Hitachi Group
Corporate Social Responsibility Report 2005

Enabling Future Generations

About the Hitachi Group CSR Report 2005
The letters “CSR” has recently been used as the acronym for “corporate social responsibility,”for Hitachi, this concept is an extension of activities we have been doing for years based on thefounding spirit of the company.
We believe that in order to more dynamically respond to society, it is important for the HitachiGroup overall to communicate about its philosophy and activities and to share a common
understanding on CSR matters with the many stakeholders involved with Hitachi—including
customers and society, shareholders, investors, suppliers, employees, and others. We have thus
prepared this document as a report of our CSR activities and progress. We started publishing an“Environmental Report” in 1998. In 2003 we redesigned it into the “Environmental Sustainability
Report,” and we also have been reporting on the social dimensions of our activities. To better
reﬂect progress in CSR activities of the Group as a whole, in 2005 we made more changes to thecontent to produce this “Hitachi Group CSR Report 2005.”
We have structured this year’s report around our philosophy and the activities to realize ourcorporate statement, “Inspire the Next,” which is about innovating for the next generation.
The report has three sections, and we devote one of these to summarize the overall image ofthe Hitachi Group’s CSR activities and governance. In the “Hitachi CSR Activities” section, by
portraying our CSR activities through the words of the people who are directly involved, we give
examples of the challenges we are tackling to create a better world. In the second section, “nextsociety,” we report on the social dimension and how we are responding to our stakeholders. In
the third section, “next eco,” we report on our environmental activities.
We hope that this report will help readers to understand Hitachi’s approach to corporate social
responsibility, and that it will promote dialogue with our stakeholders.

Scope of this Report
Period: The main period covered is fiscal year 2004 (April 1, 2004 through March 31, 2005).
Companies: Companies covered under consolidated reporting of the Hitachi Group
Coverage of Data
Finances: Hitachi, Ltd. and 985 consolidated subsidiary companies (which include modified entities to which
the equity method of consolidated reporting applies)
Affiliated companies that use the equity method: 167 companies
Social reporting: Hitachi, Ltd.
Environment reporting: Hitachi, Ltd. and 275 consolidated subsidiaries
Related Reports
We report on financial performance of Hitachi, Ltd. in financial statements and annual reports.
Regarding research and development, as well as intellectual property (intellectual property rights, brands), which aremajor aspects of technology management of Hitachi, Ltd. and major Group companies, we report in the “R&D andIntellectual Property Report.”
Please note that 28 companies in the Hitachi Group, and seven production facilities publish reports on environmental activities and social dimensions. (Please visit the “hitachi green web” site on the Internet and look for “Issuanceof Environmental Report & Contact.”)
Guidelines Referred to in Preparing this Report“Environmental Reporting Guidelines” (FY2003 version), by Japan Ministry of the Environment“Guidelines on Environmental Performance Indicators for Business” (FY2002 version), by Japan Ministry of theEnvironment“2001 Environmental Reporting Guidelines with an Emphasis on Stakeholders,” by Japan Ministry of Economy,
Trade and Industry“Sustainability Reporting Guidelines 2002,” by Global Reporting Initiative* We intend to publish this CSR Report on an annual basis.

Contents
Company Profile2

Hitachi Group Profile
Economic Performance
4

Message from the President

CSR Activities of the Hitachi Group

6

Corporate Governance and Group Management
Compliance

8

9
10

Dialogue with Stakeholders
Hitachi CSR Activities

12

next society Creating the Future with Our Stakeholders
20

Customers, Society, and Hitachi
Customer Satisfaction
Quality Assurance

21
23

Social Contribution Activities

28

Efforts for Shareholders and Investors
30

Working with Our Suppliers

The Employees that Sustain Hitachi

32

36

Action Plan for Fiscal 2005

next eco Aiming for Sustainable “Monozukuri”(Design, Manufacture and Repair of Products)

Environmental Activities of the Hitachi Group38

Environmental Impact Data for Corporate Activities (FY2004)
Eco-mind & Management

46

Nature-friendly Products & Eco-factories
Worldwide Stakeholder Collaboration

49

57

58

Sustainable Business Models
Action Plan for Fiscal 2005

61

Third-Party Comment on the Hitachi Group CSR Report 2005
Data on Hitachi green web

44

62

64

Symbols Used in this Report† Terminology: This symbol appears beside certain technical terms and proper nouns.
Please see the glossary on pages 62 and 63 for explanations.
: This symbol indicates the title and address of a related Internet website.
WEB
PAGE : This symbol indicates a related page in this report.
Graphs and other visuals use universal design for readers with color-impaired vision.
Company names of customers and suppliers may be abbreviated or referred without
their titles in this report.

Company Profile

Economic Performance

Corporate Name: Hitachi, Ltd.

As of March 31, 2005

Incorporated: Incorporated February 1, 1920 (founded in 1910)

Capital Stock: ¥282,033 million

Head Office:Number of employees (Unconsolidated basis): 41,069

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

Number of employees (Consolidated basis): 347,424

Representative:

Number of consolidated subsidiaries: 985 (Japan: 539, overseas: 446)

Etsuhiko Shoyama, President, Chief Executive Officer and Director

Number of affiliated companies that use the equity method:
167 companies

Hitachi Group Profile

Period: Fiscal year ending March 31, 2005 (consolidated basis)

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

Net sales: ¥9,027.0 billion (105% compared with the previous year)

consisting of a total of 1,152 companies, including 539 consolidat-

Operating income/loss:

ed subsidiaries within Japan, and 446 overseas, and 84 affiliatedcompanies in Japan that use the equity method and 83 overseas.
In terms of business activities, there are seven business units, as
indicated below, with revenues of about 9 trillion yen. The Group¥279.0 billion (151% compared with the previous year)
Capital investment:¥959.5 billion (118% compared with the previous year)
R&D expenditure:¥388.6 billion (105% compared with the previous year)

employs about 340,000 employees.

Overseas output as a percentage of consolidated net sales: 18%

Business Unit

Information &Telecommunication Systems

Electronic Devices

Power & Industrial Systems

Products

1.0-inch hard disk drive by Hitachi Global
Storage Technologies, Inc.
Superﬁne 2.2-inch (QVGA) TFT liquid crystal
display for mobile phones, using IPS (in-planeswitching) technology from Hitachi Displays, Ltd.

Hitachi train,* which will operate domestic
services on the Channel Tunnel Rail Link
(CTRL) and local lines in the U.K.

Enterprise blade system*
which integrates server,
communications, storage,
and management software
functions

Advanced CD-measurement SEM by Hitachi
High-Technologies Corporation

Excavator by
HitachiConstruction
MachineryCo., Ltd.

Finger vein authentication system*

Major Products & Services
Major Consolidated Subsidiaries

2

Hitachi Group CSR Report 2005

Systems Integration, outsourcing, software,
hard disk drives, disk array subsystems,
servers, mainframes, personal computers,
telecommunication equipment,
automatic teller machines (ATMs)
Hitachi Communication Technologies, Ltd.,
Hitachi-Omron Terminal Solutions, Corp.,
Hitachi Computer Products (America). Inc.,
Hitachi Computer Products (Europe) S.A.S,
Hitachi Global Storage Technologies
Netherlands B.V., Hitachi Electronics Services
Co., Ltd., Hitachi Information Systems. Ltd.,
Hitachi Software Engineering Co., Ltd.,
Hitachi Systems & Services, Ltd.,
Hitachi Data Systems Holding Corp.

Elevators with a view* at Terminal 2 of theTokyo International Airport (Haneda)

Magneto-cardiograph system from Hitachi
High-Technologies Corporation
Liquid crystal displays (LCD), semiconductor
manufacturing equipment, testing andmeasurement, medical electronics equipment, semiconductors
Hitachi Displays, Ltd., Hitachi HighTechnologies Corporation, Hitachi Medical
Corp., Hitachi Electronic Devices (USA), Inc.,
Hitachi Semiconductor Singapore Pte. Ltd.

Nuclear power plants, thermal power plants,
hydroelectric power plants, industrial machineryand plant construction, automotive products,
construction machinery, elevators, escalators, rail vehicles, air-conditioning equipment
Babcock-Hitachi K.K., Hitachi Air Conditioning
Systems Co., Ltd., Hitachi Construction
Machinery Co., Ltd., Hitachi Industrial
Equipment Systems Co., Ltd., Hitachi
Industries Co., Ltd., Hitachi Kiden Kogyo,Ltd., Hitachi Via Mechanics, Ltd., Japan
Servo Co., Ltd., Guangzhou Hitachi Elevator
Co., Ltd., Hitachi Automotive Products(USA) , Inc., Hitachi Building Systems Co.,
Ltd., Hitachi Engineering Co., Ltd., Hitachi
Engineering & Services Co., Ltd., Hitachi
Plant Engineering & Construction Co., Ltd.

Trends in Performance Results (Consolidated basis)/FU4BMFT CJMMJPOTPGZFO/FU4BMFTCZ*OEVTUSZ4FHNFOUJO': CJMMJPOPGZFO *OGPSNBUJPO5FMFDPNNVOJDBUJPO4ZTUFNT  'JOBODJBM4FSWJDFT    

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See Web site for economic performance reports.

http://www.hitachi.co.jp/IR/index.html* in this table indicates Hitachi, Ltd. products.

Digital Media &Consumer ProductsHigh Functional Materials &Components

Logistics, Services & Others

Carbon anode material for lithium-ion battery
by Hitachi Chemical Co., Ltd.

Hitachi Transport System, Ltd. operates athird-party logistics solutions business.

Plasma television*

Washer-dryer
by Hitachi Home & Life Solutions, Inc.

Financial Services

Hitachi Capital’s multifunctional IC card

Sputtering target materials for liquid crystal
display by Hitachi Metals, Ltd.

μBGA (ball grid array) packages by Hitachi
Cable, Ltd. used in DDR2SDRAM by Elpida
Memory, Inc.

Lithium-ion rechargeable battery
from Hitachi Maxell, Ltd.

Optical disk drives, televisions, LCD projectors, mobile phones, room air conditioners,
refrigerators, washing machines, information
storage media, batteries
Hitachi Home & Life Solutions, Inc., Hitachi
Maxell, Ltd., Hitachi Media Electronics Co.,
Ltd., Hitachi Home Electronics (America),
Inc., Shanghai Hitachi Household Appliances
Co., Ltd.

Wires & cables, copper products, semiconductor-related materials, printed wiringboards and related materials, organic/inorganic chemical products, plastic molded
products, LCD-related materials, specialty
steels, magnetic materials, ductile cast-ironproducts, forged and cast-steel products
Hitachi Cable, Ltd., Hitachi Chemical Co.,
Ltd., Hitachi Metals, Ltd.

General trading, transportation, property
management
Chuo Shoji, Ltd., Hitachi Life, Ltd., Hitachi
Mobile Co., Ltd., Hitachi Transport System,
Ltd., Nikkyo Create, Ltd., Hitachi America,
Ltd., Hitachi Asia Ltd., Hitachi China Ltd.,
Hitachi Europe GmbH

Leasing, loan guarantees, insurance services
Hitachi Capital Corporation, Hitachi Insurance
Services, Ltd.

Company Profile3

Message from the President

Aiming to be Global Leader in CSR

President,
Chief Executive Officer and Director,
Hitachi, Ltd.

Etsuhiko Shoyama

CSR is a Principle of Our Management
In recent years, the relevance of corporate social responsibility (CSR) has been the subject of much discussion
around the world. Our times demand many changes,
and some of these involve the very nature of corporation,
and a corporation’s relationship with local communities,
suppliers and other stakeholders. Despite this, I do notbelieve that CSR is a new idea. CSR is at the core of thespirit with which Hitachi was founded. Hitachi’s origins
go back to the development of the ﬁve horsepower
induction motor by founder Namihei Odaira who wasthen the production manager at an electric machinery
repair shop of the mining company the Hitachi Mine ofKuhara Mining Co. He declared the goal of establishingoriginal Japanese technology, and to this day, Hitachi
has embraced the philosophy of “contributing to society
through the development of superior, original technology and products” as part of its Fundamental Credo.
Technological ability and synergy, as well as “pioneering
spirit,” “harmony” and “sincerity,” which represent the
Hitachi spirit, are the roots of Hitachi’s CSR, and all thevariety of activities based on this spirit are themselves
fulﬁlling CSR. In other words, CSR is the very essence ofour management.

The “Next” Concept:
Releasing Potential for the Next Generation
With its many companies, listed and otherwise, theHitachi Group continues to develop as a general electrical and electronics manufacturer in a broad range ofbusiness areas. Our activities have been able to grow so
far because of the support from our stakeholders. Hitachi
has become what it is today through our cumulative efforts over the years to tackle challenges and respond to
the trust placed in us. Today, as needs continue to diver-4

Hitachi Group CSR Report 2005

sify, we are being called upon to create new value. For
example, I think the very role of a corporation should
be to take on challenges and resolve problems that cannot be easily resolved, oﬀering innovative life-enrichinganswers and new eco-friendly technologies.
Hitachi has accumulated know-how and technologies
over many years in a wide range of ﬁelds. It also has thepower of synergy. By utilizing these assets we will create
new value, venturing forward with new ideas to meet
our stakeholders’ expectations.
Our mission is to do things that only Hitachi can do, todo things that are possible only because we are Hitachi—
and to do this with speed. This message is the attitude we
express to the world in our corporate statement, “Inspire
the Next.” By taking on new challenges, we will continue
giving new life to the next generation, and will aim to create the comfortable society that stakeholders hope for.

All Employees Should Talk about CSR
and Demonstrate It at Work
Since its founding, Hitachi has worked to fulﬁll its corporate social responsibility in a wide range of areas. But
today we are still on the way to achieving this aim with
CSR. Our goal is for the Hitachi Group to be a global
leader in CSR. This starts from the humble and sincere
eﬀorts of every Hitachi employee acting as a memberof society and meeting customer expectations in goodfaith. If eﬀorts are stepped up, we will, no doubt, be able
to feel the recognition of society.
Above all, it is important for employees to see CSR fromtheir own point of view, to speak about it in their own
words, and to put it into action. In other words, it means
thinking, discussing, and above all, doing. It is about how
to promote CSR through one’s work, how to contributeto society, how to be useful to the world—whether talking
about the economic, environmental or social dimension.
When our 340,000 employees can all speak in their own
words about the desire to serve society, their feeling will
be conveyed to our customers and other stakeholders.
This report is a tool to help our stakeholders and us reacha common awareness about Hitachi’s CSR initiatives. I
hope that it will help to promote dialogue and further
enhance our activities.

New Group Management and CSR

Chair, CSR Promotion Committee,
Hitachi Group Executive Officer
and Director,
Hitachi, Ltd.

Isao Uchigasaki“Year One” of the Hitachi Group’s
New Management Structure
2004 could be considered as the ﬁrst year of Hitachi’s
new Group management. In April that year, Hitachi, Ltd.
established Hitachi Group Headquarters, the body thatcreates and implements management strategy to help
expand the synergy of the Group. This step was taken
for the Group, which is active in a wide range of businesssegments, to speed up its Hitachi-style group management, strengthening the will to consolidate management
while respecting the spirit of independent creativity.

Making CSR a Unifying Forcein the Hitachi Groupto realize synergy, while harnessing the uniqueness ofeach company. Above all, we believe it is important forcompanies to act voluntarily and proactively, rather thanhave policy imposed on them from above.

From Each and Every Action
Companies in the Hitachi Group will develop and implement their own CSR action plans reﬂecting the characteristics of their own business, and at the same timethe entire Hitachi Group will create and implement an
action plan. I think it is the most eﬀective approach thateach company and each person starts from what they
can do immediately around them. After each achievement we can then move on to the next challenge. This
steady accumulation of little successes is important. We
expect that the wisdom and experience gained through
CSR activities will soon be put to good use within thegroup, our society, and the world, and that these intangible assets will be passed on to future generations.
We, the Hitachi Group, intend to come together as one
to serve society by implementing CSR in all the areas
covered by our policy.

Hitachi Group Headquarters pursues group synergy
while focusing on planning, proposing, and implementing measures to continually enhance corporate value. In
June 2004, a CSR Promotion Committee was establishedwithin Hitachi Group Headquarters. Until then, companies in the Hitachi Group had independently conductedvarious CSR activities. In future, however, through thiscommittee we would like to make CSR a unifying force
for the entire Group by developing group-wide andglobal CSR activities. As a ﬁrst step, in March 2005 weformulated a CSR policy to serve as a common foundation for the group’s CSR activities.

CSR Policy of the Hitachi GroupThe CSR Policy of the Hitachi Group summarizes
Hitachi’s responsibilities in eight points covering aspectsof law, ethics, economics, and social contribution. The
policy clariﬁes the activity for each area, while keeping abalance between the economic, social and environmental dimensions that form the basis of corporate activities.
Based on the CSR Policy, the Hitachi Group is aiming

Message from the President

5

CSR Activities of the Hitachi GroupThe Hitachi Group believes CSR activities should be undertaken voluntarily.
In order to create an environment where this is possible,
in March 2005 we adopted the CSR Policy of the Hitachi Group.
By promoting CSR activities under this Policy,
the 1,152 companies of the Hitachi Group aim to be corporations
that will empower future generations.

The Hitachi Approach to CSR
Hitachi has always conducted corporate activities

Implementation System of
the Hitachi Group’s CSR Activities

based on its Fundamental Credo (adopted 1983,

In June 2004, the Hitachi Group Headquarters,

revised 1996), which is based on the founder’s phi-

responsible for the Group’s management strategy,

losophy—a “pioneering spirit” that always takes theset up a CSR Promotion Committee to address

initiative and works to overcome difficulties, “har-important group-wide items such as CSR actionmony,” which means acting together after an action

policy and planning. A CSR Promotion Team washas been decided through sincere discussion, andalso created at the same time, consisting of manag-“sincerity,” which means acting with a sincere spirit

ers responsible for CSR in various departments, infor everything and always considering others’ views.

order to execute the Senior Executive Committee’s

Based on this universal corporate philosophy, anddecisions appropriately and quickly. There is also ain order to meet the expectations of today’s society,

CSR Promotion Department responsible for overall

the CSR Policy of the Hitachi Group was formulated

coordination of these activities.

in March 2005. This policy, shared by the entire

Starting in April 2005, the CSR Promotion Depart-

Hitachi Group, will help to enhance our CSR activi-

ment will promote comprehensive activities group-

ties as we go forward.

wide, such as information sharing and discussions
about issues that are common throughout theGroup.

T O P I C S

Hitachi, Ltd. “Self-Evaluation on CSR Activities”
and Future Developments

Hitachi CSR Self Evaluation
Implemented October 2004

Collaboration with suppliersHarmony with community,
corporate citizenship

Workplace environment

100 Governance, ethics & compliance8060Enhanced brand value
40
200Communication

Enhanced customer satisfaction

In fiscal 2004, Hitachi, Ltd. conducted a self-evaluation,aware of the importance to have a good grasp of the stateof CSR activities on topics of concern for today’s society.
For this evaluation, the CSR Promotion Department
worked with an independent consultant to consider various
indicators, based on international CSR guidelines and SRI(Socially Responsible Investment), condensed these into
five indicators,* prepare a 382-question survey on seven
themes, and implemented the survey, which targeted the
CSR Promotion Team of each business unit. Our findings
indicated that we do not explain our approaches and policies relating to human rights clearly enough, and that weneed to make further efforts with our CSR activities at the
global level, as well as with policies and implementation in
supply chains. In the future, Hitachi, Ltd. will tackle thesepriority issues in earnest, and in collaboration with eachGroup company, will put more effort into creating an environment in the Group overall that will put voluntary CSR
activities into practice.
* Dow Jones Sustainability Indexes by SAM Indexes, CSR research by the EthicalInvestment Research Service, GRI Sustainability Guidelines 2002, etc. It should be
noted that because we have created independent indicators to evaluate ourselveson the environmental dimension (GREEN 21) (see p. 42), environmental topics
were excluded from this CSR self-evaluation.

6

Hitachi Group CSR Report 2005

Structure for Hitachi Group CSR Activities

President

Hitachi, Ltd.

SeniorExecutive
Committee

HitachiGroup
Headquarters

CSR
Promotion
Committee

Corporate
Communications Division
CSR Promotion Department(Secretariat)
Senior Executive Committee:
Decides CSR management policies at 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 each department.
Prepares, implements and follows-up
on detailed plans for CSR activities.

CSR Promotion TeamGroup Management,
Corporate Brand Management,
Customer Satisfaction,
Overseas Operations,
Employee Relations & Human Resources,
Legal Affairs, Corporate Citizenship,
Environmental Conservation, Compliance,
Quality Assurance, Procurement,
Public Relations

Business Group
Group directors,
CEOs, CSR promotionofﬁcers

Production
facilities

Affiliated companies
President
CSR promotion ofﬁcers

Affiliatedcompanies

Hitachi, Ltd. & 985 consolidated subsidiaries,
167 affiliated companies that use the equity method

Fundamental Credo
The basic credo of Hitachi is to further elevate its founding concepts of harmony, sincerity and pioneering spirit,
to instill a resolute pride in being a member of Hitachi,
and thereby to contribute to society through the development of superior, original technology and products.
Deeply aware that a business enterprise is itself amember of society, Hitachi is also resolved to strive asa good citizen of the community towards the realizationof a truly prosperous society and, to this end, to conduct its corporate activities in a fair and open manner,promote harmony with the natural environment, andengage vigorously in activities that contribute to social
progress.
(Adopted June 1983, revised September 1996)

CSR Policy of the Hitachi Group
1. Commitment to Corporate Social Responsibility (CSR)

The Hitachi Group, including all its executives andemployees, recognizes CSR as a vital part of corporate activity and is therefore committed to a courseof social responsibility in accordance with this CSR
policy for the sustainable development of society andbusiness.
2. Contribution to Society through our Business

The Hitachi Group will contribute to the building ofa prosperous and vibrant society by providing safe,
high-quality products and services through businessactivities based on its excellent research, technology
and product development.
3. Disclosure of Information and Stakeholder Engagement

The Hitachi Group will disclose information openly
and transparently in order to maintain and develop a
relationship of trust with its various stakeholders, andact responsibly towards them through various meansof communication.
4. Corporate Ethics and Human Rights

The Hitachi Group will undertake its business basedon the principles of fairness and sincerity, act withthe utmost respect for human rights and pursue ahigh sense of corporate ethics in the global businessmarket which encompasses diverse cultures, morals,
ethics, and legal systems.
5. Environmental Conservation

The Hitachi Group will strive to minimize environmental effects and utilize resources towards the development of a sustainable society that is in harmony withthe environment.
6. Corporate Citizenship Activities

The Hitachi Group will promote social contribution
activities as a good corporate citizen in order to realize a better society.
7. Working Environment

The Hitachi Group will make every effort to create apleasant and motivating working environment for all
its employees and to fully support those employees
who desire self-fulfillment and self-development
through their work.
8. Responsible Partnership with Business Partners

The Hitachi Group will make every effort to promote
fair and sound business practices among our business partners by fostering a common awareness ofsocial responsibility.
(Adopted March 2005)

CSR Activities of the Hitachi Group7

Corporate Governance and Group Management
Hitachi, Ltd. and each company of the Hitachi Group areaiming to enhance corporate governance.
We believe that speeding up management response-times,
and enhancing transparency will enhance the trust we receive from our stakeholders.

Governance System

Group Management

In June 2003, Hitachi, Ltd. adopted a new corpo-

The Hitachi Group includes a wide range of indus-

rate governance system. It includes the Committee

tries and types of businesses. In order to maxi-

System, the Board of Directors that adopts

mize their strengths while respecting each Groupfundamental management policies and super-company’s independence and originality, we will

vises Executive Officers’ execution of business, anddevelop relationships in the Group that will create

Executive Officers who are selected by the Board

synergy effects through collaboration. Through thisof Directors and charged with executing business

we aim to create new value.

in an expeditious manner. The 18 companies of the

In order to maximize the synergies of the Hitachi

Hitachi Group that are listed on the Tokyo StockGroup, in April 2004 we established the Hitachi

Exchange also adopted the Committee System,

Group Headquarters as a body to develop manage-

and are working to speed up their management

ment strategy. The Hitachi Group Executive Officers

and enhance their governance as members of the

manage the Hitachi Group Headquarters, andHitachi Group. Also, it was decided that the Board ofalso develop, propose, and implement policies to

Directors of Hitachi, Ltd. would establish the Group

continuously raise the value of each company in theManagement Committee, and it will complement

Group as well as the Group overall. With this new

the “decision-making and supervision of fundamen-

Group management structure, we are consciously

tal management policies” functions of the Board ofpromoting “strategically integrated management.”

Directors, by monitoring Group management overall
and making proposals to the Board.

Governance Structure of Hitachi, Ltd.
General Meeting of Shareholders
SelectBoard of Directors(14 members, including 4 from outside the company)

Audit Committee(5 members, including 3
from outside the company)

SelectNominating Committee(5 members, including 3
from outside the company)

Compensation Committee(5 members, including 3
from outside the company)

Supervise

Executive Ofﬁcers: Timely execution of company business8

Corporate Governance and Group Management

Compliance
Compliance with laws and regulations and acting with a strong sense of ethics
are the most fundamental elements of corporate social responsibility.
As a large share of work undertaken by the Hitachi Group involves public projects,
we are making efforts to enhance our compliance structure.

Compliance Structure

in October 2004 we expanded this system to accept inquiries or reports not only from all employees

The Hitachi Group has a strong relationship within Hitachi, Ltd., but also from former employees, associety, and the public component of our businesswell as employees of the entire Hitachi Group, sup-is large. We believe that it is important to uphold thepliers, and temporary staff, etc. Besides this, we es-

highest standards, to conduct ourselves with strong

tablished a system whereby employees can report

sense of ethics and justice, and to act as a model

directly to the Board of Directors, as Directors arecorporation in society, and that fairness should be

empowered to provide oversight of executive per-the standard for all conduct.

formance. In ways such as these, the entire Hitachi

In 2002, however, one employee of Hitachi, Ltd.

Group has been strengthening its institutional ar-

was charged with intervention in a public bidding

rangements and awareness, in order to prevent any

process, and three employees of a Hitachi Group

recurrence of compliance violations.

company were charged with bribery, and they were
found guilty by the courts. We recognize the serious-

Compliance Education

ness of this court judgment, and regret that internal

Hitachi, Ltd. is working to spread awareness about

controls were inadequate. In order to prevent any

compliance issues throughout the company. We

recurrence of this kind of incident, we are making

published the Ethics Handbook, which covers aan effort to strengthen everyone’s awareness aboutwide range of topics relating to compliance. Basedcompliance issues.

on this handbook, we are also implementing group

In 2002, we established the Compliance Division

trainings, as well as education based on e-learning

directly under the company president, with the prin-computer tools. Meanwhile, with the recent amend-

cipal aim of ensuring compliance in public bidding

ment of Japan’s Unfair Competition Prevention

projects, including bidding done by Group compa-

Law, we have been expanding our educational

nies. We also established an Advisory Committee

activities since October 2004 so as to prevent

to function as an oversight body, consisting ofbribery to public officials overseas, targeting Hitachi

external members. The Compliance Division is re-Group operations in Europe, China, Southeast Asia,

sponsible for education about compliance, and its

and the United States, etc. In the future, we will

coverage includes Group companies. It conducts

conduct education relating to Japan’s amended

regular audits of business activities. It also gathers

Antimonopoly Act, and the Whistleblower Protection

and provides information and educational material

Act in connection with its entry into force.

regarding new legislation and regulations, etc., forall employees in the Group, using the intranet and aCompliance training seminarin Malaysia

Efforts to Protect Personal Information

regular newsletter.

The Hitachi Group is undertaking the proper han-Another step we took is in the nuclear plant engineer-dling of personal information. Hitachi, Ltd. has foring field, one of Hitachi’s areas of business, due to themany years worked on privacy and personal data

highly public nature of the work. In October 2002 we

protection. We recently adopted a Policy on the

introduced a “whistle-blower” system in the Nuclear

Protection of Personal Information, and based on

Plant Engineering Department, and in November

this policy are revising the management systemestablished a Corporate Ethics Information Service

to protect personal information. We are proud toin that department. Taking this idea further, in April

report that the Information & Telecommunication

2003, we introduced a whistle-blower system for all

Systems Group, which often handles customers’

employees in Hitachi, Ltd. Also, in response to thepersonal information, has obtained the certification

enactment of Japan’s Whistleblower Protection Act,of the Japanese Privacy Mark program (JIPDEC).

