Hitachi Sustainability Report 2017
Fiscal 2016 Results

Hitachi Sustainability Report 2017

1

Contents

Introduction

Management Approach

Activities

Performance Data

Contents

Contents
Introduction

02

Activities

How to Use This Report

02

Corporate Governance

Editorial Policy

02

Hitachi Group Profile

04

Hitachi and SocietyManagement Approach

33–44

Customers (Consumer Issues)

76–84

Pursuing Management Efficiency and Transparency

35

Pursuing Customer Satisfaction

78

Sharing the Hitachi Group Identity

39

Ensuring Accessibility to Products and Services

8005

Advancing Risk Management on Multiple Fronts

41

Ensuring Thorough Management of Quality and Safety

82

09

Human Rights

Leadership10–11
CEO’s Message

10

Executive Officer’s Message: CSR and the Environment

11

Recognition of Social Responsibility
Realizing Sustainable, Innovative Management

12–26
14

Review and Improvement of CSR Activities	Enhancing CSR Management

45–50

22
27–31
29

Community Involvement and Development

Respect for Human Rights Throughout the Value Chain

47

Promoting Sustainable Community Involvement

Respect for Workers’ Rights

50

and Development

Labor Practices

51–66
54

Promoting Environmental Management

Promoting Diversity and Inclusion

55

Enhancing Environmental Management on

Promoting Occupational Health and Safety

61

Our Global Human Capital
Fair Operating Practices

64
67–75

85–88
87

Environment89–121

Achieving a Fair and Equitable Work Environment

A Strategy for Growing Together with

Understanding Issues Through Dialogue andTaking Part in Initiatives

32

90

an Ongoing Basis

93

Responding to Environmental Risks and Opportunities

105

Achieving a Low-Carbon Society

107

Achieving a Resource Efficient Society

112

Achieving a Harmonized Society with Nature

117

Performance Data

122

Promoting Work Practices in Line with
International Ethics Codes

69

Engaging in Responsible Procurement

71
Key Indicators

123–124

Overview of Financial Results, Board Members,
and Employee Data

125–127

Main Assessments and Awards

128–129

Independent Assurance

130

Hitachi Sustainability Report 20172

Contents

Introduction

Management Approach

Activities

Performance Data

Introduction

How to Use This Report
Use the category tabs, navigation icons, and link buttons to go directly to different sections of this report.
Link Buttons

Click to go to corresponding website

Click to go to corresponding page
1

Category Tabs
Go to the beginning of thecorresponding section

Contents

Introduction

Management Approach

Activities

Performance Data

Contents

Introduction

Management Approach

Activities

Performance Data

Navigation Icons
Click to go backone page
Click to go forward
one page

Editorial Policy
Basic Concept

What This Report Covers (Boundary of Reporting)

We are continuously improving our CSR activities and have

Period:The main period covered is fiscal 2016 (April 1, 2016, to March 31, 2017)

identified nine key themes for our CSR management framework:

Companies:

1,253 companies, namely, Hitachi, Ltd. and 1,252 consolidated subsidiaries (including 388 equity-method associates
and joint ventures)(1) recognition of social responsibility, (2) corporate governance,(3) human rights, (4) labor practices, (5) environment, (6) fair

Boundary of Data: Financial data:

operating practices, (7) customers (consumer issues), (8)1,253 companies, namely, Hitachi, Ltd. and 1,252 consolidated subsidiaries (including 388
equity-method associates and joint ventures)

community involvement and development, and (9) review andSocial data:

improvement of CSR activities.

Environmental data: 865 companies, namely, Hitachi, Ltd. and 864 consolidated subsidiaries. However, forenvironmental performance data associated with Hitachi s business operations, Hitachi, Ltd.
and consolidated subsidiaries whose environmental load comprises 90% of the total (basedon Hitachi calculations) are included.

With reference to these nine key themes, the Hitachi
Sustainability Report 2017 details the social and environmental
issues that are vital to the sustainability of our operations andBoundary of data indicated under each indicator

society, presenting our stance and the activities undertaken in

Reporting Cycle:

Published every year as an annual reportfiscal 2016.

Date Published:

September 2017

Inasmuch as the report is a tool with which we engage with
our stakeholders through honest and transparent disclosures of
information, it contains our basic policies, promotion systems,
key performance indicators, and specific measures for our
CSR initiatives in line with the disclosure requirements of the
GRI Sustainability Reporting Standards (GRI Standards).

Notes:• The data for each fiscal year are the results according to the boundary of data in that fiscal year.
• The base fiscal year data has been revised to match the boundary of data for fiscal 2016.

Hitachi Sustainability Report 2017

Contents

3

Introduction

Management Approach

Activities

Performance Data

Introduction[Symbol Marks Used in This Report]

Independent Assurance*T echnical terms, proper nouns, tables, diagrams, etc.

To enhance the credibility of this report, we have engaged

the Practical Guidelines for the Assurance of Sustainability

requiring explanation

KPMG AZSA Sustainability Co., Ltd. to provide assurance on

Information of the Japanese Association of Assurance

environmental and social performance indicators. This assurance

Organizations for Sustainability Information.

[Hitachi References in This Report]

was carried out in accordance with the International Standard

Hitachi, Ltd.: Information on or initiatives of Hitachi, Ltd.

on Assurance Engagement (ISAE) 3000 and 3410, as well as

Hitachi and the Hitachi Group: Information on or initiatives of all
Group companies in and outside Japan

Financial and Non-Financial Information Reports on Hitachi’s Value Creation

Performance indicators for fiscal 2016 that have beenassured are marked within the report.

Financial Information Reports[Key Guidelines Referred to in Preparing This Report]• GRI Standards, Global Reporting Initiative•E nvironmental Reporting Guidelines (2012 version), Ministryof the Environment, Japan•E
 nvironmental Reporting Guidelines 2001—With Focus on

Web Investor Relations

http://www.hitachi.com/IR-e/Note: Information about Hitachi, Ltd. is also disclosed in the Annual Securities Report andthe Report on the 148th Business Term.

Stakeholders, Ministry of Economy, Trade, and Industry, Japan

Disclosure of Financial and Non-Financial
Information
Hitachi, following closely the deliberations of the European
Union (EU) and the International Integrated Reporting Council(IIRC) about non-financial disclosure, presents information to

Hitachi Integrated Report 2017

Non-Financial Information Reports
The Hitachi Sustainability Report 2017 provides non-financial information to investors, auditors, and CSR experts in an easily searchable, interactive PDF format(A4, 132 pages).
The CSR website contains not only the contents of this report but also news releases to provide up-to-date information to our diverse stakeholders.

match the needs of stakeholders reading this report.
Since the fiscal 2016 edition, the Hitachi Integrated Report
has presented both financial and non-financial information
showing how Hitachi is striving to create value. The Hitachi
Sustainability Report continues to serve as a comprehensive
tool providing detailed non-financial information.
Hitachi Sustainability Report 2017

Web CSR (Corporate Social Responsibility)

Web Environmental Activities

Web Global Community Relations andhttp://www.hitachi.com/csr/

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

Activities (Social Contribution Activities)
http://www.hitachi.com/csr/sc/

Note: We also disclose information about Hitachi, Ltd. in the Corporate Governance Report.

Hitachi Sustainability Report 20174

Contents

Introduction

Management Approach

Activities

Introduction

Hitachi Group Profile
Company Profile (as of March 31, 2017)

Consolidated Financial Highlights for Fiscal 2016, Based on
the International Financial Reporting Standards (IFRS)Corporate name

Hitachi, Ltd.

Incorporated

February 1, 1920 (founded in 1910)

Head office

1-6-6 Marunouchi, Chiyoda-ku,
Tokyo 100-8280, Japan

Representative

Toshiaki Higashihara
Representative Executive Officer,
President, and CEO

Revenue

9,162.2 billion yen (down 9%,
year on year)

EBIT*1475.1 billion yen (down 11%)

Income from continuing
operations, before income taxes

469.0 billion yen (down 9%)

Net income attributable to
Hitachi, Ltd. stockholders

231.2 billion yen (up 34%)

Capital458.79 billion yen

Capital expenditure*2

377.5 billion yen (down 29%)

Number of employees

35,631 (unconsolidated basis)

R&D expenditure323.9 billion yen (unchanged)

303,887 (consolidated basis)

Total assets

9,663.9 billion yen

Number of consolidated
subsidiaries (including
variable interest entities)

864 (Japan: 208, outside of Japan: 656)
*1 EBIT: Income from continuing operations before income tax, less interest income,plus interest charges.
*2 Since fiscal 2015, the amount of investment in leased assets that fall under the heading offinance and leases included in conventional capital expenditure are deducted from capital
expenditure for disclosure.
Note: Hitachi’s consolidated financial statement is prepared based on the International
Financial Reporting Standards (IFRS).

Number of388
equity-method associates
and joint ventures

Revenue and Net Income Attributable to Hitachi, Ltd. Stockholders(billion yen)
12,00010,000(billion yen)
1,200

10,034.3

9,774.9

9,666.4

9,162.2

1,000

8,000
6,000

800
600

413.8

4,000

217.4

2,000
0
Revenue (left scale)

2013

2014

Net income attributable to Hitachi, Ltd. stockholders (right scale)

172.1
2015

400

231.2

200

2016

(FY)

0

Performance Data

Hitachi Sustainability Report 2017

Contents

5

Introduction

Management Approach

Activities

Performance Data

Introduction

Hitachi and Society
Creating value to fulfill our Corporate Credo—contributing to society through the development of superior, original technology and products—has underpinned our business development
for more than a century. Hitachi’s R&D program focuses on products and services that help to resolve social issues.

Key Business Segments for Social Contributions

To help resolve issues confronting society and our

The issues humanity faces—environmental problems likecustomers, we provide IT solutions to support data utilization

Hitachi has a long and proven track record of high reliability inclimate change and ecosystem degradation; energy, water,

on a global basis.

supporting people’s daily lives through such products andresource, and food shortages; urban population growth; andthe graying of societies—are growing more serious around theworld. As a global corporate citizen, Hitachi is globally engaged
in providing social infrastructure and, in many other fields,
creating both economic and social value to address theseissues and contribute to a sustainable society.

Information & Telecommunication Systems

Social Infrastructure & Industrial Systems

services as rolling stock and train management systems,
Main Products and Services
Systems integration, consulting, cloud services, servers, storage, software,
telecommunications & networks, ATMs
Principal Consolidated Subsidiaries (as of March 31, 2017)
Hitachi Information & Telecommunication Engineering, Ltd., Hitachi-Omron
Terminal Solutions, Corp., Hitachi Computer Products (America), Inc., Hitachi
Financial Equipment System (Shenzhen) Co., Ltd., Hitachi Solutions, Ltd.,
Hitachi Systems, Ltd., Hitachi Consulting Corporation, Hitachi Data Systems
Corporation, Hitachi Payment Services Pvt. Ltd.

Hitachi provides IT services that address customers’ diverse

power plants and transmission and distribution systems,
elevators and escalators, and water solutions. It also offers
industrial solutions and equipment to enhance the sophistication of production facilities. Hitachi utilizes digital technologies
to provide optimum solutions in addressing the issues anddiversifying needs of customers worldwide.
Installation of water solutions:needs by combining Hitachi’s extensive expertise in a diverse

1,800

sites

Through our OT (operational technology) and IT, Hitachi

range of business fields, including financial services, withadvanced information technology. Our services cover the entire

offers comprehensive water solutions on a global scale, suchlife cycle of systems, ranging from consulting to system

as seawater desalination equipment, monitoring and control

integration, operation, maintenance, and other support.

systems, design and construction of water treatment plants,

Locations ofour business operations:

100

Over

and operation and maintenance of plants.
A Hitachi storage system.

countries and regions
Revenue

1,982.8 billion yen

Adjusted operating income

152.9 billion yen

EBIT

76.4 billion yen

Main Products and Services
Industrial machinery and plants; elevators; escalators; railway systems; thermal,
nuclear, and renewable energy power generation systems; transmission anddistribution systems

Hitachi Sustainability Report 2017

Contents

6

Introduction

Management Approach

Activities

Performance Data

Introduction

Principal Consolidated Subsidiaries (as of March 31, 2017)
Hitachi-GE Nuclear Energy, Ltd., Hitachi Industrial Equipment Systems Co.,
Ltd., Hitachi Elevator (China) Co., Ltd., Hitachi Building Systems Co., Ltd.,
Hitachi Industry & Control Solutions, Ltd., Hitachi Plant Construction, Ltd.,
Hitachi Plant Services Co., Ltd., Hitachi Power Solutions Co., Ltd.,
Hitachi Rail Europe, Ltd., Horizon Nuclear Power, Ltd.

Main Products and Services
Semiconductor manufacturing equipment, measurement and analysis equipment, advanced industrial products, medical equipment

Main Products and Services
Hydraulic excavators, wheel loaders, mining machinery
Principal Consolidated Subsidiaries (as of March 31, 2017)
Hitachi Construction Machinery Co., Ltd.

Principal Consolidated Subsidiaries (as of March 31, 2017)
Hitachi High-Technologies Corporation, Hitachi Kokusai Electric Inc.

Hitachi Construction Machinery’s ultralarge hydraulicexcavator and mining dump truck.
A seawater desalination system.

Revenue

Hokkaido University Hospital’s particle beam cancer
therapy system.

Adjusted operating income

2,331.9 billion yen

Revenue

EBIT

77.0 billion yen−19.9 billion yen

Adjusted operating income

753.9 billion yen
Revenue

Adjusted operating income

1,170.3 billion yen

81.5 billion yen

26.3 billion yen

EBIT

22.7 billion yen

EBIT

66.7 billion yen

Electronic Systems & Equipment

High Functional Materials & Components
Hitachi draws on its wealth of technological expertise andDrawing on the Hitachi Group’s advanced technologies, Hitachi

Construction Machineryknow-how to provide a variety of materials and components—

provides systems supporting the information society, including

Leveraging decades of technological expertise and know-how,such as semiconductor- and display-related materials, synthetic

semiconductor manufacturing equipment, measurement and

Hitachi offers solutions that address the needs of a broadresin products, specialty steels, magnetic materials, casting

analysis equipment, broadcasting and video systems, andrange of industries, including civil engineering and construc-components, and wires and cables—that enable advanced

healthcare solutions that support healthy lifestyles.

tion, building and structural demolition, and mining and exca-

functions in products for such sectors as autos, IT andvation. Hitachi also handles the sale, servicing, andconsumer electronics, and industrial and social infrastructure.

maintenance of hydraulic excavators and other construction

Business operations are focused in Asia, North America,

machinery to provide integrated solutions globally.

and Europe.

Number of operating
particle therapy facilities:

3

in Japan,4in the United States(as of June 30, 2017)

Particle therapy mitigates the burden on the body and allows

Global share of hydraulicmining excavator market:

patients to maintain their quality of life, and it is expected toApproximately

30%

Weight of molded plastic
rear door module:30% reduction (compared to steel)make its mark in pediatric oncology, which entails great physi-

Hitachi Construction Machinery’s hydraulic excavators,

cal strain. The global share of Hitachi’s highly reliable particle

wheel loaders, and dump trucks are used at construction

a substantial reduction in weight compared to conventional

therapy system has been rising.

sites and mines around the world.

steel products. Japan’s first plastic rear door module (according

Hitachi Chemical’s molded plastic rear door module achieves

Hitachi Sustainability Report 2017

Contents

7

Introduction

Management Approach

Activities

Performance Data

Introduction

to Hitachi Chemical findings) has been made into reality, taking

services to meet society’s needs for environmental conservation,

value and lifestyle innovations to society and people aroundadvantage of resin’s superior workability to enable designs notaccident elimination, and traffic congestion reduction.

the world. Hitachi also helps reduce environmental impact by40

possible with steel without sacrificing rigidity and strength.
Global share of air flow sensor market:
Main Products and Services
Semiconductor- and display-related materials, printed wiring board and relatedmaterials, automotive parts (molded plastic products, etc.), energy storage
devices, specialty steels, magnetic materials and components, high-grade
casting components, wires and cables
Principal Consolidated Subsidiaries (as of March 31, 2017)
Hitachi Chemical Company, Ltd., Hitachi Metals, Ltd.

Approximately%(as of March 31, 2016)

making an ongoing effort to improve products’ energy efficiency.
Home applianceproducts:

Sold in over120

countries and regions

Hitachi Automotive Systems’ air flow sensor is widely used

Hitachi Appliances markets various home appliancesby automakers around the world and commands the highest

products in over 120 countries and regions. By providing

global share. It accurately measures the volume and temperaturehome appliances in accordance with each country’s andof the air intake and contributes to a more efficient engine.

region’s needs, we continue to contribute to improving

Main Products and Services
Engine management systems, electric powertrain systems, drive control
systems, car information systems
Principal Consolidated Subsidiaries (as of March 31, 2017)
Clarion Co., Ltd., Hitachi Automotive Systems, Ltd., Hitachi Automotive
Systems Americas, Inc.

quality of life.
Main Products and Services
Refrigerators, washing machines, vacuum cleaners, room air conditioners,
air-conditioning equipment
Principal Consolidated Subsidiaries (as of March 31, 2017)
Hitachi Appliances, Inc., Hitachi Consumer Products (Thailand), Ltd., Hitachi
Consumer Marketing, Inc.

Hitachi Chemical’s molded plastic rear door module.

Revenue

Adjusted operating income

1,464.6 billion yen

119.9 billion yen

EBIT

123.3 billion yen

Hitachi Automotive Systems’ air flow sensor.

Automotive Systems

Hitachi Appliances’ robot cleaner “minimaru.”

To contribute to the realization of an affluent society by creating
new value-added systems, products, and services throughthe harmonization of people, vehicles, and society, Hitachi is

Revenue

992.2 billion yen

Adjusted operating income

56.3 billion yen

EBIT

65.8 billion yen

accelerating its technological development in the fields ofRevenue

557.3 billion yen

environment and safety. We will further develop our Advanced
Vehicle Control System, integrating our safety and information

Smart Life & Ecofriendly Systems

technologies with the Hitachi Group’s social infrastructure

Hitachi’s home appliances, lighting and housing equipment,
and refrigerating and air-conditioning solutions deliver new

Adjusted operating income

22.4 billion yen

EBIT

31.8 billion yen

Note: We conduct a broad range of business activities from product development to production,
sales, and servicing in eight segments in all, including “Others,” in addition to the above.

Hitachi Sustainability Report 20178

Contents

Introduction

Management Approach

Introduction

Revenue and Share by Segment(Consolidated for fiscal 2016, based on IFRS)Others (Logistics and Other Services)653.7 billion yen (6.5%)
Smart Life & Ecofriendly Systems
557.3 billion yen (5.5%)
Automotive Systems
992.2 billion yen (9.8%)

Financial Services
179.2 billion yen (1.8%)
Information & Telecommunication Systems
1,982.8 billion yen (19.7%)
Subtotal of Revenue
by Segment
10,086.3 billion yen
Consolidated Revenue

High Functional Materials & Components
1,464.6 billion yen (14.5%)

Social Infrastructure & Industrial Systems
2,331.9 billion yen (23.1%)

9,162.2 billion yen

Electronic Systems & Equipment
1,170.3 billion yen (11.6%)

Construction Machinery
753.9 billion yen (7.5%)

Revenue and Share by Region(Consolidated for fiscal 2016, based on IFRS)

Asia
Number of Companies:
Number of Employees:

1,860. 7 billion yen (20.3%)
325
86,649EuropeNumber of Companies:
Number of Employees:

972.6 billion yen (10.6%)133
14,808

North America
Number of Companies:
Number of Employees:

1,144.0 billion yen (12.5%)
97
20,071Other Areas
Number of Companies:
Number of Employees:

427.1 billion yen (4.7%)
101
12,615

Japan
Number of Companies:
Number of Employees:

4,757.6 billion yen (51.9%)
209*1
169,744

Revenue by Region
Japan: 4,757.6 billion yen
Overseas: 4,404.5 billion yen*1 Including Hitachi, Ltd. and 208 consolidated subsidiaries, totaling 209 companies in Japan.

Activities

Performance Data

Hitachi Sustainability Report 20179

Contents

Introduction

Management Approach
Management Approach

Management Approach09

Leadership10–11
CEO’s Message

10

Executive Officer’s Message: CSR and the Environment

11

Recognition of Social Responsibility
Realizing Sustainable, Innovative Management

12–26
14

Understanding Issues Through Dialogue andTaking Part in Initiatives
Review and Improvement of CSR Activities	Enhancing CSR Management

22
27–31
29

Activities

Performance Data

Hitachi Sustainability Report 2017

Contents

Leadership

10

Introduction

Management Approach

Activities

Performance Data

Leadership

CEO’s Message

Making a Difference
on the World’s
Most Pressing Issues

In 2015 the United Nations identified 17 Sustainable Development Goals(SDGs) targeting the most pressing issues that face the global community.
The following year, the epoch-making Paris Agreement on long-term, drastic
reductions in greenhouse gas emissions entered into force.
At Hitachi, we believe that by combining our long-cultivated expertise in
infrastructure with our revolutionary IT offerings, we can contribute to these
global goals. To this end, we are actively working to advance our Social
Innovation Business, building on our longstanding efforts to improve quality oflife for large numbers of people by providing a wide range of products andservices. Of course, like other companies, in recent years we are increasingly
called upon to consider how the value our products and services create isreceived by and impacts society.
To further deepen our integration of business and sustainability amid thesechanges in the business environment, in April 2017 we launched the Executive
Sustainability Committee. Meeting members are tasked with examining
sustainability-related measures based on an understanding of the trends andneeds of international society. I myself chair the meeting, which includes top
Hitachi executives, business unit CEOs, and related department heads,
and I look forward to reporting on our progress from next year in the Hitachi
Sustainability Report and Hitachi Integrated Report.
Through its diverse range of current and future business activities, Hitachi
will contribute significantly to resolving social and environmental issues andestablishing an inclusive, harmonious, and prosperous world. To achieve this,we will continue to promote innovative solutions and collaborative creation
with our business partners and stakeholders. At the same time, throughresponsible corporate conduct, we will reduce and mitigate negative impacts
on people and the global environment and actively contribute to achieving
global targets like the Sustainable Development Goals.
This is what “sustainability” means to Hitachi.

Toshiaki Higashihara
President & CEO
Hitachi, Ltd.

Hitachi Sustainability Report 2017

Contents

11

Introduction

Management Approach

Executive Officer’s Message: CSR and the Environment

Representative Executive Officer
Senior Vice President and Executive Officer

creativity and achieving higher productivity and efficiency, weDevelopment Goals (SDGs).

have launched a Work-Life Innovation Project for a Creative

At Hitachi, the first meeting of the Executive Sustainability

Future designed to encourage workstyle diversity. Suggestions

Committee was held in April 2017 to advance a sustainability

by employees and best practices are shared over the intranet,

strategy that includes contributions to the attainment ofand initiatives are promoted on a Group-wide basis in keeping

the SDGs and other related measures. Each business unit

with President and CEO Toshiaki Higashihara’s message forhas named an officer in charge of promoting Hitachi’s

employees to use the increase in their free time—secured

sustainability strategy; the mission of these officers is to takethrough workstyle reforms—for their self-edification.
Hitachi Sustainability Report 2017 contains an overview

with Hitachi’s sustainability strategy and to incorporate theof these and many other initiatives undertaken to fulfill our

Hitachi Environmental Innovation 2050 targets into their businesscorporate social responsibilities.

strategies for implementation from a long-term perspective.

We will further advance our sustainability strategy and do

Our major activities and achievements during fiscal 2016

our best to disclose information in an appropriate manner ininclude the following.
In the area of governance, we have expanded the Hitachi
Global Compliance Program to ensure thoroughgoingcompliance and are making ongoing efforts to reinforce ourcompliance efforts throughout the Group.
We are also bolstering our environmental initiatives with aview to attaining the targets of our Environmental Action Plan

General Counsel & Head of Corporate Communicationfor 2018. One key performance indicator is CO2 emissions of

Head of Risk Management

our products and services; we have established a target ofGeneral Manager of Legal and Communications GroupAs part of Group-wide workstyle reforms aimed at bolstering

measures to contribute to the attainment of the UN Sustainable

responsibility for linking the operations of the business units

Toshiaki Kuzuoka, Hitachi, Ltd.

Performance Data

Leadership

Many governments and companies are now implementing

Hitachi’s Efforts toPromote Sustainability

Activities

General Manager of Risk Management Group

40% reductions in fiscal 2018 and are well on our way toGeneral Manager of Corporate Hospital Group

achieving this target, as we were able to reduce emissions by
35% in fiscal 2016.

contributing to the resolution of social issues through ourSocial Innovation Business.

Hitachi Sustainability Report 2017

Contents

12

Introduction

Recognition of Social Responsibility

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Hitachi’s Aims: Achieve Management That Is Ever Responsive to the Expectations of Society
We are actively advancing our CSR activities to meet society’s expectations based on an accurate perception of the impact of our operations on society and oursocial responsibilities. We are contributing to the resolution of social issues through our Social Innovation Business, which combines advanced IT with infrastructuretechnologies developed over many years, and are conducting dialogue with all our stakeholders to identify and contribute to the identification of social issues.
Of particular note in fiscal 2016 was the start of management-level deliberations on how we can contribute to society through our Social Innovation Businesswhile paying heed to the United Nations Sustainable Development Goals (SDGs), which came into force in January 2016.

Fiscal 2016 Overview of Activities
In fiscal 2016, we formulated our long-term environmental targets for 2050 and worked to promote understanding of the Sustainable Development Goals (SDGs)
inside the company. We also made an effort to communicate interactively with our stakeholders, such as by actively conducting stakeholder dialogue in andoutside of Japan.
Main Plans and Results
Realizing Sustainable, Innovative Management
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Recognition of stakeholder expectations;· Formulate long-term environmental policies· Announced long-term environmental targets★★

· Launch Executive Sustainability Committee;

identification of social responsibilities to fulfill· Hold workshops to promote understanding· Held workshops on scaling up SDGs andhave each business unit/Group company

in business activities and social issues toof the importance of sustainability

business activities at the Water Business Unit

formulate and promote a sustainability
strategy that includes SDGs

address through business★★★

· Continue policy of disclosure and open

Promotion of innovative R&D that contributes· Continue to actively communicate research· Issued 35 press releases (17 related toto resolving customers’ or society’s issues

activities and achievements

open innovation)

innovation· Continuously achieve recognition for· Received nine awards for world-leading· Continuously achieve recognition forworld-leading innovative researchinnovative research, such as the Industrial

world-leading innovative researchStandardization Awards, Minister of
Economy, Trade, and Industry Award, andContemporary Master Craftsman award

Hitachi Sustainability Report 2017

Contents

13

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Understanding Issues Through Dialogue and Taking Part in Initiatives
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Recognition of company’s impact on· Recognize issues and achieve improvements· Held stakeholder dialogues around the★★★

· Continue building relationships and engaging

society through interactive communication

by building relationships and engaging inworld with NGOs and shared experiences,with stakeholders

dialogue with NGOs

information· Pursue proactive PR activities· Examined social issues and solutions inin dialogue with NGOs★★★

· Promote PR activities of both social anddesignated areas in Japan and overseas withbusiness activities

various business units and Group companies(1) C reate new Social Innovation Businessactivities by partnering with governmental· Shared activity policies and case studies

and international institutions

with PR officers of US Group companies(2) F ormulate SDG-based assessment
index of social businesses· Establish a global public relations structurethat capitalizes on Hitachi’s strengths as botha Japanese and international company· Hold stakeholder dialogues· Held stakeholder dialogues in India,★★

each country and reflect the conclusions in

Europe, Australia, Singapore, and China;
started preparing for stakeholder dialogues

business activities

in North America; discussed issues on· Hold stakeholder dialogue more than once

disclosure in Europe

a year on policies and important themes· Discussed Integrated Report disclosure

under review in North America, Australia,
Europe, China, India, and Singapore

issues at the dialogue in Europe★★★: Achieved ★★: Partially achieved· Continue with stakeholder dialogues in★★★

· Advertise in 16 countries, including· Advertise in 19 countries, including· Ran ads and TV commercials on two

Japan, as part of a global integrated

themes, respectively, in 19 countries,

Japan, as part of a global integrated

brand campaign

including Japanbrand campaign★: Not achieved

Hitachi Sustainability Report 201714

Contents

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Realizing Sustainable, Innovative Management
Hitachi’s Approach

Trends in Society and Hitachi Group Identity

The implementation of our plan is a way for us to fulfill ourSociety is today undergoing great changes and faces a range

responsibilities as a good corporate citizen through robust,

Executive Sustainability Committee Initiativesof challenges, from environmental issues and natural resource

diverse governance; the pioneering spirit and strong ethicalIn April 2017, Hitachi, Ltd. launched the Executive Sustainability

and energy constraints to poverty, inequality in education,

stance of our employees; and operations that help address

Committee to discuss and reach decisions on the Group’s

diseases, and population concentration in cities. Hitachi’senvironmental and other issues. We comply with the laws andsustainability strategy. The committee comprises President andCorporate Credo is to contribute to society through theregulations of all countries and regions in which we operate

CEO Toshiaki Higashihara and other members of the Senior

development of superior, original technology and products.

and pursue our activities in line with the Hitachi Group Codes

Executive Committee, along with the CEOs of various

We created our Group Vision in May 2013, at the start of theof Conduct.

business units (BUs).

2015 Mid-term Management Plan, with the aims of delivering

The inaugural meeting on April 25 addressed such issues
as the measures to be adopted in helping achieve the UN
Sustainable Development Goals (SDGs) and the setup neededto advance those measures.

innovations that help to answer society’s challenges and ofbuilding a safe, secure, comfortable, and fair society.
The Group Vision indicates the path to the next stage of
growth. We draw on the ethics and values that Hitachi has

Each BU will henceforth assign sustainability strategy

developed over the past 100 years—encapsulated in our

promotion officers in an effort to strengthen the measures andCorporate Credo and Founding Spirit—while continuously

organizations needed to help achieve the SDGs andconsidering the next generation. We look ahead to the longer

promote sustainability.

term, while promoting corporate activities informed by sensitivity
to the needs of a changing society. Our Mid-term Management
Plan is the action plan we define to realize this vision; byintegrating our management and CSR strategies, we seek toenhance the effectiveness of this approach.

Hitachi Sustainability Report 201715

Contents

Introduction

Management Approach
Recognition of Social Responsibility

Trends in Society and Hitachi Group Identity
Hitachi Group Identity
Megatrends*1
Rapid urbanization
Climate change and resource scarcity
Demographic change
Shift in global economic power
Rise of technology

Achieving a Sustainable Society
Securing water resources, energy, and food
Replacing aging infrastructure systems

The mission that Hitachi
aspires to fulfill in society

MISSION

The values crucial to
the Hitachi Group inaccomplishing its mission

VALUES

Contribute to society through the development ofsuperior, original technology and products.

Hitachi Founding Spirit:

Harmony, Sincerity, Pioneering Spirit

Reducing CO2 emissions
Improving transportation systems
Dealing with the low birthrate and aging
population
Promoting material recycling

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

VISION

What the Hitachi Groupaims to becomein the future

Direction of our management strategies

Rules for fair corporate behavior

Mid-term Management Plan

Codes of Conduct

Business plans

Companies’ regulations and standards*1 As identified in “Five Megatrends and Possible Implications,” published in 2014 by PwC.

Activities

Performance Data

Hitachi Sustainability Report 201716

Contents

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Hitachi’s Social Innovation Business

Innovation Management

Focus Business Domains and Key Initiatives

We work with stakeholders to recognize issues society and ourcustomers face, including global environment problems, andPower/Energy

are contributing to the resolution of social issues through ourSocial Innovation Business, which combines advanced IT with
infrastructure technologies developed over many years.
In May 2016, we formulated our 2018 Mid-term Management
Plan, which will culminate in fiscal 2018. Under the plan, we
aim to become an Innovation Partner for the IoT Era centered

Industry/
Distribution/Water

Research and Development Direction
As an Innovation Partner for the IoT Era, Hitachi has identified“power and energy,” “industry, distribution, and water,” “urban,”Transition to distributed power

Use Lumada*1 IoT platform tosupply utilizing IT

optimize value chains for industry

and “finance, public, and healthcare” as the four focus busi-• Microgrid, regional energy

and distribution

ness domains in which to advance its Social Innovation Busi-

management• Renewable energy

Investment Focus• Strengthening engineering

ness by accelerating collaborative creation with customers.
The role of the Research & Development Group is toon our Social Innovation Business, seeking to expand the sales

Investment Focus• Predictive maintenancerespond to the challenges faced by customers throughratio of frontline operations that develop and deploy services• Strengthening grid and engineering• Optimized factorycollaborative creation and technology development to leadmeeting the diverse needs of global society to 40% and to• Predictive maintenanceincrease our overseas sales ratio as a whole to 55%. We will
Urban

expand our frontline operations by evolving and enhancing ourSocial Innovation Business through digital technology andpromoting it overseas in the focus business domains of “powerand energy,” “industry, distribution, and water,” “urban,” and“finance, public, and healthcare.”connecting social infrastructure, products, and people.
Social Innovation Business2018 Mid-term Management Plan

Finance/Public/
Healthcare

Improvement of quality of life

FinTech, My Number

in communities

Healthcare service (platform)

From rail as a service to outcomedeliveryWe will continue to provide optimum solutions to society’s
issues with advanced network technologies that are capable of

the Social Innovation Business.
R&D will be pursued in accordance with a directive to“create business innovation in an era of uncertainty.”
Hitachi will contribute to resolving increasingly global
and complex challenges in society through its Social Innovation Business.

Investment Focus• Strengthening healthcare informatics

Investment Focus• Development of urban solutions• Expansion of the rail business area
*1 Hitachi’s open and highly versatile IoT solution platform using software technology to obtain
new information from integrating and analyzing data and running simulations.

Customer-Driven R&D and Hitachi’s Business
Structure
To accelerate collaborative creation with customers, theResearch & Development Group was realigned into a morecustomer-driven research structure in April 2015. The threeresearch laboratories in Japan—the former Central ResearchLaboratory, Hitachi Research Laboratory, and Yokohama
Research Laboratory—were consolidated along with the Design
Division and overseas research centers and regrouped into the
Global Center for Social Innovation (CSI), the Center for Technology Innovation (CTI), and the Center for Exploratory Research(CER). This R&D structure supports the new market-driven business structure created in April 2016 along the lines of the “Front”(the customer interface), “Platform,” and “Products.”

Hitachi Sustainability Report 2017

Contents

17

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Front business units (BUs) as well as regional centers aroundapplications and platforms that contribute to the creation of

Lumada’s Evolution in Support of Hitachi’s Social
Innovation Businessthe world to develop services meeting the needs of customers

visionary innovations. The CER is conducting cutting-edge

Through collaborative creation, Hitachi creates new value by

in each region. The CTI is working with the Platform BUs that

research toward realizing a human-centric society that pursues

designing, verifiying, and simulating business models based onprovide the backbone of Social Innovation, as well as the Prod-the fundamental human goals of “experience and well-being,”

challenges and visions shared with the customer. To enable

uct BUs that provide the highly competitive key components

by working in collaboration with various research institutions tothis, an open and secure platform that can connect the differ-that support services, to generate digital solutions combining

resolve future societal challenges.

ent systems of stakeholders is required. Thus in 2016, Hitachi

Under this new structure, the CSI is working with the 12

prototypes together with customers, thereby developing

OT (operational technology) and IT, and provide new value

launched the Lumada IoT platform and began offering related

to customers in various fields. In December 2016, the Open

services. The Research & Development Group is using

Laboratory was established within the Yokohama Research

NEXPERIENCE, a systemized process facilitating collaborative

Laboratory to use Hitachi’s latest technologies to develop

creation with customers, to generate Lumada customer cases,
as well as developing solution cores using innovative technology,
such as AI and analytics, as the common platform.

Research & Development Group Structure

Business Structure from FY 2016

R&D Structure from FY 2015
Global Center for Social Innovation (CSI)

Customers
Front
Regional bases
Customer segments (12 business units)

PlatformCore of Social Innovation

Products
Industrial products, automotive parts, materials, etc.

Developing services in keeping with the needs of customers in each region
North America: 100

Europe: 70

China: 115

APAC: 65

Japan: 200(Total: 550 people)

Center for Technology Innovation (CTI)

Establishing global number-one technologies(Platform, Products)
Japan: 2,050 people
Center for Exploratory Research (CER)

Resolving future societal issues
Japan: 100 people

Hitachi Sustainability Report 2017

Contents

18

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Accelerating Collaborative Creation with
Customers Worldwide

CSI-Europe is participating in the creation of new markets

Further, as part of efforts toward realizing Society 5.0,

through European-led standardization activities, addressing

Hitachi announced its Vision Design project to consider the

The market for Hitachi’s Social Innovation Business is expanding

challenges facing mature society by developing solutions with

future role of technology in people’s daily lives. Focusing on

globally. To be able to respond to the increasing number of

key institutions. In April 2017, a new office was opened in

the four main themes of “school education,” “public safety,”collaborative creation projects, CSI is located in five key

London to accelerate the development of digital solutions.

“aging support,” and “meal experience,” Vision Design proposes

regions—Japan, Asia-Pacific (APAC), North America, China,

Also launched the same month was the Insights Laboratory,

and Europe, with about 350 of the approximately 550 CSI

a global hub for collaborative creation between regional CSIs

personnel being assigned outside of Japan.

and customers. The laboratory will work closely with the Hitachi

CSI-Tokyo is using methodologies developed throughdesign and service research to pursue collaborative creation of

new ways in which technology can augment human initiatives
in support of people requiring assistance.
Globally, in addition to working closely with Stanford

Insight Group, established in May 2016, to accelerate theUniversity in the field of autonomous driving technology, in

global expansion of Lumada.

2016 Hitachi became a board member of the Hyperledger
Project for blockchain technology, an area of rising interest in

solutions together with customers.

Promoting Open Innovation

FinTech and other fields. Additionally, Hitachi is one of 46

solutions in collaboration with customers using data science,

To realize innovative technology development that cannot begroups from North America, Europe, and Asia participating inmachine learning, and software engineering. In addition to theachieved by one company alone, Hitachi has created an open

the OpenFog Consortium and plays a key role in the Japan

existing centers in India and Singapore, R&D personnel have

R&D environment, working with research institutes, universities,

regional committee.

been assigned to a new center in Australia.

and customers both within and outside of Japan. From fiscal

In fiscal 2016, research collaboration was conducted with2015, the CER has become an open innovation hub to co-create

65 research institutes outside of Japan and 243 within Japan.

the seeds for the Social Innovation Business of the future.

Collaboration with researchers outside of Japan is being further

In Japan, joint research laboratories were establishedstrengthened through such programs as the Hitachi Researchlaboratories launched in 2016 include the Financial Innovation

within the University of Tokyo, Kyoto University, and Hokkaido

Visit Programs (HIVIPS), established in 1985 to invite researchers

Laboratory and the Digital Solution Platform Laboratory, which

University in June 2016 to work toward the realization of ato work for a fixed term in labs in Japan.

aims to strengthen IoT platform research.

“Super Smart Society” (Society 5.0)* proposed by the Japanese

CSI-APAC is creating energy, transportation, and urban

CSI-North America is building a big-data analytics platform
to collaboratively create advanced solutions in such areas asenergy, communications, finance, and healthcare. New

1

CSI-China is developing such products as elevators andgovernment. In April 2017, the Hitachi Kobe Laboratory was

ATMs through collaborative creation with customers to realize

opened within the Kobe Biomedical Innnovation Cluster as asolutions for “Made in China 2025,” a policy being promoted bydevelopment facility to achieve practical applications for

the Chinese government to advance the manufacturing sector,

regenerative medicine. These centers will seek insights intoand other industrial policies, such as that for a low-carbon

future societal challenges and propose visions and innovations

society. In 2016, a new center was opened in Guangzhou,that can both resolve those challenges and contribute toa major manufacturing hub in southern China, complementing

economic development.

existing facilities in Beijing and Shanghai.

*1 Super Smart Society (Society 5.0): A term used in the 5th Science and Technology Basic
Plan released by the Japanese government to refer to a new type of society that will be
led by innovations in science and technology, following on from the hunter-gatherer,
pastoral-agrarian, industrial, and information societies.

Hitachi Sustainability Report 2017

Contents

19

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Hitachi and Hokkaido University Receive Imperial

R&D Ethics Reviews

date for practical applications within three to five years.

Invention Prize for Real-Time Tumor-Tracking Particle

In September 2000, Hitachi established an ethical review

Frontier and Platform Research aims to strengthen customer

Beam Cancer Therapy Systemcommittee to oversee the handling of information from humancollaborative creation and technical platforms and to create

At the fiscal 2018 National Commendation for Invention, Hitachi

genome analysis. It was the first such committee to be estab-new businesses.

and Hokkaido University were jointly awarded the Imperial

lished by a private company in Japan. The majority of the

In fiscal 2017, investment in Frontier and Platform Research

Invention Prize for a real-time tumor-tracking particle beamcommittee members are external experts, and the committee

was concentrated on the four focus business domains identified

cancer therapy system (Japanese patent no. 05896211). The

meets two or more times a year to review Hitachi’s activities

in the 2018 Mid-term Management Plan—power and energy;

award recognizes the most outstanding inventions of the year.

with reference to the in-house ethical guidelines that wereindustry, distribution, and water; urban; and finance, public,

In particle beam cancer therapy, particles such as protons

prepared based on government documents, such as theand healthcare—as well as digital solutions (Social Innovation(hydrogen nuclei) and carbon ions are accelerated to create a“Ethical Guidelines for Human Genome/Gene Analysis

Business using digital technology) that will contribute to theparticle beam that is focused on the tumor. Almost painless

Research” and the “Ethical Guidelines for Clinical Research.”*1

evolution of the Lumada IoT platform.

and causing relatively few side effects compared to other

All Hitachi business divisions and Group companies whose

Hitachi will continue to pursue R&D aligned with its

forms of radiotherapy, this cutting-edge technique is being

activities require review are expected to show a high level ofcorporate strategy in order to contribute to the expansion andintroduced at an increasing number of medical institutions incorporate social responsibility and to maintain high ethicalaccelerated global deployment of its businesses.

Japan and worldwide. However, as tumors in the lung, liver,standards among their researchers and staff.

and other internal organs move frequently due to respirationand other factors, the need for a technology that can accurately
determine the location of moving tumors has long been recog-

Key Indicators*1 The guidelines’ in-house name was changed on October 1, 2015, by the Hitachi ethicalreview committee to “Ethical Guidelines for Medical and Health Research Involving
Human Subjects.”

