Hitachi Group
Environmental Sustainability Report 2010

Environmental Activity Reporting Policy

Latest information

Reports on detailed activities (society and the environment)

Reports on material issues (society and the environment)

bookletHitachi Group
Corporate Sustainability
Report 2010 Digest

Reports on detailed activities (the environment)

PDF
This booklet

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi Group
Environmental Sustainability
Report 2010

On Hitachi, Ltd. Web site

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

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

The Hitachi Group discloses information on CSR activities according to reader interest: the Hitachi Group
Corporate Sustainability Report 2010 Digest presents important management issues that are of particularsocial interest and the Hitachi Group Environmental Sustainability Report 2010 is for stakeholders tracking
environmental activities. The Hitachi Web site discloses more detailed information and the latest activities
as well as the full Hitachi Group Corporate Sustainability Report 2010, published in PDF format, complementing the above reports.

Related Reports

We report on the financial performance of Hitachi, Ltd. in the “Financial Highlights” and Annual Report.
[Period]

The main period covered is fiscal 2009 (April 1, 2009 through March 31, 2010)[Companies]

Hitachi, Ltd. and 900 consolidated subsidiaries (including modified entities to which the equity method of
consolidated reporting applies): total 901 companies[Scope of data]
Environmental data Hitachi, Ltd. and 900 consolidated subsidiaries (including modified entities to which theequity method of consolidated reporting applies): total 901 companies. However, for environmental load data
generated through business operations, companies that cover 90% of the load (based on Hitachi calculations)
Financial data Hitachi, Ltd. and 900 consolidated subsidiaries (including modified entities to which the equity
method of consolidated reporting applies) and 157 affiliated companies that use the equity method
Guidelines Referred to in Preparing This Report“Environmental Reporting Guidelines” (2007), Ministry of the Environment, Japan“Environmental Reporting Guidelines 2001—With Focus on Stakeholders,” METI, JapanGRI Sustainability Reporting Guidelines (G3), Global Reporting Initiative*This environmental sustainability report is published annually.

Contents
2

Commitment

4

VisionMessage from the Chief Environmental Strategy Officer
Hitachi Group Corporate Environmental Management
Highlights:

Contributing to Environmental Conservation
through Business
6
8
10
11

Environmental Business of the Hitachi Group
Prevention of Global Warming
Conservation of Resources
Preservation of Ecosystem

12

Environmental Action Plan
Hitachi Group Fiscal 2009 Environmental Action Plan:
Targets and Results

14

Eco-Mind & Global
Environmental Management
Environmental Management Structure
Improving on Environmental Initiatives

20

Next-Generation Products & Services
Developing Environmentally Conscious Products
Prevention of Global Warming
Conservation of Resources
Preservation of Ecosystem

26

Super Eco-Factories & Offices
Super Eco-Factories & Offices
Prevention of Global Warming
Conservation of Resources
Preservation of Ecosystem
Environmental Load Data Generated through Business Operations

Initiatives That We Participate in
A member of the United Nations Global Compact
since February 200934

Worldwide Environmental Partnerships
Environmental Communication
Building Environmental Partnerships
Activities to Preserve Ecosystems

A member of the World Business Council
for Sustainable Development since 1995

External Evaluations
We were selected in September 2009 for the Dow Jones Sustainability World Indexes (DJSI World), one of the world’s leading social
responsibility investment fund indexes. We were also awarded theSilver Class in the Sustainable Asset Management (SAM) Sustainability Yearbook 2010.

39
40

Independent Review
Company Profile
Economic Performance
Major Fields of Business and Products

Symbol Marks Used in This Booklet† Technical terms, proper nouns, etc., in the text requiring explanation* Additional explanation of terms, etc., in tables or diagrams
Indicates the title and URL of the Web page related to the article
All pages can be accessed fromhttp://www.hitachi.com/environment/data/

Commitment | Message from the Chief Environmental Strategy Officer

A More Sustainable Society through Our Actions,
Products and Services

Environmentally Conscious Management

Contributing to Environmental Conservation
through Business
In November 2009, China’s National Development and Reform
Commission (NDRC) and the Hitachi Group signed a memorandum of agreement on “friendly collaboration for the establishment of a low-carbon society and resource recycling.”
Hitachi will cooperate with China in such areas as power
generation, smart grids, water treatment and recycling, andurban transportation, to help China with its energy-saving
and environmental conservation initiatives. In the UK in
December, Hitachi’s aluminum rolling stock—achieving
high energy efficiency through reduced weight and otherimprovements—went into operation on a high-speed railway
line. Also, we reached an agreement with a Canadian electric
power company in February 2010 for research and development, cooperating with them on carbon capture and storage(CCS) and other low-carbon technologies. These are a few
examples of how we are providing environmental solutions
for our customers.

The Hitachi Group's environmental management aims to
mitigate climate change, resource depletion, ecosystem destruction and other increasingly serious global-scale threats
to the environment. Pursuing our Environmental Vision
based on three pillars—prevention of global warming, conservation of resources, and preservation of ecosystem—we are providing the world with products and services that contributeto environmental conservation, while conducting businessglobally in ways that reduce our environmental burden.
In a major management restructuring in October 2009,
we introduced an in-house company system that gives business groups and subsidiaries the same responsibilities and authority as listed Group companies. Under the new structure,each in-house company and Group company is putting its
own strengths to work, with the Hitachi, Ltd. Group corporate divisions exercising leadership, as we take environmentally conscious corporate action.
Sustainable corporate management cannot be achievedby our efforts alone. It can only be realized by building a solid
partnership with our stakeholders. Through dialogue andcollaboration with stakeholders, we are discovering what is
expected of the Hitachi Group, and we are working to propose and provide the best solutions globally.

Promoting Sustainable Corporate Activities
We have achieved all the targets in our Environmental Action
Plan for fiscal 2009. Sales of environmentally conscious EcoProducts were 53 percent of all sales, bettering the 48 percent target. We reduced the levels of CO2 emissions from ourcorporate activities by 21 percent in Japan (from fiscal 1990
levels) and by 5 percent outside of Japan (per unit of production, compared with fiscal 2003 levels). We are also improving the effectiveness of global environmental management by

Our Achievements in 2009
Undaunted by the difficult economic situation during fiscal
2009, we combined the strengths of the Group to realize ourEnvironmental Vision, as outlined below.

Hitachi Group
Environmental Sustainability
Report 2010

Commitment

Message from the Chief
Environmental Strategy Officer
http://www.hitachi.com/environment/2

holding working-level regional environmental conferences in
Europe and China.

Centennial Year Emphasis:
Social Innovation Business
The year 2010 is our centennial year. As we take the initial steps
toward the next 100 years, we would like to make major contributions to society through our social infrastructure projects
and our technology, in keeping with the original purpose of
the company. This year will see the global deployment of what
we call “social innovation business,” or providing environmentally conscious, highly advanced public infrastructure basedon information and communication systems technology.
In October 2010, the 10th Conference of Parties (COP10) to the Convention on Biological Diversity will meet in
Nagoya; while the 16th COP on the United Nations Framework Convention on Climate Change (COP 16) will meet in
Mexico later in the year. The discussions at these conferences
will focus on global initiatives and goals for preserving biological diversity, as well as the international framework andtargets for reducing CO2 emissions in 2013 and after.
Ever mindful of these international concerns, we will
finalize our third environmental strategy during fiscal 2010
and draw up environmental action plans for the five years
from fiscal 2011. Based on our Environmental Vision, we
pledge to renew our commitment to implementing worldleading, assertive plans for managing the environment.
July 2010

Takashi Hatchoji
Executive Vice President, Hitachi, Ltd.
Hitachi Group Chief Environmental Strategy Officer

3

Hitachi Group
Environmental Sustainability
Report 2010

Commitment

Message from the Chief
Environmental Strategy Officer
http://www.hitachi.com/environment/

Vision | Hitachi Group Corporate Environmental Management

Toward the Resolution of Global Environmental Issues

Three Environmental Pillars of Our Vision:
Prevention of Global Warming, Conservation of
Resources, and Preservation of Ecosystem
The Hitachi Environmental Vision

The quest for a comfortable life has led
humankind to create a society based onconvenience. However, environmental
problems have surfaced, such as climatechange, resource depletion, and ecosystem destruction. To realize a materialcycle society in harmony with the earth,
we must share our vision and promote
environmental conservation.
We have created an environmental
vision to achieve a more sustainable
society by promoting global production that reduces the environmental
burden of a product throughout its life
cycle. We have formulated Environmental Vision 2025, a long-term plan placing
priority on preventing global warming,
and we are conducting our business activities accordingly.

Standards of Corporate Conduct—Fundamental Credo
Adopted June 1983

CSR Policy of the Hitachi Group
Adopted March 2005

Hitachi Action Guidelines for Environmental Conservation (Summary)
1. Assist to realize a sustainable society as a management priority.
2. Contribute to society through technologies and products taking into account the prevention of global
warming, conservation of resources, and preservation of the ecosystem.
3. Members of the board in charge of environmental conservation are responsible for promoting appropriate environmental conservation activities.
4. Promote globally applicable monozukuri with the aim of reducing environmental burdens.
5. Introduce excellent technologies and materials useful for safeguarding the environment, i.e. in termsof energy and resource saving, recycling, consideration for the ecosystem, etc.
6. Conserve the environment by observing environmental regulations and implementing voluntary environmental standards.
7. Regarding globally applicable monozukuri activities, consider the environmental impact on the local
community.
8. Educate employees regarding global environmental conservation activities.
9. Evaluate potential environmental problems and prevent them from occurring.
10. Make efforts to disclose information on environmental conservation activities to stakeholders.
Adopted March 1993 (revised July 2010)

Hitachi Group
Environmental Sustainability
Report 2010

VisionHitachi Group Corporate
Environmental Management
http://www.hitachi.com/environment/

4

To realize our Environmental Vision, we promote activities in accord with the Hitachi
Action Guidelines for Environmental Conservation. These guidelines are basedon the corporate credo of contributing
to society through the development ofsuperior, original technology and products as stated in the Standards of Corporate Conduct.

Standards of Corporate Conduct—Fundamental Credo
CSR Policy of the Hitachi Group
Hitachi Action Guidelines for Environmental Conservation

We will help reduce annual CO2 emissions by 100 million tonnes
by 2025 through Hitachi products and services
for the prevention of global warming.

Philosophy of Environmental Vision 2025
The Fourth Assessment Report of the IPCC†1 states that it isnecessary to maintain greenhouse gas emissions at about 450
ppm (parts per million) to keep global temperatures from rising
two degrees or higher than before the Industrial Revolution. To
meet this goal, the International Energy Agency has presented
a scenario for halving CO2 emissions by 2050 compared with2005 levels and stabilizing them at 450 ppm.
To contribute to the prevention of global warming, we created Environmental Vision 2025 as a long-term plan for ourbusiness activities. With 2005 as the base fiscal year, our goal isto help reduce annual CO2 emissions by 100 million tonnes by2025 through Hitachi products and services. To this end, we will
boost the environmental efficiency of Hitachi Group products
and aim to make them all Hitachi Eco-Products (see page 21).

(billions of
tonnes)60

Scenario assuming world energy policies
implemented to date
Scenario with stabilization at 450 ppm
52.2
2025: Help reduce annual CO2 emissions by 100 million tonnes throughHitachi products and services

50
40

40.2

30

27.1

26.4

20.7
20
14.5
10
0

1995

2005

2025

2030

2050

(FY)

Based on energy-related CO2 emissions in the International Energy Agency’s
World Energy Outlook 2009

Intergovernmental Panel on Climate Change

Reducing CO2 Emissions through Products and Services
To help reduce annual CO2 emissions by 100 million tonnes,
we will cut emissions by 70 million tonnes in the power sector
by building nuclear power plants, improving the efficiency ofcoal-fired power generation, and promoting more renewableenergy. For industries, we will reduce emissions by 20 million
tonnes by introducing products such as high-efficiency inverters and transformers and by conserving energy such as in data
centers. For the transportation, commercial, and residential
sectors, we will reduce emissions by 10 million tonnes by developing lithium batteries for industry and cars and by reducing the energy used by home appliances.
In fiscal 2009, we formulated a calculation policy to reliably
measure reduced CO2 emissions within the Hitachi Group. Also,
we received third-party reviews on our methods for calculating
reduced CO2 emissions and their results for 10 products, such as
nuclear, coal-fired, and hydroelectric power generation products,
servers, and energy-saving services using inverters (see page 39).

5

Contributions to CO2 Emission Reduction(Base: FY 2005)(millions of
tonnes)
100 million tonnes/year
Transportation,commercial & residential
10%
Industry
20%
63

100
Contribution to CO2 emission reduction†1

Concept behind Hitachi’s Fiscal 2025
CO2 Emission Reduction Goal

CO2 emissions

Environmental Vision 2025

80

60

40

20

0

35

11.36

Power generation
70%

14

2009
2010
(estimate)*

2015

2020

2025

(FY)

* CO2 emission coefficients were calculated using 2007 figuresfrom the International Energy Agency’s CO2 Emissions from Fuel Combustion
Highlights (2009 Edition)

Hitachi Group
Environmental Sustainability
Report 2010

VisionHitachi Group Corporate
Environmental Management
http://www.hitachi.com/environment/

sHighlightss

Contributing to Environmental Conservation

Hydroelectric power

Prevention of Global Warming

Reduce CO2 emissions in energy production

Solar power

Nuclear power

Railway systems

Thermal power

Rare metal recycling

Conservation of Resources

Collect products for reuse and recycling
Soil decontamination
Wind power

Recycling home appliances

Preservation of Ecosystem

Reduce negative effect on air, water and soil

Ballast water purification system

Environmental Business of the Hitachi Group
Living in harmony with the earth and building a sustainable society
will require persistent effort and considerable ingenuity. The HitachiGroup Environmental Vision aims for the prevention of global warming, the conservation of resources, and the preservation of the ecosystem. Through our products and services, created with the very latest
technologies, we will go on helping to build a rich, healthy society witha lasting future.

