Hitachi Group
Corporate Social Responsibility Report 2009 Digest

CSR Activity Reporting Policy

Reports on material issues

Reports on detailed activities

Latest information

This booklet
Hitachi Group
Corporate Social Responsibility
Report 2009 Digest

bookletPDF
Hitachi Group
Corporate Social
Responsibility
Report 2009

On Hitachi, Ltd. Web site

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

Hitachi Group
Environmental
Sustainability
Report 2009

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

Information about the Hitachi Group’s CSR activities is available in two formats: this booklet, Hitachi Group
Corporate Social Responsibility Report 2009 Digest, and Hitachi Group Corporate Social Responsibility Report
2009, a PDF version that can be accessed on the Web. This digest focuses on reporting areas of CSR activity
that the Hitachi Group has particularly emphasized. In response to requests from stakeholders who are especiallyinterested in the environmental field, we will publish a new booklet, the Hitachi Group Environmental Sustainability
Report from 2009, providing detailed environmental transparency and information (scheduled to be published at
the end of July 2009). In addition to the online publication of these two booklets (Hitachi Group Corporate Social
Responsibility Report 2009 Digest and Hitachi Group Environmental Sustainability Report 2009), we will reportfurther details and the latest information on CSR activities and environmental activities on our Web site.
Related Reports
We report on the financial performance of Hitachi, Ltd. in the “Financial Highlights” and Annual Report. Researchand development and intellectual property (intellectual property rights and brands), which are major aspects ofthe technology management of Hitachi, Ltd. and its major subsidiaries, are covered in the R&D and Intellectual
Property Report.

Period:Companies:
Scope of data:
Financial data

The main period covered is fiscal 2008 (April 1, 2008 through March 31, 2009)
Companies covered under consolidated reporting of the Hitachi Group

Hitachi, Ltd. and 944 consolidated subsidiaries (including modified entities to which theequity method of consolidated reporting applies) and 166 affiliated companies that use theequity method
Social data
Scope of data indicated under each item
Environmental data Hitachi, Ltd. and 241 consolidated subsidiaries (including companies outside Japan)(accounting for 90% of the environmental load of the Hitachi Group for the amount ofelectricity used and wastes generated)

Guidelines Referred to in Preparing This Report“Environmental Reporting Guidelines” (FY 2007 version), Ministry of the Environment, Japan“Environmental Reporting Guidelines 2001—With Focus on Stakeholders,” Ministry of Economy, Trade andIndustry, JapanGRI Sustainability Reporting Guidelines 2006, Global Reporting Initiative*This CSR report is published on an annual basis.

Contents
2

commitment Message from the CEO

4vision Hitachi's CSR Vision

Highlights 2009 Toward a Sustainable Society
6

Hitachi’s Environmental Vision
Global Warming Prevention toward 2025

8

Hitachi’s Environmental Technologies 1

Securing a Stable Electric Power Supply andReducing CO2 Emissions
10

Hitachi’s Environmental Technologies 2

Contributing to Water Treatment Operations
12

Environmental Management in Monozukuri

14

Environmental Activity Topics

16

Extending Our Collaborative Projects Overseas

Hitachi’s CSR Management
18

CSR Promotion Activities
Striving to Be a Global Leader in CSR / Self-Assessment of CSR Activities / European
CSR Project21

Respect for Human Rights
Human Rights Policy / Raising Awareness of Human Rights / Hitachi and the UN Global
Compact

22

Compliance and Risk Management
Risk Management / Global Push to Stop Corruption / Preventing Recurrences ofAntimonopoly Law Violations / Table Top Exercise to Prepare for Large-Scale Disaster

Hitachi: Living Together with Society
Items Included Only in the Hitachi Group
Corporate Social Responsibility Report 2009 (PDF)
The following items can be viewed on the Web site:
http://www.hitachi.com/csr/download/

24

Ensuring Product and Service Quality / Building Customer Feedback into Our Products/ Universal Design

26Compliance and Risk Management
Scope of Action regarding Corporate Ethics and Compliancewith Laws and Regulations / Compliance Reporting System/ Protecting Personal Information and Information Security /Export Control / Attaching Importance to Intellectual Property /Business Continuity Plan (BCP)

Communication with Shareholders and Investors
Policy on Information Disclosure / Proactive IR Approach /General Meeting of Shareholders / Basic Policy for Preventionof Takeovers / SRI Assessments in Fiscal 2008

Working in Harmony with Local Communities
Six Foundations Promote Diverse Activities / Support for
Volunteer Activities / Other CSR Activities of the Hitachi Group

Working in Harmony with Local Communities
Finding Solutions for Social Issues / Educational, Environmental, and Social Welfare
Activities

Corporate Governance
Strengthening Governance / Internal Control / Group Management

Improving Monozukuri and Service

28

Employees: The Key to Hitachi’s Future
Diversity: A Base for the Healthy Expression of Individuality / Promoting Employment for
the Physically and Mentally Disabled / Fostering Women’s Leadership / Employment

30

A Safe, Pleasant Workplace
Employee Health and Safety / Safety Policies of Hitachi Global Storage Technologies /Ensuring Better Work Hours / Training for Strengthening Communication Skills

31

Collaborative Creation with Suppliers
Formulation of Supplier Guidelines / Working with Suppliers to Promote CSR Activities

32

Company Profile
Economic Performance
Major Fields of Business and Products

Employees: The Key to Hitachi’s Future
Creating a Work-Friendly Corporate Culture / Openness:
Promotes the Expression of Employees’ Full Potential /Challenge: Supports Growth / Ensuring Enriched Lives for
Employees and Their Families

Collaborative Creation with Suppliers
Sharing CSR Awareness / Promoting the Use of Environment
Management Systems by Suppliers / Partnerships / Improving
Supplier Relations with an Open-Door Policy

Comparative Table with GRI Guidelines

Symbol Marks Used in This Booklet†: Technical terms, proper nouns, etc., in the text requiring explanation.
* : Additional explanation of terms, etc., in tables or diagrams.
: Full texts of policies or guidelines, details of activities, numerical data, etc., areincluded in the Hitachi Group Corporate Social Responsibility Report 2009 (PDF).
: Indicates the title and URL of the Web page related to the article.
All pages can be accessed from http://www.hitachi.com/csr/

commitment | Message from the CEO

Remaining True to Hitachi’s Founding Spirit,
the Hitachi Group Will Enter the Next Era
through Communication with Society

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

2

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

commitment

Message from the CEO
http://www.hitachi.com/csr/

Using Hitachi’s Strengths
to Pursue Social Innovation Businessestion and telecommunications systems with our power andelectrical systems. We are working on several projects thatcombine the very latest technologies in information andfamiliar with local conditions. In February of this year, we
became a participant in the UN Global Compact, whose
Ten Principles (including respect for human rights) weview as highly significant for globalizing our operations.
The third area involves expanding our environmental
business activities. We are accelerating research and development programs centered on nuclear power generation,
high-efficiency coal-fired power generation, environmentally friendly data centers, and lithium-ion batteries,
among other programs.
Working under the constraint of a limited global
environment, and setting our sights on the sustainable
development of society, we can create new value that has notexisted before. Through our social innovation businesses,
we are committed to contributing to happiness tomorrow.

telecommunications systems with the social infrastructure, including smart grids, smart transportation, smart
logistics, and cloud computing for business applications.

I believe this is our mission, and that an approach such as
this will satisfy the demands of all stakeholders.
July 2009

To overcome the current economic crisis, we are reforming the business structure of the Hitachi Group as a whole.
Our strengths lie in two broad fields: social infrastructuresuch as power and industrial systems, and informationand telecommunications systems, including financial systems and communications networks. By combining these
two fields, we will dedicate the majority of our operating
resources to “social innovation businesses.”Three areas in particular are important for improving
our profit structure. The first is the fusion of our informa-

The second area involves our transformation intoa truly global corporation. This means connecting withlocal partners throughout the world and localizing ouroperations by employing people who are intimately

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

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

commitment

Message from the CEO
http://www.hitachi.com/csr/

3

vision | Hitachi’s CSR Vision

Creating a Sustainable World through Innovation:
Hitachi Is Tackling the Basic Issues
Faced by Global Society

Exchanging Views on CSR and Corporate Management with BSR’s* President
Global CSR management from a long-term perspective is more important
than ever amid these challenging worldwide economic conditions

Aron Cramer
President and CEO,Business for Social Responsibility (BSR)

Taking the leadwith CSR
at the core ofcorporate management
Furukawa: Since Hitachi was founded, we
have pursued CSR according to our corporate credo of contributing to society throughbusiness, but initially we did not do much topromote a greater awareness of CSR in society at large. With the progress of globalizationin recent years, I feel it has become important
to conduct CSR activities not just by reflecting
Japanese values but by positively incorporating a more global perspective.
Cramer: With the advance of globalization,transparency is expected of businesses
worldwide, and as the points of connection
between business and society change, many
companies have begun doing business with
CSR at the core of corporate management.

4

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

visionFurukawa: I think CSR is essentially a balance
between sustainable development, the environment, and human welfare. While worldwide
concern was focused on the environment, theglobal economy faced an unprecedented crisis beginning in fiscal 2008. This is exactly thetime when companies must reconsider CSR
from a long-term perspective.
Cramer: I completely agree. The businessenvironment is becoming more challenging
worldwide and the balance of power among
countries and regions is changing. At a time
like this, we need to look at longer term trends
and reconsider what kind of value CSR brings
to a company. In this context, CSR can add
significant value if integrated fully into business strategy.
Furukawa: At the same time, at Hitachi we
continue to have strong concerns abouthuman rights, and we are tackling theseissues, but different countries or regions
approach this in different ways. I feel that weneed a global perspective that goes beyond
national borders.
Cramer: Yes, human rights are becoming afundamental issue for companies. The challenge ahead is for companies to decide how
they should be incorporated into basic CSR
concepts, and how they can be applied within
business operations globally. A thorough andsuccessful approach to CSR depends on
this.
Furukawa: We have to recognize the differences fi rst, and then the new steps that are
required will become apparent. On my business trips overseas, I have talked with people
working in Hitachi’s local offi ces. To my surprise, they include people my age who havejust started working. I don’t think we can solve
problems by simply imposing our way of thinking on them unilaterally.

Hitachi’s CSR Vision
http://www.hitachi.com/csr/

Kazuo Furukawa
Senior Corporate Adviser,
Hitachi, Ltd.

Crucial balance:sustainable development,
the environment,
and human welfare
Cramer: On the other hand, there are many
global companies that are interested in making sure that they apply consistent policies
and values worldwide.
Furukawa: At Hitachi too, we strive to sharecommon ideals and values globally. Our aim
is to be a company whose CSR activities arerecognized throughout the world. We hope
you will continue to give us various advice andsupport from a global perspective.
December 2008

*Business for Social Responsibility (BSR):
Founded in the United States in 1992, BSR is a
global network of member companies providing
advice and solutions related to CSR.

The Hitachi Group’s CSR activities are based on theFundamental Credo as well as the future of society that we
pursue, as expressed in the Hitachi Group Vision. Since
our founding, we have tackled and resolved the social issues that arose in each age. Recently, various global prob-

CSR Policy of the Hitachi Grouplems have emerged, such as climate change andenergy resource scarcities. By fully utilizing
the empirical knowledge and technologies accumulated over our almost
one century, we will continue tosolve global issues by optimizing
group synergy.

Hitachi Group Vision
We will contribute to the solution of
fundamental global issues, and pursue
the realization of a better, more prosperous global society, in line with Hitachi’sfounding spirit, utilizing the group’s
knowledge and technology.

Fundamental Credo

1. Commitment to Corporate Social Responsibility(CSR)
2. Contribution to Society through Our Business3. Disclosure of Information andStakeholder Engagement
4. Corporate Ethics and Human Rights
5. Environmental Conservation
6. Corporate Citizenship Activities
7. Working Environment
8. Responsible Partnership with Business Partners
Adopted March 2005
(For the specific plans and achievements of each policy,
see page 20)

Adopted November 2006

Adopted June 1983
Revised September 1996
Fundamental Credo
CSR Policy of the Hitachi GroupAt Hitachi, we view the participation of stakeholders as an essential
part of the decision-making process for CSR materiality, in tandemwith assessing the magnitude of issues from the viewpoints of management and social sustainability. In fiscal 2008, with the support of
the global network BSR, we engaged in dialogues with stakeholders
mainly on the themes of pressing global environmental problems andother issues that require high-level attention in our corporate businessstrategy. The chief executive officers of Hitachi and members of BSR
also discussed global social issues and the long-term outlook of CSR
activities. We report on the material issues defined through our analysis
in our CSR reports and environmental reports. Various dialogues withexternal stakeholders are held regularly at a global level and, basedon the deliberations of the CSR Promotion Committee—comprised of
Hitachi executive officers—the most significant are then incorporated
into CSR activities from the following fiscal year onward.