WEB
Hitachi, Ltd.
For information on the protectionof personal information:
http://www.hitachi.com/privacy-e/Compliance9Dialogue with Stakeholders

CSR and Stakeholders:
A New Perspective to Make Hitachi Visible
and Transparent

Mr. Hatchoji: It was in 2004 that Hitachi as a grouprunning again quickly—within two hours if someone

really began its CSR activities in earnest. Since it

was trapped inside, and within 12 hours if not. For

was founded, Hitachi has emphasized “contributing

a speedy response, the construction of a disasterto society through technology” as part of its basic

information system is essential. But besides having

philosophy, and has always acted with a strong

such a system in place, it is also important that eachawareness of its responsibility to society. But today,and every employee be able to judge immediately

it is important to consider how society looks at thewhat he or she should do, and then be able to takeactivities of Hitachi, to take a fresh look at things fromaction quickly. Although observers may take a quicka CSR perspective, from the stakeholder’s point ofresponse for granted, I believe this is an area inview. With others, I share responsibility for promoting

which we can be proud and confident.

CSR at Hitachi, and as we value the opportunity toContinuity in CSR is also important. Hitachi has six

have a dialogue with people who are on the leading

foundations, and they are running various programs.

edge of CSR issues, we have been holding regular

For example, one provides research scholarships

meetings like this one with you today.

for young scientists, and another brings young university instructors from southeast Asia to Japanese

Takashi Hatchoji
Hitachi, Ltd.
Senior Vice President
and Executive Officer
Vice-Chair,
CSR Promotion Committee

Mr. Kawakita: I understand that Hitachi provided

universities to study in PhD programs. We have al-heavy equipment as part of the rescue operations

ready been doing this for over twenty years, and not

after the terrorist attacks in the United States in

only is there a growing number of former scholarship2001, and medical X-ray equipment during SARS

awardees who are now doing outstanding things inepidemic in Asia. It’s commendable that you attheir careers, but some of their students are now

Hitachi have the attitude of doing what you can to

applying for the program. Business has its ups andhelp, in ways that relate to your main business. And

downs, but we feel that in programs like these it’s

it also proves that Hitachi has a good balance ofimportant to offer continuity over the years.

initiative at different levels of management.

We Are Proud of our People’s
Competence to Act Quickly in Disasters.

Future Social Contribution Programs:
Long-Term Perspective, Hitachi Style.
Mr. Kawakita: I understand that the reason for

Mr. Hatchoji: We always feel that we want tothose responses and activities is the corporate cul-

contribute to society, and we have accumulated

ture that has been inherited over the years. In 2010,

a lot of practical experience which we can offer. I

Hitachi will celebrate its 100th anniversary. What will

think our responses also reflect the fact that we areyou be focusing on five years from now in terms ofoperating businesses that support the infrastructure

CSR, or even further into the future?

of society. The year 2004 was a year of natural di-10

sasters. When one occurs, we always ask ourselves

Mr. Hatchoji: This may seem a bit abstract, butwhat Hitachi can do. For example, when a large

what we aim for is good dialogue with society, andearthquake occurs, it is important to check whether

to provide the kind of value we can deliver from ouranyone is stuck in an elevator or whether any eleva-

human capabilities—that is, knowledge and experi-

tors have stopped between floors, and then quickly

ence. For example, education is one of the main

start the recovery efforts. After the Niigata-Chuetsu

areas of the Hitachi Group’s social contribution ac-

Earthquake on October 23, 2004, 4,000 elevators

tivities, and we are currently working on some ideas

stopped operating in Japan, including as many as

to go further in this direction. For example, it would

2,600 in the Chuetsu region alone. But we had thembe great if we could offer a program in which Hitachi

Hitachi Group CSR Report 2005

Hatchoji volunteering at farm work with other employees

employees—including the more than one thousand

Mr. Hatchoji: On this point, the business activities

people who hold PhDs—were to go to primary andof the Hitachi Group are very diverse, and we re-junior high schools and speak to the children about

spect the independence and originality of manage-

the joys of research and learning. We would like toment in Group companies. This diversity may havemake more plans about a variety of possible activi-

made it difficult to picture one “face” for the Group.

ties, with a long-term perspective.

Because of this, we have created a Group headquarters structure with the aim of manifesting the

Mr. Kawakita: Hitachi also claims special talent insynerg or collective power of the Group. Meanwhile,merging knowledge and experience and presenting

we are also promoting visibility on the ground. For

new ideas to society—particularly effective in theexample, as a part of our hiring activities, we ran aarea of environmental protection activities.

program in which we had employees meet as many
students as possible, to help them understand ourMr. Hatchoji: Hitachi is a manufacturing company,

business through direct dialogue. A key slogan

and that is an important point. Regarding the globalof this program was “I believe in the future, so I’llenvironment, we would like to apply the use oftake action this year. I will do it.” We encouraged

technology, and make a contribution by merging

employees to be aware that “Employees represent

three core concepts—manufacturing, technology,

Hitachi and speak of it in the first person,” and toand the environment. As one example, in 2004 we“Tell openly about Hitachi as it is,” and “Express

created what we call an Integrated Management

pride in your work.” When the employees met with

System for Chemical Substances Contained in

the students they spoke their own minds, and spoke

Products. It traces the movement and numbers ofwith passion.

Hideto Kawakita
Representative of the
non-profit International
Institute for Human,
Organization and the Earth(IIHOE)

materials, products, etc., and helps to keep trackof chemicals subject to government regulations. For

Mr. Kawakita: It’s admirable that they spoke in thethe immediate future, we will use this system forfirst-person “I,” rather than about “my company.” This

the more than 1.5 million types of components thatwould be a good CSR slogan for you, wouldn’t it?

the Hitachi Group handles, but in the future, we’dlike to consider expanding the scope of this system

Mr. Hatchoji: Yes, that’s right. With big organiza-

in cooperation with other companies. The bottom

tions, there is a tendency to project the image thatline is that we want to do our best at creating thesome faceless person is doing the work, but I’d likeinfrastructure for a sustainable society.

to project the image of people saying “Hey, it’s me“I believe in the future,
so I’ll take action this year. I will do it.”doing the work!” Hitachi’s CSR activities really begin
with attention to the details, and with each person
sincerely doing his or her part.

Mr. Kawakita: 1.5 million is a huge number. In recent years, Japanese corporations have been putting a lot of effort into enhancing their governanceand compliance systems, because people wantcorporations to be more transparent. At the sametime, in Japan, we are moving beyond a process of
putting into writing the rules that may have simply
been taken for granted until now, and toward a styleof CSR that has a more human face.

Young employees conveyed the“Hitachi” spirit by wearing this card
1) Employees represent Hitachi andspeak of it in the ﬁrst person.
2) Tell openly about Hitachi as it is.
3) Express pride in your work.

Dialogue with Stakeholders

11

HITACHI CSR Activities“Society changes. Hitachi transforms it.”
Our commitment to corporate social responsibility is
an integral part of this message.
At the Hitachi Group, we consider our business activities
themselves to be CSR activities.
This attitude has continued through the years
like roots that bind the Group together.
For the next generation, we will work to create a better world,
and want to build relationships of trust with society.
In this section, we present some of the ways
we are taking up the challenge to create that better world.

Our vision is
to create richer lives and a better society
by providing products, systems, and services
with a new level of value and potential
based on the latest advances in technology,
especially knowledge and information technology.
Our mission is
to identify the real needs of society and our customers
and to set and achieve goals that surpass those needs.
We develop and apply new technology
without being bound by traditional thinking.
We focus our eﬀorts on the ﬁelds of communications and services.
We are willing to venture into new business areas.
As a good corporate citizen, our goal is the harmonious coexistenceof environmental preservation and economic growth.
The value we intend to foster and build upon isthat of a company trusted by customers and society,a company fully responsible for its actions.
We oﬀer a wide range of complex systems
using our knowledge and technologies to meet speciﬁc needs.
Our goal is to oﬀer the most complete systems solutions
that will work over the long term for society as a whole.
Hitachi intends to be the catalyst for a changing society.
As society changes, so will Hitachi(Hitachi Brand Strategy)Mubarak Pumping Station

CSR Activity 1

Using Technology to Contribute toSociety Internationally and Make Dreams Come True:
Construction of the Mubarak Pumping Station

Infrastructure for 3 Million People
The Mubarak Pumping Station was constructed
between 1998 and 2003. Egypt is 2.7 times thesize of Japan, but much of its land is covered in

the same as the area of Tokyo. There are plans forthree million people to settle here. In short, the hugescale of this initiative is difficult to imagine.

Humble Beginnings in the Deserttion were drawn up more than 30 years ago. The

River. The government of Egypt has planned many

Hitachi Group has been supplying pumps for drain-

projects aiming to expand the vegetation cover inage and irrigation construction work in Egypt since

the country. The Mubarak Pumping Station is one

those times. Generally, the pumping equipment isof those projects. Bearing the name of the president

installed after the construction has been completed,of the country, it is literally the largest state projectbut in this case, President Mubarak suggested thatin Egypt.

it should be an international project, with the design

Located along the shores of the Naser Lake, whichand construction of the pumping equipment done

was created by the construction of the famous

simultaneously with the main structure over a short

Aswan Dam, this pumping station is a project inperiod of time. For Hitachi, this was an exciting en-

which Hitachi, Ltd. installed 21 large vertical cen-gineering challenge and opportunity to use its many

trifugal volute pumps with the capacity to draw 29

years of experience.

million cubic meters of water per day and supply it

Because of the large responsibility and risk of thisto the desert area. About 2,250 square kilometers

project, Hitachi organized an international consor-of land are to be greened through this project, abouttium that included respected British and Egyptianr

ive

the land area, mostly along the banks of the Nile

Arab Republicof EgypteR

The original construction plans for the pumping sta-Nildesert, and vegetation covers only about 6% of

Cairo

Mubarak
Pumping
StationHITACHI CSR Activities

Aswan
Lake Naser

13

pact, ensuring adequate space for operations andmaintenance, and, considering Egypt’s economic
conditions, made a major effort to keep costs as
low as possible. We were able to conduct most of
the manufacturing of pump casings by cooperating with factories in Egypt, and were also able toensure local employment and contribute to technology transfer. Until then, Hitachi had supplied many
projects overseas. In this case, in order to ensure
the same performance and quality as equipment
manufactured in Japan, we exported about 1,000
tonnes of steel, and dispatched personnel to Egypt
where they stayed for one year to offer detailed
technical instructions. As a result, we were able toEgyptian technicians went to Japanfor training. Shown here with Hitachi
workers.

achieve our original objectives of ensuring quality
companies. Hitachi was responsible for machinery

while also helping to transfer technology to local

and electrical systems engineering and the supply

people. What we really note about this work wasof all equipment.

the accident prevention at the work site. The work

There were no roads before the project began,went ahead under harsh conditions that are difficult

and the camp site was a harsh environment, withto imagine in Japan. With this as well, we usedtemperatures above 40°C, as well as scorpions

Hitachi experience and instituted thorough strate-

and poisonous snakes. About 20 people from thegies and measures to ensure safety and health. The

Hitachi Group stayed at the camp, but at its peak,

project had no comparison anywhere in the world,

we were living together with about 3,000 others

and many people doubted whether it would pro-from England and Egypt. We started our main work

ceed according to plan. But we were able to makeon the project here in 2000 and stayed until June

things work and complete the project in five years.

2004, coordinating work within the consortiumThat was the result of fine teamwork.

on-site in Egypt, and giving guidance for the local

What we always felt in the land of Egypt was the

manufacturing and installation process.

respect for water. Many developing countries in

A Focus on Cost Control,
Technology Transfer, and Safety
We made use of the experience Hitachi has cultivated in pump manufacturing over many years, andgave special attention to making everything com-

Asia and Africa need water resources. and we thinkthat the Hitachi Group could make a contribution
to those countries. This project gave us a strong
desire to do more.
Hitachi Group Project Teamfor Construction of the Mubarak Pumping Station

CSR Activity 2

Managing the Flow of Chemical Substances
Through the Entire Product Life Cycle:

Integrated Management System for Chemical Substances Contained in Products
For corporations engaged in global activities, responding to new environmental regulations is anurgent requirement—for example, the European
Union’s RoHS Directive,† which comes into effect inJuly 2006, and the WEEE Directive, which requires

14

With “Environmental CSR-Compliant
Monozukuri (PLM and Total SCM) Standards”
We Can Identify Critical Points
in the Entire Process Where
the Environment Should Be Considered

the separate collection and recycling of used prod-

We took a new look at the concept of manufactur-

ucts. Hitachi started in 1998 to take steps toward

ing in the entire Hitachi Group, and in 2004 adopted

the complete elimination of the targeted substances.

“Environmental CSR-Compliant Monozukuri (PLM

And now we have gone a step beyond the idea ofand Total SCM) Standards” (PLM for product life-

simply complying with environmental regulations.

cycle management, and SCM for supply chain man-

We think that if we create versatile and robust

agement). We are applying this idea to the entire lifemechanisms, we can not only compensate thecycle of products (both hardware and software) andcosts of a series of activities but also generate newservices—by clarifying the duties and key points

value.

for the environment in each process of corporate

Hitachi Group CSR Report 2005

activities—including management, planning, design

each customer, it is difficult to get an exact number,and development, procurement, manufacturing,but each model will contain about 2,000 kinds of

distribution, use, recycling, and waste disposal. In

parts. At the design stage, parts that are not on thethe midst of all that, the system we created with

Hitachi Group’s prohibited substances list will bea view to dealing with chemical substances was

selected and approved from a list of suppliers.

the Integrated Management System for Chemical

When the parts are received, we receive data about

Substances Contained in Products. In terms of

the parts from the suppliers, as well as a declaration

chemical substances, in this system there are 13

stating that the parts contain no substances subject

groups of prohibited substances, including lead andto controls. Then, using those parts, the section in

cadmium, and 12 groups of controlled substances,charge of manufacturing makes a product.

including antimony and arsenic, etc.

For the finished product, a unique manufacturingEntering the necessary data into this system at eachnumber and all the parts data are attached to theprocess, allows integrated data management andrecord, and all the data is centralized by a newly

product traceability—it includes not only the man-established system. Then, the chemical substanceagement information on materials and ingredients

content of not only the parts but also the entire

used, but also integrates purchasing information of

product can be calculated, and after confirming thatmaterials and parts.

it does not exceed the regulated limits, it can be de-Over 7,000 Suppliers, 1.5 Million Parts

livered to the customer. Later, when the customer
makes changes to the product, such as expansion

Behind the creation of such a system was the di-or maintenance, on each occasion the data can beversity of business activities in the Hitachi Group.

recorded and updated.

The Hitachi Group is comprised of about 1,100
companies in an extremely wide range of businesssectors, from advanced materials and components,

Expanding to All Group Companies
by June 2006

to consumer products and infrastructure systems

At the Disk Array Systems Division, since April 2005

for society. In one year Hitachi Group handles over

we have started a phase-in period for the new

1.5 million types of parts, and procures parts andsystem. In June 2005 we started introducing thematerials from over 7,000 suppliers worldwide. At

system to Group companies, and by June 2006, we

the same time Hitachi is a supplier of products foraim to complete the process. When all companies

many other companies.

in the Group are using the system, there will prob-

This is a complex situation, and in order to have

ably be 3,000 to 4,000 people per day using it on

Toshihiro Tsukishima
Production Planning Department,
Disk Array Systems Division,
Hitachi, Ltd.

proper management of chemical substances within
the Group, it was necessary to create a completely
new structure, considering the flow of everything, in-Integrated Management System for Chemical Substances Contained in Products

cluding products and services. It is not easy to imag-

Corporate section

ine the scale of this system, but once the system is inplace, data gradually accumulate, and ultimately thisSharing ofingredient
info

will become the strength of Hitachi. Once the system

A Gree’ Net
Component
content info

is functioning smoothly, it will be possible to share

Environmental
CSR Database
Total amount ofchemical substances
received and shippedby business units

Provision ofingredientinfo ofproduct
shippedsome of this know-how with other companies.

Array Systems Division, where the system has

Customers/Society

Here we examine a concrete example in the Disk

Suppliers

Ongoing Input and Checking

Ingredientssimulator

Business area
Example: Disk Array Systems Division

already been installed. RAID is the acronym for
Redundant Arrays of Inexpensive Disks, and it isDevelopment of products
not containing
hazardous substances

Shipment of products
not containing
hazardous substances

amounts of data, by companies and organizations

Parts
composition
info

Individual
product control
data warehousethat support the infrastructure of the information

Designa system that uses technology to manage multiple
hard disks and combine them into one unit. This isbeing used as a storage system to accumulate huge

Provision of
info about
shippedproducts

society, such as airlines, finance, energy, medical,
and government. Hitachi storage products using
this system are being used by companies aroundthe world, including the United States and Europe.

Purchase ofmaterials/parts
not usinghazardous
substances

Purchasehistory

Assembling andprocessing
history

Materials

Manufacturing

Shipment
history

Sales/maintenancehistory
Sales, maintenance

It is a collection of hard disk drives. Because thisproduct is customized depending on the needs of
HITACHI CSR Activities

15

average. If you total the inputs of each person, it will

have gotten closer to what society expects of us.

be easy to see the amount of chemical substances

As for the challenge to increase transparency, wewere used by the entire Hitachi Group. Meanwhile,

will develop and sell products that do not containif a problem arises, within 48 hours we will be able

hazardous substances, and these will accelerate

to determine the extent of impacts.

Hitachi’s environmental activities.

Through this system, it will be possible to verify
Hitachi’s activities. In that sense, We think that we

Environmental CSR Monozukuri Project Members,
Hitachi GroupCSR Activity 3

Tackling Things from the Perspectiveof Social Responsibility:

Elevators
Terminals

Universal Design at HitachiControl anddisplay screens
Rail cars andtransportsystems“No one is 100% physically challenged. And no
one is 100% healthy. Everyone is challenged
in some parts of their body or their mind,

PublicHome appliancesand has healthy parts at the same time.
Information

Universal design is for everyone to leadaffluent and comfortable lives.”
Those are the words of His Imperial

Home

Universal Design by Hitachi

Highness Prince Tomohito, Patron of the*1. International Association for
Universal Design is an organizationof experts from industry andacademia, established in November
2003. Hitachi, Ltd. is currently
serving as the chair of its Board of
Directors.
WEB
http://www.iaud.net/en/index.html

International Association for Universal Design,*1 atcomes out and is used everywhere in daily life in

the time the organization was launched. Hitachi also

Japan, in things that change in size, move, or haveparticipates in this organization. In his words weflexible uses—examples include the furoshiki (a cloth

sense that we should have a fresh look at society,to wrap things in), the sensu (a folding fan), or thefrom the perspective that no person is perfect, andfusuma (sliding doors). UD could also be describedeveryone feels some kind of obstacle in daily life.

as a concept that makes manufacturing one of thisThis is About Being Human-Centered

Hitachi Group
Universal Design Guidelines

UD also happens to overlap with Hitachi’s view ofEven if we’re not normally aware of obstacles, if we

the world. Hitachi has always had the goal of con-have a fresh look at modern urban living, we will no-tributing to society through technology as part oftice that various obstacles are there. For example,

its mission—but at its core is the “human-centered”

just placing an ashtray below the call buttons in an

approach. We don’t see UD as a new concept,

elevator lobby will probably create an obstacle for abut rather, as an opportunity to have a fresh lookperson in a wheelchair. For non-Japanese in Japan,

at things from the human-centered perspective andindicators and instructions printed only in Japanese

to learn something new. And we are working toare a barrier. So are huge product manuals thatdeepen that approach.

overwhelm users with detail.
*2. Universal Design: A concept
proposed in the 1980s by the lateRonald Mace of the University ofNorth Carolina. He expressed theidea of “designing products, buildings and spaces so that as many
people as possible can use them.”country’s strengths.

In short, Universal Design (UD)*2 is not some special

Responding to Diverse Needs

discovery or revolutionary technology, but rather a

The Hitachi Group is involved with everything fromconcept that we should introduce into the design of

the appliances around us in our homes, to infor-products and services—the concept that everythingmation services, and basic infrastructure such as

should be easy to use for everyone.

public services, in other words—society and living.

Actually, long before this term was born, the con-

It is exactly because the customer base we serve is

cept of UD was already deeply rooted in Japan. Itvery broad, and the social aspects of our businessare major, that we would like to see UD from theperspective of social responsibility.
As concrete activities for this, we are pouring ourefforts into basic research, product development,
employee awareness-raising, networking and information dissemination.
In terms of basic research, we are conducting research into visibility, and are preparing guidelines on
indicators of visibility. In terms of product development, from home appliances to major infrastructure

16

projects, we seek the cooperation of the actual

International Association for Universal Design, tousers, and conduct research such as by using

create networks, and to spread information.

monitors to report their experiences, and evaluation

UD is an initiative to respond to the diversity of needs.

testing. In terms of awareness-raising activities, weJust as it is difficult to satisfy every person, this UD

conduct various activities aiming to have people

is an activity that has no end. But little-by-little, we

understand the principle of UD, such as offering

can get closer to the environment that we seek. We

employees the chance to use kits that simulate theare hoping that through these activities to increase

experience of being an elderly person. We also offer

the number of satisfied people, some day, in Hitachi

education programs, and workshop for customers.

and indeed, in society, the thinking behind Universal

We have created a database with a variety of know-

Design will become the normal way people always

how and basic data. And, as mentioned earlier, we

do things.
Design Division, Universal Design Groupare working with other organizations, including the

Mitsuo Kawaguchi
Board Director & General Manager,
Products Planning Division,
Hitachi Home & Life Solutions, Inc.
Chairman of the Board of Directors,
International Association
for Universal Design

CSR Activity 4

Workplaces that Thrive with Diversity:
Promoting Employment for the Physically Challenged
The legal quota for private sector companies inJapan for the employment of persons with dis-

Tackling the Issues of Society

abilities is 1.8% of the workforce.*3 But for regular

To begin with, we sought out opportunities to meetcompanies, the average is actually only 1.46% (ac-challenged persons by going for interviewing ses-cording to Ministry of Health, Labour and Welfare,sions organized by public employment security

June 2004). One of the major obstacles to promot-

offices, and by getting referrals from regular anding their employment is the difficulty in matching thevocational schools for the challenged. Second, we

person with the work.

dealt with the “soft” institutional or human aspects*3. Law for Employment Promotion,etc. of the Disabled. Companies
with at least 56 full-time workers
are subject to the law. The target
employment ratio for persons withdisabilities is 2% for quasi-governmental organizations, and 2.1% for
the national and local governments.

that are more difficult than the “hard” physical issues
In June 2003, at Hitachi, Ltd., the employment ra-

like ensuring barrier-free access to the workplace.

tio of challenged persons fell to 1.66%, below theWe set up trainings to address their concerns andquota. Though this is due to personnel movement

gave career advice to the newly-hired challenged

by corporate restructuring, including the selling-off

employees. At the same time, we started trainingsof some business units, we could not ignore thefor their managers. Third, we carried out an intern-fact. As a result of redesigning our hiring plan andship to take the initiative and show the leadership,

speeding up the process, we soon made 63 newwhich successfully led to hiring a blind but talented

hires and achieved the rate in six months. However,student. This effort has just begun. But the staff inthis alone is not our goal. Considering that employ-

her department has been inspired by her enthusi-

ment for the challenged is a topic of concern in

asm and ability. “When the world changes, we want

today’s Japan, we need to think what we should do

it to be Hitachi that changes.” We are determined

to make Hitachi an attractive and easy place to workto put this challenge into practice when it comes tofor them. About 40,000 employees work for Hitachi,

employment for challenged persons.

Ltd., and about 340,000 for the Group companies.
This means that our society may change, if Hitachi

Satoshi Fujiwara
Employee Relations &Human Resources Department
Hitachi, Ltd.

Satoshi Fujiwara, Employee Relations &Human Resources Department, Hitachi, Ltd.

changes.
V O I C E

My Experience at Hitachi
Even if there are arrangements for hiring persons with disabilities, generally they are only for people with minor disabilities. I think the hurdles are higher for people with more
severe disabilities like me—I’m totally blind. But Hitachi accepted me enthusiastically. To be honest, I do have someanxieties. And it’s not just me. I think the people around me
have some concerns too. But if we make an effort to communicate straight with each other, I think we can resolve
problems that arise.
Right now, most of my work involves administrative tasks
that I can do using a computer with speech recognition

software installed. And the communication with others has
become smoother. For example, since I can’t see, whensomeone points and says “that over there” and “this here”
it means nothing to me. So we’ve started confirming what
we mean, when necessary.
But in any company, at some point you have to deal witha lot of paper, and that’s difficult for me. Converting things
to Braille involves costs, so I would like to take the initiative
and think about ways to overcome this problem.
My objective is to make use of the fact that I have a disability and offer some ideas for product development or forsociety. I want to do my best.

Aya Onoyama
Employee Relations &Human Resources Department
Hitachi, Ltd.

HITACHI CSR Activities

17

CSR Activity 5

From Small-Town Factory—A Wish for a Peaceful World:

A Story of the Development of Demining Equipment
The first time I saw the horrors of antipersonnel
landmines was on a business trip to Cambodia in
1994. We are told that there are 110 million buried
landmines worldwide today, and there are another

Kiyoshi Amemiya with children in Afghanistan

250 million landmines in inventories. This is like adevil’s weapon that can be purchased for only about

involved danger. “Even for a small-town factory

three dollars, and they are increasing in number by

there’s a way to contribute something to the world.

about 20 landmines every day.

Please help me battle the world’s landmines,” I said.

In Africa one person is injured by a landmine every

And my employees and their families responded

twenty minutes. In Afghanistan, four children underpositively.

the age of sixteen die every day, and four are injured.

Required was the strength that can withstand a

In Angola, landmines are buried in an area covering

blast at 1000°C. So was the durability to handle

420,000 square kilometers, larger than the landrocks and bedrock. After a difficult process, wearea of Japan. The reasons for so many children

completed a pilot machine four years later. At theamong the victims are that, first of all, children arehead of an excavator, we had attached a rotatingcloser to the ground and more likely to be injured

high-speed cutter. It took another two years, but wein a blast, and second, they try to pick them up,

finally completed the world’s first landmine removal

attracted by their colorful appearance and shapes,

machine that could be controlled remotely.

mistaking them for toys.

Safe and effective, these machines have the poten-

And kids can’t read the letters spelling “danger.”tial to get rid of all of the buried landmines withinChildren lose arms and legs during their growing

fifty years. To date, through the Japanese govern-

years, and then they are wracked by unimaginable

ment, we have supplied 50 machines to the United

pain. Artificial limbs can cost $3,000 each.

Nations, non-governmental organizations, and gov-

1,000 Years by Hand, 50 Years by Machine
Landmines can be lethal for more than 50 years.
Removing them by hand means risking your life. Not
only that, it would take a thousand years to remove*1. Excavator by Hitachi
Construction Machinery Co., Ltd.
(Yamanashi Hitachi Construction
Machinery Co., Ltd. became an
exclusive dealer and authorizedfactory of Hitachi Construction
Machinery Co., in 1980.)

ernments in a total of five countries. In 2004, theysucceeded in removing more than 4,000 landminesin Afghanistan, and 8,000 in Nicaragua.

Creating Self-Sufficiency

them all. I heard these facts on my flight back from

Without removing landmines, you cannot invest in

Cambodia, and simply could not hold back my anger.

farming and building schools. The world may be in-

Then I had an idea—to modify the excavators*1 thatterested in the countries like Angola, rich in mineral

my company handles, and turn them into machinesresources, but landmines are an obstacle to their

to remove and destroy anti-personnel landmines. I

future. One thing that we gave special consideration

made a promise to myself to work on this idea, andin our design was to support the self-sufficiency

as soon as I returned to Japan I created a projectof local people. We help by providing technology

within the company. But what can a company withtransfers for machinery operation and maintenance,

only 60 employees accomplish? And this workand the machine itself is designed to be versatile.

Landmine removal test, Afghanistan

By changing the attachments, the people can use
this machine for more regular work. For example, ina Nicaraguan village, an area where the landmines
had been cleared away was cultivated and restored
as an orchard. Today, the village ships 600,000
cases of oranges every year.
We worked very hard for ten years to make a contribution to the world, but at last I feel like this effort isgetting some attention. In the future, I think that thepotential of this equipment will grow globally.
Kiyoshi Amemiya, President,
Yamanashi Hitachi Construction Machinery Co., Ltd.