Water environment solutions

Prevention of Global Warming

through Business

Nuclear power

Thermal power

Page 8In addition to building supercritical andultra-supercritical pressure thermal power
plants with improved generating efficiency,
we are developing CO2 capture and storage(CCS) and other low-carbon technologies

Chugoku Electric Power Company’s
Shimane Nuclear Power Station Unit 3

Evonik Steag GmbH
Walsum Power Station Unit 10 (Germany)

Smart grids
Building next-generation power transmission and distribution systems (smart grids)that use information technology to monitor
power demand and supply, enabling effective use of renewable energy sources regardless of weather conditions

Data center

Home

Renewable energy
Involved in wind, solar, and hydro power
generation equipment to control systems
for stable distribution
Page 8

Building

Home appliances

EnergyIT

Prevention of Global Warming

Enhance energy efficiency of our products
Thermal,nuclear, hydroRenewable energy,
batteries
Tokyo Electric Power Company
Ohgishima Solar Power Plant (tentative name)
Artist rendering of completed plant

Railway systems
Page 9Batteries
Batteries, including lithium-ion batteries
for hybrid vehicles and lead batteries used
for both industry and renewable energy
applications

Class 395 (UK)IT platforms

Lithium-ion battery
for hybrid vehicles

Page 9Consumer Products
Creating high value-added products—from
consumer appliances to digital media products—with energy-saving and environmental technologies at the core

Lithium-ion batteries
used in hybrid cars

Modular data center

Conservation of Resources
Rare metal recycling
Page 10Magnetic parts after dismantlingHome appliance recycling
End-of-life appliances are dismantled andrecycled to reuse resources

Air conditioner recycling

Front-loading washer-dryer

Preservation of Ecosystem
Water environment solutions
Page 11

Bunus sewage treatment plant in Malaysia

Ballast water purification system
Page 11

Soil decontamination
Cleaning contaminated sites using microorganisms to decompose hazardous
substances naturally or using additives fora chemical reaction

Test device onboard a tanker

Soil excavation

sHighlightssContributing to Environmental Conservation through BusinessPrevention of Global Warming
Helping to reduce annual CO2 emissions by 100 million tonnes
by 2025 through products and services

Nuclear Power
Generating electricity by nuclear power results in far
fewer CO2 emissions than burning fossil fuels at thermal
power plants, proving nuclear power to be effective atpreventing global warming. Using technologies accumulated from our involvement in nuclear power projects since 1957, we are taking part in the building andpreventive maintenance of highly safe, reliable nuclear
power plants in and outside Japan.
In fiscal 2009, we delivered a reactor pressure vessel
and turbine to Chugoku Electric for Shimane Nuclear
Power Station Unit 3. At the J-POWER Ohma Nuclear
Power Station, set to begin operating in 2014, we arelaying the foundations and making other preparations
to install a reactor pressure vessel. We are also developing nuclear fuel cycle technology: recovering usable fuelfrom spent fuel and reusing it.

Chugoku Electric Power Company’s
Shimane Nuclear Power Station Unit 3
Wind Power Ibaraki Co., Ltd’s Wind Power Kamisu

Wind PowerWind power is widely seen as clean, since it generates
electricity without emitting CO2. To take advantage ofterrain updrafts, we developed the world’s largest downwind turbines. Also, our technology has more stable
output in variable winds. Our strengths include having
a wide range of technologies and equipment, as well as
being a system integrator, to use these in products andservices. In fiscal 2009, we delivered seven turbines forWind Power Kamisu, an offshore wind farm owned byWind Power Ibaraki Co., Ltd.

Hitachi Group
Environmental Sustainability
Report 2010

Contributing toEnvironmental Conservation
through BusinessPrevention of Global Warming
http://www.hitachi.com/
environment/

CO2 Emissions from Main Power Generation Methods
Emissions from burning fuelEmissions from facilities and operations

975

800
600

519

400

111

88
Coal-fired

53
Combined
cycle LNG

29

Photovoltaic

0

887
408

22

Wind

200

Nuclear

CO2 emissions per kWh(g-CO2/kWh)
1,000

Sources: Central Research Institute of Electric Power Industry and others

8

IT Platforms
With the increase in IT equipment, energy use by data
centers has skyrocketed. We are tackling this issue in various ways: Our Harmonious Green Plan aims to reduce
CO2 emissions by 330,000 tonnes†1 over the five years
from fiscal 2008 by making IT equipment more energy
efficient. Furthermore, the CoolCenter50 Project seeks to
reduce data center power use by as much as 50 percent
from 2007 levels by 2012. As part of these initiative, wehave developed a modular data center that optimizes
the layout of air conditioners and IT equipment for bothcooling efficiency and space savings. Power use by air
conditioners that cool servers is cut by up to 67 percent†2
and CO2 emissions are reduced. After completing test
operations in fiscal 2009, we have started marketing thisnew data center solution to corporate customers.

Class 395 high-speed train operating in the UK

Railway Systems
Railways will continue to be seen as an environmentally
important means of transportation. As a total railway systems integrator, we operate in a wide range of railway
system businesses from rolling stocks and traction system to traffic management, signaling, and power supply,
as well as information services.
Railway companies in and outside Japan havepraised our hybrid traction system—combining a diesel
engine with storage batteries to improve fuel efficiency
and reduce harmful emissions—and our A-train, whichuses aluminum to reduce weight and save energy. In fiscal 2009, toward more global operations, a Hitachi highspeed train based on the A-train began running in theUK; while in China, among other developments, we aredelivering a train control system.

Modulardata center

CO2 Emissions from Various Forms of Transportation
Private car 168†1

Airplane 109
Bus 51
Railway19

g-CO2/passenger-km (FY 2007)†2

Source: Ministry of Land, Infrastructure, Transport and Tourism (Japan),
Reducing Global Warming in Transportation (in Japanese)

This calculation is based on the assumption that the annual number of IT appliances that
Hitachi will ship is equal to the actual figure for fiscal 2007 every year, staying unchanged overthe five-year period from fiscal 2008. This figure shows the difference in the amount of CO2
emissions from the total amount that would be emitted if this plan were not implemented.
Calculations are based on survey data in the Japan Electronics and Information Technology
Industries Association (JEITA), Survey Report on IT Trends (June 2009) (in Japanese)

Present State of the Environment
Scenarios for World Energy-Related CO2 Emissions

Curbing Global Warming
In tandem with the economic development of nations andregions around the world, CO2 emissions—a major cause of
global warming—have been increasing. According to theInternational Energy Agency (IEA), these emissions are onpace to reach 40.2 billion tonnes annually by 2030. Global
warming can cause drought, severe heat, floods and otherproblems. If it worsens, abnormal weather patterns maylead to rising disease and death rates. To avoid these consequences, technological innovation is needed to reduceenergy-related CO2 emissions in such fields as the power
generation and transportation systems that support everyday life.

Scenario assuming policies implemented to date
Scenario stabilized at 450 ppm (see page 5)(billions of
tonnes)4540.2 billions of tonnes (field and reduction amount)
40
Power generation:
Needed reduction: 9.3 billions of tonnes
13.8 billions of tonnes

35

Transportation: 1.6 billions of tonnes
Industry: 1.6 billions of tonnes
Other: 1.3 billions of tonnes

30
27.1
25
0

9

2005

26.4 billions of tonnes

2030

Hitachi Group
Environmental Sustainability
Report 2010

(FY)

Based on energy-related CO2 emissions
in the International Energy Agency’s
World Energy Outlook 2009

Contributing toEnvironmental Conservation
through BusinessPrevention of Global Warming
http://www.hitachi.com/
environment/

sHighlightssContributing to Environmental Conservation through Business

Conservation of Resources
Reinforcing recycling of rare metals and other mineral resources
as well as R&D for alternative materials

Rare Metals Recycling

Hitachi Group Products That Use Neodymium Magnets†1

Among rare metals, rare earths are widely used in hightech and energy-saving products—such as electric motors in hybrid cars and hard disk drives—due to theirability to generate strong magnetic power; they can also
be used at very high temperatures. Today, stable supplyof rare earths is becoming a problem: China products approximately 97 percent of these and demand continues
to grow. We manufacture products such as home appliances and medical equipment that use the rare earth
neodymium (Nd). In fiscal 2009, with assistance from
METI,†3 we began developing technology for separating and recovering rare earth magnets from end-of-life
products. Following feasibility tests, we hope to start fullrecycling operations by 2013.

Air conditioners* (compressor)

Washing machines (drum motor)

Refrigerators* (compressor)

Neodymium magnets extracted
from dismantled hard disk drives

Hard disk drives(voice coil motor, spindle motor)
Industrial motors (PM motor†4)

†1
†2
†3

†4

Rare earths: 17 elements including lanthanum and scandium. Rare earth magnets are magnetic alloys of rare earth elements such as neodymium and dysprosium.
Calculated using data from U.S. Geological Survey, Mineral Commodity Summaries 2010
Japan’s Ministry of Economy, Trade and Industry launched a project to promote recycling ofresources in fiscal 2009. The project’s goal is to find technology for recycling rare earth metals
from “urban mines,” such as high-performance magnets from motors.
Permanent magnet motor

Permanent magnet open MRI
scanner (gantry: ring where
magnetic field is generated)

Parts in ( ) use magnet materials* Not all models

Present State of the Environment

Risk of Resource Depletion
Reserves of metals, which are natural resources, are limited.
Given their increasing use due to global economic development, shortages are likely to get worse in the near future.
The inability to obtain stable supplies of resources will affect industry in many ways, including price hikes, making
resource recycling all the more important.

Mineable Years of Metal Resources(based on fiscal 2009 data)(mineable
years*)
80
70
60
50
40
30
20
10
0

70
50

56

34
20

Gold

Copper

Iron

NickelManganese

Based on data from U.S. Geological Survey, Mineral Commodity Summaries 2010
* Mineable years = reserves/annual production

Hitachi Group
Environmental Sustainability
Report 2010

Contributing toEnvironmental Conservation
through Business

Conservation of Resources
http://www.hitachi.com/
environment/

10

sHighlightssContributing to Environmental Conservation through Business

Preservation of Ecosystem
Helping preserve the ecosystem by cleaning air, water, and soil

Bunus sewage treatment plant in Malaysia

ClearBallast system being tested on an oil tanker

Water Environment Solutions

Ballast Water Purification System

Conserving the water environment is essential for protecting the ecosystems that can be affected by humanwater use and disposal. In addition, since many countries
face severe water shortages, providing water and sewage
facilities, as well as water treatment is an international
issue. As a comprehensive water environment solution
provider, we work on the wider availability of sewage
treatment systems—restoring water to its natural state—
as well as circulating systems for water regeneration. Examples include participating in large sewage treatment
plants in Malaysia, helping improve their water supply,and working on a pilot water circulation project in the
United Arab Emirates. Our water solutions extend to local
flood control and water treatment systems for removing
toxic substances.

Ballast water—seawater that keeps ships stable—contains plankton and other organisms. They are transported by ships and can harm the local ecosystem when
discharged in a port. For this problem, the International
Maritime Organization adopted an international convention on ballast water in 2004. (Conditions for putting
it into effect are unmet, as of June 2010). According to
the convention, ballast water treatment equipment
should be installed on all ocean-going vessels by 2017.
We developed technology in this area early on, and in
2009, Hitachi Plant Technologies’ non-sterilization system
ClearBallast became the first in Japan to win IMO approval. Only about ten companies in the world have received
approval. ClearBallast’s coagulation and magnetic separation are attracting wide attention.

Present State of the Environment

Threat of Ecosystem Destruction
Populations of freshwater animal species that live in lakes,
rivers, marshes and other inland waters are said to havedeclined by approximately 35 percent between 1970 and
2005. The causes include over-fishing, invasive non-native
species, and water pollution. Among these reasons, waterpollution by industry is especially serious as a direct cause ofdestruction of ecosystems. One of the “ecosystem services”
that nature provides is water purification, but its capacity
is limited. Effective treatment of wastewater is necessary tohelp preserve ecosystems.

Trends in Populations of Freshwater Animal Species*
Index
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0

1970

1980

1990

2000

2005

* An index showing changes in populations of more than 300 species living in inland waters,with the 1970 level as 1.0.
Source: World Wildlife Foundation (WWF) Living Planet Report 2008

11

Hitachi Group
Environmental Sustainability
Report 2010

Contributing toEnvironmental Conservation
through Business

Preservation of Ecosystem
http://www.hitachi.com/
environment/

Environmental Action Plan

Promoting Environmental Action;
Setting Targets for every Fiscal YearN Next-Generation
Products & Services
The four directions for our environmental activities are depicted in the
Sustainability Compass. The specificaction items and the targets for eachdirection are outlined in the Environmental Action Plan, for which the final
year is fiscal 2010. The achievementlevel of each year’s target is evaluated and continual improvements
are made. The Environmental Action
Plan is also optimized by adding action items and reviewing targets in
response to, for example, changes in
the global environment, requests fromstakeholders, or early target achievement. By implementing the Environmental Action Plan and promoting
monozukuri through which we reduce
the environmental burden of a product throughout its life cycle, we intend
to achieve emission neutral status byfiscal 2015.

The Concept of Emission Neutral

Sustainability Compass
Lays out directions
for environmental activities

E

W

Eco-Mind & Global
Environmental
Management

Worldwide
Environmental
Partnerships

Eco-Factories
S Super& Offices

Emission neutral means making the direct environmental load and the reduction of the social environmental load equal. Direct environmental load includes material production/processing, manufacturing,and transportation, while the reduction of the social environmental load is the amount reduced throughenergy- and resource-saving products compared with the base year of fiscal 2005.

