the EU zone, will be obligated tokeep records of and file reports on
the chemicals they handle. The dateof implementation is not yet decided.

In order to completely eliminate asbestos use inmium, mercury, PBB, and PBDE. By working
in cooperation with its suppliers and through its

Resource Conservation Initiatives

own engineering development efforts, Hitachi

Improved Packaging for DVD Cameras

has taken significant strides, including adopting

The Hitachi, Ltd. Ubiquitous Platform Systems

lead-free and hexavalent chromium-free parts.

Group and Hitachi Transport System, Ltd. haveworked to improve the packaging used for DVD

Development of a Chemical
Management Systemcameras. By devising ways to store the productWe have been working since fiscal 2005 to familiarize Group companies and their suppliers with
our Environmental CSR-Compliant MonozukuriStandards, formulated in 2004. Hitachi has held
58 briefings, both in Japan and overseas, toeducate more than 3,000 people who will be
involved in promoting the standards.
As part of our Unified Management System for
Products Containing Hazardous Substances, weComparison of unfolded cushioning
materials for cardboard DVD camera
packaging
Before (left) and after (right)

Next Eco 55

Next
Eco

Some of Our Eco-Products†1 COP(Coefficient of Performance)
A measure of heating ability relative
to electric power consumption.
The higher its value, the higher theefficiency.
†2 PAM(Pulse Amplitude Modulation)
A method of transforming theamplitude of voltage or current tocontrol the output of a signal.
†3 PFC (perfluorocarbon)
A type of greenhouse gas. Althoughthese gases are not consideredharmful to the ozone layer, they
have an extremely powerful effect on
global warming (thousands of times
greater than CO2). For this reason,
the Kyoto Protocol calls for emissions of PFCs to be cut. PFCs areused mainly in cleaning processes insemiconductor manufacturing.
†4 HICDS
Abbreviation for HITACHI Catalytic
Decomposition System†5 Catalysis
Catalysis enables the decompositionof PFC gases with an effectivenessof more than 99%, using relatively
little energy.
†6 Thermal NOx
One of the nitrogen oxides (NOx)formed in thermal combustion
processes. When the N2 and O2
contained in combustion air react
at high temperature, they form NO(thermal NOx).
†7 Lumen (lm)A unit of brightness. This is the average value for the Wooo PJ-TX200J
at the time of shipping. This figure
is in accordance with JIS (Japan
Industrial Standard) JIS X 6911
(2003, Project Manual Format).
†8 Eco Leaf Environmental Label
Type III label from systemadministered by the Japan Environmental Management Association for
Industry (JEMAI). Shows quantitativeenvironmental information pertaining to all stages of a product’s
life—from the extraction ofnatural resources, to manufacture,
distribution, usage, and disposal
and recycling, utilizing LCA (lifecycle
assessment) techniques.

56

High-Output Integral Natural Refrigerant (CO2) Heat Pump Hot-Water Heater—“Eco Cute”(Hitachi Appliances, Inc.)
The industry’s first direct-heating domestic hot-water heater efficiently absorbs heat fromthe atmosphere to instantaneously and continuously heat water. Does not require a storagetank and greatly reduces energy consumption and CO2 emissions compared to gas andoil devices. Winner of the Second Eco-Products Awards’ Minister of Economy, Trade andIndustry Prize and the Second Grand Energy Conservation Prize’s ECCJ (Energy Conservation
Center, Japan) Chairman’s Award.
Prevention of global warming factor: 1.4 / Resource factor: 1.3
Eco-friendly features • Compact, space-saving hot water heater that does not requirea large volume of water storage • Achieves a COP †1 rating of 4.6 due to original PAM †2technology • Uses a natural refrigerant, CO2 • Lowest CO2 emissions of any heat pump-type
hot water heater (as of April 2005)
Catalytic PFC Decomposition System (Hitachi, Ltd.)Greenhouse gas PFC †3 is released in the manufacturing process of semiconductors and liquid
crystals, and it is necessary to limit its emission as much as possible. The Hitachi Catalytic
PFC Decomposition System (HICDS †4) was developed to efficiently convert the PFC gases
emitted from etching processes. As of the end of 2005, 300 HICDS systems had been
shipped. The technology used in this system earned the Minister of Education and Science
Invention Encouragement Prize and the Practical Merit Prize at the 2005 Kanto Region
Invention Awards, and the Climate Protection Award for 2002 from the U.S. Environment
Protection Agency.
Prevention of global warming factor: 27 / Resource factor: 13
Eco-friendly features • Utilizes catalysis †5 to reduce energy consumption to 75% of thatfor plain combustion • Inhibits generation of thermal NOx †6 by catalytic reaction • Utilizes
recycled water to cool decomposed gas • Integrated heater elements reduce number ofparts in construction by 10%
Commercial Package-Type Air Conditioner Inverter (Hitachi Appliances, Inc.)
The industry’s first side-flow blower, package-type commercial air conditioner with a heat
output of 22.4 to 33.5 kW. Its superior energy-saving performance cuts annual electric power
charges by half compared to conventional devices. Won the fiscal 2005 Grand Energy Conservation Prize’s Minister of Economy, Trade and Industry Award.
Prevention of global warming factor: 2.6 (NP280) / Resource factor: 2.0 (NP280)
Eco-friendly features • Industry-best COP 4.24 (22.4 kW) thanks to a high-efficiency DC
inverter compressor and heat-exchanger optimization technology, reducing annual CO2 emissions of 2.2 tons • World’s lightest and most compact unit due to use of a narrow-diameterheat exchanger and world-first external side flow blower • World’s quietest device (52 dB
at 22.4 kW) due to new-type large-diameter propeller fan (as of April 2006)
LCD Projector—Wooo PJ-TX200J (Hitachi, Ltd.)A high-definition (HD) LCD projector for home theater systems, featuring both high contrast
and high brightness (1200 lm †7), utilizing a new “Wooo HD lens” and a twin iris mechanism.
In January 2006 earned “Eco Leaf” environment label †8 certification.
Prevention of global warming factor: 24 / Resource factor: 19
Eco-friendly features • Total elimination of PVC in device parts • Uses non-halogen
flame-retardant for casing • Uses pulp mold instead of polystyrene foam for packaging

No.AG-06-024

The Beat Wash washer-dryer (BW-DV9F)
features a stand frame andother parts made of recycled plastics.

and its accessories and reviewing the use ofresins were produced for use in the frames andcushioning materials, they managed to reduce

outer tanks of washer-dryers and fully automaticthe external volume of the package by 35%

washing machines.

and the quantity of cardboard used by 17%.
They also simplified the packaging procedure

Sustainable Business Modeland increased truck-loading efficiency by 26%,

What Is a Sustainable Business Model?

thereby achieving a reduction in CO2 emissions

To help realize a sustainable recycling-oriented

during transport.

society that balances economic, social, and environmental needs, the Hitachi Group has worked

Use of Recycled Plastics

hard to build a sustainable business model. As

A major issue with recycled plastics has beenpart of this effort, Group companies are working

the deterioration in quality that occurs with

together to share information, create synergies,

long-term use of products. As part of the New

and to pursue initiatives on new Group projects

Energy and Industrial Technology Developmentin energy conservation, GHG †9 decomposi-

Organization’s (NEDO) Practical Application oftion and recovery, and the Clean Development

Technologies for a Recycling-Based Society in

Mechanism (CDM) †10.