18

Hitachi Group CSR Report 2005

Creating the Future with Our Stakeholders

19

next society

Customers, Society and Hitachi
The Hitachi Group believes it is essential to conduct all of our corporate activities
based on an understanding of the perspectives of our customers.
We make an effort to find out what our customers desire from us.
Then, to help realize a comfortable and secure society,we employ all the know-how of the Hitachi Group to develop new possibilities.
We not only contribute to society through our business operations,but, based on recognition that corporate citizenship is also an important part of our activities,
the Hitachi group as a whole also pursues activities such as promoting involvement
in local communities and assisting with disaster relief.

Hitachi Group covers a wide range of ﬁelds, includContributing to Society throughthe Combined Energies and TechnologicalInnovations of the Hitachi Grouping electronics, nanotechnology and biotechnology—always with a view toward the prosperity of
future generations. We are expanding that research

In keeping with the founding spirit of Hitachi, Ltd.,as businesses that provide solutions to support

the ongoing mission of the Hitachi Group is to “con-essential functions of the new era—such as gene

tribute to the creation of a comfortable and secure

diagnosis, through which DNA analysis technolo-

society.” This is what drives us to create new value

gies are expected to play a major role in the medi-

for our customers worldwide. Put another way,

cal ﬁeld in the twenty-ﬁrst century, and biomedical

Hitachi has grown and developed due to our com-businesses. Or key devices such as IC cards andmitment to understand the relationship between ourradio IC tags that can be used to conﬁrm individual

customers and society.

identities, bringing safety, peace of mind and con-

By creating products that exceed our customers’venience. And networked systems that tie these

expectations, we are able to respond to the trust

technologies together. We believe there are many

that customers place in us. The Hitachi Group’s

solutions we can provide that can help solve various

value derives from providing satisfaction and well-challenges in society, and contribute to the happi-

being to society through our diverse corporate

ness of people throughout the world.

activities.
The world continues to experience dynamic changes.

Customer Satisfaction—Reflecting Customer Views in Our Operations

To respond to the pace of today’s changes, we must

*1. The “μ-chip,” a 0.4-square-millimeter integrated circuit chip, oneof the world’s smallest contactless
IC chips. The chip was recently
used in the admissions tickets tothe 2005 World Exposition, Aichi,
Japan.

“Hitachi Exhibition–China 2004,”
a showcase highlighting the combined strengths of the Hitachi Group,
was held in October and November
2004 in the three Chinese cities of
Beijing, Shanghai and Guangzhou.

try harder than ever before. Therefore, the Hitachi

What Hitachi values most is to take action based onGroup—while respecting the individuality of eachan understanding of the views of our customers. In

Group company—works to strengthen interlinkages

all our products, however small or large—from thebetween each company, to make the most of our

0.4-square-millimeter “μ-chip”*1 to nuclear power

combined strengths. Our aim is to be a company—

generation equipment—Hitachi is always consid-

with a pioneering spirit, and advanced and wide-

ering how to create unlimited value, satisfying ourreaching technological capabilities and ideas—that

customers, and even our customers’ customers.

creates the right solutions, in other words, products

Without such a frame of mind, we cannot createand services that are unique and that bring satisfac-

valuable solutions.

tion to our customers. For the Hitachi Group, theWe also strive to incorporate the views of cus-essence of our corporate social responsibility is to

tomers into our operations. Within each area ofcontinue providing those solutions.

operations of the Hitachi Group, we maintain “callLeading-edge research and development by thecenters” which respond to inquiries and requests
from customers and address urgent requests. The
views provided by customers are reviewed by committees composed of the management, including
the president, and are reﬂected in product development as well as ongoing improvements made to our
products and services.
The expectations and critiques of our customers provide us with valuable input. For example,
the customer consultation “call center” of Hitachi
Home & Life Solutions, Inc., which handles home

20

Hitachi Group CSR Report 2005

next society

appliances, receives some 400,000 telephone calls

have been possible with existing drum-style wash-

each year. One of these calls was from a user of ourers. We needed to develop technologies based on

cyclone vacuum cleaner, who pointed out that thecompletely new ideas. Thus, Hitachi developed

lamp indicating a blocked dust ﬁlter seemed to light

three new technologies: the “Beat Wing” pulsator,

up prematurely. This issue was swiftly addresseda water-circulating pump, and a new drive mecha-

at a meeting, and improvements to the productnism that provides high torque. The result was awere undertaken. We were able to improve theleap in innovation.

product, so that ﬁlter cleaning became easier, while

We also worked to create a design that makes thestill maintaining the powerful dust collection ability

unit easier to operate, easier to remove dried clothes,of the unit.

and easier for users to see everywhere inside theunit. Our desire to please our customers spurred us

Technology to reduce filter blockage

to develop our own innovative technologies.

Spiral wire

Quality Assurance
Quality First

Anti-bacterial HEPA
clean dust ﬁlter
Power cord

Hitachi, Ltd. began with the development of Japan’sﬁrst ﬁve-horsepower induction motor. Throughmanufacturing a long-lived product that supported
Cyclone vacuum cleaner“Tatsumaki Cyclone”
Model: CV-SH10

heavy industry, we learned that reliability is theDust falls to the bottomof the dust case

Cord reel

When the power cord is used, the cord reel and the spiral wire
both turn, which vibrates the anti-bacterial HEPA clean dust ﬁlter ,automatically making the dust fall. Since this continually reduces theamount of dust on the ﬁlter, the ﬁlter blockage lamp will light up properly.

Enhancing Creativity

most important thing in making products—and welearned just how important it is to uphold the qualityof our products. Ever since then, we have believed

The Hitachi washer-dryer“Beat Wash”
Model: BW-DV8E
Bright Silver (S)wholeheartedly that the key to making ﬁne products
is reliability; quality assurance has thus become ournever-ending goal. As our business has diversi-

In developing products, feedback from customers

ﬁed—so that our operations now extend around theprovides a valuable source of creative ideas. When

globe—we have become even more conscious ofit comes to product development, it sometimes

this fact, making the pursuit of quality central to all

seems that dramatic advances happen once every

our corporate activities.

ten years, but even these advances are the result of“Quality First” is a basic principle of the Hitachi

an accumulation of ideas in response to day-to-day

Group. The quality of our products is assured fromfeedback from customers.

the planning and design stage, and our manufac-

For home appliances, in particular, it is essential toturing and inspection processes eliminate potential

accurately grasp the needs of customers, due to a

defects. We believe that good products result fromwide variety of customers’ needs.

good work processes, and so our comprehensive

Hitachi’s “Beat Wash” washer-dryer, launched inquality assurance system is reﬂected in the stan-

2004, incorporates three new technologies, eachdards, processes, and quality assurance reviews wedeveloped as a result of feedback from customers.

conduct at every stage of our operations, including

Customers wanted a washer dryer that washedproduct planning and design, manufacture, inspec-

clothes cleaner, yet used water more economi-tion and shipping. The quality assurance activities ofcally compared to previous models. They also

the entire Hitachi Group are beneﬁted through thewanted clothes to dry more quickly, and with fewer

mutual sharing of best practices and the process

wrinkles. To meet all these demands would not

improvement studies we conduct.

TIBMMPX
MPX

The shallow-tank and easyunloading design allow users toremove clothes easily.

Customer, Society and Hitachinext society

21

tion from the perspective of customers, giving the
Quality Assurance Activities
within the Hitachi Grouphighest priority to the customers’ beneﬁt. We callthis attitude—in which we study all incidents and

The Hitachi Group implements a wide variety ofwork to ensure that they do not recur—“quality

concrete activities to assure the quality of ourgleaning.” This helps us to prevent accidents.

products. Here we introduce some of the Group’s
quality assurance activities.

We believe that an attitude of continually gleaning
lessons from any incidents that have happened will

Product Safety Activities

help lead to customer satisfaction, and information

The Hitachi Group undertakes activities designed toon any accidents is always shared and reported toprevent any accidents related to the safety of our

all relevant authorities. In addition, technical causes

products, and to ensure that we provide high qualityof accidents, including any intentional or uninten-

products that can be used safely by our custom-tional causes, are thoroughly examined to derive

ers. We make special efforts not only to prevent thestrategies to ensure that incidents do not recur.

types of accidents addressed under product liability

Any lessons relevant to similar products or businesslaws, but also to ensure the safety of all products

processes are captured and applied in order towith any possibility of being linked to product liability

ensure that no similar incidents occur.

accidents; our goal is to have no such accidents.
We also work to continually raise quality levels
across the Hitachi Group by conducting regular

Reliability Education Program andActivities to Raise Ethical Awareness among Engineers

intra-company safety inspections.

To spread our basic philosophy on quality andensure that each employee fully appreciates the

Quality Reliability Committee“Quality First” attitude, we conduct systematic com-

We have set up cross-cutting working groups basedpany-wide training programs to enhance reliability,

on different themes, which work to improve quality

tailored to the experiences and technical capacities

and reliability. Through regular meetings, lectures,of the participants. In 2004, about 250 employees

and other activities, these groups share informationof the Hitachi Group participated in these trainings.

on the latest technologies and address issues ofMoreover, as a corporation that contributes tocommon concern.

society through technology, we work to promote

PAGE“e-learning”(See p. 33)

The QF (Quality First) Intensive Management System

ethical awareness and conduct among our engi-

We promote quality improvement by presenting

neers. In addition to conducting trainings for all ofawards once a year to those production facilities

our engineers with presentations by visiting experts,

demonstrating exemplary improvements in quality,and “e-learning” (see p. 33), we appoint ethics of-and by conducting special quality improvementﬁcers at each of our divisions, to promote related

drives for those facilities having potential productactivities. We also conduct management training toliability related concerns.

develop the skills of those who are leaders in ethical awareness of engineers; about 100 employees

OCHIBO HIROI (“Quality Gleaning Activities”)

from throughout the Hitachi Group participated in

When accidents happen, it is important to take ac-

this training in 2004.

Quality Assurance Activities System

Key Quality Activities

Manufacturing process

Product planning

Design review

DesignEvaluation and qualiﬁcationof pilot products

Purchased goods* Reviews and inspections are
conducted at each stage of the
product life cycle†, including productdevelopment and trials, in order to
identify and prevent any potential
defects.

22

Management ofpurchased goods

Manufacturing

In-line quality control (QC) *Inspection

Improving inspection
techniques

Product safety
activities

Delivery/shipment
Customers
Manufacturing Process

Hitachi Group CSR Report 2005

next society

Basic technologies

Quality assurance activities

Market trends

Feedback to each activity

Customers

Collecting ﬁeld data
and after-service
Link to Quality Assurance Activities

Quality reliability
committee

Company-wide
reliability
Quality First
Qualityeducation
intensive
assurance
management
Engineer ethics
systemsystemawareness-raising
activities
Human
Quality
resources
improvement
development
The Hitachi GroupOCHIBO HIROIQF21 quality(“Quality gleaningpromotion activities
activities”)

Approach to Social Contribution Activities
Hitachi Group’s social contribution activities

Foundations

Support for employees’ volunteer activities
Social contribution activities to carry out social
responsibilities, such as providing disaster aid, etc.

Increasing
brand value

Clients

Implementation of businessactivities with increased
enthusiasm and flexible thinking

Building a better society

Local society

Stockholders

Active implementation of social contribution
to enhance brand value
Each Hitachi Group
company

Improvement ofeach employee

Volunteer activities, etc.

Customers

Hitachi Group
employees

Positive activities as foundations of
the Hitachi Group
Active dissemination of information

The Hitachi Group QF21 Quality Promotion Activities(Quality Improvement Drives)to share a common sense of values with diverse
countries, regions and people, it is important that

In order to dramatically increase quality assurance

we be proactive in addressing the issues and ex-

levels over the three-year period 2003–2005, thepectations of society, while engaging in dialogue.

Hitachi Group has been conducting a special cam-We believe that continued efforts along these lines

paign under the slogan “providing the customer withwill help build the trust of all our stakeholders.

maximum quality products and services.” Throughthis activity, the Hitachi Group has instilled a con-

It is also important for our employees to take part

sciousness that quality is the highest priority, andin volunteer activities. A corporation is made up of

has created an atmosphere in which employees

individuals, and volunteer activities help to make the

do not hide mistakes or problems, but instead feelmost of each individual’s abilities, linking them tosecure in reporting concerns voluntarily; in these

the needs of society, while providing them with op-

ways, we are working to quantitatively assess andportunities for personal growth. Indeed, the power

improve our quality performance in ways tailored tobehind Hitachi comes from the development of theeach of our Group companies.

individuals within it, through each member of ourcompanies gaining valuable experience that helps

Social Contribution Activities:
Enhancing Hitachi’s Potential

them to develop ﬂexible thinking, be motivated,and gain skills that can help build a better future.

In 2002, the Hitachi Group adopted a new approach

We feel there could be nothing better if the growth

to social contribution activities. The Hitachi Groupof our company and its employees could together

has adopted a shared Philosophy and Policy for thecontribute to a better society.

entire Group. Each Group company is now reviewing

When Hitachi Group employees participate as indi-

its own activities to ﬁnd ways to bring them closer

viduals in volunteer activities, they share their expe-

to the shared Philosophy and Policy, while making

riences with their coworkers and family members.

the most of the activities that they have done inde-

This approach may not appear to be dramatic,

pendently to date, while also considering the nature

but this is how we would like to expand volunteerof their respective industries and types of business,

activities by individuals, as well as our contribution

as well as local community characteristics. Throughto society.

such efforts, Hitachi is promoting consistency in its
global social contribution activities aimed at building
a better society.

Social Contribution Philosophy and Policy

The reason we are putting our energy into social
contribution activities, despite today’s tougher business environment, is not only that we see it as an
obligation to serve the society that supports us, butalso that we believe that such activities help Hitachi
to grow and stimulate our latent potential.
Hitachi coexists with society, and the Hitachi Group

Philosophy
The Hitachi Group strives to demonstrate its corporate citizenship in response to social needs
and expectations, while endeavoring to enrich the quality of life and realize a better society.
PolicyThe Hitachi Group promotes various social contribution activities to build a vibrant society
based on fostering leadership to implement reformation for the next era. This is achieved bymaking optimal use of our knowledge and information technology in three speciﬁc areas,
namely, education, the environment, and social welfare.

is becoming more global. In this context, in order
Customer, Society and Hitachinext society

23Support for Volunteer Activities

volunteering. This provides employees throughout
the Hitachi Group with opportunities to feel that

For each of our employees to develop their abili-

volunteer activities are within their reach. This also

ties—not just as employees but also as members ofallows employees to share their thoughts and tosociety—it is very important to have direct contact

create a growing community of active volunteers.

with the community through volunteer activities, andto learn and grow as a result. Hitachi, Ltd. therefore

Time: Annual Leave System

strives to create a workplace that gives employees

In order to actively support volunteering, and social

the freedom to participate in volunteer activities ofcontribution and self-enrichment activities by employ-interest to them when they want to.

ees, Hitachi, Ltd. in 1993 introduced a “special paid

First, in order to promote an appreciation of social

annual leave system.” There is also a “cumulative

contribution activities among our employees, we

paid annual leave system” that allows employees

actively promote educational and informational ac-

to take time off to participate in volunteer activities,

tivities, as well as a variety of training programs. We

even after they have used up their normal annual

provide support for volunteer activities in three key

leave time, by carrying over four days of unused

ways: information, time, and funding.

leave time which they would otherwise forgo eachyear (for a total of 20 days maximum).

Information: Holding Seminars and Lectures

The Hitachi Group actively calls on its employees to

Funding

participate in volunteer activities through the com-

Hitachi’s volunteer support program is a programpany intranet and e-mail. Because we have received

to provide funding to activities that Hitachi Group

requests from employees wanting speciﬁc informa-

employees participate in as volunteers. It provides

tion that can help them to identify volunteering

ﬁnancial support to nonproﬁt organizations that em-

opportunities, we also host the “Hitachi Volunteer

ployee volunteers actively help run or provide fund-Seminars.” These seminars are designed speciﬁ-

ing to. An in-house screening committee reviews

cally to make it easy for employees to participate, in

proposals submitted by employees who are actively

groups that are small enough to allow for dialogue

involved in organizations as volunteers, making

with the presenters; sessions are also designed toseveral grants twice a year, of up to 300,000 yen

provide concrete linkages to actual volunteer op-

per proposal.

portunities. These seminars are presented in cooperation with the Tokyo Voluntary Action Center.

To Expand Our Activities, We Publicize
Our Database of Social Contribution Activities

Our “Corporate Citizenship Evening Seminars” arealso held several times in the latter part of each ﬁs-

The social contribution activities of the Hitachi

cal year. These are held in a style in which allows

Group include not only the activities of each Groupparticipants to learn from the instructors and also tocompany, but also the ongoing activities of the six

actively reﬂect on their own experiences.

foundations of the Hitachi Group. Taken together,

The reﬂections of participants in these seminars andthese efforts cover a diverse range of activities—ac-

lectures are shared through the company intranet,

tivities for which Hitachi employees can be very

including insights into how individuals can make use

proud. We feel it is important to share informationof their unique skills through their volunteering activi-

on these activities and raise interest in them, notties, as well as the importance of understanding theonly among employees, but also among our di-needs of society in order to undertake meaningfulverse stakeholders; we therefore make available toV O I C E

Utilizing the Hitachi Volunteer Support Program
I participate in a locally based nonproﬁt organization (NPO)that helps children enjoy nature. Through this activity, I feellike I have discovered a new part of myself—someone who
is not just a business person, but also a member of thecommunity; it makes me feel like my life is two or threetimes richer than before. I just want to make sure that I cancontinue on with this activity and not burn out from being
too active! Raising funds is a key concern, especially forsmall-scale NPOs like ours, which depend on membershipfees. Insurance costs, postage, and other operating expenses can add up and can prevent projects from getting

24

Hitachi Group CSR Report 2005

next society

off the ground. Through funding from this support program,our group has prospects for funding for the next three
years. This has been a big help as we develop concrete
mid-term activity plans.

Children’s environmental education
using Japanese traditional-style stories
told in pictures.
Hitachi-Omron Terminal Solutions, Corp.
Takao Nakatsuka

the public the “Hitachi Group Social Contribution

technology, and provides funding for research

Database” on the Internet, providing details of 93

activities.

different activities as of April 15, 2005.
This database provides details on the timing, ﬁeld of

The Odaira Memorial Hitachi
Education Foundation (established 1971)

activity, activity description and other related infor-

Conducts projects to promote household andmation on the domestic and international activities

school training programs, and recognizes dis-of Hitachi Group companies and foundations. It istinguished service to society.

also used as a tool for information sharing within the
Hitachi Group, further contributing to the develop-

The Hitachi Environment Foundation(established 1972)

ment of new and vibrant activities.

Conducts projects for research on environ-

In addition, we publish a biannual newsletter, “Themental issues, and to promote and publicize

Caring Tree,” in order to inform people both within

environmental conservation activities.

and outside the Hitachi Group of the group’s social
contribution activities.
The Six Foundations of the Hitachi Group

Provides scholarships to university teachers
from six Southeast Asian countries to study
at graduate schools in Japan, invites visiting

we have established a total of six foundations bothresearchers in the humanities and natural andinside and outside Japan, each actively contributing

social sciences, and funds academic exchang-to society.

es for graduates.

Supports activities for the prevention of juvenile

The Hitachi Foundation(United States, established 1985)

delinquency and crime, the wholesome devel-

Supports education activities and the develop-

opment of youth, and reform education andment of communities in the United States. The

welfare activities in correctional institutions.

foundation’s ﬁve-year plan, starting in 2004,

The Kurata Memorial Hitachi Science andTechnology Foundation (established 1967)

WEB
Hitachi Group Social Contribution
Database
http://www.hitachi.co.jp/Int/skk/(Japanese)
http://www.hitachi.com/Int-e/skk/(English)

The Hitachi Scholarship Foundation(established 1984)

Hitachi created its ﬁrst foundation in 1967. To date,

The Hitachi Mirai Foundation (established 1967)

WEB
The six foundations of the HitachiGroup
http://www.hitachi.com/Int-e/skk/
hsk10000.html“The Caring Tree”
http: //www.hitachicontribution.com/

focuses on improving the lives of economicallyand socially isolated people.

Conducts projects to advance science andT O P I C SProviding Opportunities for Involvement
Hitachi Volunteer Seminars
The Hitachi Volunteer Seminars in 2004 focused on topics
such as “preventing and responding to child accidents”
and “agriculture volunteering.” The program on child accidents featured a speaker from the Japanese Red Cross
Society, who explained topics such as ﬁrst aid for infants.
The agricultural volunteering session engaged representatives of NPOs and others working to preserve traditional
terraced rice ﬁelds, which have recently become the focus
of preservation efforts; participants not only heard about
the status of these rice ﬁelds, but also joined farming ac-

tivities in communities where labor shortages have made it
difﬁcult to maintain them. Some 131 people participated in
the total of four seminars that were held. The “Corporate
Citizenship Evening Seminars” addressed topics on education and the environment. In a session on thestate of education in Japan and the role of corporate support, participants not only listened
to a lecture, but also held group discussions
concerning what each person can do. Eighty
eight people participated in the three lecture
sessions held in 2004.
The Hitachi Volunteer Seminarvolunteering for agriculture

Customer, Society and Hitachinext society

25

The Hitachi International School Teachers
Exchange Program (HISTEP)
Left: A teacher from the United Kingdom
teaches at a junior high school in
Hitachi City.
Right: A Japanese teacher in a middle
school in Bolton, U.K.

were summarized in a report which was distributed
Examples of Our activities—Efforts in the Field of Education

among the European Commission, the European
Parliament, and others.

The Hitachi Group has designated the areas of education, environment and social welfare as key areas

Hitachi Young Leaders Initiative

for its social contribution efforts. In the education

This is a program initiated in 1996 to identify andﬁeld, in particular, we conduct activities that makenurture Asian leaders of tomorrow, build a network

use of the technical and research skills, facilities

among them, and promote understanding of re-and equipment within the Hitachi Group, as wellgional issues. Under this ﬁve-day program, 24 top

as the international experience of our staff as part

university students from six Asian nations (Indonesia,

of a global corporation. Here, we introduce someJapan, Malaysia, the Philippines, Singapore andexamples of these activities.

Thailand) participate in a forum, student workshops
and community work activities. So far, there have

The Hitachi International School Teachers
Exchange Program (HISTEP)

been 144 participants.
The young leaders utilize their experience on

This program promotes mutual understanding andthe program to contribute in various ﬁelds. Paulointernational exchange among North American,

Benigno Aquino, a participant from the Philippines

European and Japanese people. The Northin 1999, has since developed activities to assist

American and European HISTEP teachers visit highabused children and projects for environmental

schools and junior high schools in Japan, where theyconservation. He was later involved in human re-have various discussions with local teachers, andsources development for a youth organization un-

where they also teach local students by themselves.

der the Philippine President’s Ofﬁce. Since 2003, he

Meanwhile, Japanese HISTEP teachers visit either

has served as chairman of the organization, having

America or Europe. Since 1987, 199 Japanese,

been appointed by President Arroyo.

American and European teachers have participated.
In 2004, there were sixteen participants. On the ﬁnal
day of the program, a public forum was held with

Regional Activities Supported by the Hitachi Foundation—Reading Programs for Elementary School Students

teachers from seven countries acting as panelists

The Hitachi Foundation, based in Washington, D.C.,

to discuss “developing school children’s ability tohas been engaged in corporate citizenship activities

think by themselves.”

for the twenty years since its founding—and theimportance of its activities has steadily increased.

26

EU Hitachi Science and Technology Forum

It has been involved in three main programs—fund-This annual forum, which has been held sinceing business-community partnership programs to

1998, explores how science and technology can

improve the livelihoods of socially and economicallycontribute to European society. In May 2004, theisolated people in the United States; presenting

forum was held in Stockholm, Sweden. A total

Yoshiyama Award for Exemplary Service to theof 107 people, including the media and experts

Community to recognize high school students dem-from institutions such as the Swedish Agency for

onstrating exemplary leadership in their communi-

Innovation Systems, the University College London,ties (established through a donation from Hitachi,

and the French Ministry for Infrastructure, Transport

Ltd. Chairman Emeritus Hirokichi Yoshiyama); andand Housing, Tourism and the Sea, discussed

supporting matching grant programs that make“Transportation and IT, Impact on European

donations through local committees in each of theSociety.” The discussions of the three-day forum

communities where the Hitachi Group operates in

Hitachi Group CSR Report 2005

next society

EU Hitachi Science and Technology Forum.
A keynote speech by a professor of
University College London addressing how
information technologies can solve varioustransportation-related problems

Mr. Aquino asking a question at the
Hitachi Young Leaders Initiative forum

North America. One example of activities promoted
in cooperation with Hitachi Group companies isAward ceremony for the Hitachi
Foundation’s Yoshiyama Award for
Exemplary Service to the Community(United States)

Children participating in reading events
supported by Hitachi America, Ltd. and the
Hitachi Foundation (United States)

Disaster Response Activities in FY2004

an annual book-reading event for ﬁrst graders in2004 was a year which saw many major natural

Tarrytown, New York. Hitachi America, Ltd. hasdisasters. As the Hitachi Group is a corporation in-been holding this reading event every year since

volved in the development and improvement of so-

2000. It was held every month from October 2003

cial infrastructure, when disasters strike, employees

through May 2004 at Tarrytown’s John Paulding

respond to keep essential services running in the

Elementary School. At each session, children lis-various ﬁelds of their expertise, including electric-

tened intensively to stories about cultural diversity,

ity, manufacturing equipment, information systems,

tolerance and friendship.

household appliances, and others. Hitachi is proudof its ethos of responding voluntarily at such times,

Education Support Programin keeping with an awareness of our responsibility toThis program was launched in 2004 in order tosociety. In October 2004, when the Niigata-Chuetsu

contribute to society using the knowledge and skills

Earthquake struck an area where 5,500 Hitachi eleva-of the Hitachi Group. Utilizing Hitachi’s strengths totors and escalators were in operation, we immedi-

address the themes of “universal design” and “IT
education,” 50 employees of the Hitachi Group registered as volunteers to conduct activities such asteaching classes at elementary schools and serving
as teaching assistants.

Thirty Years of Accomplishment
by the Hitachi Family Education Center

Due to major social and cultural changes, the ability

ately investigated the extent of related damage andof households to fulﬁll their important roles in edu-

worked quickly to get 10 damaged units repaired bycating youth has diminished, sometimes resulting

the next day. To help the affected community, Hitachi

in stresses on parents, child abuse, and undercut-

collected monetary donations and relief goods, asting the sound development of children. Early on,

well as household appliances for disaster victims

the Odaira Memorial Hitachi Education Foundationand personal computers to help with recordkeeping

turned its attention to these problems, establishingat disaster response volunteer centers. Volunteers

the Hitachi Family Education Center (in Hitachi City)

from the Hitachi Symphony Orchestra also provided

and the Hitachi Family Education Research Institutewell-needed emotional relief, performing orchestral(in Yokohama). The Hitachi Family Education

works in the affected community.

Center, which marked its thirtieth anniversary in

Hitachi Group companies from throughout the2004, holds special classes, beneﬁting both chil-world responded to the devastating earthquake anddren and parents, that explore what children need intsunami that affected countries around the Indianorder to develop sound character. Some 4,500 par-Ocean in December 2004 by providing contribu-

ent-child pairs have participated in these sessions

tions, while Hitachi Group companies operating inover 30 years. The center reﬂected on its role andaffected countries worked together to provide relief

accomplishments, as well as future directions, in ato those affected. In Indonesia, Hitachi Constructioncommemorative publication distributed to various

Machinery Group donated construction equipment

community centers supporting child development,

and sent staff to operate them, conducting relief

as well as a wide variety of educational facilities.

operations in affected areas.