Direct Environmental Load

CO2 emissions
from material
production/
processing

Material production/
processing

Hitachi Group
Environmental Sustainability
Report 2010

Reduced Social (Indirect) Load

CO2 emissions
from manufacturing
CO2 emissions
from transportation

Reduced CO2 emissions
during product use
through energy-saving products

Reduced CO2 emissionsin product take-backand recycling

Distribution

Use

Take-back/recycling

CO2 emissions
from waste recycling

Manufacturing

Environmental
Action Plan

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

12

N

Environmental Action Plan
W

E
S

Hitachi Group Fiscal 2009 Environmental Action Plan: Targets and Results
Item

Page(s)Action goal

Index

Achievement
level

Fiscal 2010
targetCertification acquisitionin five companies

sss

Integrated EMSs
certified

93%

sss

90%

86%

89%

sss

90%

48%

53%

sss

55%

98%

sss

100%

85%

sss

80% or more

Fiscal 2009 target

Fiscal 2009 results

Eco-Mind & Global Environmental Management
pp.
15–16

Set up an integrated
environmental manageIntegrated EMS certification
ment system in every
in-house company/
Group company

Nurtureenvironmental
literacy

p. 18

Boost percentage of
employees receiving
Hitachi Group-widetraining (environmental
e-learning)Green purchasing

p. 18

Purchase products suchas environmentally con- Green purchasing percentage
scious office products

Establish
environmental
management
systems (EMSs)

Promotion/expansion

Percentage of employees receiving training 85%

Next-Generation Products & Services
Percentage of sales

PromoteEco-Products

pp.
21–22

Expand Eco-ProductlineupICT systems, digital media,
98%
Percentage consumer products, etc.
of registered
Power systems, social/indusproducts
trial systems, high functional 80% or morematerials & components, etc.
Percentage of Super Eco-Products

22%

22%

sss

30%

Certification of Super Eco-Factories &Offices

24 production facilities (total)

32 production facilities (total)sss

30 production
facilities (total)

CO2 emission reduction rate(base: FY 1990, Japan)

12%

21%

sss

12%

Rate of reduction in CO2 emissions per unit
production (base: FY 2003, outside Japan)

4%

5%

sss

5%

Environmentally Conscious Factories & Offices
Promote Super
Eco-Factories &OfficesPrevent global
warming

Use resources
efficiently

Chemical
substance
managementp. 27

Build industry’s mostadvanced factories
and offices

pp.
28–29

Reduce CO2 emissions
from energy sources

p. 29

Reduce energy used intransportation

Rate of reduction in energy for shipping per
10%real unit output (base: FY 2006, Japan)

26%

sss

11%

pp.
30–31

Reduce waste

Rate of waste volume reduction(base: FY 2000)

24%

33% (total reduction)
24% (per unit production reduction)

sss

25%

pp.
30–31

Promote resource
recycling

Resource recycling rate(base: FY 2005, Japan)

8%

19%

sss

10%

p. 31

Use water effectively

Rate of reduction in water used (base: FY
2005, outside Japan)

8%

20%

sss

10%

Rate of reduction in VOC emissions into theatmosphere (base: FY 2000, Japan)

49%

68%

sss

50%

p. 32

Reduce chemical
substance emissions

Rate of reduction in VOC emissions into the8%atmosphere (base: FY 2005, outside Japan)

14%

sss

10%

Improve dissemination ofenvironmental action

Environmental communication
through media mix of TV commercials, newspaper advertisements,
advertorials, Internet, etc.

sss

Continue toimprovedissemination

Participation in Eco-Products Tokyo

sss

Continue toparticipate in
exhibitions

Worldwide Environmental Partnerships

Environmental
communication

pp.
35–38

Enhance environmental
activities through more
two-way communication

Plannedimplementation

Participate in eco-product exhibitions

sss Achieved
ss Partially achieved

13

Hitachi Group
Environmental Sustainability
Report 2010

Environmental
Action Plan

Hitachi Group Fiscal 2009 Environmental
Action Plan: Targets and Results
http://www.hitachi.com/environment/Eco-Mind & Global Environmental Management

Implementing environmental
programs consistently
Under a system for global corporate management,
we use environmental management systems
to meet the targets of our Environmental Action Plan,
while working hard to instill “Eco-Mind” in all our employees

Targets and FY 2009 Results

TargetResult1

Build EMSs and improve
the quality of activities

52

Instill “Eco-Mind” in employees
through environmental education93%

Hitachi Group
Environmental Sustainability
Report 2010

Eco-Mind & Global
Environmental
Management

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

14

companies were certified
for integrated EMSs

of employees completed
environmental e-learning courses

Further info

p.15

p.18

Eco-Mind & Global Environmental Management
E

Environmental Management Structure
Building a global network to put our environmental strategies to work

Environmental Management Framework

In fiscal 2009, we held regional environmental meetingsin Shanghai and Belgium. Participants discussed the latest environmental regulations and exchanged views onenvironmental issues. We will continue to use these regional networks to improve our global activities—with
the special character of each region in mind.

The Hitachi Group is made up of Hitachi, Ltd.’s in-housecompanies and Group companies. We are building a global
environmental management system to support environmental decision making and action at Hitachi, Ltd., 900
consolidated subsidiaries, and 157 equity-method affiliates.
The Hitachi, Ltd. Environmental Strategy Office is
responsible for developing Group-wide environmental
policies. It drafts basic management policies and actionplans that are deliberated on and approved by the Senior
Executive Committee for Environmental Policy, chairedby the president. The Environmental Strategy Officers
Meeting, made up of representatives from in-housecompanies and major Group companies, ensures thatenvironmental strategies are implemented throughout
the Group. We also have an Environmental Committee
and subcommittees of working level employees in eachpolicy area who develop specific targets and measures
for achieving them.
Outside Japan, we are building networks to promote
environmental action. Regional environmental committees promote understanding and disseminate Group policies, while seeking solutions to local environmental issues.

Building Environmental
Management Systems
The criteria for environmental management at eachbusiness site are determined by the environmental load.
Approximately 300 sites meet these criteria, and the 28
business units to which these sites belong—the R&D
Group, four in-house companies, and 23 Group companies—have together developed and implemented the
Hitachi Group Environmental Promotion Organization
Criteria for Environmental Management Level(major items)
Employees
Electric power consumption
Waste generated
Water used
Paper purchased≥ 500≥ 6,000 MWh/year≥ 500 tonnes/year≥ 600 m3/day≥ 50 tonnes/year

Environmental Management System (EMS)
Environmental
Strategy
Officers Meeting

Senior Executive
Committee forEnvironmental Policy

Environmental
Strategy Office

In-House Companies
Presidents
Environmental
strategy officers

Environmental
Committee
In-House Companies’
Integrated EMSs

Eco-Management
Committee

Major Group Companies
Presidents
Environmental
strategy officers

Eco-Products
Committee
Eco-Factory
Committee
Environmental Management System
under the Hitachi Group
Environmental Promotion Organization*

Group Companies’
Integrated EMS* Organization built around the environmental promotion departments of the Hitachi, Ltd. Research &Development Group, four in-house companies, and 23
Group companies

Factories and Offices
Division heads
Environmental
management officers
Group Companies
Presidents
Environmental
management officers

Factories and Offices
Division heads
Environmental
management officers

Regional Environmental Meeting

PresidentGroup Companies
Presidents
Environmental
management officers

900 consolidated subsidiaries and 157 equity-method affiliates

15

Hitachi Group
Environmental Sustainability
Report 2010

Eco-Mind & Global
Environmental
Management

Environmental Management Structure
http://www.hitachi.com/environment/

Environmental Management Structure

EMS to consistently promote the implementation of environmental policies.
In fiscal 2009, the Hitachi Group Environmental Promotion Organization EMS had its first audit for renewalof ISO 14001 certification. No corrective action was required, and renewal was granted.
Also, the in-house companies and Group companiesof the Hitachi Group Environmental Promotion Organization EMS are each working on their own EMSs to improve
environmental activities and to streamline management.
In fiscal 2009, one in-house and four Group companies
carried out EMS integration of their business sites.
At the same time, every business site meeting the criteria for environmental management continues to maintain
ISO 14001 certification. We also extended the EMS campaign to sites that do not meet the criteria. As of March
2010, 602 Hitachi Group business sites were certified.

information on outside complaints, honors received, andother items. By analyzing this information, we identify
environmental management issues and share instructive examples within the Group. We are expanding thissystem to keep pace with new laws and policies. For
example, we added a new function for registration to
the electronic manifest (see page 30) promoted by thegovernment to prevent inappropriate disposal of wastes.
Also, in fiscal 2009, we upgraded our system to collectand analyze energy-use data from all domestic sites in
response to Japan’s amended Energy Saving Law.†1

Managing Environmental Risk
In the Hitachi Group, we go the extra mile in environmental
management by considering the environmental burdenof all our business activities and setting voluntary management criteria that exceed regulations. At every businesssite, we monitor water quality and noise, for example, andwork to minimize environmental risk. We also share information on environmental regulations and violations toprevent recurrences and to strengthen management.
In fiscal 2009, four incidents exceeded statutory environmental standards and there were five noise complaints, and all were promptly resolved. We will continue
to audit and monitor data to prevent recurrences.
To prevent soil and groundwater contamination
caused by chemical leaks, we inspect underground tanks
ultrasonically and replace underground pipes, pits, andtanks with ones above ground. At the end of fiscal 2009,
approximately 90 percent of all sites where chemical
substances were used had completed soil and groundwater decontamination or were contamination free. At
the remaining sites, cleanups are taking place, and monitoring will continue.

Status of ISO 14001 Certifications (As of March 2010)
Japan

Outside Japan

Producton
Sites

Non-Production
Sites

Producton
Sites

Non-Production
Sites

Total

240

228

111

23

602

No. ofcertified sites

Europe
15
China
42

Japan
468

North America
18

Asia
59

Violations of Statutory Standards
Water quality

Air

Total

Japan

0

0

0

Outside Japan2

2

Monitoring Environmental Performance Data

For effective environmental management, we collectenvironmental performance data on business operations using the Environmental Load Evaluation System.
This system collects environmental load data from 300
Hitachi business sites worldwide on such items as energyuse, CO2 emissions, and waste generated, together with

Hitachi Group
Environmental Sustainability
Report 2010

Eco-Mind & Global
Environmental
Management

Environmental Management Structure
http://www.hitachi.com/environment/

4(Fiscal 2009)†1

16

The Act on the Rational Use of Energy
List of ISO 14001-certified sites

Eco-Mind & Global Environmental Management
E

Improving on Environmental Initiatives
Working hard to meet the targets of our Environmental Action Plan
through continuous improvement and education

Environmental Activity Evaluation System

our own evaluation system, GREEN 21. It divides environmental activities into eight categories and evaluatesachievements and progress toward Action Plan targets
by rating 55 items from one to five, then visualizing theresults on radar charts. For any category, a perfect scoreis 200 green points (GPs). Interim evaluations are madeduring the year to identify weaknesses and make improvements in categories with low scores. The annual
evaluations are also reflected in business performance
evaluation of Group and in-house companies. In fiscal
2009, the Group achieved a score of 1,194 GPs, surpassing
the target of 1,152. For fiscal 2010, the target is 1,280 GPs,or a Group average of four points or more on all 55 items.

Our environmental activities are based on the action
items and targets in our Environmental Action Plan. To
enhance the level and quality of these activities, we use
Green Point Average: Results and Targets

8. Worldwide
Environmental Partnerships
139 GPs

2. Eco-Mind
159 GPs

80
0

7. Eco-Factories:
Resource Recycling
153 GPs
6. Eco-Factories:
Reducing Global Warming
133 GPs

FY 2010: 1,280 GPs
FY 2009: 1,194 GPs
FY 2008: 1,108 GPs

1. Eco-Management
153 GPs
160

3. Eco-Products:
Manufacturing
149 GPs

5. Next-Generation
Product / Service Strategy
151 GPs

4. Eco-Products:
Green Procurement
157 GPs

GREEN 21 Awards

The GREEN 21 Award program was set up to encourage
environmental activities and disseminate best practices.
It honors the best environmentally conscious products
and technologies as well as activities that have yielded
outstanding results, based on the combined scores foroverall environmental activities (using GREEN 21) andoutstanding individual achievements. In fiscal 2009, a
grand prize winner, four division awards, and four honorable mentions were selected from 35 entries, including
nine from outside Japan.

Categories and Evaluation Items
1. Environmental management action plan, environmental accounting, risk management, andstatutory compliance
2. Environmental training and education for employees (general education, specialized education,
auditor training)
3. Ecodesign, Eco-Products, management of chemical substances in products
4. Green procurement, green purchasing
5. Next-generation Eco-Product strategy, sustainable business
6. Energy conservation at business sites, environmentally responsible transportation
7. Waste reduction, chemical substance management
8. Stakeholder-oriented information disclosure, communications, global citizenship activities

Fiscal 2009 Green 21 Awards
Category

RecipientAchievement

Grand Prize

Hitachi Works, Power Systems Co. (Hitachi, Ltd.)

Contributing to CO2 emission reduction by joint development and marketing (withKansai Electric Co.) of adjustable-speed pumped storage system enabling regulation of
input power according to demand; winner of 2009 Minister of the Environment Award
for Activities to Prevent Global Warming, technology and product development division

Eco-Mind & Global
Environmental Management

Hitachi Global Storage Technologies (Thailand) Ltd.

Forming an energy conservation team and reducing electricity and fuel consumption;
winner of Prime Minister Industry Award

Next-Generation Products & Services

Alaxala Networks Corp.

Developing dynamic energy-saving system for networks (see page 23)

Worldwide Environmental Partnerships

Hitachi Global Storage Technologies Philippines Corp.

Activities to raise environmental awareness and preserve the environment

Super Eco-Factories & Offices

Kasado Works, Industrial & Social Infrastructure Systems Co.
(Hitachi, Ltd.)

Making production process more energy efficient, using recycled water, promoting
waste recycling (see page 27)

Toyama Works, Hitachi Kokusai Electric Inc.

Improving quality in management of chemical substances in products; ongoing
afforestation activities

Kansai Area Operation, Hitachi, Ltd.

Developing and marketing environmental information management system inpartnership with customers

Hitachi Software Engineering Co., Ltd.

Activities to promote community relations, biodiversity

Tohoku Rubber Co., Ltd.

Boosting efficiency of energy use in production processes (see page 27)

DivisionAwardsHonorable Mentions17

Hitachi Group
Environmental Sustainability
Report 2010

Eco-Mind & Global
Environmental
Management

Improving on Environmental Initiatives
http://www.hitachi.com/environment/Improving on Environmental Initiatives

Participating in the Developmentof International Standards

Specialized training includes advanced education
for staff directly engaged in product development, factory management, and other areas. In addition to HitachiGroup Training, individual companies and units provide
special education and training tailored to their own business area.