†9 GHG (Greenhouse Gas)
GHGs are gases dispersed in theatmosphere that contribute to
the greenhouse effect. The Kyoto
Protocol calls for the reduction of
six types of GHGs to prevent global
warming—carbon dioxide, methane,
nitrous oxide, HFCs, PFCs, and SF6.
†10 CDM(Clean Development Mechanism)
A mechanism that enables
industrialized countries to jointly
undertake greenhouse gas reduction
projects in industrializing countries,
and allows the achieved increases
in GHG absorption capacity or
reductions in GHG emissions to becredited to the investing countries,
and counted towards their own GHG
reductions.

fiscal 2001, Hitachi pursued the developmentof renewable technology for plastics recovered

Global Warming Countermeasures Businessusing the Group’s domestic appliance recycling

The Hitachi Group is committed to developing

plant, and in April 2002 a project plant was es-

solutions to support the battle against global

tablished in Hitachi Taga Technology, Ltd. Using

warming in the fields of energy conversion and inrecovered plastics, functional polypropylene (PP)the industrial, consumer, and transport sectors.

Global Warming-related Business Fields and Initiatives
Industrial sector

Energy conversion sector

Transport sector• Improving production efficiency• Energy conservation• Greenhouse gas decomposition• Use of alternative energy sources• Improving energy production efficiency• Improving transport efficiency• Improving transport means• New electric power generation
technologies(e.g., solar generators, wind power)• High-efficiency power stations
and substations(high thermal efficiency,
high efficiency distribution,
nuclear power)• Energy supply
Co-generation• Energy-efficient technology
Amorphous transformers
High-efficiency motors
Inverter controls for pump andfan motors• Energy conservation services
ESCO projects, motor drives• Greenhouse gas decomposition
PFC decomposition systems

Energy conversion sector
Transport sector• Greenhouse gas emissions
management

Industrial
sectorConsumer
sector• High-efficiency railway carriages• High-efficiency automobiles• ITS (Intelligent Transport Systems)• Shared distribution systems
Consumer sector• Improving energy utilization
efficiency
Business systems• High-efficiency building equipment(air conditioning systems, etc.)• Energy and emissions management
Household systems• Energy-efficient appliances• Energy management systems• Emissions management systems

Next Eco 57

Next
Eco

ESCO Projects
Energy-saving diagnosis
Consulting on high-efficiency
energy utilization

MaintenanceTotal support
after implementationof improvements

Financing
Investment planningsupportESCO Project

Verification of energy savings
Substantiation of
improvement based on
quantity of energy savings†1 JI(Joint Implementation)
Under this mechanism, industrializedcountries that ratified the Kyoto
Protocol can work together to help
meet their own emission reduction
targets by undertaking joint protects
to reduce greenhouse gas emissions
or increase absorption capacity.
The emission reduction units theyearn can be shared as credits by theinvesting countries. Legal entities
are permitted to participate in thismechanism.
†2 ESCO Project(Energy Service Company)
A new form of business in which thecost of investing in energy-saving
technology is covered by theenergy reductions achieved. In an
ESCO project, a factory or building
is provided with comprehensive
energy conservation services,with a guarantee that it will saveenergy without the environmental
harm previously caused. In return,the ESCO is compensated by thecost reductions achieved by theinvestment. The user benefits froma long-term reduction in energy
consumption and CO2 emissions.
†3 Manifest
This is a document used when acompany contracts out the disposal
and processing of the industrial
waste it generates. The manifest
confirms the entire flow of processes
as the waste passes from one
operator to another, by requiring
documentation of details, such as
the type of industrial waste, thequantity, the transport company,
and treatment company. Manifest
management of subcontracted
industrial waste handling is requiredby law.

Design and Installation
Supply of systems andequipment to meet needs

Already it is delivering products and services

and research facilities. In projects undertaken

in a broad range of technological fields such

between 2000 and 2005, it has achieved an ag-

as energy conservation, decomposition andgregate reduction of approximately 120,000 tons

recovery of greenhouse gases, and information

per year of CO2 emissions, and approximately

systems to support the reporting of greenhouse

48,000 kl per year in energy savings throughgas emissions and emissions trading.

conversions from oil. In recognition of these

The Group is also actively tackling overseas

efforts, Hitachi won the Second Eco-Products

projects aimed at global warming prevention andAwards’ Minister of Economy, Trade and Industry

energy conservation, including CDM projects,

Prize (Dec. 2005), as well as a Gold Medal at theto address the need for the global-scale envi-

First ESCO Excellence Awards (sponsored byronmental measures required under the Kyoto

the Energy Conservation Center, Japan) (Feb.

Protocol. As a pioneer in this field, Hitachi Pro-

2006).

duction Systems’ high-efficiency amorphoustransformer CDM project was adopted by NEDO

Lighting Service Pack(an independent organization) for use in the fiscal

Hitachi Lighting, Ltd. has launched a Lighting

2005 CDM/JI †1 Feasibility Study Project.

Service Pack that, in cooperation with agents,
provides businesses with total support, from the

ESCO (Energy Service Company) Project

supply of lamps through to their final disposal.

Hitachi’s ESCO Project †2 is designed to provide

Under the system, lamps are lent to the busi-

comprehensive energy conservation services,

nesses, who then return the lamps after use.

involving not only the introduction of energy-sav-

The system reduces the cost to businesses ofing equipment, but also the utilization of exhaust

disposing of used lamps and other expenses

heat with consideration to balancing electric andsuch as the administration costs related tothermal energy. The project aims to substantiallymanifests †3. It also enables the achievement of

reduce electrical energy consumption and CO2zero net emissions for lamps. Glass, mercury,emissions. Taking advantage of the Group’s col-and other materials are recovered from the fluo-

lective strengths, Hitachi has already achieved

rescent lamps collected by dealers, resulting inremarkable success in a wide variety of sites,a recycling rate of approximately 98%.

including factories, hospitals, office buildings,

Flow of the Hitachi Lighting Service Pack Initiative

Lamp loaned
Service contract
Customer

Contract
DealerAppropriate processing
Intermediate treatment company

Contract with processing contractor
Lamp recovery

Issue and control of manifest
Confirmation of place of processing58Super Eco-Factories & Offices
Efficient use of resources, management of chemical substances,and prevention of global warming—
The Hitachi Group has embarked on an ambitious program to reduce
the environmental impact of its production facilities and offices,
and is committed to quickly reaching its targets.

Efficient Use of Resources

including the Hitachi Research Laboratory andReduction of Final Waste Disposal

Hitachi Engineering & Services Co., Ltd.