Left: Performance at an elementary
school by the Hitachi SymphonyOrchestra (Kawaguchi-machi
Niigata Prefecture, Japan)
Right: Relief activities conducted by
the Hitachi Construction Machinery
Group after the Indian Ocean
Earthquake and TsunamiWEB
The Hitachi Group
Summary of Responses to the Indian
Ocean Earthquake and Tsunami
http://www.hitachi.com/information/
support_1229/

Customer, Society and Hitachinext society27

Efforts for Shareholders and Investors
In order to meet the expectations of our shareholders and investors,
Hitachi, Ltd. and the Hitachi Group work to realize enhanced group synergies
and to increase our collective strengths.
We believe that corporate social responsibility is at the very heart of these efforts.
We also work to pursue cutting-edge research to develop
our core business activities for the future,
as well as research to increase the productivity
and speed of innovation of the entire Hitachi Group.

to ensure proﬁtability to our Future Inspiration Value
Strengthening Hitachi Group Governancein Achieving Global Management(FIV),*3 as well as a restructuring of our businessportfolio through selectivity and consolidation of

PAGE
The Committee System(See p. 8)

In order to enhance the management responsive-

focus. We are also working to develop new op-

ness and business transparency, Hitachi, Ltd. anderations that will support Hitachi in the future and

18 Hitachi Group companies were moved to thecontribute to society.

Committee System (see p. 8) in June 2003.
Investor Relations: Accurate Information
Delivered—in a Timely Manner
In addition, we are reevaluating our corporate struc-WEB
Hitachi, Ltd.
Information for shareholders andinvestors
http://www.hitachi.com/IR-e/index.
html

WEB
“Research and Development andIntellectual Property Report”
http://www.hitachi.co.jp/about/strategy/ip/(Only in Japanese)ture in order to ensure that our business is efﬁciently

The operations of Hitachi Group cover a wide range

operated and in compliance with legal requirements,of activities, from information management systems

and are creating more transparent business op-

and social infrastructure, to consumer products,

erations in a global business environment. We are

high-function materials and components and ﬁnan-

reorganizing and strengthening Hitachi Group gov-

cial services. We believe nothing is more important

ernance from the Hitachi Group management point

than to provide fair, unbiased and accurate informa-of view.

tion about the current state of our management andfuture prospects to our shareholders and investors,

As one of the U.S. SEC (Securities and Exchange

in a timely manner.

Commission) registered companies subject to the
Sarbanes-Oxley Act,*1 Hitachi, Ltd. has been re-

Hitachi, Ltd. and the publicly traded companies ofviewing and reorganizing the entire Hitachi Groupthe Hitachi Group make information available tointernal control based on the COSO Framework*2

the public, including detailed ﬁnancial information,

since FY 2004.

through annual reports and ﬁnancial statements.
We also provide regular business strategy brief-*1. The Sarbanes-Oxley Act was enacted in July 2002. Section 404 of
this Act makes corporate management responsible for establishingand maintaining internal control
over ﬁnancial reporting; it also
requires audits by external auditors.
Implementation and compliance
are required by the entire HitachiGroup in order to ensure reliabilityof consolidated ﬁnancial reportingby the Group.
*2. COSO Framework is the framework advocated by the Committeeof Sponsoring Organizations of theTreadway Commission in the UnitedStates, and is the internal control
system currently used by mostAmerican corporations.
*3. Future Inspiration Value (FIV)
is an indicator of added value
developed by Hitachi; it is based on
the economic added value of aftertax proﬁts minus the cost of capital.
For this indicator to be positive, it isnecessary for proﬁts to exceed thecost of capital.

28

As of the end of March 2005, approximately 230

ings and informational meetings on our research

Hitachi Group companies, including Hitachi, Ltd.,and development activities to institutional investors

had completed most documentation of internal

inside and outside of Japan. Brieﬁngs we hold forcontrol, and will be further developing their internal

institutional investors and analysts the day we issue

control operation structure and focusing on training

our ﬁnancial performance results are made available

and educating our management executives andon our Web site the following day.

employees.

In addition, starting in ﬁscal 2004, we began issuing a “Research and Development and Intellectual

Growth of the Hitachi Groupthrough Corporate Social Responsibility

our research and development activities, as well as
The Hitachi Group is undergoing a variety of reforms

information on our intellectual property, including

to prepare for the roles it will be called upon to fulﬁll

our patents and brands. This report is made avail-over the coming century. Corporate social respon-able in order for our stakeholders to appreciate thesibility is at the heart of these efforts.

importance the Hitachi Group places on researchand intellectual property matters. These efforts areFirst of all, the three-year period from 2003 throughintended to allow for a more accurate understand-2005 has been designated as a time to improve theing of our management structure, especially given

quality of our corporate management, with major

the changes occurring within the business environ-changes occurring within our operations in orderment affecting operations.

Hitachi Group CSR Report 2005

next society

Property Report” that provides details concerning

Left: Brieﬁng for institutional
investors and analysts on information technology and communication
strategies.
Right: Informational session held forinstitutional investors and analysts
upon reporting ﬁnancial results.

been selected for inclusion in the FTSE4Good Global

General Meetings of Shareholders

Index*5 by the Ethical Investment Research Service

In order for our shareholders to better understand(EIRIS). Six Hitachi Group companies have also

our operations, Hitachi, Ltd. provides various vi-

been included among the 150 socially responsible

sual reports at our Ordinary General Meetings ofcorporations of the Morningstar SRI Index, receiv-

Shareholders. Hitachi’s President makes a presen-

ing “A” rankings with respect to their independent

tation regarding management issues, the contents

indicators for governance efforts, social contributionof which are made available afterwards for an ap-

activities, and environment. A report by the Japan

propriate period on our Web site. In addition, start-

Research Institute, Ltd., “Annual survey on CSR ofing with the General Meetings of Shareholders ofJapanese listed companies,” praised the environ-

June 2002, shareholders can exercise their voting

mental and social contribution efforts of Hitachi,

rights via the Internet.

Ltd. and seven other Hitachi Group companies,
recognizing them as “the companies with advanced

External Evaluations in FY2004
by Socially Responsible Investors and Othersmeasures on CSR.”
The Hitachi Group sees the criteria used by these

An increasing number of investment funds are

rating institutions as objective indicators of what

adopting socially responsible investment (SRI) ap-

society expects of corporations, so it will continue

proaches, in which they evaluate companies based

to seek out the intent behind those criteria. We willon corporate social responsibility (CSR) criteria. For

also make use of these criteria for our own self-as-

ﬁve years in a row, Hitachi, Ltd. has been selected

sessments, to help us to improve the performancefor inclusion in the Dow Jones Sustainability Index*4of the Hitachi Group as a whole.

*4. The Dow Jones Sustainability
Index (DJSI), developed by the Dow
Jones Corporation (U.S.) and SAM
Group (Switzerland), is a stock index
that evaluates companies based on
economic, environmental and social
performance.
*5. The FTSE4Good Global Index isan index developed by FTSE Group(U.K) which screens certain industry
types and evaluates corporations
based on their environmental, socialand human rights performance.

by SAM Group. Six Hitachi Group companies have
Change in Shareholder Composition (%)

Other
3.34

Financial Institutions
and Securities Firms

Individuals

Foreign Investors

36.83

30.44

29.38

March 2003

Governments and Municipalities
0.01
4.92
0.01

March 2004

30.62

29.79

34.66
3.96
0.00

March 2005

27.90

31.67

36.47

Details of Key External Evaluations in 2004
Research Institution

SAM

EIRIS

Public Resource Center

Japan Research Institute, Ltd.

Evaluation Index

DJSI

FTSE4Good Global Index

Morningstar SRI Index“Annual Survey on CSR of Japanese Listed
Companies”

Evaluation Result

Selected as a recommended company

Selected as a recommended company

Selected as one of the SRI components

Selected as “companies with advanced
measures on CSR”

Companies Selected

Hitachi, Ltd.

Hitachi Metals, Ltd.
Hitachi Maxell, Ltd.
Hitachi High-Technologies Corporation
Hitachi Chemical Co., Ltd.
Hitachi Capital Corporation
Hitachi Software Engineering Co., Ltd.

Hitachi, Ltd.
Hitachi Metals Ltd.
Hitachi Construction Machinery Co., Ltd.
Hitachi Maxell, Ltd.
Hitachi High-Technologies Corporation
Hitachi Transport System, Ltd.

Hitachi, Ltd.
Hitachi Metals, Ltd.
Hitachi Chemical Co., Ltd.
Hitachi Capital Corporation
Hitachi Construction Machinery Co., Ltd.
Hitachi High-Technologies Corporation
Hitachi Information Systems, Ltd.
Hitachi Maxell, Ltd.

Efforts for Shareholders and Investors

next society

29

Working with Our Suppliers
The Hitachi Group procures a wide variety of materials,
parts and services from companies around the world.
In all these transactions, we strive to build relationships as equals with our suppliers,
in order to promote mutually beneficial activities.
From this point of view, we strive to share CSR policies with our suppliers,
including environmentally-beneficial activities throughout the supply chain.

CSR Policy has allowed us to pursue consistency
Partnership, and Our “Open Door Policy”
are Fundamentalof CSR policies throughout the supply chain; in April
2005, we wrote in our “Guidelines for Procurement

WEB
Hitachi Group Procurement
http://www.hitachi.com/procurement/

In the relationships with our suppliers, above all,

Activities” that we would conduct procurement

Hitachi feels that it is crucial to have a strong sense

based on CSR criteria.

of partnership. The Hitachi Group conducts busi-

Speciﬁcally, we have established “respect for hu-

ness with other companies based on equal rela-

man rights,” “environmental conservation activities,”

tionships built upon mutual understanding, which“social contribution activities,” “creating good work

creates trust with our suppliers. A fundamental point

environments,” and other areas as criteria for select-in selecting our suppliers is our “open door policy,”

ing our suppliers. To ensure consistent application

which means that we choose suppliers based onof these policies, it is essential for supplier com-the principle of free competition, regardless of thepanies to understand the importance of CSR. We

supplier’s country. Selection of suppliers is based

also make sure that training for Hitachi’s purchasing

on fair procedures that give due consideration tostaff includes CSR concerns, and that we explain

the quality of materials, prices and delivery, as well

our policies to suppliers whenever opportunities

as the reliability and technical capacities of supplierarise; moreover, we also provide information on ourcompanies.

policies through our Web site. In these ways, we

Hitachi, Ltd. conducts its operations based on

work to ensure that our suppliers understand whatits “Guidelines for Procurement Activities.” Thesethe Hitachi Group is striving for through promotion

guidelines specify our practices, including guar-of CSR as a whole Group, and that we are pursuinganteeing fair business opportunities, entering into

the practice of CSR with our suppliers.

transactions as equals, setting fair conditions basedon dialogue, not imposing unfair demands due to

Quality Control and Value Engineering
for Customers

our position with respect to suppliers, and maintaining strict conﬁdentiality of information acquired

For the Hitachi Group to provide trusted and highthrough our purchasing. These guidelines ensure

quality products and services, we call on our sup-that we conduct fair and unbiased procurement

pliers to continually make improvements in quality

activities.

and cost. From selecting to receiving materials andparts we will use, we conduct evaluation testing

Cooperation on Social Responsibility
throughout the Supply Chain

and inspections to make sure that the characteristics and quality that we demand are guaranteed.

PAGE“Self Evaluation on Corporate Social
Responsibility”(See p. 6)

30

In order to pursue Hitachi’s business model of mu-

Moreover, in order to provide our customers withtual beneﬁt with our suppliers, it is essential to shareimproved performance in the functions of our goods

the same corporate social responsibility (CSR) withand services, we evaluate our goods and services

them. As a result of the self-evaluation Hitachi con-from every angle, including the design, materials,

ducted of its corporate social responsibility activities

and processing, based on an activity we call “Value(see p. 6), we discovered some insufﬁciencies withEngineering for Customers” (VEC). By engaging ourrespect to our educational activities and ensuring

suppliers in these comprehensive evaluations thatthe consistency of CSR policies throughout the

make use of experts and knowledge in a variety

supply chain. The adoption of the Hitachi Group

of ﬁelds, we can also contribute to improving the

Hitachi Group CSR Report 2005

next societytechnical capacities and new product development

ers adopt environmental conservation activities. As

skills of our suppliers.

a sign of this, we have set for ourselves the goal of

Promoting Green Procurement

having our “green supplier ratio”*2 reach 100% by
the end of ﬁscal 2006, with all of our suppliers re-

The Hitachi Group continually conducts “green pro-ceiving third-party certiﬁcation such as ISO 14001.

curement” in order to procure parts and materials

However, we recognize that small and medium

having reduced environmental impacts. Using “Aenterprises, which comprise over half of our suppli-

Gree’ Net,”*1 the Internet-based green procurement

ers, encounter various difﬁculties in obtaining such

system developed by Hitachi, we ask suppliers tocertiﬁcation, in terms of cost as well as setting up

provide information on their environmental conser-

new systems.

vation activities and the environmental impacts ofthe materials they deliver. In ﬁscal 2004, details on

HI-KES at a Glance

60,000 parts from 5,000 facilities were made avail-

Structure

Operation

able through this system. Interlinking this information

EMS development

Sharing the know-how
of the Hitachi Groupto other systems, such as for design support andmaterials procurement, we can procure and develop

Acquiring KES certiﬁcation

Attending“Hi-Green Seminars”

further products that are environmentally friendly.
We share information with others by sending out“Green Procurement News,” our regular newslet-

Therefore, in addition to the existing ISO 14001

ter reporting on activities to reduce environmen-

system, we established the “Hitachi Environmental

tal impacts, as well as through holding “Green

Certiﬁcation System” in October 2003, applicable in

Procurement Parts Exhibitions.” Sixty companies

Japan utilizing other certiﬁcation schemes compa-

participated in our 2004 exhibition, held in May.

rable to ISO 14001, including KES,*3 Eco Stage,*4

We will continue to share information and work

and Eco Action.*5 In April 2004, we also establishedto create new products that can contribute to“HI-KES” as a joint activity with KES. HI-KES is aenvironmental conservation and innovation for sus-

register system whereby companies register withtainability—including through improved treatment

Hitachi, after receiving KES certiﬁcation. They canof hazardous materials (such as those addressed

participate in Hitachi’s own environmental seminars

under chemical regulations such as the RoHS

(Hi-Green Seminars), which address how small and†

Directive ), as well as through products that use

medium enterprises can introduce environmental

less material and have longer usage lives, improved

management systems easily and affordably, withrecyclability, ease of disassembly and processing,

the ultimate goal of acquiring ISO 14001 certiﬁca-

lower energy usage, and other factors.

tion. Suppliers who have achieved this certiﬁcation

Aiming toward a Green Supplier Ratio of 100%

have told us that as a result of the active consulting
we conduct through this program, they received

Reducing the impact on the environment through-concrete advice that helped them lower their costs

out a product’s lifecycle† is something that Hitachi

and improve their management.

can accomplish only with the cooperation of the

As of the end of ﬁscal 2004, a total of 43 companies

suppliers who are our partners in business. We are

were pursuing KES certiﬁcation; we will actively

working to ensure that all of Hitachi’s major suppli-

expand this program in the future.

*1. “A Gree’Net” is an Internetbased system developed by Hitachi
for sharing information concerningchemicals used in parts provided
by suppliers, supplier company
environmental activities, and related
information.
*2. The green supplier ratio is
the ratio of suppliers with anenvironmental management system(EMS), including those working to
put an EMS in place, divided by the
total number of suppliers; this ratio
is currently about 90%.
*3. KES (Kyoto Environmental
Management System Standard)
is an environmental management
system promoted under the “Miyako
Agenda 21” program of Kyoto.
*4. Eco Stage is an evaluation
system designed to support environmental management, promoted by
the Eco Stage Institute.
*5. Eco Action 21 is a program toevaluate environmental activities
created by Japan’s Ministry of theEnvironment.

Working with Our Suppliers

next society

31

The Employees that Sustain Hitachi
The importance of people, and the connections between them,is a value that has been fostered by Hitachi, ever since its founding.
Hitachi exists because of its employees, their motivation, and their human relationships.
In order to address each employee’s desires and create a better workplace,since 2000 Hitachi has undergone various reforms to improve its work environment.

“Brush-up” System for Managers

Three Keywords for Creating
a Good Workplace Environment

We started the “360-degree Feedback Program”
in 2003 for improving leadership and management

In recent years, Hitachi, Ltd. has been making vari-skills of managers and above (approximately 10,000

ous changes, and in the midst of change the mostpeople).

important points are the nurturing of people who

In this program, the participants can learn their own

can respond to the challenges of today, and thestrengths as well as areas for improvement, by

creation of a workplace environment where talented

joining workshops where they receive various com-people can freely show their full ability. We therefore

ments from their superiors, peers and subordinates

strive to transform our corporate culture based onwith careful instructions from the workshop facilita-

three keywords. One is “Open”—valuing an open

tor. They also can brush up on their own leadershipenvironment of candid communication fosteringand management skills by implementing a skill-de-the free expression of employee talents. Next is

velopment plan that they make in the program. The“Challenging”—the pursuit of ambitious goals andobject of the program is not employee evaluation,

innovations. Another is “Diversity”—the expression

but only capacity development.

of diverse individualities. Reﬂecting these values,in 2004 we implemented reforms in our employeecompensation and beneﬁts systems, as well as

Valuing GENBA (the Workplace)—Communication
between the President and Employees

employment and pension programs.

The more a company grows, the more importantOpen

become the individuals within it, as well as the abilityof the workplace to allow individuals to ﬂourish.

Improving Our Employee Compensation System“Shoyama Online” is a communication tool for

In order to maximize each employee’s motivation

Hitachi’s president, Mr. Etsuhiko Shoyama, to com-and capacities, we have introduced a staff compen-

municate with employees. Established in 1999 whensation system that matches employee grades andhe became president, this system allows the presi-

qualiﬁcations, as well as wage and bonus levels, todent to send out messages via the intranet, and toeach employee’s abilities and accomplishments, as

receive and respond to inquiries and views from theevaluated in a fair and transparent manner. The fac-

employees of Hitachi, Ltd. and the other companies

tors, criteria and methods for employee evaluationsof the Hitachi Group.

under this system are open, and employees are able

The president also takes the initiative to visit many

to receive feedback through evaluations conductedfactory and ofﬁce work sites throughout the Hitachi

through one-on-one discussions with those con-Group to engage in dialogue and exchanges ofducting the evaluations; this creates a shared con-views with employees. More than forty work sites

sciousness concerning each employee’s strengths

were visited by the president in 2004. The fruits ofand areas for improvement, as well as leading tothese interactions, and the stimulation they provide,clear goals for performance and skills development

are invaluable for both the president and the staff;

training to be pursued in the future.

the results of this type of steady communication also

To ensure that this system is properly understood,

nourish a “bottom-up” approach that engages eachand that evaluation interviews follow establishedemployee, rather than a “top-down” approach.

procedures, each year we also conduct an employ-32

ee attitude survey that gauges the current situation,

Attitude Surveys of Employees

and that helps us pursue follow-up measures toSince 2001, Hitachi, Ltd. has conducted an annual

ensure that the system is properly implemented.

“Business Process and Opinion Survey” involving all

Hitachi Group CSR Report 2005

next society

of its roughly 41,000 employees, in order to under-

Outline of the Career Development Support Program

stand their desires and views regarding the state ofEntering the Company

Age 40Age 30Age 45

Age 50management. This survey is conducted via the comsponses through their personal computers. Through

Career development
support for
new employees

concerns within the workplace, we use this data tocreate an improved organization with systems that
respond to the desires of each of our employees.
Challenging

E-mails to pre-hires

listening to the direct views of staff and analyzing

Training for new employees

pany intranet, and employees can submit their re-Career Challenge
Support Program
Participants:
Managers age 45 and above
Participants:
Participants:
Employees in their 30s Ages 40–45
Engineers,
Managers
assistant managers
and researchers

All participate
Hitachi Life andCareer Planning Seminars
Optional menu

Career development workshops
Seminars on various styles
of work

Support for Career Development

Support programfor external placement

The career development of staff is important for
Hitachi, and we dedicate our energy to related efforts. Crucial to career development is the ability to

Hitachi Group Recruiting System & In-House Free Agent System

arrive at a mutual understanding of how the desires

Training at different levels at workplacesof employees match the needs of the company.

Career Counseling Ofﬁce (Head Ofﬁce Area)

When there is shared direction and agreement on
both sides, the mutual growth of the company andthe individual becomes possible.

you ﬁrst joined a company—you’ve got to keep on

To make this happen, Hitachi has developed its

your toes.” “It’s a great opportunity for you to really“Career Development Support Program.” A repre-

think about what type of job you want to do, andsentative component of this program is our “Career

I really hope you will try it.” These types of views

Development Workshops.” These are two- or three-from coworkers provide useful advice to prospec-

day workshops in which employees conduct career

tive jobseekers.

planning, building their personalized visions for the

In addition, in 2003, we also introduced an “In-future through analyzing their expertise, values,

House Free Agent System,” in which employees are

motivation, and deepening an understanding of

directly able to announce their interest in moving tothemselves. Through the workshops, we help staff

new jobs. In 2004, 85 position wanted advertise-

to ﬁnd a passion for their life and work, and help

ments were announced, with 41 employees ﬁnding

them to develop as employees who can grow andnew positions.

achieve self realization through their work. Since
launching these workshops in October 2002, 1,400
employees have participated (as of March 2005).

Reforming the Employee Invention
Reward Compensation System

We also have put in place a system to make the

Hitachi has many employees, including 1,200 withmost of our human resources and to place staff indoctorate degrees, who are engaged in leading-appropriate positions. In order for staff to achieveedge research and development in various ﬁelds. In

their desires by being able to take up new posi-order to stimulate research activities and to create

tions of their choice, in 1991 Hitachi introduced an

many outstanding new inventions, in March 2004,“In-House Recruiting System.” In 2004, this was

Hitachi set up an Invention Management Division,developed into our new “Hitachi Group Recruiting

which implements policies to raise the motivation of

System,” which covers 19 Hitachi Group companies.

our front-line researchers and engineers.

In the roughly one-year period starting April 2004, a

In April 2005, in keeping with revisions to Article 35

total of 434 employees applied for positions underof the Revised Patent Law of Japan, we disclosed

the Hitachi Group Recruitment System, with 56 ofdetails of revised Regulations for Employee Invention

them moving to new positions of their choice. Since

Compensation that were drafted by incorporating

1991, more than 300 staff have moved to new posi-

the views of our employees. These revisions re-tions through this recruitment system. We promotesulted in regulations that are transparent and haveawareness of this system and encourage its active

been well-recieved. Under this policy, an invention

use by sharing messages on the intranet from those

information system has been introduced throughwho have used it.

which an inventor can make an application to enter

Examples of the advice to coworkers from those

into dialogue with the business unit regarding the

who have used the system have included messages

use of patents in a project. We will continue to im-such as these: “The best thing was that my humanprove these regulations in the future, and intend to

network doubled in size. I worried what would hap-create an environment that will support increased

pen to my old workplace if I left, but this worry was

motivation among our employees to create manygroundless.” “Starting a new position is like when

exceptional new inventions.
The Employees that Sustain Hitachinext society

33

“Hitachi-Learning Gate” e-Learning System

Skills Development Using the “e-Learning System”

family friendly, supporting work-family balance.

Hitachi, Ltd. created the “Hitachi-LearningGate,”

The Hitachi Workers Union manages the “Genki

as a support mechanism for encouraging voluntary

Club” childcare facility for Hitachi Group employees

challenge of individuals—an original “e-Learning” sys-established in 2003; it is located inside the Union

tem that uses our know-how in the ﬁeld of software

Workers Building of Hitachi Workers Union Softdevelopment. The number of users has expanded

Branch. Hitachi, Ltd. and 19 Hitachi Group com-steadily to include the entire Hitachi Group; it is cur-panies are fully supporting this activity. As of April

rently being used by about 200,000 employees.

2004, 25 children were enrolled full time, with four

This system provides training to improve awarenessothers on a part-time basis.

and compliance with regulations and company policies; called “e-Audit,” this system enables staff to

Employment of Physical Challenged Persons

study whenever they choose, on themes including(Persons)
1,350

ethics education, information security, protection of

1,300

personal information, export controls, and the envi-

1,250

ronment. As an example, since its establishment in

1,200
1,100

February 2005) have completed the training module

1,050

on “preventing information leaks.” In the future, we

1,000

and expand the coverage of training materials on

PAGE“Employment of Physical Challenged
Persons”(See p. 17)

as a practical, daily-use tool integrated with our

750business activities.

700

1.66

822

1.5

731

2000
June

2001
June

2002
June

2003
June

2004
June

Also, through normalization*1—removing barriers
between all employees, regardless of whether they
are in any way challenged or not—we are actively

Respecting diversity, Hitachi, Ltd. in March 2000

expanding the hiring of challenged persons within

announced (both inside and outside the company)

the workplace (see p. 17). Speciﬁc efforts in thisour “Gender Free and Family Friendly Plan” (F.F.

regard include accepting trainees from schools forPlan). This is our program to create a conducive

the challenged, creating barrier-free environments

work environment that is gender-free, meaning

for those in wheelchairs, and many other policies;

without discrimination on the basis of gender, andpresently, employment of challenged persons hasreached 1.88% of the total workforce.

Number of New Graduates Hired in Fiscal 2004 (%)

Female13

1,007

Hitachi’s wealth is in the diversity of its people.

Male-Female
Employment Rates (%)(March 2005)

Legislated
Employment
Rate
1.80

1.76

850
800

Promoting Hiring of Physical Challenged Persons
and Introduction of the “F.F. Plan”

1.88

1.82

900

650

*1. “Normalization” is the social
welfare goal of guaranteeing, to theextent possible, the right of challenged persons to live normal lives.

1.82

950

various themes, and actively promote its usefulness

Diversity

1,249

1,150

September 2004, approximately 54,000 staff (as ofwill work to improve the understanding of trainees,

(%)
2.0

1,311

Female18

Benefits Meeting Employee Needs

We are also revising our employee beneﬁts sys-

Female12tems to respond to growing diversity in individual

Female44
Male 87

Male 82

Male 88

lifestyles. At Hitachi, Ltd., in addition to existing
Male 56

systems providing housing loans and asset-building
savings plans, in 2000 we introduced a “cafeteria

Total

34

Hitachi Group CSR Report 2005

next society

Science andengineering graduates

Liberal arts
graduatesplan” that allows employees to choose the ben-Occupational Accident Rate (per million hours)
(%)
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
1995

1996

1997

1998

1999

2000

2001

eﬁts they receive, in keeping with the approach of“providing services to those who need them.” Thecafeteria plan is a system that employees can use

planning for the post-retirement life during their

to select an individualized set of beneﬁts that meet

employment years.

their needs, by selecting from a menu of beneﬁts
prepared by the company using a given number of

Guaranteeing the Safety of Employees

points. This has allowed us to provide more appro-

Believing that “ensuring employees’ health andpriate support to our employees.

safety is the highest priority,” we always maintain

2002

2003

2004
(FY)

All industries
Manufacturing industry
Electrical-related
Hitachi, Ltd.
* An accident in the “all,”“manufacturing” and “electrical”
categories is counted when it
causes a worker to miss at least
four days of work.
For Hitachi, Ltd., the criterion is atleast one day of work.

high health and safety standards, and work to raise[ Employees Using Parental Leave,
Family Care Leave and Shorter Working Hours ]these even further.
Our health and safety knowledge—the knowledge,

Number using parental leave:

Male– 1; Female –209

experience and ideas gained through many years of

Number using family care leave:

Male– 6; Female –5

health and safety activities regarding management—

Number using shorter working hours:

Male– 0; Female –81

education, facilities and the workplace environment,(Between April 2004 and March 2005)

are employed not only to inform our activities in the

Revising Corporate Pension Plans

future, but also in the creation of our worker’s healthand safety management system, which is a key ele-

Corporation pension plans play an important rolement of our operations.

in supporting retired employees—a role that is ex-

To ensure employee health, we have established

pected to increase in the future. In light of external

health consultation centers, with medical specialists

changes occurring in recent years, including thewho coordinate with our industrial health staff torise of employment mobility, changes in employee

actively support the good health of our employees.

awareness, and legal reforms, Hitachi, Ltd. in 2001

Moreover, in April 2003 we launched an “Employee(ahead of other companies) fundamentally revised

Assistance Program” (EAP)*2 to support the resolu-

its retirement beneﬁt and corporate pension plans,tion of various employee concerns and issues. In

by introducing a deﬁned contribution pension plan.

addition to establishing an EAP Center inside the

The intention of Hitachi’s deﬁned contribution pen-

company, in-house EAP specialists visit work sites,

sion plan is to foster employees’ sense of responsi-

hold consultations, and respond to telephone andbility by planning for their own post-retirement lives.

online inquiries. Feedback from the results of EAPThis new pension plan allows individual employees

consultations are used by management to propose

to gain experience managing their own assets—un-

improvements in the work environment, while en-der of the company’s plan—and to choose, withinsuring the privacy of the individuals involved.