We work with the following international standards organizations for environmental issues and environmentallyconscious product technology: the International Organization for Standardization (ISO), Ecma International, the International Telecommunications Union(ITU-T), the World
Business Council for Sustainable Development(WBCSD),
and the International Electrochemical Commission (IEC).
This helps us discover global business opportunities andensure our products’ competitiveness. On the IEC’s technical committee 111, we served as international project
leader for IEC 62430—generic procedural standards forenvironmentally conscious design—published in fiscal
2008. In fiscal 2009, Ecma International began working
on standards for collaborative control of IT equipment
and facilities for energy-efficient data centers, a projectthat we proposed.

Hitachi Group Education and Training System
General employees

Managers

Executives

Hitachi Group Training
General education
Specialized education

Environmental
management
education

Eco-Mind education(online e-learning)
Eco-Productdevelopment training
Education for Eco-Factories
Auditor training

Senior auditor
training

Brush-up training for auditors

Company or Organization Training
General education

Eco-Mind education
for company or organization

Specialized education

Training for employees
working in certain operations

Promoting Green Purchasing
We are improving our green purchasing rate—the ratio ofenvironmentally conscious products purchased to total
office supplies—by using a Group-wide online purchasing system, the e-sourcingMall. This system has a rangeof recyclable products and goods made with recycledmaterials. It promotes purchasing by clearly labeling environmentally conscious products. For fiscal 2009, ourgreen purchasing rate reached 89 percent. In fiscal 2010,
we plan to both lower costs and increase purchasing ofenvironmentally conscious products through Groupwide bulk purchasing of office supplies, with the goal ofreaching 90 percent green purchasing.

An IEC meeting in the Netherlands

Environmental Education
For better employee understanding and awareness ofthe environment, we developed Hitachi Group Training,a Group-wide environmental education program. It is divided into general education—covering subjects such as
Hitachi’s Environmental Vision and environmental strategies—and specialized expert training.
For all employees, a general Internet-based e-learning course is offered in three languages: Japanese, English, and Chinese. By connecting our global production
sites to the Internet, 163,894 Group employees took thecourse in fiscal 2009, a completion rate of 93 percent.

Hitachi Group
Environmental Sustainability
Report 2010

Eco-Mind & Global
Environmental
Management

Improving on Environmental Initiatives
http://www.hitachi.com/environment/

Required and actual numbers of legally certified staff

18

Eco-Mind & Global Environmental Management
E

Environmental Accounting

Investment Ratio by Countermeasure

We have adopted, and are making public, environmental accounting conforming to Japan’s Environmental Accounting Guidelines. The results help us to raise the efficiency of environmental investments and activities.

Other
15%
Pollution
Prevention
Waste Reduction

15%

67%

Prevention of
Global Warming

3%

Environmental Protection Costs
Costs (billions of yen)

Item
Expenses

FY 2007

FY 2008

Overview

FY 2009

Business area

39.72

33.31

Upstream/downstream

2.79

1.97

28.2 Costs of maintenance of equipment with low environmental burden, depreciation, etc.
1.70 Green procurement expenses, recovery and recycling of products and packaging, recycling expenses

Management activities

11.30

11.20

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

Research and development

46.63

50.25

52.81 R&D for the reduction of environmental burden caused by products and production processes, productdesign expenses

Social activity

0.48

0.35

0.25 Planting, beautification, and other environmental improvement expenses

Environmental damage

0.80

0.99

0.68 Environmental mitigation costs, contributions, and assessments

Total

101.72

98.06

92.56

Total investment

15.38

10.17

7.95 Investment in energy-saving equipment and equipment that directly reduces environmental load

Equipment depreciation costs are calculated using the straight-line method over five years.

Environmental Protection Effects
Economic Effects*1
Item

Costs (billions of yen)
FY 2007

FY 2008

Major FY 2009 Activities

FY 2009

Net income effects

14.50

10.90

8.30 Finding value from waste by sorting and recycling

Reduced expenses effects

22.02

18.24

15.00 Reducing resource costs through resource and energy conservation; reducing waste disposal costs through waste reduction

Total

36.52

29.14

23.30

Physical Effects
Item

Amount Reduced (parentheses: equivalent
number of households) *2 *3

Major FY 2009 Activities

FY 2007

FY 2008

FY 2009

Reduction in the amountof energy used during
production

161 million
kWh(34,000)

158 million
kWh(33,000)

191 million Reviewing clean room operating conditions; consolidating worksites and facilities (relocation of production bases); limiting the
kWh number of refrigerator units and switching to inverter technology; partnering with electric supply companies to save energy(40,000)

Reduction in the amountof final waste disposal

7,361 t(53,000)

6,752 t(48,000)

5,955 t Switching to PRF (solid waste fuel); recycling grinding sludge and slag; reducing effluent volumes; reducing packaging(43,000) materials for goods received

Benefits on equipment investment are calculated using the straight-line method over five years, as with costs.
*1 Economic effects include the following items:
a. Net income effects: benefits for which there is real income, including income from the sale of resalable material and income from environmental technology patents
b. Reduced expenses effects: reduction in electricity and waste treatment expenses arising from environmental load reduction activities*2 Calculation for household-number equivalent for energy-use reduction: decrease in energy used during production (or during product use) ÷ total annual power consumption per household. Source: The
Energy Conservation Center, Japan, Survey on Standby Power Consumption (FY 2008). (only in Japanese)*3 Calculation for household-number equivalent for final-waste disposal reduction: decrease in final waste generated during production ÷ (total annual volume of non-industrial final waste ÷ number ofhouseholds). Sources: Ministry of the Environment, Annual Report on the Environment in Japan 2009; Statistics Bureau, 2005 Population Census.

Efficiency of Environmental Load Reduction*4
Item
Reduction in energy used during production (million kWh/billion yen)
Reduction in amount of waste for final disposal (t/billion yen)

FY 2007

FY 2008

FY 2009

28

33

2,000

1,940

19

42 *4 This is an indicator of the efficiency of environmental load reduction,
calculated as the amount of environmental load reduction divided by
expenses needed for the reduction.

2,290

Hitachi Group
Environmental Sustainability
Report 2010

Eco-Mind & Global
Environmental
Management

Improving on Environmental Initiatives
http://www.hitachi.com/environment/

Next-Generation Products & Services

Providing productswith a reduced environmental burden
We are committed to preventing global warming and recycling resources, andhelping to protect the global environment through our products and services.
To reduce the environmental burden across the product life cycle,
we are developing Eco-Products that meet rigorous requirements.

Targets and FY 2009 Results

TargetResult1

To help reduce annual CO2 emissions by 100 million tonnes by2025 through Hitachi products andservices

Contributing to

2

To develop and promote
environmentally conscious
products and services

Eco-Products achieved a

Hitachi Group
Environmental Sustainability
Report 2010

Next-Generation
Products & Services

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

11.36

20

Further info

million fewer tonnesof emissions

53%

sales ratio

p.5

p.22

N

Next-Generation Products & Services

Developing Environmentally
Conscious Products
We develop and design products that minimize the environmental burden

Environmentally Conscious Design

23–24) of these products must be at least ten times morethan reference products (factor 10), or they must be leaders in their industry for their energy efficiency standard
achievement rate†2 or other similar factors, or must be
highly rated outside the company. As of March 2010, 539
models, or 22 percent of Eco-Products sales, had beenregistered as Super Eco-Products.

In 1999, we introduced a Design for Environment (DfE) assessment system that sets specific environmentally conscious criteria for the design and development of products
and services—at all stages, from material procurement toproduction, distribution, use, and disposal. This system
helps reduce the environmental burden throughout thelife cycle of products and services. We designate those
products that meet DfE requirements as Eco-Products.
Where DfE assessment initially focused on consumer
electronics, industrial machinery and other hardware,
we have now widened the scope of DfE by developing
methods that apply to software and IT-based services. In
fiscal 2009, we developed assessment methods for plant
products such as wind power generation systems, aswell as housing. This assessment has also been tailoredto comply with the European Eco-design Directive†1 andother environmental product regulations. We aim to
make all Group products Eco-Products by fiscal 2025.

Hitachi’s Eco-Product System

Super Eco-Products• Either a global warming prevention factor
or a resource factor of 10 or more
• Industry leading level• Highly regarded outside Hitachi

Products that meet DfE
assessment criteria
Eco-Products

Products

Development of Super Eco-Products

Disclosure of Environmental Information

Eco-Products that meet even more demanding requirements are designated Super Eco-Products. Aiming tominimize the environmental burden, the global warming
prevention efficiency or resource efficiency (see pages

In 1999, Hitachi introduced an environmental information labeling system that uses symbols and data sheets
to provide environmental information on environmentally conscious products. The mark in page 22 indicates

How a DfE Assessment Is Performed
During product design, the environmental load is assessed quantitatively for each product life cycle stage using the eight
DfE assessment criteria. If a product scores at least equal to or more than level 2 (the reference level before the latest major
model change) in all eight criteria and its average over all the criteria is level 3 or more, it is designated an Eco-Product.

DfE assessment launched

Assessment

Eco-Product designation
Qualifying products

Non-qualifying products reviewed

Eight assessment criteria (example)
Product Life Cycle

1. Resource reduction
Resource conservation

Material
production

Manufacturing

Distribution

Use

Reuse or recycle

Collection
Disposalanddisassembly

8. Packaging
materials (reduction, etc.)
7. Information
provision
6. Energy
efficiency

21

2. Productlongevity
3. Resource
recycling
4. Ease of
decomposition
5. Environmental and processing
protection

Hitachi Group
Environmental Sustainability
Report 2010

The environmental burden is quantitatively
assessed at each product life cycle stage.
DfE assessment criteria (examples):
1. Size and weight reduction, resource reduction
2. Durability, reliability
3. Use of materials that can be reused and recycled
4. Ease of disassembly and material separation
5. Environmentally conscious parts and units
6. Energy efficiency in production, distribution and use
7. Provision of suitable environmental information
8. Reduced packaging and recycling

Next-Generation
Products & Services

Developing Environmentally
Conscious Products
http://www.hitachi.com/environment/

Developing Environmentally Conscious Products

Goal & Performancethat a DfE assessment has found the product to be an
Eco-Product, letting stakeholders know that the product’s environmental burden has been highly improved.
We also use our Web site to disclose environmental information, such as data sheets for each environmentallyconscious product and case studies of products that
helped improve environmental efficiency.

Eco-Product Increase

100

80

Goal
%*1/at least%*2 in fiscal 2010
Performance In fiscal 2009, the Eco-Product registration rate was 98
percent for product categories of information and telecommunications systems, and consumer products; 85 percent for product categories of power systems, high functional materials and components
and others. Both categories cleared their goals for the fiscal year (98percent and at least 80 percent, respectively).

(%)

Eco-Product registration rate*1
Eco-Product registration rate*2
No. of registered models

100

97
84

98
86

No. of models

98

(100)

85

(at least 80%)
10,00080

Hitachi’s environmental mark

8,387
60

Management of
the Whole Development Process

40

†2

0

Next-Generation
Products & Services

Developing Environmentally
Conscious Products
http://www.hitachi.com/environment/

6,000
4,000

2007

2008

2009

2010
(target)(FY)

Registration rate is the ratio of Eco-Product sales to sales of all
products for which ecodesign is applicable.
*1 Product categories: Information and telecommunications
systems, digital media and consumer products*2 Product categories: Power systems, social infrastructure andindustrial systems, high functional materials and components
and others

Increase in Eco-Product Sales

50 55

Goal
%
% in fiscal 2010
Performance In fiscal 2009, the sales ratio rose to 53 percent, clearing the fiscal 2009 goal of 48 percent. As it also topped the fiscal 2010
goal of 50 percent, the fiscal 2010 goal was raised to 55 percent.

(%)
60
53
50

40

Eco-design Directive: A framework directive on the ecodesign of energy-related products(EU Directive)
Energy efficiency standard achievement rate: Based on the Act on the Rational Use of Energy (also known as the energy saving law), this value indicates the rate of achievement forenergy efficiency targets of certain home appliances. The target values are defined using themost energy efficient products available at the time.
Environmental Efficiency of Hitachi Products based on Factor X

Hitachi Group
Environmental Sustainability
Report 2010

5,741

20

We drew up the Hitachi Group Ecodesign Management
Guidelines to establish environmentally conscious design procedures for the development of both products
and services. Based on the IEC 62430 international standard on generic procedures for environmentally conscious design, the guidelines require divisions, such as
business planning, design, procurement, manufacturing,and quality control, to be environmentally conscious andkeep records on processes and results. Divisions thenincorporate these guidelines into their environmental
management and quality control management systems
based on the ISO 14001 and ISO 9001 international standards, pursuing product and service development in a
PDCA (plan-do-check-act) cycle. First, legal and stakeholder requirements are analyzed and specifications created for products with a minimal environmental burden(plan). This is followed by environmentally conscious
development and design using Hitachi’s DfE assessment
system (do), and then review and ongoing improvement(check and act).
†1

8,000

6,954

(55)
(50)

47
38

30
0

22

2007

2008

2009

2010
(target)(FY)N

Next-Generation Products & Services

Prevention of Global Warming
Looking for greater energy conservation and energy efficiency in our products

Making Products More Energy Efficientin product value by function and life span, using theamount of greenhouse gases emitted over the productlife cycle to calculate the reduced environmental load.
By raising the efficiency of global warming prevention, we
increase a product’s value and reduce greenhouse gas
emissions. In addition, the factor of global warming prevention indicates the amount of improvement in efficiencyof global warming prevention compared with a reference
product. Products with a factor of ten or more, or at least
ten times greater efficiency than reference products (fiscal 2000 products), are designated Super Eco-Products.

The energy used to power our products is an indirectcause of greenhouse gas emissions. We are helping toprevent global warming by cutting the amount of energy
used during product manufacturing and distribution. As
well, we are saving indirect energy by making our products more efficient and by reducing their power consumption by, for example, adding a power-saving mode.
We use DfE assessments (see page 21) for product andservice development and design. In this way, we make
improvements at all stages of the product life cycle, including manufacturing, shipping, and use.

