Hitachi Group
Sustainability Report 2012
V A L U E

C R E A T I O N

F O RS U S T A I N A B L EAS O C I E T Y

Contents

Hitachi Group
Sustainability Report
2012

003

Sustainability Report Editorial Policy

005

Hitachi Group Proﬁle007

TOP COMMITMENT Message from Management Hiroaki Nakanishi, President, Hitachi, Ltd.

009

VISION: Management Strategies and CSR
2012 Mid-Term Management Plan / 2012 Mid-Term Management Plan: Key Management Policies and Related CSR Activities / Material Issues for Hitachi

013

FEATURE Relationships Drive a Sustainable Society

Lessons from the Great East Japan Earthquake
Protecting Lives: With Customers – Minami-Gamo Puriﬁcation Center
Financial Systems Support Communities: With Customers – Kita-Nippon BankTaking on the World with Strong Partnerships: With Suppliers – Hitachi Industrial Cooperative
Supporting Disaster-Resistant Cities: With Government – Sendai City Hall
Supporting Employees’ Volunteer Work for Disaster Recovery
Dialogue: Tatsuro Ishizuka and Hideto Kawakita – Exploring Energy Sources in Light of the Quake
021

Management Report022

Message Toshiaki Kuzuoka, Senior Vice President and Executive Officer

023

Corporate Governance
Strengthening Governance / Internal Controls over Financial Reporting / Group Management

026

CSR Management
CSR Management Structure / Five-Year CSR Roadmap /CSR Self-Assessment Tool / FY 2011 Results and FY 2012 Plans

030

Risk Management
Responding to the Great East Japan Earthquake / Reinforcing the Risk Management System /Business Continuity Plans (BCPs)

033

Compliance
Formulating and Ensuring Awareness of the Hitachi Group Codes of Conduct /Implementing Corporate Ethics Month / Compliance Reporting System /Preventing Bribery of Foreign Public and Other Officials /Preventing Violations of the Antimonopoly Law /Protecting Personal Information and Information Security / Export Control

038

Innovation Management
Research and Development Strategy / Research and Development Goals /Global Research and Development Structure / R&D Plan and Investment /Prioritizing R&D Units under the Mid-Term Management Plan /Participating in International Societies and Conferences / Noteworthy R&D Achievements

043

Intellectual Property
Globalization of IP Activities / Focused Area of IP Activities /Contribution to Hitachi’s Business / Reward System for Employee Inventions /Respect for IP /Anti-Counterfeit Activities / International Standardization Activities / Cultivating Human Capital

045

Brand Management
Global Brand Strategy / Evaluating Our Global Brand Strategy /Global Brand Strategy Development Structure / Improving the Global Brand /Web Management / Internal Brand Management /Evaluating the Effectiveness of Brand Initiatives /Reputation Management /Action against Infringement of the Brand Value

049

Environmental Report050

Message Shigeru Azuhata, Executive Vice President and Executive Officer

051

Environmental Activities Worldwide

053

Corporate Environmental Management Strategies and Initiatives
The Hitachi Environmental Vision / Long-Term Plan Environmental Vision 2025 /Environmental Action Plan / Preserving Ecosystems

060

Environmentally Conscious Products and Services
Increasing the Ratio of Eco-Products / Recycling Product Resources /Managing Chemical Substances Contained in Products /Participating in the Development of International Standards

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068

Environmentally Conscious Production
Creating Eco-Factories & Offices Select / Promoting Global Warming Countermeasures /Reducing Waste / Water Conservation / Chemical Substance Management /Managing Environmental Risk /Environmental Load Data Generated through Business Operations (FY 2011)077

Environmental Management Framework and Communication
Environmental Management Framework / Environmental Education /Environmental Accounting / Environmental Communication

Hitachi Group
Sustainability Report
2012

085

Social Report086

Message Shinichiro Omori, Vice President and Executive Officer;

Naoki Mitarai, Vice President and Executive Officer
087

Respect for Human Rights
Human Rights Policies / Framework for Promoting Respect for Human Rights /Raising Awareness of Human Rights / Applying Human Rights Worldwide/
Contributing to International Discussions

090

Supply Chain Management
Promoting Globalization / Sharing Procurement Policies / Building Global Partnerships /Responding to CSR Procurement Risk / Green Procurement /Response to the Conﬂict Minerals Issue

095

Diversity Management
Diversity Development Project / Employing People with Disabilities

102

Public Policy Initiatives
External Relations Policy and Promotion Structure / Strengthening of External Relations /Contributing to Public Policy on Social Infrastructure / External Relations in Europe /Stakeholder Dialogues

105

Quality Assurance and Customer Satisfaction
Quality Assurance Activities / Quality and Reliability Education /Strengthening Quality Assurance (QA) Systems in China and throughout Asia /Handling Product Accidents / Ensuring Hitachi Product Safety/ Customer Satisfaction /Universal Design

112

Communication with Shareholders and Investors
Policy on Information Disclosure / Proactive IR Approach / General Meeting of Shareholders /Hitachi as a SRI and ESG Investment / Fundamental Policy against Takeovers

115

Employee Health and Safety
Health and Safety Programs / Measures for Improving Health and Safety /Responses to Natural Disasters

118

Global Human Capital Development
Global Human Capital Management Strategy /Accelerating the Globalization of Japanese Employees / Developing Local Personnel /Reinforcing Local Management

121

Social Contribution Activities
Philosophy and Policy / Education / The Environment / Social Welfare / Hitachi's Foundations /Support for Volunteer Activities

129

Comparative Table with GRI Guidelines

139

Comparative Table with ISO 26000 Core Subjects

140

Comparative Table with the UN Global Compact

141

Policy, Vision, and Guidelines

142

Major Results Data

144

Independent Assurance

147

Inquiries

Symbol Marks Used in This Booklet† Technical terms, proper nouns, etc., in the text requiring explanation* Additional explanation of terms, etc., in tables or diagrams
WEB Indicates the title and URL of the web page related to the article. The Environmental
Report (pages 049–084) can be downloaded as a file from the website below
http://www.hitachi.com/environment/data/

Hitachi Group Sustainability Report 2012
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Sustainability Report Editorial Policy
Basic Concept
The Hitachi Group Sustainability
Report 2012 presents basic
policies, promotion systems,
measures, and key performanceindicators on each initiative in
keeping with reporting guidelines. This approach maintains
honest and transparent disclosure of information regarding
ﬁscal 2011 initiatives andHitachi’s stance in addressing
social and environmental issues
that are vital to the sustainability of corporate management
and society.

Disclosure of Financial and
Non-Financial Information
Hitachi Ltd., referring closely
to deliberations of the EU
and International Integrated
Reporting Consortium (IIRC)
about non-ﬁnancial disclosure,presents information to matchthe needs of stakeholders reading this report. While ﬁnancial
information is in the Annual
Report 2012, the Hitachi Group
Sustainability Report 2012 presents non-ﬁnancial informationand clariﬁes how sustainability
issues relate to ﬁnancial activities. Up-to-date information isavailable on the Hitachi Group’s
website.

Key Guidelines Referred to in Preparing this Report“Environmental Reporting Guidelines (FY 2012 version),” Ministry of the Environment, Japan“Environmental Reporting Guidelines 2001 – With Focus on Stakeholders,” Ministry of Economy, Trade and Industry, Japan“GRI Sustainability Reporting Guidelines (G3.1),” Global Reporting Initiatives“ISO 26000: 2010,” International Organization for Standardization
Scope of Reporting[Period] The main period covered is ﬁscal 2011 (April 1, 2011 to March 31, 2012)[Companies] Hitachi, Ltd. and 939 consolidated subsidiaries (including modiﬁed entities to which the equity method of
consolidated reporting applies): total 940 companies[Scope of data]
Financial data Hitachi, Ltd. and 939 consolidated subsidiaries (including modiﬁed entities to which the equity method of
consolidated reporting applies): total 940 companies and 183 affiliated companies that use the equity method
Social data Scope of data indicated under each item
Environmental data Hitachi, Ltd. and 939 consolidated subsidiaries (including modiﬁed entities to which the equity
method of consolidated reporting applies): total 940 companies. However, for environmental load data generated
through business operations, companies that cover 90% of the load (based on Hitachi calculations) are included.
∙ The data for each ﬁscal year indicates the results according to the scope of data in that ﬁscal year.
∙ The base ﬁscal year data has been revised in accordance with the scope of data for ﬁscal 2011.

Non-Financial Information Reports

Hitachi Group
Sustainability Report 2012
V A L U E

C R E A T I O N

F O RS U S T A I N A B L EAS O C I E T Y

WEB CSR (Corporate Social
Responsibility)
http://www.hitachi.com/csr/index.html

WEB Environmental Activities
http://www.hitachi.com/environment/
index.html

Hitachi Group
Sustainability Report
2012
WEB Global Community Relations andActivities (Social Contribution Activities)
http://www.hitachi.com/csr/sc/index.html

Financial Information Reports

Annual Repor t 2012
Year ended March 31, 2012

D Y N A M I C
T R A N S F O R M A T I O N
G L O B A L

F O RAnnual Report 2012

Third-Party Assessments
To enhance the credibility ofthis report, we commissioned
third-party assessments ofenvironmental, management,
and social performances in ﬁscal
2011. Bureau Veritas Japan Co.,
Ltd. assessed environmental
performance. Ernst & Young
Sustainability Co., Ltd., veriﬁed
management and social performance based on International
Standard on Assurance Engagement (ISAE) 3000.

WEB Investor Relations
http://www.hitachi.com/IR-e/index.html

G R O W T H

Note: We also disclose ﬁnancial information on Hitachi, Ltd. in the Reporton the 143rd Business Term and the Annual Securities Report

External Evaluations
We were selected in September 2011 for the Dow
Jones Sustainability World Indexes (DJSI World), oneof the world’s leading sustainability investment fundindexes. We were also awarded the Silver Class in the
Sustainable Asset Management (SAM) Sustainability
Yearbook 2012 (January 2012 issue).

Initiatives That We Participate in
We have been a member of the United
Nations Global Compact since February2009.

We have been a member of the World Business Council
for Sustainable Development (WBCSD) since 1995.

Received Excellent Award of the 15th Sustainability
Report Award

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Report MediaThis report is a combination of
the Hitachi Group Corporate
Sustainability Report and the
Hitachi Group Environmental
Sustainability Report, which we
published until ﬁscal 2010. We
published the Hitachi Group
Sustainability Report 2012,
which emphasizes comprehensiveness and searchability of
information based on management transparency, as a PDF ﬁle(A4, 149 pages) and the HitachiGroup Sustainability Report
2012 Digest, a summary ofpolicies, areas of special social
interest, and reports on key
management issues, as a booklet (A4, 24 pages). Our website
also reports on detailed activity,
as well as news releases andother up-to-date information.

PDF

Latest information
Reports on detailed activities

Reports on material issues
PDF

BookletHitachi Group
Sustainability
Report 2012

Hitachi Group
Sustainability Report
2012 Digest

Reports on Detailed Activities
Hitachi Group Sustainability Report

BookletHitachi, Ltd.
websiteWeb

CSR (Corporate Social
Responsibility)
Environmental Activities
Global Community Relations
and Activities (Social
Contribution Activities)

Reports on Material Issues
Hitachi Group Sustainability Report Digest

Sustainability Report Editorial Policy
Hitachi Group Proﬁle
Top Commitment

Hitachi Group Proﬁle
Top Commitment
Management Strategies and CSR

Hitachi’s Management Strategies and CSR
2012 Mid-Term Management Plan / 2012 Mid-Term Management Plan
Key Management Policies and Related CSR Activities / Material Issues for
HitachiFEATURE
Relationships Drive a Sustainable Society — Lessons from the Great East
Japan EarthquakeFEATURE
Relationships Drive a Sustainable Society — Lessons from the Great East
Japan Earthquake
Management Report
Message from the Executive Officer for Management Audits / Corporate
Governance / CSR Management / Risk Management / Compliance / Innovation Management / Intellectual Property / Brand Management
Environmental Report
Message from the Executive Officer for Environmental Strategy / Environmental Activities Worldwide / Corporate Environmental Management
Strategies and Initiatives / Environmentally Conscious Products andServices / Environmentally Conscious Production / Environmental Management Framework and Communication
Social Report
Message from Executive Officer for Procurement / Message from Executive
Officer for Human Capital Group / Respect for Human Rights / Supply Chain
Management / Diversity Management / Public Policy Initiatives / Quality
Assurance and Customer Satisfaction / Communication with Shareholders and Investors / Employee Health and Safety / Global Human Capital
Development / Social Contribution Activities

Caring for the Environment / Respect for Human Rights / Supply Chain
Management / Diversity Management and Human Capital Strategy /Public Policy Initiatives

Web

Latest information
Major CSR (Corporate Social Responsibility)
Content on the Website

The CSR website has a full PDF version with details on our activities andthe following content. The Environmental Activities website reports onenvironmental protection initiatives. The Global Community Relations andActivities website discloses social contribution activities.
Contents Disclosed in Full Solely on the Website
Hitachi’s CSR Principles: Vision and Policies
Highlights: Spotlighting 2005 through 2011
Innovation management
Quality assurance activities
Employee health and safety
WelfareSupplementary data for Environmental ReportComparative Table with GRI Guidelines / Comparative Table with ISO
26000 Core Subjects / Comparative Table with the UN Global Compact /Policy, Vision, and Guidelines / Major Results Data / Independent Assurance

Hitachi Group Sustainability Report 2012
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Hitachi Group ProﬁleCompany Proﬁle (as of March 31, 2012)
Corporate Name Hitachi, Ltd.
Incorporated
February 1, 1920 (founded in 1910)
Head Office
1-6-6 Marunouchi, Chiyoda-ku,
Tokyo 100-8280, Japan
Representative Hiroaki Nakanishi, Representative
Executive Officer and President

Capital427,775 million yen
Number of employees (unconsolidated basis)
32,908
Number of employees (consolidated basis)323,540
Number of consolidated subsidiaries
939(Japan: 340, outside of Japan: 599)
Number of equity-method affiliates
183(Japan: 78, outside of Japan: 105)

Consolidated Business Overview and Results for Fiscal 2011
Revenues
9,665.8 billion yen (up 4% year-over-year)
Operating income
412.2 billion yen (down 7%)
Capital investment
649.2 billion yen (up 17%)
R&D expenditures
412.5 billion yen (up 4%)
Overseas output as a percentage
of consolidated net sales
26%

Revenues and Operating Income
Revenues(billions of yen)
12,000

Revenues
Operating income

11,226.7
10,000.3

10,0009,315.8

8,968.5

9,665.8

8,000

2,000

127.1

0

North America 869.0 (9%)
Number of companies: 75
Number of employees: 14,539

2008

412.2

202.1

2009

400
200

2010

2011
(FY)

0

Revenues by Industry Segment (billions of yen)
Others
951.6 (9%)

Others 500.2 (5%)
Number of companies: 60
Number of employees: 7,555

Europe 761.1 (8%)
Number of companies: 142
Number of employees: 10,783

2007

600

444.5

345.5

4,000

Information &Telecommunication Systems
1,764.2 (16%)

Financial Services
353.2 (3%)

Asia 2,000.9 (21%)
Number of companies: 322
Number of employees: 78,361

1,000
800

6,000

Revenues by Geographic Area (billions of yen)

Operating income(billions of yen)
1,200

Digital Media & Consumer Products
858.8 (8%)
Components & Devices
768.0 (7%)

Total Revenues byGeographic Area
9,665.8 billion yen

Automotive Systems
811.5 (8%)

Japan 5,534.4 (57%)
Number of companies: 340
Number of employees: 212,302

High Functional Materials& Components
1,437.1 (13%)

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Subtotal of Total Revenues
10,882.7 billion yen
Total Consolidated
Revenues
9,665.8 billion yen

Construction
Machinery798.7 (7%)

Power Systems
832.4 (8%)

Social Infrastructure &Industrial Systems
1,204.9 (11%)

Electronic Systems & Equipment
1,101.7 (10%)

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

Enterprise storage platform*

Power Systems

Social Infrastructure & Industrial Systems

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

Industrial machinery and plants, elevators,
escalators, railway vehicles and systems
Hitachi Industrial Equipment Systems Co.,
Ltd., Hitachi Elevator (China) Co., Ltd., Hitachi
Building Systems Co., Ltd., Hitachi Plant
Technologies, Ltd.
Ultra supercritical pressure coalﬁred power plant*

Electronic Systems & Equipment
Semiconductor and LCDs’ manufacturing
equipment, test and measurement
equipment, medical electronics equipment,
power tools, electronic parts processing
equipment
Hitachi High-Technologies Corporation,
Hitachi Koki Co., Ltd., Hitachi Kokusai
Electric Inc., Hitachi Medical Corporation,
Hitachi Via Mechanics, Ltd.

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

Hitachi High-Technologies’ FieldEmission Scanning Electron
MicroscopeHigh Functional Materials & Components
Wires and cables, copper products,
semiconductor and display-relatedmaterials, circuit boards and materials,
specialty steels, magnetic materials
and components, high-grade casting
components and materials
Hitachi Cable, Ltd., Hitachi Chemical Co.,
Ltd., Hitachi Metals, Ltd.

Hitachi Plant Technologies’
Reverse osmosis desalination
systemHitachi Construction Machinery’s
land mine removal excavator

Automotive Systems
Engine management systems, electric
powertrain systems, drive control systems,
car information systems
Clarion Co., Ltd., Hitachi Automotive
systems, Ltd., Hitachi Automotive Systems
Americas, Inc.
Hitachi Automotive Systems’
electrically controlled brake

Hitachi Metals’ NEOMAX
neodymium sintered magnet

Components & Devices

Digital Media & Consumer Products

Information storage media, batteries
Hitachi Maxell, Ltd., Hitachi Maxell Energy,
Ltd.

Hitachi Maxell Energy’s prismaticlithium-ion rechargeable
batteries featuring thin type andhigh capacity

Financial Services

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

Hitachi Appliances’ Big Drum frontloading washer-dryer featuring heatrecycling and air iron

Others

Leasing, loan guarantees
Hitachi Capital Corporation

Hitachi Capital’s multifunctional
IC card

Logistics, property management
Chuo Shoji, Ltd., Hitachi Life, Ltd., Hitachi
Transport System, Ltd., Hitachi America,
Ltd., Hitachi Asia Ltd., Hitachi (China) Ltd.,
Hitachi Europe Ltd., Hitachi India Pvt. Ltd.
Hitachi Transport System’s Keihin
Distribution Center

Major Products & Services
Major Consolidated Subsidiaries (as of March 31, 2012). Products marked with an asterisk (*) in the table above are those of Hitachi, Ltd.
(Notes.) 1. Hitachi Systems, Ltd. was formed on October 1, 2011, through the merger of Hitachi Electronics Services Co., Ltd., and Hitachi Information Systems.
2. As of April 1, 2012, Japan AE Power Systems Corporation was dissolved, with power transmission and distribution operations transferring to the former joint venture’s threepartners.
3. Hitachi Displays, Ltd., Hitachi Display Device (Suzhou) Co., Ltd., its consolidated subsidiary, and Viviti Technologies Ltd., which were part of the Component & Devices segment,
were removed from consolidation in March 2012 following share divestments.
4. Hitachi Maxell Energy, Ltd., took over the battery systems business of Hitachi Maxell, Ltd., following a company split as of April 1, 2011.
5. Chuo Shoji, Ltd., was renamed Hitachi Urban Investment Ltd. as of April 1, 2012.
6. As of April 1, 2012, the Company abolished the Component & Devices segment as part of a reclassiﬁcation, integrating it with “Others” segment.
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TO P CO MMITMENT

Message from Management

Contributing to a Sustainable Society
as a Good Corporate Citizen

Realizing a Sustainable Society
In 2011 we faced many natural disasters, fromthe Great East Japan Earthquake to the floodingin Thailand and then the earthquakes in Turkey.
Hitachi City in Ibaraki Prefecture (northeast ofTokyo), Hitachi’s birthplace, was among the areas
heavily impacted by the March 11 quake, andour operations were damaged by the Thai floods.
Despite these setbacks, along with the accompanying disruption to our global supply chain, we
achieved solid business results. Our consolidated
fi scal 2011 statements showed record net income forthe second consecutive year. I would like to again
thank the many people who made this possible; we
owe our success to all stakeholders. Through lastyear’s experiences, we gained new awareness of theimportance of partnerships. In an age of diverse
values and rapid change, creating business withpartners is a true driver of growth. By thinking
deeply about what societies need and by cooperating with our partners, we aim for growth leading
to a new stage. At the same time, we continue
to foster mutual understanding with stakeholders around the world—customers, suppliers, andnational governments, as well as NGOs and other

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007policy and business influencers—as we help toresolve social issues throughout the world over the
medium to long term.

Finding the Best Energy Mix for a Safe,
Secure Society
The Fukushima Daiichi Nuclear Power Plant accident stirred worldwide discussions about appropriate energy sources. A stable and sustainable energy
supply is essential for building and maintaining
a safe, secure society. To prevent global warming,
we need to choose power sources that are ecoconscious and optimal for a sustainable society.
Given these circumstances, I believe Hitachi must
work to overcome problems, including populationpressure and limited natural resources. We mustalso weigh the strengths and weaknesses of eachtechnology and build a consensus in each country
to fi nd optimal power sources toward realizing
the best energy mix. For this reason, and to fi nd a
stable energy supply, we propose a range of options,
including nuclear, thermal, and renewable energy,
while we innovate in ways that help to prevent
global warming.

Being a Good Global Corporate Citizen
Our business climate is changing: rapid globalization is leading to economic disparities all over
the world; environmental issues such as climatechange continue to be pressing; and awarenessof the interplay between business and humanrights is becoming much more important and relevant. The United Nations Conference on Sustainable Development (Rio+20)† has asked companies
to make broad contributions to society, mainly
through corporate activities, with an eye not only

on the environment but on issues such as poverty
alleviation and human rights.
Hitachi, since signing the United Nations Global Compact in 2009, has worked hard to become
a global corporation with quality management.
I believe that the essence of CSR is the quality of
our management coupled with sustainable competitive strength. For Hitachi, CSR is the core ofmanagement because we must now work on social problems beyond environmental issues, including adopting the UN’s framework for humanrights. We intend to be a corporation that createsboth social and economic value at the same time,
while earning lasting trust as a good global corporate citizen.
Since our founding, we have helped build social infrastructures in Japan and worldwide torealize a safe, secure society. Drawing on morethan a century of experience, we are committed
to making further contributions for a sustainable
society. We will do this through business creationin cooperation with partners across the globe, or“collaborative creation,” centered on our Social
Innovation Business.
† United Nations Conference on Sustainable Development:
A meeting of world leaders in Rio de Janeiro, Brazil, in June 2012, discussing
ways to address economic, social, and environmental issues over the next ten
years. Coming 20 years after the United Nations Conference on Environmentand Development (Earth Summit) of 1992—and held in the same city—thisconference has been called Rio+20 because it takes stock of the progress sincethen.

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Hiroaki Nakanishi
President, Hitachi, Ltd.

008

V I S IONManagement Strategies and CSR
Transforming into a truly global enterprise, we share society’s values and pursue
sustainable growth by integrating management strategies and CSR. Our challenge
is to achieve our 2012 Mid-Term Management Plan and CSR to create both socialand economic value.
For us, CSR is about making our Corporate Credo
and Group Vision a reality. Based on Hitachi’s
Founding Spirit, our Group Vision guides our
purpose as a business to contribute to resolving
the issues in the UN Millennium Development
Goals—poverty and hunger, inequality of primaryeducation, disease and environmental problems—
and to realize a safe, secure, comfortable society.
Also, the Hitachi Group Codes of Conduct help
us maintain a high level of public trust, and we
make sure that these are known to our employees
worldwide.
To develop global operations focussed on Social
Innovation Business, we created the 2012 MidTerm Management Plan in ﬁscal 2010. We workwith customers and partners to create value thatwill last for generations, based on our mission asa manufacturer. We strive to reﬂect our Mid-Term
Management Plan’s challenges, identiﬁed throughmateriality analysis, in our CSR activities.
Through these activities, we integratemanagement strategies and CSR and create bothsocial and enterprise value to realize sustainable
management and a sustainable society.

Corporate Credo
Adopted June 1983

WEB

http://www.hitachi.com/about/vision/credo/

Hitachi Group Vision
We will contribute to solving fundamental
global issues, and pursue the realizationof a better, more prosperous global
society, in line with Hitachi’s Founding
Spirit, utilizing the Group’s knowledge
and technology.
Adopted November 2006

Hitachi Group Codes of Conduct
Adopted August 2010WEB

http://www.hitachi.com/about/vision/conduct/

The Five-Year CSR Roadmap
In ﬁscal 2010, we created the Five-Year CSR
Roadmap, a medium-term plan for CSR. The goal
is to use this roadmap to reinforce the foundationof the management, resolve fundamental global
issues, and demonstrate leadership in becoming atruly global enterprise.

The Five-Year CSR Roadmap

Demonstrate leadership as a Social
Innovation enterprise

Collaborate with key stakeholders to resolve global social issues

Becoming atruly global
corporation, or
One Hitachi

Integrate management strategies with CSR and instill CSR principles in operations

Reinforce Group governance and globalize operations and activities
April 2010

April 2011

April 2012

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April 2013009

April 2014

VI S I ON

Management Strategies and CSR

2012 Mid-Term Management Plan
Management Goals and Forecasts for the Final Fiscal YearWe created the 2012 Mid-Term Management Plan inﬁscal 2010. Regarding the forecasts for ﬁscal 2012,
although revenues will not reach the target due
to our sale of the HDD and small-to-medium LCD
Fiscal 2011
Results
Revenues
Operatingincome ratio¥9,665.8 billion

Fiscal 2012
Forecasts

Fiscal 2012
Targets¥9,100 billion ¥10,000 billion
5.3%

Over 5%

Net income
attributable to
Hitachi, Ltd.

¥347.1 billion¥200 billion

Consistently
generate
at least¥200 billion

Debt-to-equity
ratio*

0.86 times

0.80 times

0.8 times
or below

Total Hitachi, Ltd.
stockholders’equity ratio

18.8%

20.0%

20%

*Including the non-controlling interest and liabilities associated with the consolidationof securitized entities

WEB Progress of 2012 Mid-Term Management Plan
http://www.hitachi.com/New/cnews/120510a.html

Forecast Revenue Ratio and Percentage of
Employees outside Japan
Fiscal 2010
Results*
Outside Japanrevenue ratio
Employee composition

4.3%

businesses, other targets, such as operating margin
ratio, net income attributable to Hitachi Ltd., debtto-equity and total Hitachi, Ltd. shareholders’ equity
ratios, are expected to be achieved.

Fiscal 2011
Results

Fiscal 2012
Forecasts

41%

43%

43%

Employees inJapan

212,000

212,000

212,000

Employees
outside Japan(percentage)

100,000 (32%)

111,000 (34%)

125,000 (37%)

312,000

323,500

337,000

Total*Includes impact of sale of small-to-medium LCD and HDD businesses

Social Innovation Business Strategy
A year after the Great East Japan Earthquake, there
is a strong need for building disaster-resistant cities,
establishing a robust IT infra-structure, ensuring
power, and accelerating the diversiﬁcation of powersources. The ﬂooding in Thailand also highlighted
the need to manage risk, maintain data centersand other infrastructure, and to build a better parts
supply and production system.
To help develop a sustainable social
infrastructure, we will expand our Social
Innovation Business by focusing on “Global”,“Fusion” and “Environment”.
Speciﬁc strategies:
1. Expand smart city business globally by using ourdemonstration models
2. Pursue global growth in infrastructure systems in

response to market needs
3. Expand information telecommunications
business globally using Big Data technologies
4. Accelerate global business expansion for powersystems
In April 2012, we reorganized in-housecompanies and Group companies into ﬁve groups.
By integrating IT and Social Infrastructure based onmarket needs, we will accelerate the creation of new
businesses, technologies, and services in important
growth regions and industries.

Social Innovation Business Framework
Industrial, Transportation and
Urban Development Systems∙ Eco-cities∙ Water treatment∙ Construction machinery∙ Elevators and escalators

Three Focuses of Social Innovation Business
GlobalLeverage the Group’s knowhow and experience, as well as the trustof our regional customers and partners, to become a truly global
enterprise.
FusionAddress every nation’s need for Social Innovation Business by integrating
our social infrastructure and IT expertise to produce unique value.
Environment
Draw on a wide range of environmental technologies and accumulated
experience to build better environmental systems, helping to resolve
global environmental issues.

Information andTelecommunication
Systems∙ Cloud computing∙ Consulting∙ Data centers∙ Storage

Hitachi Group Sustainability Report 2012
http://www.hitachi.com/csr/∙ Green mobility∙ Healthcare∙ Smart grids＋
Materials and key devices

010

Power Systems∙ Energy (thermal, nuclear,and renewable)

VI S I ON

Management Strategies and CSR

2012 Mid-Term Management Plan: Key Management Policies andRelated CSR Activities
CSR activities are playing a crucial role in achieving 2012 Mid-Term Management Plan goals. For our key
management policies in particular, we will need to promote CSR activities and strategies related to Hitachi
material issues (see page 012).
Material Issues for Hitachi

2012 Mid-Term Management Plan
Key Management Policies

CSR Initiatives and ResultsPage(s)Supply Chain Management

I. Strengthen Management Base
(1) Cost structure reforms∙ Execute the Hitachi Smart
Transformation Project(2) Strengthen financial position∙ Boost proﬁtability and reinforce
ﬁnancial position∙ Focus management resources

Promotion of the Hitachi Smart Transformation Project*
Expand rate of procurement outside JapanFY 201036%

pp. 024–025
Corporate Governancep. 092
Supply Chain Management

FY 201138%

Products That Create a Sustainable Society (Sustainable Business)
Focused R&D investment in Social Innovation Business
FY 2010

FY 2011¥230 billion¥200 billion

p. 038Innovation Management

Diversity Management
Participation in Global Fundamental Course

II. Global Growth Strategies(1) Expand investment in key regions∙ Globalize corporate functions andpromote China Business Strategy 2015
∙ Expand business in ASEAN as a new
key region and start up business in
Myanmar(2) Optimize use of human resources andincrease efficiency∙ Pursue global human resource
strategies∙ Launch Global Management Human
Resources Development and Allocation
Program in Fiscal 2012(3) Strengthen global governance∙ Strengthen response to globalized
management and supervisory
functions(4) Value creation and CSR∙ Pursue contributions to theenvironment and regional social
contribution activities∙ Respect human rights and implement
stakeholder dialogues

FY 2011
Total participants: 139 people

Trend in the number of non-Japanese employees
FY 2010

FY 2011230 people

239 people

pp. 120–122
Global Human Capital
Development

Number of young employees given experience outside JapanFY 2011–2012 PlanFY 20112,000 people

1,064 people
Caring for the Global Environment

FY 2010

FY 2011 (estimate)

FY 2015 target

15.51 million tonnes

18.09 million tonnes

35 million tonnes

pp. 053–054
Corporate Environmental
Management Strategies andInitiatives

FY 2015 target88%

pp. 060–064
Environmentally Conscious
Products and Services

Contributions to CO2 emission reduction

Trend in the Eco-Product sales ratio
FY 201078%

FY 201180%

Respect for Human Rights
Implementing human rights e-learning in Europe*
FY 2011
Provided to approx. 10,000 employees

p. 090Respect for Human Rights

Public Policy Initiatives
Implementation of stakeholder dialogues*
FY 2011
Held in three regions: Brazil, Indonesia, and Belgium

pp. 105–106
Public Policy Initiatives[*Non-quantitative activities]
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VI S I ON

Management Strategies and CSR

Material Issues for Hitachi
Hitachi includes the participation of stakeholders in the decision-making process for CSR activities andstrategies. We engage in stakeholder dialogues worldwide to identify social and environmental issues,
conducting assessments and veriﬁcations from the perspectives of stakeholder materiality and the impact
on management. We report on these key issues in the Hitachi Group Sustainability Report Digest.

1. Products That Create a Sustainable
Society (Sustainable Business)

4. Respect for Human Rights
As a global enterprise, we face risks because we operate under
different national laws, cultures and business practices. We respect
the laws and ordinances of every country, and we act with respect forinternational norms to prevent human rights violations.

Developing innovative technologies and products is vital to growing
our business and realizing a sustainable society. We are developing
products that both lower environmental burden and improve thequality of life so that we can contribute to a prosperous, safe, andsecure society.

5. Supply Chain Management
Supply chain risks are gradually increasing with the globalizationof business, especially for the environment and human rights. We
openly share our procurement policies with suppliers, and we reduce
supply chain risk through ongoing surveys of CSR practices with our
suppliers.

2. Protecting the Environment
We feel that we can help protect the environment by reducing theenvironmental burden of products throughout their life cycle. We
have created our Environmental Vision with three pillars: preventionof global warming, conservation of resources, and preservation of
ecosystems. Under this vision, we provide environmentally conscious
products and services by reducing the environmental burden fromoperations and improving their energy efficiency.

6. Diversity Management
We believe that diversity is much more than the human rights issueof gender equality. It is a fundamental challenge for sustainable
management, generating synergies beyond the Hitachi Group, business ﬁelds, and globalization. We therefore have initiated worldwide
programs that maintain personnel systems while respecting diversity,
by improving workplace environments, and by cultivating humancapital that can accelerate the globalization of Hitachi and contributeto market-based sustainability needs.

3. Public Policy Initiatives
Our Social Innovation Business is subject to the policies of national
governments, therefore we assess policy trends while engaging
in dialogue with stakeholders who inﬂuence public policy andregulations. As a result, we can propose technologies and solutions
that both beneﬁt society and contribute to better policies.

Material Issues for Hitachi

3. Public policy initiatives
1. Products that create asustainable society(sustainable business)
6. Diversity management
4. Respect for human rights

Importance for stakeholders

5. Supply chain management

2. a. Environmental burden
reductions from operations

2. b. Making energy-efficient
products

Inﬂuence on businessSelection Process for Material Issues
We evaluate and verify issues identiﬁed through stakeholder dialogues with international organizations, and we identify sustainability issues in public policy trends from thestandpoints of importance for stakeholders and the inﬂuence on business. The importance for stakeholders includes human rights, international development, the environment,
reporting, ethics, and regional and international requirements. The inﬂuences on business are assessed from the perspectives of the global, fusion, and environmental focuses ofour 2012 Mid-Term Management Plan, as well as the perspectives of innovation, risk, reputation, and cost effectiveness. The digest of this report presents these important issues inthe two assessment areas.

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F E A T U R E

Relationships Drive a
Sustainable Society
Lessons from the Great East Japan Earthquake
14:46, March 11, 2011
Eastern Japan was struck by a catastrophic earthquake and tsunami, an unparalleled disaster thatcaused widespread damage and severe problems. During this critical time, at Hitachi we used ourexpertise in power generation, waterworks, communications systems, and other social infrastructure—working with our stakeholders—to overcome many obstacles.
Sendai’s Minami-Gamo Puriﬁcation Center, handling the sewage treatment essential for urban
living, suffered considerable damage from the tsunami. The strong sense of social responsibility shared by both Hitachi, the center, and a customer enabled us to quickly restore equipment
and systems. Similarly, the generous support extended to us by our suppliers reﬂected the deep
mutual understanding and trust we have developed through sharing information and challenges
and through resolving problems together. These solid relationships meant that Hitachi could act
together with Kita-Nippon Bank and other customers affected by the earthquake and tsunami inways that in some cases went beyond the scope of contracts and rules, using wide-ranging networks to ﬁnd solutions.
Another critical issue was to heal the deep emotional scars left by the disaster. We used ourpeople-centered methods to collaborate with Sendai City to survey evacuation centers, identify
issues, and propose solutions. We also provided volunteer support for our own employees’ urgent
needs. By sharing the lessons learned from the disaster with stakeholders, we will continue to
use energy technologies and other elements of our Social Infrastructure Business to help build asustainable society.

Protecting Lives
With Customers: Minami-Gamo Puriﬁcation Center

Kita-Nippon Bank
M7.3

March 11, 2011
15:08

Sendai City Hall

M9.0

Minami-Gamo
Puriﬁcation Center

March 11, 2011
14:46

Hitachi Industrial
Cooperative
M7.3

Tokyo

March 11, 2011
15:15

On March 11, an earthquake off northeasternJapan, as well as aftershocks and tsunami,
caused massive damageon the Paciﬁc coast fromTohoku to Kanto.

The Minami-Gamo Puriﬁcation Center, treating
wastewater for 700,000 people in Sendai, had severetsunami damage. Sharing a sense of responsibility
for this key infrastructure, we helped to restore emergency systems.

Rapid Makeshift Restoration Keeps City
Functioning
The Minami-Gamo Puriﬁcation Center in Sendai,
the biggest wastewater treatment plant in northeastern Japan, processes sewage and gray water for
700,000 people. The tsunami caused massive damage to many treatment plants on the coast.
The loss of water puriﬁcation, among the mostimportant urban systems, seriously impacted daily
life. Center director Keiji Ishikawa recalls that when

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013

At the Minami-Gamo Puriﬁcation
CenterFrom left: Masatomi Yamakawa,
Foreman, Minami-Gamo Puriﬁcation
Center, Waterworks Division,
Construction Bureau, Sendai
City; Hiroshi Kawahara, same;
Keiji Ishikawa, Director, MinamiGamo Puriﬁcation Center; Masaru
Mizuhara, Director, Social Solutions
Group, Electrical Equipment Systems
Division, Tohoku Area Operation,
Hitachi, Ltd.

The tsunami wreaked pipes, wastewater intake equipment, pumping
towers, machinery, and electrical equipment. Much equipment wasdestroyed.

the disaster struck they were working on a business
continuity plan (BCP) and reviewing cooperation.
“We lost communications with most engineering companies, but by midnight Hitachi and othercompanies went to City Hall to offer their help.”
Immediately after the tsunami, sluice gates wereopened to prevent ﬂow back into the city. “Somenearby towns limited sewage to prevent backﬂow.
In Sendai, the strong sense of duty and hard workof our staff and cooperating companies prevented
backﬂow,” says Ishikawa. “Working with Hitachi
and other partners early on to assess the damage
really sped up restoration.”
Creating an equipment restoration plan camenext. Blueprints and office equipment had been
washed away, and debris ﬁlled the buildings. Hitachi
engineers worked with center staff under trying
conditions to check equipment, write a detailed report, and develop a recovery plan.

Going Global Based on Experience
Gained from the DisasterSewage treatment began just after the disaster,followed in March 2012 by medium-level microorganism treatment to improve water quality.
We restored an ultra-high voltage substation andsludge incineration equipment. We will help withfull restoration in 2015.
“Last year, 159 groups and 2,000 people cameto visit,” notes Ishikawa, “probably the last time asewage plant of 400,000 tonnes per day for 700,000
will be rebuilt in Japan, but many world cities needlarge-scale processing, as well as areas with poor
sanitation. It would be great if Hitachi uses their experience globally gained from restoring our centerto combine solar power and energy efficiency.”
Our Social Infrastructure Business covers waterand other urban systems. With a strong social
responsibility, we develop technologies and gain
experience for safe, comfortable living.

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F E A T U R E

Relationships Drive a Sustainable Society
At the Midorigaoka Branch of KitaNippon Bank
From left: Takahiro Chubachi, Iwate
Branch, Tohoku Area Operation,
Hitachi, Ltd.; Shinichi Kudo, AssistantManager, Systems Control Group,
Business Systems Division, KitaNippon Bank; Yoshinori Takahashi,Manager, Business Systems Division,
Kita-Nippon Bank; Masahiro
Nakaochi, Service Head Office,Tohoku Regional Office, Hitachi
Systems, Ltd.
We received a letter of thanksfrom Kita-Nippon Bank for our
support after the Great East Japan
Earthquake.

Financial Systems Support Communities
With Customers: Kita-Nippon Bank

Kita-Nippon Bank, supporting communities in the Tohoku region andelsewhere, had many branches damaged by the tsunami. We used ournationwide network to quickly ﬁnd office terminals and get ATMs into
temporary facilities, assisting with their recovery.

Helping Restore Damaged ATMs andTerminals
Kita-Nippon Bank in Iwate operates in Tokyo and in
Tohoku (except Yamagata). The nine branches on
the coast had major tsunami damage.
Since 2008, this bank has been using the Hitachisystems solution NEXTBASE.* We recovered ATMs
that had been swept away and contacted otherbanks that use NEXTBASE, arranging for officeterminals to be brought in. We provided support
in response to requests that included putting ATMs
into temporary branch offices, installing new ATMs,
and providing computers.
Yoshinori Takahashi from Kita-Nippon Bank
said that we went between banks and handled
everything from contracts to opening temporary
offices. He said, “Hitachi acted as though it wasnothing special, just a natural extension of a strong
relationship built up over time.” “Key data wassaved because the center with the host computers* NEXTBASE: A joint outsourcing service that provides base systems suchas accounting and host systems for regional ﬁnancial institutions

wasn’t in Tohoku, allowing for a speedy recovery,”added Shinichi Kudo.

Developing Disaster-Resistant Information Systems
Catastrophes like the Great East Japan Earthquake
make it hard for banks to quickly recover. “If Hitachi
could devise ways for banks to lend among themselves in an emergency, it would really help during
disasters,” suggests Yoshiyuki Sato from Kita-Nippon
Bank. We will always live up to the trust of our customers by using our technologies and networks tosupport local communities.

The tsunami devastated the Takata
Branch, sweeping away the building
front and ATMs.

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015

The tsunami caused major damage
to 20 ATMs. Engineers tackled tasks
such as repairing ATMs with casedamage.

F E A T U R E

Relationships Drive a Sustainable Society

Taking on the World with Strong Partnerships
With Suppliers: Hitachi Industrial Cooperative

The swift recovery of the damaged Hitachi Works in Hitachi City was
underpinned by support from many of our suppliers. The strong partnerships with suppliers that come from sharing information, challenges, and the same dedication was critical during the disaster.

Hitachi Works after the disaster. Many Group factories
were damaged.

At the Hitachi Works
Yasunobu Komine, Presidentof Komine Corporation andActing Director Hitachi Industrial
Cooperative (right); Toshio Shimizu,
General Manager Procurement
and Sourcing Dept., Power Systems
Company, Hitachi, Ltd.

Partnerships Shine during Disaster
Recovery

Growing Together by Sharing Information and Challenges

The Great East Japan Earthquake and tsunami devastated buildings, cranes, machine tools, and otherequipment at the Hitachi Works in Hitachi City,
Ibaraki Prefecture. By the end of March—less thana month later—production was almost completely
restored. This quick recovery was due in part to the
Hitachi Industrial Cooperative.*
Made up of Hitachi Group suppliers, the Cooperative has linked Hitachi and small and mediumsized local companies since being founded in 1949.
Immediately after the disaster, Cooperative members shared information on damages and supported the restoration of Hitachi Works. For example,
when workers couldn’t enter damaged buildings,
Yasunobu Komine recalls how member companies
lent us workspace and tools to reduce the impact
on our customers as much as possible. Support
from the Hitachi Industrial Cooperative and manyother suppliers was vital for our rapid restorationof operations.

“Cooperative members know they are contributing
to society through their involvement in Hitachi’s operations, focused on the Social Innovation Business,”
explains Komine. “At regular brieﬁngs, we share information on markets and technology. Responding
to Hitachi’s requirements helps us to develop.”“Interaction, such as information exchanges,
allows the Hitachi Group and suppliers to meetchallenges, like globalization, together,” says Toshio
Shimizu. Study groups discuss globalization and
BCPs. In June 2012, Hitachi coordinated a trip to
China for 14 companies. The strong supplier partnerships create a sense of purpose, information, andchallenge. For tough competition in global markets,
we will deepen those partnerships and support ourpartners’ globalization as we grow together.
*Hitachi Industrial Cooperative: 37 suppliers (March 2011) withcommittees on canning, electrical products, and machinery raw
materials, with joint order receipts, purchasing, low-interest loan
promotion, and insurance.

