Hitachi Sustainability Report 2018
Fiscal 2017 Results

Contents

Introduction

Management Approach

Activities

Performance Data

Contents

Contents
Introduction02

Activities38

How to Use This Report

02

Corporate Governance

Editorial Policy

02

Hitachi Group ProfileManagement Approach

04–05

06

Leadership07–08
CEO’s Message

07

Executive Officer’s Message: CSR and the Environment

08

Recognition of Social Responsibility

09–33

39–51

Customers (Consumer Issues)

79–86

Pursuing Management Efficiency and Transparency

40

Pursuing Customer Satisfaction

80

Sharing the Hitachi Group Identity

45

Ensuring Accessibility to Products and Services

82

Advancing Risk Management on Multiple Fronts

48

Ensuring Thorough Management of Quality and Safety

84

Human Rights

52–56
53

Promoting Sustainable Community Involvement

Respect for Workers’ Rights

56

and Development

Labor Practices

57–70

Advancing Our Environmental Vision and Long-Term

60

Environmental Targets

92

65

Managing Environmental Risks and Opportunities

96

Continuous Enhancement of Environmental Governance

100

The Key Social Challenges Hitachi Faces

13

A Strategy for Growing Together with Our Global

Our Business Units and the SDGs

16

Human Capital

Innovation Management

21

Review and Improvement of CSR Activities
Enhancing CSR Management

68

Fair Operating Practices

34–37

Environment91–127

58

Promoting Occupational Health and Safety

28

Promoting the Environmental Action Plan (Metrics and Targets) 111

71–78

Performance Data

Promoting Work Practices in Line with International
Ethics Codes

72

Engaging in Responsible Procurement

74

35

1

128

Indicators and Data

129–132

Main Assessments and Awards

133–134

Independent AssuranceHitachi Sustainability Repor t 2018

88

Promoting Diversity and Inclusion

10Part in Initiatives

87–90

Achieving a Fair and Equitable Work Environment
Realizing Sustainable, Innovative Management

Understanding Issues Through Dialogue and Taking

Community Involvement and Development

Respect for Human Rights Throughout the Value Chain

135

Introduction

Contents

Management Approach

Activities

Performance Data

Introduction

How to Use This Report
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Contents

Introduction

Management Approach

Activities

Performance Data

Contents

Introduction

Management Approach

Activities

Performance Data

Editorial Policy
Basic Concept
We are continuously improving our CSR activities and have

What This Report Covers (Boundary of Reporting)identified nine key themes for our CSR management frame-

Period:The main period covered is fiscal 2017 (April 1, 2017, to March 31, 2018)

work: (1) recognition of social responsibility, (2) corporate gov-

Companies:

1,287 companies, namely Hitachi, Ltd. and 1,286 consolidated subsidiaries (including 407 equity-method associates andjoint ventures)

Boundary of Data:

Financial data: 1,287 companies, namely Hitachi, Ltd. and 1,286 consolidated subsidiaries (including 407 equity-method
associates and joint ventures)

ernance, (3) human rights, (4) labor practices, (5) environment,(6) fair operating practices, (7) customers (consumer issues),(8) community involvement and development, and (9) review

Social data:and improvement of CSR activities.

Environmental 880 companies, namely Hitachi, Ltd. and 879 consolidated subsidiaries. However, for environmental
data:
performance data associated with Hitachi’s business operations, Hitachi, Ltd. and consolidated subsidiaries
whose environmental load comprises 90% of the total (based on Hitachi calculations) are included.

With reference to these nine key themes, the Hitachi
Sustainability Report 2018 details the social and environmental
issues that are vital to the sustainability of our operations andsociety, presenting our stance and the activities undertaken in
fiscal 2017.
Inasmuch as the report is a tool with which we engage with
our stakeholders through honest and transparent disclosures

Boundary of data indicated under each indicator

Reporting Cycle:

Published every year as an annual report

Date Published:

October 2018

Notes:• The data for each fiscal year are the results according to the boundary of data in that fiscal year.
• The base fiscal year data has been revised to match the boundary of data for fiscal 2017.

of information, it contains our basic policies, promotion systems, key performance indicators, and specific measures for
our CSR initiatives in line with the disclosure requirements of
the GRI Sustainability Reporting Standards (GRI Standards).

Hitachi Sustainability Repor t 20182

Contents

Introduction

Management Approach

Activities

Performance Data

Introduction[Symbol Marks Used in This Report]

Independent Assurance

was carried out in accordance with the International Standard* Technical terms, proper nouns, tables, diagrams, etc. requir-

To enhance the credibility of this report, we have engagedon Assurance Engagement (ISAE) 3000 and 3410.

ing explanation

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

Performance indicators for fiscal 2017 that have beenenvironmental and social performance indicators. This assurance

assured are marked withFinancial and Non-Financial Information Reports on Hitachi’s Value Creation

Financial Information Reports

in the report.

[Hitachi References in This Report]
Hitachi, Ltd.: Information on or initiatives of Hitachi, Ltd.
Hitachi and the Hitachi Group: Information on or initiatives of all
Group companies in and outside Japan

Hitachi Integrated Report 2018Year ended March 31, 2018

[Key Guidelines Referred to in Preparing This Report]• GRI Standards, Global Reporting Initiative• Environmental Reporting Guidelines (2012 version, 2018
version), Ministry of the Environment, Japan

Disclosure of Financial and Non-Financial
Information
Hitachi, following closely the deliberations of the European
Union (EU) and the International Integrated Reporting Council(IIRC) about non-financial disclosure, presents information tomatch the needs of stakeholders reading this report.

Hitachi Integrated Report 2018 (To be published late October in 2018)

Web Investor Relations
http://www.hitachi.com/IR-e/Note: Information about Hitachi, Ltd. is also disclosed in the Annual Securities Report and theReport on the 149th Business Term.

Non-Financial Information Reports
The Hitachi Sustainability Report 2018 provides non-financial information to investors, auditors, and CSR experts in an easily searchable, interactive PDF format (A4,
137 pages).
The CSR website contains not only the contents of this report but also news releases to provide up-to-date information to our diverse stakeholders.

Since the 2016 edition, the Hitachi Integrated Report haspresented both financial and non-financial information

Hitachi Sustainability Report 2018
Fiscal 2017 Results

showing how Hitachi is striving to create value. The Hitachi
Sustainability Report continues to serve as a comprehensive
tool providing detailed non-financial information.
Web Sustainability
http://www.hitachi.com/sustainability/

Hitachi Sustainability Report 2018

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

Hitachi Sustainability Repor t 20183

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

Web Global Community Relations andActivities (Social Contribution Activities)
http://www.hitachi.com/sustainability/sc/

Introduction

Contents

Management Approach

Activities

Performance Data

Introduction

Hitachi Group Profile
Company Profile (as of March 31, 2018)

Corporate name

Hitachi, Ltd.

Incorporated

February 1, 1920 (founded in 1910)

Head office

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

Representative

Toshiaki Higashihara
Representative Executive Officer,
President, and CEO

Consolidated Financial Highlights for Fiscal 2017,

Revenue and Share by Segment

Based on the International Financial Reporting Standards (IFRS)(Consolidated for fiscal 2017, based on IFRS)Information & Telecommunication Systems
2,008.9 billion yen (20%)

Revenue

9,368.6 billion yen(up 2%, year on year)

EBIT*1644.2 billion yen (up 36%)

Income from continuing
operations, before income taxes

638.6 billion yen (up 36%)

Net income attributable to
Hitachi, Ltd. stockholders

362.9 billion yen (up 57%)

Others
557.7 billion yen (6%)
Smart Life & Ecofriendly Systems
540.1 billion yen (5%)

Capital458.79 billion yen

Capital expenditure*2

374.9 billion yen (down 1%)

Number of employees

34,925 (unconsolidated basis)

R&D expenditure332.9 billion yen (up 3%)

307,275 (consolidated basis)

Total assets

10,106.6 billion yen

Number of consolidated
subsidiaries (including
variable interest entities)

Automotive Systems
1,001.0 billion yen (10%)

Subtotal of Revenue
by Segment

High Functional Materials & Components
1,657.5 billion yen (16%)

Consolidated Revenue

Construction Machinery
959.1 billion yen (9%)

879 (Japan: 202, outside of Japan: 677)

9,368.6 billion yen

Electronic Systems & Equipment
1,086.5 billion yen (11%)*1 EBIT: Income from continuing operations before income tax, less interest income, plus
interest charges.
*2 Since fiscal 2015, the amount of investment in leased assets that fall under the heading offinance and leases included in conventional capital expenditure are deducted from capital
expenditure for disclosure.
Note: Hitachi’s consolidated financial statement is prepared based on the International
Financial Reporting Standards (IFRS).

Number of407
equity-method associates
and joint ventures

10,186.1 billion yen

Social Infrastructure & Industrial Systems
2,375.0 billion yen (23%)

Revenue and Share by Region(Consolidated for fiscal 2017, based on IFRS)Revenue and Net Income Attributable to Hitachi, Ltd. Stockholders(billion yen)
12,000(billion yen)
1,200

10,034.3

9,774.9

9,666.4

9,368.6

9,162.2

10,000

1,000

8,000
6,000

800

413.8

4,000

172.1

400

231.2

2,000
0
Revenue (left scale)

200

2013

2014

2015

2016

2017

Net income attributable to Hitachi, Ltd. stockholders (right scale)502.3 billion yen (5%)
106
12,000

Asia
Number of Companies:
Number of Employees:

2,081.1 billion yen (22%)
332
88,000EuropeNumber of Companies:
Number of Employees:

964.4 billion yen (10%)
139
16,000

600

362.9
217.4

Other Areas
Number of Companies:
Number of Employees:

(FY)

0

North America
1,177.5 billion yen (13%)
Number of Companies:
100
Number of Employees:
21,000Japan
4,643.0 billion yen (50%)
Number of Companies:
203*1
Number of Employees:
168,000*1 Hitachi, Ltd. and 202 consolidated subsidiaries.

Hitachi Sustainability Repor t 2018

4

Revenue by Region
Japan: 4,643.0 billion yen
Overseas: 4,725.5 billion yen

Contents

Introduction

Management Approach

Activities

Performance Data

Introduction

Key Business Segments
Information & Telecommunication Systems
Hitachi provides IT services that address customers’ diverse
needs by combining Hitachi’s extensive expertise in a diverse
range of business fields, including financial services, withadvanced information technology. Our services cover theentire life cycle of systems, ranging from consulting to system
integration, operation, maintenance, and other support.
Main Products and Services
Systems integration, consulting, cloud services, servers, storage, software,
telecommunications & networks, ATMs
Principal Consolidated Subsidiaries (as of March 31, 2018)
Hitachi Information & Telecommunication Engineering, Ltd., Hitachi-Omron
Terminal Solutions, Corp., Hitachi Computer Products (America), Inc., Hitachi
Financial Equipment System (Shenzhen) Co., Ltd., Hitachi Solutions, Ltd.,
Hitachi Systems, Ltd., Hitachi Consulting Corporation, Hitachi Information &Telecommunication Systems Global Holding Corporation,*1 Hitachi Payment
Services Pvt. Ltd., Hitachi Vantara Corporation*1 Hitachi Information & Telecommunication Systems Global Holding Corporation changed its
company name to Hitachi Global Digital Holdings Corporation on April 1, 2018.

Social Infrastructure & Industrial Systems
Hitachi has a long and proven track record of high reliability insupporting people’s daily lives through such products andservices as rolling stock and train management systems, power
plants and transmission and distribution systems, elevatorsand escalators, and water solutions. It also offers industrial
solutions and equipment to enhance the sophistication of
production facilities. Hitachi utilizes digital technologies toprovide optimum solutions in addressing the issues anddiversifying needs of customers worldwide.
Main Products and Services
Manufacturing and logistics systems; water treatment systems; industrial
machinery; elevators; escalators; railway systems; nuclear power generation
systems; renewable energy power generation systems; power transmission anddistribution systems
Principal Consolidated Subsidiaries (as of March 31, 2018)
Hitachi-GE Nuclear Energy, Ltd., Hitachi Industrial Equipment Systems Co.,
Ltd., Hitachi Elevator (China) Co., Ltd., Hitachi Building Systems Co., Ltd.,
Hitachi Industry & Control Solutions, Ltd., Hitachi Plant Construction, Ltd.,
Hitachi Plant Services Co., Ltd., Hitachi Power Solutions Co., Ltd., Hitachi RailEurope, Ltd., Horizon Nuclear Power, Ltd., Sullair US Purchaser, Inc.

Hitachi Sustainability Repor t 2018

Electronic Systems & Equipment
Drawing on the Hitachi Group’s advanced technologies, Hitachi
provides systems supporting the information society, including
semiconductor manufacturing equipment, measurement andanalysis equipment, broadcasting and video systems, wirelesscommunications and information systems, and healthcare
solutions that support healthy lifestyles.
Main Products and Services
Semiconductor manufacturing equipment, measurement and analysis equipment,
advanced industrial products, medical equipment
Principal Consolidated Subsidiaries (as of March 31, 2018)
Hitachi High-Technologies Corporation, Hitachi Kokusai Electric Inc.*1*1 Hitachi, Ltd. transferred all shares it held of Hitachi Kokusai Electric Inc. on May 31, 2018,
and then repurchased a portion of the shares on June 4, turning the company into an
equity-method associate.

Construction Machinery
Leveraging decades of technological expertise and know-how,
Hitachi offers solutions that address the needs of a broad range
of industries, including civil engineering and construction,building and structural demolition, and mining and excavation.
Hitachi also handles the sale, servicing, and maintenance of
hydraulic excavators and other construction machinery toprovide integrated solutions globally.
Main Products and Services
Hydraulic excavators, wheel loaders, mining machinery
Principal Consolidated Subsidiaries (as of March 31, 2018)
Hitachi Construction Machinery Co., Ltd.

High Functional Materials & Components
Hitachi draws on its wealth of technological expertise andknow-how to provide a variety of materials and components—
such as semiconductor- and display-related materials, synthetic
resin products, specialty steels, magnetic materials, casting
components, and wires and cables—that enable advanced
functions in products for such sectors as autos, IT and consumer
electronics, and industrial and social infrastructure. Business
operations are focused in Asia, North America, and Europe.

5

Main Products and Services
Semiconductor- and display-related materials, printed wiring board and relatedmaterials, automotive parts, energy storage devices, specialty steel products,
magnetic materials, casting components, wires and cables
Principal Consolidated Subsidiaries (as of March 31, 2018)
Hitachi Chemical Co., Ltd., Hitachi Metals, Ltd.

Automotive Systems
To contribute to the realization of an affluent society by creating
new value-added systems, products, and services throughthe harmonization of people, vehicles, and society, Hitachi isaccelerating its technological development in the fields of environment and safety. We will further develop our Advanced
Vehicle Control System, integrating our safety and information
technologies with the Hitachi Group’s social infrastructureservices to meet society’s needs for environmental conservation,
accident elimination, and traffic congestion reduction.
Main Products and Services
Engine management systems, electric powertrain systems, drive control
systems, car information systems
Principal Consolidated Subsidiaries (as of March 31, 2018)
Clarion Co., Ltd., Hitachi Automotive Systems, Ltd., Hitachi Automotive Systems
Americas, Inc.

Smart Life & Ecofriendly Systems
Hitachi provides solutions and services aimed at resolving
lifestyle issues through its home appliances, lighting and housing
equipment, and refrigerating and air-conditioning. Hitachi also
contributes to the resolution of social issues by helping reduce
environmental impact and making an ongoing effort to improve
products’ energy efficiency.
Main Products and Services
Refrigerators, washing machines, vacuum cleaners, room air conditioners,
air-conditioning equipment
Principal Consolidated Subsidiaries (as of March 31, 2018)
Hitachi Appliances, Inc., Hitachi Consumer Products (Thailand), Ltd., Hitachi
Consumer Marketing, Inc.
Note: We conduct a broad range of business activities from product development to production,
sales, and servicing in eight segments in all, including “Others,” added to the above.

Contents

Introduction

Management Approach
Management Approach

Management Approach06

Leadership07–08
CEO’s Message

07

Executive Officer’s Message: CSR and the Environment

08

Recognition of Social Responsibility

09–33

Realizing Sustainable, Innovative Management

10

The Key Social Challenges Hitachi Faces

13

Our Business Units and the SDGs

16

Innovation Management

21

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

Hitachi Sustainability Repor t 2018

28
34–37
35

6

Activities

Performance Data

Contents

Introduction

Management Approach
Leadership

Activities

Performance Data

CEO’s Message

Leadership
CEO’s Message

Social Innovations to Ensure
the Sustainability of Society

we will strive to create more energy-efficient, value-ladensolutions to further reduce CO2 emissions throughout the value
chain of products and services.
A key component of advancing sustainable management israising awareness of each and every employee. In April 2018,
therefore, we revised the Hitachi Group Codes of Conduct that
Even as remarkable advances in digitization have transformed

Business by combining various digital technologies and toprovides guidelines for the decisions to be made and action to

our society and the structure of industry in recent years,

create economic, social, and environmental value. We also

be taken by both management and employees so they may

many of the challenges confronting our world today remain

strive to enhance the robustness of our operations and tobetter contribute to the achievement of the SDGs and theunresolved in such areas as energy and the environment,

reduce their negative social and environmental impact.

resolution of issues faced by global society.

water scarcity, rapid urbanization, insufficient infrastructure,

In fiscal 2017, the Executive Sustainability Committee, which

Hitachi will continue to work toward a sustainable society inand security issues. In the light of the accelerating global drive

I chair, examined the opportunities and risks presented by thewhich all people can live in safety, security, and comfort by

to ensure the sustainability of our society, private companies

17 Sustainable Development Goals (SDGs), a task that

pursuing management in conformity with the ESG criteria forwill need to play an increasingly important role. Hitachi, as aenabled us to better understand the contributions our businessthe “environmental,” “social,” and “governance” and bycompany with operations worldwide, surely has a responsibility

activities are making to the achievement of each goal. Given

advancing collaborative creation with our customers andto contribute to this effort.

the broad range of businesses in which we are engaged,

business partners.

Hitachi’s Corporate Credo is to contribute to society throughincluding “power and energy,” “industry, distribution, andthe development of superior, original technology and products.

water,” “urban,” and “finance, social, and healthcare,” I believe

This has remained at the heart of our operations since ourthat we are uniquely positioned to make wide-ranging contri-

founding and informs our current Hitachi Group Identity, whichbutions to the achievement of the SDGs.

Toshiaki Higashihara

is to become a company that “delivers innovations that answer

Of these social challenges, Goal 13—which calls for urgent

society’s challenges.” Our management strategy seeks to offer

action to combat climate change—is a particularly important

President & CEO

innovative solutions and products in our Social Innovation

management issue for us. For our customers and society,Hitachi, Ltd.

Hitachi Sustainability Repor t 20187

Introduction

Contents

Management Approach
Leadership

Activities

Performance Data

Executive Officer’s Message: CSR and the Environment

Executive Officer’s Message:
CSR and the Environment

recognize the importance of sustainability as a matter of course.

2018 we endorsed the recommendations of the Task Force on

In fiscal 2017, Hitachi, Ltd. formed an Executive Sustainability

Climate-related Financial Disclosures, and the following month

Committee chaired by the president to develop policies address-

we joined the Japan Climate Initiative, which brings corporations

ing the social issues that the SDGs represent as part of Hitachi’sand public entities together to address this vital issue.

long-term business strategy. Identifying the various opportunities

Osamu Naito
Hitachi, Ltd.
Vice President and Executive Officer
Head of Executive Officer Support
and General Manager ofGovernment & External
Relations Group

Sustainable Development for Businessand Society

We consider respect for human rights the highest priority for

and risks of our businesses, we summarized our planned contri-a global corporation. In accordance with the Hitachi Groupbutions to achieving the SDGs in a report entitled Onward to

Human Rights Policy that was adopted in 2013, we have2030: Hitachi’s Road to Sustainability. Building on this initiative,

begun human rights due diligence and promote various initia-

our division responsible for CSR, the environment, and social

tives to ensure respect for the human rights of all stakeholders

contribution—which I manage—was renamed the Sustainability

across our entire value chain.

Promotion Division in April 2018, and has since pursued an even

Developing human capital has been part of Hitachi’s mission

closer integration of sustainability with business strategy even as

since its founding, and we continue to collaborate with a wide

we meet our responsibilities as a global business.

range of stakeholders on fostering the next generation andAround the world, the push to reduce carbon emissions andeven fully decarbonize is also gathering momentum. Climate

supporting local communities.
Moving forward, we will continue to pursue the sustainablechange is a key management issue for Hitachi—a challenge

development of society and our company through dialoguethat we must actively contribute to resolving through innovation

with and proactive information disclosure to our stakeholders.

and business solutions. Announced in fiscal 2016, Hitachi

In that spirit, I urge all stakeholders to read this report for more

Since the United Nations’ announcement of the Sustainable

Environmental Innovation 2050 includes the long-term environ-details about our activities in relation to ESG.

Development Goals (SDGs) in 2015, movements aroundmental target of reducing CO2 emissions throughout our global

social sustainability have accelerated worldwide. Corporations

value chain 80% by fiscal 2050 (compared to fiscal 2010

are no longer judged by their finances alone, but closely

levels), along with an interim target of a 50% reduction by 2030.

scrutinized in the three areas of “environmental,” “social,” and“governance” (ESG), and management is expected to

Hitachi Sustainability Repor t 2018

Recognizing the demand from investors and other stakeholders for information disclosure regarding climate change, in June

8

Contents

Introduction

Management Approach

Activities

Performance Data

Recognition of Social Responsibility

Hitachi’s Aims: Achieve Management That Is Ever Responsive to the Expectations of Society

Recognition ofSocialResponsibility

Hitachi Sustainability Repor t 2018

We are actively advancing activities that contribute tosustainability to meet society’s expectations based on anto the identification of social issues.
Of particular note in fiscal 2017 was the deliberation on

accurate perception of the impact of our operations on

the business risks and opportunities presented by the 17

society and our social responsibilities. We are contributing toUnited Nations Sustainable Development Goals (SDGs),

the resolution of social issues through our Social Innovation

which came into force in January 2016—paying heed, too,Business, which combines advanced IT with infrastructure

to the content of ISO 26000 and the UN Global Compact—technologies developed over many years, and are conducting

and the identification of the 11 Goals that pose the most

dialogue with all our stakeholders to identify and contribute

important social challenges for Hitachi.

9

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Realizing Sustainable, Innovative Management
Hitachi’s Approach

the next generation, we promote corporate activities informed

responsibilities as a good corporate citizen through robust,by sensitivity to the needs of a changing society. Our Mid-term

diverse governance; the pioneering spirit and strong ethical

Trends in Society and Hitachi Group Identity

Management Plan is the action plan we define to realize thestance of our employees; and operations that help address

Society is today undergoing great changes and faces a range

Hitachi Group Vision; by integrating our management andsocial issues. We operate and pursue our activities in line withof challenges, from energy and environmental issues to water

sustainability strategies, we seek to enhance the effectivenessthe Hitachi Group Codes of Conduct, the guidelines for ethicalscarcity, rapid urbanization, an aging society, insufficient infra-of this approach.

behavior and decision-making shared by all executives andstructure, and security. The Hitachi Group’s Corporate Credo is

The implementation of our plan is a way for us to fulfill our

employees of the Hitachi Group.

to contribute to society through the development of superior,original technology and products. To accomplish this mission,
we uphold the values of Harmony, Sincerity, and Pioneering

Trends in Society and Hitachi Group Identity

Spirit that comprise the Hitachi Founding Spirit. Our Group
Vision was created based on this mission and these values to
Hitachi Group Identity

express what the Hitachi Group aims to become in the future.
Together, these three elements—Mission, Values, and Vision—
make up the Hitachi Group Identity.
Based on our Group Identity, and continuously considering

Megatrends*1
Rapid urbanization
Climate change and resource scarcity
Demographic change
Shift in global economic power
Rise of technology

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

The mission that Hitachi
aspires to fulfill in society

MISSION

The values crucial to
the Hitachi Group inaccomplishing its mission

VALUES

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

Hitachi Founding Spirit:

Harmony, Sincerity, Pioneering Spirit

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

VISION

What the Hitachi Groupaims to becomein the future

Promoting material recycling

Direction of our management strategies

Rules for fair corporate behavior

Mid-term Management Plan

Hitachi Group Codes of Conduct

Business plans

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

Hitachi Sustainability Repor t 201810

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

Introduction

Contents

Management Approach

Recognition of Social Responsibility

Sustainability Strategy and Management

Activities

Performance Data

Realizing Sustainable, Innovative Management

Sustainability Management Structure

various business units and Group companies using the

In October 2013, the CSR Division and the Environmental

Sustainability Promotion Division as a secretariat. As well as

In April 2017, Hitachi, Ltd. launched the Executive Sustainability

Strategy Office at Hitachi, Ltd. merged to form the CSR andholding regular CSR Corporate Meetings with corporate-related

Committee to discuss and reach decisions on the Group’s

Environmental Strategy Division.

departments at Hitachi, Ltd., the Sustainability Promotion

Executive Sustainability Committee Initiatives

Aiming to help realize a sustainable society, in April 2017 wesustainability strategy. The committee comprises President andDivision also organized CSR Manager Meetings with the CSR

CEO Toshiaki Higashihara and other members of the Seniorcreated the Executive Sustainability Committee and reorga-

departments of business units and Group companies. In addi-

Executive Committee, along with the CEOs of various businessnized the promotion structure it heads. The committee istion, the committee held regular Regional CSR Meetings forunits (BUs).

responsible for assessing the impact that the company has onregional headquarters outside Japan to share a common
direction and promote sustainability strategy.

Each BU has assigned sustainability strategy promotionsociety and responding to stakeholder expectations by building

officers to strengthen the measures and organizations needed

long-term corporate strategies through business activities with

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

to help achieve the Sustainable Development Goals (SDGs)

a focus on environment, society, and governance, as well as

tainable growth as a global company, we conduct stakeholder

and promote sustainability. In fiscal 2017, discussions wereconventional corporate social responsibility (CSR) activities. In

dialogue on a worldwide basis in cooperation with our regional

held to deepen understanding of sustainability and the SDGs

April 2018, the CSR and Environmental Strategy Division was

headquarters and take a proactive approach to incorporating

and to clarify the relationships between our major businesses

renamed the Sustainability Promotion Division.

global social issues into our management strategy while con-and the SDGs from the standpoint of opportunities and risks.

To promote sustainability policies and activities across the

From fiscal 2018, we will pursue new business opportunities

Group, Sustainability Promotion Meetings were convened tocentered on social issues.

work with sustainability strategy promotion officers from theSustainability Strategy Promotion Structure
Chair: President & CEO

Executive Sustainability Committee

Members: Senior Executive Committee members, business unit CEOs, Hitachi, Ltd. department heads
Objective: Discuss and define sustainability strategy at management/business unit/department levels

Secretariat: Sustainability Promotion
Division
Overseas CSR/environment officers
Sustainability Promotion Meetings

Eco-Management Meetings

GlobalEnvironmental Meetings
CSR Corporate Meetings

Environmental Manager Meetings

CSR Manager Meetings

Regional Environmental Meetings

GlobalCSR Meetings

Regional CSR Meetings

Hitachi Sustainability Repor t 201811

tinuously striving to improve the quality of our management.

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Hitachi’s Social Innovation BusinessRealizing Sustainable, Innovative Management

Focus Business Domains and Key Initiatives

We work with stakeholders to recognize issues society and our

Industry/
Distribution/Water

Power/Energy

customers face, including global environment problems, andare contributing to the resolution of social issues through ourSocial Innovation Business, which combines advanced IT with
infrastructure technologies developed over many years.
In May 2016, we formulated our 2018 Mid-term Management
Plan, which will culminate in fiscal 2018. Under the plan, we
aim to become an Innovation Partner for the IoT Era centeredon our Social Innovation Business, seeking to expand the sales
ratio of frontline operations that develop and deploy services

Transition to distributed power

Use “Lumada”*1 IoT platform tosupply utilizing IT

optimize value chains for industry• Microgrid, regional energy

and distribution

management• Renewable energy

Investment Focus• Strengthening engineering

Investment Focus• Predictive maintenance• Strengthening grid and engineering• Optimized factory• Predictive maintenancemeeting the diverse needs of global society to 40% and toincrease our overseas sales ratio as a whole to 55%. With theend, we are making steady progress toward our targets.
We will expand our frontline operations by evolving andenhancing our Social Innovation Business through digital technology and promoting it overseas in the focus business

Improvement of quality of life

FinTech, My Number

in communities

Healthcare service (platform)

From rail as a service to outcome• Strengthening healthcare informatics
Investment Focus

water,” “urban,” and “finance, social, and healthcare.”• Development of urban solutions

issues with advanced network technologies that are capable ofconnecting social infrastructure, products, and people.

Investment Focus

deliverydomains of “power and energy,” “industry, distribution, andWe will continue to provide optimum solutions to society’s

Finance/Social/
Healthcare

Urban

former ratio reaching 39% and the latter 50% as of fiscal 2017

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

Social Innovation Business2018 Mid-term Management Plan
Progress of the 2018 Mid-term Management Plan

Hitachi Sustainability Repor t 2018

Activities

12

Performance Data

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

The Key Social Challenges Hitachi Faces
Hitachi’s Social Innovation Business andSustainability
In 2015, the United Nations announced 17 Sustainable
Development Goals (SDGs) to be achieved by 2030, including

By proactively responding to social issues, Hitachi contributes tothe achievement of all SDGs through its responsible corporate conduct
and its Social Innovation Business.

goals for ending poverty, fighting inequality and injustice, andtackling climate change. The SDGs are not just a blueprint but

Corporate Commitment

a comprehensive action plan for businesses, governments, andcommunities to support the shared prosperity of people andthe planet. Organizations are expected to develop long-term
frameworks and take ownership of this push for sustainability
to realize the SDGs and create a better world.
Hitachi considers responding to these challenges torealize a sustainable society and improve quality of life to be
the aim of our Social Innovation Business and a source ofsustainable growth.

Business Strategy

Accordingly, through innovative solutions and products
from our Social Innovation Business, we will strive to create
economic, social, and environmental value as part of ourmanagement strategy. We will also reduce negative social andenvironmental impacts resulting from our business and seek adeeper understanding of business risks arising from socialand environmental changes to ensure greater robustness
against them.
Along the way, in response to rising interest in corporate
ESG initiatives, we will proactively disclose information to ourstakeholders about our efforts toward achieving these SDGs.

Hitachi contributes tothe achievement of all SDGs both
directly and indirectly throughits business activities.

Hitachi Sustainability Repor t 201813

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Identifying Key Social Challenges

inclusive, safe, resilient, and sustainable (11). These are the

Dialogue on Sustainability Strategy

In fiscal 2017 Executive Sustainability Committee meetings

five SDGs best aligned with our business strategy across the

In March 2018 a European Stakeholder Dialogue on thechaired by President and CEO Toshiaki Higashihara, thefour focus business domains of our Social Innovation Business:

subject of “Hitachi’s Sustainability Strategy” was held incommittee members considered the 17 SDGs, and the“power and energy,” “industry, distribution, and water,” “urban,”Brussel, Belgium with 18 participants from international

opportunities and risks they represented, and identified theand “finance, social, and healthcare.” We will continue toorganizations, NGOs, sustainably advanced companies,

11 Goals that pose the most important social challenges forpromote our Social Innovation Business, as we believe thatand other groups. Yukiko Araki, executive general manager

Hitachi: 5 Goals where Hitachi can make significant impact

working toward these goals will provide not only growthof the Sustainability Promotion Division, spoke at the event

through its business strategy, and 6 additional Goals relevant

opportunities but also the chance to create social values

about the 11 SDGs that pose the most important social

to its corporate commitment to society, cutting across all areas

through business.

challenges for Hitachi. We received a number of construc-of business and management strategy to affect Hitachi’s verysustainability as a company.

tive comments and suggestions from attendees and will

Tackling the SDGs with Our Corporate Commitment

share them with our corporate divisions, BUs, and key

Embracing the belief that Hitachi can contribute broadly to

To meet the expectations of our stakeholders and fulfill ourGroup companies to ensure that they are reflected in our

the achievement of the SDGs through a wide range of businesssocial responsibilities, we identified six additional SDGs weinitiatives and further enhance cooperation in setting

activities, the company is also investigating options for supporting

can help achieve throughout our operations: Ensure inclusive

specific key performance indicators (KPIs).

the remaining six Goals in the short to medium term. We areand equitable quality education and promote lifelong learning

committed to supporting efforts to reach all SDGs, both

opportunities for all (Goal 4); Achieve gender equality anddirectly and indirectly, especially in terms of the interaction andempower all women and girls (5); Promote sustained, inclusive

Hitachi’s information and communication technologies could beinterdependence between them.

and sustainable economic growth, full and productive

a key driver for achieving the SDGs.

employment and decent work for all (8); Ensure sustainable

Though Hitachi is a B2B company, it needs to understand how its

Comments and Suggestions from the Stakeholder Dialogue

technologies are used by and for end users.

Tackling the SDGs with Our Business Strategy

consumption and production patterns (12); Take urgent action

To select the SDGs where Hitachi can make the greatest

to combat climate change and its impacts (13); and Strengthen

impact through its business strategy, all business units (BUs)

the means of implementation and revitalize the global partnershipand key Group companies spent nearly a year reviewing thefor sustainable development (17). Hitachi believes that activities

Hitachi must rank its target SDGs by priority and incorporate its

17 SDGs and 169 targets in light of the contributions Hitachi

to help achieve these targets also have an important impact onsustainability strategy into its global management strategy.

could make through its core business, making recommendations

sustainable management.

Further external communication is required to specifically explain

to the Executive Sustainability Committee.

Sustainability initiatives have been developed in cooperation

Hitachi identified five SDGs where it can have a significant

with divisions closely connected to sustainability issues, suchimpact: Ensure healthy lives and promote well-being for all at allas the human resources division and procurement divisionages (Goal 3); Ensure availability and sustainable management

while ensuring compliance with management policies such asof water and sanitation for all (6); Ensure access to affordable,

the Hitachi Group Codes of Conduct, the Hitachi Groupreliable, sustainable, modern energy for all (7); Build resilient

Human Rights Policy, and Hitachi Environmental Innovation

infrastructure, promote inclusive and sustainable industrialization

2050. We will make steady progress by setting specific targets

and foster innovation (9); and Make cities and human settlements

for each initiative.

Hitachi Sustainability Repor t 201814

Awareness of which SDGs a product will help achieve from theproduct planning stage makes a difference and gives Hitachi
a competitive edge.

how Hitachi’s Social Innovation Business will help achieve the SDGs.

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Road Map for Achieving the SDGs

and sustainability workshops were held for the Water, Energy

In phase 3, starting in fiscal 2018, Hitachi will seek new

Creating a sustainable society will make sustainable growth

Solutions, and Healthcare Business Units. In February 2018,business opportunities emerging from social challenges. By

possible for Hitachi too. Though we are mostly known for B2B

we held a sustainability symposium, inviting as guest speakersetting specific quantitative KPIs for social and environmental(business to business) activities, our Social Innovation Business

Mr. Toshio Arima, chairman of the board, Global Compact

values provided by our Social Innovation Business, we willis intrinsically rooted in B2S (business to society). All our

Network Japan. The symposium was attended by about 130

monitor progress to achieve further business development.

products and services are closely linked to social sustainability,

employees and directors, including President Higashihara. We

Sustainability initiatives already launched include a requirement

and we aim to establish a global position as a B2S company

also launched a sustainability newsletter in an effort to promote

to describe “factors allowing a contribution to meeting thethrough efforts to help achieve the SDGs.

awareness of SDG initiatives. In phase 2, the Sustainability

SDGs” on the internal application form for a business startup.

In fiscal 2017, Hitachi officially launched activities intended

Promotion Division worked with the planning divisions of

We are determined to reflect our sustainability initiatives in our

to make a concrete contribution toward the SDGs. In phase 1,

business units and key Group companies to clarify how theirnext Mid-term Management Plan. Hitachi believes that its

we began helping our business units and Group companies

businesses are linked to the SDGs in terms of opportunity

efforts toward achieving the SDGs and sustainability will enable

deepen their understanding of sustainability and the SDGs,

and risk.

the company to grow.

FY 2017

FY 2017

Phase 1

FY 2018 and beyond

Phase 2

Understandsustainability
and the SDGs

Increase understanding through CEO
messages, symposiums, workshops,
newsletters, and so on.

Classify the existing
businesses basedon the SDGs

Classify social value/business opportunities
and risks of existing businesses based on
the SDGs in collaboration mainly withbusiness strategy divisions in each
BU/Group company.

Phase 3
Explore new businesspossibilities based on
the motives of solvingsocial issues
Achieving a “sustainable society” (the sustainability of society) enables “Hitachi’s sustainablegrowth” (the sustainability of Hitachi). Hitachi’s
future business opportunities and growthdepend on achieving the SDGs andsustainability (solving social issues).
Therefore, apply this concept to our
medium- and long-term business strategies.

The measures will be taken in collaboration with business units, major Group companies,
corporate-related departments, and global sites (regional strategies).

Hitachi Sustainability Repor t 201815

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Our Business Units and the SDGs

Nuclear Energy Business Unit

Power Business Unit

Contributing to Effectively Using
Energy Resources and Reducing
CO2 Emissions

Japan include early restarting of nuclear power

Contributing to Sustainable Developmentwith Stable Supplies of Energy

plants and decommissioning of Fukushima

The Power Business Unit provides an array of

Daiichi Nuclear Plant, and promoting construc-power generation and transmission solutions

tion planning for Advanced Boiling Water

to companies engaged in the energy value

Reactors (ABWRs) for the United Kingdom.

chain. We are particularly focused on meetingin our people. Our current activities within

Following the Fukushima accident in 2011,

the expanding demand for renewable energy,

low social acceptance of nuclear power has

and we claim the top share of the Japanese

made it difficult to attract the next generation

market for wind power generating systems.

Atsushi Oda
Vice President and Executive Officer
CEO of Power Business Unitof engineers. In Japan’s neighbor, China,

The business environment in which wethe amount of electricity generated by nuclear

operate is undergoing a major transformation

weather conditions and a reinforced power

power is rapidly increasing. If an accident

due to climate change and the growing

grid. We will respond to such risks as delays

were to occur in a neighboring country,

demand for energy in emerging economies,in the spread of renewable energy owing to

it could have a significant impact on Japan.

and business opportunities are growing. A

lack of coordination among various systems

Hitachi’s Nuclear Energy Business Unit has

Reducing the risks requires enhancing thequalitative expansion of renewable sources inand the potential damage that power plantbeen involved in nuclear power plant con-safety of nuclear plants within Japan; working

Japan, though, will require enhanced adjust-construction may cause to the environment

struction and maintenance for many years,

with the International Atomic Energy Agency

ment mechanisms to respond to changing

by applying the technologies and knowhow

always working to push nuclear technology(IAEA) to provide information about safety

forward and cultivate key core competencies

enhancement to neighboring countries;

Hidetoshi Takehara
Vice President and Executive Officer
CEO of Nuclear Energy Business Unit

Key SDGs for Our Business Unit

developed in building and maintaining power
Key SDGs for Our Business Unit

plants. We will also advance the digitization ofsustainably maintaining the technology andpower systems using Hitachi’s IoT platform,

human resources necessary to handle inci-

Lumada, and actively offer highly reliable anddents; and continuing to build the experiencehigh-added-value solutions to our customers.
We are committed to achieving Goals 7

necessary to support these activities.

and 13 and are strengthening our partner-

We are focusing our efforts on the achieve-

ships with national and local governments,

ment of Goals 7 and 13 of the SDGs to stabiHitachi’s Wind Power Generation

lize the energy supply and address climate

System helps achieve Goals 7

electric power companies, and universities toalso contribute to the achievement of Goal

Advanced Boiling Water Reactors

change, and Goals 4, 9, and 17 to develop(ABWRs) that will help Hitachi

the nuclear industry and human resources.

17. We will adopt key performance indicators

We will continue striving to ensure that theas a way of demonstrating how much

importance of nuclear power in the optimal

Hitachi is contributing to the achievement ofcontribute to Goals 7, 9, 13, and 17.

Hitachi Sustainability Repor t 2018

mix of energy generation is recognized.

and 13.

16energy-related SDGs.

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Realizing Sustainable, Innovative Management

Industry & Distribution Business Unit

Water Business Unit

Offering Innovative Solutions toOvercome Worker Shortages

A Stable Water Supply and Sanitary
Conditions for People Worldwide

operational technology (OT), IT, and products.
The decline in the working-age population
is not just a problem for Japan but is also an

The Water Business Unit globally provides total

issue in China and Europe. In addition towater environment solutions, including criticalstreamlining and automation, the manufactur-

infrastructure for potable water, wastewatering and distribution sectors will need to diver-treatment, and recycling, to contribute to thesify their workforce. This trend represents new

resolution of water-infrastructure-related

business opportunities for us.

social issues.

Even when production is automated, there

Jun AbeVice President and Executive Officer
CEO of Industry & Distribution Business Unit

Performance Data

Recently, we have increasingly been called

Kenji Urase
Vice President and Executive Officer
CEO of Water Business Unit

are times when the skills and knowledge of

to not only build large-scale facilities and otherveteran workers are required. Our businesswater infrastructure but also meet rising opera-

risks that high-salinity wastewater generated

unit collects and digitizes the skills of expert

tional and maintenance demand to ensure safe

as a by-product of seawater desalination

workers utilizing IoT to help customers effi-

and stable supplies of water. The expertise we

can increase the burden we place on the

The Industry & Distribution Business Unit

ciently enhance the skills of their workers,

have accumulated over many years in opera-

environment, but we are developing newoffers a variety of digital solutions for thedevelop global human resources, andtional technology (OT) is a strength we cantechnologies and forging partnerships withindustrial and distribution sectors by

improve quality.

apply—along with IoT and AI—to raise thenational and local governments and otherefficiency of our desalination plants andstakeholders to reduce risk and support

carry the risk of increasing emissions ofenhance the reliability of water-supply andpeople’s lifestyles from a long-term perspective.

greenhouse gases and the generation of

sewage-treatment operations. There are

Through these activities, we aim to build aleveraging Hitachi’s strengths in

Key SDGs for Our Business Unit

Business expansion and higher production

recurring business model.

industrial waste. We will counter such risks by
optimizing production plans, improving qual-

Key SDGs for Our Business Unit

The activities of the Water Business Unit

ity, and reducing our environmental burden.

are linked directly to the achievement of Goal

Our business unit is primarily engaged in

6 and have relevance for Goals 9 and 13.

achieving Goal 9. By offering solutions not

By developing the skills of water experts,

Providing digital solutions to

only in the realm of production but also logis-

we also help achieve Goal 4. An increasing

support our customers’ businesstics and maintenance and repairs, we hope tonumber of young Hitachi employees are eager

operations and contribute to theachievement of Goal 9 (Brazing

enhance our social and environmental value,

To help achieve Goal 6, Hitachi is

to become engaged in the global water envi-

Skills Training Support System

thereby contributing to the attainment ofconstructing a desalination plantronment business, and we will expand arenas

Goals 7, 8, 12, and 13.

construction).

for Daikin Industries, Ltd.).

in the city of Basra, Iraq (underof activity for them as we pursue Hitachi’ssustainable development toward the SDGs

Hitachi Sustainability Repor t 201817

target date of 2030.

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Industrial Products Business Unit

Building Systems Business Unit

Hitachi’s Contributions to the
Achievement of the SDGs

Providing Products and Services
That Realize Safety, Security, andComfortrenewable energy, and water and sewage
treatment plants.
We believe that our products and services
can contribute to the SDGs, resolving

Our business unit recognizes many pressing

climate-change issues and improving quality

social issues including deterioration of equip-of life. The growing demand for renewable

ment in highly urbanized countries andenergy and more efficient uses of energy

regions, labor shortages in aging societies,

and resources represents a major businessand increased incidence of natural disasters

opportunity. But there are also risks: the cost

due to climate change. We see businessof renewable energy may exceed the range

opportunities in two areas in particular: first,

Keizo Kobayashi

anticipated for the planned energy mix.

reducing the energy consumption of building

Vice President and Executive Officer
CEO of Industrial Products Business Unit

Moreover, our business in itself can lead toequipment such as elevators and escalators,

risk as the volume of industrial waste may

lighting, and heating, ventilation, and air con-temporarily rise as facilities are replaced.

ditioning (HVAC); and second, providing

The Industrial Products Business Unit inher-

Our business strategy will include measuressafety, security, and comfort—an area seeingout of service. Particularly in today’s aging

ited the motor business with which Hitachi

to mitigate such risks.

increasing interest.

societies, such outages must be avoided. We

Hideaki Seki
Senior Vice President and Executive Officer
CEO of Building Systems Business Unit

have been networking building equipment

We are proud that we can help achieve

Elevators tend to fade into the back-products that support the Social Innovation

Goals 7 and 9, in particular, with our main

ground, but even the healthiest personsuch as elevators in Japan for 20 years now,

Business for trains, offshore wind turbines,

products and services. We are also contribut-

notices the inconvenience of climbing ten or

detecting malfunctions and minimizing theing to Goal 4 through our training programs at

more flights of stairs on foot when one goes

impact on daily life through data analysis andwas founded and globally provides key

Key SDGs for Our Business Unit

preventative maintenance. Indispensable toour production sites in China and India.
Our business strategy already incorporates

Key SDGs for Our Business Unit

measures to contribute to the achievement

safety, security, and comfort, our productsof the SDGs, and we are now discussing

and services are in themselves contributions

what are the products and services that only

to achieving the SDGs.
Goal 11 is a particular focus of our business,

Hitachi can provide and that will lead not
The key products that support

only to the sustainable development of society

the Social Innovation Businessbut also to Hitachi’s long-term sustainability.

and that contribute to Goals 7

resilient, sustainable communities offering

and we also support Goals 9 and 13 throughand 9.