Summary of Issues That Hitachi Considers Important
Importance for stakeholders

Method for Selecting Material Issues

Use, circulation, anddischarge of water

Supply chain

Products that help createa sustainable society

Discrimination
prevention

Global diversity

Chemicals and emissions
from operations

Making existing products
more energy efﬁcient

Labor/safety
and hygiene

Product safety

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

Effect on businessDialogue with Stakeholders in North America
2009, a wide-ranging exchange of views
was made on activities expected of Hitachi.
We will use these views to refine our environmental vision, and the methods that we use toparticipate in global discussions. The issues
emerging from these dialogues will be incorporated into future programs as vital issues in
our CSR activities.

Hitachi places environmental projects at thecore of our business strategy. During dialogues with stakeholders on global environmental strategy held in New York in MarchParticipating stakeholders: Jason Morrison, Pacific
Institute; Shin Furuya, Domini Social Investments;
Peter Holzaepfel, The Climate Group; Leslie Cordes,
The UN Foundation; Richard A. Liroff, Investor
Environmental Health Network; Mark Cohen,
Resources for the Future
Facilitators: Dunstan Hope, BSR; Raj Sapru, BSR

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

Main Hitachi Group participants: Tadahiko Ishigaki,
Senior Vice President and Executive Officer, Chief
Executive for the Americas; Takashi Hatchoji, HitachiGroup Chief Environmental Strategy Officer; Kiyoshi
Kinugawa, President, Hitachi America, Ltd.

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

visionHitachi’s CSR Vision
http://www.hitachi.com/csr/

5

Highlights 2009 |Toward a Sustainable Society
The Hitachi Group aims to realize a better global environment
through innovation, business operations, and activities worldwide
Prevention of
Global Warming
Reduce CO2 emissions
in energy production
Enhance energy efﬁciencyof our products

Hitachi’s Environmental Vision
The quest for a comfortable existence has led humankind to create ahighly convenient society. Today’s society, however, requires a vast
amount of energy, and is causing problems, such as global warming,
resource depletion, and environmental damage. We should challengethese common issues if we are to maintain a comfortable existence into
the future.
We are committed to the prevention of global warming, the conservation of resources, and the preservation of the ecosystem as the threepillars of our vision. Our goal is to achieve a more sustainable society bypromoting global production that reduces the environmental burden ofa product throughout its lifecycle. We are working toward this goal by
setting progressive targets for fiscal 2010, 2015, and 2025.

Towards a Sustainable Society

Conservation of
Resources

Preservation of
Ecosystem

Collect products forreuse or recycling

Reduce negative effect onair, water and soil

The Three Pillars of Hitachi’s Environmental Vision

2015

Fiscal 2015 Goal: Medium-Term Environmental Vision 2015

Achieve emission neutral
Global Warming Prevention toward 2025
We are setting specific goals intended to prevent global warming, which
we view as a particularly urgent mission in realizing a sustainable society.

2010

We are working to achieve emission neutral by fiscal 2015 in the pursuit of monozukuri that reduces the environmental burden of products
throughout their lifecycle.

Fiscal 2010 Goal

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

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

6

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

http://www.hitachi.com/csr/

The Emission Neutral Concept
Reduced social(indirect) burden

Direct environmental burden

CO2 emissions
from material
production

Materials/
rawmaterials

CO2 emissions
frommanufacturing
CO2 emissions
from waste
recycling

Manufacturing

CO2 emissions
fromtransportation

Distribution

Reduced CO2
emissions
during productuse throughenergy-saving
products

Reduced CO2
emissionsin producttake-back andrecycling

Use

Take-back/recycling

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

2025
Fiscal 2025 Goal: Long-Term Environmental Vision 2025

100M tonnes

To help reduce annual CO2 emissions byby 2025 through Hitachi products and services**With fiscal 2005 as the base year,
Hitachi plans to produce more environmentally efficient products and services.

In 2007, we set a goal to reduce annual CO2 emissions by 100 million
tonnes by 2025 through Hitachi products and services. Seventy percent,or 70 million of that 100 million tonnes, comes from power generation andother aspects of energy supply, while 30 percent, or 30 million tonnes, isassociated with energy consumption, including industry, transportation,commercial and residential use.
For power generation and energy supply, we will provide productsthat reduce CO2 emissions by expanding the provision of nuclear power
and renewable energy technologies, as well as further improving theefficiency of thermal power generation. For energy consumption, we arecommitted to pursuing high energy efficiency in industry, transportationand daily living, such as developing hybrid drive systems that use lithiumion batteries and creating power-saving data centers that integrate
ICT (information and communication technology) with air conditioning
technology.
Plan for CO2 Emission Reduction(base year FY 2005)(millions of
tonnes/yr)

100 million
tonnes/ yr

Amount of CO2 curbed

100

80

63
60

40

20

Breakdown of 2025
CO2 Emission Reduction

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

35

Product Development
for a Sustainable Society
To reduce the environmental burden of CO2, we are building up
the environmental efficiency of all products.
First, we intend to make all Hitachi Group products EcoProducts†1 by fiscal 2025. To achieve major improvements inenvironmental efficiency, we have also developed the Super
Eco-Product classifi cation. These are Eco-Products that have
either an efficiency of global warming prevention†2 or a resource
efficiency †3 at least 10 times greater than standard products(fiscal 2000 products), or when these products are industry
leaders based on their achievement ratios of energy conservation standards†4 or other similar indicators, or are highly regarded
outside the Hitachi Group. The intention is to boost the percentage of Super Eco-Products to Eco-Products to more than 30
percent by fiscal 2010.
We have identifi ed the environment and energy as priority
areas for channelling Group resources. We look forward to using
our technology to meet the challenge of environmental protection,
another step toward achieving a sustainable global environment.
Eco-Products
http://www.hitachi.com/environment/library/glossary/kj/ecoproduct.html†1 Eco-Products
Products that meet certain standards under the Assessment for DfE (Design forEnvironment) system, which uses criteria such as material reduction and longevity
to provide a quantitative assessment of environmental burden.
†2 Efficiency of global warming prevention
When evaluating a product’s value for function and life span, the ratio of that
product’s value to the quantity of greenhouse gases generated during its lifecycle.
†3 Resource efficiency
When evaluating a product’s value for function and life span, the ratio of that
product’s value to the amount of resources used during the product's lifecycle.
†4 Achievement ratios of energy conservation standards
Standard target values for energy efficiency have been established for home
appliances and other products on the basis of the Law Regarding the Rationalizationof Energy Use. The achievement ratio indicates the degree to which these standard
target values have been met. The target values were determined with reference tothe most energy-efficient products available in the market.

14

Hitachi’s Eco-Product System02010 2015 2020 2025 (FY)Super Eco-Products

Speciﬁc Steps to Help Reduce CO2 Emissions by 100 Million Tonnes
Make all of our products Eco-Products
Pursue environmental efficiency of products through technology.
Promote green technology, environmental business investment andcollaborative projects in global markets.

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

Eco-Products
Products that meet Assessment for DfE standards

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

http://www.hitachi.com/csr/

7

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

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

2050

Changes in the Global Electric Power Supply Mix andCO2 Emission Volumes
Figures below have been rounded to whole numbers.
Estimates of the International Energy Agency’s (IEA)
Energy Technology Perspectives 2008.
Some data also obtained from Hitachi Research Institute estimates.
*Figures in parentheses indicate amounts emitted by power generation.

2005

2025
Gas
17%

Renewableenergy
18%

Coal
13%

Renewableenergy
38%

Oil
0%

14
billiontonnes( 2.3 billion tonnes ) *Nuclear
power
23%

Oil
3%

Nuclearpower
18%

Nuclearpower
15%( 9.7 billion tonnes ) *Oil
7%

Renewableenergy
15%

Gas
21%

62 billion tonnes( 27.3 billion tonnes ) *CO2 Emission Volumes
by Main Power Generation Methods( g-CO 2 /kWh )Power-generating
fuel combustion
Facilities andoperations

975

800

519

600

887

400

29

11

22
NuclearPhotovoltaic

111 53
Combined
cycle LNG

Coal-ﬁred

0

88

Wind

408

200

Small-scale
hydro

1,000

Figures include CO2 emissions not only from powergenerating fuel combustion but from all the energy
consumed in the electric power supply process—from the mining of raw materials to the constructionof power generation plants, fuel transportation,
operation, repairs and maintenance.
The nuclear power ﬁgure includes domestic
reprocessing of spent fuel currently being planned,“pluthermal” use (assuming plutonium is recycledonce), and highly radioactive waste disposal.
Based on Research Report Y99009 and Research
Report Y01006 (August 2001, Central ResearchInstitute of Electric Power Industry).

The Hitachi Group’s
Power Generation Technologies
Current Group projects include cutting-edge nuclear power generation
plants, more efficient coal-fired power generation, power systems using
sources such as solar and wind power, grid connection control and battery
storage technologies, as well as smart grids.†1 We are also conducting
joint R&D with research institutes, universities and other companies ontechnologies for the future, including IGCC,†2 a promising candidate fornext-generation high-efficiency power generation; CCS,†3 which isolates
and recovers the CO2 emitted from sources such as thermal power
plants for storage underground and elsewhere; and next-generation
nuclear power plants with more effective resource use.

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Securing a Stable Electric Power
Supply and Reducing CO2 Emissions
http://www.hitachi.com/csr/

Coal
52%

Methods of power
generation and CO2
emission reduction
toward 2050
Energy demand in developing countries is expected toincrease rapidly and growth in
the consumption of fossil fuels is
anticipated. Therefore, achieving reduced CO2 emissions—while maintaining a stable energy supply—is a social
challenge requiring a worldwide solution. There is international consensus
that CO 2 emission levels need tobe halved by 2050 if we are tolimit global warming. That
will require securing astable energy supply while developNuclear
ing and innovating
power
power generation
8%
methods andtechnologies thatOil
greatly reduce
3%
CO2 emissions

Extended-line CO2 scenario
Forecasts of energy supply mix and CO2
emission volumes under a scenario in whichcurrent reduction policies remain unchanged

Main Power Generation Product andTechnology Development Projects
CO2 emission
reduction

High efﬁciency/
effective use ofresources†1 Smart grids: Next-generation power grids to optimize power transmission by utilizing information technology†2 IGCC: Integrated Gasification Combined Cycle (coal)†3 CCS: Carbon (dioxide) Capture and Storage

8

Renewableenergy46%( 6.4 billion tonnes ) *CO2emissions
27 billion
tonnesCoal
40%

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

Gas
17%

24.9
billiontonnes

Coal
24%
Gas
20%

Halved CO2 emissions scenario

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

2,000 kW wind power generator
developed jointly with Fuji Heavy
Industries Ltd.

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

High-efﬁciency 600°C-classhigh-pressure turbine for thermal
power generation

Hitachi’s Nuclear Power Generation Technology: For High Reliability
Responding to Global Nuclear Power Needs
Nuclear power generation is currently undergoing arenaissance. This is due partly to the wide distribution of
uranium—used for fuel—across politically secure regions
and its potential contribution to energy supply stabilization, as well as the fact that no CO2 is emitted. Even in

power plant construction makes it easy to build according
to plan; it also ensures top-level quality and security control. Large-block modular construction will have a major
impact on power plant construction in North America, as
well as other regions.

the United States, where no new nuclear power plant has

Looking to Tomorrow

been built since 1973, plans are currently under consideration to build more than 30 new nuclear power plants.
Nuclear power generation is expected to play a major role
in reducing CO2 emissions in the years ahead.
Since putting the Tsuruga-1 nuclear power plant

As a builder of power plants, we have constructed manyboiling water reactors (BWRs), the most common type of

into operation in 1970, we have participated in the construction of 20 nuclear power plants in Japan, amassing
technological know-how while maintaining and fostering expert human resources. In July 2007, Hitachi-GE
Nuclear Energy was established as a nuclear power joint
venture between Hitachi and General Electric, a company with extensive construction experience in the UnitedStates. This strategic move positions us in the North
American market with the technical capabilities andhuman resources that we have nurtured to respond to the
expected boom in nuclear power generation.

nuclear power plant in Japan. Since 1995, we have also
been building advanced boiling water reactors (ABWRs)
which offer high reliability. Moreover, we are working with
the Japanese government, electric power companies andother manufacturers on a national project to develop thenext generation of light water reactors. These new reactors
are intended to take advantage of the replacement reactor
construction demand that will emerge around 2030, withan eye on the international market as well.
The reserves to production ratio for uranium is said
to be around 85 years. To improve uranium use efficiency,
we have been deeply involved in building a nuclear fuelreprocessing plant and in a government-led fast reactor
development program.