R&D Expenditure (Hitachi Group)

nized. This new, jointly developed system combines Hitachi’s(billion yen)spot-scanning irradiation technology with Hokkaido University’s

500

real-time tumor-tracking radiotherapy in a single, complete

R&D Planning and Budget

450

therapeutic device that can quickly and accurately irradiate

R&D investment by the Hitachi Group is equivalent to about

400

moving tumors, reducing the burden on patients. The Hokkaido

4% of revenue, approximately one-fifth of which is used by the

University Hospital has been treating patients using thisResearch & Development Group. Research categories aretechnology since 2014.

divided into two categories: (1) Sponsored and Advanced

The National Commendation for Invention was inaugurated

Sponsored Research and (2) Frontier and Platform Research.

in 1919 and is considered Japan’s most prestigious award in

The former is financed by business units and Group companies

the field of invention.

and is based mainly on business roadmaps from business unit
initiatives. The latter is led by the Research & Development
Group and is based on medium- to long-term technology
plans. The aim of Sponsored and Advanced SponsoredResearch is to expand and grow core businesses with a target

350

3.8%

341.3

3.7%

351.4

3.4%

3.3%

335.5

333.7

2014

2015

3.5%

323.9

300
0
Research investment

2012

2013

R&D expenditure as % of revenue

2016

(FY)

Hitachi Sustainability Report 2017

Contents

20

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Intellectual Property

Allocation of Research & Development Group Funds

Actions in the Intellectual Property Field
Frontier and Platform
ResearchSponsored Research

48%

33%

Allocation of
R&D Funds*1
FY 2017

Division has operated an international job training system,

strategy. We protect the innovations emerging from our R&D,

sending trainees to IP law firms and Group companies inas well as the Hitachi brand, through patent, trademark, andEurope and the United States and to study abroad. In fiscal

other IP rights, along with strict management of trade secrets,

2016, two trainees went to the United States, two to Germany,

while providing remuneration and incentive awards for inven-and one to Singapore, while one employee was sent to thetors. Furthermore, as our Social Innovation Business expands

United States to study.

partners increase, we handle IP acquired from other parties

19%

with care.

Proportion of research related todigital solutions

76%
FY 201768%
FY 2017

Building a Global Patent Portfolio

Key Indicators
Patent Application Ratios by Country or Region(%)
FY 201243

9development of a global patent portfolio to ensure worldwide

FY 2013

41

9

9

7

6

28

protection for innovations emerging from our R&D and prevent

FY 2014

41

9

9

8

6

27

competitors from imitating the technological advantages that

FY 2015

41

9

9

7

5

29

FY 201643

One of the IP activities supporting our global operations is theset us apart. The portfolio also enables us to demonstrate*1 Roughly 20% of total Hitachi Group R&D expenditure.

resources. Since fiscal 1964, Hitachi’s Intellectual Property

Intellectual property (IP) is a key element of Hitachi’s businessand opportunities for collaborative creation with customers andAdvanced SponsoredResearch

Proportion of research related tofour focus business domains

Another key issue is developing globally minded IP human

the advantages of those technologies to customers and provide patent licenses to other companies, spurring further collaborative creation. We increased our patent application ratio
outside Japan from 47% in fiscal 2009 to 57% in fiscal 2016,
and we will continue to efficiently build and maintain our global
patent portfolio.
In tandem with efforts to globalize our R&D centers,
we are also globalizing our IP hubs. We currently have IP
offices in New York and Santa Clara, California, in the UnitedStates, Beijing and Shanghai in China, and London in the
United Kingdom to protect the innovations generated throughR&D activities outside Japan.

Japan

US

Europe

China

11

8

Other

12

8

6

6

5

PCT*1

*1 International applications filed for Patent Cooperation Treaty coverage.

23

26

Hitachi Sustainability Report 2017

Contents

21

Introduction

Management Approach
Recognition of Social Responsibility

Respect for Intellectual Property

Reward System for Employee Inventions

We respect the intellectual property rights (IPRs) of others, as

We motivate employees in the R&D field with an ample reward

we expect them to respect ours. We follow the Hitachi Groupsystem for new inventions. To make this reward system as fair

Codes of Conduct and conduct preliminary searches of others’

and transparent as possible, we set standards to evaluate

patents when undertaking R&D on new products and technol-

inventions and disclose these standards to employees. We

ogies in order to avoid IPR infringements. For IPRs that belong

also have a mechanism for receiving inquiries about theto others, we obtain licenses from IPR holders before we use

rewards, as well as opinions on the reward system.

the IP. As our Social Innovation Business expands and oppor-

We have established a special division within the Intellectual

tunities for collaborative creation with customers and partners

Property Division to plan and operate this system, while anincrease, we handle IP acquired from other parties with care. If

internal Invention Management Committee made up of R&D,

any company is found to have infringed Hitachi’s IPRs, welegal affairs, personnel management, and IP experts ensuresencourage the counterparty to acquire the necessary licensethat the system operates effectively across the whole Group.

and take legal action if necessary.

The system includes an invention information channel topromote communication between inventors and the business

Hitachi Group Codes of Conduct, 5.3:
Management and Preservation of Company Assets

divisions implementing the resulting patents. Inventors can ask
the business divisions for information about patent implementation and check the evaluation standards used to calculate

Anti-Counterfeiting Activities

the rewards for their inventions. To ensure transparency andProtecting the Hitachi brand is crucial for supporting our global

inventor satisfaction, we also set up an Arbitration Committee

operations. We operate a rigorous regime against such infringe-

for Invention Rewards, composed similarly to the Invention

ments as making and selling counterfeit goods carrying theManagement Committee. Inventors can appeal to this committee

Hitachi brand and illegally applying for or registering trademarks

if they disagree with the amount they have been awarded.

similar to the Hitachi brand.
Until recently, the bulk of counterfeit goods were manufac-

From fiscal 2005, we have given President’s Awards to the
top 100 inventors. Since fiscal 2006, we have also given

tured in China, but over the past several years manufacturing

awards to the top 50 young inventors (under 35 years old)

methods and sales routes have become more sophisticatedbased on patent application rewards received within five years

and diverse, which has spurred us to take further action.

of their joining Hitachi.

To stamp out counterfeit goods, it is also important to teachgeneral consumers not to buy them. Hitachi conducts ongoing
consumer awareness activities to eliminate counterfeit goods.

Activities

Performance Data

Hitachi Sustainability Report 201722

Contents

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Understanding Issues Through Dialogue and Taking Part in Initiatives
Hitachi’s Approach

Stakeholders

Main Roles

Customers

Creation of better products andservices, response to complaints,
appropriate disclosure of information
on products and services

Hitachi promotes its Social Innovation Business withMain Divisions
Quality Assurance
Sales

Means of Communication
Customer satisfaction activities
MarketingWebsiteAdvertisement activities

creation with customers and other stakeholders to

Financial results briefings (quarterly)
General shareholders’ meetings (annual)IR events, one-on-one meetings (about
700 times/year)
IR tools: Integrated Report, business
reports, etc.

Stakeholder Engagement
pp. 22–26

Suppliers

Building of fair and sound business
relations, smooth information sharing
toward better partnerships

Procurement

Procurement activities
Supplier meetings
CSR monitoring (316 companies/year)
CSR audits (20 companies/year)

Supply Chain Management
pp. 71–75

Employees

Active utilization, proper treatment,
promotion of occupational health andsafety of human capital

Public Relations
Human Capital

Intranet, in-house newsletters
Training
Town hall meetings between senior
management and employees (16 times/
year)
Employee surveys (annual)

Diversity and Inclusion
pp. 55–57

Stakeholder Engagement
Communication with Stakeholders

businesses, and we will continue to globally develop andpromote ways of capitalizing on the opinions of the membersof society with whom we engage in our business activities.

Developing Women’s
Careers
p. 57
Work-LifeManagement
pp. 58–59
Employing People with
Disabilities
p. 59

The outcomes of communication with stakeholders are sharedcorporations are taking in stakeholders’ voices to improve their

Rigorous Information
Management
p. 84

Public Relations
and IRin coordination with various groups.

insights into our business. Public interest is growing in how

Universal Design
pp. 80Timely and proper information
disclosure, fair assessment andsupport from capital markets,reflection of shareholder and investor
viewpoints in corporate management

importance on two-way communication with stake-with respective divisions and actively utilized as valuable

Quality Assurance Activities
pp. 82–84

Shareholders andInvestors

resolve them. In conducting this business, we place
holders and active participation in various initiatives

Customer Satisfaction
pp. 78–79

Adaption for Emerging
Marketsp. 81

efforts to accurately perceive the social issues ineach country or region, followed by collaborative

Pages

National and Local
Governments,
Industrial
Associations

Compliance with domestic andforeign laws and regulations, policy
recommendations, participation inindustry-government-academia
collaborative projects

Government &External Relations

Policy council participation
Participation in business and industry
associations

Stakeholder Engagement
pp. 22–26

Local
Communities

Fulfillment of responsibilities ascorporate citizen, involvement in local
communities

Social Contribution
All Business
DivisionsContribution to local communities
through businessParticipation in volunteer activities

Social Contribution
Activities
p. 87

Academic
Associations andResearch
Institutions

Promotion of technologicalinnovations, participation inindustry-government-academia
collaborative projects

Research andDevelopment

Open innovation (joint research)Innovation
Management
pp. 16–21

NGOs and NPOs

Incorporation of diverse public opinions,promotion of stakeholder-focusedmanagement, social contribution
through nonprofit activities

CSR Promotion

Stakeholder dialogues (4 times/year)
Dialogue through collaboration

Social Contribution
Activities
p. 87

GlobalEnvironment

Realization of a low-carbon society,a resource efficient society,a harmonized society with nature

Environment
All Business
Divisions

Stakeholder dialogues (annual)

Environment
pp. 89–121

Diverse Support Systems
for Employees
p. 60
Occupational Health and
Safetypp. 61–63
Global Human Capital
Development
pp. 64–66
Stakeholder Engagement
pp. 22–26

Hitachi Sustainability Report 2017

Contents

23

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Engagement with Customers

our intranet and other channels tend to be one-way. Town hall

“Hitachi IR Day has become an established, worthwhile IR

meetings, however, are forums for direct dialogue where

event,” and “Direct briefings from CEOs of business units

It is critical for Hitachi to gain stakeholders’ understanding of

employees can gain a real sense of the senior management’s

about their business strategies are important opportunities for

its Social Innovation Business and corporate vision, which

way of thinking and what is needed for Hitachi to make thethose of us in the capital market to deepen our understanding

aspire to realize a sustainable society. We conducted a Global

next leap forward, as well as occasions for reaching a sharedof Hitachi’s various businesses, and we very much hope they

Brand Campaign in 19 countries under the slogan “THEunderstanding of the work in which everyone is involved.

will continue.”

FUTURE IS OPEN TO SUGGESTIONS,” presenting examples

These interactions help drive mindset reform within Hitachi.

We also held briefings to explain our newly constructedof how Hitachi’s Social Innovation Business is helping to

For example, at one town hall meeting, a participant pointed

Lumada IoT platform, and members of senior management

address the many issues societies now face globally, such asout that existing structures and procedures made it difficult forcontinued their practice of visiting institutional investors andenergy issues, depletion of water resources, transportation

junior-level staff to propose new business ideas. This ultimately

analysts in North America, Europe, and Asia twice a year toissues linked to urbanization, healthcare issues associated with

led to the creation of an entirely new way for employees to

explain corporate management policies and business direction,

the graying of society, advancement of big data and othermake business proposals: an internal “New Ideas Contest”

for a combined total of around 700 meetings. In addition, we

information technologies, food safety, and information security.

called “Make a Difference!”

hosted numerous company information sessions tailored to

Global Campaign Rollout

To globally enhance the Hitachi brand, we have held theIn the town hall meetings, we believe that it is important forindividual investors to deepen their understanding of Hitachi. We

Hitachi Social Innovation Forum in locations worldwide, including

senior management to hear the thoughts of frontline employees

are doing our best to report to members of senior management

Brazil, Germany, India, Japan, Myanmar, the United Kingdom,and for both sides to share their awareness as they engage

and to reflect this in management and operations.

and the United States, showcasing examples of the Social

in dialogue on diverse topics, such as how we can grow

Innovation Business being conducted in each region. Throughour business.

We also post briefing materials and business performanceas well as stock price trend charts in a timely manner on our IR
website. Aiming to continuously enhance our information dis-

keynote speeches, panel discussions, and exhibits, we present
a wide range of stakeholders—including customers andPromoting a Proactive IR Approachclosure, we introduced a new responsive design on our website

government officials—with solutions to social issues that

Our investor relations (IR) activities broadly include businessfor improved browsing convenience from smartphones andcountries and regions around the world face today.

strategy meetings, tours of plants and R&D facilities fortablets and created a dedicated page outlining our new

institutional investors and analysts, participation in brokerage-

Mid-term Management Plan.

Engagement with Employees
Enhancing Management-Employee Communication

sponsored investor meetings, and one-on-one meetings withinstitutional investors and analysts.

Since fiscal 2012, we have held town hall meetings as forums

In fiscal 2016, we held quarterly financial results briefings as

for direct dialogue between senior management and employees.

well as corporate strategy meetings presenting our new 2018

In fiscal 2016, President and CEO Toshiaki Higashihara attended

Mid-term Management Plan. We also hosted the seventha total of 16 town hall meetings in Japan, the United States,

annual Hitachi IR Day, where divisional managers from each

China, Singapore, Australia, and other countries.

business unit explained their business strategies and manage-

Ordinary business meetings and conferences are limited inagenda, and company communications with employees via

Investor Relations
Disclosure Policy

Working with Governments and Public Policymakers
External Relations Initiatives

ment policies under the plan. Feedback from institutional

We believe that it is governments that are best positioned to bothinvestors and analysts was positive, with comments including

understand and work to resolve social issues, whether at theHitachi Sustainability Report 2017

Contents

24

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

national or regional level. As we develop our Social Innovation

as chair of the Japan Electronics and Information Technology

advocated by the Japanese government, exploring ways toBusiness on a global scale, our activities in the social infrastruc-Industries Association (JEITA) between May 2016 and May

simultaneously resolve social issues and achieve economic

ture field are particularly intertwined with the public interest.

2017 was one way he has brought Japanese corporations

growth. Chairman Nakanishi has been a member of the New

This makes government institutions and related organizations incloser together and contributed to establishing an appropriate

Industrial Structure Committee since its founding in 2015

Japan and other countries around the world important partners

relationship between business entities and society.

under the Industrial Structure Council of the Ministry of

to Hitachi both as customers and as backers.
Today’s global community urgently requires solutions for a

Economy, Trade, and Industry, playing a key role in discussions
Promoting External Relations

for the formulation of a New Industrial Structure Vision to help

range of social issues related to the environment, energy, aging

Hitachi established the Government & External Relations

Japan take the lead in the fourth industrial revolution of innova-

societies, and urbanization. At the same time, innovation in the

Division in our corporate headquarters in fiscal 2009 to guidetions based on IoT, big data, and AI. He has also been afields of internet of things (IoT) and artificial intelligence (AI)—and accelerate the external relations of the entire Hitachi

member of the governmental Council on Investments for thethe so-called fourth industrial revolution—is advancing rapidly.

Group, and we have since worked to strengthen our relationships

Future since its first meeting in September 2016. The council is

Like the Japanese governement and its “Super Smart Society”

with government and industrial organizations. In fiscal 2016,a new command post for the government’s growth strategy,(Society 5.0) proposal, governments around the world are

we reorganized the division to achieve our new goals of further

chaired by the prime minister of Japan. As a representative of

expanding their support systems in response to these develop-

enhancing the global expansion of our Social Innovationa corporation contributing to the realization of “Society 5.0,”

ments. For Hitachi, promoting our business according to legis-

Business in terms of external relations.

Chairman Nakanishi makes proposals in areas including thelative policies and making effective use of governmental advice

The Government & External Relations Division is not onlyand support systems is enormously helpful to us in advancing

active in Japan but also works with the Hitachi Corporate Office

our Social Innovation Business. We also increasingly receivein Washington DC, the Hitachi Corporate Office, Europe, andhave also participated in meetings and roundtable discussions

requests for proposals from the Japanese government as they

other business locations in the Americas, Europe, and Asia. By

that look into policy from the standpoint of expanding businesses,

seek to identify solutions for social issues and craft infrastruc-dealing with governments and organizations as a unified Group

as well as cooperating in planning new policies for Japan,

ture support policies to resolve unique regional challenges.

in seeking mutual benefit with the communities we participate

including specific recommendations for more effective policy

Assisting with these requests, whether directly or through par-in, we uncover new business opportunities for Hitachi in eachplanning and implementation.

ticipation in an economic organization or industrial body, is one

community’s unique social issues and policies. We contributeway Hitachi contributes to a better society.

to better societies in Japan and around the world throughuse of data and open innovation.
Staff from the Hitachi headquarters and business departments

Participating in Business and Industry Associations

The senior management of Hitachi actively embrace theirbusiness activities balanced against harmonious relationships

Membership in business and industry associations is anothersocial responsibilities. For example, Chairman of the Board andwith governments and economic organizations worldwide.

critical aspect of our external relations. Hitachi is a member ofRepresentative Executive Officer Hiroaki Nakanishi takes part in
the Council on Investments for the Future, newly founded in

Keidanren, where Chairman Nakanishi has served as vice chair
Policy Council Participation

since June 2014. He also chairs the Committee on South Asia

September 2016 by the Japanese government, as one of the

As part of our dialogue with government officials, Hitachi

and the Committee on Information and Telecommunication

representative members of the business world, and also serves

executives and other representatives participate in a range of

Policy (as of July 2017). Other executives and employees

as vice chairman of Keidanren (Japan Business Federation),government-sponsored policy councils. We are particularly

participate in the Industrial Policy, Labor Policy, Innovationa major economic organization. President Higashihara’s service

active in the discussion of how best to realize “Society 5.0,”

Policy, Regional and Bilateral Relations, and other major

Hitachi Sustainability Report 2017

Contents

25

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Keidanren committees. As the planning and coordination chair

impact of US government policies and legislation on our busi-

makes policy contributions to EU institutions through businessfor the subcommittee on Europe, we also conduct activities

ness activities. To promote mutual understanding and improveand trade associations like BUSINESSEUROPE, DigitalEurope,with Japanese and European governments, while maintaining

business opportunities, we communicate to key stakeholders

and the Japan Business Council in Europe (JBCE). We also

close economic relations with European governments andon how Hitachi can contribute to the growth of US society.

participate in the European Commission Product Environmental

For example, we share information gathered by the

Footprint (PEF) pilot project as part of our environmental policy

In fiscal 2016, President Higashihara served as chair of

Washington office with Group companies, exchanging reports

activities, exchanging opinions and supporting the development

JEITA, initiated new business models, and launched freshon key laws and regulations that affect management and busi-of new policies.

concepts with an eye to the future. For example, he spear-ness, analyzing their impact, and responding appropriately. To

Regarding non-financial information disclosure and conflictheaded an initiative to dramatically overhaul the major CEATEC

increase the effectiveness of these activities, we engage withminerals regulation, we maintain ongoing dialogues with repre-

JAPAN event, transforming it in a single year from a general fairexternal business associations, think tanks, and academic

sentatives responsible for European policy, business associa-

for cutting edge IT and electronics to a “CPS/IoT Exhibition.”*1

groups, exchanging ideas and knowledge with specialists andtions, and others, mainly via the JBCE, in forums including the

He has also worked to stimulate the IT and electronics industry

researchers in efforts that will lead to better policy.

EU-Japan Working Group on Corporate Social Responsibility,

economic organizations.

for the coming fourth industrial revolution by promoting

As part of the global expansion of our Social Innovation

organized by the European Commission and Japan’s Ministry

Japanese-German collaboration at CeBIT, a global event for

Business, we provide information to policymakers and govern-of Economy, Trade, and Industry, and the UN Asia Regional

digital business held in Germany in March 2017.

ment representatives on Hitachi’s technological expertise to

Forum on Business and Human Rights.

As a member of the Japan Electrical Manufacturers’

convey how Hitachi can contribute to the United States.

Since 1998, we have held the EU Hitachi Science &Association (JEMA), Hitachi takes its commitment to sustainable

These kinds of activities allow us to foster a broader under-

Technology Forum to deepen understanding of Hitachi’s busi-

development of the heavy electric machinery industry and thestanding of Hitachi’s business and technological expertise andness. In fiscal 2014, the forum took place in Paris, addressing

establishment of a low-carbon society very seriously. To thatto expand our global network.

the theme of healthcare. Starting in fiscal 2016, we are focusing
on the Social Innovation Business while continuing to holdend, we are surveying the status of the development of theelectric power infrastructure in other countries, including power

Europe: Hitachi Corporate Office, Europe

these forums from the perspective of contributing to European

generation and transmission facilities, to promote infrastructure

The Hitachi Corporate Office, Europe, located in Brussels,society through business and technology. Through these activi-

system exports. We are also participating in public relations

monitors policy and legislation trends in the European Union,

ties Hitachi actively communicates with European stakeholders

activities—primarily interactions with business operators insuch as the European Commission and European Parliament,

including policymakers.

these countries—on how Japanese technologies and products

and analyzes their impact on Hitachi’s business activities. It

can help to solve social issues there.

demonstrates how business can contribute to European policy
and to societal issues.

*1 CPS (Cyber Physical System): A system in which data collected in the physical world isanalyzed and transformed into knowledge through large-scale data processing technologies
in cyberspace to stimulate industry and seek solutions to social issues.

Asia-Pacific Region: Hitachi Asia Ltd., APAC Office
The Asia-Pacific region is replete with challenges in areas

Specifically, the office actively gathers information in the

including the environment, energy, transportation, and health-fields of energy, trade, information and telecommunications,care that call for urgent solutions. At the same time, however,transportation, healthcare, research and development,

it offers a wealth of business opportunities. Hitachi Asia Ltd.

United States: Hitachi Corporate Office in Washington DC

environment, and CSR; communicates with relevant depart-

opened its Asia-Pacific (APAC) office in April 2016 and continues

The Hitachi Corporate Office in Washington DC examines thements within the company and other Group companies; andworking to reinforce its business activities in the region. A core

Hitachi Sustainability Report 2017

Contents

26

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

team made up of top-level managers from each national andParticipation in Initiatives

regional office monitors legislative policies and legal regulations
impacting businesses across the Asia-Pacific region and ensuresthat business activities remain suitable to each location’s indi-

The Hitachi Group Standardization Committee was established to coordinate the efforts of all Hitachi Group companies

Main Initiatives in Which Hitachi Is Involved
United Nations Global Compact

toward international standardization. The Steering Committee*1of this body determines priority themes and promotes standardi­

vidual circumstances. On matters such as trade policies that

Hitachi, Ltd. became a full member of the United Nations Global

zation activities by establishing working groups for each theme.

have cross-border implications, solutions are sought throughCompact in February 2009. Our corporate foundation is the

Hitachi’s international standardization work is well regarded.

cross-border collaboration. In Singapore, for example, ourbasis for continuing growth as a global company, and it also

In fiscal 2016, a Hitachi employee received the IEC Thomas

active participation in the Committee on the Future Economy

needs to meet internationally recognized global standards that

Edison Award, and two of our employees received the Minister(CFE) gives us a voice in policymaking.

go beyond national and regional laws and regulations. We believeof Economy, Trade, and Industry Award. And we were alsothat respecting and implementing the 10 principles of the UN

honored by such bodies as the Information Processing

Global Compact will build a stronger foundation for our business.

Society of Japan and the Railway Technology Standardization

The Asia-Pacific region is known for its religious, political, andeconomic diversity. To expand our Social Innovation Businessin this region and contribute to solving the social issues it
faces, cooperation with national and local governments andInvestigation Committee.
Global Compact Network Japan (GCNJ)

involvement in policymaking throughout the region, including

Hitachi is committed to contributing to international standardi­
zation via standard-developing organizations like the IEC, ISO,

Japan, is crucial. For this reason, we sponsor regional events

World Business Council for Sustainable Development

and various consortia to facilitate innovation that resolves social

like the Hitachi Social Innovation Forum (HSIF) and Hitachi

The World Business Council for Sustainable Development

issues, as well as to providing solutions consistent with international

Young Leaders Initiative (HYLI) as part of our strategy to raise(WBCSD) is an organization led by CEOs of forward-looking

standards to support the development of sound global markets.

understanding and awareness of our values and vision for thecompanies in more than 30 countries worldwide. Its aim is to

future among those involved in formulating policy.

create a sustainable future for business, society, and the environ-

Until now, Hitachi has emphasized information exchange

ment. Hitachi, Ltd. has participated in the WBCSD since 1995.

*1 Steering Committee: Headed by the executive officer overseeing R&D, this entity includes
chief technology officers of Hitachi business units and Group companies. The committee is
responsible for decisions on cross-departmental and companywide standardization projects.

and communication between Group companies on a national
Hitachi Group Standardization Committee

basis. From fiscal 2017, we plan on strengthening collaborative
ties between regional offices as well. As One Hitachi, we willcontinue to seek dialogue with policymakers across a variety offorums in order to resolve social challenges through business.

International Standardization Activities
To help create and expand markets as well as to accelerate our
global business expansion, we are actively involved in developing
international standards and are willing to commit employees toserve as chairpersons or international secretaries or in other

Head:
Hitachi, Ltd.
executive officer incharge of R&D

Members:
Hitachi Group
representatives incharge ofinternational
standardization(CTOs, etc.)

Steering Committee

Priority Theme 1
Working Group
Priority Theme 2
Working Group
Priority Theme 3
Working Group

key positions of international standards-developing organizations,such as the International Electrotechnical Commission (IEC)and the International Organization for Standardization (ISO).

Hitachi Group Standardization Committee

Hitachi Sustainability Report 2017

Contents

27

Introduction

Review and Improvement of CSR Activities

Management Approach

Activities

Performance Data

Review and Improvement of CSR Activities

Hitachi’s Aims: Improving the Quality of Management Through Integration with CSR
Our society faces a wide range of problems, including global warming, poverty, and social discrimination, and demand is growing for corporations to addressthese problems.
To meet these expectations, Hitachi is integrating its management and CSR, incorporating CSR into routine business practices throughout the organization andimproving the quality of management by implementing the PDCA cycle. By communicating with our stakeholders, we are affirming our relationship of trust withsociety, and by sharing values with stakeholders, we aim to achieve both the sustainable development of society and our economic growth as a global company.
Senior management will play a leadership role in advancing measures to contribute to the resolution of global-scale societal issues through our business operations.

Fiscal 2016 Overview of Activities
In fiscal 2016, we prepared to set up the Executive Sustainability Committee, and the new framework was launched in April 2017. We are continuing to holdglobal and regional CSR meetings to share our CSR activities on a worldwide basis.
Main Plans and Results
Continuous Enhancement of CSR Management
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Pursuit of management strategy incorporating· Promote CSR activities throughout· Shared each division’s latest activities at★★★

· Formulate fiscal 2017 CSR Activity Plan

CSR into organizational activities throughthe corporate division

CSR Promotion Team Meeting (brandand share results

communication strategy in achieving 2018structural and governance-related measures

Mid-term Management Plan; 2016 R&D
strategy; workstyle reforms; and revision ofcompliance regulations)★★★

· Hold lectures on sustainability for senior· Promote understanding of CSR among· Deliberated and approval granted forsenior management

long-term environmental targets by Senior

management at Executive Sustainability

Executive Committee and Board of Directors

Committee· Proposed launch of Executive Sustainability
Committee from fiscal 2017 to the CEO,and received approvalHitachi Sustainability Report 201728

Contents

Introduction

Management Approach

Activities

Performance Data

Review and Improvement of CSR Activities

Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Development of CSR network on Group-wide,· Hold Hitachi Group CSR meeting in each

· Held regional CSR meetings in India,★★★

· Hold Hitachi Group CSR meetings at six

global basis

country and region

Europe, and Australia

Improvement and enhancement of· Have DJSI World select Hitachi, Ltd. for· Hitachi Ltd. selected by DJSI eight years in★★★

· Continue with bolstered response to thelocationsmanagement quality through the PDCA cycle

its index

a row

global assessments by DJSI, CDP, EIRIS,

based on third-party assessments· Bolster response to global assessment· Took measures in response to CDP criteria

and MSCI

for climate change and water, as well as for
supply chain· Responded to EIRIS, MSCI, andSustainalytics· Implemented analysis of required disclosurelevels and shared results with relevant parties★★★

· Implement Hitachi Volunteer Day

Promotion of company-wide CSR awareness· Promote Hitachi Volunteer Day· Inspected activities implemented on Hitachi

through education and volunteering· Advocate employee volunteer activities

Volunteer Day, and collected and tallied data

· Implement employee-participatory social· Resumed distribution of e-mail newsletters

contribution program, such as the “Buy andto employees

Help Society! Bazaar”★★★

· Continue to promote enrollment, as· Facilitate worldwide environmental e-learning· Implemented Hitachi University, Hitachi’s(fiscal 2016 version) in Japanese, English,

e-learning system, with more thanand Chinese

140,000 enrolling· Facilitate worldwide CSR e-learning· Implemented Hitachi University, Hitachi’s(revised version) in Japanese, English,

e-learning system; more than 120,000

and Chinese

enrolled

Communication with stakeholders through· Publish integrated report, sustainability· Published Hitachi Integrated Report 2016,

information disclosure

report, and company outline and structurally

identified key issues, and reviewed items forbased on GRI Standards and analysis ofreinforce the project team for next year’s

publication in 2017 edition

required disclosure levels

publications· Published Hitachi Sustainability Report· Obtain feedback from stakeholders

2016 and revised website; considereditems to be disclosed in light of GRI
Standards and analysis of required
disclosure levels for 2017 edition★★★: Achieved ★★: Partially achieved★: Not achievedcourses last for three years★★★

· Add CSR to items covered in training for
employees at various levels★★★

· Expand scope of information disclosed

Hitachi Sustainability Report 2017

Contents

29

Introduction

Management Approach

Activities

Performance Data

Review and Improvement of CSR Activities

Enhancing CSR Management
Hitachi’s Approacha framework of nine key themes based on ISO 26000 with the

Hitachi’s Engagement with Material Issues

aim of further integrating management and CSR and continually
We have been building our CSR policy on a framework

improving our CSR activities by running the PDCA cycle.

of changing social issues and expectations. To strengthen thebased on ISO 26000 to promote the integration of
our management and CSR. In 2017, we reorganized

Hitachi’s CSR activities are premised on an accurate perception
integration of management and CSR, from fiscal 2015 to the

CSR Management Framework

first quarter of fiscal 2016, Hitachi, Ltd. prioritized, from its own

our Group-wide sustainability structure by launching
Recognize

the Executive Sustainability Committee, whose

Properly recognize our social
responsibility

members are Hitachi’s senior executives and theperspective, its CSR initiatives in accordance with the 2018
Mid-term Management Plan. As a result, three material issues
were identified, namely, social innovation, collaborative creation,

CEOs of various business units. The committee isplaying a central role in advancing Hitachi’s sustain-

and the environment. Our aims for each item were formulated,

1 Recognition of Social

ability strategy. In addition, we are actively organizing

Responsibility
2 Corporate Governance3 Human Rights
4 Labor Practices
5 Environment
6 Fair Operating Practices
7 Customers (Consumer Issues)
8 Community Involvement andDevelopment
9 Review and Improvementof CSR Activities

global CSR meetings and undertaking initiatives at
the national and regional levels, with the aim of further
strengthening our global, Group-wide CSR network.
We attach importance to information disclosure, on
which communication with stakeholders is based,
and are responding to stakeholder needs throughand initiatives are being actively advanced using the CSR
management framework as the foundation for the achievementof those aims.
Hitachi’s Material Issues
Material issues

Aims for each issueSocial innovation

Utilize digital technology, which can connect all things, to offer
optimum solutions to social issues

Collaborative creation

Share understanding of issues and ideals with various stakeholders,suggesting and implementing solutions with them, to create newsocial value and minimize adverse risks

Environment

Resolve environmental issues involving climate change,
resources, and ecosystems throughout the value chain

the Hitachi Sustainability Report, meeting disclosure
requirements of the GRI Standards.

Hitachi’s CSR Management Framework
To realize the Hitachi Group Vision, which draws on our
Corporate Credo and Founding Spirit that form the core of our
CSR, we have been sharing throughout the Group our CSR
Policy, created in 2005, as the basis of our CSR activities. In
keeping with a management strategy of actively advancing ourSocial Innovation Business, we have, since fiscal 2014, adopted

Review and Improve

Identify, Prioritize, and Act

Confirm and enhance CSR activities
through proactive communicationand stakeholder engagement

Identify relevant issues, establish
priorities for addressing issues,
and act on them

Hitachi Sustainability Report 201730

Contents

Introduction

Management Approach

Activities

Performance Data

Review and Improvement of CSR Activities

Material Issues and Boundaries
In reporting the achievements of its CSR initiatives, Hitachiseeks to identify issues that are of interest to its stakeholders.
To ascertain the ever-changing interests of stakeholders in the

Material Issues and GRI Standards
ThemesMaterial issues

GRI Standards

1 Recognition of social responsibility

Realizing sustainable, innovative management

GRI 203: Indirect economic impacts

2 Corporate governanceendeavored since fiscal 2014 to give specific examples of ourUnderstanding issues through dialogue and taking part in initiatives●●

Pursuing management efficiency and transparency

●

●

●

●

●

●

●

●

Sharing the Hitachi Group Identity

light of fluctuating economic and social conditions, we have

Reporting boundary
Internal External●●

GRI 205: Anti-corruption
GRI 419: Socioeconomic compliance

Advancing risk management on multiple fronts(environmental, social, and governance) investment indexes

Achieving a fair and equitable work environment

and SASB (Sustainability Accounting Standards Board)

Promoting diversity and inclusion

GRI 412: Human rights assessment
GRI 408: Child labor
GRI 409: Forced or compulsory labor
GRI 410: Security practices
GRI 411: Rights of indigenous peoples
GRI 414: Supplier social assessment
GRI 402: Labor/management relations
GRI 406: Non-discrimination
GRI 407: Freedom of association and collective bargaining
GRI 401: Employment
GRI 402: Labor/management relations
GRI 202: Market presence
GRI 405: Diversity and equal opportunity

Promoting occupational health and safety

GRI 403: Occupational health and safety●

A strategy for growing together with our global human capital

GRI 404: Training and education●

Promoting environmental management

GRI 201: Economic performance

●

●

●

●

●

●

●

●

●

●

3 Human rights

initiatives under a nine-item CSR management framework.

Respect for human rights throughout the value chain

We take note of stakeholders’ own priorities, analysis conducted by outside consultants, and the opinions of experts inchoosing initiatives that correspond to our nine frameworkitems. These are further screened with reference to the ESG

Respect for workers’ rights
4 Labor practices

standards, reviewed by the executive officer in charge of CSR,
and reflected—starting this year—in Hitachi Sustainability

5 Environment

Report 2016.
We also aim to provide a more detailed account of theEnhancing environmental management on an ongoing basis

topics’ social impact by clarifying the boundaries (importanceto internal and external stakeholders) of each topic.

Responding to environmental risks and opportunities
Achieving a low-carbon society
Achieving a resource efficient society
Achieving a harmonized society with nature
6 Fair operating practices

GRI 419: Socioeconomic compliance
Promoting work practices in line with international ethics codes

Engaging in responsible procurement
7 Customers (consumer issues)

GRI 302: Energy
GRI 305: Emissions
GRI 306: Effluents and waste
GRI 307: Environmental compliance
GRI 308: Supplier environmental assessment
GRI 404: Training and education
GRI 201: Economic performance
GRI 301: Materials
GRI 302: Energy
GRI 305: Emissions
GRI 303: Water
GRI 306: Effluents and waste
GRI 304: Biodiversity
GRI 205: Anti-corruption
GRI 206: Anti-competitive behavior
GRI 415: Public policy
GRI 204: Procurement practices
GRI 414: Supplier social assessment
GRI 308: Supplier environmental assessment

●

●
●

●

●

●

●

●

●

●

●

Pursuing customer satisfaction

GRI 417: Marketing and labeling●●

Ensuring accessibility to products and services

GRI 417: Marketing and labeling
GRI 416: Customer health and safety
GRI 418: Customer privacy
GRI 419: Socioeconomic compliance

●

●

●

●

GRI 413: Local communities●●

Ensuring thorough management of quality and safety
8 Community involvement and development

Promoting sustainable community involvement and development

9 Review and improvement of CSR activities

Enhancing CSR management●

Hitachi Sustainability Report 201731

Contents

Introduction

Management Approach

Activities

Performance Data

Review and Improvement of CSR Activities

Sustainability Management Structure

Hitachi, Ltd. and CSR Corporate Meetings, the Sustainability

Hitachi Group CSR Statement and Mission

Promotion Meetings also organize CSR Manager Meetings

We strive to realize a sustainable society by properly understanding

In October 2013, the CSR Division and the Environmental

with the CSR departments of business units and Group com-

Strategy Office at Hitachi, Ltd. merged to form the CSR andpanies. In addition, the committee will hold regular Regional

Environmental Strategy Division. Soon afterward, we began

CSR Meetings for regional headquarters outside Japan tosharing the Hitachi Group CSR Statement and Mission, createdshare a common direction and promote sustainability strategy.

in fiscal 2014 to lay out the goals of the new organization, with

To fulfill our social responsibilities, as well as to seek sus-

business units and Group companies.

tainable growth as a global company, we conduct stakeholder

In April 2017, we created the Executive Sustainability

dialogue on a worldwide basis in cooperation with our regional

Committee and reorganized the promotion structure it heads.

headquarters and take a proactive approach to incorporating

To promote sustainability policies and activities across theglobal social issues into our management strategy while

Group, the Sustainability Promotion Meetings were convened

continuously striving to improve the quality of our management.

to work with sustainability strategy promotion officers from the
Executive Sustainability Committee Initiatives

various business units and Group companies using the CSR
and Environmental Strategy Division as a secretariat. As well as
holding regular meetings with CSR-related departments at
Sustainability Strategy Promotion Structure

Promote long-term environmental targets

Executive Sustainability Committee

Discuss and define sustainability strategy (SDGs/ESG)

Secretariat: CSR andEnvironmental Strategy Division
Overseas CSR/
environment officers

Sustainability Promotion Meetings

Eco-Management Meetings

GlobalEnvironmental Meetings
CSR Corporate Meetings

Environmental Manager Meetings

CSR Manager Meetings

Regional Environmental Meetings

GlobalCSR Meetings

Regional CSR Meetings

global social and environmental expectations through communication
with our various stakeholders and integrating those expectations into
our management.
CSR and environmental initiatives that contribute to solving social issues
Governance that realizes sustainable management
Communication that fosters mutual understanding with stakeholders

Hitachi Sustainability Report 201732

Contents

Introduction

Management Approach

Activities
Activities

Activities

32
33–44

Customers (Consumer Issues)

76–84

Pursuing Management Efficiency and Transparency

35

Pursuing Customer Satisfaction

78

Sharing the Hitachi Group Identity

39

Ensuring Accessibility to Products and Services

80

Advancing Risk Management on Multiple Fronts

41

Ensuring Thorough Management of Quality and Safety

82

Corporate Governance

Human Rights

45–50

Community Involvement and Development

Respect for Human Rights Throughout the Value Chain

47

Promoting Sustainable Community Involvement

Respect for Workers’ Rights

50

and Development

Labor Practices

51–66
54

Promoting Environmental Management

Promoting Diversity and Inclusion

55

Enhancing Environmental Management on

Promoting Occupational Health and Safety

61

Our Global Human Capital
Fair Operating Practices

64
67–75

Promoting Work Practices in Line with
International Ethics Codes

69

Engaging in Responsible Procurement

71

87

Environment89–121

Achieving a Fair and Equitable Work Environment

A Strategy for Growing Together with

85–88

90

an Ongoing Basis

93

Responding to Environmental Risks and Opportunities

105

Achieving a Low-Carbon Society

107

Achieving a Resource Efficient Society

112

Achieving a Harmonized Society with Nature

117

Performance Data

Hitachi Sustainability Report 2017

Contents

33

Introduction

Management Approach

Activities

Performance Data

Corporate GovernanceCorporate Governance

Hitachi’s Aims: Developing Efficient and Transparent Corporate Governance“Sustainability management” is expected to play an array of roles in realizing a sustainable society, a key component of the Sustainable Development Goals(SDGs)—the centerpiece of the 2030 Agenda for Sustainable Development, adopted by the United Nations in 2015. We believe that meeting society’s expectations
requires a corporate culture that unfailingly contributes to the resolution of social issues through the creation of products and services and that ensures ethical andfair business activities.
We are cultivating a self-directed corporate culture where CSR perspectives are reflected in management decision making and a common identity is sharedthroughout the Hitachi Group. In addition to pursuing greater management efficiency and transparency, we have identified the main themes of this effort as
sharing our Codes of Conduct and values throughout the Group and promoting multifaceted risk management. In these ways we are accelerating the developmentof corporate governance that incorporates CSR into our decision making and operations across our business activities.

Fiscal 2016 Overview of Activities
In fiscal 2016, we made a Group-wide effort to enhance compliance, reorganizing our global compliance structure and expanding the Hitachi Global
Compliance Program (HGCP). We are promoting further collaboration with our suppliers to strengthen our business continuity plans (BCPs) throughout
the supply chain.
Main Plans and Results
Sharing the Hitachi Group Identity
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Establishment of corporate ethics, strict· Enhance Group-wide compliance· Appointed global compliance officers★★★

· Enhance Group-wide compliancecompliance with laws and regulations

framework globally· Held various compliance meetings andframework globally through deepening ofcommittee sessions and communicatedthe Hitachi Group Codes of Conduct

CEO’s messageand HGCP· Expanded HGCP for Group-wide· Fully launch global compliance structure

implementation· Ensure thorough pursuit of business in linewith expanded HGCP
· Further improvement of compliancereporting system

Hitachi Sustainability Report 2017

Contents

34

Introduction

Management Approach

Activities

Performance Data

Corporate Governance

Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Instilling of the Hitachi Group Identity· Realize the Hitachi Group Vision by further· Published the revised Hitachi Brand Book★★★

· Make ongoing efforts to instill thein employees

instilling the Group Identity in employees,· Developed brand teaching materials in the

Hitachi Group Identity (to enhance brandraise employee awareness to achieve theAmericas and held webinars

recognition and induce action)2018 Mid-term Management Plan

· Implemented IYGA 2016 (winners selected(1) L aunch brand awards conferred by(1) Provide training worldwide to promote

from among 212 entries)

understanding of the Hitachi Group· Issued Hitachi Brand News(2) P rovide training worldwide to promote

Identity and Hitachi brand value· Held brand training sessions

understanding of the Hitachi Group(2) Implement “Inspiration of the Year Global
Award (IYGA) 2016”; foster and utilize
brand ambassadors(3) Hold brand-training sessions★★★: Achieved ★★: Partially achieved★: Not achieved

the president

Identity and Hitachi brand value(3) M ake use of the Hitachi Group Identity
movieHitachi Sustainability Report 2017

Contents

35

Introduction

Management Approach

Activities

Performance Data

Corporate GovernancePursuing Management Efficiency and Transparency
Hitachi’s Approach

Corporate Governance

Governance Structure of Hitachi, Ltd.
The Board of Directors comprises a majority of independent

We not only strive to ensure the legality, soundness,

Driving Hitachi’s Governanceoutside directors and includes five non-Japanese directors,

and transparency of our business but also endeavor

Hitachi, Ltd. has adopted the committee system, which has

two of whom are women. This represents an effort to reflect

to respond rapidly to constantly changing economic

nominating, audit, and compensation committees.*1 We aim to

global, diverse viewpoints in company management, as well as

and social conditions and efficiently conduct opera-

establish a framework for quick business operations and toto reinforce management supervisory functions.

tions. At the same time we are bolstering management

realize highly transparent management by separating theoversight and monitoring capabilities and clearly

responsibilities for management oversight from the execution

defining managerial responsibilities with a view toof business operations. The majority of our Board of Directors

sustainably enhancing our corporate value by forging

are independent outside directors, including non-Japanese.

ever-stronger corporate governance.