Smart building services to help

environmental and technological initiatives. Ourachieve Goal 11.

contribution to Goal 8 is the employment createdby our global expansion, workstyle reforms,

Hitachi Sustainability Repor t 201818

and efficiency gains through IoT and AI.

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Railway Systems Business Unit

Financial Institutions Business Unit

Resolving Social Issues ThroughBetter, More Efficient Transportation

monorails become increasingly attractive.

Solving the Problems of Financial
Institutions and Society ThroughCustomer Collaboration

Between cities, too, high-speed rail is an

The Financial Institutions Business Unit devel-

environmentally friendly alternative to car andops systems and integration services for

air travel, producing 3 to 5 times less CO2 permegabanks, insurance and securities firms,

passenger kilometer.

and regional financial institutions acrosssolutions to social issues. As society seeks
for ways to ease congestion, metro trains andJapan, and is expanding to other countries.

Delays in production and reliability issues
have the potential to undermine the unit’s

We work closely with our customers tooperations. To ensure that we deliver on oursolve social issues in the financial industry,

Alistair Dormer

contracts and promises, we are implementing

from financial crimes to illiquid “under the

Senior Vice President and Executive Officer
CEO of Railway Systems Business Unit

efficient production facilities, effective project

mattress” cash storing, as well as the “financial

management, robust testing and commis-

divide” (differences in available financial

sioning, and stringent quality assurance andservices) widening both within Japan as the

Hitachi’s Railway Systems Business Unit is acontrol. Energy shortages and climate change

nation’s shrinking population ages and in

We believe Japan will follow other countries

fully integrated global provider of rail solutions

are other risks that affect the unit.

developing areas around the world.

and become a cashless society, and that thiswith a presence in 27 countries. The rail

Cash not only creates the risk of money

The SDGs underpin everything we do. Our

Tsugio Yamamoto
Vice President and Executive Officer
CEO of Financial Institutions Business Unit

will be a business opportunity for us.

sector is intimately connected to everyday life,

Business Strategy primarily addresses Goals

laundering, but is also a burden on the financial

Cyber attacks are the largest risk we face,putting it in a unique position to offer business9 and 11, while our Corporate Commitment isinstitutions that must transport and secure it.

and we make all efforts to prevent data leakage,
especially of personal information.

focused mainly on Goals 4 and 12, although
Key SDGs for Our Business Unit

All of the SDGs are important to us, but weGoals 8 and 13 are also important in thisKey SDGs for Our Business Unit

area. Contracts around the world increasingly

focus mostly on achieving Goal 9. We also

require proof of sustainability, and this iswish to contribute to Goal 8 by promoting

something we are working on with suppliers

better workstyles. Because we are closely

and clients alike.

connected to social development in terms offinancial infrastructure, we have taken the
SDGs as a guide for all of our employees in

Railway solutions like thoseused on the Copenhagen Metro

Solutions that use AI and big

help achieve Goals 9 and 11.

data contribute to the achievement of Goal 9.

Hitachi Sustainability Repor t 201819

order to contribute to society.

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Realizing Sustainable, Innovative Management

Social Infrastructure Systems Business Unit

Healthcare Business Unit

Bringing New Value to the World by
Realizing “Society 5.0”

society will bring, we are trying to contribute to

Ensuring Healthier Lives for
People Worldwide ThroughHitachi’s Solutions

realizing the Japanese government’s “Society

A healthy population is the foundation for a5.0” proposal to solve Japan’s social issues.

sustainable society, and the Healthcare

Most themes of this proposal, including

Business Unit contributes to achieving this by“Extending the nation’s healthy life expectancy”

providing healthcare equipment and solutionsand “Building safe, convenient, and economi-(including diagnostic imaging systems, in vitro

cal next-generation infrastructure,” are related

diagnostics, particle beam therapy systems,

to our business opportunities. When we plan aradiation therapy systems, and smart operating

business, we regard the achievement of therooms) to 80 countries worldwide.

Katsuya Nagano
Vice President and Executive Officer
CEO of Social Infrastructure Systems Business Unit

The Social Infrastructure Systems Business

Performance Data

As part of addressing the full range of social
challenges that depopulation and an aging

SDGs as one of the guidelines. Then, throughAchieving basic universal health coverage

Masaya Watanabe
Vice President and Executive Officer
CEO of Healthcare Business Unit

initiatives like value-based medicine in the
United States, regional comprehensive care in

our actual business activities, we contribute to(UHC) across developing countries andJapan, and data-analysis services aiming tosolving social issues.

emerging powers will require support frommeet new needs for sustainable social insurance and in-home care.

Unit provides solutions for customers in the

During the “Japanese economic miracle,”international society. This issue is particularly

public sector—for example, government

our customers found value in high productivity

important for developing countries, where

offices and local governments—and social

to meet the needs of mass production. How-around 800 million people lack adequate carefocusing on Goal 3 of the SDGs: Good healthinfrastructure such as the energy andever, improving productivity is no longer valu-

today. In developed countries, aging populations

and well-being. This will also require address-

rail industries.

able. We believe that we need to create neware changing the face of healthcare, withing Goals 1 and 2, which call for the elimination of poverty and hunger. The professional

value by establishing an approach to providKey SDGs for Our Business Unit

ing targeted support that meets individual

Key SDGs for Our Business Unit

for UHC will also make Goal 4 a necessity.

changes in the systems and regulations of

We also contribute to a wide range of othercountries and regions as risks as we continue

SDGs through partnerships with stakeholders

to contribute to society through our business.

and provision of environmentally responsible

We believe that contributing to achieve thehealthcare equipment. Going forward, we will

An image of the society we aim torealize by contributing to achievingpany. Our business mainly contributes to

Hitachi’s smart operating room
solution helps achieve Goal 3.

approach our daily business conscious of theimportance of our work and proud of thecontribution we make.

achieving Goals 3, 7, 9, and 11, and, more
broadly, Goal 16.

Hitachi Sustainability Repor t 2018

development of healthcare providers needed

requirements. We will also treat potential

SDGs is essential for us to survive as a com-

Goals 3, 9, and 11.

We aim to resolve these global issues by

20

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Innovation Management

Activities

Performance Data

Realizing Sustainable, Innovative Management

Customer-Driven R&D and Hitachi’s
Business Structure

globally, CSI has locations in five key regions—Japan,

A Century of Research and Development at Hitachi

To accelerate collaborative creation with customers, theabout 350 of approximately 550 CSI personnel assigned out-

The Research & Development Group, which finds its origins as

Research & Development Group was realigned into a moreside Japan. In April 2017, a new office was opened in London

the Research Team of the Hitachi Mine of the Kuhara Mining

customer-driven research structure in April 2015. Three

to facilitate collaborative creation in Europe. Furthermore, a global

Company celebrates its centennial anniversary in 2018. The

research laboratories in Japan—the Central Research Laboratory,

research team, the Insights Laboratory, was established theGroup has delivered innovation for the future while pursing

Hitachi Research Laboratory, and Yokohama Researchsame month to accelerate the delivery of digital solutions. In

cutting-edge research and development activities in each era

Laboratory—were consolidated along with the Design DivisionDecember 2017, two new facilities were established in China:

to execute the Corporate Credo “to contribute to society

and overseas research centers and regrouped into the Global

a collaborative creation center in Beijing, and the Openthrough the development of superior, original technology

Center for Social Innovation (CSI), the Center for Technology

Automation Laboratory in Guangzhou, a facility for collaborativeand products.”

Innovation (CTI), and the Center for Exploratory Researchcreation in the field of industry. CSI will leverage these co-creation(CER). This R&D structure supports the new market-driven

spaces to accelerate co-creation globally with customers.

In this centennial anniversary year, the Research &Asia-Pacific (APAC), North America, China, and Europe—with

Development Group reaffirms its commitment to the corporate

business structure created in April 2016 along the lines of the

CTI is delivering new value to customers in various sectors

Mission, and with the Hitachi Values of “Harmony,” “Sincerity,”“Front” (the customer interface), “Platform,” and “Products,” toby working with the Platform BUs that provide the backbone ofand “Pioneering Spirit” deeply ingrained in our hearts, is sup-drive our Social Innovation business.

Social Innovation, as well as the Product BUs responsible for

porting the company goal to become the “Innovation partner

Under this structure, CSI is developing services to meet thethe highly competitive key components that support services,

for the IoT era” through research and development, and leadneeds of regional customers and the 12 Front business units

to generate digital solutions combining OT (operational

future growth though collaborative creation with customers.

(BUs). To carry out collaborative creation with customers

technology) and IT.
The CER is conducting cutting-edge research to realize ahuman-centric society that pursues the fundamental

Research & Development Group Structure

Business Structure from FY 2016

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

Customers
Front
Regional bases
Customer segments (12 business units)

社会イノベーション事業創生に向けた研究開発の取り組み

お客様と協創する中で、課題やビジョンを共有してビジネスモデルをデザインし、検証・シミュレーションを通じてPlatform
ビジネスモデルを具現化することで、新たな価値を創出していきます。そのためには、多くのステークホルダーのシCore of Social Innovation
ステムがつながる、オープンでセキュアなプラットフォームが必要となります。そこで日立は、2015年度のグロDeveloping services in keeping with the needs of customers in each region
North America: 100

Europe: 70

China: 115

APAC: 65

Japan: 200(Total: 550 people)

Center for Technology Innovation (CTI)

Establishing global number-one technologies(Platform, Products)
Japan: 2,000 people

Products
ーバル研究体制改革によるグローバルCSI創設に続いて、2016年度にIoTプラットフォームLumada

Center for Exploratory Research (CER)

Industrial products, automotive parts, materials, etc.
を立ち上げ、サービスを開始しました。研究開発グループでは、顧客協創方法論を体系化した「NEXPEA

Resolving future social issues

Hitachi Sustainability Repor t 2018

Japan: 100 people

21

human goals of “outcomes and well-being,” working incollaboration with various research institutions to resolve futuresocial challenges.

Introduction

Contents

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

R&D Initiatives Toward Creating New Value
Through Hitachi’s Social Innovation Businessin fiscal 2016. In co-creation using Lumada, the Research &Development Group is using NEXPERIENCE, a systemized

opment Group will be promoting Open Innovation throughIn collaborative creation with customers, new value is createdmethodology for collaborative creation, to enhance Lumada

activities such as building innovation ecosystems throughby sharing challenges and visions to design a business model,

customer cases and solution cores. By resolving our customers’

industry–government–academia collaboration.

and by actualizing that model through verification and simula-issues, we aim to not only deliver satisfaction to our customers

tion. This requires an open and secure platform that connects

but also strengthen our core technology. Further, a positive

the systems of many stakeholders. To realize this, Hitachi

cycle of gaining insights into potential new business areas haslaunched the Lumada IoT platform and began offering services

also begun, building on customer cases.

To extend these initiatives globally, the Research & Devel-

Step 1 (From FY 2015)

Step 2 (FY 2016–FY 2017)

Step 3 (FY 2018 and beyond)

Co-create with customers

Digital innovation

Scale up globally

Build global CSI network

Co-create with Lumada

Accelerate with open innovation

Systematize NEXPERIENCE—a methodology

Utilize NEXPERIENCE

Expand co-creation centers

for co-creation

Increase customer cases & solution cores

Establish industry–government–academia ecosystem

Co-creation activities

Develop AI/IoT tool sets
Industry/Distribution/Water

CSI activities

Go-toMarket
Strategy

SharedvisionwithcustomerConcept
designFinance

PoC atcustomersite

Prototypedemo

LaunchScaling

Methodology

IoT platform

NEXPERIENCE

Solution core,customer cases

Ethnography

Data
Social/Healthcare

AutomotiveCore

Analytics

Edge
Foundry

Technology platforms

Life/Eco Friendly
SystemCenter for Technology
Innovation

Hitachi Sustainability Repor t 2018

IoT platform
Information control
infrastructure

StudioDiscover business
opportunities
Showcase

NEXPERIENCEPower/
Energy22

Railway

Elevators/
Escalators

Contents

Introduction

Management Approach

Recognition of Social Responsibility

R&D Directives for Fiscal 2018

Activities

Performance Data

Realizing Sustainable, Innovative Management

Enhancing Co-Creation of Global Solutions

information. Digitizing customer orders to suppliers using a

The Research & Development Group has a variety of ongoing

Shifting from Point Solutions to Connected Industries

blockchain platform will not only improve efficiency in procure-

initiatives as part of its mission to become a global innovation

To further enhance collaborative creation with customers, thement and inventory management but will also enable financial

leader and drive Hitachi’s evolution toward a global company.

Research & Development Group intends to shift its focus

institutions to swiftly make real-time decisions on matters such

The three specific challenges the group has set for itself arefrom developing point solutions for individual customers to

as settlement and financing. Further, the Research &“Monetize capability aimed at expanding the Social Innovation

providing ”Connected Industries” solutions. These will connect

Development Group will be strengthening initiatives addressing

Business,” “Increase world-leading products and services,”the various solutions provided to customers in different industry

growth areas and social challenges in each global region, toand “Participate and engage with global communities.”

sectors to deliver even greater value. One concrete example iscontribute to the expansion of Hitachi’s global solutions business.

Three directives have been established to ensure that theseconnecting SME customers in the manufacturing field withchallenges are overcome.

financial institutions, to manage and share global supply chain

Focusing on Growth Areas and Regions
The Research & Development Group is focusing on Hitachi’sfour focus business domains of “power and energy,” “industry,R&D Directives for Fiscal 2018

Become a Global Innovation Leader to Drive the Evolution Toward a Global Company
Hitachi Challenge

Directive

distribution, and water,” “urban,” and “finance, social, andhealthcare” according to the individual needs of each global
region in terms of growth areas and challenges in that society.
CSI-APAC is focusing on the industry, finance, and social
areas, working to create a digital infrastructure business in

Monetize capability aimed at
expanding the SIB* 1

Enhance co-creation of global solutions

collaboration with governments. In Thailand, it is moving

Shift from point solutions to connected industries

forward with the creation of a digital business centered

Focus on growth domains & regions

on manufacturing.
CSI-North America is focusing on the industry andIncrease world-leading products
and services

Create and focus on world-leading technology

finance areas, with plans to expand from maintenance toCreate top technology to support SIB

mobility services, as well as blockchain verification and

Accelerate open innovation

business development.
CSI-China is focusing on the healthcare and urban areas,

Participate and engage with
global communities

Promote basic research to resolve social issues

developing its digital businesses in response to the “Healthy
China 2030” policy, and aims to expand in elevator andCreate disruptive technology
Create visions to lead Society 5.0

escalator installation and maintenance and digital solutions.
CSI-Europe is focusing on the urban area as the railway*1 SIB: Social Innovation Business.

business expands from rolling stock and signaling to a services
business, promoting its Dynamic Headway solution for
optimizing operational planning based on people flow analysis.

Hitachi Sustainability Repor t 201823

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Creating and Focusing on World-Leading Technology

open source community, customers, and start-ups both within

2018, Hitachi established a joint company with Fanuc

Creating World-Leading Technology to Support the Socialand outside of Japan to build an open research environment to

Corporation and Preferred Networks, Inc. (PFN) to lead theInnovation Businessfurther enhance technology platforms.

world in developing intelligent edge systems for the fields of

The Research & Development Group is also actively working

In Japan, joint research laboratories were established within

industry and social infrastructure. Moving forward, Hitachi willon creating world-leading technology to support Hitachi’s

the University of Tokyo, Kyoto University, and Hokkaido University

promote open innovation with start-ups through its investment

Social Innovation Business. For example, it is developing tech-in June 2016 to work toward the realization of the “Superin Geodesic Capital Fund I-S.

nology for high-speed railway and traffic management sys-

Smart Society” (Society 5.0)*1 proposed by the Japanese gov-

tems, pursing increased safety, comfort, and convenience, toernment. In April 2017, the Hitachi Kobe Laboratory wascontribute to business expansion in Europe. In the field ofopened within the Kobe Biomedical Innovation Cluster as aelevator design, flow analysis developed for railways was com-development facility to achieve practical applications for regen-bined with experience to redesign the elevator carriage anderative medicine. These centers will seek insights into future

realize the world’s fastest elevator. In the industry area, thesocial challenges and propose visions and innovations that canworld’s first amorphous motor integrated oil-free scroll com-

both resolve those challenges and contribute to economic

Accelerating the Creation of Disruptive Technology

pressor that is both compact and highly energy-efficient wasdevelopment. Globally, as well as its links with the University

At Hitachi, we believe that disruptive technology is an essential

developed and launched as a product. We will continue toof Michigan around autonomous driving technology, Hitachi

part of driving technological development toward resolving

foster the development of world-leading technology in thehas established joint laboratories with three Chinese universi-

social issues. Successful examples from fiscal 2017 include

areas of autonomous driving, smart manufacturing, AI,

ties where it is currently working on joint research projects lever-Ultrasound CT and the CMOS annealing machine based on

and robotics.

aging the strengths of each institution: Tsinghua University forquantum computing technology.

In order to create world-leading technology, it is essential touse digital technology and increase the value of Hitachi’s OT,
IT, and products. To realize this, human resources are

IT, Shanghai Jiao Tong University for materials, and South
China University of Technology for manufacturing.

*1 Super Smart Society (Society 5.0): A proposal from the Japanese government to create a
new type of society. The proposal envisages using AI, IoT, robotics, and other innovations inscience and technology and making use of a range of data within society to achieve both
economic development and the resolution of social issues, creating a society where all
people can live rewarding, comfortable lives.

Promoting Basic Research to Resolve Social Issues

The CMOS annealing machine, which can process theenormous volume of calculations required to solve combinato-

As part of our open source community activity, we are also

rial optimization problems in a realistic time frame to find practi-

extremely important. The Hitachi Group is aiming to increase

actively promoting participation in open projects and consor-

cal solutions to social challenges constantly increasing in scale

the number of data scientists it employs to 3,000 by fiscal

tiums in areas such as blockchain and edge computing. In

and complexity, achieved a world-leading 100,000-bit process-2021, and is currently enhancing its training program as well as

2016, Hitachi became a premier member of the Hyperledger

ing level in June 2018. As a result, to give just one example ofsetting up a “professional community” of top-class researchers

Project for blockchain technology, an area of rising interest in

its applications, it was able to conduct the calculations needed

and experienced professionals in each area. In this community,

FinTech and other fields. Additionally, we are one of 46 groups

to determine the optimal routing to ease traffic congestion for

the Research & Development Group will play a leading role infrom North America, Europe, and Asia participating in the

2,000 cars on 160 vertical and horizontal roads.

further developing core technology and value creation.

OpenFog Consortium and play a key role in the Japan regional
committee. Aiming to go beyond the traditional boundaries ofCreating Visions to Lead Society 5.0

Accelerating Open Innovation

business and industry to create new value in the edge comput-

Sharing and reaching consensus on future visions and the

To realize innovative technology development that cannot be

ing domain, in February 2018, Hitachi joined the board of thecreation of disruptive technology will be indispensable forachieved by one company alone, the Research & Development

Edgecross Consortium, which was established with the goal ofresolving social issues. Through its joint research centers at theGroup is collaborating with research institutes, universities, thecontributing to IoT for manufacturing. Additionally, in April

University of Tokyo, Kyoto University, and Hokkaido University,

Hitachi Sustainability Repor t 201824

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Hitachi is creating visions for Society 5.0. The Hitachi The

Activities

Realizing Sustainable, Innovative Management

In fiscal 2017, investment in Frontier and Platform Research

University of Tokyo Laboratory is addressing urban develop-

was concentrated on the four focus business domains identi-

ment and energy systems, the Hitachi Kyoto University

fied in the 2018 Mid-term Management Plan—power andLaboratory is addressing anticipated social challenges in 2050,

energy; industry, distribution, and water; urban; and finance,

and the Hitachi Hokkaido University Laboratory is addressing

social, and healthcare—as well as digital solutions (Social Inno-

regional issues and food and health. All have begun sharing

vation Business using digital technology) that contributed totheir visions globally. For urban planning in particular, the com-the evolution of the Lumada IoT platform.

pany is exploring visions of future cities, models for resolving

Performance Data

Allocation of Research & Development Group Funds
Frontier and Platform
ResearchSponsored Research

48%

33%
R&D Expenditure*1
FY 2018

In fiscal 2018, we will strengthen our investment in Frontiersocial challenges, and business models that could help

and Platform Research, particularly in digital solutions. Further,

Advanced SponsoredResearchachieve the goals of a decarbonized, 100-year life society andin the same fiscal year, the Research & Development Group willregional revitalization. In June 2018, an open forum was held

invest toward accelerating open innovation 1.6 times the19%

to deepen discussion with stakeholders.

amount invested in fiscal 2015.

Digital Solutions

Hitachi believes that these initiatives will also contribute toGoal 17 of the SDGs, “Partnerships for the goals,” and will
identify concrete research challenges the results of which canbe promoted as sources for sustainable development.

(billion yen)

R&D Expenditure (Hitachi Group)

15

R&D investment by the Hitachi Group is equivalent to about
4% of revenue, and is used to strengthen the four focus business domains and open innovation, focusing on our Social

450
400

Total: 47 billion yen

10

3.7%

354.4

350

Innovation Business. Approximately one-fifth of this amount300

represents the expenditure of the Research & Development

0Group, which can be further divided into Sponsored and14

15(billion yen)
500

R&D Planning and Budget

18

20

Key Indicators

3.4%

3.3%

334.8

333.7

3.5%

3.6%

323.9

332.9

5
0

2016

2017

2018 (FY)*1 Roughly 20% of total Hitachi Group R&D expenditure.

2013

2014

Research investment (billion yen)

2015

2016

2017

R&D expenditure as % of revenue(FY)

R&D Ethics Reviews
In September 2000, Hitachi established an ethical review com-

Advanced Sponsored Research from the business units andmittee to oversee the handling of information from human

Hitachi Group companies based on the Business Roadmap,

genome analysis. It was the first such committee to be formed

and Frontier and Platform Research based on the mid-longby a company manufacturing medical devices in Japan. The

term Technology Roadmap. The aim of Sponsored andmajority of the committee members are external experts, andAdvanced Sponsored Research is to expand and grow core

the committee meets two or more times a year. Currently, thebusinesses with a target date for practical applications withincommittee’s activity is governed by ethical guidelines based on

three to five years. Frontier and Platform Research aims togovernment directives outlined in documents such as thestrengthen collaborative creation with customers and technical“Ethical Guidelines for Clinical Research” and the “Ethicalplatforms, and to create new businesses.

Guidelines for Human Genome/Gene Analysis Research.”*1

Hitachi Sustainability Repor t 201825

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

strategies are indispensable for collaborative creation.

about these new technologies, along with national/regional

activities require review are expected to demonstrate a highAs collaboration with our customers and partners increases,

rules and regulations.

level of corporate social responsibility, and high ethicalwe believe it is important to use IP to promote partnerships

standards are expected of researchers and staff as well.

and to build ecosystems. We take a broad view of “intellectual

digital transformation proceeds. We will promote new IP

property,” which goes beyond patents, copyrights, and tradeactivities, leveraging our strengths built over long years ofsecrets to include other data and information assets as well. In

experience in areas requiring integrated knowledge ofrecent years, attention has been drawn to liabilities and ethicalmanagement, law, and technology. Through our IP activities

issues arising from the application of artificial intelligence,

toward promoting data use, we will contribute to our Social

All Hitachi business divisions and Group companies whose*1 Addressing medical research-related tasks performed at Hitachi, the ethical review committee confirms and audits research goals, legitimacy, rationality of methods, protection of thehuman rights of subjects, and sincere and appropriate performance of tasks.

Intellectual Property

The scope of our IP activities continues to expand as therobots, and autonomous-driving technologies. There is also aInnovation Business as well as to the achievement of the SDGs

Supporting Our Social Innovation Business withgrowing trend toward data localization, as seen in the European

as we aim to realize Society 5.0.

IP Activities

General Data Protection Regulation (GDPR). We will accelerateIntellectual property (IP) is a key element of Hitachi’s business

our IP activities by accumulating findings and knowledge

Hitachi Group Codes of Conduct: 6. Protection of Intellectual Property and Brand

strategy. In our Social Innovation Business, we plan andimplement IP strategies appropriate to each area of our
product and digital solution businesses.

Two Types of IP Activities for Social Innovation BusinessIn our product business, where IP strategies are crucial forcompetitiveness, we are actively working toward obtaining andusing patent and other intellectual property rights (IPRs), andProduct Business

Digital Solution Business

Strategy forCompetitiveness

Strategy for Collaborative Creation

enhancing our competitive edge by planning and implementing
an “IP master plan” customized to the nature of our business.
In recognition of these efforts, in 2017 Clarivate Analytics
included Hitachi in its Top 100 Global Innovators for the

IP Strategy

seventh consecutive year, and the Japan Institute of Invention
and Innovation presented Hitachi with its second consecutive

IP RoleNational Commendation for Invention.

Enhancing competitivenessIn our digital solution business, on the other hand, IP

Information
IP

Activities

Scope

Acquiring IP rights
Using IP right in conformity
with business

Patents, design patents,
trademarks, patent licenses

Securing BGIP of core tech
Designing business model & contract
Rule-making, standardization

26

Trade
secrets, copyrightIP rights(patents)

IP Assets(including business contracts, data, trade secrets & copyright, in addition to the items at left)

Public comments, secondment to government agencies, collaboration with academia

External Activities

Hitachi Sustainability Repor t 2018

Data

Promoting partnership withcustomers & partners
Establishing ecosystems

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Supporting our Global Business with IP Activities
One of the IP activities supporting our global operations is thedevelopment of a global patent portfolio to ensure worldwide
protection for innovations emerging from our R&D and prevent

Activities

Realizing Sustainable, Innovative Management

Reward System for Employee Inventions

Key Indicators

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

Patent Application Ratios by Country or Region (Hitachi Group)(%)

FY 2013

41

9

9

7

6

28

competitors from imitating the technological advantages that
set us apart. The portfolio also enables us to demonstrate the

FY 2014

41

9

9

8

6

27

FY 20154199FY 2016

43

8

12

6

5

26

FY 2017

44

9

9

7

6

25

7

5

29

internal Invention Management Committee made up of R&D,
that the system operates effectively across the whole Group.
The system includes an invention information channel to

Japan
US
Europe
China
Other
PCT*1
*1 International applications filed for Patent Cooperation Treaty coverage.

New York and Santa Clara, California, in the United States,
Beijing and Shanghai in China, and London in the United

We have established a special division within the Intellectual

legal affairs, personnel management, and IP experts ensures

In tandem with efforts to globalize our R&D centers, we arealso globalizing our IP hubs. We currently have IP offices inhave a mechanism for receiving inquiries about the rewards, asProperty Division to plan and operate this system, while an

and we will continue to efficiently build and maintain our global
patent portfolio.

and transparent as possible, we set standards to evaluate

well as opinions on the reward system.

tive creation. We increased our patent application ratio
outside Japan from 47% in fiscal 2009 to 56% in fiscal 2017,

system for new inventions. To make this reward system as fairinventions and disclose these standards to employees. We also

advantages of those technologies to customers and provide
patent licenses to other companies, spurring further collabora-

Performance Data

promote communication between inventors and the businessdivisions implementing the resulting patents. Inventors can ask

Protecting Our Designs and Brand

the business divisions for information about patent implemen-

Kingdom to protect the innovations generated through R&D

Protecting Hitachi’s designs and brand is crucial for promoting

tation and check the evaluation standards used to calculate

activities outside Japan.

our Social Innovation Business and supporting our global

the rewards for their inventions. To ensure transparency andoperations. We operate a rigorous regime against suchinventor satisfaction, we also set up an Arbitration Committee

resources. Since fiscal 1964, Hitachi’s Intellectual Property

infringements as making and selling counterfeit goods copying

for Invention Rewards, composed similarly to the Invention

Division has operated an international job training system,

our designs or carrying the Hitachi brand and illegally applying

Management Committee. Inventors can appeal to this commit-

sending trainees to IP law firms and Group companies infor or registering trademarks similar to the Hitachi brand.

tee if they disagree with the amount they have been awarded.

Another key issue is developing globally minded IP humanEurope and the United States and to study abroad. In fiscal

Until recently, the bulk of counterfeit goods were manufac-

2017, three trainees went to the United States and one totured in China, but over the past several years manufacturing

top 100 inventors. Since fiscal 2006, we have also given

Singapore, while one employee was sent to the United States

methods and sales routes have become more sophisticatedawards to the top 50 young inventors (under 35 years old)and one to China’s Special Administrative Region of Hongand diverse, which has spurred us to take further action.

based on patent application rewards received within five years

Kong to study.

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

Hitachi Sustainability Repor t 201827

From fiscal 2005, we have given President’s Awards to theof their joining Hitachi.

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

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

Stakeholders

Main Roles

Customers

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

Quality Assurance
Sales

Shareholders andInvestors

Timely and proper information
disclosure, fair assessment andsupport from capital markets,reflection of shareholder andinvestor viewpoints incorporate management

Public Relations
and IR

Financial results briefings (quarterly)
General shareholders’ meetings (annual)	IR events, one-on-one meetings(about 600 times/year)	IR tools: Integrated Report,
business reports, etc.

	Stakeholder Engagement
pp. 28–32

Suppliers

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

Procurement

Procurement activities
Supplier meetings
CSR monitoring (131 companies/year)
CSR audits (18 companies/year)	Supply Chain Management
pp. 74–78

Employees

Active utilization, proper
treatment, promotion ofoccupational health and safetyof human capital

Public Relations
Human Capital

Hitachi promotes its Social Innovation Business withMain Divisions

Means of Communication
Customer satisfaction activities
MarketingWebsiteAdvertisement activities

each country or region, followed by collaborative
resolve them. In conducting this business, we place
importance on two-way communication with stakeholders and active participation in various initiatives
in coordination with various groups.

Stakeholder Engagement

Intranet, in-house newsletters
Training	Town hall meetings between senior
management and employees(18 times/year)
Employee surveys (annual)The outcomes of communication with stakeholders are sharedinsights into our business. Public interest is growing in how

promote ways of capitalizing on the opinions of the members

	Universal Designp. 82

	Rigorous Information
Managementp. 86	Diversity and Inclusion
pp. 60–62	Developing
Women’s Careers
pp. 62–63
	Work-Life Management
pp. 63–64

National and Local
Governments,
Industrial
Associations

Compliance with domestic andforeign laws and regulations,policy recommendations,participation in industrygovernment-academia
collaborative projects

Government &External Relations

Policy council participation
	Participation in business andindustry associations

	Stakeholder Engagement
pp. 28–32

Local
Communities

Fulfillment of responsibilities ascorporate citizen, involvement inlocal communities

Social Contribution
All Business
Divisions	Contribution to local communities
through business	Participation in volunteer activities

	Social Contribution Activities
pp. 88–90

Academic
Associations andResearch
Institutions

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

Research andDevelopment

	Open innovation (joint research)	Innovation Management
pp. 21–27

NGOs and NPOs

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

CSR Promotion	Stakeholder dialogue (3 times/year)	Dialogue through collaboration

	Stakeholder Engagement
pp. 28–32

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

Environment
All Business
Divisions

corporations are taking in stakeholders’ voices to improvetheir businesses, and we will continue to globally develop and	Quality Assurance Activities
pp. 84–85

	Employing People with
Disabilities
p. 64

Communication with Stakeholders
with respective divisions and actively utilized as valuable	Customer Satisfaction
pp. 80–81	Adaptation for Emerging
Marketsp. 83

efforts to accurately perceive the social issues increation with customers and other stakeholders toPages

of society with whom we engage in our business activities.

GlobalEnvironment

Hitachi Sustainability Repor t 201828

	Social Contribution Activities
pp. 88–90
Stakeholder dialogues (annual)	Environment
pp. 91–127

	Diverse Support Systems
for Employeesp. 64	Occupational Health and
Safetypp. 65–67
	Global Human Capital
Development
pp. 68–70
	Stakeholder Engagement
pp. 28–32

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Engagement with Customers

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

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

Europe, and Asia to explain our management strategies formeetings, however, are forums for direct dialogue where

mid- and long-term growth, for a combined total of around 600

It is critical for Hitachi to gain stakeholders’ understanding of

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

meetings. In addition, we hosted company information sessions

its Social Innovation Business and corporate vision, which

way of thinking and what is needed for Hitachi to make thetailored to individual investors to deepen their understanding

aspire to realize a sustainable society. We conducted a Global

next leap forward, as well as occasions for reaching a sharedof Hitachi. We are doing our best to reflect feedback in

Brand Campaign in 16 countries under the slogan “THEunderstanding of the work in which everyone is involved.

management and operations to enhance our corporate value.

FUTURE IS OPEN TO SUGGESTIONS,” presenting examples

These interactions help drive mindset reform within Hitachi.

On the Hitachi IR website, we post briefing materials andof how Hitachi’s Social Innovation Business is helping to

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

videos as well as business performance and stock price trend

address the many issues societies now face globally, such asout that existing structures and procedures made it difficult forcharts in a timely manner. As part of our efforts to enhance ourenergy issues, depletion of water resources, transportation

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

information disclosure, we have introduced a new responsive

issues linked to urbanization, healthcare issues associated with

led to the creation of an entirely new way for employees todesign to allow smartphone and tablet users to browse our

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

website with ease.

information technologies, food safety, and information security.

called “Make a Difference!”

Global Campaign Rollout

To globally enhance the Hitachi brand, we have held theIn the town hall meetings, we believe that it is important for

Hitachi Social Innovation Forum in locations worldwide, including

senior management to hear the thoughts of frontline employees

Japan, the United Kingdom, Italy, Australia, the Philippines,

and for both sides to share their awareness as they engage

and India, showcasing examples of the Social Innovationin dialogue on diverse topics, such as how we can growBusiness being conducted in each region. Through keynote

our business.

Investor Relations
Disclosure Policy

Working with Governments and Public Policymakers

speeches, panel discussions, and exhibits, we present a wide

External Relations Initiatives

range of stakeholders—including customers and government

Dialogue with Shareholders and Investors

We believe that it is governments that are best positioned to bothofficials—with solutions to social issues that countries andHitachi conducts extensive investor relations (IR) activities,

understand and work to resolve social issues, whether at theregions around the world face today.

focusing on dialogue with stakeholders, including institutional

national or regional level. As we develop our Social Innovation

investors and analysts.

Business on a global scale, our activities in the social infrastruc-

Engagement with Employees

In fiscal 2017, we held quarterly financial results briefings

ture field are particularly intertwined with the public interest.

Enhancing Management-Employee Communication

as well as corporate strategy meetings on the progress of ourThis makes government institutions and related organizations in

Since fiscal 2012, we have held town hall meetings as2018 Mid-term Management Plan. We also hosted the eighth

Japan and other countries around the world important partners

forums for direct dialogue between senior management andannual Hitachi IR Day, where divisional management teams

to Hitachi both as customers and as backers.

employees. In fiscal 2017, President and CEO Toshiakifrom each business explained their business strategies andHigashihara attended a total of 18 town hall meetings in Japan,

management policies under the plan.

the United States, Canada, Myanmar, Vietnam, the United
Kingdom, and other countries.
Ordinary business meetings and conferences are limited inagenda, and company communications with employees via

Hitachi Sustainability Repor t 2018

Today’s global community urgently requires solutions for arange of social issues related to the environment, energy, aging

We held briefings on Hitachi’s R&D Group a source of valuesocieties, and urbanization. At the same time, innovation in thecreation, and conducted a tour of the Omika Works to promote

fields of internet of things (IoT) and artificial intelligence (AI)—understanding of the Lumada business. Hitachi executives

the so-called fourth industrial revolution—is advancing rapidly.

visited institutional investors and analysts in North America,

Like the Japanese government and its “Super Smart Society”

29Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives(Society 5.0) proposal, governments around the world are

and accelerate the external relations of the entire Hitachi Group,a corporation contributing to the realization of “Society 5.0,”

expanding their support systems in response to these develop-

and we have since worked to strengthen our relationships with

Chairman Nakanishi makes proposals in areas including thements. For Hitachi, promoting our business according to legis-

government and industrial organizations. In fiscal 2016, we

use of data, open innovation, and development of humanlative policies and making effective use of governmental advice

reorganized the division to achieve our new goals of further

resources. The government’s growth strategy, Investments forand support systems is enormously helpful to us in advancing

enhancing the global expansion of our Social Innovation

the Future Strategy, formulated based on discussions at theour Social Innovation Business. We also increasingly receive

Business in terms of external relations.

Council on Investment for the Future, outlines policies toward

requests for proposals from the Japanese government as they

The Government & External Relations Division is not only

realizing “Society 5.0.”

seek to identify solutions for social issues and craft infrastruc-active in Japan but also works with the Hitachi Corporate

ture support policies to resolve unique regional challenges.

Office in Washington DC, the Hitachi Corporate Office, Europe,

have also participated in meetings and roundtable discussions

Assisting with these requests, whether directly or through par-and other business locations in the Americas, Europe, Middle

that look into policy from the standpoint of expanding businesses,

ticipation in an economic organization or industrial body, is one

East, Africa, and the Asia Pacific. By dealing with governments

as well as cooperating in planning new policies for Japan,

way Hitachi contributes to a better society.

and organizations as a unified Group in seeking mutual benefit

including specific recommendations for more effective policy

with the communities we participate in, we explore new businessplanning and implementation.

Since 2016, Chairman of the Board and Executive Officer

Staff from the Hitachi headquarters and business departments

Hiroaki Nakanishi has taken part in the Council on Investments

opportunities for Hitachi in each community’s unique social

for the Future, founded in 2016 by the Japanese government,

issues and policies. In fiscal 2018, the division’s name was

as a representative of corporations that seek to contribute to

officially changed to the Government & External Relations

Membership in business and industry associations is anothersociety and has actively participated in discussions of how

Group. Under this new name we will continue to contributecritical aspect of our external relations. Hitachi is a member ofJapan can build an ideal society. Chairman Nakanishi also

to better societies in Japan and around the world throughKeidanren, where Chairman Nakanishi was appointed chair inserved as vice chair of Keidanren (Japan Business Federation),business activities balanced against harmonious relationships

June 2018 after having served as vice chair since June 2014

particularly leading the discussion of cyber security, essential inwith governments and economic organizations worldwide.

and leading the Committee on South Asia and the Committee

maintaining and developing an advanced information society,and preparing proposals for submission. In the same way,

Participating in Business and Industry Associations

on Information and Telecommunication Policy. Other executives
Policy Council Participationand employees also participate in major Keidanren committees

Hitachi’s President and CEO Toshiaki Higashihara serves as

As part of our dialogue with government officials, Hitachi

such as Industrial Policy, Labor Policy, Innovation Policy, andvice chair of the Japan Electronics and Information Technology

executives and other representatives participate in a range ofRegional and Bilateral Relations. As the planning and coor-

Industries Association (JEITA), making efforts toward building

government-sponsored policy councils. We are particularly

dination chair for the subcommittee on Europe, we also

an affluent society and promoting information and communica-

active in the discussion of how best to realize the “Super Smartconduct activities with Japanese and European governments,tion technology to contribute to resolving many social issues

Society” (Society 5.0), advocated by the Japanese government,

while maintaining close economic relations with European

through exchanging views and opinions with relevant ministries

exploring ways to simultaneously resolve social issues andgovernments and economic organizations. In relation to theand agencies.

achieve economic growth. Chairman Nakanishi has been a

United Kingdom’s decision to withdraw from the European

member of the governmental Council on Investments for theUnion, commonly referred to as “Brexit,” we have been

Future since its first meeting in September 2016. The council

communicating with both the European Union and the United

Hitachi established the Government & External Relations

is a command post for the government’s growth strategy,

Kingdom to continue maintaining a stable business environ-

Division in our corporate headquarters in fiscal 2009 to guidechaired by the prime minister of Japan. As a representative ofment in the region as before.

Promoting External Relations

Hitachi Sustainability Repor t 201830

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

President Higashihara serves as vice chair of the Japanand (3) Gathering and analyzing geopolitical intelligence. The

demonstrates how business can contribute to European policy

Electronics and Information Technology Industries Association

North American market plays an important part in our business,and to social issues.

(JEITA), whose mission is to achieve Society 5.0, including

accounting for 13% of our total revenue and more than 21,000

Specifically, the office actively gathers information in thethrough the promotion of Connected Industries, and thereby

employees. The US political and economic climate has been

fields of energy, trade, information and telecommunications,

optimize society as a whole. As a corporate member of therapidly changing in recent years, significantly impacting ourtransportation, healthcare, research and development,

association, Hitachi has been active in various committees andbusiness globally. We must monitor these changes closely inenvironment, CSR or ESG (environmental, social, and gover-working groups, examining and making proposals on IT use

order to make critical business decisions, not just for the USnance), and SDGs (Sustainable Development Goals); commu-

and data handling, working on elementary and secondary

but for other markets as well. Building reliable relationships andnicates with relevant departments within the company andeducation issues while arranging for lectures at universities andnetworks with influential leaders and experts, including govern-other Group companies; and makes policy contributions to EU

other advanced educational institutions, and offering insights

ment representatives, in the United States and enhancing ourinstitutions through business and trade associations like

into paradigms of international legislation and agreements inpresence in those circles provide valuable feedback for our

BUSINESSEUROPE, DigitalEurope, and the Japan Businessthe era of global business.

management and an emergency safety net.

Council in Europe (JBCE). We have also participated in the

As a member of the Japan Electrical Manufacturers’

As part of our efforts to expand our Social Innovation

European Commission Product Environmental Footprint (PEF)

Association (JEMA), Hitachi takes seriously its commitment toBusiness, the Hitachi Corporate Office in Washington DC ispilot project since 2013 as part of our environmental policy

sustainable development of the electric machinery industry andengaging in dialogue with and lobbying US government

activities, exchanging opinions, supporting the development ofcontribution to a global society. To that end, we have made a

representatives and regulatory authorities to facilitate a favorable

new policies, and helping to verify the environmental footprint

total of 24 recommendations and comments to the Japanesebusiness environment. In recent years, particular focus has been

calculation method announced by the European Union.

ministries and agencies, including on the Strategic Energy Plan.

placed on establishing relationship with state-level government

Recognizing that economic development in Japan andRegarding non-financial information disclosure and conflictauthorities, who have decision-making power over regional

minerals regulation, we maintain ongoing dialogues with the

China will form a foundation for promoting infrastructure

infrastructure investment plans, as well as federal government

European Union’s Directorate-General for Internal Market,

system exports, and that fostering business in third countries

officials, by working closely with regional Hitachi Group

Industry, Entrepreneurship, and SMEs and Directorate-General

will be beneficial to those countries as well as Japan andcompanies. By proactively enhancing engagement in many

for Trade and communicate our views on each field via the

China, Hitachi is working to help establish relationships

areas, including security and trade issues, new technologies

JBCE. We also actively participate in the EU-Japan Working

between JEMA member companies and Chinese businesses.

such as IoT and AI, energy policies, and infrastructure invest-

Group on Corporate Social Responsibility, an EU-JapanFor instance, we have conducted research on Chinese heavy

ment, the Washington office will strive not only to support

industrial policy dialogue initiative. To promote engagement byelectric power companies regarding their current business

Hitachi’s business growth but also to contribute to US society

and dialogue with business leaders, in 2016 we worked withexpansion initiatives to overseas markets and studied potential

and the community.

affiliated organizations in Japan and Europe to organize andJapan–China joint projects.

host the EU-Japan CSR Business Dialogue, promoting conEurope: Hitachi Corporate Office, Europe

United States: Hitachi Corporate Office in Washington DC

The Hitachi Corporate Office, Europe, located in Brussels,versations on business contributions and influence throughdiscussion of CSR and SDGs.

The Hitachi Corporate Office in Washington DC has threemonitors policy and legislation trends in the European Union,

Since 1998, we have held the EU Hitachi Science &missions: (1) Enhancing Hitachi’s presence in the United States;

such as the European Commission and European Parliament,

Technology Forum to deepen understanding of Hitachi’s busi-(2) Contributing to the growth of business in the United States;

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

ness. Starting in fiscal 2016, we are focusing on the Social

Hitachi Sustainability Repor t 201831

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

Innovation Business and, in 2017, we held a forum aboutbasis. Starting in fiscal 2017, we brought in outside specialists

There were also comments about the need for activities thaturban environments and quality of life for their residents, withas external relations advisors to strengthen our voice in regional

could serve as a catalyst for corporate contributions to economic

speakers from the European Commission, think tanks, andpolicymaking. As One Hitachi, we will continue to seek dialogue

and social development and support synergy between busi-

NGOs, exploring how business and technology can contributewith policymakers across a variety of forums in order to resolve

ness, civic society, and government.

to European society. Through these activities Hitachi activelysocial challenges through policy contributions and business.

Based on the results of this dialogue, Hitachi India planned
its fiscal 2017 social contribution activities in the field of digitalcommunicates with European stakeholders.

Stakeholder Dialogue

literacy and skills development.