High Reliability
A key feature of our nuclear power business is that we
handle the entire process from plant design through tomanufacture, installation and pre-operation by having
many Hitachi Group companies work in collaboration.
We are striving to improve quality control by building
a comprehensive engineering database for centralized
information management—from the drawings produced(Left) Module assembly factory (Hitachi Works, Hitachi GE Nuclear Energy)(Right) Nuclear reactor containment vessel being lifted into Unit No. 3 at Chugoku Electric Power
Company’s Shimane Nuclear Power Station in Japanby our 3D CAD system to manufacturing plans and installation plans to progress monitoring during construction.
We also attach ultra-small RFID (radio-frequency
identification) chips called µ-chips to pipes and cables
shipped to construction sites, enabling detailed productEnhancement in
Next-Generation Power
Generation Technologies

and process management at new nuclear power plants.
Our interest in enhancing manufacturing and installation efficiency has led to putting aside the traditional

Director-General
Research Institute of Innovative Technology for the Earthapproach of installing machinery and laying pipes on-site
during construction. Instead, we have created a proprietary large-block modular construction method whereplant components, such as machinery and pipes, are assembled off-site and finished modules are then shippedto the construction site. Using this method for nuclear

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

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Securing a Stable Electric Power
Supply and Reducing CO2 Emissions
http://www.hitachi.com/csr/

9

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

Contributing to Water Treatment Operations
Hitachi’s joint global R&D—researching the effective use of valuable water resources

World Water Stress in 2025*
More than 40%
High to extreme stress
40–20%
Medium to high stress

20
2
2025
025
02
0
25
2
5

20–10%
Low to medium stress
Less than 10%
Low stress

Worldwide Water Problems
The 21st century has been called“the century of water,” with water
shortages made worse by global
warming. Around 1.1 billion of theworld’s approximately 6.5 billion
people (as of 2006) do not haveaccess to safe drinking water.
Some 2.4 billion people have to live
without proper sanitation, including
wastewater and sewage treatment. Regions lacking adequate
sanitation also suffer from serious
water contamination problems.
Thus, water treatment technologies
will soon be critical for global
environmental conservation.

Ratio of People with Accessto Good Sanitation (2004)

100%

Developed
countries

36%

50%

Developing
countries*Water stress refers to the ratio of water demand to renewable water resources.
When this ratio tops 40 percent, it is said to be high. According to Vital Water
Graphics (United Nations Environment Programme), four billion people are expected
to face high water stress by 2025.

Less-developed
countries

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

10

Sewage treatment
Industrial wastewater treatment

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

Sewage reclamation and recycling
Industrial water reclamation and recycling

Water treatment technology combining membrane
separations and biological treatments

Ship ballast water puriﬁcation

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

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Contributing to Water
Treatment Operations
http://www.hitachi.com/csr/

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

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

Technologies Creating Safe and Reliable Water
Solving Water Contamination
China’s urbanization has gone hand in hand with severe
water pollution. A prime example is TaiHu Lake, an areain the Yangtze River Delta known for its scenic beauty.
Large amounts of blue-green algae now bloom there
every summer, causing a strong odor in the tap water ofcoastal regions fed by the lake. This is thought to be due tonitrogen and other substances in domestic and industrial
wastewater flowing into rivers, lakes, and marshes, causing
eutrophication (when too many nutrients cause excess
growth of plants and organisms).
To address this problem, we are looking to deploy
a unique nitrogen removal system using immobilized
microorganisms trapped in polymer gel cubes.
The most common sewage treatment method is theactivated sludge process, where air bubbles are fed into abioreactor, using the action of microorganisms for water
purification. While this is an effective way to break downorganic matter, it cannot completely remove contaminants
such as nitrogen. With entrapped immobilized microorganism technology, microorganisms that can remove nitrogenare trapped in a polymer gel shaped into 3-mm cubic pellets. Injecting the pellets into the bioreactor substantiallyboosts the nitrogen removal
rate. PEGASUS, a nitrogen
removal system jointly developed with the Japan Sewage
Works Agency, uses this technology. It is already performing well in sewage in Japanand private-sector industrial Gel containing highly concentrated
microorganisms
wastewater treatments.

Joint Research Verifies Feasibility
To deploy this new technology in China, it was vital to use
actual wastewater to verify the technology and win over thegovernment and major design institutes that determine sewage plant specifications. We have demonstrated the effec-

in cities in the TaiHu Lake area. In our research with
Nanjing University, we made an on-campus evaluationof entrapped immobilized microorganisms and also
performed demonstration experiments at sewage plants.

Reusing Water Resources
We have also developed a system for water recycling
and reuse in regions with serious water shortages. ThePERSEUS system produces treated water suitable for reuse with a membrane bioreactor where a membrane issubmerged in a bioreactor for solid-liquid separation.
The PERSEUS system is already in commercial use.
Units began operating in 2007, for example, in Dubai in
the United Arab Emirates, a city that is attracting attention
for its large-scale urban development. In September 2008,a new company was set up with local investors to gather
domestic city wastewater in tank trucks for advanced
treatment using the PERSEUS system, where the treatedwater is sold for use in industry, toilets, irrigation andplantations.
At the same time, given that many areas with serious
water shortages are in the developing world, increasing
the market penetration of water recycling technologies
will require a significant lowering of costs. We are jointly
researching how to do this with leading universities aroundthe world that have special technologies. In Singapore,
which has the NEWater Plan for recycling wastewater asa drinking water resource, we have begun working with
Nanyang Technological University to apply the university’s leading-edge technologies to develop a system that isdriven by a small amount of energy. We are also collaborating with China’s Sichuan University to create a low-costhollow fiber membranethat combines the university’s polymer materialand spinning technologies
with our membrane treatment technologies.

tiveness of entrapped immobilized microorganisms throughjoint research with a number of Chinese universities.
In conjunction with the Shanghai Jiao Tong University, under a joint research project, we set up a pilot plant
for tests at a brewery in Guangdong Province. These tests
produced good results and proved the effectiveness on
wastewater containing high concentrations of ammonia.
We also undertook on-site verification in sewage plants

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

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Contributing to Water
Treatment Operations
http://www.hitachi.com/csr/

11

Highlights 2009 | Toward a Sustainable Society

Environmental Management in Monozukuri
We are set to reduce, from a long-term perspective,the environmental burden of products over the entire product lifecycle

Hitachi Action Guidelines forEnvironmental Conservation (excerpt)

Environmental Action
We have written the Hitachi Action Guidelines for Environmental Conservation, which outline
the Group’s environmental management policy based on Hitachi, Ltd. Standards of Corporate
Conduct. Using these guidelines, we have adopted three pillars for our environmental
vision: the prevention of global warming, conservation of resources, and preservation of theecosystem. The target in our medium-term plan, Environmental
Vision 2015 is to achieve emission neutral by fiscal 2015.
Drawing on the Sustainability Compass, which laysout directions for environmental activities, wehave developed an Environmental Action Plan
with specific targets for fiscal 2010. The
GREEN 21 evaluation system is used toassess the progress of our activities,
Medium-Term Plan
verify the results, and ensure continual
Environmental Vision 2015
improvement.

PurposeIn order to realize an environmentally harmonious andsustainable society through products and services,
Hitachi is committed to meeting its social responsibilities
by promoting globally applicable monozukuri (designing,
manufacturing, or repairing of products), which is aimed at
reducing environmental burdens of products throughout
their entire lifecycle, ensuring environmental conservation.

This document lays out 10 specific guidelines that
include a statement on meeting our social responsibilities through environmental protection activities, relevantbusiness activities, and forging cooperative relationships with stakeholders.

To achieve emission neutral
by fiscal 2015 (see page 6)
Environmental Action Plan
Action items and targets have been set for eachof the four axes of our Sustainability Compass.
Action items encompass expanding our EcoProduct lineup, steps to counter global warming,
efficient use of resources, and proactive communication on environmental issues. Environmental
Action Plan targets are reviewed and optimized
to reflect, for example, the state of the global
environment, requests from stakeholders, andearly target achievement.

The GREEN 21 Evaluation System

N

W
Sustainability
Compass

12

GREEN 21 is an evaluation system designed to ensure steady
implementation of the Environmental Action Plan and continual
improvements, and to raise the effectiveness of environmental
activities. GREEN 21 is an evaluation tool that numericallyassesses the degree to which that year’s Environmental Action
FY 2010: 1,280 GPs
Plan goals have been achieved, then displays the results
FY 2008: 1,108 GPs
in radar charts for easy viewing and use in environmental
FY 2007: 966 GPs
management. Version 3 was created in line with the Action
Plan and has 55 items in eight categories based on the four
1. Eco-Management
146 GPs
axes of the Sustainability Compass. Assessments are made160
for each plant and offi ce, and the results are also refl ected
8. Worldwide Environmental
2. Eco-Mind
Partnerships
in the overall performance evaluation of each business group
151 GPs
130 GPs
80
and company. This reveals weak points in environmental
action and shows improvements needed in the next fiscal
3. Eco-Products:
7. Eco-Factories:
0
Manufacturing year. In fiscal 2008, a Group average score of 1,108 Green
Resource Recycling
133 GPs
140 GPs
Points (GPs) was achieved, exceeding the target of 1,024
by 84 points. Regarding green procurement in particular,
efforts are being made to improve GP scores by providing
individualized, visiting advisors to the procurement divisions
4. Eco-Products:
6. Eco-Factories:
Green Procurement
Reducing Global Warming
and environmental promotion divisions of group businesses
147 GPs
123 GPs
5. Next-Generation Product/and companies, coupled with support for the environmental
Service Strategy
activities of procurement transaction partners.
138 GPs

E co-Mind & Global Environmental Management
ext-Generation Products & Services
E N
S uper Eco-Factories & Ofﬁces
Worldwide Environmental Partnerships
S

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Environmental Management inMonozukuri
http://www.hitachi.com/csr/

Reducing Environmental Burden
throughout the Product Lifecycle

DesignDevelop and design
products with a low
environmental burden

Our goal is to achieve emission neutral (see page 6) to help build a sustainable society.
We are pursuing environmental protection based on actions designed to respond toenvironmental regulations and to reduce the environmental burden at all stages of the
manufacturing process—from materials procurement, manufacturing, distribution, andproduct use, through to disposal.

Integrating Ecodesign into the Existing Management System

Distribution
Reduce the environmental
burden of transportation
with modal shifts
and more efﬁcienttransportation

We have promoted environmentally conscious productmanufacturing across the entire manufacturing process,through product design, parts/materials procurement,
manufacturing, sales and providing service. Accordingly,
we have developed common rules for environmental
CSR-compliant monozukuri and a framework for managing
chemical substances contained in products. Since 2005,
we have employed the Information Management System
for Chemical Substances Contained in Products. We now
have information on the chemical composition of more than
624,000 parts (March 2009) to ensure green procurement.
We are also improving our compliance with the REACH†1
regulation, the compulsory registration and notification forchemical substances used in the European Union (EU).

Quality control
Example of a
product assessedin FY 2008

Assessment for
DfE Criteria

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

20

Information
provision
4.2

Resource
recycling
3.4

Energyefﬁciency
5.0
Environmental protection
3.0

Ease ofdecompositionand processing
2.6

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

Managing Chemical Content of Products
Eco-friendly manufacturing
Information Management System for
Chemical Substances Contained in Products
Environmental CSR
database

A Gree’ Net
Parts chemical
content information

Design forEnvironment( DfE )

Green
procure-ment

DesignProcurement

Total amount of designatedchemical substances
received and shipped

Reduction ofenvironmental
burdenRisk management( individual producttraceability )Manufacturing

Customers/society

Environmental CSR-Compliant Monozukuri

Manufacturing

Disclosure ofenvironmental information

Promote environmentallyconscious manufacturing
through energy saving,
effective resource use,
and management ofchemical substances

Procurement

Qualityassurance
Distribution

Product

Production

DesignSupplier

Procure materials andproducts with a low
environmental burden,
share environmental
information across the
supply chain, and promote
environmental protection
with suppliers

Planning

Environmental information

Procurement

Minimizing the environmental burden of products to thegreatest possible extent means focusing on the impact atevery stage of the product lifecycle. We have integrated
Assessment for DfE (Design for Environment) into productdevelopment: We evaluate environmental burden usingeight criteria, including resource reduction and productlongevity. Based on these criteria, products having better
environmental performance than previous models (before
the latest major design change) are called Eco-Products.
To implement proper and effi cient Eco-Product development not only design divisions but also every operational
unit, including planning, procurement, manufacturing andquality control, is required to integrate environmental
consideration into their work. We will achieve this by incorporating ecodesign into our existing management system.
The system will enable prompt responses to environmental
laws and regulations, as well as environmental information
disclosure requirements, to make products with outstanding environmental performance.