Our goals are to reflect diverse and global viewpoints as wellWorldwide social and environmental megatrends,

as to reinforce management supervisory functions. We havesuch as population growth and climate change, haveformulated and published Corporate Governance Guidelines

reached a point in recent years where they are having

outlining the framework of corporate governance, such as thea bigger impact on corporate management decisions.

function and composition of the Board of Directors, qualifica-

As a global company that contributes to society

tions for independent outside directors, and the criteria forthrough our Social Innovation Business, we areassessing the independence of these directors.

working to ensure that environmental and social
issues are at the heart of decision making at thehighest levels of corporate governance.
We give great importance to management efficiency
and transparency and appropriate organizational

General Meeting of Shareholders
Elect

Board of Directors(13 members, including 9 from outside)

Nominating
Committee

Audit Committee(4 members,
including 3 from outside)
Appoint(5 members,
including 3 from outside)

Compensation
Committee(4 members,
including 3 from outside)
Supervise

Executive Officers: Quick execution of company business*1 A corporate governance system under the Companies Act of Japan, where a board of
directors makes basic policy decisions and oversees the execution of business by executive
officers, while the executive officers, appointed by the board of directors, execute thecompany’s business affairs via a set of statutory committees.

Corporate Governance Guidelines

Strengthening Structures to Expand Our Social
Innovation Business

control and are firmly maintaining and reinforcing a

In April 2016 we transitioned to a market-driven business

management structure enabling us to strengthen our

structure with three levels—namely, “Front,” “Platform,” andefforts to fulfill our social responsibilities on multiple“Products”—in order to accelerate collaborative creation withfronts, such as through proper information disclosure

customers and develop value-creating innovations throughand tripartite audits.

services and products.

Hitachi Sustainability Report 201736

Contents

Introduction

Management Approach

Activities

Performance Data

Corporate GovernanceStrengthening Frontline Functions of Focus Business

Fiscal 2017 New Business Structure

Domains
President and CEO

Our frontline function businesses include 12 Front businessGroup Corporate Functions

units (BUs) with strengthened capabilities in sales, engineering,and consulting. These BUs target our four focus business

Executive Vice President

Executive Vice President

Executive Vice President

Executive Vice President

domains of “power and energy”; “industry, distribution, andUnit. These provide customers and Front BUs with innovative,
globally competitive products, parts, and materials, all while

Services & Platforms Business Unit

Products

Industrial Products Business Unit

Power and energy

Industry, distribution, and water

Urban

Finance, public, and healthcare

pursuing synergies as a Group.
Because BUs are under the direct control of the president,
each unit’s CEO has investment authority and responsibility forprofit and earnings. They work in partnership with other BUs,
comprehensively and organically leveraging the resources ofthe entire Hitachi Group and creating innovations quickly andflexibly in order to provide optimum products and services tocustomers.
Our business model aims to sustainably create value.
Through our Social Innovation Business, we contribute toimproving people’s quality of life by addressing on an ongoingbasis the issues society and our customers face.

Hitachi to Make a Transition to a Market-Specific Business Structure with Strengthened Frontline Functions

Defense Systems Business Unit

within the Hitachi Group and our Industrial Products Business

Platform

Healthcare Business Unit

Our product-focused businesses include the companies

Government, Public & Social
Infrastructure Systems Business Unitand control technologies.

Financial Institutions Business Unit

Urban Solutions Business Unitadvanced services, including artificial intelligence, analytics,

Railway Systems Business Unit

platform aggregating and integrating technologies essential for

Building Systems Business Unit

Our Services and Platforms Business Unit offers a shared

Water Business Unit

Front

Industry & Distribution Business Unit

globally develop our digital-driven Social Innovation Business.

Energy Solutions Business Unit

and we will create synergies in each focus domain in order toPower Business Unit

will provide innovation as a service to customers in their region,

Nuclear Energy Business Unit

water”; “urban”; and “finance, public, and healthcare.” Each

Hitachi Sustainability Report 201737

Contents

Introduction

Management Approach

Activities

Performance Data

Corporate GovernanceTransition to a Global Management System

Internal Control over Financial ReportingTo accelerate growth in the global market, Hitachi in April 2015

To ensure the reliability of consolidated financial reporting,appointed regional chief executives in the four global regions

every company develops and uses control documents ranging

of the Americas, China, the Asia-Pacific, and EMEA/CIS.*

from company-level to business process controls based on the

1

In March 2017 the functions of the regional chief executives for
the Americas, Asia-Pacific, and EMEA/CIS were revised, andInnovation Business Division and the chairman and president

assessments. The J-SOX Committee office collects the resultsof each regionally integrated company.

of the assessments performed by each business unit andcompany, and assesses the effectiveness of internal control
across the entire Group.

government initiatives for strengthening infrastructure networks
and improving health presented in the Thirteenth Five-Year
Plan, and we are also promoting our Social Innovation Business

Hitachi, Ltd. President and
CFO
ReportReportJ-SOX Committee
Committee’s Office
Reporta variety of industries, including energy. In China, we havebrought the direction of our Group operations in line with

Internal control
reportBusiness units within Hitachi, Ltd. and major Group
companies have developed mechanisms to objectively perform

innovations—big data analytics are providing new solutions in

Financial Services Agency

guidelines determined by our J-SOX Committee.*1

their responsibilities were assumed jointly by the Social

In the Americas—a market that features world-leading IT

Hitachi Group Internal Control Assessment Framework*1 J-SOX: A system for the development of the internal control required under Japan’s
Financial Instruments and Exchange Act (FIEA) to ensure the reliability of financial reporting.

Audit
Committee

ReportIndependent
auditors

Collaboration

Internal
Auditing
OfficeExternal
audit

Business units andmajor Group companies
ReportSubsidiary companies

developed for emerging economies. Social-infrastructure-related
demand is very strong in the Asia-Pacific, where the aim is tocollaborate with local partners in the region in developing ourSocial Innovation Business to solve issues common in urban

Toward a Stronger “Tripartite Audit” Function

areas. In the EMEA/CIS region, where innovations in manufac-

We are working to further enhance the effectiveness of theturing drive markets, the focus will be on rolling out our Social

internal control exerted through the integrated work of a

Innovation Business aimed at increasing efficiency in production“tripartite audit” function comprising the Audit Committee; ourand supply chains. In all these regions, the chief executives

internal audit sections, principally, the Internal Audit Office; andwill act as regional “control towers,” developing and building

the external auditing firm. Through close communication, thesolutions with Hitachi customers to resolve a variety of global

three share information about risks and evaluation of risk

issues that are becoming increasingly complex and borderless.

responses, secure transparency in the audit process, andimprove the effectiveness of internal control systems.

*1 EMEA/CIS: Europe, the Middle East, Africa, and Commonwealth of Independent States.

Hitachi Sustainability Report 201738

Contents

Introduction

Management Approach

Activities

Performance Data

Corporate Governance¥1). The number of stock acquisition rights to be granted

Improving Internal Control Through a “Tripartite Audit” Function
Goals

1 Leveling of audit methods

is determined within the range of about 10%–40% of the

2 Improving efficiency and transparency in audit processes with a risk-based approach

total annual compensation of each executive officer in

Status report on internal audit

Audit Committee
Audit Committee audit basedon risk-based approachaccordance with the relevant position. The number ofInternal audit section (Internal Audit Office)Request for detailed internal audit of issues identified
by Audit Committee
Report on important
Exchange of opinions
financial andregarding audit time, fee,accounting findings
risk evaluation, etc.

stock acquisition rights that may be exercised will be

Regular business-site-levelinternal audits

determined within the range of 0%–100% of the stockacquisition rights granted in accordance with the conditions.
As for expatriates, cash awards based on the value of

Sharing of risk information

Hitachi’s share price with similar conditions are substituted

Identification of issues through internal control audit
and evaluation of severity of fraud risk, etc.

Status report on accounting audit

for the stock options.

Auditing firm
Accounting audit centered on accuracy andreliability of financial statements

The compensation structure for directors and executive
officers was re-examined starting with compensation for the
fiscal year ended March 31, 2009, and the retirement allowance

Compensation for Directors and Executive Officers

medium- and long-term incentive compensation. The higher

was abolished. The payment of retirement allowances toCompensation for each director and executive officer isposition the executive officer holds, the higher the proportion

directors and executive officers due to the abolition of thedetermined by the Compensation Committee in accordanceof variable pay (the sum of the performance-linked compen-

retirement allowance system will be in an amount determinedwith the provisions of the Companies Act of Japan.

sation and medium- and long-term incentive compensation,by the Compensation Committee at the time of the retirement(i) Directors

not including basic remuneration as fixed pay) is as a portionof a relevant director or executive officer. The amount of com-

Compensation for directors consists of basic remunerationof total annual compensation.

pensation for directors and executive officers for the fiscal year

and a year-end allowance.

• Basic remuneration is decided by adjusting a basic

ended March 31, 2017, is as follows:• Basic remuneration is decided by adjusting a basic amountto reflect full- or part-time status, committee membershipamount to reflect the results of an assessment. The basic
amount is set in accordance with the relevant position.

FY 2016 Compensation to Directors and Executive Officers• The performance-linked compensation is decided within

Category• Year-end allowance is a predetermined amount equivalent

the range of 0%–200% of the basic amount based on

Directors(independent outside directors)

14*1
(10)

383*2
(308*3)to about 20% of the director’s annual basic remuneration,

financial results and individual performance. The basic

Executive officers

33

2,569

but may be reduced depending on financial results.

amount is set within the range of about 25%–35% of the

Total

47

2,953

A director concurrently serving as an executive officer does

total annual compensation of each executive officer in

not receive any compensation as a director.

accordance with the relevant position.

*1 The number of directors indicated excludes two directors who concurrently serve as
executive officers.
*2 The amount of compensation to directors (excluding independent outside directors) includes
the basic remuneration for two directors who retired due to expiration of their terms of office at
the close of the 147th Annual General Meeting of Shareholders held on June 22, 2016.
*3 The amount of compensation to independent outside directors includes the basic remuneration for one independent outside director who retired due to expiration of his term of officeat the close of the 147th Annual General Meeting of Shareholders held on June 22, 2016.

and position, travel from place of residence, etc.

(ii) Executive officers• Medium- and long-term incentive compensation is stockCompensation for executive officers consists of basic

options as stock-based compensation, with share priceremuneration, performance-linked compensation, andconditions (stock acquisition rights with the strike price of

Number of persons

Total amount (millions of yen)

Hitachi Sustainability Report 2017

Contents

39

Introduction

Management Approach

Activities

Performance Data

Corporate Governance

Sharing the Hitachi Group Identity
Hitachi’s Approach

Sharing Codes of Conduct and ComplianceApproaches Throughout the Groupalso supporting regional Group companies and have appointed
compliance heads in 11 regions globally.
Under this system, policies and measures are shared

We carry out our business not only in full compliance

Ensuring Awareness of the Hitachi Group Codes ofConduct

through the Compliance Management Conference, composedsocially responsible conduct. Spreading understandingof this among all Hitachi employees is a fundamental

Hitachi, Ltd. formulated the Hitachi Group Codes of Conduct

Group companies. In addition, all compliance managers meet

management issue. As economic activity becomes

as a common conduct code for the Hitachi Group in fiscal

regularly at the Hitachi Group Compliance Conference to provide

increasingly borderless, there is a growing need for2010. We issued the Hitachi Group Codes of Conduct

information on compliance and to confirm implementation ofsteps to eradicate bribery, corruption, and other illegal

Handbook in fiscal 2011 as a guidebook for all employees;

required actions.

behavior in accordance with conditions in the countries

as of March 2017, more than 260,000 copies have beenand regions where we have operations. As a global

distributed to employees in Japan. We ask managers to submit

convenes regularly to exchange views on the state of compli-

company, we are implementing a consistenta written pledge to comply with the Hitachi Group Codes ofance initiatives. The insights provided by committee members

compliance structure across the entire Hitachi Group.

Conduct. To deepen awareness of the codes throughout ourare utilized to improve policies and actions.

In pursuing sustainable management, we give

global operations, we have produced an e-learning tool inequal importance to value creation that contributes toJapanese and nine other languages, such as English andreviews to verify that each area of compliance is being

the resolution of social issues. This is being advanced

Chinese, showing appropriate behavior and presenting specificappropriately operated. In cases where the reviews identify

through the dissemination and sharing among all

examples for use in Hitachi Group companies within andnecessary improvements, corrective measures are swiftly

employees of the Hitachi Group Identity—an integrated

outside Japan.

implemented.

with legal requirements but also in ways that ensure

The Advisory Committee, consisting of outside experts,

The internal audit section regularly conducts Group-wide

Fiscal 2016 saw two incidents in the United States of plea

set of principles spelling out our management vision,
Codes of Conduct, and values.

of risk management executives from business units and key

Hitachi Group Codes of Conduct

agreements related to cartel activities, and one in Japan of acease and desist order related to collusion. Hitachi takes theseAs our operations expand across the globe, oursupply chain, too, is globalizing at an accelerating pace.

Enhancing Our Compliance Framework

incidents very seriously and will continue strengthening its

This demands that we fulfill our social responsibilities

Based on the Hitachi Group Codes of Conduct, we haveeducational and institutional efforts to fight corruption andnot only as a Group but also in working with businessexpanded the Hitachi Global Compliance Program. To compre-

promote fair competition.

partners. We thus conduct compliance risk surveys inhensively implement our compliance framework through thisevery region, in addition to implementing export-importprogram, we have appointed a senior executive as the head ofCompliance Reporting System

controls and inspecting the content of transactions sorisk management for the entire Hitachi Group. Every business

Hitachi has instituted a Group-wide whistleblowing system to

as to ensure normative conduct—free of complicity inunit and key Group company also has an executive handlingprevent illegal and unethical behavior, to promptly address

any illegal behavior—throughout the supply chain.

risk management, assisted by a compliance manager. We are

infractions, and to enhance our ability to self-regulate.

Hitachi Sustainability Report 2017

Contents

40

Introduction

Management Approach

Activities

Performance Data

Corporate GovernanceIn this system, reports go directly to the Complianceantisocial force rejection clauses in contracts so that if it is

Department at Hitachi, Ltd. or to an outside attorney. This

determined that a business partner belongs to an antisocial

system can be used not only by employees within the Hitachigroup, we can promptly void the contract and break off

Group, who are able to report issues through in-house channels,

the relationship.

but also by temporary staff and suppliers. In addition, we have

Sharing Values Throughout the Group
Solidifying the Hitachi Group Identity
Instilling the Group Identity in Employees
To help us solve social issues through understanding andimplemented the Channel to the Board of Directors system toThorough Export Controls

embodiment of the Hitachi Group Identity, our brand manage-

allow employees to directly report problems anonymously to

For basic export control policies, we have adopted the Hitachi

ment must engage everyone in the Group. We use channels

Hitachi directors. The facts related to all reports are subject toStandards of Corporate Conduct, which state: “We shall help

including our intranet to ensure that Group employees arethorough investigation and checking, and people who havemaintain international peace and security through complianceclearly aware of what needs to be done to express the Groupidentified themselves in the reports are informed of the investi-with trade-related laws and regulations.” We established theIdentity. To promote understanding of the Hitachi Groupgation results. We make every effort to appropriately deal with

Corporate Regulations Concerning Security Export Control

Identity and the Hitachi brand, we launched the Inspiration ofsituations, including taking remedial action where necessary.

based on this policy in 1987. We carry out strict export control

the Year Awards in fiscal 2003 to share activities within Hitachi

practices in line with relevant laws and regulations, screeningthat have demonstrated the Hitachi Group Identity and madePrevention of Antisocial Transactions

all goods and technologies intended for export against suchan outstanding contribution to our brand value. In fiscal 2012,

To cut off all relationships with organized crime groups andfactors as destination countries and regions as well as intended

we began evaluating applications globally, renaming the program

other antisocial forces, we observe the following three provi-

end use and end users. We provide guidance and educational

the Inspiration of the Year Global Awards. In fiscal 2016, thesions laid out in the Hitachi Group Codes of Conduct, andsupport on the formulation of regulations as well as on theawards saw 212 applications from China, Europe/Africa, India,

we have established Regulations on Prevention of Antisocial

establishment of frameworks to Hitachi Group companies inNorth America, Southeast Asia, and Japan. Outstanding activi-

Transactions covering the Group as a whole by adopting theJapan and around the world to ensure that all Group companies

ties from each region were highlighted on the intranet, and thebasic policies stipulated in the Codes of Conduct:

follow the same export control policies.

president presented the awards at a ceremony held at ourTokyo headquarters.

1. We will have no relations whatsoever with antisocial forces

At present, as part of our educational program for all thesuch as organized crime groups, and we will never engage

Group companies, we host workshops on export control inin antisocial transactions under any circumstances.

addition to the annual implementation of an e-learning program

understanding of the Hitachi brand among our employees

in Japanese, English, and Chinese. Moving forward, we will

globally, we held brand-training sessions utilizing the Hitachi

continue to make an effort so that export control is thoroughly

Brand Book, a straightforward explanation of the Group Identity

enforced throughout the Group.

and Hitachi brand, and the Hitachi Vision Movie, a visual depic-

2. We will prevent antisocial transactions through self-inspectionof our transactions.
3. We will oppose antisocial forces such as organized crimetion of the Hitachi Group Vision. By raising employee awarenessgroups with firm resolve, and refuse any improper demands.
Measures to Prevent Bribery and Corrupt Practices

The entire Hitachi Group acts decisively to eliminate
approaches from antisocial forces in partnership with, where

To further instill the Hitachi Group Identity and promote

Preventing Violations of Fair Competition Lawsof the Hitachi Group Identity through these activities, we continue to strive to become a company that “delivers innovations
that answer society’s challenges.”

necessary, external specialist institutions (the National Centerfor the Elimination of Boryokudan or the police). We include

Hitachi Group Identity

Hitachi Sustainability Report 2017

Contents

41

Introduction

Management Approach

Activities

Performance Data

Corporate Governance

Advancing Risk Management on Multiple Fronts
Hitachi’s Approach

Risk Management

secondary and other suppliers, cloud storage and multiplexingof production information, and the need to secure alternate

Changes to our operating environment from such

Reinforcement of Risk Management Systemtransportation and fuel sources. Based on the lessons learned

factors as the globalization of the economy and

The entire Hitachi Group is reinforcing its risk managementfrom this disaster, in October 2011 we released and distributed

advances in and spread of information and communi-

system to address increasingly globalized and complex risks.

new versions of the Hitachi Group Guidelines for Developing

cations technology (ICT) lead not only to the expansion

Under Hitachi, Ltd.’s head of risk management, each busi-

of business opportunities but also to the diversification

ness operation assigns an executive as its risk managementof risks to our operations.
We have built a diverse risk management system
under which we carry out risk analysis to accurately
gauge ongoing economic and social changes anduse the insights gained to take preventive measuresand ensure a rapid response to issues that may
arise unexpectedly.
Particularly in recent years, as a company deeply
involved in infrastructure projects in countries andregions around the world, we take note of the discus-

officer to manage risks mainly concerned with compliance,

Business Continuity Plans for individual departments to further
improve our BCPs.
By the end of fiscal 2011, Hitachi Group operations inexport control, disasters, and crime, and to respond adequately

Japan had completed their preparation and review of BCPs

in coordination among the entire Group. Furthermore, Hitachi

for both large earthquakes and novel strains of influenza as

is building a comprehensive risk management system thatappropriate to their operations.

contains standards and procedures to objectively evaluate
different risks that may affect business.

On top of these efforts, Hitachi, Ltd. has held annual earthquake drills simulating a major seismic event at key operationsin Japan since fiscal 1998. In March 2017, Hitachi Chemical

Stable Provision of Products and Services

held drills under the direction of its head office general manager,
with managers at the head office and the Nabari Works striving

sions at meetings like the World Economic Forum on

Creating BCPs in Key Operations Worldwide

to improve their risk management skills and identify possible

such international risks as the unending series ofGiven the close relation of our business to social infrastructure,areas for improvement in their BCPs.

terrorist attacks, the increasing severity of abnormal

we are enhancing our business continuity plans (BCPs) to

Hitachi appointed personnel with responsibility for risk-

weather conditions, global-scale climate change, andensure that the impact of risks does not disrupt our business

response policies at its main overseas bases in fiscal 2013.

the growing scale and sophistication of cyberattacks.

and thereby significantly affect society. In December 2006, we

By the end of that year, around 300 companies had preparedWe are reinforcing business continuity plans (BCPs)

issued the Hitachi Group Guidelines for Developing Business

BCPs with the goal of completing them for key operations.

and further tightening our information security toContinuity Plans (Overview) in Japanese. In fiscal 2010 this

These BCPs are aimed at strengthening our ability to respondensure the stable supply of our products and services

was translated into English and Chinese for distribution to all

to business risks, including large disasters, novel strains ofand to prevent threats to our networks that could

Hitachi Group companies worldwide to ensure our response

influenza, political instability, and social disruption, as well as

readiness for large disasters and other risks.

acts of terrorism. Moving forward, we intend to further expand

severely disrupt business operations. We will continue
to reinforce our risk management on a Group-widebasis and make thoroughgoing efforts to minimizerisks to society from our operations.

When the Great East Japan Earthquake struck in March
2011, our BCPs enabled quick responses and swift decision
making. However, issues emerged, including identification of

the scope of our BCPs.

Hitachi Sustainability Report 2017

Contents

42

Introduction

Management Approach

Activities

Performance Data

Corporate Governancesubstitute products. To see whether or not procurement BCPs

Promoting Information Security

would be effective, we held desktop exercises to discuss in agroup what should be done during and after a disaster, making

Implementing Rigorous Information Security

further improvements as a result.

Hitachi’s chief information officer (CIO) is appointed by the

In fiscal 2016, all major Group business sites with production

Hitachi Group Guidelines for Developing Business Continuity
Plans (for individual departments).

company’s president and has the authority and responsibility tolines (approximately 200 sites in total) took steps to maintainimplement and operate an Information Security Management

and strengthen the procurement BCPs they had created by the

System (ISMS). In fiscal 2016, the role of the CIO was performed

previous fiscal year, thereby contributing to the continuation of

by Hitachi’s senior vice president and executive officer. The

Hitachi’s global operations.

Information Security Committee, chaired by the CIO, determines
policies and procedures for information security and personal

Improving Safety for Employees Sent to Dangerous
Regions

information protection. The Information Security Promotion

Responding to the hostage incident in Algeria in January 2013,

other companies in the Hitachi Group. Information security

then President Hiroaki Nakanishi reinforced his policy in February

officers at business sites and companies ensure that these2013 of ensuring the safety of employees sent to countries

decisions are implemented in the workplace.

and areas at higher risk. Survey missions of in-house and outside
experts are now sent beforehand to areas at high risk of war,
Earthquake simulation drill.

Council and other bodies convey decisions internally and to

The Hitachi Group emphasizes two points in information
security and personal information protection:

terrorism, and other threats. Even after employees are dispatched to such areas, we conduct additional local surveys
every six months as a means of confirming the effectiveness ofCreation of Procurement BCPs

our safety policies. In fiscal 2016, with the threat of terrorism

We have a deep involvement in social infrastructures in places

expanding around the world, we introduced a range of safety

where the suppliers who are our business partners can bemeasures, including providing timely alerts to employees. Thisaffected by major earthquakes and other natural disasters.

underscores our commitment to ensuring the safety of our(1) Precautionary measures and prompt security responses
We classify assets to be secured and take safeguarding measures
based on vulnerability and risk analyses. We also have an emergency
manual for security breaches, based on the assumption that these
are inevitable, and not just possible.
(2) Promoting stronger ethical and security awareness among data users
We have prepared a program tailored to Hitachi’s various personnel

employees working around the globe. Hitachi is also contributing

levels and are working to raise the prevailing sense of ethics andoperations and those of our suppliers but also society as a

to safety measures at other Japanese corporations operating

security awareness through Group-wide e-learning. We are also

whole. To minimize this impact, the procurement divisions in

outside Japan. To help enhance collaboration between the

conducting audits to identify and address problems early on.

business units and key Group companies in Japan have cre-private and public sectors in this area, Hitachi executives

ated procurement BCPs that (1) standardize and use genericparticipated in the Council for Public-Private Cooperation forparts to make procurement as flexible as possible; (2) cultivate

Overseas Safety organized by Japan’s Ministry of Foreign

multiple suppliers; (3) distribute production across several

Affairs. Since 2014 Hitachi, Ltd. has taken part in public-private

locations; (4) budget inventory strategically; and (5) consider

kidnap incident preparatory training exercises.

These disasters can heavily impact not only our businessHitachi Sustainability Report 2017

Contents

43

Introduction

Management Approach

Activities

Performance Data

Corporate Governance

Details, including a message from the CIO and a list of

Education on Information Security

We take the following IT steps to prevent information leaks:

third-party assessments and certifications, are contained in

Consistently maintaining information security requires all parties

using encryption software and secure PCs; employing electronic

Information Security Report 2016.

to continually develop their knowledge of information handling

document access control and expiration processing software;and to remain strongly aware of the issues. For this reason, we

maintaining ID management and access control by building

hold annual e-learning programs on information security andan authentication infrastructure; and filtering e-mail and visited

personal information protection for all directors, employees,

websites. In response to the recent spate of targeted e-mailand temporary employees.

attacks and other cyberattacks, we are participating in an

Information Security Report 2016

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

Improve user literacy
Supply security educationmaterials
Educate managers andstaff

Information
assets to beprotected

Implement preventive
techniques
Widely implementadministrative measures
Deploy technologicalprocesses

Establish information security system
Develop rules (security policy)
Create managerial framework
Establish audit and follow-up system
Ensure solid feedback through extensive PDCA
cycles for prevention and accident response

Nearly all of the roughly 40,000 employees at Hitachi, Ltd.

initiative to share information between the private sector andparticipate in these programs. We offer a variety of courses

the government. We are also enhancing our IT organizationthat have different goals and are tailored to different target

by adding more layers to our leak prevention procedures,audiences, including new employees, new managers, andincluding both entry and exit countermeasures.

information system administrators. In 2012, we also began

To ensure the secure exchange of information with oursimulation training to educate employees about the increasing

suppliers, we review their information security measures based

trend toward malicious targeted e-mail attacks and otheron Hitachi’s own standards before allowing them access tocyberattacks. Employees are sent examples of targeted e-mailconfidential information. We have provided tools to suppliers

to heighten their awareness of security through direct experience.

(procurement partners) for security education and for checking

Our educational programs, available to Hitachi Groupbusiness information on computers. In addition, we requirecompanies in Japan and other global regions, provide

suppliers to check and remove business information fromGroup-wide education on information security and personal

personal computers to prevent leaks.

information protection.

In the May 2017 global cyberattack, ransomware thatfunctions like a network worm affected parts of Hitachi’s

Preventing Information Leaks

in-house system, temporarily disabling the sending and receipt

Hitachi, Ltd. has formulated the Three Principles for Preventingof e-mails. No information leaks were detected, however, andLeakage of Confidential Information to ensure the highest level

there was no damage to customers or other outside partiesof care for such information and to prevent leaks and otherthrough e-mail sent from the Hitachi Group.

related incidents. Our policies ensure that if an incident does
occur, damage is promptly minimized by contacting customers,
reporting to government agencies, investigating causes, andacting to prevent any recurrence.

Damage Caused by Ransomware, and Status of Recovery

Hitachi Sustainability Report 2017

Contents

44

Introduction

Management Approach

Activities
Corporate GovernanceThree Principles for Preventing Leakage of Confidential
Information
Principle 1
As a general principle nobody can take Confidential Information out of
the Company’s premises.
Principle 2

Thorough Information Security Audits
and Inspections
The Hitachi Group has developed its approach to security
based on the “plan-do-check-act” (PDCA) cycle for its informa­tion security management system. We conduct annual

Any person taking Confidential Information out of the Company’s

information security and personal information protection

premises due to business necessity shall obtain prior approval fromaudits at all Group companies and business units.

the Information Assets Manager.

The president of Hitachi, Ltd. appoints officers to conduct

Principle 3

independent audits. These officers are not allowed to audit

Any person taking Confidential Information out of the Company’s

their own units, underlining our commitment to fairness andpremises due to business necessity shall put in place relevant andobjectivity in auditing. There are 222 Hitachi Group companies

appropriate measures against information leakage.

in Japan that conduct audits in the same way as Hitachi, Ltd.,and all results are subject to confirmation. For Hitachi Group

Global Information Security Managementcompanies outside Japan, we use a “common global self-check”

Hitachi Group companies worldwide reinforce their informa-

approach to ensure Group-wide auditing and inspections. Wetion security in line with our Global Information Security

implement Confirmation of Personal Information Protection and

Administration Rules, which conform to the international

Information Security Management annually for the voluntary

ISO/IEC 27001 standard. These rules are distributed from theinspection of business unit workplaces. We conduct monthly

parent company in Japan to Group companies around theConfirmation of Personal Information Protection and Informationworld. Other security measures include secure shared services

Security Management assessments at 654 operations (as ofand support from our regional headquarters in the Americas,

March 2017) that handle important personal information. This

Europe, Southeast Asia, China, and India.

regular control mechanism ensures ample safety management
and implementation.

Performance Data

Hitachi Sustainability Report 2017

Contents

45

Introduction

Management Approach

Activities

Performance Data

Human Rights

Human Rights
Hitachi’s Aims: Thoroughgoing Respect for Human Rights Across the Value Chain

As our value chain expands on a global scale, we find diverse working environments, business norms, and trade practices in countries and regions around theworld, and this has highlighted the need to ensure respect for human rights in our operations. Society’s awareness of human rights issues is also rising, andcompanies are expected to address human rights issues in accordance with such international standards as the UN Guiding Principles on Business and Human
Rights. Companies are now being asked not only to respect human rights in their own activities but also to avoid becoming complicit in the human rights
infringements of their suppliers and customers.
In carrying out our business, Hitachi recognizes human rights as a key management issue. On the basis of this awareness, we will respect the human rights
of all stakeholders, including our own employees and across the supply chain, in every country and region where we operate. We are also engaged in raisingawareness of human rights and promoting the use of grievance mechanisms to address employee concerns throughout the Hitachi Group. At the same time,
we are strengthening human rights due diligence and expanding the scope of other human-rights-related activities.

Fiscal 2016 Overview of Activities
In fiscal 2016, we took steps to further propagate the Hitachi Group Human Rights Policy. In addition to implementing human rights due diligence (HRDD), witha focus on human resources divisions, we held training sessions for Group and global employees to enhance respect for human rights.
Main Plans and Results
Respect for Human Rights Throughout the Value Chain
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Propagation of the Hitachi Group Human· Implement HRDD within human resources· Hosted three workshops on HRDD within★★★

· Have human resources divisions examine

Rights Policy and implementation of HRDD

divisionshuman resources divisions

based on guidelines· Create guidelines for individual divisions· Issued summary of the guidelines

into account· Create an overview edition of guidelines(in Japanese and English)· Create guidelines for individual divisions· Prioritized revision of Hitachi Group· Continue to promote HRDD

CSR Procurement Guidelines and HRDD

· Implement HRDD workshops in Europe

guidelines for procurement divisions were
not drafted

measures by taking HRDD results

Hitachi Sustainability Report 2017

Contents

46

Introduction

Management Approach

Activities

Performance Data

Human Rights

Policies

FY 2016 goals/plans

Results in FY 2016

Achievement
level

Propagation of the Hitachi Group Human· Follow up on companies that have yet to· Ascertained number of companies★★★

Rights Policy and implementation of HRDD

formulate company regulations integratingwith company regulations integrating thebased on guidelines

the Hitachi Group Human Rights Policy,

Hitachi Group Human Rights Policy andbased on the findings of a survey on theshared information with them; sent

number of companies that have establishedreminders to companies that have yet to

FY 2017 goals/plans

the policy as company regulation

integrate the policy in their regulations

Promotion of employee understanding of· Implement human rights training sessions· Implemented human rights training session

the principles on Business and Humanfor Hitachi, Ltd. executive officers

for Hitachi, Ltd. executive officers

outside Japan

Rights and respect for human rights· Hold human rights workshops in Europe· Released human rights e-learning materials· Continue to implement human rights· Plan and produce fiscal 2016 e-learningin three languages: Japanese, English,

training sessions for Hitachi, Ltd.

materials

and Chinese

executive officers· Implemented HRDD training sessions and· Distribute CEO’s human rights message

workshops in Europe· Implemented human rights training sessionsfor Hitachi Group companies in China,
ASEAN, and Australia· Distributed CEO’s human rights message
to approximately 156,000 executives
and employees★★★: Achieved ★★: Partially achieved★: Not achieved★★★

· Continue to hold training sessions in andHitachi Sustainability Report 2017

Contents

47

Introduction

Management Approach

Activities

Performance Data

Human Rights

Respect for Human Rights Throughout the Value Chain
Hitachi’s Approach

Respect for Human Rights

The Hitachi Group Human Rights Policy has been

Human Rights Initiatives

formulated to create a value chain where the human

In May 2013, we adopted the Hitachi Group Human Rights

rights of all stakeholders are respected. Under the

Policy to supplement the Hitachi Group Codes of Conduct,leadership of top management, educational activities

drawn up in fiscal 2010. In this policy, we clarify our understanding

targeting all executives and employees are carriedof human rights as being, at a minimum, those outlined inout on an ongoing basis to help foster an organization

the International Bill of Human Rights and the International

in which human rights infringements do not occur.

Labour Organization’s Declaration on Fundamental Principles*1 Human rights due diligence: An ongoing process to identify and assess potential andactual human rights impacts, integrate findings, and take appropriate action to prevent or
mitigate potential impacts or to provide for or cooperate in the remediation of actual impacts.
The processes also cover tracking the effectiveness of actions to address impacts andcommunicating externally.
*2 UN Guiding Principles on Business and Human Rights: Included in the March 2011 Reportof the Special Representative of the Secretary-General on the issue of human rights andtransnational corporations and other business enterprises, John Ruggie (A/HRC/17/31).

Hitachi Group Codes of Conduct
Hitachi Group Human Rights Policy

Under this policy, we are also building a framework

and Rights at Work. This policy shapes Hitachi’s approach to

Framework for Human Rights

to accurately assess and mitigate human rights risks

meeting the responsibility to respect human rights, including

Hitachi, Ltd. established the Corporate Human Rights Promotionin the workplace environments of Hitachi’s suppliers

implementing human rights due diligence* in line with the UN

Committee in fiscal 1981 to gauge the impact of businessand other stakeholders.

Guiding Principles on Business and Human Rights,*2 providing

activities on stakeholders’ human rights and to deliberate on

appropriate education to employees, adhering to laws andmechanisms and policies for preventing human rights violations.

regulations in all the regions and countries where we operate,

The executive officer in charge of CSR chairs this body, whoseand seeking ways to honor the principles of international

members include representatives from sales, procurement,

human rights when faced with conflicts between internationally

human capital, CSR, and other corporate units. Hitachi isrecognized human rights standards and national laws.

improving its Group-wide human rights awareness based on

1

In fiscal 2014, Hitachi added the perspective of businessthe guidelines discussed and written by the Corporate Humanand human rights to its existing structures and policies andRights Promotion Committee. Information from these delibera-developed guidelines on human rights due diligence thattions is shared with all employees through business unit andexplain procedures for everyday business practices. Based on

business site committees, led by business unit presidents andthese guidelines, we initiated human rights due diligence in two

division heads. Business units provide consultation services

divisions—procurement in fiscal 2015 and human resources inthrough which employees can seek consultation on issues

fiscal 2016—assessing, prioritizing, and considering measures

such as sexual harassment and are working to ensure thatto reduce the human rights risks with which Group employees

those coming forward are treated with respect and dignity.

are likely to be confronted.

In a practice launched in fiscal 2014, we distribute a humanrights message by Representative Executive Officer, President,
and CEO Toshiaki Higashihara every year on December 10,

Hitachi Sustainability Report 2017

Contents

48

Introduction

Management Approach

Activities

Performance Data

Human Rights

Human Rights Day. In fiscal 2016, approximately 156,000

rate came to 41.9% at Hitachi, Ltd. and 48.4% among Group

Human Rights Due Diligence Initiatives

executives and employees at Hitachi, Ltd. and Group companies

companies. We launched an e-learning program on businessIn our Hitachi Group Human Rights Policy, we pledged toin and outside Japan received an e-mail message regarding

and human rights in October 2016, in which approximately

develop mechanisms for and to continue the implementation

global trends in human rights, Hitachi’s human rights policy

186,000 Group executives and employees in Japan andof human rights due diligence. Toward that end, in fiscal 2013

and activities, and the importance of individual employees

elsewhere had participated by March 2017. Using educationalsome business units launched pilot programs for human rights

respecting human rights in their work.

materials developed in line with the Hitachi Group Humandue diligence to identify key issues that need to be clarified

Rights Policy, adopted in May 2013, the program aims tofor Group-wide implementation while also analyzing andensure that employees understand Hitachi’s human rights

evaluating human rights risks in six ASEAN countries. Basedpolicy and act accordingly. In accordance with these goals,

on the results of these pilot programs, in fiscal 2014 wethe training is provided to all employees once every three years

developed a document offering guidelines for implementing

on average and regularly revised based on human rights

human rights due diligence in collaboration with the nonprofit

trends worldwide.

organization Shift.

Compliance Reporting System

Hitachi, Ltd. Framework for Promoting Respect for Human Rights
Corporate Human Rights Promotion Committee
Chairperson
Vice-Chairperson
Members

Executive officer in charge of CSR
Executive officer in charge of human capital ersonnel in charge of corporate divisions such as sales, procurement,Phuman capital, and CSR

Business Unit and Business Site Committee
Chairperson
Members

Business unit presidents and division heads
Division managers

Business Unit and Business Site Committee
Chairperson
Members

Business unit presidents and division heads
Division managers

Business Unit and Business Site Committee
Chairperson
Members

In July 2016, 30 executive officers from Hitachi, Ltd.

In fiscal 2015, we initiated human rights due diligence inparticipated in an officer training session on the theme ofthe procurement divisions, whose activities are at risk ofhuman rights challenges for global businesses led by Shigeyuki

negatively impacting the human rights of workers in the

Kumisaka, president of the Buraku Liberation League, which issupply chain and local communities. In fiscal 2016, wefighting for the rights of the descendants of former outcast

incorporated the results of human rights due diligence into

communities. Touching on several cases, Kumisaka discussed

the revision of our CSR procurement guidelines for suppliers

the human rights situation in Japan and the challenges thatand in other specific initiatives.

must be overcome to solve the global immigration issue as
Hitachi’s business becomes increasingly globalized.

Business unit presidents and division heads
Division managers

Fiscal 2016 also saw the launch of human rights due
diligence for human resources divisions at Hitachi. The operations in those divisions touch on many issues connected tohuman rights for employees, including working hours,
employee treatment, and health and safety. The humanresources and CSR divisions at Hitachi, Ltd. also played a

Raising Human Rights Awareness Among
Executives and Employees

central role in a working group that was formed to assess andHitachi conducts regular group training and seminars and uses

tion strategies. The group included CSR representatives fromvideos to educate employees in each business unit and Grouptwo business units, three Group companies, and four regional

company. The target is for each employee to attend theseprioritize human rights risks for employees and explore mitiga-

A scene from the officer training session.

headquarters outside Japan. It also investigated grievancesessions at least once every three years (equivalent to a yearlymechanisms, analyzing existing procedures and exploring

participation rate of 33.3%). In fiscal 2016, the participation

ideas for improvement. Starting from fiscal 2017, Hitachi will

Hitachi Sustainability Report 2017

Contents

49

Introduction

Management Approach

Activities
Human Rights

begin implementing specific human resources initiatives basedin the statement published by Hitachi, Ltd. in accordance withon the results of human rights due diligence in fiscal 2016.

the UK Modern Slavery Act 2015.

Human Rights Due Diligence in Procurement

Addressing the Risks of Child and Forced Labor
The Hitachi Group Codes of Conduct clearly express Hitachi’s
firm stance against the use of child labor or forced labor either
in Group companies or along our supply chain. The company
president’s human rights message for fiscal 2016 also
addressed the issues of forced labor and human trafficking.
Recognizing the growing risks of forced labor amid the ongoing
globalization of business, Hitachi also developed an e-learning
program for all Group executives and employees on the subjectof human rights. The program draws on specific case studies
to convey the importance of preventing forced labor andhuman trafficking problems before they occur.
Hitachi’s CSR procurement guidelines for suppliers also
clearly forbid the use of child labor or forced labor. As part ofour efforts to raise awareness all along the supply chain,these guidelines are distributed to tier 1 suppliers of business
units and Group companies. In fiscal 2016, a four-partwebinar*1 series was also held for employees responsible for
procurement and human resources in Southeast Asia, where
the risk of forced labor is expected to be higher. Speakers
from nongovernmental organizations and businesses implementing advanced countermeasures were invited to lead thewebinars, each of which was attended by an average of
45 people.
All of these initiatives designed to prevent any instance of the“modern slavery” of forced labor and human trafficking either
within Group companies or along our supply chain are covered*1 Webinar: A portmanteau word combining “web” and “seminar,” used to refer to an interactive
seminar held online.