Global Warming Prevention Factor Calculation

Improving the Efficiency of
Global Warming Prevention

Definition of efficiency of global warming prevention
Product function
Product life span
Efficiency of Global
Volumeofgreenhousegas emissions
Warming Prevention
throughout the product life span

To measure how effectively energy is used during a product’s life cycle, we introduced efficiency of global warming
prevention. This measurement is based on the concept ofenvironmental efficiency that balances the value of products contributing to the quality of life and the reductionof their environmental load. We gauge the improvement

Definition of factor of global warming prevention
Efficiency of global warming
prevention of evaluated product
Factor of Global
Warming Prevention
Efficiency of global warming
prevention of reference product

Energy Savings in Telecommunication Equipment

Hybrid Drive Systems: Energy Savings for Train Engines

1 Product: Dynamic Power Saving System (AX6700S series,
AX6600S series and AX1240S series LAN switches*1)

1 Product: Hybrid Active Shift Transmission (HAST drive) for
train engines

ALAXALA Networks Corporation

Hitachi Nico Transmission Co., Ltd.
(jointly developed with Hokkaido Railway Company)

1 Environmentally conscious feature: A power-saving function
dynamically regulates energy used by networks

1 Environmentally conscious feature: Regenerative braking captures the energy from braking and stores it to be later fed backthrough the transmission to assist the engine, saving energy andboosting performance
1 Environmental load reduction: Recovered energy is used when
the train accelerates, cutting fuel consumption

p Controls performance and cuts the amount of power used
p Cuts power to areas not in use without affecting communications

1 Environmental load reduction: Power consumption is deliberately reduced when network traffic is low (at night, on holidays, etc.)
1 Third-party evaluation: Japan’s Ministry of Economy, Trade andIndustry (METI) Commerce and Information Policy Bureau Director-General’s Awards at Green IT Award 2009*2

p The engine stops running when the train stops, and the train uses only

the electric motor to start moving again, reducing noise

1 Third-party evaluation: Environmental Award at 36th Environment Prize*1*1 A communication device that exchanges multiple
data simultaneously based on destination information within local area networks*2 Awarded to IT products and services with outstanding energy savings (organized by the Green IT Promotion Council, backed by METI)*1 Awarded for outstanding achievements in R&D, studies, and other research
related to sustainable development that reduces the environmental load(organized by the Hitachi Environment Foundation and Nikkan Kogyo
Shimbun, Ltd., and backed by the Ministry of the Environment)

23

Hitachi Group
Environmental Sustainability
Report 2010

Next-Generation
Products & Services

Prevention of Global Warming
http://www.hitachi.com/environment/

Conservation of Resources
We are recycling resources and making products more resource efficient

Recycling Resources and Making Products
More Resource Efficientof their environmental load. This measure also guides us
to improve product value by function and life span; wegauge the amount of resources used over the productlife cycle†1 to calculate the reduced environmental load.
By working to boost resource efficiency, we increase product value while promoting resource conservation. In addition, a resource factor is used to indicate the amount of
improvement in resource efficiency compared with a reference product. Products with a factor of ten or more, or atleast 10 times greater efficiency than reference products(fiscal 2000 products), are designated Super Eco-Products.

Most natural resources not consumed as energy or food areused as materials for products and services, and later discarded.
To conserve resources, we reduce the amount usedduring production by making smaller and lighter products (resource reduction) and reduce waste by lengthening product life cycles (longevity). At the same time, we
use recycled resources or parts and materials that can bereused or recycled (recyclability), and make products sothat materials and parts can be easily reused or recycled(ease of disassembly and disposal). We use DfE assessments (see page 21) to monitor and improve conservation during all stages of the product life cycle, including
manufacturing, shipping, and use.

Resource Factor Calculation
Definition of resource efficiency
Product function
Resource Efficiency

Product life span

∑ (life cycle resource use × value coefficient of each resource)

Definition of resource factor

Boosting Resource Efficiency
We measure resource efficiency to evaluate how effectively resources are being used during the product life
cycle. This measurement is based on the concept of environmental efficiency that balances the value of products contributing to the quality of life and the reduction

Resource Factor†1

Resource efficiency of evaluated productResouce efficiency of reference productAmount of resource use over life cycle: Newly used resource amount + discarded resource amount
Product and package recycling

Reducing the Environmental Load of Small Batteries
1 Product: Small batteries (alkaline and lithium-ion batteries, etc.)
Hitachi Maxell, Ltd.

1 Environmentally conscious features: Developing innovativesmall battery technologies opens the way for products with alower environmental loadp Silver oxide batteries

A battery with no mercury or lead that is made using anti-corrosion technology based on a corrosion-resistant zinc alloy and a new electrolyte solution
p Alkaline batteries
Expiry date is extended—from two to five years—by a proprietary additive and conductive agent
An anti-leak design*1 boosts AA and AAA battery reliability
p Lithium-ion batteries
A proprietary electrode technology and new materials cut size by around33 percent (compared with similar batteries in 2000)
A new electrode uses less lithium and cobalt*1 Overdischarge electrolyte leak-proof design using patented technology*2 Awarded for the development of products, services, and technologies that
contribute to a sustainable material-cycle society, environmental protection, and business (organized by Fujisankei Communications Group, andbacked by METI; the Ministry of the Environment; the Ministry of Education,
Culture, Sports, Science and Technology; and the Ministry of Land, Infrastructure, Transport and Tourism)

1 Environmental load reduction: Reducing a battery’s size andextending its life cuts down on resources used and reduces waste
1 Third-party evaluation: Minister of
Economy, Trade and Industry Award at
the 19th Global Environment Awards*2

Hitachi Group
Environmental Sustainability
Report 2010

Next-Generation
Products & Services

Conservation of Resources
http://www.hitachi.com/environment/24

N

Next-Generation Products & Services

Preservation of Ecosystem
We are determined to control and reduce the amount ofharmful chemical substances contained in products

Controlling Chemical Substances
Contained in Products

In July 2009, we linked this management system tothe cross-industry JAMP†3 information exchange platform
via Hitachi’s enterprise cloud service TWX-21.†4 The directconnection between customer and supplier databases
has opened the way for fast, efficient information gathering and communication across the entire supply chain.
At the end of March 2010, chemical substance information for 740,000 parts and products was registered in our
integrated management system.

As one corporate initiative to protect the ecosystem andmaintain biodiversity, we need to both consider the impact of manmade chemicals on biodiversity and manage
the risks.
To control the chemical substances contained in
products, we created Regulations for Environmental
CSR-Compliant Monozukuri in 2005. This helps us to manage chemical substances—across the product life cyclefrom development and design to procurement, production, use, and disposal. To voluntarily control chemical
substances, we defined 13 prohibited substances (Level
1) and 12 controlled substances (Level 2) and createdguidelines for their control and handling.
To manage the risks, we comply with REACH,†1 achemical substance regulation in Europe, and we revised our regulations and product information gathering
procedures in 2008. In fiscal 2009, we added potential
REACH SVHC†2 to our voluntarily controlled chemical
substances, strengthening our management structure.
We identified chemical substances used in the HitachiGroup, from raw materials to end products, that should
be controlled, and created a mechanism to collect, examine, and communicate information across the supply
chain from procurement to production, shipping, andsales, in and outside Japan.

Registration database
Managing the amountof designated chemical
substances containedin a product by material
and part

Collection database
Managing the total
amount of designatedchemical substances byproduct and business

TWX-21

Disclosing environmental information Customers/society

Integrated Management System
for Chemical Substances Contained in Products

Communicate

Reduction of Risk management
Design forGreenenvironmental (individual products
Environment procurement
burdentraceability)(DfE)

Survey/register

Environmental information

Suppliers

Integrated Management System
for Chemical Substances Contained in Products

Survey/register, communicate

JAMP information exchange platform (JAMP Global Portal)

Materials
manufacturers

Parts
manufacturers

Final productmanufacturers

Linking our integrated management system with the JAMP Global Portal enables amore efficient exchange of chemical substance information over the supply chain

Covering the Entire Supply Chain

Working closely with suppliers and customers, we havebeen using and improving the Integrated Management
System for Chemical Substances Contained in Products,
created in 2005, as a way to gather and send out information about chemical substances across the supply chain.

†1
†2
†3
†4

REACH regulation: Registration, Evaluation, Authorisation and Restriction of Chemicals (EU)
Potential REACH SVHC: More than 2,000 substances that are persistent and bio-accumulativeor that have toxic or endocrine-disrupting properties
JAMP: Joint Article Management Promotion-consortium
TWX-21: Cloud-based business service providing an intercompany e-marketplace

Hitachi Group’s Voluntarily Controlled Chemical SubstancesClassification

Application

Substance (Group) Names

Level 1
Prohibited
substances

Chemical substances that the Hitachi Group prohibits from being included
in procured products (chemical substances banned or restricted for use inproducts (including packing materials) by domestic or foreign regulations
and potentially used for procured products for the Hitachi Group)

Cadmium and its compounds, hexavalent chromium compounds, lead and its compounds, mercury and its
compounds, bis (tributyltin) oxide (TBTO), polybrominated biphenyls (PBB), polybrominated diphenyl ethers(PBDE), polychlorinated biphenyls (PCB), polychlorinated naphthalene (with 3 or more chlorines), short-chain
chlorinated paraffin, asbestos, azo dyes/pigments, and ozone layer depleting substances

Level 2Controlled
substances

Substances that are not restricted for inclusion in procured products but
for which monitoring and control are required by domestic or foreign
regulations, or for which special consideration for recycling or appropriate
disposal is required

Antimony and its compounds, arsenic and its compounds, beryllium and its compounds, bismuth and its
compounds, nickel and its compounds (excl. alloys), selenium and its compounds, brominated flame retardants,
polyvinyl chloride (PVC), phthalate esters, tributyltins (TBT) and triphenyltins (TPT), ozone layer depleting
substances (HCFC), radioactive materials, and potential REACH SVHC

25

Hitachi Group
Environmental Sustainability
Report 2010

Next-Generation
Products & Services

Preservation of Ecosystem
http://www.hitachi.com/environment/

Super Eco-Factories & Offices

We are reducing the environmental
burden created by our business activities
We are working hard to reduce the burden on the global environment
created by our own business activities.
We are rigorously cutting CO2 emissions to help prevent global warming,
reducing the amount of waste generated, using water resources more effectively,
and sharply decreasing emissions from chemical substances.
Targets and FY 2009 Results

Target1

Reduce CO2 emissions

2

Reduce waste volume

3

Reduce chemical
substance emissions

ResultReduced21% 5%
in Japanand30%
Reduced

68

Further info

outside Japan*1

reduction*2

14%

Japan
%in and

p.28

p.30

outside Japan*3

p.32*1 Total emission reduction rate for Japan (from fiscal 1990), reduction rate per unit of production for outside Japan (from fiscal 2003)*2 Total reduction rate obtained from the sum of both groups: total-waste reduction group (33% cut from fiscal 2000) and waste-per-unit-production reduction group (24%cut from fiscal 2000)*3 Reduction rate of total VOC emissions for Japan (from fiscal 2000), reduction rate of VOC emission ratio (emissions/total volume of VOCs handled) for outside Japan (fromfiscal 2005)

Hitachi Group
Environmental Sustainability
Report 2010

Super Eco-Factories &Offices

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

26Super Eco-Factories & Offices

Super Eco-Factories & Offices

S

We promote the creation of pioneering facilities that reduce the environmental burden

Promoting Super Eco-Factories & Offices

Information on initiatives and environmental technologies at Super Eco-Factories & Offices are sharedwithin the Group to encourage environmental activities.

To reduce the environmental burden of business activities, a Super Eco-Factory & Office certification is given to
facilities that show a high level of environmental consciousness and take pioneering steps in this area. We
certify those facilities as Eco-Factories & Offices that have
met their targets for the fiscal year under our GREEN 21
system for comprehensively evaluating environmental
action (see page 17). Facilities that have achieved anindustry-leading environmental load reduction basedon criteria such as energy efficiency, improvements inresource recycling, and chemical substance emission reduction are designated Super Eco-Factories & Offices. In
fiscal 2009, seven more facilities were named Super EcoFactories & Offices, bringing the total to 32.

Super Eco-Factory & Office Certification Criteria

Super Eco-Factories& Offices
Facilities that have met
their targets for the fiscal
year under the GREEN 21
evaluation system

Eco-Factories& Offices

Certified as achieving industry-leading environmental load reduction
1. Energy efficiency
2. Improvements in resource recycling
3. VOC emissions reduction
4. Water recycling
5. Renewable energy use
6. Other (special commendation or
use of original technologies to meettargets)

Offices and Factories

Examples of Super Eco-Factories

Energy conservation and resource recyclingin train car manufacturing and shipping

Kasado Works, Industrial & Social Infrastructure Systems Company,
Hitachi, Ltd.
Kasado Works in Kudamatsu City, Yamaguchi Prefecture, develops andmanufactures train and bullet train bodies for Japanese and internationalcustomers. By adopting friction stir welding technology for assembling
train cars, this plant has cut the amount of power used for welding by morethan 40 percent. The introduction of a high-speed cutting technology led
to less oil-based paint being used, as well as reduced VOC emissions. In
addition, all the water used during train car waterproof testing—about 120
tonnes a month—is recycled. Since fiscal 2004, all the plant’s waste is being
recycled in some way.

Main Works, Tohoku Rubber Co., Ltd.
A manufacturer of escalator handrails, rubber sheets and other synthetic
rubber products in Sendai City, Miyagi Prefecture, Japan, Tohoku Rubber’s
Main Works has been conserving energy by, for example, installing solar
power generation equipment and introducing ice thermal storage for air
conditioning. In particular, boilers using emulsion fuel—heavy oil, water,and emulsifiers combined—to boost fuel efficiency, have cut the plant’s
heavy oil consumption by 80 kiloliters per year from fiscal 2005. The plant’s
final waste disposal rate has also been trimmed to 0.7 percent throughpractices such as the thermal recycling of rubber waste.

Designated an Environmentally Friendly Enterpriseby Tianjin City, China in 2006

Solar power (maximum output 10 kW) is used at the plant

Hitachi Building Equipment Manufacturing (Tianjin) Co., Ltd.
Hitachi Building Equipment Manufacturing (Tianjin) makes elevators in
Tianjin City, China. In 2006, the Baodi District Environmental Protection
Bureau in Tianjin City named the company an Environmentally Friendly Enterprise, a designation given to model companies that achieve a balance
between the environment and the economy. The company has reduced
VOC emissions by using water-based paint for large parts and has upgraded the painting process. They have also switched from liquefied petroleum
gas to natural gas, improving plant energy use per unit of production by 9
percent in fiscal 2009.