Parts andmaterials

Implementing Ecodesign

Use
Popularize products with alow environmental burden

Disposal andrecycling
Resource recycling,proper treatment for
disposalSuper Eco-Factory & Ofﬁce Certiﬁcation Criteria

Super Eco-Factory & Office Certification
We internally give Super Eco-Factory & Offi ces certifi cation to facilities that achieve outstanding results and takepioneering steps in environmental burden reduction. Byhighlighting the initiatives taken by certifi ed factories andoffices, we are encouraging environmental action acrossthe whole Group.
Assessment is based on six criteria, including energy
efficiency, improvements in resource recycling and VOC†2emission reduction to certify those facilities that achieve
industry-leading environmental efficiency and a reductionin adverse environmental burden. Nine facilities have beencertified as Super Eco-Factories & Offices up to fiscal
2008. Our goal is to raise this to 30 across the HitachiGroup by fiscal 2010.

1. Energy efﬁciency
2. Improvements inresource recycling
3. VOC emissions reduction
4. Water recycling
5. Renewable energy use
6. Other( special commendationor use of original technologies
to meet targets )Super
Eco-Factories
Certiﬁed as achieving industry-leading
direct environmental burden reduction
Eco-Factories
GREEN 21 activities
Overall assessments ofenvironmental management andenvironmental burden reduction
based on target goals for a given ﬁscal year
Ofﬁces and Factories†1 REACH: Registration, Evaluation, Authorisation, and Restriction ofChemicals (This EU regulation came into force on June 1, 2007.)†2 VOC: Volatile organic compounds

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Environmental Management inMonozukuri
http://www.hitachi.com/csr/

13

Highlights 2009 | Toward a Sustainable Society

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

Eco-Mind & Global Environmental Management
E

Conferences of Staff in Charge ofEnvironmental Issues in

4 Key Regions

Outside of Japan, the Hitachi Group is organizing environmental activities in these regions: the Americas, Europe, China, and the rest of Asia.
In 2008, management in charge of environmental activities gathered ineach region to understand Hitachi’s policy and the world’s environmental regulations, and to share information on their environmental activities,
such as energy conservation. Through these conferences, regional
networks were developed to deepen collaboration, clarify issues andprovide encouragement
for further action. We willcontinue to hold these
events to develop ourglobal environmental
activities while reflecting
regional characteristics.

Chinese Regional Conference in Suzhou, March 2009

European Regional Conference in Brussels, January 2009N

Next-Generation Products and Services

46 Eco-Products

Hitachi Appliance’s Drum-type washer-dryer(BD-V3100, BD-V2100)

Newly Registered

1,103 Hitachi Group products (6,961 models) were registered as Hitachi
Eco-Products in 2008. These products have high external reputations.
Hitachi Energy Recovery System—Micro-Hydropower System
Hitachi Industrial Equipment Systems Co., Ltd.
• Winner of 2008 Promotion Council Chairman’s Prize, 5th Eco-ProductsAward (2008) • Winner of the Japan Machinery Federation Chairman’s
Prize, JMF Award for Energy-Conserving Machinery
Hitachi Industrial Equipment has developed a system that recovers surplus
hydropower energy from buildings and factories as electrical energy. Optimizing
rotation speed enables highly efficient energy recovery, and miniaturization
increases the range of places where it can be installed.

Hitachi Appliances, Inc.
• Winner of METI Minister’s award, Energy Conservation Grand Prize 2008
The product recovers heat emitted by the motor, etc., and reuses it to dry clothing. This energy-saving technology reduces power consumption.

Packaged Air Conditioner for Cold Regions(standard heating capacity of 8 kW–16 kW)
Hitachi Appliances, Inc.
• Winner of Environment Minister’s Award for Activities to Fight Global
Warming 2008 (Technology Development and Commercialization Category)This product has a highly effi cient inverter compressor and a heat exchanger
for outdoor units that repel frost, improve heating capacity, and reduce energy
consumption when the outside is cold. Individual operation of indoor units is
also available for efficient air conditioning.

Agricultural Information Management System: GeoMation Farm
Hitachi Software Engineering Co., Ltd.
• Winner of 2008 Promotion Council Chairman’s Prize, 5th Eco-ProductsAwards (2008) • Winner of Ministry of Internal Affairs and Communications
Prize on Environment, u-Japan Award
A system adapting satellite image remote sensing technology and map information ensures crop quality through fertilizer management and reduces energy
consumed in the drying process by optimizing the harvesting time of crops,
such as wheat.

14

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Environmental Activity Topics
http://www.hitachi.com/csr/

Satellite image—GeoMation Farm

BD-V3100,
Drum-typewasher-dryerSuper Eco-Factories & Offices

S

9 More Super Eco-Factories &Offices Certified

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

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

Worldwide Environmental Partnerships
W

Hitachi Booths at Eco-Products Exhibitions
Attracted

34,000 Visitors

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

Eco Badges for All

400,000 Hitachi Employees
To promote environmental awarenessamong Hitachi management and staff,
in 2008 an eco badge displaying the
Hitachi Tree was distributed to all of
Hitachi’s management and employees
worldwide. Wearing these badges willencourage everyone to make the effort
to achieve yearly targets based on
Hitachi’s Environmental Vision.
“Eco tree” covered with messages (Eco-Products International Exhibition)

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Environmental Activity Topics
http://www.hitachi.com/csr/

15

Highlights 2009 | Toward a Sustainable Society

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

Project

Japan-China Energy Conservationand Environmental Business
Promotion Model Project
In Yunnan Province, China, we are activein the Model Project for Energy Savingand Utilization of Waste Heat/Pressure
through Electrical Systems. This is a collaborative effort between Hitachi, theEnergy Conservation Office of the People’s Government of Yunnan Province,
and the China Center for Business Cooperation and Coordination of the National
Development and Reform Commission.
The first phase of the project: operations in April 2008 of two sets of Hitachi
high-voltage inverters at Kunming Iron
& Steel Co. Ltd, one of Yunnan’s major
steelmakers. The company was able toreduce energy consumption by an average of 26 percent.
In addition, the high-voltage inverter
for intake pumps that Hitachi provided for
Tianda Chemical Industries Co., Ltd. andthe high-voltage inverter for slurry pumps

that we provided for Yunnan Three Circles
Chemical Co., Ltd. began operating inJuly and September 2008 respectively. As
a result, the Hitachi inverters were able tohelp these companies achieve immediate
initial energy savings of 25.7 percent.
Hitachi’s inverter units were used as
the base for the inverter systems, while
Dongfang Hitachi (Chengdu) ElectricControl Equipments Co., Ltd. assembled
them. Using our patented energy monitoring technology, these inverter systems
allow energy savings to be clearly viewed
on monitors. This cutting edge technology
is based on energy-saving evaluation andmonitoring technologies from Hitachi’s
motor drive energy conservation service,
HDRIVE. Collaborative creation between
Hitachi (China) Research & Development Corporation and Dongfang Hitachi(Chengdu) Electric Control Equipments
worked together to develop the system.
Following up on the projects in
Yunnan Province, Hitachi joined forces
with the China Center for Business Cooperation and Coordination and the Ningbo
Municipal People’s Government
to launch a second nationallevel project: the Cooperation
Project for Energy-saving andEmission Reduction among
SMEs in Ningbo. Thirty SMEs
in Ningbo were selected toserve as model companies forthis project. Plans are to conduct trial energy audits and to
expand eligibility for the project once the results have been
confirmed.

A monitor showing how much energy is being saved

Project

Joint Research on Coal
Combustion Technology
for CO2 Reduction

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

16

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

The environmental burden of coal is not
low, however it will not go away soon; it isan abundant and low cost source of energy, with infrastructure in place to support

Extending Our Collaborative
Projects Overseas
http://www.hitachi.com/csr/

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

its use. Therefore Hitachi realizes the best
course of action is to help clean up theprocess and reduce the negative impact ofcoal energy in the short to medium term,
while in the long term investing in andenabling alternative energy technologies
and products that support a sustainable
future. Since conventional coal-fired thermal power plants burn coal with air, it isnecessary to separate nitrogen and CO2
in the flue gas to recover CO2. Using theoxygen-combustion method, the main
components in the flue gas are water and
CO2, making it easier to recover CO2.
This system can be adapted to coal-fired
power plants around the world by adding oxygen supply equipment. Requiringfew major modifications, it is believedthat practical application is close at hand.
In Germany, in particular, there are plansto test oxy-fuel combustion technology.
Hitachi companies, especially Hitachi
Power Europe, are participating in European projects, working on system design.
For basic research, we have exchanged
joint statements with the German state ofNorth Rhine-Westphalia on technology
for reducing CO2 from coal-fired plants.
We are jointly researching with leading
universities, as well. Our research projectwith RWTH Aachen University uses theuniversity’s own oxy-fuel combustion test
furnace to compile data on combustion,
and we are using more sophisticatednumerical analysis techniques to improve
the reliability of oxy-fuel combustion
furnaces.
Forum

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

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

Research Institute, and Hitachi (China) as
the supporting Japanese companies.
This forum had about 200 attendees
from both countries’ governments andindustries, and featured four sessions:“Policies and Regulations for Energy Conservation and Reduction of Emissions,”“Energy Conservation and Reductionof Emissions for Companies,” “Societal
Programs for Energy Conservation andReduction of Emissions,” and “Collaborations between Japan and China on Energy
Conservation and Environmental Protection.” Each session included lectures anddiscussions.

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

Forum

Environmental Eventsin the United Statesand Singapore
In March 2009, Hitachi held environmental seminars and exhibitions in the
United States and Singapore, with gov-

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

The Hitachi Eco Conference held in Singapore

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Highlights 2009
Toward a
Sustainable Society

Extending Our Collaborative
Projects Overseas
http://www.hitachi.com/csr/

17

Hitachi’s
CSR Management

CSR Promotion
Activities

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

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

Level of CSR Evolution

Medium-Term Business Plan
Realization of ideals

Determination ofcurrent statusbased onthe CSR Policy of
the Hitachi Group

April 2006

Verification andvaluation of
CSR activities

April 2007

Toward an advanced
global CSR company

Optimization of
CSR activities andimplementation ofstrategic CSR

April 2008

Group-wide efforts
to resolve issues
in society

March 2009

Self-Assessment of CSR Activities
CSR Self-Assessment Tool

The CSR Self-Assessment Tool (“Tool”) developed in fiscal
2008, was created with the aim to examine our position andthe direction that we should be taking. With outside experts,
we referred to the indices used by major SRI†1 and sustainability investor surveys, as well as global standards. We thensummarized the elements required into 47 categories andFor more information, please see the Hitachi Group Corporate
Social Responsibility Report 2009 (PDF), available at:

http://www.hitachi.com/csr/

set five levels to be reached for each category. Finally, byassembling and analyzing the results of self-assessments ineight policy areas that correspond to Hitachi’s CSR Policy, weclarified our strengths, weaknesses and where we need to beheading, as well as the results we hope to achieve.
To ensure that all companies in the Hitachi Group use

18

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

CSR Management

CSR Promotion Activities
http://www.hitachi.com/csr/

this tool, discussions were held several times with major

The Tool is being applied at all 22 major Hitachi Group

Hitachi Group companies during its development. Also, an

companies, including Hitachi, Ltd., and each company isapplication manual was created to demonstrate the effective

drawing up an action plan that takes into account its industry,use of the Tool. In addition, the manual lays out scoring criteria

scale, management strategy, and other details.

and explains how the Tool can be applied, depending on

European CSR Projecteach individual Hitachi company’s business area and scale ofoperations.

In order to implement CSR activities best suited for Europe,
Fiscal 2008 Self-Assessment Results

Hitachi’s Regional Corporate Centre in Europe launched a CSR

By using the Tool, we found that the structures and systems

project that looked at what the Hitachi Group as a whole—asrequired for effective CSR are mostly in place. We also dis-well as Hitachi Group businesses in Europe—must focus on,covered areas that need improvement: the link between CSR

and the level of interest of stakeholders in the region. The main

and the mid-term business plan, unified information disclosure

themes were promoting environmental projects, encouraging

within the Group, and the sharing of and education on global

diversity, respecting human rights, and promoting CSR pro-standards throughout the Group.

curement. The project’s working group pays close attention
to trends in EU policy as it considers plans and measures foreach theme. The European Corporate Office of Hitachi, Ltd., is

FY 2008 Self-Assessment Results (Hitachi, Ltd.)