Supply Chain Management
Statement in Accordance with the UK Modern Slavery Act 2015

Performance Data

Hitachi Sustainability Report 2017

Contents

50

Introduction

Management Approach

Activities

Performance Data

Human Rights

Respect for Workers’ Rights
Hitachi’s Approach

Freedom of Association and Collective
Bargaining

Cooperating to Improve Health and Safety
Hitachi and the Hitachi Workers Union are dedicated to improving health and safety levels through employee-management

Our employees are tasked with maintaining respectfor human rights within the value chain, but at the

Respecting the Rights of Employees

cooperation. This includes signing a collective agreement on

same time, in their role as employed persons, they

The Hitachi Group Codes of Conduct were approved by

the promotion of, among other things, health and safety mech-

are also stakeholders whose human rights must

the Senior Executive Committee to specify the standards ofanisms, a health and safety committee, education and training

be respected.

behavior applicable throughout the Hitachi Group. It calls for

programs, and health checks for employees.
The committee works to ensure a healthy and safe work

Hitachi’s longstanding approach has been to givethe upholding of the fundamental human rights of employees,

importance to building a mutually beneficial relation-in line with the principles of the United Nations Global Compact.

environment through initiatives that include planning andship with our employees as partners in a common

In Japan, where labor unions are recognized, for example,

tracking health and safety activities each year, reviewing

effort. Given the globalization of our business, there is

we espouse the three fundamental rights of labor unions (tomeasures to prevent industrial accidents, and sharing infor-a growing need to respect workers’ rights not only byorganize, to bargain collectively, and to act collectively) as seen

mation on whether employees have received their annualcomplying with international ethics codes but also byin the collective agreement between the CEO of Hitachi, Ltd.

health check-ups.

taking into account the respective practices andand the representative of the Hitachi Workers Union.

cultures of each country.
system of mutual cooperation to build an equitable

Notification of Work-related Transfers andReassignments

worker-employer relationship and improve worker

The collective agreement between Hitachi, Ltd. and the Hitachi

health and safety levels based on respect for workers’

Workers Union states that any transfer or reassignment of an

fundamental rights.

employee for work-related reasons should adequately take into

Moving forward, we will continually strengthen ourconsideration the situation of the employee, as well as requiring
the company to promptly inform the Hitachi Workers Union of
the decision. More specifically, in cases of large-scale transfers
or reassignments, the company will consult with the labor
union regarding the basic issues involved.

Hitachi Sustainability Report 2017

Contents

51

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Labor Practices
Hitachi’s Aims: A Global Work Environment Rewarding Individuality and Diversity

Employees are valued partners who play a vital role in sustaining our business. The cornerstone of a sound and mutually beneficial relationship between employees
and the company, and the motive force for sustainable growth, is to provide proper working conditions for employees and build a framework for the maximizationof their potential. By complying with all work-related laws and regulations and creating a work environment that maintains and develops fair employment relations
and makes full use of the abilities of its diverse human capital, Hitachi aims to be a company in which all employees can engage in safe and fulfilling work.
Hitachi strives to remain in dialogue with each individual employee about their basic rights and career development. Systems are in place for employees todiscuss matters with human resources at the level of the business unit, and a variety of other contact points, such as a health and safety committee and labor
unions, are available to employees as well. When necessary, we encourage employees to use the Compliance Reporting System, which is designed to ensure
a careful and thorough response to all issues raised.

Fiscal 2016 Overview of Activities
In fiscal 2016, in addition to our continuing efforts to promote the career development of female employees, build a work environment that embraces diversity
in our human capital, and employ people with disabilities, we conducted various training sessions that are aligned with employees’ respective career paths.
Furthermore, as part of our undertaking in the area of occupational health and safety, from fiscal 2017, we will launch a new initiative under the theme of “healthand productivity management.”
Main Plans and Results
Promoting Diversity and Inclusion
Policies

FY 2016 goals/plans

Results in FY 2016

Creation of a work
environment thatembraces diversity
in human capital(promotion ofwork-life
management)· Help employees· Introduced an Allowance for Balancing Child Care and Work inbalance work with
October 2016
child- and nursing care · Launched workstyle reforms (Hitachi Work-Life Innovation) in· Realize flexible
December 2016
workstyleAchievementlevel

FY 2017 goals/plans★★★

· Continue to help employees balance work with child- and nursing care
· Promote workstyle reforms (Hitachi Work-Life Innovation)(1) R aise awareness(2) P romote flexible workstyles(3) P romote operational reforms(4) R ealize health and productivity management

Hitachi Sustainability Report 2017

Contents

52

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Support of female
employees’ careerdevelopment· Support female
employees’ careerdevelopment· Raise awareness ofmale employees andmanagers; transform
workplace culture· Supported female employees’ career development(1) 169 female employees participated in the Women Leaders’ Meeting(2) 1
 55 female employees participated in the career seminar forjunior-level female employees (including Group companies)(3) 4
 85 female employees took part in the pre-maternity leave andback-to-work support seminar· Efforts made to raise awareness of male employees and management and to transform workplace culture(1) H eld diversity workshops at multiple business sites(2) 1
 53 employees participated in management seminar for managers with female subordinates (open seminar held at Hitachi, Ltd.);
individual seminars were held at each business site★★★

· Continue with support of female employees’ career development(1) Implement Hitachi Group Women’s Career Success Survey(2) P romote participation of female employees in management
trainings and selective training courses(3) H old Women Leaders’ Meeting(4) H old career seminar geared for junior-level female employees(5) H old pre-maternity leave and back-to-work support seminar· Continue with efforts to raise awareness of male employees andmanagers(1) H old diversity workshop(2) Hold management seminar for managers with female subordinates

Promotion of
employment ofpeople withdisabilities within
the Group· Achieve Japan’s legallyrequired employment
rate at Hitachi, Ltd.
· Ensure strict
compliance withlegal employment rate
at all Hitachi Group
companies in Japan· Achieved 2.15% employment rate at Hitachi, Ltd. and 2.25% atGroup companies in Japan; seven companies still below the legal
rate (as of June 2017)· Held a special hiring fair for people with disabilities· Held study sessions concerning employment of people withdisabilities· Held group interviews for people with disabilities in conjunction with
employment support services★★★

· Expand hiring through the founding of a special subsidiary· Encourage responsive measures from companies that have not met
Japan’s newly stipulated legally required employment rate
· Hold Hitachi Group job fair for people with disabilities

Promoting Occupational Health and Safety
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Raising of healthand safety management levels
across the Groupthrough promotionof global healthand safety
management· Continue to implement
and review minimumGroup-wide healthand safety standards· Implement preventive
measures by utilizing
best practices andaccident cases· Introduce measuresin response to newlaws and regulationsin Japan· Shared best practices and knowledge on the topic at Group-wide
occupational health and safety conference· Put in place stress-check system stipulated by law★★

· Continue to implement preventive measures by utilizing best practices and accident cases· Grasp the safety status by collecting Global Safety Figures· Promote office well-being by utilizing the findings from the collective
analysis of the stress check· Introduce support system for employees returning to work from leaveof absenceHitachi Sustainability Report 2017

Contents

53

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Policies

FY 2016 goals/plans

Health andproductivity
management

Results in FY 2016

Achievementlevel

FY 2017 goals/plans· Prepared and streamlined specific action policies for fiscal 2017
· Acquired 2017 Certified Health and Productivity Management
Organization Recognition Program★★★

· Strengthen efforts for health and productivity management throughworkstyle reforms as well as health promotion by collaborating with
Hitachi’s Health Insurance Society

Achievementlevel

FY 2017 goals/plans★★★

· Hold career training for 650 new employees· Hold H-CDW for 700 assistant managers· Provide Life Plan Training, including participation in (1) e-learning
program for 1,000 employees; (2) seminars for 700 50-year-old
employees on annual contracts; and (3) Life Plan Briefing for 500
employees at age 58· Build workplace structures to promote self-directed careerdevelopment

A Strategy for Growing Together with Our Global Human Capital
Policies

FY 2016 goals/plans

Implementation ofcareer training for
employees, young
and old, at various
stages in theircareers· Hold career training for · Held career training for 660 new employees
660 new employees· Held H-CDW for 832 new assistant managers· Hold Hitachi Career· Provided Life Plan Training, including (1) e-learning program with
Development
1,808 registered employees that started in June; (2) seminars for
Workshop (H-CDW)
738 50-year-old employees on annual contracts; and (3) Life Planfor 800 new assistantBriefing for 506 employees at age 58
managers· Provide Life Plan
Training, including
participation in(1) e-learning program;(2) seminars for
50-year-old employees
on annual contracts;and (3) Life Plan
Briefing for 500
employees at age 58★★★: Achieved ★★: Partially achieved

Results in FY 2016★: Not achieved

Hitachi Sustainability Report 2017

Contents

54

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Achieving a Fair and Equitable Work Environment
Hitachi’s Approach

Decent Work

Ensuring that hiring and promotions, as well as

Hitachi’s Thinking on Decent Work

worker assessment and compensation, are fair is not

Human resources are key to Hitachi’s ability to adapt to rapidsocial and environmental change and continue providing newvalue to customers. Diversity and inclusion are crucial to ourstrategy, and throughout the Hitachi Group we promote HR
management practices that maximize the strength we candraw from a diverse, highly engaged workforce transcending
national and corporate boundaries. Our globally shared leadership development program fosters leaders who champion ourSocial Innovation Business around the world, while a rangeof other training programs help employees obtain theknowledge and skills they need to provide innovative solutions
to our customers.
Hitachi also views it as crucial to create a work environment
in which each employee can engage meaningfully in productive
work. As part of our efforts in this area, we have unified performance review standards worldwide in a highly transparent andfair system for evaluating each employee’s achievements. We
have also enacted safety policies that apply across the entire
Hitachi Group and continue striving globally to create
workplaces that offer safety and peace of mind to those whowork there. Other initiatives aim to make it easier to achieve
work-life balance, reduce work hours, and promote healthy
lifestyles among employees. Additionally, we conduct anannual survey of employee engagement levels across theGroup, using the results as the basis for further improvement
in management practices.

only a duty that companies must fulfill toward theiremployees but also an important means of building ahealthy relationship with outstanding human capital.
Hitachi has a human resource strategy that emphasizes
the concept of “decent work” (that is, work that ishumane and fulfilling). This concept has taken on
increased importance globally as a standard for labor
practices, with the International Labour Organization,for example, positioning the concept as an important
objective of its activities. Companies are expected toensure decent work through policies appropriate totheir businesses.
Hitachi’s policies toward realizing this ideal ofdecent work go beyond promotion of diversity andinclusion among our human capital around the world
to include a variety of other initiatives reflecting the
globalization of business, from worldwide implementation of fair employee evaluation systems and working
conditions to ensuring that executive positions areopen to employees from all regions. We will continue topromote the creation of open, fair work environmentsthat provide greater job satisfaction, in accordance

Ensuring Fair Evaluation and Compensation

with the business conditions and economic environment

With the globalization of business, business frameworks with a
global outlook have become increasingly important. Hitachi isworking to establish management systems based on consistentof each individual country and region.

principles across all areas, including compensation, so thatour diverse human capital around the world can engage at
a high level.
We are developing Group-wide compensation systems thatare fair and competitive in the context of each country or
region’s labor market. Individual performance is also assessedagainst evaluation criteria that are disclosed to all employees.
Every year, the individual achievements of all employees arereviewed to set their compensation, and feedback on theirevaluation results is provided to inspire them to develop andgrow even further.
We ensure compliance with the laws and regulations ofeach country in which we operate when determining compensation. In Japan, starting pay for new graduates—representing
about half of all new graduates recruited each year across theGroup’s global operations—was roughly 20% higher than theweighted average of Japan’s regional minimum wages.
Advancing Global Human Capital

Recruiting Human Capital in Europe
The railway business is an important business field for which
growth is expected in overseas markets, particularly Europe
and Asia. To further solidify our position in this industry, we
shifted the primary site of our railway business to London in2014 and built a global operations framework managed by
Hitachi, Ltd. and several other Group companies, with 40% ofsenior management positions held by European personnel.
The CEO of global operations is a London local who previously
served as president of a Group company in the United Kingdom
and has since become an executive officer at Hitachi, Ltd. as
well. Our railway business is a crucial one, driving Hitachi’s
growth, and we have grown it steadily through M&A and otherstrategic activities.

Hitachi Sustainability Report 201755

Contents

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Promoting Diversity and Inclusion
Hitachi’s Approach

Diversity and Inclusionof people’s individuality. By respecting our employees’ individualities and positioning them as an advantage, Hitachi frames its

Hitachi believes that building a corporate culture thatfully draws on the diversity of human capital, in termsof gender, age, and values, not only offers employees
an opportunity to approach their work with enthusiasm
but also contributes to enhancing competitivenessthrough the provision of solutions that incorporate
diverse perspectives. In recent years, with the growinginterest among stakeholders for personnel policies
enabling flexible workstyles, we are taking a proactive
stance toward implementing this approach.
Hitachi has recognized the importance of diversity
since the 1990s and has built its management systems
accordingly, listening closely to employee feedback. As
our Statement on Diversity and Inclusion explains, weview diversity as our growth engine. We pay particularattention to career development for women, not only
through strict policies on equal pay but also by actively
encouraging the promotion of female employees inaccordance with trends both within Japan and worldwide and by establishing key performance indicators to
track our success. Our other efforts to promote diversity
include work-life management policies that enable
employees at any life stage to find fulfillment in theirwork and initiatives to promote the hiring of people withdisabilities. With the strong commitment of top management, we aim to make a significant contribution throughthe efforts of our diverse human capital to the building ofa more sustainable society for all.

Statement on Diversity and Inclusion

diversity and inclusion as conducive to both the individual’s

Diversity is the wellspring of our innovation and our growth

and the company’s sustainable growth. With strong teamworkengine. Hitachi regards personal differences—gender, nationality,and broad experience in the global market, we will meet ourwork history, age, sexual orientation, and philosophy—as facets

customers’ needs.

Roadmap for Developing Diversity Management

Phase 3:

Diversity promoted as a management
strategy

Phase 2:

From “women” to “diversity”

Phase 1:

2012

Support for women’s careeradvancement

2009“Diversity for the Next 100” launched

Diversity & Inclusion Development
Center set up

2000

2006

FF Plan*1

Diversity Promotion Project
FF Plan II

Support balance between work and nursing
care, etc.
Strengthen senior management
commitment

Enhance Hitachi Group partnerships
Reduce overtime; review workstyles

Promote time- andlocation-free work

Promote diversity awareness; reform work environment
Support work-life balance; support women’s career advancement

Strengthen women’s career development

Introduce, expand support systems for work-life management

1990

2000

2006

2009

2012

2016

*1 The Gender-Free and Family-Friendly (FF) Plan is an initiative to create a better work environment by supporting efforts to balance work and family life and supporting women in the workplace.

Hitachi Sustainability Report 201756

Contents

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Diversity Management Initiative: “Diversity for the
Next 100”

the Next 100.” This means creating an environment where

Development Structure of Diversity Management

women and other members of our varied workforce can use

The Diversity Development Project, launched in fiscal 2006

Since the 1990s, we have been at the social forefront, sup-their skills in leadership and business management.

under the president’s direct control, was replaced in fiscal

porting women and other members of our multifaceted2009 with the Diversity & Inclusion Development Center, which

workforce. This includes setting up systems to help balancecurrently operates under the direct supervision of the Humanwork with child and nursing care. Entering Phase 3 of ourCapital Group of Hitachi, Ltd.

diversity management roadmap, we are embracing diversity as

Hitachi, Ltd. and 17 Group companies operate the Advisorya management strategy under the initiative slogan “Diversity for

Committee and the Diversity Development Council to accelerateawareness across Hitachi as a whole, including support for

Expanding the Scope of Diversity Management

diverse human resources and work-life management. The
Advisory Committee ensures follow-through on our diversity

Gender, etc.

management policy, while the Diversity Development Council

Men and women, family composition,
marital status

discusses specific activities and shares best practices. BothAge

Nationality, etc.

Senior, middle-aged, young

Nationality, race, ethnicity, language

Widening Scope ofDiversity

Group companies and business groups/sites have also set
up their own diversity-promotion organizations and projects,

LGBT

Disabilities

Lesbian, gay, bisexual,
transgender status

Physical, intellectual, mental disability

meet every six months.

such as those to help develop women’s careers, in order toenhance initiatives geared to the challenges faced by individual
workplaces. We also hold regular meetings to exchange

Step 1

Integration
Step 2

Legal Compliance
Step 3

Respect for Diversity
Step 4Competitive Advantage
Diversity promoted as management strategy

Deepening Diversity Management

Minorities integrated into existing organizational
culture, systems, methods, customs

Discrimination banned through force of law(Japan’s Equal Employment Opportunity Act)

Companies, organizations educate staff about
discrimination so differences are actively
embraced, respected
Evolution from respect for differences toorganizational reform as part of strategy to forge
varied strengths into competitive advantage

opinions on diversity with labor unions.

Hitachi Sustainability Report 201757

Contents

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Hitachi Group Diversity Structure

Key Indicators
Hitachi, Ltd. President

Number and Ratio of Female Managers(people)Advisors: External directors

Advisory Committee:
Chief Human Resource Officer (CHRO)
Executive officers and general managers in charge of personnel affairs and laboradministration in Group companies
General managers in charge of personnel affairs and labor administration in business units

Hitachi Group Diversity Development Council
Section chiefs in charge of personnel affairs and labor administration in Group companies,business units, and business groups/sites

Organizations and projects at companies andbusiness groups/sites to advance diversity (including
issues related to women in workplace)

Developing Women’s Careers

Around 50
projects

Diversity & Inclusion Development Center(dedicated organization)
Human Capital Group* Participating enterprises (17 companies as of March 2017):
Hitachi Metals, Hitachi Chemical, Hitachi Capital, Hitachi
Construction Machinery, Hitachi Kokusai Electric, Hitachi
High-Technologies, Hitachi Transport System, Clarion,
Hitachi Urban Investment, Hitachi Appliances, Hitachi
Automotive Systems, Hitachi Consumer Marketing, Hitachi
Industrial Equipment Systems, Hitachi Systems, Hitachi
Solutions, Hitachi Insurance Services, Hitachi Life

(people)800

401

418 5.6%

434

3.5%

3.8%

3.7%

400
200
0

3,670

3,415

600

3,727

6.0%

3,365
474

6.4%

4.0%

509 6.3%

3,000

4.1%

2,000
1,000

73
2000

4,000

2012

2013

2014

2015

2016 (FY)0

Female managers, Hitachi, Ltd. (left scale)
Female managers, Hitachi Group (right scale)
Percentage of total, Hitachi, Ltd.
Percentage of total, Hitachi Group
Note: Figures include section chiefs and above who are full-time, regular employees.

Roundtable Conference with Female Outside Directors. We
intend to create an environment where as many women as

Global Women’s Summit

KPI of Developing Women’s Careers

possible are able to optimize their potential in management

In November 2016, we hosted the first Global Women’s

Hitachi, Ltd. has created two key performance indicators

positions. Alongside these efforts, we are working to change

Summit for female employees of the Hitachi Group. Held in the(KPIs), announced in fiscal 2013, to enable as many female

the mindset of managers and male staff regarding gender

United Kingdom, the event was attended by more than 120 staff

employees as possible to take up leadership positions and toparity and examining our working style as a whole with the aim

members from 25 Group companies around the world andparticipate in management decision making. These KPIs

of transforming our corporate culture.

featured a keynote speech from an external speaker andsignal our commitment both internally and to the world to

Employee compensation is set according to each individual’s

further advance women in the workplace and to improve ourroles and achievements, with no divisions or differences based

individual career development. A presentation about Hitachi’s

diversity management.

on gender or age.

efforts for the promotion of diversity and inclusion also helped
attendees deepen their understanding of the topic. At a sub-In addition to reinforcing existing programs, we will use the
Hitachi Group Women’s Career Success Survey to highlightworkshops on topics ranging from unconscious bias toGoals for Hitachi, Ltd. (KPIs)

sequent networking reception, the participants shared stories

progress with initiatives and outstanding issues in each businessAppoint female executives by fiscal 2015 by promoting from within

about their careers and the issues they faced at their workplace;

unit and to set numerical targets for each unit, strengthening(including the CSR and Environmental Strategy Division chief as a

99% of respondents rated the summit either “Very Good” orour management commitment. We will also boost women’s
individual ambitions and morale through programs such as the
Hitachi Group Women Leaders’ Meeting, which targets female
employees at the general manager level and above, and thecorporate officer in April 2015).
Increase the number of female managers in Japan to 1,000 by fiscal
2020 (2.5 times more than at the end of fiscal 2012).

“Good” in a follow-up questionnaire. We look forward to holding
more events to promote diversity and inclusion globally.

Hitachi Sustainability Report 2017

Contents

58

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Work-Life Management

Enhancing Work-Life Management Support Systems
Since the 1990s, we have been introducing and improving an

Hitachi’s Work-Life Management Approacharray of programs for employees to balance work with family,

Diversity and inclusion boost productivity and grow Hitachi’s

aiming to create a more employee-friendly work environment.

In October 2016, we introduced an Allowance for Balancing
Child Care and Work to further promote work-life management.

business. To ensure that all employees reach their full potential,
enhancing our organizational capabilities and creating newsynergies, we strive to maintain a work environment thatembraces human resource diversity, encourages inclusion, andWork-Life Management Support System at Hitachi, Ltd.
Child-Care Support System
For women

promotes workstyle flexibility.
Hitachi looks beyond work-life balance, promoting work-life
management that enables our employees to take charge ofPregnancy

improving the quality of both their work and their private lives.
workplace through work-life management enhances ourChildbirth

employees’ professionalism and builds character, resulting inboth individual and organizational growth over the long term.
Boost productivity and grow businessCompanyChild-care leave

Return to work

Fulfill potential to contribute to business

For menFertility treatment leave (1 year total)

Nursing-care leave

Nursing-care leave (up to 1 year; canbe taken on nonconsecutive days)

Return to work

Shorter working hours
Work from home
Nursing-care leave (5 days per year)
Family-nursing leave
Child-nursing leave
Half-day leave(unlimited)

Leave for prenatal medical appointments, pregnancy
problem leave, etc.

We believe that optimizing time spent in and outside theEnable diverse ways of working(employee-friendly workplaces)

Nursing-Care Support System

Maternity leave (8 weeks before and 8 weeks
after childbirth)Paternity leave (5 days total)

Child-care leave (up to 3 years, until the child completes the first grade of elementary
school; can be taken on nonconsecutive days)
Shorter working hours (generally 6, 6.5, or 7 hours)
Work from home (career-stream positions)
Family nursing leave (5 days per year), child nursing leave (5 days per child per year)
Half-day leave (unlimited), leave for overseas spouse transfers (3 years or less)
Allowance for Balancing Child Care and Work (up to 100,000 yen per year per child, until
the child completes the third grade of elementary school)
Cafeteria Plan*1 (child-care and nursing-care menu)

Employees*1 Flextime and discretionary labor systems are also available. The Cafeteria Plan is a system in which employees can select the support that they need, when they need it, according to their“Cafeteria Points.”

Hitachi Sustainability Report 201759

Contents

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Return and Retention Rates After Maternity and Child-Care Leave

Sakura Hiroba (Hitachi Chemical Group)(Hitachi, Ltd.)

Established

April 2008

Location

2-27-22 Higashi-cho, Hitachi-shi, Ibaraki, Japan(near Yamazaki Division, Hitachi Chemical)

Capacity

23 children

Ages eligible

Children aged several months up to 6 years old (who have not yet
entered elementary school) of Hitachi Chemical Group employees.

FY 2016
Return rate (%)

Retention rate (%)

Male

96.7

Female

97.1

Male

100.0

Female98.6

Operating hours

7:20–20:20

Key Indicators
Employment of People with Disabilities and Employment Ratio(Hitachi, Ltd.*1)
Legally required employment rate*2(people)
2,000

2.02

2.03

2.08

2.11

In-House Child-Care Centers

1,200

The Hitachi Group, in collaboration with its labor union, has set

Employing People with Disabilities

up in-house child-care facilities as a way to help employees

Expanding Hiring of People with Disabilities

balance work with child-raising.

Hitachi, Ltd. and Group companies in Japan have worked
hard to employ people with disabilities, such as by holding a“Genki Club” logo.

Genki Club

special hiring fair and study meetings for Group companies toshare information. As a result, as of June 2017 the employ-

Established

April 2003

ment ratio of people with disabilities was 2.15% at Hitachi, Ltd.

Location

292 Yoshida-cho, Totsuka-ku, Yokohama-shi, Kanagawa, Japan(Yokohama Office, Hitachi, Ltd.)and 2.25% for the entire Group in Japan. Both of these figures

Capacity

Approximately 70 children

exceed Japan’s legally required employment rate of 2.0%.

Ages eligible

Children aged several months up to 6 years old (who have not yet
entered elementary school) of Hitachi Group employees who live nearor commute to the Totsuka area in Yokohama.

Operating hours

7:30–20:00

Excursion (sweet potato digging).

Christmas party.

We will maintain our Group-wide drive to hire more people
with disabilities.

1.85
981

1,150

1,243

(%)
2.1

1,600

1,332

2.15

1,370.5

2.0

1,437

1.9

800

1.8

400

1.7

0

2000

2013

2014

2015

2016

2017

(FY)

Employment of people with disabilities (left scale)
Employment ratio (right scale)*1 Includes 11 special subsidiaries and related Group companies.
*2 The legally required employment rate was 1.8% up to fiscal 2012 and has been 2.0% since
fiscal 2013.
Notes:• Data compiled in June of each fiscal year.
• The employment ratio is calculated according to methods prescribed in the relevant laws.

0Hitachi Sustainability Report 2017

Contents

60

Introduction

Management Approach

Activities
Labor Practices

Diverse Support Systems for Employees

The defined contribution pension plan encourages employees
to participate in their postretirement planning by providing

Support Systems that Meet Diverse Employee Needs

asset management and investment education, as well as

To respond to the diverse lifestyles and needs of our employees,

other support. We increased the choice of benefit options andHitachi, Ltd. has provided a wide range of support by introducing

timeframes for both the defined contribution pension plan andbenefits* that include housing support, such as dormitories,

the defined benefit pension plan in order to better meet thecompany housing, and a housing allowance system, as well as

varied needs of employees.

1

an asset-building savings program, an employee stock owner-

In October 2016, to actively support the efforts of employees

ship program, group insurance, consolation payments, and awith children to balance work and parenting responsibilities,

Cafeteria Plan program.

Hitachi introduced a system of allowances to partially defray

The cafeteria plan allows employees to select the benefits

day-care and babysitting costs, further enhancing support forthey receive. This allows them to tailor a plan to their indi-

work-life management.

vidual lifestyles and living needs by choosing from a list of*1 For full-time, regular employees.

options, such as skills development, childcare, nursing
care, health promotion, and donations. Employees use
Cafeteria Points to select the type of support they needwhen they need it.
For our retirement and pension plans, defined contribution and defined benefit plans have been introduced
across the Hitachi Group in response to the diversificationof lifestyles among the elderly and the changes in formsof employment.

Enhancing Work-Life Management Support Systems

Performance Data

Hitachi Sustainability Report 201761

Contents

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Promoting Occupational Health and Safety
Hitachi’s Approach

Occupational Health and Safety

Framework for Promoting Health and Safety
Hitachi views occupational health and safety as vital precondi-

As a corporate group that engages in multinational

Fundamental Idea for Occupational Health and Safety

tions for advancing our business. Manufacturing and mainte-business activities, building safe, healthy, andEnsuring the health and safety of all employees is the basic

nance are particularly accident-prone lines of work, and we havehygienic workplace environments at business sites

principle underlining the Hitachi Group Health and Safety

around 36,000 employees performing work of this type inaround the world is a Group-wide management task

Policy. This policy is shared by all Hitachi Group companies

Japan. We promote a range of Group-wide occupational healthfor Hitachi. This means that we must be sure to takearound the world. Employees work together to create safe,

and safety activities that include preventing workplace accidents

into careful consideration the social conditions andsecure work environments that aim to be accident free.

by setting and applying minimum safety standards to beobserved by Group manufacturers around the globe as well as

workplace environment of each country and region.
Hitachi has thoroughly implemented measures foroccupational health and safety since its founding.
Currently, we are advancing a global occupational
health and safety system based on the concept ofdecent work while also drawing on the lessons andknowledge gained at workplaces in Japan. The measures we take go beyond simple adherence to international ethics codes and include a unique award
program to publicize best practices, support for
employee-run health promotion activities, and a rangeof other initiatives. By implementing these at businesssites around the world, we seek to continue fulfilling
our responsibilities as a global business by creating
safe, healthy, and rewarding work environments
across the entire Group.

Hitachi Group Health and Safety Policy

taking additional measures tailored to the specific conditions at

Principle“Health and Safety Always Comes First.”

each company. We respond quickly when an accident occurs,

Policies
In accordance with our mission, “Contribute to society through thedevelopment of superior, original technology and products,” the HitachiGroup will endeavor to ensure safe and healthy workplaces under the
principle of “Health and Safety Always Comes First.”

health and safety management. Furthermore, we foster under-

To accomplish this, we will:
1. Continually be involved in health and safety activities in order toprevent work-related injuries and sickness by designating the healthand safety of employees as management’s top priority.
2. Comply with the local laws and regulations in each company regarding
health and safety.
3. Develop a safe and comfortable work environment by encouraging
employees to maintain their own health and taking a proactive stanceon health and safety activities in the workplace.
4. Require an understanding of Hitachi’s principle and the promotion ofhealth and safety awareness from all business partners of the HitachiGroup.
5. Contribute to the creation of a safe and pleasant society by emphasizing activities that make health and safety a top priority in all of
Hitachi’s business activities.
Revised November 2013using incidents to make improvements and boost our levels ofstanding of work procedures and workplace hazards in newly
hired employees and temporary workers by providing health andsafety training in advance along with guidance in the workplace.
In accordance with Japanese law, a health and safety commission—composed of company representatives, labor-union
officials, and employees—is convened every month to discussand share information related to such issues as workplace
accident causes and countermeasures, the situation regarding
employees who have taken sick leave, and other points ofconcern. In 2016, we recorded one fatal workplace accident inJapan and two in the rest of Asia.
In fiscal 2011, we introduced the Hitachi Group Key Safety
Management Designation System. This initiative tracks key
safety management improvements at Hitachi Group companies
and business sites in Japan that have experienced serious
work accidents. Under the leadership of top executives, theseHitachi Sustainability Report 201762

Contents

Introduction

Management Approach

Activities

Performance Data

Labor Practices

companies and business sites take on management-driven

Once a year we hold the Hitachi Group Health and Safety

Hitachi Group’s Global Safety Figures (Occurrence rate*1)

and bottom-up initiatives to formulate and promote specific

2014

2015

Research Presentation Meeting for Hitachi health and safety

2016

improvement plans. We are also reshaping the Group’s safety

Americas

2.25

4.35

6.41

officers. The 60th gathering, held in November 2016, attracted

management framework and introducing targeted safety meas­

Europe

3.34

2.02

5.07

around 160 participants, who shared newfound knowledgeures, including extensive investigations of the cause of serious

China

2.38

2.10

1.26

Rest of Asia

1.65

0.80

1.72

from case studies and heard special lectures from outside

Other

20.53

22.05

7.74

experts on ways to improve health and safety activities at com-

engagement of third parties with a high level of health and

Japan

0.53

0.42

0.35

panies. Around 80 occupational healthcare workers, including

safety expertise to diagnose safety issues.

Global total

1.23

1.21

1.33

physicians and public health workers, participated in the 16th

accidents, reviews of risks to reduce potential accidents, and*1 Occurrence rate is the rate of workplace accidents per 1,000 directly contracted employees
resulting in fatality or work-time loss of more than one day.

Key Indicators

1.59

1.58

1.66

1.61

1.06

1.06

1.5

1.00

0.94

Sharing Health and Safety Informationin the Hitachi Group

1.63

0

0.39

0.41
0.14

0.19
2012

2013

0.41

2012 to ensure that every Hitachi Group company in Japan

0.54

0.51

can track the health and safety performance of the entire

0.22

0.18

Hitachi Group.

2015

2016

0.27
2014

ness sites, and discussed training approaches for relevant
healthcare workers.

We built the Hitachi Group Health and Safety Portal System in

1.15

1.0
0.5

Participants presented research results, shared information on
methods for improving occupational health programs at busi-

Occupational Accident Rates
2.0

Hitachi Group Industrial Health Conference in March 2017.

(FY)

All industries
Manufacturing industries
Electrical machinery sector
Hitachi Group
Notes: Occupational accidents are defined as those involving fatality or work-time loss of morethan one day. Hitachi Group figures for Japan, including Hitachi, Ltd., are for 175 Group
companies in 2012; for 195 Group companies in 2013; for 251 Group companies in 2014;
for 240 Group companies in 2015; and for 200 Group companies in 2016.

The Hitachi Group Health and
Safety Award Program
We have implemented the Hitachi Group Health and Safety

Group-wide information on work accidents is registered inAward Program to recognize Group companies in Japan thatthe system so that companies can track causes and see what

extend their accident-free records or that receive prizes forpreventive measures have been initiated. To help prevent

health and safety from external organizations.

recurrences, statistics are kept on types of accidents. Since
2014, we have carried out initiatives to share information on
workplace accidents globally, including one that tracks andprovides feedback on accidents occurring at Group companies
outside of Japan.

Hitachi Sustainability Report 2017

Contents

63

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Initiatives to Improve Employee Healthhealthcare workers, and human resource departments to

Health is the foundation for being able to work with energy andimprove workplace environments. In combination, these efforts

peace of mind. The fundamental principle of the Hitachi Groupare expected to help prevent mental health issues and revital-

Health and Safety Policy is that “Health and Safety Always

ize workplaces. Recognizing that an understanding of basic

Comes First.” Based on this principle, we are engaged inmental health and stress coping skills is an effective preventive

efforts to maintain and improve the health of employees.

measure, we also conduct regular e-learning and other training

In Japan, occupational healthcare workers, human resource
departments, and the Hitachi Health Insurance Society work

sessions for our employees, including temporary workers.
Hitachi’s efforts in this area were recognized under the 2017

together to provide a range of health support and appropriate

Certified Health and Productivity Management Organization

health management in accordance with Japan’s Industrial

Recognition Program, in the large enterprise category

Safety and Health Act.

(White 500).

In Ibaraki, Tokyo, and Kanagawa Prefectures, where many
Hitachi Group business sites are concentrated, a system of
health-management centers has been put in place, staffed withoccupational doctors, nurses, and other occupational healthcare personnel. The center supports the health maintenance of
employees by providing them with health guidance based on
periodic health checks and other examinations to prevent
serious disease, while also offering medical interviews andadvice to employees working long hours to head off mental
and physical disorders. We are also taking steps to raise healthawareness through consultations that can help relieve employees’ health concerns and promote regular exercise.
In December 2015, revisions to Japan’s Industrial Safety
and Health Act took effect, requiring businesses of 50 or more
employees to put in place a stress-check system. We areproactively implementing stress checks at all business sites inJapan—even those employing fewer than 50 employees,
which are only required to make efforts toward compliance—topromote awareness of stress among all employees. Groupanalysis results from these stress checks will also be used byworkplace health and safety committee members, occupational

Health committee members and healthcare workers discuss environmental
improvement measures with HR staff.

Hitachi was recognizedunder the 2017 CertifiedHealth and Productivity
Management Organization
Recognition Program.

Hitachi Sustainability Report 2017

Contents

64

Introduction

Management Approach

Activities

Performance Data

Labor Practices

A Strategy for Growing Together with Our Global Human Capital
Hitachi’s Approach

Global Human Capital Development

Global Recruiting and Globalizing Human Capital
As a means of developing markets worldwide, we have been

The globalization of the economy has led many companies to accelerate the shift toward multinational opera­
tions. Fostering global human capital has thus become
indispensable to providing common global services
while at the same time meeting the needs of eachcountry and region. Impacting heavily on the employment and human resource strategies of companies
over the medium- to long-term, though, are the fallingbirthrates and aging populations of industrial countries
and the population explosion in developing nations.
The Hitachi Group, with a combined workforce ofaround 340,000 people engaged together in businessactivities in countries and regions around the world, ispromoting a global human capital management strategy.
Specifically, in order to attract, promote, and develop
the right human capital, we are taking proactive
steps like standardizing required employee skills andevaluation standards globally and rendering humancapital visible throughout the Group. We are also
working to promote employee development from a
global perspective by drafting measures to share values
and promote mutual understanding and formulating
programs to develop human capital capable of meetingthe needs of global operations. Through additional
initiatives such as effective implementation of Hitachi’s
Global Performance Management (GPM) to improve
employee engagement and analysis of feedback fromour global employee survey, we will continue ourefforts to perfect a human capital strategy that allows
us to develop along with our employees.

Advancing Global Human Capitalaccelerating the globalization of human capital in Japan

Our Group-wide global human capital management strategy

through three initiatives: (1) recruiting “global business person-

optimizes both human resources and organizational perform­nel” who can promote global operations, (2) providing younger

ance in pursuit of our goal of becoming an Innovation Partner

Japanese employees with experience outside Japan, and (3)for the IoT Era.

providing globally unified management training.

One example of our initiatives is the Global Human CapitalGiven the globalization of our business, our hiring activities

Database covering all Hitachi Group employees, excluding

are designed to secure the right personnel. In principle, we

factory workers outside Japan. This database enables us tocategorize all employees graduating from universities and tech-fully ascertain the status of worldwide Group human capitalnical colleges as global business personnel who can contributeand to assess macro management data, such as the allocation

to driving our global operations. Our priority in employing suchof human resources. We have also built a global grading

personnel is to attract those who are eager to build their foreignsystem that applies to all managers in the Hitachi Group

language skills and relish the challenge of working in different

worldwide, using it as a common platform for job evaluations

cultures, social settings, and work environments.

throughout the Group and as a common standard for assessing
the value of management duties.
In addition, we introduced a performance management
system at Hitachi, Ltd. and at some Group companies
worldwide to link the individual and operational business goals,
with the aim of promoting mutual sustained improvement andthe growth of both individuals and businesses. This system

Key Indicators
Non-Japanese Employees*1 (Hitachi, Ltd.)(People)
750

446

500

will be expanded to include more companies. With an eye tosupporting the advancement of employees as our global

638
509

340
257
250

operations expand, we are introducing common global hiring
systems to secure talented personnel, boost efficiency, andreduce hiring costs.

0

2012

2013

2014

2015

2016

*1 Figures include contract-based technical intern trainees with fixed terms.

(FY)Hitachi Sustainability Report 2017

Contents

65

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Providing Younger Employees with Overseas Experience

global business expansion, with special reference to emerging

our corporate value. Along with promoting self-understanding

Hitachi maintains broad programs to systematically cultivate

markets, and explore how these strategies can be applied toand fostering strong individuals with the independence andand secure people who can succeed in global business. To

Hitachi’s existing businesses. In fiscal 2016, 23 people wereautonomy to think and act for themselves, we are also provid-

develop the careers of people capable of understanding andselected to participate in GAP-K over a three-month period ining support to create a framework that will capitalize on theadapting to local cultures and lifestyles, we have offered aJapan and India.

engagement and motivation of individual employees and toprogram for younger employees to live outside Japan. We

Additionally, Hitachi has held the Global Advanced Program

have sent around 8,300 Group employees over six years

for Leadership Development (GAP-L) in Singapore every year

teamwork needed to enhance organizational strength

beginning in fiscal 2011, allowing them to take part in moresince fiscal 2012. The program mainly targets local humanand performance.

than 80 programs designed to promote understanding of otherresources with potential for leadership at the respective

cultures and to engage in language studies, local field studies,

overseas subsidiaries. It is aimed at fostering a deeper under-

Future Initiatives for Career Development

and internships, as well as to provide opportunities to work

standing of the Hitachi Group’s global growth and developing

In pursuit of becoming a major global player, we are upgradingwith local people to resolve social issues. In fiscal 2015, we

the leadership, thinking, and skills needed for such growth.

individual and organizational performance as one of our top

shifted our focus to a practical, work-related model of overseas

In fiscal 2016, 24 leaders from around the world took part inpriorities. We create value built on employees’ individuality andpostings instead of the former emphasis on language learning

the program.

personal aspirations by implementing Hitachi’s Global Perfor-

enhance mutual understanding as a way of fostering theStarting in fiscal 2014, we also initiated standard training

mance Management (GPM) grounded in diversity and the individ-

employees ready to take on global challenges. We will continue

courses for general managers and new managers. Aroundual. We are also committed to supporting career developmentwith these initiatives in fiscal 2017.

7,200 people worldwide have taken part in these courses

by fostering communication and mutual understanding

across our Group. We will continue to globalize our manage-

between employees and their organizations based onment development programs and cultivate leaders to guide us

programs encouraging individual employees to take greater

Along with the rollout of global human capital management, wetoward further growth in line with our global human capital

control of developing their own careers. In these ways, weare also globalizing our human capital development programs.

management strategy.

provide the resources and tools that enable a wide range ofand cross-cultural activities to accelerate the development of

Globalizing Management Training

people to work together with enthusiasm.

We began to thoroughly revise our training of management
candidates in fiscal 2015, implementing the Global Advanced

Career Development Support

Program for Key Positions (GAP-K) to accelerate their develop-

There are differences among individual employees with regard

Conducting a Global Employee Survey

ment. GAP-K helps participants to look at themselvesto what they find fulfilling in their lives and careers. Bearing thisSince fiscal 2013, we have been conducting the annual global

objectively through three modules and to gain a deeper

in mind, Hitachi has developed a broad range of career develop-

employee survey, Hitachi Insights, as a way of measuring

understanding of the Hitachi Group Identity and their own rolement support that focuses on employees’ “internal careers,”

employee engagement.*1 In September 2016, the survey wasin maintaining it. They commit themselves to vigorously andnamely, their individual values and views on the significanceadministered for the fourth time. Around 210,000 employees

fully resolving business issues and challenges with a sense ofand meaning of their work. In addition to ensuring that theseworldwide were sent the survey in one of 14 different

mission, share values and goal-oriented thinking while inspiring

individuals can fulfill their potential and maximize their creativity,

languages, and roughly 180,000 responses were received.

others, and declare, in their own words, how they will put their

our aim is also to link that individual growth to the positive

skills into practice. Participants also discuss strategies foroutcomes and growth of the organization, thereby enhancing

In accordance with the 2018 Mid-term Management Plan,
the contents of the survey were partially revised in fiscal 2016

Hitachi Sustainability Report 2017

Contents

66

Introduction

Management Approach

Activities

Performance Data

Labor Practices

to measure internal awareness and understanding of the plan

Every fiscal year we also conduct “performance planning,” incan direct the development of their own career and skills.

along with employee attitudes toward Hitachi’s corporate

which individual employees work with supervisor guidance and

H-CDW has gained recognition as a high-quality program for

culture. The results in all 14 categories, including those

support, consulting with their supervisors to reach a consensus

in-house career development that has built up research andconcerning targets in the plan, improved compared to theregarding short-term objectives. These consultations include

improvements during a period of over 40 years.

previous fiscal year’s results.

discussions about past work and evaluations of the content of

According to the January 2016 survey conducted of the

Hitachi scored particularly well in “pride in your company”

the work performed to date and the degree to which employee

most recent participants, about 80% of the 422 answers

and “teamwork,” suggesting that employees are proud to begoals were met, followed by the setting of goals for the next

received from group managers and about 70% of the 277

part of a company that is aiming to grow globally as an

fiscal year. Repeating the GPM cycle improves individual

answers from section chiefs agreed that “H-CDW has been

Innovation Partner for the IoT Era. On the other hand, the low

performance and further increases motivation and creativity,

helpful to my career development and work.” Specificscores for “resources and support” that were observed in fiscal

spurring individual growth and improving organizational

responses received include “I began to seriously examine

2015 did not improve. Employees may have expected Hitachi

results. Along with GPM, employees also take part in career

my medium- and long-term life plan,” “I gained a renewed

to do better on the level of staffing as well as information andconsultations with their superiors to discuss their medium- andawareness of the importance of my position and responsibili-

resource tools—a situation we will continue to address by

long-term career plans regarding such matters as requests forties,” and “I started to think deeply about my career andreforming working patterns, introducing new tools, andtransfers or overseas postings.

became conscious of my actions.” Of the responses fromdeepening communication with employees.