*2. The Employee Assistance
Program (EAP) is a program toprovide employees with psychological, physical and social support.

limits, the timing of when they begin to receive
payouts from the corporate pension plan. This
ﬂexibility in receiving one’s payouts has the beneﬁtthat the post-retirement ﬁnancial planning for each
employee can be tailored to their own life plans.
In 2003, we also introduced a cash balance plan(a deﬁned beneﬁt pension plan), which expands
options for receiving pension payments, as well as
clarifying individual holdings through the creation ofvirtual private accounts, with the expectation that

Basic Attitudes Concerning HIV/AIDS
Since 1995, Hitachi, Ltd. has promoted within the Hitachi Group an understanding of HIV/AIDS based on the following three points.
1. We will actively undertake awareness-building activities in keeping with the understanding that the most important thing is “to cultivate accurate knowledge and understanding of
HIV/AIDS on the part of each employee.”
2. We will respond to known cases of infection by giving the highest consideration to respecting the human rights of those infected, and consider how to the delay the onset of illness.
3. With a view to protection the privacy of individuals, no testing for HIV/AIDS will be conducted as a part of any routine physical examinations done within the company, whether
the physical examination is legally sanctioned (for employees) or not ( i.e. voluntary).

employees will have higher awareness of ﬁnancial
The Employees that Sustain Hitachinext society

35next society
Action Plan for Fiscal 2005
A Step toward a Sustainable Society
Spreading Awareness of the Hitachi Group CSR Policy

The Hitachi Group CSR Policy established in March 2005 will be applied
throughout the Hitachi Group and where we work around the globe. We will build
mechanisms to ensure that these policies are adopted by all of the approximately
340,000 employees within the Hitachi Group and that all of our activities will bein conformity with them.
Preparing a “Three-Year Corporate Social Responsibility Roadmap”

We will prepare a Three-Year Corporate Social Responsibility Roadmap to guide
CSR activities throughout the entire Hitachi Group.
Establishing and Utilizing a Group Platform

In order to maximize the synergies among the Hitachi Group, we will make fulluse of a cross-cutting Group Platform as a system to share best practices andto respond swiftly to issues.
Dealing with Key Policy Issues

Key policy issues that we will focus on will include human rights and supply
chain management; we will strengthen our activities with respect to these issues
globally.
With respect to supply chain management, we will share our Hitachi Group CSR
Policy with our suppliers, and build systems for monitoring their implementation
on a global level.
With respect to human rights, we will prepare a Corporate Social Responsibility
Guidebook for the entire Hitachi Group, and use it as the basis for integrating
human rights concerns fully into our operations on a global basis, in keeping with
regional and business conditions.
Sharing Information with Stakeholders

We will continue to share information concerning the corporate social responsibility activities of the Hitachi Group, including through disseminating reports andengaging in ongoing dialogues with our stakeholders around the world.

next society

Aiming for Sustainable “Monozukuri”(Design, Manufacture and Repair of Products)

37

next ecoEnvironmental Activities of the Hitachi GroupThe Hitachi Group is expanding its environmental activities in accordance with the policies towhich it has committed itself in its Environmental Vision (Sustainability Compass).
It is also applying Hitachi Action Guidelines for Environmental Conservation to the whole Group,and drafting annual action plans based on EcoValue Plan 2010, its roadmap up to 2010.
The activities carried out are assessed using our GREEN 21 evaluation system,and plans reviewed accordingly.

Hitachi’s Environmental Vision and Guidelines

Hitachi Group companies worldwide will work

Sustainability Compass

N

Nature-friendly Products& Eco-factories†

to help create a corporate community in bal-

• Improve resource productivity• Promote sustainable use ofenergy and resources

ance with nature and open up the way to asustainable society. For the sake of future
generations, we will act as a good corporate
citizen and use our products, services, andW

technologies to propose innovative new business models to society, while taking progressive action in the four key directions of ourSustainability Compass.

Worldwide Stakeholder
Collaboration†$PSF7BMVF"DPSQPSBUFDPNNVOJUZJO
CBMBODFXJUIOBUVSFBOEUIFDSFBUJPOPGBTVTUBJOBCMFTPDJFUZ"1JPOFFSJOH4QJSJU3FTQPOTJCJMJUZGPSGVUVSFHFOFSBUJPOT(MPCBMDJUJ[FOTIJQ• Strengthen management
systems that promotesustainable business activities• Foster advanced eco-minds
among employees and theirfamilies• Proactive information
disclosure• Proactive collaboration
with stakeholders

Sustainability Compass

This is Hitachi’s environmental management“compass,” comprised of core values and thefour directions of activity in which we strive toachieve this environmental vision.

E

Eco-mind& Management†S

Sustainable Business Models†• Expand sustainable business models• Promote the spread of business operations
with a reduced environmental impact

Hitachi Action Guidelines for Environmental Conservation
The basic philosophy of these Guidelines is based on the “Hitachi, Ltd.
Standards of Corporate Conduct” (Rule No. 2272, established on June 28,1983). These Guidelines are intended to set forth Hitachi’s action guidelines foraddressing environmental conservation in relation to its business activities.
PurposeIn order to realize an environmentally harmonious and sustainable society
through products and services, Hitachi is committed to meeting its social
responsibilities by promoting globally-applicable “MONOZUKURI” (designing, manufacturing or repairing of products), which is aimed at reducing environmental burdens of products throughout their entire life cycles, ensuring
environmental conservation.
Action Guidelines
1. Global environmental conservation is a critical challenge shared by all
humans. Hitachi is committed, therefore, to fulfilling its responsibilities byassisting in the realization 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 global environmental conservation andlimited resources.
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 forenvironmental 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 of38

Hitachi Group CSR Report 2005

next eco

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 thecourse of 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 andresource saving, chemical substance management, recycling, and othermeasures.
6. Hitachi’s environmental conservation efforts are not only to be focusedon observing international environmental regulations and those of national and local governments, but also on conserving the environment byimplementing voluntary environmental standards when necessary.
7. Regarding globally-applicable MONOZUKURI activities, impact on thelocal environment and community are to be considered. In addition, measures that meet local communities’ requests should be implemented.
8. Hitachi will educate its employees on the observance of environmentrelated laws, raise their environmental awareness and encourage theirinterest in society at large and broad-based environmental conservation
activities.
9. Hitachi will evaluate potential environmental problems and prevent themfrom occurring. In the event that any environmental problem occurs,
Hitachi will take appropriate measures to minimize the impact on theenvironment.
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.
(Date of enforcement)
April 1, 2005

Medium-Term Environmental Action Plan and Results
EcoValue Plan 2010

This plan was drawn up in 2001 as a roadmap leading to 2010, and has been updated annually in conjunction with the drafting of annual
action plans.
Eco-mind & Management
1 Promotion of environmental management

Improved global environmental management group synergy

2 Improvement of self-evaluation system

Continued expansion of GREEN 21 ver.3

3 Environmental education

Promoted eco-friendly lifestyles

4 Establishment of environmental accounting

Sustained implementation of effective environmental impact reduction

Nature-friendly Products & Eco-Factories
Nature-friendly Products
5 Eco-product expansion

Expanded eco-product lineup (100% application), 50%-plus improvement in global warming prevention factor,
70%-plus improvement in resource factor (compared to FY2000) (consumer products, etc.)

6 Promotion of product chemicals content management

Thoroughgoing management of substances in all products posing a risk to the environment

7 Promotion of green procurement

Joint development of DfE products with suppliers

8 Transport efficiency improvement

10%-plus reduction per unit in CO2 emissions generated during transport of products (compared to FY2000)

Eco-factories
9 CO2 emissions

7% reduction (compared to FY1990) (Japan)

0 Per production unit CO2 emissions

25% reduction (compared to FY1990), or industry organization individual target [domestic],
5% reduction (compared to FY2003) [overseas]q Greenhouse gas reduction

35% reduction of SF6 emissions (compared to FY2003),
10% reduction of PFCs (compared to FY1995) [semiconductors], 0% increase [LCDs]

Chemicals management

w Emissions reduction

Reduction of VOC ( volatile organic compounds) emissions

Waste reduction

e Reduction of final disposal waste

Reduced to below 70% (compared to FY1998)

Prevention of global warming

r Control of waste product generation Promotion of resource recycling-oriented manufacturing

Worldwide Stakeholder Collaboration
Environmental communicationt Information disclosure

Expanding information disclosure to engage stakeholders

y Dialog

Worldwide promotion of “town meeting” forums for discussion of environmental issues with local communitiesu Corporate citizenship activities

Expanding ties with NGOs and local communities to help build a sustainable society

Sustainable Business Models
i Creation of sustainable business models

Product recycling systems, expansion of leasing and rental businesso Expansion of sustainable society-oriented business

Expanding environmental solutions model projects, and promoting their spread in society

2004 Annual Action Plan and Results

Goals in each category, 2004 results, performance with respect to target figures, and plans for the future.
Eco-mind & Management

Eco-mind & Management

Eco-mind & Management

1 Promoting Environmental Management

2 Enhancing Evaluation System

3 Environmental Education• We shall upgrade and strengthen our environmental
management system, aiming for consolidated
environmental management• We shall incorporate environmental management into
our business strategy, and aim to become an enterprisethat generates environmental value• GREEN 21ver.2
Achievement of 533 green points (GP)• Encourage “eco-mind” attitudes among all employees
and their families• Boost employee education and number of licensed andcertified personnel

FY2004 performance

527 GPs

FY2004 performance

FY2005 target

FY2004 performance

GREEN 21 Award Program launched

640 GPs

Number of companies reporting environment impacts

Completed Internet educationfor 32,000 persons

Domestic: 239 Overseas: 36 Total: 275

Distributed English language pamphlets for employee
families

FY2005 target
Strengthen global environmental management

FY2005 target
Further develop environmental education globally

PAGE

P.46

PAGE

P.42

PAGE

P.42, 48

Environmental Activities of the Hitachi Groupnext eco39

Eco-mind & Management

Nature-friendly Products & Eco-factories

Nature-friendly Products & Eco-factories

4 Establish Environmental Accounting

5 Expansion of Eco-Product Lineup

6 Promotion of Product Chemicals
Content Management• Establish and promote environmental management also
among Group companies• Promote the use of environmental impact reduction
indicators• Publication of Design for Environment (DfE) Assessment
Guidelines incorporating environmental efficiency index• Implementation of product environmental efficiency for
key products of each business unit and company• Complete phasing out of hexavalent chromium, lead,
cadmium, mercury, PBB, and PBDE, the six substances
covered by RoHS Directive on electrical and electronicequipment

FY2004 performance

FY2004 performance

FY2004 performance

FY2004 consolidated environmental accounting for

Eco-products 72%

Technology for phasing out
the six substances almost completed

275 Group companies

Design for Environment (DfE) Assessment Guidelines
revisedFY2005 target
Promotion of internal use of environmental accounting

Calculation of environmental efficiency of 11 products

FY2006 target

FY2006 target

Building of appropriate individual management
systems for phasing out the six substances(June 2006)

Achieve 80% eco-products

PAGE

PAGE

P.47– 48Nature-friendly Products & Eco-factories

7 Promotion of Green Procurement

8 Improving Transport Efficiency• Build environmental management support system for
suppliers• Investigate RoHS Directive six substance content inapplicable products• Reduce environmental impact of product transport(CO2, NOx, PM emissions)• Set transport impact targets, and implement measures

9 CO2 Emissions

Completed investigation of RoHS Directive six substancecontent in applicable products

FY2006 target• Reduce CO2 emissions in Japan

FY2004 performance
CO2 emissions reduced by 20%(compared to FY1990)

Total CO2 emissions derived from transport:
453 kt-CO2 /year (6% increase over FY2003)

support system for suppliers established

P.49

Nature-friendly Products & Eco-factories[ Prevention of Global Warming ]FY2004 performance

An environmental management

PAGE

P.49 –51

Nature-friendly Products & Eco-factories

FY2004 performance

Shipment of RoHS Directive-compliant new products
commenced in April 2005

FY2005 target
Reduce CO2 emissions by 3% (compared to FY1990)

FY2005 target
Reduce CO2 emissions per unit derived from producttransport (excluding on-premise transport) by atleast 2% (compared to FY2000)

Achieve 100% green supplier ratio

FY2007 target
Survey to identify chemicals contained in products

PAGE

PAGE

P.30–31

PAGE

P.51

P.52–53Nature-friendly Products & Eco-factories[ Prevention of Global Warming ]Nature-friendly Products & Eco-factories[ Prevention of Global Warming ]Nature-friendly Products & Eco-factories[ Chemicals Management ]0 Per Production Unit CO2 Emissions

q Reduction of Greenhouse Gases

w Reduction of Emissions• Reduce per production unit CO2 emissions• Reduce greenhouse gases other than CO2(HFC, SF6, PFC)

• Manage chemicals rigorously, and reduce emissions,particularly of targeted substances

FY2004 performance

FY2004 performanceSF6 emissions reduced by 19%(compared to FY2003)

Targeted substances reduced by 56%(compared to FY2000)

FY2004 performance
Domestic per production unit CO2 emissions
reduced by 24% (compared to FY1990)
Overseas per production unit CO2 emissions
increased by 1% (compared to FY2003)

PFC emissions reduced by 7%(compared to FY1995) [semiconductors]

FY2005 target
Reduce domestic per production unit CO2 emissions
by 20% (compared to FY1990) or achieve targets
based on individual targets set by industry
organizations

PAGE

40

Hitachi Group CSR Report 2005

next eco

P.52–53

FY2005 target
Completely phase out emissions of prohibited
substances

FY2005 target
Reduce SF6 emissions by 30% (compared to FY2003)

PAGE

P.52– 53

Reduce targeted substances by 30%(compared to FY2000)

PAGE

P.54–55

Nature-friendly Products & Eco-factories [ Waste Reduction ]Nature-friendly Products & Eco-factories [ Waste Reduction ]e Reduction of Final-Disposal Waster Reduction of Amount of Waste Generated• Reduce final disposal site waste• Promote zero emissions initiatives• Reduce amount of waste generated

Worldwide Stakeholder Collaboration[ Environmental Communication ]t Information Disclosure• Disclose information through public relations,advertising, environmental reports, and Web site, etc.
• Actively participate in environmental activities of otherorganizations, including exhibitions, lectures, local
community activities, etc.

FY2004 performance

FY2004 performance

Waste generated reduced to 93%(compared to FY1998)

Final disposal site waste reduced to 62%(compared to FY1998)

FY2004 performance

FY2005 target

Zero emissions achieved at 71 sites

FY2005 target
Reduce final disposal site waste to 80% or below(compared to FY1998)

Continued reduction of waste generated

35 environmental reports issued

Set reduction targets for each site, and implement
planned reduction

by Group companies and individual facilities

Information provided on 48 Web sitesof Group companies and individual facilities
Booth at Eco-Products International Fair 2004 in Malaysia
Booth at Eco-Products 2004 exhibition in Japan

FY2005 target
Use various opportunities to disseminate information
globally

PAGE

PAGE

P.56

Worldwide Stakeholder Collaboration[ Environmental Communication ]y Dialog• Hold “Environmental Town Meetings” at individualcompany or community level for discussion ofenvironmental issues with local communities• Foster exchanges of opinion through questionnaire
surveys, public comment sessions, and by accepting
study tours, etc.

PAGE

P.56

Worldwide Stakeholder Collaboration

Sustainable Business Models

u Corporate Citizenship Activities

i Creation of Sustainable Business Models• Promote active participation in volunteer activities by
employees• Open facilities to the public• Promote activities with local NGOs
• Conduct local tree-planting and cleanup activities• Expand collection and recycling of used products

FY2004 performance

Tokyo Eco Recycle Co., Ltd.
Awarded Honda Prize for Development of Recycling
Technology

FY2004 performance

FY2004 performance

FY2005 target

64 facilities participatedEnvironmental Town Meeting heldat Mito Works

P.57

in Ministry of the Environment Lights Down campaign

Expand product recycling, lease and rental business

52 nature areas in Group company facilities were

Received 25 responses to Hitachi environmental activities
questionnaire

FY2005 target
Expand Environmental Town Meetings regionallyregistered and opened to the public
Provided support for middle school and university
classes, etc.

FY2005 target
Expand cooperation with local communities inenvironmental education activities

PAGE

PAGE

P.57

PAGE

P.24–27, P.57

P.58– 60

■ Card Legend

Sustainable Business Models

o Expansion of Businesses
that Contribute to a Sustainable Society• Create structure and develop strategy for sustainablebusiness models• Promote R&D that contributes to environmental protection• Develop environmental solutions business• Plan and implement environmental restoration* activities

FY2004 performance

Launched Sustainable Business Modelcommittee under the Environmental Committee,

The four themes of the Hitachi Group’s
Sustainability Compass (Environmental Vision)

Worldwide Stakeholder Collaborationu Corporate Citizenship Activities

Activity category• Promote active participation in volunteer activities by
employees• Open facilities to the public• Promote activities with local NGOs
• Conduct local tree-planting and cleanup activities

Specific activities

FY2004 performance

64 facilities participatedin Ministry of the Environment Lights Down campaign

and promoted the sharing of information

52 nature areas in Group company facilities were

HDRIVE awarded Eco-Products Prizeregistered and opened to the public

FY2004 performance

Provided support for middle school and university
classes, etc.

FY2005 target
Expand environmental solution model business
Promote the spread of sustainable businesses* Environmental restoration activities: ecosystem restoration,
independent power production, investment in renewableenergies, funding assistance, etc.

FY2005 target

FY2005–2007 targets

Expand cooperation with local communities inenvironmental education activities

FY2004 performance evaluation
Achieved
PAGE

PAGE

P.24 – 27, P.57

Requires improvement

Relevant page

P.58–60

Environmental Activities of the Hitachi Groupnext eco41

Eco-Management

Green Point Average: Results and Targets
Sustainable
Business Models

FY2002: 377GP
FY2003: 441GP
FY2004: 527GP (target: 533GP)
FY2005: 640GP

Evaluation Categories
Eco-Management
Environmental management, action plan,
environmental accounting
Eco-Management:
Risk Management
Compliance with laws and regulations,setting of independent standards
Eco-mind
Employee training and education
Nature-friendly Products
Implementation of product andservice assessment, green procurement,
distribution
Eco-factories:
Prevention of Global Warming
Energy saving at operation sites
Eco-factories:
Resource Recycling
Waste reduction,
chemical substance management
Worldwide Stakeholder
Collaboration
Information disclosure,
dialog and community activities
Sustainable Business Models
Management systems, planning,product recycling,
environmental restoration activities

65GP
80

Collaboration, and Sustainable Business Models.
Eco-Management:
Risk Management

The period covered is fiscal 2002 to 2005. Progress

86GP

is rated on a scale of 0 to 5; a rating of 2 is given

56GP
40

for an average level of achievement, 4 for meeting

Worldwide
Stakeholder
Collaboration0

Eco-mind

72GP

62GP

the goal, and 5 for surpassing the goal. The ratings are then multiplied by weights, based on eachitem’s relative importance. The maximum withineach category is 100 “Green Points” (GPs), giving a

Eco-factories:
Resource Recycling

Nature-friendly
Products

maximum possible rating of 800 for all 8 categories.

71GP

56GP

Adjustments are made in cases where certain items

Eco-factories:
Prevention of Global Warming

may not be applicable in a given business unit.

59GP

Starting in fiscal 2002, the Green Point scores wereadded as one of the criteria for evaluating businessGreen Point Results and Targets

performance in the Hitachi Group. The results are

(GP)
700

each business group, thus serving as an incentive

600
500

used in evaluating appropriate performance for

640
533
527

Performance
377

400

for enhancing environmental activities, in addition

Target441

to improving social contributions and profitability.

426

Based on this system, the management team withineach business group is able to check how it is doing,300

and this leads to further improvements and greater

0
2002

2003

2004

2005

FY

efforts to achieve the environmental targets.
A score of 527 GPs was achieved in fiscal 2004, a
24% increase over 2003, but 6 points short of the

Evaluation Systemtarget of 533 GPs set for the year. The Sustainable

GREEN 21 (Version 2) Evaluation Criteria

Business Models† category showed major improve-

To assure continuous improvements in our environ-ment, with progress made in sharing the concepts

mental management activities, Hitachi utilizes theof risk management and sustainable business due

GREEN 21 ( Version 2) evaluation system to rate ac-

to strengthened environmental management. To

tivities according to fixed criteria. In the system, forachieve our fiscal 2005 target, we will redouble

the fiscal year being evaluated, points are given forour efforts in such categories as Eco-Products,

procedures put in place to achieve environmental

where we aim to further expand eco-products andtargets, the details established for each target, andpromote green procurement, and Eco-Factories,

level of achievement. This system serves as a tool

where we will carry out planned investment aimed

for making environmental activities more efficientat achieving global warming prevention targets.

and for assisting the implementation of environmental management within each operations unit.

Incentives for Promoting Environmental Activities

The GREEN 21 system evaluates 53 distinct items

GREEN 21 Award Programin the following eight Sustainability Compass catego-

The Hitachi Group established its GREEN 21 Award

ries: Environmental Management, Risk Management,

Program in 2004 to pay recognition to progressive

Eco-mind, Nature-friendly Products, Prevention

environmental conservation activities.

ofResource

The aim of the GREEN 21 Award Program is to

Recycling (Eco-factories), Worldwide Stakeholder

provide an incentive for top-level environmental ac-

GlobalWarming(Eco-factories),

tivities, and serve as a tool for promoting GREEN 21
PAGE
GREEN 21 Grand Prize: Prizewinning
Activity Details
Hitachi Cable Group(See p. 58)

2004 GREEN 21 Award Program: Prizewinners
Prize nameGrand Prize

Prize for
ExcellencePrizewinning facility
Hitachi Cable, Ltd.

Prizewinning activity
Creation and operation of a used
cable recycling system, anddevelopment of RoHS-compliant
cablesHitachi, Ltd.
Mito Building Systems
Division, Urban Planning andDevelopment Systems

Environmental impact reduction
activities based on eco-productdevelopment

Encouragement Prize

Hitachi Global Storage
Technologies, Inc.
(San Jose, USA)

Packaging reuse program

Encouragement Prize

Taoyuan Works,
Taiwan-Hitachi

Social contribution activities in
the local community, and facility
waste reduction and recycling

and other environmental activities through communications activities within the Group. Such items as
flagship eco-friendly products and technology, progressive examples of energy- and resource-savingin facilities, and dialog with society through environmental activities will be assessed comprehensively
on their novelty, impact,sustainability, external
reputation, GP totals,
improvement rates andso forth, and awarded
accordingly.
GREEN 21 Award Program Ceremony

42

Hitachi Group CSR Report 2005

next ecoFY2004 Environmental Activities
Because the Hitachi Group’s business covers such a diversity of fields with a great many categories requiring
environmental management, we are implementing environmental activities aimed at reducing environmental
impact over the entire Group. The Group drafts environmental policies which are shared by all of its 985 consolidated subsidiaries and 167 affiliated companies, and seeks to ensure and promote their implementation.
We established our Group-wide Environmental Management Operations Committee in 1999, and have since
been building our environmental management system, putting particular emphasis on fostering a shared “ecomind” approach. We are also implementing rigorous information management and sharing with respect toCO2, waste and other environmental impact data aggregation and green procurement systems, and leveraging an original IT-based system to carry out speedy, effective and credible environmental management.
This report presents the results (as of March, 2005) of our evaluation of the environmental impacts and activities of 275 Group companies (Hitachi, Ltd., together with 238 domestic and 36 overseas subsidiaries) that
account for about 90% of the environmental impacts of the Hitachi Group’s 985 consolidated subsidiaries,
based on such data as the number of employees and the amounts of energy consumed, waste generated,and chemical emissions etc.
Environmental activities in fiscal 2004 were focused mainly in the following categories.

Creation of rules for eco-friendly manufacturing (Environmental CSR-Compliant Monozukuri[PLM and Total SCM] Standards) and system for managing chemicals contained in products(Integrated Management System for Chemical Substances Contained in Products)

To ensure Group-wide application of eco-friendly manufacturing, we are pressing ahead with the restructuring of systems and processes related to the management of the chemical content of products. The
Hitachi Group Environmental CSR-Compliant Monozukuri (PLM and Total SCM) Standards were estab-

PAGE
Integrated Management System for
Chemical Substances Containedin Products(See p. 14–15)

lished as common rules for Group companies, a system was created, and an Integrated Management
System for Chemical Substances Contained in Products was introduced. Hitachi, Ltd.’s Disk Array
Systems Division, Hitachi Home & Life Solutions, Inc., and Hitachi Maxell, Ltd. were chosen as modelcases for implementation of the system.
Expansion of eco-products

In fiscal 2004, we added a function for calculating environmental efficiency to our Design for Environment(DfE) evaluation system, making it easier to calculate environmental efficiency. The factor (a calculationof efficiency improvements),was calculated for 11 products, and the ratio of total products registered as
eco-products rose to 72%.
Achievement of Group target for final disposal site waste

With respect to the Group target for final disposal site waste of reduction to 70% or below by fiscal 2010
(compared with fiscal 1998), reduction to 62% has been achieved for the Group as a whole, with about
76% of facilities reaching the target.

Environmental Town Meeting held by the Mito Building Systems Division of Hitachi Ltd.’s Urban Planningand Development Systems Group

This was the fourth Environmental Town Meeting† held for discussion of environmental issues with local
community stakeholders. In fiscal 2004, the venue was switched from Tokyo, where previous meetings
had been held, to Hitachinaka City in Ibaraki Prefecture, and featured a tour of Hitachi’s Mito factory,
during which time Hitachi personnel answered questions from participants and listened to their views.
Hitachi is eager to engage local communities in which it has operations, and this meeting yielded the kindof results that could only be obtained from a local community event, results that will be put to good use
in enhancing future communications with stakeholders.
43

next ecoEnvironmental Impact Data for Corporate Activities (FY2004)

Domestic Corporate activities

This chart shows resource inputs and environmental impacts pertaining to
the fiscal 2004 corporate activities of the 273 domestic and overseas
Hitachi Group companies covered by this report. Input includes the total amount of energy,materials and chemicals, and water consumed in product manufacturing and other corporate activities.
Output includes the total amount of products, CO2, chemical substances, waste,
and wastewater generated from corporate activities.

Total energy consumption (crude oil equivalent)Electricity
Oil (crude oil equivalent)
New energy types

1,551,000 kl
4.69 billion kWh *0.54% (FY2004)
364,000 kl *0.15% (FY2004)

Electricity
Heat

Metals 1,266 kt

Iron (including steel sheeting)

722 ktStainless steel

34 kt

Aluminum

77 kt

Copper287 ktOther nonferrous metals

146 kt

Thermoplastics

155 kt

Thermohardened plastics

36 kt

Rubber

5 kt

Other materials
Chemical substances

350 ktHandling volume for chemical substances covered under the PRTR law 215 kt
Handling volume for ozone depleting substances
Handling volume for greenhouse gases

Overseas Corporate activities

Surface water

7.17 million m3

Industrial water

27.70 million m3

Groundwater

25.43 million m3

Total energy consumption (crude oil equivalent)Electricity
Oil (crude oil equivalent)
New energy types

Electricity

455,000 kt
1.48 billion kWh
77,000 kl
80 million kWh

Total input of chemical substances
Chemical substances

Handling volume for chemical substances covered under the PRTR law 20.2 kt

8.35 million m3

Water consumption

next eco

27 t
1,296 t60.29 million m3

Water consumption

Hitachi Group CSR Report 2005

16,000 kl

Total input of materials

Plastics 191 kt

44

70 million kWh

Surface water

2.93 million m3

Industrial water

5.19 million m3

Groundwater

230,000 m3

2,586 kt (2,586kGWPt †) *0.2% (FY2004)

CO2 emissions

Total volume of products manufactured and sold

* Ratio of national total, and fiscal
year used for comparison. Source
for the total figures for Japan
was the FY2003 PRTR results
listed in the “Annual Report on
the Environment in Japan 2004.”(Ministry of the Environment)

2,463 kt including packages

Volume of chemical substances discharged or transferred
Discharge or transfer volume for chemical substances covered under the PRTR law

6.5 t (0.4 ODPt †)Greenhouse gas emissions 23 t (412 kGWPt) SF6

14 t (341 kGWPt)

PFCs

9 t (71 kGWPt)

HFCs

0.05 t (0.6 kGWPt)

Substances subject to emissions regulations SOx

548 t *0.05% (FY1999)

NOx

2,969 t *0.25% (FY1999)

Total volume of waste generated

561 ktWaste generated

561 kt *0.09% (FY2001)

Waste reduction
Recycling (rate) 483 kt (93%)

45 kt *0.02% (FY2001)
Volume re-used

110 kt (23%)

Volume of material recycled

336 kt (70%)

Volume of thermal recycled
Final disposal (rate)

Breakdown of wastewater by destination
Water quality

37 kt (7%)
33 kt (6%) *0.06% (FY2001)

52.35 million m3

Total volume of wastewater
Volume ofwater reused
94.79 million m3

5.8 kt *1.1% (FY2003)

Volume of discharge for ozone depleting substances

Public waters

41.59 million m3

Sewerage system

10.76 million m3

BOD

384 t

COD

266 t

CO2 emission

1,346 kt (1,346 kGWPt)

Volume of chemical substances released or transferred
Discharge or transfer volume for chemical substances covered under the PRTR law 0.8 kt
SOx
NOx
Total volume of waste generated

109 t
150 ktWaste generated

150 ktWaste reduction

33 kt

Recycling (rate)

58 kt (50%)

Final disposal (rate)

59 kt (39%)
8.21 million m3

Total volume of wastewater
Volume ofwater reused
3.47 million m3

126 t

Breakdown of wastewater by destination

Public waters

3.63 million m3

Sewerage system

4.57 million m3

Water quality

BOD

193 t

COD

232 t

Environmental Impact Data for Corporate Activities (FY2004)

next eco45

Eco-mind & Management
Eco-mind: The environmental awareness of each and every Hitachi employee.
Eco-management: The system for supporting the environmental activities of those employees.
The Hitachi Group implements environmental management
through solid teamwork linking the individual with the organization.