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F E A T U R E

Relationships Drive a Sustainable Society

Supporting Disaster-Resistant Cities
With Government: Sendai City Hall

Broken utilities and transportation systems forced more than
100,000 into Sendai’s evacuation centers. We used our peoplecentered techniques to survey and analyze these centers,
highlighting challenges and urgent needs, while proposing
solutions.

Joint Evacuation Center Survey with
Sendai City
In Sendai, the disaster took 872 lives, while thetsunami damaged or destroyed more than 8,000
homes. Local government authorities opened
evacuation centers, even though City Hall wasundamaged.
Hirohito Kojima from Sendai City’s Disaster
Reconstruction Headquarters says, “When considering recovery and disaster prevention plansin the future, Sendai City and local government
authorities around the country ﬁrst want to know
about conditions in evacuation centers: Whatwould happen there, and what issues might arise?”
After the disaster, many companies offered help,
and Sendai City asked Hitachi to jointly survey theevacuation centers. “We wanted to assess the challenges together with a global company like Hitachiin the hope that they might develop technologies

and widely spread the information gained,” notes
Kojima. This was the ﬁrst joint disaster survey in
Sendai conducted by government authorities anda company. The survey team went into evacuation
centers in August and September 2011.

Unique Hitachi Methods Supporting“Soft” Disaster Recovery
We used the experience-based Ex-Approach* forthe survey, interviewing 27 people in seven shelters on items such as nearness to transportation
or devastated areas. For easy analysis, events andproblems were arranged chronologically fromwhen the earthquake occurred to closing the centers. The survey showed life in evacuation centersmoving through three phases: “gathering,” “living,”and “leaving.” We then held two workshops with
Sendai City to assess the key issues, later developing disaster prevention and mitigation proposals,

Hitachi Group Sustainability Report 2012
http://www.hitachi.com/csr/

From left: Atsushi Okawa, Disaster
Reconstruction Office, Sendai
City; Hirohito Kojima, (then-) Vice
Director, Disaster Reconstruction
Headquarters, Sendai City; Nobuaki
Takahashi, Information Systems
Sales Dept. 2, Tohoku Area
Operation, Hitachi, Ltd.

017

Supporting Employees’ Volunteer
Work for Disaster Recovery
We hold seminars and workshops to respond to the needs of employees volunteering their support for disaster areas and victims.
We will continue to support our employees’ volunteer work.

At a workshop at the City Hall, events and victims, then issues from the time of theearthquake to evacuation center closure were drawn from City Hall staff’s daily
reports and accounts of interviews with disaster victims then arranged chronologically for analysis and identiﬁcation of issues, together with those staff members.

including clustering evacuation centers in communities and using information systems to gather andcollate information.
“In government, we tend to focus on the ‘living’ phase of operations, but the survey gave us abigger picture. We will need similar cooperationfrom companies in the future,” Hirohito Kojima
commented. Atsushi Okawa, also from Sendai City,
praised the impartial way issues were identiﬁed.

Using People-Centered Technology as aPartner of Government
Sendai City is improving its disaster mitigationand energy policies to become a ”disaster-resistant,environmental city on a new level.” Another aim
is to strengthen “civilian power” by intensifying
collaborations with companies and people’s ability
for self-help. Hirohito Kojima notes, “Sendai’s mission is to create a disaster-resistant model throughthe lessons learned during and after the disasterand to communicate this to the rest of Japan andthe world. We hope that Hitachi will contributeboth ‘hard’ and ‘soft’ technologies to increase social
satisfaction and to work together with us to pass onthese innovations to Japan and beyond.”
We look forward to making maximum use of
our people-centered and experience-focused survey and analysis techniques, as well as our technological strengths. We will continue to collaborate
with local authorities to resolve the issues faced bytheir communities, helping to build systems thatprovide a safer, more secure society for everyone.

Many employees volunteered to help in disaster areas. However, others wanted to help
but were worried about going there. Hitachi’s
Corporate Citizenship Department then supported those employees. In ﬁscal 2011, we held
four meetings for 150 employees, including amental care seminar and a cloth toy workshop.
The mental care seminar gave employees
an understanding of the conditions and some
preparation to prevent them from being
overwhelmed or becoming a burden to victims
when they volunteer in disaster areas. Employees who were introduced to volunteer activities
that could be carried out in Tokyo, such as
making cloth toys for children in disaster areas,
commented that they were pleased to knowthat there was something they could do locally.
Social concern was clear from employees
using the in-house Social Networking Service(SNS); they exchanged information, talking
about volunteering and their own experiences.
We value employees’ concern and maintainsupport for volunteering through, for example,
seminars and travel to disaster areas. The entire
Hitachi Group supports the recovery process.

Volunteers used SNS and websites, showing their volunteer spirit
at a seminar. Volunteer information and personal reports are put
up on the SNS and websites, fostering the volunteer spirit among
Group employees.

*Ex-Approach: A unique Hitachi framework for assessing and sharing issues and solutions with others, using consensus and making issues visible
to create realistic basic concepts and systemization plans.

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F E A T U R E

Relationships Drive a Sustainable Society

Exploring Energy Sources in Light of the Quake
After the earthquake, Hitachi made every effort to promote the restorationof power generation plants and other infrastructure systems.
Dialogue

Tatsuro Ishizuka

Hideto Kawakita

Vice President and Executive
Officer, and President of Power
Systems Company

EO, International Institute for
Human, Organization and the Earth(IIHOE)

Harnessing Human Resources and a
Swift Restoration
Kawakita: The Power Systems Company delivers
thermal and nuclear power generation, power transmission and distribution, and renewable energy. I
heard that Hitachi Works, a core plant which you
oversaw during the earthquake, was severely damaged. What was your initial response?
Ishizuka: Above all, we worked on preventing a secondary disaster because there were frequent aftershocks. We did not let people go into the plant until
we made sure that it was safe.
Kawakita: So, safety was the overriding concern.
Ishizuka: We also needed to respond swiftly to customer needs. At ﬁrst, we were unable to picture theoverall damage. So, we summoned general managers
and above and instructed them to gather informationon the situations at nuclear and thermal power plants,
especially those requiring immediate attention, andwe provided support to Emergency Response Centers.
We had trained employees for contingencies and had
a communications network in place. So, there waslittle confusion in conﬁrming safety.
Still, the earthquake ruined plumbing and someplant equipment, causing water cuts and blackouts.
We had to restore things quickly. But only 10 of 6,000
employees were plumbers or electricians. So, weformed teams with other Hitachi Group employees
and with people from outside the Group who cameto help. We harnessed their expertise and skills. For
example, an inspector knowledgeable about highvoltages inspected a power plant, a construction engineer helped to build a temporary office, and so on.
Hitachi Works traditionally holds a sports day thatcrosses business boundaries. I think that one reason
our recovery went so smoothly was that we wereable to form cross-divisional teams.
Kawakita: What about community assistance?
Ishizuka: We used the gasoline we obtained fromheadquarters to fuel emergency vehicles and enable
Group company Hitachi Dentetsu Co., Ltd. to operate local buses. We felt it was important to rebuild
the community infrastructure based on the belief
that the town would start up again once it regainedsome transportation. Although we had a well at theplant, we could not distribute water to local residents
because we did not have approval from the publichealth department. After the earthquake, we did
get authorization and reached agreement with themunicipal government to supply well water during
emergencies in the future.

Reviewing Safety Standards and Going
beyond Assumptions
Kawakita: Since the quake, people’s expectations for
ensuring energy safety have been increasing. What isyour safety focus?
Ishizuka: Improving the safety of nuclear power is asocial necessity. We are focused completely on this.
Preventing another serious accident like the one
at Fukushima Daiichi is closely related to the national government’s safety guidelines. We will make

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Hideto Kawakita
Set up IIHOE in 1994 to help
non-proﬁt organizations
and socially responsible
corporations while laying
the foundations forcooperation between nonproﬁt organization andgovernments, and engaging in
corporate social responsibility
and environmental and social
communications.

019

High-Efficiency Coal-Fired Thermal Power Helps Reduce Global CO2 Levels
Coal-ﬁred thermal power supplies 40
percent of electricity globally, and coal
is a major energy source. Coal-ﬁred
generation efficiency rises when steam
is at high temperatures and pressures,
so we developed ultra supercritical
thermal power technology, withtemperatures up to 600°C and 25-MPapressures. CO2 emissions are 7 percent
lower than current pressure power
generation (estimate).
We help reduce global CO2 levels
with high-efficiency coal-ﬁred thermal
power. Ultra supercritical thermal
power plants are the world’s mostefficient.

World Electricity Generation by Fuel Type(trillion kilowatt/
hour)
40
167%
30
Steam turbine for ultra supercritical
thermal power generation

Natural energy
119%

20

Natural gas

100%

CO2 emission reduction from coalﬁred thermal power generation

Ultra supercritical thermal power

proposals and participate in technical improvements. At the same time, after a full review we must
now prepare for events that go beyond our assumptions. We need to review frameworks, such as thosefor regulations and responsibilities, as a national
commitment. To do this, I think we need to communicate risks accurately rather than fuel anxiety. It
will take a long time to decommission the reactors at
Fukushima Daiichi. We are committed to contributing to that process through to completion, including
developing robot technology.
Kawakita: From the public’s point of view, no matter how much you say that something is technically safe, you cannot completely erase concerns.
To ensure safety, you need to generate trust withpeople and the organizations controlling technology.
So, aside from the technical management, I believethat people will continue to question how seriously
safety is being handled.

Responding to National and Regional
Best Energy Mixes
Kawakita: It seems that demand for energy andexpectations for a stable supply are likely to increase.
What’s your stance on energy?
Ishizuka: When you consider such factors as energy costs, sustainability, and security, we should
explore the potential of natural energy. At the sametime, I think it is important to make nuclear powersafer and increase the efficiency of thermal power.
Optimal energy mixes differ among countries andregions. Particularly in Asia, there is high demandfor coal-ﬁred thermal power, so many governmentsbase their policies on coal. Demand is rising for boil-

0

Nuclear2008

2015

2030 (FY)

Source: International Energy Outlook 2011

ers using lignite, which has high moisture content,
in Eastern Europe, India, and Southeast Asia. Ourleading-edge ultra supercritical coal-ﬁred thermal
power technology is highly efficient and can help
reduce CO2. We need to meet energy demand bycombining natural energy with nuclear, thermal,
and other power generation, while using our global
technologies and resources.
Kawakita: Following the Great East Japan Earthquake, interest in energy and local production, consumption and regional optimization has risen. We’reseeing a trend toward combining biomass, wind
power, storage batteries, and other technologies.
Ishizuka: We’re focusing mainly on wind and solar
power. Hitachi is strengthening business in downwind technology, which is ideal for sea and hill sites.
However, we need transmission networks that canhandle diverse combinations including wind, solar,
thermal, and other power sources with different
types of power. In April 2012, we set up the Transmission & Distribution Systems Division, and arefocusing on cutoff equipment, transformers, transmission networks, and smart grids.
Kawakita: When you develop business outside
Japan, don’t you sometimes make proposals before
national standards are decided?
Ishizuka: For countries without energy regulations,
we submit proposals for formulating regulations andenergy policies, and we assist with the education oftechnicians. We propose optimal solutions for eachcountry and region that uses highly efficient smart
grids, combining components such as thermal andother large generating plants, natural energy andother distributed energy, and storage batteries.

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Coal

10

−7% (Comparison
with Hitachi)
Sub-criticalpressureOil020

Management Report

143rd General Meeting of Shareholders (Hitachi, Ltd.)Management Report

MESSAGE

Highly Effective and Transparent Global CSR Management
Using Local Initiatives in Group GovernanceToshiaki Kuzuoka
Senior Vice President and Executive Officer,
in charge of Human Capital, Government & External Relations and Corporate
Auditing, General Manager of Legal andCommunications Group and Compliance
Division and Deputy General Manager
of Hitachi Group Headquarters for Postearthquake Reconstruction and Redevelopment, Hitachi, Ltd.

The Hitachi Group is committed to ensuring integrity andcomplete transparency in business operations. In ﬁscal 2003,
we adopted the committee system under the Companies
Act of Japan as our governance structure and establishedthree whistle-blowing systems so that employees can directly
report to compliance officers, an outside attorney, or to
our board of directors. In ﬁscal 2008, we introduced the
Hitachi Global Compliance Program, an integrated systemthat includes audits and education, to prevent our senior
executives and employees from bribery of public officials inand outside Japan. In ﬁscal 2011, we translated the HitachiGroup Codes of Conduct into 17 languages to share themwith Group companies worldwide as part of our drive to lockin effective, transparent corporate governance with a strong
awareness of global standards.
Fiscal 2012 marks a decade since we ﬁrst launched drive
to strengthen governance. To enhance our governance system, we chose the majority of our board of directors fromoutside the Company and increased non-Japanese directors
from one to three people. We will also focus on efficientGroup governance to boost global competitiveness. This
includes sharing management duties. Particularly, in theemerging countries where we expect strong growth, we aredeveloping core local human resources and partnerships
with outside institutions to improve efficiency and transparency. Another challenge is to improve local initiatives. In April
2012, we created the position of Chief Executive Officer for
Asia Paciﬁc. We are determined to develop local strategies
and centralize procurement and other functions for speedierand more locally oriented business operations.
In 2011, Japan and Thailand suffered severe disasters thatcaused materially adverse effects worldwide. I believe thatdrawing on the lessons learned from these experiences andfocusing our combined strength on Social Innovation Businesswill create safer, more comfortable urban areas around theworld. That will be a real contribution for recovery.
The Hitachi Group will continue to focus on local initiatives and reinforce global governance striving for globalstandard CSR management.

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033 ComplianceCorporate GovernanceBy enhancing corporate governance, the Hitachi Group is promoting speedier, more efficientmanagement and is meeting the expectationsof stakeholders as a business that merits the
public’s trust.

Strengthening Governance
Hitachi operates under a committee system.†1
We have strictly separated business supervisionand execution to establish a business structure
for speedy, highly transparent management.
We aim to reinforce the supervisory functionof the Board of Directors with a majority of independent outside directors and a policy towards
diversity, such as women and non-Japanese
directors, to reﬂect a balanced mix of ideas andglobal perspectives. Further, we have formulated
and published Corporate Governance Guidelines
outlining the framework of corporate governance, such as the function and composition of
the Board of Directors, qualiﬁcations for outside
directors, and criteria for assessing the independence of outside directors.

Compensation
Compensation for every director and executive
officer is set by the Compensation Committee
based on the Japanese corporate law governingcompanies with committees.
Compensation for directors and executive
officers consists of monthly salaries together with
year-end allowances for directors and performancebased bonuses for executive officers. While compensation for directors is generally ﬁxed, performance-based bonuses for executive officers are
set at around 30 percent of annual compensation.
Bonuses are determined individually according tobusiness performance and the outcome of work
carried out under the officers’ management.
Beginning with compensation for ﬁscal 2008,
the scheme for directors and executive officers wasrevised to eliminate retirement allowances. In ﬁscal
2011, executives were compensated as follows:
FY 2011 Compensation

Category

Recipients (number)

Total amount(millions of yen)

Directors(outside directors)

13
(6)

317
(85)

Executive officers

29

1,740

Total

42

2,058

Governance Structure of Hitachi, Ltd.
General Meeting of Shareholders
Election
Board of Directors(13 members, including 7 from outside)
Audit
Committee(5 members,
including 3
from outside)

Nominating
Committee(4 members,
including 3
from outside)
Election

Compensation
Committee(4 members,
including 3
from outside)* The number of directors indicated doesn’t include two serving concurrently as
executive officers.
* Compensation to directors includes the monthly salaries, from April 2011 to the timeof retirement, of two directors who retired as of the close of the 142nd Ordinary
General Meeting of Shareholders on June 24, 2011 and one director who retired on
September 30, 2011.
* We additionally provided ¥144 million in retirement allowances to one director who
retired on September 30, 2011 and one director who retired on June 22, 2012, and¥83 million in retirement allowances to four executive officers who retired on March
31, 2012.

Supervision

Executive Officers: Timely execution of company business†1 Committee system: A corporate governance system where a board of
directors makes basic policy decisions and oversees the execution of businessby executive officers, while the executive officers, appointed by the board of
directors, execute the company’s business affairs. Hitachi, Ltd. and its ninemajor listed subsidiaries have adopted the committee system.
WEB Corporate Governance Guidelines of Hitachi, Ltd.
http://www.hitachi.com/IR-e/corporate/governance/guidelines.html

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Salaries and year-end allowances or
performance-based bonuses

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Hitachi Internal Control Assessment Framework
Financial
Services
AgencyInternal Control Report

Board of Directors

Hitachi, Ltd. President and CFO
ReportReportAudit Committee
ReportInternal Auditing Office
Monitoring

Committee Coordination Office

Audit

Certiﬁcation, management
assessment report
Hitachi Group HQs(Hitachi Group HQs and In-House
Companies of Hitachi, Ltd.)Internal Control over Financial
Reporting
Hitachi, Ltd. and listed Group companies establish,
maintain and evaluate internal control over ﬁnancial reporting, and then report the results on a consolidated basis.
The Group is committed to complying with alllaws and regulations. Further, Hitachi recognizes that
it is an important social responsibility to establish
and maintain the systems that ensure appropriate
ﬁnancial reporting, and we will enhance the transparency and credibility of our business operations.

Hitachi Group Subsidiaries

and the High Functional Materials & Components
Group. We are now better able to respond to
customer needs by focusing on growth areas, inteHitachi’s Management Structure Based on Five Groups
President of Hitachi, Ltd.

Social Innovation Business Project Division
Business proposals for growth areas and industries /Business creation, including services

Infrastructure Systems Group
Eco-Cities / Green mobility / Industrial equipment /Healthcare / Elevators and escalators

Group Management
Hitachi, Ltd. instituted an in-house company systemin ﬁscal 2009 to optimize business operations. By
maintaining the independence of in-house andGroup companies, we clariﬁed the responsibilities
and authority respecting management independence and original innovation. This has speededup management and enhanced competitiveness.
Since ﬁscal 2010, we have rated each company andtransferred authority to ensure swift, independent
management.
In April 2012, we restructured into ﬁve groups
to boost and enhance Group strengths, centered on
the Social Infrastructure Business. These groups are
the Infrastructure Systems Group, the Information& Telecommunication Systems Group, the Power
Systems Group, the Construction Machinery Group,

Information & Telecommunication Systems Group
Clouds / Consulting / Big data†1 /SI†2/ Platform, suchas storage

Power Systems Group
Energy (Thermal, Nuclear, and Renewable Energy) /Smart grids

Construction Machinery Group
Construction machinery

High Functional Materials & Components GroupHigh functional materials & components / Key devices†1 Big data: Technology that handles the massive volumes of the unstructured
data that normal systems cannot process†2 SI (systems integration): Integrated information system services, including
planning through construction to management responding to customer needs

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and accelerating decision making, as well as
optimizing the business portfolio within the Group.
We also reinforced overall Group corporate
functions by launching the Hitachi Smart Transformation Project in April 2011. Through this initiativeand others, we are reforming the Group-widebusiness structure, optimizing the allocation of
resources, and sharing common resources among
business units. The Group Strategy Committee sets
Group-wide strategies to enhance Hitachi Groupmanagement.

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CSR Management
We strive to live up to our Corporate Credo ofcontributing to society through the development of superior, original technology andproducts. We are also mindful of our vision to
help solve fundamental global issues and to
pursue the realization of a better, more prosperous global society. We intend to becomea truly global entity that shares values withsociety by integrating CSR into management
and operation strategies.

the materiality process and the jointly developed
CSR Self-Assessment Tool, which we use to improveGroup-wide activities and to clarify the issues that
we face as a global entity. By talking with andlistening to global stakeholders, we proactively
integrate global social issues within management
to create sustainable management and social programs. Management issues identiﬁed through theseprocesses are presented and discussed at the CSR
Promotion Committee and are reﬂected in the following year’s initiatives.

CSR Management Structure
To promote CSR, the Hitachi executive officers
from corporate divisions on the CSR Promotion
Committee discuss Group-wide CSR issues andpolicies. This committee develops speciﬁc global
initiatives with the CSR promotion teams from
CSR-related departments within Hitachi, Ltd. andCSR promotion officers from regional headquarters
outside Japan. Hitachi, Ltd. and Group company
CSR promotion officers also meet regularly to
discuss issues that need attention and to follow acommon direction.
To meet our responsibilities as a global enterprise, we take on sustainable activities for theentire Group by using two management systems:

Five-Year CSR Roadmap
We marked the centennial of Hitachi, Ltd. in ﬁscal
2010 by creating the Five-Year CSR Roadmap, amedium-term plan for CSR. The goal is to coordinate this initiative with the Mid-Term Management
Plan, or corporate strategy, to become a truly global
enterprise. Using this roadmap, we have reinforced
the foundation of Group-wide operations, measured CSR activities, and improved corporate transparency. We are taking a leading role in resolving
the global challenges that confront society, seeing
them as opportunities, while creating the conditions for a sustainable future.
Based on this roadmap, the CSR promotion team

Structure of Hitachi Group CSR Promotion
President

Senior Executive
Committee

CSR Promotion
Committee

Senior Executive Committee:
Decides CSR management policies at the executive level
CSR Promotion Committee:
Consists of Executive Officers responsible for CSR
Discusses policies and plans for CSR activities
CSR Promotion Team:
Consists of managers responsible for CSR in eachdepartment.
Prepares, implements and follows up detailed plans for
CSR activities

CSR Division
CSR Promotion
Department(Secretariat)

In-house companies
Presidents
CSR promotion
officers

Production facilities

CSR Promotion Team

Affiliated companies
Presidents
CSR promotion
officers

Affiliated companies

Group Management, Corporate Brand
Management, Customer Satisfaction,
Overseas Operations, Employee Relations& Human Resources, Legal Affairs,
Corporate Citizenship, Environmental
Conservation, Compliance, Quality
Assurance, Procurement, Public Relations,
Research and Development, Government
and External Relations

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Regional headquarters outside Japan
Regional executives
CSR promotion officers
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FY 2011 Self-Assessment Results (Hitachi, Ltd.)CSR Policy of the Hitachi Group
1. Commitment to Corporate Social Responsibility (CSR)
2. Contribution to Society through Our Business3. Disclosure of Information and Stakeholder Engagement
4. Corporate Ethics and Human Rights
5. Environmental Conservation
6. Corporate Citizenship Activities
7. Working Environment
8. Responsible Partnerships with Business Partners
Adopted March 2005

Policy1
75.9%
Policy868.0%

100

Policy273.8%
500Policy7
72.1%

WEB CSR Policy of the Hitachi Group
http://www.hitachi.com/csr/introduction/hitachi-csr/

Policy681.4%

at Hitachi, Ltd. and our regional headquarters outside Japan have created action plans and set assessment targets to make CSR programs more effective(see pages 028 and 029).

CSR Self-Assessment Tool
In ﬁscal 2008, Hitachi, Ltd. and Group companies
jointly developed the Hitachi Group CSR SelfAssessment Tool, which benchmarks our companies
against other leading global companies. The goal is
to tackle issues and clarify initiatives based on ourpolicies for pursuing CSR and continuously improving performance.
In ﬁscal 2011, we revised this tool to focus moreon management collaboration and global perspectives, as well as to address risk and measure impact
based on such social demand changes as the launchof ISO 26000 and the requirements of major SRI
indexes.

Policy4
85.2%
Policy586.0%

FY2011Main Topics Covered in Each Policy of the CSR Self-Assessment Tool
Policy 1: Commitment to Corporate Social Responsibility (CSR)
CSR vision; CSR education; risk management
Policy 2: Contribution to Society through Our Business
Coordination with business strategies; sustainable designs;
innovation; customer satisfaction
Policy 3: Disclosure of Information and Stakeholder Engagement
Information disclosure; dialogue with stakeholders
Policy 4: Corporate Ethics and Human Rights
Corporate governance structure; education on ethics and awarenessof legal violations; respecting human rights; infringement risks
Policy 5: Environmental Conservation
Carbon management strategies; resource recycling;
ecosystem conservation
Policy 6: Corporate Citizenship Activities
Strategic social contribution; participation in local communities;
social enlightenment
Policy 7: Working Environment
Respecting diversity; fulﬁlling work environments; work-life balance
Policy 8: Responsible Partnerships with Business Partners
CSR procurement; communication with suppliers; procurement risks

Results of Fiscal 2011 Self-Assessment
After reviewing the results of the ﬁscal 2011 self-assessment, we recognized how social requirements
have changed since we revised the assessment tool.
At the same time, we were able to clarify items
where building or improving a common global platform were required. In ﬁscal 2012, we will implement action plans based on the assessment results,
while fully deploying our tool among Group companies in and outside Japan. We will also improveoverall Group standards to achieve the goals of ourFive-Year CSR Roadmap by ﬁscal 2014.

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Policy378.1%

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FY 2011 Results and FY 2012 Plans
CSR Policy of the
Hitachi Group

Hitachi Group Activities
in FY 2011

Results in FY 2011

1. Commitment to
Corporate Social
Responsibility∙ Review Hitachi Group CSR
Self-Assessment Tool basedon global standards∙ Create a revised version of CSR SelfAssessment Tool based on ISO 26000
through consultation with Group companies

2. Contribution toSociety through Our
Business∙ Continue implementing the
Hitachi Group QF (Quality
First) Innovation Movement
launched in FY 2010 andassess the results∙ Continued implementing the QF Innovation
Movement, improving processes for priority
business divisions, and OCHIBO HIROI*1∙ Continue innovation by
reinforcing global R&D∙ The Institute of Electrical and Electronics
Engineers (IEEE), the world’s largest
professional association, establishedthe Hitachi-sponsored IEEE Innovation inSocietal Infrastructure Award∙ Opened the Hitachi India R&D Center as
Hitachi’s R&D hub in India

p. 039∙ Continue engaging instakeholder dialogues∙ Conducted dialogues in Brazil, Indonesia
and Belgium about Hitachi’s solutions forregional social issues

p. 103–104∙ Participate in international
debate and express our views
on sustainability∙ Hitachi representatives from various regions
participated as panelists or speakers ininternational conferences (B4E and BSR
annual conference, etc.)

p. 103∙ Promote human rights
education globally andexpand human rights
initiatives in collaboration withnongovernmental and otherorganizations∙ Provide e-learning for around 10,000 Hitachi
Europe employees∙ Continued implementing human rights
workshops in Europe (participation of morethan 80 percent of management)∙ Publish and distribute HitachiGroup Codes of Conduct
Handbook∙ Deploy English and Chineseversions of e-learning toolson the Hitachi Group Codes ofConduct outside Japan∙ Implemented annual Corporate Ethics
Month in October∙ Created and distributed Hitachi Group Codesof Conduct Handbook and deployed English
and Chinese versions of e-learning tools
outside Japan to broadly publish the codes∙ Continue complianceeducation and auditing ofregional headquarters outside
Japan∙ Held brieﬁngs for company leaders andexecutives from our Asian operations on
measures to prevent corruption

3. Disclosureof Informationand Stakeholder
Engagement

4. Corporate Ethics
and Human Rights

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Achievement
Level

Page(s)p. 027∙ Apply the revised CSR SelfAssessment Tool to Group
companies∙ Continue implementing HitachiGroup QF Innovation Movement
and assess the results

Ongoing

p. 088–089

p. 033

p. 034028

FY 2012 Goals/Plans∙ Double the number of R&D
personnel at corporate researchfacilities outside Japan (approx.
150 in FY 2010)∙ Continue to hold stakeholder
dialogues, especially inemerging economies∙ Participate in international
debate and express our views
on sustainability∙ Create Hitachi Group humanrights policy in collaboration
with nongovernmental andother organizations anddevelop a due diligenceframework∙ Review human rights education
content (e-learning, etc.) and
deploy across the Group∙ Enhance education materials
to broadly publish the HitachiGroup Codes of Conduct∙ Continue educating andauditing regional headquarters
outside Japan

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5. Environmental
Conservation∙ Reduce CO2 emissions from
Hitachi products (target for the
year: 20 million tonnes)∙ Helped reduce CO2 emissions by 18.09
million tonnes (failed to meet target due tomajor changes in building of power facilities
following the March disaster)p. 053–055

6. Corporate
Citizenship Activities∙ Set up and publish mediumterm themes to Groupbusinesses globally∙ Created medium-term themes andan overall plan reﬂecting the views ofoperations outside Japan, sharing thesewith Group companies in Japan

p. 121∙ Implement educational
support programs in emerging
countries∙ Held the Hitachi Young Leaders Initiative,
which nurtures potential Asian leaders, inVietnamp. 123∙ Continue undertaking social
contribution programs
covering the environment,
energy, and other areas∙ Implemented educational support programson the environment for children in China∙ Held “Science Café” events at which experts
speak on environmental issues to deepen
understanding of those issues

p. 124–125∙ Follow up semi-annuallyon progress with the plansproduced by each in-housecompany for promoting
female executives∙ Conducted follow-up on progress of thepromotion plans of each in-house company∙ Establish balanced working
styles by continuing to
implement WLB (Work-Life
Balance)-Up! Month∙ Implemented WLB (Work-Life Balance)-Up
Month to help people balance their workwith their private lives∙ Strictly comply with legal
employment rate for disabled
people at all Hitachi Group
companies in Japan∙ Held ﬁve study sessions on employing
people with disabilities within the HitachiGroup∙ Held two Hitachi Group Career Fairs

p. 096∙ Monitor suppliers globally∙ Established Hitachi Group CSR Procurement
Committee to reinforce CSR procurement
system∙ Monitored 101 suppliers in China and Asia

p. 092∙ Exchanged information at the New MMM
Club*2 plenary on environmental regulations
and outstanding environmental case studies
at suppliers

p. 093

7. Working
Environment

8. Responsible
Partnerships with
Business Partners∙ Continue to convey useful
information for suppliers’
environmental managementp. 098p. 096*1 OCHIBO HIROI (gleaning) is Hitachi’s program for adopting the customer’s perspective when reﬂecting on past accidents and working toprevent recurrences.
*2 The New MMM Club is an organization run primarily by suppliers who have acquired environmental certiﬁcation through Hitachi’s
activities to support their environmental programs. Mottainai, which means regrettable waste in Japanese, is now an international
environmental term. The three Ms come from the ﬁrst letter of the word mottainai.

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029∙ Reduce CO2 emissions from
Hitachi products∙ Conduct social contribution
activities based on themedium-term themes andoverall plan
∙ Continue to implement social
contribution programs on theenvironment, energy, and otherareas∙ Follow up semi-annually on
progress with the hiring plansof each company∙ Establish balanced working
styles by continuing to
implement WLB-Up! Month∙ Strictly comply with legal
employment rate for disabled
people at all Hitachi Group
companies in Japan∙ Reinforce monitoring suppliers
globally (site surveys)∙ Continue to convey useful
information for suppliers’
environmental management

Achieved
Partially achieved

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Risk Management
Reducing the frequency and impact of risks
globally by strengthening policies andprograms to meet the goals of the 2012 MidTerm Management Plan.

Responding to the Great East Japan
Earthquake
A massive earthquake, followed by a devastatingtsunami, hit Japan’s Tohoku region and Paciﬁccoast on March 11, 2011. We responded by immediately setting up the Emergency Headquarters
for Response to Large-Scale Earthquakes to conﬁrm
the safety of all employees and their families, whileassessing the damage. Many Hitachi Group facilities
in Fukushima and Ibaraki prefectures were heavily
damaged. We expected that restoration would
take a long time, but key business sites completed
their recovery within a month and restarted mostof their production. This swift turnaround is a testament to the support received from related entities
outside Hitachi and the emergency preparednessof business sites within Hitachi. On March 23, we
broadened the role of the emergency headquarters
to create the Hitachi Group Headquarters for PostEarthquake Reconstruction and Redevelopment,
headed by Hiroaki Nakanishi, president of Hitachi,Ltd. This group functions as a “control tower” forthe Hitachi Group, combining information on damage and providing increased efficiency for supportand restoration work by consolidation of assistancerequests, empowering Hitachi to undertake concerted efforts to restore disaster zones.

regional headquarters outside Japan (in theAmericas, Europe, China, and elsewhere in Asia).
In addition to traditional risks, including natural
disasters or business risks such as the market
environment and raw material prices, these risks
also include environmental and reputational risks,
human rights risks that cover employee diversity
and poor working conditions within the supply
chain, and other risks that could impact Hitachi’s
credibility and business sustainability.
We will reinforce our comprehensive risk management framework within which our assessment
standards are fully examined, where accumulated
risk information is analyzed and evaluated in greater detail, and where responses to the results ofthese analyses and evaluations are examined at the
management level. In addition, we will improve risk
awareness among all employees, especially throughinformation sharing, education, and training.

Business Continuity Plans (BCPs)†1
To guard against risk, and being deeply committed
to the social infrastructure, we are enhancing our
BCPs to minimize the impact on society of any interruption to business operations. More speciﬁcally,
we distributed the Hitachi Group Guidelines forDeveloping Business Continuity Plans in December
2006 to reinforce risk mitigation for large disasters.
In ﬁscal 2010, we translated our BCP guidelines into

Reinforcing the Risk Management
SystemWe manage the business and operational risksof every division with internal audits. The entire
Hitachi Group is reinforcing their management
systems to address increasingly global and complex
risks. Since ﬁscal 2009, we have consolidated
information on all risks for all in-house companies,
Hitachi Group companies, research centers, andHitachi Group Guidelines for Developing Business Continuity Plans(department version)

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English and Chinese, and then distributed themto all Hitachi Group companies around the world.
In ﬁscal 2011, we produced a department versionof the Hitachi Group Guidelines for Developing
Business Continuity Plans based on lessons learned
from the Great East Japan Earthquake. Using theseguidelines, Hitachi Group companies and businesssites review and prepare BCPs that match thenature of their operations. For example, we aredeveloping BCPs for ﬂooding in Thailand because
six plants of three Hitachi Group companies wereaffected by ﬂoods in Thailand in the fall of 2011.
†1 Business Continuity Plan (BCP): A plan for ensuring the continuation of core
operations and for promptly restoring operations in the event of a disaster or
accident.

Novel Strain of Influenza Action Plan and BCPs
In ﬁscal 2008, as a precaution against a novel strain
of inﬂuenza that gave rise to fears of a pandemic†1,
we set up a special organization called the Risk
Management Headquarters, headed by the president. In the event of a worldwide outbreak, the Risk
Management Headquarters would take the lead in
securing the safety of all Hitachi Group employees
and their families. Every effort would be made toensure that operations essential for maintaining
social functions, such as lifelines, logistics, information systems, medical services, and public security,
would continue without interruption.
As part of these preparations, we formulated
the Guidelines for Pandemic Influenza Preparedness
in 2009. We distributed these to all Hitachi Group
companies in ﬁscal 2010, after translating theminto English and Chinese. In ﬁscal 2011, we further†1 Pandemic: An infectious disease epidemic that spreads worldwide

enhanced preparedness by collaborating with three
Hitachi Group service businesses to conduct a joint
drill based on the scenario of a novel inﬂuenza
pandemic.
†1 Pandemic: An infectious disease epidemic that spreads worldwide

Tabletop Exercise to Prepare for Large-Scale
Disasters
Hitachi, Ltd. has held annual disaster simulation
drills since ﬁscal 1998—so far at 19 sites throughout
Japan. For these drills, teams of people makedecisions under disaster scenarios that have beendeveloped over three to six months and include
a range of crises. The objective is to verify andimprove the effectiveness of prevention plans
for large disasters. In ﬁscal 2011, we held a drillin Shizuoka Prefecture, where there is special
concern about the potential for an earthquake in
the Tokai region and the simultaneous occurrenceof three large earthquakes known as the Tokai,
Tonankai, and Nankai earthquakes. Business site risk
managers participating in the drills reported theirexperiences and results at a general assembly foraround 200 officers responsible for handling risk.
We are constantly improving BCPs to address large
disasters by sharing the results of these tabletop
drills. We also hold monthly drills that use a satellite
communications system.
Providing Information through Our Internal
WebsiteThe Hitachi Group internal website has provided arisk response page for all Hitachi employees since1997. This internal website features informationfrom wire services and Japan’s Ministry of Foreign
Affairs as well as problems that Hitachi Group
employees have experienced. If emergencies arise,
the site alerts employees and posts responses based
on top management policies and the extent ofdamage. The risk response website adds or updates
around 80 news items every day. The average
number of page views per month has reached
500,000, illustrating that the site is playing anessential role in Hitachi’s risk measures. This site
conveyed top management policies and reported

Pandemic simulation drill

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Earthquake. This site also provides employees withe-learning about threats and measures against
H1N1 inﬂuenza.

Inﬂuenza page on e-learning site

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Compliance
Raising awareness and reinforcing complianceamong Hitachi Group companies worldwide
during international expansion to ensure faircompetition.

Formulating and Ensuring Awarenessof the Hitachi Group Codes of Conduct
Hitachi, Ltd. formulated the Hitachi Group Codes ofConduct in 2010 as speciﬁc common conduct codes
for the Group. This was in line with the shift to a
new Group management structure to mark Hitachi’s
centennial in that year. Based on translations of
this document into 17 languages, consolidated
subsidiaries worldwide then formulated their own
codes of conduct in line with the same content.
To ensure broader awareness of the codes, we
produced the Hitachi Group Codes of Conduct
Handbook in ﬁscal 2011 as a resource for the entire
Hitachi Group. We produced English and Chineseversions of a Japanese-language e-learning toolthat teaches appropriate behavior, presenting
speciﬁc examples to publicize initiatives to HitachiGroup companies outside Japan. We are extending
training to business sites outside Japan, including
Hitachi Group companies. We are asking managers
to submit a written statement conﬁrming that they
have taken the course andare pledging to comply with
the Hitachi Group Codes ofConduct.

1.5 Observance of Engineering Ethics
Chapter 2: Environmental Protection
2.1 Promoting Environmental Management
2.2 Environmentally Conscious Business Activities andEnvironmental Management
2.3 Communication with Stakeholders
Chapter 3: Relations with Society
3.1 Disclosure of Company Information
3.2 Contribution to Local Communities
3.3 Relations with Politics and Government Administration
3.4 Prevention of Anti-social Transactions
3.5 Regarding Gifts, Business Entertainment, Etc.
3.6 Observance of Laws and Regulations and Respect of the Culture
and Customs of Each Nation and Region
Chapter 4: Respect of Human Rights
4.1 Promoting Respect of Human Rights
4.2 Eliminating Discrimination
4.3 Respect of Human Rights in Information Management
4.4 Respect of Basic Rights at Work
Chapter 5: Management Foundations
5.1 Management and Use of Information
5.2 Use of Inside Information and Related Considerations
5.3 Management and Preservation of Company Assets
5.4 Arranging a Work Environment That Draws Out Employee
Strengths
5.5 Observance of Laws and Regulations Governing Imports andExports
Chapter 6: Complete Observance of Codes ofConduct
6.1 Complete Observance of Rules
6.2 Implementation of Self-Audits
6.3 Internal Reporting System
Chapter 7: Responsibilities of Top Management
Supplementary Provision Hitachi Group Implementation of Codesof Conduct

WEB Hitachi Group Codes of Conduct
http://www.hitachi.com/csr/csr_images/codeofconduct.pdf

Implementing Corporate Ethics Month
Hitachi Group Codes of Conduct Handbook

Table of Contents — Hitachi Group Codesof Conduct
Chapter 1: Sincere and Fair Business Activities
1.1 Provision of Safe High-Quality Products and Services
1.2 Sales Activities
1.3 Procurement Activities
1.4 Respect of the Hitachi Brand

Corporate ethics and compliance are the bedrockof all our activities. Every October has been HitachiGroup Corporate Ethics and Compliance Monthsince ﬁscal 2009. Top management leads the way
in improving adherence to ethics and complying
fully with laws and regulations. Executives andemployees are making compliance central to all
their actions.
In ﬁscal 2011, we distributed 230,000 copies

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to publicize—to all employees of Hitachi, Ltd. andGroup companies—top management’s messages
and more extensively inform employees about the
Hitachi Group Codes of Conduct. We posted the
Hitachi Group Codes of Conduct Online Game on
our intranet as an entertaining way of learning
about compliance, helping to improve complianceawareness at all Hitachi Group companies
worldwide.

Compliance Reporting System
We instituted a company-wide compliance reporting system to prevent illegal and unethical behavior, to promptly address infractions, and to enhance
our ability to self-regulate. Employees can report
directly to the Compliance Division at Hitachi or toan outside attorney.
This system can be used not only by Hitachi employees but also by former employees, business
partners and temporary staff. Another system—
Channel to the Board of Directors—has been introduced to allow employees to report problems anonymously directly to Hitachi’s board of directors.

prevention laws and regulations in China andSoutheast Asia. To redouble our commitment topreventing bribery, we explained trends in Asia ata meeting of Hitachi company presidents and top
executives from local companies in Asia in January
2012.

Preventing Violations of the
Antimonopoly Law
The Hitachi Group operates on the principles of“conformance with the law and business ethics”
and “fair and disciplined competition.”
Unfortunately, however, Hitachi, Ltd. waspenalized in September 2006, October 2008, andMarch 2009 for violating Japan’s Antimonopoly
Law in bidding for public works projects in Japan.
We deeply regret these violations, and haveworked hard to boost awareness of compliance issues in several ways, including individual interviews
with sales staff, and by publicizing messages fromtop executives.
In June and July 2011, we conducted training on
Japan’s Antimonopoly Law for 661 sales managers.
We audited Hitachi Group companies and internal

Preventing Bribery of Foreign Public
and Other Officials

TOPICSOur 2012 Mid-Term Management Plan focuses on
Social Innovation Businesses and strategic progressin emerging countries. Global compliance with antibribery laws is now becoming ever more important,as companies engaged in the global marketplace
face tighter controls on bribery of foreign public
officials. For example, the UK and the US enacted
new bribery prevention laws. In ﬁscal 2008, we formulated corporate rules and guidelines to prevent
bribery worldwide, and we are ensuring adherence
through audits and education. In ﬁscal 2011, we
conducted audits and education at local entities
within Hitachi Group companies, particularly thosein emerging countries.
In July 2011, around 210 compliance officers
from the Group attended a lecture on trends inbribery prevention laws and regulations in the UK
and the US. In March 2012, around 220 officers
attended an attorney’s lecture on trends in bribery

Hitachi Data Systems Selected as One of
the 2012 World’s Most Ethical Companies
In March 2012, Ethisphere Institute, a US
think tank that specializes in corporate
ethics and CSR, selected Hitachi Data Systems, a Hitachi Group company headquartered in the United States—for the second
consecutive year—as one of the World’s
Most Ethical Companies.
For this award, the institute evaluates
several thousand companies from 36 industries in more than 100 countries, choosing
one or two companies per industry. Again
this year, Ethisphere recognized the commitment to complianceof Hitachi Data Systems’ management.

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Antimonopoly Law. We intend to enhance thecompliance awareness of all employees by stepping
up auditing and education.

and in accordance with all applicable laws andregulations, including social requirements.

Protecting Personal Information andInformation Security
The Hitachi Group emphasizes two points in policies
to protect personal information and information
security:

Privacy MarkWEB Personal Information Protection Policy
http://www.hitachi.com/privacy-e/index.html(1) Precautionary measures and prompt security
responses
We classify assets to be secured and take safeguarding measures
based on vulnerability and risk. We also have an emergency
manual for security breaches, based on the assumption that these
are inevitable, not just possible.
(2) Promotion of stronger ethical and security
awareness among data users
We have prepared a curriculum tailored to personnel levels—staff,
managers, etc.—and are working to raise the prevailing senseof ethics and security awareness through Group-wide education
using e-learning. We are also using audits to identify and address
problems early on.