In addition, Hitachi administers the Career Counselingsection chiefs, about 60% reported making use of theirSurvey results are sent directly to immediate section andCenter as part of career development support, in order toworkshop experiences in managing subordinates. In addition

department heads so that they can confirm the survey results

provide employees with professional counseling services toto those programs, Hitachi also offers programs targetingand communicate with team members. This can lead tohelp them proactively address concerns related to such issues

specific age groups, such as career education for younger

concrete initiatives through the PDCA cycle, further enhancing

as their jobs, career plans, or personal relations.

employees and training for middle-aged or older employees
to help them prepare for the changes ahead in their careers.

the level of engagement within Hitachi as a whole.

Promoting Career Development Workshops

Regarding the training for employees aged 50 and over, aAlong with our workplace career development, we also provide

survey conducted between October 2015 and March 2016

direct support for individual career development through our

found that 90% of participants felt that the training had been

career development programs. Our key program is the Hitachi

beneficial; one respondent noted, “Creating a financial plan

Career Development in the Workplace

Career Development Workshop (H-CDW), launched in fiscal

and grasping my current situation in terms of specific numbers

For Hitachi, the center of career development is the work that

2002 as a Group-wide initiative in Japan. Around 9,700

dispelled my anxiety,” while another said, “It was a good

employees perform daily in the workplace. Based on Global

people have participated in the program so far (as of March 31,

opportunity to start thinking about my life plan from age

Performance Management (GPM), we implement a cycle2017), with a focus on technicians, managers, and researchers

60 onward.”

aimed at the growth of each employee through a process inin their 30s. Participants use self-analysis to deepen their

which goals for daily tasks are set and then pursued, followed

self-understanding with an emphasis on their “internal careers,”by the evaluation of the results to formulate the next objectives.

affirming their career direction, goals, and paths so that they

*1 Hitachi uses the term “engagement” to refer to employees’ understanding of the company’s
strategies and policies, as well as their job satisfaction and desire to take actions on theirown initiative to bring about results.

Hitachi Sustainability Report 201767

Contents

Introduction

Management Approach

Activities

Performance Data

Fair Operating Practices

Fair Operating Practices
Hitachi’s Aims: Fostering a Corporate Culture of Fairness with Our Partners

There is a growing idea that companies should build their businesses with a view to promoting CSR throughout the supply chain, not just around the company’s
operations. This view informs such global initiatives as the Guidelines for Multinational Enterprises of the Organisation for Economic Co-operation and Development(OECD) and the United Nations’ Global Compact and Guiding Principles on Business and Human Rights.
In seeking to be a company that continually fulfills its social responsibility throughout the value chain, Hitachi strictly adheres to laws and regulations and acts
in a moral and fair manner with all its business partners. We thoroughly promote the compliance of our employees in all business activities, including procurement,
manufacture, sales, export, and taxation. To fully carry out our responsibilities as a corporate citizen, we not only encourage business sites to implement theirown investigation and reporting systems for any improprieties but also promote the utilization of a compliance reporting system to prevent or promptly address
such indiscretions.
By enhancing activities to raise our suppliers’ awareness, we are advancing the creation of a framework to carry out ethical actions and fulfill our social
responsibility together with our business partners, thereby fostering a corporate culture of fairness throughout the supply chain.

Fiscal 2016 Overview of Activities
In fiscal 2016, we reflected the findings of the human rights due diligence (HRDD) working group from the previous fiscal year in our CSR procurement activities.
At the same time, we fully revised our guidebook for suppliers into the Hitachi Group CSR Procurement Guidelines in an attempt to further propagate the concept
among our suppliers. In addition, we conducted document-based and on-site audits to strengthen our supply chain from a global perspective.
Main Plans and Results
Engaging in Responsible Procurement
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Contribution to continuation of Hitachi’s· Regularly update information on parts and· Verified information on parts and suppliers★★

· Continue to regularly update information on

operations by working with suppliers to

suppliers

and created non-workday contact list for

secure supplies

200 production sites outside Japan

parts and suppliersHitachi Sustainability Report 2017

Contents

68

Introduction

Management Approach

Activities

Performance Data

Fair Operating Practices

Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Reinforcement of supply chain from

· Implement written survey for 200 companies · Revised questions on check sheet used in

global perspective

and on-site audits for 20 companies as part

CSR monitoring (self-checks)★★★

· Continue supplier monitoring by reviewingof supplier monitoring· Implemented on-site audits forfor monitoring· Host two seminars for Chinese suppliers

20 companies· Implement survey based on revised check· Hosted seminar for Chinese suppliers,

sheet by targeting primary suppliers in

number of companies and regions targeted

attended by 45 employees from

China, Malaysia, and Vietnam

32 companies· Implement CSR audit at supplier plants in
China, Malaysia, and Vietnam· Host seminars for suppliers in China· Send Procurement Guidelines; analyzingcertificates sent by suppliers and deliberatingon next steps· Formulate policies in response to European
regulations on conflict minerals andexamine ways to reflect the above inConflict Minerals Procurement Policy· Revise contents of Hitachi Group CSR· Distributed Hitachi Group CSR Procurement

based on fiscal 2015 findings of HRDD

Guidelines, revised in January 2017, to all

Procurement Guidelines when appropriate;working groupprimary suppliers

run PDCA cycles and promote CSR· Revise Procurement Guidelines and· Introduced revisions to the Guidelines toprocurement activities

distribute to suppliers

procurement members of business units· Revise Guidelines approximately every· Revise details of supplier monitoringand Group companies at Hitachi Group

three years

CSR Green Procurement Committee★★★: Achieved ★★: Partially achieved★★★

· Restructure CSR procurement activities★: Not achieved

Hitachi Sustainability Report 2017

Contents

69

Introduction

Management Approach

Activities

Performance Data

Fair Operating Practices

Promoting Work Practices in Line with International Ethics Codes
Hitachi’s Approach

Preventing Bribery and Corrupt Practices

We have also established the proper procedures to follow
for handling donations such as contributions to political funds

Given the globalization of the economy and the

Measures to Prevent Bribery and Corrupt Practices

in compliance with related laws. Decisions to go ahead withincreasingly borderless nature of corporate activities,

Hitachi makes thoroughgoing efforts to prevent bribery anddonations or similar gifts are made based on amount-specific

our business increasingly spans countries andcorrupt practices in accordance with the Hitachi Global

approval criteria to prevent donations with improper aims.

regions with different governmental and economic

Compliance Program.

frameworks, trade practices, and sets of values.

In fiscal 2016, there were no incidents in which Hitachi

To deal with global bribery and corruption risks, since fiscal

Common worldwide principles in the form of initiatives

2013 we have referred to the Resource Guide to the US Foreign

and guidance are becoming increasingly important in

Corrupt Practices Act* and other documents to developorder to thoroughly implement fair business practices

various corruption risk scenarios. These were used as thearound the globe and to avoid any risks that could

basis for a survey conducted at almost all Hitachi Group

impede business activities.

companies outside Japan (roughly 600 companies in total).

violated or was penalized under laws or regulations regarding
bribery or corrupt practices.

1*1 The US Foreign Corrupt Practices Act consists of antibribery provisions regarding foreign
government officials and transparent accounting provisions within the Securities ExchangeAct. Enforced by the Department of Justice, it prohibits bribes to foreign government
officials. Transparent accounting, enforced by the Securities and Exchange Commission,requires companies to show transactions fairly and accurately in their accounting records
and to maintain effective internal control over accounting.

Hitachi has formulated in-house regulations in

By analyzing the survey results, we identified companies atline with widely accepted international standards torisk from corruption due to factors such as high levels ofgovern important business practices, such as bribery

involvement with governmental and related businesses.

prevention, ensuring of fair competition, and tax

These risks were identified at approximately 10% of thecompliance, and these regulations are made known

companies surveyed, and through close monitoring of those

Preventing Violations of Fair Competition Laws

to and thoroughly implemented across the Hitachi

companies, along with educational and other initiatives, we

Hitachi engages in business based on the principles ofGroup. There is ongoing global debate concerning

are working to reduce corruption worldwide. We will continue

conformance with the law and business ethics and fair andeach of these issues, and demands regarding corporate

to carry out this sort of risk evaluation regularly.

disciplined competition. The Hitachi Global Compliancebehavior and the interpretation of relevant rules andIn 2016, we revised our rules regarding the prevention ofregulations are constantly evolving. We thus regularly

bribery and corrupt practices, with changes including anreview and update our in-house regulations as appro-

explicit ban on facilitation payments and clarification of due

priate in responding to society’s demands. We will

diligence procedures for transaction partners.

continue to act in a thoroughly responsible manner as
members of both the global and local community.

To ensure awareness of these policies and regulations, weMeasures to Prevent Unfair Competition

Program was developed based on these principles to ensure
strict compliance with competition laws.
Fiscal 2016 saw two incidents in the United States of plea
agreements related to cartel activities, and one in Japan of acease and desist order related to collusion.

developed a global e-learning program on preventing bribery

Hitachi takes these incidents very seriously and will continue

and corrupt practices, making it available in nine languages—

strengthening its educational and institutional efforts to eliminate

including Japanese, English, and Chinese—for use by Groupviolations of competition laws.

companies worldwide.

Hitachi Sustainability Report 2017

Contents

70

Introduction

Management Approach

Activities
Fair Operating Practices

Tax ComplianceFurthermore, following the establishment in April 2017 ofrules for Group transfer pricing management, Hitachi manages

Implementing Thorough Tax Compliancetransfer pricing in accordance with the OECD Transfer Pricing

The global expansion of Hitachi’s business activities has madeGuidelines as well as laws and regulations on transfer pricing in

it necessary for the Group as a whole to build a system of tax

each country or region where Group companies are located.

governance in order to comply with indications made by theRegarding tax compliance, Hitachi acts in accordance with

tax authorities in each country and respond to risks concerning

all applicable laws and regulations. Hitachi did not have any

taxation, such as tax-related legal proceedings. In January

significant fines or nonmonetary sanctions for noncompliance2016, we established a set of tax-related regulations with

with tax laws and regulations in fiscal 2016.

which the entire Group must comply. Additionally, in connection with the globalization of our business, we are implementing
risk management for taxation that focuses in particular on the
points listed below:(1) Group companies strictly comply with all relevant laws
and implement tax management when pursuing theirbusiness activities, bearing in mind such international
tax-compliance standards as the Transfer Pricing Guidelines
for Multinational Enterprises and Tax Administrations of theOrganisation for Economic Co-operation and Development(OECD), as well as that body’s Action Plan on Base Erosion
and Profit Shifting (BEPS).
(2) Group companies effectively, continually, and proactively
manage tax-related issues as socially responsible organizations, while maintaining Hitachi brand value and seeking tomaximize shareholder value.
(3) Group companies build sincere and positive relations oftrust with the tax authorities in the regions where thecompanies do business, and strive to maintain and develop
those relations.

Performance Data

Hitachi Sustainability Report 2017

Contents

71

Introduction

Management Approach

Activities

Performance Data

Fair Operating Practices

Engaging in Responsible Procurement
Hitachi’s Approach

Supply Chain Management

We plan to revise these guidelines regularly in the future toensure that they always reflect the demands of global societyInternational initiatives like the UN Global Compact have

Creating and Sharing Procurement Policies

prompted companies worldwide to give greater thought

We base our procurement activities on the Hitachi Guidelines

to CSR and green procurement under which theyfor Procurement Activities, while sharing global supply chain

take social and environmental concerns into considera­

issues within the Group. All Group companies follow thesetion when selecting suppliers, thereby strengthening

guidelines. The guidelines were created in line with the United

CSR activities throughout the supply chain.

Nations Global Compact and include the elimination of dis-

As a company that procures products and services

crimination in employment and occupation, the rejection of allfrom suppliers in regions and countries around theforms of child and forced labor, and environmental protection

world, Hitachi was quick to introduce CSR and green

activities. Suppliers are selected strictly in accordance with theprocurement policies, which are being meticulously
implemented by all Group companies. High expectations have been placed on the Electronic Industry
Citizenship Coalition’s Code of Conduct in recent
years as an international CSR standard for the industry.
We are further evolving our procurement activities inline with this code, not only reviewing our own CSR
standards but also auditing and cooperating with the
CSR initiatives of our suppliers.
Moreover, Hitachi has taken the lead in responding to
the issue of conflict minerals, which has been the focusof public concern in recent years, by scrutinizing thecountries where raw materials are mined in order to

Hitachi Guidelines for Procurement Activities.
In fiscal 2016, we released the Hitachi Group CSR
Procurement Guidelines, a full revision of the 2009 HitachiGroup Supply Chain CSR Deployment Guidebook. This revision
incorporates the provisions of the Hitachi Group Codes ofConduct and also makes references to version 5.1 of theElectronic Industry Citizenship Coalition (EICC) Code of
Conduct, promulgated in January 2016. To ensure that theguidelines’ provisions are strictly followed, we distribute the
Guidelines to the approximately 30,000 suppliers of Hitachi
business units and Group companies, from whom we request
acknowledgment of suppliers’ understanding in writing. Tier 1prevent infringements on human rights by countries

suppliers are further asked to confirm that tier 2 suppliers also

engaged in conflict. Keeping abreast of global trends, wefollow the provisions in the guidelines.

will continue to share and strengthen on a Group-widebasis our commitment to fulfilling our social
responsibilities throughout the supply chain.

regarding corporate supply chain management.

Hitachi Sustainability Report 2017

Contents

72

Introduction

Management Approach

Activities

Performance Data

Fair Operating Practices

Guidelines for Procurement Activities

These guidelines define business transaction standards which shall beapplied to all HITACHI executives and employees in connection with theiractivities purchasing necessary materials, products, services, and informationfrom outside sources.
1. Overall procurement activities of Hitachi shall adhere to the “HITACHI
Company Conduct Standards.”
2. HITACHI shall maintain proper partnerships, mutual understanding, andreliable relationships with suppliers with a view to the long term results,
giving due consideration to the following:(1) HITACHI shall treat all suppliers impartially and be prohibited fromfavoritism such as giving unfair priority to any specific suppliers.
(2) HITACHI respects fair business dealings with suppliers and will avoid
any improper act which might cause a loss to a supplier apart fromnormal and customary business transactions.
(3) HITACHI shall keep suppliers’ trade secrets strictly confidential andprevent them from being revealed or improperly used.
3. HITACHI develops suppliers to maintain competitiveness from a worldwide
point of view, with particular attention to the following points:(1) HITACHI responds to all suppliers’ offers sincerely, and is always willingto offer the information necessary for suppliers to compete on an evenplaying field.
(2) HITACHI shall periodically check and review suppliers’ performance andwill consider offering more advantageous business opportunities whencomparison with other resources allows.
4. Through a designated selection process, and in compliance with thestandards given below, suppliers shall be evaluated by product quality,
reliability, delivery, price, suppliers’ business stability, technical development
ability, fair and transparent information release, compliance with societies’
rules, regulatory compliance, respect for human rights, elimination of
discrimination in respect of employment and occupation, elimination of
all forms of child and forced labor, environmental preservation activities,
social contributions, good working environment, and recognition of social
responsibilities with business partners.
(1) HITACHI shall not request quotations from suppliers with whom there isno intention to enter into a future business relationship.
(2) In accordance with specified internal procedures, the authority andresponsibility for specifications, terms and conditions, and productacceptance and inspection belong to each Requester, Procurement
Department, and Inspection Department.
(3) Procurement Departments shall represent HITACHI when contractingwith suppliers.
5. HITACHI members are prohibited from receiving any personal gifts or offersfrom suppliers.
Revised in 2009

CSR Supply Chain Management Framework

seminar served to deepen the understanding of Hitachi

Given the global reach of Hitachi’s business, there is a growing

initiatives related to CSR and green procurement.

likelihood of supply chain risks creating management problems,
and we are working hard to identify and mitigate these risks
beforehand as much as possible.
CSR supply chain management and green procurement

Procurement Policy
CSR/Green Procurement(as of December 2016):

policies and initiatives are discussed within Hitachi’s Value Chain
Integration Division, which is headed by the chief procurement

Approx.

30,000companies (66 countries)

officer (CPO) and reports directly to the president of Hitachi,Ltd. Policies and initiatives adopted after this discussion areshared throughout the Group through the Hitachi Group CSR
Green Procurement Committee, which includes members from

Supply Chain Management Organizational Structure
President

business units and key Group companies.
In order to share the philosophy of Hitachi among our
suppliers, in fiscal 2015 we also introduced a new initiative toprovide suppliers directly with information in a face-to-facewebsite as well as our CSR monitoring (self-checks), CSR
audits, and other measures. The most recent of theseface-to-face events was held in January 2017 at a CSR andgreen procurement seminar held in Shenzhen for HitachiGroup partners in China. The event was attended by 45
people from 32 companies. At the seminar, Hitachi explained
topics including its fundamental CSR philosophy, the CSR
audit situation, regulatory trends under Chinese environmental
laws, and Hitachi’s related policies. Feedback from participants
included a comment from one person who was “impressed bycraftsmanship but also on fulfilling its social responsibility in arange of areas.” Another participant “gained a sense thatprofitability is not the sole aim and that it is important to adhere
to environmental laws.” As reflected in the comments, theDevelopment of CSR/green
procurement policy

Value Chain Integration Division
Procurement office conferences

format, in addition to the information shared on the Hitachi

the emphasis the company places not only on monozukuri
Guidelines for Procurement Activities

Number of Hitachi Group suppliers

Conferences for procurement managers

CPO Joint Committee
Hitachi Group CSR
Green Procurement
Committee (biannual)(every two months)

Group procurement
strategy conference(biannual)

Regional procurement
conferences (China/Asia/India:
biannual; Europe/Americas: annual)

Target price conference(biannual)

Implementation by
all procurement members
Business unit procurement members

Major Group company
procurement members

Hitachi Sustainability Report 2017

Contents

73

Introduction

Management Approach

Activities

Performance Data

Fair Operating Practices

Green Procurement

to collect information about chemical substances contained in

Hitachi Group Conflict Minerals Procurement Policy

To procure parts and materials manufactured with reduced

products and other environment-related data from suppliers as

Conflict Minerals

environmental impact, so that suppliers help to protect thesoon as it becomes available. The goal is to manage chemicals

environment, it is crucial that we share our commitment tocarefully. Under this system, we encourage suppliers to use theenvironmentally conscious monozukuri craftsmanship through-

MSDSPlus*1/AIS*2 reporting templates published by the Jointout our entire supply chain. In fiscal 1998, we led the industry

Article Management Promotion Consortium*3 to achievetantalum which is used in capacitors, tungsten which is used in superhard

in developing Green Procurement Guidelines to define oursmoother and more efficient transmission of information.

materials, and gold which is used in lead frames can be found in thisour requirements of suppliers, so that we can work together topromote green procurement. The guidelines set out supplierrequirements for environmental conservation, including building
an environmental management system and acquiring certifications. There are also requirements for reducing the environmental
impact of products supplied to Hitachi, such as conserving
resources and energy in production, recycling, managing
chemical substances, and fully disclosing related information.
There is a global trend toward tighter regulations on chemical
substances. In fiscal 2013, we reviewed our categories forof the Democratic Republic of the Congo, located in central Africa, andits neighbouring countries. Ores containing minerals such as tin which isused in solders to secure electronic parts to printed circuit boards,

region. The locals extract these ores, which traders and brokers export

basic position on procuring parts and products that do nothave a negative impact on the global environment, as well as

There are numerous types of mineral resources buried within the lands*1 MSDSPlus: A format for reporting chemical substances contained in products created by
upstream companies (chemical manufacturers) for midstream companies (molded productmanufacturers, etc.).
*2 AIS: A format for reporting chemical substances contained in products created by
midstream companies (molded product manufacturers, etc.) for downstream companies(assembly manufacturers, etc.).
*3 Joint Article Management Promotion Consortium (JAMP): Established in September 2006
as a cross-industry promotion association of 17 companies endorsing the idea that “it isessential for the enhancement of industrial competitiveness to ensure proper managementof information on chemical substances contained in articles (parts and final products), andto establish and popularize a concrete mechanism for smooth disclosure and transmissionof such information in supply chains.”

to other countries in order to earn valuable foreign currencies, but partof those foreign currencies are forcibly collected and used as funds topurchase weapons by armed groups that repeatedly engage in conflictand violate human rights in the same region, which has become a major
problem. As such, the minerals listed above are called “conflict minerals”.
Procurement Policy
The policy for procurement departments in all Hitachi Group companies
have always been and will continue to be to ensure that procurement
activities do not result or aid in conflicts within the same region and that

Hitachi Group Green Procurement Guidelines

the armed groups described above do not benefit from those activities,
while continuing responsible procurement activities of minerals that are

Joint Article Management Promotion Consortium

not related to the conflicts in the region based on local laws. Additionally,
we will continue to support the practice of due diligence based on thecontrolled chemical substances in our Green Procurement“OECD Due Diligence Guidance for Responsible Supply Chains of

Guidelines to comply with the stipulations on restricted sub-Response to the Conflict Minerals Issue

stances, authorized substances, and substances of very

Hitachi released a Conflict Minerals Procurement Policy inhigh concern (SVHCs) in Europe’s Registration, Evaluation,

September 2013. Our Request to Our Suppliers, based on thisAuthorization, and Restriction of Chemicals (REACH) regulation

policy, is published on our website as a clear statement of

GeSI to continue checking the country of origin and supply chain offor managing chemical substances within the European Union.

our position.

minerals, and also to procure from the CFS (Conflict Free Smelter)*1

Specific changes include: (1) moving some chemicals to the

In fiscal 2016, we revised this policy to ensure that procure-prohibited substances list, (2) further breaking down the con-ment of components incorporating conflict minerals does nottrolled substances list, and (3) adopting the industry associa-

benefit armed groups in the Democratic Republic of the Congotion list. The previous guidelines were revised to version 8.4(DRC) or adjoining countries. The policy now explicitly lays out

and distributed through Group companies and business units

the measures to be implemented, including inquiries based on

to suppliers to ensure that they are fully informed. We haveinternational guidelines, to ensure responsible procurement.

built A Gree’Net, an Internet-based green procurement system,

Minerals from Conflict-Affected and High-Risk Areas” among companies.
With these in mind, Hitachi Group would like to request all our suppliers
to utilise the Conflict Minerals Reporting Template developed by EICC/

listed within.
*1 CFS (Conflict Free Smelter): A list of smelters who have been identified as “not being
involved in the conflict within the same region” by the Conflict-Free Sourcing Initiative(CFSI), an organisation that was founded by the EICC/GeSI, which is a group that aims
to solve the conflict minerals problem.

Hitachi Group Conflict Minerals Procurement Policy

Hitachi Sustainability Report 2017

Contents

74

Introduction

Management Approach

Activities

Performance Data

Fair Operating Practices

Strengthening Global Partnerships

Rate of Local Procurement of Materials for Main Regions

Additionally, alongside the revisions made to the Hitachi

A key element of the Hitachi Group Vision is to improve theGroup CSR Procurement Guidelines, the checklists have also

competitiveness of our value chain based on partnerships

been fully updated to allow us to obtain a more detailed under-

with our suppliers. Given our business aim to expand

standing of the challenges our suppliers face. Starting ininternationally, we need to extend our procurement globally,
looking toward increasing local production for local
consumption. In fiscal 2011, we appointed procurement officers

China

64

Rest of Asia%

64

CSR Monitoring (Self-Check) Results

and the Americas.

FY

A global supplier database built in fiscal 2013 was followedin fiscal 2014 by a new global procurement scheme using
the professional service functions available in the Group at theTransport System). We are expanding our suppliers inemerging nations while also strengthening our response to

Monitoring using the updated checklists.

%

to oversee local procurement in China, the rest of Asia, Europe,

time (Hitachi High-Technologies, Hitachi Capital, and Hitachi

fiscal 2017, we will be asking our suppliers to conduct CSR

Europe83%

Americas69%

Suppliers in Japan

Suppliers outside Japan

Total

2012

57

41

98

2013

55

45

100

2014

0

200

200

2015

0

218

218

2016

198

118

316

Total*1

310

724

1,034

*1 Total also includes self-check results from fiscal 2011.

CSR-related risks expected to arise from the global expansion

Implementation of CSR Auditsof our supply chain.

Since July 2012, Hitachi, Ltd. has been auditing the manufac-

Implementation of CSR Monitoring (Self-Checks)

turing bases of its and Group companies’ suppliers in China

To monitor how well Hitachi’s CSR supply chain management

and the rest of Asia. In fiscal 2016, we conducted CSR audits

philosophy has been adopted by our suppliers, since fiscalof 20 suppliers.

2007 we have asked key suppliers to conduct CSR Monitoring

For these audits, we engaged the experienced CSR auditing(self-checks) using the JEITA Supply Chain CSR Deployment

company Intertek Certification.*1 Our audits are based on the

Guidebook and detailed checklists. After collecting and analyz-

international SA8000 certification standard developed bying the results, we provide feedback for the business operations

Social Accountability International (SAI), an American CSR

related to the suppliers, and then work with those involved in

evaluation institution. These audits investigate our workplace

the operations to resolve issues related to the suppliers.

practices, and an EICC-recognized auditor checks suppliers’

Since fiscal 2011, we have expanded the scope to include

CSR initiatives from the perspectives of labor and human rights,

suppliers in China and the rest of Asia, and in fiscal 2016

health and safety, the environment, and ethics.

we asked 316 suppliers inside and outside Japan to conduct
CSR Monitoring.

No major infringements were found at the 20 suppliers
audited in fiscal 2016, but some small areas needing improvement were noted, such as overtime work exceeding stipulated

Hitachi Sustainability Report 2017

Contents

75

Introduction

Management Approach

Activities
Fair Operating Practices

rules (19 suppliers), failure to conduct periodic inspections ofIn fiscal 2016, we published the fully revised Hitachi Groupmachinery and equipment (6), and insufficient management of

CSR Procurement Guidelines based on results obtained fromhazardous waste (9). The relevant suppliers were requested tohuman rights due diligence activities in fiscal 2015 as well as

submit improvement action plans, and Hitachi, Ltd., together

input from a range of sources and perspectives, including

with Group companies, will work with and advise the suppliers

Hitachi Europe, Hitachi (China), and outside experts.

until they complete the planned improvements.
*1 Intertek Certification: With a presence in over 100 countries across the globe, the IntertekGroup provides a wide array of certification services in every industrial field.

Starting from fiscal 2017, Hitachi will incorporate input fromvarious perspectives into a revision of its checklists, which willthen be used to prevent supply chain risks. As well as
strengthening and improving existing initiatives in this way, we

Increasing Green Purchasing of Office Supplies

will use the results obtained from the checklists to deepen our

We are improving our green procurement rate—the ratio ofcommunication with suppliers. Additionally, in cooperation withenvironmentally conscious products purchased to total officeoutside experts, we will enhance suppliers’ understanding of

supplies—by using a Group-wide online procurement system:

the expectations of Hitachi Group procurement departments

the E-sourcing Mall. This system has a range of environmen-

and, at the same time, promote capacity building at suppliers

tally conscious products and promotes procurement by clearly

and take other necessary measures.

labeling these products. In fiscal 2016, our green purchasingrate reached 88%.

Human Rights Due Diligence in Procurement
Starting in fiscal 2015, the Hitachi Group Procurement Division
began implementing human rights due diligence based on the
Hitachi Group Human Rights Policy. With the assistance of theconsulting services of the nonprofit organization Shift, we havecreated a working group centered on the procurement andCSR divisions at Hitachi, Ltd., which serve as the corporate
divisions overseeing activities throughout the Group, including
the procurement and CSR divisions of two in-house and fourGroup companies and the CSR division of Hitachi Asia. The
working group has evaluated human rights risks within the
supply chain, set priorities, and considered measures for
reducing risks.

Respect for Human Rights

Performance Data

Hitachi Sustainability Report 2017

Contents

76

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Customers (Consumer Issues)
Hitachi’s Aims: Building a Sustainable Society Through Our Products and Services

Under the Hitachi Group Codes of Conduct, we have worked to provide high quality and safe products and services and to prioritize the customer’s perspective.
The Hitachi Group provides a broad range of products and services extending from household electronics to social infrastructure, and we strive to expand our
lineup to address the needs of our clients and issues facing society. We feel it is important to contribute to building societies where everyone can enjoy a lifestyleof convenience and comfort, and toward this goal we are working to respond to the diverse needs of customers regardless of factors such as age, physical andmental abilities, economic circumstances, and cultural background.
We develop products and services with which customers will be satisfied and which can be used with confidence while also striving to improve their accessibility.
We also respect the rights of customers and are working to provide accurate information about our products and services while strictly managing customer
information. In accordance with this philosophy, we provide a broad range of channels through which customers can make an inquiry or voice their opinions about
our products and services. In addition to communicating with the sales floor staff, customers can contact our comprehensive customer support through thewebsites of Hitachi, Ltd. and all Group companies.

Fiscal 2016 Overview of Activities
Hitachi is working to create mechanisms to ensure respect for the rights of customers. In fiscal 2016, we continued to achieve improvements in our businessactivities by acting on feedback from our customers. We also worked to improve the accessibility of our corporate website used in communicating with ourcustomers. We are working to increase customer satisfaction through improvements in the quality of our products.
Main Plans and Results
Pursuing Customer Satisfaction
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Creation of Group-wide mechanisms to keep

· Come up with and implement on a trial· Reviewed state of implementation of★

· Continue to conduct customer satisfaction

track of customer satisfaction and feedback

basis mechanisms to identify business units

customer satisfaction surveys and conductedsurveys at each business unit to improvefrom customers

that have yet to conduct customer satisfac-

hearings on state of implementation of Net

operations

tion surveys and to ascertain the loyalty ofPromoter Score at the Railway Systems

key customers

Business Unit
· Conducted customer satisfaction survey atinformation divisions (collection rate of 88%)

Hitachi Sustainability Report 201777

Contents

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Ensuring Accessibility to Products and Services
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Improvement of corporate website accessibility· Annually conduct an online training session· Conducted two online training sessions on★★★

· Revise the Website Accessibility Guidelines

in keeping with 2010 revisions of Japanon website accessibility in Japan

website accessibility

Industrial Standards· Annually update information and distribute· Distributed materials for online conferencesin Japanese, English, and Chinesematerials for online conferences at various

at various locations outside Japan· Annually conduct an online training session· Provide the Website Accessibility Guidelines

on website accessibility in Japan

locations outside Japan· Annually update information and distributematerials for online conferences at various
locations outside Japan

Ensuring Thorough Management of Quality and Safety
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Eradication of serious accidents· Report zero serious accidents (fire/non-fire)· Reported six A-class accidents out of 13★

· Report zero serious accidents (fire/non-fire)serious accidents due to initial failure· Reported one serious non-fire accident
related to product safety· Had zero compliance incidents★★★: Achieved ★★: Partially achieved★: Not achieved

Hitachi Sustainability Report 2017

Contents

78

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Pursuing Customer Satisfaction
Hitachi’s Approach

Customer Satisfaction

As a company that offers a broad range of products
and services, we believe it is important to engage incorporate activities with the general public in mind,
not just the corporate and individual consumers withwhom we deal directly.
To improve customer satisfaction (CS), we havecreated the Customer Satisfaction Management
Guidelines. We share customers’ thoughts obtained
through direct dialogue, customer service counters,
and other means within the relevant divisions andreflect these in our management, products andservices, and solution strategies.
The opinions and requests we receive from ourcorporate clients, as well as the more than 2.3 million
comments submitted each year by a broad spectrumof individual customers, are shared with all Hitachi
divisions engaged in manufacturing. Drawing on ourstrengths as a provider of solutions for consumer
issues, we apply this feedback in implementing
improvements in a full range of products, fromindustrial equipment to consumer appliances.
We also look to communicate information throughour advertising and public relations activities in a truthful
and appropriate manner that does not mislead customers
or in other ways that may adversely affect society,such as by reinforcing human rights infringements.
These guidelines and activities are shared with acontinually larger number of Group companies outside
Japan, enabling Hitachi to enhance customer
satisfaction from a global perspective.

CS Improvement Activities
Using the Customer Satisfaction Management Guidelines, oneof the pillars of the company’s business management, Hitachi
continues to improve CS with the goal of creating innovation
through collaboration with customers.
Customer Satisfaction Management Guidelines
1. Listen to our customers, who determine the value of products
and services
2. Review information from our customers is another sourceof improvement
3. Offer prices and quality that are competitive

incorporate their expectations for Hitachi and their opinions
into product strategies.
To accelerate collaborative creation with customers in
Hitachi’s evolving Social Innovation Business, we also holdthe Hitachi Social Innovation Forum in North America, Europe,Asia, and other regions, providing lectures, exhibits, andmore. Our sales teams invite our customers to these events
to deepen their understanding of Hitachi’s business. We
also collect feedback from these events to improve our
future operations.
Our R&D Technology Community program provides opportunities for collaborative creation with customers. Project leadersinvite customers to their research labs to see exhibits of products
and systems currently being developed.

4. Respond rapidly to keep our promises to our customers
5. Adopt systems that prevent accidents and minimize their impact
Formulated in 1994

Reflecting Customers’ Voices
Our sales and marketing division uses customer input indeveloping management, product, and solution strategies. We
identify key customers who will help grow our business, thenassign an account manager (AM) to each one. The AMs serve
as customers’ “portals” into Hitachi Group companies inJapan, and the whole Group works with them to build closer
relations with customers and to boost customer satisfaction.
Our Hokkaido, Tohoku, Chubu, and Shikoku area operations
hold executive seminars for local customers. In the Kansaiarea, Hitachi, Ltd. works with Group companies to stage
Hitachi Group exhibitions. Through direct dialogue withcustomers participating in these seminars and lectures, weApplying Advertisement Guidelines
Based on its Customer Satisfaction Management Guidelines,
Hitachi, Ltd. applies advertisement guidelines to ensure that its
advertising activities comply with laws and regulations showing
proper consideration for society as a whole. We will continue
to create advertisements that reflect ongoing changes insociety, that provide customers with clear and concise messages, and that are appropriate for a company committed tocontributing to society.
As issues that arise from advertisement activities can havebroad impact on the company, we have established in eachbusiness unit a framework for evaluating the expressions inadvertisements that stands independent of the ad production
process. Following this institutional check, we also evaluate
advertisements to ensure that they are socially appropriate.

Hitachi Sustainability Report 201779

Contents

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Providing Customer Support Online
Hitachi offers comprehensive customer support on its website.
This enables us to process customer inquiries, opinions,requests, and complaints—in collaboration with the customer
support offices of Hitachi Group companies in Japan—to
improve our business operations, as well as our products andservices. We also conduct training courses to provide better
handling of these inquiries.
As one initiative, we have been holding the Web Inquiry
Responsiveness Improvement Course since fiscal 2009. In
fiscal 2016, 49 Hitachi Group company employees took thecourse (bringing the cumulative total to 750 participants),
which features case studies on responses to inquiries. Goingforward, we will strengthen coordination among Group companies to respond more quickly and effectively to customer
inquiries, using the website as an important contact tool.

Improving Customer Satisfaction in ElectricHome Appliances
The Electric Home Appliances Customer Satisfaction Division
has enabled the expansion of Hitachi’s business from electronic and electric equipment to the environment business bydrawing up a vision for environmental value creation, actively
promoting various service areas.

Our call center and website handle about 2.36 million customer inquiries, repair requests, and complaints about washingmachines, LCD TVs, and other appliances per year.*1 We haveundertaken a number of initiatives to better respond to inquiries
and to reflect customer feedback in our monozukuri craftsmanship, including improving the contact success rate by using
outsourcing; creating a database of customer feedback,including consultations, inquiries, and complaints; andenhancing our website’s FAQ section.
We also conduct semiannual customer service evaluation
surveys at approximately 90 service centers in Japan. Basedon the answers, we improve services through CS training
courses and other programs.
With the expansion of Hitachi’s markets outside Japan,
sales offices have been opened in nine countries in Asia andthe Middle and Near East. We are also working on unifying
management of operations outside Japan.

Results of Evaluation Survey for Customer Repair Services(Customer Satisfaction)
(%)
100
95

96.6

97.1

97.2

97.3

97.4

2012

2013

2014

2015

2016

90
85
80
75
0

Flow of Customer Service
Repair request*1 Since fiscal 2013, technical inquiries from suppliers and parts orders have been excluded
from these statistics.

(12-Month Average)(Cases per month)(%)

100,000

100

80.8

82.1

80.5

74.8

76.4

36,19736,91980,00080

RepairInquiry

Response

40,19339,78237,15840,000

8,720

5,952

20,00031,473

33,830

2012

2013

4,782

32,3762014

Response activity

4,050

3,500

40

32,14733,41920

2016 (FY)02015White goods (electric home appliances and other products) (left scale)
Brown goods (electronic equipment) (left scale)(Call completion rate) (right scale)Individual
business group
Qualityassurance
department

Feedback on improvements

Customer
SupportContact
Center(no repair)

Input indatabase

Feedback

Flow of information

Designdepartment

Manufacturing
department60

60,0000

Information on repair service
RepairContact
CenterCustomer Contact Cases, Call Completion Rate

(FY)

Note: Evaluation survey for fiscal 2016 carried out in June–July 2016 (35,400 respondents;
38.0% response rate) and December 2016–February 2017 (28,800 respondents; 36.1%
response rate).

Customers

We designed our advertisement guidelines to be flexibly
adjusted and applied to the entire Hitachi Group’s diverse
operations. At our business locations outside Japan in particular,
we strive to ensure appropriate advertising activities byconfirming all items on the checklist included in the guidelines.

Information sharingHitachi Sustainability Report 2017

Contents

80

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Ensuring Accessibility to Products and Services
Hitachi’s Approach

Universal Design

to be easily wiped up, and improved maintainability by moving
the circuit board unit to a location that did not interfere withISO 26000 provides guidelines for corporate social

We promote universal design (UD) with a focus on three

responsibility. It identifies such core consumer issues

aspects of our products: their quality of use, their accessibility,

as “fair marketing, factual and unbiased information”

and their entire life cycle. Quality of use means focusing on theand “access to essential services” and calls on

traits that make people feel that the product is easy andcorporations to actively take measures addressing

enjoyable to make a part of their lives. Accessibility refers tothese. It is the base of our CSR management

the range of people who can use a product or service. And life

framework, and in applying it we are working tocycle covers all the customer-relevant stages of the value

improve our products and services to make them

chain, from product purchase through to disposal.

broadly accessible to society through such activities

We conduct basic research on users’ behavioral andas the appropriate disclosure of product information

cognitive characteristics to formulate UD guidelines andand the promotion of universal design.

reflect these in product development, incorporating input fromAs symbolized by the adoption of the UN Sustainablerepairs and servicing.

users and experts at every stage. The information obtained

Development Goals, worldwide interest is growing induring product development goes into a database shared byachieving a more sustainable society, such as byour businesses in Japan. We also distribute some of this infor-

supporting the economic growth and higher living

mation externally to promote open-source standardization

standards of emerging economies. We, too, areand education.

A front loading washer-dryer machine that incorporates
UD-conscious performance improvements.

Product Safety Information Disclosure

enhancing our business structure to contribute to the

We incorporate UD considerations as a fundamental

development of these economies. We are developing

component of home and digital appliance product design.

products and services to meet new social needs andDuring the development of the front loading washer-dryer

Information Disclosure for Safety

engaging in active marketing activities carrying out

machines released by Hitachi Appliances in 2016, we incorpo-

Hitachi’s Product Safety Assurance Guidelines state that ourour Social Innovation Business.

rated universal design to improve the product’s performance,

highest priority is the safety of our customers, and, based on

including increased capacity and extended range of functions.

these guidelines, we promote activities to ensure safety acrossThrough usability testing of the control panel, we explored

the Group.

alternative button layouts for more intuitive operation andAs changes in social norms and the environment bringangles for superior visibility, successfully combining multifunc-

about the need for higher standards of safety, we are crafting

tionality with usability. We also made the detergent dispenser

even higher safety standards through the work of our risk

more cleanable by changing its shape, allowing spilled detergent

assessment team, who share the latest practical cases within

Hitachi Sustainability Report 2017

Contents

81

Introduction

Management Approach

Activities
Customers (Consumer Issues)

the Group and evaluate the safety activities related to each

Additionally, in response to India’s strong demand for

product as part of their activities to increase trust in Hitachi.

ATMs and a governmental “Make in India” initiative designed to

We are also proactively working to disclose safety informa-promote the manufacturing sector, in October 2015 Hitachition on the use of our products and establish the Guide forestablished Hitachi Terminal Solutions India (24 employees as

Preparing User Instruction Manuals in order to improve riskof February 2017) as an ATM manufacturing base. Producing

communication with our customers.

highly reliable banknote recycling ATMs using the latest sensing
and mechatronics technology developed by Hitachi-Omron

Adaptation for Emerging Markets

Terminal Solutions, the company is aiming at a manufacturing
target of 1,500 units per month.

Product and Service Adaptation for Emerging
Marketsother FinTech*2 services are widely available, India, too, is

As a consequence of their rapid economic development,

achieving government-led advances in digital payment. Hitachi

emerging markets face issues including food shortages,

stands at the forefront of these developments, strengthening

poverty, and environmental and energy concerns, which are

its support for cashless settlement services in addition to its

attributed to urbanization and population growth. In an effort toexisting cash settlement solutions and continuing to contributeseek solutions to these social issues, we are expanding ourto the improvement of India’s financial and settlement

Social Innovation Business globally.

infrastructure.

Economic growth and rising incomes in India have madebolstering the nation’s financial infrastructure a top-priority

Like developed countries, where cashless settlement andMoving forward, we also plan to expand our financial services
business in Southeast Asia and other emerging countries.

issue, and the Indian government is promoting measures toexpand access to financial services throughout the country,
including in rural communities. Hitachi entered India’s payment
services market by acquiring a major domestic firm (now called
Hitachi Payment Services with 1,300 employees as of February2017) with a proven record in automated teller machine (ATM)services, including monitoring, maintenance, and support in
optimizing installation for better location selection and further
efficiency.*1 This has enabled us to increase our payment
services nationwide, and, as of February 2017, we manage
over 50,000 ATMs and over 320,000 point of sale (POS)
service devices.