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

Hitachi organizes stakeholder dialogues in countries andincluding the environment, energy, transportation, and health-regions around the world to invite opinions on social challenges

In March 2018, Hitachi Australia and the Smart Cities Council

care that call for urgent solutions. At the same time, however,from stakeholders representing specialized knowledge platforms

Australia New Zealand (SCCANZ) cohosted a dialogue on theit offers a wealth of business opportunities. At Hitachi Asia Ltd.,and ensure that their insights are reflected in the businessrole of next-generation urban design and public safety technol-a core team made up of top-level managers from each national

activities conducted at each of Hitachi’s global businesses.

ogy in helping to build thriving communities and cities. A total

and regional office monitors legislative policies and legal regu-

Australia: Smart Cities and Infrastructure Developmentof 17 people attended, with representatives from government

lations impacting businesses across the Asia-Pacific region andIndia: Expanding the Reach of Social Contribution

agencies and NGOs as well as relevant industries like railway

ensures that business activities remain suitable to each location’s

Activities

and construction.

individual circumstances. On matters such as trade policies

In September 2017, Hitachi India held a CSR Stakeholder

and data flow issues that have cross-border implications,

Dialogue in New Delhi to gauge the effectiveness of the social

dition of Australia’s smart city market, business opportunities

solutions are sought through cross-border collaboration.

contribution activities it conducted in fiscal 2017. The dialogue

leading to sustainable growth through the fusion of technology

The Asia-Pacific region is known for its religious, political, andDiscussion ranged across topics including the current con-

was attended by 35 people, including representatives fromand data, and strategies for making cities more vital and livable.

economic diversity. To expand our Social Innovation Businessexternal stakeholders like public authorities and NGOs, and 16

Participants offered opinions on the role of public safety

in this region and contribute to solving the social issues it faces,internal stakeholders from Hitachi Group companies, BUs, andtechnology in urban planning solutions, referring in somecooperation with national and local governments and involve-

the legal and finance corporate functions.

cases to the details of Hitachi’s own business strategy forment in policymaking throughout the region, including Japan,

Hitachi India has been working with other Group companies

the public safety field.

is crucial. For this reason, we sponsor regional events like thesince fiscal 2016 to establish a CSR Task Force Committee

The dialogue allowed new bonds to be forged between

Hitachi Social Innovation Forum (HSIF) and Hitachi Youngand explore corporate social activities the group might under-

Australian government agencies, NGOs, and other corporations

Leaders Initiative (HYLI) and endeavor to advance long-termtake based on the Companies Act. At the dialogue, Hitachi

active in smart city development. Since the event, SCCANZ has

and organic involvement in international scholarship programs

presented its CSR policies and activities, and participants

initiated various follow-up actions including a Smart Cities

through the Hitachi Global Foundation as part of our strategy

discussed potential initiatives targeting digital literacy

Conference and a Western Sydney Smart Cities Action Cluster

to raise understanding and awareness of our values and vision(e-education) and skills development, sparking a lively

Scoping Workshop to be held in the second half of 2018.

for the future among those involved in formulating policy.

exchange of questions, answers, and opinions.

Hitachi has long emphasized information exchange andcommunication between Group companies on a national

Hitachi Sustainability Repor t 2018

Participants appreciated the efforts made by Hitachi, andsome stakeholders expressed interest in partnering with Hitachi.

32

Contents

Introduction

Management Approach

Recognition of Social Responsibility

Participation in Initiatives

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

International Standardization Activities

Hitachi Group Standardization Committee

To help create and expand markets as well as to accelerate

Main Initiatives in Which Hitachi Is Involved
United Nations Global Compact

our global business expansion, we are actively involved indeveloping international standards and are willing to commit

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

employees to serve as chairpersons or international secretaries

Global Compact in February 2009. Our corporate foundation isor in other key positions of international standards-developing

the basis for continuing growth as a global company, and itorganizations, such as the International Electrotechnicalalso needs to meet internationally recognized global standards

Commission (IEC) and the International Organization forthat go beyond national and regional laws and regulations. We

Standardization (ISO).

believe that respecting and implementing the 10 principles of

The Hitachi Group Standardization Committee was estab-the UN Global Compact will build a stronger foundation forlished to coordinate the efforts of all Hitachi Group companies

our business.

toward international standardization. The Steering Committee*1of this body determines priority themes and promotes standardi­
zation activities by establishing working groups for each theme.
Hitachi’s international standardization work is well regarded.
In fiscal 2017, we were honored by such bodies as the IEC, theMinistry of Economy, Trade, and Industry, the Telecommunication
Technology Committee, and the Information Processing Societyof Japan.
Hitachi is committed to contributing to international standardi­

World Business Council for Sustainable Development

zation via standard-developing organizations like the IEC, ISO,

The World Business Council for Sustainable Development

and various consortia to facilitate innovation that resolves(WBCSD) is an organization led by CEOs of forward-looking

social issues, as well as to providing solutions consistent withcompanies in more than 30 countries worldwide. Its aim is tointernational standards to support the development of soundcreate a sustainable future for business, society, and theglobal markets.

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

Hitachi Sustainability Repor t 2018

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

33

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

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

Steering Committee

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

Hitachi Group Standardization Committee

Contents

Introduction

Management Approach

Activities

Performance Data

Review and Improvement of CSR Activities

Hitachi’s Aims: Improving the Quality of Management Through Integration with CSR

Review and
Improvement of
CSR Activities

Hitachi Sustainability Repor t 2018

Our society faces a wide range of problems, including

the PDCA cycle. By communicating with our stakeholders,

global warming, poverty, and social discrimination,

we are affirming our relationship of trust with society, and by

and demand is growing for corporations to address

sharing values with stakeholders, we aim to achieve boththese problems.

the sustainable development of society and our economic

To meet these expectations, Hitachi is integrating its

growth as a global company. Senior management will play

management and CSR, incorporating CSR into routine

a leadership role in advancing measures to contributebusiness practices throughout the organization andto the resolution of global-scale social issues throughimproving the quality of management by implementing

our business operations.

34

Contents

Introduction

Management Approach
Review and Improvement of CSR Activities

Enhancing CSR Management

Enhancing CSR Management
Hitachi’s Approach

Hitachi’s CSR Management Framework

We have been building our CSR policy on a frame-

To realize the Hitachi Group Vision, which draws on ourwork based on ISO 26000 to promote the integration

Corporate Credo and Founding Spirit that form the core of ourof our management and CSR. In 2017, we reor-

CSR, and in keeping with a management strategy of actively

ganized our Group-wide sustainability structure byadvancing our Social Innovation Business, we have adopted alaunching the Executive Sustainability Committee,

framework of nine key themes based on ISO 26000 with thewhose members are Hitachi’s senior executives andaim of further integrating management and CSR and continually

the CEOs of various business units. The committee is

improving our CSR activities by running the PDCA cycle.

playing a central role in advancing Hitachi’s sustainability strategy. In addition, we are actively organizing

CSR Management Framework

global CSR meetings and undertaking initiatives at

Recognize

the national and regional levels with the aim of further

Properly recognize our social
responsibility

strengthening our global, Group-wide CSR network.
We attach importance to information disclosure, on
which communication with stakeholders is based,

1 Recognition of Social

Responsibility

and are responding to stakeholder needs through the

2 Corporate Governance

Hitachi Sustainability Report, meeting disclosure

3 Human Rights

requirements of the GRI Standards.

5 Environment

4 Labor Practices
6 Fair Operating Practices
7 Customers (Consumer Issues)
8 Community Involvement andDevelopment
9 Review and Improvement of

CSR Activities

Hitachi Sustainability Repor t 2018

Review and Improve

Identify, Prioritize, and Act

Confirm and enhance CSR activities
through proactive communicationand stakeholder engagement

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

35

Activities

Performance Data

Contents

Introduction

Management Approach
Review and Improvement of CSR Activities

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

Activities

Performance Data

Enhancing CSR Management

Material Issues and GRI Standards
ThemesMaterial issues

GRI standards

1 Recognition of social responsibility

Realizing sustainable, innovative management

GRI 203: Indirect economic impacts

2 Corporate governance

Understanding issues through dialogue and taking part in initiatives●●

Pursuing management efficiency and transparency

●

●

●

●

●

●

●

●

Sharing the Hitachi Group Identity

light of fluctuating economic and social conditions, we have

Reporting boundary
Internal External●●

GRI 205: Anti-corruption
GRI 419: Socioeconomic compliance

Advancing risk management on multiple fronts

These are further screened with reference to the GRI Standards

Achieving a fair and equitable work environment

and the ESG (environmental, social, and governance) investment

Promoting diversity and inclusion

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

indexes, reviewed by the executive officer in charge of CSR,

Promoting occupational health and safety

GRI 403: Occupational health and safety●

A strategy for growing together with our global human capital

GRI 404: Training and education
GRI 201: Economic performance
GRI 301: Materials
GRI 302: Energy
GRI 303: Water
GRI 304: Biodiversity
GRI 305: Emissions
GRI 306: Effluents and waste
GRI 201: Economic performance
GRI 301: Materials
GRI 302: Energy
GRI 303: Water
GRI 305: Emissions
GRI 306: Effluents and waste
GRI 307: Environmental compliance
GRI 404: Training and education
GRI 301: Materials
GRI 302: Energy
GRI 303: Water
GRI 304: Biodiversity
GRI 305: Emissions
GRI 306: Effluents and waste●

GRI 419: Socioeconomic complianceendeavored since fiscal 2014 to give specific examples of our3 Human rights

Respect for human rights throughout the value chain

initiatives under a nine-item CSR management framework. We
take note of stakeholders’ own priorities, analysis conductedby outside consultants, and the opinions of experts in choosing initiatives that correspond to our nine framework items.

and reflected in Hitachi Sustainability Report 2017.

Respect for workers’ rights
4 Labor practices

5 Environment

Advancing our Environmental Vision and long-term
environmental targets

We also aim to provide a more detailed account of the
topics’ social impact by clarifying the boundaries (importanceto internal and external stakeholders) of each topic.

Managing environmental risks and opportunities

Continuous enhancement of environmental governance

Promoting the Environmental Action Plan (metrics and targets)

6 Fair operating practices

Promoting work practices in line with international ethics codes

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

GRI 417: Marketing and labeling●●

Ensuring accessibility to products and services

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

●

●

●

●

GRI 413: Local communities●●

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

Promoting sustainable community involvement and development

9 Review and improvement of CSR activities

Enhancing CSR management

Comparative Tables with GRI Standards Content Index

Hitachi Sustainability Repor t 2018●

Pursuing customer satisfaction

Engaging in responsible procurement
7 Customers (consumer issues)

GRI 205: Anti-corruption
GRI 206: Anti-competitive behavior
GRI 415: Public policy
GRI 204: Procurement practices
GRI 414: Supplier social assessment
GRI 308: Supplier environmental assessment

●

36

●

Contents

Introduction

Management Approach
Review and Improvement of CSR Activities

Incorporating Dialogue into CSRManagement

Enhancing CSR Management

us to address in light of ISO 26000, the UN Global Compact,and other environmental frameworks. In order to achieve thesegoals, we built the Hitachi Value Creation Model for delivering

Communication in Response to
Stakeholder Expectations

value created through our Social Innovation Business. More-

Hitachi incorporates feedback obtained through dialogue with

Force on Climate-related Financial Disclosures, we are improv-

stakeholders in its sustainable practices to improve CSR

ing disclosure of our long-term initiatives to address business

management.

opportunities and risks posed by climate change. These initia-

In February 2017, we held a stakeholder dialogue in Belgium
with the aim of improving our integrated reports by taking

over, in accordance with the recommendations of the Task

tives are detailed for our stakeholders in the Hitachi Integrated
Report 2018.

stakeholder views and opinions into consideration. In Europe,

Moving forward, Hitachi will strive to actively engage ininvestors have more interest in non-financial information anddialogue with stakeholders to enhance our efforts toward sus-

many corporations have been publishing integrated reports fortainability and information disclosure.

some time.
The meeting was attended by 17 representatives from suchorganizations and bodies as the International Integrated
Reporting Council (IIRC), the World Intellectual Capital Initiative(WICI), and the Directorate-General for Financial Stability,
Financial Services, and Capital Markets Union (DG FISMA), as
well as corporations with experience issuing integrated reports
and major European investment companies.
We received feedback from attendees such as “Identifying
crucial issues makes it possible to indicate what value theParticipants in the February 2017 stakeholder dialogue held in Belgium.

business can provide in the long term,” and “Recognizing therisks that could impede the entire Group’s business operations and identifying countermeasures against them, including
processes, demonstrates a corporate commitment to improving risk management and helps enhance stakeholder trust in
the company.”
Based on this feedback, in fiscal 2017 we reviewed business risks and opportunities related to each of the 17 SDGs
and identified 11 goals that we regard as key social issues for

Hitachi Sustainability Repor t 201837

Activities

Performance Data

Contents

Introduction

Management Approach

Activities
Activities

Activities38
Corporate Governance

39–51

Customers (Consumer Issues)

79–86

Pursuing Management Efficiency and Transparency

40

Pursuing Customer Satisfaction

80

Sharing the Hitachi Group Identity

45

Ensuring Accessibility to Products and Services

82

Advancing Risk Management on Multiple Fronts

48

Ensuring Thorough Management of Quality and Safety

84

Human Rights

52–56

Community Involvement and Development

Respect for Human Rights Throughout the Value Chain

53

Promoting Sustainable Community Involvement

Respect for Workers’ Rights

56

and Development

Labor Practices

57–70

87–90
88

Environment91–127

Achieving a Fair and Equitable Work Environment

58

Advancing Our Environmental Vision and Long-Term

Promoting Diversity and Inclusion

60

Environmental TargetsPromoting Occupational Health and Safety

65Managing Environmental Risks and Opportunities

96

Continuous Enhancement of Environmental Governance

100

A Strategy for Growing Together with Our Global
Human Capital
Fair Operating Practices

68

92

Promoting the Environmental Action Plan (Metrics and Targets) 111

71–78

Promoting Work Practices in Line with International
Ethics Codes

72

Engaging in Responsible Procurement

74

Hitachi Sustainability Repor t 201838

Performance Data

Contents

Introduction

Management Approach

Activities

Performance Data

Corporate Governance

Hitachi’s Aims: Developing Efficient and Transparent Corporate GovernanceCorporate
Governance

Hitachi Sustainability Repor t 2018

“Sustainability management” is expected to play an array ofsustainability perspectives are reflected in management

roles in realizing a sustainable society, a key component ofdecision making and a common identity is shared through-the Sustainable Development Goals (SDGs)—the centerpieceout the Hitachi Group. In addition to pursuing greater man-of the 2030 Agenda for Sustainable Development, adopted

agement efficiency and transparency, we have identified theby the United Nations in 2015. We believe that meeting

main themes of this effort as sharing our Codes of Conductsociety’s expectations requires a corporate culture thatand values throughout the Group and promoting multifaceted

unfailingly contributes to the resolution of social issues

risk management. In these ways we are accelerating thethrough the creation of products and services and thatdevelopment of corporate governance that incorporates

ensures ethical and fair business activities.

sustainability into our decision making and operations

We are cultivating a self-directed corporate culture whereacross our business activities.

Hitachi and Society
Our Impact on Society

Our Performance

No. of employees (consolidated)

Translation of the Hitachi Group
Codes of Conduct

307,275

21

39

languages

Contents

Introduction

Management Approach

Activities

Corporate Governance

Performance Data

Pursuing Management Efficiency and Transparency

Pursuing Management Efficiency and Transparency
Hitachi’s Approach

Corporate Governance

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

We not only strive to ensure the legality, soundness,

Driving Hitachi’s Governanceand transparency of our business but also endeavor

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

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

to respond rapidly to constantly changing economic

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

global, diverse viewpoints in company management, as well as

and social conditions and efficiently conduct opera-

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

tions. At the same time we are bolstering manage-

realize highly transparent management by separating thement oversight and monitoring capabilities andresponsibilities for management oversight from the execution

clearly defining managerial responsibilities with aof business operations. The majority of our Board of Directors

view to sustainably enhancing our corporate value by

are independent outside directors, including non-Japanese.

forging ever-stronger corporate governance.

Our goals are to reflect diverse and global viewpoints as welloutside directors and includes four non-Japanese directors,
1

General Meeting of Shareholders
Elect

Board of Directors(12 members, including 8 from outside)

Worldwide social and environmental megatrends,

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

reached a point in recent years where they are having

outlining the framework of corporate governance, such as theNominating
Committee

a bigger impact on corporate management decisions.

function and composition of the Board of Directors, qualifica-(4 members, including 3
from outside)

As a global company that contributes to society

tions for independent outside directors, and the criteria forthrough our Social Innovation Business, we are work-

assessing the independence of these directors.

ing to ensure that environmental and social issues areat the heart of decision-making at the highest levelsof corporate governance.

Appoint(6 members, including 4
from outside)

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

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

Strengthening Structures to Expand Our Social
Innovation BusinessWe give great importance to management efficiency and transparency and appropriate organiza-

Audit Committee

Corporate Governance Guidelines

tional control and are firmly maintaining and

Hitachi is continuing efforts to strengthen its business struc-reinforcing a management structure enabling us totures in order to accelerate collaborative creation with custom-

strengthen our efforts to fulfill our social responsibili-

ers and develop value-creating innovations through services

ties on multiple fronts, such as through proper infor-and products. In April 2016, we transitioned to a market-driven

mation disclosure and tripartite audits.

business structure with three levels—namely, “Front,”“Platform,” and “Products.” Starting in April 2018, this structure
has been reinforced to promote global development of digitalsolutions.

Hitachi Sustainability Repor t 201840

Contents

Introduction

Management Approach

Activities

Corporate Governance

Strengthening Frontline Functions of Focus
Business Domains

Performance Data

Pursuing Management Efficiency and Transparency

Strengthening Structures to Promote Digital
Solutionsand Hitachi Digital Global Holdings under unified control andenhancing cooperation among the two as well as other busi-

Our frontline function businesses include 10 Front business

Digital solutions are a growth driver for the Social Innovation

ness units, Hitachi aims to promote the use of digital technolo-

units (BUs) and other functions with strengthened capabilities

Business. To accelerate them globally, since April 2018 thegies in the Social Innovation Business. Hitachi Global Digitalin sales, engineering, and consulting. These functions target

executive vice president and head of the Systems & Services

Holdings has brought together under its umbrella Hitachi

our four focus business domains of “power and energy”;

Business has held an additional role as head of the Social

Vantara, which develops and provides IoT platforms and data

“industry, distribution, and water”; “urban”; and “finance,

Innovation Business to supervise strategic planning for digital

analytics services, and the Hitachi Consulting Corporation,social, and healthcare.” Each will provide innovation as a ser-solutions as well as customer approach and new strategic

which is headquartered in the Unites States and provides con-vice to customers in their region, and we will create synergies

projects. By placing the Social Innovation Business Divisionsulting services.

in each focus domain in order to globally develop our
digital-driven Social Innovation Business.

Fiscal 2018 New Business Structure

Our Services and Platforms Business Unit offers a shared

President and CEO

platform aggregating and integrating technologies essential foradvanced services, including artificial intelligence, analytics,

Executive Vice
President

and control technologies.

Platform

Services & Platforms Business Unit

Products

Industrial Products Business Unit

customers.
Our business model aims to sustainably create value.
Through our Social Innovation Business, we contribute toimproving people’s quality of life by addressing on an ongoing

Power and energy

Industry, distribution, and water

Urban

Finance, social, and healthcare

basis the issues society and our customers face.
Hitachi to Make a Transition to a Market-Specific Business Structure with Strengthened Frontline Functions
Hitachi to Strengthen Business Structures for Global Expansion of the Social Innovation Business

Hitachi Sustainability Repor t 201841

Defense Systems Business Unit

flexibly in order to provide optimum products and services to

Healthcare Business Unit

the entire Hitachi Group and creating innovations quickly andSocial Infrastructure Systems Business Unit

comprehensively and organically leveraging the resources ofFinancial Institutions Business Unit

profit and earnings. They work in partnership with other BUs,

Automotive Systems

each unit’s CEO has investment authority and responsibility for

Executive Vice
President

Smart Life & Ecofriendly Systems

Front

Because BUs are under the direct control of the president,

Railway Systems Business Unit

and materials, all while pursuing synergies as a Group.

Building Systems Business Unit

Front BUs with innovative, globally competitive products, parts,

Water Business Unit

Industrial Products Business Unit. These provide customers andIndustry & Distribution Business Unit

within the Hitachi Group that handle product businesses and ourPower Business Unit

Nuclear Energy Business Unit

Our product-focused businesses include the companies

Executive Vice
President

Executive Vice
President

Introduction

Contents

Management Approach

Activities

Corporate GovernanceInternal Control over Financial Reporting

Performance Data

Pursuing Management Efficiency and Transparency

Toward a More Integrated “Tripartite Audit”
Functionexternal auditing firm. Through close communication, the three

To ensure the reliability of consolidated financial reporting, theGroup develops and uses control documents ranging from

We are working to further enhance the effectiveness of the

responses; ensure the audit process is transparent with appro-company-level to business process controls based on theinternal control exerted through the integrated work of a

priate checks and balances; and improve the effectiveness ofguidelines determined by our J-SOX Committee. Business units“tripartite audit” function comprising the Audit Committee; ourinternal control systems.

within Hitachi, Ltd. and major Group companies have devel-internal audit sections, principally, the Internal Audit Office; andfunctions share information about risks and evaluation of risk

oped mechanisms to objectively perform assessments. The
J-SOX Committee office collects the results of the assessments
performed by each business unit and company, and assesses
the effectiveness of internal control across the entire Group.

Improving Internal Control through a “Tripartite Audit” Function
Goals

Audit Committee audit on
risk-based approach

1 Leveling of audit methods
2 Improving efficiency and transparency in

Hitachi Group Internal Control Assessment Framework

audit processes with a risk-based approach

Audit Committee

Evaluation of audit content

Evaluation of audit content

Financial Services Agency

Status report on internal audit

Internal Control
ReportRequest for detailed internal audit ofissues identified by Audit Committee

Hitachi, Ltd. President andCEO

ReportJ-SOX Committee
J-SOX Committee’s Office
ReportExchange of opinions regarding
audit plans, fee, risk evaluation, etc.

Report on important financial and accounting findingsInternal audit section(Internal Audit Office)

CFO
ReportStatus report on accounting audit

Sharing of risk
information

Audit
Committee

Independent
Auditors

Collaboration

Internal
Auditing
OfficeEvaluation of audit content

ReportRegular business-site-levelinternal audits

External
Audit

Business Units and Major
Group Companies
ReportSubsidiary Companies

Hitachi Sustainability Repor t 201842

Identification of issues throughinternal control audit andevaluation of severity of fraud
risk, etc.

Auditing firm
Accounting audit centered on accuracy andreliability of financial statements

Contents

Introduction

Management Approach

Activities

Corporate GovernanceDirector and Executive Officer Compensation

Performance Data

Pursuing Management Efficiency and Transparency

Compensation Structure2Year-end allowance

The Compensation Committee, of whose members more than(1) Directors

Year-end allowance is a predetermined amount equivalent tohalf are independent outside directors, sets forth the policy on

Compensation for directors consists of basic remuneration andabout 20% of the director’s annual basic remuneration, but

the determination of compensation details for directors anda year-end allowance.

may be reduced depending on financial results.
A director concurrently serving as an executive officer does

executive officers and, based on this policy, the amount of

not receive any compensation as a director.

compensation, etc., of each director and executive officer,

1

pursuant to applicable provisions of the Companies Act.

Basic remuneration is decided by adjusting a basic amount toSince fiscal 2008, the compensation structures for directors and executive officers has been revised to eliminate sev-

Basic remunerationreflect full- or part-time status, committee membership andposition, travel from place of residence, etc.

erance payments.
(2) Executive officers
Compensation for executive officers consists of basic remuneration, performance-linked compensation, and medium- and long-

Basic Policy

term incentive compensation. The higher position the executive officer holds, the higher the proportion of variable pay is as a

• Compensation shall be sufficiently attractive to retain the

portion of total annual compensation.

personnel required to realize improvements in enterpriseFixedremuneration

value through global business growth.
• Compensation shall be commensurate with the roles and

1 Basic

responsibilities of directors and executive officers.

+

remuneration

Variable pay (basic amount)
2 Performance-linked

compensation＋=

Total remuneration

3 Medium/long-term incentives• Compensation for directors shall contribute to effective
25%–35% of total remuneration

supervision of management.

10%–40% of total remuneration• Compensation for executive officers shall provide incentives to contribute to sustained improvement in enterprise

1value through business execution, while striking an appro-

Basic remuneration is decided by adjusting a basic amount to

The performance-linked compensation is decided within thepriate balance between short-term results and perfor-

reflect the results of an assessment. The basic amount is set inrange of 0%–200% of the basic amount based on financial

mance over the longer term.

accordance with the relevant position.

results and individual performance. The basic amount is set

Basic remuneration

2

Performance-linked compensation• Compensation levels shall take into account remuneration

within the range of about 25%–35% of the total annual com-

at other companies, along with economic conditions andpensation of each executive officer in accordance with themarket trends.

relevant position.

• In considering the terms and amounts of compensation,
the Compensation Committee shall seek objective advice

Positionrelated
×(basic amount)as necessary from outside experts.

Hitachi Sustainability Repor t 201843

Assessment ×0%–200%
Performanceassessment

Individual
performance=

Performancelinked
compensation(payments)

Introduction

Contents

Management Approach
Corporate Governance3

Medium- and long-term incentive compensation

Activities

Pursuing Management Efficiency and Transparency

Directors or executive officers whose compensation from theMedium- and long-term incentive compensation is stockcompany and its subsidiaries is not less than ¥100 million and theoptions as stock-based compensation, with share price condi-

amount of their compensation are as listed at the following link:tions (stock acquisition rights with the strike price of ¥1). The
number of stock acquisition rights to be granted is determined

Annual Securities Report (The 149th Business Term) (pp. 75–77)

within the range of about 10%–40% of the total annual compensation of each executive officer in accordance with therelevant position. The number of stock acquisition rights that
may be exercised will be determined within the range of
0%–100% of the stock acquisition rights granted in accordance with the conditions. The proportion of the assessment(0%–100%) is determined by comparing the total shareholder
return*1 for Hitachi stock against the rate of growth in the
TOPIX benchmark. This is set to 0% if the TSR is less than
80% of the TOPIX growth rate, and reaches 100% once the
TSR rises to at least 120% of the TOPIX growth rate, withintermediate results for figures in the 80%–120% range.
Positionrelated stock×
options granted(basic amount)

Assessment 0%–100%
Relative to TOPIX growth rate

Exercisable= stock options(fully vested)*2*1 Total Shareholder Return (TSR) includes capital gains (due to share price movements) andincome (dividends).
*2 Stock options can no longer be exercised if fraud or other serious misconduct occurs
during the term of office. Under a claw-back arrangement, the company can demand
repayment of economic gains made from any options that have already been exercised if
fraud or other serious misconduct is discovered during the term of office.

Hitachi Sustainability Repor t 201844

Performance Data

Contents

Introduction

Management Approach

Activities
Corporate Governance

Performance Data

Sharing the Hitachi Group Identity

Sharing the Hitachi Group Identity
Hitachi’s Approach

surveys in every region, in addition to implementing

toward a sustainable society, human rights and building a work

export-import controls and inspecting the content ofenvironment, and various types of crisis management.

We carry out our business not only in full compliancetransactions so as to ensure normative conduct—freewith legal requirements but also in ways that ensureof complicity in any illegal behavior—throughout thesocially responsible conduct. Spreading understand-supply chain.

Hitachi Group Codes of Conduct

ing of this among all Hitachi employees is a funda-

Enhancing Our Compliance Framework

mental management issue. As economic activity

In 2016, Hitachi reviewed and recorganized the regulations andbecomes increasingly borderless, there is a growing

guidelines including on compliance with competition laws,need for steps to eradicate bribery, corruption, andother illegal behavior in accordance with conditions

Sharing Codes of Conduct and ComplianceApproaches Throughout the Groupin the countries and regions where we have opera-

prevention of antisocial transactions, and prevention of bribery
and corruption that had been set independently, and establishedthe Hitachi Global Compliance Program, a new integrated
system of rules headed by the Hitachi Group Codes of Conduct.

consistent compliance structure across the entire

Ensuring Awareness of the Hitachi Group Codesof Conduct

Hitachi Group.

Hitachi, Ltd. is a pioneer in developing business ethics. The

global organization.

tions. As a global company, we are implementing a

In pursuing sustainable management, we givecompany formulated the Hitachi, Ltd. Standards of Corporate

This program is being implemented seamlessly across the
To implement this program, we have appointed a seniorequal importance to value creation that contributes to

Conduct in 1983, followed by the Hitachi Group Codes ofexecutive as the head of risk management for the entire

the resolution of social issues. This is being

Conduct in 2010 that the entire Group pledges to uphold. The

Hitachi Group, to supervise risk management executives fromadvanced through the dissemination and sharing

Hitachi Group Codes of Conduct are available in 21 languages

business units and key Group companies. Under this system,

among all employees of the Hitachi Group Identity—and shared among Hitachi Group employees in the world. We

policies and measures are shared through the Compliance

an integrated set of principles including our manage-

also issued the Hitachi Group Codes of Conduct Handbook as

Management Conference, composed of these risk management

ment vision and values—and the Hitachi Codes ofa guidebook for all our employees to fully understand the Hitachi

executives. Each executive is assisted by a compliance man-Conduct, which spell out decision-making proce-

Group Codes of Conduct. In Japan alone, more than 260,000

ager who implements practical support measures. We alsodures and actions for all Hitachi Group executives

copies were distributed. In addition, an e-learning tool has

support Group companies outside Japan and have appointed

and employees.

been made available in Japanese and nine other languages,

compliance heads in 11 regions, responsible for implementing

such as English and Chinese, showing appropriate behavior

education and sharing information as well as arranging consul-

and presenting specific examples for use.

tation services with outside attorneys and other experts.

As our operations expand across the globe, oursupply chain, too, is globalizing at an accelerating
pace. This demands that we fulfill our social respon-In April 2018, we revised the Hitachi Group Codes ofsibilities not only as a Group but also in working with

Conduct based on our philosophy that corporate activities

reviews to verify that each area of compliance is being

business partners. We thus conduct compliance risk

should meet the needs of the times, such as the SDGs,

appropriately operated. In cases where the reviews identify

Hitachi Sustainability Repor t 201845

The internal audit section regularly conducts Group-wide

Contents

Introduction

Management Approach

Activities
Corporate Governance

Performance Data

Sharing the Hitachi Group Identity

necessary improvements, corrective measures are swiftly

Prevention of Antisocial Transactions

companies within and outside Japan, we host training sessions

implemented. We also convene the Advisory Committee,

To cut off all relationships with organized crime groups andand workshops on export control in addition to the annual

consisting of outside experts, to gain new insights into

other antisocial forces, in the Hitachi Group Codes of Conduct

implementation of an e-learning program in Japanese, English,

compliance and apply them proactively in our own efforts.

we have laid out provisions stating that we will never engage inand Chinese. Moving forward, we will continue to make anantisocial transactions under any circumstances in any part ofeffort so that export control is thoroughly enforced throughout

Compliance Reporting System

the world, and will refuse any improper demands and unfair

the Group.

Hitachi has instituted a Group-wide whistleblowing system todeals. To this end, we conduct eligibility checks on new as

prevent illegal and unethical behavior, to promptly address

well as existing business partners and include antisocial force

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

rejection clauses in contracts so that if it is determined that a

In this system, reports go directly to the Compliance

Measures to Prevent Bribery and Corrupt Practices
Preventing Violations of Fair Competition Laws

business partner belongs to an antisocial force, we can

Department at Hitachi or to an outside attorney. This systempromptly void the contract and end the relationship. The entire

can be used not only by employees within the Hitachi Group

Hitachi Group acts decisively to eliminate approaches frombut also by temporary staff and business partners, such as

antisocial forces in partnership with external specialist

suppliers and distributors. Fiscal 2017 saw 360 reports

institutions (the National Center for the Elimination ofthroughout the Group, including some related to suspected

Boryokudan and the police).

Sharing Values Throughout the Group
Solidifying the Hitachi Group Identity
Instilling the Group Identity in Employees

violations of competition and anti-bribery laws.

To help us solve social issues through understanding andThorough Export Controls

embodiment of the Hitachi Group Identity, our brand manage-investigation and checking, and people who have identified

For basic export control policies, we have adopted the Hitachi

ment must engage everyone in the Group. We use channels,

themselves in the reports are informed of the investigation

Group Codes of Conduct, which state: “We will help maintain

including our intranet, to ensure that Group employees are

results. We make every effort to deal with situations as appro-

international peace and security through compliance with all

clearly aware of what needs to be done to express the Hitachi

priate, including taking remedial action where necessary. We

applicable laws and regulations concerning import and export,

Group Identity. To promote understanding of and familiarity withwill continue to maintain and review the system, prioritizing theand will operate appropriately according to our internal rules

the Hitachi Group Identity and the Hitachi brand, we launched

protection of whistleblowers.

and policies.” We established the Corporate Regulations con-the Inspiration of the Year Awards in fiscal 2003 to share

In addition, we have implemented the Channel to thecerning Security Export Control based on this policy to carry

activities within Hitachi that have demonstrated the Hitachi

Board of Directors system to allow employees to directly reportout strict export control practices in line with relevant laws andGroup Identity and made an outstanding contribution to our

problems anonymously to Hitachi directors in cases where

regulations, screening all goods and technologies intended forbrand value. In fiscal 2012, we began evaluating applications

they see any illegality or extreme inappropriateness in business

export against such factors as destination countries andglobally, renaming the program the Inspiration of the Year

conduct by division heads, executive officers, or otherregions as well as intended end use and end users. We provide

Global Awards. In fiscal 2017, the awards saw 232 applications

management personnel.

guidance and educational support on the formulation of regu-

from various regions, including China, Europe/Africa, India,

lations as well as on the establishment of frameworks to Hitachi

North America, Southeast Asia, and Japan. Outstanding

Group companies in Japan and around the world to ensure that

activities from each region were highlighted on the intranet,

all Group companies follow the same export control policies.

and the president presented the awards at a ceremony held

The facts related to all reports are subject to thoroughAt present, as part of our educational program for all Group

Hitachi Sustainability Repor t 201846

at our Tokyo headquarters.

Contents

Introduction

Management Approach

Activities
Corporate GovernanceTo further instill the Hitachi Group Identity and promote
understanding of the Hitachi brand among our employees
globally, we held brand-training sessions utilizing the Hitachi
Brand Book, a straightforward explanation of the Hitachi Group
Identity and Hitachi brand, and the Hitachi Vision Movie, a visual
depiction of the Hitachi Group Vision. By raising employee
awareness of the Hitachi Group Identity through these activities,
we continue to strive to become a company that “delivers
innovations that answer society’s challenges.”
Hitachi Group Identity

Hitachi Sustainability Repor t 201847

Sharing the Hitachi Group Identity

Performance Data

Contents

Introduction

Management Approach
Corporate Governance

Activities

Performance Data

Advancing Risk Management on Multiple Fronts

Advancing Risk Management on Multiple Fronts
Hitachi’s Approach

Risk Managementof production information, and the need to secure alternate
transportation and fuel sources. Based on the lessons learned

Changes to our operating environment from such

Reinforcement of Risk Management Systemfrom this disaster, in October 2011 we released and distributed

factors as the globalization of the economy and

The entire Hitachi Group is reinforcing its risk management

new versions of the Hitachi Group Guidelines for Developing

advances in and spread of information and communi-

system to address increasingly globalized and complex risks.

Business Continuity Plans for individual departments to further

cations technology (ICT) lead not only to the expan-

Under the head of risk management at Hitachi, Ltd., each

improve our BCPs.

sion of business opportunities but also to thebusiness operation assigns an executive as its risk management

diversification of risks to our operations.

officer to manage risks mainly concerned with compliance,

Japan had completed their preparation and review of BCPs for

By the end of fiscal 2011, Hitachi Group operations in

We have built a diverse risk management system underexport control, disasters, and crime, and to respond adequately

both large earthquakes and novel strains of influenza as appro-

which we carry out risk analysis to accurately gauge ongo-

in coordination among the entire Group. Furthermore, Hitachi

priate to their operations.

ing economic and social changes and use the insights

is building a comprehensive risk management system that

On top of these efforts, Hitachi, Ltd. has held annual earth-

gained to take preventive measures and ensure a rapid

contains standards and procedures to objectively evaluate

quake drills simulating a major seismic event at key operations

response to issues that may arise unexpectedly.

different risks that may affect business.

in Japan since fiscal 1998. In March 2018, we held initial

Particularly in recent years, as a company deeply
involved in infrastructure projects in countries andresponse drills at our headquarters under the direction of our

Stable Provision of Products and Services

regions around the world, we take note of the discus-

head office general manager simulating a large earthquake in
the Tokyo area, striving to promote understanding of eachsions at meetings like the World Economic Forum on

Creating BCPs in Key Operations Worldwide

department’s role and strengthen cooperation among depart-such international risks as the unending series ofGiven the close relation of our business to social infrastructure,ments. As part of countermeasures against large earthquakes

terrorist attacks, the increasing severity of abnormal

we are enhancing our business continuity plans (BCPs) to

striking the Tokyo metropolitan area, in December 2017 weweather conditions, global-scale climate change, andensure that the impact of risks does not disrupt our businessdeveloped action plans including setting up substitute head-

the growing scale and sophistication of cyberattacks.

and thereby significantly affect society. In December 2006, wequarters in the Kansai region in case our Tokyo headquarters

We are reinforcing business continuity plansissued the Hitachi Group Guidelines for Developing Businesscease to function temporarily due to such earthquakes.

(BCPs) and further tightening our information security

Continuity Plans (Overview) in Japanese. In fiscal 2010 thisHitachi appointed personnel with responsibility forto ensure the stable supply of our products and ser-was translated into English and Chinese for distribution to allrisk-response policies at its main overseas bases in fiscal

vices and to prevent threats to our networks that

Hitachi Group companies worldwide to ensure our response

2013. By the end of that year, around 300 companies pre-could severely disrupt business operations. We willreadiness for large disasters and other risks.

pared BCPs with the goal of completing them for key operations.

continue to reinforce our risk management on a

When the Great East Japan Earthquake struck in March

These BCPs are aimed at strengthening our ability to respond toGroup-wide basis and make thoroughgoing efforts to2011, our BCPs enabled quick responses and swift decisionbusiness risks, including large disasters, novel strains of influenza,minimize risks to society from our operations.

making. However, issues emerged, including identification ofpolitical instability, and social disruption, as well as acts ofsecondary and other suppliers, cloud storage and multiplexing

terrorism. Moving forward, we intend to further expand the

Hitachi Sustainability Repor t 2018

48

Contents

Introduction

Management Approach
Corporate Governancescope of our BCPs.

Activities

Performance Data

Advancing Risk Management on Multiple Fronts

consider substitute products. To see whether or not procurement

Promoting Information Security

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

Implementing Rigorous Information Security

making further improvements as a result.

Hitachi’s chief information security officer (CISO) is appointed by

In fiscal 2017, all major Group business sites with production

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

the company’s president and has the authority and responsibilitylines (approximately 208 sites in total) took steps to maintainto implement and operate an Information Security Management

and strengthen the procurement BCPs they had created by the

System (ISMS). In fiscal 2017, the role of CISO was performed

previous fiscal year, thereby contributing to the continuation of

by Hitachi’s executive vice president and executive officer.

Hitachi’s global operations.

The Information Security Committee, chaired by the CISO,
determines policies and procedures for information security

Improving Safety for Employees Sent toDangerous Regions

and personal information protection. The Information Security

Responding to the hostage incident in Algeria in January 2013,

and to other companies in the Hitachi Group. Information

then President Hiroaki Nakanishi reinforced his policy in February

security officers at business sites and companies ensure that2013 of ensuring the safety of employees sent to countries andthese decisions are implemented in the workplace.

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

Promotion Council and other bodies convey decisions internally

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

terrorism, and other threats. Even after employees are dispatched
Earthquake simulation drill.

to such areas, we conduct additional local surveys every six
months as a means of confirming the effectiveness of oursafety policies. In fiscal 2017, with the threat of terrorism(1) Precautionary measures and prompt security responses
We clarify the principal systems and assets to be secured, using
vulnerability and risk analyses to formulate companywide business
continuity plans (BCPs) for cyber incidents and to implement

Creation of Procurement BCPs

expanding around the world and infectious diseases spreading

We have a deep involvement in social infrastructures in places

regionally, we introduced a range of safety measures, including

where the suppliers who are our business partners can beproviding timely alerts to employees. This underscores ouraffected by major earthquakes and other natural disasters.

commitment to ensuring the safety of our employees working(2) Promoting stronger ethical and security awareness among data users

These disasters can heavily impact not only our businessaround the globe. Hitachi is also contributing to safety measures

We have prepared a program tailored to Hitachi’s various personnel

operations and those of our suppliers but also society as aat other Japanese corporations operating outside Japan. To

levels and are working to raise the prevailing sense of ethics andwhole. To minimize this impact, the procurement divisions in

help enhance collaboration between the private and public

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

business units and key Group companies in Japan havesectors in this area, Hitachi executives participated in the

conducting audits to identify and address problems early on.

created procurement BCPs that (1) standardize and use

Council for Public-Private Cooperation for Overseas Safety

generic parts to make procurement as flexible as possible;organized by Japan’s Ministry of Foreign Affairs. Since 2014(2) cultivate multiple suppliers; (3) distribute production acrossHitachi has taken part in public-private kidnap incident prepa-

several locations; (4) budget inventory strategically; and (5)ratory training exercises.

Hitachi Sustainability Repor t 201849

safeguarding measures. We also have an emergency process
manual for security breaches, based on the assumption that these
are inevitable, and not just possible.

Introduction

Contents

Management Approach
Corporate Governance

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

Activities

Performance Data

Advancing Risk Management on Multiple Fronts

Education on Information Security

We take the following IT steps to prevent information leaks:

third-party assessments and certifications, are contained in

Consistently maintaining information security requires allusing encryption software and secure PCs; employing electronic

Information Security Report 2017.

employees to continually develop their knowledge of information

document access control and expiration processing software;

handling and to remain strongly aware of the issues. For thismaintaining ID management and access control by building an

reason, we hold annual e-learning programs on information

authentication infrastructure; and filtering e-mail and visited

security and personal information protection for all directors,

websites. In response to the recent spate of targeted e-mailemployees, and temporary employees.

attacks and other cyberattacks, we are participating in an

Information Security Report 2017

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

Improve user literacy
Supply security educationmaterials
Educate managers andstaff

Information
assets to beprotected

Implement preventive
techniques
Widely implementadministrative measures
Deploy technologicalprocesses

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

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

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

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

adding more layers to our leak prevention procedures, including

audiences, including new employees, new managers, andboth entry and exit countermeasures.

information system administrators. In 2012, we also began

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

suppliers, we review their information security measures based

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

to heighten their awareness of security through direct experience.

(procurement partners) for security education and for checking

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

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

personal computers to prevent leaks.

information protection.
Three Principles for Preventing Leakage of Confidential

Preventing Information Leaks
Hitachi, Ltd. has formulated the Three Principles for Preventing
Leakage of Confidential Information to ensure the highest levelof care for such information and to prevent leaks and otherrelated incidents. Our policies ensure that if an incident does

Information
Principle 1
As a general principle nobody can take Confidential Information out of
the Company’s premises.
Principle 2
Any person taking Confidential Information out of the Company’soccur, damage is promptly minimized by contacting customers,

premises due to business necessity shall obtain prior approval from

reporting to government agencies, investigating causes, andthe Information Assets Manager.

acting to prevent any recurrence.

Principle 3
Any person taking Confidential Information out of the Company’s
premises due to business necessity shall put in place relevant andappropriate measures against information leakage.

Hitachi Sustainability Repor t 201850

Contents

Introduction

Management Approach
Corporate Governance

Global Information Security Management
Hitachi Group companies worldwide reinforce their information
security in line with our Global Information Security Administration
Rules, which conform to the international ISO/IEC 27001
standards. These rules are distributed from the parent
company in Japan to Group companies around the world.
Other security measures include secure shared services andsupport from our regional headquarters in the Americas,
Europe, Southeast Asia, China, and India.

Thorough Information Security Audits andInspections
The Hitachi Group has developed its approach to security
based on the “plan-do-check-act” (PDCA) cycle for its
information security management system. We conduct annual
information security and personal information protection audits
at all Group companies and business units.
The president of Hitachi, Ltd. appoints officers to conduct
independent audits. These officers are not allowed to audit
their own units, underlining our commitment to fairness andobjectivity in auditing. There are 221 Hitachi Group companies
in Japan, including Hitachi, Ltd., that conduct audits in the same
way as Hitachi, Ltd., and all results are subject to confirmation.
For Hitachi Group companies outside Japan, we use a“common global self-check” approach to ensure Group-wide
auditing and inspections. We implement Confirmation of
Personal Information Protection and Information Security
Management annually for the voluntary inspection of business
unit workplaces. We conduct monthly Confirmation of Personal
Information Protection and Information Security Management
assessments at 693 operations (as of March 2018) that handle
important personal information. This regular control mechanism
ensures ample safety management and implementation.

Hitachi Sustainability Repor t 201851

Activities

Performance Data

Advancing Risk Management on Multiple Fronts

Contents

Introduction

Management Approach

Activities

Performance Data

Human Rights

Hitachi’s Aims: Thoroughgoing Respect for Human Rights Across the Value Chain
As our value chain expands on a global scale, we find

we will respect the human rights of all stakeholders, including

diverse working environments, business norms, and trade

our own employees and across the supply chain, in every

practices in countries and regions around the world, and thiscountry and region where we operate. We are also engaged

has highlighted the need to ensure respect for human rights

in raising awareness of human rights and promoting the use

in our operations. Society’s awareness of human rightsof grievance mechanisms to address employee concerns

issues is also rising, and companies are expected tothroughout the Hitachi Group. At the same time, we are

address human rights issues in accordance with such inter-strengthening human rights due diligence and expanding thenational standards as the UN Guiding Principles on Businessscope of other human-rights-related activities.

and Human Rights. Companies are now being asked not

Key SDGs

only to respect human rights in their own activities but also
to avoid becoming complicit in the human rights infringements of their suppliers and customers.