Committee to be implemented and communicated

Eco-Management

throughout the organization. The Environmental

To promote environmental initiatives, the Hitachi

Committee (and each sub-committee) works toGroup has built an environmental management

attain environmental goals and tasks, by conduct-system for consolidated reporting. Hitachi’s Senior

ing investigations and developing useful evaluation

Executive Committee for Environmental Policy, amethodologies and techniques.

managerial level committee chaired by the president, assesses and determines the environmental

It also establishes the organizations required forpolicies and strategies for the entire Hitachi Group.

implementing environmental activities in eachbusiness, and designates environmental operations officers within the Hitachi’s Group’s businessgated to the Environmental Management Operationsgroups, subsidiaries and affiliated companies who

Environmental Management System
Senior Executive
Committee
for Environmental Policy

President

Corporate
Environmental
Policy Division

Environmental
Management
Operations Committee

Eco-Management
Committee

Business groups
Group directors, CEOs
Environmental
operations officers

Production facilities
Operations heads
Environmental
management officers

Regional Environmental Committees

Senior Executive Committee forEnvironmental Policy:
Assesses and sets environmental management policies at executive managementlevel (annual).
Environmental Management Operations
Committee:
Enforces environmental policies anddevelops environmental information andactivities (semi-annual).
Environmental Committee:
Assesses environmental issues and draws
up policies (semi-annual).
Sub-committees:
Discuss issues, draft policy (as required).
Main themes: Eco-Management (environmental management, educational activities,
dissemination of information), Eco-Products(promotion of eco-product development,
reduction of harmful substances usedin products), Eco-Factories (reduction ofenvironmental impacts of production),
Sustainable Business (support for thecreation of sustainable business models,
strengthening of related activities).

The environmental policies adopted here are dele-

Affiliated companies
Presidents
Environmental
management officers

Eco-Products
Committee
Environmental
Committee

Major affiliated companies
Presidents
Environmental
operations officers

Production facilities
Operations heads
Environmental
management officers
Affiliated companies
Hitachi, Ltd.,
Presidents
985 consolidated subsidiaries
Environmental
and 167 affiliated companies management officers

Eco-Factory
Committee
Sustainable BusinessCommittee
HitachiStatus of ISO 14001 Certification
Japan

No. ofCertified Sites

Japan
Hokkaido/Tohoku regions
20
Kanto/Koshinetsu regions
148
Hokuriku/Chubu regions
19
Kansai region
16
Chugoku/Shikoku/Kyushu regions 15
Total
218

Overseas

Production
Sites

Non-production
Sites

Production
Sites

Non-production
Sites

Total

155

63

55

4

277

Environmental Education and Training System
Group training

General employees
Auditor training

Administration

Asia
America
EuropeExecutive management level

Head auditor training

Specialized education
Eco-Products development training

Training for each company/
site based on ISO 14001

46

Hitachi Group CSR Report 2005

next eco

General education

Eco-mind education (via the Internet)

Specialized education

Training for employees working in certain operations

General education

Eco-mind education for each company/site

Education about environmental management

40
14
5

Environmental Accounting
Cost(Unit: billion yen)
Costs
Item

Overview

Expenses

FY2000FY2001

FY2002

FY2003

FY2004

Business area costs

Maintenance of equipment with low environmental impact, depreciation, etc.

35.96

38.21

35.00

29.02

31.82

Upstream/downstream costs

Green procurement expenses, recovery and recycling of products and packaging,recycling expenses

3.58

3.27

2.40

2.76

2.69

Management activity costs

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

8.35

11.09

10.41

12.29

10.76

Research and development
costs

R&D for the reduction of environmental loads caused by products and production
processes, product design expenses

30.03

34.36

38.21

35.48

39.51

Social activity costs

Environmental improvements such as afforestation and beautification, PR and publicity
expenses

3.23

0.53

0.52

0.37

0.61

Environmental damage costs

Environment-related measures, contributions and levies

Total expenditure
Total investment

Investment in energy-saving equipment and equipment that directly reduces environmental loads

0.93

0.82

0.86

0.51

2.23

82.08

88.28

87.40

80.43

87.62

21.25

18.01

14.97

10.17

14.10

Depreciation expenses on equipment investments are calculated using the straight-line method over 5 years.

EffectEconomic Effect*(Unit: billion yen)
Effects

Item

Overview
FY2000FY2001

FY2002

FY2003

FY2004

Net income effectProfit on sales of recycled waste

5.58

5.09

6.08

4.06

6.25

Reduced expenses effectReduction in material costs due to resource saving, reduction in waste treatment costs
due to reduced waste, reduction in power expenses due to energy saving

12.03

13.56

12.11

11.67

12.77

17.61

18.65

18.19

15.73

19.03

Total
Physical EffectAmount reduced (parentheses: equivalent no. of households)
Item

Overview
FY2000FY2001

FY2002

FY2003

FY2004

Reduction in the amount of energy
used during production

Decrease in amount of energy used due to installation of energy-saving equipment

169 million kWh 331 million kWh 189 million kWh 127 million kWh 125 million kWh(49,000)(95,000)(55,000)(37,000)(36,000)

Reduction in the amount of final
waste disposal

Decrease in final waste output volumes due to separation and recycling activities

6,051 t(20,000)

Reduction in the amount of energy
consumed during product usage

Decrease in energy requirements of Hitachi products

844 million kWh 552 million kWh 742 million kWh 507 million kWh 730 million kWh(243,000)(159,000)(214,000)(146,000)(210,000)

7,369 t(25,000)

5,210 t(18,000)

5,612 t(19,000)

5,922 t(20,000)

Benefits on equipment investment are calculated using the straight-line method over 5 years, as with costs* Economic Effect includes the following items.
1. Net income effect: Benefits for which there is real income, including the sale of resalable material and income from environmental technology patents.
2. Reduced expenses effect: Reduction in electricity and waste treatment expenses arising from environmental impact reduction activities.

Efficiency of Environmental Impact Reduction*
FY2000FY2001

FY2002

FY2003

FY2004

Reduction in energy used during production

41 million kWh/billion yen

66 million kWh/billion yen

53 million kWh/billion yen

44 million kWh/billion yen

33 million kWh/billion yen

Reduction in amount of waste for final disposal

1,170 t/billion yen

1,750 t/billion yen

1,200 t/billion yen

1,690 t/billion yen

1,690 t/billion yen* This is an indicator of the efficiency of environmental impact reduction, calculated as the amount of environmental impact reduction divided by expenses needed for the reduction.

Cost Breakdown
by Industry Segment

Investment Breakdown
by Industry Segment

Economic Effect Breakdown
by Industry Segment

1

2

1

14

28

8

Investment Breakdown
by Countermeasure
Other 5

Prevention of Global Warming 29

11
2

8
8
50

28

55

22

8
41

9
4

Information & Telecommunication Systems

Electronic Devices

Power & Industrial Systems

Digital Media & Consumer ProductsHigh Functional Materials & Components

Logistics, Services & Others

Pollution Prevention 60

Waste Reduction 6

Eco-mind & Management

next eco47

are responsible for managing environmental mat-Specialized education is being offered to train envi-

ters within each organization. Both within Japanronmental management system auditors, as well as

and overseas, the Hitachi Group shares informa-design and manufacturing personnel, in areas use-tion about laws, regulations, market trends, andful for the development of Eco-Products. Training

reports on relevant topics. From fiscal 2005, it has

based on ISO 14001 is also offered in order toalso been working to upgrade its environmental

promote environmental activities and to reduce themanagement system in its facilities in Europe anduse of resources and energy at our facilities.

China to promote the sharing of information andSpecialized trainings and emergency drills are alsoenhancement of environmental activities within the

conducted for employees working in operations

Group in each location, and plans to implement thethat have significant environmental impacts.

same measures in the United States and in other
Asian locations.
ISO 14001 Environmental Management System

improvements in our environmental investments
and activities, Hitachi introduced an environmental

through its environmental management system,

accounting system in 1999. Its purpose is to help

which is based on the internationally-recognizedpeople understand our corporate approach to the

ISO 14001 standards.

environment, by providing information on how we

We started obtaining ISO 14001 certification inallocate management resources for environmental

July 1995, and all of our manufacturing operations

activities, and on the value created through environ-

had obtained it by the end of fiscal 1999. Our non-mental technologies and Eco-Products.

manufacturing operations, such as software andIn addition to investments in plant and equipment

service companies, did likewise by the end of fiscal

for environmental purposes, which we have been

2002. Because of changes in the companies cov-

reporting since fiscal 1997, the costs covered in ourered under consolidated reporting and in activities

environmental accounting also include ordinary ex-covered, the number of ISO 14001-certified sites

penditures, such as for research and development,

currently totals 277.

as well as the costs of operating and managing envi-

To further enhance environmental management

ronmental equipment and facilities. Our activities can

within the Group, we are currently building a new

be understood both in terms of economic benefits,environmental management system that includes

which can be evaluated in monetary terms, and ma-

environmental operations sections in each businessterial benefits, which can be evaluated based on thegroup and Group company. Each site pursues con-degree to which burdens on the environment are

tinual improvements, undergoing internal audits tocontrolled. Economic benefits are calculated based

assess progress, and also receiving regular inspec-

on tangible data. Material benefits—which result

tions by external certification bodies. Internal audits

from Hitachi’s fundamental principle of contribution

are conducted by approximately 2,000 accredited

to society by developing superior technologies—areauditors who have undergone specialized training.

evaluated based not only on the lower environmen-

Since 1973, environmental audits have continuallytal impacts during the manufacturing process but

been included as a part of management auditing ofalso during the use of our products. We strive forbusiness operations.

efficiency in reducing environmental impacts, using
an “environmental burden reduction ratio” to evaluate the extent to which each type of environmental

We provide general education for all of our em-

burden is reduced per unit of expenditure.

ployees aimed at nurturing an eco-mind approach

In fiscal 2004, environmental activity costs rosethrough raising their knowledge and awareness of

9%, but the economic benefits yielded by themenvironmental matters, and specialized educationrose 21%. R&D costs related to research, develop-

for the learning and implementation of specific envi-

ment and design for reduction of the environmentalronmental technology.

impact of products accounted for 45% of total en-

Management-level personnel are given more gen-vironmental activity costs, and yielded reductions,eral learning opportunities than in the past, giving

in terms of energy consumed in using products, ofthem a keen appreciation of the importance of en-

730 million kWh.

vironmental management which is then reflected in

Hitachi’s Senior Executive Committee for Environ-management policies. Training of general employ-mental Policy, a managerial level committee chaired

ees is being promoted through the Internet, withby the president, assesses and determines thesome 32,000 employees having completed training

environmental policies and strategies for the entire

courses as of March 2005.

Hitachi Group.

Hitachi Group CSR Report 2005

next ecoTo promote greater effectiveness and continual

The Hitachi Group addresses environmental issues

Environmental Education

48

Our Approach to Environmental Accounting

Nature-friendly Products & Eco-factories(%) 100
761(2,864)80

568(2,056)60

20
0

Eco-Products

240(1,504)
29
(714)

22

3
2000

(80)

72
66
(60)

40

1,000 (items)

817(3,294)

Target(70)

Registered Eco-Product number(Bracketed ﬁgures show model type numbers)

Nature-friendly Products

Eco-Product Registration Trends

Eco-Product registration (%)

The Hitachi Group estimates the environmental impact of its
products over their entire lifecycles from the initial design
stage, selecting the optimal methods based on such estimatesto create environment-friendly “Eco-Products.”
The Group’s various sites (factories and offices) also base theiroperations on Hitachi’s Eco-Factory concept, actively striving
to contribute to reduce their overall environmental impact.

800
600

46

400

(30)

200

(15)
2001

2002

2003

2004

Actual value

2006 (FY)

0

Target value

Approach to Complete Life Cycle Product Design

Expanding Eco-Products
Design for Environment

To minimize the environmental burden at each stage

Resource Conservation
Component
Materials

Production

Distributionof a product’s life cycle,† the Hitachi Group devel-

Usage

RecoveryandDisassembly

Proper
DisposalReuse and Recycling

ops products based on our Design for Environment
Design for Environment Assessment System

Assessment System. This is an evaluation system
we have applied since 1999 that incorporates

Assessment criteria: Resource reduction, product longevity, resource recycling, ease of disassembly and processing,environmental safety, energy efﬁciency, information disclosure, packaging

Design for Environment (DfE) concepts. Products
are assessed with respect to eight criteria. We deﬁne “Eco-Products” as those products that achieve
at least 2 on a scale of 0 to 5 for each of these eight
criteria, as well as an average score of 3 or higher.
As of March 2005, 817 products (3,294 different
model types) qualiﬁed as Eco-Products, accounting for 72% of our overall sales volume. We identify
our Eco-Products by afﬁxing an “eco” symbol, andinformation about them is made available to cus-

Definition of Environmental Efficiency• Prevention of Global Warming Efﬁciency =Product lifespan*1 × Product function
Volume of greenhouse gas emissions
throughout the lifecycle of a product• Resource Efﬁciency =Product lifespan*1 × Product function∑ Resource value coefﬁcients × (new resources usedin lifecycle*2 + resources disposed in lifecycle*3)

Definition of Factors• Prevention of Global Warming Factor =Prevention of global warming efﬁciency
for the product being evaluatedPrevention of global warming efﬁciency
for reference product• Resource Factor =Resource efﬁciencyof the product being evaluatedResource efﬁciency of reference product*1. The speciﬁed usage period fora product

tomers through catalogs, Web site and so forth.
Environmental Efﬁciency when carrying out DfE
Environmental Efficiency

assessment, and we have since been applying thisTo utilize resources more effectively, we havefunction throughout the Group.

introduced an “Environmental Efﬁciency” index
that shows the value created while controlling en-

Progress in Managementof Product Chemical Content*2. The volume of resources used
to manufacture a product minus
the volume of resources reusedor recycled*3. The volume of resources used
to manufacture a product minus
the volume of resources with thepotential for reuse or recycling

vironmental impacts and resource consumption.
This index evaluates products by calculating two

Compliance with the RoHS Directive

measures of efﬁciency with respect to a product’s

In line with the European Union’s RoHS Directive†

value in terms of its functioning and lifespan. The(on the restriction of the use of certain hazardous

ﬁrst measure is the ratio of the product’s value tosubstances in electrical and electronic equipment),

the amount of greenhouse gases released during

the Hitachi Group is working to completely eliminate

the life cycle of the product (Prevention of Global

six chemical substances (hexavalent chromium,

Warming Efﬁciency); the second is the ratio of thelead, cadmium, mercury, PBB†, and PBDE†). As

product’s value to the sum of the amount of new re-a result of the Group’s technology development

sources that are extracted from the Earth for its pro-efforts and the cooperation of suppliers, lead- andduction and the amount of waste remaining whenhexavalent chromium-free parts are now used, andthe product is disposed of (Resource Efﬁciency).

as of March 2005, most new products now com-

We also track product efﬁciency improvements,

ply with the RoHS Directive, with RoHS-compliant

using as yardsticks two factors—the “Prevention

hard disk drives (HDDs) and other products alreadyof Global Warming Factor” and the “Resource

being shipped, and remaining non-compliant prod-

Factor”—that measure improvements in efﬁcien-ucts slated to be replaced with new products incies with respect to a reference year. In ﬁscal 2004,

due course. As a supplier, we also ensure that thewe added an Environmental Efﬁciency function

cables and other materials we supply are RoHS-

to DfE assessment to enable the calculation ofcompliant.

WEB
Hitachi Group’s Eco-products
http://greenweb.hitachi.co.jp/
ecoproducts/index.html(Only in Japanese)

Our new “eco” symbol
Previous

New

Example in use

Addition of the word “eco,” and usage that clearly shows the productto be an Eco-Product

Nature-friendly Products & Eco-factories

next eco49

Examples of Our Eco-Products

Magnetocardiograph System MC-6400
This device safely examines heart activity without using X-rays, ultrasound or strong magnetic ﬁelds. It measures the faint magnetic ﬁelds
generated naturally by the electrophysiological activity of the heart. It
also reduces a patient’s stress: a patient lies down on a bed fullydressed, sensors are positioned above the chest, and the measurement is completed in approximately 30 seconds.
Key Environmental Features
Degree of Improvementof Environmental Efficiency (Factors)(Reference product: prototype)
Prevention of Global Warming Factor 2.1
Resource Factor
2.4

By improving insulation to reduce helium evaporation, we haveachieved a 50% reduction over earlier models in the amount of liquid
helium required to cool the superconducting sensors, which accounts
for the majority of running costs. Size and mass of the system werealso reduced by 41% and 12%, respectively.

Hitachi High-Technologies Corporation
Magnetocardiograph System MC-6400

Super-Compact 7.2 kV Switchgear
This is a high-voltage switchgear for the steady supply of electricity at
6,000 volts from power lines to ofﬁces and factories. Switchgear performs a similar role to the breakers found in ordinary households, but
requires more space due to the large amount of electricity it handles.
The key to boosting environmental performance is reduction of size.
Key Environmental Features
Degree of improvementof Environmental Efficiency (Factors)(Reference product: 1998)
Prevention of Global Warming Factor 6.5
Resource Factor
8.3

We succeeded in reducing installation space by one-third through employing advanced insulation technology, resulting in a lighter product(66% the weight of previous models) and concomitant resource savings. The use of a modular design also enables the sharing of materials,
greater reusability, and greater transportability.

“Fresh Kyu-Hai Shirokumakun”
Room Air Conditioner RAS-S28T
This air conditioner won the Energy Conservation Center Chairman’s
Prize in 2004 for its energy efﬁciency and heating capabilities, which
are among the highest in the industry.
Key Environmental Features

Degree of improvementof Environmental Efficiency (Factors)(Reference product: 1994)
Prevention of Global Warming Factor 12.6
Resource Factor
4.0

PAGE
Integrated Management System for
Chemical Substances Contained in
Products (see p. 14)

The double accelerator system (two-stage compression gas injection
system) (a world ﬁrst in inverter air conditioners as of November 16,
2004, developed jointly with Tohoku Electric Power Co., Inc.,) and PAM
vector control system used in the compressor and refrigeration cycle
at the heart of the air conditioner deliver dramatic energy efﬁciency
and heating capabilities. The puriﬁcation and deodorization of room air
is realized through a combination of new technologies—the Kyu-Hai
ventilation control system that adjusts the dampers in the ventilation
unit, a newly developed nano-titanium catalyst air ﬁlter, and a nanotitanium deodorizing heat exchanger.

Disk Array Subsystem
SANRISE Universal Storage Platform(Overseas name TagmaStore Universal Storage Platform)
This system uses storage virtualization technology to integrate andcentrally manage multiple storage devices of different types as a single
virtual device, enabling speedier, safer, more reliable and efﬁcient data
management and utilization that reduces administrative burden andaddresses the rapidly growing storage needs of our advanced information-based society.
Key Environmental Features

Degree of Improvementof Environmental Efficiency (Factors)(Reference product: 2000)
Prevention of Global Warming Factor 26.1
Resource Factor
25.8

50

Hitachi’s Integrated Management System for Chemical Substances
Contained in Products (see p. 14) was applied to this product, which
also features improved energy efﬁciency, Ni-H batteries, and lead-free
production processes, and complies with the EU’s RoHS Directive†(from April 2005).

Hitachi Group CSR Report 2005

next eco

Double accelerator system refrigerant compressor

Highpressure

Discharge

MediumpressureLow
pressure

Gas injection
Improved efﬁciency
through recycling
vaporized
refrigerant
that would
otherwise be lost

Liquid refrigerant
suitable for heatabsorption
IntakeMixedliquidandvaporized
refrigerant
Separator
Separating
liquid fromvaporized
refrigerantCO2 Emissions from Transportation
Total Transportation volume (kt-km/year)
3,000

CO2 emissions (kt/year)

595

344

2,000

362

453

425

400
200

1,000
0

600 CO2 emissions
from transportation

2000

2001

2002

2003

2004
(FY)

0

Air
Ship
Rail
Truck

Improved outer box for HDD transport

Nature-friendly Products

Reduction of Transportation Impacts
BeforeBoosting Transportation Efficiency

Reducing Packaging

Reducing CO2 Emissions

Reducing the amount of packaging we use not only

Manufacturing inevitably involves the transportation

saves resources, but also enables more efﬁcientof parts or raw materials to factories, as well as thetransport, resulting in reduced CO2 emissions. The

transport of ﬁnished products—a ﬂow of goods that

Hitachi Group has reduced its total subcontract-results in CO2 emissions. The Hitachi Group’s CO2

ing costs for packaging under the Containers andemissions generated from transportation in ﬁscal

Packaging Recycling Law by 28% from ﬁscal 1998

2004 amounted to 453,000 tonnes. These emis-

to ﬁscal 2004. Hitachi Ltd.’s Ubiquitous Platform

sions have risen constantly since ﬁscal 2001 due toSystems Group and Hitachi Transport System, Ltd.

a rise in the number of production sites (i.e., broader

incorporated universal design concepts (see p. 16)

coverage of achievement data relating to the envi-

into a resource-efﬁcient design to develop a newronment) stemming from the expansion of the hardouter box for Wooo DVD recorders.

disk drive business overseas and the automotive

Utilizing expertise developed in packing design forequipment business in Japan.

PCs, they succeeded in reducing cardboard surface

We are currently endeavoring to improve transporta-

area by 18% while retaining shockproof properties

tion efﬁciency through resource-efﬁcient packaging

of boxes, which won a Good Packaging Award fol-

designed to take up less space, and expansion of

lowing a PC box the previous year.*2

our modal shift in long-distance transport from roadto a combination of rail and sea transport.*1

Hitachi Global Storage Technologies and Hitachi

After
improvement

PAGE
Universal Design (see p. 16)*1. “Modal shift” refers to a shift inthe modes of our cargo transport
from trunk roads to rail and sea,
which are more energy-efﬁcient andlow-pollution modes of transport.
We are making greater use of railand sea transport for trunk linetransport in combination with trucks
for transport to and from terminals.

Transport System, Ltd. improved the durability of
CO2 Emissions Reduction
through Modal Shift in Transportation

the outer boxes employed for transporting harddisk drives to overseas production sites by using

Hitachi Industrial Equipment Systems Co., Ltd.

reinforced cardboard and steel palettes, and af-

Narashino Division in October 2004 switched toﬁxing caps to the top and bottom of the boxes.

shipping 60% of its products (motors and pumps)

As a result, outer boxes are now used four times

for our Kansai Logistics Center by rail, resulting

instead of just once, reducing packaging waste by

in CO2 emissions reductions of approximately 60

80%. Changes made to the magazine case loading

tonnes.

method and number of shock-prooﬁng layers also

In efforts to promote a modal shift, it is essential

improved loading efﬁciency and enabled the elimi-

to have accurate control of logistics—in order tonation of tape sealing.

achieve the optimal combination of road and railtransport, for example. We have developed tools to
help visualize logistics information such as shipment

DVD recorder outer box*2. Japan Packaging Institute Good
Packaging Award winner (electronics and device packaging category)

Modal Shift: Hitachi Industrial Equipment Systems and Hitachi Transport System
Narashino
DivisionTokyo
Terminal

and inventory status. We also analyze performance

600 kmKansai area
joint delivery

Kansai
Logistics Center

Umeda
Terminal

data to help optimize logistics.
Hitachi Maxell Ltd.’s Kyoto Works, which had

Modal Shift: Hitachi Maxell

already been shipping its video tapes, mini discs,

Railcomputer tapes and other products to its Kanto
region warehouses by rail, started doing likewise

Kyoto
Works

Rail

for shipments to Fukuoka. Rail shipments in ﬁscal
2004 grew by 40% over ﬁscal 2003, resulting in CO2emissions reductions of approximately 550 tonnes.

Sales
WarehouseRail

600 kmNoda

600 kmTokyo

700 km

FukuokaNature-friendly Products & Eco-factories

next eco51

Eco-Factories

Global Warming Prevention
CO2 Reduction Targets and Resultswith the reference year.

Japan

The Hitachi Group as a whole invested 5 billion yen*1

in energy saving measures*1. Energy-saving investments:
Costs of deployment of inverterequipped pumps and fans, control
devices for reducing the numberof running devices, and control
systems for monitoring electricity
consumption and optimizing air
conditioner operation.

aimed at preventing

global warming in ﬁscal 2004, resulting in energy
consumption reduction equivalent to 260,000 kiloliters of crude oil.

*2. Industry organization targets:
Voluntary CO2 emissions reductionplans of industry organizations towhich Group companies belong.

CO2 emissions per unit of production have improvedin Japan, dropping from 81% to 76% compared
The Hitachi Group has set the following two targets
for ﬁscal 2010 in Japan.
1. A 7% reduction in total CO2 emissions (compared to 1990)
2. A 25% reduction in CO2 emissions per unit of

The Hitachi Group’s total emissions in Japan ofproduction (compared to 1990)

CO2—considered to be a major cause of global

Plus achievement of industry organization

warming—amounted to 2,586 kt-CO2 equivalenttargets.*2

for ﬁscal 2004, a 20% reduction compared with thereference year of ﬁscal 1990, but 13% higher thanTo achieve these targets, we launched our CO2

the previous year’s 2,283 kt-CO2 equivalent, due

Emissions Reduction System in ﬁscal 2003. Under

to the addition of eight Type 1 Designated Energy

this system, we set annual emissions targets for all

Management factories as consolidated subsidiaries,

Type 1 Designated Energy Management factories,

a 13% increase in production volume, and the use

and rank the factories from A to D according toof a different method of calculating the CO2 equiva-

performance. This ranking serves as an objective

lent of electric power. In the past we used a conver-

indicator for the top management of Group com-sion factor calculated through linear extrapolation

panies, and has prompted an increasing number offrom the Federation of Electric Power Companies ofcompanies to allocate more budget for energy-sav-

Japan’s projection for 2010, but from ﬁscal 2004,

ing activities.

we are using the Ministry of Economy, Trade andIn ﬁscal 2004, the number of factories that achieved

Industry Industrial Structure Council’s projection of

A rank increased from 26 to 32. These results are

0.36t-CO2 /MWh, which provides a clearer picture of

not only posted on the Group’s intranet, but also

our efforts, and enables the calculation of CO2 emis-

reported to Group company management person-

sions without being inﬂuenced by yearly changes innel. We have high hopes that this system will add

conversion factor.

momentum to CO2 emissions reduction efforts.
Overseas

Trends in CO2 Emissions Per Unit of Production, and Total CO2 Emissions
CO2 emissions(kt-CO2 /year) 100
5,000

Overseas
Japan

4,000

4,125

3,000

3,215

3,630

3,910

81
3,628

101

76

80

95

CO2 emissions
per unit of production (%)
100

75

80

2,755

2,914

3,932

2,586

a global response. Moreover with the migration of
our production sites to overseas locations in recent
years, our overseas CO2 emissions have increased
1.3 times compared to ﬁscal 1990, prompting us tochange overseas reduction targets as follows from

60

2,000

Global warming is of course an issue that calls for

2,829

ﬁscal 2004, using ﬁscal 2003 as a reference.

2,713

1. 5% reduction in CO2 emissions per unit of

40

2,283

production by 2010 (compared to ﬁscal 2003)
1,000
0

52

(100)
1990 2001
Reference

(80)
2002

Hitachi Group CSR Report 2005

next eco

2003

2004

(97)

(93)

2005 2010
Medium- Finalterm target
target20
0(FY)

New Previous
Japan
Overseas

Due to expanded production and other factors,
CO2 emissions per unit of production for ﬁscal 2004
grew by 1% over the previous year.