To reduce the environmental impact of its production activities on the environment, the Hitachi

Improving Resource Productivity

Group is working to reduce the amount of waste

Material flow cost accounting enables identifica-

going to final disposal sites by promoting thetion of factors leading to material loss in produc-“3Rs”—reduce, reuse, and recycle. In view oftion processes and subsequent improvements

the shortage of waste disposal sites in Japan,

to reduce waste and costs. This method was

the Group is committed to cutting its final waste

introduced as a trial by Hitachi Maxell, Ltd. forto 70% of the fiscal 1998 (reference year) level by

its minidisc manufacturing process. The flow of

fiscal 2010. In fiscal 2005 total waste fell to 44%

resources is tracked for each material, and mea-of the fiscal 1998 level, making it the third yearsures are implemented to reduce wastage. As ain succession that the target was exceeded. 97

result, spending on resources and the quantity offacilities have achieved zero emissions †1 (up 26

generated waste have both fallen. From now on,

from the year before). We are working to further

resource productivity improvement initiatives will

promote zero emissions and reduce the quantity

be applied to all kinds of processes, and Hitachi

of generated waste.

will strive to cut wastage as far as possible

Uniform collection box at Hitachi Works†1 Zero emissions
The Hitachi Group defines “zeroemissions” as “no more than 1% of
total generated waste, and less than
5 tons of total waste going to final
disposal sites per year”

throughout its production operations.

How to read the graphs(applies to pp. 59 to 64)
The number of Group companies
contributing to the aggregate
environmental impacts varies
according to changes in Group
companies. When a target reference
year is given, figures refer to fiscal
2005 aggregates for 275 groupcompanies, to show the extent ofprogress toward meeting the target
as of 2005. In other cases, thedata shown is the aggregate for thenumber of companies applicable forthe corresponding fiscal year.

Recycling

Hitachi, Ltd.’s Hitachi Works has commenced

Efficient Use of Water Resourcesa total uniform recycling system. Using a three-Hitachi is making efforts to reduce its industrial

step process, some 5,000 uniforms are recycledwater consumption by recycling cooling water. In

each year, resulting in energy saving equivalentJapan, Hitachi Joei Tech Co., Ltd. has adopted

to approximately two tons of oil. In step 1, a useda cooling-water recycling system for plasma TV

uniform is recovered. In step 2, the recoveredcabinet injection molding machines, thereby

uniform is recycled and re-made into a new one

reducing consumption by 20 km 3 per year.

in cooperation with a recycling company, andOverseas, Hitachi Semiconductor Singapore

in step 3, the re-made uniform is purchased

Pte. Ltd. has reduced its water usage by 110

back. This initiative is now being extended as an

km3 per year, using of an ion exchange-based

autonomous recycling project to other facilities,

wastewater recycling system.

Final Waste Disposal Reduction(kt/yr)200
160

Waste Generated

Japan
Overseas
Trend in final disposal rate reduction(Target values are given in parentheses)

100

Japan
Overseas
Trend in resource recycling rate

(%)

100
(kt/yr)

155

(70)

80

1,000

61
120

84

80
40
0

103
59

71

1998

96
53

60

44

92
59

40

68
50

44

43

33

18

2002

2003

2004

2005

2010 (FY)

Water Usage

750

90

84

78
843
250

772
130

708
143

771
651
81

179

500

20

250

0

0

593

1998

642

2002

565

2003

570

2004

592

2005 (FY)Japan
Overseas(%)(million m3 /yr)

100

100

80

80

60

60

40

40

20

20

0

0

70

74

69
10

9

14

60

60

60

2003

2004

2005 (FY)

Next Eco 59

Next
Eco

Management of Chemicals†1 CEGNET
Chemical Environmental Global
Network†2 VOC
Volatile Organic Compounds
A generic name for organic
compounds that evaporate easily
and linger in the atmosphere asgases.
†3 PRTR
Pollutant Release and Transfer
Register
There are 354 groups of substances(Appendix 1 of Cabinet Order) thatare subject to control under the
Law Concerning Reporting, etc.,
of Release of Specific Chemical
Substances to the Environment andPromotion of Improvement of Their
Management, enacted in 1999
in Japan.

Chemical Risk Management

Survey of Substances Covered by
the PRTR Law †3

In 1998 Hitachi launched CEGNET (Chemical

The Hitachi Group collects data on all substanc-Environmental Global Network) †1, an online

es governed by Japan’s Pollutant Release andsystem for the group-wide management ofTransfer Registers (PRTR) Law (formally the Law

chemicals in Japan. When the introduction ofConcerning Reporting, etc., of Release of Spe-a new chemical is considered, information iscific Chemical Substances to the Environment

collected on its hazardous properties as well as

and Promotion of Improvement of Their Man-

relevant laws and regulations, and the Special

agement). Data is collected on all substances

Committee for Chemical Substances assesses

handled in quantities of 10 kilograms or more

the pros and cons of using the substance. To

per year, even when such an amount is below

ensure proper management of any controlled

the minimum for mandatory reporting under thehazardous chemicals, handling is closely coor-law. In addition, Hitachi monitors all discharges

dinated with the departments at each facility that

into the atmosphere and public waters, as well

are responsible for design, manufacturing, andas transfers such as removals in the form ofpurchasing.

waste from facilities or as effluent released intosewerage systems.
During fiscal 2005, the Group used ap-

Reducing VOC †2 emissions

In response to an amendment to the Air Pollu-

proximately 200,000 tons of chemicals, includingtion Control Law in Japan in April 2005, Hitachi

114 of the 354 varieties covered by the PRTR

worked to reduce VOC emissions in all facilities

Law. Of the total amount handled, 1.5% was

subject to the provisions of the law. At the same

released and 1.3% transferred. The three mosttime, even at facilities not covered by these pro-used substances in terms of emissions werevisions, voluntary measures were taken to cut

toluene and xylene (included in paints), ethylene

VOC emissions. The national reduction target

glycol, and monomethyl ether (used as a plastics

is 30% by fiscal 2010, and Hitachi is committed

solvent). In total, 110 facilities submitted reports

to cutting its VOC emissions by 45% within theto the relevant local governments as required

same time frame.

under the PRTR Law.

Chemical Risk Management

Survey Results for Substances Covered by Japan’s PRTR Law(Reported release and transfer quantities for fiscal 2005)

CEGNET System

Qty. released

Info. on laws & regulations Recording of total quantities
released and transferred
Info. on voluntary control

Qty. transferred

PRTR
reporting

Mn and Mn compounds

1.5% 1.3%
Risk information Release data

Preliminary inspection for
new chemical substances

Handlingof chemicals

Feedback

Reduction of releases

Other

Ethylene glycol
Monomethyl ether

Qty. handled
215 ktEthyl benzene

60

7%

97.2%

Qty. released
3.3 kt44%

27%
Used in products(incl. qty removed and treated)

Prevention of leakage

12%
4%
6%

Quantities Handled, Released, and Transferred

XyleneBreakdown of Released Substances

TolueneSubstances Subject to Voluntary Control
Substances subject tothe Industrial Safety and
Health Law
Hazardous
Ozone-depleting
substances
substances

Poisonous anddeleterious
substances

Prohibited substances (100):
Benzene, dioxins, etc.

Substances targeted for
reduction (270):
Methylene chloride, lead, etc.

Substances
Substances subject tosubject to the Chemical Substances
the PRTR Law
Control Law

Greenhouse gases

High-pressure gases
Substances
subject to air andwater pollution laws

Controlled substances (1,030):
Styrene monomers,
ethanolamines, etc.