Human Rights

In carrying out our business, Hitachi recognizes human rights
as a key management issue. On the basis of this awareness,

Hitachi and Society
Our Impact on Society

Our Performance

No. of employees (consolidated)

Distributed CEO’s human rights
message to307,275
Hitachi Sustainability Repor t 2018

52

Approx.

178,000

peopleContents

Introduction

Management Approach

Activities

Human Rights

Performance Data

Respect for Human Rights Throughout the Value Chain

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

Respect for Human Rights

The Hitachi Group Human Rights Policy has been

Human Rights Initiatives

formulated to create a value chain where the human

In May 2013, we adopted the Hitachi Group Human Rights

rights of all stakeholders are respected. Under the

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

drawn up in fiscal 2010. In this policy, we clarify our understandingties targeting all executives and employees are car-of human rights as being, at a minimum, those outlined in theried out on an ongoing basis to help foster anInternational Bill of Human Rights and the International Labour

organization in which human rights infringements do

Organization’s Declaration on Fundamental Principles andnot occur.

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

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

Hitachi Group Codes of Conduct
Hitachi Group Human Rights Policy

Under this policy, we are also building a frame-

meeting the responsibility to respect human rights, including

Hitachi, Ltd. established the Corporate Human Rights

work to accurately assess and mitigate human rights

implementing human rights due diligence*1 in line with the UN

Promotion Committee in fiscal 1981 to gauge the impact ofrisks in the workplace environments of Hitachi’s sup-Guiding Principles on Business and Human Rights,* providing

business activities on stakeholders’ human rights and topliers and other stakeholders.

appropriate education to employees, adhering to laws anddeliberate on mechanisms and policies for preventing humanregulations in all the regions and countries where we operate,

rights violations. The executive officer in charge of humanand seeking ways to honor the principles of international

capital chairs this body, whose members include representatives

human rights when faced with conflicts between internationallyfrom sales, procurement, human capital, CSR, and otherrecognized human rights standards and national laws.

corporate units. Hitachi is improving its Group-wide human2

In fiscal 2014, Hitachi added the perspective of business

Hitachi Sustainability Repor t 2018

rights awareness based on the guidelines discussed andand human rights to its existing structures and policies andwritten by the Corporate Human Rights Promotion Committee.

developed guidelines on human rights due diligence that

Information from these deliberations is shared with all employees

explain procedures for everyday business practices. Based on

through business unit and business site committees, led bythese guidelines, we initiated human rights due diligence in areas

business unit presidents and division heads. Each businesssuch as procurement in fiscal 2015 and human resources insite provides consultation services through which employees

fiscal 2016, assessing, prioritizing, and considering measures

can seek consultation on issues such as sexual harassment

to reduce the human rights risks that Group employees andand works to ensure that those who come forward are treatedpeople in the supply chain are likely to confront. We will continue

with respect and dignity.

to incorporate the results of human rights due diligence into

In a practice launched in fiscal 2014, we distribute a humanthe specific measures we take regarding CSR procurement

rights message by Representative Executive Officer, President,

and human resources.

and CEO Toshiaki Higashihara every year on December 10,

53

Contents

Introduction

Management Approach
Human Rights

Activities

Performance Data

Respect for Human Rights Throughout the Value Chain

Human Rights Day. In fiscal 2017, approximately 178,000

companies. We launched an e-learning program on business

Human Rights Due Diligence Initiatives

executives and employees at Hitachi, Ltd. and Group companies

and human rights in October 2016, in which approximately

In our Hitachi Group Human Rights Policy, we pledged toin and outside Japan received an e-mail message regarding

186,000 Group executives and employees in Japan and else-develop mechanisms for and to continue the implementation

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

where had participated by March 2018. Using educationalof human rights due diligence. Toward that end, in fiscal 2013

and activities, and the importance of individual employeesmaterials developed in line with the Hitachi Group Humansome business sites launched pilot programs for human rights

respecting human rights in their work.

Rights Policy, adopted in May 2013, the program aims todue diligence to identify key issues that need to be clarified

ensure that employees understand Hitachi’s human rights

for Group-wide implementation while also analyzing andpolicy and act accordingly. In accordance with these goals,

evaluating human rights risks in six ASEAN countries. Basedthe training is provided to all employees once every three

on the results of these pilot programs, in fiscal 2014 weyears on average and regularly revised based on human rights

developed a document offering guidelines for implementing

trends worldwide.

human rights due diligence in collaboration with the nonprofit

Compliance Reporting System

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

Executive officer in charge of human capital

In July 2017, 31 executive officers from Hitachi, Ltd.

organization Shift.

Executive officer in charge of legal affairs and risk management

participated in an officer training session on the theme of ersonnel in charge of corporate divisions such as sales, procurement,Phuman capital, and CSR

global business and human rights led by Hiroji Tanaka, a leadthe procurement divisions, whose activities are at risk of

researcher of the Business Ethic Research Center. Touching on

negatively impacting the human rights of workers in the supply

several cases, Tanaka discussed the corporate responsibility

chain and local communities. In fiscal 2017, we incorporated

for human rights that must be taken into consideration at

the results of human rights due diligence into the revision of

the management level as Hitachi’s business becomes

our CSR procurement guidelines for suppliers while also

increasingly globalized.

thoroughly revising the questions on the check sheet used in

Business Unit and Business Site Committee
Chairperson
Members

Business unit presidents and division heads
Division managers

Business Unit and Business Site Committee
Chairperson
Members

Business unit presidents and division heads
Division managers

supplier CSR monitoring (self-checks), to better grasp theissues related to workers’ rights at suppliers as well as healthBusiness Unit and Business Site Committee
Chairperson
Members

Business unit presidents and division heads
Division managers

Raising Human Rights Awareness Among
Executives and Employees
Hitachi conducts regular group training and seminars and uses

and safety and the environment.

A scene from the officer training session.

videos to educate employees in each business site and Group
company. The target is for each employee to attend thesesessions at least once every three years (equivalent to a yearlyparticipation rate of 33.3%). In fiscal 2017, the participation
rate came to 60.6% at Hitachi, Ltd. and 48.0% among Group

Hitachi Sustainability Repor t 2018

In fiscal 2015, we initiated human rights due diligence in54

Contents

Introduction

Management Approach
Human Rights

Fiscal 2016 also saw the launch of human rights due

Activities

Respect for Human Rights Throughout the Value Chain

series was also held for employees responsible for procurement

diligence for human resources divisions at Hitachi. The operations

and human resources in Southeast Asia, where the risk ofin those divisions touch on many issues connected to humanforced labor is expected to be higher. Speakers from non-rights for employees, including working hours, employee

governmental organizations and businesses implementing

treatment, and health and safety. Human rights risks foradvanced countermeasures were invited to lead the webinars.

employees were assessed and prioritized, and mitigation

In fiscal 2017, we visited one of our suppliers in Malaysia

strategies were explored. They also investigated grievancewith members of the US nonprofit organization BSR (Businessmechanisms, analyzing existing procedures and exploringfor Social Responsibility) to conduct an assessment on migrantideas for improvement. Going forward, Hitachi will further

workers, who are socially vulnerable and often said to bepromote human resources initiatives by its business units andexploited by forced labor. The assessment was based onGroup companies.

interviews with managers of human resources and production
divisions, recruitment agencies, and migrant workers, along

Human Rights Due Diligence in Procurement

Addressing the Risks of Child and Forced Labor
The Hitachi Group Codes of Conduct clearly express Hitachi’s
firm stance against the use of child labor or forced labor eitherwith inspection of the factories and dormitories.
*1 Webinar: A portmanteau word combining “web” and “seminar,” used to refer to an interactive
seminar held online.

Supply Chain Managementin Group companies or along our supply chain. The company
president’s human rights message for fiscal 2017 also
addressed the issues of forced labor and human trafficking,clearly stating that Hitachi as a global company must takepreventive measures in its business and supply chain.
Recognizing the growing risks of forced labor amid the ongoing
globalization of business, Hitachi also developed an e-learning
program for all Group executives and employees on the subjectof human rights. The program draws on specific case studies
to convey the importance of preventing forced labor andhuman trafficking problems before they occur.
Hitachi’s CSR procurement guidelines for suppliers also
clearly forbid the use of child labor or forced labor. As part ofour efforts to raise awareness all along the supply chain, theseguidelines are distributed to tier 1 suppliers of business units
and Group companies. In fiscal 2016, a four-part webinar*1

Hitachi Sustainability Repor t 201855

Performance Data

Contents

Introduction

Management Approach

Activities
Human Rights

Performance Data

Respect for Workers’ Rights

Respect for Workers’ Rights
Hitachi’s Approach

Freedom of Association and Collective
Bargaining

Our employees are tasked with maintaining respect for

Cooperating to Improve Health and Safety
Hitachi, Ltd. and the Hitachi Workers Union are dedicated to
improving health and safety levels through employee-managementhuman rights within the value chain, but at the same

Respecting the Rights of Employees

cooperation. This includes signing a collective agreement ontime, in their role as employed persons, they are also

The Hitachi Group Codes of Conduct were approved by

the promotion of, among other things, health and safety

stakeholders whose human rights must be respected.

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

Hitachi’s longstanding approach has been to give

behavior applicable throughout the Hitachi Group. It calls fortraining programs, and health checks for employees.

importance to building a mutually beneficial relation-

the upholding of the fundamental rights of employees, in line

The committee works to ensure a healthy and safe work

ship with its employees as partners in a common

with the principles of the United Nations Global Compact.

environment through initiatives that include planning and tracking

effort. Given the globalization of our business, there

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

is a growing need to respect workers’ rights not only

we espouse the three fundamental rights of labor unions (toprevent industrial accidents, and sharing information on

by complying with international ethics codes but alsoorganize, to bargain collectively, and to act collectively) as seen

whether employees have received their annual health check-ups.

by taking into account the practices and cultures ofin the collective agreement between the CEO of Hitachi, Ltd.

each country.

and the representative of the Hitachi Workers Union. The union

Moving forward, we will continually strengthen

had 27,021 members as of October 31, 2017.

our system of mutual cooperation to build anworker health and safety levels based on respect for

Notification of Work-related Transfers andReassignments

workers’ fundamental rights.

The collective agreement between Hitachi, Ltd. and the Hitachi

equitable worker-employer relationship and improve

Workers Union states that any transfer or reassignment of an
employee for work-related reasons should adequately take into
consideration the situation of the employee, as well as requiring
the company to promptly inform the Hitachi Workers Union of
the decision. More specifically, in cases of large-scale transfers
or reassignments, the company will consult with the labor
union regarding the basic issues involved.

Hitachi Sustainability Repor t 201856

health and safety activities each year, reviewing measures toContents

Introduction

Management Approach

Activities

Performance Data

Labor Practices

Hitachi’s Aims: A Global Work Environment Rewarding Individuality and Diversity
Employees are valued partners who play a vital role in

Systems are in place for employees to discuss matters withsustaining our business. The cornerstone of a sound andhuman resources at the level of the business site, and amutually beneficial relationship between employees and thevariety of other contact points, such as a health and safetycompany, and the motive force for sustainable growth, is tocommittee and labor unions, are available to employees asprovide proper working conditions for employees and buildwell. When necessary, we encourage employees to use thea framework for the maximization of their potential. By com-

Compliance Reporting System, which is designed to ensure

plying with all work-related laws and regulations and creat-a careful and thorough response to all issues raised.

ing a work environment that maintains and develops fair
employment relations and makes full use of the abilities of

Key SDGs

its diverse human capital, Hitachi aims to be a company inwhich all employees can engage in safe and fulfilling work.

Labor Practices

Hitachi strives to remain in dialogue with each individual
employee about their basic rights and career development.

Hitachi and Society
Our Impact on Society

Our Performance

Ratio of male to female employees

No. and % of female managers (Group)

83 17

3,459 (6.4 )% toHitachi Sustainability Repor t 2018

%

57

%

Contents

Introduction

Management Approach
Labor Practices

Activities

Performance Data

Achieving a Fair and Equitable Work Environment

Achieving a Fair and Equitable Work Environment
Hitachi’s Approach

Decent Work

Ensuring Fair Evaluation and Compensation
With the globalization of business, business frameworks with

Ensuring that hiring and promotions, as well as

Hitachi’s Thinking on Decent Worka global outlook have become increasingly important. Hitachi isworker assessment and compensation, are fair is not

Human resources are key to Hitachi’s ability to adapt to rapid

working to establish management systems based on consistent

only a duty that companies must fulfill toward theirsocial and environmental change and continue providing newprinciples across all areas, including compensation, so that

employees but also an important means of building avalue to customers. Diversity and inclusion are crucial to ourour diverse human capital around the world can engage at

healthy relationship with outstanding human capital.

strategy, and throughout the Hitachi Group we promote HRa high level.

Hitachi has a human capital strategy that emphasizes

management practices that maximize the strength we can draw

We are developing Group-wide compensation systems

the concept of “decent work” (that is, work that isfrom a diverse, highly engaged workforce transcending nationalthat are fair and competitive in the context of each country or

humane and fulfilling). This concept has taken on

and corporate boundaries. Our globally shared leadershipregion’s labor market. Individual performance is also assessed

increased importance globally as a standard for labor

development program fosters leaders who champion our Social

against evaluation criteria that are disclosed to all employees.

practices, with the International Labour Organization,

Innovation Business around the world, while a range of other

Every year, the individual achievements of all employees arefor example, positioning the concept as an important

training programs help employees obtain the knowledge andreviewed to set their compensation, and feedback on theirobjective of its activities. Companies are expected toskills they need to provide innovative solutions to our customers.

evaluation results is provided to inspire them to develop andensure decent work through policies appropriate to

Hitachi also views it as crucial to create a work environment

their businesses.

grow even further.

in which each employee can engage meaningfully in productive

We ensure compliance with the laws and regulations of each

Hitachi’s policies toward realizing this ideal ofwork. As part of our efforts in this area, we have unified perform­

country in which we operate when determining compensation.

decent work go beyond promotion of diversity andance review standards worldwide in a highly transparent andIn Japan, starting pay for new graduates—representing about

inclusion among our human capital around the world

fair system for evaluating each employee’s achievements.

half of all new graduates recruited each year across theto include a variety of other initiatives reflecting theWe have also enacted safety policies that apply across theGroup’s global operations—was roughly 20% higher than the

globalization of business, from worldwide implemen-entire Hitachi Group and continue striving globally to create

weighted average of Japan’s regional minimum wages.

tation of fair employee evaluation systems and work-

workplaces that offer safety and peace of mind to those who

ing conditions to ensuring that executive positions

work there. Other initiatives aim to make it easier to achieve

are open to employees from all regions. We will con-work-life balance, reduce work hours, and promote healthytinue to promote the creation of open, fair work

lifestyles among employees. Additionally, we conduct anenvironments that provide greater job satisfaction,

annual survey of employee engagement levels across thein accordance with the business conditions andGroup, using the results as the basis for further improvement

economic environment of each individual country

in management practices.

and region.

Hitachi Sustainability Repor t 201858

Advancing Global Human CapitalContents

Introduction

Management Approach
Labor Practices

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

Hitachi Sustainability Repor t 201859

Activities
Achieving a Fair and Equitable Work Environment

Performance Data

Contents

Introduction

Management Approach

Activities
Labor Practices

Performance Data

Promoting Diversity and Inclusion

Promoting Diversity and Inclusion
Hitachi’s Approach

Diversity and Inclusion

strong commitment of top management, we aim to
make a significant contribution through the efforts ofHitachi believes that building a corporate culture thatour diverse human capital to the building of a moreStatement on Diversity and Inclusion

fully draws on the diversity of human capital, in terms

sustainable society for all.

Diversity is the wellspring of our innovation and our growthof gender, age, and values, not only offers employees

engine. Hitachi regards personal differences—gender, nationality,

an opportunity to approach their work with enthusi-

work history, age, sexual orientation, and philosophy—asasm but also contributes to enhancing competitiveness through the provision of solutions thatincorporate diverse perspectives. In recent years,

Roadmap for Developing Diversity Management
Phase 3:

with the growing interest among stakeholders for
personnel policies enabling flexible workstyles, weare taking a proactive stance toward implementing
this approach.

Diversity promoted as a management
strategy

Phase 2:

From “women” to “diversity”

Phase 1:

2012

Support for women’s careeradvancement

2009

Hitachi has recognized the importance of diversity“Diversity for the Next 100” launched

Diversity & Inclusion Development
Center set up

since the 1990s and has built its management systems accordingly, listening closely to employee feedback. As our Statement on Diversity and Inclusion

2000

2006

FF Plan*1

Diversity Promotion Project
FF Plan II

explains, we view diversity as our growth engine. We
Support balance between work and nursing
care, etc.

pay particular attention to career development for
women by actively encouraging the promotion ofStrengthen senior management
commitment

Enhance Hitachi Group partnerships

female and non-Japanese employees in accordance

Reduce overtime; review workstyles

with trends both within Japan and worldwide and by
establishing key performance indicators to track our

Promote time- andlocation-free work

Promote diversity awareness; reform work environment

success. Our other efforts to promote diversity

Support work-life balance; support women’s career advancement

Strengthen women’s career development

include work-life management policies that enable
employees at any life stage to find fulfillment in their

Introduce, expand support systems for work-life management

work and initiatives to encourage the hiring of people
with disabilities in line with the work style reformpromoted by the Japanese government. With the

1990

2000

2006

2009

2012

2017

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

Hitachi Sustainability Repor t 201860

Introduction

Contents

Management Approach

Activities
Labor Practices

Performance Data

Promoting Diversity and Inclusion

Diversity Management Initiative: “Diversity for
the Next 100”

diversity management roadmap, we are embracing diversity as

individualities and positioning them as an advantage, Hitachi
frames its diversity and inclusion as conducive to both theSince the 1990s, we have been at the social forefront,

the Next 100.” This means creating an environment whereindividual’s and the company’s sustainable growth. With strong

supporting women and other members of our multifaceted

women and other members of our varied workforce can use

teamwork and broad experience in the global market, we will

workforce. This includes setting up systems to help balance

their skills in leadership and business management.

meet our customers’ needs.

work with child and nursing care. Entering Phase 3 of our

facets of people’s individuality. By respecting our employees’

a management strategy under the initiative slogan “Diversity for

Development Structure of Diversity Management
The Diversity Development Project, launched in fiscal 2006
Expanding the Scope of Diversity Management

under the president’s direct control, was replaced in fiscal
2009 with the Diversity & Inclusion Development Center, whichcurrently operates under the direct supervision of the Human

Gender, etc.

Capital Group of Hitachi, Ltd.

Men and women, family composition,
marital status

Age

Nationality, etc.

Senior, middle-aged, young

Nationality, race, ethnicity, language

Widening Scope ofDiversity

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

Lesbian, gay, bisexual,
transgender status

Physical, intellectual, mental disability

Advisory Committee and the Diversity Development Council toaccelerate awareness across Hitachi as a whole, includingLGBT

Disabilities

Hitachi, Ltd. and 17 Group companies jointly operate theStep 1

Integration

management policy, while the Diversity Development Council

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

discusses specific activities and shares best practices. Bothmeet every six months.
Group companies and business groups/sites have also set

Step 2

Legal Compliance
Step 3

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

Discrimination banned through force of law(Japan’s Equal Employment Opportunity Act)up their own diversity-promotion organizations and projects,

Companies, organizations educate staff about
discrimination so differences are actively
embraced, respectedenhance initiatives geared to the challenges faced by individual
workplaces. We also hold regular meetings to exchange
opinions on diversity with labor unions.

Evolution from respect for differences toorganizational reform as part of strategy to forge
varied strengths into competitive advantage

Deepening Diversity Management

Hitachi Sustainability Repor t 2018such as those to help develop women’s careers, in order to61

Introduction

Contents

Management Approach

Activities
Labor Practices

Hitachi Group Diversity Structure

Performance Data

Promoting Diversity and Inclusion

Goals for Hitachi, Ltd. (KPIs)
Achieve a 10% ratio of both female and non-Japanese executive
Hitachi, Ltd. President

officers and corporate officers by fiscal 2020 (new goal established infiscal 2017).

Advisors:
Independent outside directors

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

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

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

Developing Women’s Careers

Around 50
projects

Diversity & Inclusion Development Center(dedicated organization)
Human Capital Group

Increase the number of female managers in Japan to 800 by fiscal
2020 (twice the number at the end of fiscal 2012; goal revised infiscal 2017).

Note: Participating companies (17 companies as ofMarch 2018): Hitachi Metals, Hitachi Chemical,
Hitachi Capital, Hitachi Construction Machinery,
Hitachi Kokusai Electric, Hitachi High-Technologies,
Hitachi Transport System, Clarion, Hitachi Urban
Investment, Hitachi Appliances, Hitachi Automotive
Systems, Hitachi Consumer Marketing, Hitachi
Industrial Equipment Systems, Hitachi Systems,
Hitachi Solutions, Hitachi Insurance Services, andHitachi Life.

Hitachi’s Diversity Goals

Number and Ratio of Female Managers(people)(people)800
600

418 5.6% 434

workplace and improve our diversity management.
In addition to reinforcing existing programs, we will use the

KPI of Developing Women’s Careers

Hitachi Group Women’s Career Success Survey to highlight

Hitachi, Ltd. has created two key performance indicators

progress with initiatives and outstanding issues in each business(KPIs) to enable as many female employees as possible tounit and to set numerical targets for each unit, strengthening ourtake up leadership positions and to participate in management

management commitment. We will also boost women’s individual

decision making.

ambitions and morale through programs such as the Hitachi

400
200
0

3.8%

3,727

3,670

3,415

3,365

6.0% 474

3.7%

577

4.1%

4.0%

2000

2013

2014

2015

2016

2017 (FY)2

Conference with Female Outside Directors. We intend to create

to the executive level. We will continue to promote this goal toan environment where as many women as possible are able toensure that diverse views and values will be reflected in our man-

optimize their potential in management positions. Alongside theseagement. In fiscal 2017, we publicly announced our commitment

efforts, we are working to change the mindset of managers andRatios for Female and Non-Japanese Executive andto increasing the rate of female executive and corporate officers

male staff regarding gender parity and examining our working style

Corporate Officers (Hitachi, Ltd.)

to 10% by fiscal 2020.* We are also working to promote moreas a whole with the aim of transforming our corporate culture.

with fiscal 2012. These efforts demonstrate our commitment

on gender or age.

both internally and to the world to further advance women in the

Hitachi Sustainability Repor t 2018

*1 As another goal, Hitachi aims to achieve a 10% ratio of non-Japanese executive andcorporate officers by fiscal 2020.

62

0Female managers, Hitachi, Ltd.* (left scale)
Female managers, Hitachi Group* (right scale)
Percentage of total, Hitachi, Ltd.*1
Percentage of total, Hitachi Group*2
Note: Figures include section chiefs and above.
*1 “Female managers” in fiscal 2017 include managerial employees dispatched from Hitachi,Ltd. to non-Group companies and those accepted from non-Group companies by Hitachi,Ltd. Earlier figures include regular managerial employees dispatched to non-Group
companies but exclude those accepted from non-Group companies.
*2 All full-time, regular female managers excluding those dispatched to non-Group companies.
Figures for fiscal 2016 were restated following a reexamination of HR data.
1

appointed its first female corporate officer, a position equivalentroles and achievements, with no divisions or differences based

2,000
1,000

ees at the supervisory level and above, and the Roundtable

number of female managers to 800 by fiscal 2020 compared

3,000

73

Group Women Leaders’ Meeting, which targets female employ-

Employee compensation is set according to each individual’s

6.4%
4.2%

In fiscal 2013, Hitachi set a goal of promoting women tofemale employees to managerial positions, aiming to double the

4,000

6.4% 509 6.3%

executive positions by fiscal 2015. In April 2015, the company

1

3,459

June 2017

June 2018

Number of female executive and corporate officers

22

Ratio of female executive and corporate officers

2.4%

2.6%

3

5

3.7%

6.4%

Number of non-Japanese executive andcorporate officers
Ratio of non-Japanese executive andcorporate officers

Contents

Introduction

Management Approach

Activities
Labor Practices

Performance Data

Promoting Diversity and Inclusion

Global Women’s Summit

workplace through work-life management enhances ourdiverse people with different views and perspectives can

In September 2017, we hosted our second Global Women’s

employees’ professionalism and builds character, resulting inapproach their work with enthusiasm and achieve great things.

Summit with a theme “United to Succeed.” Held in the United

both individual and organizational growth over the long term.

States, the event was attended by more than 120 female

Boost productivity and grow businessIn 2016, we launched “Hitachi Work Life Innovation,” aemployees from Group companies around the world andcompany-wide initiative to accelerate our efforts toward

featured a keynote speech by an external speaker, a message

improving work-life balance in line with the “work style reform”

from President and CEO Toshiaki Higashihara, and a report on

promoted by the Japanese government. In cooperation with its

the diversity and inclusion initiatives discussed at the firstlabor union, we aim to build a working environment where

Fulfill potential to contribute to businesssummit held in the United Kingdom, followed by workshops on
Company

nine topics ranging from technology to social skills to coaching.

Enable diverse ways of working(employee-friendly workplaces)

Employees

Participants learned about improving self-motivation and skill
development, and at a subsequent networking reception, theyshared stories about their careers and the issues they faced attheir workplace, deepening exchanges with each other. The

Work-Life Management Support System at Hitachi, Ltd.
Child-Care Support System

Nursing-Care Support System

next summit is scheduled to be held in fiscal 2018.
For women

Work-Life Management

Pregnancy

For menFertility treatment leave (1 year total)

Nursing-care leave

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

Return to work

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

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

Hitachi’s Work-Life Management Approach
Diversity and inclusion boost productivity and grow Hitachi’sChildbirthbusiness. To ensure that all employees reach their full potential,
enhancing our organizational capabilities and creating newChild-care leavesynergies, we strive to maintain a work environment thatembraces human resource diversity, encourages inclusion, andpromotes workstyle flexibility.
Hitachi looks beyond work-life balance, promoting work-life
management that enables our employees to take charge ofReturn to work

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

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

improving the quality of both their work and their private lives.
We believe that optimizing time spent in and outside the*1 Flextime and discretionary labor systems are also available. The Cafeteria Plan is a system in which employees can select the support that they need, when they need it, according to their“Cafeteria Points.”

Hitachi Sustainability Repor t 201863

Introduction

Contents

Management Approach

Activities
Labor Practices

Sakura Hiroba (Hitachi Chemical Group)

Since the 1990s, we have been introducing and improving anarray of programs for employees to balance work with family,
aiming to create a more employee-friendly work environment.
In October 2016, we introduced an Allowance for Balancing
Child Care and Work to further promote work-life management.

Established

April 2008

Location

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

Capacity

23 children

Ages eligible

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

Operating hours

7:20–20:20

FY 2017
Return rate (%)

Retention rate (%)

Male

100.0

Female

98.5

Male

96.6

Female98.0

In-House Child-Care Centers
The Hitachi Group, in collaboration with its labor union, has set
up in-house child-care facilities as a way to help employees
balance work with child-raising.

Genki Club

“Genki Club” logo.

Established

April 2003

Location

292 Yoshida-cho, Totsuka-ku, Yokohama-shi, Kanagawa, Japan(Yokohama Office, Hitachi, Ltd.)

Capacity

Approximately 70 children

Ages eligible

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

Operating hours

Diverse Support Systems for Employees

Employing People with Disabilities

Child-Care Leave (Hitachi, Ltd.)

Support Systems that Meet Diverse Employee Needs

Expanding Hiring of People with Disabilities
Hitachi, Ltd. and Group companies in Japan have worked hardto employ people with disabilities, such as by holding a special
hiring fair and study meetings for Group companies to share
information. As a result, as of June 2018 the employment ratioof people with disabilities was 2.23% at Hitachi, Ltd. and
2.33% for the entire Group in Japan. Both of these figures
exceed Japan’s legally required employment rate of 2.2%—anincrease of 0.2 percentage points compared to the previous
fiscal year. We will maintain our Group-wide drive to hire more
people with disabilities.
Key Indicators
Employment of People with Disabilities and Employment Ratio(Hitachi, Ltd.*1)
Legally required employment rate*2

7:30–20:00

2.23(people)
2,000

2.11

2.08
1,600
1,200

2.03
1.85

1,243

1,332

1,370.5

2.15

1,848

(%)
2.2
2.1

1,437

2.0

981
800

1.9

400

1.8

0
Excursion (sweet potato digging).

Christmas party.

Hitachi Sustainability Repor t 2018

2000

2014

Promoting Diversity and Inclusion*1 Includes 17 special subsidiaries and related Group companies.
*2 The legally required employment rate was 1.8% up to fiscal 2012, 2.0% between fiscal
2013 and 2017, and became 2.2% in fiscal 2018.
Notes:• Data compiled on June 1 of each fiscal year.
• The employment ratio is calculated according to methods prescribed in the relevant laws.

Enhancing Work-Life Management Support Systems

Return and Retention Rates After Maternity and

Performance Data

2015

Employment of people with disabilities (left scale)
Employment ratio (right scale)

64

2016

2017

2018

(FY) 0To respond to the diverse lifestyles and needs of ouremployees, Hitachi, Ltd. has provided a wide range of support
by introducing benefits*1 that include housing support, suchas dormitories, company housing, and a housing allowancesystem, as well as an asset-building savings program, an
employee stock ownership program, group insurance,
consolation payments, a Cafeteria Plan program, and an
Allowance for Balancing Child Care and Work.
The cafeteria plan allows employees to select the benefits
they receive. This allows them to tailor a plan to their individual
lifestyles and living needs by choosing from a list of options,such as skills development, childcare, nursing care, healthpromotion, and donations. Employees use Cafeteria Points toselect the type of support they need when they need it.
For our retirement and pension plans, defined contribution
and defined benefit plans have been introduced across the
Hitachi Group in response to the diversification of lifestyles
among the elderly and the changes in forms of employment.
The defined contribution pension plan encourages employees
to participate in their postretirement planning by providing
asset management and investment education, as well asother support. We increased the choice of benefit options andtimeframes for both the defined contribution pension plan andthe defined benefit pension plan in order to better meet thevaried needs of employees.
*1 For full-time, regular employees.

Contents

Introduction

Management Approach

Activities
Labor Practices

Performance Data

Promoting Occupational Health and Safety

Promoting Occupational Health and Safety
Hitachi’s Approach

Occupational Health and Safety

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

Fundamental Idea for Occupational
Health and Safety

tions for advancing our business. Manufacturing and mainte-business activities, building safe, healthy, andhygienic workplace environments at business sites

Ensuring the health and safety of all employees is the basic

have around 34,000 employees performing work of this type inaround the world is a Group-wide management task

principle underlining the Hitachi Group Health and Safety

Japan. We promote a range of Group-wide occupationalfor Hitachi. This means that we must be sure to take

Policy. This policy is shared by all Hitachi Group companies

health and safety activities that include preventing workplace

into careful consideration the social conditions andaround the world. Employees work together to create safe,

accidents by setting and applying minimum safety standards

workplace environment of each country and region.

secure work environments that aim to be accident free.

to be observed by Group manufacturers around the globe as

As a corporate group that engages in multinational

Hitachi has thoroughly implemented measures fornance are particularly accident-prone lines of work, and wewell as taking additional measures tailored to the specific con-occupational health and safety since its founding.

Hitachi Group Health and Safety Policy

ditions at each company. We respond quickly when an acci-

Currently, we are advancing a global occupational

Principle“Health and Safety Always Comes First.”

dent occurs, using incidents to make improvements and boost

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

foster understanding of work procedures and workplace haz-health and safety system based on the concept ofdecent work while also drawing on the lessons andknowledge gained at workplaces in Japan. The
measures we take go beyond simple adherence tointernational ethics codes and include a uniqueaward program to publicize best practices, support
for employee-run health promotion activities, and arange of other initiatives. By implementing these atbusiness sites around the world, we seek to continue
fulfilling our responsibilities as a global business tocreate safe, healthy, and rewarding work environments across the entire Group.

To accomplish this, we will:
1. Continually be involved in health and safety activities in order toprevent work-related injuries and sickness by designating the healthand safety of employees as management’s top priority.
2. Comply with the local laws and regulations in each company
regarding health and safety.
3. Develop a safe and comfortable work environment by encouraging
employees to maintain their own health and taking a proactive stanceon health and safety activities in the workplace.
4. Require an understanding of Hitachi’s principle and the promotionof health and safety awareness from all business partners of the
Hitachi Group.
5. Contribute to the creation of a safe and pleasant society byemphasizing activities that make health and safety a top priority in all of Hitachi’s business activities.
Revised November 2013

our levels of health and safety management. Furthermore, we
ards in newly hired employees and temporary workers by providing health and safety training in advance along withguidance in the workplace.
In accordance with Japanese law, a health and safety commission—composed of company representatives, labor-union
officials, and employees—is convened every month to discussand share information related to such issues as workplace
accident causes and countermeasures, the situation regarding
employees who have taken sick leave, and other points ofconcern. In 2017, we recorded zero fatal workplace accident
in Japan and five in the rest of Asia.
In fiscal 2011, we introduced the Hitachi Group Key Safety
Management Designation System. This initiative tracks key
safety management improvements at Hitachi Group companies and business sites in Japan that have experienced serious
work accidents. Under the leadership of top executives, these

Hitachi Sustainability Repor t 201865

Introduction

Contents

Management Approach

Activities
Labor Practices

companies and business sites take on management-driven

Promoting Occupational Health and Safety

The Hitachi Group Health and Safety
Award Program

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

and bottom-up initiatives to formulate and promote specific

2015

2016

Performance Data

2017

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

Americas

4.35

6.41

5.94

We have implemented the Hitachi Group Health and Safety

management framework and introducing targeted safety mea-

Europe

2.02

5.07

4.85

Award Program to recognize Group companies in Japan thatsures, including extensive investigations of the cause of serious

China

2.10

1.26

0.99

Rest of Asia

0.80

1.72

1.88

extend their accident-free records or that receive prizes for

accidents, reviews of risks to reduce potential accidents, and

Other

22.05

7.74

4.24

engagement of third parties with a high level of health and

Japan

0.42

0.35

0.48

safety expertise to diagnose safety issues.

Global total

1.21

1.33

2.93

*1 Occurrence rate is the rate of workplace accidents per 1,000 directly contracted employees
resulting in fatality or work-time loss of one day or more.

Key Indicators

1.58

1.66

1.61

1.06

1.06

0.41

0.54

0.27

0.22

2014

2015

1.5

0.94

1.63
1.15

Sharing Health and Safety Informationin the Hitachi Group

1.66

We built the Hitachi Group Health and Safety Portal System in
1.02

1.0
0.5
0

0.41
0.14
2013

Initiatives to Improve Employee Health
Health is the foundation for being able to work with energy andpeace of mind. The fundamental principle of the Hitachi Group
Health and Safety Policy is that “Health and Safety Always

Occupational Accident Rates
2.0

health and safety from external organizations.

0.51
0.18
2016

0.45
0.25
2017

(FY)

All industries
Manufacturing industries
Electrical machinery sector
Hitachi Group
Note: Occupational accidents are defined as those involving fatality or work-time loss of one
day or more. Hitachi Group figures for Japan, including Hitachi, Ltd., are for 195
Group companies in fiscal 2013; for 251 Group companies in fiscal 2014; for 240
Group companies in fiscal 2015; for 200 Group companies in fiscal 2016; and for 201
Group companies in fiscal 2017.

efforts to maintain and improve the health of employees.
In Japan, occupational healthcare workers, human resource

2012 to ensure that every Hitachi Group company in Japandepartments, and the Hitachi Health Insurance Society work

can track the health and safety performance of the entire

together to provide a range of health support and appropriate

Hitachi Group.

health management in accordance with Japan’s Industrial

Group-wide information on work accidents is registered in
the system so that companies can track causes and see what

Safety and Health Act.
In Ibaraki, Tokyo, and Kanagawa Prefectures, where many

preventive measures have been initiated. To help prevent

Hitachi Group business sites are concentrated, a system ofrecurrences, statistics are kept on types of accidents. Since

health-management centers has been put in place, staffed with

2014, we have carried out initiatives to share information on

occupational doctors, nurses, and other occupational health-workplace accidents globally, including one that tracks andcare personnel. The center supports the health maintenance ofprovides feedback on accidents occurring at Group companies

employees by providing them with health guidance based onoutside of Japan.

periodic health checks and other examinations to prevent

Once a year we hold the Hitachi Group Health and Safety

serious disease, while also offering medical interviews andMeeting for Hitachi health and safety directors and officers.

advice to employees working long hours to head off mental

The meeting held in May 2017 attracted around 100 partici-

and physical disorders. We are also taking steps to raise healthpants, who shared newfound knowledge from case studies

awareness through consultations that can help relieve

and heard special lectures from outside experts on ways toemployees’ health concerns and promote regular exercise.

further improve health and safety activities at companies.

Hitachi Sustainability Repor t 2018

Comes First.” Based on this principle, we are engaged in66Contents

Introduction

Management Approach

Activities
Labor Practices

In December 2015, revisions to Japan’s Industrial Safety
and Health Act took effect, requiring businesses of 50 or more
employees to put in place a stress-check system. We areproactively implementing stress checks at all business sites inJapan—even those employing fewer than 50 employees,
which are only required to make efforts toward compliance—
to promote awareness of stress among all employees. Groupanalysis results from these stress checks will also be used byworkplace health and safety committee members, occupational healthcare workers, and human resource departments toimprove workplace environments. In combination, these efforts
are expected to help prevent mental health issues and revital-

Health committee members and healthcare workers discuss
environmental improvement measures with HR staff.

ize workplaces. Recognizing that an understanding of basic
mental health and stress coping skills is an effective preventive
measure, we also conduct regular e-learning and other training
sessions for our employees, including temporary workers.
Hitachi’s efforts in this area were recognized under the2018 Certified Health and Productivity Management
Organization Recognition Program, conducted by Japan’s
Ministry of Economy, Trade, and Industry, in the large
enterprise category (White 500).
Hitachi was recognizedunder the 2018 CertifiedHealth and Productivity
Management Organization
Recognition Program.

In April 2018, we held the first Hitachi Group HealthConference. About 180 people participated in the conference,
including health and safety officers and labor management
officers from Hitachi and occupational healthcare workers suchas physicians and nurses. Participants presented research
results and shared information on methods and approaches for
improving occupational health programs at business sites,
developing the capacities of occupational healthcare workers,
and advancing health and productivity management.

Hitachi Sustainability Repor t 2018

67

Promoting Occupational Health and Safety

Performance Data

Contents

Introduction

Management Approach
Labor Practices

Activities

Performance Data

A Strategy for Growing Together with Our Global Human Capital

A Strategy for Growing Together with Our Global Human Capital
Hitachi’s Approach
The globalization of the economy has led many com-

our global employee survey, we will continue oura Hitachi Group and global common platform for learning

efforts to perfect a human capital strategy that allows

opportunities, where everyone is encouraged to learn for

us to develop along with our employees.

growth. In addition, with an eye to supporting the advancement

panies to accelerate the shift toward multinationalof employees as our global operations expand, we haveoperations. Fostering global human capital has thus

adopted common global hiring systems to secure talented

become indispensable to providing common global
services while at the same time meeting the needs of

personnel, boost efficiency, and reduce hiring costs.

Global Human Capital Development
Global Recruiting and Globalizing Human Capitaleach country and region. Impacting heavily on theemployment and human resource strategies of com-

Advancing Global Human Capital

As a means of developing markets worldwide, we have been

panies over the medium- to long-term, though, are

Our Group-wide global human capital management strategy

accelerating the globalization of human capital in Japan throughthe falling birthrates and aging populations of indus-

optimizes both human resources and organizational perfor-

three initiatives: (1) recruiting “global business personnel”

trial countries and the population explosion in devel-mance in pursuit of our goal of becoming an Innovation Partner

who can promote global operations, (2) providing younger

oping nations.

for the IoT Era.

Japanese employees with experience outside Japan, andThe Hitachi Group, with a combined workforce ofOne example of our initiatives is the Global Human Capital(3) providing globally unified management training.

around 310,000 people engaged in business activities

Database covering all Hitachi Group employees, excluding

in countries and regions around the world, is promoting

factory workers outside Japan. This database enables us toare designed to secure the right personnel. In principle, we

a global human capital management strategy. Specif-

fully ascertain the status of worldwide Group human capital

categorize all employees graduating from universities andically, in order to attract, promote, and develop theand to assess macro management data, such as the allocation

technical colleges as global business personnel who canright human capital, we are taking proactive stepsof human resources. We have also built a global grading

contribute to driving our global operations. Our priority inlike standardizing required employee skills and evalu-

system that applies to all managers in the Hitachi Group world-

employing such personnel is to attract those who are eager toation standards globally and introducing the Global

wide, using it as a common platform for job evaluations

build their foreign language skills and relish the challenge of

Human Capital Database, which renders human capi-

throughout the Group and as a common standard forworking in different cultures, social settings, and worktal visible throughout the Group. A learning platform

assessing the value of management duties.

environments.

has also been launched for our employees aroundIn addition, we introduced a performance management

the world with the aim of cultivating human capitalsystem at Hitachi, Ltd. and at some Group companies world-

capable of growing our global business. Throughwide to link the individual and operational business goals, withadditional initiatives such as effective implementation

the aim of promoting mutual sustained improvement and theof Global Performance Management to improve

growth of both individuals and businesses.

employee engagement and analysis of feedback from

We are also working on talent development initiatives to drive
global business growth. We implemented “Hitachi University,”

Hitachi Sustainability Repor t 2018

68

Given the globalization of our business, our hiring activities

Introduction

Contents

Management Approach
Labor Practices

708

ment. GAP-K helps participants to look at themselves objec-

638
446

509

340
250

0

human capital management strategy.

Program for Key Positions (GAP-K) to accelerate their develop-(People)500

Performance Data

A Strategy for Growing Together with Our Global Human Capitalcandidates in fiscal 2015, implementing the Global Advanced

Non-Japanese Employees*1 (Hitachi, Ltd.)
750

Activities

Average Amount Invested in Education per Employee

tively through three modules and to gain a deeper

In fiscal 2017 the average amount invested for employee edu-

understanding of the Hitachi Group Identity and their own rolecation by Hitachi, Ltd. and 14 major Group companies inin maintaining it. They commit themselves to vigorously andJapan was 118,500 yen per employee.

fully resolving business issues and challenges with a sense of
2013

2014

2015

2016

2017

(FY)

*1 Figures include contract-based technical intern trainees with fixed terms.

mission, share values and goal-oriented thinking while inspiring

Career Development Support

others, and declare, in their own words, how they will put their

There are differences among individual employees with regard

skills into practice. Participants also discuss strategies forto what they find fulfilling in their lives and careers. Bearing

global business expansion, with special reference to emerging

this in mind, Hitachi has developed a broad range of careermarkets, and explore how these strategies can be applied todevelopment support that focuses on employees’ “internal

Hitachi maintains broad programs to systematically cultivate

Hitachi’s existing businesses and further growth. In fiscal 2017,

careers,” namely, their individual values and views on theand secure people who can succeed in global business. To

28 people were selected to participate in GAP-K over a three-significance and meaning of their work. In addition to ensuring

develop the careers of people capable of understanding andmonth period in Japan and India.

that these individuals can fulfill their potential and maximize

Providing Younger Employees with Overseas Experience

adapting to local cultures and lifestyles, we have offered a

Additionally, Hitachi has held the Global Advanced Program

program for younger employees to live outside Japan. We

for Leadership Development (GAP-L) in Singapore every year

the positive outcomes and growth of the organization,

have sent around 4,000 Group employees over seven years

since fiscal 2012. The program mainly targets local human

thereby enhancing our corporate value. Along with promoting

beginning in fiscal 2011, allowing them to take part in moreresources with potential for leadership at the respective over-self-understanding and fostering strong individuals with thethan 80 programs designed to promote understanding of otherseas subsidiaries. It is aimed at fostering a deeper understand-

independence and autonomy to think and act for themselves,cultures and to engage in language studies, local field studies,ing of the Hitachi Group’s global growth and developing the

we are also providing support to create a framework that will

and internships, as well as to provide opportunities to work

leadership, thinking, and skills needed for such growth. In fiscal

capitalize on the engagement and motivation of individualwith local people to resolve social issues. In fiscal 2015, we2017, the program was made biannual, and 46 leaders from

employees and to enhance mutual understanding as a way ofshifted our focus to a practical, work-related model of overseas

around the world took part in total.

fostering the teamwork needed to enhance organizational

postings instead of the former emphasis on language learning

We also held the Global Leadership Acceleration Program

their creativity, our aim is also to link that individual growth tostrength and performance.

and cross-cultural activities to accelerate the development offor Managers (GAP-M) and the Ready to Lead (R2L), theemployees ready to take on global challenges. We will continue

standard leadership training courses for general managers andFuture Initiatives for Career Developmentwith these initiatives in fiscal 2018.

new managers that started in fiscal 2014. In fiscal 2017,

In pursuit of becoming a major global player, we are upgrading

around 2,800 people worldwide have taken part in these

individual and organizational performance as one of our top

courses across our Group. As a result, the total number ofpriorities. We create value built on employees’ individuality

Along with the rollout of global human capital management,

participants has exceeded 10,000. We will continue to global-

and personal aspirations by implementing Hitachi’s Global

we are also globalizing our human capital development programs.

ize our management development programs and cultivate

Performance Management (GPM) grounded in diversity andleaders to guide us toward further growth in line with our global

the individual. We are also committed to supporting career

Globalizing Management Training

We began to thoroughly revise our training of management

Hitachi Sustainability Repor t 2018

69

Contents

Introduction

Management Approach
Labor Practices

Activities

Performance Data

A Strategy for Growing Together with Our Global Human Capitaldevelopment by fostering communication and mutual under-

Career Development in the Workplace

people have participated in the program so far (as of March 31,

standing between employees and their organizations based on

For Hitachi, the center of career development is the work that2018), with a focus on technicians, managers, and researchers

programs encouraging individual employees to take greater

employees perform daily in the workplace. Based on Global

in their 30s. Participants use self-analysis to deepen theircontrol of developing their own careers. In these ways, we

Performance Management (GPM), we implement a cycle

self-understanding with an emphasis on their “internal careers,”

provide the resources and tools that enable a wide range of

aimed at the growth of each employee through a process inaffirming their career direction, goals, and paths so that theypeople to work together with enthusiasm.

which goals for daily tasks are set and then pursued, followed

can direct the development of their own career and skills.

by the evaluation of the results to formulate the next objectives.