*1 ATMs include cash dispensers (CDs).
*2 FinTech: A portmanteau of financial technology, describing convenient and innovative
financial services using IT created from the point of view of customer needs.

Performance Data

Hitachi Sustainability Report 2017

Contents

82

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Ensuring Thorough Management of Quality and Safety
Hitachi’s Approach

Quality Assurance Activities

Intensive Risk Assessment
Hitachi is committed to the delivery of safe products andMeeting the quality standards our customers expect

About Our Activities

services by combining expertise and technologies in suchand providing products and services they can use

Based on the Corporate Credo of contributing to society

varied areas as planning, research, design, manufacturing,with confidence are the management themes cited atthrough the development of superior, original technology andquality assurance, and maintenance. The safety of our cus-

the beginning of the Hitachi Group Codes of Conduct

products, Hitachi is engaged in the monozukuri craftsmanship

tomers’ life, health, and property is the top priority in productthat each employee is expected to fulfill as a promisewith quality and reliability as top priority. An integral aspect ofdevelopment. Therefore, we verify safety at every step, fromto society. We are establishing thorough quality

this is ochibo hiroi, Hitachi’s traditional approach meaningdevelopment and production to sales and maintenance, andassurance measures from the design and production“gleaning” in English, through which we learn from failure andconduct risk assessments from a wide perspective in collabo-

stages through after-sales service, as well as working

further develop our technologies. In practice, when an accident

ration with related business units and research laboratories. In

to ensure a quick response and proper information

occurs, we not only investigate the technical cause of the acci-

responding to these risks, we apply the safety principles of

disclosure in the event a problem emerges. In addition,

dent but also have an executive officer in charge and relevant

ISO/IEC Guide 51 in accordance with the product safety hand-as production and other operations increasingly takestaff members thoroughly discuss the process, framework,book for business operators published by Japan’s Ministry

place outside of Japan, we are giving importance toand psychological factors of the incident in order to improveof Economy, Trade, and Industry, ensuring safety by means

quality assurance in our global human resource

our product reliability and customer satisfaction. To ensure thatof the mitigation measures of risk reduction through design

development activities, and we are working toquality and reliability are maintained, we enhance our quality(fundamental safety design), risk reduction through protective

expand our current programs.

assurance activities from the perspectives of organization andmeasures (safeguards), and risk reduction through usage

These efforts are important in enabling Hitachi tomanagement, technology, and human resources in every

information (product manuals), in order of priority.

grow together with society. They must also be actively

process—from planning and development to design,and comprehensively pursued in the light of the impact

manufacturing, delivery, and maintenance.

Complying with Technical Lawsof our products and services on society in case of an

From fiscal 2010 to 2015 we promoted Group-wide measures

To supply our customers with products that they can use withemergency. Hitachi not only complies with laws andto ensure product safety, compliance with laws and regulations,confidence, we comply with all product safety and technicalregulations and adheres to accepted standards but

human resource development, and quality improvements.

laws, including those covering environmental consciousness

also formulates and abides by stringent Group-wide

To realize our fiscal 2018 Mid-term Management Plan, fromand safety labels. We distribute information on product regu-

criteria in response to economic, social, andfiscal 2016 onward we are steadily working to improve thelations worldwide, along with amendment trends and enforce-technological demands.

quality of services and the reliability of our products for quality,

ment dates, among Hitachi Group companies. We have also

as well as to promote the reduction of loss costs with better

created guidelines for assessment of technical laws and quality

quality management.

assurance systems, sharing them throughout the Group.
The guidelines focus on clarifying product-specific laws

Hitachi Sustainability Report 201783

Contents

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

not spread outside it. Furthermore, along with each product’s

Response Flow in the Event of Product Accident

full manual, we include a quick start guide summarizing key
features and operations, and make step-by-step how-to

Accident
occurrence

videos available on our corporate website as well.

Hitachi Group
Information gathering

CustomerliaisonCustomers,
retailers

Top management

QA
Department

Confirmation of accident status

Investigation of cause
Response andreporting
ReportOn-siteinvestigation

Consumer Affairs
Agency, etc.

Additionally, to improve sharing of on-site investigative procedures and ensure the safety of the customers who use our
products, we are enhancing our efforts to communicate on risk

Emergency
response
authorities

Flow of information

ReportProduct
investigation

Investigation ofdamage scope

Investigative
committee on serious
product accidents
Decision on
seriousnessof accident

Seriousproduct
accident

Product recall
Notification via web,media

factors with the relevant emergency response authorities. From
July 2011 to the end of fiscal 2016, we held 17 briefings at fire
departments around the country, sharing information on investigative procedures for fire sites and explaining the measurestaken to ensure the safety of new products. These endeavors
saw Hitachi Appliances awarded a letter of recognition by the

Information sharing

Fukuoka City Fire Department for the contribution our staff(the product-specific laws map); on regulatory complianceto expert. Hitachi’s distinct approach to monozukuri, including

have made toward increased fire safety awareness and ouractivities and continuous improvement of processes, based on

our Founding Spirit and lessons learned from past accidents, isadvocacy work on public fire prevention policies.

our compliance management system; and on compliancea core part of our identity, and as part of our efforts to ensure

education, as well as raising compliance awareness.

that it is practiced throughout the Group, in November 2014 wesafer, using our own voluntary action plan for product safety,

initiated training on reliability improvement to foster instructors.

so that customers can use our products with confidence.

We will continue to make all our consumer appliances even

Handling Product Accidents

To date, we have trained over 200 instructors who are passing

When a product accident occurs, the division responsible acts

on Hitachi’s monozukuri to the next generation of engineers.

swiftly to resolve the problem from the customer’s perspective.

Each business unit also conducts specialized technicalAs local production has been growing in Asia, we are carrying

For an especially severe accident, we report to government

courses regarding manufacturing, quality assurance, andout training to ensure that products from the region meetagencies in line with legal requirements and publish the incident

maintenance at their quality assurance training centers.

Hitachi’s global quality standards. For example, we host con-information on our website and through other channels. At theTraining Global QA Personnel in Asia

ferences for QA managers in China and Thailand, where wesame time, we promptly submit a status report to top manage-

Ensuring Home Appliance Safety

have a large number of manufacturing sites, to raise quality

ment, ensuring fast and appropriate action at all companies

We are reducing consumer appliance accidents to near zeroawareness with regard to Hitachi’s monozukuri craftsmanshipacross the Group.

levels in line with Hitachi’s Customer Satisfaction Management

and to share information and best practices.

Guidelines, which set avoidance of all accidents as the base-

Additionally, to help employees in quality assurance become

Quality and Reliability Education

line. To this end, we conduct product safety risk assessment

global players and improve their level of quality management,

We conduct technical lectures for engineers engaged inas well as testing worst-case scenarios—for example, deliber-

we provide three levels of training courses in Beijing, Shanghai,monozukuri craftsmanship at a range of levels from beginner

ately setting a fire inside a product to confirm that the fire will

and Guangzhou in China and in Bangkok, Thailand: the BasicHitachi Sustainability Report 2017

Contents

84

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Reliability Course,*1 Intermediate Reliability Course,*2 andthan 80% of the orders received across the whole Group,

Advanced Reliability Course. In the Advanced Reliability

with the database enabling us to formulate more effective

Hitachi also strives to safeguard personal information

Course, managers and senior managers hold group discussions

sales strategies and offer collaborative solutions by multiple

globally at Group companies outside Japan based on theon past product accidents to investigate the causes, including

businesses. We are currently considering rolling out the system

Personal Information Protection Policy and by complying withprocess-related, organizational, and psychological factors, andmore aggressively across the Group.

all applicable laws and regulations as well as the expectations

these discussions help them enhance their ability to identify
issues and craft solutions.

of society at large.

Protecting Personal Information

Hitachi experienced two known leaks of personal information

We established a personal information protection management*1 Basic Reliability Course: Deepens understanding of Hitachi’s monozukuri craftsmanship,
quality management, and labor safety.
*2 Intermediate Reliability Course: Improves understanding of more practical issues, including
Hitachi’s monozukuri craftsmanship, ISO 9001 certification, defect elimination, design for
reliability, and purchase management.

Through the rollout of this system, as well as the safe handlingof personal information, e-learning programs for all employees,
information throughout the company.
internal regulations in line with legal requirements to appropriately
manage information related to Japan’s My Number taxpayer

Hitachi places great importance on digital tools, including

January 2016.

identification system, which the government introduced inour corporate website and social media, for promoting ourDuring fiscal 2016, no grievances concerning breach ofactivities and deepening customer understanding as part ofcustomer privacy or loss of data were recorded in the systemdeveloping our Social Innovation Business globally. Effectivethat aggregates all such reports from Group companies.

risk management is required when using these digital tools
Privacy Mark*1 Certification

the rights of others, including human rights. To this end, we

Hitachi, Ltd. first received Privacy Mark certification in Marchhave established the Hitachi Disclosure Policy, the Global

2007. We have maintained the high level of privacy protection

Information Security Administration Rules, and the Social

needed to renew this certification five subsequent times, mostMedia Communication Guidelines as guidance instruments,

recently in March 2017.

sharing them with Group companies worldwide.
Also, Hi-CRM, Hitachi’s customer relations management

The entire Hitachi Group is committed to personal information
protection, with 47 Hitachi Group companies*1 Privacy Mark: A third-party certification established in April 1998 that is granted by theassessment body Japan Information Processing Development Corporation to businesses
that have taken appropriate security management and protection measures related topersonal information.

Personal Information Protection Policy

We are also establishing a management system and defining

Communicating with Customers on the Web andSocial Mediaon online platforms to protect our brand and avoid violating

during fiscal 2016.

system based on our Personal Information Protection Policy.

and periodic audits, we are ensuring protection of personal

Rigorous Information Management

handle the personal information of its patients and others.

in Japansystem, has been applied to 189 Group companies to collecthaving received the Privacy Mark as of May 2017. In July 2009,

and accurately manage customer information Group-wide, in

the Corporate Hospital Group in Japan also gained Privacy Markaddition to serving as a marketing tool. Hi-CRM covers morecertification. This group is working hard to protect and carefullyHitachi Sustainability Report 2017

Contents

85

Introduction

Management Approach

Activities

Performance Data

Community Involvement and Development

Community Involvement and Development
Hitachi’s Aims: Building a Better Future Through Collaborative Creation

Corporations interact with a diverse community of stakeholders through their on-site operations. In working toward a sustainable society, modern corporations are
expected to recognize the value of community interaction and utilize their operational strengths in actively supporting the local community through projects thatbolster involvement and development at the local level.
As a good corporate citizen, Hitachi is collaborating with various stakeholders in carrying out a diverse range of community activities with the aim ofachieving coexistence with society, such as through youth development, creation of cultural diversity, assistance for local community development, andenvironmental preservation.

Fiscal 2016 Overview of Activities
In fiscal 2016, we implemented a survey on community engagement using the LBG guidelines and moved forward with community investment. We continued tosupport community engagement by our employees and to implement human resources development measures in developing countries, as well as cultivating
STEM human resources.
Main Plans and Results
Promoting Sustainable Community Involvement and Development
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Examination and implementation of measures· Organize approaches to implementing· Appointed CSR promotion officers at Group★★★

· Conduct hearings on and determine

to establish longer-term relationship withstrategic community engagementcompanies to reinforce North American

communities in which Hitachi operates

guidelines for Hitachi’s community

CSR network

engagement· Globally shared information on community· Establish assessment methods and KPIs

investment ratios and major case studies· Systematized surveys of community
engagement, conducted assessments ofsuch activities, and considered establishment
of KPIsHitachi Sustainability Report 201786

Contents

Introduction

Management Approach

Activities

Performance Data

Community Involvement and Development

Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Implementation of community support· Conduct programs by or for Group· Organized volunteer festival (though★★★

· Continue with and expand Hitachi Volunteer

activities

employees

postponed until next fiscal year due to· Conduct independent programs incircumstances of a cosponsor)

collaboration with Group companies· Surveyed other companies’ employee· Have each Group company and businessdonation (matching gift) systems andunit conduct independent community

considered own approaches

support programs· Implemented approximately 120 activities

Day activities

on Hitachi Volunteer Day★★★

· Launch Science and Technology Human

Implementation of policies to cultivate STEM

· Develop and implement program to cultivate· Implemented a pilot class as part ofhuman resources (Japan)

STEM human resources (Japan)

Science and Technology Human Resource

Implementation of new businesses of value· Plan and design new businesses of value toDevelopment Support Program (Hitachi

on a Group-wide basis

to the local community (global)

the local community (global)

Future Innovator Program)· Host a mini workshop for female high· Conducted dialogue with experts andschool students as part of the Female

Resource Development Support Programinterview with director general of Gender

Engineer Encouragement Project

Equality Bureau, Cabinet Office, as part of· Continue with Hitachi Science Seminar

the Female Engineer Encouragement Project· Publish second issue of web magazine and· Launched Female Engineer Encouragement

host symposium on socially disadvantaged

websitegroups (Japan)· Implemented Hitachi Science Seminar· Build hypothesis on and conduct analysis· Published Mirai (“Future”) web magazineof new businesses of value to the local· Hosted symposium on socially disadvan-community (global)

taged groups and implemented workshop
on new businesses of value to the local
community
Implementation of human resources· Hold 14th Hitachi Young Leaders Initiative

development measures in developing(HYLI)· Prepared to host 14th HYLI★★★

· Host 14th HYLI and implement Reporting
Meeting in each country· Come up with KPIs for each program

countries· Determine areas requiring Hitachi’s
community engagement through theperspectives of SDGs★★★: Achieved ★★: Partially achieved★: Not achieved

Hitachi Sustainability Report 2017

Contents

87

Introduction

Management Approach

Activities

Performance Data

Community Involvement and Development

Promoting Sustainable Community Involvement and Development
Hitachi’s ApproachSocial Contribution Activities

provided 1,953 million yen in funding toward social contribution
activities worldwide.

Our diverse operations span the globe and involve a

Policy on Social Contribution Activities

wide range of communities. In order to participate in

Hitachi’s Group-wide policy on social contribution activities

Policy on Social Contribution Activities and Statement

a community, establish a long-term relationship withguides our promotion of a range of socially responsible initia-

Policy on Social Contribution Activities

it, and contribute to its development, we feel it istives. The engine of our various businesses including social

The Hitachi Group promotes interactive communication with local

important to strategically pursue social contribution

innovation is driven not only by Hitachi’s efforts to build a rela-activities and to establish sustainable goals. We havetionship with communities as a corporate citizen but also by

formulated a policy on social contribution activities

our employees’ flexible mindset and motivation brought about

and are carrying out a wide variety of activities acrossby volunteer activities. We believe that these initiatives enable“Nurturing People, Connecting to the Future”

the Group.

us to contribute to the development of sustainability in both

The statement was set down to succinctly express and convey theour business and society as a whole.

meaning of the policy to as many people as possible.

The results of these activities are monitored using
internationally recognized methods for measuring

society through social contribution activities related to business activities,
employee volunteers, and charitable activities in the key fields of humandevelopment, the environment, and community support.
Statement

As one of Hitachi’s global efforts, we introduced the Hitachi

effectiveness, and improvements are made as

Volunteer Day in 2012. To mark the International Volunteer Day on

needed. The Hitachi Global Foundation will further

December 5 each year, we set every November and December

accelerate these initiatives by examining optimum

as a period during which we further encourage our employees

approaches to Hitachi’s community engagement.

to organize and take part in a broad range of volunteer activities
to contribute to their communities. In fiscal 2016, approximately

Social Contribution Activities

Key Indicators
Breakdown of Funding for Social Contribution Activities

7,540 employees and family members participated in 115
separate activities rooted in local communities, from environmental initiatives carried out together with local residents andstudents to support for welfare and educational facilities.

Social welfare

30%(including disaster
relief at 6%)
1,953 million yen*1

These activities are promoted by our CSR and Environmental
Strategy Division in conjunction with the CSR and social contribution departments of business units and major Group companies, planning and carrying out initiatives as appropriate to
the nature of their business and the needs and challenges of
the regions they operate in.
In fiscal 2016, Hitachi and the Hitachi Global Foundation

7%

Other

Environment

6%

Scholarships
and education

Health, medical care27%
*1 Japan: Hitachi, Ltd., 134 Group companies, and the Hitachi Global Foundation.
Outside Japan: 159 Group companies.

30%

Hitachi Sustainability Report 2017

88

Contents

Introduction

Management Approach

Activities

Performance Data

Community Involvement and Development

Classification According to LBG Guidelines

Ratio of Social Contribution Activities Based on LBG Guidelines

We conduct surveys of social contribution activities across all(monetary basis)eight businesses by applying three categories of motivation
based on the LBG* measurement framework, namely,
1charitable gifts, community investment, and commercial
initiatives in the community.
Hitachi continues to focus on ways to strategically alignits social contribution activities with business operations,with efforts toward this end including continued charitable

Human Development: In fiscal 2016, as well as systematizing
our Science and Technology Human Resource Development

FY 2014

FY 2015

FY 2016

Charitable gifts

80%

80%

75%

Community investment

18%

16%

20%

Commercial initiatives in the community

2%

4%

5%

*1 LBG (London Benchmarking Group): An internationally recognized, global network of
114 companies that provides a framework for measuring corporate community investment.
Over 300 companies worldwide use the LBG model.

LBG

Support Program, the Foundation also launched two newprograms. The Hitachi Future Innovator Program is an independently developed, four-month quest-style educational
program aimed at fifth-grade elementary school students,
cultivating scientific and technical thinking through training inissue-resolution skills. We intend to expand it in fiscal 2017
into a Group-wide social contribution program run with theactivities and increased community investment across theassistance of employee volunteers. The Female Engineer

Hitachi Group.

Encouragement Project is an educational initiative that aims to

The Hitachi Global Foundation

spark interest in science and engineering among middle andJapan Emerging Business Development Association (JEBDA)In April 2015, five Japanese Hitachi foundations merged intohigh school girls and encourage them to pursue a career in theagreed to work together to revitalize the community and pro-the Hitachi Global Foundation. The newly formed Foundation

field. We also held a symposium and panel discussion on the

mote industry in Kamaishi, Iwate Prefecture. As our contribu-

began work on activities centered on three key areas: promotion

topic of “Girls in STEM: Embracing the Future.”tion to addressing the needs and issues of this regionalof academic research, science, and technology; humanSupport for Local Communities: The Foundation publishedcommunity, we applied our specialist skills in the field of IT todevelopment; and support for local communities. In fiscal

the inaugural issue of the web magazine Mirai (“Future”). Written

pro bono activities that have included building websites and2016, to accelerate our work contributing to resolving theto reach a broad audience, Mirai addresses the problems of

upgrading business systems for a local fishing cooperative andissues faced by society and responding to societal needs,

vulnerable members of society and other challenges from aseafood processing company.

we began several new initiatives.

variety of perspectives to explore solutions, alternative views,

In June 2016, Hitachi, Ltd., the city of Kamaishi, and theWe also seek ways to use the knowledge and technical skills

Promotion of Academic Research, Science, andand support measures. As a further consciousness-raising

we have cultivated through our business to develop the humanTechnology: The Foundation awards Kurata Grants to support

activity, we also held a symposium on socially disadvantaged

capital that society will need in the next generation. To this end,

research taking place in Japan. The establishment of thegroups and other relevant social issues.

we work with local governments and educational institutions to

Kurata Grants system was originally proposed in 1967 byimplement and expand activities for young people, taking

Chikara Kurata, former chairman of Hitachi, Ltd., who hoped toto consider the needs of the times; launch new initiatives

advantage of each Group company’s individual characteristics.

encourage the development of science and technology in Japan.

aimed at contributing to the problems faced by society;To date, these activities have included science classes, IT

The formation of the Hitachi Global Foundation was taken as

encourage dialogue, workshops, and exchange of opinion

school visits, and hands-on programs using Hitachi products.

an opportunity to revise the Kurata Grants system in response

among experts; and search for ways to contribute toto the changing times, and in fiscal 2016 the Foundation

regional communities.

Moving forward, the Hitachi Global Foundation will continue

awarded 30 grants to research seeking solutions to social
challenges in the three areas of energy/environment, urban
development/transportation, and health/medical care.

The Hitachi Global Foundation

Hitachi Sustainability Report 201789

Contents

Introduction

Management Approach

Activities

Performance Data

Environment

Environment

Hitachi’s Aims: Achieving a Low-Carbon Society, a Resource Efficient Society, and a Harmonized Society with Nature
The world’s population, which was 7.6 billion in 2017, is projected to grow to 9.8 billion by 2050 and to 11.2 billion by 2100.*1 Global GDP is also continuing
to expand, aggravating a host of environmental problems, including global warming caused by higher CO2 emissions from fossil fuel consumption, the depletionof resources due to increased demand, and ecosystem destruction. Global-scale efforts are being made to develop approaches that lighten the burden on
the environment so that a prosperous planet can be passed on to future generations.
Hitachi strives to achieve a more sustainable society by addressing environmental problems, which pose a major challenge for society, based on its corporate
mission of contributing to society through the development of superior, original technology and products.
*1 According to World Population Prospects: The 2017 Revision, published by the United Nations.

Fiscal 2016 Overview of Activities
In fiscal 2016, we announced our Environmental Vision and long-term environmental targets called Hitachi Environmental Innovation 2050. Likewise, we worked hardto achieve the following targets that were set forth in the Environmental Action Plan for 2018: Raising the level of environmental activities; improving the environmental
performance of our products and services; and reducing energy use in our factories and offices. With the exception of one item, we were able to attain all targets.
With an eye to the plan’s final year of fiscal 2018, we are committed to improving the results of various activities on an ongoing basis to achieve our targets.
Main Plans and Results (excerpt from the Environmental Action Plan for 2018)
Enhancing Environmental Management on an Ongoing Basis
Policies

FY 2016 goals/plans

Results in FY 2016

Achievementlevel

FY 2017 goals/plans

Higher level of environmental activities

240 green points (GPs) under the GREEN21-2018 environmental

265 GPs★★★

360 GPs

35%

★★★

35%

12%

★★

16%

activity index

Achieving a Low-Carbon Society
Improvement in the environmental performance of products

Reduce CO2 emissions from use of products and services

and services

by 30% (base: FY 2010)

Reduction in energy use in factories and offices

Reduce energy use per unit by 15% (base: FY 2005)★★★: Achieved★★: Partially achieved★: Not achieved

Hitachi Sustainability Report 2017

Contents

90

Introduction

Management Approach

Activities
Environment

Promoting Environmental Management
Hitachi’s Approachface increasing demands and expectations to reduce theenvironmental burden of their business activities.

Hitachi faces a broad range of challenges regarding

The Intergovernmental Panel on Climate Change (IPCC)

its products and services, such as reducing carbon

concluded that limiting global warming “below 2°C relativeemissions and improving resource efficiency across theto pre-industrial levels” would require “40 to 70% global

value chain. At the same time, given the expectations ofanthropogenic GHG emissions reductions by 2050 comparedsociety, achieving innovations that help resolve environ-to 2010.” The Paris Agreement adopted in December 2015

mental issues presents major business opportunities.

at the 21st Conference of the Parties (COP21) to the United

Guided by our Environmental Vision, we announced

Nations Framework Convention on Climate Change—andin September 2016 a set of long-term environmental

which came into force in November 2016—set ambitious

targets called Hitachi Environmental Innovation 2050

targets, including a global long-term target of keeping global

to guide our environmental initiatives from a broader

warming to below 2°C and efforts to limit the increase to 1.5°C.

and longer-term perspective. Aligning this with ourEnvironmental targets have also been set in the Sustainable

Mid-term Management Plan, we have also formulated

Development Goals (SDGs)—the centerpiece of the 2030

an Environmental Action Plan for 2018 that lays out

Agenda for Sustainable Development, adopted by the United

specific activity areas and improvement targets over a

Nations in 2015—whose Goal 13 reads: “Take urgent action to

three-year period through fiscal 2018 in promoting our

combat climate change and its impacts.”

environmental activities.
We will promote Group-wide efforts to achieve theIn the light of these global trends and our own management
policy, we created an Environmental Vision to better definetargets set forth in the Environmental Action Plan for

the kind of society that Hitachi envisions from a long-term

2018 in order to conduct environmental management

perspective. Our Environmental Vision envisions a low-carbon

in a manner that meets the expectations of society.

society; a resource efficient society; a harmonized society withnature. To achieve such a sustainable society, we establisheda set of long-term environmental targets called Hitachi

The Environmental Vision and Hitachi
Environmental Innovation 2050

Environmental Innovation 2050.
Hitachi’s Environmental Vision

As global warming, resource depletion, ecosystem destruction,and other environmental issues grow more serious, companies

Performance Data

Hitachi Sustainability Report 2017

Contents

91

Introduction

Management Approach

Activities

Performance Data

Environment

Low-Carbon Societycollect and recycle used products, reduce the volume of water

We seek to reduce CO2 emissions by 80% compared toused in the production process such as through purification

fiscal 2010 levels by fiscal 2050 to realize the drop in global

and reuse, and engage in other efforts.

anthropogenic GHG emissions that was deemed necessary in
the IPCC’s Fifth Assessment Report. We will attain this target

Hitachi is pressing forward with activities in accordance with its
Action Guidelines for Environmental Conservation in order to

For a Resource Efficient Society

throughout our value chain. First, this will be achieved bydecreasing emissions during the usage stage of our products

Environmental Action Plan for 2018

achieve its Environmental Vision and the Hitachi Environmental
Innovation 2050 long-term environmental targets. Toward thisHarmonized Society with Nature

end, the Environmental Action Plan is drawn up every threeand solutions, which account for a substantial share of emis-

We strive to minimize Hitachi’s impact on natural capital, which

years. The Environmental Action Plan for 2018—formulated insions in the value chain. We will contribute to our customers

bestows the benefits of nature on humankind by assessing

fiscal 2016—stipulates detailed activities and targets to tackle

and to society by developing innovative technologies and solu-

ecosystem impact and advancing measures to minimize theby fiscal 2018.

tions, as well as enhancing the efficiency of our products andburden at each stage of Hitachi’s value chain. Moreover, we

supplying low-carbon energy. At the same time, we will also

are preserving the ecosystem through our products andwork to cut down on emissions at the production stage of ourservices, such as our air and water purification systems andEnvironmental Action Plan for 2018: Results
and Targets

business activities.

environmental monitoring systems. We also endeavor to

For our performance under the Environmental Action Plan forminimize the environmental burden of our factories and offices.

2018, marking fiscal 2016 as its first year, we missed a target

For a Low-Carbon Society

in one of the item areas, but for every other category, we were
For a Harmonized Society with Natureable to reach our goals. We will continue to make improvementsin each activity aimed for fiscal 2018—our final year—andResource Efficient Society

achieve our targets.

Together with our customers and society, Hitachi will do itsthat uses water and other resources efficiently. We will expand

The Hitachi Action Guidelines for Environmental
Conservation2018 are the main ones in Hitachi’s environmental activities

circulative uses of water by further advancing the entire range

The Action Guidelines for Environmental Conservation wereoverall, and our endeavors in these areas are introduced inof water treatment technologies involved in water use fromdrawn up to show the direction of our business management

the following pages.

seawater desalination and other forms of fresh water generation

initiatives for environmental protection as we set out to realize

to sewage treatment.

our Environmental Vision.

utmost through its business operations to help build a society

We also aim to improve our usage efficiency of water andother resources by 50% compared to fiscal 2010 levels by fiscal
2050. To achieve this target, we will create products that last
longer and use less resources, make thoroughgoing efforts to

The Hitachi Action Guidelines for Environmental Conservation

The indicators used in the Environmental Action Plan for

Hitachi Sustainability Report 201792

Contents

Introduction

Management Approach

Activities
Environment

Management
Items

Indicators

Strengthen
globalenvironmental
management

Voluntary implementationof environmental
monitoring by business
units and Group
companies at overseas
business sites(implementing sites/
total targeted)

Raise thelevel ofenvironmental
activities

Factories and Offices: Use Resources Efficiently
Fiscal2016
targets

Fiscal2016
results

Final fiscal
Achievement
year (2018)
level
targets

20%

59%

◆◆◆

80% orhigher(cumulative
total)

Item

Indicator

Reduce waste Reduction in waste andgeneration
valuables generation
per unit (base: FY 2005)

Fiscal2016
targetFiscal2016
resultFinal fiscal
Achievement
year (2018)
level
target

12%

13%

◆◆◆

14%

Factories and Offices: Manage Chemical Substances

Green points (GPs) under 240 GPs 265 GPs ◆◆◆the GREEN21-2018environmental activity index

480 GPs

Item

Indicator

Reduceemissions ofchemical
substances

Reduction in atmosphericemissions of chemical
substances per unit
(base: FY 2006)

Fiscal2016
targetFiscal2016
resultFinal fiscal
Achievement
year (2018)
level
target

34%

34%

◆◆◆

Fiscal2016
targetFiscal2016
resultFinal fiscal
Achievement
year (2018)
level
target

30

144

◆◆◆

Fiscal2016
targetFiscal2016
resultFinal fiscal
Achievement
year (2018)
level
target

965

◆◆◆

36%

Products and Services
Item

Indicator

Improveenvironmental
performance

Rate of reduction in CO2emissions from use of
products and services(base: FY 2010)

Fiscal2016
targetFiscal2016
resultFinal fiscal
Achievement
year (2018)
level
targetEcosystem Preservation

30%

35%

◆◆◆

Item

Indicator

Contribute to
ecosystem
preservation

New ecosystempreservation activities
implemented

40%

600

Factories and Offices: Prevent Global Warming
Item
Reduceenergy use

Indicator
Reduction in energy use
per unit (base: FY 2005)

Fiscal2016
targetFiscal2016
resultFinal fiscal
Achievement
year (2018)
level
target

15%

12%

◆◆

Indicator

Enhanceefficiency ofwater usage

Reduction in water use
per unit (base: FY 2005)

Item

Indicator

Make social
contributions
throughenvironmental
activities

Activities implemented
800
in such areas asenvironmental education,
information exchange,
ecosystem preservation
through afforestation, etc.,
community contribution
through cleanup projects,
etc., campaigns to turn off
lighting, and community
energy-saving activities

17%

Factories and Offices: Enhance Efficiency of Water Usage
Item

Partnership with Stakeholders

Fiscal2016
targetFiscal2016
resultFinal fiscal
Achievement
year (2018)
level
target

23%

27%

◆◆◆

27%

◆◆◆: Achieved◆◆: Partially achieved

2,400(cumulative
total)

Performance Data

Hitachi Sustainability Report 2017

Contents

93

Introduction

Management Approach

Activities

Performance Data

Environment

Enhancing Environmental Management on an Ongoing Basis
Hitachi’s Approach

The CSR and Environmental Strategy Division is responsible

aforementioned criteria for environmental management continues

for developing Group-wide environmental policies. Important

to maintain ISO 14001 certification. Certification is also being

To lay the groundwork for the promotion of

items related to environmental initiatives are deliberated by the

pursued at business sites that do not yet meet the criteria. In

environmental management on an ongoing basis andExecutive Sustainability Committee, established in 2017; it isconjunction with the issuance of ISO 14001: 2015, businessthereby achieve its Environmental Vision, the Hitachi

chaired by the president of Hitachi, Ltd., and its members

sites that acquired certification prior to this version have beenGroup needs to establish and continuously improve

include top Hitachi executives. The environmental strategy

working to align their environmental management systems withsystems to reduce the environmental burden of its

officers from business units and major Group companies ensure

the 2015 update. As of March 2017, approximately 25% ofbusiness operations.

that the Hitachi Group Environmental Action Plan approved bybusiness sites have completed this task. The transition will be

Based on a number of certifications and guidelines,

the executive officer in charge of environmental concerns is

steadily promoted with an eye to meeting the September

including ISO 14001, we have developed Group-wide

implemented throughout the Group. Eco-Management

2018 deadline.

environmental management systems that allow us to

Meetings, reorganized in 2017, promote long-term targets, setgauge the environmental burden of our businessgoals for the Environmental Action Plan, develop ways toactivities and steadily implement a PDCA cycle toachieve them, and endorse initiatives to be carried out by the

Status of ISO 14001 Certifications (as of March 31, 2017)
Total
250

Group as a whole. Outside Japan, we assign regional specialists

Number of Certified Sites*1

mental burden throughout the value chain, we apply

to report on the progress of the Environmental Action Plan and*1 Including companies with more than one certified business site.

Environmentally Conscious Design Assessments during

share information on the latest environmental regulations while

the design and development stages of the products

exchanging views on local environmental issues during meetingsand solutions we offer. We also have in place a global

held once or twice a year in each region.

reduce that burden. In order to reduce the environ-environmental management framework, under which
we evaluate our environmental activities and keep
close track of our environmental performance.

Building Environmental Management Systems

Americas16

mental load. There are approximately 200 business sites thatmeet these criteria, and these, together with the CSR andEnvironmental Strategy Division, have developed andEnvironmental Management Framework

implemented the Hitachi Group Environmental Promotion

Our global environmental management system supports envi-

Organization EMS (environmental management system) toronmental decision making and implementation at Hitachi, Ltd.

promote the consistent implementation of environmental

and 864 consolidated subsidiaries (a total of 865 companies).

policies. At the same time, every business site meeting the

China
55
Rest
of Asia51

We have established environmental management criteria toensure efficient management of each business site’s environ-

Environmental Management

Europe12

List of ISO 14001-Certified Sites

Japan
116

Hitachi Sustainability Report 2017

Contents

94

Introduction

Management Approach

Activities

Performance Data

Environment

Monitoring Environmental Performance Data
For effective environmental management, we collect data on
the environmental performance of business operations using

by integrating this process into our existing management

Key Indicators
Green Point (GP) Average: FY 2016 Targets and Results

the Environmental Data Aggregation System.
The system was upgraded in fiscal 2016, and it now supports
multiple languages and is able to directly register environmental

our main, priority products to quantitatively evaluate their burden

FY 2016 target: 240 GPs
FY 2016 result: 265 GPs

on the global environment in such areas as the consumption ofManagement
55 GPsmineral resources, fossil fuels, and water resources, as well as100

items such as energy use, CO2 emissions, and waste generation,

their impact on global warming and air pollution. The results ofsuch LCAs are disclosed to our stakeholders and utilized inas well as whether it falls under relevant environmental laws andat the CSR and Environmental Strategy Division where we will
identify environmental management issues, share instructive

50

Collaboration with
Stakeholders
41 GPsexamples within the Group, and improve environmental practices.

Products andServices
41 GPs*1 The standard developed by the International Electrotechnical Commission concerning
environmentally conscious design for electrical and electronic products.

Creating Eco-Factories & Offices Selectenvironmental management criteria, we collect and analyze
on a monthly and quarterly basis so that the environmental

improving the design of next-generation products.

0

At the approximately 200 business sites that meet Hitachi’sdata on such key items as energy, waste materials, and waterand ascertaining the environment-related needs of our stakeholders. We conduct life cycle assessments (LCAs) focusing onload data from some 1,200 Hitachi business sites worldwide on

regulations. The collected data will be aggregated and analyzed

system, such as by keeping abreast of environmental regulations

To reduce the environmental burden of our business activities,
Global Warming
Prevention
38 GPsEcosystem
Preservation
39 GPsmanagement levels can be further increased.

since fiscal 2011 the CSR and Environmental Strategy Division
has implemented an Eco-Factories & Offices Select certification
program for business sites that promote activities demonstrating

Resource Recycling and Managementof Chemical Substances
51 GPsEnvironmental Activity Evaluation Systema high level of environmental consciousness and produce
notable results in that area. This helps raise the environmental
awareness of employees and promote environmentally conscious

We use our own evaluation system, GREEN 21, to improve thelevel and quality of our environmental activities. It divides theEnvironmentally Conscious Design Assessments

targets of the Environmental Action Plan into six categories

We conduct Environmentally Conscious Design Assessments

and evaluates achievements. A perfect score for any category

for all products and services involving a design process to

manufacturing (factory) and nonmanufacturing (office) divisions

is 100 green points (GPs), and each item is assessed on aensure environmentally conscious design and development.

globally, we certify existing factories that actively engage inscale from 1 to 5.

Thirty environment-related areas are assessed for their impact

improvements to achieve efficient production and new offices

on climate change, resource depletion, and environmental

that have been environmentally designed from the start. Superior

stimulate environmental action have been taken into consider-pollution (ecosystem degradation) at each stage of the productpolicies from certified factories and offices are shared with theation as an additional scoring criterion. Our fiscal 2016 compre-

life cycle with a view to reducing the environmental burden. To

entire Group, with other locations encouraged to implement

hensive evaluation was 265 GPs against the target of 240 GPs.

meet the IEC 62430* criteria for environmentally conscious

them as well. To maintain and raise the level of environmental

For fiscal 2017, we will continue to promote environmental

design, in addition to implementing these assessments, we areawareness through Eco-Factories & Offices Select, certified

activities to achieve the target of 360 GPs.

advancing environmentally conscious design and development

factories and offices are re-evaluated every fiscal year to confirm

Starting in fiscal 2016, activities reflecting an eagerness to1business activities.
Based on certification criteria that were developed for ourHitachi Sustainability Report 2017

Contents

95

Introduction

Management Approach

Activities

Performance Data

Environmentthat their performance continues to meet requirements. In fiscal

Energy Savings in Eco-Factories & Offices

2016, 9 facilities were newly certified and 67 facilities had their

Energy Savings with an Efficient Manufacturing Line Using

certifications renewed. The total number of certified factories

JCM*1 (Hitachi Chemical Co., Ltd.)and offices was 76.
Eco-Factories & Offices Select Certification Criteria

A factory or office that has met atleast one of the following criteria
Eco-Factory SelectEnergy efficiency
Renewable energy use
High-efficiency lighting
Eco-Factories &Offices SelectRecycling of waste andother resources
Efficient water recycling
Reductions in chemical substanceemissions

Facilities that have
met their targets foreach fiscal year under
the GREEN 21
evaluation system

Eco-Office SelectEco-Factories & Offices

High-efficiency lighting
Renewable energy use
Energy savings
Improved office building
environmental performance

Factories and Offices

Eco-Factories & Offices

Energy-Saving Activities Using IoT with a Shop Floor
Perspective (Hitachi Construction Machinery Co., Ltd.)
Hitachi Construction Machinery uses a network of Japanese

The Hitachi Chemical Group’s Hitachi Chemical Energy

and international affiliates centered on four main plants inTechnology (Vietnam) manufactures lead-acid batteries inJapan to produce construction machinery and its principal

Vietnam, and has constructed a new, efficient manufacturing line

components. Together with energy reductions during use as

to reduce energy consumption. In conventional manufacturing

these products switch to electric or hybrid power, efforts

lines, electric power consumption is particularly high during thethroughout the network are also being made to reduce energy

formation and charging processes. By integrating these proc­

consumption in the manufacturing stage.

esses to reduce the amount of electric power consumed and

The entire Hitachi Construction Machinery Group continues

by eliminating the LPG used in washing and drying processes,

to implement energy-saving measures and promote greater

CO2 originating from fossil fuels was reduced about 60% on

efficiency in plant and office lighting and air-conditioning. Several

the new line. In this way CO2 emissions from the plant werelocations have also introduced IoT technology to further reduce

reduced by 2,880 t-CO2 compared to fiscal 2015. The washingenergy consumption and raise productivity. Specifically, byprocess could also be eliminated from the new line, cutting

adopting the Energy and Equipment Management Service, adown on the amount of water used. Construction of the new

key solution concept under Hitachi’s Lumada IoT platform toline was done using the Joint Crediting Mechanism (JCM).

comprehensively control energy data and equipment across*1 Joint Crediting Mechanism (JCM): A system of cooperating with developing nations inefforts to reduce greenhouse gases, after which the benefits of the reduction are shared
between the two countries.

multiple business facilities, they are able to efficiently analyze
and manage electric power data gathered from equipment at
each plant. Energy usage by the machine tools, robots, andother production equipment used in plants is finely controlled,
reducing standby power and increasing energy efficiency.

The newly constructed manufacturing line.

Hitachi Sustainability Report 2017

Contents

96

Introduction

Management Approach

Activities

Performance Data

Environment

With these efforts the energy use per unit has been

Environmental Education Initiatives

decreased 32% compared with fiscal 2010 at the company’s

to Hitachi Group training, individual companies and units provide
education tailored to their own business area. For generalmain plants in Ibaraki Prefecture, contributing to a significant

Promoting Environmental Education

education, we offer Internet-based e-learning courses in

reduction in electric power costs.

Promoting greater environmental awareness and understanding

Japanese, English, and Chinese to familiarize all employees

among our employees is essential to Hitachi’s effort to energize

with our Environmental Vision and long-term environmental

its environmental activities. Toward that end, we are advancing

targets called Hitachi Environmental Innovation 2050. To date,our environmental education. Hitachi Group training is being

142,012 employees worldwide have taken this course.

implemented for all Group employees, from newly hired workers
to working-level employees. They are provided with basic envi-

Environmental Education and Training Systemronmental education, as well as courses on environmental risks
Targetand compliance with environment-related laws and regulations.

At Hitachi, we provide basic environmental management
courses for employees working in air, water, and waste

General education

Actions and Achievements

All
employees

and operational procedures. We are also strengthening similar

Lumada IoT Platform
Energy and Equipment Management Service

outside of Japan. Accordingly, in fiscal 2016, 21 people from 9
companies took part in a training program that was hosted in
Ayutthaya, Thailand, in February 2017, and a program in Amoy,
China, in March 2017 attracted 57 people from 37 companies.
In order to complete our response to ISO 14001: 2015
within the three-year transition period, explanatory meetings forthe internal auditors of the Hitachi Group were held to deepen
understanding of the revisions. In fiscal 2016, the explanatory
meetings held in Japan (in June and August) were attended by
99 internal auditors from 43 Group companies, while 74 internal
auditors from 49 Group companies attended the meeting inNanjing, China (in September). Furthermore, 16 internal auditorsfrom 15 Group companies attended the US meeting in Dallas (inJune) to deepen their understanding of the revision. In addition

Specialized education

courses designed for working-level employees who work
Hitachi Construction Machinery Co., Ltd.

Beginning

Intermediate

Advanced

Online e-learning: Eco-Mind education(General topics: Global environmental
issues, environmental law, etc.)
Online e-learning: Eco-Mind education(Hitachi Group topics: Environmental
policy, Environmental Action Plan, etc.)

management, as well as training in recent amendments to laws
Tsuchiura Works East Building and the Hitachi UH03 hydraulic excavator, which is included in
the list of Japan’s Mechanical Engineering Heritage.