PRTR Law: Law Concerning Reporting, etc., of Release of Specific Chemical Substances tothe Environment and Promotion of Improvement of Their Management(Pollutant Release and Transfer Registers (PRTR) Law)
High-pressure gases: High-Pressure Gas Safety Law
Hazardous materials: Fire Service Law
Health and safety law: Industrial Safety and Health Law
Chemical Substances Control Law: Law Concerning Examination andRegulation of Manufacture and Handling of Chemical Substances
Air & water pollution laws: Air Pollution Prevention Law, Water Pollution Prevention Law
Poisonous and deleterious substances: Poisonous and Deleterious Substances Control Law
Ozone depleting substances: Law Concerning the Protection of the
Ozone Layer through the Control of Specified Substances and Other Measures(Ozone Layer Protection Law)
Greenhouse gases: Law Concerning the Promotion of the Measures to
Cope with Global Warming

Voluntary Controls to
Reduce Environmental Impacts

as more established analysis methods.

Besides controlling substances under the PRTR

that provides gas emissions treatment systems

Law, Hitachi voluntarily controls the amounts

both within and outside the Group. For example,of release or transfer of approximately 1,400

Babcock-Hitachi, Ltd. provides VOC treatment

substances (including substances not controlled

equipment that uses a thermal storage mediumby the PRTR Law), classifying them into one of

combustion method to support efforts to reduce

three categories: “prohibit,” “reduce,” or “control.”atmospheric pollution.

The Hitachi Group is also offering a service

Hitachi set itself the target of reducing the total
release of substances in the “reduce” category

Preventing Pollution of Soil and Groundwaterto 70% of the fiscal 2000 figure by fiscal 2005.

Hitachi is working to prevent leakage of chemical

Through its efforts, chemical releases in fiscal

substances by converting underground piping,2005 were down to 40% of the fiscal 2000 level.

pits, and tanks to above-ground facilities, thereby
making inspections easier. To avoid leakage from

Practical Examples of Reduction andControl of Released Chemicals

underground tanks that are not yet converted, theThe Hitachi Chemical Group is making sustainedsuch as ultrasonic testing, and tested for corro-efforts to reduce the quantity of chemicals re-sion. Hitachi Kyowa Engineering Co., Ltd. con-leased at Group facilities. A total of 2,000 tons

ducts speedy analysis using a mobile soil analysis

were released into the atmosphere in fiscal

laboratory, and traditional analysis methods, to2005—a 70% reduction of the fiscal 2000 level.

support the numerous site management andTo comply with the new VOC regulations that takesurvey systems that are being implemented.

tanks are inspected rigorously using techniques†4 Bioassay evaluation system
A system for directly evaluating thechemical risk to living things in theenvironment

effect in fiscal 2006, Hitachi Chemical is extending
its use of treatment equipment for gas emissions
and making further cuts through voluntary control
efforts. Other initiatives to control VOC emissions
include checking surrounding soil for VOC pollution using a bioassay †4 evaluation system, as well
Use of bioassay evaluation system

Trend in Emissions of Substances Targeted for Reduction(kt/yr)15

Excluding PRTR Law class 1
PRTR Law class 1 substances
Trend in emission levels(target in parentheses)

100

10.6

9.7
3.9

3.6

5

1.8
6.9

6.1
4.0

0

2000

2001

2002

40
(70)

44

5.8

6.2

100

10.8

10
4.4

(%)

2003

4.7

50

4.2
1.4

1.4

3.3

2.8

2004

2005 (FY)0

Mobile soil analysis lab

Next Eco 61

Next
Eco
†1 Specific emissions targets set
by industry groups
The target for the electrical andelectronics industry is reducing CO2
emissions per real production unit to
25% below the fiscal 1990 level.
†2 Per real production unit
CO2 emission (t-CO2) ÷ production
output (100 million yen) ÷ domestic
corporate price index (electricalequipment) determined by the Bankof JapanPrevention of Global Warming

CO2 Reduction—Overseas

CO2 Reduction—JapanThe Hitachi Group has resolved to cut total CO2

The Hitachi Group has committed itself to two es-

emissions at its overseas facilities to 5% below

sential CO2 emission reduction targets—cutting

the 2003 level by 2010. Total CO2 emissions for

its total CO2 emissions by 7% below the 1990

2005 were 0.5% lower than in fiscal 2003. Withlevel by fiscal 2010, and in the same period either

the expansion of Hitachi production facilities

meeting specific emissions targets set by industry

overseas, the number of production bases now

groups †1, or reducing CO2 emissions per unit ofsubject to energy conservation management has

production to 25% below the fiscal 1990 level. In

risen from 31 to 56. To promote more effective

fiscal 2005, the Hitachi Group invested 5.1 billion

energy saving measures, the environmental is-yen in energy conservation measures, resulting

sues faced in Hitachi’s many Chinese facilities

in energy savings equivalent to 250 million liters

have been investigated, and from fiscal 2006of crude oil and reducing CO2 emissions by 45

these will be reflected in the evaluation criteria

kt per year. Total CO2 emissions for the yearof the GREEN 21 (Version 3) environmental as-

amounted to 2,680 kt-CO2, or 81% of the fiscal

sessment system.

1990 level. The specific target for sites belonging
to the Electric, Electronic Industries Association

Improved Air Conditioning Systems

was a decrease of 45% in CO2 emissions per

At the Nakajo Plant of Hitachi Industrial Equip-

real production unit †2 from the 1990 levels.

ment Systems Co., Ltd., the electric heater

In 2003, Hitachi launched its CO2 emissions

used for temperature and humidity control was

reduction system, which ranks designated pro-eliminated from the air conditioning system

duction facilities according to their progress inthrough the reutilization of waste heat from themeeting reduction targets. In the past year, thesystem and exhaust heat from the steam dryer.

number of plants meeting the system’s targets

This measure resulted in a reduction of 312 MWhrose from 32 to 48 (out of 77). Currently, efforts

per year of electricity. In addition, Hitachi wasare focusing on cutting emissions by adopting

recognized for a wide range of other meticulous

of energy-saving Hitachi products. Examples

energy efficiency measures, winning the Minis-

include converting to metal halide lamps, which

try of Economy, Trade and Industry Prize at theconsume only half as much energy as mercury

2005 Energy Management Excellence Award.

lamps, and upgrading to high-efficiency amorphous transformers.
Trend in CO2 Emissions in Japan

CO2 Emissions Overseas

Trend in CO2 emission rate reduction
CO2 emissions per real production unit
CO2 emission

100

(%)

(kt CO 2 /yr)

(93)

100

2,000

(75)

80

(Target values are given in parentheses)

78

81
(97)

CO2 emission
CO2 emissions per unit of production(target in parentheses)

100

3,312

3,000

2,914
2,283

46

45

2,586

2,680

1990

2002

2003

2004

2005

(%)

100
80

1,346

60
1,000

2010 (FY)

Data of sites which belong to Electric, Electronic Industries Association

62

(95)

60

2,000
0

99.5
1,656

1,597

(kt CO 2 /yr)

4,000

101

40

40

20

20

0

0

2003

2004

2005

2010 (FY)0Energy Conservation Overseas

As a result of large-scale adoption of neutralizing

For eight consecutive years since 1998, thesystems at LCD manufacturing facilities and the

Hitachi Global Storage Technologies (Thailand),promotion of gas substitution, We achieved theLtd. has managed to cut its energy usage bytarget of fiscal 2005 (30% reduction compared

3% to 4% per year through building with thermal

with fiscal 2003).