H-CDW has gained recognition as a high-quality program for

Conducting a Global Employee Survey

Every fiscal year we also conduct “performance planning,”

in-house career development that has built up research andSince fiscal 2013, we have been conducting the annual global

in which individual employees work with supervisor guidance

improvements during a period of over 40 years.

employee survey, Hitachi Insights, as a way of measuring

and support, consulting with their supervisors to reach aemployee engagement.* In September 2017, the survey wasconsensus regarding short-term objectives. These consultations

fiscal 2017, about 90% of the answers agreed that “H-CDW

administered for the fifth time. Around 200,000 employees

include discussions about past work and evaluations of thehas been helpful to my career development and work.”

worldwide were sent the survey in one of 14 different

content of the work performed to date and the degree toSpecific responses received include “Reflecting on my inner

languages, and roughly 170,000 responses were received.

which employee goals were met, followed by the setting ofcareer reaffirmed my view of career development (working life)

goals for the next fiscal year. Repeating the GPM cycle improves

and the meaning of the work I do,” “I learned more about

improved for the fourth consecutive year. Hitachi scoredindividual performance and further increases motivation andmyself and began to seriously think about where I want to be 5

particularly well in “pride in your company” and “teamwork,”creativity, spurring individual growth and improving

or 10 years from now,” and “I gained a renewed awareness ofsuggesting that employees are proud to be part of a company

organizational results. Along with GPM, employees also takethe importance of my position and responsibilities.”that is aiming to grow globally as an Innovation Partner forpart in career consultations with their superiors to discuss their

the IoT Era. On the other hand, the low scores for “resources

medium- and long-term career plans regarding such matterstargeting specific age groups, such as career education forand support” that were observed in fiscal 2016 did not

as requests for transfers or overseas postings.

younger employees and training for middle-aged or older

1

According to the aggregate results, the overall rating has

According to the survey conducted of the participants for

In addition to those programs, Hitachi also offers programs

improve. Employees may have expected Hitachi to do better

In addition, Hitachi administers the Career Counseling

employees to help them prepare for the changes ahead in theiron the level of staffing as well as information and resource

Center as part of career development support, in order tocareers. Regarding training for employees aged 50 and over, atools—a situation we will continue to address by reforming

provide employees with professional counseling services tosurvey conducted between October 2017 and March 2018

working patterns, introducing new tools, and deepening

help them proactively address concerns related to such issues

found that 90% of participants felt that the training had beencommunication with employees.

as their jobs, career plans, or personal relations.

beneficial. One respondent noted, “I was able to grasp mycurrent situation and look at myself with fresh eyes,” while

Survey results are sent directly to immediate section anddepartment heads so that they can confirm the survey results

Promoting Career Development Workshops

others said, “It was a good opportunity to rethink my attitudeand communicate with team members. This can lead to

Along with our workplace career development, we also provide

toward work and financial planning” and “I would like to makeconcrete initiatives through the PDCA cycle, further enhancing

direct support for individual career development through ourthe most of and nurture my career and strengths.”

the level of engagement within Hitachi as a whole.

career development programs. Our key program is the Hitachi*1 Hitachi uses the term “engagement” to refer to employees’ understanding of the company’s
strategies and policies, as well as their job satisfaction and desire to take actions on theirown initiative to bring about results.

Hitachi Sustainability Repor t 2018

Career Development Workshop (H-CDW), launched in fiscal
2002 as a Group-wide initiative in Japan. Around 11,100

70

Contents

Introduction

Management Approach

Activities

Performance Data

Fair Operating Practices

Hitachi’s Aims: Fostering a Corporate Culture of Fairness with Our Partners
There is a growing idea that companies should build theiractivities, including procurement, manufacture, sales, export,

businesses with a view to promoting CSR throughout theand taxation. To fully carry out our responsibilities as a cor-

supply chain, not just around the company’s operations.

porate citizen, we not only encourage business sites toThis view informs such global initiatives as the Guidelines for

implement their own investigation and reporting systems forMultinational Enterprises of the Organisation for Economic

any improprieties but also promote the utilization of a

Co-operation and Development (OECD) and the Unitedcompliance reporting system to prevent or promptly address

Nations’ Global Compact and Guiding Principles onsuch indiscretions.

Business and Human Rights.
Key SDGs

In seeking to be a company that continually fulfills its
social responsibility throughout the value chain, Hitachi

Fair Operating
Practices

strictly adheres to laws and regulations and acts in a moral
and fair manner with all its business partners. We thoroughly
promote the compliance of our employees in all business

Hitachi and Society
Our Impact on Society

Our Performance

No. of suppliers

CSR audits of suppliers

30,000(66 countries)

Hitachi Sustainability Repor t 201871

companies

18

companies(total of 106 companies since FY 2012)

Contents

Introduction

Management Approach
Fair Operating Practices

Activities

Performance Data

Promoting Work Practices in Line with International Ethics Codes

Promoting Work Practices in Line with International Ethics Codes
Hitachi’s Approach

Preventing Bribery and Corrupt Practices

Measures to Prevent Unfair Competition

Given the globalization of the economy and the

Measures to Prevent Bribery and Corrupt Practices

Preventing Violations of Fair Competition Laws

increasingly borderless nature of corporate activities,

Preventing bribery and corrupt practices is a big challenge for

Hitachi engages in business based on the principles of con-our business increasingly spans countries anda company today. In 2008 Hitachi established rules against

formance with the law and business ethics and fair and open

regions with different governmental and economic

bribery and corruption for the Hitachi Global Compliancecompetition. For this reason, the Hitachi Global Complianceframeworks, trade practices, and sets of values.

Program along with guidelines indicating specific spending

Program incorporates rules concerning competition law andCommon worldwide principles in the form of initia-

thresholds for entertainment, gifts, and other arrangements,

other related business standards and guidelines. In 2017, totives and guidance are becoming increasingly import-

also intended to prevent bribery and corrupt practices. In 2016enhance awareness of ethical principles and practices globally,

ant in order to thoroughly implement fair business

we introduced a policy banning facilitation payments, which

we created a global version of our standards regarding contact

practices around the globe and to avoid any risks

had not been explicitly regulated, along with revisions including

with competitors based on the standards originally preparedthat could impede business activities.

clarification of due diligence procedures for business partners.

for use in Japan.

Hitachi has formulated in-house regulations in line

To ensure awareness of these rules and policies, weFiscal 2017 saw one incident where one of our Group

with widely accepted international standards todeveloped a global e-learning program on preventing bribery

companies was sanctioned and fined by the European

govern important business practices, such as bribery

and corrupt practices, making it available in nine languages—

Commission. This incident relates to a cartel in the condenser

prevention, ensuring of fair competition, and tax

including Japanese, English, and Chinese—for use by Groupbusiness that had already been identified by Japanese and US

compliance, and these regulations are made known

companies worldwide.

authorities in 2016 and earlier. As a measure to preventto and thoroughly implemented across the Hitachi

As the risks of bribery and corruption vary according torecurrence of such an incident, the Group company involvedGroup. There is ongoing global debate concerning

the content of business, the industry field, the market where

has appointed a compliance head in each unit to conduct

each of these issues, and demands regarding cor-

activities take place, the business counterpart, and otherregular reviews of participating business associations andporate behavior and the interpretation of relevant

environmental factors, since fiscal 2013 Hitachi has conductedpromote education through sharing cases of violations withinrules and regulations are constantly evolving. We

surveys across Group companies outside Japan (about 500

and outside Japan.

thus regularly review and update our in-house regu-

companies in fiscal 2017) considering possible risk scenarios.

lations as appropriate in responding to society’s

We will continue risk assessment regularly, reflecting the results

priorities for regaining trust, and so Hitachi will continue its

demands. We will continue to act in a thoroughly

in compliance activities.

efforts to prevent the recurrence of any such incident.

responsible manner as members of both the global
and local community.

In fiscal 2017, there were no incidents in which Hitachi
violated or was penalized under laws or regulations regarding
bribery or corrupt practices.

Hitachi Sustainability Repor t 2018

72

Eliminating violations of competition laws is among our top

Contents

Introduction

Management Approach
Fair Operating Practices

Tax Compliance

Activities

Promoting Work Practices in Line with International Ethics Codes

Furthermore, following the establishment in April 2017 ofrules for Group transfer pricing management, Hitachi manages

Implementing Thorough Tax Compliancetransfer pricing in accordance with the OECD Transfer Pricing

The global expansion of Hitachi’s business activities has madeGuidelines as well as laws and regulations on transfer pricing in

it necessary for the Group as a whole to build a system of tax

each country or region where Group companies are located.

governance in order to comply with indications made by theRegarding tax compliance, Hitachi acts in accordance with

tax authorities in each country and respond to risks concerning

all applicable laws and regulations. Hitachi did not have any

taxation, such as tax-related legal proceedings. In January

significant fines or nonmonetary sanctions for noncompliance2016, we established a set of tax-related regulations with

with tax laws and regulations in fiscal 2017.

which the entire Group must comply. Additionally, in connection
with the globalization of our business, we are implementing risk
management for taxation that focuses in particular on the
points listed below:(1) Group companies strictly comply with all relevant laws andimplement tax management when pursuing their businessactivities, bearing in mind such international tax-compliancestandards as the Transfer Pricing Guidelines for Multinational
Enterprises and Tax Administrations of the Organisation for
Economic Co-operation and Development (OECD), as wellas that body’s Action Plan on Base Erosion and Profit
Shifting (BEPS).
(2) Group companies effectively, continually, and proactively
manage tax-related issues as socially responsible organizations, while maintaining Hitachi brand value and seeking tomaximize shareholder value.
(3) Group companies build sincere and positive relations oftrust with the tax authorities in the regions where thecompanies do business, and strive to maintain anddevelop those relations.

Hitachi Sustainability Repor t 201873

Performance Data

Contents

Introduction

Management Approach
Fair Operating Practices

Activities

Performance Data

Engaging in Responsible Procurement

Engaging in Responsible Procurement
Hitachi’s Approach

Supply Chain Management

We plan to revise these guidelines regularly in the future toensure that they always reflect the demands of global societyInternational initiatives like the UN Global Compact

Creating and Sharing Procurement Policies

have prompted companies worldwide to give

We base our procurement activities on the Hitachi Guidelines

greater thought to CSR and green procurement

for Procurement Activities, while sharing global supply chain

under which they take social and environmental

issues within the Group. All Group companies follow theseconcerns into consideration when selecting suppli-

guidelines. The guidelines were created in line with the Uniteders, thereby strengthening CSR activities throughout

Nations Global Compact and include the elimination of dis-the supply chain.

crimination in employment and occupation, the rejection of all

As a company that procures products and services

forms of child and forced labor, and environmental protection

from suppliers in regions and countries around theactivities. Suppliers are selected strictly in accordance withworld, Hitachi was quick to introduce CSR and green

the Hitachi Guidelines for Procurement Activities.

procurement policies, which are being meticulously

In fiscal 2016, we released the Hitachi Group CSR

implemented by all Group companies. High expecta-

Procurement Guidelines, a full revision of the 2009 Hitachi

tions have been placed on the Responsible BusinessGroup Supply Chain CSR Deployment Guidebook. This revision

Alliance (RBA, formerly called EICC) Code of Conduct

incorporates the provisions of the Hitachi Group Codes ofin recent years as an international CSR standard for

Conduct and also makes references to version 5.1 of thethe industry. We are further evolving our procurement

Responsible Business Alliance (RBA, formerly called EICC)

activities in line with this code, not only reviewing our

Code of Conduct, promulgated in January 2016. To ensure

own CSR standards but also auditing and cooperat-that the guidelines’ provisions are strictly followed, we distributeing with the CSR initiatives of our suppliers.

the Guidelines to the approximately 30,000 suppliers of Hitachi

Moreover, Hitachi has taken the lead in responding

business units and Group companies, from whom we request

to the issue of conflict minerals, which has been theacknowledgment of suppliers’ understanding in writing. Tier 1

focus of public concern in recent years, by scrutiniz-

suppliers are further asked to confirm that tier 2 suppliers also

ing the countries where raw materials are mined, thus

follow the provisions in the guidelines.

preventing infringements on human rights by countries engaged in conflict. Keeping abreast of global
trends, we will continue to share and strengthen on aGroup-wide basis our commitment to fulfilling oursocial responsibilities throughout the supply chain.

Hitachi Sustainability Repor t 201874

regarding corporate supply chain management.

Contents

Introduction

Management Approach
Fair Operating Practices

Guidelines for Procurement Activities

These guidelines define business transaction standards which shall beapplied to all HITACHI executives and employees in connection with theiractivities purchasing necessary materials, products, services, and informationfrom outside sources.
1. Overall procurement activities of Hitachi shall adhere to the “HITACHI
Company Conduct Standards.”
2. HITACHI shall maintain proper partnerships, mutual understanding, andreliable relationships with suppliers with a view to the long term results,
giving due consideration to the following:(1) HITACHI shall treat all suppliers impartially and be prohibited fromfavoritism such as giving unfair priority to any specific suppliers.
(2) HITACHI respects fair business dealings with suppliers and will avoid
any improper act which might cause a loss to a supplier apart fromnormal and customary business transactions.
(3) HITACHI shall keep suppliers’ trade secrets strictly confidential andprevent them from being revealed or improperly used.
3. HITACHI develops suppliers to maintain competitiveness from a worldwide
point of view, with particular attention to the following points:(1) HITACHI responds to all suppliers’ offers sincerely, and is always willingto offer the information necessary for suppliers to compete on an evenplaying field.
(2) HITACHI shall periodically check and review suppliers’ performanceand will consider offering more advantageous business opportunities
when comparison with other resources allows.
4. Through a designated selection process, and in compliance with thestandards given below, suppliers shall be evaluated by product quality,
reliability, delivery, price, suppliers’ business stability, technical development
ability, fair and transparent information release, compliance with societies’
rules, regulatory compliance, respect for human rights, elimination of
discrimination in respect of employment and occupation, elimination of all
forms of child and forced labor, environmental preservation activities,
social contributions, good working environment, and recognition of social
responsibilities with business partners.
(1) HITACHI shall not request quotations from suppliers with whom there isno intention to enter into a future business relationship.
(2) In accordance with specified internal procedures, the authority andresponsibility for specifications, terms and conditions, and productacceptance and inspection belong to each Requester, Procurement
Department, and Inspection Department.
(3) Procurement Departments shall represent HITACHI when contractingwith suppliers.
5. HITACHI members are prohibited from receiving any personal gifts oroffers from suppliers.
Revised in 2009

Procurement Policy

Number of Hitachi Group suppliers(as of December 2017):

likelihood of supply chain risks creating management problems,
and we are working hard to identify and mitigate these risks

Approx.

beforehand as much as possible.

30,000companies (66 countries)

CSR supply chain management and green procurement
policies and initiatives are discussed within Hitachi’s Value Chain

Supply Chain Management Organizational Structure

Integration Division, which is headed by the chief procurement
officer (CPO) and reports directly to the president of Hitachi,Ltd. Policies and initiatives adopted after this discussion areshared throughout the Group through the Hitachi Group CSR
Green Procurement Committee, which includes members fromPresident

In order to share the philosophy of Hitachi among our
suppliers, in fiscal 2015 we also introduced a new initiative toprovide suppliers directly with information in a face-to-face format,

Development of CSR/green
procurement policy

Value Chain Integration Division
Procurement office conferencesbusiness units and key Group companies.

Conferences for procurement managers

CPO Joint Committee
Hitachi Group CSR
Green Procurement
Committee (biannual)(every two months)

Group procurement
strategy conference(biannual)

Regional procurement
conferences (China/Asia/India:
biannual; Europe/Americas: annual)

Target price conference(biannual)in addition to the information shared on the Hitachi website aswell as our CSR monitoring (self-checks), CSR audits, and othermeasures. The most recent of these face-to-face events washeld in March 2018 at a CSR and green procurement seminar
held in Guangzhou for Hitachi Group partners in China. The
event was attended by 90 people from 65 companies. At theseminar, Hitachi explained topics including its fundamental
CSR philosophy, the CSR audit situation, regulatory trends
under Chinese environmental laws, and Hitachi’s related policies.
Feedback from participants included a comment from one
person who was “impressed by the emphasis the company
its social responsibility in a range of areas.” Another participant“gained a sense that profitability is not the sole aim and that it
the comments, the seminar served to deepen the understandingof Hitachi initiatives related to CSR and green procurement.

Hitachi Sustainability Repor t 2018

Engaging in Responsible Procurement

Given the global reach of Hitachi’s business, there is a growing

is important to adhere to environmental laws.” As reflected in
CSR/Green Procurement

Performance Data

CSR Supply Chain Management Framework

places not only on monozukuri craftsmanship but also on fulfilling
Guidelines for Procurement Activities

Activities

75

Implementation by
all procurement members
Business unit procurement members

Major Group company
procurement members

Contents

Introduction

Management Approach
Fair Operating Practices

Activities

Performance Data

Engaging in Responsible Procurement

Green Procurement

products and other environment-related data from suppliers as

Response to the Conflict Minerals Issue

To procure parts and materials manufactured with reduced

soon as it becomes available. The goal is to manage chemicals

Hitachi released a Conflict Minerals Procurement Policy inenvironmental impact, so that suppliers help to protect thecarefully. Under this system, we encourage suppliers to use theSeptember 2013. Our Request to Our Suppliers, based on

environment, it is crucial that we share our commitment to

MSDSPlus* /AIS* reporting templates published by the Joint

this policy, is published on our website as a clear statement ofenvironmentally conscious monozukuri craftsmanship through-

Article Management Promotion Consortium*3 to achieve

our position.

out our entire supply chain. In fiscal 1998, we led the industry

smoother and more efficient transmission of information.

1

2

In fiscal 2016, we revised this policy to ensure that procure-in developing Green Procurement Guidelines to define our

We revised the guidelines again in April in 2018 in anticipation

basic position on procuring parts and products that do notof the reporting templates becoming invalid at the end of Junebenefit armed groups in the Democratic Republic of the Congo

have a negative impact on the global environment, as well as

in the same year. Currently, instead of templates, we recommend(DRC) or adjoining countries. The policy now explicitly lays out

our requirements of suppliers, so that we can work together tothe use of chemSHERPA*4-CI/AI, a common scheme thatthe measures to be implemented, including inquiries based on

promote green procurement. The guidelines set out supplierfacilitates transmission of information on chemical substancesinternational guidelines, to ensure responsible procurement.

requirements for environmental conservation, including building

in products throughout the supply chain.

an environmental management system and acquiring certifications. There are also requirements for reducing the environmental
impact of products supplied to Hitachi, such as conserving
resources and energy in production, recycling, managing
chemical substances, and fully disclosing related information.
There is a global trend toward tighter regulations on
chemical substances. In fiscal 2013, we reviewed our categories
for controlled chemical substances in our Green Procurement
Guidelines to comply with the stipulations on restricted
substances, authorized substances, and substances of very
high concern (SVHCs) in Europe’s Registration, Evaluation,*1 MSDSPlus: A format for reporting chemical substances contained in products created by
upstream companies (chemical manufacturers) for midstream companies (molded productmanufacturers, etc.).
*2 AIS: A format for reporting chemical substances contained in products created by
midstream companies (molded product manufacturers, etc.) for downstream companies(assembly manufacturers, etc.).
*3 Joint Article Management Promotion Consortium (JAMP): Established in September 2006
as a cross-industry promotion association of 17 companies endorsing the idea that “it isessential for the enhancement of industrial competitiveness to ensure proper managementof information on chemical substances contained in articles (parts and final products), andto establish and popularize a concrete mechanism for smooth disclosure and transmissionof such information in supply chains.”*4 chemCHERPA: A standard developed by the Japanese Ministry of Economy, Trade, andIndustry to facilitate the management of chemical substances in products by creating ashared transmission scheme throughout the supply chain. The chemCHERPA-CI standard
is applicable to chemical substances contained in chemical products and chemCHERPA-AI
to those contained in molded products.

Authorization, and Restriction of Chemicals (REACH) regulation
for managing chemical substances within the European Union.
Specific changes include: (1) moving some chemicals to the

Hitachi Group Green Procurement Guidelines
Joint Article Management Promotion Consortiumprohibited substances list, (2) further breaking down the controlled substances list, and (3) adopting the industry association
list. The previous guidelines were revised to version 8.5 anddistributed through Group companies and business units to
suppliers to ensure that they are fully informed. We have built
A Gree’Net, an Internet-based green procurement system, tocollect information about chemical substances contained in

Hitachi Sustainability Repor t 201876

ment of components incorporating conflict minerals does notContents

Introduction

Management Approach
Fair Operating Practices

Activities

Performance Data

Engaging in Responsible Procurement

Hitachi Group Conflict Minerals Procurement Policy

Strengthening Global Partnerships

Rate of Local Procurement of Materials for Main Regions

Conflict Minerals

A key element of the Hitachi Group Vision is to improve the(Hitachi Group)

There are numerous types of mineral resources buried within the lands

competitiveness of our value chain based on partnershipsof the Democratic Republic of the Congo, located in central Africa, andits neighbouring countries. Ores containing minerals such as tin which isused in solders to secure electronic parts to printed circuit boards,

with our suppliers. Given our business aim to expand
internationally, we need to extend our procurement globally,tantalum which is used in capacitors, tungsten which is used in superhard

looking toward increasing local production for local

materials, and gold which is used in lead frames can be found in thisconsumption. In fiscal 2011, we appointed procurement

region. The locals extract these ores, which traders and brokers export

officers to oversee local procurement in China, the rest of Asia,

to other countries in order to earn valuable foreign currencies, but part

Europe, and the Americas.

of those foreign currencies are forcibly collected and used as funds to

A global supplier database built in fiscal 2013 was followed

purchase weapons by armed groups that repeatedly engage in conflictin fiscal 2014 by a new global procurement scheme using theand violate human rights in the same region, which has become a major
problem. As such, the minerals listed above are called “conflict minerals”.
Procurement Policy

78%

Rest of Asia

71%

professional service functions available in the Group at the time
(Hitachi High-Technologies, Hitachi Capital, and Hitachi Transport
System). We are expanding our suppliers in emerging nations

The policy for procurement departments in all Hitachi Group companies

while also strengthening our response to CSR-related risks

have always been and will continue to be to ensure that procurement

expected to arise from the global expansion of our supply chain.

activities do not result or aid in conflicts within the same region and thatthe armed groups described above do not benefit from those activities,
while continuing responsible procurement activities of minerals that are
not related to the conflicts in the region based on local laws. Additionally,
we will continue to support the practice of due diligence based on the“OECD Due Diligence Guidance for Responsible Supply Chains ofMinerals from Conflict-Affected and High-Risk Areas” among companies.
With these in mind, Hitachi Group would like to request all our suppliers
to utilise the Conflict Minerals Reporting Template developed by RBA/GeSI to continue checking the country of origin and supply chain ofminerals, and also to procure from the CFS (Conflict Free Smelter)*1
listed within.
*1 CFS (Conflict Free Smelter): A list of smelters who have been identified as “not being
involved in the conflict within the same region” by the Responsible Minerals Initiative(RMI), an organization that was founded by the RBA/GeSI, which is a group that aims
to solve the conflict minerals problem.

Hitachi Group Conflict Minerals Procurement Policy

Hitachi Sustainability Repor t 2018

China

77

EuropeAmericas

%

%

70

57

Contents

Introduction

Management Approach
Fair Operating Practices

Activities

Performance Data

Engaging in Responsible Procurement

Implementation of CSR Monitoring (Self-Checks)

No major infringements were found at the 18 suppliers

To monitor how well Hitachi’s CSR supply chain management

audited in fiscal 2017, but some small areas needing improve-

philosophy has been adopted by our suppliers, since fiscal

ment were noted, such as overtime work exceeding stipulated

In fiscal 2016, we published the fully revised Hitachi Group

2007 we have asked key suppliers to conduct CSR Monitoring

rules (14 suppliers), failure to conduct periodic inspections of

CSR Procurement Guidelines based on results obtained from(self-checks) using the JEITA Supply Chain CSR Deployment

machinery and equipment (12), and insufficient management of

human rights due diligence activities in fiscal 2015 as well as

Guidebook and detailed checklists. After collecting and analyzinghazardous waste (7). The relevant suppliers were requested to

input from a range of sources and perspectives, including

the results, we provide feedback for the business operations

submit improvement action plans, and Hitachi, Ltd., together

Hitachi Europe, Hitachi (China), and outside experts.

related to the suppliers, and then work with those involved inwith Group companies, will work with and advise the suppliers

the operations to resolve issues related to the suppliers. Since

until they complete the planned improvements.

fiscal 2011, we have expanded the scope to include suppliersin China and the rest of Asia, and in fiscal 2017 we asked 131*1 Intertek Certification: With a presence in over 100 countries across the globe, the IntertekGroup provides a wide array of certification services in every industrial field.

human rights risks within the supply chain, set priorities, andconsidered measures for reducing risks.

In fiscal 2017, Hitachi will further incorporate input fromvarious perspectives into the revised CSR Monitoring (self-check)checklists for suppliers to prevent supply chain risks. As well
as strengthening and improving existing initiatives in this way,
we will use the results obtained from the checklists to deepen

suppliers inside and outside Japan to conduct CSR Monitoring
and received survey replies from them. From fiscal 2017, all

Increasing Green Purchasing of Office Supplies

our communication with suppliers. As part of our efforts tochecklists were fully updated in accordance with the revisions

We are improving our green procurement rate—the ratio of

eliminate the use of forced labor, we visited one of our suppliers

made to the Hitachi Group CSR Procurement Guidelines. The

environmentally conscious products purchased to total officein Malaysia with members of nonprofit organization BSR

survey results allowed us to identify labor-related issues requiring

supplies—by using a Group-wide online procurement system:(Business for Social Responsibility) to conduct an assessment

attention, and we will take precautionary measures to prevent

the E-sourcing Mall. This system has a range of environmentallyon immigrant workers, who are often subject to forced labor.

issues arising.

conscious products and promotes procurement by clearly

The results of the assessment were shared with the supplierlabeling these products. In fiscal 2017, our green purchasing

and related businesses, and we are urging the supplier torate reached 86%.

improve working conditions where such improvement is

Implementation of CSR Audits

deemed necessary.

Since July 2012, Hitachi, Ltd. has been auditing the manufacturing bases of its and Group companies’ suppliers in China

Human Rights Due Diligence in Procurement

and the rest of Asia. In fiscal 2017, we conducted CSR audits

Starting in fiscal 2015, the Hitachi Group Procurement Division

enhance suppliers’ understanding of the expectations ofof 18 suppliers.

began implementing human rights due diligence based on the

Hitachi Group procurement departments and, at the same

In cooperation with outside experts, we will continue to

For these audits, we engaged the experienced CSR auditing

Hitachi Group Human Rights Policy. With the assistance of thetime, promote capacity building at suppliers and take othercompany Intertek Certification.*1 Our audits are based on the

consulting services of the nonprofit organization Shift, we havenecessary measures.

international SA8000 certification standard developed bycreated a working group centered on the procurement andSocial Accountability International (SAI), an American CSR

CSR divisions at Hitachi, Ltd., which serve as the corporate

evaluation institution. These audits investigate our workplace

divisions overseeing activities throughout the Group, including

practices, and an RBA-recognized auditor checks suppliers’

the procurement and CSR divisions of two in-house companies,

CSR initiatives from the perspectives of labor and humannow called business units, four Group companies and the CSR

rights, health and safety, the environment, and ethics.

division of Hitachi Asia. The working group has evaluatedHitachi Sustainability Repor t 201878

Respect for Human Rights

Contents

Introduction

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Hitachi’s Aims: Building a Sustainable Society Through Our Products and Services
Under the Hitachi Group Codes of Conduct, we have worked

accurate information about our products and services while

to provide high quality and safe products and services andstrictly managing customer information. In accordance withto prioritize the customer’s perspective. The Hitachi Group

this philosophy, we provide a broad range of channels

provides a broad range of products and services extending

through which customers can make an inquiry or voice theirfrom household electronics to social infrastructure, and we

opinions about our products and services. In addition to

strive to expand our lineup to address the needs of ourcommunicating with the sales floor staff, customers canclients and issues facing society. We feel it is important tocontact our comprehensive customer support through thecontribute to building societies where everyone can enjoy a

websites of Hitachi, Ltd. and all Group companies.

lifestyle of convenience and comfort, and toward this goal
we are working to respond to the diverse needs of customers
regardless of factors such as age, physical and mental abiliKey SDGs

ties, economic circumstances, and cultural background.

Customers(Consumer Issues)

We develop products and services with which customers
will be satisfied and which can be used with confidence
while also striving to improve their accessibility. We also
respect the rights of customers and are working to provide

Hitachi and Society

Hitachi Sustainability Repor t 2018

Our Impact on Society

Our Performance

No. of consolidated subsidiaries (Japan)

Information and security audits

202

221

companies (as of March 2018)

companies(Hitachi Group in Japan and Hitachi, Ltd.)

79

Contents

Introduction

Management Approach

Activities

Customers (Consumer Issues)

Performance Data

Pursuing Customer Satisfaction

Pursuing Customer Satisfaction
Hitachi’s Approach
As a company that offers a broad range of products

shared with a continually larger number of Group com-

Japan, and the whole Group works with them to build closer

panies outside Japan, enabling Hitachi to enhance

relations with customers and to boost customer satisfaction.

customer satisfaction from a global perspective.

Our Hokkaido, Tohoku, Chubu, Kansai, and Shikoku areaand services, we believe it is important to engage inoperations hold executive seminars for local customers.

corporate activities with the general public in mind,

Through direct dialogue with customers participating in thesenot just the corporate and individual consumers withwhom we deal directly.

seminars and lectures, we incorporate their expectations for

Customer Satisfaction

Hitachi and their opinions into product strategies.

To improve customer satisfaction, we have created

To accelerate collaborative creation with customers in

the Customer Satisfaction Management Guidelines.

CS Improvement Activities

Hitachi’s evolving Social Innovation Business, we also holdWe share customers’ thoughts obtained throughUsing the Customer Satisfaction Management Guidelines, one

Hitachi Social Innovation Forums in Europe, Asia, and otherdirect dialogue, customer service counters, and otherof the pillars of the company’s business management, Hitachiregions, providing lectures, exhibits, and more. Our sales

means within the relevant divisions and reflect thesecontinues to improve CS with the goal of creating innovation

teams invite our customers to these events to deepen theirin our management, products and services, and solu-

through collaboration with customers.

understanding of Hitachi’s business. We also collect feedback

tion strategies.
The opinions and requests we receive from ourcorporate clients, as well as the more than 2.2 million
comments submitted each year by a broad spectrumof individual customers, are shared with all Hitachi
divisions engaged in manufacturing. Drawing on ourstrengths as a provider of solutions for consumer
issues, we apply this feedback in implementing

from these events to improve our future operations.
Customer Satisfaction Management Guidelines
1. Listen to our customers, who determine the value of products andservices
2. Review information from our customers is another source ofimprovement
3. Offer prices and quality that are competitive

Our R&D Technology Community program provides
opportunities for collaborative creation with customers. Project
leaders invite customers to their research labs to see exhibitsof products and systems currently being developed.

4. Respond rapidly to keep our promises to our customers

Applying Advertisement Guidelines

5. Adopt systems that prevent accidents and minimize their impact

Based on its Customer Satisfaction Management Guidelines,

improvements in a full range of products, from indus-

Formulated in 1994

trial equipment to consumer appliances.

Hitachi, Ltd. applies advertisement guidelines to ensure that its
advertising activities comply with laws and regulations showing

We also look to communicate information throughproper consideration for society as a whole. We will continue

our advertising and public relations activities in a

Reflecting Customers’ Voices

to create advertisements that reflect ongoing changes in society,truthful and appropriate manner that does not mis-

Our sales and marketing division uses customer input inthat provide customers with clear and concise messages, andlead customers or in other ways that may adversely

developing management, product, and solution strategies.

that are appropriate for a company committed to contributing

affect society, such as by reinforcing human rights

We identify key customers who will help grow our business,to society.

infringements. These guidelines and activities arethen assign an account manager (AM) to each one. The AMs

As issues that arise from advertisement activities can have

serve as customers’ “portals” into Hitachi Group companies inbroad impact on the company, we have established in each

Hitachi Sustainability Repor t 2018

80

Contents

Introduction

Management Approach

Activities

Customers (Consumer Issues)

Pursuing Customer Satisfaction

business unit a framework for evaluating the expressions in

Happiness: Encircling People and All Their Dreams for the Future.”

advertisements that stands independent of the ad production

Our call center and website handle about 2.24 million cus-

process. Following this institutional check, we also evaluate

tomer inquiries, repair requests, and complaints about washingadvertisements to ensure that they are socially appropriate.

machines, LCD TVs, and other appliances per year.*1 We have

We designed our advertisement guidelines to be flexibly

undertaken a number of initiatives to better respond to inqui-95

adjusted and applied to the entire Hitachi Group’s diverse

ries and to reflect customer feedback in our monozukuri crafts-

90

operations. At our business locations outside Japan in particu-

manship, including improving the contact success rate by85

lar, we strive to ensure appropriate advertising activities byusing outsourcing; creating a database of customer feedback,80

confirming all items on the checklist included in the guidelines.

including consultations, inquiries, and complaints; and enhanc-75

ing our website’s FAQ section.

0

Providing Customer Support Online

tion surveys at approximately 90 service centers in Japan.

This enables us to process customer inquiries, opinions,

Based on the answers, we improve services through CS

requests, and complaints—in collaboration with the customer

training courses and other programs.

(Customer Satisfaction)

services. We also conduct training courses to provide better

the Middle and Near East. We are also working on unifying

handling of these inquiries.

management of operations outside Japan.

Customer Contact Cases, Call Completion Rate

which features case studies on responses to inquiries. Going(12-Month Average)(Cases per month)(%)

nies to respond more quickly and effectively to customer inqui-

100,000100

ries, using the website as an important contact tool.

80,000people of all ages—both at home and in the city. In Japan,
these initiatives are carried out under the slogan, “360°Hitachi Sustainability Repor t 2018

97.3

97.4

97.3

2013

2014

2015

2016

2017

82.1

80.5

82.3

74.8

76.4

36,19736,91980
60

60,00039,78237,15840,000

5,952

20,00033,830

0

2013

4,782

32,376

2014

38,817

4,050

3,500

3,049

40

32,14733,41935,768

20

2015

2016

2017

White goods (electric home appliances and other products) (left scale)
Brown goods (electronic equipment) (left scale)
Call completion rate (right scale)

81

(FY)

Information on repair service

RepairInquiry

Response

forward, we will strengthen coordination among Group compa-

provides services and solutions to improve quality of life for97.2

Repair request

Customers*1 Since fiscal 2013, technical inquiries from suppliers and parts orders have been excluded
from these statistics.

course (bringing the cumulative total to 795 participants),

The Electric Home Appliances Customer Satisfaction Division

97.1

RepairContact
Centerfiscal 2017, 45 Hitachi Group company employees took the

Improving Customer Satisfaction inElectric Home Appliances

100

(FY)

Flow of Customer Service

With the expansion of Hitachi’s markets outside Japan,
sales offices have been opened in ten countries in Asia andResponsiveness Improvement Course since fiscal 2009. In(%)

Note: Evaluation survey for fiscal 2017 carried out in June–July 2017 (35,400 respondents;
37.9% response rate) and December 2017–January 2018 (28,800 respondents; 35.8%
response rate).

improve our business operations, as well as our products andAs one initiative, we have been holding the Web Inquiry

Results of Evaluation Survey for Customer Repair Services

We also conduct semiannual customer service evalua-

Hitachi offers comprehensive customer support on its website.

support offices of Hitachi Group companies in Japan—to

Performance Data0

Response activity

Individual
business group
Qualityassurance
department

Feedback on improvements

Customer
SupportContact
Center(no repair)

Input indatabase

Flow of information

Feedback

Designdepartment

Manufacturing
department

Information sharing

Contents

Introduction

Management Approach
Customers (Consumer Issues)

Activities

Performance Data

Ensuring Accessibility to Products and Services

Ensuring Accessibility to Products and Services
Hitachi’s Approach

Universal Design

panel behind each. Maintainability was improved by equipping
the dryer filter with a sliding blade, allowing captured dust to

ISO 26000 provides guidelines for corporate social

We promote universal design (UD) with a focus on three

responsibility. It identifies such core consumer issues

aspects of our products: their quality of use, their accessibility,

as “fair marketing, factual and unbiased information,”and their entire life cycle. Quality of use means focusing on theand “access to essential services,” and calls on cor-traits that make people feel that the product is easy andporations to actively take measures addressing

enjoyable to make a part of their lives. Accessibility refers tothese. It is the base of our CSR management frame-

the range of people who can use a product or service. And life

work, and in applying it we are working to improvecycle covers all the customer-relevant stages of the value chain,

our products and services to make them broadly

from product purchase through to disposal.

accessible to society through such activities as the

We conduct basic research on users’ behavioral andappropriate disclosure of product information and thecognitive characteristics to formulate UD guidelines and reflectpromotion of universal design.

these in product development, incorporating input from users

As symbolized by the adoption of the UN

and experts at every stage. The information obtained during

Sustainable Development Goals, worldwide interest

product development goes into a database shared by ouris growing in achieving a more sustainable society,businesses in Japan. We also distribute some of thissuch as by supporting the economic growth andinformation externally to promote open-source standardization

higher living standards of emerging economies. We,

and education.

too, are enhancing our business structure to contrib-

We incorporate UD considerations as a fundamental

ute to the development of these economies, develop-

component of home and digital appliance product design.

ing products and services to meet new social needs

During the development of the front loading washer-dryer

and engaging in active marketing activities carrying

machines released by Hitachi Appliances in 2017, we modified

out our Social Innovation Business.

the 2016 UD-conscious models to further improve the product’s
performance, including increased capacity and extended rangeof functions.
Based on usability testing of the previous year’s model, we
built on earlier exploration of button layouts for more intuitive
operation and angles for superior visibility to further enhance
operational simplicity and usability by clarifying functional areas.
For example, buttons are now aligned horizontally with a display

Hitachi Sustainability Repor t 2018

be more easily removed.

82

A front loading washer-dryer machine that incorporates
UD-conscious performance improvements.

Contents

Introduction

Management Approach
Customers (Consumer Issues)

Product Safety Information Disclosure

aims to digitalize administrative and financial services andprovide digital infrastructure to citizens.

Information Disclosure for Safety

In April 2018, Hitachi formed Hitachi MGRM Net by acquiring

Hitachi’s Product Safety Assurance Guidelines state that ourshares in MGRM Net, a company with a history of successful

highest priority is the safety of our customers, and, based on

application development for the government-led “e-Governance”

these guidelines, we promote activities to ensure safety acrossdigitalization initiative. Going forward, we will contribute to

the Group.

Digital India by offering solutions in fields such as education,

As changes in social norms and the environment bringabout the need for higher standards of safety, we are craftingeven higher safety standards through Group-wide activities tohealthcare, agriculture, and insurance, combining the expertiseof MGRM Net with our Lumada IoT platform.
In the financial services field, Hitachi Payment Services

increase trust in Hitachi, sharing the latest practical cases(1,300 employees as of May 2018) provides services including

within the Group and cross-evaluating the product-safety

operation and maintenance of automated teller machinesactivities of each division.

(ATMs*1) and support for optimal selection of ATM locations.

We are also proactively working to disclose safety informationon the use of our products and establish the Guide for Preparing
User Instruction Manuals in order to improve risk communication
with our customers.

As of May 2018, we manage over 50,000 ATMs and over
800,000 point of sale (POS) service devices.
Additionally, in response to India’s strong demand forATMs and a governmental “Make in India” initiative designed topromote the manufacturing sector, Hitachi established Hitachi

Adaptation for Emerging Markets

Terminal Solutions India (30 employees as of the end of April2018) as an ATM manufacturing base. Producing highly reliable

Product and Service Adaptation for Emerging
Markets

banknote recycling ATMs using the latest sensing and

As a consequence of their rapid economic development,

Terminal Solutions, the company is aiming at a manufacturing

emerging markets face issues including food shortages,

target of 1,500 units per month.

poverty, and environmental and energy concerns, which aremechatronics technology developed by Hitachi-Omron

As the Digital India program advances, cashless settlement

attributed to urbanization and population growth. In an effort toand other FinTech*2 services are expected to grow. Hitachi

seek solutions to these social issues, we are expanding ourstands at the forefront of these developments, strengthening

Social Innovation Business globally.

its support for cashless settlement services in addition to its

India is the seventh largest country by area and the second

existing cash settlement solutions and continuing to contributelargest by population. With economic development expanding

to the improvement of India’s financial and settlement

and household income rising nationwide, India’s government

infrastructure.

has launched an ambitious program called Digital India that

Hitachi Sustainability Repor t 201883

Activities

Performance Data

Ensuring Accessibility to Products and Services

Moving forward, we also plan to expand our financial services
business in Southeast Asia and other emerging countries.
*1 Here, ATMs are defined to include cash dispensers (CDs).
*2 FinTech: A portmanteau of “financial technology,” describing convenient and innovative
financial services using IT created from the point of view of customer needs.

Contents

Introduction

Management Approach
Customers (Consumer Issues)

Activities

Performance Data

Ensuring Thorough Management of Quality and Safety

Ensuring Thorough Management of Quality and Safety
Hitachi’s Approach

Quality Assurance Activities

Intensive Risk Assessment
Hitachi is committed to the delivery of safe products andMeeting the quality standards our customers expect

About Our Activities

services by combining expertise and technologies in such variedand providing products and services they can use

Based on the Corporate Credo of contributing to society

areas as planning, research, design, manufacturing, quality

with confidence are the management themes cited atthrough the development of superior, original technology andassurance, and maintenance. The safety of our customers’ life,

the beginning of the Hitachi Group Codes of Conduct

products, Hitachi is engaged in the monozukuri craftsmanshiphealth, and property is the top priority in product development.

that each employee is expected to fulfill as a promisewith quality and reliability as top priority. An integral aspect ofTherefore, we verify safety at every step, from development

to society. We are establishing thorough quality

this is ochibo hiroi, Hitachi’s traditional approach meaningand production to sales and maintenance, and conduct risk

assurance measures from the design and production“gleaning” in English, through which we learn from failure andassessments from a wide perspective in collaboration withstages through after-sales service, as well as working

further develop our technologies. In practice, when an accident

related business units and research laboratories. In responding

to ensure a quick response and proper information

occurs, we not only investigate the technical cause of theto these risks, we apply the safety principles of ISO/IEC Guide

disclosure in the event a problem emerges. In addi-

accident but also have an executive officer in charge and

51 in accordance with the product safety handbook for businesstion, as production and other operations increasingly

relevant staff members thoroughly discuss the process,operators published by Japan’s Ministry of Economy, Trade, andtake place outside of Japan, we are giving impor-framework, and psychological factors of the incident in order

Industry, ensuring safety by means of the mitigation measures

tance to quality assurance in our global humanto improve our product reliability and customer satisfaction.

of risk reduction through design (fundamental safety design),

resource development activities and working to

To ensure that quality and reliability are maintained, we enhancerisk reduction through protective measures (safeguards), andexpand our current programs. To protect information

our quality assurance activities from the perspectives of organi-risk reduction through usage information (product manuals),privacy, Hitachi adheres to the European Generalzation and management, technology, and human resources inin order of priority.

Data Protection Regulation (GDPR) and other rules

every process—from planning and development to design,

and regulations in each country and region around

manufacturing, delivery, and maintenance.

the world.
These efforts are important in enabling Hitachi toComplying with Technical Laws

Since fiscal 2010 we have been promoting Group-wide

To supply our customers with products that they can use withmeasures to ensure product safety, compliance with laws

confidence, we comply with all product safety and technicalgrow together with society. They must also be

and regulations, human resource development, and quality

laws, including those covering environmental consciousness andactively and comprehensively pursued in light of the

improvements. In addition, with a view to achieving the goals

safety labels. We distribute information on product regulations

impact of our products and services on society inof our 2018 Mid-term Management Plan, from fiscal 2016 weworldwide, along with amendment trends and enforcementcase of an emergency. Hitachi not only complies withhave been steadily working to improve the quality of services

dates, among Hitachi Group companies. We have also createdlaws and regulations but also formulates and abides

and the reliability of our products and to reduce losses arisingguidelines for assessment of technical laws and quality assurance

by stringent Group-wide criteria in response to eco-from quality issues with better quality management.

systems, sharing them throughout the Group. The guidelines

nomic, social, and technological demands.

focus on clarifying product-specific laws (the product-specificlaws map); on regulatory compliance activities and continuous

Hitachi Sustainability Repor t 201884

Introduction

Contents

Management Approach

Activities

Customers (Consumer Issues)

Performance Data

Ensuring Thorough Management of Quality and Safety

We will continue to make all our consumer appliances even

Response Flow in the Event of Product Accident

safer, using our own voluntary action plan for product safety,
so that customers can use our products with confidence.