Protecting Personal Information
We established a personal information protection
management system based on our Personal Information Protection Policy. With this system, throughe-learning courses for all employees and throughperiodic audits, we ensure the Company-wide protection and safe handling of personal information.
Hitachi, Ltd. received Privacy Mark†1 certiﬁcationin March 2007, and we are doing our best to haveour certiﬁcation renewed for a third time in March
2013. As of March 2012, 69 Hitachi Group companies had received the Privacy Mark. In July 2007, theOdaira Memorial Tokyo Hitachi Hospital became theﬁrst corporate medical institution in Japan to earn
Privacy Mark certiﬁcation. The Hitachi Yokohama
Hospital and Ibaraki Hospital Center (both locatedin Japan) were also certiﬁed. These hospitals work
hard to protect and carefully handle the personal
information of patients and others.
Hitachi also strives to safeguard personal information globally at Group companies outside Japan
based on the Personal Information Protection Policy†1 Privacy Mark: A third party certiﬁcation granted to businesses approved byan assessment institution as taking appropriate security management andprotection measures on personal information (granting institution: Japan
Information Processing Development Corporation). Effective since April 1998.

Information Security Initiatives
As a global supplier of total solutions supported byintelligent ICT systems, the Hitachi Group maintains
information security and other regulations. We use
our information security management system tosafeguard customer information, as well as technical and other conﬁdential information.
The Information Security Committee, which theChief Information Security Officer chairs, determines our information security policies and measures. The Information Security Promotion Council
and other bodies convey decisions to internal business sites and Hitachi Group companies. Information security officers at those sites and companies
then inform people in their workplaces. In linewith our information security management cycle,
we maintain and improve security levels in several
ways, including using extensive information security
procedures, holding security education classes for
employees, and auditing information security.
We formulated the Three Principles for Preventing Leakage of Conﬁdential Information, withthe goals of ensuring the highest level of care for
conﬁdential information and preventing leaks.
Our policies ensure that we minimize any leaks bypromptly contacting customers, reporting to government agencies, investigating causes, and acting
to prevent recurrences. Hitachi Group companies
worldwide take these steps to prevent information
leaks: using Hitachi Hibun encryption software andHitachi Group Sustainability Report 2012
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and expiration processing software; maintaining
ID management and access control by building anauthentication infrastructure; and by using email
and website ﬁltering.
To ensure information security in collaboration
with our suppliers, we conﬁrm and review theirinformation security measures based on Hitachi’s
information security standards before allowing
them access to conﬁdential information. We haveprovided information security and educational
tools to approximately 8,800 suppliers (procurement partners), requiring them to remove businessinformation from private personal computers andthereby prevent information leaks. As a result of

these efforts, we again experienced no information
leaks in ﬁscal 2011.
Hitachi Group companies worldwide are reinforcing information security management in linewith the Global Information Security Administration
Standards. We have set up PC security and otherpriority measures, coordinating extensively withstaff in the United States, Europe, Southeast Asia,
and China to ensure that these measures are being taken. We check on progress on the security ofcompanies outside Japan through the Global Security Self Check and the Important Security Measures
Implementation Survey.
See the Information Security Report for more details on information security.

Three Principles for Preventing Leakage ofConﬁdential Information

Protecting Personal Information, Information
Security Audits and Inspections
The Hitachi Group promotes information security
based on the PDCA (Plan, Do, Check, Act) cycle
for the information security management system.
Hitachi conducts annual personal information
protection and information security audits at alldivisions.
The president appoints officers to conduct
independent audits. These officers are not allowed
to audit their own units, underscoring our commitment to fairness and independence in auditing. We

WEB Information Security Report (only in Japanese)
http://www.hitachi.co.jp/csr/csr_images/securityreport.pdf

Principle 1.
Any person may not take Conﬁdential Information out of theCompany’s premises in principle.
Principle 2.
Any person taking Conﬁdential Information out of the Company’s
premises according to business necessity shall obtain prior approval
from the Information Assets Manager.
Principle 3.
Any person taking Conﬁdential Information out of the Company’s
premises according to business necessity shall have relevant andappropriate measures against information leakage in place.

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

Improve user literacy∙ Supply security education materials∙ Educate managers and staff

Information
assets to beprotected

Implement preventive techniques∙ Widely implement administrative measures∙ Deploy technological processes

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

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companies, and we are conﬁrming the results. For
517 Hitachi Group companies outside Japan, we
use the Global Security Self Check to ensure Groupwide auditing and inspections.
We implement Conﬁrmation of Personal
Information Protection and Information Security
Management once every year as a voluntary inspection of workplaces at business units. We conduct
monthly Conﬁrmation of Personal Information
Protection and Information Security Management
assessments at approximately 500 operations that
handle important personal information. This regularcheck-up ensures effective safety management andimplementation.
Education on Personal Information Protection andInformation Security
To consistently protect information, it is crucial foreveryone to strive daily to acquire the knowledge
needed for handling information and to remainstrongly aware of issues. For this reason, we holdannual e-learning courses on personal information
protection and information security for all directors,
employees, and temporary employees. At Hitachi,Ltd., nearly 100 percent of the approximately
40,000 employees take these courses. We provide
speciﬁc additional training, especially for new
employees, new managers, and information systemadministrators. We have prepared a wide range
of information security programs based on target,role, and reason to prevent human errors, the primecause of information security incidents. These programs combat cybercrime by addressing such issues
as risk prediction and social engineering.
Our educational programs are available to
Hitachi Group companies in and outside Japan toassist in Group-wide initiatives to teach personal
information and information security.

security exports based on this policy in 1987, andwe strive for the strictest possible export controls.
This means promoting legal compliance and screening for destination countries and regions, end use
and end-user of all goods and technologies intended for export. In addition, we promote Group-wideexport controls by providing guidance to all HitachiGroup companies on the rules and organizations
for export control. Also, we support education andcompliance training to make certain that every
Hitachi employee follows the same export control policies. In ﬁscal 2011, we provided practicaltraining on export control through working-levelmeetings and workshops for Group companies in
Malaysia and South Korea. We increased the rangeof basic training by providing a Chinese-language
version of a Japanese e-learning course.
In ﬁscal 2011, the Hitachi Group committed nomaterial export control violations.

Export Control
For basic export control, we use the HitachiStandards of Corporate Conduct, which states that
we “shall help maintain international peace andsecurity through compliance with trade laws andregulations.” We adopted rules for controlling

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Innovation Management
Since our founding, the Hitachi Group has
actively pursued R&D to fulﬁll the Corporate
Credo of contributing to society through thedevelopment of superior, original technology
and products. This continuous innovation
with R&D as its core, is the driving force ofsustainable growth for the Hitachi Group.

Research and Development Strategy
The Hitachi Group invests 670 billion yen, which isapproximately 60% of the total R&D expenditure
for FY 2010-2012, for R&D in Social Innovation
Business areas to accelerate R&D promoting growthin the global market for this business area. In April
2011, the R&D structure was reformed for the ﬁrst
time in 25 years. Locally led research was expanded
by increasing the number of researchers employedin the four research hubs outside Japan, while consolidating the eight research laboratories in Japan
into three. Under this new structure, technology
developments supporting global Social Innovation
Business will be accelerated, and measures put
in place to increase R&D efficiency. Further, theTechnology Strategy Office was established within
the Research and Development Group to oversee
Group-wide technology strategies and to formulate
medium-to-long-term technological and development plans linked with business strategies.
Investment in the Social Innovation BusinessResearch and Development Goals
The R&D expenditure of the Hitachi Group is being
maintained at around 4 percent of total revenue.
For R&D investment efficiency, the target is todeliver an ROI†1 (operating income divided by R&D
expenditure) of greater than 1.0. The number of
papers accepted by the Institute of Electrical andElectronics Engineers (IEEE), the world’s largest
professional technology association, is used as
one benchmark for measuring Group technology
standards and activities worldwide. In ﬁscal 2011,

Major IndicesTrend in R&D Efficiency
(ROI)
1.2
1.0
(Target)
0.8

0.4
0.31

0.2

0.37
ROI

0

2007

2008

2009

2010

2011(FY)

Trend in R&D Expenditure(billions of
yen)

(%)
3.8

450

428.1

4.2

4.2

4.2

4.3

3

416.5

412.5
395.1

230

0

350
200
300

180

0

Fiscal 2010

Fiscal 2011

Fiscal 2012
(planned)

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1

372.4

0

5
4

400

220
200

0.82

240

240

1.00

0.6

(billions of yen)
260

1.10

2007

2008

2009

Research investments
R&D expenditures to revenues

038

2010

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Hitachi Group, ranking us third in the electronics
industry worldwide and ﬁrst in the electronics
industry in Japan.
†1 ROI: Return on investment

Global Research and Development
Structure
The research and development structure of Hitachi,Ltd. includes the Technology Strategy Office, theCentral Research Laboratory, the Hitachi ResearchLaboratory, the Yokohama Research Laboratory,
the Design Division, and ﬁve research bases outside
Japan. The Technology Strategy Office prepares
R&D Organization of Hitachi, Ltd.
Hitachi, Ltd.
Senior Executive Committee

Board of Directors
PresidentGroup Strategy Committee

Chairman of the Board

Supervisory Office for
Liaising with Information
and Telecommunications,Power Systems, andElectronics Systems &Equipment Divisions

Eight in-house companies

Strategy Planning Division

Business divisions

medium-to-long-term technology and development
plans linking corporate research centers and business divisions in order to accelerate expansion inareas of business priority. By proposing Hitachi-wide
strategic projects, the Office formulates technology
strategies to achieve Hitachi management policies.
In 2011, approximately 150 research staff were
employed in centers outside of Japan but thisnumber will be doubled by ﬁscal 2012. Further, thepolicy of localization will be thoroughly pursued
by raising the proportion of locally-employed R&D
staff in overseas centers to over 90 percent witha target of more than 30 percent doctoral degree
holders, increasing collaborations with government,
business, and research institutions in the region
while pursuing locally-initiated R&D based on
speciﬁc regional needs. Emphasis will be research
themes centering on Social Innovation Businessbeing promoted in each of the ﬁve global bases.
Corporate R&D Worldwide

Cambridge■ ■ Munich, Duisburg■ ■ Sophia Antipolis
Maidenhead★ Beijing★ Shanghai▲ Bangalore

Development and
Design Section

DetroitSanta Clara▼
Singapore

Corporate Information
Technology GroupRegional chief executives■ Europe(Hitachi Europe Ltd.)

Finance and Accounting
Group
Human Capital Group
Legal and Communications
Group

Technology Strategy OfficeCentral Research Laboratory

Monozukuri Group
Hitachi Research Laboratory
Corporate Marketing Group
Research & Development
Group

Yokohama ResearchLaboratory
Design Division

Intellectual Property GroupR&D facilities outside Japan
Smart City Business
Management Division· Advanced physics· Rail systems· Automotive systems· Power systems· Design★ China(Hitachi China Research &Development Corporation)· Social infrastructure systems· Information &Telecommunication systems· Medical & Healthcare· Construction machinery· Design▲ India(Hitachi India Pvt. Ltd.)· IT hardware· Middleware· Large volume data collection· Knowledge processing· Social infrastructure systems

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● USA
(Hitachi America, Ltd.)· Storage systems· Automotive equipment· Wireless communication systems· Design▼ Asia(Hitachi Asia Ltd.)· Software· Big data
· Network storage· Water treatment

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R&D Plan and Investment

VOICESAt Hitachi, Ltd., 70 percent of R&D expenditure isfor Sponsored and Advanced sponsored researchfrom Hitachi in-house companies and Hitachi Group
companies, and the remaining 30 percent is for
Basic and platform research from corporate funds.
Sponsored and Advanced sponsored research havethe goal of expanding priority businesses, andtarget practical application within three to ﬁve
years. Basic and platform research is based on the
mid-to-long-term Technology Plan, and aims tocreate innovative technologies forming the base for
future core businesses.

Prioritizing R&D Units under the MidTerm Management Plan
The Hitachi India R&D Centre (HIL) was established in
Bangalore Karnataka, India, as Hitachi’s ﬁrst researchand development base in India. Its role is to help
expand Hitachi business to more effectively serve theneeds of the swiftly growing Indian economy.
Researchers are helping Hitachi Group companies enter and expand the market in India by studying local market requirements while promoting
market-oriented technological R&D that improves
existing products. They also carry out locally-oriented research to pioneer new business areas. The
Centre will conduct research in collaboration with
Indian universities and companies to ensure more
effective advanced research. The Centre started with10 researchers, but the number will be doubled byﬁscal 2015 through local hiring to contribute tobusiness expansion and cultivation in India.

Hitachi India R&D Centre

Helping Globalize Business with
R&D from China

Chen Yangqiu
Vice President and General Manager,
Management & Planning Department,
Hitachi (China) Research and Development Corporation (HCR&D)

With “globalization of business” as a key
phrase in Hitachi’s management strategy, R&D
staff in overseas research centers are being
increased and R&D based on local needs isbeing promoted. The anticipated role of HCR&D
is to identify speciﬁc market-based needs in
China and engage, as the Group’s Chinese R&D
unit, in R&D that matches those needs. The
12th Five-Year Plan announced by the Chinese
government in ﬁscal 2011, clearly identiﬁes
the promotion of urbanization, stimulating
development in priority regions, and the strategic promotion of development in emerging
industries. This Plan anticipates expansion ofneeds in upgrading urban infrastructure suchas power systems, transportation and watersupplies, applying information technologies
developed by advanced information industries,
and research and technology in areas such as
medicine and healthcare. This will lead to major
business opportunities for Hitachi in China.
HCR&D is reinforcing technology collaborations among Hitachi Group companies in
China, and through cooperative relations with
universities such as Tsinghua University, as
well as training R&D staff. Also, by producing
many research achievements from China, suchas patents, research papers, and product andsystems development, HCR&D will contribute toexpanding Hitachi operations in China, and also
to China’s technological progress.

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Participating in International Societies
and Conferences
Hitachi is working to receive recognition from theIEEE, the world’s largest professional association
for the advancement of technology, while working
with the IEEE to establish a new award in Hitachi’sarea of business focus.
In January 2012, Hitachi received the IEEE
Milestone for the world’s ﬁrst “Practical Field
Emission Microscope.” Established in 1983, theIEEE Milestone honors outstanding technologicalinnovations in areas of technology such as in theelectrical, electronics, information and communication engineering that occurred at least twenty-ﬁve
years ago, and that have contributed substantiallyto the advancement of society or industry.
In March 2012, the Technical Field Award forInnovation in Societal Infrastructure Award wasestablished within the IEEE, sponsored by Hitachi.
Through this award, Hitachi hopes to contributeto technological innovation and new industries
worldwide in Social Innovation Business over the
next 10 to 20 years.

IEEE Milestone presentation ceremony

Noteworthy R&D Achievements
Hitachi, helping conserve the environment throughCCS-IGCC research, is exploring technology tostably burn fuel that contains high concentrationsof hydrogen while reducing nitrogen oxide (NOX)
emissions with a method called Integrated Coal
Gasiﬁcation Combined Cycle with CO2 Capture(CCS†1-IGCC†2). In trial combustors using this technology, NOX emissions were suppressed to below
the environmental limit,†3 which has been an

issue when reducing CO2 emissions from coal. This
technology is being developed as part of a projectof the New Energy and Industrial Technology
Development Organization, Japan, for zero-emission coal-ﬁred power generation technologies, inwhich Hitachi has participated since ﬁscal 2008.
Hitachi will continue to contribute to the conservation of the global environment through R&D
in energy, by promoting the wider use of environmentally conscious and highly efficient power
generation technologies based on effective use ofresources, including thermal power generation.
†1 CCS: Carbon dioxide capture and storage. A technology to collect and store
carbon dioxide and prevent atmospheric emissions of this greenhouse gas.
†2 IGCC: Integrated coal gasification combined cycle. A combined cycle systemthat generates power from the steam from gas turbines and the heat emitted
by those turbines, gasifying coal and reacting the carbon monoxide from thatgas with the hydrogen in steam.
†3 Environmental limit: The Air Pollution Control Act restricts the NOX emissions
density of a gas turbine to 70 parts per million (16 percent of the oxygen density of critical emission gases). Some prefectures in Japan have establishedeven more stringent regulations.

Visually Forecasting Production Fluctuations after
Mishaps
Against the backdrop of business globalization,
production sites and distribution networks have
expanded on a global scale. Unexpected disasters such as the Great East Japan Earthquake andthe ﬂooding in Thailand are resulting in increasingcases of supply chain disruption. At Hitachi, production management technology has been developed based on a statistical model to accurately
predict production output and ﬂuctuations in the
production line due to events such as component
shortages or machinery breakdown. This technology allows swift contingent plans to be executed inorder to prevent delays in deliveries or declines in
production volume.
A color visualization system was proposed sothat when predictions of future ﬂuctuations are
made, the outcome can be easily understood byanyone. For example, if a machine breaks down,
there is a display of the impact on later processes
based on empirical production data. This information is shown as raindrops that range from red fora major impact to yellow for a medium impact andblue for almost no impact. When a problem occurs,
the system shows highly accurate predictions of the

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Machine breakdown

Production process

Present

Quantiﬁcationof production
performance data

Time

Repercussive
predictionof distribution
ﬂuctuations
Production volume
System size
visualization system• Number of processes: approx. 1,000 to 1,300(according to the product)
Small• Number of machines: approx. 400
Medium• Number of workers: approx. 150
Large• Number of performance data: approx. one million daily

Production volume visualization system

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Intellectual property (IP) is a key element of
Hitachi’s business strategy. We are developinga global patent portfolio and promoting IP activities focusing on Social Innovation Business.
We are also conducting anti-counterfeiting
activities to protect Hitachi’s brand, and areworking on international standardization to
expand markets in our business areas.

Focused Areas of IP Activities
To support our business strategy, we focus on
the Social Innovation Business in our IP activities.
Examples of our focuse on this technology:· Highly reliable internet clouds· Smart grids· Energy (coal-ﬁred thermal power etc.)· Green mobility (inverter, motor etc.)· Healthcare (proton beam therapy system etc.)

Globalization of IP Activities
It is important to build a global patent portfolio
to engage effectively and competitively in the
global marketplace. We have worked to increase
our patent application ratio outside Japan from47 percent in ﬁscal 2009 to 55 percent by ﬁscal
2012. In ﬁscal 2011, this ratio reached 55 percent;we successfully achieved our goal a year early.
Speciﬁcally, we are increasing patents and patentapplications in China and emerging countries
across Asia. To obtain patents efficiently in several
countries or regions, we ﬁle international patentapplications (PCT: Patent Cooperation Treaty).

Major Targets

47
40

21

22

20
26
0

55

51

29

We believe that protecting our business by IP is
crucial. We are building a patent portfolio focusing
on technologies consistent with Hitachi’s strengths
from the standpoints of market needs and technology trends. With this patent portfolio, we can prevent other companies from using our technologies
without our authorization and protect our businessby differentiating our products and services. In
some cases, we use our patent portfolio to havecross-licensing agreements with other companies
to promote smooth business activities without theconstraint of IPs from those companies.

Reward System for Employee
Inventions

Patent Application Ratios outside Japan*1
(%)
60
55*2

Contributions to Hitachi’s Business

21

34

2010
2011
2009
(FY)
Patent applications in U.S. and Europe
Patent applications in China, PCT applications*3 and others*1 Hitachi, Ltd. and consolidated subsidiaries*2 FY 2012 target*3 The number of PCT applications is counted based on thenumber of countries where Hitachi is expected to obtainpatents.

We motivate employees on the R&D frontlines witha reward system for new inventions. To ensure thatthe reward system is operated fairly and transparently, we set standards to evaluate inventions anddisclose these standards to employees. We also
have a mechanism for receiving inquiries for paid
rewards and opinions on the reward system.
For example, we have developed an invention
information system to promote communication
between inventors and business divisions using
their inventions. Through this system, inventors can
ask the business divisions for patent implementation status and check the evaluation standards used
to calculate the rewards for their inventions.
In addition, from ﬁscal 2005, we have given
awards to the top 100 inventors. In year 2006, we

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030 Risk Management
033 Compliancealso awarded the top 50 young inventors (under 35
years old) who received patent application rewards
based on patent applications ﬁled within ﬁve yearsof joining Hitachi.

Respect for IP
We respect IP rights (IPRs) of others, as we expect
them to respect ours. We follow in-house rules†1and conduct preliminary searches of others’ patents
before undertaking R&D on new products andtechnologies to avoid IPR infringements. For IPRs
that belong to others, we obtain licenses from IPR
holders before we use them. If any company isfound to have infringed our IPRs, we encouragethem to acquire the necessary license, and will takelegal action, if necessary.
†1 In-house rules: The Hitachi Group Codes of Conduct state “We will respect
the intellectual property of other parties. We will prevent violations of otherparties' intellectual property rights in advance and, for the smooth progressof business, we will investigate other parties' intellectual property rights
beforehand when engaged in research, development, design, production
and sales of new products or new technologies, and implement appropriate
measures when any doubts arise.”Anti-counterfeit Activities
To maintain and increase Hitachi’s brand value,
we have a rigorous regime against activities that
infringe Hitachi’s trademark rights, such as making
and selling counterfeit goods carrying the Hitachibrand and illegally applying for or registering
trademarks similar to the Hitachi brand. To ensure
Hitachi’s further growth as a global company, weneed to use our trademark rights to protect ourbrand against infringements by third parties. The
Hitachi brand is now registered as a trademark inmore than 200 countries and regions.
The usual anti-counterfeit action is to send
warnings and/or report to government agencies
based on legal protection against manufacturers,
distributors, wholesalers and vendors who infringe
Hitachi’s trademark rights. Recognizing, however,that the supply of counterfeit products exists only
where there is demand, we are also educating
consumers about counterfeit products, to attack
counterfeit products from both the supply anddemand sides.
Cooperation from local law enforcement andgovernment agencies is essential in dealing withinfringements. We contact Japan’s Ministry of
Economy, Trade and Industry (METI), Ministry ofForeign Affairs and other governmental bodies, aswell as law enforcement agencies, governments
and authorities in other countries and regions.
We also hold seminars and workshops in order
to exchange information and views seeking theircooperation for our anti-counterfeit activities.

International Standardization
Activities
We actively support international standardization,
and we contribute to standardization organizations.
For example, we have one employee who is the IEC(International Electrotechnical Commission) vicepresident. We also help to establish international
standards for technologies developed in Japan,such as biometrics and encryption.
For example, as Technical Committee Chairman
at Ecma, we took a leadership position to standardize interfaces for coordinated control of IT equipment and air conditioning in environmentallyconscious data centers. An Ecma standard “Smart
Data Center Resource Monitoring and Control”
was issued in December 2011. For smart cities, as amember of the International Standard Innovation
Technology Research Association, we worked toestablish a new subcommittee, TC268 SC1 “Smart
Urban Infrastructure Metrics,” in the International
Standardization Organization (ISO) in February 2012.
Hitachi’s standardization performance received
a METI Minister’s Award at METI’s Industrial
Standardization Awards in ﬁscal 2011.

Cultivating Human Capital
We drive IPR initiatives forward by cultivating employees who are highly skilled and globally aware.
As of April 1, 2012, our Intellectual Property Grouphad 99 registered patent attorneys and six lawyers
registered in the US and the UK. Every year, we send
four to six employees from our Intellectual Property
Group to patent and law offices in the US andEurope for internships.

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Brand Management
To grow our Social Innovation Business worldwide, we must improve our brand recognition
and reputation in every market, establishing
the Hitachi brand in the Social Innovation
Business arena.
We communicate globally with stakeholders
about the measures needed for a fuller understanding of Hitachi so that we can increase thevalue of and minimize the risk of damage toour brand.

Global Brand Strategy
For developing Social Innovation Business globally, we need to communicate our vision andbrand promise to stakeholders. In many markets,
people still perceive Hitachi as an appliance orconsumer products manufacturer; on the other
hand, Hitachi is barely known in many emerging
markets. So, to establish a reputation as a Social
Innovation Business, we must promote the brandexternally through advertising, public relations,and CSR initiatives, while raising our own
employees’ awareness of the brand promise andencouraging employees to engage in activities
based on that promise. Together as One Hitachi,
we will evaluate the effectiveness of our activities
to improve the value of the Hitachi brand.

In ﬁscal 2011, we conducted surveys in 8 of the
11 key regions†1 targeted in the New Globalization Plan within the Mid-Term Management Plan.
Because our traditional key markets have a strong
perception of Hitachi as an appliance or consumer
products manufacturer, we need to build an image
there as a Social Innovation company. In most of
the 8 regions, however, we still have limited brandrecognition and our brand image remains vague.
We will plan and execute ﬁscal 2012 initiatives
based on these survey results, and then repeat thesurvey to check the effectiveness of the steps taken.
†1 11 key regions: The following 11 regions were selected from global markets
as major business opportunities: Indonesia, Brazil, Vietnam, Turkey, China,
Central/Eastern Europe, India, Russia, Saudi Arabia, South Africa, and Egypt.

Global Brand Strategy Development
Structure
To identify local needs, the Hitachi Group Brand
Committee asked local brand committees to propose local brand strategies based on their own marketing activities. Drawing on the views of the committee, the Brand Strategic Investment Committee
then adds in a company-wide global strategy element from the perspective of the entire group. The
global brand strategy that we ultimately implement
is therefore the product of collaboration among
local operations, Hitachi Group companies, andHitachi, Ltd.
Global Brand Strategy Development Structure System

Corporate statement logo

AdviceWEB Hitachi Brand Strategy
http://www.hitachi.com/about/vision/brand/

Evaluating Our Global Brand Strategy
We conduct an annual survey in key markets on the
degree of recognition and the image of the Hitachibrand to conﬁrm the effectiveness of our global
brand strategy. We use these ﬁndings to review
brand initiatives in line with the 2012 Mid-Term
Management Plan, working to boost brand value.

Proposals from strategy
implementation division
executive office in local
operations for eachregion and Hitachi, Ltd.

045

Facility and budget
authorization

Hitachi, Ltd.
Corporate Brand &Communication Division

Hitachi Group
Brand Committee

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Hitachi, Ltd.
Brand Strategy
Investment Committee

Regional Brand
Committee

Initiative
implementation
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Improving the Global Brand

Web Management

Based on the management policy of growing ourSocial Innovation Business worldwide, we areshifting the focus of our corporate communication
activities to outside of Japan. We are particularlyinterested in strengthening our brand in the 11 key
regions identiﬁed in the New Globalization Plan.
In this way we promote Social Innovation Businessdirectly to customers through, for example, corporate advertising campaigns and events such as
the Group-wide Hitachi Exhibition 2011 held in
Brazil. In the advanced nations, we are promoting
a greater understanding of Hitachi through social
media and by supporting the business forums thatworld opinion leaders attend and engage in.

We have responded to increased Internet use worldwide by enhancing our Web portal sites†1 in every
country and region, making them the key tools for
publishing important information. We post content
on Hitachi Group Social Innovation Business initiatives, as well as convey a consistent Group brandmessage. In recent years especially, we have built
websites in the emerging nations that we position
as key markets. As well, we create content on important business areas in those countries and regions.
At the end of March 2012, we had 60 websites
in 28 languages covering 47 countries and regions,
unifying our brand image with a common design.
Responding to the recent surge in social media
users, we have created a policy for social media
use in the Hitachi Group that is the base for an
active campaign to use social media to strengthen
relations with stakeholders.
†1 Portal site: Website unifying diverse web pages
WEB Hitachi Global Site
http://www.hitachi.com/

Hitachi’s Global Portal Site

EuropeGlobal Site

U.S.A.
China

Japan
Asia
Middle East and North Africa

Oceania

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Reputation Management

Our employees deal directly with stakeholders,making them important contact points for building
the brand. To ensure that employees thoroughly
understand and apply our brand vision, mission, andvalues, we promote the Hitachi Group’s brand promise and brand awareness. We also use internal initiatives—across the globe—to encourage desirable
employee behavior. In ﬁscal 2011, 981 employees
attended ﬁve brand seminars worldwide.
We strengthen employee awareness of the
Hitachi brand by giving out awards called The
Inspiration of the Year Global to initiatives that help
improve our brand’s value. In ﬁscal 2011 however,
we suspended the awards because they might haveinterfered with recovery from the Great East Japan
Earthquake. We have since worked with operations
outside Japan to fundamentally review the awards
system, creating a new system where applications
are screened and awards are presented locally
based on a common set of standards. The awards
will be re-launched in ﬁscal 2012.
To promote understanding of our brand in amore localized way, we are currently working with
communications departments in Asia and Europe
to develop an international brand program. We arealso surveying Hitachi Group employees in Asia on
how well they understand the Hitachi brand, using
this information as a reference for creating brandeducation content.

Globally, all Hitachi Group companies share the
Hitachi brand. This generates group synergies forinnovation and trust in the brand. We recognizethat accidents and rumors can damage the brandglobally, so we have set up communication divisions
at regional headquarters outside Japan to handlerisks to our reputation. These divisions ensure thebroad recognition of our activities by regularly
communicating with the media and government
agencies, as well as members of nongovernmentalorganizations and opinion leaders in every country
who are particularly interested in human rights andenvironmental issues. These divisions work hard tocorrect public misperceptions about our operations.
In ﬁscal 2011, we conducted a pilot survey inEurope that examined Hitachi’s reputation in relation to seven areas including leadership, trackrecord, and stakeholder relations. Targeted at both
employees and external stakeholders, the survey
provided valuable hints on key factors to improve
our reputation and the role and future directionthat stakeholders perceive for Hitachi. We have also
introduced a management system for Web inquiries that can be used across the Group for opinions,complaints, and questions received from customers.
These inquiries are being kept as a valuable sourceof information for reputation management.
Hitachi, Ltd. and regional headquarters outside
Japan collaborate to mitigate risk to the brand andresolve problems arising from accidents or rumors.
Moreover, they seek to proactively prevent the
spread of the impact and future occurrences byinvestigating similar and related incidents in otherareas or businesses.

Evaluating the Effectiveness of Brand
Initiatives
We survey customers’ and other stakeholders’opinions of communications initiatives based on
our brand strategy. We then use this information
to make improvements. We also set global benchmarks that we use to improve the effectiveness ofbrand initiatives. In ﬁscal 2011, we held the Hitachi
Exhibition 2011 in Brazil, one of our 11 key regions.
This event helped promote understanding of the
Hitachi brand. In a survey of stakeholders visiting
the exhibition, 85 percent felt that their understanding of Hitachi’s business had improved.†1†1 Questionnaire: October 2011

Action against Infringement of theBrand Value
The Hitachi brand is an important and clear “promise” to all stakeholders of our fundamental worth,and that includes our management philosophy,social mission, and speciﬁc corporate activities.
To reach our goals, it is essential to communicate
continuously and consistently with one voice basedon the integral principles of the Hitachi brand.

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We globally uniﬁed the presentation and use of
our logo and trademark to roll out our message asa single global entity, or One Hitachi. The HitachiGroup Identification Standards Manual lays out
how to use the logo. We have integrated visual
impressions of the Hitachi brand, by developing adesign system for each medium.
Safeguarding the Hitachi Brand
We provide legal protection for the Hitachi brandby working hard to eliminate counterfeit appliancesand parts in such high-risk regions as China, the restof Asia, the Middle East, and Africa. In countries orregions where brand infringements are particularly
widespread, we collaborate with local companies tostep up anti-counterfeiting programs.

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Photovoltaic system at Omika Works, Hitachi, Ltd.

Environmental Report

MESSAGE

Pursuing corporate environmental management globally to contribute to realizing a sustainable
society and to conserve the environment through the development of superior, original technology
and productsShigeru Azuhata
Executive Vice President and Executive Officer
Hitachi, Ltd.
Hitachi Group Chief Environmental Strategy
Officer

After the recession caused by the Lehman Brothers collapse, I
had a refreshed feeling from the economic restoration plansdesigned by developed nations, which created new businesses and employment by addressing global environmental
issues. They are using environmental technologies to revitalize their economies. But as these plans went into action, theGreat East Japan Earthquake struck, and more recently we arefacing concerns that an economic crisis originating in Europe
will trigger another global recession. This situation has
underscored the importance of balancing environmentally
viable post-earthquake reconstruction plans with economic
revitalization. Against this background, the Hitachi Group willcontinue to emphasize Social Innovation Business to realizesocial sustainability.
The Hitachi Group’s Environmental Vision centers on
preventing global warming, conserving resources, and preserving ecosystems. We aim to prevent global warming byhelping reduce annual CO2 emissions by 100 million tonnes
by ﬁscal 2025 through making all our products and services
Hitachi Eco-Products, which have lower environmental burden. We are also promoting energy conservation in several
ways, notably by introducing highly efficient equipment in
our factories and offices. For resource conservation, our waste
reduction programs are already ﬁrmly established within the
Hitachi Group. To further enhance product reuse and recycling, we are developing a new technology to recover rareearth magnets from used products. To help preserve ecosystems, we are continuing to carefully manage chemical substances, and have created a technique to assess the impact ofour business activities on ecosystems.
We have sent more people from Japan to North America,
Europe, China, and elsewhere in Asia to reﬂect regional environmental policies in our business activities, and we are communicating more effectively with stakeholders.
We will continue to tackle environmental issues based on
our Corporate Credo of contributing to society through thedevelopment of superior, original technology and products,
pursuing both environmental protection and business growth.

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Environmental Activities Worldwide
In the Hitachi Group, we contribute to environmental protection by acting globally

Energy saving by high efficiency data center
Hitachi delivered a high efficiency modular coolingsolution, which adopts the use of natural circulationof refrigerant, in London data center. Hitachi iscontributing to saving the energy consumption of thedata center.
(Hitachi Plant Technologies)

Introducing electric vehicles
In the UK, zero-emission electric vehicles are introduced to enable customers to experience the beneﬁts
as well as the differences from conventional cars.

Reducing CO2 Emissions ▶ p. 055

Preventing Global Warming ▶ pp. 069–071(Hitachi Capital Vehicle Solutions Ltd.)

EuropeReducing waste at an equipment plant
At a construction equipment manufacturing plant in
the Netherlands, a system was introduced to remove
chemical sludge from the painting process.
(Hitachi Construction Machinery Co., Ltd. (Europe) NV)

Reducing Waste ▶ pp. 071–073
Annual CO2 emissions
by country and region
More than
5 billion tonnes
1 to 5 billion tonnes
500 million to
1 billion tonnes
100 to 500 million
tonnesLess than
100 million tonnes
Source: CO2 Emissions from
Fuel Combustion Highlights(2011 Edition), IEA.

AmericasSupercritical pressure thermal power plant
The Keephills 3 power plant, operated jointly by
Canada’s Capital Power Corporation and TransAlta
Corporation, contributes to an annual reduction in CO2emissions of 190,000 tonnes.

Raising employee environmental awareness
Activities raise employee environmental awareness in
the United States. Waste reduction reports, educational
materials, and achievements by each office are
publicized and shared company-wide.
(Hitachi Consulting Co., Ltd. (USA))

Eco-Engineering ForumThe third Eco-Engineering Forum: Building Sustainable
Cities was held in Washington, D.C. Presentations anddiscussions featured stakeholders from corporations aswell as federal and local governments.

Reducing CO2 Emissions ▶ p. 055

Environmental Communication▶ pp. 083–084

Environmental Communication▶ pp. 083–084

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Operation of pumped storage power plant
The Xilongchi Pumped Storage Power Station (output:
1,224 MW) started operation in China. Helping to meet
China’s demand for power, the plant contributes to anannual CO2 emissions reduction of 193,000 tonnes.

An environmentally conscious coating line
When expanding the coating line, a system for solvent
collection using cold condensation was developed andintroduced, cutting VOC emissions in half.
(Hitachi Chemical (Suzhou) Co., Ltd.)

Reducing CO2 Emissions ▶ p. 055

Managing Chemical Substances ▶pp. 076–077

Introducing circulating water treatment system
A new circulating water treatment system andtreatment plant promote recycling and zero emissions,recognized as a Water-Saving Company and Zero
Emissions Company of Shanghai.
(Hitachi Elevator (Shanghai) Co., Ltd.)

Conserving Water ▶ pp. 074–075

China
Annual CO2 emissions
by country and region
More than
5 billion tonnes
1 to 5 billion tonnes
500 million to
1 billion tonnes
100 to 500 million
tonnesLess than
100 million tonnes

Omika Smart Factory ProjectA 940 kW photovoltaic system has begun to operate at the Omika Works, which produces informationand control systems. An Energy Management System(EMS) is being built, which enables production planning based on demand forecasts.

Source: CO2 Emissions from
Fuel Combustion Highlights(2011 Edition), IEA.

Preventing Global Warming ▶ pp. 069–071

Green Curtains
To save electricity, growing climbing vines that form
“green curtains” lowering the room temperature insidebuildings. This program is in effect at more than 300
Hitachi Group sites and at some employees‘ homes.

Japan

Preventing Global Warming ▶ pp. 069–071

Asia

MORE STARS
MORE SAVINGS

Air conditioner: energy saving and comfort
The ACE Follow Me high-end air conditioner sold in
India was rated 5 stars (the highest rating) by India’s
Bureau of Energy Efficiency. (Cooling capacity: 1.2, 1.5
TR class)(Hitachi Home & Life Solutions (India) Ltd.)

Improved transport efficiency
Improved parts pickup and delivery, two-layer rack
stacking for loading efficiency, and route integrationsave approximately 200,000 km per year per truck oftransport route distance.
(Hitachi Electronic Products (Malaysia) Sdn. Bhd.)

Hitachi Eco Conference 2012
In February, Eco Conference on Economic Development
and Sustainable Infrastructure was held in Jakarta,
Indonesia, inviting government and NGO officials. We
showed products contributing to Indonesia’s national
development.

More Eco-Products ▶ pp. 060–064

Preventing Global Warming ▶ pp. 069–071

Environmental Communication▶ pp. 083–084

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Corporate Environmental Management
Strategies and Initiatives
Guided by the Environmental Vision, aimed
at achieving a sustainable society, our corporate environmental management is being
carried out to meet the goals set by the longterm Environmental Vision 2025 and ourEnvironmental Action Plan. In addition, corporate environmental management is a focus of
the Hitachi Group 2012 Mid-Term Management
Plan looking ahead to ﬁscal 2012.
We are helping to reduce environment burden by providing our products and services andthrough our business operations.

Hitachi’s Environmental Vision

The Hitachi Environmental Vision
Hitachi has drawn up the Environmental Vision
which describes the aim of our corporate environmental management: “to achieve a sustainable society.” The world’s population is expected
to reach 9 billion by 2050.†1 At the same time,worldwide GDP continues to grow. The increase ineconomic and social activities increases demand forenergy, water, minerals, and other resources. Thishas made environmental problems worse, such as
resource depletion and climate change. To solvethese problems faced by the entire world, the loadon the environment must be reduced to the highest
extent possible to achieve a sustainable society.
We are committed to global warming prevention, resource conservation, and ecosystems
preservation as the three pillars of our vision. Our
goal is to achieve a more sustainable society bypromoting global production that reduces the environmental burden of a product throughout its life
cycle. As a milestone on the way to realizing thisEnvironmental Vision, we drew up the long-termplan Environmental Vision 2025 looking ahead toﬁscal 2025.

Long-Term Plan Environmental
Vision 2025
The Intergovernmental Panel on Climate Change(IPCC), a UN panel assessing and advising on thecauses and effects of climate change, concluded in
its Fourth Assessment Report that CO2 emissions
must peak by 2015 and be reduced by 50 to 85 percent of their 2000 levels by the year 2050 in order
to meet the minimum stabilized density scenario forWorld Outlook for Energy-Related CO2 Emissions andReduction Scenarios†1 According to the United Nations report, World Population Prospects: The 2010
Revision(billions of tonnes/year)
Current policies scenario
45
450 ppm scenario(sector and40.7 billion tonnes reduction amount)40
Necessary
reduction
15.9 billion
tonnes

35

11.1
Power
billiongeneration
tonnes30.430

4.8 Total ﬁnal consumption
billion etc. (including industry,
tonnes transport, buildings)

25

24.8 billion tonnes

0

2010

2030 (year)

Based on energy-related CO 2 emissions in IEA World Energy
Outlook 2011

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greenhouse gases (450 ppm stabilization scenario).
The International Energy Agency (IEA) has
drawn up a CO2 emission reduction scenario allocating the amount of reductions for power supply anddemand. Hitachi is widely conducting business inboth of these sectors. For this reason, the long-term
Hitachi Group Environmental Vision 2025 targets
the prevention of global warming, one of the issues
that the world is facing today, and states our goalof helping reduce annual CO2 emissions by 100
million tonnes by 2025 through Hitachi products
and services.
This means that as we reduce CO2 emissions–byimproving the environmental efficiency of HitachiGroup products and by other means–our contribution
to curbing CO2 emissions through the use of our products and services will be 100 million tonnes per yearby 2025 compared with the products of the base year,
ﬁscal 2005. The target of 100 million tonnes was calculated based on growth strategies in each businesssector. Some 70 percent of the reductions are being
targeted in the power sector, 20 percent in the industrial sector, and 10 percent in the transportation, commercial, and residential sectors.

To reach these goals, we are working toincrease the ratio of our products that are Hitachi
Eco-Products (see page 060), with a reduced
burden on the environment. We are expanding
business opportunities further by working withpartners in global markets.
Our contribution to CO2 reduction in ﬁscal 2011
is estimated to be 18.09 million tonnes. This is lessthan our target of 20 million tonnes. A wide rangeof products and services contributed to the reduction in emissions, including high-efficiency thermaland hydro power plants, energy-saving information
systems, consumer electronics products, and industrial equipment, as well as parts and materials usedin energy-saving products. Due to the effects of thedisaster caused by the Great East Japan Earthquake,
however, plans for introducing electric power plants
were drastically altered, preventing us from achieving the original targets. We will continue working
to develop and popularize products that contributeto CO2 emission reductions.

Key Indicators
Contributions to CO2 Emission Reduction (base: FY 2005)(millions of tonnes/year)
100 million tonnes/year
Transportation, commercial,
and residential sectors
10%
Industrial
sector
20%
63.00

100
Contribution to CO2 emission reduction

80

60

40

20

0

35.00
15.51

18.09

2010

2011
(estimate)

2015

Power
sector
70%

2020

2025
(FY)

The 2009 ﬁgures in the IEA's CO2 Emissions from Fuel
Combustion Highlights (2011 Edition) were used for CO2
emission coefficients.

WEB Details of methods for calculating the contribution of Hitachi products andservices to the reduction in CO2 emissions
http://www.hitachi.com/environment/activities/third/method.html

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Main Products Contributing to CO2 Emission Reductions in Fiscal 2011
Pumped Storage Power Plant
Hitachi Mitsubishi Hydro Corporation

Supercritical Thermal Power Plant
Power Systems Company, Hitachi, Ltd.