Introductory

Introductory training for new employees

Workinglevel
employees

Basic environmental management course
for working-level employees(management of waste; air/water quality;
hazardous materials; development &operation of management systems; etc.)
Education for Eco-Factories
Eco-Product development training
Risk communicator training

Brush-up training on ISO 14001

Internal
environmental
auditors

ISO 14001
auditor certification
training

ISO 14001
senior auditor
certification
training

Hitachi Sustainability Report 2017

Contents

97

Introduction

Management Approach

Activities
Environment

Next Steps

Actions and Achievements

From fiscal 2017, we will continue with environmental education

In fiscal 2016, we received a worldwide total of 12 notices

training across our global operations to enhance the knowledge

concerning water quality, air quality, or waste matter andand skills of staff in charge of factory management. Since thecomplaints about noise or odors. Of these, 6 were complaints

general e-learning course is a three-year program, we willfrom nearby residents regarding noise, foul odor, or construc-encourage more employees to take the course with the aim oftion dust from our business sites. This is slightly higher thanfamiliarizing them with our Environmental Vision and Hitachi

the 4 complaints we received in fiscal 2015, but they were all

Environmental Innovation 2050.

promptly addressed.
Hitachi continues to implement enhanced environmental

Environmental Compliancemanagement in order to prevent repeated or new contamination
occurrences.

Environmental Compliance Response
Hitachi considers the environmental burden of all business

Global Notices and Complaints

activities and sets voluntary management criteria that are more

Water
qualitystringent than regulatory requirements. We regularly monitor
water quality, noise levels, and other conditions at each business

Fiscal 2016 cases

Air
quality1

Waste
matter2

1

Complaints

Other(petition,
notification, etc.)

62site and work to minimize environmental risks. In addition, we
take every possible step to prevent problems or their recurrence

As part of our measures to address the pollution of soil

and to strengthen controls by sharing information on environmental

and groundwater, we are examining the soil and water for any

laws and regulations, as well as examples of infringements,

contamination at business sites where hazardous chemical

throughout the Group.

substances have been used. In case contamination is found, we
conduct cleaning and monitoring activities until decontamination
has been completed.

Performance Data

Hitachi Sustainability Report 2017

Contents

98

Introduction

Management Approach

Activities

Performance Data

Environment

Environmental Load
Data on Environmental Load from Operations(FY 2016)

Total Input of Resources

Total Output (Environmental Load)
Products shipped: 3,147 kt

Total Energy Input

Greenhouse Gas Emissions

The data below shows the resource inputs and theenvironmental load for Hitachi Group operations in fiscal 2016.

Energy consumption(crude oil equivalent) 1.95 GL

Greenhouse gases

Electricity 81%

3,922 kt-CO2e*1

CO2 emissions 98%

Gas 15%

Other GHG emissions 2%

Fuel oil 4%

Total Volume ofWaste and Valuables

Raw Materials Input
Materials

3,193 kt

Waste and valuables generation

Operations

Metals 85%
Plastics 5%

Recycle 76%
Waste reduction 5%

Other materials 10%

Landfill 19%

Total Volume ofWater Effluents Discharged

Total Water Input
Water use

41.34 million m3

Wastewater

38.77 million m3

Industrial water, river water 45%
Public water 68%
Tap water 19%

Sewerage 23%

Groundwater, etc. 36%

Underground infiltration,
evaporation, etc. 9%

Water recycling
28.74 million m3*1 CO2e: CO2 equivalent.

1,336 kt

Hitachi Sustainability Report 2017

Contents

99

Introduction

Management Approach

Activities

Performance Data

Environment

Detailed Data on Resource Input and Environmental Load Output
Total Input of Resources
Total resources input from Hitachi Group operations.
Total Energy Input

Energy consumption: (crude oil equivalent) 1.95 GL
FY 2015

FY 2016

Renewable energy

Electricity

3.9 GWh (39 TJ)

2.9 GWh (29 TJ)

Non-renewable energy

Electricity

5,111 GWh (49.7 PJ)

5,897 GWh (57.3 PJ)

0.11 Gm3 (4.9 PJ)

0.16 Gm3 (7.1 PJ)

GasNatural gas
LPG, LNG, etc.

Fuel oil (heavy oil, kerosene, etc.)

56 kt (2.9 PJ)

61 kt (3.2 PJ)

85 ML (3.1 PJ)

78 ML (2.9 PJ)

Raw Materials Input

Materials: 3,193 kt
FY 2015

Materials

Metals1,638 kt

2,710 kt

New materials—

1,497 kt

Recycled materials, etc.

—

1,213 kt

149 kt169 ktNew materials—

167 ktRecycled materials, etc.

—

2 kt

347 kt314 ktNew materials

—

308 t

Recycled materials, etc.

—

6 kt

177 kt189 kt

Plastics

Other materials

Chemicals

FY 2016

PRTR substances*1 handled
Ozone-depleting substances handled

11 t

208 t

Greenhouse gas substances handled

3,791 t3,425 t*1 PRTR substances: The 462 chemicals designated in Japan’s Pollutant Release and Transfer Register (PRTR) Law.
Note: “—” in the FY 2015 column indicates items for which data collection began in fiscal 2016.

Total Water Input

Water use: 41.34 million m3
FY 2015

Water provided by municipality or other sources

FY 2016

Tap water

5.65 million m3

7.77 million m3

Industrial water, river water

20.13 million m3

18.41 million m3

Groundwater

18.13 million m3

14.92 million m3

Rain water—

0.03 million m3

Recycled water (recycled from the wastewater of other organizations)—0.21 million m3

Note: “—” in the FY 2015 column indicates items for which data collection began in fiscal 2016.

Hitachi Sustainability Report 2017

Contents

100

Introduction

Management Approach

Activities

Performance Data

Environment

Total Output of Environmental Load
Environmental load output from Hitachi Group operations.
Greenhouse Gas Emissions

Greenhouse gases: 3,922 kt-CO2e
FY 2015

CO2 emissions
Other GHGs

FY 2016
3,085 kt-CO2

3,845 kt-CO2

SF6 (sulfur hexafluoride)

56 kt-CO2e

56 kt-CO2e

PFCs (perfluorocarbons)

4 kt-CO2e

4 kt-CO2e

HFCs (hydrofluorocarbons)

16 kt-CO2e

16 kt-CO2e

N2O, NF3, CH4

1 kt-CO2e

1 kt-CO2e

Notes:• The CO2 electrical power conversion factor uses the 2005 emission coefficients for individual countries published by the International Energy Agency (IEA) in the 2010 edition of CO2 Emissions from Fuel Combustion.
• The gas and fuel oil conversion factor is based on the list of emissions and calculation methods published by Japan’s Ministry of the Environment.

Total Volume of Waste and Valuables

Waste and valuables generation: 1,336 kt Nonhazardous: 1,309 kt (hazardous: 27 kt)*1
FY 2015

Waste reduction
RecyclingReuse

68 kt (0.4)

3 kt

1 kt (0.4)

Materials recycled

506 kt1,001 kt (21.5)

Thermal recovery

13 kt

12 kt (2.4)

43 kt

254 kt (2.0)

Landfill
Chemicals

FY 201653 kt

PRTR substances discharged or transferred
SOx (sulfur oxides)
NOx (nitrogen oxides)
Ozone-depleting substances emitted (CFC-11, etc.)

4.4 kt4.7 kt

50 kNm3

101 kNm3*2

350 kNm3

488 kNm3

1 t (0 t-ODP)*3

1 t (0 t-ODP)*3*1 Waste materials that pose a threat to human health or the living environment. We dispose of all such materials in accordance with the laws and regulations of each country and region.
*2 Includes SOx generated by a materials company that became a consolidated member of the Hitachi Group in fiscal 2016.
*3 ODP (ozone depletion potential): A coefficient indicating the extent to which a chemical compound may cause ozone depletion relative to the depletion for CFC-11 (trichlorofluoromethane, ODP = 1.0). The emissions factor uses the ODP and global warming potential ofJapan’s Ministry of the Environment.

Total Volume of Water Effluents Discharged

Water effluents discharged: 38.77 million m3
FY 2015

FY 2016

Public water

27.36 million m3

26.16 million m3

Sewerage

9.37 million m

38.93 million m3

Underground infiltration, evaporation, etc.

6.58 million m3

3.68 million m3

Water quality

BOD (biochemical oxygen demand)

433 t

446 t

COD (chemical oxygen demand)

732 t

731 t

Hitachi Sustainability Report 2017

Contents

101

Introduction

Management Approach

Activities

Performance Data

Environment

Environmental Load Through the Value Chain
Calculation of GHG Emissions Throughout the
Value Chain

Categories of GHG Emissions in the Value Chain
Power plants, etc.
Indirect emissions due togeneration of purchased energy(SCOPE 2)

Extraction companies, etc.
3 Fuel- and energy-related

activities not included in
SCOPE 1 and 2

We calculate greenhouse gas (GHG) emissions throughout theProcessors ofintermediate products
10 Processing of sold productsElectricity and heating

entire value chain to more effectively reduce these emissions.
As a substantial amount of emissions comes from use of the
products we sell, we make an ongoing effort to reduce emissions by enhancing the efficiency and energy-saving features

Suppliers

Shipping companies

1 Purchased goods andservices

Product end users

Shipping companies

4 Upstream transportation

9 Downstream transportationand distribution

11 Use of sold products

and distributionof our products and services during their use.
In-house

Construction companies,etc.
2 Capital goods

Waste treatment companies
12 End-of-life treatment ofsold products

Facilities andequipment
Direct emissions(SCOPE 1)

Users of leased assets
13 Downstream leased assets

Waste materials

Franchise members
14 Franchises

Waste treatment companies
5 Waste generated in

Leasing companies
8 Upstream leased assets

operations

SCOPE 1
Direct GHG emissions by thecompany

SCOPE 2
Indirect emissions from electricity,heat, and steam supplied to andused by the company

Transportation companies,etc.
6 Business travel
7 Employee commuting

SCOPE 3: Upstream

Investment destinations
15 Investments

SCOPE 3: Downstream

Other indirect emissions not covered by SCOPE 1 and 2, such as
emissions by other entities related to the company’s activities

In-house:	Within the scope of the company’s organizational boundaries. In principle, the scope of all business activities of the company itself and activities within or controlled byits consolidated subsidiaries.
Upstream:
In principle, activities related to purchased products and services.
Downstream: In principle, activities related to sold products and services.

Hitachi Sustainability Report 2017102

Contents

Introduction

Management Approach

Activities

Performance Data

Environment

GHG Emissions Throughout the Hitachi Value Chain
Category

Description

Calculation Results (Mt-CO2e)

SCOPE 1*1
Direct emissions

Direct emissions from in-house fuel use and industrial processes

1.36 (1.1%)

Indirect emissions from production of electricity and heat purchased by the company

2.55 (2.1%)

1 Purchased goods and services

Emissions from the resource extraction stage to the manufacturing stage, including raw materials, parts, supplied products, and sales

6.92 (5.5%)

2 Capital goods

Emissions generated in the construction, manufacture, and shipping of the company’s own capital goods, such as equipment, devices, buildings, facilities, and vehicles

1.09 (0.9%)

3 Fuel- and energy-related activities not included in SCOPE 1 and 2

Emissions from procuring fuel necessary for electricity and other energy production, including resource extraction, production, and shipping

0.23 (0.2%)

4 Upstream transportation and distribution

Emissions from distribution of raw materials, parts, supplied products, and sales prior to delivery of materials to the company, as well as other distribution activities
of products for which the company bears the expense

0.10 (0.1%)

5 Waste generated in operations

Emissions from transportation, disposal, and treatment of waste generated in the company’s operations

0.11 (0.1%)

6 Business travel

Emissions generated from fuel and electric power used by employees for business travel

0.07 (0.1%)

7 Employee commuting

Emissions generated from fuel and electric power used in employee commuting

8 Upstream leased assets

Emissions from the operation of assets leased by the company, excluding those counted in SCOPE 1 and 2

SCOPE 2*2
Energy-related indirect emissions
SCOPE 3: Upstream (other indirect emissions)0.06 (0.0%)
Included in SCOPE 1 and 2

SCOPE 3: Downstream (other indirect emissions)
9 Downstream transportation and distribution

Emissions from transportation, storage, loading and unloading, and retail sales of products

10 Processing of sold products

Emissions by downstream companies during processing of intermediate products

N/A*3

11 Use of sold products*4

Emissions from use of products by end users, such as consumers and businesses

110.94 (89.5%)

12 End-of-life treatment of sold products*4

Emissions from transportation, waste disposal, and treatment of products by end users, such as consumers and businesses

0.31 (0.3%)

13 Downstream leased assets

Emissions from operating assets owned by the reporting company as lessor and leased to other entities

0.03 (0.0%)

14 Franchises

Emissions by franchises under SCOPE 1 and 2

15 Investments

Emissions related to management of investments

Total

0.01 (0.0%)

N/A
0.10 (0.1%)
123.88 (100%)

Note: Figures in parentheses are percentages of GHGs emitted throughout the value chain.
*1 Includes SF6, PFC, HFC, N2O, NF3, and CH4. The gas and fuel conversion factor is based on the list of emissions and calculation methods published by Japan’s Ministry of the Environment.
*2 The CO2 electrical power conversion factor used to calculate emissions uses the 2005 emission coefficients for individual countries published by the International Energy Agency (IEA) in the 2010 edition of CO2 Emissions from Fuel Combustion.
*3 Cannot be determined due to insufficient information on processing.
*4 CO2 emissions per unit is based on the Inventory Database for Environmental Analysis (IDEA), developed by the National Institute of Advanced Industrial Science and Technology (AIST) and the Japan Environmental Management Association for Industry (JEMAI).

Hitachi Sustainability Report 2017103

Contents

Introduction

Management Approach

Activities

Performance Data

Environment

Environmental Accounting

Achievements

Overview of Environmental Accounting

Environmental Investments, Environmental Protection Costs, and Economic Effects

Hitachi has adopted and made public a set of environmental
accounting procedures conforming to the Japanese Ministry of(billions of yen)
150

127.9

the Environment’s Environmental Accounting Guidelines 2005.
We have used the results of these procedures to raise theefficiency of our environmental investments and activities, more

123.3

125

112.0

107.6

105.8

100

effectively allocating management resources to our ongoingenvironmental efforts.

75
50

29.9
25

5.8

5.3
0

2012

Environmental Investments

25.8

15.2

4.5
2013

Environmental Protection Costs

2014

14.1

7.5
2015

12.7

5.1

(FY)

2016

Environmental Protection Effects (Economic Effects)

Fiscal 2016 Environmental Investments by Countermeasure

Other

23%
Global Warming Prevention

Pollution Prevention

16%

Waste Reduction

9%

52%

Hitachi Sustainability Report 2017

Contents

104

Introduction

Management Approach

Activities

Performance Data

Environment

Environmental Investments(billions of yen)
Description

Total investment

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

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

5.28

5.81

4.46

7.50

5.12

FY 2012FY 2013

FY 2014

FY 2015

FY 2016
19.19

Environmental Protection Costs
Item(billions of yen)
Description

Expenses
Business area

Maintenance costs for equipment with low environmental load, depreciation, etc.*1

31.84

38.63

26.90

24.22

Upstream/downstream

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

1.38

1.27

1.09

0.97

0.63

Administration

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

7.67

6.77

6.47

5.97

5.12
79.64

Research and development

R&D to reduce environmental burden caused by products and production processes, product design expenses

84.71

75.62

76.12

75.71

Social activities

Planting, beautification, and other environmental improvement expenses

0.41

0.51

0.36

0.45

1.21

Environmental remediation

Environmental mitigation costs, contributions, and charges

1.90

0.53

1.03

0.27

0.22

127.91

123.33111.97107.59105.84

FY 2012FY 2013

FY 2014

FY 2015

FY 2016
4.96

Total*1 Equipment depreciation costs are calculated using the straight-line method over five years.

Environmental Protection Effects
Economic Effects*1(billions of yen)

Item

Major FY 2016 Activities

Net income effects

Recovering value from waste by sorting and recycling

17.85

15.98

7.54

7.27

Reduced expenses effects

Installing high-efficiency equipment (lighting, power supply)

12.07

9.82

7.65

6.78

7.77

29.92

25.80

15.19

14.05

12.72

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

107

70

68

59

51

Total
*1 Economic effects include:• Net income effects: Benefits with real incomes, including incomes from the sale of resalable materials and incomes from environmental technology patents.
• Reduced expenses effects: Reduction in electricity, waste treatment, and other expenses through environmental load reduction activities.

Physical Effects*1(million kWh)

Item

Major FY 2016 Activities

Reduction in energy used during production

Installing LED lighting, upgrading air-conditioning equipment, etc.

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

Environmental Liability
We have appropriated 10.05 billion yen in expenses for the disposal of PCB-containing waste and 1.57 billion yen to clean up contaminated soil as the amounts that we can reasonably project as ofMarch 2017 as future environmental liabilities.

Hitachi Sustainability Report 2017

Contents

105

Introduction

Management Approach

Activities

Performance Data

Environment

Responding to Environmental Risks and Opportunities
Hitachi’s Approach

Climate Change: Risks and Opportunities

losing sales opportunities, but Hitachi not only clears therequired norms, we also develop energy-saving products andFrom abnormal weather conditions around the world
associated with global warming to resource depletionand loss of biodiversity, environmental risks that could
seriously affect the future of humanity and our planet
are on the rise. International calls are being made formeasures to mitigate these risks, as exemplified by
the Paris Agreement adopted in 2015 at the 21stConference of the Parties (COP21) to the United
Nations Framework Convention on Climate Change
and the Sustainable Development Goals (SDGs)—
the centerpiece of the 2030 Agenda for Sustainable
Development, adopted by the United Nations.
Businesses, too, must accurately ascertain the risks
they face and the opportunities that arise for theutilization of management resources.
Hitachi focuses on two particular environmental
risks and opportunities—climate change and water
resources—and promotes initiatives to address themin a steadfast manner. Indeed, among the top fiveglobal risks in terms of impact cited by the World
Economic Forum in its Global Risks Report 2017 are“water crises,” “extreme weather events,” and the“failure of climate-change mitigation and adaption.”
Hitachi will strengthen its response from a global
perspective to risks that threaten both corporate
finances and society as a whole, such as the growing
seriousness of abnormal weather, changing rainfall
patterns, and the impact of droughts and floods on
economic activity.

Engaging with the Risks and Opportunities of
Climate Change

services that go beyond the prescribed standards. We can

Hitachi sees climate change risks and opportunities asservices being selected by our customers and gaining fuller

important management issues. We are therefore setting long-term

market penetration, thereby expanding our business.

thus increase the likelihood of our energy-saving products andenvironmental targets through 2050 and clearly outlining ourpolicy of contributing to the achievement of a low-carbon society.

Risks and Opportunities Presented by Physical Factors

In addition, given the global regulatory and policy trends in

Hitachi has a worldwide business presence and believes thatclimate change, we will launch business strategies to minimize

disasters due to the impact of global warming—like powerfulrisks and maximize opportunities. To that end, the Executive

typhoons and heavy rainfall—represent serious business

Sustainability Committee was created in 2017, with the Hitachi

continuity risks. In choosing sites for new plants, for example,

president serving as chairman and members including other

we take potential flood damage into consideration, and we

top executives. Group-wide measures on climate change arehave established the Hitachi Group Guidelines for Developing

advanced by establishing KPIs in our Environmental Action Plan.

Business Continuity Plans that outline measures to be taken intimes of disaster.

Regulatory Risks and Opportunities

At the same time, we perceive the increase in demand for

Carbon taxes, energy consumption taxes, and emissions trading

natural-disaster countermeasures in various countries andsystems may be newly introduced or further strengthened,regions as business opportunities for our disaster-prevention

representing risks impacting directly on management costs

solutions. Hitachi uses the latest IT tools to analyze and evaluate

on top of those incurred in complying with the environmental

data pertaining to people’s daily lives, meteorological andregulations and policies of countries and regions around theother natural trends, and the operation of social infrastructure,

world. To mitigate such risks, we have been reducing or mini-

providing solutions that lead to a proper climate change

mizing cost burdens by enhancing production efficiency andresponse and creating new business opportunities.

introducing energy-saving measures. Our energy-saving
investments in fiscal 2016 totaled approximately 9.1 billion yen.

Other Risks and Opportunities

We also regard the energy-efficiency standards and regula-

A company’s approach to climate change issues influences

tions for products as opportunities for business expansion. If

stakeholders’ evaluations and affects customers’ choice ofour products did not meet such standards, we would risk

products and services. It can become either a risk to businessHitachi Sustainability Report 2017

Contents

106

Introduction

Management Approach

Activities

Performance Data

Environment

continuity or an opportunity for sales expansion. Hitachi

activities, but they can also be an opportunity for our

Maldives—an island country without rivers that depends on

upholds long-term environmental targets of reducing the CO2

water-related business.

rain or groundwater for its drinking water. Through our partici-

emissions throughout our value chain by 50% in fiscal 2030

Hitachi places the water-related business as a corepation in these large-scale, global projects, we will continue toand 80% in fiscal 2050. Toward this goal, in fiscal 2016, weundertaking, having established the Water Business Unit tohelp find solutions for water-related problems around the world.

achieved 35% reductions in CO2 emissions from the use ofprovide machinery, electrical facilities, and services for water

We are also focusing on physical water risks at our own

products and services through the promotion of environmentally

infrastructure. To date, we have installed approximately 700

plants. A water shortage is usually regarded as the main physi-

conscious design during the development stage, as well aswater purification plants and 900 sewage treatment plants incal risk for ordinary plants. However, since Hitachi’s businessthrough the increased sales of products and services with highJapan, as well as over 200 plants in some 40 countries andsites are concentrated in areas near rivers or with a rich sourceenergy-saving performance. Furthermore, we have improved

regions around the world. By providing a range of water-treatmentof underground water, we consider this physical risk to beenergy use per unit by 12% through energy-saving investments

technologies, from water generation to sewage, we seek tominimal. Even so, we have taken appropriate and necessary

in high-efficiency facilities and equipment and by moving forward

realize efficient water circulation for our customers and tomeasures to secure dedicated waterways in case there arein production efficiency by utilizing IoT. In the future, we willlessen the impact of water-related regulations.

water-access concerns. We also deem flood damage as aswitch to a low-carbon business structure; develop innovative

At approximately 200 Hitachi business sites around thephysical risk. At times of new plant constructions, therefore,

devices and materials that contribute to the reduction of theworld, we are promoting appropriate water usage for each

we keep the potential damage in mind when choosing sites.

environmental burden; develop and popularize ultra-efficient

locale by investigating and analyzing water risks and usage

When we judge countermeasures to be required, we install

products and low-carbon energy; and offer energy-conserving

status to be prepared for any regulatory risks that may arise inbulkhead partitions or place essential amenities on the secondsocial system solutions through the wide-ranging and integrated

the future.

floor—including at existing plants. We check upstream waterlevels every month and set up flood task forces when levels

harmonization of disparate systems.

Water-Related Risks and Opportunities

Risks and Opportunities Presented by Physical Factors

reach a dangerous level, sharing such information with ourJust as there are countries and regions around the world that

suppliers. We also diversify risks by procuring components

are endowed with rich water resources, there are also manyfrom multiple suppliers.

Activities for Water-Related Risks and Opportunities

places where people do not have enough water for their

Hitachi is responding to both water-related risks and opportu-

everyday lives and for agriculture. For Hitachi, such shortages

nities with our customers and society through our business

represent both a risk and an opportunity.

operations by establishing a long-term environmental target ofbuilding a water- and resource-efficient society by 2050.

For example, we provide the long-distance water pumps at
the core of water distribution facilities in large-scale projects toprovide water to areas with a shortage. In Egypt, we built

Regulatory Risks and Opportunities

pumping facilities to send water from the Nile River to desert

We are subject to regulations stipulated by different countries

areas for the country’s greening project, and in China we are

and regions concerning water use, such as a tightening ofdrawing water from the Yangtze River to the Yellow River,quality standards for both water supply and drainage and awhich suffers from a serious water shortage. Meanwhile, ourjump in prices. These regulations pose a risk for our business

desalination system provides water for Male, the capital of theWe will continue to promote necessary measures to minimize
water-related physical risks.

Hitachi Sustainability Report 2017

Contents

107

Introduction

Management Approach

Activities

Performance Data

Environment

Achieving a Low-Carbon Society
Hitachi’s Approach

Global Warming Prevention from Products
and Services

Achieving a low-carbon society is an urgent challenge

Key Indicators
Reduction in CO2 Emissions

Development Goals (SDGs) adopted by the United

Improved Environmental Performance in Products
and Services

Nations are “Goal 13: Take urgent action to combat

Hitachi is improving the environmental performance of its

climate change and its impacts” and “Goal 7: Ensure

products and services with the hope of contributing to theaccess to affordable, reliable, sustainable and modern

resolution of environmental challenges through the development

FY 2010 (base year)

FY 2016energy for all.”and popularization of products and services with high environ-CO2 emissions

CO2 emissions

Hitachi helps to achieve a low-carbon society in amental value. We strike a balance between improving functionality

Function size*1

great number of ways, both through its own operations

and reducing the environmental burden by using, as our index,

shared widely around the world. Among the Sustainable

and also by developing energy-saving products andthe reduction rate per product and service function of CO2

services. We manufacture a diverse range of products,

emissions during usage and of the volume of resources usedfrom power generation systems to railway carriages

during the life cycle. The group of products that demonstrate aand industrial equipment. We also advance technologi-

high level of potential in solving environmental issues are thecal innovations in building infrastructure worldwide bytargets of a plan to achieve a 40% reduction in CO2 emissions

combining our operational technology (OT) and IT.

by fiscal 2018 (compared to fiscal 2010 products). In fiscal 2016,

In order to achieve our long-term targets contained

we attained a 35% CO2 emissions reduction rate by promoting

in Hitachi Environmental Innovation 2050 and theenvironmentally conscious designs and expanding sales ofEnvironmental Action Plan for 2018, we will promote

products and services with high energy-saving functions.

medium- to long-term efforts to reduce greenhousegas emissions from our factories and offices, as well
as from our products and services.

From base year

35%
reduction

100%

Function size

*1 Major functions of products correlated to CO2 emissions.

65%

Hitachi Sustainability Report 2017

Contents

108

Introduction

Management Approach

Activities

Performance Data

Environment

Improvements in Environmental Performance
RS90 Series of Information and Control Servers (Hitachi, Ltd.)The RS90 series of information and control servers are real-time,

demand for fast test results has been increasing in recent

Disc Brake Pad (Hitachi Chemical Co., Ltd.)

years, and the 3100 was developed with the aim of achieving

Disc brake pads are built into the brakes of automobiles and

400 tests per hour, twice the throughput of a model wemotorcycles and bring vehicles to a stop by sandwiching thelaunched in 1995.

discs that rotate with the wheels from both sides. Generally

high-reliability information and control system platforms that play

The performance of our earlier products was examined,

an integral role in maintaining smooth operations of society’s

and a thoroughgoing review of the operating program of eachresistance and maintain the level of performance over longbasic infrastructure. These servers are used in such fields asmechanism was conducted. At the same time, the motor andperiods. Copper-containing dust powder is produced whenpower generation, water and sewer services, and rail transport.

other parts were optimized to ensure high performance evenbraking, however, which is thought to cause water pollution as

The use of high-performance processors has increased theunder short operating times. As a result, we achieved both thethe powder runs off the pavement into nearby streams andMIPS* value—a computer performance indicator—to twice

targeted throughput of 400 tests per hour and high analyticalrivers. To prevent this, a law to limit the copper content in discthat of our product launched in fiscal 2010. The servers also

performance. Power consumption associated with higher

brake pads will be implemented in the United States from 2021.

save energy due to their smaller size, fewer components, andspeeds and an increase in the number of component parts

By augmenting copper’s performance with various materials,

low-power-consuming parts, reducing annual energy consump-

was reduced both during operation and while in standby by

Hitachi Chemical has developed an environmentally responsivetion by 10,404 kWh. As a result, CO2 emissions per control

lowering the isolation transformer load through a rethinking ofdisc brake pad*1 that maintains abrasion resistance whileserver MIPS value have declined by 72.9%.

the AC power supply configuration and by switching to a DC

minimizing copper content. Consequently, we have been able topower source with good conversion efficiency. As a result,achieve both low environmental impact and high performance,

annual energy consumption was reduced by 169 kWh compared

reducing the average copper usage volume per disc brake padto the previous model. With these improvements, the automaticby 75.9% compared to fiscal 2010.

1*1 Million instructions per second: A value showing how many million instructions can be madein one second.

speaking, disc brake pads contain copper to increase abrasion

analyzer achieved a CO2 emissions reduction rate of 54.4%
per hour of processing capacity.

*1 Environmentally responsive disc brake pads are either copper-free or copper-less.

A rack-mountable RS90 series of information and control server.

3100 Clinical Analyzer (Hitachi High-Technologies
Corporation)
The 3100 clinical analyzer is an automated chemical analyzer
for the healthcare field used by hospitals to test patient specimens. With a footprint of just 0.59 m2, it requires very little
space and is suitable either as a main analyzer in clinics andsmall hospitals or a backup analyzer in large hospitals. The

3100 clinical analyzer.
Disc brake pads.

Hitachi Sustainability Report 2017109

Contents

Introduction

Management Approach

Activities

Performance Data

Environment

Addressing Our Carbon Footprint

Products authorized to display the CFP label in fiscal 2016

The carbon footprint of products (CFP) is the CO2 equivalent of
the total amount of greenhouse gases (GHGs) emitted over theentire life cycle of a product or service—from procurement of

Hitachi will ensure the environmental consciousness of its
Product

Midrange Storage

Model

Hitachi Virtual Storage Platform G800

materials through to disposal and recycling. Making the GHG
emission amount visible in this way encourages efforts to

products and services by conducting Environmentally Conscious
Design Assessments and implementing life cycle assessments(LCAs). In addition, by linking environmental values to the creation

Product appearance

and expansion of business opportunities, we will continue toreduce the amount of carbon emitted by products over theirdevelop products and services with high environmental perfor-

whole life cycle. A number of countries around the world use[Previous model]

the CFP approach.

Rate of reduction in CO2emissions (compared toprevious model)

Hitachi launched CFP assessment in 2009. We participate

Next Steps in Products and Services

mance that will prove to be an added value to our customers.

Hitachi Unified Storage VM–55%

in the Carbon Footprint Communication Program of the Japan

Global Warming Countermeasures at
Factories and Offices

and are working to expand the number of Approved CFP

Working with European Environmental Footprint
Initiatives

Promoting Global Warming Countermeasures

Products.* In fiscal 2016, our midrange storage system,

Europe’s Environmental Footprint initiatives develop method-

We are promoting ways to use energy more efficiently and

Hitachi Virtual Storage Platform G800, was verified andologies for measuring the entire life cycle environmental burden

reduce GHG emissions during production and transportation,

approved by the JEMAI CFP Program. In addition to visualizingof products and organizations in up to 16 areas. Pilot studies

in both the manufacturing and nonmanufacturing divisions, toCO2 emissions, we quantified the rate of CO2 emission reductions

were launched in November 2013 to establish assessment

contribute to the prevention of global warming.

per function* from previous models, publishing the quantitative

methods in multiple product and organization fields.

Environmental Management Association for Industry (JEMAI)12effect of their energy efficiency in our catalogs and on both

Hitachi, drawing on experience with Japan’s Carbon Footprint

Actions and Achievements

in-house and external websites. We are also working with

Communication Program and the knowledge gained from

We are working to reduce energy use per unit—an indicator of

JEMAI to raise the recognition of the CFP label and to promote

calculating and visualizing CO2 emissions in the IT product life

energy efficiency—by systematically improving efficiency, such

Approved CFP Products.

cycle, is participating in a European Environmental Footprint

as by installing high-efficiency equipment and devices, frompilot study in the IT equipment field, for which it serves as the

LED lighting to inverter air conditioners, at each facility. In fiscal

technical secretariat.

2016, we achieved an improvement of 12% (from a base year

*1 Approved CFP Product: A product subjected to testing according to the CFP quantification
rules of the Carbon Footprint Communication Program, is verified as conforming to thoserules, and for which an application is made for registration and public announcement.
*2 Specifically, the “life cycle GHG emissions per unit function size,” calculated by dividing the“life cycle GHG emissions per sales unit” by “function size of applicable product” asspecified by performance (or performance characteristic) and/or use period.

In fiscal 2016, we evaluated the environmental burden ofof fiscal 2005), against a target of 15%. Part of the reason for

IT products in accordance with the methods approved by the

not hitting the target was because of a decline in sales in

European Commission, using the Hitachi storage platform

energy intensive business divisions, which contracted theactually sold on the European market. We also disclosed anddenominator in calculating energy use per unit.

communicated the evaluation results to our customers. In conjunction, we held a consultation forum to hear the opinions ofstakeholders on evaluation and communication methodologies.
These were, in turn, subsequently reflected in actual methods.

Hitachi Sustainability Report 2017

110

Contents

Introduction

Management Approach

Activities

Performance Data

Environment

The increase in the total volume of CO2 emissions wasdue to the fact that a materials company in the Americas newly
became a member of the consolidated Hitachi Group in fiscal

Introducing Renewable Energy

CO2 Emissions

We are promoting the use of solar, wind, and other forms of(kt-CO2/year)
4,000

3,453

2016. There was a general decline in regions other than

3,845
3,355

3,311

renewable energy. During the 2016 fiscal year, Hitachi produced
2,925 MWh of renewable energy for its own use. Hitachi

3,085

3,000

the Americas.
We will continue to harness our expertise in control andComputer Products (America) proactively uses renewableenergy to power its factory, purchasing 8,769 MWh during

2,000

IT technologies to actively pursue energy conservation

fiscal 2016. In Japan, we contracted for 1,000 MWh/year of

measures at our factories and offices and promote the efficientuse of energy.

1,000Green Power through Japan Natural Energy Co., Ltd. to provide

0

2012

Japan

Rest of Asia

2013

2014

China

2015

2016

Americas

Europe(FY)

power for offices, showrooms, and exhibitions.

Key Indicators
Breakdown by Region (kt-CO2/year)
Reduction in Energy Use per Unit
EuropeAmericas
China
Rest of Asia
Japan
Total

From base year

12%
reduction
FY 2005 (base year)
Energy used 1.75 GL*

1

Activity amount*2

100%

Activity amount

2013
4
321
332
375
2,323
3,355

2014
8
358
305
423
2,217
3,311

2015
7
375
211
402
2,090
3,085

(FY)
2016
11
1,273 *1
166
384
2,011
3,845

*1 Includes 958 kt-CO2/year emitted by a materials company that became a consolidated

FY 2016
Energy used 1.95 GL

2012
4
316
315
381
2,437
3,453

88

%

*1 Energy volume used both in and outside the organization (SCOPE 1 and 2).
*2 A value closely related to the emission factor numerators (environmental burden) of energy
use from business activities (for example, production quantity, output, building floor space,and number of employees).

member of the Hitachi Group in fiscal 2016.
Notes:• The CO2 electrical power conversion factor uses the 2005 emission coefficients for individual
countries published by the International Energy Agency (IEA) in the 2010 edition of CO2
Emissions from Fuel Combustion.
• Energy-related CO2 emissions were 1,296 kt-CO2 (SCOPE 1) and 2,549 kt-CO2 (SCOPE 2).

Green Power logo for the Green Power Certification scheme.

Hitachi Sustainability Report 2017

Contents

111

Introduction

Management Approach

Activities

Performance Data

Environment

Reducing Transportation Energy Consumption

Next Steps for Factories and Offices

diagnostic systems, and CO2 emissions were reduced 18.6

Hitachi is working toward the reduction of energy output

In the Environmental Action Plan for 2018, we are pushingt-CO2 in fiscal 2016 (5.2% down from the previous year) withduring transportation as well as at business sites, and we haveahead to incorporate efficient energy use during the production

this modal shift.

established targets for the reduction of energy use per unit forstage. We will continue to run the PDCA cycle to achieveeach business unit and Group company. Business sites are

improvements.

promoting a modal shift to highly efficient transportation

In the future, to realize the low-carbon society called for inmethods, improving truck loading ratios and taking otherthe Hitachi Environmental Innovation 2050 long-term environ-measures to reduce transportation energy consumption, andmental targets, we will strive to reduce energy-derived CO2

switching to the use of eco-cars. CO2 emissions from transpor-and other GHG emissions by making full use of high efficiency

tation inside Japan for the Hitachi Group in fiscal 2016 were

products and low-carbon energies. Our energy usage efficiency

106 kt-CO2. In addition, the Healthcare Business Unit has

has improved by 7% since fiscal 2010. To achieve our long-term

promoted a modal shift in manufacturing precision medical

targets, we will continue to improve the efficiency of energy

equipment, enabling our CT systems and X-ray diagnostic

usage and reduce GHG emissions during the production stage.
Loading a CT system onto a railway container.

tools to earn the Ministry of Land, Infrastructure, Transport,
and Tourism’s Eco Rail Mark.*1*1 A mark conferred on products and businesses when a designated share of freight shipments
are made by rail transport, which has low CO2 emissions.

Reducing Transportation Energy Consumption
A Modal Shift in the Transport of Precision Medical
Equipment (Healthcare Business Unit, Hitachi, Ltd.)The Healthcare Business Unit is implementing a modal shift byusing railways to transport CT systems and X-ray diagnostic
systems of a size that fit in 12-foot railway containers. Thesesystems are one of the types of diagnostic imaging equipment
made at the Medical System Operations Group, Kashiwa.

About the Eco Rail Mark

Because these are precision machines used in providing
healthcare services, the quality of the transport was doubly
verified in advance. Great care is also needed in the handlingof these products, which are very heavy and have masseccentricity, and efficient transport has been achieved while
ensuring transport quality by sharing handling know-how andmodifying the pallets used with these products for containeruse. These efforts have resulted in the acquisition of Eco RailMark product certification for these CT systems and X-ray

Hitachi Sustainability Report 2017

Contents

112

Introduction

Management Approach

Activities

Performance Data

Environment

Achieving a Resource Efficient Society
Hitachi’s Approach
Creating higher economic value with fewer resources,
embracing production and consumption activities
that reduce the environmental burden, and achievinga resource efficient society and economy—these aims,
as the United Nations’ Sustainable Development Goals(SDGs) cite in “Goal 12: Ensure sustainable consumption and production patterns,” are directed at achievinga resource efficient society, an increasingly importantand shared concern of humankind. As a corporategroup with manufacturing and sales operations in locations around the world, Hitachi positions the achievement of a resource efficient society as an integral partof its Environmental Vision and is advancing efforts tomake efficient use of the Earth’s finite resources.
In keeping with our long-term Environmental
Innovation 2050, we recognize water resources to bea key environmental risk and seek to build a societythat uses water and other resources efficiently. We are
implementing a variety of initiatives, such as reducing
the volume of water used, making effective use of raw
materials, and making sure to promote the “three Rs”
of reduce, reuse, and recycle. We are making active
use of the technologies and expertise held by various
Group companies in advancing thoroughgoing waste
management, water and resource conservation during
production, and utilization of used and recycled components in IT equipment. The Hitachi Group as a wholewill continue to promote manufacturing approaches
that contribute to the achievement of a resource
efficient society.

Enhancing Efficiency of Water Usage

Water Usage(million m3/year)

Water Conservation
Hitachi uses water in such production processes as cleaning,cooling, and painting. To reduce water usage through greater
efficiency, we are enhancing our level of water management byinstalling flow meters at more locations, introducing wastewater
treatment devices to increase the use of recycled water, andupgrading water supply facilities at our business sites.
Different countries and regions are affected bywater-related issues in different ways, so we devise appropriate
counter­measures for each region. Our business sites in China,
India, and the Philippines, for example, are striving to reducethe volume of water used by strengthening measures against
water leakage.

In fiscal 2016, we set a target of a 23% reduction (over thebase year of fiscal 2005) for water usage per unit at our 204
global sites and achieved a 27% reduction.
Key Indicators

49.55

46.86

45

43.91

41.34

30
15
0
Japan

2012

2013

Rest of Asia

2014

China

2015

2016

Americas

Europe(FY)

Breakdown by Region (million m3/year)

EuropeAmericas
China
Rest of Asia
Japan
Total

Actions and Achievements

2012
0.03
3.15
2.85
3.85
46.64
56.52

2013
0.02
1.20
2.50
3.65
42.18
49.55

2014
0.02
0.98
2.32
3.85
39.69
46.86

2015
0.01
0.89
1.22
3.56
38.23
43.91

(FY)
2016
0.02
3.09 *1
1.51
4.00
32.72
41.34

*1 Includes 2.12 million m3/year used by a materials company that became a consolidated
member of the Hitachi Group in fiscal 2016.

Reduction in Water Usage per Unit

Next Steps to Improve Water Usage Efficiency

From base year

Hitachi has set a target of enhancing water usage efficiency infiscal 2050 by 50% compared to fiscal 2010. We will aim torealize a resource efficient society by maintaining appropriate
management of our business-related water usage and taking
measures to solve each region’s water-related issues, such as
by reducing water intake quantity and promoting the circulativeuse of water through the purification and reuse of wastewater.

27%
reduction
FY 2005 (base year)

FY 2016

Amount used 56.62 million m3

Amount used 41.34 million m3

Activity amount

56.52

60

100

%

Activity amount73%Hitachi Sustainability Report 2017

Contents

113

Introduction

Management Approach

Activities

Performance Data

Environment

Reducing Water Use Through Improved
Efficiency
 educing Water Use in the Manufacture of Hybrid Vehicle
R
Batteries (Hitachi Vehicle Energy, Ltd.)
Hitachi Vehicle Energy has reduced the amount of water usedin manufacturing lithium-ion batteries for hybrid vehicles bycirculating and reusing the pure water*1 utilized in rinsing.
Deionized water that has been used in the rinsing process ismixed with makeup water (deionized water) in a recirculation
tank, and then subjected to ultraviolet decomposition, filtering,and ion exchange. Through this cycle, it can be repeatedlyused as rinse water. As a result, industrial wastewater andwater usage have been slashed by more than 99%, comparedwith the amount used before the system was introduced.

 ixing Leaks to Reduce Water Usage at a WashingF
Machine Manufacturing Site (Shanghai Hitachi Household
Appliances Co., Ltd.)
Shanghai Hitachi Household Appliances produces about
1 million automatic washing machines each year and uses large
amounts of water in quality checks during acceptance tests.
To reduce the amount of water used, the company spent six
months conducting repeated surveys, checks, improvements,and verifications and located the places where water wasleaking through the monitoring of underground pipes and theinstallation of more meters. It implemented water-saving activities,
replacing leaking underground pipes and repairing and updating
air conditioning equipment. As a result, the company now uses
only half the water it did in the past. To prevent the recurrenceof water leaks, the pipe routing was changed so that pipes are
now above ground with fewer joints.