†3 Greenhouse gases
Six type of gases known to cause thegreenhouse effect: carbon dioxide(CO2), methane (CH4), nitrous oxide(N2O), perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), which areused as CFC substitutes, and SF6(sulfur hexafluoride). CFC substitutes
are said to be tens of thousands tomillions of times more powerful than
CO2 as greenhouse gases.

insulation, etc. In total it has reduced its energy
needs by 9.66 MWh per day. The facility was

Use of Alternative Energy Sources

awarded the Prime Minister’s Prize for this out-

The installation of a solar power generation sys-

standing energy conservation achievement.

tem (168 generator modules with a total output of
30 kW) at Hitachi Industrial Equipment Systems

Reducing Greenhouse Gas Emissions

Co., Ltd.’s Narashino plant has achieved a CO2

Hitachi continues striving to reduce emissions

emissions reduction of 10.6 tons per year. Theof greenhouse gases †3 other than CO2 (PFCs,

Hitachi Group is also contracting out wind power

HFCs, and SF6) by switching to substitutes andgeneration projects. In fiscal 2005 it earned

introducing technology to neutralize them. Atten-“green power certificates” corresponding to ation is particularly focused on SF6 due to its hightotal of 930 MWh. Part of this energy was used

global warming potential (GWP) and the large

to power the Hitachi Group pavilion at the 2005

quantities in which it is used, and Hitachi is pur-World Expo (Aichi, Japan)—90% of the pavilion’ssuing a Group-wide reduction target for the gas.

energy needs were met by wind power.

The roof of the production facility at
Hitachi Global Storage Technologies(Thailand), Ltd. features a coating of
insulating paint.

Improved Temperature Control System of Air Conditioningat the Nakajo Plant of Hitachi Industrial Equipment System Co., Ltd.

A solar electric power generation
system at the Narashino Plant
of Hitachi Industrial Equipment
Systems Co., Ltd.

Cooleddry air

Humid air

Dry air

M

Heat ofcondensation

Expansion
valve

Compressor

Refrigerant gas

Electric reheater

Chiller

Before improvement
Heat

Chilled water
recirculation pump

Cooling tower

Greenhouse Gas Emissions and Their Composition

Anti-icing heater

Heat exchanger(compressor)

100

Heat exchanger(Drain system)

Cooleddry air

Humid air

85
6

Dry air

Chiller

21

70
3
17

50

Steam drain

Heat ofcondensation

Expansion
valve

Compressor

Refrigerant gas
M

HFC
PFC
SF6

(10,000s GWP-t)

Utilization of all exhaust heat

49
7

41
7

58

50

24
42

34

7
17

After improvement0
Outdoor heat exchanger

2001

2002

2003

2004

2005 (FY)

Steam dryer

Next Eco 63

Next
Eco

CO2 Emissions from Transportation

CO2 emissions from transportation
CO2 emissions reduction rate in brackets
Total transport load

Boosting Transportation Efficiency
Reducing CO2 Emissions

In fiscal 2005, Hitachi Group’s total emissions

Total
transportload(kt-km/yr)

5,000
4,000

from transportation amounted to about 2.7 billion

3,000

ton-kms, down 6% from the year before. As a

2,000

result of continued expansion in the modal shift

1,000

strategy, CO2 emissions dropped to 30% below
the fiscal 2000 level—well in excess of the 10%

Air
Ship
Rail
Truck

595
[100]

600
414

362
425

3,350
2,270

0

2000

CO2 emissions(kt/year)

2002

2,484

2003

453

[70]

2,854

2,696

2004

2005 (FY)400
200target originally set for 2010.
Total CO2 emissions from transportationin Japan in 2004 were 20.6% above the 1990
level. In response to this general trend, newtransport energy conservation measures were

†2 RORO ships
Roll-on, roll-off ships
Ships constructed so that trailers
can be driven on and off, enabling
direct loading and offloading ofcargo without the use of cranes.
†3 3PL
Third party logistics
A type of outsourcing service inwhich a company’s distributionfunctions are collectively contracted
out to a third party.
†4 Digital tachograph
A device that records digital data on
vehicle speed, travel distance, travel
time, etc. to magnetic media.
†5 GPS
Global Positioning System“East Japan PFC,” a joint distribution
center for the toiletries industry

64

Manufacturer
A

Wholesaler
A

Platform Center

introduced with the enactment of the revised
Energy Conservation Law in April 2006. Welcoming this initiative, Hitachi has redoubled its
efforts. From fiscal 2006, Hitachi is formulating

Manufacturer
B

new targets that take into account data such as
quantity of transported waste and use of roadroutes, in addition to product transport, and it
is developing detailed energy-saving measures.
This opportunity will also be used to issue new
guidelines and to communicate these extensively
to work sites. Initiatives to increase transport

ManufacturerC

Sorting bydestination

Joint
storage

Consolidated†1 Modal shift“Modal shift” refers to a shift inmodes of cargo transport from trunk
roads to rail and sea, which offer
greater energy-efficiency and lesspollution. Hitachi is making greateruse of rail and sea transport fortrunk line transport in combination
with road transport to and fromterminals.

Platform Operations for the Toiletries Industry

Distribution
processing

Wholesaler
B

RetailerA
Retailer
B

Joint storage and Consolidated delivery
Rationalization via joint distribution• Reduced distribution costs• Reduced environmental impact

efficiency include, for example, a modal shift †1away from the use of trucks, used for meeting

Approx. 20% fewer transport vehicles (estimated)delivery deadlines, toward regularly-scheduled
services such as RORO ships †2, and the promotion of 3PL †3 services.

vehicles, and it leads to reduced CO2 emissions
and easing of traffic congestion. In April 2005

Industry Platform for Joint Distribution

Hitachi launched its East Japan PFC (platform

The idea of Hitachi Transport System, Ltd.’scenter), a joint distribution center for the toiletries“Industry Platform Operations” is to constructindustry. The distribution center features human-a standardized infrastructure (platform) for asensing illumination, vehicle tracking through use

specific industry, consisting of information sys-of digital tachographs †4 and GPS †5, requiringtems, a distribution center, and delivery network.

significantly fewer vehicles than conventional

This is intended to provide industry customers

distribution systems, and contributing to trans-with consistent, joint distribution services such

port energy conservation. In recognition of thisas storage and delivery. This service is able toinnovation, Hitachi was awarded the Promotion

offer customers the benefits of lower distribu-

Council Chairman’s Prize at the Second Eco-tion costs and better distribution services. At theProducts Awards. The prize was conferred atsame time, consolidated delivery enables higher

the “Eco-Products 2005” environment exhibition

loading efficiency and use of fewer transportlate last year at Tokyo Big Sight.