27

Hitachi Group
Environmental Sustainability
Report 2010

Super Eco-Factories &Offices

Super Eco-Factories & Offices
http://www.hitachi.com/environment/

Prevention of Global Warming
We are working to curb greenhouse gas emissions in plants and offices and in transportation

Reducing Greenhouse Gas Emissions

Fuel Switching Initiative

Our sustained investment promotes energy conservation, and we employ highly effective CO2 emission reduction measures in Group operations worldwide. Forenergy conservation diagnoses, Group engineers withadvanced, broad knowledge of equipment (air conditioning and boilers, for example) diagnose energy use andpropose improvements. We are also cutting greenhousegas emissions other than CO2 by switching to gases withlow global warming coefficients and installing scrubbers.
And we participated in a government program—Experimental Introduction of an Integrated Domestic Market
for Emissions Trading—meeting fiscal 2008 targets andhelping to identify issues.

We have been switching to natural gas (town gas, LNG)
for materials processing, where heavy fuel oil was used.
This will cut CO2 emissions by around 30 percent by fiscal
2012, and we plan to reduce heavy oil use to below 10
percent (from fiscal 2005).
Trends in Fuel Use Ratios
gas Liquefied petroKerosene Town
LNG*
leum gas (LPG)

Heavy oil

17%

49%

FY 200526%

FY 2009
FY 2012 (planned)

9%

48%

12%

22%
17%

74%

11%

11%

4%
* Liquefied Natural Gas

Trend in Energy Conservation Investment in JapanFY 2007

FY 2008
6.4

FY 2009
7.7

5.2

Reducing the Energy Usedin Offices and Other Business Operations(billions of yen)

We have business operations, such as design offices, data
centers, business offices, and hospitals, that together account for around 13 percent of our total CO2 emissions.
We are promoting rational energy use—to comply withJapan’s amended Act on the Rational Use of Energy, in
effect in fiscal 2009—by developing common management standards for the 10 operation types subject toregulation. A newly built database system also collects
data on energy use for each type. These steps enable us
to gauge energy use in each operation type, to analyze
inspection results, and to make improvements.

Renewable Energy

We are introducing wind and solar power, and otherrenewable energy sources. In fiscal 2009, the Narashino
Division of Hitachi Industrial Equipment Systems installed a 100-kW solar power generator. Now, Group solar power has risen
to 1,156 MWh and wind power to 81.7
MWh. We also buy Certification ofGreen Power for 1,000 MWh of naturalenergy every year from Japan Natural
Energy Company, using this power forPower symbol
general shareholders meetings, fairs, Greenon Certification ofGreen Powerand some offices.

Energy Management System

Management standards• Equipment inspection
standards• Inspection records

Introducing Energy Efficient Systems

Since we build transformers, air compressors, lighting,and other plant equipment, we are making them energy
efficient and introducing them into our plants. We also
use our environmental businesses to cut CO2 emissions,collaborating with our energy service company (ESCO)
division, a provider of comprehensive energy conservation services, to promote co-generation systems.†1

Hitachi Group
Environmental Sustainability
Report 2010

Super Eco-Factories &OfficesPrevention of Global Warming
http://www.hitachi.com/environment/

Plan
Create an energy
conservation plan

28

Do
Inspect, maintain andrepair facilities
Adjust and manage
devices

Visualization(Evaluation)

Check & Act
Record inspection
results
Measure energy use

Super Eco-Factories & Offices

S

Goals & Results

Reducing CO2 Emissions
from Transportation

Reducing CO2 Emissions in Japan

12

Since we manufacture and ship a variety of products—
ranging from large power plants to mass-produced items
such as home appliances, we are improving transportation effectiveness by reducing size, weight, and packaging to improve truck load efficiencies. We also have mademodal shifts: utilize more railways than road transportation for heavy products such as dry cells, and ships forlarge products assembled at the plant that were truckedin lots before.

Goal% reduction in fiscal 2010 (from fiscal 1990 levels)
Result In fiscal 2009, we reduced CO2 emissions by 21 percent fromthe fiscal 1990 level, clearing the year’s goal of 12 percent. This wasachieved through steps such as switching from heavy fuel oil to natural gas and by making furnaces more energy efficient.

(kt CO2)

4,000

CO2 emissions
Trend in CO2 emission reduction rate
(Target values are given in parentheses)

(%)

100

100

88

(88)
79

80

2,600

60

3,294
2,893

3,000

Trends in Transportation Mode Ratios in Japan
2,000

40

1,000

20

Truck

Air

3.3% 6.2%

90.1%

0.4%

4.8% 10.7%

84.4%

0.1%

FY 2009

0
2010
(FY)
(target)Emissions were calculated using CO2 emission coefficients for each electric powercompany, as published by the Ministry of the Environment
0Rail Marine
FY 2006

1990

2008

2009

Goals & Results
Reducing CO2 Emissions from Domestic Transportation

11

Reducing CO2 Emissions outside JapanGoal% reduction in fiscal 2010
(Rate of transportation energy consumption per real unit of output
from fiscal 2006 levels)
Result In fiscal 2009, we improved CO2 emissions per unit from domestic transportation by 26 percent over 2006 levels, clearing theyear’s goal of 10 percent. The effect of a modal shift to ship-borne
transportation in particular helped to reduce CO2 emissions.

5

Goal % reduction in fiscal 2010(per unit of production from fiscal 2003 levels)
Result In fiscal 2009, we reduced CO2 emissions by 5 percent fromfiscal 2003 levels, clearing the year’s goal of 4 percent. Building a newplant in China pushed up emissions, but energy-saving diagnoses
helped to improve overall energy efficiency.

(kt CO2)

EuropeChina(%)
North and South America
Asia (excluding China)
CO2 emissions per unit production(target values are in parentheses)

2,000

100

100

1,242
20

96.7

95

1,419
4

1,397
6

416

(kt CO2)

100

(95)

200

60

554

40

510

0

74

50

128

2006

2008

2009

20
514
2003

100

(89)

100

339

0

(%)

155

150

361

90

188

80

369

1,000

CO2 emissions
The rate of transportation energy consumption
per real unit of output(target values are in parentheses)

489
2008

2010
(target)

(FY)

0

476
2009

2010
(target)

(FY)

0

†1

29

Co-generation system: Energy-saving system making effective use of waste heat for
power generation

Hitachi Group
Environmental Sustainability
Report 2010

Super Eco-Factories &OfficesPrevention of Global Warming
http://www.hitachi.com/environment/

Conservation of Resources
We promote the efficient use of waste and water

Using Waste and Valuable
Resources Efficiently

waste type, disposal method and disposal completion,and that can also register the e-manifests†3 promoted by
the government to prevent inappropriate disposal. We
have bolstered our mechanisms for ensuring appropriate
waste disposal, with the system now issuing a warning if
there are mistakes in a manifest or if disposal completioncannot be completed. A function has been added forcollating data on waste volume, disposal methods, anddisposal volume from electronic manifest information to
boost operational efficiency and promote resource recycling. We are also working to increase e-manifest use
within the Group.

The Hitachi Group is reducing and recycling waste materials generated during manufacturing, including valuable
resources (reusable resources with residual value).
To use resources without generating waste, we are
reusing resources from the manufacturing process by recycling material residue as raw resources or filtering cleaning oil for reuse. These technologies and measures areshared across the Group to reduce the amount of waste.
We also aim to recycle waste into resources rather
than disposing of it in landfills. Using the Group’s 3R load
index to assess the environmental load incurred in waste
disposal, we are developing technologies and applications to promote reuse and recycling. Our initiative toboost the number of zero emission†1 sites that have minimized landfill disposal now has 163 facilities achievingthat status in fiscal 2009 (up 14 from the previous year).

Waste Management System
Input waste information• Type, volume• In-house disposal data, etc.

Promoting Appropriate Disposal* Japan Waste Network,
operated by the Japan Industrial
Waste Technology Center

We have developed a waste management system thatelectronically records information from manifests†2 on

3R Load Concept

Energy for refining

Input

Materials

Waste disposal

Manufacture

Reuse

Energy forrecycling

Energy forincineration

Energy forincineration

Energy forusing landfills

Recycling

Heat recovery

Simpleincineration

Landfill disposal

Heat energy
recovered

Hitachi Group
Environmental Sustainability
Report 2010

Super Eco-Factories &Offices

Conservation of Resources
http://www.hitachi.com/environment/

JWNET*
E-manifest registration

The 3R load is the expected environmental load from waste disposal. The smaller the environmental load, the more resources are being recycled. The following are totaled for each waste
type and disposal method:[1] Energy used in refining natural resources into materials[2] Energy used in waste disposal[3] Heat energy recovered through waste recycling and reduction in refining energy

Natural resources

Refining energy
saved• Collate and analyze waste disposal
volume• Print and issue manifests• Manage manifest recovery period30Super Eco-Factories & Offices

S

Goals & Results

Water Resource Conservation

Reducing Waste Generated

To reduce our water consumption, we are recovering andrecycling water used during manufacturing or reusing it
for non-technical use. A particular focus is the application of the Group’s reduction initiatives to outside Japan
where water resource conservation is an issue.

25

Goal
% reduction in fiscal 2010 (from fiscal 2000)
Result In fiscal 2009, the total-waste reduction group achieved a 33
percent reduction from fiscal 2000 in the amount of waste generated,
and the waste-per-unit production reduction group achieved a 24
percent reduction, meeting the year’s goal of a 24 percent reduction.

(kt)EuropeAmericas
China
Asia
Japan

Reduction rate for total-waste
reduction group
Reduction rate for waste-per-unitproduction reduction group

Goals & Results
Reducing Water Use outside Japan

10

Goal
% reduction in fiscal 2010 (from fiscal 2005)
Result In fiscal 2009, we cut our water use outside Japan by 20 percent from fiscal 2005, clearing the year’s goal of 8 percent. Particularly
in China, recycling and reuse efforts reduced water use, despite therise in production volume.

100

100
76

1,000
863

(%)

1
101
38
63

737

(million m3)

67
53
59
61

500
660

80

(75)

60

608 1
38
51
54

564

20
40

2000

2008

2009

2010
(target)

(FY)

0

10

10

0

Goal
% improvement in fiscal 2010 (from fiscal 2005)
Result In fiscal 2009, we boosted our resource recycling rate in Japanby 19 percent from fiscal 2005, clearing the year’s goal of an 8 percent
increase. Waste generation reduction was a major contributor to thehigher rate.

17

4,000
3,000

4.80

4.94

4.90

4.24

60

2005

40
20

2008

2009

2010
(target)

(FY)

0

10

(10)

0

2,913
2,401

2,342

†1
†2

1,000

†3
2005

11.75
0.01
2.56

20

2,000

0

12.27
0.02
2.55

(%)

19

0

80

80

4.58

6.30

3R loadResource recycling rate
Figure in parentheses is target level

(90)

14.73
0.02

Boosting the Resource Recycling Rate†4 in Japan(terajoules)

Trend in water(%)
use reduction rate
(target values inparentheses)
100

100

3.83
0

China
Asia

84

20

464

EuropeNorth andSouth America

2008

2009

2010
(target)

(FY)

†4

31

Zero emission: Defined as a final disposal rate (landfill disposal/waste) of no more than 1
percent and less than 5 tonnes of final waste in any given year
Manifest: An evidence document for industrial waste management issued by waste generators and relayed along the waste stream to ensure appropriate disposal
Electronic manifest (e-manifest): Mechanism for centralized management of digital manifests, with waste generators and waste disposal companies sharing relevant information
Resource recycling rate: Calculated as (base year 3R load minus subject year 3R load) divided
by base year 3R load
Zero emission sites

Hitachi Group
Environmental Sustainability
Report 2010

Super Eco-Factories &Offices

Conservation of Resources
http://www.hitachi.com/environment/

Preservation of Ecosystem
We are managing chemical risk and reducing emissions

Goals & Results

Effective Chemical Risk Management

Reducing VOC Emissions in JapanTo deal with chemical risk and comply with laws andregulations, we assess chemical substances, managing
risk in three ways: prohibition, reduction, and control. We
operate an online database for chemical substance management called CEGNET, using it to check on applicablelaws and regulations and our own voluntary regulations.
We collect and aggregate data on chemical substances:amount used, emitted or transferred. This information
helps to reduce chemical emissions. We also regularly
educate chemical substance managers.

50

Goal Reduction of% in fiscal 2010 (from fiscal 2000 levels)
Result In fiscal 2009, we reduced VOC emissions by 68 percent fromfiscal 2000, exceeding the year’s goal of 49 percent. Hitachi Cable’s
Tsuchiura Works installed equipment to adsorb, recover, and reuse
VOCs emitted during its copper product cleaning process, cutting
emissions into the atmosphere by 53 percent over the previous year.

VOC emissions
VOC reduction rate trend(targets are in brackets)
100

(kt)

(%)

100

15
11
10

The CEGNET Chemical Substance Management System

5

Chemical information management server
Regulatory/voluntary
control information

40

Chemical data
Network

New chemicalrisk searches

(50)
38

2003

2008

50

32
3
2009

2010
(target)(FY)

0Registration ofamounts handled
Data collation
Reducing VOC Emissions outside Japan

10

Goal Reduction of% in fiscal 2010
(Rate of reduction of emissions into the atmosphere†2 from fiscal
2005 levels)
Result In fiscal 2009, we cut the VOC emissions ratio by 14 percent
from fiscal 2005, surpassing the year’s goal of 8 percent. In China, weinstalled VOC recovery equipment in new plants to reduce the emissions ratio there.

Production facilities

Reducing Chemical Substances
To prevent air pollution, we cut emissions of 41 volatileorganic compounds (VOCs) based on a program of the
Ministry of the Environment. We improve manufacturing
processes to introduce VOC alternatives and install equipment to recover and render them harmless. We comply
with Japan’s PRTR Law†1 through Group-wide monitoringof chemical substances released into the atmosphereor into public waters, or transferred outside our plants
as waste, or discharged into sewage systems, reporting
this to local Japanese governments. Although very small
quantities need not be reported, our policy is to keep
data on all PRTR substances, provided the amount is 10
kilograms or more per year, so that we can control thesesubstances as well.
†1
†2

(t)

86
68
1,500

1,000

500

0

Super Eco-Factories &Offices

Preservation of Ecosystem
http://www.hitachi.com/environment/

32

(90)

76
51

57

50

VOCs
VOCs
VOCs
handledhandledhandled
1,020
1,005
1,017
13
26 VOC10
46 emissions 44
41
VOC
VOC
695
emissions15
518
356 emissions
577
33
523
452
7
9
29
285
37
273
189
607
502
427
362
288
268
2005

(%)

100

100

PRTR Law: Pollutant Release and Transfer Register Law
Reduction in emission ratio: The percent difference between the 2005 emission ratio and theemission ratio in the subject year. The emission ratio is calculated as VOC emissions divided bytotal volume of VOCs handled.