Ladle Heating Device Compared with Earlier Methods
Type

Earlier (ladle heated from above)

Improved (ladle heated horizontally)

Black smoke generated
by incomplete combustion

Front coverCompletecombustion
Simple burner

Wasted heat
Heating method
Compressed
air
Kerosene

Keroseneburner(blower,kerosene)

Kerosene consumed(heating conditions)

100 liters per hour
Heating time: 60 minutes per cycle

60 liters per hour
Heating time: 20–60 minutes per cycle

Combustion status,
work environment

Chance of accidental ﬁres and black smoke
due to incomplete combustion

Complete combustion

Examples of Energy Conservation
Improved Ladle Heating Method

processes, and continues to work on reduction of

Hitachi Metals Wakamatsu, Ltd. uses centrifugal

emission of such gases through using alternatives

and other casting methods to manufacture mill rolland installing abatement devices for convertingand injection molding machine parts.

these gases to less harmful substances.

The ladle, which is the container used in the process

In ﬁscal 2004, we installed ﬁve such devices andof manufacturing castings to carry molten iron withstarted using an alternative to SF6, as a result of whicha temperature of at least 1,400°C, is usually lined

we achieved the equivalent in CO2 of 70,000 GWPt.†

with refractory (heat-resistant) bricks pre-heated

After considering the concept behind total emis-

to maintain product quality by preventing a loss ofsions volume regulations, the Hitachi Group has es-

temperature by the molten iron. The versatility of

tablished the following emissions reduction targets

simple manually operated kerosene burners makes

for SF6:

them the usual choice for carrying out this preheat-

1. Medium-term target: 30% reduction by ﬁscal

ing from above, but this method invariably resultsin energy losses from considerable wastage ofLadle being heated by the new device

2005 (compared to ﬁscal 2003)
2. Long-term target: 35% reduction by ﬁscal

heat, incomplete combustion, and excessive use of2010 (compared to 2003)

fuel. To resolve this issue, the Energy Conservation
Subcommittee and other parties reconsidered theGreenhouse Gas Emissions and Compositionpreheating process, and came up with an original

Greenhouse gas emissions(thousand tonnes GWP)
150

design for devices that heat the ladle’s brick lining

10

combustion and overheating, resulting in a 56%
reduction in kerosene consumption. The installation

40
100
85

of seven such devices yielded total annual savingsof 320 kiloliters of kerosene.

HFC
PFC
SF6

130

from a horizontal position, and prevent incomplete

80

21

6

70
17

58

50

3

50

49
42

7 41

7

34

Energy Conservation Overseas

Hitachi Global Storage Technologies invested 180

0

2000

2001

2002

2003

2004

(FY)

million yen in energy conservation in ﬁscal 2004,
resulting in energy savings equivalent to 3,100 kiloliters of crude oil. Of this, 600 kiloliters were saved

Use of Alternative Energy

by the Singapore plant raising the temperature of

The Hitachi Group’s use of solar and other alterna-

chiller water used in the clean room air conditioning

tive energy for ﬁscal 2004 amounted to 16,000 kilo-system by 1°C without adverse impact on the clean

liters (crude oil equivalent) in heating, and 74 million

room working environment.

kWh of electricity, representing 4.3% of total heat-

Reducing Greenhouse Gases

ing, and 1.6% of total electricity consumed—about

Hitachi, Ltd. is participating in the“Team Minus 6%” nationwide
citizens’ campaign to prevent global
warming.

the same level as the previous year. We are also

Manufacturing processes result in the discharge notcommissioning wind-generated electricity throughonly of CO2 but also other greenhouse gases*3 such

the Japan Natural Energy Co., Ltd., and about 90%

as PFCs, HFCs, and SF6. The Hitachi Group hasof the electricity consumed by the Hitachi Group’s

eliminated the use of these three gases mainly frompavilion at the 2005 World Exposition Aichi is cov-

thin-ﬁlm and high voltage breaker manufacturing

ered by this electricity.

*3. Greenhouse gases: CO2, CH4,
N2O, PFCs (perﬂuorocarbons), HFCs
(hydroﬂuorocarbons, which are CFC
alternatives), SF6. The greenhouseeffect of HFCs is 102 to 104 times
that of CO2.

Nature-friendly Products & Eco-factories

next eco53Chemical Risk Management
CEGNET System
Trends in laws
and regulations
Trends in voluntary
management

Risk information

Preliminary inspection for
new chemical substances

Tracking thevolumes released
and transferred

Data on releases

PRTR
reporting

Feedback

Handlingof chemical
substances

Reduction of releases

Prevention of leakage

Eco-Factories

Reduction of Chemicals
230,000 tonnes of chemicals, comprised of 127

Chemical Risk Managementof the 354 groups subject to the PRTR Law. The

In 1998 we launched CEGNET (Chemical Envi-amount released and transferred was 1.4% of the*1. CEGNET: Chemical
Environmental Global Network

ronmental Global Network),*1 an online system fortotal amount handled, the top three substances in

the common management of chemicals by Groupterms of emissions being toluene and xylene (com-*2. “Reduce” category substances:
Substances classiﬁed by the HitachiGroup as “prohibited” and “reduce,”plus substances selected byindividual facilities

companies in Japan.

ponents of paints), and ethylene glycol monoethyl

When considering the introduction of a new chemi-

ether (used as a plastic solvent). In total, 108 fa-

cal, we collect information about its hazardous

cilities submitted reports to local governments asproperties, as well as related laws and regulations,required under the PRTR Law.

*3. SPM: Suspended particulatematter—particles with a diameterof 10 microns or less that aresuspended in the atmosphereetc., and the Special Committee for Chemical
Substances assesses the pros and cons of using

Voluntary Controls
to Reduce Environmental Impacts

the substance. When using hazardous chemicals*4. Photochemical oxidants: Ozone,
peroxyacetyl nitrate and otheroxidants created from photochemical reactions (limited to substancesthat separate iodine from neutral
potassium iodide, and excludingNO2)*5. PRTR: Pollutant Release andTransfer Register. 354 groupsof substances (Attached list 1 ofrelated Cabinet Order) are subject
to Japan’s Pollutant Release andTransfer Registers (PRTR) Law(known formally as the Law
Concerning Reporting, etc., of
Release of Speciﬁc Chemical
Substances to the Environment andPromotion of Improvement of Their
Management) established in 1999.

controlled by laws and regulations, we also work

In addition to the above chemicals, we voluntarilyclosely with the related departments at each facility,

control the release or transfer of 1,400 substances,including those in charge of design, manufacturing,classifying them as substances to “prohibit,” “re-and purchasing, to ensure proper management.

duce,” or “control.” We set a target of reducing

Survey of Substances Under the PRTR Law

the total releases of the substances in the “reduce”
category*2 by 70% in ﬁscal 2005 compared to ﬁs-

The Hitachi Group collects data on all substancescal 2000, and have been working to achieve thisthat it handles in amounts of 10 kilograms or moretarget, our efforts resulting in reductions by 44% in

per year, even if the amount is below the minimum

ﬁscal 2004. In the future, we will work to reducefor mandatory reporting under Japan’s Pollutant

emissions of SPM*3 and photochemical oxidants*4

Release and Transfer Registers (PRTR) Law (known

through extending voluntary control to alcohol andformally as the Law Concerning Reporting, etc.,

other VOCs (volatile organic compounds) not gov-of Release of Speciﬁc Chemical Substances toerned by the PRTR Law.

the Environment and Promotion of Improvementof Their Management), which entered into force inPreventing Pollution of Soil and Groundwater

April 2001. We monitor all discharges into the atmo-

We are working to improve controls to prevent thesphere and public waters, as well as transfers suchleakage of chemical substances by converting un-

as removals in the form of waste from facilities, andas efﬂuent into sewerage systems.

Trend in Emissions for Substances Targeted for Reduction

During ﬁscal 2004, we used a total volume of
Survey Results for Substances Covered Under Japan’s PRTR Law*5( Volume of releases and transfers in FY2004)
Volume transferred: 1.4%
Volume released: 1.4%

10

Hitachi Group CSR Report 2005

next eco

10.6
4.4

10.8
3.9

70
9.7
3.6
44

5

Ethylene glycol
monoethyl ether: 7%

6.2

6.9

5.8
1.8

6.1

4.0
Volumereleased:
3.3 ktXylene:Toluene:24%
50%
Breakdown of volume released

0

2000

(%)
100

Trend in emissions
for substances targeted
for reduction

Others: 10%

Used for products, etc.
(Including amounts throughtreatment processes) 97.2%
Volume handled, released, and transferred

54

100

Styrene: 3%
Ethylbenzene: 6%

Volumehandled:235 kt(kt/year)
15

2001

2002

2003

7.4

50

4.7
1.4
3.3

2004

2005 (FY)
Target0

New Previous
Excluding PRTR Law class 1
PRTR Law class 1 substances

Substances Subject to Voluntary Control

Ozone depleting
substances

Poisonous
and deleterious
substances

Greenhouse
gases

Substances
subject to theIndustrial Safety
and Health Law

Substances subject
to the PRTR Law

Substances
subject to air
and water
pollution laws

Prohibited substances (100):
benzene, dioxins, etc.

Hazardous
substances

Substances subject
to the Chemical
Substances
Control Law

Substances targeted
for reduction (270):
Methylene chloride, lead, etc.

High-pressure
gases

Controlled substances (1,030):
Styrene monomers,
ethanolamine, etc.

PRTR Law: Law Concerning Reporting, etc., of Release of Speciﬁc Chemical Substances tothe Environment and Promotion of Improvement of Their Management (Pollutant Release andTransfer Registers (PRTR) Law)
High-pressure gases: High-Pressure Gas Safety Law
Hazardous materials: Fire Service Law
Health and safety law: Industrial Safety and Health Law
Chemical Substances Control Law: Law Concerning Examination and Regulation of
Manufacture and Handling of Chemical Substances
Air & water pollution laws: Air Pollution Prevention Law, Water Pollution Prevention Law
Poisonous and deleterious substances: Poisonous and Deleterious Substances Control Law
Ozone depleting substances: Law Concerning the Protection of the Ozone Layer through theControl of Speciﬁed Substances and Other Measures (Ozone Layer Protection Law)
Greenhouse gases: Law Concerning the Promotion of the Measures to Cope with Global
Warming

derground piping, pits and tanks to above-groundfacilities, and conducting thorough inspections. For

Reduction of Released Chemicals(Hitachi Chemical Group)

underground tanks that have still not been moved
above-ground, we work to prevent leakage by per-

Hitachi Chemical Group is implementing sustained

forming thorough inspections, including ultrasonicefforts to reduce the amount of chemicals released

tests and measures to prevent corrosion.

at Group facilities. The amount released into the

At about 90% of the approximately 200 sites that

atmosphere in ﬁscal 2004 was 2,400 tonnes, rep-

have been prohibited from use due to contamination,

resenting a 64% reduction over ﬁscal 2000. In ﬁscal

either clean-up operations have been completed or

2005, the Group is aiming to increase this reduction

we have conﬁrmed that no problems remain. At theto 70% of the ﬁscal 2000 total.

remaining sites, we are continuing with clean-up

As one initiative aimed at reducing atmosphericmeasures, and at sites where clean-ups have been

emissions in ﬁscal 2004, Hitachi Chemical’s

completed, we are continuing to monitor ground-Goshomiya Works installed a thermal storage burner

water quality.

for treating gaseous emissions of the toluene-based
solvent from the adhesive ﬁlm coating machines.

Storage of PCB-Containing Devices

This yielded a reduction in toluene emissions ofJapan’s Law Concerning Special Measures Against

1,000 tonnes compared to ﬁscal 2003.

PCB Waste stipulates that polychlorinated biphenyl(PCB)*6 waste from used insulation oil, must be

This treatment equipment for emitted gas collects

stored under strict control and properly disposed ofall solvent gas from drying furnaces and local ex-

by July 2016. The Hitachi Group will continue strin-

haust, feeding it through collection ducts into a ther-gent PCB waste storage controls to prevent loss

mal storage burner where it undergoes completeof any stored PCB waste during long-term storage

combustion at high temperature to create a clean

by putting them under lock and key and by using

non-hazardous discharge that is released from anindividual identiﬁcation of each unit. We also takeoutlet into the atmosphere. A heat collection device

preventive measures against leakage in the event ofis used to recover the heatequipment breakage by creating berms and using

generated from combustion

special storage containers. Concurrently, we are

as steam.

developing proper disposal plans concerning such

To comply with VOC regula-stored PCB waste.

tions in ﬁscal 2005, Hitachi*6. PCBs: Oily substances whose
manufacture and import is banned
in Japan due to their toxicity. PCBs
have been placed in long-term
storage, but instances of PCBs in
storage going missing have led
to concerns about environmental
pollution. A law that entered into
force in July 2001 requires theproper disposal of these substancesby June 2016.

Chemical will extend its useof treatment equipment for
emitted gas, and implement
further reductions throughvoluntary control efforts.

Collection duct
for emitted gas

Combustion/
Regenerative
Outletretention
Heat zone
Puriﬁed gas
zone
collection
deviceTreatment equipment for emitted gas(regenerative deodorizing method)

Emitted gas treatment process

Outlet (into the atmosphere)

Production site
Emitted gas
Adhesive ﬁlm
coating machineCollection duct
for emitted gas

Emitted gas

Combustion/retention zone (oxidation)

Heat collection device
Regenerative zone

(Emitted gas intake)Puriﬁed gas

Regenerative zone

(Heated and temperature risen)

Steam (heat collection)

Nature-friendly Products & Eco-factories

next eco55

Breakdown of Recycling Methods

Breakdown of Final Disposal Volume by Type

Trend in Volume of Water Usage

Electronic devices 3%

Consumption (units of 10,000 m3/year)

Information & telecommunication systems 2%

Digital media/
consumer electronics 4%

Thermal recycling 7%

Logistics and service, etc. 1%

8,000Power and industrial systems 6%
Reuse 23%
6,000

588
197
157
1,018 77 956 77
732

3,114

4,000

2,665

287
293
494
519
774 216 717 23
2,770
2,855

4,378
3,708

Materials
recycling 70%

High-function materials 84%
2,000

0

2001

2002

2,344

2,543

2003

2004

Municipal water(overseas)
Industrial water(overseas)
Groundwater(overseas)
Municipal water(Japan)Industrial water(Japan)Groundwater(Japan)(FY)

Eco-Factories

Waste Reduction and Efficient Use of Water Resources*1. Final disposal site waste: Waste
disposed of through landﬁll afterincineration and other treatment*2. Zero emissions: Recycling resources to reduce waste generated
in the process of production to as
close as possible to zero. Different
companies might have differencesin the exact deﬁnition.

Practical waste management
education through small classes

Reduction of Final-Disposal Waste

Building a Recycling Network

The Hitachi Group is working to reduce the amount

Hitachi, Ltd.’s Industrial Systems and Power

of waste going to ﬁnal disposal sites*1 by promoting

Systems groups have joined hands with Tokyo Eco

the “3Rs” of reduce, reuse and recycle. Our targets

Recycle Co., Ltd. to build a network for recycling

were to reduce waste volume to below 80% of ﬁscal

electrical goods such as control panels that are

1998 levels by the end of ﬁscal 2005, and below

generated by reconstruction work. Up to now most

70% by the end of ﬁscal 2010. In ﬁscal 2004, weof such goods have been sold on both domestic

achieved a reduction to 62%, which means thatand overseas markets as scrap metal, but Tokyo

from ﬁscal 2003, we have achieved the 2010 target

Eco-Recycle dismantles them by hand, and recycles

two years in succession, and we are accordingly

90% of the components. While this is costly, we feel

considering the setting of a new target.

that it is important from the viewpoint of reducing

The Hitachi Group deﬁnes “zero emissions”*2 as

the risk of illegal disposal or resale.

having “1% or less of the total waste generated in a

Each and every facility is implementing waste reduc-given ﬁscal year going to ﬁnal disposal sites, and thetion measures tailored to the nature of their busi-

volume going to ﬁnal disposal of less than 5 tonnes

ness. Hitachi Metals, Ltd. has deployed equipment

per year,” and is working to achieve this objective.

for recycling waste plastic, and is now recycling not

During ﬁscal 2004, the number of facilities achieving

only its own, but also customers’ and other waste

zero emissions rose by 29, making for a total of 71.

plastic to produce plastic raw materials. At Hitachi
Global Storage Technologies Inc.’s Thailand plant,
alcohol-impregnated cloth, a clean room waste

Trend in Final Disposal Volume Reduction(kt/year) 100
200

150

148
82

135
63

147
81

100

50

66

product, is recycled as a fuel for a cement factory.
New Previous
(%)
100
Japan
Overseas

Trend in ﬁnal disposal
volume reduction

72

62
98
51

103
59

96
53

47

44

43

1999

2000

2002

2003

70
103
57

The Hitachi Group puts priority on education for
managers to ensure that waste is treated appro50

2001

53
33

46

Hitachi Works, where much waste treatment is02004 FY2005 FY 2010 (FY)(target) (target)(waste kt/year)
1,000

600

216

New Previous
(%)
Japan
100
Overseas
85
84

Recycling rate

79
765

772
702
113

670
48

678

708

711

549

589

117

143

150

642

622

565

561

cooling water and improving production efﬁciency.
equipment for ion exchange, reverse osmosis, andultraﬁltration. Through such initiatives, water con-1998

next eco

Efficient Use of Water Resources

Hitachi Displays, Ltd., for example, has introduced561

0

Hitachi Group CSR Report 2005

were certiﬁed in this way.

of industrial water by such measures as recycling

200

56

a test, and successful candidates are certiﬁed as

We are making efforts to reduce our consumption

130
50

400

outsourced, practical training is given, followed byEnvironmental Ofﬁcers. In ﬁscal 2004, 90 personnel

Trend in Waste Emissions

800

priately and avoid the risk of involvement in illegal
treatment or disposal. Particularly at Hitachi, Ltd.’s

66

0
1998

92
59

80
119
66

Education in Appropriate Waste Treatment

1999

2000

2001

2002

2003

2004

0
(FY)

sumption by the Hitachi Group in ﬁscal 2004 wasdown to 78% of the level in ﬁscal 2001.

Worldwide Stakeholder Collaboration
Our stakeholders include not only the customers
who constitute the basis for our activities,
but also local communities in which our facilities are located,
the shareholders and investors who help us to carry out our business,
our suppliers who are equal partners in business, and our employees,
without whom Hitachi can not function. The Hitachi Group aims to workwith all of these stakeholders to create a sustainable society,and to build the partnership for such collaboration,
we put priority on the disclosure of information, dialog,
and activities as a global citizen.

Global Information Disclosure
Booth at Eco-Products International Fair 2004

conserve the natural environments of our facilities,

The Eco-Products International Fair 2004, the ﬁrst

and open them up to the local community.

Eco-Products Exhibition in an Asian country otherFor example, when Hitachi, Ltd. built its Central

than Japan was held from September 2 to 4, 2004, in

Research Laboratory in Tokyo, in 1942, it made ev-

Malaysia.*1 Under the theme of “Next Eco—Together

ery effort to conserve the natural environment withinwith Hitachi,” the Hitachi Group participated along

the premises, and about 27,000 trees and bushes

with about 80 other companies and organizations

now ﬁll the gardens, which also boast a naturalfrom throughout the world, introducing its Malaysianspring that feeds into the Nogawa River. Swanssites, and exhibiting such eco-products as printed-

inhabit the large pond, and the woods support awiring board material adapted for the lead-freerich diversity of birdlife. Opened to the public twice

solder process, and amorphous materials.

yearly, the gardens receive about 3,500 visitors a

DialogFrom top:
Eco-Products International Fair
2004, elementary school tour to
Hitachi Central Research Laboratory,
Environmental Town Meeting*1. Eco-Products International
Fair 2004 held in Malaysia by the
Asian Productivity Organization(APO), Federation of Malaysian
Manufacturers (FMM), and National
Productivity Corporation (NPC),
Malaysia

year, and are also used as a location for elementary
school social studies tour groups.

Environmental Town Meetings

From ﬁscal 2001 we have held Environmental Town

Education—“Let’s Talk About Helping the Earth”

Meetings† as forums for dialog with stakehold-

In March 2004, we distributed “Let’s Talk Abouters on environmental matters. In ﬁscal 2004, theHelping the Earth” to 200,000 households of Hitachi

venue was Hitachi, Ltd.’s manufacturing base inGroup employees and local communities to com-

Ibaraki Prefecture. Participants from the local com-municate our “Eco-Mind” concept to children. In

munity were given a tour of Hitachi’s Mito Works,

2005, we issued “Let’s Talk About Helping the Earth:while Hitachi personnel answered questions from

Forests are Full of Small Surprises,” which seeks toparticipants and listened to their candid views on

nurture interest in nature through describing thestakeholder collaboration.

roles played by forests, and introducing the natural

This dialog made us realize that although we had

environments to be found in the Hitachi Group’s

long been operating on the large property for years,

properties and the means used to conserve them.

Educational booklet:
Let’s Talk About Helping the EarthWEB
http://greenweb.hitachi.co.jp/en/
pdf/forests-surprise.pdf

we had not done enough to inform the local community about the production and environmental

Support for School Education

management activities being carried out within the

We feel that it is important for corporations to com-

Mito Works.

municate how they are helping to protect the global

In the future, we plan to take a long term view andenvironment to the younger generation. Hitachi, Ltd.

develop closer communication with the local com-

supports the general studies curriculum of middle

munity.

schools by opening its doors for visit from groups ofActivities as a Global Citizen
Local Community Access to Natural Spaces
on Company Grounds

middle school students. In ﬁscal 2004, six students
from Itabashi Ward Shimura No. 4 Middle Schoolin Tokyo visited the company, where they wereintroduced to Hitachi’s key environmental policies,

Hitachi founder Namihei Odaira was fond of saying,environmental measures related to manufacturing,“Do not disturb good trees; build around them.”technologies for preventing global warming, andIn the spirit of those words, we do our utmost to

also paper recycling methods.

WEB
Environmental Town Meeting
http://greenweb.hitachi.co.jp/
stakeholder/townmeet04.html(Only in Japanese)

Worldwide Stakeholder Collaborationnext eco57

Sustainable Business Models
The Hitachi Group is committed to the creation of sustainable business models—businesses
with a good balance between economy, society and the environment.
We have already created and are promoting business models for a recycling-oriented society,with a focus on the concepts of “reduce, re-use and recycle.”
We have also established a Sustainable Business Committee,
and by sharing information among the affiliated companies of the Hitachi Group,
we are pursuing new business models to lead the way to a sustainable society,including through technology, research and development.

takes advantage of different material densities, andResource Recycling Models

an innovative electrostatic separation method, the

95% PVC Recycling [ Hitachi Cable Group ]ﬁrst in this industry, that exploits different electro-

WEB
Hitachi Cable
Discarded electric wire & cable collection network & recycling system
http://www.hitachi-cable.co.jp/eco/
recycle.htm(Only in Japanese)

The Hitachi Cable Group has played a pioneering

static charges between different materials. With

role in the establishment of a business model forthese methods, we have achieved a recycling rate

the recovery and recycling of used electric wire andof 95% for PVC material.

The company ﬁrst launched its recycling technology

Computer Recycling Service Offers
Information Security [ Tokyo Eco Recycle Co., Ltd. ]WEBTokyo Eco Recycle Co., Ltd.
http://www.tokyo-eco.co.jp/(Only in Japanese)for discarded electric wire and cable in 1972, when

Tokyo Eco Recycle Co., Ltd. was established init established a system for the recovery, pulveriza-

1999 as a corporate response to Japan’s Law fortion and re-making of conductors from copper andRecycling of Speciﬁed Kinds of Home Appliances.

remaking of pellets from insulation materials. The

In ﬁscal 2004, its rate of recycling for four consumer

collection of discarded electric wire and cable waselectronic goods of commercial value (televisions,

expanded across Japan in 2000, and today there

refrigerators, washing machines and air condition-

are six collection points located throughout the na-ers) exceeded the government standards by a widetion from Hokkaido to Kyushu.

margin, and the company achieved zero emissions

After the electric wire and cable is recovered, it isto the landﬁll for the third consecutive year. In 2005,

sorted, then thick cable is disassembled, thin wire isthe company won the 9th Honda Prize for Recycling

pulverized, and the scraps are then separated into

Technology Development, for achieving zero emis-

copper and insulation materials.

sions in the household electrical appliance recycling

Methods used for separation of insulation material

division.

include the use of a gravity separation method that

In recent years, this company has been concentrat-

cable such as from construction sites.

Electrostatic Separation System
Mixed plastic
carrying static charge
Negative charges
Positive charges Positive electrodes
Supply tray
High voltage
power supply

Recycling Process of Discarded Electric Wire & Cable

Pile of recovered
electric wire & cable
Discarded electric
wire & cableCollection

FeaturesCollection from typicalconstruction sites:
Surplus electric wire& cable after new construction
Discarded wire& cable after demolition58

Hitachi Group CSR Report 2005

next eco

Rotation drum
electrodes

GroundDisassembling of
insulation materials

Containers forseparated materials

Nugget insulationmaterials

NuggetInsulationmaterials

Disassemble

Copper

Separate

Reﬁne

RecycleSorting

Sorting
electric wire & cable

Vibration-induced
separation by density

Copper nuggets

Processing and Recycling Devices/Media Containing Confidential
User properties (Classified data)
IT equipment(PC, server, etc.)

Hard disk drive

User responsibility

Information recording media
Data
deletionanddestruction
FDD

MO

CD

Recyclingandproperprocessing

VTR
Industrial
waste contract

Work contract

Tokyo Eco Recycle Co., Ltd.
E.g., Hard disk drive destruction service includes physical destruction and on-site service
Material recovery
Perforation takes
approximately
15 seconds
per unit

ing on the recycling of personal computers. Since

Drill perforation(four locations)

Scrap stainless steel
Scrap aluminum
Precious metals, etc.

it is critical to prevent the leakage of data that remains in hard disk drives, the company introduced
a data leakage prevention service that uses secure

Outline of “HDRIVE” System

methods to disassemble equipment. This service
can also be offered directly at the customer’s ofﬁce.
A special workroom was set up in the factory withOperational data

a ﬁnger vein authentication system and other devices installed for security control, where personal
computers are processed and recycled. After the

Hitachi inverter

processing stage, materials are recycled into metals

Hitachi motor

Hitachi Ltd.

Fans, pumps and blowers
Statement of energy
savings calculated
Equipment delivery
After-sales service

Customer factoryand plastics, etc., by means of a recycling system
similar to one used for household electrical appliances. Besides hard disk drives, a similar process

Notiﬁcation of
beneﬁts delivered

Payment for use

is used for media such as ﬂoppy disks, electromagnetic tape and CD-ROMs.

Payment for use

Financing window(Hitachi Capital Ltd.)

Energy Circulation Model

Notiﬁcation of
beneﬁts delivered

Remote monitoring

Energy-Saving Service Solution [ HDRIVE ]Hitachi, Ltd. is building a business based on“HDRIVE,” a service that helps industrial customers
conserve energy without paying any initial costs.
Hitachi offers to install inverters and high-voltage

Business Contributing to a Sustainable Society

motors in fans, pumps and blowers at customer

Monorail Development [ Chongqing City, China ]facilities free of charge, for equipment in which

Many cities in the world need new transportationenergy-saving can be expected. Under a ten-year

systems that can mitigate trafﬁc congestion while

contract, a ﬁxed percentage of the cost savings

also being environmentally friendly. As one answer,

generated from monthly energy savings is applied

Hitachi has developed and constructed straddle-

as a service charge. The amount of energy saved

type monorail systems, and has accumulated about

is calculated from the equipment’s operating data,

40 years of experience since the opening of themeasured by monitoring device. HDRIVE also of-Tokyo Monorail.

fers a new ﬁnancing approach that emphasizes the

In the city of Chongqing in China 13.7 km of this typecustomer’s cash-ﬂow and helps reduce investmentof system began operating in June 2005. Due to therisks when customers change their operations. At

rapid growth in automobile use, trafﬁc jams and air

the Eco-Products 2004 Exhibition, the HDRIVE waspollution have worsened year-by-year in the city.

awarded the Chairperson’s Prize of Eco-Products

The straddle-type monorail system helps to combat

Awards 2004 (in the services category) as an in-these problems, and is being considered an impor-novative and environmentally-conscious service.

tant new type of urban trafﬁc system. Construction

By the end of ﬁscal 2004, the HDRIVE service hadfor a monorail is in progress on Sentosa Island in

been introduced in 50 cases.

Singapore and slated for operation in 2006.