Policy 8
Responsible partnershipwith business partners
70.0%

Policy 7
Working environment
77.9%

Policy 6
Corporate citizenship activities
76.5%

Policy 1
Commitment to corporatesocial responsibility (CSR)
70.5%
100

50

also participating.
The focus in fiscal 2008 was on identifying common conPolicy 2Contribution to society throughour business
71.5%

Policy 3
Disclosure of informationand stakeholder
engagement
75.6%

0

Policy 5
Environmental conservation
74.0%

cerns of the Hitachi Group Europe, and identifying measures
which the Group as a whole could implement. While working to develop these measures from fiscal 2009, we will alsoemphasize communications with European stakeholders.

Policy 4
Corporate ethics andhuman rights
64.2%

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

voices

A meeting on the European CSR Project†1 SRI (Socially Responsible Investment)
An approach to investing where shares are selected partly on the basis of criteria relating to CSR.

Enhancing CSR Management
through Self-Assessment

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

Mr. Pedersen joins the discussion with Hitachi Group companies

I find it extremely interesting and significant
that the Hitachi Group has sketched out
what it wants to do as a company and has
developed and adopted self-assessment
tools based on its eight CSR policies. I
also think that it was excellent that even theprocess of deciding on the evaluation tools
was itself carried out in participation withthe main Group companies and entailed athorough debate.
In many cases, expanding CSR management to the group becomes an issue.
It is not uncommon for this to reach an
impasse because issues within individual

group companies remain unresolved. The
most effective aspect of Hitachi’s CSR selfassessment tools is the common measurefor the Hitachi Group as a whole. At thesame time, it permits an evaluation that is
appropriate to the unique business characteristics of each company within the Group.
I think we can expect to see in the future that each Hitachi Group company will
no longer be “evaluating for the sake ofevaluating,” but will understand the direction for improvement indicated by thesetools and will come up with their own ways
to further enhance CSR management.

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

CSR Management

CSR Promotion Activities
http://www.hitachi.com/csr/

19

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

Activities in Fiscal 2008

Results in Fiscal 2008

1. Commitment tocorporate social responsibility• Implement CSR e-learning
courses in the Americas, andChina and other Asian countries• Continue holding CSR workshops
and seminars overseas• Implemented CSR e-learning courses overseas(attendance rate: North and South America 70%,
China 90%)
• Held CSR workshops (in ﬁve Asian countries)• Held CSR working group sessions in Europe

✦✦

P. 19

• Implement CSR e-learning
courses in other Asian countries• Engineer plan-do-check-act(PDCA) cycle through the
adoption of Hitachi Group shared
CSR visualization tools (tentativename)• Developed Hitachi Group CSR self-assessment
tools and implemented them throughout the Group(used at 22 companies)✦✦✦

PP. 18–19• Increase the number of companies where CSR self-assessment
tools are applied, and implement
tools overseas• Determine important themes for
Hitachi Group CSR activities andhave them reﬂect the concerns ofsociety as well as management• Determined important CSR issues for the HitachiGroup and themes for CSR activities• Assessed important issues and business operations beneﬁcial to society from management andstakeholders’ perspectives

✦✦

P. 5

• Introduce materiality process*1
and incorporate it into corporate
strategy, business operations,and management decision
making• Improve the PDCA cycle-driven
work process• Implemented process improvement measures(strengthened management of change points, etc.)
in business divisions prioritized by the need for
quality improvement

✦✦

P. 24

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

✦✦✦

P. 25

• Strengthen Group network of
Web sites for general customer
inquiries

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

Inside cover;and PP. 5, 17• Issue clear, concise
Environmental Report• Conduct dialogues with stakeholders in all overseas regions• Improve transparency anddisclose more information on
CSR Web site

4. Corporate ethics andhuman rights• Implement corporate ethics andcompliance education programs
based on the Corporate Ethics
and Compliance Handbook• Continue implementing compliance education programs in Asia

• Used the Corporate Ethics and ComplianceHandbook (English edition, Chinese edition)
throughout Hitachi Group companies• Implemented compliance education programsin Asia (ﬁve countries) and revised the employee
notiﬁcation system in the Philippines• Established company regulations regarding theprevention of bribery• Joined the United Nations Global Compact✦✦✦

PP. 21–23• Develop a global education
program on human rights• Implement e-learning complianceprograms in Asian countries

5. Environmental conservation• Promote and expand integrated
EMS certiﬁcation program• Boost Super Eco-Product ratio to15%• Register eight more Super
Eco-Factories and Ofﬁces• Four Hitachi Group companies acquired integrated
EMS certiﬁcation: Hitachi Metals, Ltd., Hitachi Plant
Technologies, Ltd., Hitachi Maxell, Ltd., and Hitachi
Medical Corporation.
• Achieved Super Eco-Product ratio of 18%• Registered nine more Super Eco-Factories andOfﬁces (bringing the total to 26)✦✦✦

PP. 12–15• Promote and expand integrated
EMS certiﬁcation• Boost Super Eco-Product ratio to22%• Register eight more Super
Eco-Factories and Ofﬁces

6. Corporate citizenship activities• Implement programs on global
environmental themes• Implemented programs in U.S.A., China, Singapore,
Thailand, the Philippines, and Japan✦✦✦

PP. 26–27• Plan and deploy new social
contribution programs to satisfy
needs in emerging countries• Planned programs in India and South Africa• Incorporate aging and otherimportant social issues into existing social contribution programsand deploy them

• Held the EU-Hitachi Science and Technology Forumon the theme of the aging society• Implement programs in emerging
countries and markets• Continue implementing programs
on global environmental themes• Expand educational support
programs (further improve visiting lectures on Universal Design)• Expand educational support
programs (increase regions forvisiting lectures on Universal
Design)• Implemented educational support programs at
21 elementary schools, etc., mainly in the Tokyo
metropolitan area

7. Working environment• Promote improved diversity
awareness Group-wide• Continue encouraging appointment of female managers• Plan and deploy initiatives(development and trial implementation of training curriculum) to
reafﬁrm Hitachi’s founding spirit
and ideals• Held Women’s Summit Tokyo 2008 (co-sponsoredwith other companies)• Promoted diversity awareness in each businessgroup (holding work-life balance seminars, etc.)• Implemented community contribution activities (lectures on work-life balance in communities wherebusiness ofﬁces are located) and participated in the
Ministry of Health, Labour and Welfare’s Work-Life
Balance Project• Set up a diversity promotion Web site
• Implemented special executive and management
training to reafﬁrm what Hitachi is✦✦

PP. 28–29• Promote diversity awareness inthe Hitachi Group (encourage
information exchange and development of shared tools throughthe Diversity Development Group
Committee)• Develop a training curriculum
for conﬁrming and learning
through experience the values
and conduct shared by all Hitachi
employees

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

✦✦✦

P. 31

• Revise the Guidelines for
Procurement Activities and publish Hitachi Group Supply-Chain
CSR Deployment Guidebook andimplement it among suppliers• Expand the scope of monitoringof suppliers

2. Contribution to society
through our business*1 Materiality process: Activities, with the participation of stakeholders, to clarify the important issues inﬂuencing society and management*2 MMM Club: Organization run primarily by suppliers who have acquired environmental certiﬁcation through Hitachi’s activities to support suppliers’
environmental safety programs. The three Ms come from the ﬁrst letter of mottainai in its use as an international environmental term.

20

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

CSR Management

CSR Promotion Activities
http://www.hitachi.com/csr/

Achievement
Level

Page(s)✦ ✦ ✦ : Achieved✦ ✦ : Partially achieved

Fiscal 2009 Goals/Plans

Respectfor Human Rights

community that we are committed to enhancing our corporate
activities using the UN principles as guidelines. We will sharethese principles with the entire Hitachi Group, and they will bereflected in our daily work.

Raising Awareness of Human Rights“Cherish humanity”—a global approachto respecting human rights

Our human rights code of conduct is in our Corporate Ethics
and Compliance Handbook, which is distributed to all employees. To improve awareness of the need to consider humanrights, training is given at every level. In addition, in Europe weuse cultural awareness training to deepen understanding of
the cultures, customs, and values of other countries, and to

Human Rights Policy

help our employees adopt better methods of communication.
In fiscal 2008, a European working group was launchedBasing our corporate activities on the concept of “cherishing

to consider human rights initiatives. Since Europe has a di-humanity,” we respect stakeholders’ human rights throughout

verse history, many cultures and societies, we believe that theour business, including product safety, information disclosure,activities there will be instrumental in promoting human rights

environmental conservation, and employment practices. We

in the entire Group.

believe that new values are created by understanding andRegarding procurement, in fiscal 2007 we conducted amutually recognizing the thinking and values of others. For thesurvey focusing on CSR—including the handling of human

Hitachi Group, with our diverse businesses, our policy on hu-

rights—on approximately 100 of our largest suppliers, using

man rights is a core management component that is directly

the Japan Electronics and Information Technology Industries

tied to our Group synergy—given that we share new values

Association (JEITA) guidelines. In fiscal 2008, we analyzed thethat transcend our employees’ race and gender, or the com-

results, while in Asia, we held procurement training courses

pany or division they work in.

with a specific focus on human rights for Group companies.

Based on this view, in February 2009 we joined the United
Nations Global Compact,†1 declaring to the international
The Ten Principles of
the United Nations Global Compact
Human Rights
Principle 1: Businesses should support and respect the protectionof internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights
abuses.
Labour Standards
Principle 3: Businesses should uphold the freedom of associationand the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory
labour;Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approachto environmental challenges;
Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage thedevelopment and diffusionof environmentally friendly
technologies.
Anti-Corruption
Principle 10: Businesses
should work against corruption
in all its forms, including extortion and bribery.

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

CSR Management

Procurement training
course held in Malaysia

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

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

Respect for Human Rights
http://www.hitachi.com/csr/

21

Compliance andRisk Management

problems from occurring or reoccurring. In addition, we audit
areas of the business where problems have occurred in thepast or where problems could occur, and divisions in charge
use the information from the audits to improve their complianceand develop an emergency response, where appropriate.

Global Push to Stop Corruption

Raising employee awarenessand understanding
to strengthen complianceControls on bribery by Japanese corporations abroad havebeen tightened, and more cases are being exposed throughthe U.S. Foreign Corrupt Practices Act. In August 2008, wecreated internal regulations for preventing corruption of public
officials and others within and outside Japan. We also imple-

Risk Management

mented detailed guidelines on entertaining and exchanging
gifts. Every Group company set up similar regulations. In

We identify financial and nonfinancial risks assessing how the

October 2008, an independent lawyer from the U.S. wascompany and its business divisions may be affected. We makeinvited to present on anti-

basic information—including environmental, social, governance,

corruption policies, andlegal trends and know-how—available to every business and all

212 employees in charge

employees. This information is shared to prevent and treat theof promoting compliance inGroup companies attended. We will further bolster

Major Risks and Divisions in Charge
Risk

Division Responsible

Content of sales contracts and transactions withcustomers

Legal Affairs, Compliance

Worksite safety and health, labor management

Human Resources, Employee Relations

our policies through audits
and training.

Lecture on global complianceManagement of the procurement process

Procurement

Preventing Recurrencesof Antimonopoly Law Violations

Information security

IT

Since 2002, when we received administrative sanctions for

Appropriate accounting and assets

Financebidding on government contracts, we have been working hard

Export management rules

Export Management

to improve compliance awareness.
From April 1999 to July 2003 we were involved in bid

Transactions with antisocial individuals and organizations General Affairs (inquiry)
Environmental protection

Environment

rigging on a Tokyo Bureau of Sewerage contract for a pumpEnsuring employee safety and business continuity during natural disasters, political conﬂicts, crimes, etc.

Risk Management

facility. In August 2008, we were ordered to pay an administrative fine, and in November 2008 we received a business

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

A Constant Effort
to Observe the Laws
Hideaki Kobayashi
Attorney
Kobayashi & Associates Law Office

I believe that Hitachi, Ltd. and the Hitachi Group are in the vanguard ofcompliance. For example, their understanding of the risks and their responses, their Corporate Ethics and Compliance Handbook, setting up
a Compliance Division, and creating an internal whistle-blower systemshow a very solid approach to the issue. Many of these measures werein response to past incidents or problems, but whenever those issues
arose, they dealt with them head on. I feel that these measures reflect thelessons they have learned.
However, it is a shame that incidents and issues have continued,
even recently, suggesting that compliance is never ending and that observing laws and regulations requires a constant effort. I think that evenstronger, steadier action is needed to improve compliance awarenessthrough daily monitoring, regular training, and other means.
I look forward to seeing how Hitachi further improves compliance.

22

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

CSR Management

Compliance andRisk Management
http://www.hitachi.com/csr/

Enhancing the Environment
for ComplianceToshiaki Kuzuoka
Vice President and Executive Officer in Charge ofLegal & Corporate Communications, Corporate Brand
Management, and Management Audit, Hitachi, Ltd.