Hitachi Group
Environmental Sustainability
Report 2010

EuropeAsia (excluding China)
North and South America
China
Trend in reduction of emissions ratio
Trend in VOC emission ratios(Target values are in parentheses)

2008

2009

0

2010 (FY)(target)Super Eco-Factories & Offices

Environmental Load Data Generated through Business Operations

S

This chart shows resource inputs and the environmental load for Hitachi Group business activities in fiscal 2009.

Total Output of Environmental Load
Total volume of products manufactured: 2,796 kt (in Japan);
488 kt (outside Japan)

Total Input of Resources
Total Energy Input

Greenhouse Gas
EmissionsElectricity
82%

CO2 emissions
97%

In Japan73%

In Japan
66%
OutsideJapan
Greenhouse gases (GHGs) 34%
4,115 GWPkt

Gas
Total energy consumption Outside 12%Japan(crude oil equivalent)
27% Fuel oil 6%
1.87 million kl
In Japan
Electricity

Outside Japan

In Japan Outside Japan
2,600 GWPkt†1

4.4 billion kWh 1.7 billion kWh

CO2 emissions

100 million m3

24 million m3

Other GHGs
SF6 (sulfur hexafluoride)

75 GWPkt

0

LPG

38,000 t

25,000 t

PFCs (perfluorocarbons)

23 GWPkt

0

Fuel oil (heavy oil, kerosene, etc.)

95,000 kl

14,000 kl

HFCs (hydrofluorocarbons)

16 GWPkt

4 GWPkt

Gas
Town gas, LNG

Total Input ofMaterials

Total Volumeof Waste
Generated

Plastics Rubber
7%0%Metals54%
In Japan
57%
Materials
3,029 kt

Other
Outside 39%
Japan
43%

1,397 GWPkt

Recycling75%
In Japan76%

Waste
reduction
15%

Waste generated
608 ktOutsideJapan Final disposal
24%
10%

In Japan

Outside Japan

Metals

1,087 kt

529 ktWaste reduction

30 kt

51 kt

Plastics

165 kt49 kt

Recycling

409 kt55 kt

Rubber8 kt

1 kt

Volume reused

64 kt

–

461 kt729 ktVolume of material recycled

315 kt–Volume of thermal (heat) recycled

30 kt

–

Final disposal

25 kt

38 kt

Chemical substances
Discharge or transfer volume of chemical
substances covered under the PRTR Law

2.5 kt0.8 ktSOx (sulfur oxides)

45 t

11 t

NOx (nitrogen oxides)

460 t

29 t

6t
(0.3 ODPt†3)–

Other materials
Chemical substances
Handling volume for chemical substances covered
under the PRTR Law†2

142 ktHandling volume for ozone-depleting substances
Handling volume for greenhouse gases

In Japan Outside Japan

17 kt

7.1 t

–

1,311 t–Volume of discharge for ozone-depleting substances

Total Water Input

Total Volume ofWastewaterIndustrial water45%
In Japan81%
Surface water
17%

Groundwater
38%

Water used
68.47 million m3

Public waters
69%

Volume of water reused
In Japan: 16.22 million m3
Outside Japan: 1.98 million m3

OutsideJapan
19%

Sewagesystem28%

In Japan81%
Wastewater
60.60 million m3

Outside Underground
Japan infiltration, etc.
19%
3%

In Japan

Outside Japan

In Japan

Outside Japan

Surface water

6.29 million m3

5.07 million m3

Public water

39.18 million m3

2.8 million m3

Industrial water

26.91 million m3

3.94 million m3

Sewerage system

8.55 million m3 8.41 million m3

3

3

Undergroundinfiltration, etc.

1.45 million m3 0.21 million m3

Groundwater

†1
†2
†3

Other 3%23.52 million m

2.74 million m

Water quality
BOD (biological oxygen demand)

263 t

308 t

COD (chemical oxygen demand)

193 t

693 t

Global Warming Potential: Coefficient derived by converting the global warming potential into CO2 equivalent tonnes
The 354 chemical substances covered under Japan’s PRTR Law
Ozone Depletion Potential: Coefficient derived by converting the global depletion potential into trichlorofluoromethane (CHC-11) equivalent tonnes

33

Hitachi Group
Environmental Sustainability
Report 2010

Super Eco-Factories &Offices

Environmental Load Data Generated
through Business Operations
http://www.hitachi.com/environment/Worldwide Environmental Partnerships

Hitachi pursues open
environmental activities
We disclose information on our environmental activities
to deepen stakeholders' understanding and use two-way communication
to enhance that action, while working to protect the environment
through our business operations

Targets and FY 2009 Results

Target1

Widely communicate information
on environmental activities

2

Build environmental partnerships

Hitachi Group
Environmental Sustainability
Report 2010

Worldwide
Environmental
Partnerships

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

ResultCommunicate through a media mix, including our

Web site, advertising, and exhibitions

partnership
suppliers and local residents

Promote environmental protection in
with

34

Further info

p.35

p.37

Worldwide Environmental Partnerships
W

Environmental Communication
We use information disclosure and dialogue to build two-way communications

Communicating
Environmental Information

Outside Japan, Hitachi participated in the World Energy
Engineering Congress 2009, one of the largest U.S. expositions on saving energy and new energy sources, as well as
the Business on Rails Exhibition & Conference in Brazil, focusing on environmentally conscious urban transportation.

We publish reports every year on our environmental
protection initiatives, their results, and our plans. From
2008, in addition to the Hitachi Group Corporate Social
Responsibility Report, we issue the Hitachi Group Environmental Sustainability Report to enhance environmental
information disclosure. The various Hitachi business sites
and Group companies also issue reports. Our Web site
has information on environmental exhibitions, TV commercials, newspaper advertisements, and environmental
awareness in key Group products, as well as the ideas of
their developers.
In fiscal 2009, our TV
commercial on next-generation smart grids won theoutstanding performance
prize in the environmental
TV commercials categoryof the 13th Environmental
Communication Awards.

Eco-Products 2009 (December 2009, Japan)
We exhibited a model of a power generation system with less CO2 emissions,as well as hybrid rail and other cutting-edge technologies and services. About
20,000 people visited our booth over three days.

Environmental Activities pageon Hitachi’s Web site

Promoting Dialogue
Our dialogues with stakeholders not only deepen theirunderstanding of our environmental activities but also
give us opportunities to listen to their opinions and concerns about improving that action.
WEEC 2009 (November 2009, U.S.A.)
Featuring a wind power generator, a factory energy management system, andair conditioners with outstanding energy-saving performance, our booth received many government and corporate visitors.

Participation at Exhibitions

We have participated in the Eco-Products Exhibition—
the largest on environmentally conscious products inJapan—every year since the first one in 1999. In fiscal
2009, we featured 20 environmentally conscious products and services in the energy, mobility, IT, home, andmaterial zones based on achieving a sustainable society
through social innovation business.
Around 2,300 visitors, or about 81 percent, responding to a questionnaire said that their opinion of ourenvironmental activities had risen since viewing the exhibition. They also called for action and for initiative inrealizing a low-carbon society.

Dialogue with Stakeholders

We held a dialogue meeting with stakeholders in Belgium
in September 2009 on our European environmental business, briefing participants on our environmental strategy,
as well as our rail and thermal power plant businesses
in Europe. We also exchanged views on stakeholders’expectations, which included a clear indication of thesocial benefits and the costs of environmental technologies and a demonstration of environmental leadership
by Hitachi.

35

Hitachi Group
Environmental Sustainability
Report 2010

Worldwide
Environmental
Partnerships

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

Environmental Communication

Responding to External Evaluationsof the world’s leading companies. We participate in the
CDP, submitting environmental strategies and greenhouse gas emission data. In fiscal 2009, we were selected
out of 500 Japanese companies assessed by the CDP as
one of the 31 components of the Carbon Disclosure Leadership Index for our outstanding information disclosure.

To ensure that stakeholders receive the information thatthey require, we cooperate with socially responsible investment†1 ratings and other environmental surveys. We also
apply for awards as a means of energizing our activities.
Selection as a DJSI World Component

Boosting the Reliability ofEnvironmental Information

The Dow Jones Sustainability Index World (DJSI World)
is a stock index created by U.S.-based Dow Jones andSwiss-based Sustainable Asset Management (SAM) toassess the sustainability of 2,500 companies around theworld based on their economic, social and environmental performance. In fiscal 2009, Hitachi was one of the 317
companies (including 32 Japanese) selected as a DJSIWorld component. We were rated particularly highly forenvironmental initiatives, outscoring other companies
with a high 85 (against an average of 38).

In April 2009, one of our group companies was found tohave misrepresented facts concerning its refrigerators. To
prevent such incidents from recurring, our proceduresfor handling product environmental information havebeen clarified and checking systems were improved.
Moreover, an advisory group on the product environmental information and expression was established inJuly 2009, including two external eminent figures. This
group regularly audits product environmental information by checking the procedures at Group companies,
and discusses improvements to product catalogs from a
consumer perspective. Through these initiatives, we willcontinue to boost the reliability of Hitachi Group environmental information.

DJSI logo

CDP Evaluation and Selection†1

Backed by 475 institutional investors with 55 trillion dollars in combined assets under management, the Carbon
Disclosure Project (CDP) assesses the potential risks andopportunities that climate change poses for around 3,700

Enhancing Environmental
Communication

An approach to investing where shares are selected partly on the basis of criteria relating to CSR
CSR/environmental reports published by Hitachi Group companies
List of environmental exhibitions
External environment awards

External Advisors, Advisory Group on the Product Environmental Information and Expression
Yukiko Furuya, Board Member, Nippon Association of Consumer Specialists
Hideto Kawakita, CEO, International Institute for Human, Organization and the Earth

Corporate communication must be sufficiently clear to avoid misunderstandings, andmust represent corporate philosophies andactivities in a way that responds to consumer
expectations and wishes. We urge the HitachiGroup to go beyond the proposal and provision of new environmentally conscious social
structures and lifestyles to also demonstrate

Hitachi Group
Environmental Sustainability
Report 2010

Worldwide
Environmental
Partnerships

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

36

leadership in communications, and to empower individual stakeholders to become
part of realizing a sustainable society.

Worldwide Environmental Partnerships
W

Building Environmental Partnerships
Cooperating with stakeholders to realize a sustainable society

Environmental Conservation
Activities with Suppliers

333 children on the themes of learning about the buoyancy of air from hot-air balloons and using magnets toclean water. Meanwhile, in Shanghai and Beijing, since
fiscal 2008, Hitachi (China) Ltd. employees have visited
kindergartens and elementary schools. The students
learned about global warming and putting environmental awareness into practice in their daily lives. As well, weare creating learning opportunities for children throughout Japan with hands-on demonstrations and classes,
and the themes are being chosen by the schools.

Procuring materials with a low environmental load in cooperation with suppliers is an essential element of developing environmentally conscious products. We drew up
the Green Procurement Guidelines to gain suppliers’ understanding and cooperation on environmental conservation and for developing and supplying products with alower environmental load.
Specifically, we ask suppliers to (1) conserve resources, (2) conserve energy, (3) aggressively pursue the threeRs,†1 (4) reduce the amount of packaging, (5) manage
chemical substances used in products, and (6) provide
clear information. For (1) to (4), we encourage conservation by presenting case studies and by exchanging proposals for cutting costs and improving quality. For (5), we
promote sharing of detailed information (see page 25).
To encourage environmental conservation by suppliers, we recognize suppliers which established environmental management systems with third-party
certifications as green suppliers.
In fiscal 2009, we launched the
New MMM Club,†2 exchanging information with the green suppliers on advanced environmental
technologies and environmental
regulations. We will continue torefine these environmental management techniques in cooperation with suppliers.
Green Procurement Guidelines

Employees in the United Arab Emirates hold a hands-on class, using
experiments to teach about water purification (Hitachi Plant Technologies, Ltd.)

Contributing to Environmental Education
We promote environmental education, in and outside
Japan, to raise children’s eco-awareness and to help
them better understand our environmental activities.
Since fiscal 2007, Hitachi Plant Technologies, Ltd.
has held an environment and science class, “Community Partnership Academy of Wisdom,” on themes suchas water management. In fiscal 2009, they held the firstenvironment and science classes outside Japan, mainlyorganized by their Middle East Regional Headquarters.
Instructors visited two Japanese and three elementary
schools in the United Arab Emirates, holding classes for

Explaining environmental activities to local children at a plant thathas wind and solar power generation facilities (Onuma Works, Hitachi
Engineering & Services Co., Ltd.)

†1
†2

37

Three Rs: reduce, reuse, and recycle
New MMM Club: An organization for exchanging information on environmental managementwith small and medium-sized suppliers who have acquired third-party certification in environmental management systems
Green Procurement Guidelines

Hitachi Group
Environmental Sustainability
Report 2010

Worldwide
Environmental
Partnerships

Building Environmental Partnerships
http://www.hitachi.com/environment/

Building Environmental Partnerships

Environmental Cooperation
with Local Communities

working with NGOs and NPOs that specialize in local environmental situations and activities.
To help protect biological diversity around the world,
we have been conducting, among other activities, surveys of the butterfly Reverdin’s Blue, an endangered species found near Mount Fuji, as well as planting trees to aid
in the recovery of ecosystems.

To conserve the environment as a global citizen, we
promote environmental beautification and natural conservation in and outside Japan by cooperating with
employees, their families, and local residents. We also
support local environmental conservation projects by

In cooperation with the NGO
Earthwatch Japan and guided by researchers, we havemade annual surveys of thelarvae and adult stages of
the Reverdin’s Blue butterfly
since 2007.