*1 Deionized water: Water from which the impurities have been removed using an ion
exchange resin, reverse osmosis membrane, distiller or other means.

WastewaterIon exchange

Rinsing process
in lithium-ion
battery
manufacture
Water used
for rinsing

Filtering
Ultraviolet decomposition

Recirculation tank

Makeup water(deionized water)

Recirculation System Flowchart for Pure Water Used in Rinsing

An automatic washing machine acceptance test.

Improving Efficiency in the Use of Resources
Promoting Product Collection and Recycling
In response to the 2001 Home Appliance Recycling Law,
Hitachi is taking part in a cooperative effort among fivecompanies*1 in the same industry to recycle air conditioners,
television sets, refrigerators, and washing machines at 19
recycling plants nationwide. In fiscal 2016, we recycled around59,000 metric tons of the roughly 66,000 tons of end-of-life
home appliances we collected.
Hitachi has built its own recycling network of 11 locationsin Japan providing services near our customers to collect andrecycle such end-of-life products as supercomputers,
mainframes, and other computing machines; communicationequipment like network devices and telephone switchboards;
and information equipment like ATMs.
In the United States, when a customer replaces alarge-capacity storage unit with a new model, part of theend-of-use device is cleaned and inspected and resold asa certified Hitachi product.
We collect automobile electric components from dealers
and repair shops, disassembling, checking, cleaning andrestoring, reassembling, and inspecting them so they can bereused as equipment featuring the same performance as
new products.
We are also promoting collection and recycling throughrecycling networks for medical equipment and such industrial
equipment as pumps, motors, distribution boards, transformers,
refrigeration equipment, and air conditioners.
*1 Hitachi Appliances, Inc.; Sharp Corp.; Sony Corp.; Fujitsu General Ltd.; andMitsubishi Electric Corp.

Hitachi Sustainability Report 2017

Contents

114

Introduction

Management Approach

Activities

Performance Data

Environment

the cross-border movement of hazardous waste materials.
We have established a target of raising the e-manifest*1
system registration rate to at least 90% by fiscal 2015. This
was achieved in fiscal 2014, and we continued with our efforts
in fiscal 2016.

Product Recycling Network
Hitachi Group Companies
Hitachi Group (Equity-method associates)
1 Home Appliance Recycling
2 IT Product Recycling*1 The e-manifest is a document that waste generators must issue when commissioning
a disposal company to handle waste disposal.

3 Industrial Equipment Recycling
4 Medical Equipment Recycling
5 Automobile Electric Equipment Reuse and Recycling

Waste Management System

Home Appliance Recycling Plants

Reducing Waste Volume
For fiscal 2016, we set a target of a 12% reduction (from abase year of fiscal 2005) for waste and valuables generated
per unit, bettering this by achieving a 13% reduction. Everybusiness site is reducing waste through on-site recycling of
byproducts and scrap from the production process and efforts
to curb use of packing materials during transport. Under the
Zero Emission initiative, which seeks to minimize landfill disposal,
98 business sites achieved their zero emission goal*1 as of
fiscal 2016.

Regional Business Partners

OfficeHokkaido Eco Recycle Systems*1 Defined as a final disposal rate (landfill disposal/waste and valuables) of less than 0.5% in
any given fiscal year.

1 2 3 4(Equity-method associate)
Hitachi Automotive Systems
Engineering 5
Hitachi Industrial Equipment
Nakajo Engineering 2 4
Kanto Eco Recycle 1
Hitachi Capital Services (Osaka) 3(Equity-method associate)

Intranet

Nichiwa Service(Ibaraki) 2 3Tokyo Eco Recycle
1 2 3 4

Hitachi CapitalServices (Tokyo) 3(Equity-method
associate)
Nichiwa Service(Kanagawa) 2

Using IT to Manage Waste
Hitachi has developed a waste management system aimed atmore efficient processes and reduced compliance risk. In Japan,
we visualize the generation and disposal of waste produced at
our factories, offices, and contract operations and manage
data on waste contractors so that we can keep accurate trackof our progress in waste recycling. In fiscal 2016, entries weremade to the system regarding waste generated at approximately
2,800 locations in Japan. This information is being put to use inmeasures to reduce waste volume, improve recycling rates, andenhance the management of waste contractors to counteract

E-manifest
Paper manifest

Internet

Zero Emission Sites

Key Indicators
Data link

Reduction in Waste and Valuables Generated per Unit
JWnet*1 e-manifest

Valuable materials

From base year

General waste
Disposal contractor

13Internet

Contract details
Hitachi Group
Environmental Data
Aggregation System%
reduction
Industrial waste
disposal company*1 JWnet: The Japan Waste Network is an electronic manifest system operated by the Japan
Industrial Waste Information Center under the auspices of Japan’s Ministry of the Environment.

FY 2005 (base year)
Amount generated 1,518 kt
Activity amountFY 2016100

Amount generated 1,336 kt%

Activity amount87%

Hitachi Sustainability Report 2017

Contents

115

Introduction

Management Approach

Activities

Performance Data

Environment

Efficient Use of Resources

Waste and Valuables Generated(kt/year)

1,500

 eusing and Recycling IT Products (Hitachi Computer
R
Products [America], Inc. and Hitachi Data Systems
International Distribution Center)

1,336

1,000

655

677

692

2012

2013

2014

618

500

0
Japan

Rest of Asia

China

2015

2016

Americas

Europe(FY)

Breakdown by Region (kt/year)

EuropeAmericas
China
Rest of Asia
Japan
Total

2012
1
58
38
80
478
655

2013
1
56
62
93
465
677

2014
2
67
54
106
463
692

2015
1
63
36
98
420
618

(FY)
2016
2
744 *1
48
107
435
1,336

Hitachi Computer Products (America) and Hitachi Data Systems
International Distribution Center manufacture and market massstorage systems for use in enterprise computer systems. Whencustomers exchange these systems for newer models, someof the IT equipment is cleaned, retested, and then reused as
products with a company warranty. Other, waste-boundproducts are recycled for their resources. In fiscal 2016 theproduct recycling volume was 412 metric tons.
These reuse and recycling efforts, together with thecompany’s environmental efforts overall, have been recognizedwith a Greenovation Award every year since 2011 from theNorman Chamber of Commerce in the company’s home city ofNorman, Oklahoma.

 eusing Automotive Electrical Components
R(Hitachi Automotive Systems Engineering, Ltd.)
Since 1994, Hitachi Automotive Systems Engineering has applied
the knowledge and understanding gained as a manufacturer of
automotive equipment to recycle automotive electrical component collected from dealers and repair shops. A technical system
to sort, disassemble, check and differentiate, clean and recondition, reassemble, and test is used to recycle about 60% of theelectrical components collected. These components are thensold as products that perform as well as new products. In fiscal
2016 the company received the Award of the Director-Generalof the Japanese Ministry of Economy, Trade, and Industry’s
Industrial Science and Technology Policy and Environment
Bureau (for Resources Recirculation Technologies and Systems)in recognition of these efforts over many years.
Automobile user

Collection

Hitachi Auto Parts &Service Co., Ltd.

Sale of recycled
components

Sales

Dealer, repair shop
Automobile repair*1 Includes 675 kt/year of a materials company that became a consolidated member of the
Hitachi Group in fiscal 2016.

Hitachi Automotive Systems, Ltd.

Next Steps in Improving Resource Efficiency

Hitachi Automotive Systems Engineering, Ltd.

Ship

Package

New parts

Test

Non-recyclable parts

Manufacturing
Reassemble

Recyclable parts

Clean & recondition

Check & differentiate

Hitachi Virtual Storage Platform G Series.

Disassemble

Sort

Hitachi upholds the goal of improving resource efficiency by
50% between fiscal 2010 and 2050. We aim to realize aresource efficient society through the implementation of suchconservation measures as using recycled materials in the
manufacturing process, reducing or recycling waste, andcollecting end-of-use products for recycling.

Hitachi Sustainability Report 2017

Contents

116

Introduction

Management Approach

Activities

Performance Data

Environment

 ecycling Rare Earths in Sludge Generated During
R
Magnet Manufacturing (Hitachi Metals, Ltd.)
Hitachi Metals’ Magnetic Materials Company manufactures therare earth magnets used in motors for automobiles, industrial
products, electrical machinery, electronic devices, and otherproducts that demand high efficiency and light weight. Whenrecycling the rare-earth-containing sludge*1 generated during
magnet production, the conventional process is to bury andtreat it as industrial waste without using the iron contained inresidue. There was also the problem of large amounts of acidand alkali required to treat the sludge for recycling.
Hitachi Metals developed a carbothermal reduction
method*2 in which sludge is taken as iron ore and enables
reuse not only of magnetic rare earth elements but also of ironas pig iron.*3 It also established a resource recycling processthat minimizes the use of acid and alkali. In recognition of these
efforts, Hitachi Metals received the Rare Metal Recycling Award
as part of the fiscal 2016 Awards for Resources Recirculation
Technologies and Systems.
*1 Sludge: A mud-like material that is a mix of water (grinding fluid) and processing waste
when magnets are processed.
*2 Carbothermal reduction method: A method of recovering rare earth elements as slag(a material that rises to the surface of sludge) by heating sludge as if it were iron ore
together with carbon.
*3 Pig iron: Iron removed from a blast furnace or electric furnace by reducing iron ore.

Slag with concentrated rare earths (left) and pig iron.

Pig iron (valuables)
Roasting

Carbothermal reduction

Solvent extraction

Deposition, firing Molten salt electrolysis

 urning Plastic and Paper Waste into High Calorie FuelT
(Nichiwa Service, Ltd.)
Nichiwa Service has developed shared services that consolidate
and standardize waste management for the Hitachi Group,
using certain plastic, paper, and wood materials that are
unsuitable for recycling as the raw material in manufacturingrefuse paper and plastic fuel (RPF), a high calorie solid fuel. As
an alternative to fossil fuels, RPF contributes to the preventionof global warming with the reduction of CO2 while also promisingsuch effects as extending the life of final disposal sites. In fiscal
2016, about 1,700 metric tons of waste material generated at
Hitachi Group business sites were made into RPF.

Solution
Pulverization
Sintering

SludgeProcessing

To recycling
Surface treatment

Rare earthmagnetmanufacturing
process

Flow of Recycling with the Carbothermal Reduction Method
An RPF manufacturing facility.

Hitachi Sustainability Report 2017

117

Contents

Introduction

Management Approach

Activities

Performance Data

Environment

Achieving a Harmonized Society with Nature
Hitachi’s Approach

Chemical Substances

Managing Chemical Substances in Our Products
To ensure compliance with Europe’s REACH*1 and other

The ecosystem furnishes humankind with a range ofManaging Chemical Substances

regulations, we continuously revise the list of chemical sub-benefits, not only supplying the natural resources

In fiscal 2005, Hitachi formulated the Regulations forstances in our products that are to be managed. In Octoberrequired for people’s food, clothing, and shelter andEnvironmental CSR-Compliant Monozukuri to manage the2015, we modified the list of Voluntarily Controlled Chemical

for economic activity but also reducing damage fromchemical substances contained in its products at all stages—

Substances so that 18 prohibited substances (Level 1) andnatural disasters and absorbing greenhouse gases.

from development and design, procurement, and production

27 controlled substances (Level 2) are now listed.

Human economic activity, though, is resulting in theto quality assurance and sales. With regard to chemical

consumption of natural resources at a faster pacesubstances used in our business operations, we manage risk

our new Environmental Vision, and in October 2016 we issued

than can be restored through nature’s recuperativeby assigning three ranks to the use of such substances:a revised edition. Furthermore, as a result of the amendment of

powers, and this is having a serious impact onprohibition, reduction, and control. We also reduce risk by

China’s RoHS*2 in July 2016, we conducted an explanatory

ecosystem services.

educating chemical substance handlers and managers on

meeting in China, and 37 employees from 10 business units

laws and regulations and on proper risk assessment.

and Group companies participated in the event.

Hitachi not only promotes ecosystem preservation

Hitachi reviewed its Green Procurement Guidelines to reflect

but also undertakes thoroughgoing management ofchemical substances that may affect the ecosystemand seeks to achieve a harmonized society with naturethat minimizes impact on natural capital. We havecreated an Ecosystem Preservation Activities Menu

*1 REACH: The European Union regulation on Registration, Evaluation, Authorization, andRestriction of Chemicals.
*2 China’s RoHS: The Administrative Measures for the Restriction of the Use of Hazardous
Substances in Electrical and Electronic Products, which is similar to Europe’s RoHS
directive, is China’s regulation to restrict the use of these substances in electrical andelectronic products.

covering the entire value chain to guide our preservation
initiatives and are promoting design and production
activities that reduce the burden on the ecosystemthroughout the product life cycle, in addition to carryingout environmental conservation activities as needed.
In managing chemical substances, we adhere to laws
and regulations in all countries and regions where we
do business, as well as establishing our own in-house
criteria to enable stringent and high-level management.
These efforts are aimed at minimizing the burden our
activities place on natural capital.

Hitachi Group’s Voluntarily Controlled Chemical Substances

Hitachi Sustainability Report 2017

Contents

118

Introduction

Management Approach

Activities

Performance Data

Environment

Working with the Supply Chain to Manage Chemical
Substances

Managing Chemical Substances in Our Business
Operations

Working closely with suppliers and customers, we gather andWe have been cutting emissions of chemical substances frommake available information on chemical substances across theour factories and other sites through stricter management,

supply chain via the Integrated Management System forsuch as by expanding the number and scope of controlled

Chemical Substances Contained in Products, which has beenchemical substances. Initiatives in fiscal 2016 to reduce emis-

in operation since fiscal 2005. As of March 31, 2017, chemicalsions of volatile organic compounds (VOCs) included switching

substance information for more than 1.31 million parts andfrom VOC-containing paints to water-soluble and powder

products was registered under this integrated management

paints as well as expanding their use, changing to material

system. In fiscal 2016, we upgraded our system to respond tocomponents that require no coating, and altering washing

the shared information transmission scheme (chemSHERPA)

processes. These efforts enabled us to successfully achieve

on chemical substances contained in products.

our targets. Information on our efforts has been translated into
English and Chinese and shared globally with Hitachi Group

Integrated Management System for Chemical Substances

members. We also monitor and manage emissions of sulfur

Contained in Products

oxides (SOx) and nitrogen oxides (NOx),*1 which are required

Suppliers
Environmental information
Survey/register

Registration database

Collection database

Manage amounts of designatedchemical substances in a product bymaterial and part

Manage total amounts of designatedchemical substances by productand business

Customer/society
Environmental information
disclosure

per Unit
From base year

34%
reduction
FY 2006 (base year)
Emissions 5,862 t

FY 2016

100

Activity amountEmissions 4,380 t
%

66

%

Activity amount

Reducing Atmospheric Emissions of Chemical Substances(t/year)
5,000

4,127

4,216

4,415

4,380
3,615

5,000

4,000

our business locations.

3,000

3,000

2,000

2,000

1,000

1,000

We comply with Japan’s Pollutant Release and Transfer
Register (PRTR) Law*2 through Group-wide monitoring of
public waters, removed outside our plants as waste, ordischarged into sewage systems, reporting the results to local
governments for each office or plant. Although some substances

0

2012

Japan

of all PRTR substances totaling 10 kilograms or more per year,
recognizing the need to control these substances as well.
*1 Emissions of SOx and NOx: Calculated by multiplying their concentration and exhaust
volume.
*2 PRTR Law: Act on Confirmation, etc. of Release Amounts of Specific Chemical Substancesin the Environment and Promotion of Improvements to the Management Thereof.

4,000

2013

2014

2015

2016＊1

Rest of Asia

China

Americas

Europe(FY)

0Breakdown by Region (t/year)

are exempt from reporting due to their small quantities, ourpolicy is to keep data on the handling, emission, and transfer

Communicate

Reduction in Atmospheric Emissions of Chemical Substances

to be measured under the laws and regulations applicable atchemical substances released into the atmosphere or into
Integrated Management System for Chemical Substances
Contained in Products

Key Indicators

EuropeAmericas

2012
6
53

2013
8
76

2014
12
66

2015
9
113

(FY)
2016 *1
57
187

China
Rest of Asia
Japan
Total

273
346
3,449
4,127

372
447
3,313
4,216

281
604
3,452
4,415

199
373
2,921
3,615

291
662
3,183
4,380

*1 In fiscal 2016, the scope of controlled chemical substances was expanded from 41 to
50 substances.
Note: A tmospheric emissions of VOCs and other chemical substances are calculated from thecontent rate included in the ingredients.

Hitachi Sustainability Report 2017

Contents

119

Introduction

Management Approach

Activities

Performance Data

Environment

The CEGNET Chemical Substance Management
SystemNext StepsTo ensure the proper management of chemical substances

continue our checks and preparations in the lead-up to theused in its business operations, Hitachi has operated a databasenext round of notification deadlines. As in fiscal 2016, we will

for chemical substance management called CEGNET sincecontinue our initiatives to reduce the release of regulated

1998 to keep track of the latest laws and regulations and thechemical substances.

Paint use

15.3

In connection with Europe’s REACH regulation, we will%
reductionfrom FY 2015

company’s own voluntary regulations.
CEGNET also collects and aggregates data on the amountof chemical substances handled, emitted, and transferred in

Reducing Chemical Substances in
Our Business Activities

our operations, helping to reduce the volume of chemicals that
we handle.

Promoting Paintless Parts by Switching to New Materials(Hitachi Appliances, Inc.)
Chemical Substance Management System (CEGNET)

Regulatory/voluntary
control information

New chemicalrisk searches

Chemical data

Network

Registration of amounts
handled/data collection

Hitachi Appliances’ Taga Works manufactures washingHigh gloss PP
BD-ST9800(2015 model)

BD-SV110A(2016 model)

machines, vacuum cleaners, microwave ovens, rice cookers,
and other home appliances; IH cooking heaters and other

Paintless Parts for the Design Elements ofall-electric appliances; and products in new environmental

Front Load Washing Machines

fields, such as LED lighting and residential photovoltaic power
generation systems.

Hitachi Group business sites

ABS*1 + paint*1 Acrylonitrile butadiene styrene.

The Taga Works is currently promoting paintless parts fordesign accents, such as by switching to high gloss polypropylene

Preserving Ecosystems(PP) for the design elements on its front load washing machines.

Managing Storage of Equipment Containing PCBs

This has reduced the amount of paint used in painting by

Corporate Relationship with Ecosystems

Equipment that uses polychlorinated biphenyls (PCBs) and15.3% (9.6 t/year) compared with fiscal 2015, contributing toCorporations depend on “ecosystem services,” including the

PCB waste materials are systematically disposed of within thea reduction in the release of chemical substances.

natural supply of materials like fibers and wood, and the ability

time limit established by the national government of Japan.

of ecosystems to maintain the quality and quantity of air, water,

The storage and disposal of PCBs within the Group are

and soil. Contributing to ecosystem preservation through bothmonitored every year to promote efficient disposal. In fiscal

business and social activities enables companies to continue

2016, disposal was completed for PCB waste materials stored

receiving these benefits and to restore ecosystems.

at 55 business sites.

Through its business activities, Hitachi is promoting designs
and production methods that reduce the impact on ecosystems
throughout the product life cycle. We are also increasing thenumber of products and services that directly help preserve

Hitachi Sustainability Report 2017

Contents

120

Introduction

Management Approach

Activities

Performance Data

Environment

ecosystems, such as water purification measures. We view

activities it plans to launch from the menu, and the totalchemical substance management as part of ecosystem

number of initiatives becomes Hitachi’s target for ecosystempreservation and continually ensure that it is carried out

preservation. In fiscal 2016, 144 new initiatives were launched,correctly. To contribute to society, we encourage employee

far in excess of our initial goal of 30.

volunteer programs, such as tree planting and ecological

Ecosystem Preservation Activities Menu
CategoryIn the long term, we seek to minimize the impact on natural

surveys of rare plants and animals, as well as other programs

capital and realize a harmonized society with nature bythat preserve ecosystems.

minimizing the burden (negative impact) on the ecosystemcaused by business activities and maximizing the positive

Businesssites

impact, such as by undertaking social contribution activities

Corporations and Ecosystems

to protect nature and providing products and services that
Ecosystem services
Ecosystems

Providing and regulating materials(fibers, wood, etc.) and water

preserve the ecosystem.
Corporations

Contributions through business
Reducing the burden on ecosystems
arising from corporate activities
Creating products and services
that preserve ecosystems
Contributing to society
through nature conservation
Production dependent on ecosystems
Minimizing negative impacts (reducing burden on ecosystems)
Expanding positive impacts (contributing to ecosystem preservation)

Initiatives to Preserve Ecosystems
In fiscal 2016 Hitachi created an Ecosystem Preservation
Activities Menu citing the specific activities to be undertaken to
promote the preservation of the ecosystem. We are encouraging
each business site to advance their own initiatives. This menu
was created by adding the pioneering activities of other corporations and organizations to the list of items that had alreadybeen subject to assessment since fiscal 2010. It consists of
116 items covering all aspects of our business operations,
including the value chain. Each business site selects those

Regarding impact and other ecosystem preservationassessments, we are deliberating the matter not only within theGroup but also through our participation in activities outside
the company, such as the biodiversity working group of fourJapanese electrical and electronic industry associations*1 andthe Japan Business Initiative for Biodiversity (JBIB).

Value
chain

*1 The Japan Electrical Manufacturers’ Association (JEMA), Japan Electronics and Information
Technology Industries Association (JEITA), Communications and Information Network
Association of Japan (CIAJ), and Japan Business Machine and Information System
Industries Association (JBMIA).

The Biodiversity Working Group

Activities Taken

Numberof Items

Production

Reducing use of resources that cannot
be reused

4

Transportation

Using packaging that takes ecosystem
into consideration

7

Collection, disposal,
Reducing hazardous materials in products
and recycling

2

Product planning,development,
and design

During R&D, estimating impact on biodiversity
during a product’s life cycle and implementing,if needed, mitigation measures

3

Site management

Using native species, setting up biotopes

17

Water use

Using rainwater1

Investment andacquisition

Confirming impact on biodiversity
when investing in or acquiring a business,and implementing measures to minimize
such impact

1

Market entry andexpansion

Including biodiversity as an investment
criterion

1

Businessdevelopment

Developing products and services to purify
water, air, and soil and expanding suchbusinesses

1

Procurement

Preferentially procuring paper and other officesupplies that take biodiversity into consideration

17

Transportation

Implementing ballast water measures during
marine transportation

2

Sales

Implementing sales expansion of productsthat take biodiversity into consideration

9

Collection, disposal,
Reusing and recycling components
and recycling

7

Entire value chain

Promoting the use of renewable energy

1

Engagement

Promoting employee activities outside
the company

3

Social contribution

Implementing desert greening andafforestation activities

12

Observing and collecting biota information(impact on ecosystem depending on intake
volume)14

Setting up biota management indicators andmaking observations (species and numbersof inhabiting organisms)

14

Community

Water use
Water intake
that takes
watershedecosystem into
Water discharge
consideration

Hitachi Sustainability Report 2017

Contents

121

Introduction

Management Approach

Activities

Performance Data

Environment

Next Steps
initiatives in accordance with the Ecosystem Preservation

Mangrove Seed Collection and Tree-Planting(Hitachi Terminals Mechatronics Philippines
Corporation)

Activities Menu and will continue to further promote ecosystem

In June 2016 Hitachi Terminals Mechatronics Philippines

preservation activities throughout the Group.

(HTMP) planted 883 seedlings grown from mangrove seeds

For fiscal 2017, we have set a target of implementing 150 new

collected in advance to protect and grow the mangroves

Ecosystem Preservation Activities

remaining in the Subic Bay special economic zone where its
factory is located.

Hitachi Group Forestation Activities

Mangrove forests are a valuable part of the natural ecosystemin the Philippines, but at the same time the mangrove ecosystem

Working together with employees and their families, the Hitachi

Yasato Forest (Hitachi High-Technologies Corporation)

Group participates in the Japanese Forestry Agency’s Corporate

Hitachi High-Technologies embarked on a 60-year plan inis fragile and requires protection. HTMP has conducted

Forest Program to preserve forests in several locations.

2005 to cultivate trees in the Hitachi High-Tech Yasato Forest

tree-planting activities for some time, but in fiscal 2016 itin the city of Ishioka in southern Ibaraki Prefecture. Employees

expanded its activities to collecting seeds from mangrove

and their families participate in the work of pruning and thinningplants and raising seedlings. HTMP will continue to be actively

to grow a healthy forest.

involved in ecosystem preservation.

Yuyu Forest (Hitachi Power Solutions Co., Ltd.)
Hitachi Power Solutions has been conducting tree-planting
activities since 2007 in the Yuyu Forest in the city of Takahagi• Tree-planting area: 2.32 ha

in northern Ibaraki Prefecture. Each year employees and their• Number of trees planted: 5,600

families gather to plant trees, clear underbrush, prune, and• Total number of participants: 1,387

perform other forest maintenance activities under the guidanceof the Ibaraki District Forest Office and Takahagi’s forestry
cooperative. These events also include environmental education,
handicraft classes using pruned materials, and other activities
that employees’ families can enjoy together as they create
healthy forests.
• Tree-planting area: 10 ha• Number of trees planted: 31,510• Total number of participants: 2,016

Collecting seeds from mangrove plants.

Hitachi Sustainability Report 2017122

Contents

Introduction

Management Approach

Activities

Performance Data
Performance Data

Performance Data
Key Indicators

122
123–124

Overview of Financial Results, Board Members,
and Employee Data

125–127

Main Assessments and Awards

128–129

Independent Assurance

130

Hitachi Sustainability Report 2017

Contents

123

Introduction

Management Approach

Activities

Performance Data
Key Indicators

Key Indicators

The Key Indicators of Hitachi’s CSR activities are listed below. Comparative tables with the GRI Standards Content Index, as well as our Policy, Vision, and Guidelines, are only available
on our website.
Comparative Tables with GRI Standards Content Index
Policy, Vision, and Guidelines

Recognition of Social Responsibility

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

3.8
57

3.7
59

3.4
59

3.3
59

3.5
57

Realizing Sustainable, Innovative Management
Ratio of R&D expenditure to revenue (%)
Patent application ratio outside Japan (%)

Scope of Data
Hitachi, Ltd. and consolidated subsidiaries (including variable interest entities).
Number of companies: FY 2012: 964; FY 2013: 948; FY 2014: 996; FY 2015: 1,057; FY 2016: 865.

Labor Practices

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

84:16
—
2.02

83:17
3,415
5.6%
2.02

84:16
3,670
6.0%
2.03

84:16
3,727
6.4%
2.08

83:17
3,365
6.3%
2.15

0.14
0.19

0.10
0.14

0.09
0.27

0.07
0.22

0.18
0.18

257
1,202

340
747

446
720

509
674

638
382

Promoting Diversity and Inclusion
Ratio of male and female employees*1 (%)
Global number and ratio of female managers
Employment ratio of people with disabilities*1 (%)
Promoting Occupational Health and Safety*2
Occupational accident rate*1
Occupational accident rate*3
A Strategy for Growing Together with Our Global Human Capital
Number of non-Japanese employees*4
Number of young employees participating in training outside Japan*5

Scope of Data
*1 Hitachi, Ltd.
*2 January to December each year.
*3 175 Hitachi Group companies in Japan including Hitachi, Ltd. for 2012; 195 Hitachi Group companies in Japan including Hitachi, Ltd. for 2013;251 Hitachi Group companies in Japan including Hitachi, Ltd. for 2014; 240 Hitachi Group companies in Japan including Hitachi, Ltd. for 2015;
200 Hitachi Group companies in Japan including Hitachi, Ltd. for 2016.
*4 Full-time, regular employees at Hitachi, Ltd. as of the end of each fiscal year.
*5 Hitachi, Ltd. and Group companies in Japan.

Hitachi Sustainability Report 2017

Contents

124

Introduction

Management Approach

Activities

Performance Data
Key Indicators

Environment

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

—
3,453
655
56.52
4,127

—
3,355
677
49.55
4,216

—
3,311
692
46.86
4,415

—
3,085
618
43.91
3,615

   35
3,845*2
1,336*2
41.34*2
4,380*2 *3

Reducing the Environmental Burden of Our Business Operations
Rate of reduction in CO2 emissions from use of products and services (base: FY 2010)*1 (%)
CO2 emissions from factories and offices (kt-CO2)
Waste and valuables generation (kt)
Water use (million m3)
Atmospheric emissions of chemical substances (t)Scope of Data
Hitachi, Ltd. and consolidated subsidiaries.
Number of companies: FY 2012: 964; FY 2013: 948; FY 2014: 996; FY 2015: 1,057; FY 2016: 865.
Environmental performance data associated with Hitachi’s business operations: Hitachi Group companies whose environmental load comprises
90% of the total (based on Hitachi calculations); data for each fiscal year indicates performance within the given scope for the fiscal year.
*1 New indicator established in fiscal 2016.
*2 Fiscal 2016 figure includes a materials company that became a consolidated member of the Hitachi Group that year.
*3 In fiscal 2016, the scope of controlled chemical substances was expanded from 41 to 50 substances.

Fair Operating Practices

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

98
12

100
16

200
20

218
20

316
20

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

—
3,284

1,806
3,076

1,218
2,327

889
2,057

527
1,953

Engaging in Responsible Procurement
Number of CSR monitoring (self-checks)
Number of audits by external auditing organizations

Community Involvement and Development
Promoting Sustainable Community Involvement and Development
Funding for social contribution activities (million yen)*1
Funding for social contribution activities (million yen)*2

Scope of Data
*1 Hitachi, Ltd. and the Hitachi Global Foundation in Japan.
*2 Through to fiscal 2014: Hitachi, Ltd. and 136 Group companies (including equity-method associates and joint ventures) and five foundations inJapan, 199 companies outside Japan; for fiscal 2015: Hitachi, Ltd. and 136 Group companies (including equity-method associates and joint
ventures) and the Hitachi Global Foundation in Japan, 244 companies outside Japan; for fiscal 2016: Hitachi, Ltd. and 134 Group companies
and the Hitachi Global Foundation in Japan, 159 companies outside Japan.

Hitachi Sustainability Report 2017

Contents

125

Introduction

Management Approach

Activities

Performance Data
Overview of Financial Results,
Board Members, and Employee Data

Overview of Financial Results, Board Members, and Employee Data
An overview of the consolidated financial results, board members, and employee data is listed below. Most data are Hitachi, Ltd. figures.

Financial Results (Consolidated IFRS)(billion yen)
FY 2014

FY 2015

FY 2016

9,774.9
641.3
534.0
518.9
217.4
374.3
335.5

10,034.3
634.8
531.0
517.0
172.1
528.5
333.7

9,162.2
587.3
475.1
469.0
231.2
377.5
323.9

Male

FemaleJapan

Outside Japan

11
35

2
0

8
33

5
2

Revenue
Adjusted operating income
EBIT*1
Income from continuing operations, before income taxes
Net income attributable to Hitachi, Ltd. stockholders
Capital investment (completion basis)
R&D expenditure*1 EBIT: Income from continuing operations before income tax, less interest income, plus interest charges.

Board Members

Gender
Total

Directors*1
Executive officers*1*1 As of June 2017.
*2 Including nine independent outside directors (four from Japan and five from outside Japan).

13*2
35

Nationality

Hitachi Sustainability Report 2017

Contents

126

Introduction

Management Approach

Activities

Performance Data
Overview of Financial Results,
Board Members, and Employee Data

Composition of Employees
Number of employees*1
MaleFemaleRatio of female employees (%)
Average age (years)
Male
FemaleAverage service (years)
Male
FemaleNumber and ratio of female managers*2
General manager or above
Section chief
Employment ratio of people with disabilities (%)*3

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

33,66528,437
5,228
16.0
40.2
40.8
37.1
18.0
18.7
14.5
401
3.5%
68
2.3%
333
4.0%
2.02

33,50028,273
5,227
16.6
40.7
41.3
37.6
18.3
19.0
15.0
418
3.8%
77
2.7%
341
4.3%
2.02

31,37526,428
4,947
16.3
41.0
41.6
38.0
18.4
19.0
15.4
434
3.7%
87
2.8%
347
4.1%
2.03

37,35331,536
5,817
16.5
41.2
41.7
38.4
18.4
19.0
15.6
474
4.0%
104
3.2%
370
4.3%
2.08

35,631
29,921
5,710
16.8
41.4
42.0
38.6
18.6
19.2
15.7
509
4.1%
113
3.3%
396
4.4%
2.11

*1 Includes nonregular employees.
*2 Full-time, regular employees only. See Key Indicators for Group global figures.
*3 Data compiled in June of each fiscal year.

Hiring Ratios

April 2013

April 2014

April 2015

April 2016

July 2017

Ratio of new female graduates hired*1 (%)

18.0

19.4

21.7

22.8

26.3

Technical
Administrative

11.6
43.4

14.7
43.4

18.3
41.0

17.3
45.5

20.8
42.1

*1 Graduates from universities or colleges (including postgraduate schools and technical colleges).

Hitachi Sustainability Report 2017

Contents

127

Introduction

Management Approach

Activities

Performance Data
Overview of Financial Results,
Board Members, and Employee Data

Number of Employees Using Work-Life Balance Support Systems

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

525
245

539
238

508
236

524
307

664
352

617
8

683
5

663
4

668
3

813
2

10
7

8
12

8
9

8
9

7
8

7
3

4
2

7
3

9
3

9
3

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

Average number of days

15.3

15.5

15.4

15.6

16.3

Ratio (%)
Average overtime hours/monthOccupational health and safety
Number of fatal accidents

64.0
14.1

64.7
13.5

64.3
12.2

65.3
11.9

68.1
12.8

3

1

1

2

1

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

34
2,479

43
2,744

39
2,344

38
2,166

793*1
32,419*2

Number of employees taking maternity/paternity leave
FemaleMale
Number of employees using shorter working hours for child care
FemaleMale
Number of employees taking nursing-care leave
FemaleMale
Number of employees using shorter working hours for nursing care
FemaleMaleWorking Conditions
Paid leave

Social Contribution Activities
Social contribution activities
Number of voluntary social contribution programs
Participants in voluntary social contribution programs*1 The scope of these programs was changed in fiscal 2016 to include all activities reported in the survey of social contribution activities across the Hitachi Group. In addition to self-organized programs, this figure includes monetary donations, participation and dispatch of employees to take part in
activities, and the opening of Hitachi facilities for use in relevant activities, each of which was counted one time for inclusion.
*2 The number of participants in activities specified in note *1 above.

Hitachi Sustainability Report 2017128

Contents

Introduction

Management Approach

Activities

Performance Data
Main Assessments and Awards

Main Assessments and Awards

Hitachi actively pursues a range of CSR activities aimed at developing a more sustainable society. These activities have earned the Hitachi Group high marks from numerous
external organizations.

Actively Responding to ESG Assessments
The Hitachi Group welcomes external assessments as a target

Institution

Index

Companies selected

RobecoSAM

Dow Jones Sustainability
World Index

Hitachi, Ltd.

On March 23, 2017, Hitachi, Ltd. was selected as a 2017

Dow Jones Sustainability Asia
Pacific Index

Hitachi, Ltd., Hitachi ChemicalCo., Ltd.

Nadeshiko Brand—the fourth year in a row the company

FTSE4Good Index Series

Hitachi Chemical Co., Ltd.,
Hitachi Construction Machinery Co.,
Ltd., Hitachi High-Technologies
Corporation

FTSE Blossom Japan Index

Hitachi Metals, Ltd., Hitachi
High-Technologies Corporation,
Hitachi Chemical Co., Ltd., Hitachi
Construction Machinery Co., Ltd.

for ESG* and sustainability-oriented investment. For eight1

years in a row since fiscal 2009, the Dow Jones Sustainability
World Index (DJSI World),* a leading global sustainability

FTSE Group2

investment index, has listed Hitachi, Ltd. as a component
stock. RobecoSAM, which handles survey and analysis for the
DJSI listings, gave its Bronze Class designation to Hitachi, Ltd.
in its 2015, 2016, and 2017 CSR rankings.

Morningstar

SRI Index

Three Group companies (Hitachi Chemical, Hitachi
Construction Machinery, and Hitachi High-Technologies) wereselected for the FTSE4Good Index Series.*3 Hitachi Chemical,
Hitachi Construction Machinery, Hitachi Metals, and Hitachi
High-Technologies were chosen for the Morningstar SRI
Index,*4 with the Group performing well overall in these external
assessments. Hitachi Chemical was also selected for the MSCI
Global Sustainability Indexes.*5

Nadeshiko Brand Designation

Results of ESG Analysis in Fiscal 2016

MSCI

Hitachi Chemical Co., Ltd., Hitachi
Construction Machinery Co., Ltd.,
Hitachi Metals, Ltd., Hitachi
High-Technologies Corporation

MSCI Global Sustainability
Indexes

Hitachi Chemical Co., Ltd.

MSCI Japan ESG SelectLeaders Index

Hitachi, Ltd., Hitachi Chemical Co.,
Ltd., Hitachi Metals, Ltd., Hitachi
High-Technologies Corporation

MSCI Japan Empowering
Women Index (WIN)

Hitachi, Ltd., Hitachi Chemical Co.,
Ltd., Hitachi Metals, Ltd., Hitachi
High-Technologies Corporation

received the honor. Hitachi was recognized for its management
strategy promoting diversity and for promoting innovation by
drawing on its diverse human capital.
Since fiscal 2012, the Ministry of Economy, Trade, andIndustry (METI) and the Tokyo Stock Exchange (TSE) havejointly selected, on an industry basis, enterprises that areconsidered to encourage women to play active roles in theworkplace from among the approximately 3,500 companies
listed on the first section of the TSE, the TSE second section,
the Mothers index, and JASDAQ. Companies are assessed on
two factors: providing career support for women and supporting
women in balancing work and life. Of the top scoring companies,
those also meeting return on equity requirements receive
the Nadeshiko Brand designation. Hitachi, Ltd. was one of
47 enterprises in this round of selections.

*1 ESG stands for “environment,” “social,” and “governance”—key factors in promotingsocially responsible investment.
*2 DJSI: A family of ESG indexes developed by Dow Jones & Company (USA) and RobecoSAM(Switzerland) that includes global and regional indexes with specific compositions. DJSIWorld, for example, selects on a global basis, while the DJSI Asia Pacific Index covers
Japan, Asia, and Australia.
*3 FTSE4Good Index Series: One of the indexes calculated by the London Stock Exchange—
owned FTSE Group that selects component stocks based on their ESG performance,
specifically, environmental management, climate change mitigation, human rights andworkers’ rights, supply chain labor standards, and bribery and corruption prevention.
*4 Morningstar SRI Index: An ESG index for Japanese stocks developed by Morningstar
Japan K.K. with the Center for Public Resources Development.
*5 MSCI Global Sustainability Indexes: A family of indexes developed by US-based
Morgan Stanley Capital International comprising companies with high ESG ratings relative
to sector peers.

Hitachi Sustainability Report 2017

Contents

129

Introduction

Management Approach

Activities

Performance Data
Main Assessments and Awards

Diversity Management Selection 100

Kurumin Certification

into three classes according to the number of standards theyclear; Hitachi, Ltd. was awarded class 2.*2

On March 22, 2013, Japan’s Ministry of Economy, Trade,

Kurumin certification is granted under Japan’s 2005 Act on

and Industry (METI) held a ceremony to celebrate Diversity

Advancement of Measures to Support Raising Next-Generation

Management Selection 100. Hitachi, Ltd. was one of 43 com-

Children to companies that create action plans for child-carepanies receiving awards in Japan. The Diversity Management

support in line with this legislation and that meet performance

Selection 100 system chooses and recognizes companies that

requirements.

achieve high results in such areas as improving innovation and

In February 2011, Hitachi, Ltd. acquired this certification*1

productivity by using the talents of diverse employees, including

in recognition of its achievements in developing and imple-

women, different nationalities, older employees, and people

menting action plans supporting child care so that employeeswith disabilities. Hitachi was lauded for going beyond simply

can work with the peace of mind that comes from a good

introducing diversity programs to promote diversity manage-

work-life balance.

ment Group-wide as a corporate strategy backed by strong
management commitment.
On March 18, 2015, Hitachi Group companies Hitachi
Transport System and Hitachi Solutions were chosen for the
METI Diversity Management Selection 100.

*1 Hitachi Group companies receiving Kurumin certification are:Hitachi Construction Machinery Co., Ltd., Hitachi Kokusai
Electric Inc., Hitachi High-Technologies Corporation, Clarion
Co., Ltd., Hitachi Urban Investment, Ltd., Hitachi Systems
Ltd., Hitachi Solutions, Ltd., Hitachi SC, Ltd., Hitachi Solutions
East Japan, Ltd., Hitachi INS Software, Ltd., Hitachi Government& Public Sector Systems, Ltd., Hitachi Architects & Engineers
Co., Ltd, Hitachi Mito Engineering Co., Ltd., Mito Engineering
Service Co., Ltd., and Okinawa Hitachi Network Systems, Ltd.

Eruboshi Certification
The Eruboshi mark is conferred on companies that havesubmitted action plans under the Act on Promotion of
Women’s Participation and Advancement in the Workplace(which came into effect on April 1, 2016) and are implementing
exceptional measures.
On February 28, 2017, Hitachi, Ltd. was awarded Eruboshi
certification for promoting diversity as an important componentof its management strategy and for creating work environments
enabling its diverse human capital to play an active role.
Companies are assessed in five categories*1 and are grouped*1 The five assessment categories are (1) recruitment, (2) years ofcontinuous employment, (3) workstyles, including working
hours, (4) percentage in management positions, and (5)diversity of career choices.
*2 Other Hitachi Group companies earning Eruboshi certification
are: Clarion Co., Ltd. (class 3); Hitachi Systems Ltd. (class 3);
Hitachi Solutions, Ltd. (class 3); Hitachi Chemical Co., Ltd.
(class 2); Hitachi High-Technologies Corporation (class 2); andHitachi Solutions East Japan, Ltd. (class 2).

Hitachi Sustainability Report 2017

Contents

130

Introduction

Hitachi Sustainability Report 2017, we have received
independent assurance of key environmental and social
performance indicators by KPMG AZSA Sustainability
Co., Ltd. The indicators that were assured are marked
with a.

The standards, guidelines, and calculation methods
used in collecting environmental data are posted on
our website.
Calculation Methods for Environmental Load Data

Activities

Performance Data
Independent Assurance

Independent Assurance
To enhance the reliability of the data disclosed in theManagement Approach

Third-Party Assurance ReportInquiries

CSR and Environmental Strategy Division
1-6-6 Marunouchi, Chiyoda-ku, Tokyo 100-8280, Japan
Tel: +81-3-4235-5800 Fax: +81-3-4235-5835
www.hitachi.com/csr/