Accident
occurrence

Hitachi Group
Information gathering

CustomerliaisonCustomers,
retailers

QA
Department

Emergency
response
authorities

Seriousproduct
accident

Confirmation of accident status

Investigation of cause
Response andreportingOn-siteinvestigation

Product
investigation

Investigation ofdamage scope

Consumer Affairs
Agency, etc.

ReportTop management

Investigative
committee on serious
product accidents
Decision on
seriousnessof accident

Training Global QA Personnel in Asia
As local production has been growing in Asia, we are carryingout training to ensure that products from the region meet

Product recall
Notification via web,media

Hitachi’s global quality standards. For example, we host conferences for QA managers in China and Thailand, where wehave a large number of manufacturing sites, to raise quality
awareness with regard to Hitachi’s monozukuri craftsmanshipand to share information and best practices.

Flow of information

ReportInformation sharing

Additionally, to help employees in quality assurance become
global players and improve their level of quality management,

improvement of processes, based on our compliance manage-

Quality and Reliability Education

we provide three levels of training courses in Beijing, Shanghai,ment system; and on compliance education, as well as raising

We conduct technical lectures for engineers engaged inand Guangzhou in China and in Bangkok, Thailand: the Basiccompliance awareness.

monozukuri craftsmanship at a range of levels from beginner

Reliability Course,*1 Intermediate Reliability Course,*2 andto expert.

Advanced Reliability Course. In the Advanced Reliability

Handling Product Accidents

Each business unit also conducts specialized technicalCourse, managers and senior managers hold group discussions

When a product accident occurs, the division responsible acts

courses regarding manufacturing, quality assurance, andon past product accidents to investigate the causes, including

swiftly to resolve the problem from the customer’s perspective.

maintenance at their quality assurance training centers.

process-related, organizational, and psychological factors, andthese discussions help them enhance their ability to identify

For an especially severe accident, we report to government
agencies in line with legal requirements and publish the incident

Ensuring Home Appliance Safety

information on our website and through other channels. At the

We are reducing consumer appliance accidents to near zerosame time, we promptly submit a status report to top manage-

levels in line with Hitachi’s Customer Satisfaction Management

ment, ensuring fast and appropriate action at all companies

Guidelines, which set avoidance of all accidents as the baseline.

across the Group.

To this end, we conduct product safety risk assessment aswell as testing worst-case scenarios—for example, deliberately
setting a fire inside a product to confirm that the fire will not
spread outside it. Furthermore, along with each product’s fullmanual, we include a quick start guide summarizing key
features and operations, and make step-by-step how-to
videos available on our corporate website as well.

Hitachi Sustainability Repor t 201885

issues and craft solutions.
*1 Basic Reliability Course: Deepens understanding of Hitachi’s monozukuri craftsmanship,
quality management, and labor safety.
*2 Intermediate Reliability Course: Improves understanding of more practical issues, including
Hitachi’s monozukuri craftsmanship, ISO 9001 certification, defect elimination, design for
reliability, and purchase management.

Contents

Introduction

Management Approach

Activities

Customers (Consumer Issues)

Rigorous Information Management

During fiscal 2017, there was no grievance concerning
breach of customer privacy or loss of data.

Communicating with Customers on the Web andSocial Media

Performance Data

Ensuring Thorough Management of Quality and Safety

Personal Data Protection Laws Outside JapanAs the risk of privacy violation increases with the advancementof IT and globalization of socio-economic activities, lawmakers
are actively seeking to create new legislation and modify existing

Privacy Mark* Certification1

Hitachi places great importance on its corporate website,

Hitachi, Ltd. first received Privacy Mark certification in Marchlaws in countries and regions around the world. In particular,social media, and other tools for promoting its activities and2007. We have maintained the high level of privacy protection

the impact of the European General Data Protection Regulation

deepening customer understanding as part of developing its

needed to renew this certification and we are working toward(GDPR) has extended far beyond Europe’s borders. The Hitachi

Social Innovation Business globally. Effective risk management

our sixth renewal in March 2019.

Group is addressing the GDPR on a global basis, responding

is required when using these tools to protect our brand and

The entire Hitachi Group is committed to personal informa-

avoid violating the rights of others, including human rights. Totion protection, with 44 Hitachi Group companies

this end, we have established the Hitachi Disclosure Policy, thehaving received the Privacy Mark as of May 2018.

in JapanGlobal Information Security Administration Rules, and the Social

Hitachi also strives to safeguard personal information globallyMedia Communication Guidelines as guidance instruments,

at Group companies outside Japan based on each company’s

sharing them with Group companies worldwide.

personal information protection policy and compliance with all

Also, HiCRM, Hitachi’s customer relations management
system, has been applied to 195 Group companies to collectand accurately manage customer and transaction information
Group-wide, in addition to serving as a marketing tool. HiCRM
covers more than 80% of the orders received across the wholeGroup, with the database enabling us to formulate more
effective sales strategies and offer collaborative solutions by

applicable laws and regulations as well as the expectations ofsociety at large.
Hitachi experienced no leaks of personal information during
fiscal 2017.
*1 Privacy Mark: A third-party certification established in April 1998 that is granted by theassessment body Japan Information Processing Development Corporation to businesses
that have taken appropriate security management and protection measures related topersonal information.

multiple businesses. We are currently considering rolling out
the system more aggressively across the Group.

Personal Information Protection Policy

Protecting Personal Information
We established a personal information protection management
system based on our Personal Information Protection Policy.
Through the rollout of this system, as well as the safe handlingof personal information, programs for all employees, andperiodic audits, we are ensuring protection of personal
information throughout the company.

Hitachi Sustainability Repor t 2018

86

appropriately to it both within Europe and around the world.
The Group continues to monitor related developments in orderto take appropriate action when necessary.

Contents

Introduction

Management Approach

Activities

Performance Data

Community Involvement and Development

Hitachi’s Aims: Building a Better Future Through Collaborative Creation
Corporations interact with a diverse community ofwith society, such as through youth development, creation

stakeholders through their on-site operations. In workingof cultural diversity, assistance for local community develop-

toward a sustainable society, modern corporations arement, and environmental preservation.

expected to recognize the value of community interaction
and utilize their operational strengths in actively supporting
the local community through projects that bolster

Key SDGs

involvement and development at the local level.

Community
Involvement andDevelopment

Hitachi Sustainability Repor t 2018

As a good corporate citizen, Hitachi is collaborating withvarious stakeholders in carrying out a diverse range ofcommunity activities with the aim of achieving coexistence

Hitachi and Society
Our Impact on Society

Our Performance

Funding for social contribution activities

No. of participating volunteers

2,195

53,74987

million yen

Contents

Introduction

Management Approach
Community Involvement and Development

Activities

Performance Data

Promoting Sustainable Community Involvement and Development

Promoting Sustainable Community Involvement and Development
Hitachi’s ApproachSocial Contribution Activities

provided 2,194.72 million yen in funding toward social contribution activities worldwide. Additionally, 53,749 Hitachi Group

Our diverse operations span the globe and involve a

Policy on Social Contribution Activities

wide range of communities. In order to participate in

Hitachi’s Group-wide policy on social contribution activities

a community, establish a long-term relationship withguides our promotion of a range of socially responsible initia-

Policy on Social Contribution Activities and Statement

it, and contribute to its development, we believe it istives. The engine of our various businesses including social

Policy on Social Contribution Activities

important to strategically pursue social contribution

innovation is driven not only by Hitachi’s efforts to build a rela-

The Hitachi Group promotes interactive communication with local

activities and to establish sustainable goals. We havetionship with communities as a corporate citizen but also by

formulated a policy on social contribution activities

our employees’ flexible mindset and motivation brought about

and are carrying out a wide variety of activities acrossby volunteer activities. We believe that these initiatives enable

the Group.

us to contribute to the development of sustainability in both

“Nurturing People, Connecting to the Future”

our business and society as a whole.

The statement was set down to succinctly express and convey the

The results of these activities are monitored using
internationally recognized methods for measuring

As one of Hitachi’s global efforts, we introduced the Hitachi

effectiveness, and improvements are made as

Volunteer Day in fiscal 2012. To mark the International Volunteer

needed. In order to realize the sustainable society

Day on December 5 each year, we set every November andenvisioned by Hitachi, the entire Group will join hands

December as a period during which we further encourage ourto promote STEM education and cultivate human

employees to organize and take part in a broad range ofcapital capable of tackling social issues. We will also

volunteer activities to contribute to their communities. In fiscal

seek additional ways for the Hitachi Global Foundation

2017, approximately 4,400 employees and family members

to contribute to local communities as we accelerateparticipated in 143 separate activities rooted in local communi-

our efforts moving forward.

ties, from environmental initiatives carried out together withlocal residents and students to support for welfare and educational facilities.

employees participated in social contribution activities.

society through social contribution activities related to business activities, employee volunteers, and charitable activities in the key fields ofhuman development, the environment, and community support.
Statement

meaning of the policy to as many people as possible.

Social Contribution Activities

Key Indicators
Breakdown of Funding for Social Contribution Activities
Other

17.7 %

Human development(including disaster44.8 %

relief

9.7 %)
2,195 million yen*1

These activities are promoted by our Sustainability
Promotion Division in conjunction with the CSR and social
contribution departments of business units and major Group
companies, planning and carrying out initiatives as appropriate

Community support

34.6 %

Environment

to the nature of their business and the needs and challenges of
the regions they operate in.
In fiscal 2017, Hitachi and the Hitachi Global Foundation

Hitachi Sustainability Repor t 201888

*1 Japan: Hitachi, Ltd., 141 Group companies, and the Hitachi Global Foundation.
Outside Japan: 196 Group companies.

2.9 %Introduction

Contents

Management Approach
Community Involvement and Development

Classification According to LBG Guidelines

Activities

Performance Data

Promoting Sustainable Community Involvement and Development

The Hitachi High-Tech Group is developing its STEM educa-

We conduct surveys of social contribution activities across alltion support activities globally. In North America, Hitachi Higheight business segments by applying three categories of moti-

Technologies America, through its STEM Education Outreachvation based on the LBG* measurement framework, namely,

Program, contributes to enhancing students’ interest in sci-charitable gifts, community investment, and commercial initia-

ence by lending tabletop microscopes to regional schools,

tives in the community.

colleges, teacher training conferences, science museums, and1

Hitachi continues to focus on ways to strategically align its

other institutions and organizations involved in science educa-social contribution activities with business operations, withtion. In fiscal 2017, more than 100 programs were carried out

efforts toward this end including continued charitable activities

in ten states. Programs using tabletop microscopes wereand increased community investment across the Hitachi Group.

also independently planned and put in motion by local

Russian junior high school students using microscopes provided
through our STEM activities.

Social Contribution Activities

Hitachi High-Tech Group employees in China, South Korea,
Ratio of Social Contribution Activities Based on LBG Guidelines

Singapore, and these activities are now expanding to(monetary basis)

Ukraine and Russia.
FY 2014

FY 2015

FY 2016

FY 2017

Charitable gifts

80%

80%

75%

71%

Community investment

18%

16%

20%

23%

Commercial initiatives in the community

2%

4%

5%

6%

*1 LBG (London Benchmarking Group): An internationally recognized, global network ofaround 180 companies that provides a framework for measuring corporate community
investment. Around 1,000 companies worldwide use the LBG model.

LBG

The Hitachi Global Foundation

Hitachi India decided to carry out the setting up of Atal

The Hitachi Global Foundation, a corporate foundation funded

Tinkering Lab (ATL), a Government of India initiative, in

by Hitachi, is engaged in non-profit activities in three areas:

schools, to implement and promote access to world-classpromotion of academic research, science, and technology;

STEM models and real-life problem-solving projects and incul-

human development; and support for local communities.

cate familiarity with technology among students. The education

Promotion of Academic Research, Science, and Technol-

program named by Hitachi India “UJJAWAL MIRAI (Brightogy: The Foundation awards Kurata Grants to support

Future)” fosters scientific thinking, problem-solving skills, andresearch in Japan. The Kurata Grants system was originally

entrepreneurial mindset among secondary school students, in

proposed in 1967 by Chikara Kurata, the second president ofassociation with NGOs contributing to the promotion of STEM

Hitachi, Ltd., who hoped to encourage the development ofAdvancing STEM Education as One Hitachi

in India. In fiscal 2017, Hitachi India collaborated with thescience and technology within the country. In fiscal 2017, theThe Hitachi Group and the Hitachi Global Foundation carry out

Indian Government and Kendra Vidyalaya schools (three

Foundation awarded 32 grants to research seeking solutions

activities related to science, technology, engineering, and math-schools) in Delhi through NGOs to provide access to the STEM

to social challenges in the three areas of energy/environment,

ematics (STEM) education in order to develop a new generation

program to more than 2,000 young students representing theurban development/transportation, and health/medical care.

of human capital capable of addressing social challenges.

6th to 12th grades. Through March 2019, an estimated

The Hitachi Scholarship was established in 1984 and has

In Japan, we held the Hitachi Science Seminar with the

1,000 additional students will continue to receive hands-on

since served to support the development of science and tech-cooperation of our Group companies, dispatch researchers totraining in the areas of design thinking and usage of

nology in Southeast Asia. In fiscal 2017, the scholarship“Super Science High (SSH) schools” as scientific technologicalcomputational techniques.

system was thoroughly reviewed and restarted as theadvisors, and support science education through volunteer
employee activity in fiscal 2017.

Working as one Hitachi, we will continue to promote
STEM education.

Research Support Program. This new program aims to support scientific and technological research in the same threeareas as the Kurata Grants system. Applications are now being

Hitachi Sustainability Repor t 201889

Contents

Introduction

Management Approach
Community Involvement and Development

accepted from doctoral degree holders at 15 colleges anduniversities in 6 Southeast Asian countries.
Human Development: Hitachi has developed a unique,

Hitachi will continue developing non-profit projects that
contribute to resolving social challenges in response to therequirements of the times.

project-based quest-style educational program called the
Hitachi Future Innovator Program. In fiscal 2017, the program

The Hitachi Global Foundation

was trialed at two elementary schools in Japan: an elementary
school attached to Faculty of Education, Wakayama University,
in Wakayama Prefecture; and Midorino Elementary School in
Nakano City, Tokyo. Designed to foster a new generation of
STEM professionals capable of creating innovation, the program also featured Hitachi Group employees participating as
corporate lecturers. Hitachi also held an education forum
attended by a total of over 130 stakeholders from within andoutside the Hitachi Group to broaden understanding of the
program’s educational merit.
Support for Local Communities: The Foundation publishedthe second issue of its web magazine Mirai (“Future”). The
issue’s theme is the dark side of the parent-child relationship,
and it features articles written by experts in medicine,
psychology, sociology, and criminology as well as interviews
with journalists delving into the problems that exist within theparent-child relationship in modern society.
Fiscal 2017 marks the 50th anniversary of the Foundation’s
activities. This landmark was commemorated by a symposium
entitled “Investment in Children Creates the Future: Educational
Investment and Social Return,” with the aim of reviewing, in amodern context, the themes of early childhood education andhealthy juvenile development pursued by the Odaira Memorial
Hitachi Educational Foundation and the Hitachi Mirai Foundation(forerunners of the Hitachi Global Foundation). The symposium
also addressed the pressing social issues of child poverty
and inequality.

Hitachi Sustainability Repor t 201890

Activities

Performance Data

Promoting Sustainable Community Involvement and Development

Contents

Introduction

Management Approach

Activities

Performance Data

Environment

Hitachi’s Aims: Achieving a Low-Carbon Society, a Resource Efficient Society,and a Harmonized Society with Nature
The world’s population, which was 7.6 billion in 2017, ischallenge for society, based on its corporate mission ofprojected to grow to 9.8 billion by 2050 and to 11.2 billion

contributing to society through the development of superior,by 2100.* Global GDP is also continuing to expand, aggra-

original technology and products.

1

vating a host of environmental problems, including climatechange caused by higher CO2 emissions from fossil fuel*1 A ccording to World Population Prospects: The 2017 Revision, published by theUnited Nations.

consumption, the depletion of resources due to increased
demand, and ecosystem destruction. Global-scale efforts

Key SDGs

are being made to develop approaches that lighten theburden on the environment so that a prosperous planet canbe passed on to future generations.

Environment

Hitachi strives to achieve a more sustainable society byaddressing environmental problems, which pose a major

Hitachi and Society
Our Impact on Society

Our Performance

GHG emissions throughout value chain

Reduced emissions from products/services

121.8333*1 CO 2e: CO 2 equivalent.

Hitachi Sustainability Repor t 201891

Mt-CO2e*1% (base: FY 2010)

Contents

Introduction

Management Approach
Environment

Activities

Performance Data

Advancing Our Environmental Vision and Long-Term Environmental Targets

Advancing Our Environmental Vision and Long-Term Environmental Targets
Hitachi’s Approach

The Environmental Vision and Hitachi
Environmental Innovation 2050

Hitachi faces a broad range of environmental challenges regarding its products and services, such as

As climate change, resource depletion, ecosystem destruction,

reducing carbon emissions, improving resource effi-

and other environmental issues grow more serious, companies

ciency, and minimizing impact on natural capital

face increasing demands and expectations to reduce the envi-

across the value chain. At the same time, given theronmental burden of their business activities.

expectations of society, achieving innovations that

The Fifth Assessment Report of the Intergovernmental Panel

help resolve environmental issues presents major

on Climate Change (IPCC) concluded that limiting global

business opportunities.

warming “below 2°C relative to pre-industrial levels” would

Guided by an Environmental Vision defining therequire “40 to 70% global anthropogenic GHG emissions

goals of environmental management from a broader

reductions by 2050 compared to 2010.” The Paris Agreement,

perspective, we announced in September 2016 a set

which came into force in 2016, sets ambitious targets, includingof long-term environmental targets called Hitachi

a global long-term target of keeping global warming to below

Environmental Innovation 2050 to achieve a low-

2°C and efforts to limit the increase to 1.5°C. Environmental

carbon society, a resource efficient society, and atargets have also been set in the Sustainable Development

harmonized society with nature. We are promoting

Goals (SDGs)—the centerpiece of the 2030 Agenda forGroup-wide environmental activities in line with our

Sustainable Development, adopted by the United Nations inEnvironmental Action Plan for 2018 that lays out

2015—whose Goal 13 reads: “Take urgent action to combat

specific activity areas and improvement targets overclimate change and its impacts.”

a three-year period.
We will promote efforts to achieve the targets set

In the light of these global demands and our own management policy, we created an Environmental Vision clearly stating

forth in Hitachi Environmental Innovation 2050 and

our aim to both improve the quality of life and achieve a

the Environmental Action Plan for 2018 in order tosustainable society from a long-term perspective, as well as

conduct environmental management in a manner thatto achieve a low-carbon society, a resource efficient society,meets the expectations of society.

and a harmonized society with nature by promoting environmental management. Looking toward 2030 and 2050,
we also established long-term environmental targets called
Hitachi Environmental Innovation 2050 that demonstrates our
resolve to achieve the kinds of societies outlined in our

Hitachi Sustainability Repor t 2018

The aim of Hitachi’s environmental management

92

Hitachi’s Environmental Vision

Introduction

Contents

Management Approach
Environment

Environmental Vision.
Our environmental strategy, centered on the Environmental

Activities

Performance Data

Advancing Our Environmental Vision and Long-Term Environmental Targets

Responding to Climate Change Through Growth inspaces, we are striving to make buildings more efficient through“Low-Carbon Businesses”

total solutions and reduce the energy requirements of factories

Vision and our long-term environmental targets, is deliberated

As part of its efforts to address challenges posed by climate

via smart manufacturing. Through the development of moreby the Executive Sustainability Committee, chaired by President

change, Hitachi is combining the strengths of its business units

efficient railway systems and the promotion of increased adop-

and CEO Toshiaki Higashihara, and advanced by the Hitachi

and Group companies through digital solutions built on thetion of automotive electric powertrains, we are providing highlyGroup as a whole.

Lumada platform, and expanding its low-carbon businesses

efficient transportation methods in order to achieve low-carbon

through co-creation with customers and partners.

mobility. Our amorphous transformers and other low-carbon

To help achieve low-carbon energy supplies, we offer windAchieving a Low-Carbon Society
Efforts to Achieve a Low-Carbon Society

products contribute to increasing efficiency and reducing emis-and other non-fossil energy systems. We also promotesions throughout society. In these and many other ways, we are

improvements in power distribution efficiency via the use ofhelping to realize a low-carbon society and promoting

smart grids and related technology. To realize low-carbon

measures to address climate change.

Hitachi has established a goal of reducing CO2 emissions
throughout its value chain by 50% by fiscal 2030 and 80% by
fiscal 2050 (compared to fiscal 2010 levels) to help achieve

Low-Carbon Businesses: A Hitachi Focus

the drop in global anthropogenic GHG emissions deemed
Achieving Low-Carbon
Energy Supplies

necessary in the IPCC’s Fifth Assessment Report.
Because a significant share of our value chain CO2 emissions comes from the use of our products and services by
our customers, our efforts to reduce such emissions focus on
enhancing the efficiency of our products, delivering supplies
of low-carbon energy, and developing innovative technologies
and solutions. We will also reduce emissions during production

Achieving Low-Carbon Spaces

Offices
Total solutions for buildings• Elevators• Escalators

Non-fossil energy systems
Wind energy systems•

Smart grids
Distributed power supply
solutions• Energy management•

Railways
Operation management/railway
information systems• Rolling stock

Industrial equipment
Amorphous transformers• Air compressors• Motors••

Factories
Smart manufacturing•

Automobiles
Electric powertrain systems

High functional materials &components• Amorphous metal materials fortransformers• Rare earth magnets

Smart life & ecofriendly systems
Smart life business• Home appliances(Storage batteries, motors,•

advancing energy-saving measures, and expanding our use

Low-Carbon Products••

by enhancing the efficiency of our factories and offices,Achieving Low-Carbon Mobility•

inverters, etc.)
Automobile componentsof renewable energy.
Ratio of CO2 Emissions at Each Stage of Hitachi Value Chain
Production
Transportation

Disposal/recycling

Wind energy systems.

Elevators.

Rolling stock.

Digital solutions built on Lumada platform

Use
Procurement of raw materials/parts

Hitachi Sustainability Repor t 2018

Escalators.

93

Amorphous transformers.

Introduction

Contents

Management Approach
Environment

Reducing CO2 Emissions at Factories and Offices

Activities

Performance Data

Advancing Our Environmental Vision and Long-Term Environmental Targets

Achieving a Resource Efficient Society

initiatives to meet those targets. As a further step, we haveestablished a long-term environmental target for fiscal 2050 toAnother way that we are reducing CO2 emissions is to promotethoroughgoing energy savings at our factories and offices. We

Efforts to Achieve a Resource Efficient Society

improve water use per unit by 50% compared to fiscal 2010

are applying IoT technology to enhance production efficiency

Together with our customers and society, Hitachi will work

levels. Hitachi uses water in such production processes as

at our factories, installing smart meters to reduce energy use

through its business operations to help build a society thatcooling and cleaning, as well as for air conditioning. We will

during production. We are advancing the effective utilization ofuses water and other resources efficiently. We have set a target

make a Group-wide effort to reduce water usage by promoting

renewable energy and introducing renewable energy credits.*1

of improving the usage efficiency of water and other resources

the use of recycled water and rainwater and strengthening

We are adopting internal carbon pricing* to raise the priority ofby 50% compared to fiscal 2010 levels by fiscal 2050. We willmeasures against water leakage.

low-carbon investment and developing self-consumption solar

create higher economic value using less water and otherpower schemes to further encourage the spread of renewable

resources and pursue production activities with a low environ-

we are investigating water risks at approximately 200 Hitachienergy. Through these activities, by fiscal 2030 we aim to reduce

mental burden.

business sites around the world based on publicly available

2

water stress maps. In fiscal 2017, we performed water risk

CO2 emissions at factories and offices by 40% to 50% fromfiscal 2010 levels.

Initiatives to Achieve a Resource Efficient Society*1 Credits assigned to energy certified as having been produced from renewable sources.
Purchasers of such credits can offset their conventional energy use instead of implementing
their own reduction measures.
*2 Internal prices for carbon emissions and reductions that companies set voluntarily to guidetheir investment and risk management decisions.

To address water shortages at Hitachi factories and offices,

assessments, calculating water demand and supply per watershed, at 40 business sites in countries with water shortage
concerns. At 5 of those sites, we made efforts to obtain more

Achieving a Resource Efficient Society

detailed information, conducting surveys covering such factors
as topography, geology, land use, and water demand. Goingforward, we will plan and execute additional usage reduction

Low-Carbon Roadmap for Factories and Offices

CO2 reduction rate (%)

0 nhancing productivity
EInstalling high-efficiency
equipment

50

Building a societythat uses water
efficiently

Building a societythat uses resources
efficiently

Enhancing efficiency

Enhancing efficiency

in the use of waterin the use of resourcesRenewable energy credit
2010

2020

2030

2040

2050

Responding toReducing and recycling

water shortages

waste materials

water resources. Hitachi has delivered wastewater recycling
systems and desalination systems for use in different sectors
side Japan. We will further develop our technologies to address
the needs and concerns of our customers in contributing to
improving the water usage environment around the world.

Initiatives to Build a Water Efficient Society

Initiatives to Build a Society that Uses Resource Efficiently

We will build a water efficient society by enhancing the effi-

We will build a society that uses resource efficiently byciency of water usage and responding to water shortages.

enhancing efficiency in the use of resources and promoting

With regard to the former, we began setting reduction targets

the reduction and recycling of waste materials.

for water usage in fiscal 2006 and have been undertaking

Hitachi Sustainability Repor t 2018

The shortage of water is also a global social concern, andwe will contribute to its resolution through the generation ofand to meet a variety of needs for customers both in and out-

Renewable energy

80

measures based on the findings of the water risk assessments.

94

With regard to the former, while we have long been advanc-Contents

Introduction

Management Approach
Environment

Activities

Performance Data

Advancing Our Environmental Vision and Long-Term Environmental Targets

ing efforts to reduce the generation of waste and valuables,

natural capital with the aim of minimizing any negative impact

consumption, and urban air pollution. To reduce these andwe have established a long-term target for fiscal 2050 toby 2050.

other forms of negative impact, we are advancing measures toimprove waste generation per unit by 50% compared to fiscal

We perceive our negative impact activities as including theachieve a low-carbon society and a resource efficient society,2010 levels. We will create products that use less resources

emission of greenhouse gases and chemical substances into

as outlined in our long-term environmental targets, and suchand last longer to make the most of finite natural resources.

the atmosphere and the generation of waste materials.

other steps as the management and reduction of chemical

We make a positive impact, meanwhile, by providing products

substances.

As for waste reduction and recycling, we will seek to reduce
waste materials generated during production through suchand services that contribute to ecosystem preservation and by

To maximize our positive impact, meanwhile, we need totreatment processes as dehydration, desiccation, oil separation,

undertaking social contribution activities to protect the environ-

undertake social contribution activities toward forest conser-

crushing, and sorting. As for reusable waste and scrap, we will

ment through the preservation of biodiversity and ecosystems.

vation and to provide products and services that contribute

use them as raw materials in Hitachi products through closed-

By classifying Hitachi’s activities across the value chain into

to ecosystem preservation, such as water treatment plants.

loop recycling. Active efforts will also be made, where possible,

those with positive and negative impact and then quantifying

We will advance these measures and also discuss ways toto reuse waste materials as fuel.

such impact, we are advancing initiatives to reduce our negative

quantify the effect of such activities. We have set targets for

impact and maximize our positive impact.

measures that are difficult to quantify but are nonethelessIn our business operations, we will advance the developmentof new technologies to further promote the efficient use ofresources, including through refurbishing (servicing end-of-use

important, such as education regarding ecosystem preservation and the protection of rare species, and will make

A Timetable for Minimizing Impact

products to a condition conforming to new-product standards)

Negative impact
Positive ecosystem preservation activities
Positive contributions through products

and remanufacturing (restoring end-of-use products throughdisassembly, washing, component replacement, and other

Negative Impact on Natural Capital (FY 2017)100

work to a condition equivalent to new products). These tech-

Activities to achieve long-termtargets for a harmonized society withnature through the management
and reduction ofchemical substances

nologies and services will be offered broadly to contribute to
Reducing negative impact

Impact (%)

building a resource efficient society.

Activities to achieve
long-term targets

Low-carbon society
Resource efficient society
Harmonized society with nature(management and reduction ofchemical substances)

Achieving a Harmonized Society
with Nature
0

Efforts to Achieve a Harmonized Society
with Nature
To adequately preserve the ecosystem and achieve a harmo-

Minimize
impact on
naturalcapitalIncrease positive impact

2010

2020

Urban air pollution
19%
Positive ecosystempreservation activities
Positive contributions
through products

2030

2040

2050

Initiatives to Minimize Impact on Natural Capital

nized society with nature so that we may continue to enjoy

Hitachi has identified and quantified the negative impact our

nature’s benefits, we have established targets to minimize ourbusiness activities have on natural capital. In fiscal 2017,

impact on natural capital. Specifically, we classify our activities

approximately 40% of such impact related to climate change,

into those that have either a negative or positive impact on

and 20%, respectively, concerned waste materials, resource

Hitachi Sustainability Repor t 2018

ongoing efforts in these areas as well.

95

Activities to achieve
long-term targets
for a resource
efficient society

Ecotoxicity 5%
Other 3%

Climatechange37%
Resource
consumption
Waste
17%
materials
19%

Activities toachieve long-termtargets for a
low-carbon society

Note: Calculated using version 2 of the Life-cycle Impact Assessment Method based on
Endpoint Modeling (LIME2).

Scope of Negative Impact Calculations

Contents

Introduction

Management Approach
Environment

Activities

Performance DataManaging Environmental Risks and Opportunities

Managing Environmental Risks and Opportunities
Hitachi’s Approach

Environment-Related Risks
and Opportunities

as a major opportunity, and are discussing how we can further
expand it.

Such phenomena as abnormal weather conditions
resource depletion, and loss of biodiversity are pro-Engaging with Climate-Related Risks andOpportunities

Policy and Legal

jected to grow more serious in the future. To respond

Hitachi sees climate change risks and opportunities as important

Carbon taxes, energy consumption taxes, emissions trading

to these critical developments in human history, soci-management issues. One governance mechanism that we

systems, and other measures may be newly introduced or

ety must transform itself by strengthening regulatory

established to address such risks and opportunities is thefurther strengthened, representing risks impacting directly onmechanisms that contribute to a low-carbon society,Executive Sustainability Committee, chaired by the Hitachi

management costs in addition to those incurred in complying

including the Paris Agreement. Businesses, too, must

president and CEO, with other top executives serving as com-with the environmental regulations and policies of countries

monitor and respond to these changes, accurately

mittee members. The committee develops business strategies

and regions around the world. The direct and increased burden

ascertaining the risks they face and the opportunities

to minimize risks and maximize opportunities from climate

on management costs will become a disincentive for invest-that arise for the utilization of managementchange in line with relevant global regulations and policy trends.

ment in R&D toward reducing environmental burdens and foraround the world associated with climate change,

resources. In 2017, the Task Force on Climate-

Risks in Transitioning to a Low-Carbon Economy

In 2017, the Task Force on Climate-related Financial

low-carbonization and weaken the cost competitiveness ofrelated Financial Disclosures (TCFD) published its

Disclosures (TCFD), established by the Financial Stability

companies. Regulations imposed on businesses with a rela-

recommendations, and investors are more actively

Board in response to a request from the G20 Meeting of

tively large environmental burden may present a large risk toseeking corporate disclosures of climate-related

Finance Ministers and Central Bank Governors, published its

business continuity.

risks and opportunities.

recommendations seeking corporate disclosures of information

Hitachi focuses on two particular environment-

To mitigate such risks, we have been reducing or minimizing

about climate-related risks and opportunities. In June 2018,

cost burdens by enhancing production efficiency and introducing

related risks and opportunities—climate change andHitachi announced its endorsement of the TCFD and is preparing

energy-saving measures. In fiscal 2017, our energy-saving

water resources—and not only promotes initiatives to

its information disclosures based on its recommendations.

investments totaled approximately 5.4 billion yen. Should

address them in a steadfast manner but also actively

Hitachi has long disclosed its environmental risks andour products fail to meet energy-efficiency standards andadvances information disclosure.

opportunities in the Hitachi Sustainability Report. However,regulations, we will risk losing sales opportunities. In addition toin accordance with the categories outlined in the new global

strictly complying with existing standards and regulations, we

TCFD recommendations, Hitachi is reviewing its risks in two

will always endeavor to keep abreast of trends in laws andcategories, namely, risks related to the transition to a low-carbon

regulations and participate in the planning of new policies.

economy and those related to the physical impact of climate

Hitachi Sustainability Repor t 2018change. In terms of opportunities, we are positioning ourTechnology

contributions to the creation of a low-carbon society throughTo reduce CO2 emissions caused by the use of our products

enhanced energy-saving features of our products and services

and services by our customers, which make up a significant

96

Contents

Introduction

Management Approach
Environment

Activities

Performance DataManaging Environmental Risks and Opportunities

share of emissions in the value chain, we need new technology

to renew facilities and equipment for higher efficiency; improve-to achieve further energy-saving in our products and services.

ments in production efficiency through digitalization; the promo-

Resource Efficiency

We risk losing sales opportunities if investments to reducetion of environmentally conscious design during the design and

Hitachi is promoting the efficient use of resources by reducing

environmental burden, such as in low-carbon technologies,

development stage; and the provision of products and services

waste, recycling, and undertaking other measures. Also, for

do not lead to expected results, and we are not able to meetwith high energy-saving performance.

the efficient and sustainable use of natural resources, we arecustomer demands or market needs.
Therefore, by applying Environmentally Conscious Design

promoting efforts to minimize the amount of natural resources
Achieving a Low-Carbon Society

we use through improvements in production processes andAssessments in the design and development stages of Hitachi
products and services, we assess various environmental

Climate-Related Opportunities

resource-conserving designs. We are also promoting theRisks Related to the Physical Impacts of Climate Change

efficient use of water resources by using recycled water

aspects at each stage of the product life cycle and strive to

Acute and Chronic

and rainwater.

minimize environmental impact. Hitachi is also endeavoring to

Climate-related physical risks include acute risks, such as

develop technology that takes into consideration environmental

increased severity of typhoons and floods, and chronic risks,

of water treatment technologies, including high-quality water

issues faced by customers and market needs. In addition,

including climate patterns that may cause the sea level to rise

generation, water purification, water supply, and sewage, toby combining Hitachi’s longstanding expertise in a wide range

and chronic heat waves. Hitachi has a worldwide businessprovide solutions globally for the expanded circulative use ofof social infrastructure technologies with operational technol-

presence and believes that disasters due to weather phenom-

water. For regions experiencing chronic water shortages, weogy (OT) and IT, we can provide optimal solutions that lead toena attributed to climate change, such as increasingly bigger

are promoting the provision of seawater desalination systems.

the creation of new business opportunities.

typhoons and torrential rainfall, pose a risk to business continuity.
In order to minimize these risks, we take into consideration

Achieving a Low-Carbon Society
Developing Environmentally Conscious Products and Services

such factors as location and the possibility of damage from

As for our business operations, we are developing a range

Achieving a Resource Efficient Society
Enhancing Efficiency of Water Usage

flooding when setting up a new plant or deciding on the
deployment of equipment. We also use the Hitachi Group

Market and Reputation

Guidelines for Developing Business Continuity Plans that out-

Energy Sourceline measures to be taken in times of disaster to mitigate risks.

Hitachi proactively uses renewable energy for our factories
and offices. In our factories, we are able to efficiently use the

A company’s approach to climate change issues influences
stakeholders’ evaluations, and changes to market values,
such as placing great importance on climate change counter-

Achieving a Resource Efficient Society
Stable Provision of Products and Services

electricity supplied from photovoltaic power generation facilities,
despite fluctuations in the amount of power generated, by

measures, affects customers’ choices of products and services.

monitoring and controlling energy usage on production lines

This may pose a risk to business continuity.

and by using storage batteries. Also, we are promoting the
adoption of renewable energy credits and the expanded

Hitachi upholds long-term environmental targets of reducing
CO2 emissions throughout our value chain by 50% in fiscal 2030

deployment of internal carbon pricing and the self-consumption

and 80% in fiscal 2050 compared to fiscal 2010 levels. We aim

solar power generation. In our offices, too, we are enhancing

to increase the likelihood of our products and services being

the efficiency of energy-using equipment, such as lighting

selected by our customers through energy-saving investments

and air conditioning, as well as visualizing energy usage andHitachi Sustainability Repor t 201897

Contents

Introduction

Management Approach
Environment

Activities

Performance DataManaging Environmental Risks and Opportunities

optimizing the amount of energy used in the building as a

stakeholders’ evaluations and affects customers’ choice ofwhole through Building and Energy Management Systems

products and services. Hitachi not only meets the required

Engaging with Water-Related Risks
and Opportunities(BEMS).*1 Through activities like these we are reducing ourstandards and regulations for the energy efficiency of its

Hitachi is responding to water-related risks and opportunities

operating costs and striving for more efficient production.

products, but also develops and provides energy-savingwith our customers and society through our business opera-

products and services that go beyond the prescribed standards,

tions by establishing a long-term environmental target of build-

thereby increasing opportunities to be chosen by customers.

ing a water- and resource-efficient society by 2050.

In our business operations, we create new business opportunities, such as by actively providing renewable energy fromwind power generation systems.

Achieving a Low-Carbon Society

Regulatory Risks and Opportunities*1 BEMS aim to optimize the internal environment of a building and its energy efficiency.

We are subject to regulations stipulated by different countries
Achieving a Low-Carbon Society
Climate Change Measures in Factories and Offices

Products, Services, and Markets

Resilienceand regions concerning water use, such as a tightening ofWe have devised a plan for vital functions to be maintained

quality standards for both water supply and drainage and athrough the use of renewable energy and storage batteries

jump in prices. These regulations pose a risk for our business

if a power outage occurs in any of Hitachi’s main factories.

activities, but they can also be an opportunity for our

In our business operations, we are providing disaster-water-related business.

Products and services featuring innovative, energy-saving

prevention solutions to help various countries and regions

Hitachi places the water-related business as a coretechnology that can contribute to the mitigation and adaptation

deal with the rise in natural disasters. Hitachi uses sophisti-

undertaking, having established the Water Business Unit toof climate change are viewed as having the potential tocated IT developed over the years to analyze and evaluate

provide machinery, electrical facilities, and services for water

increase market value and revenue. Many of our products use

data pertaining to people’s daily lives, meteorological andinfrastructure. To date, we have installed approximately 700

energy, so we must enhance the efficiency of our products

other natural trends, and the operation of social infrastructure,

water purification plants and 900 sewage treatment plants inand services and facilitate low carbonization in order toin promoting the provision of solutions conducive to responding

Japan, as well as over 200 plants in some 40 countries andcontribute to resolving the issue of climate change. Hitachi has

to climate change.

regions around the world. We have developed technologies

established long-term environmental targets for reducing thefor the water treatment facilities and services we offer to ourCO2 emissions throughout our value chain. To this end, we will

customers, and we are now advancing water environment

continue to provide products and services that contribute tosolutions to comprehensively resolve water-related challenges

the creation of a low-carbon society through our Social

with data processing technologies that combine our operational

Innovation Business. We are developing ultra-efficient products

technology (OT) and IT. We will help customers use water more

and low-carbon energy, as well as encouraging their use.

efficiently to lessen the impact of water-related regulations,

We are also promoting the development of innovative devices

such as restrictions on water intake. We will also contributeand materials that contribute to reducing the environmental

to formulating appropriate rules and guidelines by proposing

burden. In fiscal 2017, Hitachi’s total investment in R&D wasinnovative water treatment control technologies.
At approximately 200 Hitachi business sites around the332.9 billion yen, including sizable spending to reduce theworld, we are promoting appropriate water usage for eachenvironmental burden.

locale by investigating and analyzing water risks and usage

A company’s approach to climate change issues influences

Hitachi Sustainability Repor t 201898

Contents

Introduction

Management Approach
Environment

Activities
Managing Environmental Risks and Opportunities

status in cooperation with national and regional governments

We are also focusing on physical water risks at our own

as well as water supply and sewage companies to be prepared

plants. A water shortage is usually regarded as the main physi-

for any regulatory risks that may arise in the future.

cal risk for ordinary plants. However, since Hitachi’s businesssites are concentrated in areas near rivers or with a rich source

Risks and Opportunities Presented by Physical Factorsof underground water, we consider this physical risk to be

Water-related risks and opportunities presented by physicalminimal. Even so, we will conduct regular risk assessments infactors include shortages, especially of freshwater, and flood

anticipation of future water shortage caused by such factors asdamage. Just as there are countries and regions around theeconomic development and population increases. We haveworld that are endowed with rich water resources, there aretaken appropriate and necessary measures to secure dedi-

also many places where people do not have enough water forcated waterways in case there are water-access concerns. We

their everyday lives and for agriculture. Hitachi believes that

also deem flood damage as a physical risk. At times of newefforts to resolve these water-related challenges represent

plant constructions, therefore, we keep the potential damage

business opportunities. We have been expanding our waterin mind when choosing sites. When we judge counter-

recycling and seawater desalination business in low rainfall

measures to be required, we install bulkhead partitions or

areas facing serious water shortages and islands with noplace essential amenities on the second floor—including at

freshwater resources like rivers.

existing plants. We check upstream water levels every

In the water recycling business, higher demand for water

month and set up flood task forces when levels reach aresulting from increased production is met through the reuse of

dangerous level, sharing such information with our suppliers.

wastewater to reduce underground water usage and optimize

We also diversify risks by procuring components fromsupply to and drainage from plants.

multiple suppliers.

In our desalination business, a range of technologies arebeing developed to meet our customers’ needs and help

We will continue to promote necessary measures to minimize water-related physical risks.

resolve their challenges. For example, our “E-Rex Water” RO(reverse osmosis) desalination system features a vastly
improved freshwater recovery rate, and our “RemixWater”
water production system is a unique and effective solution thatcombines desalination and sewage treatment. These systems
are custom-made for various purposes and have been installedat more than 100 locations around the world, contributing to
the solution of water shortage problems.

Hitachi Sustainability Repor t 201899

Performance Data

Contents

Introduction

Management Approach
Environment

Activities

Performance Data

Continuous Enhancement of Environmental GovernanceContinuous Enhancement of Environmental Governance
Hitachi’s Approachactivities, enabling us to reduce our environmental
burden across the value chain.

Building Environmental Management Systems
We have established environmental management criteria to

Establishing and continuously improving systems toensure efficient management of each business site’s environ-promote environmental management are vital to fully

mental load. There are approximately 200 business sites that

reducing the environmental burden of the Hitachi Group

meet these criteria, and these, together with the Sustainability

toward the goal of achieving our Environmental Vision.

Environmental Management

We are enhancing environmental governance

Promotion Division, have developed and implemented the
Hitachi Group Environmental Promotion Organization EMS

through a global environmental management

Environmental Management Framework(environmental management system) to promote the consistentsystem—covering Hitachi, Ltd. and 879 consolidated

We are enhancing environmental governance through our global

implementation of environmental policies. At the same time,

subsidiaries (a total of 880 companies)—under theenvironmental management system, supporting environmental

every business site meeting the aforementioned criteria for

direction of the Executive Sustainability Committee,

decision making and implementation at Hitachi, Ltd. and 879

environmental management continues to maintain ISO 14001

chaired by the president and CEO of Hitachi, Ltd.

consolidated subsidiaries (a total of 880 companies).

certification. Certification is also being pursued at business

Based on a number of certifications and guidelines,

The Sustainability Promotion Division is responsible for devel-sites that do not yet meet the criteria. In conjunction with theincluding ISO 14001, we have developed a Group-

oping Group-wide environmental policies. Important items related

issuance of ISO 14001:2015, business sites that acquired

wide environmental management system that allows

to environmental initiatives are deliberated by the Executive

certification prior to this version have been working to alignus to gauge our environmental burden in a uniform

Sustainability Committee, established in 2017; it is chaired bytheir environmental management systems with the 2015 update.

manner despite the broad range of our businessthe president and CEO of Hitachi, Ltd., and its members

As of March 2018, approximately 82% of business sites haveactivities and to steadily implement a PDCA cycle toinclude top Hitachi executives. The environmental strategy

completed this task. The transition will be steadily promoted

reduce that burden. We apply Environmentally

officers from business units (BUs) and major Group companies

with an eye to meeting the 2018 deadline.

Conscious Design Assessments during the design

ensure that the Hitachi Group Environmental Action Plan approved

and development stages of the products and services

by the executive officer in charge of environmental concerns is

we offer in order to reduce our environmental burden

implemented throughout the Group. Eco-Management Meetings,

across the value chain.

reorganized in 2017, promote long-term targets, set goals for

We will make a Group-wide effort to achieve thethe Environmental Action Plan, develop ways to achieve them,goals of Hitachi Environmental Innovation 2050 andand endorse initiatives to be carried out by the Group as a whole.

the Environmental Action Plan for 2018 through a

Outside Japan, we assign regional specialists to report on the

global environmental management system and a

progress of the Environmental Action Plan and share information

framework for keeping track of the environmental

on the latest environmental regulations while exchanging views

performance of the broad range of our businesson local environmental issues during meetings held once or
twice a year in each region.

Hitachi Sustainability Repor t 2018100

Introduction

Contents

Management Approach

Activities

Environment

Continuous Enhancement of Environmental GovernanceAt the approximately 200 Hitachi business sites that meet

Status of ISO 14001 Certifications(Hitachi Group, as of March 31, 2018)
Total
248

Number of certified companies*1*1 Including companies with at least one certified business site.