Worldwide Environmental Partnerships
The starting point of all Hitachi activities is our stakeholders—customers, local community members, shareholders, investors, and suppliers.
We work hard to disclose pertinent information and engage in dialogue
with stakeholders, including employees, to create a sustainable society together.

Exhibiting at Eco-Products 2005 andReaching Out to Students

the appropriate temperature, and in June 2005

Eco-Products 2005, one of Japan’s largest en-of Hitachi, Ltd. encouraging company members

vironmental exhibitions, was held in Decemberin “cool biz” attire. Further, we participated in

2005. The Hitachi Group introduced productsBlack Illumination 2006, which involved havingand services designed to help control global

Group companies in Japan with neon signs

warming and conserve energy under the theme

and billboards completely cut off the electric-“Next Eco—Together with Hitachi: Tackling

ity to 87 sites. In collaboration with Tsutenkaku

Global Warming.”

Kanko Co., Ltd., we held the Hitachi Light Down

we developed a poster featuring the president

As a part of their integrated learning ac-

Campaign in Tsutenkaku, which consisted oftivities, students from Wada Junior High School

the “Tsutenkaku Candle Illumination” and “Lightin Tokyo, Japan visited the Hitachi booth. In

Down Jazz in Tsutenkaku” events.

“Let’s Create the Next Eco”—HitachiGroup newspaper advertisement foreco-appliances in Japan

March, based on the things they learned at theexhibition and in class, information provided by

Communication with Local Communities

participating companies, including Hitachi, andThe Hitachi Group has conducted dialogue since

responses to questionnaires they had prepared,fiscal 2004 with local communities for the purpose

the students held the Wada Junior High Schoolof introducing the activities of production facilities

Eco-Products Fair and presented the initiatives

and deepening mutual understanding. In fiscal

of a number of companies.

2005 dialogues were held at Hitachi Joei Tech

Hitachi intends to continue providing support for the education of children, who will lead

Turning off the lights at Tsutenkaku(Osaka, Japan).

Co., Ltd. in Gifu and Shimodate Works of Hitachi
Chemical Co., Ltd. in Ibaraki, Japan.
At Hitachi Joei Tech, the dialogue was held

the next generation.

as a part of the “environmental risk communica-

Participating in “Team Minus 6%” andthe “Light Down” Campaigntion” being promoted by Gifu Prefecture’s Chuno

There are 97 companies of the Hitachi Groupto the views of local community members, whoparticipating in the national compaign to fightwanted to confirm their safety and security andglobal warming “Team Minus 6%” †1 in Japan.

to continue direct dialogue with us in order to

We introduced environmental activities in an

reduce the risk to their community. We gave theadvertisement—based campaign on the con-community assurances that this type of dialogue

cept “Let’s Create the Next Eco—The Futurewould continue in the future.

Regional Promotion Office. We listened carefullyof the Environment Created by the 300,000

By continuing with these initiatives, we will

Members of the Hitachi Group.” In addition, thework to protect local environments and extend

air-conditioning inside the company was set tothe scope of our activities.

Hitachi Group’s booth at Eco-Products 2005

Wada Junior High School’s Eco-Products Fair

†1
“Team Minus 6%” is a national
campaingn to fight global warming
emissions by 6%, which is the target
for Japan established in the Kyoto
Protocol.

Environmental risk communication
at Hitachi Joei Tech

Next Eco 65

Dialogue with the Experts
Hiroji Tanaka and Mizue Unno, two leading CSR specialists, were invited to speakwith the Hitachi Corporate Communication Division’s CSR Promotion Department
to give us their views on Hitachi’s CSR activities in fiscal 2005
as well as suggestions for our CSR efforts in fiscal 2006 and beyond.

Consolidate CSR Activities,
Create Strategy, and Clarify Relation
between CSR and Business Strategy

overall based on the CSR Policy of the HitachiGroup. In order to establish an awareness of
CSR, it is crucial that it be spread throughout
the Group via the individual businesses.

Hitachi: The Hitachi Group launched CSR activities in a full-fledged manner in April 2005. For

TANAKA: The CSR philosophy is not something

the first fiscal year, our aim was to spread thethat Hitachi has just started. CSR must have

CSR Policy throughout the entire Group. We also

often been part of regular work in the past. It istackled priority issues identified in the Self-Evalu-

important for Hitachi as a Group to consolidate

ation of CSR Activities we conducted in fiscal

the activities that it has been conducting sepa-

2004, including the review of our Guidelines for

rately in the past and create an overall strategy.

Procurement Activities from the perspective ofHitachi needs to confirm as a company the

CSR. We have just begun, however, and manydegree of priority placed on the various CSR

issues remain, including expanding CSR to ourmeasures and tasks.

operations overseas.
UNNO: Looking at the business groups and the

Hiroji Tanaka
Professor, Graduate School of
Economics, Rikkyo University
Senior Chief Researcher,Business Ethics Research Center

TANAKA: My impression is that Hitachi is tak-Group companies, it seems that there are thoseing the steps that need to be taken to lay the

aspects of the CSR Policy’s Eight Principles thatfoundation for CSR. The CSR Policy of the Hitachi

have already been accomplished to a certain

Group, which provides the base of the Group’s

degree and those that are yet to be addressed.

CSR efforts, is being communicated throughout

In regard the supply chain issue too, it is difficult

the Group, and the Guidelines for Procurementin actual practice to address social consideration

Activities are being revised, a key task in regard toequally in all industries. It would be best to clarify

the supply chain. In the case of a large organiza-

priority issues to a certain degree and allow yourtion like the Hitachi Group, however, you need

CSR activities to focus on relevant issues.

to fully explain, especially to your subsidiaries
overseas, the reason why you adopted the CSR
Policy’s Eight Principles (see page 9 of this report).
At the same time, you must be flexible enough to

Actively Promoting CSR that Underlies
All Hitachi Businesses While Valuing
the Independence of Group Companies

leave fine-tuning up to the local area, respecting
the unique characteristics of each region.

Hitachi: With the aim of creating an action
plan for fiscal 2006 and beyond based on a66

UNNO: It is important how you link CSR to thebroad vision, Hitachi formulated the Three-Year

Group’s business strategy. The Hitachi Group

Corporate Social Responsibility Roadmap. In

integrates various businesses, including infra-

line with the overall orientation of the Hitachi

structure and industrial and consumer goods,

Group’s business, the Group companies will

and then each business group takes a different

use this Roadmap to reduce the gap between

approach according to the business feature. It

operations and CSR. Hitachi will celebrate its

would not be reasonable for varied businesscorporate centennial in 2010, and we look for-units to take the same CSR measure. Whileward to welcoming that important milestone withmaintaining recognition of CSR in each business,this Roadmap as the real-life expression of the

it is necessary to clarify how they come together

founding philosophy of Hitachi.