193,000

190,000

tonnes of CO2

tonnes of CO2

Keephills 3 power plant (Canada)

Xilongchi pumped storage power station (China)

The Keephills 3 power plant (output: 495 MW), owned by a joint
venture founded by Canada’s Capital Power Corporation and TransAlta
Corporation, began commercial operation. Similar to Canada's ﬁrst
supercritical coal-ﬁred power plant, Capital Power's Genesee 3 plant,
Hitachi supplied the entire plant including the boiler, turbine, environmental control systems and related facilities. For coal-ﬁred power
generation, essential for meeting worldwide power demand, supercritical pressure boiler technology is seen as promising because of its
high energy efficiency. The new plant, Keephills 3, will contribute to anannual reduction in CO2 emissions of 190,000 tonnes.*

The Xilongchi pumped storage power plant (output: 1,224 MW) in
China started commercial operation. This plant, which takes advantage
of a large difference in elevation of around 700 meters, was deliveredas the ﬁrst pumped storage power plant in China by a consortiumof Japanese companies. Its main feature is that although it uses ahigh elevation drop and is designed for high output, it generates very
little noise or vibration. Pumped storage power generation works bypumping water to a higher elevation during slack periods and using
the stored water to generate electricity during high-demand periods.
In this way it is able to match supply to demand, and this station iscontributing to the stable supply of electricity to the Huabei region,
including Beijing. The new plant will contribute to an annual reduction
in CO2 emissions of 193,000 tonnes.** Compared with the average CO2 emission coefficients of coal-ﬁred power
plants around the world in 2005

* Compared with average CO2 emission coefficients of all power sources
around the world in 2005. Calculated by Hitachi, Ltd. on the assumptionof certain operating conditions.

Disk Array System
Information & Telecommunication Systems Company, Hitachi, Ltd.

Hybrid Hydraulic Excavator
Hitachi Construction Machinery Co., Ltd.

23.4

9.7

tonnes of CO2

tonnes of CO2

Hitachi Virtual Storage Platform

ZH200 hybrid hydraulic excavator

The Hitachi Virtual Storage Platform is an enterprise disk array
optimized for a cloud environment, taking advantage of innovationin virtualization and automation. Along with high performance, it
uses a modular architecture for ﬂexible scaling in the cloud. Non-stop
operation is made possible by the redundancy of the main systemcomponents. Energy efficiency is improved by using large-capacity 3.5inch HDDs (hard disk drives) and 2.5-inch SSDs (solid state drives) as
well as low power consumption HDDs. The contribution to the annual
reduction in CO2 emissions per system*1 is 23.4 tonnes.*2

Hitachi Construction Machinery’s ZH200 hybrid hydraulic excavator
stores the electricity in a capacitor that is generated as the motorized
swing arm decelerates, using this electricity to assist the hydraulic motor during acceleration. The hydraulic system uses three pumps andcontrol valves, rather than two as in the standard model (ZX200-3), formore precise output control, reducing hydraulic loss. These systems aredesigned to optimally supplement each other’s operation. Comparedwith the same work done by a standard model, fuel consumption is
reduced by 20 percent. One ZH200 excavator contributes to an annual
reduction in CO2 emissions of 9.7 tonnes.**1 2,521 TB model using 1,280 3.5-inch HDDs.
*2 Compared with Hitachi Universal Storage Platform (2005 model using
1,152 3.5-inch HDDs for a capacity of 332 TB).

* Compared with a standard model (ZX200-3), which has been on themarket since 2006

WEB Methods for calculating the contribution of Hitachi products and services to the reduction in CO2 emissions
http://www.hitachi.com/environment/activities/third/method.html

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Environmental Action Plan
Hitachi adopts environmental action plans
every ﬁve years for achieving the Environmental
Vision and for promoting the long-term plan
Environmental Vision 2025. To this end, we aredeﬁning speciﬁc action items and targets. One
aim is to achieve emission neutral by ﬁscal 2015.
We began implementing the Third Environmental
Action Plan in ﬁscal 2011.
Emission Neutral
As a result of our environmental activities tobecome emission neutral by ﬁscal 2015, we wereable to achieve this state ahead of schedule (inﬁscal 2011). The emission neutral concept is gearedat minimizing the environmental load throughout
the life cycle of products. It is achieved when the
direct environmental load becomes equal to thesocial environmental load reduction. Direct environmental load means the total impact from all
manufacturing stages, from raw materials reﬁning
and processing to production and transportation.
It includes such impacts as greenhouse gas emissions, waste materials chemical emissions, andother environmental loads that can be reducedby the company. Social environmental load reduction means the amount reduced in greenhouse gas
emissions through product energy efficiency andresource conservation during product use and recycling, waste generated, and so on compared withproducts marketed in ﬁscal 2005.
To date, besides improving efficiency aimed at
reducing the direct environmental load from production, we have been decreasing the social environmental load through the development and sales
growth of Hitachi Eco-Products. In ﬁscal 2011 ourdirect environmental load was 16.13 million tonnesof CO2 while the reduced social environmental load
was greater than this at 18.06 million tonnes ofCO2, which means emission neutral was achieved
before the ﬁnal year of the plan.
The Emission Neutral Concept
Direct Environmental Load(total: 16.13 million tonnes CO2 per year)

Material
production/
processing

Manufacturing

Transportation

Reduced Social Environmental Load(18.06 million tonnes CO2 per year)

Use

Take-back/recycling

Hitachi Action Guidelines for Environmental
Conservation
PurposeIn order to realize an environmentally harmonious and sustainable society throughproducts and services, Hitachi is committed to meeting its social responsibilities
by promoting globally-applicable ‘MONOZUKURI’ (designing, manufacturing or
repairing of products), which is aimed at reducing environmental burdens of products
throughout their entire life cycles, ensuring global environmental conservation.
Action Guidelines
1. Global environmental conservation is a critical challenge shared by all humans.
Hitachi is committed, therefore, to fulﬁlling its responsibilities by assisting in therealization of an environmentally harmonious and sustainable society as one of its
management priorities.
2. Hitachi will make efforts to contribute to society by developing highly reliable
technologies and production processes, while identifying needs considering
concerns related to the prevention of global warming, conservation of resources,
and preservation of ecosystems.
3. Members of the board in charge of environmental conservation are responsible
for facilitating appropriate environmental conservation activities. Departments responsible for environmental conservation should endeavor to promote and ensure
environmental conservation activities, including improving environment-related
rules and regulations and setting goals for environmental burden reduction. These
departments should also conﬁrm that their environmental conservation activities
are conducted in a proper manner and ensure that these activities are maintained
and improved.
4. Hitachi will promote globally-applicable ‘MONOZUKURI’ with the aim ofunderstanding and reducing environmental burdens at every stage, including
product research and development, design, production, distribution, sales, usage,
and ﬁnal disposal.

5. Hitachi will investigate and review the environmental impact caused in the courseof its ‘MONOZUKURI’ processes. Hitachi will also introduce excellent technologies
and materials useful to safeguard the environment, in other words, to reduce
environmental burdens through energy and resource saving, recycling, chemical
substance management, consideration for the ecosystem, and other measures.
6. Hitachi’s environmental conservation efforts are not only to be focused on
observing international environmental regulations and those of national and local
governments, but also on conserving the environment by implementing voluntary
environmental standards when necessary.
7. Regarding globally-applicable ‘MONOZUKURI’ activities, impact on the local
environment and community are to be considered. In addition, measures that meet
local communities’ requests should be implemented.
8. Hitachi will educate its employees to take action in order to obey environmentrelated laws, raise their global environmental awareness, and encourage theirinterest in environmental conservation having wide-view about society activities.
9. Hitachi will evaluate potential environmental problems and prevent them fromoccurring. In the event that any environmental problem occurs, Hitachi will takeappropriate measures to minimize the environmental burden.
10. Hitachi will make efforts to disclose information on its environmental conservation
activities to its relevant stakeholders. Hitachi will also actively communicate
with these stakeholders so as to strengthen mutual understanding and forge
cooperative relationships with them.
Adopted March 1993, revised July 2010

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Overview of Environmental Action Plan
The Sustainability Compass depicts the four directions of environmental activities to be taken basedon the Hitachi Group Environmental Action Plan.
All these activities are designed and carried out inaccord with the Action Guidelines for Environmental Conservation.

Sustainability Compass

Eco-Mind & Global Environmental Management
Next-Generation Products & Services
Super Eco-Factories & Offices
Worldwide Environmental Partnerships

Hitachi Group Fiscal 2011 Environmental Action Plan: Targets and Results
Action goals

Indicators

Fiscal 2011 targets

Fiscal 2011 results*1

Achievement
level

Final ﬁscal year
(2015) targets

Page(s)Completion andannouncement ofbusiness assessment
on ecosystempreservation

pp. 058–059

Eco-Mind & Global Environmental Management
Establish environmental management systems
Ecosystem(biodiversity)preservation

Propose strategies for assessing ecosystempreservation

Draw up business
Assessment
assessments on
preparation
ecosystems preservation

Next-Generation Products and Services
Promote Eco-Products
Expand Hitachi EcoProducts lineup

Percentage of Hitachi Eco-Product sales

79%

80%

Number of models in Eco-Products Selectprogram

20 models

60 models

100 models

pp. 062–063

Deployment of newcertiﬁcation criteria

Completed

Average of one ormore certiﬁcations
per company/groupcompany

pp. 068–69

88%

pp. 060

Environmentally Conscious Factories and Offices
Build industry's most advanced factories and offices
Promote Eco-Factory& Offices Selectcertiﬁcation

Eco-Factories & Offices Select certiﬁcation

Prevent global warming
Reduce CO2 emissions

Rate of reduction in CO2 emissions(base: FY 1990, Japan)

16%

28%

20%

p. 069Reduce CO2 emissions
per unit production

Rate of reduction in CO2 emissions per unit
production (base: FY 2005)

6%

21%

10%

p. 069

12%

19%

15%

p.071

High Functional
Materials Group

8%

12%

15%

p. 072Assembly Industry
Group (other thanhigh functional
materials)

16%

15%

20%

p. 072

16%

42%

30%

p. 073

Decrease ratio of VOC
atmospheric emissions Ratio of VOC atmospheric emissions (emissions/5.8%
used amounts)(emissions/usedamounts)

6.4%

5% or lessp. 075

Reduce energy used in transportation
Reduce energy forshipping per unit
production

Rate of reduction in energy for shipping per unit
production (base: FY 2006, Japan)

Use resources efficiently
Reduce waste
generation per unit
production

Rate of reduction in
waste generation per unit
production(base: FY 2005)

Use water effectively

Rate of reduction in water use per unit
production (base: FY 2005, outside Japan)

Reduce VOC* atmospheric emissions
2

Worldwide Environmental Partnerships
Global citizenship program
Carry out environmental communication asSocial contributions
through environmental the ﬂagship activity of each company or groupcompany
activities

Five-year plan drafting
and implementation

One or more ﬂagshipactivities per company/ pp. 083–084
Group company

Completed

Achieved
Partially achieved*1 Data of Hitachi Global Storage Technologies, Inc. and Hitachi Displays, Ltd. are excluded*2 VOC: Volatile Organic Compounds

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The Third Environmental Action Plan, coveringﬁscal years 2011 to 2015, seeks to strengthen theinitiatives of the second plan, and sets higher targets for environmental load reduction for each of
the action items. In ﬁscal 2011, the ﬁrst year of theplan, we were able to achieve our targets for ten
items but fell short in the remaining two. We are
now making every effort to ensure our targets areachieved for all items by the ﬁnal year of the plan.

Preserving Ecosystems
We have made the preservation of ecosystems apillar of our environmental vision and incorporated
it into our Action Guidelines for Environmental
Conservation. Speciﬁc initiatives in this area aredeﬁned in the Hitachi Group Ecosystems Preservation Guideline and are carried out accordingly.
Corporations depend on beneﬁts from ecosystems, such as the provision of paper and water, andquality and quantity control of air, water and soil.
In order to continue receiving these beneﬁts and torestore ecosystems, we believe that we can contribute to ecosystem preservation in both businessand social activities. Speciﬁcally, for contributions
through business, we are promoting designs andproduction that reduce the impact on ecosystems
during the product life cycle (raw material procurement, production, transportation, use, recovery,
recycling and appropriate disposal), as well as
increasing the products and services for direct
preservation of ecosystems through water and air
puriﬁcation.
Corporations and Ecosystems
Ecosystem Services

Contributions through business
Reducing the load on ecosystems arisingfrom corporate activities

Corporations

Ecosystems

Providing and controlling raw materials(fibers, wood, etc.) and water

Creating products and services that
preserve ecosystems
Contributions to society throughnature conservation
Production dependent on ecosystems
Minimizing the negative impact (reducing burden on ecosystem)
Expanding the positive impact (contributing to ecosystem preservation)

Seeing chemical substance management as partof ecosystem preservation, we continue to ensurethat it is carried out correctly. For contributions tosociety, we encourage tree planting and ecologicalsurveys of rare plants and animals by employees
in volunteer programs, along with other programs
that preserve ecosystems.
Assessing the Corporate Relationshipwith Ecosystems
In the Hitachi Group Guide to Preservation of
Ecosystems issued in March 2011, we presented
to all employees our thinking on the relationshipbetween corporate activities and ecosystems, while
introducing trends and examples of initiatives being
taken around the world. To enhance awareness, inMay 2012 we issued Business Assessment on the
Preservation of Ecosystems and began evaluating
actions being taken in overall business activities. We
plan to review this assessment program regularly
and make ongoing improvements throughout theGroup.
In the Council on Competitiveness-Nippon(COCN), a private group bringing together businessleaders and experts from all areas to advise on policies for making industries more competitive, Hitachi
served as the leader and secretariat of a study teamon corporate activities and biodiversity. The study
team’s ﬁnal report summarizes trends in and outside Japan and includes a checklist for assessing theimpact of corporate activities on biodiversity.
In addition to the above corporate activities asa whole, we assessed the impact of two individual
projects on ecosystems during ﬁscal 2011, using the
Corporate Ecosystem Valuation (CEV) methodology
developed by the WBCSD (World Business Council
for Sustainable Development). CEV is a method
for making better business decisions by evaluating
both ecosystem degradation and the beneﬁts provided by ecosystems.
One of the projects is the water treatment services provided by Hitachi Plant Technologies, Ltd. in
the Maldives. The evaluation looked at the impact
on the surrounding ecosystems from the water supply infrastructure and clariﬁed the costs incurred by
Maldivian society and the environment. A second

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project is the GeoMation Farm agriculture information management system provided by Hitachi
Solutions, Ltd. The study quantiﬁed improved efﬁciency and reduction in environmental burden
from the application of information technology (IT)to agriculture. We plan to further evaluate the beneﬁts in additional studies.
WEB Council on Competitiveness-Nippon (COCN)
http://www.cocn.jp/en/index.html

Entrance to IT eco experimental village

Support for the Development and Spreadof Business Ecosystems Training (BET) for
Employees
In February 2012, the WBCSD announced Business
Ecosystems Training (BET): new course materials forteaching company employees about the relationship between corporate activities and ecosystempreservation. To enable more Japanese companies
to make use of BET, Hitachi prepared Japanese versions of the course materials and made them available on the Internet. Along with the use of thesematerials for internal training within the HitachiGroup, we intend to promote their wider use by
publicizing and introducing them in several ways.

TOPICS
Ecosystems Preservation at
IT Eco Experimental Village
The Information & Telecommunication Systems Company, Hitachi, Ltd. opened an IT eco
experimental village in Hadano, Kanagawa
Prefecture. The trials and studies being carried out there are aimed at determining theusefulness of IT for ecosystem preservation.
The village is also being used for communicating ecosystem preservation and otherenvironmental issues. In ﬁscal 2011, withthe participation of residents in neighboring
communities and local government officials
as well as children from nearby preschools,in the spring we planted rice in paddies that
had been fallow, then harvested it in autumn.
In cooperation with Tokai University, we
monitored the changes occurring in ﬂora,
fauna, and habitats as a result of humanJapanese squirrels photographed inside the village

intervention.
In ﬁscal 2012, we will continue humanactivities and IT applications. With local
residents, we will conduct ecosystem preservation activities and monitoring. Regarding
IT, we conducted an experiment to display
the village’s temperatures and humidity ona website for the visualization of environmental information using sensors and cloudcomputing.

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Environmentally Conscious Products and Services
We assess the environmental burden of products and services at the design and development
phase, and designate those products with areduced environmental burden as Eco-Products. In
fiscal 2011, 80 percent of our sales were for EcoProducts. We are moving ahead with design anddevelopment to make all Hitachi products EcoProducts by fiscal 2025.

Increasing the Ratio of Eco-Products
In 1999, we introduced Assessment for DfE (Designfor Environment) which sets speciﬁc environmentally conscious criteria for designing and developing
products and services to minimize their environmental burden. Products that meet DfE standards

Key Indicators
Transition in the Eco-Product Sales Ratio

are designated as Eco-Products. One of our goals is
to increase the Eco-Product sales ratio, or the ratioof Eco-Product sales to total product sales.
In ﬁscal 2011, to enable implementing the DfE
assessment and registering the results directly fromproduct designers outside Japan, we published
English and Chinese versions of the guidelines forthe assessment and created an English version of
the Eco-Product registration (database) system.
These initiatives helped increase the number ofmodels designated as Eco-Products to over 10,000
and the Eco-Product sales ratio to 80 percent, topping our goal of 79 percent.
Next Steps
To achieve our goal of boosting the Eco-Products
sales ratio to 88 percent by ﬁscal 2015, we will workon further globalization, including creating a Chineseversion of the Eco-Product registration system.

From FY 2010
Eco-Product
Sales
Eco-Producttarget sales

2%$

improvement$78%

FY 201080%

Eco-Product
Sales

$

Eco-Producttarget sales$

FY 2011The Eco-Product sales is the sales of all products, excluding those elementsthat Hitachi cannot control or influence in terms of environmental impacts,
such as patent income.

Eco-Product Increase(No. of models/year)
12,00010,476
9,456
8,387

9,000
6,954
6,000

5,741

3,000

0

2007

2008

2009

Number of Eco-Product models

20102011 (FY)How Assessment for DfE Is Performed
The environmental load for each product life cycle
stage—from material procurement to production,
distribution, use, and disposal—is assessed usingeight DfE criteria, including environmental protection measures and energy saving. The results arerecorded as 1 through 5. If a product scores at least
equal to or more than level 2, the reference level
before the latest major model change, in all 8 criteria and its average over all the criteria is level 3 ormore, it is designated an Eco-Product.
Management of the whole environmentallyconscious design and development process iscoordinated using the Hitachi Group Ecodesign
Management Guidelines. The guidelines—basedon the IEC 62430 international standard on genericprocedures for environmentally conscious design—require divisions, such as business planning, design,
procurement, manufacturing, and quality control,
to be environmentally conscious and keep records
on processes and results. This includes the use of
DfE assessment and Eco-Product development.

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How Assessment for DfE Is Performed
Design for Environment

Implementation of Assessment for DfE
Non-qualifying products

Eight Assessment Criteria (example)
1. Mass and volume
reduction
8. Packaging
2. Long-term usability
materials

Product Life Cycle
Resource conservation
Material
production

Manufacturing

Distribution

Use

Collection
anddisassembly

Eco-ProductQualifying
products

Disposal

7. Information
provision

Reuse or recycle

6. Energy savings

3. Recyclability
4. Ease of
5. Environmental dismantling& treatment
protection

Eight Criteria Used to Quantitatively Assess Environmental Load at Each Stage of the Product Life Cycle
DfE assessment criteria(examples)

Life cycle stage (examples)

Focal points of assessment (examples)

1. Mass and volume
reduction

Material production, manufacturing

Size and weight reduction, yield of parts and materials, assessment of mass and volume reduction of the
product

2. Long-term usability

Use

Upgradability, ease of maintenance and repair, durability, reliability

3. Recyclability

Reuse or recycling

Selection of materials and parts that are reusable or recyclable, use of recycled resources, recyclability rate

4. Ease of dismantling &treatment

Manufacturing, collection anddisassembly

Structure for easy disassembly, ease of separation, reduction of disassembly time, ease of collection andtransportation, safety during handling, ease of shredding

5. Environmental
protection

Material production, manufacturing,collection and disassembly, disposal

Environmental protection of parts and units, safety of equipment and materials for maintenance,
environmental protection in the manufacturing process, environmental protection for facilities

6. Energy savings

Manufacturing, use, collection anddisassembly, disposal

Energy-saving design of products, energy saving in production process, energy saving in distribution

7. Information provision

Use, collection and disassembly

Information provision to requesting parties, mechanism for information provision

8. Packaging materials

Distribution

Reduction in mass and volume of packaging materials, recycling of packaging material, ease of collection
and transportation of packaging materials, ease of disposal of packaging materials, environmental
protection during treatment, and ﬁnal disposal of packaging materials

Fiscal Year 2011 Breakdown of Eco-Products by Sector and Examples

SectorInformation &Telecommunication
Systems

Electronic Equipment &Systems, Components &Devices

Power Systems, Social
Infrastructure & Industrial
Systems, Construction
Machinery, Automotive
Systems

Digital Media & Consumer
Products

High Functional Materials& Components, Other

Breakdown (sales ratio)

20%

8%

39%

9%

24%

Servers

Transmission electron
microscopes

Highly efficient gas turbines

Short throw LCD projectors

Eco material cables

Electronic automatic
exchanges (EAXs)

Lithium-ion
rechargeable batteries

Surveillance cameras

Washer-dryers

Anisotropic
conductive ﬁlms

Key products

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Development of Eco-Products SelectEco-Products that meet even more demanding
requirements are designated Eco-Products Select.
These must (1) have either a global warming prevention factor or resource factor of 10 or more, or (2)be leaders in their industry for their energy efficiency
standard achievement rate†1 or similar factors, or (3)be highly rated outside the company or officially certiﬁed, or (4) have a carbon emission reduction at least
50 percent greater than ﬁscal 2005 products. Factor
10 or more indicates that the product has a global
warming prevention efficiency or resource efficiency
at least ten times greater than reference products thatwere sold in ﬁscal 2005, in principle.
We are committed to expanding the Hitachi

Eco-Products Select range by increasing the numberof Eco-Product Select models. In ﬁscal year 2011,
the ﬁrst year of the new program, 60 models were
designated Eco-Products Select, well above thetarget of 20 models.
†1 Energy efficiency standard achievement rate: Based on the Energy
Conservation Law (Act on the Rational Use of Energy), this value indicates therate of achievement for energy efficiency targets of certain home appliances.
The target values are deﬁned using the most energy efficient products
available at the time.

Examples of Eco-Products Select
HDRIVE Hitachi Motor Drive Energy Conservation Service
Hitachi inverters are installed in factory fans and pumps without any initialinvestment by customers.
Customer’s factory
Operational status

Hitachiinverter

Hitachimotor

Energy-savings report
Machinery andequipment
manufacturing
After-sales service

Fans, blowers(pumps)Inverters installed without
customer investment
Notiﬁcationof energysaving effects

Hitachi,
Ltd.

User
fees

Finance company(Hitachi Capital Corporation)
Processed at ﬁnance section

User fees

Remotemonitoring

Notiﬁcation of energysaving effects

Super-Amorphous Core Transformer
Huge reduction in transformer stand-by power• Product: HDRIVE Hitachi Motor Drive Energy Conservation
Service
Infrastructure Systems Company, Hitachi, Ltd.
• Environmentally conscious features and characteristics· Hitachi contracts with customers to install, operate, and adjust, as wellas maintain large-scale inverters that customers are often reluctant
to adopt because of cost and reliability. This comprehensive package,
which addresses both “hard” and “soft” elements, allows customers tohave energy-saving equipment with no initial investment.
· Introduction of high-voltage motors and large 400 kVA+ inverters
at large factories, such as petrochemical plants and cement works.
Since this service was launched in 2001, 360 GWh of energy has beensaved (as of May 2011), equal to about 138,000 fewer tonnes of CO2.
More energy savings are expected as additional factories use thisservice.
• Third-party evaluations· METI Minister Award, Business Model Area, Product and Business
Model Division, Energy Conservation Grand Awards 2011
· President’s Award of the Eco-Products Awards Promotion Committee
in the Eco-Services category, First Eco-Products Awards 2004

· Less no-load loss than conventional transformers,*2 which use siliconsteel plates in their iron cores, so less power (stand-by power) is
wasted when equipment is not operating.
• Third-party evaluations· Minister Prize of Land, Infrastructure and Transport, Product Contest,
59th Electrical Construction Equipment and Materials Fair 2011
· Grand Prize for Energy Saving Products in the Eco-Products Category,
Eighth Eco-Products Awards 2011

• Product: Super Amorphous XSH series
Hitachi Industrial Equipment Systems Co., Ltd.
• Environmentally conscious features and characteristics· The amorphous alloy with a high magnetic ﬂux density used in theiron core boosts performance to more than 150 percent of Top-Runnerstandards.*1*1 Top Runner standards: Reference values set under the Energy Conservation
Law (Act on the Rational Use of Energy) for evaluating energy efficiency (totalloss).
*2 No-load loss: Transformer load loss is divided into load loss, which is causedby the load on the transformer during electricity use, and no-load loss (standby
power), which occurs whether or not a load is present. No-load loss occurs
primarily in the iron core; load loss in the coil.

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Hitachi’s Framework for Environmentally Conscious Products

Eco-Products
SelectProducts that meet DfE
assessment criteria

Eco-Products· Either a global warming
prevention factor or aresource factor of 10 or
more· Industry leading level· Highly regarded outside
Hitachi or officiallycertiﬁed· Carbon emission reduction
is at least 50 percent
greater than ﬁscal 2005
products

Products

Global Warming Prevention Factor Calculation
The global warming prevention factor is the amount of improvementin efficiency of global warming prevention compared with a reference
product. The efficiency of global warming prevention is based on theconcept of environmental efficiency that balances the value of products
contributing to the quality of life and the reduction of their environmental load. We gauge the improvement in product value by function
and life span, using the amount of greenhouse gases emitted over the
product life cycle to calculate the reduced environmental load.
Deﬁnition of efficiency of global warming prevention
Efficiency of Global
Warming Prevention

Product function

Product life span

Volume of greenhouse gas emissions
throughout the product life cycle

Deﬁnition of factor of global warming prevention
Factor of Global
Warming Prevention

Efficiency of global warming preventionof evaluated productEfficiency of global warming preventionof reference product

Next Steps
Toward our goal of increasing the number of
Eco-Products Select by 100 models by ﬁscal 2015,
we will reduce greenhouse gas emissions, among
others, across the life cycle of the products.
Addressing Our Carbon Footprint
The Carbon Footprint of Products (CFP) is the CO2
equivalent of the total amount of greenhouse gases(GHGs) emitted over the entire life cycle of a product or service—from procurement of raw materials
through to disposal and recycling. Making the GHG
emission amount visible in this way boosts people’sinterest in buying products with low carbon emissions and encourages businesses to reduce theamount of carbon emitted by their products over
the whole life cycle. A number of countries aroundthe world use the CFP approach.
We participated in the CFP Pilot Project run
by the Japanese Ministry of Economy, Trade andIndustry (METI) and other ministries. In December
2011, we became the first company in Japanauthorized to use the CFP label on IT equipment(servers, storages, and network devices). For ourstorage products, CO2 emitted over the entire
life cycle per storage capacty (per function) is
compared with conventional storage, and theCO2 reduction rate is shown on the CFP label.
“Hitachi Group’s CFP initiatives and use of CFP in

Resource Factor Calculation
The resource factor is the amount of improvement in resource efficiency
compared with a reference product. Drawing on the same concept as
global warming prevention efficiency, we gauge the improvement inproduct value by function and life span, using the amount of resources
used over the product life cycle* to calculate the reduced environmental
load.

An example of carbon Footprint of Products Mark
(CFP reduction ratio) and Participating ProductsCompared toconventional modelAX2530S-24T

Deﬁnition of resource efficiency
Resource Efficiency

Product function

Product life span

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

Deﬁnition of resource factor
Resource Factor

Resource efficiency of evaluated product

Hitachi Compute Rack
110xL
Compared to conventional model(1TB SATA HDD Support, June 2008)—Reduction of CO2 emissions—
Carbon Footprint of Products
http://www.cfp-japan.jp
Veriﬁcation ID: CV-CI01-006

Resource efficiency of reference product* Amount of resources used over the product’s life cycle: amount of new resources+ wasted resources

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business” were both recognized by the Eighth Life
Cycle Assessment Society of Japan (JLCA) Awards(Chairman’s Award in the LCA category), which waspresented to companies demonstrating dedication
to reducing the environmental impact of products
across the product life cycle.
Disclosure of Environmental Information
In 1999, Hitachi introduced an environmental information labeling system that uses symbols and data
sheets to provide environmental information on
environmentally conscious products.
Hitachi’s environmental mark indicates that
Assessment for DfE has shown the product to be
an Eco-Product, informing stakeholders that the
product’s environmental burden has been highly
improved. Also, our website discloses environmental information, such as data sheets that include
power consumption for each environmentally conscious product and case studies of products that
helped to improve environmental efficiency.

Recycling Product Resources
To promote resource recycling, the Hitachi Group isdeveloping recycling technologies and promoting
the reuse and recycling of end-of-life products.
Developing Rare Earth Recycling Technologies
When electronic equipment and components arerecycled, iron, copper, aluminum and other resources are usually separated and recovered after shredding. However, the impact of shredding pulverizes
rare earth magnets and makes it difficult to recover
the rare earths. Removal by hand is inefficient anduneconomic. We developed a dedicated device
that uses impact and vibration to loosen the screws
that hold product components together so thatthe product will simply break up into its constituent parts. This device enables a disassembly rate
HDD Automatic Disassembly Device
HDD disassembly device

Rare earthmagnet parts

Parts automaticallydisassembled

CoversHitachi’s environmental markWEB Lists and datasheets of Eco-Products
http://www.hitachi.com/environment/ecoproducts/

Disks

WEB Environmental Efficiency of Hitachi Products Based on Factor X
http://www.hitachi.com/environment/library/pdf/factorx_en.pdf

Circuit boards

HDDs inserted

Recovery from Compressors(1) Casing cutting device

Rotor containing rare earth magnet

Compressor prior todisassembly

Cut casing(3) Degaussing device(4) Magnet removal device

Rare earth magnet
separated andrecovered from rotor

Removed rotor

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Environmentally Conscious Products and Servicesof around 100 hard disk drives (HDDs) per hour,achieving around 10 times greater work efficiency
than manual treatment.
Rare earth magnets are also used in compressors
in air conditioners and other consumer appliances,
but because they are housed in steel casings andbecause the cutting position differs according to
the year and the model, a device was needed to
cut them open safely and efficiently. Degaussing(demagnetizing) the extracted magnets is also
important. Streamlining these processes within asingle system has boosted the safety and efficiencyof rare earth magnet recovery.

Material Separation Technology Using a Normal
Pressure Dissolution Method
Hitachi Chemical Co., Ltd. has developed a recycling technology that dissolves the resin in glassﬁber reinforced plastics and carbon ﬁber reinforced
plastics under normal pressure at around 200°C sothat the liquid resin, metal components, and glass
cloth can be separated and recovered. This method
is highly economic in that it does not require pulverization or other pre-processing and dissolution
occurs at normal pressure. Because the process creates no dust, there is no risk of pneumoconiosis orof a dust explosion. For example, using this dissolution method, printed circuit board separation andrecovery can be completed in four hours at 150°C,
with the metal parts recycled into materials, while
Products Recovered Using the Normal Pressure Dissolution
MethodExample:Defective products

Normal pressure dissolution (material separation)

Example:Used products

Glass cloth

Metal parts

Liquid resin(heavy oil equivalent)

the liquid resin can be reused as fuel equivalent toheavy oil and the glass cloth as insulation material.
This technology enables defective units from theproduction process to be recycled.
Product Recycling in the Information/
Telecommunications Field
Through the sales and other divisions, we propose
plans for taking back end-of-life IT products from
corporations. This includes recycling or purchasing
them for reuse. In ﬁscal 2011, we took back around
5,800 tonnes of IT products no longer needed bycustomers for reuse and recycling through the
Hitachi Recycle Hotline (set up in 2002) and theProduct Recycling Service Center (set up in 2010).

Shipping end-of-life IT products for reuse
WEB Status of product packaging recycling
http://www.hitachi.com/environment/activities/data/wrapping.html

Managing Chemical Substances
Contained in Products
To manage the chemical substances contained in
products, we created Regulations for Environmental CSR-Compliant Monozukuri in 2005. This helps
us to manage chemical substances from productdevelopment and design to procurement, production, quality control, and sales. To voluntarily
control chemical substances, we have deﬁned 13
prohibited substances (Level 1) and 13 controlled
substances (Level 2), including potential REACH†1
substances, added in 2009.
We have also been using our Integrated
Management System for Chemical Substances
Contained in Products, created in 2005, as a way togather and send out information about chemical

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Working with the Supply Chain
Working closely with suppliers and customers, wehave been gathering and sending out information about chemical substances across the supply
chain via the Integrated Management System for
Chemical Substances Contained in Products. In
July 2009, we linked this management system tothe cross-industry JAMP†1 information exchange
platform via Hitachi’s enterprise cloud service TWX21.†2 The direct connection between customer andsupplier databases has opened the way for fast,
efficient information collection and transfer acrossthe entire supply chain. At the end of March 2012,
chemical substance information for 1,000,000
parts and products was registered in our integrated
management system.

substances contained in products. We will continue
to revise and improve our regulations and product information gathering procedures to ensurecompliance with REACH and other regulations.
Brieﬁngs are held in Japan and other countries toensure that regulations are understood and actions
are taken throughout the Hitachi Group and toeducate the employees who are responsible.
REACH notiﬁcations on particular substances inarticles were completed by the June and December
2011 deadlines. Investigations and preparations
are also continuing in the lead-up to the next
round of notiﬁcations†1 REACH regulation: The European Union’s regulation on Registration,
Evaluation, Authorisation and Restriction of Chemicals (EU)

†1 JAMP: Joint Article Management Promotion-consortium†2 TWX-21: Cloud-based business service providing an intercompany
e-marketplace

Hitachi Group’s Voluntarily Controlled Chemical (VCC) SubstancesClassification

Application

Substance (Group) Names

Level 1
Prohibited
substances

Chemical substances that the Hitachi Group prohibits frombeing included in procured products (chemical substancesbanned or restricted for use in products, including packing
materials, by domestic or foreign regulations and potentiallyused for procured products for the Hitachi Group)

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

Level 2Controlled
substances

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

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

Integrated Management System for Chemical Substances Contained in Products

Green purchasing

Risk management (traceability of individual products)

Reduction ofenvironmental burden

Customers/society

Suppliers

Design for Environment(DfE)

Integrated Management System for Chemical Substances Contained in Products

TWX-21

Communicate

Survey/register, communicate

JAMP information exchange platform(JAMP-GP (Global Portal))

Materials manufacturers

Parts manufacturers

Final product manufacturers

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

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Disclosing
environmental
information

Environmental
information

Survey/register

Collection database
Managing the total amount ofdesignated chemical substances byproduct and business

Registration database
Managing the amount of designatedchemical substances contained in a
product by material and part

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Participating in the Development ofInternational Standards

TOPICS

We work with the following international standards organizations for environmental issues andenvironmentally conscious product technology:
the International Organization for Standardization(ISO), the International Electrochemical Commission(IEC), Ecma International, the Standardization
Sector of International Telecommunications
Union (ITU-T), and the World Business Council for
Sustainable Development (WBCSD). This helps us todiscover global business opportunities and ensure
our products’ competitiveness.
In ﬁscal 2011, Hitachi, Ltd., served as the
Chairman of the March plenary meeting of the
IEC Technical Committee for Environmental
Standardization for Electrical and Electronic
Products and Systems (TC111) in Melbourne,
Australia. Ecma International officially released thesmart data center standards proposed by Hitachi.
We also used the Japan Smart Community Alliance(JSCA) and the International Standard Innovation
Technology Research Association to work withother domestic companies toward the developmentof international standards on methods for assessing infrastructures for smart cities. As a result, theJapanese Industrial Standards Committee (JISC)
made an international proposal to the ISO, and theTC268/SC1 (smart urban infrastructure) subcommittee was established in February 2012.

Lecture by WBCSD President
In March 2012, the new WBCSD president,Peter Bakker, came to Japan and gave a lecture to Hitachi Group employees on environmental protection and social sustainability.
Drawing on his own experience, world trends,
and initiatives by front-running companies, heargued simply and passionately that economic
growth and sustainability were in the process
of merging. As a WBCSD member company,
Hitachi will continue to work toward the realization of a sustainable society.

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Environmentally Conscious Production
We have set targets for reducing greenhousegas emissions, waste, chemical substanceemissions, and water use in order to reduce
the environmental burden of business activities. Plants and offices that show a high levelof environmental consciousness as well as
outstanding results in these areas receive EcoFactory & Office Select certiﬁcation as a way of
promoting environmentally conscious production and encouraging environmental action.

Eco-Factory & Office Select Certiﬁcation Criteria

Eco-Factories& Offices SelectFacilities thathave met theirtargets for eachﬁscal year under
the GREEN
21 evaluation
system

Eco-Factories& Offices

Factories
1. Energy efficiency
2. Renewable energy use
3. Recycling of waste and otherresources
4. Efficient water recycling
5. VOC emissions reduction
Offices
1. Highly efficient lighting
2. Renewable energy introduction
3. Energy savings
4. Improved office building
environmental performance

Offices and Factories

Creating Eco-Factories & Offices Select
The Super Eco-Factory & Office certiﬁcation criteria
and mechanisms being used until ﬁscal 2010 werereviewed in ﬁscal 2011, launching a new designation: Eco-Factory & Office Select. Certiﬁcation criteria were developed matching the characteristics
of our manufacturing (factory) and non-manufacturing (office) divisions. For factories, standards
were raised for energy efficiency, renewable energyuse, water recycling and other Super Eco-Factory& Office certiﬁcation criteria. For offices, evaluation criteria have been established in areas such asenergy saving for lighting, renewable energy use,
and a building’s overall environmental protection.
To maintain and raise the level of environmental
awareness in Eco-Factories & Offices Select, certiﬁed
plants and offices will be re-evaluated every year tocheck that their performance still meets the certiﬁcation criteria. Our goal is for every in-house andExamples of Eco-Factories & Offices SelectInformation & Telecommunication Systems, Hitachi, Ltd.
Software development for the Hitachi Group is undertaken by the Yokohama Office in Yokohama,
Kanagawa Prefecture. Construction of a new building designed according to Eco-Office Select criteria wascompleted in June 2012, featuring a 500 kW photovoltaic system on the roof, energy-saving skylights,
and atriums that allow sunlight into all ﬁve ﬂoors, as well as LED lighting. Double glazing and a double
outer layer insulate the building for effective air conditioning. Using the stable temperature in the baseisolation pit below the building (created by cool underground air), outside air is brought in from there forserver air conditioners.
As a result of these improvements, we have achieved energy savings of almost 20 percent comparedwith the old building.

Kameari Center, Hitachi Building Systems Co., Ltd.
Hitachi Building Systems’ Kameari Center has training rooms, a showroom, a customer center, and an
R&D division. By reviewing waste disposal routes, Kameari Center reduced its ﬁnal waste disposal ratio
from 5 percent marked in ﬁscal 2009 down to 0.02 percent. The environmentally conscious and energysaving programs and techniques that the center has developed include generating power by solar
energy, attaching insulating ﬁlm to windows, and partial greening of the rooftops. A paper recycling
room has also been set up to collect and recycle paper generated by the Hitachi Building Systems Group.
The paper is ﬁrst soaked in water and pulped through a wet shredder to produce around 100 tonnes ofHitachi recycled paper every year.

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Group company to have at least one plant or officecertiﬁed by ﬁscal 2015. Those certiﬁed as Super
Eco-Factories & Offices up to ﬁscal 2010 will be reevaluated based on the new criteria.

Key Indicators
CO2 Emissions per Unit Production
From base year

Promoting Global WarmingCountermeasures
We are promoting the reduction of energy-related
CO2 emissions from production as well as CO2 emissions from transportation to prevent global warming.
As of ﬁscal 2011, we have set two targets forCO2 emissions and for CO2 emissions per unit production. Because some operations are still growing,emission volumes have been set for each target
Group company toward achieving a 20 percent
reduction across the whole Group by ﬁscal 2015.
For the target per unit production, we have set
a ﬂat 10 percent reduction from ﬁscal 2005 topromote sustainable energy-saving investment.
Because this target includes improved energy use
efficiency (as part of cutting CO2 emissions), it isuseful for setting appropriate goals.
In Japan, our sustainable investment programsfor saving energy include the introduction of energyefficient machinery and a switch to alternate fuels.
Outside Japan, we have taken a steady approach
including higher efficiency in production processes.
In ﬁscal 2011, CO2 emissions decreased, since Hitachi
Global Technologies, Inc. and Hitachi Displays Ltd.
were removed from the total calculation.
We are also sharing energy-saving knowhow
across the Hitachi Group and supporting the development of energy conservation personnel throughinteraction with energy conservation workers fromfactories outside Japan. Reﬂecting a high rise in CO2emissions in China, we have been holding information exchange meetings there for workers in chargeof the environment to help identify environmental
problems facing production sites and to assess
energy efficiency.

21%
improvement

3,568 kt
Emissions

Emissions

3,121 kt

Production

Production

$
$

79%

100%

FY 2005(base year)

FY 2011

Emissions (in Japan)
From base year28%

improvement

3,046

2,200

kt

kt
FY 2011

FY 1990(base year)

Transition in CO2 Emissions(kt CO2/year)
5,000

4,324

4,312
3,879

3,750
3,121
2,500

1,250

0

2007

2008

2009

CO2 emissions
EuropeRest of Asia

2011 (FY)2010

Americas
Japan

China

Emissions outside Japan were calculated based on the CO2
emission coefficient for electric power by country published by theInternational Energy Agency, using 2005 ﬁgures for FY 2005—07
and 2008 ﬁgures for FY 2008 onward. For Japan, we used 0.423
kg of CO2 for FY 2005 and 0.36 kg of CO2 for FY 2007 onward.
(kt CO2/year)

Breakdown by Region
2007

2008

2009

2010

2011

Europe

4

4

6

9

7

Americas

443

416

361

473

281

China

476

510

554

626

276

Rest of Asia

484

489

476

586

357

Japan

3,104

2,893

2,482

2,630

2,200

Total

4,511

4,312

3,879

4,324

3,121

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TOPICSTOPICS

Green Curtain Project
In summer 2011, to conserve electricity, theHitachi Group launched the Green Curtain
Project, an initiative to reduce building temperatures by cultivating vines along building windows and walls. The project involved
more than 300 Hitachi Group facilities, aswell as the homes of employees who choseto participate. Green curtains not only savepower but they create comfortable working
and home environments along with being
visually appealing. In December 2011, we
held the Hitachi Group Green Curtain Contest
for 2011, presenting awards in the group andindividual categories.

Omika Smart Factory Project
Omika Works, which produces informationand control systems in Ibaraki Prefecture,
Japan, has installed a 940 kW photovoltaic
system that has been operating since May
2012. Around 900 monitoring devices, suchas smart meters, make power consumption
visible for each building and use. The factory
has also introduced an Energy Management
System (EMS) so that production timelines
can be shifted based on energy supply anddemand forecasts.

Photovoltaic system installed at Omika WorksIntroducing Renewable Energy
In ﬁscal 2011, power generated from renewableenergy sources across the Hitachi Group amounted to 542 MWh from solar power and 98 MWhfrom wind power. We also bought Green Power
Certiﬁcations of 1,000 MWh from Japan Natural
Energy Company to offset the power use in Hitachi,Ltd. offices, shareholders’ meetings, and trade fairs.

Green Power Certiﬁcation symbol

Reducing Transportation Energy
We have been working to improve transportationenergy consumption per unit production by one
percent per year.
In our Second Environmental Action Plan
(up to ﬁscal 2010), we used, for a denominator,
the real production adjusted by the Domestic
Corporate Goods Price Index (DCGPI). In our
Third Environmental Action Plan, we changed thedenominator to unit production, which was not
adjusted by the DCGPI, in order to further increasetransparency.
The 2007 revisions to the Act on the Rational
Use of Energy made it compulsory for consignors
to reduce transportation energy. The Hitachi Group
had been working toward a 12 percent reduction
in ﬁscal 2011 in transportation energy consumption
per unit production from ﬁscal 2006. The long-term
railway and sea port damage from the Great East
Japan Earthquake caused truck transportation to

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soar, leading to an increase in CO2 emissions by 13
kt of CO2 compared with ﬁscal 2010. However, weachieved a 19 percent reduction in energy consumption per unit production in ﬁscal 2011.