Straddle-type monorail(Chongqing City, China)

Sustainable Business Models

next eco59

T O P I C S

From Ubiquitous Technology andClean Energy to Environmental Assessment(Environmental Technology Display in HitachiGroup Pavilion at the 2005 World Exposition)

The theme of the Hitachi Group Pavilion’s exhibition is“Nature Contact—Interacting with endangered animals
brought back to life by Hitachi IT.” It is an “experientialzone” where rare endangered animals on the verge of extinction are revived with images, and visitors can “interact”
with these animals. The personal information viewer in the
pre-show is equipped with fuel cells designed for mobile
devices. The fuel cells use methanol as fuel and cause hydrogen ions to react with atmospheric oxygen to generate
electricity. Quiet and vibration-free, they emit only carbon
dioxide and water vapor. Hitachi is currently developing anelectrolyte membrane that will prevent the release of waterparticles.
Bifacial photovoltaic solar modules were installed on thepavilion exterior. The pavilion’s energy is partially sourced
from the energy generated by the modules. Because light

can be received efﬁciently from both sides, the amount of
power generation is 1.3 times that of conventional modules.
Moreover, about 90% of the electric power used during theoperation of the Hitachi Group Pavilion is sourced by wind
power, utilizing “green power” procured through the Japan
Natural Energy Company Limited.
We plan to recycle 100% of four of the pavilion materials(concrete, asphalt, structural wood, and steel) after the
exposition closes. For other materials, we plan to recycle
more than 95% of the material.
We predict that the environmental approach taken for thispavilion will result in a 441-tonne reduction in CO2 emissions (about 60%) compared to the use of conventional
methods.
This estimate was done using an “assessment solution” forenvironmental impacts developed by Hitachi, Ltd. called SILCA. SILCA, or System Integration – Life Cycle Assessment,
calculates and assesses the environmental load (CO2 emissions) at each stage—covering all the service stages, fromdesign and development until a product is recycled.
For example, the zone where visitors take rides wasevaluated as follows. First of all, dioramas in most themeparks use FRP*1 in the background scenery and robots
are made to move. The Hitachi pavilion had backgrounds
molded from polyurethane and the images of animals were
produced by computer graphics, with the images instantaneously synthesized into the diorama background basedon sensor location information introduced through MR(Mixed Reality) technology.
In other words, reproduction and recycling of the pavilion
are facilitated because there is no need for the energy to
power any robots or any need for maintenance. As a result,
the CO2 emissions were lower by 367 tonnes than had weused a conventional system. This is equal to the electrical
power usage of 70,000 households in one day.
Finally, a 0.4-square-millimeter radio frequency identiﬁcation (RFID) IC chip, known as the “μ-Chip,” was used for the
ticket admissions system at the EXPO 2005. When compared to the conventional system of tearing ticket stubs
to track attendance, the SI-LCA assessment estimated a
27-tonne reduction in CO2 emissions.

Bifacial Photovoltaic Solar Module

Personal Information Viewer equipped with fuel cells

At the 2005 World Exposition in Aichi, Japan (March
25 – September 25, 2005), the Hitachi Group presented
an exhibit at the Hitachi Group Pavilion. In line with the
Exposition’s main theme, “Nature’s Wisdom” and Hitachi’s
concept in pursuit of “realizing a ubiquitous informationsociety through the use of sophisticated IT,” this pavilion
introduces environmental solution technologies.

WEB
EXPO 2005“The Hitachi Group Pavilion”
http://hitachi-pavilion.com/index.html*1. Fiber-reinforced plastic. Afterbeing molded plastic is thenstrengthened using ﬁber and resin.

The Hitachi Group Pavilion Exterior

Preparation
Paints (volatile organic compounds), materials and energy
Robot system

Fiber-reinforced
plastic molding

Operation
Fuel

Production andcontrol of robot

Production of ride and rail structures
CO2
Material and energy

CO2, etc.
Fuel

MR system

Polyurethane molding and HDD (Hand Held Display),main servers, etc., MR contents

CO2Electrical power, water, etc.
1. Power for robot operating
2. Power for ride operation and control
with navigator
3. Operators, times of ride and robot
maintenance
CO2
Electrical power, water, etc.
1. Power for MR contents
2. Power for ride operationand control
3. Operators
Ride control

Production of rail structure and ride
CO2, etc.

Termination

CO2

Electrical
power

Diesel fuelElectrical power
Industrial waste
disposal in
Aichi Prefecture

CO2, etc.

CO2 and waste

DieselElectrical power
Recycling
IT equipment reuse

Ride control

CO2, etc.

CO2 and waste

Example of Environmental Assessment of the Hitachi Group Pavilion Using SI-LCA (System Integration – Life Cycle Assessment)

60

Hitachi Group CSR Report 2005

next econext eco
Action Plan for Fiscal 2005
Another Step toward Sustainable Society
Hitachi’s Environmental Vision for 2015

Hitachi’s present Environmental Vision (Sustainability Compass) is our vision
for the year 2010. During ﬁscal 2005, we will be reviewing the scenarios of ourEnvironmental Vision and considering concrete plans to accomplish our goals by
2010, as well as long-term plans for 2015.

Introducing an Environmental CSR-Compliant
Monozukuri (PLM and Total SCM) System

Hitachi is developing the Integrated Management System for Chemical Substances
Contained in Products based on the approaches in the Environmental CSRCompliant Monozukuri Standards (see p. 14 –15). We intend to completely introduce the system by June 2006 for products that must comply with the European
Union’s RoHS Directive,† and also aim to apply the system to other products
during ﬁscal 2006, in an effort to achieve integrated management of chemical
substances in Hitachi Group products.
Toward the Achievement of New Objectives• Improvement of Environmental Efficiency and the Expansion of Eco-Products

We have established concrete targets to be achieved by 2010 concerning
the improvement of environmental efﬁciency of products and the expansionof Eco-Products. These objectives will be extended to cover all of the HitachiGroup’s business groups and afﬁliated companies, and the scope will be will
be expanded to 37 target products.
• Support for the Environmental Initiatives of Suppliers

To help all of our main suppliers strengthen their environmental protection
activities, we are supporting their efforts to acquire ISO 14001 and other thirdparty environmental certiﬁcation by the end of ﬁscal 2006.
• Improving the Efficiency of Product Delivery

We are promoting initiatives to improve transport efﬁciency and to implement
modal shifting. We have set a target of reducing CO2 emissions from the transporting of products by 10% from ﬁscal 2000 levels by ﬁscal 2010.

next ecoThird-Party Commenton the Hitachi Group CSR Report 2005

We encourage the Hitachi Group to make some improvementsin the self-assessment system relating to corporate social responsibility (CSR),
while continuing the various efforts covered in this report.
The Valdez Society(From left: Mr. Kojiro Tanaka, Mr. Yasunobu Okada,
Mr. Yoshiki Midorikawa and Mr. Tamio Yamaguchi)• Hitachi’s positive approach is evident in this ﬁrst CSR Report,“GREEN 21” with an environmental efﬁciency rating and a ﬁnancial

which evaluates the current status and indicates the Group’s fu-

index.

ture orientation. The report attempts to refocus on the company’s• We commend the Group’s proactive approach toward using infor-

Fundamental Credo from the viewpoint of CSR, with a view tomation tools for handling chemical substances. Since a reduction

enhancing efforts to implement concrete actions. Through this,in the amounts of chemicals used is the main issue here, however,Hitachi demonstrates one possible approach to address CSR.

in the future it will also be important to mention chemical-related

Perhaps there is still room for progress, however, by more system-

policies and strategies, as well as achievements over time.

atically linking together key components: the company’s vision for• We encourage the Hitachi Group to consider issues such as

the future, self-assessments relating to CSR, and the implementa-“Worldwide Stakeholder Collaboration” and “Sustainable Businesstion of the eight points of the CSR Policy.

Models” from a wide perspective, as concepts that involve all as-• What draws our attention in this report is the implementation andpects of the environment, society and economy.

disclosure of CSR self-assessments at a level of excellence that
we have not yet seen in other corporations. The results displayed

Response from Hitachi, Ltd.

on “radar charts” are high in most areas, but we wonder whether

We will clarify our collective CSR vision in terms our approach to

any Japanese corporation today can be rated so highly on CSR

the economy, environment and society, centering on the CSR

criteria. We encourage the Hitachi Group to increase the reliability

Policy of the Hitachi Group. With regard to self-assessments, forof the evaluation by clarifying such aspects as the methodology of

the current report, we mainly covered the activities of Hitachi, Ltd.,

assessment and the evaluating team members, and continue theirwith consideration of survey results from third-party assessment

efforts while working to improve the CSR system.

organizations, in order to identify the areas where we should focus•In regard to the Hitachi Group’s environmental efforts, it is appar-

our attention. In the future, besides improving the accuracy of as-ent that there are steady activities in accordance with the EcoValue

sessments, we will also make an effort to improve the coverage ofPlan 2010. Moreover, “GREEN 21,” a unique system that evaluates

all Group companies, and to raise the level of these activities for

the Group’s environmental performance, creates incentive and is

the entire Hitachi Group.

strongly commended for its practical approach.

Regarding environmental aspects, we will consider compatibility• For further progress, we urge the Hitachi Group to explore thewith our overall CSR concepts as we review our Environmental

issue of developing an eco-management index that combines

Vision and long-term plan during ﬁscal 2005.

† Glossary
Nature-friendly Products & Eco-factories
One theme of the Hitachi Group’s Environmental
Vision relating to the manufacturing of environmentally friendly products.
➔ P. 38, 39, 40, 41, 42, 49

Environmental Town Meeting
A meeting where the Hitachi Group and stakeholders exchange opinions regarding environmental
activities.
➔ P. 39, 41, 43, 57

Eco-mind & Management
One theme of the Hitachi Group’s Environmental
Vision relating to environmental education and awareness-raising for employees and their family members, and environmental management activities.
➔ P. 38, 39, 40, 42, 46

Sustainable Business Models
One theme of the Hitachi Group’s Environmental
Vision relating to the development of businessmodels that help create a sustainable society
through products and services for businesses thatincorporate resource recycling, businesses that
support the recycling industries, as well as systems
that promote sustainable energy use.
➔ P. 38, 39, 41, 42, 58

62

Hitachi Group CSR Report 2005

Worldwide Stakeholder Collaboration
One theme of the Hitachi Group’s Environmental
Vision relating to the fostering of common values
together with the creation of a sustainable society
through communications with stakeholders.
➔ P. 38, 39, 41, 42, 57
Life Cycle
The planning of a product from manufacturing toutilization, and all stages in between until the item
becomes disposed or recycled (materials, production, distribution, use, collection, disassembly andproper processing).
➔ P. 14, 21, 31, 38, 49

I look forward to seeing the results of Hitachi’s commitment,
particularly on the social dimension,
to help build a sustainable society.
Reitaku University Professor

Iwao TakaIn this report, all activities of the Hitachi Group are organized andporting, it would be to clarify Hitachi’s intentions for future efforts.

presented from the viewpoint of CSR.

Because this report focuses on introducing the Hitachi Group’s

The Hitachi Group will have a signiﬁcant impact on the rest of the

CSR activities to date, the future direction is not clearly mentioned.

world when all 340,000 employees take an earnest approach

In future editions, while treating this as a status report on CSR

toward CSR. In that sense, I feel that the management approachactivities, Hitachi could at the same time use it to express theexpressed in Hitachi’s catchphrase—“Society Changes. HitachiGroup’s commitment to the future. For instance, the report could

Transforms It.”—is a concept of not only accomplishments in

identify issues to take on as challenges, such as career develop-

technology and product development, but also the building of ament, diversity, green procurement, fund accumulation for futuresustainable society itself.

soil remediation, etc., and indicate target years and benchmarks.

This approach can be understood from the angle of the CSR Policy

If each report then described progress in these endeavors, theyand implementation schemes, but what I notice the most is thewould be more straightforward for readers to understand.

practical approach of the Group in regard to compliance with laws
and regulations. Because it does a large amount of work with the

Response from Hitachi, Ltd.

public—sector due to the nature of its business, Hitachi could face

For this ﬁrst CSR report, we mainly focused on describing

risks relating to antitrust violations. Also, because of the global

Hitachi’s CSR concepts, which are based on the founding spirit

scale of its operations, Hitachi could face other risks, involvingof the company, and on describing our activities to date. From the

kick-backs to government ofﬁcials in developing countries, for ex-

next ﬁscal year onward, besides the historical reporting, we would

ample. The Hitachi Group strives to confront these issues directly,

like to increase the coverage of the various activities of our moreby implementing trainings and auditing with these risks in mind.

than 1,100 Group companies, such as compliance and commu-

This report shows the Group’s commitment to these efforts.

nications, and we would like to indicate the corporate direction

The examples of activities, arranged according to stakeholder, aremore concretely. As we put the CSR Policy of the Hitachi Groupfull of positive implications. Particularly, efforts to boost competi-

into practice, we will clarify our plans to achieve objectives, while

tiveness by effectively utilizing information obtained through dia-continuing our dialogue with various stakeholders.

logue in product development are commendable. These appear to
be indispensable for the continued implementation of CSR.
If I could suggest any possible improvements relating to social re-

GWPt
Global warming potential (global warming coefﬁcient, in CO2 equivalent tonnes). Converted toamount of CO2 (t) by multiplying greenhouse gas
emissions by the global warming coefﬁcient. The
global warming coefﬁcient shows the extent of
impact on global warming from a greenhouse gas,compared to the equivalent amount of CO2.
➔ P. 45, 53

PBB
Polybrominated biphenyl, a type of speciﬁed brominated ﬁre retardant.
➔ P. 40, 49
PBDE
Polybrominated diphenyl ether, a type of speciﬁed
brominated ﬁre retardant.
➔ P. 40, 49

RoHS Directive
Directive of the European Union on Restrictionof the Use of Certain Hazardous Substances inElectrical and Electronic Equipment. Targeting electrical and electronic equipment, it prohibits the useof six substances in any product sold in the EU on
or after July 1, 2006. There are currently 25 member
countries in the EU.
➔ P. 14, 31, 40, 42, 49, 50, 61

ODPt
Ozone depletion potential (ozone depletion coefﬁcient in CFC equivalent, in tonnes)➔ P. 45

Third-Party Comment on the Hitachi Group CSR Report 2005

63

Data on hitachi green web
You can ﬁnd more details are available on hitachi green web.
http://greenweb.hitachi.co.jp/en/data
Category

Activity

Company Proﬁlenext eco

Environmental Activities of the Hitachi Group

Eco-mind & Management

Related page

Data provided on hitachi green web

P. i

List of Companies Covered by Report (Environmental Impact Data Covered)P. 2 –3

Overview of Financial Results in FY2004

P. 39

History of Activities

P. 39–40

Action Plan and Results of FY2004

P. 42

Green Point Average: Results and Targets

P. 44– 45

Environmental Impact Data for Corporate Activities (FY2004)

Environmental Management System
based on ISO 14001 Certiﬁcation

P. 46–48

Status of ISO 14001 Certiﬁcation

Environmental Education

P. 48

Current and required numbers of legally qualiﬁed personnel

Environmental Accounting

P. 47–48

Expenses, Investment, Effect, Efﬁciency of Environmental Impact Reduction

ISO 14001—accredited production site list

Cost Breakdown Ratio by Industry Segment
Investment Breakdown Ratio by Industry Segment
Investment Breakdown Ratio by Industry Segment
Economic Effect Breakdown Ratio by Industry Segment
Nature-friendly Products & Eco-factories

Eco-Products

P. 49– 50

Eco-Product Registration Trends
List of Eco-Products and Data Sheets
Environmental Efﬁciency of Products
Analysis Guidelines on Substances covered by the EU’s RoHS Directive

Decrease in Transportation Load

P. 51

State of Transportation Load
Ratio of Low-emission Vehicles for the Total Number of Company-owned carsCommission Volumes for Containers and Packaging

Prevention of Global Warming

P. 52– 53

Trends in CO2 Emissions Per Unit of Production, and Total CO2 Emissions
CO2 Emission by Industry Segment
Trends in Composition of Energy Use
Trends in Emissions and Composition of Greenhouse Gases
Volume of New Energies

Chemical Substance Risk Management

P. 54–55

Survey Results for Substances Covered Under Japan’s PRTR Law
Investigation Results of PRTR Law
Ratio of Volume Handled, by Industry Segment
Ratio of Emission and Transfer Volume, by Industry Segment
Trend in Emissions for Substances Targeted for Reduction

Waste Reduction

P. 56

Trends in Final Disposal Volume Reduction
Breakdown of Final Disposal Volumes, by Industry Segment
Breakdown of Final Disposal Volumes, by Type
Trends in Waste Emissions (Recycled and Reduced Volume)
Zero Emission Sites
Flowchart for the Treatment of Waste and Reusable Waste Products
Breakdown of Recycling Methods

Worldwide Stakeholder Collaboration

Information Disclosure

P. 57

Issuance of Reports, by Site
Information Disclosure via the Internet, by Site
Contact Info to Request Reports of Companies/Sites
Environmental Web Links of Companies/Sites
Awards
Eco-Products 2004 Exhibition
International Eco-Products Exhibitions

Dialogue
Sustainable Business Models

Resource Recycling

Status of Environmental Town Meetings
P. 58–59

Number of Household Electrical Appliances Recycled and Product Recycling Ratio
PC Take-back Results and Resource Reuse Ratio

64

Hitachi Group CSR Report 2005

next eco

Energy Cycle

Energy Saving Solutions

Contributing to a Sustainable Society
through our Business Activities

Hitachi Environmental Group ( Introduces Environmental Equipment Providers, etc.)
Hitachi Environmental Information Solution ( Introduces Environmental Solution Systems)

Inquiries:
Hitachi, Ltd.
(For inquiries on this report or CSR activities overall)

CSR Promotion Department
1– 6– 6 Marunouchi, Chiyoda-ku, Tokyo, 100– 8280, Japan
Tel: (81) 3– 3258 –1111, Fax: (81) 3– 4564 –1454
E-mail: hitachi.csr.sh@hitachi.com(For inquiries on environmental activities)

Corporate Environmental Policy Division
1–18 –13 Soto-Kanda, Chiyoda-ku, Tokyo, 101–8608, Japan
Tel: (81) 3– 3258 – 1111, Fax: (81) 3 –4564– 4074
E-mail: kankyohon@hdq.hitachi.co.jp
On the cover:
The cover photo is from Moana Loa Garden Park (Monkey Pod tree), Oahu Island,
Hawaii. This tree has become known as the “Hitachi Tree” through televisioncommercials over many years. The tree represents an abundance of the qualities
that we like to emphasize at Hitachi—Synergy, Growth, and Strength.

Hitachi Group Corporate Social Responsibility Report 2005

Printed with 100% vegetable oil ink containing novolatile organic compounds.

Hitachi, Ltd. is a member of the Green Purchasing
Network.

Printed on Hitachi Recycled Paper containing 100
percent used pulp.

:: %



September 2005
Hitachi, Ltd.
CSR Promotion Department

The Hitachi Group Corporate Social Responsibility Report 2005
To Our Questionnaire Participants,
Thank you for your interest in Hitachi.
We are pleased to present to you the Hitachi Group CSR Report 2005, our first report to cover ouractivities and initiatives from the perspective of corporate social responsibility.
This report is divided into two sections, with “next society” covering the Hitachi Group’s activities fromthe perspective of social responsibility, and “next eco” from the environmental perspective. Each section
describes the results of activities of the past fiscal year. Moreover, third-party comments were received
from the Valdez Society on the CSR report’s planning/preparation phase and the completion phase,and also from Professor Iwao Taka of Reitaku University, an authority on CSR who also expresses highexpectations for the Hitachi Group.
For those who would like more details, besides this report, we also provide detailed information on
our Web site. In the future we will work toward the continuous improvement of our CSR initiatives, andenhance our information disclosure, in order to promote support and understanding for our activities.
We invite you to read through this report and welcome your opinions and comments.
The Hitachi Group
Contact:

Hitachi, Ltd.
CSR Promotion Department
1– 6 – 6 Marunouchi, Chiyoda-ku, Tokyo 100– 8280 Japan
Tel: (81) 3 – 3258 –1111 Fax: (81) 3 – 4564 –1454
E-mail: hitachi.csr.sh@hitachi.com

Results of Questionnaire on the Environmental Sustainability Report 2004 ( Total respondents: 67 )Comprehensibility

No reply (6%)
High
(66%)

Average(25%)
Low (3%)

VolumeNo reply (9%)

Too much(10%)

Appropriate(75%)
Too little (6%)

Content

No reply (12%)
Good
(51%)

Average(34%)
Poor (3%)

Reader’s standpoint

Hitachi group employee or family members (3%)

Research / Non-profit
Educator organization(10%) (NPO) (9%)
Resident near Hitachi facilities (5%)

Customer
(30%)

Other
(40%)
Supplier (3%)

Heard about the report from:
Newspaper(36%)

Exhibition (3%)
Hitachi Web site
(13%)

Magazine
(12%)

Other
(15%)
Seminar (3%)

No reply(18%)

Main Requests and Opinions
Praise• “It was good to read the company president’s
overall perspective written in his own words.”• “The report was easy to read. The content was
concisely expressed, and the glossary was helpful.”• “I got a sense that this is a progressive
global corporation, because the reporting on
environmental impacts separated out and provided
clear information on overseas operations.”
Room for improvement• “The social report is limited. I would like to see more
content.”• “I think too much of an effort was made to becomprehensive in coverage. I would have preferred
to see more clearly what you wanted to emphasizein the 2004 report.”
In response to comments, here are some of
the changes we made in this year’s report:• We made an effort to express the key points moreclearly, and included special feature sections toillustrate where we are implementing CSR.
• We enhanced the reporting on social aspects of
our activities.

Readers’ Survey
Hitachi Group CSR Report 2005
Please answer the questions below and mail or fax the completed survey.

Hitachi Ltd., CSR Promotion Department
1– 6 – 6 Marunouchi, Chiyoda-ku, Tokyo 100–8280 JapanFax ( 81) 3 – 4564 –1454

Q1. What did you think of the Hitachi Group CSR Report 2005? (Check one only.)
1) Comprehensibility
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Message from the President
Compliance

CSR Activities of the Hitachi Group
Dialogue with Stakeholders

Corporate Governance and Group Management
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Social Report (next society)
Customer, Society and Hitachi

Efforts for Shareholders and Investors

Working with Our Suppliers

The Employees that Sustain Hitachi

Action Plan for Fiscal 2005

Environmental Report (next eco)
Environmental Activities of the Hitachi GroupWorldwide Stakeholders Collaboration

Eco-mind & Management
Sustainable Business Models

Nature-friendly Products & Eco-factories
Action Plan for Fiscal 2005

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Message from Chief Executive for North America

Senior Vice President andExecutive Officer,
Chief Executive for North America,
Hitachi, Ltd.

Hiroaki Nakanishi

Hitachi has long been an advocate of deep involvement in the communities where it operates by employees who are engaged and committed to social
responsibility. The company’s heritage is based on
the premise that its operations and employees havea responsibility to act in harmony with society andthe environment.
Hitachi was one of the ﬁrst Japanese companies
in North America to get involved with large-scale
philanthropic endeavors. Since 1986, Hitachi has
created a giving program that combines employee
volunteerism and in-kind donations and direct funding through employee-driven community action.
Employees throughout North America are involved
in innovative programs aimed at improving the quality of life in the communities where the company
and its people live and work.
More than 70 Hitachi Group Companies in the U.S.
and Canada are actively engaged in operating plants
and facilities in harmony with solid environmental
practices, including recycling programs and theelimination or minimization of the use of harmful

substances. Each year thousands of employees participate in food and blood drives and spend hundredsof hours of volunteer time working with non-proﬁtorganizations to better their communities. Hitachi
employees and group companies most recently wereactive in supporting the Tsunami disaster relief effort with fundraising and employee volunteerism.
This eﬀort mirrored the gratifying eﬀort following
the September 11 terrorist attacks, in which Hitachi
companies donated more than $1 million in funds,
as well as sophisticated equipment used in the recovery eﬀort.
Hitachi is also actively participating in the company’s
International Teacher Exchange Program in North
America, which provides the opportunity to promote and support education infrastructure and themutual understanding among diﬀerent cultures. The
Hitachi Group Companies and their people are alsostrongly engaged with the Hitachi Foundation in its
many activities on behalf of underserved populations throughout the U.S., including its Yoshiyama
Awards, which recognizes deserving community
work by young people.
We welcome all Hitachi people to join with us insustaining excellent relationships with all of our
stakeholders and being active participants in ourcommunities and society at large. Good corporatesocial responsibility is a critically important to our relationships, to our growth and to the Hitachi brand.

Rochester Hitachi Global Storage Technologies building a playground together 2004

Message from Regional Executive for Asia

Managing Director
Hitachi Asia Ltd.

Shunsuke Ohtsu

Even before the “CSR” phrase was coined, Hitachi
was already a strong contributor to society throughits businesses since its foundation.

vited to present at an export control seminar cosponsored by the Singapore government and theJapanese government.

Let me give some recent examples in Asia. The Hitachigroup of companies raised about US$160 million tobring relief and restoration in Asian regions causedby the Tsunami.

As for social contribution programmes, the HitachiGroup in Asia also supports the annual Christmas
Light-Up (CLU) activities along Singapore’s popular
Orchard Road to boost tourism for the last fourteen
years. In conjunction with the CLU activity, ﬁnancial
support is also provided to help over 360,000 beneﬁciaries through a national fund-raising body.

On the environmental aspect, Hitachi has been promoting “green procurement” in Asia which allows
us to procure materials and components that areenvironmentally-friendly.
On the compliance aspect, as a result of Hitachi
Asia’s good export control system, we were in-

Hitachi Asia has also partnered with the Head Oﬃce
of Hitachi, Ltd. which sponsors the Hitachi Young
Leaders Initiative (HYLI) since 1996. The programmeaims to groom potential Asian leaders through a forum to discuss regional issues with prominent Asian
opinion leaders. HYLI also incorporates local community work to beneﬁt charity organisations.
The activities above underscore our on-going commitment to CSR. It is an approach to make a sustainable impact on diverse cultures across Asia throughour group synergy and localized eﬀorts.

Christmas Light-Up activities (Singapore)Message from Chief Executive for Europe

Chief Executive for Europe

Stephen Gomersall

The Hitachi Group in Europe has a strong commitment to both its stakeholders and the environment.
In order to fulﬁl this commitment Hitachi strives tobe a ‘good corporate citizen’ by using its technology tocontribute to the economic and social developmentof European society. By working in partnership with
our stakeholders and building long term mutually
beneﬁcial relationships, we aim to build awarenessand trust in the Hitachi brand, helping us to growour business in the European market.
Currently there are a number of CSR activities being carried out by the individual group companies
across Europe. For example, The Maxell Educational
Trust provides local schools with educational grants.
Hitachi Software Engineering (UK) Ltd. also provides
whiteboards to youth and educational initiatives. By
supporting local educational bodies Hitachi can help
ensure the development of suitable future employees, whilst simultaneously promoting our products
and the beneﬁts they can bring to the classroom.
Also four of Hitachi’s group companies are involved in
The Hitachi International School Teachers Exchange
Program (HISTEP), promoting communication and

HISTEP - A Japanese teacher giving a lesson at school in Maidenhead, UK

cultural understanding amongst North American,
European and Japanese teachers, by means of across-cultural educational exchange. HISTEP is an
excellent example of a CSR activity which involves
a number of the group companies, demonstrating agroup wide commitment to CSR.
The EU Science and Technology Forum is another
Europe wide initiative, started in 1998 to investigate
how science and technology can contribute to society, by the sharing of knowledge between Hitachi’sscientists/researchers and leading experts from academia and industry.
Group companies across Europe are encouraged tosupport and build relationships with the local community. However, local initiatives should be backed
up by Europe wide CSR activities, in order to fully
demonstrate our commitment to society and the environment. If we want to maximise the potential of CSR
for both Hitachi and our stakeholders we must unite
in our activities and develop a group wide policy.
A strong commitment to European society is very
important, however, we must not neglect our commitment to the environment. Many of our activities
throughout our products life cycle impact on theenvironment; from the components/materials our
products are made from, to production, distribution,
usage, disassembly and disposal. Therefore, we must
develop CSR guidelines to prevent, limit or counteract
the impact of these activities, ensuring we help maintain a healthy environment for future generations.
CSR is an important tool for Hitachi in Europe as
it enables us to demonstrate our long term commitment to our stakeholders, society and the environment, helping to build relationships, our brand andour business. Our aim for the future is to unite theEuropean group companies in our mission to truly
be a ‘good corporate citizen’ so that the company as
a whole and society at large can beneﬁt.