Our conversation with Mr. Tanaka and Ms. Unno

UNNO: Based on Hitachi’s corporate culture ofvaluing the independence of its Group compa-

Hope for True Dialogue
with Stakeholders

nies, the Group companies conduct a variety ofbusinesses on their own. Considering that fact

Hitachi: What level of communication withand the differing regional characteristics of the

stakeholders should Hitachi strive for? We had

U.S., Europe, Asia, and China, it would be sen-difficulty setting objectives in this area.

sible to distinguish those aspects of CSR to beshared by the entire Group from those aspects

UNNO: There are various ways of stakeholder

to be decided by the individual companies andcommunication. “Stakeholder engagement”

then implement a framework that will serve asplaces the involvement of stakeholders in regular

the core for promoting CSR among the Groupand daily business activities. Moreover, the type ofcompanies.

stakeholder varies by business and region as well.
It is important not to lump them all together into

Hitachi: All members of the Group share in

one, but to identify them into categories, and to becommon the fact that they operate under theaware of the key stakeholders in each business.

Hitachi brand. Hitachi thinks it is important that

Mizue Unno

we make maximum use of our brand to ensure

TANAKA: In the discussions about SR standards,

that we send out a unified comprehensive mes-

you frequently hear the term “stakeholder engage-

sage regarding CSR.

ment.” This designates a closer relationship thanManaging Director,
So-Tech Consulting, Inc.

“dialogue.” In other words, it is desirable for comUNNO: To date, the Hitachi Group has con-panies to build deeper relationships than in theducted CSR activities via its businesses as well.

past. I look forward to seeing Hitachi create more

The Group is engaged in a variety of sectors, andopportunities for true dialogue with stakeholders

it should systematically send out the message

from the stage of the exchange of views.

that it has collective strengths as a “social infrastructure corporation,” which is the cornerstone

Hitachi: Thank you for the valuable insights youof its various businesses, and that CSR underlies

shared with us today. We look forward to apply-

all Hitachi businesses without exception.

ing them in our CSR activities in fiscal 2006 andbeyond. Thank you.

TANAKA: In the implementation of its Roadmap,
it is important that Hitachi secure complianceand governance which are prerequisites for CSR.
Hitachi needs to thoroughly discuss how it will
incorporate compliance and governance in its
Roadmap. Moreover, discussions regarding thecreation of CSR standards are gaining strength
at international institutes. We must continue tocarefully monitor the content of this debate andworld trends in this area.

Message from the CSR Promotion Committee Chair
The Hitachi Group’s CSR activities
bring our founding philosophy alivein our work today. This is why our
CSR efforts must be ever-present in
the minds of all our employees, whileallowing the unique characteristics ofeach of our businesses and of eachregion where we do business to shine
through.
We will incorporate your valuablesuggestions in our activities in 2006
and further develop our CSR activities
while placing emphasis on dialogue
with stakeholders.

Takashi Hatchoji
Executive Vice President andExecutive Officer ofHitachi, Ltd. and Chair of
the CSR Promotion Committee

67

Data on hitachi green web

More details on the environmental activities of the Hitachi Group are available on hitachi green web.
http://greenweb.hitachi.co.jp/en/data/
Category

Activity

Company Profile

NEXT ECO

Related page

Data provided on hitachi green web

Inner front cover

List of companies covered by report (environmental impact data covered)P. 2 – 3

Overview of financial results for FY 2005

P. 42

History of activities

P. 46 – 47

Action plan and results for FY 2005

Environmental Management System
Based on ISO 14001 Certification

P. 48 – 49

Status of ISO 14001certification
List of ISO 14001-accredited production sites

Environmental Education

P. 49

Current and required numbers of legally qualified personnel

GREEN 21 Activities

P. 49

Green Point average: targets and results

Environmental Accounting

P. 50 – 51

Costs, investment, effects, and efficiency in environmental impact reduction
Cost ratio by industry segment
Investment ratio by industry segment
Investment ratio by countermeasure
Economic effect ratio by industry segment

Environmental Impact Data for Corporate Activities

P. 52 – 53

Environmental Impact Data for Corporate Activities (FY 2005)

Next-Generation
Products and Services

Eco-Products

P. 54 – 56

Eco-product registration trends
List and data-sheets for eco-products
Environmental efficiency of products
J-Moss* and Green Mark products
Guidelines for analysis of substances specified in the EU’s RoHS Directive
Volume of subcontracted containers and packaging

Green Procurement

P. 32 – 33

Green Procurement Guidelines
Green Supplier ratio

Building a Sustainable Business Model

P. 57– 58

Energy-saving solutions
Number of household electrical appliances recycled and product recycling ratio
Number of collected used PCs and ratio of material reusing

Efficient Use of Resources

P. 59

Final waste disposal reduction
Final waste disposal volumes by industry segment and type
Waste generated
Zero emission sites
Flowchart for treatment of waste and reusable waste products
Breakdown of recycling methods
Water usage

Management of Chemicals

P. 60 – 61

Survey results for substances covered by Japan’s PRTR law
PRTR investigation results
Percentage of PRTR chemicals handled, by industry segment
Emission and transfer volumes of PRTR chemicals by industry segment
Trends in emissions of substances targeted for reduction

Prevention of Global Warming

P. 62 – 63

Trends in CO2 emissions in Japan
Trends in CO2 emissions overseas
Trends in composition of energy use
Volume and composition of greenhouse gas emissions
Greenhouse gas emissions and their composition
Volume of new energies

Increase Transport Efficiency

P. 64

CO2 emissions from transportation
Ratio of low-emission vehicles to total owned by company

Information Disclosure and Dialogue

P. 65

Publication of reports and information disclosure via the Internet, by company
and facility
Contact information to request reports of companies/sites
Environmental web links of companies/sites
Awards
Eco-Products 2005 Exhibition
Status of environmental town meetings

Environmental Activities of the Hitachi Group

Eco-Mind &Global Environmental Management

Super Eco-Factories & Offices

Worldwide Environmental
Partnerships*J-Moss: The marking of presense of specific chemical substances for electrical and electronic equipment. Revision of the Law for Promotion of Effective Utilization of Resources has mandated application of a J-Moss content label
for seven product categories when they contain any of the six chemical substances designated in the RoHS Directive. An optional Green Mark may be applied to products that do not contain these substances.

68

About the Hitachi Group CSR Report 2006
This report describes the corporate social responsibility (CSR) activities ofthe Hitachi Group in order to explain to our many stakeholders the Group’s
philosophy and activities as clearly and accurately as possible.
In addition to outlining the framework, systems, and results, this year’s
report focuses on Hitachi’s CSR activities through the implementation and theexperience steadily accumulated since the company’s foundation.
The first section summarizes the Hitachi Group’s CSR activities andgovernance. In the second section, “Next Society,” we report on the social
dimension. In the third section, “Next Eco,” we report on our environmental
activities.
Of special note in fiscal 2005 was the fruition of efforts to develop environmentally friendly products and services, such as our energy-conservation
service business (ESCO/Energy-Service Company) and the Eco Cute, a highoutput integral natural refrigerant (CO2) heat pump hot-water heater, bothof which have won critical acclaim. Further details regarding these and otherprojects are contained within this report.
We hope this report will serve to further your understanding of the CSR
efforts of the Hitachi Group, and facilitate our dialogue with you.