TOPICS
Using More Electric Vehicles
To reduce CO2 emissions from transportation, Hitachi Capital Auto Lease Corporation,
which leases vehicles to the Hitachi Group,bought 50 Nissan Leaf electric vehicles (EVs).
Those EVs are used primarily for transporting customers to their facilities. Around halfof the cars owned by the Hitachi Group are
already low-emission vehicles (LEVs), but
we plan to further introduce more new Leaf
vehicles to further improve energy efficiency.

Next Steps
To promote energy-related CO2 emission reduction,
we will continue with systematic fuel switching andthe use of high-efficiency machinery. We will also
elevate environmental awareness by monitoringmonthly CO2 emissions at every in-house and Group
company, and work toward the targets shown on our
website. The same system will be used to automatically create the regular reports required under the
Act on the Rational Use of Energy as well as notiﬁcations to administrative agencies.
We are also building a system to assess progress
toward ﬁscal goals, bolstering the PDCA cycle.

Key Indicators
Rate of Transportation Energy Consumption
per Unit Production in Japan

Arrival of Leaf EVs

From base year

188 kt19%

improvement

Emissions

138 ktEmissions
Production$

Production

$

100%

81%
FY 2011

FY 2006(base year)

Transition in CO2 Emissions fromTransportation in Japan(kt CO2/year)
200
174
155
150

138

128

125

2009

2010

100

0

2007

2008

CO2 emissions

2011 (FY)

Reducing Waste
We are reducing and recycling waste materials
generated during manufacturing, including valuable resources (reusable resources with residual
value). In ﬁscal 2011 too, we continued to improverecycling efficiency by installing foreign matter
removal equipment and by introducing returnabletransportation packaging materials and pallets.
To cut back on waste, in ﬁscal 2011 we set up
Group-wide goals for waste reduction per unit production. We are now working to cut waste in theHigh Functional Materials Group†1 by 15 percent
from the base ﬁscal year of 2005 by ﬁscal 2015, andin the Assembly Industry Group†2 by 20 percent. In
ﬁscal 2011, the High Functional Materials Group
reduced the amount of waste generated per unit
production by 12 percent compared with the baseﬁscal year, while the Assembly Industry Group
achieved a 15 percent reduction.
Under the Zero Emission†3 initiative, which minimizes landﬁll disposal as close to zero as possible, 160
facilities achieved that goal by ﬁscal 2011.

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Environmentally Conscious Products and Services†1 High Functional Materials Group: Business group dealing primarily withspecial metals, electrical wire and cables, wrought copper and copper alloy
products, functional materials and synthetic resin processed goods†2 Assembly Industry Group: Business group other than the High Functional
Materials Group†3 Zero emission: Defined as a final disposal rate (landfill disposal/waste) ofless than 0.5 percent in any given year

Key Indicators
Amount of Waste Generated
per Unit Production Rate
From base year
High Functional
Materials Group
improvement

WEB Zero emission sites
http://www.hitachi.com/environment/activities/data/zeroemission.html

12%Using IT for Managing Waste

418
Amountgenerated kt

481
Amountgenerated kt

We have developed a waste management system toensure a high compliance level for appropriate waste
disposal and even more efficient waste management.
The system brings together information from paper
manifests and e-manifests†1 that manage information on waste type, disposal method, and disposal
completion, as well as data on general waste, valuable waste, waste disposal contractors, and contract
details, enabling uniﬁed waste management acrossthe Group. In ﬁscal 2012, we will improve this system,
creating a data link with other e-manifests information directly registered on JWNET†2 for the better useof e-manifest information. We intend to boost the
Hitachi Group e-manifest registration ratio to at least
90 percent by ﬁscal 2015. As of ﬁscal 2011, 95 operations have introduced e-manifest systems, lifting theregistration rate to 32 percent.

100%

Production

88% Production$$

FY 2011

FY 2005(base year)
From base year
Assembly
Industry Group
improvement

15%

249
Amountgenerated kt

266

Amountgenerated

kt

100%

Production

85%

Production$$

FY 2011

FY 2005(base year)

Transition in Amount of Waste Generated†1 Manifest: An evidence document which the waste generator must issue
when waste disposal is commissioned to a disposal company†2 JWNET (Japan Waste Network): An e-manifest system operated by theJapan Industrial Waste Information Center designated by the Minister of theEnvironment(kt/year)
1,000
760

750

738

737

701

608

Waste Management System
500
Office250
Intranet

Internet
0E-manifest

Paper manifest
Valuable materials
General waste
Waste disposal
contractor
Contract details
Hitachi Group
waste information
management server

2008

2007

2009

2010

Amount of waste generated
EuropeAmericasRest of Asia
Japan

Data link
JWNET
e-manifest
Internet

Industrial waste
disposal company

China

Breakdown by Region(kt/year)

2007

2008

2009

2010

2011

Europe

0

0

1

1

3

Americas

52

53

38

54

55
40

China

58

59

51

80

Rest of Asia

60

61

54

78

80

Japan

590

564

464

525

523

Total

760

737

608

738

701

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Next Steps
To further reduce waste generation and achieve
zero emissions, we will make improvements byusing our waste management systems more effectively and by deploying outstanding resource recycling programs Group-wide.

TOPICS
Reducing Water-Soluble Cutting Fluid
Waste
At the Atsugi Works of Hitachi Automotive
Systems, Ltd., to reduce the amount of wastewater from soluble cutting ﬂuid, we replaced
the way of managing from a ﬁxed period toa ﬁxed quantity (number of parts processed)
system. Also, equipment has been introduced
for vacuum hydro-extraction and the concentration of ﬂuid waste to reduce the amount ofwaste generated down to one-tenth. Hitachi
Automotive Systems has designed and built acleaning system for water-soluble cutting oil
used on production lines so that instead of all
the oil becoming waste, some can be recycled
and reused, making major cuts in the amountof ﬂuid waste.
In recognition of these activities, thecompany received the Chairman’s Awardin the Fiscal 2011 Awards for DistinguishedServices in Promoting 3R (held by the 3R
Promotion Council).

Water Conservation
We are committed to effective water use by reducing the water consumption in our operations.
Especially outside Japan where securing water
resources is a pressing issue, we have targeted the
reduction of water use per unit of production as aGroup target, working toward a 30 percent reduction from the base ﬁscal year of 2005 by ﬁscal 2015.

Key Indicators
Rate of Water Use per Unit Production outside Japan
From base year

Amount8.91
used million m3

42%
improvement

11.2
Amount3
used million m
Production

100%

$

Production

58%

FY 2005(base year)

FY 2011

Transition in Water Use outside Japan(million m3/year)
20
16.40
15

14.26

Water-Soluble Cutting Oil Cleaning andRecycling System

13.61

12.90

10

Used ﬂuid
waste

$

8.91

Cleaning
solution5

Coarse ﬁlter

Centrifugal
separation

Concentration
adjustment

0

2007

2008

Water use
EuropeProduction line

2009

Americas(million m3/year)
2008

2009

2010

2011

Europe

0.02

0.02

0.01

0.02

0.03

Americas

4.05

3.89

3.71

4.05

2.35

China

4.84

4.80

4.94

5.16

2.92

Rest of Asia

5.35

4.90

4.24

7.17

3.61

Total

14.26

13.61

12.9

16.4

8.91

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China

Breakdown by Region
2007

2010

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In ﬁscal 2011, we lowered water use per unit ofproduction outside Japan by 42 percent comparedwith 2005.

Water-Saving Company based on screening by the Shanghai Water Authority andthe Shanghai Economy and Information
Committee.

Next Steps
Water is a key resource underpinning people’s daily
lives. We will strive to optimize water use efficiency
as well as steadily reduce our own water consumption by preventing leaks and boosting the rate that
we recycle.

TOPICS
Recycling Water Resources
Hitachi Elevator (Shanghai) Co., Ltd., whichmakes elevators, uses water recycling equipment that employs advanced technologies
such as chemical treatment, ﬁltration, andreverse osmosis membranes. After the wastewater from production is collected and treated, it is reused for manufacturing as well
as for toilets and other domestic water use
and for watering trees and plants within the
grounds. Through these recycling technologies, the company saves around 80 m3 ofwater a day, the same amount of water usedby a Shanghai resident in 18 months.
As a result of these activities, the company was recognized as a Fiscal 2010 Shanghai

Chemical Substance Management
To deal with chemical risk and to comply with laws
and regulations, we assess chemical substances,managing risk in three ways: prohibition, reduction,and control. Since 1998, we have operated a database for chemical substance management called
CEGNET to index the latest laws and regulations andour own voluntary regulations, ensuring the management of newly introduced chemical substances.
Chemical substances used in our operations are also
registered with CEGNET. Collecting and aggregating
data on the amount of chemical substances used,emitted, or transferred helps to reduce our use ofchemicals. In addition, we train chemical substancemanagers and regularly communicate the risks todeepen local residents’ understanding of how wemanage chemical substance risk.
CEGNET Chemical Substance Management System
Chemical information management server
Regulatory / voluntary
control information
Network
New chemical risk searches

Recycled Water Use Flow
Domestic wastewater

Chemical data

Domestic water(For toilets and for watering trees)

Registration of amounts
handled / data collation

Production
facilities

Primary water
puriﬁcation treatment
Advanced water
puriﬁcation treatment

Domestic wastewaterIndustrial water

Pond where recycled water is stored after treatment

Reducing Chemical Substances
To prevent air pollution, we cut emissions of 41 volatile organic compounds (VOCs) based on a programfrom the Ministry of the Environment in Japan. We
reduced VOC atmospheric emissions in Japan by 69
percent from ﬁscal 2000 by ﬁscal 2010, and cut VOC
atmospheric emissions†1 outside Japan by 29 percent
from ﬁscal 2005.
Since ﬁscal 2011, we have been reducing VOC
atmospheric emissions to bring them to ﬁve percent
or less across our global operations by ﬁscal 2015.
For example, Hitachi Chemical (Suzhou) Co., Ltd. has

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Key Indicators
Ratio of VOC Atmospheric Emissions
From FY 2010

0.5%
improvement

Emissions

3,653 tAmounthandled52,771 t

6.9%

Emissions

4,285 tAmounthandled67,121 t

6.4%

FY 2010

FY 2011

Transition in Reducing VOC Atmospheric Emissions(t/year)
7,000
6,072
5,250
4,549

4,285
3,737

3,653

3,500

†1 The rate of reduction of VOC atmospheric emissions: The percent
difference between the 2005 emission ratio and the emission ratio in thesubject year. The emission ratio is calculated as VOC atmospheric emissions
divided by total volume of VOCs handled.
†2 PRTR Law: Japan’s Pollutant Release and Transfer Register Law

1,750

0

2007

2009

2008

China

Breakdown by Region(t/year)2007
EuropeAmericas

China

Rest of Asia

Total

Next Steps
We will continue to improve painting processes,
which have high VOC atmospheric emissions.

2011 (FY)2010

VOC atmospheric emissions
Americas
EuropeRest of Asia
Japan

Japan

processes, which have high VOC atmospheric emissions, resulted in 6.4 percent in ﬁscal 2011 comparedwith an original target of 5.8 percent. In ﬁscal 2012,
we will introduce alternate materials into the painting process, as well as improve these processes, toreduce emissions.
We comply with Japan’s PRTR Law†2 throughGroup-wide monitoring of chemical substances
released into the atmosphere or into public waters, or
removed outside our plants as waste, or discharged
into sewage systems, reporting this to local Japanese
governments. Although some substances are exempt
from reporting due to their small quantities, our policy is to keep data on all PRTR substances, provided
that the amount is 10 kilograms or more per year, sothat we can control these substances as well.

2008

2009

2010

2011

8

9

7

9

28

(14)

(13)

(10)

(12)

(29)

29

37

29

41

62

(44)

(44)

(41)

(48)

(70)

430

288

268

131

427

(639)

(607)

(502)

(310)

(9,522)

307

189

273

258

232
(8,101)

(496)

(356)

(452)

(539)

5,298

4,026

3,160

3,214

3,536

(94,787)(65,935)(48,444)(51,862)(49,399)

6,072

4,549

3,737

3,653

4,285

(95,980)(66,955)(49,449)(52,771)(67,121)* Upper ﬁgures show VOC atmospheric emission volumes. Lower ﬁgures inparentheses show the volume of VOCs handled. The target scope of thedata aggregation outside Japan by 2010 was different.

reduced VOC emissions from a photosensitive ﬁlm
production process by 50 percent by introducing asolvent recovery system into the cold condensation
process developed by the company.
However, a Group-wide increase in painting

Managing Environmental Risk
We are setting more stringent voluntary management criteria than regulatory requirements byconsidering the environmental burden of all ourbusiness activities. At every business site, we monitor water quality and noise, for example, and work
to minimize environmental risks. We also share
information on environmental regulations and violations with each other to prevent recurrences andto further strengthen management.
In ﬁscal 2011, two incidents violated laws andregulations and there were one administrative
guidance and four noise complaints. All were
promptly resolved. We will continue to audit andmonitor data to prevent recurrences.
Violations of Statutory Standards
Water quality

Air

Total

Japan

2

0

2

Outside Japan

0

0

0

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Environmental Load Data Generated through Business Operations (FY 2011)

This chart shows resource inputs and the environmental load for Hitachi Group business activities in ﬁscal
2011.
Total Output of Environmental Load
Volume of products shipped: 3,700 kt (in Japan); 501 kt (outside Japan)

Total Input of Resources
Total Energy Input
Total energy consumption (crude oil
equivalent)
1.77 million kl

Greenhouse Gas Emissions

Outside Japan 23%

Outside Japan 29%

Greenhouse gases(GHGs)
3,206 GWP*2 kt

In Japan 77%
Electricity 80%

In Japan 71%
CO2 emissions 97%

Gas 6%
Fuel oil 14%

Electricity
Gas
Natural gas, LNG

Other 3%

In Japan

Outside Japan

4.4 billion kWh

1.1 billion kWh

In JapanCO2 emissions

921 kt50 GWPkt0

90 million m3

0

Other GHGs
SF6 (sulfur hexaﬂuoride)

43,000 t

39,000 t

PFCs (perﬂuorocarbons)

14 GWPkt0

100,000 kℓ

13,000 kℓ

HFCs (hydroﬂuorocarbons)

16 GWPk

4 GWPkt

LPG
Fuel oil (heavy oil, kerosene, etc.)

Total Volume of Waste

Total Input of Materials
Materials
3,681kt

Outside Japan

2,200 kt

In Japan 57%

Outside Japan 43%

Metals 58%

Waste generated
701 ktOther 34%

Plastics 7%

Rubber 1%

In Japan

Outside Japan

Outside Japan 25%

In Japan 75%
Recycling 82%
Waste reduction 5%

Final disposal 13%

In Japan

Outside Japan

Metals1,415 kt

728 ktWaste reduction

24 kt

9 kt

Plastics

163 kt80 kt

Recycling

455 kt119 ktRubber

8 kt

22 kt

Volume reused

70 kt

4 kt

523 kt741 ktVolume of material recycled

354 kt114 ktVolume of thermal (heat) recycled

31 kt

1 kt

Final disposal

45 kt

50 kt

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

5 kt

5 kt

52 kNm3

16 kNm3

511 kNm

3

27 kNm3

5 t (0 ODPt*3)

0 t (0 ODPt)

Other materials

Chemical substances
Handling volume for chemical substances
165 ktcovered under the PRTR Law*1
Handling volume for ozonedepleting substances
Handling volume forgreenhouse gases

24 kt

6t

1,081 t1,601 t855 tSOx (sulfur oxides)
NOx (nitrogen oxides)

Total Water Input
Water used
59.26 million m3

Volume ofwater reused
In Japan:
45.56 million m3
Outside Japan:
3.05 million m3

Outside Japan 15%
In Japan 85%

Industrial water 44% Groundwater 40%

Volume of discharge forozone-depleting substances

Total Volume of Wastewater
Wastewater
55.56 million m3

Industrial water
Groundwater

Public water 71%
Sewage system 24%
Underground inﬁltration, etc. 5%

Surface water 16%

Surface water

Outside Japan 15%

In Japan 85%

In Japan

Outside Japan

6.03 million m3

3.47 million m3

3

22.37 million m

33.82 million m

3

3

21.92 million m

In Japan

1.62 million m

Public water
Sewage system
Underground inﬁltration, etc.
Water quality
BOD (biological oxygen demand)
COD (chemical oxygen
demand)3.44 million m3

3

8.68 million m

4.63 million m3

3

2.23 million m

430,000 m3

243 t

647 t

177 t

973 t

*1 The 354 chemical substances covered under Japan’s PRTR Law*2 GWP (Global Warming Potential): Coefficient derived by converting the global warming potential into CO2 equivalent tonnes*3 ODP (Ozone Depletion Potential): Coefficient derived by converting the global depletion potential into trichloroﬂuoromethane (CHC-11) equivalent tonnes
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Environmental Management
Framework and Communication
In the Hitachi Group, we have built a global network and are using environmental management
systems to foster sound environmental practices
and instill “Eco-Mind” in all our employees. We
also work to deepen stakeholders’ understanding of our environmental activities by disclosing
information, and we encourage two-way communication to improve those activities.

Environmental Management
Framework
We are building a global environmental management system to support environmental decision
making and implementation at Hitachi, Ltd., 939
consolidated subsidiaries, and 183 equity-method
affiliates.
The Environmental Strategy Office is responsiblefor developing Group-wide environmental policies.
It drafts basic management policies and actionplans that are deliberated on and approved by the
Senior Executive Committee for Environmental
Policy, chaired by the president. The Environmental
Strategy Officers Meeting, made up of representa-

tives from in-house companies and major Group
companies, ensures that environmental strategies
are implemented throughout the Group. We also
have an Environmental Committee and speciﬁc
committees of working-level experts in each policy
area who develop targets and measures for achieving them.
Outside Japan, in ﬁscal 2011 we deployed environmental specialists in the United States and in
Singapore, while strengthening our global management framework in four target regions, including
China and Europe. At regional environmental meetings, we reported on progress in implementing theThird Environmental Action Plan that began in ﬁscal
2011 and shared information on the latest environmental regulations, while exchanging views on local
environmental issues in each region. We have beencreating environmental information networks inJapan and in each region. These are being used toshare trends in environmental regulations and related information. We take advantage of being a multiindustry company by mutually exchanging information with each region, leading to a more global

Hitachi’s Environmental Management System (EMS)

President

Senior Executive
Committee forEnvironmental Policy

Environmental
Management
System under the
Hitachi Group
Environmental
Promotion
Organization*
Representatives
from four poles(Europe, Americas,
China, Asia)*Organization built around theenvironmental promotion departmentsof the Hitachi, Ltd. Research &Development Group, ﬁve in-housecompanies, and 17 Group companies

Environmental
Committee
Eco-Management
Committee
Eco-Products
Committee
Eco-Factory
Committee
Eco-Business &Communication
Committee

Hitachi, Ltd.
In-House Companies
Environmental Strategy Officers
Environmental Promotion
Departments

Factories and Offices
Division Heads
Environmental
management officers

Integrated EMSs of In-House
Companies

Group Companies
Presidents
Environmental
management officers

Major Group Companies
Environmental Strategy Officers
Environmental Promotion
Departments

Factories and Offices
Division Heads
Environmental
management officers

Integrated EMSs of Group
Companies

Group Companies
Presidents
Environmental
management officers

939 consolidated subsidiaries and 183 equity-method affiliates

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Regional Environmental Meetings

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approach. We will continue using these worldwide
regional networks to improve our global activities,
keeping in mind the special character of each region.

Status of ISO 14001 Certiﬁcations (as of April 2012)

Building Environmental Management Systems
To ensure efficient management of each businesssite’s environmental load, we have set the criteria
for environmental management. There are approximately 270 business sites that meet these criteria.
The R&D Group, ﬁve in-house companies, and 17
Group companies, together with the Environmental
Strategy Office, have developed and implemented
the Hitachi Group Environmental Promotion
Organization EMS (environmental management
system) to promote the consistent implementationof environmental policies. In ﬁscal 2011 the HitachiGroup Environmental Promotion Organization EMS
underwent its second-year ISO 14001 surveillance
audit. No corrective action was required, and certiﬁcation remains in effect.
At the same time, every business site meeting thecriteria for environmental management continues
to maintain ISO 14001 certiﬁcation. Also, businesssites that did not meet the internal criteria have also
obtained ISO certiﬁcation, so that 671 Hitachi Groupbusiness sites were certiﬁed as of April 2012.

No. ofCertified Sites

Criteria for Environmental Management Level(major items)
Employees
Electric power consumption
Waste generated
Water used
Paper purchased≥ 500≥ 6,000 MWh/year≥ 500 tonnes/year≥ 600 m3/day≥ 50 tonnes/year

Japan

Outside Japan

Production
Sites

NonProduction
Sites

Production
Sites

NonProduction
Sites

Total

267

264

111

29

671

Europe
17
China
Japan
44
531
Rest of Asia
63

Americas
16

WEB List of ISO 14001—certified sites
http://www.hitachi.com/environment/activities/data/iso14001.html

Monitoring Environmental Performance Data
For effective environmental management, wecollect environmental performance data on business operations using the Environmental Load
Evaluation System. This system collects environmental load data from some 270 Hitachi business sites
worldwide on such items as energy use, CO2 emissions, and waste generated, together with information on outside complaints, honors received,and other items. By analyzing this information, we
identify environmental management issues, share
instructive examples within the Group, and improve
environmental practices. We continue to expand
this system to keep pace with new laws and policies. For example, we added a function for registration to the electronic manifests promoted by theJapanese government to prevent inappropriate disposal of wastes (see page 072) and upgraded oursystem to collect and analyze energy-use data fromall relevant sites in response to Japan’s amended
Energy Conservation Law.†1
Further improvements will allow the system toassess progress toward reduction targets for CO2
emissions and other environmental load indicators. These measures will heighten awareness ofwhat needs to be done to meet the goals of theEnvironmental Action Plan.
†1 Energy Conservation Law: Act on the Rational Use of Energy

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Building a System for Visualizing Energy Use
With power companies all over Japan struggling tomeet electricity demand, and Tokyo Electric Power
Company (TEPCO), among others, announcing
major increases in electricity charges, the entire
Hitachi Group must exercise efficient control andmanagement of power consumption.
Starting in April 2012, we began tallying themonthly use of energy such as fuel oil, gas, andelectricity at 200 large business sites in Japan andstarted a system to post the results on the HitachiGroup intranet as part of a visualization system.
We further integrated the data from electricity
use collection systems at 238 large sites having acontracted capacity of 500 kW or above, and built

Display Example of Typical Energy Visualization System

the “Hitachi Group Electric Power Data Counting
and Monitoring System” that shows hourly statistics
on power use, putting the system into operation in
July 2012. This system allows us to share information
on power use and compare it with previous years. By
managing electricity use per unit of production, weare able to become more efficient while employees
are more aware of the need to save electricity.
Environmental Activity Evaluation System
We use our own evaluation system, GREEN 21, to
improve the level and quality of our environmental
activities. It divides environmental activities into
eight categories and evaluates achievements andprogress toward Action Plan targets by rating 53
items on a scale from 1 to 5, showing the resultson radar charts. For any category, a perfect scoreis 100 green points (GPs). The results of GREEN
21 evaluations are incorporated into the businessperformance evaluations of all Hitachi in-housecompanies and some Group companies.
In ﬁscal 2011, we added new items: activities tocontribute to the Hitachi Group's business operations through the expansion of environmental business, activities to preserve ecosystems, and activities
to gather and communicate environment-related
information across the supply chain. The evaluation

主な指標
Key
Indicators
Green Point (GP) Average: Results and Targets
1. Eco-Management

Environmental Management

8. Worldwide
Environmental
Partnerships
50 GPs62 GPs100

2. Eco-Management
Product/Service
Strategy
48 GPs
FY 2011 target: 384 GPs
FY 2011: 426 GPs

50
7. Eco-Factories
Resource
Recycling
53 GPs

6. Eco-Factories
Reducing Global
Warming
55 GPs0

3. EcoManagement
Supply Chain
51 GPs

4. Eco-Mind
56 GPs5. Eco-Products
51 GPsCategories and Evaluation Items
1. Environmental management, environmental accounting, compliancewith laws and regulations
2. Progress toward goal of reducing CO2 emissions by 100 million tonnes,
environment business strategies
3. Gathering and communicating environmental information across
supply chain
4. Environmental education, training environmental experts
5. Assessment of products and services
6. Reducing CO2 emissions, improving energy efficiency, energy savings intransportation
7. Resource recycling, chemical substances management
8. Information disclosure, communication activities, global citizenshipactivities, preserving ecosystems

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program has been improved after extensive revisions. We surpassed our ﬁscal 2011 target of 384
GPs with a score of 426 GPs. As we raise the levelof environmental activities further, we have set atarget of 640 GPs for ﬁscal 2015.

Hitachi Group Environmental Award Program
To encourage environmental activities and disseminate best practices throughout the Group, weestablished the GREEN 21 Award program honoring
environmentally conscious products, technologies,
and activities. Awards are based on multiple criteria, including the results of GREEN 21 overall environmental evaluations, reduction of environmentalload, innovation, and ongoing beneﬁt. In ﬁscal
2011, 13 activities were selected for awards.

Fiscal 2011 GREEN 21 Awards
Category

Recipient (business site/individual)

Achievement

Environmental Management & Communication
Raising environmental value by promoting initiatives that gain carbon footprint
certiﬁcation

First Prize

Information & Telecommunication Systems
Company, Hitachi, Ltd.
IT Platform Division Group
ALAXALA Networks Corp.

Excellence Award

Taiwan Hitachi Co., Ltd.

Cooperating with stakeholders on environmental protection

Honorable Mention

Hitachi, Ltd. Head OfficeEncouraging voluntary ecosystem preservation by Hitachi Group employees—Greening of China's Horqin Desert and surveying endangered butterﬂies—

Hitachi Maxell Energy, Ltd., Osaka Works

Forming a special team that doubled the greenery on the company grounds
and contributed to the community by cleaning local waterways

Hitachi Industrial Equipment Systems, Co., Ltd.,
Nakajo Works

Developing and marketing the energy-efficient XSH series of super amorphouscore transformers

Power Systems Company, Hitachi, Ltd.

Developing and marketing an advanced proton beam therapy system byadopting a new beam scanning approach that reduces the number of parts
interfered by the proton beam, and improves the efficiency of the beam,
reduces the amount of neutrons generated, and reduces the number of partsneeded to be replaced for each patient

Hitachi Maxell Energy, Ltd., Head Office, Kyoto
Works

Developing and marketing a lithium-ion battery (cylindrical) with reduced useof rare metals

Infrastructure Systems Company, Hitachi, Ltd.
Information & Control System Division

Providing an SaaS (Software as a Service) environmental information
management system that integrates the management of energy data frommultiple sites, improves energy conservation awareness through visualizations,and helps to save energy

First Prize

Hitachi Elevator (Shanghai) Co., Ltd.

Improving energy use efficiency and reducing VOC emissions

Judges Selection Award

Hitachi Industrial Equipment Systems Co., Ltd.,
Narashino DivisionHelping prevent global warming through improvements in our products andtechnologies

Honorable Mention

Infrastructure Systems Company, Hitachi, Ltd.
Information & Control System Division, Omika
Works

Implementing a smart factory project for stronger global warming prevention
and resource recycling

Hitachi Kokusai Electric Inc., Toyama Works

Reducing the environmental load of factories

Eco-Business and Eco-Products
Judges Selection Award

Honorable Mention

Eco-Factory and Eco-Office* In addition to the above, there was one special prize as well.

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Environmental Educationﬁscal 2011, we began a certiﬁcation training course
for auditors responsible for energy saving andwaste management .
In ﬁscal 2011, we began a training course forstaff in charge of energy conservation, waste management and other environmental areas andoffered explanations on environmental laws andrecent amendments as well as procedural handbooks. In addition to Hitachi Group training, individual companies and units provide special courses
tailored to their own business area.
From ﬁscal 2012, we will intensify training toenhance the knowledge and skills of staff in chargeof factory management, using case studies to illustrate examples of compliance and noncompliance,
and the need for environmental management,
while providing opportunities for discussions withoutside experts.

Hitachi Group training is offered to all Group employees with a view to raising awareness and spreading
understanding of environmental issues. Training is
divided into general education, covering subjects
such as Hitachi’s Environmental Vision and environmental strategies, and specialized expert training.
For general education, we offer an e-learning
course in three languages: Japanese, English, andChinese. To date 158,505 employees worldwide (96percent of the target group) have taken this course.
Specialized training nurtures skilled personnel
in such areas as environmentally conscious productdesign, risk communication regarding chemicals,
factories’ environmental protection and education
to certify the internal environmental auditors who
have an important role in establishing and operating the environmental management system. In
Environmental Education and Training System
TargetGeneraleducationAllemployees

Introductory

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.)

Basic environmental management course for working-level employees(management of waste, air/water quality, hazardous materials, etc.)(development & operation of management systems, etc.)

Working-level
employees
Specialized
education

Education for Eco-Factories
Eco-Product development training
Risk communicator training
Brush-up training for ISO 14001 auditors

Internal
environmental
auditors

ISO 14001 auditor
certification training

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ISO 14001 senior auditor
certification training

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

Costs (billions of yen)
FY 2007

FY 2008

FY 2009

FY 2010

Overview

FY 2011

Business area

39.72

33.31

28.20

27.98

27.78 Costs of maintaining equipment with low environmental
burden, depreciation, etc.

Upstream/
downstream

2.79

1.97

1.70

1.60

1.43

Green procurement expenses, recovery and recycling ofproducts and packaging, recycling expenses

Administration

11.30

11.20

8.92

8.61

8.25

Labor costs for environmental management, implementationand maintenance of environmental management system

Research anddevelopment

46.63

50.25

52.81

57.56

79.81

R&D for the reduction of environmental burden caused byproducts and production processes, product design expenses

Social activities

0.48

0.35

0.25

0.31

0.45 Planting, beautiﬁcation, and other environmental improvement
expenses

Environmental
remediation

0.80

0.99

0.68

0.37

1.94 Environmental mitigation costs, contributions, and assessment

Total

101.72

98.06

92.56

96.44

Total investment

15.38

10.17

7.95

7.60

Expenses

119.66
9.61 Investment in energy-saving equipment and equipment that
directly reduces environmental load

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

Environmental Protection Effects
Economic Effects*1

Item

Costs (billions of yen)
FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

Major FY 2011 Activities

Net income effects

14.50

10.90

8.30

9.62

13.72 Finding value from waste by sorting and recycling

Reduced expenses effects

22.02

18.24

15.00

18.45

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

Total

36.52

29.14

23.30

28.07

28.98

Physical Effects
Item
Reduction in energy usedduring production

Reduction in amount of waste
for ﬁnal disposal

Amount Reduced (parentheses: equivalent number of households) *2 *3
FY 2007

FY 2008

FY 2009

FY 2010161 million kWh 158 million kWh 191 million kWh 129 million kWh(34,000)(33,000)(40,000)(27,000)

7,361 tonnes(53,000)

6,752 tonnes(48,000)

5,955 tonnes(43,000)

FY 2011

Major FY 2011 Activities

93 million kWh Switching to LED lighting, tightening the management of(20,000) air conditioner room temperature settings, optimizing
equipment operation rates, controlling and renewing compressor operations, improving ventilation systems, etc.

3,623 tonnes(26,000)

4,754 tonnes Encouraging recycling, reducing volume or recycling of(34,000) liquid waste, etc.

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

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Environmentally Conscious Production

085

051

Environmental Activities Worldwide

077

Environmental Management053

Corporate Environmental Management

Social Report

Framework and Communication

Strategies and Initiatives
060

Environmentally Conscious Products and Services

Efficiency of Environmental Load Reduction*
Item

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

Reduction in energy used during production (million kWh/billion yen)

0.28

0.33

0.42

0.32

0.20

Reduction in amount of waste for ﬁnal disposal (tonnes/billion yen)

20.0

19.4

22.9

14.7

18.3

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

FY 2011 Investment Ratio by Countermeasure
Other 13%

Pollution Prevention
19%

Prevention of Global
Warming
59%

Waste Reduction
9%

Environmental Communication
Communicating Environmental Information
We publish reports every year on our environmental
protection initiatives, their results, and our plans.
The Hitachi Group Environmental Report, issued
each year starting in ﬁscal 1998. In ﬁscal 2011, taking into account the global need for a sustainability
report, we combined our Hitachi Group Corporate
Social Responsibility Report and the Hitachi Group
Environmental Sustainability Report into the
Hitachi Group Sustainability Report. In addition,
the Environmental Activities section on the Hitachi
website provides highlights of the environmental
considerations taken for Hitachi Group products
and services, along with customer case studies.
Also, we cooperate with SRI†1 ratings and otherenvironmental surveys (see pages 113–114).
†1 SRI: Socially Responsible Investment. An approach to investing where shares
are selected partly on the basis of criteria related to CSR

Outside Japan, we took part in the China-Japan
Green Expo 2011 in June 2011, and held the Hitachi
Eco Conference 2011 in February 2012 in Jakarta,
Indonesia, as a private Hitachi Group event.
At exhibitions, we also work to reduce the environmental load of our booths. The Hitachi booth at
Eco-Products Exhibition 2011 was built with environmental consciousness in mind, using LED lamps
for all lighting and carpet and wall materials thatare made from environmentally conscious materials.
We are also taking care to offset any unavoidable
CO2 emissions generated from the electricity use at
the booth. For these initiatives, the Hitachi booth
won the best Eco & Design Booth Prize granted by
the event organizer to environmentally conscious
exhibition booths. This was our second straight
prize winning following last year.

Hitachi booth at Eco-Products Exhibition 2011

WEB Environmental Activities
http://www.hitachi.com/environment/
WEB CSR/Environmental reports published by Hitachi Group companies
http://www.hitachi.com/environment/activities/data/rpt_open.html
WEB External environmental awards
http://www.hitachi.com/environment/activities/data/commendation.html

Participation at Exhibitions
We value the opportunity for direct dialogue withstakeholders, so we participate in environmentrelated exhibitions. In Japan, we participated in the
Eco-Products Exhibition 2011 in December 2011,
as we have every year since the ﬁrst exhibition.

Best Eco & Design Booth Prize trophy
List of environmental exhibitions
http://www.hitachi.com/environment/ads_events/event/index.html
WEB

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Environmental Activities Worldwide

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Environmental Management053

Corporate Environmental Management

Social Report

Framework and Communication

Strategies and Initiatives
060

Environmentally Conscious Products and Services

Worldwide Environmental Partnerships
We promote environmental communication, deepening the exchange on environmental themes withlocal stakeholders, and we conduct social contribution activities with them.
In ﬁscal 2011, we carried out environmental education and tree planting as well as cleanup activities
in various regions of the world. In education, to help
raise the eco-awareness of children who will leadthe next generation, we provided learning opportunities through hands-on training and experiments
and explanations of Hitachi Group activities.
To conserve the environment as a global citizen,
we promote environmental beautiﬁcation andnature conservation in cooperation with employees,
their families, and local residents. Through these
activities, we also support environmental protection by holding meetings with local authorities andworking with NGOs and NPOs that specialize inlocal environmental situations and activities (seepages 124–126).

Mengmo's Eco Classroom for elementary school children in Shanghaifeatured local employees acting out characters as volunteers, providing
students a fun way to learn about the environment. (Hitachi Construction
Machinery (Shanghai) Co., Ltd.)

Working with the NPO Green Network (G-Net), 1,000 trees were planted
in ﬁscal 2011 in the Horqin Desert in the Inner Mongolia Autonomous
Region of China, part of our annual project for desert greening. (CSR
Division, Hitachi, Ltd.)To raise the eco-awareness of children, we conducted Children's Eco-Club
activities, giving around 140 elementary school children opportunities tolearn about factory waste water treatment and equipment for treating
garbage. (Taiwan Hitachi Co., Ltd.)

Periodically we clean along the coastline of Setonaikai near Miyajima, awonderful place to enjoy Japan’s natural beauty.
(Hitachi Chugoku Solutions, Ltd.)We are continuing to plant trees on Mount Santa Rita in the Philippines
in collaboration with the Ecology Center of the Subic Bay Metropolitan
Authority (SBMA), a local administrative agency.
(Hitachi Terminals Mechatronics Philippines Corporation)

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4th Nature Contact Event: Let’s Enjoy Eco Together! (Hitachi Booth, Science Museum)Social Report

MESSAGE

Stepping Up Global Procurement andReinforcing CSR in the Supply Chain

The Hitachi Group is accelerating global procurement to lockin a stable supply of materials and to boost our cost competitiveness for global business expansion. In ﬁscal 2011, we
focused on emerging countries, increasing our number ofprocurement offices to 25, and we appointed regional chief
procurement officers for North America, Europe, China andAsia. We also set up a China and Asia Paciﬁc Procurement
Headquarters, reinforcing our partnerships with local suppliers in key regions. We held brieﬁngs in China and Eastern
Europe to explain our procurement guidelines, while cultivating new suppliers and building partnerships. As part of ourtraining for local staff, we are improving procurement skills
training and adding CSR procurement education.
In response to any potential risk, we launched the Hitachi
Procurement CSR Committee as a way to share guidelines andprograms Group-wide. Through this committee, around 100
suppliers outside Japan were selected for CSR monitoring.
In ﬁscal 2012, we will perform local auditing outside Japan,
based on the results of these surveys as part of our drive toreinforce CSR initiatives through supply chain management.

Shinichiro Omori
Vice President and Executive Officer,
General Manager of Corporate
Procurement Division, Hitachi, Ltd.

Building Global Human Capital Management to Boost
Competitiveness and Create Workplaces Where All
Employees Can Work Safely and Happily

Naoki Mitarai
Vice President and Executive Officer, General
Manager of Human Capital Group andCorporate Administration Division, Hitachi, Ltd.

While meeting the challenges of global business expansion,
we are developing management practices for the entire
Hitachi Group so that we can optimize our human capital.
In ﬁscal 2012, we will build a global human capital database as a step toward creating a global grading system andother common business tools. We will also work to optimize
human capital and organizational performance on a businessand local basis, moving toward our ultimate goal of providing
value that contributes to the competitive advantage of ourglobal management.
With tens of thousands of people outside Japan expected
to join our payroll over the next three years, we need to step
up locally led business. For this reason, we will train people
who share the Hitachi core values to lead our local operations, optimizing human capital management for a particularbusiness and region. We are also promoting work-life balanceand diversity management in all regions to ensure that all of
our employees can work safely and happily.

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105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Respect for Human Rights
Cherishing humanity has been fundamental
to management at Hitachi since our foundation. When operating globally, we respecthuman rights based on international codes
for all of our stakeholders, appreciating
the cultures of every country and region toenhance our understanding of their values.

Human Rights Policies
We established the Hitachi Group Codes of Conduct
in 2010. Central to these rules are respect fornational and regional laws as well as universal
human rights based on international norms. Our
codes clearly require: respect for the individuality and personalities of all stakeholders related toour business; the elimination of discrimination in
recruitment and employment; and respect for basic
human rights in all workplaces. We have translated
the codes into 17 languages to improve humanrights awareness among all Hitachi Group employees worldwide. We also focus on corporate management that respects human rights, as outlinedin ISO 26000, the international standard for social
responsibility, published in November 2011.

Hitachi Group Codes of Conduct
Chapter 4 Respect of Human Rights

emergence of problems from personal information leaks,
computer viruses, and unauthorized access.
4.4 Respect of Basic Rights at Work
(1) We will advance employment with proper consideration
for corporate social responsibility. We will hire employees
in accordance with the governing domestic, foreign andlocal laws in each country and region. We will not use childlabor that employs children below the minimum working
age or coerced labor that is against the will of the workers.
(2) We will conduct procurement with proper consideration forcorporate social responsibility, and will not procure goods
or services from enterprises that utilize child labor or forcedlabor.
(3) Considering the laws and regulations and labor practices
in each nation and region, and respecting the basic rightsof employees presented as the principles of the United
Nations Global Compact, we will strive to have employees
and managers better understand each other’s problems
and resolve issues jointly through genuine and constructive
dialogue.

Framework for Promoting Respect for
Human Rights
Hitachi, Ltd. established the Central Human Rights
Promotion Committee to gauge the impact ofbusiness activities on stakeholders’ human rights
and deliberate on mechanisms and policies toprevent human rights violations. A Hitachi, Ltd.
executive officer chairs this body, whose members
Hitachi, Ltd. Framework for Promoting Respect for
Human Rights

4.1 Promoting Respect of Human Rights(1) We will respect international standards of conduct
regarding human rights, and strive to ensure that we do
not engage in any conduct that obstructs or interfereswith human rights.
4.2 Eliminating Discrimination(1) We will respect every person’s character and individuality
in the recruitment and treatment of employees, theconduct of commercial transactions, and all other company
activities, and not engage in any acts that impair individual dignity or discriminate on the basis of sex, age,nationality, race, ethnicity, ideology, belief, religion, social
status, family origin, disease, disability, etc.
4.3 Respect of Human Rights in Information
Management(1) We will establish information ethics based on consideration of human rights and the maintenance of security
in information handling, to prevent in advance the

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Central Human Rights Promotion Committee
Chairperson: Executive Officer
Members: Personnel in charge of corporate divisions
such as marketing, procurement, humanresources, and other divisions
Company and Business Site Committee
Chairperson: In-House Company Presidents
and Division Heads
Members: Division managers
Company and Business Site Committee
Chairperson: In-House Company Presidents
and Division Heads
Members: Division managers
Company and Business Site Committee
Chairperson: In-House Company Presidents
and Division Heads
Members: Division managers

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Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

include representatives from sales, procurement,
human resources, and other corporate units.
Information from deliberations is shared with all
employees through company and business site committees, led by company and division executives.

Raising Awareness of Human Rights
Hitachi improves Group-wide human rights awareness based on guidelines deliberated on anddecided by the Central Human Rights Promotion
Committee. We develop human rights leaders andprovide educational materials and information for
the entire Hitachi Group to augment business units’
regular group training, seminars, and video education. Hitachi operates a human rights e-learning
course that all employees take once every three
years to boost human rights awareness across all
Group companies in Japan.
We maintain a framework to more swiftly detect
and resolve internal and external human rights
violations. This framework includes the Compliance
Reporting System, a sexual harassment consultation
system, and employee awareness surveys. We strive
to identify human rights risks globally throughregular management and business risk assessments.

Management workshop in Europe

understand our position on human rights.
Following last year, in ﬁscal 2011, an e-learning
program provided in English, French, German, andItalian was made available for about 10,000 employees at European Hitachi Group companies. We followed up on ﬁscal 2010 momentum with anotherworkshop on human rights held in conjunction with
Global CSR, a group of experts on human rights
issues and CSR. More than 80 percent of selected
managers participated, deepening their understanding of human rights in the workplace as well
as how to incorporate the UN framework into business operations.

Applying Human Rights Worldwide
We encourage human rights awareness as a global
enterprise. One example: we work with our CSR
team in Europe as, we believe, the most advanced
region that is addressing human rights, to develop
educational materials and other awareness-raisingprograms. We intend to apply these programs
worldwide.
Our European CSR team collaborated with
European Group companies to launch a humanrights project. We also promote understandingof the United Nations framework on the issues ofbusiness and human rights, “Protect, Respect andRemedy” formulated by Professor John Ruggie,Special Representative of the Secretary-General of
the United Nations. Based on that framework, we
exchange views with the former members centrally
involved in shaping and writing the UN Guiding
Principles and provide human rights education toemployees. We are also helping our suppliers toContributing to International
Discussions
As a member of the United Nations Global Compact(UNGC) Human Rights Working Group, we help topromote the UNGC’s human rights principles andsupport their goals of increasing understanding andof implementing the UN framework. The Working
Group creates case studies on useful corporate initiatives and we contribute to the working group, whichaims to provide guidance on business and humanrights and information on management tools.
In Europe, we participate in a working group on
supply chains and human rights operated by CSR
Europe, a business network promoting European
CSR, which is creating guidance to support theimplementation of key human rights in businessthrough best practice examples and practical tools.
We will continue our role in international discussions on human rights, deepening our understand-

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Environmental Reporting of global human rights trends and contributing to activities that promote respect for humanrights—beyond Hitachi and industry.