It is extremely regrettable that, even recently, incidents and issues havearisen that have caused concern. As Mr. Kobayashi points out, we hope
to use what we have learned from the past as we think about future measures. In particular, in order to respond to his indication that we must
make a constant effort, we would like to systematically set the time andpoints at which we should reconfirm and reinforce our corporate ethics
and compliance, and I hope to follow up on that.
In addition, we are trying to further improve our response to eachtype of risk and are systematically working to discover new risks andunderstand the risks throughout the entire Group. At the same time, weare devising ways to enhance the environment for compliance throughsuch means as fostering the kind of legal mind that can constantly sense
problems, and creating a system to check for risk.

suspension order. In addition, from April 2003 to December
2005 we were found to have violated the Antimonopoly
Law when bidding on an electrical equipment construction
project for a City of Sapporo sewage plant. Accordingly, in
October 2008, we received an administrative fine order anda cease-and-desist order, and in March 2009 we received
a business suspension order. We take these violations very
seriously, and are engaging the entire company in complying
with the Antimonopoly Law. When an issue arises, the Hitachi
President and CEO will communicate with all employees,
and the executive in charge will interview all the employees
involved, asking them to submit a written oath to obey the law.

The disaster simulation exercise

In addition, we intend to strengthen compliance awareness—throughout the company—by enforcement through our audits

earthquake. The roughly 100 employees who participated

and training.

took requests for assistance, provided information, and cameup with responses. Through this emergency simulation, they

Table Top Exercise to Preparefor Large-Scale Disasterlearned to make decisions calmly and to act quickly.

In February 2009, six major Group service companies†1 held asince 1998, so far at 17 sites throughout Japan. As well, wetable top exercise based on an earthquake in Tokyo. These six

use a satellite communications system, and a function checkcompanies provide essential products and services, includingof the system has also been done every month.

Disaster simulation exercises have been held annuallywater and sewage equipment, elevators, computers, electricalmachinery, and consumer electronics. Strengthening cooperation among these companies, this exercise underscoredthe need to quickly restore the infrastructure, such as themachinery and equipment that would be damaged by a major†1 Companies participating in the disaster simulation exercise
Hitachi Appliances, Inc.; Hitachi Engineering and Services Co., Ltd.; Hitachi Industrial
Equipment Systems Co., Ltd.; Hitachi Electronics Services Co., Ltd.; Hitachi Building Systems
Co., Ltd.; and Hitachi Consumer Marketing, Inc.
Corporate Ethics and Compliance Handbook
http://www.hitachi.com/csr/csr_images/handbook_en.pdf

Violations on Bidding for Public Contracts and Initiatives for Prevention
Action (in Japan)

PeriodPunishment

Steps for prevention

Bidding on contract for electrical instruments andconstruction of mechanical facilities for the Kohoku
Water Supply Bureau’s new Tamari waterworks

March 1999

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

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

Bidding on special pump facility construction forTokyo Bureau of Sewerage

April 1999–July 2003

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

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

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

2004

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

Expanded use of notebooks for recording compliance data,*1 strengthened training and audits

Bidding on a City of Sapporo contract for electricalequipment construction related to a sewage disposal
facility

April 2003–Dec. 2005

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

Interviews conducted by executives of all sales employees involved /request for signed pledges / additional expansion of training and audits*1 In these notebooks employees keep a record by themselves that they avoided situations that would have been illegal or that they suspected may have been illegal.

voicesPreventing Corruption through a High Standardof Corporate Regulations

Richard Dean
Attorney, Baker & McKenzie LLP

In recent years, corruption has been increasing, especially in developing countries, and it has been defined as a crime
in international conventions established by
the United Nations, the OECD, and others.
Corruption wastes enormous resources, undermines the proper functioning ofmarkets, and destroys confidence in legal
systems. There is also evidence that corruption impacts national security interests.

The Hitachi Group is doing its part byproviding training and monitoring systems
to ensure compliance awareness, and by
setting high standards for its employees in
the areas of integrity, business conduct,and ethics.
The Hitachi Group has taken decisive steps to meet the challenge of global
corruption, which is receiving increased
attention from political and business lead-ers, as well asfrom law enforcement agencies.
The anticorruption regulations that Hitachi
enacted in 2008 are being extended to
Hitachi Group companies on a global basis,and Hitachi is playing a leading role amongmajor Japanese corporations in the fightagainst corruption.

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

CSR Management

Compliance andRisk Management
http://www.hitachi.com/csr/

23

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

Improving Monozukuri
and Service
Protecting our tradition of monozukuri
craftsmanship while improving
product and service quality worldwide
Ensuring Product and Service Quality
Since we began, Hitachi’s tradition of monozukuri craftsmanship has placed top priority on quality first. Using the slogan,providing customers with the highest quality products andservices, our whole Group is immersed in quality assurance(QA)—from product planning and delivery to after-sales service. We are now focused on improving the quality of products
and services made outside Japan, especially in China and therest of Asia.
Strengthening Our Quality Assurance (QA)
System in China

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

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

For more information, please see the Hitachi Group Corporate
Social Responsibility Report 2009 (PDF), available at:

http://www.hitachi.com/csr/

Building Customer Feedback
into Our Products
We made our Customer Satisfaction (CS) Management
Guidelines one of the pillars of Hitachi’s business management, and we continue to improve CS with the goal of “creating

24

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Hitachi:
Living Together
with Society

Improving Monozukuri
and Service
http://www.hitachi.com/csr/

innovation through collaboration with customers.” We use CS(UD) is one of our corporate social responsibilities for improv-

surveys tailored to each business operation. In addition, we

ing quality of use, accessibility, and product life span. UD isanalyze customer opinions submitted to the Hitachi Customer

an approach that we believe can make products and services

Answer Center.

easy to use for everyone, regardless of age or ability.
Hitachi, Ltd., a founding member of the International

Customer Satisfaction Management Guidelines
1. Our customers determine the value of products and services
2. Information from our customers is the source of improvement
3. Offer prices and quality that are competitive
4. Respond rapidly to keep our promises to our customers
5. Adopt systems that prevent accidents and minimize their impact
Formulated 1994

Association for Universal Design,†1 is committed to creatinga society where more people can live with peace of mind.
The Hitachi Escalator VX Series was awarded the Chairman’s
Special Prize at the Kids Design Award 2008, sponsoredby the Kids Design Association.†2 Five Hitachi products andservices, such as the Active Walking Support System, wererecognized with awards.
The Hitachi Group’s Approach to UD

Web Site Customer Support

We established Customer Support on Hitachi’s corporate Web
site. From here, we are able to process information (customer
inquiries, opinions, requests, complaints) and use it to improve
products and services, through cooperation with customer
support of relevant Hitachi Group companies. We will maintainand improve our Web site as an important point of contact,committing to timely, reliable and more accurate responses toAccessibilityLife Span
We work to maintain connections with customers in many
ways—throughout the life spanof our product or service—by
providing information throughsales and after-sales support.

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

customers while strengthening collaboration among HitachiGroup companies.

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

Breakdown of Inquiries Received
from Hitachi Web Site Customer Support
Complaints
Product inquiries
from corporations
33%

Product inquiries Inquiries concerningfrom consumers corporate activities*
29%

24%

10%

Opinions and requests
3%
Other
1%

†1 International Association for Universal Design
Founded in 2003, the International Association for Universal Design is dedicated to the healthy
development of society and the enhancement of people’s lives through the dissemination andapplication of UD.

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

†2 Kids Design Association
Founded in 2006, the Kids Design Association was started by companies and other organizations in Japan dedicated to creating and disseminating designs that promote the safe, secureand healthy development and growth of children.

Universal Design
The Hitachi Group is involved in society and people’s lives in

Ensuring Product Quality

a variety of fields and activities. We believe Universal Design

Universal Design

topicsProviding High-Quality Elevators
for the World’s Highest Observatory

In October 2008, the Shanghai World
Financial Center opened in the Pudong
District of Shanghai, China. Featuring anobservatory at 474 meters,* this soaring
tower uses Hitachi elevators. The setting
required elevators that could safely and efficiently lift large numbers of people quickly
and comfortably to the tower’s upper floors.
To answer this need, Hitachi’s Mito Design& Production Division, research laboratories
and Group companies worked together
to develop vibration-dampening devices,
as well as high-output, high-performance

traction machines and control systems,
and other innovations that enhance both
comfort, energy effi ciency, and safety. To
increase capacity, a double-deck design
was adopted, making it possible to transport 48 passengers at a time. In this way,
Hitachi elevators are used every day bymany people, providing support for thispopular landmark.
Noboru Arahori
Division Manager, Mito Design & Production Div.,Urban Planning and Development Systems,
Hitachi, Ltd.

(Left) Shanghai World Financial Center (Right) Double-deck elevator*Highest in the world in October 2008

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Hitachi:
Living Together
with Society

Improving Monozukuri
and Service
http://www.hitachi.com/csr/

25

Working in Harmony
with Local Communities
Contributing to society througha broad range of activities andassistance for education,
the environment, and social welfare
Finding Solutions for Social Issues
Grounded in the Hitachi Group’s Social Contribution Philosophy
and Policy, we are offering broad-based assistance in threeprioritized fields: education, the environment, and social wel-(Top) South African Engineers for the Hitachi-DST Scholarship Program(Bottom) Planting commemorative trees in Thailand

fare. Making full use of human, material, financial and technological resources, we address social issues, including support

power shortages and urgently needs young technicians. To

for family education and the healthy growth of children andhelp, we have partnered with South Africa’s Department ofteens; fostering young researchers; sponsoring international

Science and Technology (DST) to create a training program

student and teacher exchanges; educating people about thefor young people with engineering degrees and a minimum ofenvironment; assisting environmental NPOs; working to narrow

three years’ work experience in the energy industry. Beginningthe digital divide; and helping people with disabilities.

in fiscal 2009, these engineers will receive practical on-sitetraining—and gain engineering expertise—at Hitachi’s electricSocial Contribution Philosophy and Policy
Philosophy The Hitachi Group strives to demonstrate its corporate citizenship in response to social needs and expectations, while
endeavoring to enrich the quality of life and realize a better society.
Policy The Hitachi Group promotes various social contribution
activities to build a vibrant society based on fostering leadership toimplement reformation for the next era. This is achieved by making
optimal use of our knowledge and information technology in three
specific areas, namely education, the environment and social welfare.
Adopted February 2002

Breakdown of Funding for Social Contribution Activities
Other
10%

power plants. After training, they will apply what they havelearned to electric power utilities in South Africa, contributing
to the development of their country’s social infrastructure.
The Environment: Promoting Afforestation

In July 2008, Hitachi Group companies in Thailand took partin the opening ceremony and commemorative tree planting for
the Billion Tree Campaign at Thailand’s Sirindhorn International
Environmental Park. The campaign, underway since 2007,
is jointly run by the Sirindhorn International Environmental
Park Foundation (under the Royal Patronage of Her RoyalHighness Princess Maha Chakri Sirindhorn), the United
Nations Environment Programme (UNEP), the Departmentof Environmental Quality Promotion of the Thai Ministry of

Culture andthe arts
21%

Scholarships and education
41%

a row, Hitachi has been a corporate sponsor. To date, Thai
Note: Data on Hitachi, Ltd.
and ﬁve foundations in Japanfor ﬁscal 2007

Social welfare
24%

Natural Resources and the Environment, and the Foundation
for Global Peace and Environment. For the second year in

Total expenditure:
1.472 billion yen

Environment
4%

Hitachi Group companies have donated about 2.3 million baht
(7.3 million yen), as well as two mini excavators from Hitachi
Construction Machinery Co., Ltd.
In September 2008, working with the Green Network, a

Educational, Environmental, and Social
Welfare Activities

non-profit organization (NPO), Hitachi Group employees vol-Education: Hitachi–DST Scholarship Programfor South African Engineers

China’s Inner Mongolian Autonomous Region. In 2007, these

Hitachi, Ltd. assists young South African engineers working

for the Nationalities, planted 1,300 pine seedlings and caredin the field of power generation and utilities by inviting them tofor already planted shrubs and poplar trees.

Japan for technical training.