Scope of This Report
Period: The main period covered is fiscal 2005 (April 1, 2005 through March 31, 2006)
Companies: Companies covered under consolidated reporting of the Hitachi Group
Scope of data:
Financial data
Hitachi, Ltd. and 932 consolidated subsidiaries (including modified entities towhich the equity method of consolidated reporting applies) and 158 affiliatedcompanies that use the equity method
Social data
Scope of data indicated under each item
Environmental data Hitachi, Ltd. and 274 consolidated subsidiaries (including companies outside Japan)
Related Reports
We report on the financial performance of Hitachi, Ltd. in the “Financial Highlights” and Annual Report.
Thirty Hitachi Group companies and 10 production facilities publish their own reports on environmental
activities and social dimensions. In addition, 44 Hitachi Group companies and three production facilities
provide information on their websites. (For details, please visit “Information Disclosure via the Internet, bySite” on the “hitachi green web” site.)
Guidelines Referred to in Preparing This Report“Environmental Reporting Guidelines” (FY 2003 version), Ministry of the Environment, Japan“Environmental Performance Indicators Guideline for Organizations” (FY 2002 version), Ministry of theEnvironment, Japan“Environmental Reporting Guidelines 2001—With Focus on Stakeholders,” Ministry of Economy, Tradeand Industry, Japan“Sustainability Reporting Guidelines 2002,” Global Reporting Initiative* This CSR Report will be published on an annual basis.

Inquiries:
Hitachi, Ltd.
(For inquiries on this report or CSR activities overall)
CSR Promotion Department, Corporate Communications Division
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/(For inquiries on environmental activities)
Corporate Environmental Policy Division
1–18–13 Soto-Kanda, Chiyoda-ku, Tokyo, 101-8608, Japan
Tel: +81-3-3258-1111, Fax: +81-3-4564-4074
http://greenweb.hitachi.co.jp/en/
On the cover:
The cover photo is from Moana Loa Garden Park (Monkey Pod tree), Oahu Island,
Hawaii. This tree has become known as the “Hitachi Tree” through televisioncommercials over many years. The tree represents an abundance of the qualities
that we like to emphasize at Hitachi—Synergy, Growth, and Strength.

Hitachi Group Corporate Social Responsibility Report 2006

Printed with 100% vegetable oil ink containing no
VOC (volatile organic compounds).

Hitachi, Ltd. is a member of the Green Purchasing
Network.

Printed on Hitachi Recycled Paper containing 100
percent used pulp.

Hitachi Group
Corporate Social Responsibility Report 2006

The Hitachi Group Corporate Social Responsibility Report 2006
To Our Questionnaire Participants:
Thank you for your interest in Hitachi.
We are pleased to present you with our Hitachi Group CSR Report 2006, covering our activities andinitiatives with regard to corporate social responsibility.
This report is divided into two sections, with “Next Society” covering the Hitachi Group’s activities
from the perspective of social responsibility, and “Next Eco” covering the environmental perspective. The
contents of this report will also be made available on our Web site.
In addition to redoubling our efforts to continually enhance our CSR activities, the Hitachi Group will
also strive to publish ample information concerning the details of these efforts, so that they may be better
understood by the public.
We invite you to read the report, and provide us with your opinions, using the questionnaire printed on
the reverse side of this letter.
Many thanks for your cooperation.
The Hitachi Group
Contact:

CSR Promotion Department
Corporate Communication Division
Hitachi, Ltd.
1– 6 – 6 Marunouchi, Chiyoda-ku, Tokyo 100-8280 Japan
Tel: +81-3-3258-1111 Fax: +81-3-4564-1454
Web: http://www.hitachi.com/csr/

Results of Questionnaire on the Hitachi Group CSR Report 2005 (Total respondents: 222)
Comprehensibility

No reply (5%)
High
(52%)

Average(39%)
Low (4%)

VolumeNo reply (8%)
Too much(34%)

Appropriate(56%)
Too little (2%)

Content

No reply (10%)
Good
(57%)

Average(32%)
Poor (1%)

Reader’s standpoint

NPOs (1%)

Customer(10%)

No reply (2%)

Hitachi Group employees or family members
(60%)

Other
(18%)

Shareholders/investors (4%); Suppliers (3%); Research/educational institutions (2%)

Heard about the report from:
Newspapers
(12%)

Other
(58%)
Magazines (12%); Seminars (3%); Exhibitions (1%)

No reply(25%)

Main Requests and Opinions
Praise• “I discovered the passion with which you are engaging
in these activities across a broad range of fields.”• “Hitachi CSR Activities” was very interesting to read.
The activities of Yamanashi Hitachi Construction
Machinery Co., Ltd. (in the removal of land mines) was
particularly impressive.”• “The fact that the Hitachi Group is looking carefully andobjectively at its own corporate activities came acrossquite clearly.”
Room for improvement• “I would have liked to have seen a bit more discussionof how the CSR perspective is going to shape future
corporate activity.”• “Hitachi should clarify what it is thinking about the typeof activities it is conducting in response to the issues
and demands of society.”• “I would like you to make it a bit easier to read.”
Changes we made in this year’s reportin response to comments such as these:• In the first half of the report we clarify the orientation of
our future CSR activities, including those concernedwith the environment.
• We have explained more clearly the policies and thinking upon which our various activities are based.
• We have worked to make the report easier to read,providing definitions for technical terms on the same
page they appear.

Questionnaire

Hitachi Group CSR Report 2006
When you have completed the questionnaire, please mail or fax it to the following address:

CSR Promotion Department, Hitachi, Ltd.
1–6 –6 Marunouchi, Chiyoda-ku, Tokyo 100-8280 Japan

Fax: +81-3- 4564-1454

Q1. What did you think of the Hitachi Group CSR Report 2006?
1) Comprehensibility
High
Average
2) Volume
Large
Appropriate• Please explain the reason(s) for your selections.

Low
Small

Q2. Which sections of the report did you find valuable? ( You may select more than one.)
Economic Performance
Corporate Governance and Group Management
CSR Promotion Activities of the Hitachi Group
Social Report (Next Society)
Customers and Hitachi
Working Together with Suppliers

Messages from Hitachi’s Top Executives
Compliance and Risk Management
Hitachi CSR Activities

Working in Harmony with Society
Employees Make Hitachi What It Is

Environmental Report (Next Eco)
Hitachi Group’s Environmental Action Plan
Environmental Impact Data for Corporate Activities
Super Eco-Factories & Offices

Partnership with Shareholders and Investors
Hitachi Global CSR Activities

Eco-Mind & Global Environmental Management
Next-Generation Products and Services
Worldwide Environmental Partnerships

Other
Dialogue with the Experts• If any of the sections above particularly interested you, please explain why.

Q3. From what standpoint did you read this report? (Check one only.)
Customer
Stockholder/Investor
Government/Public Administration
NPO
Resident near Hitachi facilities

Supplier
Researcher/Education-related field
Hitachi Group employee/family member

News/Media-related field
Other ()Q4. How did you find out about the report? (Check one only.)
Newspaper

Magazine

Web site

SeminarExhibition

Other ()Q5. If there is anything you would like to see Hitachi doing with regard to its CSR activities, please tell us.

Thank you for your cooperation. If you do not mind, we invite you provide us with the following information.
We may use the information you provide in order to contact you regarding your questionnaire. (It will not be used for any other purpose.)

Name
Address
E-mailName of company, institution or school