VOICES

085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

to play in sharing the learning from its own
efforts with others who are just beginning toaddress these issues. I look forward to continuing to engage with Hitachi as it works tomeet its human rights commitments.

Leading the Way on Human Rights

Rachel DavisManaging Director, SHIFT
Former Legal Advisor to Professor John Ruggie,
UN Special Representative on Business and Human Rights

The new UN Guiding Principles on Businessand Human Rights provide companies with a
blueprint to “know and show” that they are
respecting human rights in their own activities and in their business relationships. Hitachi
is taking the crucial ﬁrst steps to implement
this blueprint by developing a company-wide
human rights policy and building awarenessamong staff at all levels about what thismeans for the company.
The next steps for Hitachi will be todevelop the human rights due diligence andremediation processes needed to implement
the policy. These will be most effective if theybuild, wherever possible, on existing business practices and systems that are alreadywell-understood and integrated within thecompany.
Of course, stakeholder expectations will
be high. Yet implementation for any company
takes time—and for a company of Hitachi’ssize and diversity, even more so. So it will be
important that Hitachi continues to communicate with stakeholders about its plans andprogress along the way. Moreover, as botha Japanese-headquartered company and a
global company, Hitachi has a leading role

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Employee Health and Safety

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Diversity Management

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Global Human Capital Development

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Social Contribution Activities

Supply Chain Management
One priority in the 2012 Mid-Term
Management Plan is to expand our global
procurement ratio, particularly by steppingup purchasing in emerging countries. This
will reinforce our competitiveness in global
markets, and operational foundation. For
global procurement, we respect the humanrights and the basic work rights of everyonein the supply chain. We collaborate with
suppliers in promoting CSR activities by sharing
guidelines and communicating proactively.

Promoting Globalization
Using the 2012 Mid-Term Management Plan, we
intended to raise the Hitachi Group’s global procurement ratio from 36 percent (ﬁscal 2010) to 50
percent by ﬁscal 2012. We therefore formulated
the Hitachi Group Mid-Term Procurement Strategic
Plan. The key aims are to establish global partnerships to create Group procurement strategies, tostabilize the supply of materials, and to reinforce
CSR and sustainability within the supply chain. In
ﬁscal 2011, we appointed procurement officers tooversee local procurement in China, Asia, Europe,and the Americas. These officers are responsible for
expanding the pool of suppliers in the emerging
nations, as well as for reinforcing our responsiveness to CSR risk, a growing concern as the global
supply chain expands.
Global Procurement Ratio of the Hitachi Group
(%)
100
80
60
50
(Target)
40

36%

38%

20
0

2010

2011

(FY)

Sharing Procurement Policies
We are pursuing our procurement activities
based on the Hitachi Guidelines for Procurement
Activities, while sharing global supply chain issues
within the Group.
These guidelines were created in line with theUnited Nations Global Compact,†1 and include theelimination of discrimination in employment andoccupation as well as all forms of child and forcedlabor.
†1 UN Global Compact: An international accord that Koﬁ Annan, the former
Secretary-General of the United Nations, proposed and which was adopted in
2000. This compact’s 10 principles on human rights, labor, the environment,
and anti-corruption encourage the building of a sustainable society. The
United Nations asks corporations, nongovernment organizations, citizens
groups, and other entities to base their actions on these principles.

Guidelines for Procurement Activities
These guidelines deﬁne business transaction standards
which shall be applied to all HITACHI executives andemployees in connection with their activities purchasing necessary materials, products, services, and information from outside sources.
1. Overall procurement activities of Hitachi shall adhere
to the “HITACHI Company Conduct Standards.”
2. HITACHI shall maintain proper partnerships, mutual
understanding, and reliable relationships with suppliers with a view to the long term results.
(1) HITACHI shall treat all suppliers impartially and beprohibited from favoritism such as giving unfair
priority to any speciﬁc suppliers.
(2) HITACHI respects fair business dealings with
suppliers and will avoid any improper act whichmight cause a loss to a supplier apart from normal and customary business transactions.
(3) HITACHI shall keep suppliers’ trade secrets strictly
conﬁdential and prevent them from being revealed or improperly used.
3. HITACHI develops suppliers to maintain competitiveness from a worldwide point of view.
(1) HITACHI responds to all suppliers’ offers sincerely,
and is always willing to offer the informationnecessary for suppliers to compete on an evenplaying ﬁeld.
(2) HITACHI shall periodically check and review suppliers’ performance and will consider offering
more advantageous business opportunities whencomparison with other resources allows.
4. Through a designated selection process, suppliers

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Environmental Reportshall be evaluated by product quality, reliability,
delivery, price, suppliers’ business stability, technicaldevelopment ability, fair and transparent information release, compliance with societies’ rules, regulation compliance, respect for human rights, elimination of discrimination in respect of employment andoccupation, elimination of all forms of forced andcompulsory labor, environmental preservation activities, social contributions, good working environment, and recognition of social responsibilities withbusiness partners.
(1) HITACHI shall not request quotations from suppliers with whom there is no intention to enter into
a future business relationship.
(2) In accordance with speciﬁed internal procedures,the role and responsibility for speciﬁcations,terms and conditions, product acceptance andinspection belongs to each Requester, Procurement Department and Inspection Department.
(3) Procurement Departments shall be a representative of HITACHI when contracting with suppliers.
5. HITACHI members are prohibited from receiving any
personal gifts or offers from suppliers.
Revised in 2009
All companies in the Hitachi Group act in accordance with these guidelines.

Building Global Partnerships
Our basic principles on procurement call for forging
partnerships, mutual understanding, and reliable
relationships with all suppliers with an eye on thelong term. For these reasons, as well as the principleof free competition, we disclose procurement items
to all suppliers, inside and outside Japan, to cultivate and expand our pool of suppliers.
For this goal, we held meetings on the Hitachi
Guidelines for Procurement Activities with local
suppliers in South Korea in July 2011, in Taiwan in

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November, in Shanghai in February 2012, and in
Warsaw and Bucharest in March. We will continue
to develop relationships with suppliers in new
areas in response to globalization, focusing on theemerging nations that we have positioned as major
markets.

Responding to CSR Procurement Risk
CSR risk is a growing concern as globalization accelerates. Recognizing that supply chain procurement
risk could cause management problems, we arereinforcing our risk identiﬁcation and management
to avoid and mitigate risk as much as possible.
CSR Procurement Promotion Framework
To strengthen our CSR supply chain management, we established a CSR Green Procurement
Center within the Corporate Procurement Division.
We have also launched the Hitachi Group CSR
Procurement Committee, which includes CSR committee members from our in-house companies andGroup companies. This completes a frameworkthat will enable our CSR procurement philosophy
and initiatives to be shared throughout the Group.
The Hitachi Group Procurement CSR Committee
selected suppliers from China and elsewhere in Asia
as the focus of our ﬁscal 2011 CSR survey.
CSR Procurement Promotion Framework

Hitachi Group CSR
Procurement Committee

Corporate Procurement
Division
CSR Green Procurement
Center (Secretariat)

In-house company CSR
committee members

Group company CSR
committee members*CSR procurement committees are in
charge of related issues both within theirown company and for affiliated Group
companies (in and outside Japan).

Sharing CSR AwarenessWe distribute, both throughout the Group and to
our suppliers, the Hitachi Group Supply Chain CSR
Deployment Guidebook, which conforms to theguidelines of the Japan Electronics and Information
Technology Industries Association (JEITA).

Meeting in Shanghai on procurement guidelines

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WEB Hitachi Group Supply Chain CSR Deployment Guidebook
http://www.hitachi.com/procurement/policy/__icsFiles/afieldfile/2010/08/30/
SC_CSR_E_2.pdf

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Distribution of Points across 101 Suppliers in China andthe Rest of Asia
(No. of ﬁrms)
40

Conducting Supplier CSR Surveys
To address procurement-related risk, in ﬁscal
2011, we used the Hitachi Group Supply Chain CSR
Deployment Guidebook as the basis for a supplier
CSR evaluation survey conducted in China andelsewhere in Asia.

Top
score

29

30

20
11

10

14

4

Results of CSR Monitoring Survey of 101 Suppliers in
China and the Rest of Asia
No. ofcompanies
surveyed

39

0

Bottomscore

Average50–59 60–69 70–79 80–89 90–99

4
100

No.

Country/Region

1

China

68

100

54

87

2

South Korea

10

100

59

78

3

Taiwan

6

98

60

84

4

Thailand

6

99

64

82

Green Procurement

5

Malaysia

4

90

79

86

6

Indonesia

2

63

61

62

7

Vietnam

2

76

64

70

In keeping with our commitment to environmentallyconscious monozukuri craftsmanship, we use green
procurement†1 in our supply chain.

8

The Philippines

2

96

55

76

9

Singapore

1

80

80

80

101

100

54

84

Total

(Maximum score = 100)

The ﬁscal 2011 survey covered 101 suppliers.
When we collated the results, converting the scoreson the JEITA checklist to a maximum of 100 points,
four companies (three in China and one in South
Korea) achieved the maximum score, while thebottom score of 54 was recorded by one company.
The average was 84. These results show how
effective CSR initiatives are and how strong CSR
awareness is at the companies we surveyed.
The point distribution across the 101 companies
is shown below. Seventy-two companies, or around70 percent, scored 80 or more, while four scoredbetween 50 and 59.

In ﬁscal 2012, we will use the survey results above
to determine which suppliers to audit, using an
external organization.

†1 Green procurement: Procuring parts and materials that reduce the environmental burden from suppliers that protect the environment.

Green Procurement Guidelines
In ﬁscal 1998, Hitachi led the business community indeveloping Green Procurement Guidelines to deﬁne
our basic position on procuring parts and productsthat do not impose a burden on the global environment, as well as our requirements of suppliers, so that
we can work together to promote green procurement.
The guidelines set out supplier requirements forenvironmental conservation, including building anenvironmental management system and acquiring certiﬁcations. There are also requirements for
reducing the environmental burden of products
supplied to Hitachi, such as conserving resourcesand energy, recycling, managing chemical substances, and fully disclosing information.
In ﬁscal 2011, we added ecosystem conservation to the guidelines as one element of the Hitachi
Environmental Vision. These guidelines were also
revised to require suppliers to commit to preventing
global warming, conserving resources, and preserving ecosystems in their own environmental guidelines.

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WEB Green Procurement Guidelines
http://www.hitachi.com/environment/library/pdf/green_en.pdf

Helping Build Environment Management
Systems
Hitachi calls suppliers who acquire environmental
certiﬁcations and who develop environmental
management systems (EMSs) Green Suppliers. In
ﬁscal 2009, we launched the New MMM Club†1 withthese Green Suppliers, providing them with information on advanced environmental technologies
and environmental regulations to support their EMS
development.
In ﬁscal 2011, around 80 suppliers attended ageneral meeting of the New MMM Club. At themeeting, Hitachi explained trends in global environmental standards, as well as environment-related
legal assistance schemes and cases where thesehave been used. Suppliers gave presentations on
their own environmental programs.
†1 The New MMM Club: An organization run primarily by suppliers who haveacquired environmental certiﬁcation through Hitachi’s activities to support
their own environmental programs. Mottainai, which means regrettable waste
in Japanese, is now an international environmental term. The three Ms comefrom the ﬁrst letter of mottainai.

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Diversity Management

118

Global Human Capital Development

0102 Public Policy Initiatives

121

Social Contribution Activities

Plus†1/AIS†2 reporting formulas published by JAMP
(Joint Article Management Promotion Consortium).
We also encourage them to use information transmission systems and to minimize the amount oflabor involved. In January 2012, Hitachi announced
that it would join with six other downstream ﬁrms†3
in using the JAMP-IT system (a chemical substance management system operated by JAMP). A
Gree’Net is linked with JAMP-IT.
†1 MSDS Plus: A format for reporting chemical substances contained in
products created by upstream companies (chemical manufacturers) for midstream companies (molded product manufacturers, etc.).
†2 AIS: A format for reporting chemical substances contained in products
created by mid-stream companies (molded product manufacturers, etc.) for
downstream companies (assembly manufacturers, etc.).
†3 Seven downstream companies: Hitachi, Panasonic, Toshiba, Fujitsu,
Mitsubishi Electric, NEC, and Ricoh.

Promoting Green Purchasing
We are improving our green purchasing rate—theratio of environmentally conscious products purchased to total office supplies—by using a Groupwide online purchasing system, the e-sourcing
Mall. This system has a range of environmentallyconscious products, and promotes purchasing byclearly labeling these products.
For ﬁscal 2011, our green purchasing rate fellslightly from the previous ﬁscal year’s 95 percent
due to tighter product supply and demand following the March 2011 disaster, but still reached 90
percent.

Response to the Conflict Minerals Issue

New MMM Club General Meeting

Dealing with Chemical Substances Contained in
Products
There is a global trend for strengthening regulations on chemical substances, such as Europe’s
REACH regulations. Hitachi has built the A Gree’Net,
an Internet-based green procurement system, tocollect information on chemical substances contained in products and other environment-related
data from suppliers as this becomes available. The
goal is to manage chemicals carefully. Under thissystem, we encourage suppliers to use the MSDSThe Dodd-Frank Wall Street Reform and Consumer
Protection Act was signed into law in the UnitedStates in 2010. Article 1502 of this act obliges companies with securities registered in the US that use
any conﬂict minerals in their products to report
this to the US Securities and Exchange Commission(SEC). Conﬂict minerals include columbite-tantalite,
cassiterite, gold, and wolframite, the four minerals determined to be ﬁnancing conﬂicts that are
produced in the Democratic Republic of Congo(the “DRC”) and adjoining countries (together the“DRC countries”). The goal of this law is to cut off
revenues from armed groups that use violence andviolate human rights in the conﬂict-ridden DRC
countries.

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Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

0102 Public Policy Initiatives

121

Social Contribution Activities

Hitachi is committed to responsible procurement
practices and has no intention, directly or indirectly,of abetting the human rights violations identiﬁedin the DRC countries. Accordingly, we are working
with Group companies, suppliers, and the industry
association JEITA to boost supply chain transparency and to ensure that the minerals we procure do
not ﬁnance or beneﬁt armed groups committing
human rights violations.

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085
085 Social
SocialReport
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Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Diversity Management
Our diversity initiatives build a collaborative
culture and work environment that motivatesa range of people to fulfill their potential,
enabling every employee to feel that his or her
job is rewarding and worthwhile, and allowing
them to work with enthusiasm.

formed into six groups to exchange views on setting up new systems and implementing them ineach company or worksite, and to discuss common
issues. Participating companies and worksites havetaken advantage of the information and tools fromcouncil meetings to plan and implement their own
measures.

Diversity Development Project
We launched the Diversity and Inclusion
Development Project in ﬁscal 2006 to drive ourcommitment with a range of programs, including
enabling employees to balance work with childcare or nursing care and promoting women in theworkplace.
Diversity Development Group Council
We began the Diversity Development GroupCouncil in ﬁscal 2009 to foster Group-wide diversity(within Hitachi, Ltd. and 25 major Group companies). The Council works to raise the standards ofthe entire Group by sharing internal and external
expertise and through exchanging views.
In December 2011, the council held its eighth
meeting under the theme of balancing work andnursing care. In the ﬁrst session, outside experts
gave lectures. In the second session, attendees

Special Roundtable Talk by Hitachi Group Female
Managers
We held a roundtable talk with four female HitachiGroup general managers, led by Yukari Tominaga,an executive officer at Hitachi Solutions, Ltd. The
women focused on ways that the Hitachi Group,
to compete worldwide, can promote collaboration
among employees with varied skills and values. The
participants enthusiastically shared their insights
on several topics, including helping people to meetthe challenges of globalization, developing ideal
work styles among diverse co-workers, and motivating people to be successful in the world market.
We published some of this discussion on the Group
intranet. This event helped us to resolve a perceived
lack of role models for female employees by showcasing female executives who have succeeded in a
broad range of businesses.

Diversity Development Project Structure
President (overall executive in charge)
Advisors: External directors
Advisory Committee:
Executive vice presidents, vice president incharge of personnel, managers in charge oflabor administration in Group companies
Diversity Development Group Council
Secretariat: Diversity Development Center
Members: People in charge of diversity
development within Group or internal
companies and offices
To promote diversity, we hold regular meetings to exchange opinionswith labor unions.

Women’s Summit Tokyo 2011
We cosponsor the Women’s Summit Tokyo, across-industry networking event that helps toadvance women in the workplace. This event brings
together people from companies inside and outside
Japan to discuss in groups and workshops how to

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support women’s goals, diversity management, andglobalization. At the fourth event, in November
2011, 190 people from 42 companies took part.
Under the event theme of leadership respecting individual personalities and values, participants
exchanged views—against the backdrop of sharedawareness of the need to create higher value—byrespecting diversity amid growing global competition.

Women’s Summit Tokyo 2011

Second Work-Life Balance-up! MonthIn ﬁscal 2010, we began holding Work-Life Balanceup! Month (WLB-up! Month) every November toinform employees about our work-life balance
programs and to encourage people to use them.
During the November 2011 event, we increased
the number of participants to include those inGroup companies who will now encourage other
employees to review their work-life balance andcreate a corporate culture where people help one
another. In ﬁscal year 2011, we added a new campaign called My WLB-up! Day to invite employees
to take advantage of a program one day during
WLB-up! Month, making work-life balance more
relevant to them.
Diversity Training for Managers
It is vital to improve awareness among managersof the need to respect diversity and encourage theparticipation of all employees. We started diversity
training for managers in ﬁscal 2011. This training
features group discussions on speciﬁc company orworksite issues and raises awareness of the HitachiGroup’s diversity programs. In ﬁscal 2011, 450 managers participated, making it an excellent opportunity for them to review their management experiences and rethink their approach to maximizing the085
085 Social
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Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

potential of people and organizations. After completing the training, participants commented thatthey will take the initiative in driving diversity byadopting new ideas and creating workplaces where
people can talk openly.

Diversity Workshops
We conducted a World Café†1 workshop to create abetter understanding of and to highlight the needfor diversity and work-life balance. The workshop
provided opportunities for all employees, including
senior executives as well as young employees, tospeak about diversity and work-life balance intheir own workplaces and businesses and to takeaway ideas from the discussions. We received many
positive comments from participants. One person
felt satisﬁed at being able to contribute to diversity
initiatives; and another found that the workshop
was a good way of sharing issues and opinions.
This event also helps foster a corporate culture ofmutual respect and assistance. In ﬁscal 2011, 550
people participated.
†1 World Café: Open dialogues among groups of four or five people about
specific topics in an informal, café-like atmosphere.

Diversity workshop

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Main Assessments and Awards
Hitachi, Ltd. has received the following assessments
and awards from the media and related organizations to recognize diversity and other initiatives thatcreate more employee-friendly workplaces:· Nihon Keizai Shimbun, 2011 Ranking ofCompanies with the Best Working Conditions: 2ndplace· Nikkei Business Publications, Inc., 2011 Ranking of
the Best 100 Companies that Encourage Working
Women: 21st place· Hitachi, Ltd. Chubu Area Operation: Authorizedunder the Child Rearing Support Company
Certiﬁcation and Award System sponsored by theCity of Nagoya, receiving the jury’s special award· Fortune Magazine of the United States named
Hitachi Data Systems Corporation one of the “100Best Companies to Work For” in 2012.

Child-rearing support company certiﬁcation and award ceremony

Ratio of Male and Female Employees in FY 2011
Females
15.9%

085
085 Social
SocialReport
Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

the shared challenge of raising their two-yearold child.
Tsukasa : “I’m in charge of taking our child tothe nursery before work. Ai picks up our childafter work, although I’ll do that if Ai is busy atwork. At home, I always try to help Ai as muchas possible. I concentrate really hard at workwhen deciding to go home early, now that I
have less overtime, partly because my boss isvery understanding. When we had to work on
Saturdays or Sundays because of the effectsof the Great East Japan Earthquake, I had torun around to ﬁnd a nursery that was open
on weekends. When I’m by myself on mydays off, I learned how laborious it can be tofeed, bathe, and otherwise look after children
through to bedtime.”
Ai : “I took maternity leave six weeks before ourbaby was due and returned to work when ourchild was eleven months old. Tsukasa eased myanxiety about returning to work because hetold me how things were going at work, andthe company itself made it easier for me to getback into the swing of things. Both our parents
live far away, so Tsukasa and I basically share all
the childcare and housework. If our child getsa fever or there’s some other problem, I try totake advantage of the ﬂextime system. I can afford to take my own time, as Tsukasa willingly
looks after our child and shares the housework.
He is very helpful, listening whenever I am
stressed out or have a problem. I get support
from the company in using the programs andfrom my colleagues and husband.”

Hitachi, Ltd.

Males
84.1%

VOICES
Exercising Work-Life Balance as a Couple
Mr. and Ms. Yokoyama joined the company
at the same time in 2005. They are enjoying

Tsukasa Yokoyama
IT Core Development Division, Clarion Co., Ltd.
Ai Yokoyama
Intellectual Property Division, Clarion Co., Ltd.

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ReportTrend in the Number and Ratio of Female Managers

3.0

2.9

3.3

377

2
1
0

320

303

300

4

105

Quality Assurance and Customer Satisfaction

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities(People)
250

3
386

400

3.4

Message087

Number of Employees Taking Paternity Leave(%)(People)

086

209
200

139

143

2008

2009

150
200

100

100

0

156

73

50

2000

2008

2009

Hitachi, Ltd.

2010

0

2011
(FY)

Trend in the Number of Employees Taking
Nursing Care Leave

Trend in the Number of Employees Taking
Child Care Leave(People)(People)

20

20
510

500

542

18

533
15

459

438

2011
(FY)

Hitachi, Ltd.

Hitachi, Ltd.

600

2010

11

400

10

12
10

300
5

200
100
0

0

2007

2008

2009

2010

2007

2009

2010

2011
(FY)

Hitachi, Ltd.

2011
(FY)

(People)Breakdown of Males and Females

Hitachi, Ltd.

2007

(People)Breakdown of Males and Females
2007

2008

2008

2009

2010

2011

Female

436

451

504

525

518

Male

2

8

6

17

15

Total

438

459

510

542

533

2009

2010

2011

Female

10

8

6

7

6

Male

10

10

5

3

6

Total

20

18

11

10

12

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085
085 Social
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ReportTrend in the Number of Employees Working Shorter Hours(People)
383

400
350

337

321

288

300

200

100

0

2007

2008

2009

2010

2011
(FY)

Hitachi, Ltd.
(People)Breakdown of Males and Females
2007

2008

2009

2010

2011

Female

349

381

287

330

Male

1

2

1

7

313
8

Total

350

383

288

337

321

European Diversity Project
Europe’s population is aging at an unprecedented
rate. Over the coming decades, companies in
Europe will face an intensifying struggle over talent. Businesses will therefore need to more effectively employ women, senior citizens, and young
people. We have collaborated with CSR Europe andeconsense, and other organizations, as well as withother companies, to address these issues. Also, we
produce a publication to assist companies and policymakers to be aware of these types of issues.
The European Diversity Project that we started
internally in 2009 continues to address diversity issues across all Hitachi Group companies in Europe.
The focus through the end of ﬁscal 2011 was on
gender diversity: encouraging more women to join
Hitachi and to promote their career development.
An e-learning course is available to all employees,
and more than 80 percent of selected managers
have taken part in face-to-face workshops.
As a result of these programs, a survey of groupcompanies conducted in ﬁscal 2011 indicated thatthe percentage of women in the workforce in general, and in senior management in Europe in particular, increased in ﬁscal 2010, though slightly. Anotherencouraging statistic was that the percentage ofwomen among new managers had also risen.

086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

In ﬁscal 2012, this European project will also
focus on other dimensions of diversity, such as
ethnicity, and on corporate culture change. This
will ensure that the cultures of the individual groupcompanies in Europe become more inclusive at alllevels. We believe that having a diverse, inclusive
corporate culture supports us in becoming a truly
global company.
Holding the Hitachi Global Diversity andInclusion Summit
The 1st Hitachi Global Diversity Summit andInclusion was held in San Francisco in October
2011 through cooperation between the personnel and CSR teams in Japan, Europe, and the US.
The Human Capital Group and the CSR Divisionof the head office and the human resources andCSR teams of Hitachi America,Ltd., Hitachi Data
Systems, Hitachi Consulting Co.Ltd, and Hitachi
Europe Ltd. participated in the summit and discussed diversity and inclusion initiatives already inplace and brainstormed about global implementation of these activities. The teams also discussed
goals for Hitachi to achieve in the next few years
and created recommendations for the Human
Capital Group to consider.
Also at the plenary meeting, Global
Organization for Leadership Development andDiversity (GOLD), a non-governmental organization
which promotes innovative initiatives to provide
leadership development training experience thatinspires and prepares women to assume leadershiproles in a global diversiﬁed workforce environment,,
made the keynote speech. Benchmarking gender
diversity against other global companies was exam-

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Reportined and various diversity groups were also considered for new initiatives. Then the attendees broke
into working groups to examine existing diversity
and inclusion policies and to create global Hitachi
Diversity and Inclusion Policy drafts that included
tactical steps that could be used to achieve thesuccess of the policy and to unite as ONE HITACHI
using one global policy.
The participants agreed that inclusive diversity
is necessary in the increasingly globalized businessenvironment, that cooperation between the personnel departments and the CSR teams is indispensable, that plenary meetings should be held continuously, and that the Diversity and Inclusion Policy
drafts should be framed into one policy proposal
to be ready for approval by the next summit with a
global implementation to follow.

Employing People with Disabilities
We are developing workplaces where anyone canmake a full contribution. We continue to employ
those with disabilities and promote Group-wide
understanding in Japan.
During ﬁscal 2011, we stepped up hiring people
with disabilities. We held the Hitachi Group job
fair for disabled jobseekers twice instead of once.
We held ﬁve study meetings during the year on
employing people with disabilities; the goals being
to deepen understanding and to share information
among companies.

086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

As of June 2012, the employment ratio ofpeople with disabilities was 2.00 percent at Hitachi,Ltd. and 1.86 percent for the entire Group, reaching
the legally mandated ratio of 1.8 percent.
Hitachi Group Special Subsidiaries
Four special subsidiaries within the Hitachi Groupare dedicated to creating employment for people
with disabilities. In ﬁscal 2011, 202 physically, intellectually, and mentally challenged people worked for
those subsidiaries, up from 180 a year earlier. These
people work with employees of the parent company
and affiliated companies in the same locations, collecting and distributing mail, cleaning offices, working in cafeterias, and handling clerical work.
One special subsidiary of Hitachi Metals, Ltd.
is Hallow, Ltd., based in Kumagaya, Saitama
Prefecture. Here, employees with physical, intellectual, and mental disabilities have worked ona range of tasks since the company’s founding in
1998, especially manufacturing permanent magnets, ﬁnishing aluminum wheels, and cleaning.

Employment Ratio of People with Disabilities(％)(People)

2.5
1,300

2.06
1.85

2.05

2.00

2.0
1.8*

1,150
1,000

2.01

1,106

1,091

981

1,044.5

1.5

933
1.0

850
0.5

700
0

2000

2008

2009

2011
(FY)

2010

0

Source: Hitachi, Ltd. (collected in June every year)*Legally mandated employment ratio in Japan

Workplace at Hallow, a special subsidiary of Hitachi Metals

Fostering the Employment and Understanding of
People with Mental Disabilities
March 2010 saw the completion of a model projectof the Ministry of Health, Labour and Welfare called
Promoting the Employment of People with Mental
Disabilities. Having participated in that project,
we are still using the project site and its intranet
to continue raising understanding among Group
employees of the needs of people with mental
disabilities.
The number of “natural supporters,” or people
those who they provide spontaneous assistance for

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Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

people with mental disabilities, increased to 278
in ﬁscal 2011, up from 110 a year earlier. Since themodel project ended, we have continued our activities, including holding training sessions for supporters. We will build further on our achievementof increasing the number of mentally challenged
employees in the Hitachi Group by 33 in ﬁscal 2011.
In addition, we take part in outside lectures andworkshops on employing people with disabilities,
sharing the expertise learned from the model
project with many other companies. We will keep
promoting initiatives that help improve employment for mentally challenged people in Japan.

Intranet for the Project to Promote Employment of People with Mental
Disabilities

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Social Report086

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105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Public Policy Initiatives
Partnerships with governments and policymakers around the world are vital for growing our Social Innovation Business to create asustainable society. We are enhancing external
relations so that we can respond to social
expectations as a company supplying social
infrastructure and then feeding back social andpolicy trends to management.

External Relations Policy andPromotion Structure
Our basic plan is to participate in public policy initiatives not only in Japan but in countries and regions
across the world and to help develop a sustainable
society. This means building networks with government institutions in countries around the world tomonitor policy trends there, offering appropriate
recommendations for social innovation solutions,such as energy generation and smart cities.
In ﬁscal 2009, the Government & External
Relations Division (initially the Government &External Relations Office) was established within
our headquarters. The division’s functions were
substantially enhanced in ﬁscal 2011, adding personnel in charge of external relations at Hitachi’s inhouse and Group companies, to enable the division
to serve as an organization, directly under our presiHitachi External Relations Promotion Structure
Hitachi, Ltd.
President

Government &External Relations
Division

Hitachi, Ltd.
Related divisions
In-house companies
External relations
divisions
Main Group
companies
External relations
divisions
Hitachi Corporate
Office,Washington, D.C.
Hitachi Corporate
Office, Europe(Brussels)

Hitachi Group
External Relations members meeting

dent, that can liaise closely with senior management. Regular information exchanges are held withexternal relations personnel at the Hitachi Group
External Relations members meeting.

Strengthening External Relations
Outside Japan, we have offices in Washington, D.C.
and Brussels to monitor policy trends and conduct
external relations initiatives in the US and Europe. In
the US, we have set up an external relations network
among the major Group companies to build connections for sharing information on US policy and regulatory trends, as well as various government policy
issues. In Asia, we are enhancing external relations
in collaboration with local operations.
A more important factor in strengthening external relations in the future will be human resource
exchanges among public institutions and private
ﬁrms. Hitachi currently has many people with valuable expertise on loan to Japanese government andinternational institutions who contribute to public
policymaking. Hitachi also extends invitations topeople from government institutions who areoperating on the frontlines of public policymaking
to help deepen mutual understanding.

Contributing to Public Policy on Social
Infrastructure
We are involved in government institution policymaking in many areas of the social infrastructure,including the environment and smart cities as wellas railroads, power generation, and water treatment. By participating in government-led study
groups and councils, we increase government
officials’ understanding of Hitachi, and this helps to
support policy implementations.
The Environment
One key area in Hitachi’s external relations is theenvironment. Japan’s Ministry of Economy, Tradeand Industry (METI) and the Ministry of the Environment are currently exploring a new mechanism

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through the spread of low-carbon technologies
and products where Japan leads the world. The
goal is to make sure that these reductions are
reﬂected in Japan’s overall emissions volume. We
are committed to helping resolve environmental
problems through our energy-saving products andhigh-efficiency systems.
In ﬁscal 2011, two Hitachi projects (currently
underway) were selected by the New Energy andIndustrial Technology Development Organization(NEDO) following an open call for environmentrelated feasibility studies: a research program on
reducing greenhouse gas emissions through a pilot
project for energy-efficient distribution transformers in Vietnam, Indonesia, and South Africa; andproject and planning studies for gas turbine cogeneration systems for factories in South Africa.
Smart Cities
We also develop partnerships with organizations in
the area of smart cities. To resolve global environmental issues, as well as problems at home such as
population decline, Hitachi is participating—alongwith a number of local authorities—in Keidanren’s
Future City Model Projects. In Hitachi City, forexample, the birthplace of Hitachi, Ltd. and home
to many Hitachi operations, we have been working
with local government bodies, related groups, andlocal companies to create a better community. We
have been looking speciﬁcally at energy saving infactories and surrounding areas, as well as technicaleducation, medical care, and residential care.
Outside Japan, we are accelerating our smart
city initiatives. Hitachi was selected to conduct
NEDO smart grid demonstration projects in Hawaii
and Spain, and we are working with government
institutions on smart city projects in other regions.

External Relations in Europe
The Hitachi Corporate Office, Europe, located in
Brussels, gathers, analyzes and conveys information
on policy trends in Europe, makes recommendations on European Union policies, supports businessdevelopment through contacts within Europe, andserves as a link to European institutions.

085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Within the Japan Business Council in Europe(JBCE), an association of Japanese companies operating in Europe formed in 1999, Hitachi participatesin policy committees on issues such as the environment, CSR, and trade. In particular, as Chair of theJBCE CSR Committee, we are assisting policymakers
by offering recommendations to the EU institutions, and enhancing our proﬁle by, for instance,
attending European Commission-led meetings as
an invited stakeholder. In ﬁscal 2011, exchangesof views were held with the European Commission
and industry associations on the disclosure of nonﬁnancial information. On the same issue, we also
proposed to the European Commission and otherkey ﬁgures a letter of recommendation from theperspective of non-European global companies. Our
proactive approach received a positive response.
The information garnered through theseexternal relations activities is shared with not only
Hitachi Group companies but also Japanese industry associations. Hitachi will continue to serve as abridge between Japan and Europe, ensuring thatthe voices of Japanese companies are reﬂected inEuropean policymaking.

Stakeholder Dialogues
Since ﬁscal 2009, Hitachi has been holding stakeholder dialogues around the world with central
and local government officials, representatives
from research institutes, international institutions,industry associations, and inﬂuential NGOs.
These groups informally exchange views withsenior Hitachi executives and key personnel fromheadquarters and local operations. Stakeholder
dialogues enable us to identify global social issues,
understand what is expected of Hitachi, and reﬂect
this in management and strategy. Particularly inthe 11 key regions in the Mid-Term Management
Plan, many of which are emerging countries, weare discussing medium-to-long-term social andenvironmental issues faced by local communities
and how we could contribute to resolving theseissues. Our aim is to build long-term relations withlocal communities as a good corporate citizen andcontribute to sustainable economic, environmental,
and social development through our Social

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105

Quality Assurance and Customer Satisfaction

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Respect for Human Rights

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Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Stakeholder dialogue in Brazil

Innovation Business.
In Brazil in November 2011, we discussed socialand environmental issues from a medium-to-longterm perspective, looking at urban transportationin particular following the Olympics and the World
Cup. We received advice from participants on
the diversity of cities, how to build relations withlocal governments, and technologies to improvetransportation services. In February 2012, further
dialogues were held in Indonesia and Belgium. In
Indonesia, discussion focused on environmental
issues, with stakeholders suggesting areas otherthan technology where we might contribute to asustainable society. Smart cities were discussed in
Belgium, and stakeholders put forward a numberof suggestions on how local residents’ needs andcities’ particular characteristics should be reﬂected
in technology and urban development.

Stakeholder dialogue in Indonesia

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Environmental Report085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Quality Assurance and Customer Satisfaction
To reinforce our management structure, we
improve the quality of products and services
globally for diverse customers through our
tradition of monozukuri craftsmanship.

Quality Assurance Activities

Activities Supporting Quality Assurance

Organization & management∙ Management of defective
product accidents∙ QF emphasis
management system∙ OCHIBO HIROI (gleaning)∙ Management of
hazardous chemicals ...
Activities Supporting Quality Assurance
Technologies∙ Quality reliability
committee∙ Product safety∙ Technical law
compliance∙ Work process
improvements ...

Human capital∙ Penetration of OCHIBO HIROI
spirit∙ Improvement of engineers’
ethical awareness∙ Education on quality andreliability∙ Quality awareness
improvement movement ...

Product Manufacturing Process
Customers’
needs

Product planning

Design review

DesignPrototype evaluation/
approval

Purchased goods

Management ofpurchased goods

Manufacturing

In-line quality
control (QC)*1

Inspection

Improving inspection
techniques

Shipment/Delivery
Customers

Collecting
ﬁeld data andafter-sales services*1 In-line QC: Review and verification for identifying potential defects at thedevelopment and prototype stages of the product lifecycle.

Quality and Reliability Education
We develop training courses for all technical andskill levels at divisions engaged in design andquality assurance. The courses cover reliability(fundamentals and applications) and productsafety. In ﬁscal 2010, we started a new course forsection chiefs and above to reaffirm their wayof thinking on technology and design. In ﬁscal
2011, we reinforced our monozukuri capabilities
by initiating an e-learning program for the morethan 120,000 Hitachi engineers around the world,
reaffirming the Hitachi monozukuri spirit from theperspective of Hitachi engineering ethics.
A quality assurance training center at a manufacturing site in Hitachi City, Ibaraki Prefecture,
helps to increase production, inspection, andmaintenance skills. Other locations and manufacturing sites offer their own specialized technical courses.

Hitachi Group Sustainability Report 2012
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Quality Assurance Activities

MarkettrendsFeedback on each activity

To preserve our tradition of monozukuri craftsmanship from the customer’s perspective, we are
fully committed to Hitachi Group-wide quality
assurance—covering everything from product planning and development through to delivery andafter-sales service. We support quality assurance inparticular by activities that place priority on organizations and management, technology, and humancapital. In ﬁscal 2010, we launched the threeyear Hitachi Group QF (Quality First) Innovation
Movement to ensure product safety, compliancewith laws and regulations, human resource development, and improved quality. We have also been
concentrating on quality improvements outside
Japan, especially in China and the rest of Asia, sinceﬁscal 2007.

Quality Assurance Flow Chart

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Quality Assurance and Customer Satisfaction

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Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Strengthening Quality Assurance (QA)
Systems in China and throughout Asia
China and other Asian nations account for muchof our production outside Japan. We are therefore
reinforcing systems and training to improve quality
there. For example, we host an annual Conference
for QA Managers in China and Thailand to improve
quality awareness and to share information.
To develop QA skills in people worldwide by
improving their quality awareness and inspection
techniques, we provide quality reliability courses
in Beijing, Shanghai, and Guangzhou in China
and Bangkok in Thailand. In addition to the traditional Basic Reliability Course†1 and Intermediate
Reliability Course,†2 in ﬁscal 2011 we launched an
Advanced Reliability Course in China. In this course,managers hold group discussions on past accidents
to identify the fundamental causes behind them,including process-related, organizational, andpsychological factors. The aims are to boost problem identiﬁcation and problem-solving skills as wellas to develop accident prevention measures. The
same course will be held in Bangkok in ﬁscal 2012.
†1 Basic Reliability Course: Deepens understanding of such basic issues as
Hitachi’s monozukuri craftsmanship, quality management, and labor safety.
†2 Intermediate Reliability Course: Boosts understanding of more practicalissues in such areas as Hitachi monozukuri craftsmanship, ISO 9001
certification, defect elimination, design for reliability, and purchasing andvendor management.

Advanced Reliability Course

Handling Product Accidents
If a product malfunctions, the division responsible
acts swiftly to resolve the problem from the customer’s perspective, coordinating with other Hitachi
business units as needed. For an especially serious
accident, we quickly submit a status report to top
management and then take fast remedial action.
At the same time, we promptly comply with legal
requirements to report to government agencies.
Hitachi publishes the incident information throughour website and other channels.
When we decide that a product recall is necessary, we notify the public through newspaper
advertisements or our website, then repair or
replace these products. Our website also provides
detailed product safety information.

Response Flow in the Event of Product Malfunction
Accident
occursObtaining information
Quality Assurance Division

Customer liaison

Onsiteinvestigation
Product
investigation

Investigationof damage
scope

Decision concerning
serious product accident: Report: Sharing of information

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Serious product accident

Investigative committee on
serious product accidents
Investigation of
cause

Fire department, police department

Customers and mass retailer

Conﬁrming
accident status

Disposition and reporting: Flow of information

Consumer
Affairs
Agencyand othergovernment
bodiesTop management

Product
recall
Notiﬁcation,
Website,Newspapers

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Ensuring Hitachi Product Safety
In line with Hitachi’s Customer Satisfaction (CS)Management Guidelines, which take the avoidanceof accidents as their baseline, we have instituteda range of measures for eliminating consumer
appliance accidents. For example, since ﬁscal 1987
we have been testing worst-case scenarios, suchas deliberately creating a ﬁre inside a product toconﬁrm that the ﬁre will not spread outside it.
As of ﬁscal 2006, we have also been conducting
product safety risk assessments at the development
stage, creating “accidents” that might be caused bymisuse.
Of serious product accidents occurring in Japan,
there were as many as 2,297 ﬁres in electrical
products between May 2007 and March 2011.†1 By
product, room air conditioner accidents were themost common, but not a single one of these room
air conditiones was from Hitachi. We will continue
to make all our consumer appliances even saferin accord with our own voluntary action plan for
product safety.
†1 Ministry of Economy, Trade and Industry website

Customer Satisfaction
Using the Customer Satisfaction (CS) Management
Guidelines, one of the pillars of our business management, we continue to improve CS with the goalof “creating innovation through collaboration withcustomers.” We use CS surveys tailored to each business operation. We also analyze customer opinions
submitted to the Hitachi Customer Answer Center,reﬂecting the information learned from our productdevelopment and business operations.
We regularly host the Hitachi Group Service
Business Liaison Council meetings, chaired by thepresident, whose other members are presidents anddepartment officers from across Hitachi companies.
Participants at these gatherings share information
to reinforce after-sales service for products and systems, including repairs and maintenance, and usethat information to improve service quality and toensure appropriate service costs. At the time of theGreat East Japan Earthquake, cooperation among
many departments enabled the smooth delivery

085Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

of emergency vehicles and emergency supplies toaffected areas.
Customer Satisfaction Management Guidelines∙ Our customers determine the value of products andservices∙ Information from our customers is the source ofimprovement∙ Offer prices and quality that are competitive∙ Respond rapidly to keep our promises to ourcustomers∙ Adopt systems that prevent accidents and minimize
their impact
Formulated in 1994

Website Customer Support
Our website provides comprehensive customer support. It enables us to process customer inquiries,
opinions, requests, and complaints—in collaboration with the customer support offices of HitachiGroup companies—to improve our business operations as well as products and services. We also use
educational and other programs to speed up andimprove our response to these inquiries.
One of our initiatives is to hold the Web Inquiry
Responsiveness Improvement Course, something
we have done since ﬁscal 2009. To date, 253 HitachiGroup employees have taken this course, whichfeatures case studies based on responses to inquiries. Going forward, we will collaborate with Group
companies to respond more quickly and effectively
to customer inquiries, using this website as animportant point of contact.
Electronic and Electric Equipment
The Electronic & Electric Equipment Customer
Satisfaction Division has enabled the expansion of
Hitachi business from electronic and electric equipment to the environment business by drawing up avision for environment value creation, actively promoting various service areas, including business.
The Hitachi Contact Center for Customer
Support and website handle customer inquiries andcomplaints about LCD TVs, washing machines, andother appliances. The center receives about 600,000
phone calls and e-mails a year. We have undertaken
the following initiatives to better respond to

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105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

inquiries and to reﬂect customer feedback in ourmonozukuri craftsmanship:· Third-party assessments of customer support
center employees· Design, quality assurance, and staff, listening
to the “voice of the customer” and studying thesolution· Improved connectivity by ﬂexible management for
operators· Creating a database of direct customer feedback,including consultations, questions and complaints· Enhancing our website FAQs
We also conduct semi-annual customer service
evaluation surveys at 100 service centers around
Japan. Based on the survey ﬁndings, we improve
service by upgrading employee education, especially through CS training courses and CS improvement months.
With the expansion of Hitachi’s markets outside
Japan, sales offices have been opened in sevencountries in Asia and the Middle and Near East, asof ﬁscal 2011. We are also working to unify management of our operations outside Japan.