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Hitachi:
Living Together
with Society

volunteers, along with students from Inner Mongolia University

Through these activities, we are deepening our friend-South Africa, a strategic emerging market, has electric26

unteered for an afforestation program in the Horqin Desert inWorking in Harmony
with Local Communities
http://www.hitachi.com/csr/

ships and relationships with other people and raisingawareness among Hitachi employees of the importance ofvolunteer work that helps to improve the quality of life of people
in rural communities.
Environment: Kanagawa Children’s
Environmental Summit in Yokohama

In February 2009, the Yokohama branch of Hitachi, Ltd. joined
Kanagawa Shimbun to sponsor the Kanagawa Children’s
Environmental Summit, raising children’s awareness of energy

Kanagawa Children’s Environmental Summit

and the environment. About 150 participants from eightelementary schools in Kanagawa Prefecture took part. Before

Social Welfare: Healthier Menus for Third World Children

the summit, the children visited production plants and environ-

We are enriching the quality of life and building a better society

mental facilities to study energy and ecology, including a bird

through social activities, including fostering the healthy growthsanctuary at Hitachi, Ltd. Enterprise Server Division, the homeof children and teens, and supporting the reintegration into

appliance recycling operations at Tokyo Eco Recycle Co., Ltd.,society of the socially or economically isolated.

and a district heating and cooling system built by Hitachi. At

Today, as millions in developing countries suffer fromthe summit, children reported on what they had learned, talking

starvation and malnutrition, in developed countries obesity andabout, for instance, high-efficiency thermal power generation,

related lifestyle illnesses have become endemic. The cafeterias

living in harmony with habitats of animals such as wild birds,

on the main campus of Hitachi, Ltd. have been participating

and protecting the environment by growing eelgrass (amamo).†1

since June 2008 in the TABLE FOR TWO †2 program, serving

During the panel discussion, there was a lively exchange ofhealthy meals to employees, with part of the savings going toideas on what the children had learned and what they would

developing countries. For example, when an employee has alike to see adults and corporations do. To build a better future,smaller amount of rice—cutting calorie intake—the savings are

we will continue joining with children and our planet’s future

passed on to children in developing countries for school lunch-generations in thinking about local environmental activities.

es. In fiscal 2008, on average 55.5 percent of Hitachi, Ltd. main
campus employees participated, as well as others from Hitachi
Software Engineering Co., Ltd., Hitachi Construction MachineryCo., Ltd., and Nikkyo Create, Ltd. We will call on all employees
to participate, broadening the reach as far as possible.
†1 Eelgrass (amamo)
A marine plant, growing in shallow waters, that purifies the water and provides habitat.
†2 TABLE FOR TWO
A program originating in Japan that addresses both hunger in the developing world, andobesity and other lifestyle-related diseases in the developed world.
Hitachi’s Activities
http://www.hitachi.com/about/activity/index.html
Hitachi Group Foundations
http://www.hitachi-zaidan.org/global/index.html

Hitachi Software Engineering employees’ cafeteria

topicsAssisting Dongfang Electric Corporation
after the Sichuan Earthquake

For a speedy recover y and to provide
emergency aid to the victims of the Sichuan
Earthquake that occurred in China on May
12, 2008, Hitachi contributed 245 million
yen in the form of relief donations, construction equipment and other items for reconstruction. Manufacturing plants of Dongfang
Electric Corporation that make turbines forthermal power plants were hard hit. At the
Hanwang plant, where 90 percent of thebuildings were demolished, making key
parts, such as turbine blades and rotors,
became impossible. So the Hitachi production plant in Hitachi City, Ibaraki Prefecture,

made substitutes for these critically needed
parts, keeping delays in shipping electrical
power equipment to a minimum while continuing to ensure the high level of productreliability and safety that the Hanwang plant
was known for. Electric power shortages
are a serious problem in China, so Wen
Shugang, president of Dongfang Electric, expressed his gratitude that delays in
China’s plans for construction of new power
facilities had been avoided, saying, “Thanks
to Hitachi's cooperation, recovery from thedamage caused by the earthquake has
been very smooth.”(Top) Hitachi Construction Machinery excavators, important forearthquake recovery (Bottom) Earthquake damage at Dongfang
Electric Corporation’s Hanwang plant

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Hitachi:
Living Together
with Society

Working in Harmony
with Local Communities
http://www.hitachi.com/csr/

27

diversity, contributing to the creation of a network of women

Employees: The Key
to Hitachi’s Future

working in many business fields. Two hundred women from 20
companies in a variety of businesses took part, engaging in a
lively exchange of opinions on the theme of pursuing a career.
Participation in the Work-Life Balance Promotion Project

Hitachi is participating in the Work-Life Balance Promotion

Respecting employees’ individuality
and promoting activities
to achieve work-life balance

Project launched in 2008 by the Ministry of Health, Labourand Welfare. This project aims to foster a balance between
work and life by publicizing specific activities and their resultsfrom 10 leading companies in different business fields basedon the Charter for Work-Life Balance and the Action Policy for
Promoting Work-Life Balance.

Diversity: A Base for the Healthy Expressionof Individuality
At Hitachi, we believe that respect for people in all their diver-Male/Female Employee Ratio

Ratio of New Male/Female
Graduate Recruits in Fiscal 2008

(March 2009)

FemaleFemalesity, respecting their ways of working, builds synergy among
employees and helps to create new value.

14%

19%

To realize this goal, we have been encouraging diversity awareness at all group companies, mainly through theDiversity Development Project launched in August 2006,
81%

86%

which reports directly to the President and CEO. From fiscal
2008, we also started promoting work-life balance as a key

Male

Male

element of diversity. In “Strengthening The Base ’08–’09 —For

Data: Hitachi, Ltd.

Data: Hitachi, Ltd.

Sustainable Growth—,” †1 a project for all employees, we havebeen reforming our ways of working based on the themes“lively work styles,” “enhancing physical and mental health,”and “support for enlivening workplace communication.”

Trend in the Number ofFemale Managers(People)with their own activities, and awareness of diversity and work-

Male
Female303

300

The results so far: many business groups have come up

Trend in the Number of
Employees Taking Child Care Leave

276(People)

247

250

500

200

400

ing. In fiscal 2009, we will continue these activities, based on

150

300

the same themes, in cooperation with all Hitachi employees.

100

438
2

459
8

life balance in Japan and overseas has been gradually increas200

73

In October 2008, Hitachi co-sponsored Women’s Summit

0

2000

2006

Tokyo 2008 together with other companies that promote

voices

451

100

50

Co-sponsoring Women’s Summit Tokyo 2008

436

2007

2008 (FY)
Data: Hitachi, Ltd.

0

2007

2008

(FY)

Data: Hitachi, Ltd.
Number of people who used system
at least once during period in question

Taking Child Care Leave with Understanding
and Support in the Workplace

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

In the 2nd Questionnaire Survey on Companies Facilitating Child-Rearing by Fathers, (by Fathering Japan and Daiichi
Life Research Institute), Hitachi was the
top company for the second consecutive
year. According to our employee, Daisuke
Komaki, who took six months’ leave from
July 2008, “The project I was in charge of
was at a crucial stage, so I think everyone
was surprised, but thanks to their understanding and support I was able to devote

28

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Hitachi:
Living Together
with Society

Employees: The Key
to Hitachi’s Future
http://www.hitachi.com/csr/

myself to looking after my child. The person
who took over for me upgraded his skills,
and I think the entire experience promoted
understanding for men taking child careleave.”
Hitachi gained high marks for not imposing any restrictions on how many times
employees can take child care leave, for expanding the system’s scope to three years
up to the end of the first year of school, andfor understanding the work-life balance.

In July 2008, management executives of the participat-

women, this network was launched in November 2008. Two

ing companies issued the Declaration by Top Management,

HDS executives, Susan Lynch, Senior Vice President andstating the aims of the project and implementation priorities. In

CFO, and Nancy Long, Senior Vice President for Global

March 2009, an action program was produced, outlining the

Human Resources, spoke as network executives at the event.

results of implementation at each company, including Hitachi,

The network’s activities have been widely recognized, being

and the activities they will conduct from fiscal 2009 onward.

shortlisted for the 2008 Stevie Awards for Women in Business,
which honors the achievements and social contribution ofpeople and organizations around the world.

Employment
We believe that employment should be protected by govern“Working well, leading a good life”—Logo of the Work-Life Balance Promotion Project

ment, employers, and employees. The continuation of employment is also an important management issue. In response

Promoting Employment
for the Physically and Mentally Disabled

to recent economic trends, and to ensure the most appropri-

We strive to meet the legally mandated ratio of physically andmaintain and expand employment by transferring people frommentally disabled employees by holding employment fairs andmature to growth businesses and by creating new businesses

consulting with Group companies. As of June 2008, 2,975

in environmental and other fields.

ate employment and allocation of personnel, we are striving todisabled people were employed in Japan, accounting for2.06 percent of employees at Hitachi, Ltd. and 1.84 percent at
Group companies. We will continue to create more opportunities for the disabled by improving the workplace and expand-†1 Strengthening The Base ’08–’09 —For Sustainable Growth—Activities for all Hitachi Group employees to strengthen management foundations for future
growth (April 2008–March 2009)

ing the range of work.
Trend in the Number of
Employees Using Nursing Care Leave

Trend in the Employment Ratio for Physically and
Mentally Disabled People
2.05(People)

1,300

2.11

Legally mandated
employment ratio

1,106
968

1,000

(People)

20

1.80

926

400

10

0

2006

2007

2008 (Year)0

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

Fostering Women’s Leadership
Together with other companies in the San Francisco Bay

200
10

2007

383
2

349

381

100

8
2008

350
1

300

10

1.5

2005

(People)

18
10

822

2004

Male
Female

20

1,001

700
0

Male
Female

(%)

2.0

1.93

1.88

1,150

850

2.06

Trend in the Number of
Employees Working Shorter Hours(FY)

Data: Hitachi, Ltd.
Number of people who used system
at least once during period in question

0

2007

2008

(FY)

Data: Hitachi, Ltd.
Number of people who used system
at least once during period in question

Individuals and the Team
Create Dynamism Together

Area, Hitachi Data Systems (HDS) supports the Women’s
Leadership Network. To promote the leadership of working

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

Women’s Leadership Network launch

The most important management task is to enhance corporate value by
creating a vibrant work environment, while fully harnessing the abilities
of every employee. At Hitachi, we try to make full use of diverse humanresources and to reduce long working hours to improve work efficiency
and communications. We have also established systems that combine
work with child rearing or nursing care, and have been striving in eachbusiness group to create an atmosphere where these systems can beeasily used. As a result of our efforts to change our way of working—byreducing overtime and encouraging employees to take all vacations—wereduced the statistics for long working hours by half compared with theprevious year. In employee surveys, the percentage of those who feelthat they have too much work has also decreased.
To emphasize diversity as well as further enhance our organizational
strength, we will continue to promote business innovation and to reform
employees’ awareness of the way they work.

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Hitachi:
Living Together
with Society

Employees: The Key
to Hitachi’s Future
http://www.hitachi.com/csr/

29

A Safe,
Pleasant Workplace
Our wide range of policies,
designed to make work easierfor employees, cover workplacesafety and health management
Employee Health and Safety
From many years of safeguarding employee safety andimproving the work environment, we have acquired in-depth

Hitachi Global Storage Technologies (Thailand)(Above) Members of the worker safety and health team(Below, left) On-site interviews conducted by team members(Below, right) On-site conﬁrmation of safety and healthexpertise on safety and health. We then apply this expertiseto everyday operations, including health management, where

Policies range from monitoring chemicals and machinery in

employees are given guidance based on regular medical

factories to managing hygiene in dormitories and cafeterias

check-ups with company physicians.

at factory locations. We are ensuring safer environments forworkers both on the job and in private life. Work safety and

Trends in the Occupational Accident Rate
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0

health teams include employees and experts who receive
individual guidance and Internet-based training. They work
together to improve their safety knowledge, through electronic
discussions or via telephone, and through outside courses.
As a result, Hitachi GST currently has OHSAS 18001†1 certification at 10 global sites.
All industries
Manufacturing industries
Electrical machinery sector
Hitachi, Ltd.

2004

2005

2006

2007

Ensuring Better Work Hours

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

To improve productivity and operational efficiency, we return tothe basics in our reviews of how managers and other employees work. We encourage employees to reduce overtime and

Safety Policies ofHitachi Global Storage Technologies

take annual holidays. In this way, we try to ensure appropriate

Hitachi Global Storage Technologies (Hitachi GST) develops

ance, which ultimately strengthens them and the organizationand implements worker safety and health policies, part of anas a whole.

work hours and help employees maintain a good work-life bal-action plan for all of its employees worldwide.
Programs are produced by an independent in-house teamthat takes into account divisional and regional effectiveness.

Training forStrengthening Communication Skills
To revitalize workplace communications, we started a training
program in 2008 for managers to strengthen their communication skills. To promote diversity and good interpersonal
relations based on trust—as well as to achieve organizational
goals—we stress respect for individuality and differencesof opinion and culture, while seeking a full consensus. The
hands-on training during the two-day program focuses oncommunication skills that are the basis for all interactive skills:
active listening, essential for mutual understanding; and assertion, which allows people—after opinions and ideas are
expressed—to reach a conclusion that all parties can accept.
†1 OHSAS 18001
OHSAS (Occupational Health and Safety Assessment Series) 18001 is a certification based on a setof regulations and procedures for managing and controlling occupational health and safety risks.