Performance Data

Environmental Activity Evaluation System

the environmental management criteria, we aggregate andWe use our own evaluation system, GREEN 21, to improve theanalyze data on such key items as energy, waste materials,

level and quality of our environmental activities. It divides theand water on a monthly basis so that the environmental

targets of the Environmental Action Plan into six categories

management levels can be further increased.

and evaluates achievements. A perfect score for any category
is 100 green points (GPs), and each item is assessed on ascale from 1 to 5.

Environmental Data Collection System
Americas20Europe14

Business site

China
56
Rest ofAsia
51

Business site

Business site

Approx. 1,200 sites(in over 60 countries)

hensive evaluation was 369 GPs against the target of 360 GPs.
Monitor and register (multiple languages)

List of ISO 14001-Certified Companies

For effective environmental management, we collect data on

stimulate environmental action have been taken into consideration as an additional scoring criterion. Our fiscal 2017 compre-

Japan
107

Monitoring Environmental Performance Data

Starting in fiscal 2016, activities reflecting an eagerness to

For fiscal 2018, we will continue to promote environmental
activities to achieve the target of 480 GPs.
Key Indicators

Environmental Data
Collection System(Eco-DS)

Help desk(multiple
languages)

the environmental performance of business operations using

Green Point (GP) Average: FY 2017 Targets and Results(Hitachi Group)
FY 2017 target: 360 GPs
FY 2017 result: 369 GPs

the Environmental Data Collection System. The system supports
Aggregate and analyze

multiple languages and enables some 1,200 Hitachi business

Management
73 GPs100

sites in over 60 countries to monitor and register environmentalload data on items such as energy use, water use, and waste
generation, as well as whether an item falls under relevant
environmental laws and regulations. We also set up an international help desk to promote understanding of environmental

Sustainability Promotion
Division

Administrative division ofbusiness unit
and Group company

Collaboration with
Stakeholders
58 GPs50

Products andServices
64 GPs0

performance at each business site.
The collected data is aggregated and analyzed by the
Sustainability Promotion Division, as well as by the adminis-

Ecosystem
Preservation
57 GPstrative division of each business unit and Group company,

Global Warming
Prevention
53 GPsand is used to identify environmental management issues,
share instructive examples within the Group, and improve

Resource Recycling and Managementof Chemical Substances
64 GPsenvironmental practices.

Hitachi Sustainability Repor t 2018

101

Contents

Introduction

Management Approach
Environment

Activities

Performance Data

Continuous Enhancement of Environmental Governance

Developing Environmentally Conscious Products
and Services

awareness of employees and promote environmentally conscious

We conduct Environmentally Conscious Design Assessments

Based on certification criteria that were developed for ourEnvironmental Compliancebusiness activities.

Environmental Compliance Response

for all products and services involving a design process to

manufacturing (factory) and nonmanufacturing (office) divisions

Hitachi considers the environmental burden of all businessensure environmentally conscious design and development.

globally, we certify existing factories that actively engage inactivities and sets voluntary management criteria that are more

Thirty environment-related areas are assessed for their impact

improvements to achieve efficient production and new offices

stringent than regulatory requirements. We regularly monitor

on climate change, resource depletion, and environmental

that have been environmentally designed from the start. Superiorwater quality, noise levels, and other conditions at eachpollution (ecosystem degradation) at each stage of the productpolicies from certified factories and offices are shared with thebusiness site and work to minimize environmental risks.

life cycle with a view to reducing the environmental burden. To

entire Group, with other locations encouraged to implement

In addition, we share information on environmental laws andmeet the IEC 62430*1 criteria for environmentally conscious

them as well. To maintain and raise the level of environmental

regulations, as well as examples of infringements, throughout

design, in addition to implementing these assessments, we areawareness through Eco-Factories & Offices Select, certified

the Group, and in the event we find a violation, we take every

integrating environmentally conscious design and development

factories and offices are re-evaluated every fiscal year to confirm

possible step to prevent a recurrence. We also conduct

into our existing management system, including by meetingthat their performance continues to meet requirements. In fiscal

multifaceted internal environmental audits to ensure fullenvironmental regulatory requirements and ascertaining the2017, 6 facilities were newly certified and 67 facilities had theircompliance with environmental requirements throughout theenvironment-related needs of our stakeholders. We conduct

certifications renewed. The total number of certified factories

Group and to strive to attain even higher standards.

Life Cycle Assessments (LCAs) focusing on our main, priority

and offices was 73.

Actions and Achievements

products to quantitatively evaluate their burden on the global
environment in such areas as the consumption of mineral

Eco-Factories & Offices Select Certification Criteria

resources, fossil fuels, and water resources, as well as theirrequirements globally, each business unit and Group company,

impact on climate change and air pollution. The results of such

A factory or office that has met atleast one of the following criteria

LCAs are disclosed to our stakeholders and utilized in improving

Eco-Factory SelectEnergy efficiency

the design of next-generation products.

Renewable energy use
High-efficiency lighting*1 The standard developed by the International Electrotechnical Commission concerning
environmentally conscious design for electrical and electronic products.

Creating Eco-Factories & Offices SelectTo reduce the environmental burden of our business activities,
since fiscal 2011 the Sustainability Promotion Division has
implemented an Eco-Factories & Offices Select certification
program for business sites that promote activities demonstrating

Eco-Factories &Offices SelectFacilities that have
met their targets foreach fiscal year
under the GREEN 21
evaluation system

Recycling of waste andother resources
Efficient water recycling
Reductions in chemical substanceemissions
Eco-Office SelectEco-Factories & Offices

High-efficiency lighting
Renewable energy use

Factories and Offices

as well as the Sustainability Promotion Division, conducts
internal environmental audits, in addition to carrying out
internal audits as set forth under ISO 14001. In fiscal 2017,
the Sustainability Promotion Division, together with the Internal
Audit Office, conducted internal audits at 34 business sites
globally. BUs and Group companies conducted their own
audits at 65 overseas business sites in accordance with theirrespective three-year (fiscal 2016 to 2018) internal environmental

Energy savings

audit programs. The business sites identified as needing

Improved office building
environmental performance

improvements were requested to submit action plans andprovided with follow-up and advice until the plans were fully
implemented. In these ways we will comprehensively implement

a high level of environmental consciousness and produce
notable results in that area. This helps raise the environmental

To enhance Group-wide compliance with environmental

and enhance our compliance framework.

Eco-Factories & Offices

In fiscal 2017, we received a worldwide total of 13 notices

Hitachi Sustainability Repor t 2018102

Management Approach
Environment

Activities

concerning water quality, air quality, or waste matter andActions and Achievementscomplaints about noise or odors. Of these, 5 were complaints

At Hitachi, we provide basic environmental managementfrom nearby residents regarding noise, but they were all

courses for employees working in air, water, and waste

promptly addressed.

management, as well as training in recent amendments to

Hitachi continues to implement enhanced environmental

laws and operational procedures. In fiscal 2017, we offered

management in order to prevent repeated or new contamina-

legal compliance education for internal environmental auditors

tion occurrences.

and working-level employees; 123 people from 39 companies

Environmental Education and Training System
TargetAllemployees

Waste
matterComplaints

Other (petition,
notification, etc.)

3

1

0

5

4

China (September 2017), to deepen understanding of
regulatory amendments.
With China’s environmental regulatory requirements growing
more stringent, an environmental management training

As part of our measures to address the pollution of soil andprogram—attended by 44 people from 68 companies—was

groundwater, we are examining the soil and water for any

held in Shanghai, China, in March 2018 to reduce environmental

contamination at business sites where hazardous chemicalrisks and raise the knowledge of working-level employees.

substances have been used. In case contamination is found,

In addition to Hitachi Group training, individual companies

we will conduct cleaning and monitoring activities until

and units provide education tailored to their own businessdecontamination has been completed.

area. For general education, we offer Internet-based e-learning
courses in Japanese, English, and Chinese to familiarize all
employees with our Environmental Vision and long-term envi-

Environmental Education Initiatives

ronmental targets called Hitachi Environmental Innovation 2050.
To date, 143,694 employees worldwide have taken this course.

Promoting Environmental Education
Promoting greater environmental awareness and understanding
among our employees is essential to Hitachi’s efforts to energize
its environmental activities. Toward that end, we are advancing
environmental education. Hitachi Group training is being implemented for all Group employees, from newly hired workers toworking-level employees. They are provided with basic environmental education, as well as courses on environmental risks
and compliance with environment-related laws and regulations.

Hitachi Sustainability Repor t 2018103

Specialized education

Fiscal 2017
cases

Air quality

Beginning

Intermediate

Advanced

Online e-learning: Eco-Mind education(General topics: Global environmental
issues, environmental law, etc.)
Online e-learning: Eco-Mind education(Hitachi Group topics: Environmental
policy, Environmental Action Plan, etc.)

people from 31 companies attended courses in Beijing,

Water
quality

Introductory

Introductory training for new employees

attended courses in Japan (September 2017), and 52
Global Notices and Complaints (Hitachi Group)

Performance Data

Continuous Enhancement of Environmental Governance

General education

Introduction

Contents

Workinglevel
employees

Basic environmental management course
for working-level employees(management of waste; air/water quality;
hazardous materials; development &operation of management systems; etc.)
Education for Eco-Factories
Eco-Product development training
Risk communicator training
ISO 14001 auditor brush-up training

Internal
environmental
auditors

ISO 14001
auditorcertification
training

ISO 14001
senior auditor
certification
training

Introduction

Contents

Management Approach
Environment

Activities

Performance Data

Continuous Enhancement of Environmental Governance

Environmental Load
Data on Environmental Load from Operations (Hitachi Group, FY 2017)
The data below shows the resource inputs and the environmental load for Hitachi Group operations in fiscal 2017.

Products shipped: 2,754 kt

INPUTOUTPUT

Total Input of Resources

Total Energy Input

Total Output (Environmental Load)

Greenhouse Gas Emissions(crude oil equivalent)
Fuel oil 5%

2.35

4,715

Gas 25%

GL

Electricity 64%

Raw Materials Input
Plastics
4%

3,797

Other GHG
emissions 1%

Solid fuel 6%

kt-CO2e*1

Operations

CO2 emissions 99%

Total Volume ofWaste and Valuables

Other materials
7%

1,356

kt

Landfill
16%

kt

Metals 89%

Total Water Input
Groundwater,etc. 36%

38.54

Recycle 78%

Tap water 19%

Water recycling

23.57

million m3

million m3

Underground infiltration,
evaporation, etc.
10%

Total Volume ofWater Effluents Discharged

35.13

Sewerage24%

million m3
Public water 66%

Industrial water,river water 45%*1 CO2e: CO2 equivalent.

Hitachi Sustainability Repor t 2018

Waste reduction
6%

104

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Contents

Introduction

Management Approach
Environment

Activities

Performance Data

Continuous Enhancement of Environmental Governance

Detailed Data on Resource Input and Environmental Load Output
Total Input of Resources
Total resources input from Hitachi Group operations.
Total Energy Input

Energy consumption: (crude oil equivalent) 2.35 GL
FY 2016

FY 2017

Renewable energy

Electricity

2.9 GWh (29 TJ)

3.2 GWh (32 TJ)

Non-renewable energy

Electricity

5,903 GWh (57.4 PJ)

6,020 GWh (58.4 PJ)

0.18 Gm3 (8.1 PJ)

0.19 Gm3 (8.6 PJ)

GasNatural gas
LPG, LNG, etc.

241 kt (13.0 PJ)

269 kt (14.5 PJ)

Fuel oil (heavy oil, kerosene, etc.)

149 ML (5.6 PJ)

117 ML (4.5 PJ)

Solid fuel (coke)

173 Mt (5.2 PJ)

179 Mt (5.4 PJ)

Raw Materials Input

Materials: 3,797 kt
FY 2016

Materials

Metals2,710 kt

3,388 kt

New materials

1,497 kt

1,571 kt

Recycled materials, etc.

1,213 kt

1,817 kt

169 kt151 kt167 kt150 kt

Plastics
New materials
Recycled materials, etc.
Other materials
New materials
Recycled materials, etc.
Chemicals

FY 2017

PRTR substances*1 handled

2 kt

1 kt

314 kt258 kt308 kt

250 kt6 kt

8 kt

189 kt205 ktOzone-depleting substances handled

208 t

77 t

Greenhouse gas substances handled

3,425 t3,656 t*1 PRTR substances: The 462 chemicals designated in Japan’s Pollutant Release and Transfer Register (PRTR) Law.

Total Water Input

Water use: 38.54 million m3
FY 2016

Water provided by municipality or other sources

FY 2017

Tap water

7.77 million m3

7.40 million m3

Industrial water, river water

18.41 million m3

17.46 million m3

Groundwater

14.92 million m3

13.56 million m3

Rain water

0.03 million m3

0.02 million m3

Recycled water (recycled from the wastewater of other organizations)0.21 million m3

0.10 million m3

Hitachi Sustainability Repor t 2018

105

Contents

Introduction

Management Approach

Activities

Environment

Performance Data

Continuous Enhancement of Environmental GovernanceTotal Output of Environmental Load
Environmental load output from Hitachi Group operations.
Greenhouse Gas EmissionsGreenhouse gases: 4,715 kt-CO2e
FY 2016

CO2 emissions
Other GHGs

FY 2017
4,577 kt-CO2

4,663 kt-CO2

SF6 (sulfur hexafluoride)

56 kt-CO2e

40 kt-CO2e

PFCs (perfluorocarbons)

4 kt-CO2e

4 kt-CO2e

HFCs (hydrofluorocarbons)

16 kt-CO2e

7 kt-CO2e

N2O, NF3, CH4 (dinitrogen monoxide, nitrogen trifluoride, methane)

1 kt-CO2e

1 kt-CO2e

Notes:• The CO2 electrical power conversion factor uses the 2005 emission coefficients for individual countries published by the International Energy Agency (IEA) in the 2010 edition of CO2 Emissions from Fuel Combustion.
• The gas and fuel oil conversion factor is based on the list of emissions and calculation methods published by Japan’s Ministry of the Environment.

Total Volume of Waste and Valuables

Waste and valuables generation: 1,356 kt Nonhazardous: 1,320 kt (hazardous*1: 36 kt)
FY 2016

Waste reduction
Recycling

Reuse
Materials recycled
Thermal recovery

Landfill
Chemicals

FY 201768 kt (0.4)

PRTR substances discharged or transferred
SOx (sulfur oxides)
NOx (nitrogen oxides)
Ozone-depleting substances emitted (CFC-11, etc.)

83 kt (9.0)

1 kt (0.4)

1 kt (0.4)

1,001 kt (21.5)

1,038 kt (20.2)

12 kt (2.4)

11 kt (1.4)

254 kt (2.0)

223 kt (5.2)

4.7 kt4.2 kt101 kNm3*2

107 kNm3*2

488 kNm3

469 kNm3

1 t (0 t-ODP*3)

1 t (0 t-ODP*3)*1 Waste materials that pose a threat to human health or the living environment. We dispose of all such materials in accordance with the laws and regulations of each country and region.
*2 Includes SOx generated by a materials company that became a consolidated member of the Hitachi Group in fiscal 2016.
*3 ODP (ozone depletion potential): A coefficient indicating the extent to which a chemical compound may cause ozone depletion relative to the depletion for CFC-11 (trichlorofluoromethane, ODP = 1.0). The emissions factor uses the ODP and global warming potential ofJapan’s Ministry of the Environment.

Total Volume of Water Effluents Discharged

Water effluents discharged: 35.13 million m3
FY 2016

FY 2017

Public water

26.16 million m3

23.12 million m3

Sewerage

8.93 million m3

8.62 million m3

Underground infiltration, evaporation, etc.

3.68 million m3

3.39 million m3

Water quality

Hitachi Sustainability Repor t 2018

BOD (biochemical oxygen demand)

346 t

392 t

COD (chemical oxygen demand)

531 t

617 t

106

Introduction

Contents

Management Approach

Activities

Environment

Performance Data

Continuous Enhancement of Environmental Governance

Environmental Load Throughthe Value Chain
Calculation of GHG Emissions Throughout
the Value Chain
We calculate greenhouse gas (GHG) emissions throughout theentire value chain in conformance with GHG Protocol standards
to more effectively reduce these emissions. As a substantial

Procurement of Raw Materials and Parts

Production

Transport, Use, Waste Disposal/Recycling

Scope 3

Scope 1

Scope 3

Upstream

Direct emissions

Downstream

amount of emissions comes from use of the products we sell,
we make an ongoing effort to reduce emissions by enhancing
the efficiency and energy-saving features of our products and1 Purchased goods and services
Suppliers, etc.

services during their use.
Scope 1

Scope 2

Direct emissions from in-house fueluse and industrial processes
2.12 Mt-CO2e (1.8%)

Indirect emissions from production ofelectricity and heat purchased by thecompany 2.60 Mt-CO2e (2.1%)

2 Capital goods
Construction companies, etc.

6.9%
1.1%

3 Fuel- and energy-related activities

not included in Scope 1 and 2
Extraction companies, etc.

0.2%

4 Upstream transportationand distribution
Shipping companies

0.1%

Total GHG
Emissions

121.83

Direct emissions
from in-house fueluse and industrial
processes

Other indirect emissions not coveredby Scope 1 and 2(Emissions by other entities related
to the company’s activities)
10.33 Mt-CO2e (8.5%)

Hitachi Sustainability Repor t 2018

0.0%

Indirect emissions
from productionof electricity andheat purchasedby the company

N/A

Processors of intermediate products

Energy-related
indirect emissions

11 Use of sold products
Product end users

87.3

12 End-of-life treatment of sold products

2.1

Waste treatment companies

%

0.3%

%

5 Waste generated in operations
Waste treatment companies

0.1%

7 Employee commuting
Transportation companies, etc.

Scope 3: Upstream

9 Downstream transportation and distribution

10 Processing of sold products

Scope 2

6 Business travel
Transportation companies, etc.

Other indirect emissions not coveredby Scope 1 and 2(Emissions by other entities related
to the company’s activities)
106.78 Mt-CO2e (87.6%)%

Shipping companies

Mt-CO2e

Scope 3: Downstream

1.8

0.1%
0.0%

8 Upstream leased assets
Included in
Leasing companies
Scope 1 and 2

Scope 3 factors outside the value chain
13 Downstream leased assets
Users of leased assets
14 Franchises
Franchise members
15 Investments
Investment destinations

0.0%
N/A

0.0%

In-house: Within the scope of the company’s organizational boundaries. In principle, the scope of all business activities of the company itself and activities within or controlled by its consolidated subsidiaries.
Upstream: In principle, activities related to purchased products and services.
Downstream: In principle, activities related to sold products and services.

107

Contents

Introduction

Management Approach
Environment

Activities

Performance Data

Continuous Enhancement of Environmental Governance

GHG Emissions Throughout the Hitachi Value Chain (Hitachi Group)
Category

Description

Calculation Results (Mt-CO2e)

Scope 1*1
Direct emissions

Direct emissions from in-house fuel use and industrial processes

2.12 (1.8%)

Indirect emissions from production of electricity and heat purchased by the company

2.60 (2.1%)

Scope 2*2
Energy-related indirect emissions
Scope 3: Upstream (other indirect emissions)1

Purchased goods and services

Emissions from the resource extraction stage to the manufacturing stage, including raw materials, parts, supplied products, and sales

8.43 (6.9%)

2

Capital goods

Emissions generated in the construction, manufacture, and shipping of the company’s own capital goods, such as equipment, devices,buildings, facilities, and vehicles

1.31 (1.1%)

3

Fuel- and energy-related activities not included in Scope 1 and 2

Emissions from procuring fuel necessary for electricity and other energy production, including resource extraction, production, and shipping

0.24 (0.2%)

4

Upstream transportation and distribution

Emissions from distribution of raw materials, parts, supplied products, and sales prior to delivery of materials to the company, as well asother distribution activities of products for which the company bears the expense

0.10 (0.1%)

5

Waste generated in operations

Emissions from transportation, disposal, and treatment of waste generated in the company’s operations

0.11 (0.1%)

6

Business travel

Emissions generated from fuel and electric power used by employees for business travel

0.08 (0.1%)

7

Employee commuting

Emissions generated from fuel and electric power used in employee commuting

8

Upstream leased assets

Emissions from the operation of assets leased by the company, excluding those counted in Scope 1 and 2

0.06 (0.0%)
Included in Scope 1 and 2

Scope 3: Downstream (other indirect emissions)9

Downstream transportation and distribution

Emissions from transportation, storage, loading and unloading, and retail sales of products

0.01 (0.0%)

10 Processing of sold products

Emissions by downstream companies during processing of intermediate products

N/A*3

11 Use of sold products*4

Emissions from use of products by end users, such as consumers and businesses

106.33 (87.3%)

12 End-of-life treatment of sold products*4

Emissions from transportation, waste disposal, and treatment of products by end users, such as consumers and businesses

0.35 (0.3%)

13 Downstream leased assets

Emissions from operating assets owned by the reporting company as lessor and leased to other entities

0.03 (0.0%)

14 Franchises

Emissions by franchises under Scope 1 and 2

15 Investments

Emissions related to management of investments

Total

N/A
0.06 (0.0%)
121.83 (100%)

Note: Figures in parentheses are percentages of GHGs emitted throughout the value chain.
*1 Includes SF6, PFC, HFC, N2O, NF3, and CH4. The gas and fuel conversion factor is based on the list of emissions and calculation methods published by Japan’s Ministry of the Environment.
*2 The CO2 electrical power conversion factor used to calculate emissions is based on the 2010 edition of CO2 Emissions from Fuel Combustion, published by the International Energy Agency (IEA).
*3 Cannot be determined due to insufficient information on processing.
*4 CO2 emissions per unit is based on the Inventory Database for Environmental Analysis (IDEA), developed by the National Institute of Advanced Industrial Science and Technology (AIST) and the Japan Environmental Management Association for Industry (JEMAI).

Hitachi Sustainability Repor t 2018108

Contents

Introduction

Management Approach

Activities

Environment

Performance Data

Continuous Enhancement of Environmental Governance

Environmental Accounting

Achievements

Overview of Environmental Accounting

Environmental Investments, Environmental Protection Costs, and Economic Effects (Hitachi Group)

Hitachi has adopted and made public a set of environmental
accounting procedures conforming to the Japanese Ministry of
the Environment’s Environmental Accounting Guidelines 2005.
We have used the results of these procedures to raise the(billions of yen)
150

123.3

125

112.0

efficiency of our environmental investments and activities, more
effectively allocating management resources to our ongoingenvironmental efforts.

107.6

100

92.5

89.5

75
50

25.8

25

5.8

15.2

4.5

0

2013

Environmental Investments

2014

Environmental Protection Costs

14.1

7.5
2015

12.7

5.1
2016

21.4

11.0
2017

(FY)

Environmental Protection Effects (Economic Effects)

Fiscal 2017 Environmental Investments by Countermeasure (Hitachi Group)

13%

Other

Climate Change Response

Pollution Prevention

18%

Waste Reduction

Hitachi Sustainability Repor t 2018

4%

109

65%

Introduction

Contents

Management Approach
Environment

Activities

Performance Data

Continuous Enhancement of Environmental Governance

Environmental Investments(billions of yen)
Description

Total investment

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

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

5.81

4.46

7.50

5.12

10.99

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017
22.17

Environmental Protection Costs
Item(billions of yen)
Description

Expenses
Business area

Maintenance costs for equipment with low environmental load, depreciation, etc.*1

38.63

26.90

24.22

19.19

Upstream/downstream

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

1.27

1.09

0.97

0.63

0.72

Administration

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

6.77

6.47

5.97

5.12

5.69
62.55

Research and development

R&D to reduce environmental burden caused by products and production processes, product design expenses

75.62

76.12

75.71

63.31

Social activities

Planting, beautification, and other environmental improvement expenses

0.51

0.36

0.45

1.21

1.00

Environmental remediation

Environmental mitigation costs, contributions, and charges

0.53

1.03

0.27

0.22

0.33

123.33111.97107.59

89.51

92.46

FY 2013

FY 2014

FY 2015

FY 2016

Total*1 Equipment depreciation costs are calculated using the straight-line method over five years.

Environmental Protection Effects
Economic Effects*1(billions of yen)

Item

Major FY 2017 Activities

Net income effects

Recovering value from waste by sorting and recycling

15.98

7.54

7.27

4.96

6.90

Reduced expenses effects

Installing high-efficiency equipment (lighting, power supply)

9.82

7.65

6.78

7.77

14.54

25.80

15.19

14.05

12.72

21.44

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

70

68

59

51

58

Total

FY 2017*1 Economic effects include:• Net income effects: Benefits with real incomes, including incomes from the sale of resalable materials and incomes from environmental technology patents.
• Reduced expenses effects: Reduction in electricity, waste treatment, and other expenses through environmental load reduction activities.

Physical Effects*1(million kWh)

Item

Major FY 2017 Activities

Reduction in energy used during production

Installing LED lighting, upgrading air-conditioning equipment, etc.

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

Environmental Liability
We have appropriated 8.2 billion yen in expenses for the disposal of PCB-containing waste and 830 million yen to clean up contaminated soil as the amounts that we can reasonably project as ofMarch 2018 as future environmental liabilities.

Hitachi Sustainability Repor t 2018110

Contents

Introduction

Management Approach
Environment

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Promoting the Environmental Action Plan (Metrics and Targets)
Environmental Action Plan for 2018(2016–2018)
Hitachi is pressing forward with activities in accordance with its
Action Guidelines for Environmental Conservation in order toManagement

Environmental Action Plan for 2018:
Results and Targets
For our performance under the Environmental Action Plan for
2018, marking fiscal 2017 as its second year, we missed
targets for two items, but for every other category, we wereand achieve our targets.
The indicators used in the Environmental Action Plan for2018 are the main ones in Hitachi’s environmental activities
overall, and our endeavors in these areas are introduced in the◆◆◆

Voluntary
implementation ofenvironmental
monitoring by
business units andGroup companies atoverseas businesssites (implementing
sites/total targeted)

50%

Green points (GPs)under the GREEN212018 environmental
activity index

360 GPs

Raise the levelofenvironmental
activities

Final fiscal
year (2018)
targets
80% orhigher(cumulative
total)

Item

Indicator

Reducewaste
generation

Reduction in waste
and valuables
generation per unit
(base: FY 2005)

Item

Indicator

Improveenvironmental
performance

Rate of reduction in
CO2 emissions fromuse of products andservices (base:
FY 2010)369 GPs◆◆◆

480 GPs

Fiscal2017
targetFiscal2017
resultAchievement
level

Final fiscal
year (2018)
target

35%

33%

◆◆

40%

Item

Indicator

Reduceemissions ofchemical
substances

Reduction inatmosphericemissions ofchemical substances
per unit (base: FY
2006)

Fiscal2017
resultAchievement
level

Final fiscal
year (2018)
target

13%

15%

◆◆◆

14%

Fiscal2017
targetFiscal2017
resultAchievement
level

Final fiscal
year (2018)
target

35%

37%

◆◆◆

36%

Fiscal2017
targetFiscal2017
resultAchievement
level

Final fiscal
year (2018)
target

301

◆◆◆

600

Fiscal2017
resultAchievement
level

Final fiscal
year (2018)
targetEcosystem Preservation
Item

Indicator

150
Contribute to New ecosystempreservation activities
ecosystem
preservation implemented

Factories and Offices: Climate Change Response
Item

Indicator

Reduceenergy use

Reduction in energy
use per unit (base:
FY 2005)

Fiscal2017
targetFiscal2017
resultAchievement
level

Final fiscal
year (2018)
targetPartnership with Stakeholders

16%

14%

◆◆

17%

Item

Indicator

Make social
contributions
throughenvironmental
activities

Activities implemented 1,600(cumulativein such areas as
total)
environmental
education, informationexchange, ecosystempreservation throughafforestation, etc.,
community
contribution throughcleanup projects, etc.,
campaigns to turn off
lighting, andcommunity energysaving activities

following pages.
Factories and Offices: Enhance Efficiency of Water Usage
Item

Indicator

Enhanceefficiency ofwater usage

Reduction in water
use per unit (base:
FY 2005)

Fiscal2017
targetFiscal2017
resultAchievement
level

Final fiscal
year (2018)
target

25%

32%

◆◆◆

27%

◆◆◆ : Achieved

Hitachi Sustainability Repor t 2018

Fiscal2017
targetFactories and Offices: Manage Chemical Substances

Products and Services

able to reach our goals. We will continue to make improvements in each activity aimed for fiscal 2018—our final year—

83%

Strengthen
globalenvironmental
management

end, the Environmental Action Plan is drawn up every threeby fiscal 2018.

Achievement
level

Indicators

Innovation 2050 long-term environmental targets. Toward thisfiscal 2016—stipulates detailed activities and targets to tackle

Fiscal2017
results

Items

achieve its Environmental Vision and the Hitachi Environmental

years. The Environmental Action Plan for 2018—formulated in

Factories and Offices: Use Resources Efficiently
Fiscal2017
targets111

Fiscal2017
target◆◆ : Partially achieved

1,720(cumulative
total)◆◆◆

2,400(cumulative
total)

Contents

Introduction

Management Approach
Environment

The Hitachi Action Guidelines for Environmental
Conservation

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Responding to Climate Change with
Products and Services

Key Indicators
Reduction in CO2 Emissions (Hitachi Group)

The Action Guidelines for Environmental Conservation were
initiatives for environmental protection as we set out to realize

Improved Environmental Performance in Products
and Services

our Environmental Vision.

Hitachi is improving the environmental performance of its prod-

drawn up to show the direction of our business management

From base year

33%
reductionucts and services with the hope of contributing to the resolution
The Hitachi Action Guidelines for Environmental Conservationof environmental challenges through the development andpopularization of products and services with high environmental

FY 2010 (base year)

value. We strike a balance between improving functionality andCO2 emissions

reducing the environmental burden by using, as our index,
the reduction rate per product and service function of CO2
emissions during usage and of the volume of resources usedduring the life cycle. The group of products that demonstratea high level of potential in solving environmental issues are thetargets of a plan to achieve a 40% reduction in CO2 emissions
by fiscal 2018 (compared to fiscal 2010 products).
In fiscal 2017, we reduced CO2 emissions by 33% against
a target of 35% over the base year of fiscal 2010. The failure
to reach the target is due to changes in the product lineup,
as contributions made by products and services featuringhigh environmental performance were not fully reflected in
the new lineup.
We will strive to reduce the rate of CO2 emissions byexpanding sales of high energy-saving products and services
as well as by continuing with our efforts to promote environmentally conscious design during the development stage.

Hitachi Sustainability Repor t 2018112

Function size*1

FY 2017100

CO2 emissions%*1 Major functions of products correlated to CO2 emissions.

Function size

67%

Introduction

Contents

Management Approach
Environment

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Reducing CO2 Emissions Throughout the Value Chain
Reducing CO2 Emissions with Renewable Energy(Power Business Unit, Hitachi, Ltd.)

Oil-Free Scroll Compressor Directly Driven by an Amorphous Motor(Hitachi Industrial Equipment Systems Co., Ltd.)

Hitachi has a lineup of 5 MW-, 2.5 MW-,in collaboration with partner companies

Oil-free scroll compressors are known forsavings possible by reducing pressure loss

and 2 MW-class wind turbines and has

includes manufacturing, assembly, and instal-their low-noise and low-vibration features.

through such means as shortening theestablished a system that allows it to handle

lation of all equipment, as well as operation

They do not use lubricating oil, which

length of piping in a plant.

all processes from development to design,and maintenance for a period of five years.

enables them to provide clean, oil-freemanufacturing, and maintenance of the

Hitachi will contribute to expanding

compressed air. For these reasons theyturbines. Among all wind turbines that started

renewable energy by combining theare widely used in the food and healthcare

operation in Japan in 2016, Hitachi had thehigh-quality maintenance technologies andsectors, as well as in conducting scientificlargest share.*1 The company has received

expertise related to wind turbines that it has

research and experiments.

orders for a cumulative total of 325 turbines,

cultivated in the Japanese market.

of which 198 are currently in commercial
operation.*2 The amount of CO2 emissions
reduced with the use of wind turbines
delivered by Hitachi is 360 kt-CO2/year.*3

Hitachi’s original down-wind system
adopts a configuration with the rotor on theuses an amorphous motor featuring top-level*1 According to 2017 Hitachi, Ltd. findings.
*2 As of June 30, 2018.
*3 Amount for 198 wind turbines delivered by Hitachi. Comparable
to that when covered by thermal or other types of power
generation. The amount of CO2 generated by wind power
generation was calculated from the Comprehensive Assessmentof Life Cycle CO2 Emissions from Power Generation Technologies
in Japan (July 2016), by the Central Research Institute ofElectric Power Industry.

efficiency standards (equivalent to IE5*1) in
the air compressor body. And even higher
energy savings are provided with the use of
an inverter. The use of an inverter drive
makes power supply frequency control
unnecessary. This means that the discharge

enables turbines to switch to the free-yaw

pressure can be maintained at a constantoperation mode during storm blackout

level even when the amount of air usedconditions, reducing the dangers posed bychanges, achieving constant pressure

cross-winds. These turbines are thus

control with no more compression operation

suitable even for regions hit by frequent

than is necessary. This results in high energy

typhoons. Hitachi aims to contribute tosavings. By integrating the amorphouscreating a low-carbon society throughmotor with an axial gap structure*2 in the air

superior wind power generation systems incompressor as a single unit, the productJapan and other Asian regions, such asvolume ratio has been reduced by as much

Taiwan and Southeast Asia.
for twenty-one 5.2 MW wind turbine systems(109.2 MW) in Taiwan. The work, to be done

Hitachi Sustainability Repor t 2018

*2 Motor with a thin structure using a disk-shaped rotor.

Hitachi Industrial Equipment Systems

downwind side of the tower. This system

In April 2018, Hitachi signed a contract*1 The highest efficiency class in the motor energy efficiency
guidelines formulated in IEC 60034-30-2 of the International
Electrotechnical Commission (IEC).

as 37% from earlier models (with the same
capacity). Thus, it can be installed even in

The Shin-Aoyama Kogen Wind Farm (photo by Toru
Nagao, courtesy of Aoyama-Kogen Wind Farm Co.)

places with space restrictions, or installed

Wind Turbine

independently. This makes greater energy

113

Oil-free scroll compressor directly driven by an amorphous motor.

Introduction

Contents

Management Approach
Environment

Smart IoT Service Reduces CO2 Emissions Throughout the Value Chain(Systems & Services Business, Hitachi, Ltd.)The Smart IoT Service is a solution provided

and restaurant sectors.

by Hitachi’s Lumada IoT platform. It auto-

In restaurants, it monitors and measures

matically collects such environmental data

temperatures in refrigerators and automati-

as shop or building temperature, humidity,

cally transfers the data on a 24-hour basis

electric power, and CO2 levels, in addition tousing IoT and manages the data in the cloud.

data on the operational status of industrial

It can also help to shorten the time required

machinery. The information is then managed

to monitor temperature and reduce food loss

and shared in the cloud. This service helps

while contributing to lowering CO2 emissions

to reduce running costs and enables theduring monitoring operation and over the life

immediate detection and response tocycle of food. In calculations modeled onabnormalities while also contributing to a

1,200 shops in a major restaurant chain in

reduction of the environmental burden.

Japan (with temperature monitoring at 12

This solution is used in industries andlocations in each restaurant), use of thisbusinesses of all types and sizes,

service reduced CO2 emissions by 47%.

including in the manufacturing, transport,
Refrigerator Temperature Management for Restaurants
Previous temperature monitoring
Employees open refrigerators, monitor temperatures visually, and write them in control logs

Restaurant

Temperature
measurement, recording,management (manually)
Employee

Dealing with temperatureabnormalities• Cleaning refrigerator filter• Checking sensor position,
etc.

Food loss due toabnormal nighttime
temperatures

Temperature monitoring with Smart IoT Service
Automatic transfer

Restaurant

Sensors monitor
temperatures 24hours a day• Arrange an
operator on site
• Instructions formeasures

Hitachi Sustainability Repor t 2018

Hitachi, Ltd. control center (cloud)Manager

Warning notice(e-mail)

Automatic warning for abnormalnighttime temperatures

114

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Contents

Introduction

Management Approach

Activities

Environment

Addressing Our Carbon Footprint

Promoting the Environmental Action Plan (Metrics and Targets)

Products Authorized to Display the CFP Label in Fiscal 2017

The carbon footprint of products (CFP) is the CO2 equivalent of
the total amount of greenhouse gases (GHGs) emitted over theentire life cycle of a product or service—from procurement of

Product

Business phone

Enterprise storage

IP-PBX

Series andmodel

Hitachi Multi
Communication
System S-integral

Hitachi Virtual
Storage Platform
G1500

Hitachi IP-PBX
NETTOWER
CX-01 V2

materials through to disposal and recycling. Making the GHG

Performance Dataemission amount visible in this way encourages efforts to

Climate Change Measures in Factories
and Offices
Promoting Climate Change Measures
We are promoting ways to use energy more efficiently andreduce CO2 emissions during production and transportation,

reduce the amount of carbon emitted by products over theirin both the manufacturing and nonmanufacturing divisions,

Product
appearance

whole life cycle. Countries and regions around the world use

with the aim of responding to climate change by building

the CFP approach.

a low-carbon society.

Hitachi launched CFP assessment in 2009. We participate

Previous series
and model

in the Carbon Footprint Communication Program of the Japan
Environmental Management Association for Industry (JEMAI)

Rate of reduction
in CO2 emissions(compared toprevious model)

and are working to expand the number of Approved CFP
Products.* In fiscal 2017, products verified and approved by1

Hitachi Multi
Communication
System integral-F

Hitachi Virtual Storage Hitachi IP-PBX
Platform G1000
NETTOWER CX-01

Actions and Achievements
We are advancing efforts to reduce energy use per unit—–6.5% to –23%

–33%

–11% to –20%

an indicator of energy efficiency—by systematically improving
efficiency, such as by installing high-efficiency equipment
and devices, from LED lighting to inverter air conditioners,

the JEMAI CFP Program included the business phone Hitachi

at each facility. In our manufacturing divisions, we are

Hitachi Virtual Storage Platform G1500, and the Hitachi IP-PBXWorking with European Environmental Footprint
Initiatives

NETTOWER CX-01 V2. In addition to visualizing CO2 emissions,

Europe’s Environmental Footprint initiatives develop method-status and analyzing a broad array of data to promote further

we quantified the rate of CO2 emission reductions per function*

ologies for measuring the entire life cycle environmental burden

efficiencies in energy use.

from previous models, publishing the quantitative effect of theirof products and organizations in up to 16 areas. Pilot studies

energy efficiency in our catalogs and on both in-house andwere launched in November 2013 to establish assessment

base year of fiscal 2005), against a target of 14%. Part of theexternal websites. We are also working with JEMAI to raisemethods in multiple product and organization fields.

reason for not hitting the target was because of a decline in

Multi Communication System S-integral, the enterprise storage

2

the recognition of the CFP label and to promote Approved
CFP Products.
*1 Approved CFP Product: A product subjected to testing according to the CFP quantification
rules of the Carbon Footprint Communication Program, is verified as conforming to thoserules, and for which an application is made for registration and public announcement.
*2 Specifically, the “life cycle GHG emissions per unit function size,” calculated by dividing
the “life cycle GHG emissions per sales unit” by “function size of applicable product” asspecified by performance (or performance characteristic) and/or use period.

Hitachi, drawing on experience with Japan’s Carbon Footprint

In fiscal 2017, we achieved an improvement of 16% (from asales in energy intensive business divisions, which contracted

Communication Program and the knowledge gained fromthe denominator in calculating energy use per unit. Because

calculating and visualizing CO2 emissions in the IT product life

Hitachi’s operations cover many different areas, reductions incycle, is participating in a European Environmental Footprint

energy use per unit are assessed using a value closely related

pilot study in the IT equipment field, for which it serves as theto energy use (activity amount) at each business site as thedenominator. As for total CO2 emissions, we added the CO2technical secretariat.
In fiscal 2017, we adjusted our methods of evaluating theenvironmental burden of IT products and submitted our final

Hitachi Sustainability Repor t 2018advancing the visualization of energy use and production

emitted by power plants that sell electricity, although this is notincluded in the figures for energy use per unit.

assessment methods to the European Commission. This was

In the future, we will continue to harness our expertise inin response to a revision of the environmental footprint assess-control and IT technologies to actively pursue energy conser-

ment rules by the European Commission and its provision ofvation measures at our factories and offices and promote thedatasets to be used in calculating the environmental footprint.

efficient use of energy around the world.

115

Introduction

Contents

Management Approach
Environment

Key Indicators

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

CO2 Emissions (Hitachi Group)(kt-CO2/year)

Reduction in Energy Use per Unit (Hitachi Group)

5,000

4,165

4,128

4,000

From base year%
reduction
FY 2005 (base year)
Energy used 2.06 GL*

1

3,895

Green Power logo for the Green Power Certification scheme.

Reducing Transportation Energy Consumption
Hitachi is working toward the reduction of energy output during

1,000

Energy used 2.00 GL
%

4,663

2,000

FY 2017

100

4,577

3,000

14

Activity amount*2

Activities

Activity amount86*1 Energy volume used both in and outside the organization (Scope 1 and 2).
*2 A value closely related to energy use at each business site (for example, production
quantity, output, building floor space, and number of employees).

%transportation as well as at business sites, and we have estab-

0

2013

Japan

Rest of Asia

2014

2015

China

2016

2017

Americas

Europe(FY)Power plants*2

EuropeAmericas
China
Rest of Asia
Japan
Power plants*2
Total

2014
8
358
305
423
2,217
817
4,128

2015
7
375
211
402
2,090
810
3,895

business unit and Group company. Business sites are promoting a modal shift to highly efficient transportation methods,

Breakdown by Region (kt-CO2/year)
2013
4
321
332
375
2,323
810
4,165

lished targets for the reduction of energy use per unit for each2016
111,273*1
166
384
2,011
732
4,577

(FY)
2017
16
1,332*1
175
407
1,994
739
4,663

*1 Includes 958 kt-CO2 (fiscal 2016) and 1,036 kt-CO2 (fiscal 2017) emitted by a materials
company that became a consolidated member of the Hitachi Group in fiscal 2016.
*2 Emissions by power plants selling electricity were retroactively added in fiscal 2017.
Notes:• The CO2 electrical power conversion factor uses the 2005 emission coefficients for individual
countries published by the International Energy Agency (IEA) in the 2010 edition of CO2
Emissions from Fuel Combustion.
• Energy-related CO2 emissions were 2,062 kt-CO2 (Scope 1) and 2,601 kt-CO2 (Scope 2).

improving truck loading ratios and taking other measures toreduce transportation energy consumption, and switching to
the use of eco-cars. CO2 emissions from transportation inside
Japan for the Hitachi Group in fiscal 2017 were 102.8 kt-CO2.
Hitachi-Omron Terminal Solutions, for example, is promoting
reductions in CO2 emissions through a modal shift in the transportation of automated teller machines, and as a result of these
efforts it was designated by the Ministry of Land, Infrastructure,
Transport, and Tourism as an Eco Rail Mark company.*1*1 A mark conferred on companies using railways for more than 15% of its freight landtransportation covering 500 km or more; for 15,000 metric tons or more in volume per year;
or for more than 15 million ton-kilometers in volume × distance per year.

Introducing Renewable Energy
We are promoting the use of solar, wind, and other forms ofrenewable energy. During fiscal 2017, Hitachi produced 3,168
MWh of renewable energy for its own use. Hitachi Computer
Products (America) proactively uses renewable energy to
power its factory, purchasing 9,525 MWh during fiscal 2017.
In Japan, we contracted for 1,000 MWh/year of Green Powerthrough Japan Natural Energy Co., Ltd. to provide power for
offices, showrooms, and exhibitions.

Hitachi Sustainability Repor t 2018

116

About the Eco Rail MarkContents

Introduction

Management Approach
Environment

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Energy Savings in Eco-Factories & Offices
Next-Generation Factory Using IoT (Omika Works, Hitachi, Ltd.)The Hitachi, Ltd. Omika Works produces

pursues higher production efficiency and

Offices That Balance Energy Efficiency and Comfort(Yokohama Office, Hitachi, Ltd.)

control systems used in electric power

reduced environmental impact, contributing

To create a work environment conducive tobuilding management system. This systemgeneration, railroads, waterworks, andto achieving a low-carbon society as aworkstyle reforms, the Hitachi, Ltd. Yokohama

measures and compiles energy consumed

other social infrastructure. It has installed

next-generation smart factory.

Office is creating office spaces that balance

for each use, workplace temperature andenergy efficiency and comfort. Room envi-

humidity, air conditioning operating informa-

solar panels (940 kW capacity) to promote

Energy efficiency during the production

renewable energy use and is working toprocess is achieved with a progress andronments are monitored and analyzed withtion, and CO2 level data, which are thenlevel the electrical load by controlling theoperation monitoring system that uses

temperature and humidity sensors and otherintegrated and put in a visual format.

charging and discharging functions ofRadio Frequency Identification (RFID).*1

equipment to provide energy savings while

Aggregating and displaying these data on astorage batteries (4.2 MWh storage capacity).

As a result, annual energy consumption formaintaining comfort. Atria and light wells

single screen makes it possible for monitoring

Smart meters have been installed (in aboutlighting and air conditioning in fiscal 2017that let in natural light to create bright spaces

personnel to respond quickly when a problem

900 locations) in an effort to conserve

was 8 MWh lower than in fiscal 2012.

and rooftop solar panels (500 kW) help tooccurs. Energy use for air conditioning has

reduce energy use in the entire building.

been reduced 563 MWh annually by visual-energy through the utilization of IoT. In
these and other ways, the business site

*1 Non-contact automatic identification technology that uses
radio frequency to read information from tags or othercard-shaped media with an embedded IC and antenna.

At the Yokohama Office, air conditioning
and electric equipment are managed with aizing and analyzing correlations among datafrom each facility with this system.