Customer Contact Figures without Repair Request

Results of Evaluation Survey for Customer Repair Service(Cases permonth)

60,00050,000Information and Telecommunication Systems
Management and Maintenance
As an IT company supporting social infrastructure and public institutions, our Information andTelecommunication Systems Management andMaintenance Division supplies solutions for customers’ management issues and infrastructure development, seeking to create new value that will bringour customers satisfaction and excitement.
To position Hitachi for greater customer satisfaction, the division has launched the following initiatives within the company:· Determining key performance indicators to
improve Hitachi products and services· Holding regular top-level discussion and sharing
information among the various business divisions

(%)

(％)

100
84.0

78.5

84.8

100

95.5

75
51,30049,00017,30040,00016,85090

45,60750

14,37631,70020,00070

034,45031,2310

10,000
0

2009

2010

White goods (appliances)and other products

2011

86.1

80

25

30,000

2009

2010

(FY)

Brown goods(electronic equipment)

Voice of the Customer Flow Chart
Repair request

Customers

RepairInquiry

Response: Response activities

RepairContact
CenterCustomer
SupportContact
Center(without repair): Flow of information

97.1

Each business group

Information on repair service

Quality assurance department
Feedback on improvements
Filed in database ofcustomers comments& questions

Design department
Feedback
Manufacturing department: Sharing of information

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Environmental Report· Improving customer surveys to ensure the effective
collection of and response to “customer voices”· Enhancing or adjusting customer satisfaction
incentive programs
The Regional Office CS Improvement Committee
meets every month to share information on thesituation out in the ﬁeld. Company-wide issues
are debated by all regional office presidents, while
ﬁnal decisions on issues requiring managementlevel assessments are made by the Senior Executive
Committee.
To ensure that customers receive outstanding
service, we supply one-stop service and use “customer voice” cards to ensure effective information
gathering and analysis. To boost the skills of systems maintenance and repair staff, we introduced
Practical Basic Action (a basic operation license
scheme), and we also hold service skill competitions
to boost proposal skills.
Our sustained commitment to these initiatives
led Hitachi Electronics Services Co., Ltd. (Hitachi
Systems since October 2011) to receive theCustomer Satisfaction No. 1 rating in the systems
operation services division of Nikkei Computer’s
Customer Satisfaction Survey in ﬁscal 2011.
Looking ahead, in addition to building a disaster-resistant, next-generation IT infrastructure, we
also plan to develop a more global system, deploy-

Hitachi Systems Performance Data

†1

Service level
AHT†2

FY 2009

FY 2010

FY 2011

92.7%

93.4%

93.1%

9 minutes
43 seconds

9 minutes
17 seconds

8 minutes
57 seconds†1 Rate of calls picked up within 10 seconds.
†2 Average Handle Time (processing time between receiving a call and registering data)

085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

ing support services for customers expanding theiroperations outside Japan, particularly in China andseven other Asian countries.
Management for Elevators and Escalators andBuilding Facilities
Hitachi provides safe, comfortable, convenientelevators and escalators and maintenance services
geared to our customers’ diverse needs. We alsooffer high value-added services for integrated
building management, including security andenergy saving.
For building facilities management, in response
to customers’ needs to improve the efficiency of
their management operation, we provide systems
that support customers’ businesses. For example,
we developed BIVALE, an integrated building facility management system that uniﬁes, using theInternet, the management of energy, security andbuilding facilities at multiple buildings.
Our maintenance services subsidiary, Hitachi
Building Systems Co., Ltd., has 350 service sitesaround Japan to swiftly respond to customers’
needs. State-of-the-art remote building monitoringand diagnostic systems observe and analyze elevators, escalators, and building facilities—24/7—for
preventive maintenance. Hitachi Building Systems
also created the HBS Mindbook to educate all
employees to think and act from the customer’s
perspective.
For risk management, learning from the lessonsof the 1995 Great Hanshin Earthquake, we created a wide-area disaster response manual in ﬁscal
1996. As of ﬁscal 2006, we have also instituted
annual wide-area disaster response training, making improvements based on the lessons that arise.
This training paid off during the Great East Japan
Earthquake in March 2011, enabling us to movequickly to establish a disaster response headquarters and send people to assist in the disaster areas.

Universal Design
We promote Universal Design (UD) by improving thequality and ease of use, accessibility, and life cyclesof our products. Quality of use means focusing on
the traits that make people feel that the product isService skills competitions

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Environmental Reporteasy and enjoyable to use. Accessibility refers to therange of people who can use a product or service.
Life cycle covers all the stages of the value chain
from product choice through to disposal.
In keeping with the UD philosophy, we draw
on basic research into consumer behavior andtheir characteristics to formulate UD guidelines
and reﬂect these in product development, ensuring the involvement of customers and experts
at every stage. The information obtained during
product development goes into a database thatour businesses share, and we distribute some ofthis information externally to promote open source
standardization and education.
Digital and Home Appliances
We deﬁne people as customers as soon as a product interests them, so it is essential to consider quality in everything from pre-sales to disposal with aneye on Universal Design. Key attributes are usability,
features, harmony with the environment, safety,
and maintenance. Our intention is to tailor products
to people’s needs and lifestyles so that they become
attached to them.
Our UD focus extends beyond products toinclude product manuals. For example, we areworking with the NPO Kanagawa Information,
Employment and Welfare Network for the Visually
Impaired to make our manuals available as text
ﬁles. The entire manual, including photographs,
diagrams and tables, is converted into a text ﬁlethat can be played aloud using text-to-speech software. The text ﬁle is then placed on the Web so thatthe visually impaired can use our products safely
and easily. Text ﬁles are created based on feedback
from visually impaired people who have actuallyoperated and veriﬁed products while listening to
the instructions on the text ﬁles. To spread thisinitiative more widely, we are using external groups
as a way to reach beyond the Hitachi Group and are
calling on other companies for their cooperation.
We have also launched a range of measures toimprove the accessibility of increasingly complex
consumer electronics appliances for the elderly
and disabled. DVDs providing clear explanations
on product use are included with products, whilesome products are equipped with a “talking”

085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

button that instructs, indicates status, and helps
resolve problems.

“Talking” button on a drum washer-dryer

Public Equipment and Systems
Public equipment and systems are used by a large
and unspeciﬁed number of people either individually or at the same time in public spaces such as
public buildings, stations, railways, and hospitals.
Because of the public nature of the spaces where
they are used, design must also address not only
ease of use but also security, privacy, and safety.
A wide range of end-users need to be considered,from children through to experts such as doctors
and technicians.
For example, our multi-slice CT system†1
responds to the needs of doctors and technicians
as well as patients. A broad table that slides fromside to side reduces the physical burden on bothpatients and medical staff, while a large-diameter
X-ray tube means that a variety of physiques can be
examined with ease.

Multi-slice CT system†1 Multi-slice CT system: A computerized tomography (CT) system that
configures multiple X-ray images to create a volumetric (3D) image.

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Message

105

Quality Assurance and Customer Satisfaction

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Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities†1 Web Content Accessibility Guidelines (WCAG) 2.0: Guidelines created by
the World Wide Web Consortium (W3C) that form the basis of the JIS standard
on information communications and web content. Currently under deliberation
at the International Organization for Standardization (ISO) for adoption as an
ISO standard.

Multi-slice CT system table that slides from side to side

UD for Web and Information Systems

These systems are universally vital for gathering information and communicating. Particularly
for people with disabilities who have difficulty
accessing information, it is essential that systems
are accessible, usable, and secure.
We are promoting UD in our web andinformation systems using the Web Content
Accessibility Guidelines (WCAG) 2.0,†1 an international standard for ensuring accessibility.
Examples of this include screens and layouts thatare easy to read, compatibility with screen readers that read content out loud, and a feature thatallows people to alter font size and color.
Our color-adjustable web screen development tool enables web page color schemes tobe customized for people who have trouble differentiating colors, including fonts, backgrounds,
frames, and all the other elements of a web
page. This tool makes it easy for website developers to select appropriate colors, while end-users
can customize screen color schemes.

Color-adjustable web screen development tool

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Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Communication with Shareholders and Investors
To ensure that shareholders and investors
can make sound investment decisions, we
provide the information they need in a fair,transparent and appropriate way that enhancecommunication with them.

Policy on Information Disclosure
We communicate with shareholders and investors
guided by our disclosure policy. We disclose not
only information required by laws or regulations,but also information that promotes deeper
stakeholder understanding of our management
policies and business activities, including theirrelation to creating sustainable long-term value.

Web sites, and conducting other disclosure activities in an
appropriate, precise and timely manner.
4. Quiet Period
Hitachi stipulates a quiet period of a certain length prior toearnings announcements to prevent information leaks and tomaintain disclosure fairness. During this period, Hitachi refrainsfrom answering inquiries about business performance andrelated matters.
5. Forward-Looking Statements
For disclosures, Hitachi may make statements that constituteforward-looking statements that reﬂect management’s views
with respect to certain future events and ﬁnancial performanceat the time of disclosure and include any statement that does notdirectly relate to any historical or current fact. Such statements
are based on information available at the time of disclosure andare subject to various risks and uncertainties. Certain forwardlooking statements are based upon assumptions of future events
which may not prove to be accurate. Hitachi discloses the factorsthat could cause actual results to differ materially from thoseprojected or implied in forward-looking statements.

Disclosure Policy
1. Basic Policy
Hitachi’s Corporate Credo is to contribute to society throughthe development of superior, original technology and products.
With this in mind, Hitachi seeks to maintain and develop trust
relationships with all stakeholders, including shareholders
and other investors, customers, business partners, employees
and regional communities. We will fulﬁll our responsibility
to stakeholders by disclosing information in a fair and highly
transparent manner, and by conducting various communication
activities.
2. Information Disclosure Standards
Hitachi discloses information as appropriate in a fair and highly
transparent way, in compliance with the laws and regulations of
the stock exchanges on which the Company is listed.
Hitachi discloses not only information required by laws andregulations, but also management and ﬁnancial information thatis regarded as useful in deepening stakeholder understandingof Hitachi management policy and business activities. Hitachi
also discloses non-ﬁnancial information on the social andenvironmental impact of Hitachi Group activities. Hitachi’s
stance on disclosure recognizes that society regards the above
information as important.
3. Disclosure Methods
Hitachi uses appropriate means to disclose the information
required by laws and regulations of the stock exchanges on
which the Company is listed. The Company also posts thisinformation on Web sites immediately after it is disclosed.
Hitachi also discloses information not required by laws andregulations by distributing news releases, holding press
conferences and presentations, posting information on

Proactive IR Approach
Our range of investor relations (IR) activities include
business strategy meeting for institutional investors
and analysts, tours of plants and R&D facilities,
participation in brokerage-sponsored investor
meetings, and one-on-one meetings with investors
and analysts.
In ﬁscal 2011, we held quarterly ﬁnancial results
brieﬁngs, and corporate strategy meetings on
the progress of the 2012 Mid-Term Management
Plan. We hosted a Hitachi IR Day, where company
presidents and CEOs explained their businessstrategies under the 2012 Mid-Term Management
Plan. Feedback from institutional investors andanalysts was positive. Their comments included,“Hearing explanations from the heads of the various businesses enabled us to better understandthese, which I found useful for analysis” and “It wasa signiﬁcant event for dialogue between the capital
market and management.” We intend to hold thisevent regularly. We also conduct one-on-one meetings with institutional investors and analysts worldwide, holding more than 550 of these meetings
in ﬁscal 2011. Senior managers visit institutional

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investors in North America, Europe and Asia twice ayear to explain management policies and businessdirections. We are doing our best to share IR feedback in-house and reﬂect this in management andoperations.
We are committed to timely disclosure and wepost brieﬁngs and other materials on our IR website.
Part of this site was speciﬁcally designed for individual investors, providing information that cultivates a
deeper understanding of the Hitachi Group.
WEB Investor Relations
http://www.hitachi.com/IR-e/index.html

General Meeting of Shareholders

085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Disclosure Tools∙ Financial results∙ Annual and quarterly reports in accord with the Financial

Instruments and Exchange Law of Japan∙ Annual reports∙ Hitachi Group Corporate Sustainability Report

At the ordinary general meeting of shareholders, we offer audio-visual reports designed to give
shareholders a thorough understanding of oursituation. After the general meeting of shareholders, our website discloses management policy
explanations from the president for shareholders
and investors. We post notices of general meetingsof shareholders earlier than legally required to give
stakeholders more time to consider our proposals.

Hitachi as an SRI†1 and ESG†2
Investment
The Hitachi Group performed well in external assessments as a socially responsible and sustainability
investment committed to the principles of ESG.
Since ﬁscal 2009, DJSI World, a leading global sustainability investment index, has chosen
Hitachi, Ltd. as a component stock for three years
in a row. This benchmark assesses the sustainability of around 2,500 companies worldwide, based

The corporate strategy meeting on the progress ofthe 2012 Mid-Term Management Plan

Trends in Shareholder Composition[March 2008]

Financial institutions &securities ﬁrms

Individuals

Foreign investors

27.16

27.06

42.10

Other institutions
3.79
National & local governments
0.00
4.03
0.00

[March 2009]

30.60

30.24

35.13
3.41
0.00

[March 2010]

29.49

31.61

35.49
2.26
0.00

[March 2011]

30.36

29.69

37.69
2.13
0.00

[March 2012]

33.04

27.03

37.80
(%)

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Social Report086

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Quality Assurance and Customer Satisfaction

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Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Results of SRI Assessments in Fiscal 2011
Institution

Index

Companies selected

1

DJSI* World

Hitachi, Ltd.

DJSI Asia Pacific Index

Hitachi, Ltd. / Hitachi Chemical Co., Ltd.

EIRISFTSE4Good Global Index*2

Hitachi Chemical Co., Ltd. / Hitachi Capital Corp. / Hitachi High-Technologies Corp. / Hitachi
Construction Machinery Co., Ltd. / Hitachi Koki Co., Ltd.

Morningstar

SRI Index

Hitachi, Ltd. / Hitachi Cable, Ltd. / Hitachi Chemical Co., Ltd. / Hitachi Construction Machinery Co.,
Ltd. / Hitachi High-Technologies Corp.

SAM*1 DJSI (Dow Jones Sustainability Index): A global sustainability investment index that was developed by Dow Jones & Company (U.S.A.) and Sustainable Asset Management(SAM) Group (Switzerland). The Asia Paciﬁc Index—covering Japan, Asia, and Australia—was launched in 2009.
*2 FTSE4Good Global Index: An index developed in the UK by Ethical Investment Research Services (EIRS), which evaluates corporations, apart from speciﬁc industries, based on
their environmental, social, and human rights performance.

on economic, environmental, and social dimensions to select the top 10 percent of companies ineach industry. Our environmental initiatives again
scored the highest among all the companies. Global
sharing of the Hitachi Group Codes of Conduct (17languages) was rated under economic dimensions,while our consideration of medium-term priorities
for strategic social contributions rated highly undersocial dimensions.
We also received the Silver Class (in the Electronic Equipment Sector) for the third consecutive
year in the Sustainability Yearbook 2012 publishedin January 2012 by SAM†3 and KPMG.
†1 SRI: Socially responsible investment, where investment funds evaluate companies and select stocks from a CSR perspective.
†2 ESG: Environmental, social and corporate governance (ESG) have become
the main factors for investors to measure sustainability of an investment in acompany.
†3 SAM: Sustainable Asset Management. A Swiss sustainability investment
research and asset management company.

Fundamental Policy against Takeovers
The Group invests a great deal of business resourcesin fundamental research and in the development ofmarket-leading products and businesses that willbear fruit in the future, and realizing the beneﬁts
from these management policies requires that they
be continued for a period of time. For this reason,
the Company keeps its shareholders and investors
well informed of not just the business results foreach period but also of the Company’s business
policies for creating value in the future.
The Company does not deny the signiﬁcanceof the vitalization of business activities and performance that can be brought about through achange in management control, but recognizes thenecessity of determining the impact on company
value and the interests of all shareholders of thebuying activities and buyout proposals of parties
attempting to acquire a large share of stock of theCompany or a Group company by duly examining
the business description, future business plans, past
investment activities, and other necessary aspectsof such a party.
There is no party that is currently attempting toacquire a large share of the Company’s stock nor isthere a speciﬁc threat, neither does the Company
intend to implement speciﬁed anti-takeovermeasures in advance of the appearance of such aparty, but the Company does understand that it is
one of the natural duties expected by shareholders and investors to continuously monitor the stateof trading of the Company’s stock and then to
immediately take what the Company deems to be
the best action when a party attempts to purchasea large share of the Company’s stock. In particular, together with outside experts, the Company
will evaluate the buyout proposal of the party
and hold negotiations with the buyer, and if theCompany deems that the buyout will not maintainthe Company’s value and is not in the best interestof the shareholders, then the Company will quickly
determine the necessity, content, etc., of speciﬁccountermeasures and prepare to implement them.
The same response will also be taken in the event a
party attempts to acquire a large percentage of theshares of a Group company.

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Quality Assurance and Customer Satisfaction

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Respect for Human Rights

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Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Employee Health and Safety
Based on the Hitachi Group’s Policy, whichmakes the health and safety of employees a
key priority, Group employees join together tocreate safe, secure work environments that are
accident free.

Health and Safety Programs
Based on top management policies, each company
and business unit maintains a health and safety program matching its speciﬁc work health and safety
management system. People in every workplacecollaborate on programs that improve health andsafety management standards. We reinforce basic
activities, such as workplace patrols and job-based
education, based on the nature of the businesssite. We also work to reduce the risk of accidents bymore thoroughly assessing risk to steadily reduce
accident numbers.
Trends in Occupational Accident Rates
2.00

1.83

1.75

1.75
1.62

1.61

0.99

0.98

1.62

1.50
1.25
1.09

1.12

1.00

1.05

Measures for Improving Health and
SafetyDespite our health and safety programs, we have
unfortunately experienced occupational accidents
that affect employees of Hitachi, Ltd., Hitachi Group
companies, and their affiliates. The entire Grouptakes seriously the fact that such accidents wereallowed to happen, and we have implemented
measures that further improve the health andsafety management standards.
Health and Safety Presentation and Conference
Once a year, we hold the Hitachi Group Health and
Safety Research Presentation Meeting for Hitachi
health and safety officers. The 55th gathering, in
December 2011, attracted 250 participants. They
shared their newfound knowledge from case studies and heard special lectures from outside experts
on ideas that could beneﬁt health and safety
activities at every business site. Around 100 industrial healthcare workers within the Hitachi Group,
such as industrial physicians and nurses, participated in the 11th Hitachi Group Industrial HealthConference in January 2012. After presentations
on specialized research, the participants discussed
qualitative improvements in industrial health programs at business sites and talked about training
for industrial healthcare workers.

0.75
0.50
0.25
0

0.39
0.26
0.05
2007

0.49

0.48

0.46

0.22

0.25

0.23

0.17

0.06

0.07

0.10

2009

2010

2011
(FY)

0.12
2008

0.44

All industries*1
Manufacturing industries
Electrical machinery sector
Hitachi Group*2
Hitachi, Ltd.
1. For 2011, only figures for Hitachi, Ltd. and the Hitachi Group wereavailable
2. 90 major Hitachi Group companies in Japan excluding Hitachi,Ltd.

55th Hitachi Group Health and Safety Research Presentation Meeting

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Employee Health and Safety

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Diversity Management

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Public Policy Initiatives

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Social Contribution Activities

Hitachi Group Key Safety Management
Designation System
In ﬁscal 2011, we introduced a system to ﬁnd
Hitachi Group companies and business sites thathave experienced serious occupational accidents toencourage them to improve safety. These companies and business sites then take on both management-driven and bottom-up initiatives under theleadership of top executives. As well as extensively
investigating the cause of serious accidents, theworkplaces that had these accidents have now reorganized their companywide safety management
systems and have formulated more safety-oriented
programs.

the rhythms of life for employees returning to work
after mental illnesses, and has proven effective inpreventing relapses.

Launching the Hitachi Group Health and Safety
Portal System
We constructed the Hitachi Group Health and
Safety Portal System to ensure that every HitachiGroup company can track the progress of Hitachi
health and safety management initiatives. The
system also promotes the sharing of informationon accidents within Hitachi, including causes andresponses from a register on all occupational accidents, the goal being to prevent similar mishaps.

Visualizing life rhythms as part of the tapestry of life

Date
12:00 p.m. 6:00 a.m. 12:00 a.m. 6:00 p.m. 12:00 p.m.
Orderly lifestyle

Less

Sleep

Activity Level

Life Microscope: A Support Tool for Returning toWork after a Mental Illness
Life Microscope is the fruit of collaboration
between the Hitachi Group’s internal researchlaboratories and industrial doctors. This wristband
lifestyle monitor incorporates a three-dimensional
acceleration sensor and power supply to record awearer’s real-time movements and temperatures.
This device records detailed activity levels, sleeping
times, and other data. Used within a fully secure,cloud-based environment, this tool helps improve

Main lifestyle activities bycolor category

Resting or watching TV

More

Irregular lifestyle

Recognition for an Outstanding Occupational
Safety Record
Based in Totsuka Ward, Yokohama, theTelecommunications and Network Systems Divisionof Hitachi, Ltd. extended their industry record ofwork time accident-free hours to 145,851,129 as ofMarch 31, 2012, remaining number one in Japan.
In line with the Hitachi Group Health and Safety
Award Program, we award Hitachi Group companies that either extend accident-free records or win
external prizes for health and safety. In ﬁscal 2011,
we recognized Hitachi-kucho SE, Ltd. for continuing
to improve their record after achieving a Class 5
zero accident rate, acknowledged by the Ministry of
Health, Labour and Welfare.

Hitachi Group Health and Safety Award ceremony

Wristband lifestyle monitor

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Light work or working
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Public Policy Initiatives

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Social Contribution Activities

Responses to Natural Disasters
We responded to the Great East Japan Earthquake
in March 2011 by offering support, mainly mental
healthcare, to Hitachi Group employees and theirfamilies. In addition, we· provided stress management courses in disasterstricken areas.
· launched a consultation service in collaboration
with a corporate health insurance organization.
· sent industrial healthcare workers to disaster area
worksites to set up industrial medical systems.
Several Hitachi Group plants were flooded in
Thailand in 2011. We sent industrial physicians tothese business sites in November before restoration began. These doctors fostered the healthand safety of employees at these business sites bycreating health and safety guidelines, particularly
to prevent infectious diseases and to ensure safe
restoration work.

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Diversity Management

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Social Contribution Activities

Global Human Capital Development
Hitachi is globalizing operations, especially in
the Social Innovation Business. To keep pacewith the growing proportion of sales generated outside Japan and our strategy for the
global marketplace, we are developing globallyminded leaders and local management and cultivating new, globally focused human resource
management systems.

Global Human Capital Management
Strategy
Hitachi, Ltd. created the Global Human CapitalManagement Strategy to support the Group’s
worldwide expansion, establishing the Global
Human Capital Division on July 1, 2011 to drive thatstrategy. The new division establishes a common
framework for human capital (resource) management, while optimally matching human capital
Global Human Capital Management Strategy
Transforming the perspective from “Japan + overseas” toward
global human capital management
Accelerating globalization ofJapanese employees

Reinforcing locally led
management structures∙ Employment of global
personnel(from Fiscal 2012*1 )- 100 percent administrative and50 percent technical- Foreign nationals representing
10 percent of all employees∙ Adding overseas experiencefor young employees(Fiscal 2011 to 2012)- Sending 2,000 employees
outside Japan for over two
years∙ Fully revised management
training(from fiscal 2011)- Global and leadership focuses

Borderless sharing of managers∙ Personnel cultivation,
employment and conditions- Global talent management- Total rewards*2- Global Human Capital Database- Global Grading System∙ Personnel management
optimized according toregional and businesscharacteristics(Fiscal 2011 to 2012)- Business partnering- Collaboration as business line
partners- Group collaboration in priority
regions

Cultivating local personnel∙ Developing programs for
local personnel- Discover Hitachi program- Global training system forprimary and other managers*1 New graduates joining in April 2012
*2 Comprehensive remuneration that combines growth, study opportunities, andother non-ﬁnancial factors, with salaries and other ﬁnancial compensation

management programs with the speciﬁc requirements of regions, businesses, and market needs incollaboration with other business divisions. We consider Japan as important a region as the Americas
or Europe. We intend to further develop global
human capital management framework, systems,
and knowhow, and implement them globally.
At Hitachi, we project sales outside Japan foreach business in our long-term business plans. For
greater accuracy, we developed a template thatsimulates adjusting work categories, timing, andthe number of employees, managers and leaders
to ensure that there are enough people to reachthese projections. The template calculates the gaps
between available and required personnel. We willcontinue to plan and deploy human resource programs to eliminate these gaps.

Accelerating the Globalization ofJapanese Employees
In the years ahead, we will need many Japanesenationals to cultivate markets outside Japan. We areintensifying these efforts in ﬁscal 2011 and 2012.
We are also accelerating programs centeredon (1) recruiting people for global operations, (2)providing more young employees with experience
outside Japan, and (3) comprehensively revising ourmanagement development program.
Recruiting for Global Operations
To secure the right people for business globalization, we are opening up employment opportunities
and strengthening management diversity. From ﬁscal 2012, we categorized all administrative employees and half of all technical employees graduatingfrom universities and technical colleges as global
business personnel. This categorization covers 450of the 750 recruits from universities and technicalcolleges that joined us in April 2012. Our priority for
employing global business personnel is to attract
people who are eager to build on their foreign language skills and who want the challenge of work-

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Environmental Reporting in different cultures as well as social settings
and work environments.
We are committed to employing the right talent,
regardless of nationality, who have studied abroad.
In ﬁscal 2012, we recruited around 10 Japanese andnon-Japanese graduates from overseas universities.
There were around 40 non-Japanese among all the
recruits from universities and technical colleges inﬁscal 2012.
Trend in the Number of Non-Japanese Employees(People)
300

218

200

230

239

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Communication with Shareholders and Investors

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Employee Health and Safety

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Public Policy Initiatives

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Social Contribution Activities

ties include the Hitachi Institute of Technology,
the Hitachi Institute of MONOZUKURI Skills
and Engineering, and the Hitachi Institute ofManagement Development, which maintains manyof the training programs. These programs covermanagement development, training for engineers,
production worker training, training for globalization, sales education, and job-based training. In ﬁscal 2012, we completely revised some programs at
the Hitachi Institute of Management Development,
shifting the focus to successful global leadership.
We also created job-based and selection training programs to cultivate leaders at all levels. In
2011, about 2,300 employees participated in these
programs.

200
179

100

0

2007

2008

2009

2010

2011
(FY)
Note: Number of non-Japanese staff within Hitachi, Ltd.

Providing More Young Employees with Overseas
Experience
We maintain broad programs to systematically cultivate and secure people who can succeed in global
business. To create a pool of people who can understand and adapt to local cultures and lifestyles, we
decided to have some of our younger employees
live outside Japan. We intend to dispatch 2,000
young employees in ﬁscal 2011 and 2012, allowing them to take part in more than 100 programs,
including apprenticeships, local ﬁeld studies, andlanguage studies. We sent 1,064 employees outside
Japan in ﬁscal 2011 (more than 10 times the number a year earlier) and plan to dispatch about 1,000
in ﬁscal 2012.
Comprehensive Revision of Management
Development Program
We help employees to develop their skills by offering on-the-job training and supplementary training programs. The Hitachi Group’s training facili-Management Development Program

Developing Local Personnel
With our operations taking on an increasingly
global focus, it is essential that all managers working on the global frontlines understand our history,
founding spirit, company operations, common
values, corporate philosophy, and basic management skills. Since ﬁscal 2006, we have provided the
Global Fundamental Course for primary HitachiGroup managers to instill an understanding of ourcore values among all our people. These core values
include harmony, sincerity, and the pioneering
spirit that underpins Hitachi. The course also covers
the Corporate Credo and guidelines for conduct.
In 2011, 139 managers took this course. We willcontinue offering this course, while broadening theregions and personnel covered and improving training methods.

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Supply Chain Management

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Employee Health and Safety

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Diversity Management

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Global Human Capital Development

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Public Policy Initiatives

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Social Contribution Activities

Reinforcing Local Management
We are reinforcing local management throughprograms that share executives throughout theentire Group.
For example, we constructed the Global Human
Capital Database to cover all Hitachi Group employees, excluding factory workers outside Japan. This
database enables us to visualize our Group humancapital, in and outside Japan, and to assess such
macroeconomics as allocating human resources. We
will encourage the inclusion of information fromthis database into Group company human resource
management. Also, we are building a global grading system that will apply to all managers in the
Hitachi Group, in and outside Japan. This new system will be a common platform for job evaluations
throughout the entire Group.
In-house and Group companies are collaborating to optimize human capital management inkeeping with regional and business requirements.
By the end of 2011, we completed surveys in 11 key
regions outside Japan (excluding China). And wewill draw on the results of these surveys to develop
managers who are familiar with each region, helping to grow our business.

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Employee Health and Safety

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Diversity Management

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Global Human Capital Development

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Public Policy Initiatives

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Social Contribution Activities

Social Contribution Activities
Hitachi’s wide-ranging social contribution programs are tailored to local needs, but help toresolve the challenges facing a global society.
Particularly in emerging countries, we are tackling poverty, hunger, disparities in educationand medical care, and environmental issues.

Philosophy and Policy
We approach social contributions using our Social
Contribution Philosophy and Policy, keeping in
mind our Group Vision of “tackling the basic issues
faced by global society.” Committed to resolving
basic social issues at both the global and local
levels, we have selected medium-term priorities foreducation, the environment, and social welfare forﬁscal 2012 onward, pursuing a range of programsin and outside Japan.
Our social contribution activities and the support we provide for volunteer work by employees
help us to build trust with communities as a good

corporate citizen. They also inspire the expressionof individuality, more ﬂexible thinking, and greatercommitment in those employees who volunteer.
These in turn become a source of strength driving
our Social Infrastructure Business, enabling us tocontribute to the development of both local communities and sustainable business.
In ﬁscal 2011, Hitachi Ltd., 939 Hitachi Group
companies, and the ﬁve foundations in Japan contributed around 3.5 billion yen as social contributions.
Note: Data on Hitachi Group
companies and five foundationsin JapanSocial welfare14%

FY 2011 Breakdown of Funding forSocial Contribution Activities

Others 39%(including the Great
East Japan Earthquakeat 25%)

Total expenditure
3.471 billion yen

The environment 6%

Social Contribution Philosophy and Policy
Philosophy
The Hitachi Group strives to demonstrate good corporate citizenshipin response to social needs and expectations, while endeavoring toenrich the quality of life and realize a better society.
PolicyThe Hitachi Group promotes various social contribution activities tobuild a vibrant society based on fostering leadership to implement
reformation for the next era. This is achieved by making optimaluse of our knowledge and information technology in three specificareas: education, the environment, and social welfare.
Adopted February 2002

Mid-Term Priorities for Social Contribution
Activities
1. Education: Community development activities to support thedevelopment of the next generation
2. Environment: Promotion of global environmental sustainability
based on Hitachi’s Environmental Vision
3. Social Welfare: Empower economically and socially vulnerable
peopleCulture and the arts
11%

WEB Hitachi: Global Community Relations and Activities
http://www.hitachi.com/csr/sc/index.html

Education
Monozukuri, the heart of our business manufacturing approach, is founded on sound humanresources. We instill a keen sense of social awareness in our engineers through their communication
with society and we nurture their ambition andtechnical capabilities to overcome new challenges
and achieve their dreams. We do this to ensure thatthe technical and other expertise that our people
have accumulated is useful for the development of
the next generation of engineers.
Providing Educational Support in Emerging
Countries
Emerging markets are vital to Hitachi’s business,while these same markets urgently need to create
outstanding engineers and technicians to drive
national development. We provide support for the

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30%

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Environmental Reportdevelopment of young engineers and technicians inthese countries.
The Hitachi Scholarship Foundation operates ascholarship program to provide ﬁnancial support
to outstanding faculty members in the naturalsciences from Southeast Asian universities. In ﬁscal
2011, ﬁve faculty members were invited to Japan
from three countries to attend an orientationin September. They were briefed on the Hitachi
Scholarship Foundation’s philosophy, the screening
process, the scholarship program, and Hitachi, Ltd.
They also visited Hitachi, Ltd.’s Hitachi Works andHitachi High-Technologies’ Naka Works, deepening
their understanding of cutting-edge manufacturing
and the current state of R&D.

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Hitachi Plant Technologies’s original curriculum. As
of March 2012, 61 students have completed training, and those who met technical standards wereawarded a certiﬁcate of completion.

Students at the Bokeo Welding Training CenterIn front of the original building at Hitachi Works

To support the self-sufficiency of young people
in the Lao People’s Democratic Republic (Laos),
Hitachi Plant Technologies, Ltd. worked with the
Lao Ministry of Labor and Welfare to set up the
Bokeo Welding Training Center within the Sonpao
Welfare School in Bokeo Province in April 2009.
Hitachi Plant Technologies continues to support theoperation of this center.
Laos is an agricultural nation blessed with natural resources, but the country lags behind neighboring Southeast Asian countries in economic development, and ensuring youth employment has becomea social issue. To help young people acquire skills,
Hitachi Plant Technologies donated welding equipment and provided other forms of support for
opening the school.
Since the school opened, an instructor wassent from Japan to provide instruction based on

Supporting Science Education
We provide children with many opportunities tolearn to be inspired about science, technology,
engineering and math. Our goal is to overcome anincreasing disinterest in science, math, and technology among the young generation and stimulate
their interest and desire to learn.
The Hitachi High-Technologies (HHT) Group
uses electron microscopes to provide educational
support in countries around the world. In Europe,
HHT has been supporting the nanoTruck, a project
launched in 2010 by Germany’s Federal Ministry of
Education and Research. A specially modiﬁed truck
containing scientiﬁc multimedia presentations andexperimental equipment travels the country introducing nanotechnology to the general public.
Also, a public lecture was held in Tokyo in
September as the Japanese version of the popular
Royal Institution Christmas Lectures that have taken place in the United Kingdom for more than 180
years; children using electron microscopes experience the wonders of science. In the United States,
HHT and the National Institute of Standards andTechnology (NIST) held workshops for local juniorand senior high school science teachers and provided suggestions on using electron microscopes inthe school science curriculum. We will continue ourcommitment to science education, including ourmembership in Change the Equation.†1

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Environmental Report

Royal Institution Lecture in Tokyo

In November 2011, Hitachi Metals, Hitachi, Ltd.,and Hitachi Plant Technologies held the Hitachi
Science Seminar series at Tokyo’s Science Museum
entitled The Fascinating World of Magnets. Many
children experienced the mysteries of magnets.
This program was launched so that Hitachi Group
companies could communicate the skills and knowhow developed through the Group’s monozukuri
experience in an enjoyable way to encourage children’s interest in science. We will continue holding
these fun and educational hands-on seminars onthemes from the knowledge areas of various Group
companies.
†1 Change the Equation: An NPO set up following a call from the Obama
Administration to improve students’ abilities in science, technology,
engineering and math.

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program are Asia’s sustainable development
and economic integration; other themes
include the environment and changes inenergy policy accompanying economic development, and Asia’s role in global markets.
In ﬁscal 2011, a program was held in
Hanoi, Vietnam, called “The New Stage for
Asia—An Asian Perspective on Managing
Sustainable Development and Economic
Integration.” A select group of 28 university
students from Japan and six other Asian nations heard presentations and a panel discussion featuring the deputy prime ministerof Vietnam, the governor of the Bangkok
Metropolitan Administration and other key
ﬁgures. The students participated in group
discussions on topics including sustainableenergy options and moving toward an economically integrated community. Throughthis event, we intend to deepen students’
understanding of other cultures and to foster friendships among students from othercountries, as well as boost their awarenessof common Asian social issues. We help
these young leaders to build the global skills
they will need in the future.
One student noted that while already interested in national and local development,
participating in the program with students
from seven Asian countries boosted thatinterest further, inspiring her to continue
studies at a postgraduate level. She was also
convinced that the wonderful friendships
she had made through the program would
continue into the future.

Children experiencing the world of magnets

TOPICS
Hitachi Young Leaders Initiative
Hitachi, Ltd. and Hitachi Asia Ltd. havebeen operating the Hitachi Young Leaders
Initiative since 1996 to identify and nurturepotential Asian leaders. Major themes in thisHitachi Group Sustainability Report 2012
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Some Other Hitachi Group Education Initiatives
Company

Initiative

Overview

Hitachi Group

Universal Design (UD) classroom program
expanded outside JapanFor this program, where Hitachi Group employees teach children the importance of UD,
in the United States 31 classroom visits have been made since fiscal 2009 with 688
children participating; in the UK, since the program launch in fiscal 2011, 30 children haveparticipated. Preparations are underway to introduce this program in Malaysia.

Hitachi Solutions, Ltd.

Information Ethics Education

This program teaches children personal information ethics and other information society
issues from the perspective of an IT company. In September 2011, a two-day program washeld at the Tokai Junior High School in Shinagawa Ward, Tokyo. On the first day, students
learned about the convenience of IT as a tool for communicating information. On the secondday, a workshop was held using a simulated Internet bulletin board so that students could
put up their own messages, teaching them how the convenience of IT goes hand in handwith some danger and risk.

Hitachi America, Ltd.

Non-Proﬁt Forum

Since fiscal 2009, Hitachi America, Ltd. has provided knowhow and resources in cosponsoring this event with the Wilson Center at Pace University, NY. The free forum
promotes exchanges among local non-profit organizations (NPOs) and encourages
their activities. Called Inspired Education: Learning, Teaching and Technology, the February
2012 forum welcomed panelists working in education, who held a lively discussion ontechnologies for education, including interactive whiteboards and web databases. The
audience of around 100 included representatives from many local NPOs, students, andeducators.

UD classroom visits in the UK(Hitachi Europe, Ltd.)

Non-Proﬁt Forum(Hitachi America, Ltd.)

Information ethics education(Hitachi Solutions, Ltd.)The Environment
Hitachi’s environmental management mitigatesincreasingly serious global environmental threats
and helps to achieve a more sustainable society. In
our social contribution activities too, Group employees and members of their families are involved inplanting trees and other environmental protection projects that also foster their environmental consciousness in keeping with the two main
Environmental Vision priorities: preventing global
warming and preserving ecosystems.
Environmental Science Cafés
The Hitachi Environment Foundation has been
holding “Science Café” events since 2011. Participants deepen their understanding of environmental issues over a cup of coffee with experts andresearchers who look at environmental issues froma scientiﬁc perspective. At the ﬁrst ﬁve lectures,
held between February and October, Professor
Ryuji Tada, a paleoenvironmental scientist from the
Graduate School of Science, The University of Tokyo,
spoke on the science of climate change, followed by

Discussion with Professor Tada from The University of Tokyo

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Global Human Capital Development

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Public Policy Initiatives

121

Social Contribution Activities

Q&A sessions and exchanges of views with a totalof 190 people. At the sixth lecture, held in November at the National Museum of Nature and Science,
Professor Gaku Kimura, a leading expert in structural geology, also from the Graduate School of Science, The University of Tokyo, spoke on new earthquake science with an audience of 100 from several
generations. The speaker at the seventh session in
February 2012 was the Meteorological ResearchInstitute’s Dr. Hirotaka Kamahori, who addressed 40
people on extreme weather and climate change.
Green Curtain Project
The Hitachi Group has operated the Green Curtain
Project, growing vines, such as bitter gourds andloofahs, on the windows and walls of buildings
to reduce indoor temperatures. In ﬁscal 2011,
green curtains were grown at more than 300 locations, including factories, branch offices, and training centers, as well as at the homes of interested
employees, as part of the Hitachi Group Summer
Energy Conservation Campaign. To publicize thisproject, we held the Hitachi Group Green Curtain
Contest, presenting awards to groups (offices) andindividuals (employees and their families).

Green curtain at Hitachi Chemical Automotive Products (Thailand) Co.,Ltd.

Hitachi Group Sustainability Report 2012
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125

021 Management Report

049

Environmental Report085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Other Hitachi Group Environmental Protection Programs
Company

Initiative

Overview

Hitachi Construction Machinery(Shanghai) Co., Ltd.

Afforestation of the Horqin Desert

Since fiscal 2005, the Hitachi Construction Machinery (Shanghai) Forest Project has been
entrusted by G-Net, an environmental NGO, to restore vegetation in the Horqin Desert inInner Mongolia, China. In fiscal 2011, maintenance work continued, including fixing fences
and irrigating seedlings. As a result, around 80 percent of local villages are now able tosecure enough kindling and to gather enough food to feed four cattle through winter,showing steady progress in the transition to sustainable land use.

Hitachi Display Devices(Suzhou) Co., Ltd.

Support for afforestation

In May 2011, more than 700 employees sold some 1,370 items at a flea market organizedby the Suzhou Industrial Park Environmental Protection Office, donating CNY 1,420(approximately 17,000 yen) to the China Green Foundation. The money was used to plant
284 trees.

Hitachi Global Storage
Technologies Philippines
Corp.

Mangrove planting

In July 2011, the company joined a mangrove planting event held by the Laguna
Technopark CSR Group, made up of companies located within the technopark. About 6,500
mangrove seedlings were planted along the coast at Sariaya, Quezon, by 236 people from19 companies.

Horqin Desert afforestation (Hitachi Construction
Machinery (Shanghai) Co., Ltd.)

Flea market (Hitachi Display Devices (Suzhou)Co., Ltd.)Social Welfare
We also support social welfare projects toensure that everyone can enjoy the beneﬁts oftechnological progress, placing special emphasis
on promoting the education of the young, theindependence of people with disabilities, andhelping the elderly.
Buy and Help Society! Bazaars
Since ﬁscal 2010, the Hitachi Group has been planning and holding mini-events at which employees
can buy products from NPOs, such as international
cooperation organizations and welfare workshops, as a way of easily and pleasantly making asocial contribution. In September 2011, we asked
Nozomi-en and Yokohama City Council of Social
Welfare’s Heart Made to bring baked goods andother items to the Hitachi, Ltd.’s headquarters
conference room. More than 300 employees went
to the bazaar, spending around 140,000 yen, which

went to help the two organizations. We plan toexpand this program to other regions.

Buy and Help Society! bazaar

Hitachi Group Sustainability Report 2012
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Mangrove planting (Hitachi Global Storage
Technologies Philippines Corp.)126

021 Management Report

049

Environmental Report085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Other Hitachi Group Social Welfare Initiatives
Company

Initiative

Overview

Hitachi Group

Table for Two

Six Hitachi Group companies participate in this program, which is designed to eliminate thefood imbalance between developed and developing countries. When an employee orders
a healthy meal or a smaller than usual helping of rice, 20 yen per meal is donated throughthe Table for Two Program for school lunches provided to children in developing countries.
In fiscal 2011, 4 million yen was donated. In September, Masahisa Kogure, Director of the
NPO Table for Two International, was invited to give a Social Contribution Evening Lectureattended by around 50 people.

Hitachi Systems, Ltd.

Sponsoring a soccer competition for intellectuallyhandicapped children and adults

Hitachi Systems supports the NPO Traços, which operates a soccer club for intellectuallyhandicapped children and adults. Fifteen employees volunteered at the Nikko Niko Fiesta, anational soccer competition for the intellectually handicapped, that was held in Edogawa
Ward in Tokyo in October.