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

30

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Hitachi:
Living Together
with Society

A Safe, Pleasant Workplace
http://www.hitachi.com/csr/

Collaborative Creation
with Suppliers

suppliers to the number of suppliers whose self-evaluation
results we have monitored using the guidebook. We will also
start monitoring suppliers to other group companies to promote CSR throughout our supply chain.
Guidelines for Procurement Activities (excerpt)

Working with suppliers to promote
CSR through guideline formulation,
active communication throughsurveys, and information sharing
Formulation of Supplier Guidelines
Hitachi, Ltd. formulates and publishes the Hitachi Group
Supply-Chain CSR Deployment Guidebook,†1 conforming
to the guidelines of the Japan Electronics and Information
Technology Industries Association (JEITA). We have asked our

2. Hitachi shall maintain proper partnerships, mutual understanding,and reliable relationships with suppliers with a view to the longterm results.
3. Hitachi develops suppliers to maintain competitiveness from aworldwide point of view.
4. Through a designated selection process, suppliers shall be evaluated by product quality, reliability, delivery, price, suppliers’ business stability, technical development ability, fair and transparent
information release, compliance with societies’ rules, regulation
compliance, respect for human rights, elimination of discrimination in respect of employment and occupation, elimination of all
forms of forced and compulsory labor, environmental preservation activities, social contributions, good working environment,
and recognition of social responsibilities with business partners.
Revised in 2009

suppliers to use this guidebook for self-evaluations, a processthat allows us to deepen understanding and communication
for CSR. Also, in line with the United Nations Global Compact,

Results of Surveys Conducted to Promote CSR among Suppliers

we revised our Hitachi Guidelines for Procurement Activities,

Maximum score for each category: 5 points

effective June 2009.

Human rights/
fair labor practices
3.4

Working with Suppliers
to Promote CSR Activities

Social contributions
2.9

Safety and health
3.8

In fiscal 2008, we conducted surveys with more than 100 of
Hitachi, Ltd.’s main suppliers, analyzed the results and provided them with feedback. The results showed that—comparedwith other categories, such as product quality and safety, andthe environment—more attention needs to be paid to human

Information security
3.9

Environment
3.8

Product quality and safety
4.0

Fair trade and ethics
3.3

rights, fair labor practices, fair trade and ethics, and social
contributions. In this way, we are helping our suppliers tounderstand and improve their own performance. In addition,
we are building a database of the survey results that will beshared throughout the Hitachi Group.
In fiscal 2009, we will add approximately 300 more

topics†1 Hitachi Group Supply-Chain CSR Deployment Guidebook
http://www.hitachi.com/ICSFiles/afieldfile/2009/03/12/SC_CSR_E.pdf
Guidelines for Procurement Activities
Green Procurement Guidelines
http://www.hitachi.com/environment/library/pdf/green_en.pdf

Green Procurement Overseas

Participants at the North American Procurement Conference

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

Hitachi:
Living Together
with Society

Taking advantage of regular procurement
division meetings, we are training our procurement managers outside Japan toimplement the Group’s green procurement
policies. In April 2008, a North American
Procurement Conference was held in
Dallas, Texas, where chemical substanceregulations—an issue for corporate procurement divisions worldwide—were discussed. European companies have led theway, as exemplified by the REACH regulation. However, North American companies

Collaborative Creation
with Suppliers
http://www.hitachi.com/csr/

are getting more involved in managing
chemical substances in products, while
maintaining relations with suppliers.
Participants receive more comprehensive information about environmental policies from the perspective of procurement
management. In a practical sense, conferences are also an opportunity to explain
registering and managing information on
chemical substances using our Integrated
Management System for Chemical Substances Contained in Products.

31

Company Profile

Hitachi Group Profile

Corporate Name: Hitachi, Ltd.

Hitachi, Ltd. and the Hitachi Group make up a corporate group

Incorporated: February 1, 1920 (founded in 1910)

consisting of 1,110 companies: 403 consolidated subsidiaries

Head Office:within Japan and 540 outside Japan, as well as 77 equity-

1–6–6 Marunouchi, Chiyoda-ku, Tokyo 100-8280, Japanmethod affiliates in Japan and 89 outside Japan. For business

Representative:

activities, there are seven business units, as indicated on the

Takashi Kawamura, Chairman, President

next page, with total revenues of about 10 trillion yen. The

and Chief Executive Officer

Group employs about 400,000 employees.

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

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

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

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

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

Economic Performance
As of March 31, 2009

Period: Fiscal year ending March 31, 2009 (consolidated basis)

Common Stock: 282,033 million yen

Revenues:

Number of employees (unconsolidated basis): 40,549

10,000.3 billion yen (89% compared with the previous year)

Number of employees (consolidated basis): 400,129

Operating income:Number of consolidated subsidiaries:

127.1 billion yen (37% compared with the previous year)

943 (Japan: 403, outside Japan: 540)

Capital investment:

Number of equity-method affiliates:

788.4 billion yen (81% compared with the previous year)

166 (Japan: 77, outside Japan: 89)

R&D expenditure:416.5 billion yen (97% compared with the previous year)
Overseas output as a percentage of consolidated net sales: 24%
See Web site for economic performance reports.

http://www.hitachi.com/IR-e/
Financial Results (consolidated basis)
Revenues and Operating Income
Revenues( billions of yen )12,000

Revenues by Industry Segment in Fiscal 2008 (billions of yen)
Operating income( billions of yen )Revenues
Operating income

11,226.7
10,247.9

10,0009,027.0

10,000.3

9,464.8

800

6,000

600

279.0

345.5
182.5

0

2004

Hitachi Group
Corporate Social Responsibility
Report Digest 2009

2005

2006

Company Profile

127.1
2007

Information &Telecommunication
Systems
2,594.4 (23%)

High Functional Materials &Components
1,556.8 (14%)
Electronic Devices
1,151.0 (10%)

400

256.0

2,000

Financial Services
412.0 (4%)

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

1,000

8,000

4,000

32

1,200

2008 ( FY )http://www.hitachi.com/csr/

200

Digital Media &Consumer Products
1,261.5 (11%)

Power & Industrial Systems
3,310.5 (29%)

0Total Sales by Industry: 11,376 billion yen
Consolidated Net Sales: 10,000 billion yen

Major Fields of Business and Products
Information & Telecommunication Systems

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

Large disk array
subsystem

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

Electronic Devices

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

Hitachi Medical’s
superconducting
high-field
open MRI machine

Hitachi High-Technologies’
scanning electron microscope

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

Power & Industrial Systems

Monorail* in Dubai, UAE

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

Hitachi Construction
Machinery’s
hydraulic excavator

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

Digital Media & Consumer Products

UT (Ultra Thin) LCD TVs

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

Hitachi Appliances’
Drum-type washer-dryer

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

High Functional Materials & Components

Hitachi Chemical’s
Adhesive films
for display

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

Hitachi Metal’s
neodymium magnet
NEOMAX®

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

Logistics, Services & Others

Financial Services

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

Multifunctional IC card andelectronic toll collection auto card
Leasing, loan guarantees, insurance services
Hitachi Capital Corporation, Hitachi Insurance Services, Ltd.

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

Hitachi Group Corporate Social Responsibility Report 2009 Digest

Inquiries:

Hitachi, Ltd.
CSR Promotion Department, Corporate Communications Division (For inquiries on this report or CSR activities overall )1-6-6 Marunouchi, Chiyoda-ku, Tokyo, 100-8280, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4564-1454 http://www.hitachi.com/csr/

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

Printed with 100%vegetable oil ink
containing no VOC(volatile organic
compounds)

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

ZZ-E0222009.07

Hitachi Group CSR Report 2009 Digest

Request for Cooperation by Questionnaire
What were your impressions when reading the report on theContact:

Hitachi Group’s CSR activities, Hitachi Group CSR Report

CSR Promotion Department
Corporate Communications Division2009 Digest? Please answer the questionnaire on the other

Hitachi, Ltd.

side of this page. We consider readers’ opinions very impor-

1-6-6 Marunouchi, Chiyoda-ku, Tokyo 100-8280 Japan
Tel: +81-3-3258-1111 Fax: +81-3-4564-1454
http://www.hitachi.com/csr/

tant and want to ensure that this feedback is reflected in our
various CSR activities.

Results of Responses to Questionnaire on Hitachi Group CSR Report 2008 (Total respondents: 51)
CSR Report 2008
Low

Too little

Inadequate

Hard to read6%

2%

Too much
2%
Average

6%
Appropriate

40%

14%

80%

Average

Average

43%
51%

58%

Comprehensibility

VolumeEasy to read

ArticlesCSR Activities
Compliance 6%

65%
ExcellentHigh

LayoutBreakdown of Responses

1% Employment environment

Employment
environment

Other

Technology /quality

Customer satisfaction
improvement

Compliance
11%

Environmental
protection

33%

38%
21%

Technology /quality9%11%Socialcontribution

Student

17%

Social contribution

Areas of Excellence

13%
6%
12%

Supplier
49%

22%
18%

23%

NPO/NGO
23%

Environmental
protection

Customer satisfaction
improvement

Shareholder/investor 4%
Hitachi Group employee/family member 2%

14%

Customer

Areas for Further Improvement

Main Feedback and Our Responses
PraiseSuggestions

Our Responses• Bearing in mind that the number of pages
has been reduced, I think it’s very well put
together. For further details, you can consult
the PDF file.
• The business areas Hitachi is focusing on
are outlined with the environment as themain theme, which made it easy for me tounderstand the connection to social issues.
• The good balance between articles, charts/
tables, and photographs and the opinions ofvarious stakeholders and staff participatingin activities made it easy to read.

• I would like Hitachi to show the process of
selecting important social issues.
• For a global corporation, there are too few
case studies of activities outside Japan.
• There is not enough data or content about
policies regarding the main theme of theenvironment.

• We have now outlined the evaluation andprocess for determining the important social
issues for Hitachi.
• To incorporate an objective viewpoint, we
conducted more dialogues with a range ofstakeholders.
• We increased the number of case studies ofactivities outside Japan.
• We have compiled details of activities
and data in the environmental field, inwhich readers have a particular interest,in the separately published Environmental
Sustainability Report.

Please answer the questionnaire overleaf

Questionnaire on Hitachi Group CSR Report 2009 Digest
Please complete the questionnaire and mail or fax it to the address below

CSR Promotion Department, Hitachi, Ltd.
1-6-6 Marunouchi, Chiyoda-ku, Tokyo 100-8280 Japan

Fax: +81-3-4564-1454
Q1. What were your impressions of Hitachi Group CSR Report 2009 Digest?
(Please select one only in each of the following)High(1) Comprehensibility
Too much(2) Volume
Easy to read(3) Layout
Excellent(4) Articles• Please explain the reasons for your selections

Average
Appropriate
Average
Average

Low
Too little
Hard to read
Inadequate

Q2. Which articles in the report did you find valuable? (You may select more than one)
Message from the CEO

Hitachi’s CSR Vision

Highlights 2009
Hitachi’s Environmental Vision
Securing a Stable Electric Power Supply and Reducing CO2 Emissions
Environmental Management in Monozukuri
Extending Our Collaborative Projects Overseas

Global Warming Prevention toward 2025
Contributing to Water Treatment Operations
Environmental Activity Topics

CSR Management
CSR Promotion Activities

Respect for Human Rights

Living Together with Society
Improving Monozukuri and Service
Employees: The Key to Hitachi’s Future

Working in Harmony with Local Communities
A Safe, Pleasant Workplace
Collaborative Creation with Suppliers

Compliance and Risk Management

Other
Company Profile• If any of the above articles particularly interested you, please explain why

Q3. What is your opinion of the Hitachi Group’s CSR activities and initiatives?
(You may select more than one in each of the following)
Compliance activities
Technology/quality(1) Areas of Excellence
Social contribution activities
Employment environment
Other ()
(2) Areas for Further Improvement
Compliance activities
Technology/quality
Social contribution activities
Employment environment
Other ()• Please write below any other comments you have regarding the Hitachi Group’s CSR activities

Customer satisfaction activities
Environmental protection activities
Customer satisfaction activities
Environmental protection activities

Q4. Which of the following best describes you or your relationship to Hitachi? (Please select one only)
Customer
Shareholder/investor
Research/education institution employee
Resident near Hitachi Group facility

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

Q5. How did you find out about this CSR report? (Please select one only)
Newspaper
Other (

Magazine

Web site

SeminarExhibition

From a Hitachi employee)

Q6. Please write below any other comments or requests you have regarding the Hitachi Group CSR Reportor the Group’s CSR activities and initiatives

Thank you for your cooperation
We will use your feedback to improve the Hitachi Group CSR Report and our CSR activities)