Omika Works

Smart meter

Storage battery

EV fast charging station*2

Natural light enters through atrium spaces and light wells,
producing bright, comfortable spaces.

Solar panels*2 EMS: Energy management system.

Hitachi Sustainability Repor t 2018

117

Renewable energy from solar panels is used for some ofthe energy consumed in offices.

Contents

Introduction

Management Approach
Environment

Reducing Transport Energy
Consumption
A Modal Shift in Transporting ATMs
(Hitachi-Omron Terminal Solutions, Corp.)

Activities

Promoting the Environmental Action Plan (Metrics and Targets)

Enhancing Efficiency of Water Usage

Key Indicators
Reduction in Water Usage per Unit (Hitachi Group)

Water Conservation
Hitachi is implementing Group-wide measures to reduce water
usage through greater efficiency. For example, we are enhanc-

Hitachi-Omron Terminal Solutions is taking steps to reduce

ing our level of water management by installing flow meters at

CO2 emissions by implementing a modal shift from truck

more locations, introducing wastewater treatment devices toto rail transport for automated teller machines (ATMs).

increase the use of recycled water, and upgrading water

Since ATMs are precision machines, they must be

Performance Data

From base year

32%
reduction

supply facilities at our business sites to prevent water leakage.

transported with care to prevent damage. Repeated tests
were thus conducted, subjecting them to vibrations

Actions and Achievements

greater than those experienced during rail transport, toIn fiscal 2017, we set a target of a 25% reduction (over theconfirm that the machines would be unaffected. Compli-

base year of fiscal 2005) for water usage per unit at our 207

cated production plans for ATMs, which are high-mix andglobal sites and achieved a 32% reduction. The volume ofsmall-lot products, were made according to rail transportwater used declined by 16.09 million cubic meters, or 29%.

schedules. Transport pallets and stacking methods werealso improved. Thanks to such efforts to achieve efficient

FY 2005 (base year)
Amount used 54.63 million m

3

FY 2017
Amount used 38.54 million m3

100%

Activity amount

68%

Water Usage (Hitachi Group)(million m3/year)
60

49.55

46.86

45

transport, the company was designated by the Ministry of

Activity amount

43.91

41.34

38.54

30

Land, Infrastructure, Transport, and Tourism as an Eco Rail

15

Mark company. It is also actively using rail transport for
products other than ATMs, including teller cash recyclers0and cash deposit machines. As a result, CO2 emissions

Japan

were reduced by 82 t-CO2 in fiscal 2017, compared to

2013

2014

Rest of Asia

2015

China

2016

2017

Americas

Europe(FY)

Breakdown by Region (million m3/year)

levels when only trucks were used as a mode of transport.

EuropeAmericas
China
Rest of Asia
Japan
Total

2013
0.02
1.20
2.50
3.65
42.18
49.55

2014
0.02
0.98
2.32
3.85
39.69
46.86

2015
0.01
0.89
1.22
3.56
38.23
43.91

2016
0.02
3.09*1
1.51
4.00
32.72
41.34

(FY)
2017
0.04
2.78*1
1.51
4.04
30.17
38.54

*1 Includes water used by a materials company that became a consolidated member of the
Hitachi Group in fiscal 2016 (2.12 million m3/year in fiscal 2016 and 1.91 million m3/year infiscal 2017).

A rail container carrying ATMs heads out of the manufacturing facility to thetrain station for loading.

Hitachi Sustainability Repor t 2018118

Introduction

Contents

Management Approach

Activities

Environment

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Improving Water Use Efficiency

Improving Efficiency in the Use of
Resources

Reducing Water Intake by Reusing
Compressor Wastewater (Dongguan Clarion
Orient Electronics Co., Ltd.)

Reducing Intake Water by Reusing Welding
Process Cooling Water (Hitachi Automotive
Systems Czech, s.r.o.)Dongguan Clarion Orient Electronics manufactures 4.5

Hitachi Automotive Systems Czech produces automobile

In response to the 2001 Home Appliance Recycling Law, Hitachi

million car navigation and car audio units per year.

suspension systems. At its plant, the company built a

is taking part in a cooperative effort among five companies*1 in

Air compressors and driers are used on production lines,

recirculating water cooling system to reduce the amountthe same industry to recycle air conditioners, television sets,

and about 45 m of wastewater with a small amount of oilof tap water intake. Water used to cool products on the

refrigerators, and washing machines at 19 recycling plants

had been released annually. The company reduced theseam welding line is collected in storage tanks. Cold water

nationwide. In fiscal 2017, we recycled around 51 kt of theamount of water intake by installing dedicated equipment

is then added to lower the temperature and used repeatedly

roughly 59 kt of end-of-life home appliances we collected.

that separates the water and oil and improving the pro-to cool products. The company used this method tocess to reuse 45 m3 of recycled water annually to rinse

reduce its amount of intake water, reusing about 2,400 m3

near our customers to collect and recycle such end-of-life

automatic equipment parts.

of cooling water per year.

products as supercomputers, mainframes, and other3

Promoting Product Collection and Recycling andthe Efficient Use of Resources

Hitachi has built its own recycling network providing services

computing machines; communication equipment like network
Improvements in the Rinsing Process
Before improvement

devices and telephone switchboards; and information equip-

Recirculating Water Cooling Systemment like ATMs.

After improvement

Air compressor/drier

Air compressor/drier

We are also promoting the refurbishing*2 and remanufacturing*3 of collected used products. In the United States,
Cold water(tap water)when a customer replaces a large-capacity storage unit witha new model, part of the end-of-use device is cleaned andWater andoil mixture

Water andoil mixture

inspected and refurbished as a certified Hitachi product.
After collecting automobile electric components from dealers

Wastewater
45 m3

and repair shops, we disassemble, check, clean and restore,

Reused cooling water(2,400 m3/year)

Oil separator

reassemble, and inspect them, remanufacturing them as
equipment featuring the same performance as new products.

Storage tank
FilterRecycled water
45 m3

and dump trucks are similarly remanufactured so they function
FilterUsed as rinse
water forautomaticequipment parts

Hitachi Sustainability Repor t 2018

Used construction machinery like large hydraulic excavators

Seam welding(product cooling)Usedcooling waterlike new and offered as high-function, reasonably priced
products. We are also promoting activities to collect andreuse as resources medical equipment and such industrial

Cooling waterequipment as pumps, motors, distribution boards, transformers,
refrigeration equipment, and air conditioners.

119

Contents

Introduction

Management Approach

Activities

Environment

In an effort to use resources more efficiently, we are also

Promoting the Environmental Action Plan (Metrics and Targets)

Reducing Waste Volume

Waste Management Systempromoting the use of recycled materials. In fiscal 2017,

For fiscal 2017, we set a target of a 13% reduction (from a

recycled materials accounted for 1,826 kt (48%) of our total

base year of fiscal 2005) for waste and valuables generated

Officeraw materials input of 3,797 kt.
*1 Hitachi Appliances, Inc.; Sharp Corp.; Sony Corp.; Fujitsu General Ltd.; and Mitsubishi
Electric Corp.
*2 Refurbishing: To service end-of-use products to a condition conforming to new-productstandards.
*3 Remanufacturing: To restore end-of-use products through disassembly, washing,component replacement, and other work to a condition equivalent to new products.

Using IT to Manage Waste
Hitachi has developed and operates a waste management

per unit, bettering this by achieving a 15% reduction.
We endeavored to reduce waste through closed-loop recyIntranet

Internet

Specifically, we visualize the generation and disposal ofwaste produced at our factories, offices, and contract operations and manage data on waste contractors so that we
can keep accurate track of our progress in waste recycling.
In fiscal 2017, entries were made to the system regarding

cling, whereby the byproducts and scrap from the production
process are reused as resources by other business sites, andE-manifest

through the repeated use of packing and cushioning materials
Data link
JWnet*1 e-manifest

Paper manifest
Valuable materials
General waste
Disposal contractor
Contract details

during transport. Under the Zero Emission initiative, whichseeks to minimize landfill disposal, 97 business sites achieved
their zero emission goal*1 as of fiscal 2017.

Internet*1 Defined as a final disposal rate (landfill disposal/waste and valuables) of less than 0.5% in
any given fiscal year.

system aimed at efficient management and reduced
compliance risk.

Performance Data

Hitachi Group
Environmental Data
Collection System

Zero Emission Sites
Industrial waste
disposal company*1 JWnet: The Japan Waste Network is an electronic manifest system operated by theJapan Industrial Waste Information Center under the auspices of Japan’s Ministry of
the Environment.

Key Indicators
Reduction in Waste and Valuables Generation per Unit
(Hitachi Group)

waste generated at approximately 1,900 contract locationsin Japan and at Hitachi manufacturing sites in 65 countries.
This information is being put to use in measures to reduce

From base year

15

waste volume and improve recycling rates. The system also%
reduction

manages information regarding hazardous waste materials.
We have established a target of raising the e-manifest*1
system registration rate to at least 90% by fiscal 2015.

FY 2005 (base year)

This was achieved in fiscal 2014, and we continued withAmount generated 1,510 kt

our efforts in fiscal 2017.

Activity amount*1 The e-manifest is a document that waste generators must issue when commissioning adisposal company to handle waste disposal.

Hitachi Sustainability Repor t 2018

120

FY 2017100

Amount generated 1,356 kt%

Activity amount85%

Introduction

Contents

Management Approach
Environment

Waste and Valuables Generation (Hitachi Group)(kt/year)
1,500

1,336

1,000

677

692

2013

2014

1,356

618

500

0
Japan

Rest of Asia

2015

China

2016

2017

Americas

Europe(FY)

Breakdown by Region (kt/year)

EuropeAmericas
China
Rest of Asia
Japan
Total

2013
1
56
62
93
465
677

2014
2
67
54
106
463
692

2015
1
63
36
98
420
618

2016
2
744*1
48
107
435
1,336

(FY)
2017
4
725 *1
55
117
455
1,356

*1 Includes 675 kt (in both fiscal 2016 and 2017) of a materials company that became aconsolidated member of the Hitachi Group in fiscal 2016.

Hitachi Sustainability Repor t 2018

121

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)Introduction

Contents

Management Approach
Environment

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Efficient Use of Resources
Creating a Closed-Loop Recycling Scheme for Scrap Iron
(Fukushima Works, Hitachi Automotive Systems High Cast, Ltd.)

Remanufacturing Construction Machinery Parts(Hitachi Construction Machinery Co., Ltd.)

closed-loop recycling scheme.

Hitachi Automotive Systems High Cast

The Hitachi Construction Machinery Groupguarantee. This has made it possible to bothmanufactures casting parts for automotive

With this scheme, the recycling rate in

manufactures and sells large hydraulic exca-

shorten the time the machine is down andengine and cruise control and steering

the Group improved from 44% to 83%, andvators, dump trucks, and other construction

to provide high-functional units at reasonablesystems. At the company’s Fukushima

in fiscal 2016 the amount of waste andmachinery. In 1998 it began a parts remanu-

prices. This business has spread to nine

Works, busheling (steel press punchingdiscarded valuables was reduced byfacturing business to shorten the repair time

countries: Japan, China, India, Indonesia,

waste) of various compositions and shapes,

25,000 metric tons annually in the Hitachi

for broken machinery units.

Australia, the Netherlands, Zambia, Canada,machining chips (long, spiral chips from

Automotive Systems Group overall. These

Construction machinery is utilized in harsh

and the United States. Because many usedcastings or steel materials), and other scrap

long efforts have contributed greatly to theenvironments, and used units are thus often

units were remanufactured instead of beingiron produced at the business sites of theefficient use of resources and the building ofin poor condition. As a result, the downtime

discarded, the volume of waste generated

Hitachi Automotive Systems Group area sustainable society, and were recognized

for repairs tends to be long. Used units areby the Hitachi Construction Machinery

recycled. To do this, the company beganwith the Chairman’s Award by the Japan

restored to function like new at remanufac-

Group decreased by 2,853 metric tons ininvesting in crushing and centrifugal separa-

Environmental Management Association forturing plants and are sold with a functional

fiscal 2017.

tion equipment and changing existing pro-Industry in the FY 2017 Awards for Resources

cesses in fiscal 2010 to build an efficient,

Recirculation Technologies and Systems.

Closed-Loop Recycling Scheme for Scrap Iron

Comparison of General Repair and Parts Remanufacturing

Hitachi Automotive Systems Group
Business site A

General repair

External contractors

Repair of units results in long downtime

Sold externally

Busheling(1) Pick up the broken unit

External scrap collector

Business site B
Busheling

Business site C
Busheling, machining chips

Machine downtime
until the repair iscompleted

83%

Business site D
Busheling, machining chips

Hitachi Automotive
Systems High Cast
Fukushima Works

17%purchased(2) R estore function of
malfunctioning partsat repair plant(3) R e-install repaired unit in themachine on site

External scrap

Parts remanufacturing
Unit replacement means short downtime and new-product-equivalent functions

Provides casting parts to each business site

Replaced
immediately
on site(1) The used unit*1 is replaced witha remanufactured one*1 Units that have been removed as part of periodic replacement or due to a malfunction.

Hitachi Sustainability Repor t 2018

Repair plant

122

Remanufacturing
plant
Inventory of
remanufactured
parts(with warranty)(2) R estore allfunctions sothey areequivalent to
new products

Introduction

Contents

Management Approach
Environment

The Management and Reduction ofChemical Substances

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Working with the Supply Chain to Manage Chemical
Substances

Managing Chemical Substances in Our Business
Operations

Working closely with suppliers and customers, we gather andWe have been cutting emissions of chemical substances fromManaging Chemical Substances

make available information on chemical substances across theour factories and other sites through stricter management,

In fiscal 2005, Hitachi formulated the Regulations for

supply chain via the Integrated Management System for Chemicalsuch as by expanding the number and scope of controlled

Environmental CSR-Compliant Monozukuri to manage theSubstances Contained in Products, which has been in operation

chemical substances. Initiatives in fiscal 2017 to reduce emis-

chemical substances contained in its products at all stages—

since fiscal 2005. As of March 31, 2018, chemical substancesions of volatile organic compounds (VOCs) included switchingfrom development and design, procurement, and production

information for more than 1.37 million parts and products wasfrom VOC-containing paints to water-soluble and powder

to quality assurance and sales. With regard to chemicalregistered under this integrated management system.

paints as well as expanding their use and altering the painting

substances used in our business operations, we manage risk

The Integrated Management System for Chemical Substances

and washing processes. These efforts enabled us to success-by assigning three ranks to the use of such substances:

Contained in Products was upgraded in April 2017 to incorporate

fully achieve our targets. Information on our efforts has beenprohibition, reduction, and control. We also reduce risk by

the chemSHERPA format.* Between December 2017 andtranslated into English and Chinese and shared globally witheducating chemical substance handlers and managers on

February 2018, four briefings for suppliers were held on our

Hitachi Group members. We also monitor and manage emis-

laws and regulations and on proper risk assessment.

system and chemSHERPA at Omika Works, Mito Works, andsions of sulfur oxides (SOx) and nitrogen oxides (NOx),*1 which

Hitachi IE Systems. The briefings were attended by approximately

are required to be measured under the laws and regulations

600 persons and helped to deepen understanding of these tools.

applicable at our business locations.

*1 chemSHERPA: A standard developed by the Japanese Ministry of Economy, Trade, andIndustry to facilitate the management of chemical substances in products by creating ashared transmission scheme throughout the supply chain.

Register (PRTR) Law*2 through Group-wide monitoring ofManaging Chemical Substances in Our Products
To ensure compliance with Europe’s REACH* and other regu1

lations, we continuously revise the list of chemical substancesin our products that are to be managed. In October 2015, we
modified the list of Voluntarily Controlled Chemical Substances
so that 18 prohibited substances (Level 1) and 27 controlled
substances (Level 2) are now listed.
Four types of phthalic esters will be added to the list ofrestricted substances in Europe’s RoHS directive* in July
2

1Integrated Management System for Chemical Substances
Contained in Products

substances in January 2019, and each Group company is
now undertaking an examination of phthalic esters andadvancing their substitution by alternative substances.
*1 REACH: The European Union regulation on Registration, Evaluation, Authorization, andRestriction of Chemicals.
*2 Europe’s RoHS directive: The European Union’s Restriction of the Use of the Certain
Hazardous Substances in Electrical and Electronic Equipment, such as computers,
communication devices, and home appliances.

Hitachi Group’s Voluntarily Controlled Chemical Substances

Hitachi Sustainability Repor t 2018

chemical substances released into the atmosphere or into public
waters, removed outside our plants as waste, or discharged
into sewage systems, reporting the results to local governments
for each office or plant. Although some substances are exempt
from reporting due to their small quantities, our policy is toSuppliers
Environmental information

2019. Hitachi, too, will designate them as prohibited

We comply with Japan’s Pollutant Release and Transfer

Survey/registerIntegrated Management System for Chemical Substances
Contained in Products
Registration database

Aggregated database

Manage amounts of designatedchemical substances in a productby material and part

Manage total amounts of designatedchemical substances by productand business
Disclose

Customer/society
Environmental information

123

keep data on the handling, emission, and transfer of all PRTR
substances totaling 10 kilograms or more per year, recognizing
the need to control these substances as well.
*1 Emissions of SOx and NOx: Calculated by multiplying their concentration andexhaust volume.
*2 PRTR Law: Act on Confirmation, etc. of Release Amounts of Specific Chemical Substancesin the Environment and Promotion of Improvements to the Management Thereof.

Introduction

Contents

Management Approach
Environment

Reduction in Atmospheric Emissions of Chemical Substances

To ensure the proper management of chemical substances

per Unit (Hitachi Group)37%
reduction
FY 2006 (base year)

Emissions 4,223 t

100%

Activity amountfor chemical substance management called CEGNET since1998 to keep track of the latest laws and regulations and the

The Hitachi Construction Machinery Group manufacturescompany’s own voluntary regulations.

and sells construction machinery. In fiscal 2006 it began

CEGNET also collects and aggregates data on the amountFY 201763

compounds (VOCs) in painting its products, and by fiscal

our operations, helping to reduce the volume of chemicals that2017 it had expanded its use to 10 major plants aroundwe handle.

the world. At the Tsuchiura Works, the company’s motherplant, more than 60% of the paint used has been switched
Chemical Substance Management System (CEGNET)

Reducing Atmospheric Emissions of Chemical Substances(Hitachi Group)

Regulatory/voluntary
control information

Chemical data

4,216

4,415

4,380
3,615

4,000

4,223

5,000
4,000

New chemicalrisk searches

to high solids, while at Hitachi Construction Machinery(China) the high solid usage rate has more than doubled
since fiscal 2016. In addition to switching to high solids,(t/year)5,000

introducing high solid paint that emits fewer volatile organicof chemical substances handled, emitted, and transferred in%

Activity amount

Reducing Chemical Substances in
Our Business Activities
Reducing VOC Emissions(Hitachi Construction Machinery Co., Ltd.)

used in its business operations, Hitachi has operated a database
From base year

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

The CEGNET Chemical Substance Management
SystemKey Indicators

Emissions 5,901 t

Activities

Network

Registration of amounts
handled/data collection

plants in Japan are pushing to reduce VOC emissions byintroducing painting technologies matched to each product,such as powder coatings and single coats.

3,000

3,000

2,000

2,000

recent years, so in addition to shifting to high solids, Hitachi

1,000

1,000

Construction Machinery (China) has built a high-efficiency

0
Japan

2013

2014

2015

Rest of Asia

China

2016 *1 2017 *1
Americas(FY)0EuropeBreakdown by Region (t/year)

EuropeAmericas
China
Rest of Asia
Japan
Total

2013
8
76
372
447
3,313
4,216

2014
12
66
281
604
3,452
4,415

2015
9
113
199
373
2,921
3,615

2016*1
57
187
291
662
3,183
4,380

(FY)
2017*1
58
178
246
731
3,010
4,223

Hitachi Group business sites

Managing Storage of Equipment Containing PCBs

VOC processing facility and is implementing a plan for a

Equipment that uses polychlorinated biphenyls (PCBs) and

90% reduction in VOC emissions. The VOC processing

PCB waste materials are systematically disposed of within thefacility was completed in December 2017 and underwent

time limit established by the national government of Japan.

trial operations. Full-scale operations will begin in fiscal 2018

The storage and disposal of PCBs within the Group are

and should contribute to further reducing VOC emissions.

monitored every year to promote efficient disposal. In fiscal
2017, disposal was completed for PCB waste materials stored
at 36 business sites.

*1 Since fiscal 2016, the scope of controlled chemical substances has been expanded from41 to 50 substances.
Note: Atmospheric emissions of VOCs and other chemical substances are calculated from thecontent rate included in the ingredients.

Hitachi Sustainability Repor t 2018

VOC regulations in China have become more stringent in

A high-efficiency VOC
processing facility.

124

Contents

Introduction

Management Approach
Environment

Preserving Ecosystems

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

In fiscal 2016 Hitachi created an Ecosystem Preservation

It consists of 116 items covering all aspects of our business

Activities Menu citing the specific activities to be undertaken to

operations, including the value chain. Each business site

Corporate Relationship with Ecosystems

promote the preservation of the ecosystem, including activities

selects those activities it will undertake from the menu, and the

Corporations depend on “ecosystem services” for supplies ofthat are difficult to quantify but are nonetheless important, suchtotal number of initiatives becomes the Group’s target for eco-natural materials like wood and minerals and adjustments inas the protection of rare species, and efforts to make biodiver-system preservation. Our goal for new initiatives in fiscal 2017

the quality and quantity of air, water, and soil. Hitachi seeks tosity a criterion when making investment decisions. We arewas 150, and 301 were actually launched.

contribute both through its business and social contribution

encouraging each business site to advance their own initiatives.

Our goal for fiscal 2018 is to launch 600 new initiatives

activities to protect nature so we may continue to receive theseThis menu was created by adding the pioneering activities offrom the Ecosystem Preservation Activities Menu, and weecosystem and biodiversity benefits into the future.

other corporations and organizations to the list of items thatwill further promote ecosystem preservation activities on a

had already been subject to assessment since fiscal 2010.

Group-wide basis.

Through its business activities, Hitachi is promoting designs
and production methods that reduce the impact on the ecosystem throughout the product life cycle. We also offer products
and services that directly contribute to ecosystem preservation,such as water purification measures. We view chemical substance management as part of ecosystem preservation and

Ecosystem Preservation Activities Menu
Category

Activities taken

Numberof items

continually ensure that it is carried out correctly. As for social

Production

Reducing use of resources that cannot be reused4contribution activities to protect nature, we encourage

Transportation

Using packaging that takes ecosystem into consideration

7

Collection, disposal,
and recycling

Reducing hazardous materials in products2

surveys of rare plants and animals, and other programs to

Product planning,development, and design

During R&D, estimating impact on biodiversity during a product’s life cycle and implementing, if needed, mitigation measures3

preserve ecosystems.

Site management

Using native species, setting up biotopes

17

Water use

Using rainwater1

Investment and acquisition

Confirming impact on biodiversity when investing in or acquiring a business, and implementing measures to minimize such impact

1

Market entry and expansion

Including biodiversity as an investment criterion

1

At Hitachi, we seek to reduce the burden (negative impact) on

Business development

Developing products and services to purify water, air, and soil and expanding such businesses

1natural capital caused by business activities and to promote

Procurement

Preferentially procuring paper and other office supplies that take biodiversity into consideration

17

Transportation

Implementing ballast water measures during marine transportation

2

Sales

Implementing sales expansion of products that take biodiversity into consideration

9

Collection, disposal,
and recycling

Reusing and recycling components

7

Entire value chain

Promoting the use of renewable energy

1

Engagement

Promoting employee activities outside the company

3

Social contribution

Implementing desert greening and afforestation activities

12

Observing and collecting biota information (impact on ecosystem depending on intake volume)

14

Setting up biota management indicators and making observations (species and numbers of inhabiting organisms)

14

employee volunteer programs, such as tree planting, ecologicalBusiness sites

Initiatives to Preserve Ecosystems

the positive impact, such as by undertaking social contribution

Value chain

activities to protect nature and providing products and services
that help preserve the ecosystem, thereby minimizing our
impact on natural capital by fiscal 2050 and realizing a harmonized society with nature. We are conducting deliberations andmaking estimates within the Group to quantify such impact inadvancing these activities.

Hitachi Sustainability Repor t 2018

Community

Water use that takes
Water intake
watershed ecosystem
Waterdischarge
into consideration

125

Contents

Introduction

Management Approach

Activities

Environment

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Promoting Ecosystem Preservation
Hitachi IT Eco Experimental Village Preserves Ecosystems ThroughCollaborative Creation (Systems & Services Business, Hitachi, Ltd.)

Desert Greening with the Dual Aims of Restoring Forests andRevitalizing Communities (Hitachi Construction Machinery Co., Ltd.)The Systems & Services Business of Hitachi,

Hitachi Construction Machinery (Shanghai)

Japan. In fiscal 2017 it was conferred theLtd. opened the Hitachi IT Eco Experimentaland Hitachi Construction Machinery (China)

Judges’ Honorable Mention Award in the

Village in the city of Hadano, Kanagawa

have partnered with the nonprofit Green

Sixth Contest for Corporate Activities on

Prefecture, Japan, in April 2011. Since that

Network since 2004 to plant trees in the

Biodiversity, supported by Japan’s Ministry

Horqin Desert in China’s Inner Mongoliaof the Environment and Ministry of Agriculture,

Autonomous Region. With the start of theForestry, and Fisheries. The initiative wasWith the cooperation of local residents,

second 10-year plan in 2015, suppliers andalso certified as a partnership program byvolunteer organizations, the local govern-

dealers have also joined these efforts, which

the Japan Committee for the United Nations

ment, schools, research institutions, andhave so far resulted in the greening of

Decade on Biodiversity (UNDB-J).

others, it has been collecting environmental

330,000 m of the Horqin Desert. These

information with sensors and other IT devices

activities contribute not only to protecting

time it has been conducting activities to preserve satoyama landscapes and ecosystems.

and visualizing the data to analyze andprovide empirical evidence to show how IT

The Hitachi IT Eco Experimental Village was certified
as a project recommended by the Japan Committee for
the UNDB-J.

2

against wind and sand but also to CO2

IT devices and creatures observed during an experiment,from left, the agricultural IoT system e-kakashi, a new
bird-and-animal repelling solution, and a Japanese squirrel.

absorption, resource recycling, andcan contribute to ecosystem preservation.

biodiversity. This reforestation initiative also

These preservation activities, coordinatedcontributes to community employment by

with many stakeholders, were among thehaving much of the greening work done by

twelfth group of certified partnership pro-

local people.

grams selected in March 2018 by the JapanThe Hitachi Construction Machinery

Committee for the United Nations DecadeGroup has been recognized for the content

on Biodiversity (UNDB-J).
The aim of these and other activities ofA certificate of Judges’ Honorable Mention Award at the
Sixth Contest for Corporate Activities on Biodiversity.

and continuity of its reforestation activities,

A field trip to observe living organisms.

receiving commendations in both China andthe Social Innovation Business is to help

The reforestation initiative was certified as a project
recommended by the Japan Committee for the UNDB-J.

communities resolve issues through collaborative creation and leave the blessings of thesatoyama landscape to future generations.

Supplying water witha bucket relay.

Hitachi Sustainability Repor t 2018126

Contents

Introduction

Management Approach
Environment

AA+ Rank Acquired in the JHEP Certification
System of the Ecosystem Conservation
Society-Japan(Hitachi High-Technologies Corporation)
Hitachi High-Tech Science, a subsidiary of Hitachi
High-Technologies, is making ongoing efforts in theapproximately 44,000 m2 Woodlands of the Hitachi
High-Tech Science surrounding the research and development facility of its Oyama Works to create a broadleaf
forest with native plant species, restoring fields of Japanesesilver grass where a variety of native wild grasses grow,and eradicating nonnative species.
These efforts to preserve and restore biodiversity in the
Woodlands of the Hitachi High-Tech Science obtained thesecond highest ranking of AA+ in the JHEP Certification
System*1 of the Ecosystem Conservation Society-Japan.
*1 JHEP Certification System: A certification system in which biodiversity values before
and after a project are compared, and the difference assessed and ranked.

Woodlands of the Hitachi High-Tech Science.

Hitachi Sustainability Repor t 2018

127

Activities

Performance Data

Promoting the Environmental Action Plan (Metrics and Targets)

Contents

Introduction

Management Approach

Activities

Performance Data
Performance Data

Performance Data

128

Indicators and Data

129–132

Main Assessments and Awards

133–134

Independent AssuranceHitachi Sustainability Repor t 2018

135

128

Contents

Introduction

Management Approach

Activities

Performance Data
Performance Data

Indicators and Data

Indicators and Data
The Key Indicators of Hitachi’s sustainability activities are listed below. Comparative tables with the GRI Standards Content Index, as well as our Policy and Guidelines, are only available
on our website.
Comparative Tables with GRI Standards Content Index
Policy and Guidelines

Financial Results (Consolidated IFRS)(billion yen)

Revenue
Adjusted operating income
EBIT*1
Income from continuing operations, before income taxes
Net income attributable to Hitachi, Ltd. stockholders
Capital investment (completion basis)
R&D expenditure

FY 2015

FY 2016

FY 2017

10,034.3
634.8
531.0
517.0
172.1
528.5
333.7

9,162.2
587.3
475.1
469.0
231.2
377.5
323.9

9,368.6
638.6
644.2
638.6
362.9
374.9
332.9

*1 EBIT: Income from continuing operations before income tax, less interest income, plus interest charges.

Recognition of Social Responsibility

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

3.7
59

3.4
59

3.3
59

3.5
57

3.6
56

Realizing Sustainable, Innovative Management
Ratio of R&D expenditure to revenue (%)
Patent application ratio outside Japan (%)

Scope of Data
Hitachi, Ltd. and consolidated subsidiaries (including variable interest entities).
Number of companies: FY 2013: 948; FY 2014: 996; FY 2015: 1,057; FY 2016: 865; FY 2017 880.

Corporate Governance

Gender
Total

12*2
35
78

Number of directors*1
Number of executive officers*1
Number of executive officers and corporate officers*1(% of total)

FemaleJapanese

Non-Japanese

10
35
76

2
0
2

8
34
73

4
1
5

(2.6%)*1 As of June 2018.
*2 Including eight independent outside directors (four Japanese and four non-Japanese).

Hitachi Sustainability Repor t 2018

Nationality

Male

129

(6.4%)

Introduction

Contents

Management Approach

Activities

Performance Data
Performance Data

Indicators and Data

Labor Practices
FY 2013

FY 2014

FY 2015

FY 2016

FY 201733,50028,273
5,227
40.7
41.3
37.6
18.3
19.0
15.0
1.4

31,37526,428
4,947
41.0
41.6
38.0
18.4
19.0
15.4
1.4

37,35331,536
5,817
41.2
41.7
38.4
18.4
19.0
15.6
1.3

35,631
29,921
5,710
41.4
42.0
38.6
18.6
19.2
15.7
1.5

34,92529,220
5,705
41.7
42.3
39.0
18.8
19.4
16.0
1.5

16.6
5.6

16.3
6.0

16.5
6.4

16.8
6.3

17.2
6.4

(3,415)
3.8(3,670)3.7(3,727)4.0(3,365)
4.1(3,459)
4.2

General manager or above

(418)
2.7

(434)
2.8

(474)
3.2

(509)
3.3

(577)
3.2

Section chief

(77)
4.3

(87)
4.1

(104)
4.3

(113)
4.4

(128)
4.6

(341)
19.4
14.7
43.4
2.02
539
238
683
5
8
12
4
2
15.5
64.7
13.5

(347)
21.7
18.3
41.0
2.03
508
236
663
4
8
9
7
3
15.4
64.3
12.2

(370)
22.8
17.3
45.5
2.08
524
307
668
3
8
9
9
3
15.6
65.3
11.9

(396)
26.3
20.8
42.1
2.11
664
352
822
2
7
8
9
3
16.3
68.1
12.8

(449)
26.6
17.2
53.8
2.15
724
426
887
2
7
14
12
3
17.2
72.0
10.9

1
0.10
0.14

1
0.09
0.27

2
0.07
0.22

1
0.18
0.18

0
0.17
0.25

340
747

446
720

509
674

638
382

708
378

Achieving a Fair and Equitable Work Environment
Number of employees*1
MaleFemaleAverage age (years)*1
Male
FemaleAverage service (years)*1
Male
FemaleTurnover ratio (%)*1*2
Promoting Diversity and Inclusion
Ratio of female employees (%)*1
Global ratio (number) of female managers*3
Ratio (number) of female managers*4

Ratio of new female graduates hired (%)*5
Technical
Administrative
Employment ratio of people with disabilities (%)*6
Number of employees taking maternity/ Female
paternity leave*1
MaleFemaleNumber of employees using shorter
1
working hours for child care*
Male
FemaleNumber of employees taking
nursing-care leave*1
MaleFemaleNumber of employees using shorter
working hours for nursing care*1
Male
Average number of days
Paid leave*1
Ratio (%)
Average overtime hours/month*1
Promoting Occupational Health and Safety*7
Number of fatal accidents*1
Occupational accident rate*1
Occupational accident rate*8
A Strategy for Growing Together with Our Global Human Capital
Number of non-Japanese employees*9
Number of young employees participating in training outside Japan*10

Hitachi Sustainability Repor t 2018130

Contents

Introduction

Management Approach

Activities

Performance Data
Performance Data

Indicators and Data

Scope of Data
*1 Hitachi, Ltd.
*2 Includes only voluntary resignations.
*3 All full-time, regular female managers excluding those dispatched to non-Group companies.
Figures for fiscal 2016 were restated following a reexamination of HR data.
*4 “Female managers” in fiscal 2017 include managerial employees dispatched from Hitachi, Ltd. to non-Group companies and those acceptedfrom non-Group companies by Hitachi, Ltd. Earlier figures include regular managerial employees dispatched to non-Group companies but
exclude those accepted from non-Group companies.
*5 Graduates from universities or colleges (including postgraduate schools and technical colleges).
*6 Including Hitachi, Ltd. and 17 special subsidiaries and related Group companies. Data compiled on June 1 of each fiscal year
(2.23 in fiscal 2018).
*7 January to December each year.
*8 195 Hitachi Group companies in Japan including Hitachi, Ltd. for 2013; 251 Hitachi Group companies in Japan including Hitachi, Ltd. for2014; 240 Hitachi Group companies in Japan including Hitachi, Ltd. for 2015; 200 Hitachi Group companies in Japan including Hitachi, Ltd.
for 2016; 201 Hitachi Group companies in Japan including Hitachi, Ltd. for 2017.
*9 Employees at Hitachi, Ltd. as of the end of each fiscal year.
*10 Hitachi, Ltd. and Hitachi Group companies in Japan.

Environment

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

—
4,165
49.55
677
4,216

—
4,128
46.86
692
4,415

—
3,895
43.91
618
3,615

35
4,577*2
41.34*2
1,336*2
4,380*2*3

33
4,663*2
38.54*2
1,356*2
4,223*2*3

Reducing the Environmental Burden of Our Business Operations
Rate of reduction in CO2 emissions from use of products and services (base: FY 2010)*1 (%)
CO2 emissions from factories and offices (kt-CO2)
Water use (million m3)
Waste and valuables generation (kt)Atmospheric emissions of chemical substances (t)Scope of Data
Hitachi, Ltd. and consolidated subsidiaries.
Number of companies: FY 2013: 948; FY 2014: 996; FY 2015: 1,057; FY 2016: 865; FY2017: 880.
Environmental performance data associated with Hitachi’s business operations: Hitachi Group companies whose environmental load comprises
90% of the total (based on Hitachi calculations); data for each fiscal year indicates performance within the given scope for the fiscal year.
*1 New indicator established in fiscal 2016.
*2 Figures include a materials company that has become a consolidated member of the Hitachi Group since fiscal 2016.
*3 The management scope of chemical substances has been expanded from 41 to 50 substances since fiscal 2016.

Fair Operating Practices

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

16

20

20

20

18

Engaging in Responsible Procurement
Number of audits by external auditing organizations

Hitachi Sustainability Repor t 2018131

Contents

Introduction

Management Approach

Activities

Performance Data
Performance Data

Community Involvement and Development

Indicators and Data

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

1,806
3,076

1,218
2,327

889
2,057

527
1,953

948
2,195

Promoting Sustainable Community Involvement and Development
Funding for social contribution activities (million yen)*1
Funding for social contribution activities (million yen)*2

Scope of Data
*1 Hitachi, Ltd. and the Hitachi Global Foundation in Japan.
*2 Through to fiscal 2014: (in Japan) Hitachi, Ltd., 136 Group companies (including equity-method associates and joint ventures), and fivefoundations; (outside Japan) 199 companies. For fiscal 2015: (in Japan) Hitachi, Ltd., 136 Group companies (including equity-method
associates and joint ventures), and the Hitachi Global Foundation; (outside Japan) 244 companies. For fiscal 2016: (in Japan) Hitachi, Ltd.,134 Group companies, and the Hitachi Global Foundation; (outside Japan) 159 companies. For fiscal 2017: (in Japan) Hitachi, Ltd., 141
Group companies, and the Hitachi Global Foundation; (outside Japan) 196 companies.

Hitachi Sustainability Repor t 2018132

Introduction

Contents

Management Approach

Activities

Performance Data
Performance Data

Main Assessments and Awards

Main Assessments and Awards
Hitachi actively pursues a range of activities aimed at developing a more sustainable society. These activities have earned the Hitachi Group high marks from numerous
external organizations.

Actively Responding to ESG Assessments

Results of ESG Analysis in Fiscal 2017

The Hitachi Group welcomes external assessments as a target

Institution

Index

Companies selected

for ESG* and sustainability-oriented investment. For nine years

RobecoSAM

Dow Jones Sustainability
World Index

Hitachi, Ltd.

Dow Jones Sustainability Asia
Pacific Index

Hitachi, Ltd.
Hitachi Chemical Co., Ltd.

1

in a row, starting with fiscal 2009, the Dow Jones Sustainability
World Index (DJSI World),* a leading global sustainability
2

investment index, has listed Hitachi, Ltd. as a component

MSCI

MSCI ACWI ESG Leaders Index Hitachi Chemical Co., Ltd.
MSCI Japan ESG SelectLeaders Index

Hitachi, Ltd.
Hitachi Chemical Co., Ltd.
Hitachi Metals, Ltd.
Hitachi Construction MachineryCo., Ltd.
Hitachi High-Technologies
Corporation

MSCI Japan Empowering
Women Index (WIN)

Hitachi, Ltd.
Hitachi Chemical Co., Ltd.
Hitachi Metals, Ltd.
Hitachi High-Technologies
Corporation

FTSE4Good Index Series

Hitachi Chemical Co., Ltd.
Hitachi Metals, Ltd.
Hitachi Construction MachineryCo., Ltd.
Hitachi High-Technologies
Corporation

FTSE Blossom Japan Index

Hitachi Chemical Co., Ltd.
Hitachi Metals, Ltd.
Hitachi Construction MachineryCo., Ltd.
Hitachi High-Technologies
Corporation

Vigeo Eiris

Euronext Vigeo Eiris World
120 Index

Hitachi, Ltd.

Morningstar

MS-SRI

Hitachi, Ltd.
Hitachi High-Technologies
Corporation

stock. In fiscal 2017, the company was also included as acomponent of the Euronext Vigeo Eiris World 120 Index.*3
Three Group companies (Hitachi Chemical, Hitachi
Metals, Hitachi Construction Machinery, and Hitachi
High-Technologies) were selected for the FTSE4Good IndexSeries.*4 Hitachi Metals and Hitachi High-Technologies werechosen for the Morningstar SRI Index,*5 reflecting the respectthey command in the market. Hitachi Chemical was also

FTSE

selected for the MSCI ACWI ESG Leaders Index.*6*1 ESG stands for “environmental,” “social,” and “governance”—key factors in promotingsocially responsible investment.
*2 DJSI: A family of ESG indexes developed by Dow Jones & Company (USA) andRobecoSAM (Switzerland) that includes global and regional indexes with specificcompositions. DJSI World, for example, selects on a global basis, while the DJSI Asia
Pacific Index covers Japan, Asia, and Australia.
*3 Euronext Vigeo Eiris World 120 Index: A sustainability index comprising 120 companies from
Europe, North America, and the Asia Pacific region that have achieved the most advanced
performance in the ESG areas. Created by NYSE Euronext, which operates several stock
exchanges in the United States and Europe, and an ESG research firm, Vigeo Eiris.
*4 FTSE4Good Index Series: One of the indexes calculated by the London Stock Exchange–
owned FTSE Group that selects component stocks based on their ESG performance,
specifically environmental management, climate change mitigation, human rights andworkers’ rights, supply chain labor standards, and bribery and corruption prevention.
*5 Morningstar SRI Index: An ESG index for Japanese stocks developed by Morningstar
Japan K.K. with an NPO, the Center for Public Resources Development.
*6 MSCI ACWI ESG Leaders Index: A family of indexes developed by US-based Morgan Stanley
Capital International comprising companies with high ESG ratings relative to sector peers.

Hitachi Sustainability Repor t 2018133

Contents

Introduction

Management Approach

Activities

Performance Data
Performance Data

Nadeshiko Brand Designation

Diversity Management Selection 100

On March 22, 2018, Nadeshiko Brand 2018 (for fiscal 2017)

In 2013, Hitachi, Ltd. was chosen for inclusion in the Diversity

was publicly announced. Hitachi, Ltd. was among the compa-

Management Selection 100, an initiative of Japan’s Ministry ofnies selected. This marks the fifth consecutive year the com-

Economy, Trade, and Industry (METI). The Diversity Manage-pany has received this honor in recognition of its management

ment Selection 100 system chooses and recognizes compa-

strategy promoting diversity and for promoting innovation bynies that have achieved high results in such areas as improving

drawing on its diverse human capital.

innovation and productivity by using the talents of diverse

Since fiscal 2012, the Ministry of Economy, Trade, andMain Assessments and Awards*1 Hitachi Group companies receiving Kurumin certification are:Hitachi Construction Machinery Co., Ltd., Hitachi Kokusai
Electric Inc., Hitachi High-Technologies Corporation, Clarion
Co., Ltd., Hitachi Urban Investment, Ltd., Hitachi Systems
Ltd., Hitachi Solutions, Ltd., Hitachi SC, Ltd., Hitachi Solutions
East Japan, Ltd., Hitachi INS Software, Ltd., Hitachi Social
Information Services, Ltd., Hitachi Architects & Engineers Co.,
Ltd, Hitachi Mito Engineering Co., Ltd., Mito Engineering
Service Co., Ltd., Okinawa Hitachi Network Systems, Ltd., andHitachi Solutions Create, Ltd.

employees, including women, different nationalities, older

Industry (METI) and the Tokyo Stock Exchange (TSE) have

employees, and people with disabilities. Hitachi was lauded for

Eruboshi Certification

jointly selected, on an industry basis, enterprises that are con-going beyond simply introducing diversity programs to pro-

The Eruboshi mark is conferred to companies that have sub-sidered outstanding in terms of encouraging women to play

mote diversity management Group-wide as a corporate strat-

mitted action plans under the Act on Promotion ofactive roles in the workplace from among the approximately

egy backed by strong management commitment.

Women’s Participation and Advancement in the Workplace

3,500 companies listed on the TSE. Laureates are selected byindustry based on assessment of female advancements in the

In 2015, Hitachi Solutions was chosen for the METI Diversity
Management Selection 100.

(which came into effect on April 1, 2016) and are implementing
exceptional measures.

workplace as well as return of equity. Hitachi, Ltd. was one of

On February 28, 2017, Hitachi, Ltd. was awarded Eruboshi

48 enterprises this round of selections.

certification for promoting diversity as an important componentof its management strategy and for creating work environments enabling its diverse human capital to play an active role.
Companies are assessed in five categories*1 and are grouped
into three classes according to the number of standards theyclear; Hitachi, Ltd. was awarded class 2.*2

Kurumin Certification
Kurumin certification is granted under Japan’s April 2005
Act on Advancement of Measures to Support Raising
Next-Generation Children to companies that create actionplans for child-care support in line with this legislation andthat meet performance requirements.
In February 2011, Hitachi, Ltd. acquired this certification*1 inrecognition of its achievements in developing and implementing
action plans supporting child care so that employees can workwith the peace of mind that comes from a good work-life balance.

Hitachi Sustainability Repor t 2018134

*1 The five assessment categories are (1) recruitment, (2) years ofcontinuous employment, (3) workstyles, including working
hours, (4) percentage in management positions, and (5)diversity of career choices.
*2 Other Hitachi Group companies earning Eruboshi certification
are: Clarion Co., Ltd. (class 3); Hitachi Systems Ltd. (class 3);
Hitachi Solutions, Ltd. (class 3); Hitachi Chemical Co., Ltd.
(class 2); Hitachi High-Technologies Corporation (class 3);
Hitachi Solutions East Japan, Ltd. (class 2); and Hitachi
Technical Communications Co., Ltd. (class 3).

Contents

Introduction

Management Approach

Activities

Performance Data
Performance Data

Independent Assurance
Third-Party Assurance Report

To enhance the reliability of the data disclosed in the Hitachi
Sustainability Report 2018, we have received independent
assurance of key environmental and social performanceindicators by KPMG AZSA Sustainability Co., Ltd.
The indicators that were assured are marked with a.

The standards, guidelines, and calculation methods
used in collecting environmental data are posted on our
website.
Calculation Methods for Environmental Load Data

Hitachi Sustainability Repor t 2018135

Independent AssuranceInquiries

Sustainability Promotion Division
1-6-6 Marunouchi, Chiyoda-ku, Tokyo 100-8280, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4235-5835
www.hitachi.com/sustainability/