Hitachi Elevator (China)(HELC)

Elevator and escalator safety education

HELC has been providing education on elevators and escalators around China since
fiscal 2008. Specially designed cartoon characters and a simulated elevator are used tohelp children enjoy this learning experience. In fiscal 2011, HELC went to Guangzhou’s
Guangzhong Road Primary School to teach around 600 children about escalators andelevators.

Masahisa Kogure, Director of Table for Two
International, giving a lecture (Hitachi Group)

Nikko Niko Fiesta (Hitachi Systems)

Hitachi’s Foundations
Hitachi’s six foundations worldwide operate in awide range of areas, including supporting family
education, promoting science and technology
research, inviting Southeast Asian university faculty
members to Japan, helping with environmental
conservation, supporting the sound developmentof young people, and promoting good corporate
citizenship in the United States.

Hitachi’s Foundations
The Odaira Memorial Hitachi Education Foundation
The Hitachi Environment Foundation
The Kurata Memorial Hitachi Science and Technology Foundation
The Hitachi Mirai Foundation
The Hitachi Scholarship Foundation
The Hitachi Foundation (U.S.)
WEB The Foundation in Hitachi Group
http://www.hitachi-zaidan.org/global/index.html

Disaster-related Symposium
In January 2012, the Odaira Memorial Hitachi
Education Foundation held the Household Education Symposium in Hitachi at the Hitachi Education
Hall in conjunction with the Hitachi City Board of
Education. The symposium is usually held every fallin Tokyo. However, because of the Great East Japan
Earthquake, the event was held in Hitachi City on
the theme of “Small children, big lives: Helping children learn from the experience of a major disaster.”Around 120 attended, including parents and others
involved in childcare and child education.
The symposium impressed one participant about
the importance of the links between communities
and government as well as communication acrossthe whole community. Another person observedthat even though human relations could sometimes
be difficult, it would be good if parents and children
could “grow up together” as a part of a community.

Hitachi Group Sustainability Report 2012
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Elevator and escalator safety education (HELC)

127

021 Management Report

049

Environmental Report085

Social Report086

Message

105

Quality Assurance and Customer Satisfaction

087

Respect for Human Rights

112

Communication with Shareholders and Investors

090

Supply Chain Management

115

Employee Health and Safety

095

Diversity Management

118

Global Human Capital Development

102

Public Policy Initiatives

121

Social Contribution Activities

Symposium lecture

A Hitachi Volunteer Seminar

Support for Volunteering

Great East Japan Earthquake Recovery
Hitachi Group companies in and outside Japan
have provided support worth about 1 billion yen,including donations of ﬂat-panel TVs, dry cellbatteries, and Disaster Victim Support Systems for
local municipalities, to aid victims of the disasterand to assist with recovery. We have also opened
up company housing in the Tokyo area to disastervictims. We will continue to extend rapid support tohelp those in disaster areas.

We support employees who volunteer in three
ways: with information, time off, and funding
support. For information, we publish information
about volunteer activities at seminars and on our
intranet. For time off, we provide employees withspecial annual paid leave on top of their regularholidays which they can use for volunteering or forother forms of self-fulﬁllment. For funding support,
we operate The Growing Tree, a volunteer programthat provides ﬁnancial assistance to non-proﬁtorganizations that Hitachi employees are involved
with or support as volunteers. In ﬁscal 2011, assistance of around 2.5 million yen was given in ninecases, including for recovery following the Great
East Japan Earthquake, environmental and welfare
education for children, and training volunteers.
WEB The Growing Tree
http://www.hitachi.com/csr/sc/volunteer/tree/

Hitachi Volunteer Seminars
These hands-on seminars are held every year to
deepen employees’ understanding of volunteeringand to provide them with an opportunity to participate. In ﬁscal 2011, following the Great East Japan
Earthquake in March, we held four seminars forvolunteers operating in disaster areas—attended
by 150—on the importance of mental health care,making cloth toys to send to children, and preparatory work at the offices of NPOs who are giving
support.

Support for Disaster Recovery outside Japan
Floods struck the central area and elsewhere in
Thailand at the beginning of October 2011, affecting the whole country. The Hitachi Group provided
the equivalent of 30 million yen for ﬂood victim
relief and for rebuilding.
We also provided the equivalent of 10 million
yen following the earthquake that occurred ineastern Turkey in October 2011, as well as 1.37
million pesos following the typhoon that struck thesouthern Philippines in December 2011.

Hitachi Group Sustainability Report 2012
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128Comparative Table with GRI Guidelines
In formulating the Hitachi Group Sustainability Report 2012, weused the GRI Application Levels indicating compliance with GRI
Sustainability Reporting Guidelines. This provides an objective measureof the extent to which version 3.1 of the guidelines (G3.1) and other
GRI Reporting Framework elements have been applied. We evaluatedthis year’s report as achieving Application Level B+ by self-assessment.
A comparative table with GRI Guideline indexes is included below.

OUTPUTOUTPUT

Standard Disclosures

Performance
Indicators &Sector Supplement
Performance Indicators

B+

B
Report on all criteria listed forLevel C plus:
1.2
3.9, 3.13
4.5–4.13, 4.16–4.17

Report fully on a minimum of 10
Performance Indicators, including
at least one from each of: social,economic, and environment.*1

Management Approach
Disclosuresfor each Indicator Category

A

A+

Same as requirement for Level B

Report on a minimum of 20
Performance Indicators, at least
one from each of: economic,
environment, human rights, labor,society, product responsibility.*2

Management Approach disclosed
for each Indicator Category

Report Externally Assured

Report on:
1.1
2.1–2.10
3.1–3.8, 3.10 –3.12
4.1– 4.4, 4.14 – 4.15

Not RequiredManagement
Approach
Disclosures

C+

Report Externally Assured

OUTPUT

ProﬁleDisclosures

C

Report Externally Assured

ReportApplication Level

Respond on each core G3 andSector Supplement*3 indicatorwith due regard to the materiality
Principle
by either: a) reporting on theindicator or b) explaining thereason for its omission.

*1 Performance Indicators may be selected from any ﬁnalized Sector Supplement, but 7 of the 10 must be from the original GRI Guidelines*2 Performance Indicators may be selected from any ﬁnalized Sector Supplement, but 14 of the 20 must be from the original GRI Guidelines*3 Sector supplement in ﬁnal version

Item

Index

Items Disclosed

Related Pages in This Report
and Other References

1. Strategy and Analysis
1.1

1.2

Statement from the most senior decision-maker of the organization (e.g.,CEO, chair, or equivalent senior position) about the relevance of sustainability
to the organization and its strategy

Top Commitment

pp. 007–008

Message from the Chief Environmental Strategy
Officerp. 050Description of key impacts, risks, and opportunities

Hitachi Management Strategies and CSR

pp. 009–012

FY 2011 Results and FY 2012 Plans

pp. 028–029

Corporate Environmental Management Strategies
and Initiatives

pp. 053–059

Hitachi Group Fiscal 2011 Environmental Action
Plan: Targets and Results

p. 057

2. Organizational Profile
2.1

Name of the organization

Hitachi Group Proﬁlepp. 005–006

2.2

Primary brands, products, and/or services

Hitachi Group Proﬁlepp. 005–006

2.3

Operational structure of the organization, including main divisions, operatingcompanies, subsidiaries, and joint ventures

Annual Securities Report

Hitachi, Ltd. website

2.4

Location of organization’s headquarters

Hitachi Group Proﬁlepp. 005–006

2.5

Number of countries where the organization operates, and names ofcountries with either major operations or that are speciﬁcally relevant to thesustainability issues covered in the report

Hitachi Group Proﬁlepp. 005–006

2.6

Nature of ownership and legal form

Annual Securities Report

Hitachi, Ltd. website

2.7

Markets served (including geographic breakdown, sectors served, and typesof customers/beneﬁciaries)

Annual Securities Report

Hitachi, Ltd. website

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129

2.8

2.9

2.10

Scale of the reporting organization, including:∙ Number of employees

Hitachi Group Proﬁlepp. 005–006∙ Number of operations

Hitachi Group Proﬁlepp. 005–006∙ Net sales (for private sector organizations) or net revenues (for public sector
organizations)

Annual Securities Report

Hitachi, Ltd. website∙ Total capitalization broken down in terms of debt and equity (for private
sector organizations)

Annual Securities Report

Hitachi, Ltd. website∙ Quantity of products or services provided

Annual Securities Report

Hitachi, Ltd. website

Signiﬁcant changes during the reporting period regarding size, structure, or ownership including:∙ The location of, or changes in operations, including facility openings,
closings, and expansions

Annual Securities Report

Hitachi, Ltd. website∙ Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector organizations)

Annual Securities Report

Hitachi, Ltd. website

Awards received in the reporting period

Results of External SRI Assessments in Fiscal 2011

pp. 113–114

External Environment Awards

Hitachi, Ltd. website:
Environmental Activities

Sustainability Report Editorial Policy

pp. 003–004

3. Report Parameters
Report Proﬁle3.1

Reporting period (e.g., ﬁscal/calendar year) for information provided

3.2

Date of most recent previous report (if any)

Sustainability Report Editorial Policy

pp. 003–004

3.3

Reporting cycle (annual, biennial, etc)

Sustainability Report Editorial Policy

pp. 003–004

3.4

Contact point for questions regarding the report or its contents

Contact information

p. 147∙ Determining materiality∙ Prioritizing topics within the report∙ Identifying stakeholders the organization expects to use the report

Material Issues for Hitachip. 012

Results of External SRI Assessments in Fiscal 2011

pp. 113–114

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased
facilities, joint ventures, suppliers). See GRI Boundary Protocol for further
guidance

Sustainability Report Editorial Policy

pp. 003–004

3.7

State any speciﬁc limitations on the scope or boundary of the report

Sustainability Report Editorial Policy

pp. 003–004

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced
operations, and other entities that can signiﬁcantly affect comparability fromperiod to period and/or between organizations

Hitachi Group Proﬁlepp. 005–006

3.9

Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to thecompilation of the Indicators and other information in the report

Bases of calculations are described if necessary–

Calculation Methods for Environmental Data

Hitachi, Ltd. website:
Environmental Activities

3.10

Explanation of the effect of any re-statements of information provided
in earlier reports, and the reasons for such re-statement (e.g., mergers/
acquisitions, change of base years/periods, nature of business, measurement
methods)

Explanation is given if necessary to complement
data descriptions

–

3.11

Signiﬁcant changes from previous reporting periods in the scope, boundary,or measurement methods applied in the report

None

–

3.12

Table identifying the location of the Standard Disclosures in the reportComparative Table with GRI Guidelines

pp. 129–138

Policy and current practice with regard to seeking external assurance
for the report. If not included in the assurance report accompanying thesustainability report, explain the scope and basis of any external assurance
provided. Also explain the relationship between the reporting organizationand the assurance provider(s)Independent Assurance

pp. 144–146

Report Scope and Boundary
3.5

Process for deﬁning report content, including:

Assurance
3.13

4. Governance, Commitments, and Engagement
Governance
4.1

Governance structure of the organization, including committees under thehighest governance body responsible for speciﬁc tasks, such as setting
strategy or organizational oversightStrengthening Governancep. 023

4.2

Indicate whether the Chair of the highest governance body is also an
executive officer (and, if so, their function within the organization’s
management and the reasons for this arrangement)

Strengthening Governancep. 023

4.3

For organizations that have a unitary board structure, state the number andgender of members of the highest governance body that are independent
and/or non-executive members

Strengthening Governancep. 023

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130

4.4

Mechanisms for shareholders and employees to provide recommendations ordirection to the highest governance bodyCompliance Reporting System

p. 034

Communication with Shareholders and Investors

pp. 112–114

4.5

Linkage between compensation for members of the highest governancebody, senior managers, and executives (including departure arrangements),
and the organization’s performance (including social and environmental
performance)

Strengthening Governancep. 023

4.6

Processes in place for the highest governance body to ensure conﬂicts ofinterest are avoided.

Strengthening Governancep. 023

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 033

4.7

Process for determining the composition, qualiﬁcations, and expertise of themembers of the highest governance body and its committees, including any
consideration of gender and other indicators of diversity.

Strengthening Governancep. 023

4.8

Internally developed statements of mission or values, codes of conduct, andprinciples relevant to economic, environmental, and social performance andthe status of their implementation

Hitachi Management Strategies and CSR

pp. 009–012

FY 2011 Results and FY 2012 Plans

pp. 028–029

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 033

Corporate Environmental Management Strategies
and Initiatives

pp. 053–059

Hitachi Group Fiscal 2011 Environmental Action
Plan: Targets and Results

p. 057

4.9

4.10

Procedures of the highest governance body for overseeing the organization’s
identiﬁcation and management of economic, environmental, and social
performance, including relevant risks and opportunities, and adherence orcompliance with internationally agreed standards, codes of conduct, andprinciples

Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social performance

Initiatives That We Participate in

p. 003

Hitachi Management Strategies and CSR

pp. 009–012

Strengthening Governancep. 023

Supply Chain Management

pp. 090–094

Respect for Human Rights

pp. 087–089

Corporate Environmental Management Strategies
and Initiatives

pp. 053–059

Strengthening Governancep. 023

Reinforcing the Risk Management System

p. 030Business Continuity Plans (BCPs)

pp. 030–032

Managing Environmental Risk

p. 075Initiatives That We Participate in

p. 003

Participating in the Development of International
Standards

p. 067

Commitments to External Initiatives
4.11

4.12

4.13

Explanation of whether and how the precautionary approach or principle isaddressed by the organization

Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes orendorses

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization:∙ Has positions in governance bodies

None

–

∙ Participates in projects or committees

International Standardization Activities

p. 044

Participating in the Development of International
Standards

p. 067∙ Provides substantive funding beyond routine membership dues

None

–

∙ Views membership as strategic

None

–

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization

None

–

4.15

Basis for identiﬁcation and selection of stakeholders with whom to engage

None

–

4.16

Approaches to stakeholder engagement, including frequency of engagementby type and by stakeholder group

Environmental Communication

pp. 083–084

4.17

Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics
and concerns, including through its reporting

Public Policy Initiatives

pp. 102–104

Material Issues for Hitachip. 012

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131

5. Management Approach and Performance Indicators
Item

Performance Index: Core (C) / Add (A)Economic
Disclosure on Management Approach
Economic Performance

Financial Results for the First Quarter of the Year
Ended March 31, 2012

Hitachi, Ltd. website

Market Presence

Annual Securities Report

Hitachi, Ltd. website

Indirect Economic Impacts

FY 2011 Breakdown of Funding for Social
Contribution Activities

p. 121

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Goals and Performance

Financial Results for the Year Ended March 31,
2012

Hitachi, Ltd. website

Policy2012 Mid-Term Management Plan

pp. 010–011

Additional Contextual Information

Hitachi Group Sustainability Report 2012

Economic Performance Indicators
C
EC1

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other community
investments, retained earnings, and payments to capital providers andgovernments

Hitachi Group Proﬁlepp. 005–006

FY 2011 Breakdown of Funding for Social
Contribution Activities

p. 121

Environmental Accounting

pp. 082–083

CEC2

Financial implications and other risks and opportunities for the organization’s
activities due to climate change

Corporate Environmental Management Strategies
and Initiatives

pp. 053–059

CEC3Coverage of the organization’s deﬁned beneﬁt plan obligations

None

–

C
EC4

Signiﬁcant ﬁnancial assistance received from government

None

–

Market PresenceA
EC5

Range of ratios of standard entry level wage by gender compared to local
minimum wage at signiﬁcant locations of operation

None

–

C
EC6

Policy, practices, and proportion of spending on locally-based suppliers at
signiﬁcant locations of operation

Sharing Procurement Policies

pp. 090–091

Building Global Partnerships

p. 091

Sharing CSR Awarenesspp. 091–092

C
EC7

Procedures for local hiring and proportion of senior management hired fromthe local community at locations of signiﬁcant operation

Green Procurement

pp. 092–093

Response to Conﬂict Minerals Issue

pp. 093–094

None

–

Indirect Economic Impacts
C
EC8Development and impact of infrastructure investments and services provided
primarily for public beneﬁt through commercial, in-kind, or pro bono
engagement

Social Contribution Activities

pp. 121–128

A
EC9

Understanding and describing signiﬁcant indirect economic impacts,
including the extent of impacts

Environmental Accounting

pp. 082–083

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132

Environmental
Disclosure on Management Approach
Materials

EnergyWater

Biodiversity
Emissions, Effluents, and Waste

Environmentally Conscious Products and Services

pp. 060–067

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Environmentally Conscious Products and Services

pp. 060–067

Promoting Global Warming Countermeasures

pp. 069–071

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Water Conservation

pp. 073–074

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Preserving Ecosystems

pp. 058–059

Reducing Waste

pp. 071–073

Water Conservation

pp. 073–074

Chemical Substance Management

pp. 074–075

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Products and Services

Environmentally Conscious Products and Services

pp. 060–067

ComplianceManaging Environmental Risk

p. 075

Transport

Promoting Global Warming Countermeasures

pp. 069–071

Overall

Environmental Management Framework

pp. 077–080

Goal and Performance

Hitachi Group Fiscal 2011 Environmental Action
Plan: Targets and Results

p. 057

PolicyHitachi Action Guidelines for Environmental
Conservation

p. 056

Organizational Responsibility

Environmental Management Framework

pp. 077–080

Training and Awareness

Environmental Education

p. 081

Monitoring and Follow-up

Building Environmental Management Systems

p. 078Additional Contextual Information

Hitachi Group Sustainability Report 2012

C
EN1

Materials used by weight or volume

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076C
EN2

Percentage of materials used that are recycled input materials

None

–

C
EN3

Direct energy consumption by primary energy source

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076C
EN4Indirect energy consumption by primary source

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076AEN5Energy saved due to conservation and efficiency improvements

Promoting Global Warming Countermeasures

pp. 069–071

A
EN6

Initiatives to provide energy-efficient or renewable energy based products
and services, and reductions in energy requirements as a result of these
initiatives

Environmental Accounting

p. 082

Environmentally Conscious Products and Services

pp. 060–067

A
EN7

Initiatives to reduce indirect energy consumption and reductions achieved

Long-Term Plan Environmental Vision 2025

pp. 053–054

CEN8

Total water withdrawal by source

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Water Conservation

pp. 073–074

A
EN9

Water sources signiﬁcantly affected by withdrawal of water

None

–

A
EN10

Percentage and total volume of water recycled and reused

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Water Conservation

pp. 073–074

Materials

EnergyWater

Hitachi Group Sustainability Report 2012
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133

Biodiversity
C
EN11

Location and size of land owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protected areas

None

–

C
EN12

Description of signiﬁcant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas

Preserving Ecosystems

pp. 058–059

Social Contribution Activities: The Environment

pp. 124–126

A
EN13

Habitats protected or restored

Preserving Ecosystems

pp. 058–059

A
EN14

Strategies, current actions, and future plans for managing impacts on
biodiversity

Preserving Ecosystems

pp. 058–059

A
EN15

Number of IUCN Red List species and national conservation list species with
habitats in areas affected by operations, by level of extinction risk

None

–

p. 076

Emissions, Effluents, and Waste
C
EN16

Total direct and indirect greenhouse gas emissions by weight

Environmental Load Data Generated throughBusiness Operations (FY 2011)
Promoting Global Warming Countermeasures

pp. 069–071

C
EN17

Other relevant indirect greenhouse gas emissions by weight

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Promoting Global Warming Countermeasures

pp. 069–071

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Promoting Global Warming Countermeasures

pp. 069–071

C
EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved

C
EN19

Emissions of ozone-depleting substances by weight

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076C
EN20

NO, SO, and other signiﬁcant air emissions by type and weight

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Chemical Substance Management

pp. 074–075

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Water Conservation

pp. 073–074

Environmental Load Data Generated throughBusiness Operations (FY 2011)

p. 076

Reducing Waste

pp. 071–073

C
EN21

C
EN22

Total water discharge by quality and destination

Total weight of waste by type and disposal method

C
EN23

Total number and volume of signiﬁcant spills

Managing Environmental Risk

p. 075A
EN24

Weight of transported, imported, exported, or treated waste deemedhazardous under the terms of the Basel Convention Annex I, II, III, and VIII,
and percentage of transported waste shipped internationally

None

–

A
EN25

Identity, size, protected status, and biodiversity value of water bodies
and related habitats signiﬁcantly affected by the reporting organization’sdischarges of water and runoff

None

–

Products and Services
C
EN26

Initiatives to mitigate environmental impacts of products and services, andextent of impact mitigation

Increasing the Ratio of Eco-Products

pp. 060–064

C
EN27

Percentage of products sold and their packaging materials that are reclaimed
by category

Status of Product Packaging Recycling

Hitachi, Ltd. website,
Environmental Activities

Monetary value of signiﬁcant ﬁnes and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations

Managing Environmental Risk

p. 075Signiﬁcant environmental impacts of transporting products and other goods
and materials used for the organization’s operations, and transporting
members of the workforce

Reducing Transportation Energy

pp. 070–071

Total environmental protection expenditures and investments by typeEnvironmental Accounting

pp. 082–083

ComplianceC
EN28
Transport
A
EN29
OverallA
EN30

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134

Labor Practices and Decent Work
Disclosure on Management Approach
Employment

Global Human Capital Management Strategy

p. 118Labor/Management Relations

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 033

Occupational Health and Safety

Employee Health and Safety

pp. 115–117

Training and Education

Diversity Development Project

pp. 095–099

Diversity and Equal Opportunities

Diversity Management

pp. 095–101

Equal Remuneration for Women and Men

None

–

Goals and Performance

Major Results Data

pp. 142–143

PolicyCSR Policy of the Hitachi Group

p. 027

Organizational Responsibility

Diversity Development Project

pp. 095–099

Training and Awareness

Diversity Development Project

pp. 095–099

Monitoring and Follow-up

Diversity Development Project

pp. 095–099

Additional Contextual Information

Hitachi Group Sustainability Report 2012

C
LA1

Total workforce by employment type, employment contract, and region,broken down by gender

Hitachi Group Proﬁlepp. 005–006

CLA2

Total number and rate of new employee hires and employee turnover by age
group, gender, and region

None

–

A
LA3

Beneﬁts provided to full-time employees that are not provided to temporary
or part-time employees, by signiﬁcant locations of operations

None

–

C
LA15

Return to work and retention rates after parental leave, by gender

None

Employment

Labor/Management Relations
C
LA4

Percentage of employees covered by collective bargaining agreements

None

–

C
LA5

Minimum notice period(s) regarding operational changes, including whether
it is speciﬁed in collective agreements

None

–

Occupational Health and Safety
A
LA6

Percentage of total workforce represented in formal joint management–
worker health and safety committees that help monitor and advise on
occupational health and safety programs

None

–

C
LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and total
number of work-related fatalities, by region and by gender

Trends in the Occupational Accident Ratep. 115C
LA8

Education, training, counseling, prevention, and risk-control programs inplace to assist workforce members, their families, or community members
regarding serious diseases

Business Continuity Plans (BCPs)

pp. 030–032

Employee Health and Safety

pp. 115–117

A
LA9

Health and safety topics covered in formal agreements with trade unions

None

–

Training and Education
C
LA10

Average hours of training per year per employee by gender, and by
employee category

None

–

A
LA11

Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing career
endings

Global Human Capital Development

pp. 118–120

ALA12Percentage of employees receiving regular performance and careerdevelopment reviews, by gender

None

–

Diversity Management

pp. 095–101

Global Human Capital Development

pp. 118–120

None

–

Diversity and Equal Opportunity
C
LA13

Composition of governance bodies and breakdown of employees per
employee category according to gender, age group, minority groupmembership, and other indicators of diversity

Equal Remuneration for Women and Men
C
LA14

Ratio of basic salary and remuneration of women to men by employee
category, by signiﬁcant locations of operation

Human Rights

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135

Disclosure on Management Approach
Investment and Procurement Practices

Guidelines for Procurement Activities

pp. 090–091

Hitachi Group Supply-Chain CSR Deployment
Guidebook

pp. 091–092

Hitachi Group Codes of Conduct: Chapter 1.3
Procurement Activities

p. 033

Non-Discrimination

Hitachi Group Codes of Conduct: Chapter 4.2
Eliminating Discrimination

p. 033

Freedom of Association and Collective Bargaining

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 033

Child Labor

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 033

Prevention of Forced and Compulsory Labor

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 033

Security Practices

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 033

Indigenous Rights

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 033

Assessment

Reinforcing the Risk Management System

p. 030Remediation

Reinforcing the Risk Management System

p. 030Goals and Performance

FY 2011 Results and FY 2012 Plans: 4. Corporate
Ethics and Human Rights

p. 028

PolicyHitachi Group Codes of Conduct: Chapter 4
Respect of Human Rights

p. 033

Organizational Risk Assessment

Reinforcing the Risk Management System

p. 030

Impact Assessment

Reinforcing the Risk Management System

p. 030Organizational Responsibility

Framework for Promoting Respect for Human
Rights

pp. 087–088

Training and AwarenessRaising Awareness of Human Rights; Applying
Human Rights Worldwide

p. 088

Monitoring, Follow-up and Remediation

Applying Human Rights Worldwide

p. 088Additional Contextual Information

Hitachi Group Sustainability Report 2012

Investment and Procurement Practices
C
HR1

Percentage and total number of signiﬁcant investment agreements andcontracts that include clauses incorporating human rights concerns, or thathave undergone human rights screening

None

–

C
HR2

Percentage of signiﬁcant suppliers, contractors, and other business partners
that have undergone human rights screening, and actions taken

Sharing Procurement Policies; Sharing CSR
Awareness

pp. 090–091

C
HR3

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage of employees trained

Raising Awareness of Human Rights; Applying
Human Rights Worldwide

p. 088

None–

Operations and signiﬁcant suppliers identiﬁed in which the right to exercise
freedom of association and collective bargaining may be violated or atsigniﬁcant risk, and actions taken to support these rights

None

–

Operations and signiﬁcant suppliers identiﬁed as having signiﬁcant risk forincidents of child labor, and measures taken to contribute to the effective
abolition of child labor

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 033

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 033

Non-Discrimination
C
HR4

Total number of incidents of discrimination and corrective actions taken

Freedom of Association and Collective BargainingC
HR5Child LaborC
HR6

Forced and Compulsory LaborC
HR7Operations and signiﬁcant suppliers identiﬁed as having signiﬁcant risk forincidents of forced or compulsory labor, and measures to contribute to theelimination of all forms of forced or compulsory labor

Security Practices

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136

A
HR8

Raising Awareness of Human Rights

p. 088

Total number of incidents of violations involving rights of indigenous people
and actions taken

None

–

Percentage and total number of operations that have been subject to humanrights reviews and/or impact assessments

None

–

Number of grievances related to human rights ﬁled, addressed and resolved
through formal grievance mechanisms

None

–

Local Communities

Philosophy and Policy
Hitachi Group Codes of Conduct: Chapter
3.2 Contribution to Local Communities; 3.6
Observance of Laws and Regulations and Respectof the Culture and Customs of Each Nation andRegionp. 121
p. 033

Corruption

Compliance

pp. 033–037

Public Policy

Public Policy Initiatives

pp. 102–104

Anti-Competitive Behavior

Hitachi Group Codes of Conduct, Chapter 1.2
Sales Activities

p. 033Compliance

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 033

Goals and Performance

FY 2011 Results and FY 2012 Plans: 4. Corporate
Ethics and Human Rights

p. 028

PolicyCSR Policy of the Hitachi Group

p. 027

Organizational Responsibility

CSR Management Structurep. 026

Training and AwarenessImplementing Corporate Ethics Monthpp. 033–034

Additional Contextual Information

Hitachi Group Sustainability Report 2012

Percentage of security personnel trained in the organization’s policies
or procedures concerning aspects of human rights that are relevant tooperations

Indigenous Rights
A
HR9
Assessment
C
HR10
RemediationC
HR11
Society
Disclosure on Management Approach

Local Communities
C
SO1

Percentage of operations with implemented
local community engagement, impact
assessments, and development programs

Philosophy and Policyp. 121C
SO9Operations with signiﬁcant potential or actual
negative impacts on local communities

Managing Environmental Risk

p. 075C
SO10Prevention and mitigation measures
implemented in operations with signiﬁcantpotential or actual negative impacts on local
communities

Environmentally Conscious Production

pp. 068–076

C
SO2

Percentage and total number of business units analyzed for risks related tocorruption

Reinforcing the Risk Management System

p. 030C
SO3Percentage of employees trained in organization’s anti-corruption policies
and proceduresCompliance

pp. 033–037

C
SO4

Actions taken in response to incidents of corruption

Preventing Violation of the Antimonopoly Law

pp. 034–035

CSO5

Public policy positions and participation in public policy development andlobbying

Public Policy Initiatives

pp. 102–104

A
SO6

Total value of ﬁnancial and in-kind contributions to political parties,
politicians, and related institutions by country

None

–

None

–

Corruption

Public Policy

Anti-Competitive Behavior
C
SO7

Total number of legal actions for anti-competitive behavior, anti-trust, andmonopoly practices and their outcomes

Compliance

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137

C
SO8

Monetary value of signiﬁcant ﬁnes and total number of non-monetary
sanctions for non-compliance with laws and regulations

Preventing Violation of the Antimonopoly Law

pp. 034–035

Customer Health and Safety

Quality Assurance and Customer Satisfaction

pp. 105–111

Product and Service Labeling

Increasing the Ratio of Eco-Products

pp. 060–064

Marketing Communications

Customer Satisfaction

pp. 107–109

Customer Privacy

Protecting Personal Information and Information
Security Initiative

pp. 035–037

Compliance

Compliance

pp. 033–037

Goals and Performance

FY 2011 Results and FY 2012 Plans: 2.
Contribution to Society through Our Businessp. 028

Product Responsibility
Disclosure on Management Approach

PolicyCustomer Satisfaction Management Guidelines

p. 107

Organizational Responsibility

Customer Satisfaction

pp. 107–109

Training and Awareness

Customer Satisfaction

pp. 107–109

Monitoring and Follow-up

Customer Satisfaction

pp. 107–109

Additional Contextual Information

Hitachi Group Sustainability Report 2012

Customer Health and Safety
C
PR1

Life cycle stages in which health and safety impacts of products and services
are assessed for improvement, and percentage of signiﬁcant products andservices categories subject to such procedures

Quality Assurance Activities

p. 105A
PR2

Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services during
their life cycle, by type of outcomes

Handling Product Accidents

p. 106

Product and Service LabelingC
PR3

Type of product and service information required by procedures, andpercentage of signiﬁcant products and services subject to such information
requirements

Increasing the Ratio of Eco-Products

pp. 060–064

A
PR4

Total number of incidents of non-compliance with regulations and voluntary
codes concerning product and service information and labeling, by type ofoutcomes

None

–

A
PR5

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction

Customer Satisfaction

pp. 107–109

Marketing Communications
C
PR6

Programs for adherence to laws, standards, and voluntary codes related
to marketing communications, including advertising, promotion, andsponsorship

Hitachi Group Codes of Conduct: Chapter 1.2
Sales Activities

p. 033A
PR7

Total number of incidents of non-compliance with regulations and voluntary
codes concerning marketing communications, including advertising,promotion, and sponsorship by type of outcomes

None

–

Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data

None

–

Monetary value of signiﬁcant ﬁnes for non-compliance with laws andregulations concerning the provision and use of products and services

None

–

Customer PrivacyA
PR8
ComplianceC
PR9

Hitachi Group Sustainability Report 2012
http://www.hitachi.com/csr/138Comparative Table with ISO 26000 Core Subjects
Hitachi’s engagements are shown together with the corresponding seven core
subjects of ISO 26000 (Guidance on Social Responsibility).

Core Subjects

IssuesHitachi’s Engagements

Related Pages inThis Report

Organizational Governance

Organizational Governance∙ Corporate Governance∙ CSR Management∙ Brand Management∙ Public Policy Initiatives

pp. 023–025
pp. 026–029
pp. 045–048
pp. 102–104

Human Rights

1. Due diligence*1
2. Human rights risk situations
3. Avoidance of complicity
4. Resolving grievances
5. Discrimination and vulnerable groups
6. Civil and political rights
7. Economic, social and cultural rights
8. Fundamental principles and rights at work

∙ Respect for Human Rights

pp. 087–089

Labor Practices

1. Employment and employment relationships
2. Conditions of work and social protection
3. Social dialogue
4. Health and safety at work
5. Human development and training in the workplace∙ Diversity Management∙ Global Human Capital Development∙ Employee Health and Safety

pp. 095–101
pp. 118–120
pp. 115–117

The Environment

1. Prevention of pollution
2. Sustainable resource use
3. Climate change mitigation and adaptation
4. Protection of the environment, biodiversity and restoration ofnatural habitats∙ Corporate Environmental Management
Strategies and Initiatives∙ Environmentally Conscious Products andServices∙ Environmentally Conscious Production∙ Environmental Management Framework andCommunication

pp. 053–059

Fair Operating Practices

1. Anti-corruption
2. Responsible political involvement
3. Fair competition
4. Promoting social responsibility in the value chain
5. Respect for property rights∙ Risk Management∙ Compliance∙ Intellectual Property∙ Supply Chain Management∙ Preserving Ecosystems

pp. 030–032
pp. 033–037
pp. 043–044
pp. 090–094
pp. 058–059

Consumer Issues

1. Fair marketing, factual and unbiased information and faircontractual practices
2. Protecting consumers’ health and safety
3. Sustainable consumption
4. Consumer service, support, and complaint and dispute resolution
5. Consumer data protection and privacy
6. Access to essential services
7. Education and awareness∙ Quality Assurance and Customer Satisfaction

pp. 105–111

Community Involvement andDevelopment

1. Community involvement
2. Education and culture
3. Employment creation and skills development
4. Technology development and access
5. Wealth and income creation
6. Health
7. Social investment∙ Social Contribution Activities

pp. 121–128*1 Examination of the potential negative effects that an organization’s decisions and activities may have on society, the environment, and the economy

Hitachi Group Sustainability Report 2012
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139

pp. 060–067
pp. 068–076
pp. 077–084

Comparative Table with the UN Global Compact
Items in Hitachi Group Codes of Conduct and Hitachi’s engagements are shown
together with the corresponding 10 principles of the UN Global Compact.

Principles
Human Rights

Labor

Environment

AntiCorruption

Hitachi Group Codes of Conduct
Principle 1

Businesses should supportand respect the protectionof internationallyproclaimed human rights

Principle 2

Businesses should makesure that they are notcomplicit in human rights
abusesPrinciple 3

Businesses should
uphold the freedomof association and theeffective recognition of
the right to collective
bargaining

Principle 4

Businesses should upholdthe eimination of all formsof forced and compulsorylabor

Principle 5

Businesses should upholdthe effective abolition ofchild labor

Principle 6

Businesses should
uphold the elimination of
discrimination in respectof employment andoccupation

Principle 7

Businesses should
support a precautionary
approach toenvironmental challenges

Principle 8

Businesses should
undertake initiatives
to promote greater
environmental
responsibility

Principle 9

Businesses should
encourage thedevelopment
and diffusion ofenvironmentally friendly
technologies

Principle
10

Businesses should work
against corruption in
all its forms, including
extortion and bribery

Hitachi’s Engagements

Related Pages in This Report

Related Pages
in This Report

1.3 Procurement Activities
3.6 Observance of Laws and Regulations and Respect of
the Culture and Customs of Each Nation and Region
4.1 Promoting Respect of Human Rights
4.2 Eliminating Discrimination
4.3 Respect of Human Rights in Information
Management
4.4 Respect of Basic Rights at Work∙ Respect for Human Rights∙ Supply Chain Management

pp. 087–089
pp. 090–094

1.3 Procurement Activities
4.1 Promoting Respect of Human Rights
4.2 Eliminating Discrimination
4.3 Respect of Human Rights in Information
Management
4.4 Respect of Basic Rights at Work
5.4 Arranging a Work Environment That Draws Out
Employee Strengths∙ Diversity Management∙ Global Human Capital Development∙ Employee Health and Safety∙ Supply Chain Management

pp. 095–101
pp. 118–120
pp. 115–117
pp. 090–094

2.1 Promoting Environmental Management
2.2 Environmentally Conscious Business Activities andEnvironmental Management
2.3 Communication with Stakeholders∙ Corporate Environmental Management
Strategies and Initiatives∙ Environmentally Conscious Products
and Services∙ Environmentally Conscious Production∙ Environmental Management
Framework and Communication

pp. 053–059

3.3 Relations with Politics and Government
Administration
3.5 Regarding Gifts, Business Entertainment, Etc.

∙ Compliance

pp. 033–037

Hitachi Group Sustainability Report 2012
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140

pp. 060–067
pp. 068–076
pp. 077–084

Policy, Vision, and Guidelines
Policy, vision, and guidelines reported in Hitachi Group Sustainability Report 2012
are listed below.

Category

Policy, Vision, and Guidelines

Hitachi Management Strategies and CSRManagement Report

Risk Management
Compliance

Environmental ReportSocial Report

Related Pages in This
ReportCorporate Credo

p. 009Hitachi Group Vision

p. 009Hitachi Group Codes of Conduct

p. 0092012 Mid-Term Management Plan

pp. 010–011

CSR Policy of the Hitachi Group

p. 027

Guidelines for Pandemic Influenza Preparedness

p. 031

Hitachi Group Codes of Conduct

p. 033

Basic Approach to Information Security Governancep. 036

Personal Information Protection Policyp. 035Three Principles for Preventing Leakage of Confidential
Information

p. 036

Brand Management

Hitachi Brand Strategy

p. 045

Environmental Management Strategies andInitiatives

The Hitachi Environmental Vision

p. 053Long-Term Plan Environmental Vision 2025

p. 053

Hitachi Action Guidelines for Environmental Conservation

p. 056

Quality Assurance and Customer Satisfaction

Customer Satisfaction Management Guidelines

p. 107

Communication with Shareholders and Investors

Disclosure Policyp. 112Fundamental Policy for Prevention of Takeovers

p. 114Social Contribution Activities

Social Contribution Philosophy and Policyp. 121

Supply Chain Management

Guidelines for Procurement Activities

pp. 090–091

Hitachi Group Supply-Chain CSR Deployment Guidebook

pp. 091–092

Green Procurement Guidelines

pp. 092–093

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141

Major Results Data
Major results data reported in Hitachi Group Sustainability Report 2012 are listed
below.

Management
FY 2007

FY 2008

FY 2009

FY 2010

Related Pages inThis Report

FY 2011

Innovation Management
R&D Efficiency (ROI) (%)

0.82

0.31

0.37

1.1

1.0

p. 038R&D Expenditures to Revenues (%)

3.8

4.2

4.2

4.3

4.2

p. 038

45

47

47

51

55

p. 043

Intellectual Property
Patent Application Ratios outside Japan (%)

Scope of data
Hitachi, Ltd. and consolidated subsidiaries (including modiﬁed entities to which the equity method of consolidated reporting applies)
No. of companies:
FY 2007: 911; FY 2008: 944; FY 2009: 901; FY 2010: 914; FY 2011: 939

Environment
FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

Related Pages inThis Report

Environmental Management Strategies and Initiatives
Contributions to CO2 Emission Reduction (millions of
tonnes)

–

–

–

15.51

18.09

p. 054

5,741

6,954

8,387

9,456

10,476

p. 060CO2 Emissions (kt-CO2)

4,511

4,312

3,879

4,324

3,121

p. 069CO2 Emissions from Transportation in Japan (kt-CO2)

174

155

128

125

138

p. 071

Environmentally Conscious Products and Services
No. of Eco-Product Models (models)
Environmentally Conscious Production

Waste Generation (kt)

760

737

608

738

701

p. 072

Water Use outside Japan (millions of m3)

14.26

13.61

12.90

16.40

8.91

p. 073

VOC atmospheric Emissions (t)

6,072

4,549

3,737

3,653

4,285

p. 075

Scope of data
For environmental load data generated from products
Hitachi, Ltd. and consolidated subsidiaries (including modiﬁed entities to which the equity method of consolidated reporting applies)
No. of companies:
FY 2007: 911; FY 2008: 944; FY 2009: 901; FY 2010: 914; FY 2011: 940
For environmental load data generated through business operations
Companies that cover 90% of the load (based on Hitachi calculations)

Hitachi Group Sustainability Report 2012
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SocialFY 2007

FY 2008

FY 2009

FY 2010

Related Pages inThis Report

FY 2011Social Contribution Activities
Funding for Social Contribution Activities*1(millions of yen)

1,472

1,439

1,347

1,605

–

p. 121

Funding for Social Contribution Activities*2(millions of yen)

–

–

–

–

3,471

p. 121

–

–

–

36

38

p. 090

86:14

86:14

85:15

84:16

84:16

p. 097

Supply Chain Management
Global Procurement Ratio (%)
Diversity Management
Ratio of Male and Female Employees (Hitachi, Ltd.) (%)
Ratio of Female Managers (Hitachi, Ltd.) (%)

2.5

2.9

3

3.3

3.4

p. 098

No. of Employees Taking Childcare Leave (Hitachi, Ltd.)(people)

438

459

510

542

533

p. 098

No. of Employees Taking Nursing Care Leave (Hitachi,Ltd.) (people)

20

18

11

10

12

p. 098

No. of Employees Working Shorter Hours (Hitachi, Ltd.)(people)

350

383

288

337

321

p. 099

Employment Ratio of People with Disabilities (%)

2.11

2.06

2.01

2.05

2.00

p. 100

179

200

218

230

239

p. 119

Occupational Accident Rate (Hitachi, Ltd.) (%)

0.05

0.12

0.06

0.07

0.10

p. 115

Occupational Accident Rate (Hitachi Group* ) (%)

0.26

0.22

0.25

0.23

0.17

p. 115Global Human Capital Development
No. of Non-Japanese Employees (Hitachi, Ltd.) (people)
Employee Health and Safety*

3

4

Scope of data
*1 Hitachi, Ltd. and ﬁve foundations in Japan*2 The Hitachi Group and ﬁve foundations in Japan*3 Statistics from January to December 2011
*4 90 major Hitachi Group companies in Japan excluding Hitachi, Ltd.

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143

Independent Assurance
To enhance the reliability of data disclosed in the Hitachi Group Sustainability Report
2012, we have received third-party audits and reviews.

Management Report / Social Report
Regarding the Management Report (pp. 021–048) and the Social Report (pp. 085–128) focusing
mainly on fiscal 2011, we have received a review by Ernst & Young Sustainability Institute Co., Ltd.

Third-party certification report on Management Report and Social Report

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144

Environmental Report
Regarding the fiscal 2011 results in the Environment Report (pp. 049–084), we have received a review by
Bureau Veritas Japan Co., Ltd.*Regarding energy, a more detailed verification was conducted to confirm the data. Environmental loaddata, Eco-Product registration data, and the contribution to CO2 emission reduction through the use of
Hitachi products and services were also subject to review.
The standards, guidelines, and calculation methods used in collecting data are posted on our website.
*A certification agency providing inspection, auditing, and certification services in areas such as marine and building compliance; health, safety, and the environment; systems;
and consumer products.
WEB Calculation methods for environmental load data:
http://www.hitachi.com/environment/activities/third/method.html

Third-party verification report on Environmental Report

Hitachi Group Sustainability Report 2012
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145

Greenhouse Gas Emissions Verification Statement

Hitachi Group Sustainability Report 2012
http://www.hitachi.com/csr/146

Inquiries
Hitachi, Ltd.
CSR Promotion Department, CSR Division(For inquiries on this report or CSR activities overall)
1-6-6 Marunouchi, Chiyoda-ku, Tokyo, 100-8280, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4564-1454 http://www.hitachi.com/csr/
Environmental Strategy Office (For inquiries on environmental activities)
1-6-1 Marunouchi, Chiyoda-ku, Tokyo, 100-8220, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4235-5835 http://www.hitachi.com/environment/

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