Activities to Protect Ecosystems
The United Nations Millennium Ecosystem Assessment
published in March 2005 states that the people of theworld depend on ecosystem services such as cleanwater and oxygen, marine and other food resources,
and a stable climate. However, as a result of rapid development, ecosystems are being quickly degraded.
To protect ecosystems and maintain biological diversity, society must reduce the environmental burden on
ecosystems and promote their recovery.
To protect ecosystems as a corporation, we consider it necessary to conduct our activities throughbusiness, through environmental management, andthrough conservation mindful of the natural environment. We are promoting activities in these three areas
in an integrated way.
As a member of the World Business Council for
Sustainable Development (WBCSD), Hitachi ChemicalCo., Ltd. has taken part in the development of Corporate Ecosystem Services Review (ESR) guidelines and isparticipating in the promotion of worldwide efforts toprotect ecosystems.

Contribution through businessSupply products and services that
protect the ecosystem through air,water, and soil purification.
See page 11

Contribution throughenvironmental management
Understand and reduce our burden on
ecosystems through business activities.

Worldwide
Environmental
Partnerships

Building Environmental Partnerships
http://www.hitachi.com/environment/• Water treatment (ballast water purification systems, advanced sewage treatment
systems, etc.)• Air purification (denitrification catalyst
systems, etc.)• Soil treatment projects• Product chemical substance control systems• Controlling wastewater, controlling/reducing
the use of chemical substances• Using biological raw materials• Controlling greenhouse gas emissions,promoting resource recycling

See pages 25 and 32

Conservation activities
Help ecosystem recovery throughafforestation, etc.
See page 38

Hitachi Group Ecosystem Protection Activities

Hitachi Group
Environmental Sustainability
Report 2010

In cooperation with the NPO
G-Net, every year since fiscal 2005 we have assistedwith afforestation and othergreening projects in the
Horqin Desert in the Inner
Mongolia Autonomous Region of China.

38• Employees participate in tree planting• Protecting endangered species• Using trees and greenery at production sites
to their best advantage

Independent Review
To enhance the reliability of the data disclosed in this report, we have received
the review by Bureau Veritas Japan Co., Ltd.* on our fiscal 2009 performance.
* A certification agency providing inspection, audit and certification services in areas such as marine;building compliance; health, safety and the environment; systems; and consumer products

The standards, guidelines and calculation methods used in collecting data appear on
our Web site.

Calculation methods for environmental load data

Bureau Veritas Japan review report

39

Hitachi Group
Environmental Sustainability
Report 2010

Independent Review

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

Company Profile
Corporate Name
Incorporated
Head OfficeHitachi Group Profile
Hitachi, Ltd. and the Hitachi Group make up a corporate groupconsisting of 1,058 companies: 365 consolidated subsidiaries
within Japan and 535 outside Japan, as well as 71 equitymethod affiliates in Japan and 86 outside Japan. For businessactivities, there are eleven business units, as indicated on thenext page, with total revenues of about 9 trillion yen. The Group
employs about 360,000 employees.

Hitachi, Ltd.
February 1, 1920 (founded in 1910)
1-6-6 Marunouchi, Chiyoda-ku, Tokyo 1008280, Japan
Hiroaki Nakanishi, Representative Executive
Officer and President

Representative

Asia
Number of companies: 270
Number of employees: 99,216
Revenues: 1,699.0 billion yen

EuropeNumber of companies: 138
Number of employees: 9,488
Revenues: 824.6 billion yen

North America
Number of companies: 80
Number of employees: 14,667
Revenues: 729.6 billion yen

Japan
Number of companies: 366
Number of employees: 230,948
Revenues: 5,313.7 billion yen

Other Areas
Number of companies: 47
Number of employees: 5,427
Revenues: 401.2 billion yen

Economic Performance
As of March 31, 2010

Period: Fiscal year ending March 31, 2010
(consolidated basis)

Common Stock408,810 million yen
Number of employees (unconsolidated basis)
31,065
Number of employees (consolidated basis)359,746
Number of consolidated subsidiaries
900(Japan: 365, outside Japan: 535)
Number of equity-method affiliates
157(Japan: 71, outside Japan: 86)

Revenues

8,968.5 billion yen(90% compared with the previous year)
Operating income
202.1 billion yen(159% compared with the previous year)
Capital investment
546.3 billion yen(69% compared with the previous year)
R&D expenditures
372.4 billion yen(89% compared with the previous year)
Overseas output as a percentage of consolidated net sales 24%
See Web site for economic performance reports.
http://www.hitachi.com/IR-e/

Financial Results (consolidated basis)
Revenues and Operating Income

Revenues by Industry Segment in Fiscal 2009 (billions of yen)

Revenues(billions of yen)

Operating income(billions of yen)
Revenues
Operating income

Others
763.6 (8%)

1,200

Financial Services
419.6 (4%)

1,000

Digital Media & Consumer Products
929.2 (9%)

8,000

800

6,000

600

Components & Devices
754.8 (7%)

12,00010,0004,000

11,226.7
9,464.8

256.0

2,000
0

2005

10,247.9

10,000.3
8,968.5

345.5
182.5
2006

2007

2008

202.1
2009 (FY)Power Systems
882.1 (9%)

Automotive Systems
638.8 (6%)

400
127.1

Information & Telecommunication
Systems
1,705.5 (17%)

High Functional
Materials & Components
1,249.3 (12%)

2000Social Infrastructure &Industrial Systems
1,250.2 (12%)
Construction
Machinery
583.6 (6%)

Electronic Systems &Equipment
998.6 (10%)
Total Sales by Industry: 10,175 billion yen
Consolidated Net Sales: 8,968 billion yen

Hitachi Group
Environmental Sustainability
Report 2010

Company Profile

http://www.hitachi.com/
environment/40

Major Fields of Business and Products
Information & Telecommunication Systems
Systems integration, outsourcing services, software, disk array subsystems, servers, mainframes, telecommunications equipment,
ATMs
Hitachi-Omron Terminal Solutions, Corp., Hitachi Computer Products (America), Inc., Hitachi Computer Products (Europe) S.A.S.,
Hitachi Electronics Services Co., Ltd., Hitachi Information & Control Solutions, Ltd., Hitachi Information Systems, Ltd., Hitachi
Software Engineering Co., Ltd., Hitachi Systems & Services, Ltd., Hitachi Data Systems Holding Corp. (U.S.A.), Hitachi Information &Telecommunication Systems Global Holding Corporation

Large disk array subsystem*

Power Systems

Social Infrastructure & Industrial Systems

Thermal, nuclear, hydroelectric, and wind power generation systems
Babcock-Hitachi K.K., Hitachi-GE Nuclear Energy, Ltd., Hitachi Engineering & Services Co., Ltd.,
Hitachi Power Europe GmbH, Hitachi Power Systems America, Ltd.

Industrial machinery and plants, elevators,
escalators, railway vehicles and systems
Hitachi Industrial Equipment Systems Co., Ltd.,
Hitachi Elevator (China) Co., Ltd., Hitachi Building
Systems Co., Ltd., Hitachi Plant Technologies, Ltd.

Construction of ElectricPower Development
Company's Ohma Nuclear
Power Plant*

VX series escalator*

Electronic Systems & Equipment

Construction Machinery

Semiconductor and LCD manufacturing equipment,
testing and measurement equipment, medical
electronics equipment, power tools, electronic partprocessing equipment
Hitachi High-Technologies Corporation, Hitachi
Koki Co., Ltd., Hitachi Kokusai Electric Inc., Hitachi
Medical Corporation, Hitachi Via Mechanics, Ltd.

Hydraulic excavators, wheel loaders, mining dump
trucksHitachi Construction Machinery Co., Ltd.

Hitachi High-Technologies’ device
characterization system

High Functional Materials & Components

Hitachi Construction Machinery's hydraulic excavator

Automotive Systems

Wires and cables, copper products, semiconductor
and display-related materials, circuit boards andmaterials, specialty steels, magnetic materials andcomponents, high-grade casting components andmaterials
Hitachi Cable, Ltd., Hitachi Chemical Co., Ltd.,
Hitachi Metals, Ltd.

Engine management systems, electric powertrainsystems, drive control systems, car information
systems
Clarion Co., Ltd., Hitachi Automotive systems, Ltd.,
Hitachi Automotive Products (USA), Inc.
Hitachi Auto Parts & Service Co., Ltd.
Hitachi Automotive Systems’ inverter
for hybrid vehicles

Neodymium-iron-boron
permanent magnet NEOMAX®

Components & Devices

Digital Media & Consumer Products

Hard disk drives, LCDs, information storage media,
batteries
Hitachi Displays, Ltd., Hitachi Maxell, Ltd., Hitachi
Display Device (Suzhou) Co., Ltd., Hitachi Global
Storage Technologies Netherlands B.V.

Hitachi Vehicle Energy’s lithium-ion battery
for plug-in hybrid electric vehicles

Financial Services

Optical disk drives, flat-panel TVs, LCD projectors,
mobile phones, room air conditioners, refrigerators,
washing machines, air-conditioning equipment
Hitachi Appliances, Inc., Hitachi Consumer
Electronics Co., Ltd., Hitachi Media Electronics Co.,
Ltd., Hitachi Consumer Products (Thailand), Ltd.,
Hitachi Consumer Marketing, Inc., Hitachi-LG Data
Storage Korea, Inc.

FLEXMULTI, Hitachi Appliances’ multi-split
air-conditioning systems for buildings

Others

Leasing, loan guarantees
Hitachi Capital Corporation

General trading, logistics, property management
Chuo Shoji, Ltd., Hitachi Life, Ltd., Hitachi Transport
System, Ltd., Nikkyo Create, Ltd., Hitachi America,
Ltd., Hitachi Asia Ltd., Hitachi (China) Ltd., Hitachi
Europe Ltd.
Hitachi Capital’s multifunctional IC card
Hitachi Transport System’s Keihin Distribution Center,equipped with Hitachi security systems

Major Products & Services
Major Consolidated Subsidiaries (as of March 31, 2010) The products marked with an asterisk (*) in the table above are those of Hitachi, Ltd.
(Notes) 1. Hitachi, Ltd. separated out the automotive systems segment to form Hitachi Automotive Systems, Ltd. on July 1, 2009.
2. Hitachi Mobile Co., Ltd. changed its name to Hitachi Auto Parts & Service Co., Ltd. as of April 1, 2009.
3. Hitachi, Ltd. separated out the consumer business, mainly digital media-related products such as flat-panel TVs, to form Hitachi Consumer Electronics Co., Ltd. on July 1, 2009.

Hitachi Group Environmental Sustainability Report 2010

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

Printed using FSC-approved paper
containing raw materials from properly
managed forests certified by the FSC(Forest Stewardship Council)

ZZ-E026

2010.08

Request for Cooperation by Questionnaire
Hitachi Group Environmental Sustainability Report 2010

What were your impressions after reading the Hitachi Group Environmental
Sustainability Report 2010? Your opinion and comments are valuable tous for our future environmental activities. Please help us by completingthe questionnaire below and sending it to the address on the right.

Environmental Strategy Office, Hitachi, Ltd.
1-6-1 Marunouchi, Chiyoda-ku, Tokyo 100-8220 Japan

Fax: +81-3-4235-5835

Q1. What were your impressions of the Hitachi Group Environmental Sustainability Report 2010?
(Please select only one from the following)(1) IntelligibilityHigh
Too much(2) Volume
Easy to read(3) Layout
Excellent(4) Articles• Please explain the reasons for your selections

Average
Appropriate
Average
Average

Low
Too little
Hard to read
Inadequate

Q2. Which of the following sections of the report did you find valuable? (You may select more than one)
Message from the Chief Environmental Strategy Officer
Hitachi Group Corporate Environmental Management
Contributing to Environmental Conservation through Business
Environmental Business of the Hitachi Group
Preservation of Ecosystem

Prevention of Global Warming
Environmental Action Plan

Eco-Mind & Global Environmental Management
Environmental Management Structure

Improving on Environmental Initiatives

Next-Generation Products & Services
Development of Environmentally Conscious Products
Conservation of Resources

Prevention of Global Warming
Preservation of Ecosystem

Super Eco-Factories & Offices
Super Eco-Factories & Offices
Conservation of Resources

Prevention of Global Warming
Preservation of Ecosystem

Worldwide Environmental Partnerships
Environmental Communication
Activities to Preserve Ecosystems

Building Environmental Partnerships
Independent Review

Conservation of Resources

Q3. What is your opinion of the Hitachi Group’s environmental activities? (You may select more than one in each category)(1) Areas of excellence

Reduction of environmental load through products and services[Please check]

Prevention of Global Warming

Conservation of Resources

Preservation of Ecosystem

Reduction of environmental load from business operations(2) Areas for further improvement[Please check]
Prevention of Global Warming
Conservation of Resources
Reduction of environmental load through products and services[Please check]
Prevention of Global Warming
Conservation of Resources
Reduction of environmental load from business operations[Please check]
Prevention of Global Warming
Conservation of Resources

Preservation of Ecosystem
Preservation of Ecosystem
Preservation of Ecosystem

Q4. This year the Hitachi Group has divided its annual CSR reporting into two separate publications, the HitachiGroup Corporate Sustainability Report 2010 Digest, which summarizes our CSR initiatives, and the Hitachi Group
Environmental Sustainability Report 2010, which focuses on our environmental activities. What is your opinion of the
new format for reporting environmental activities?
Reader-friendly
Not reader-friendly—Reason(s):—Reason(s):More information
Too much information

Easier to find information
Hard to find information

Other
Other ())

Q5. Which of the following best describes you or your relationship to Hitachi? (Please select one only)
Customer
Shareholder/investor
Research/education institution employee
Resident near Hitachi Group facility

Supplier
Government/public administration employee
News/media employee
Student
NPO/NGO representative
Hitachi Group employee/family member
Other ()

Q6. How did you find out about this Environmental Sustainability Report? (Please select one only)
Newspaper

Magazine

Web site

SeminarExhibition

From a Hitachi employee

Other(

Q7. Did reading the Environmental Sustainability Report 2009 improve your environmental image of the Hitachi brand?
It improved my image

It did not change my image

It worsened my image

Q8. Please write below any other comments or requests you have regarding the Hitachi Group Environmental
Sustainability Report or the Group’s environmental activities and initiatives

Thank you for your cooperation
We will use your feedback to improve our environmental report and our environmental activities.

)